Key: (1) language to be deleted (2) new language
An act
relating to retirement; various retirement plans; increasing certain contribution rates; suspending certain post-retirement adjustments; reducing certain postretirement adjustment increase rates; suspending certain postretirement adjustments temporarily; reducing interest rates on refunds; reducing deferred annuity augmentation rates; eliminating interest on reemployed annuitant earnings limitation deferred accounts; increasing certain vesting requirements; increasing certain early retirement reduction rates; reducing certain benefit accrual rates; extending certain amortization periods; making changes of an administrative nature for retirement plans administered by the Minnesota State Retirement Association; revising insurance withholding for certain retired public employees; authorizing state patrol plan service credit for leave procedures; addressing plan coverage errors and omitted contributions; revising unlawful discharge annuity repayment requirements; requiring employment unit accommodation of daily valuation of investment accounts; eliminating administrative fee maximum for the unclassified state employees retirement program; making changes of an administrative nature in the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, and the defined contribution retirement plan; making various administrative modifications in the voluntary statewide lump-sum volunteer firefighter retirement plan of the Public Employees Retirement Association; revising purchase of salary credit procedures in certain partial salary situations; adding new partial salary credit purchase authority for partial paid medical leaves and budgetary leaves; redefining TRA allowable service credit; defining annual base salary; requiring base salary reporting by TRA-covered employing units; making changes of an administrative nature in the Minnesota State Colleges and Universities System individual retirement account plan; setting deadline dates for actuarial reporting; extending and revising an early retirement incentive program; permitting the court-ordered revocation of an optional annuity election in certain marriage dissolutions; transfer of the administrative functions of the Minneapolis Employees Retirement Fund to the Public Employees Retirement Association; creation of MERF consolidation account within the Public Employees Retirement Association; making various technical corrections relating to volunteer fire relief associations; revising break-in-service return to firefighting authorizations; authorizing Minnesota deferred compensation plan service pension transfers; revising payout defaults in survivor benefits; authorizing corrections of certain special fund deposits; requiring a retirement fund investment authority study; authorizing certain service and salary credit for furloughs; allowing election of coverage by legislative members; requiring a deferred contribution plan study; requiring a defined contribution plan study; authorizing certain bylaw amendments; making technical changes; appropriating money;
amending Minnesota Statutes 2008, sections 3A.02, subdivision 4; 11A.04; 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41, subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04, subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12, subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1; 352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1, 2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions 4, 9, by adding a subdivision; 352D.02, subdivisions 1c, 2, 3; 352D.03; 352D.04, subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3; 352D.065, subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01, subdivisions 2b, 2d, by adding subdivisions; 353.0161, subdivision 2; 353.03, subdivision 1; 353.05; 353.27, as amended; 353.29, subdivision 1; 353.30, subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6; 353.37, subdivisions 1, 2, 3, 3a, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 353.71, subdivisions 1, 2, 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 353D.01, subdivision 2; 353D.03, subdivision 1; 353D.04, subdivisions 1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 353F.025, subdivisions 1, 2; 353F.03; 354.05, by adding a subdivision; 354.07, subdivision 5; 354.091; 354.42, subdivisions 3, 7, by adding subdivisions; 354.52, subdivision 6, by adding a subdivision; 354.66, subdivision 3; 354.71; 354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, by adding a subdivision; 354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 354A.39; 354B.25, subdivisions 1, 3; 354C.14; 355.095, subdivision 1; 356.214, subdivision 1; 356.215, subdivisions 3, 8; 356.216; 356.24, subdivision 1; 356.30, subdivisions 1, 3; 356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions 2, 4; 356.315, subdivision 5; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50, subdivision 4; 356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2, 3, 7, 8; 356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by adding a subdivision; 518.58, subdivisions 3, 4; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 69.772, subdivision 6; 69.773, subdivision 6; 352.01, subdivision 2b; 352.75, subdivision 4; 352.95, subdivision 2; 352B.011, subdivision 3; 353.01, subdivisions 2, 2a, 16; 353.06; 353.27, subdivisions 2, 3, 7; 353.33, subdivision 1; 353.371, subdivision 4; 353.65, subdivisions 2, 3; 353F.02, subdivision 4; 353G.05, subdivision 2; 353G.06, subdivision 1; 353G.08; 353G.09, subdivision 3; 353G.11, subdivision 1, by adding a subdivision; 354.42, subdivision 2; 354.47, subdivision 1; 354.49, subdivision 2; 354.52, subdivision 4b; 354.55, subdivision 11; 354A.12, subdivision 2a; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 1, 2, by adding subdivisions; 356.96, subdivisions 1, 5; 423A.02, subdivision 3; 424A.01, subdivisions 1, 6; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05, subdivision 3, by adding a subdivision; 424A.08; 480.181, subdivision 2; Laws 2009, chapter 169, article 4, section 49; article 5, section 2; article 7, section 4; proposing coding for new law in Minnesota Statutes, chapters 352; 352B; 353; 353G; 356; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 352.91, subdivision 5; 353.01, subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03, subdivision 2; 353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5; 424A.001, subdivision 6; Laws 2009, chapter 169, article 10, section 32.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
(a) The deferred retirement allowance of any former legislator must be augmented as provided herein.
(b) The required reserves applicable to the deferred retirement allowance, determined as of the date the benefit begins to accrue using an appropriate mortality table and an interest assumption of six percent, must be augmented from the first of the month following the termination of active service, or July 1, 1973, whichever is later, to the first day of the month in which the allowance begins to accrue, at the following annually compounded rate or rates:
(1) five percent until January 1, 1981;
(2) three percent from January 1, 1981, or from the first day of the month following the termination of active service, whichever is later, until January 1 of the year in which the former legislator attains age 55new text begin or until January 1, 2012, whichever is earliernew text end ; deleted text begin anddeleted text end
(3) five percent from the period end date under clause (2) deleted text begin todeleted text end new text begin until new text end the effective date of retirementnew text begin or until January 1, 2012, whichever is earlier; andnew text end
new text begin (4) two percent after December 31, 2011new text end .
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end An employee covered by the system, who is less than normal retirement age and who becomes totally and permanently disabled after three or more years of allowable servicenew text begin if employed before July 1, 2010, or after five or more years of allowable service if employed after June 30, 2010new text end , is entitled to a disability benefit in an amount provided in subdivision 3.
new text begin (b)new text end If the disabled employee's state service has terminated at any time, the employee must have at least two years of allowable service after last becoming a state employee covered by the system.
new text begin (c)new text end Refunds may be repaid under section 352.23 before the effective accrual date of the disability benefit under subdivision 2.
new text begin This section is effective the day following final enactment. new text end
After separation from state service, any employee (1) who has attained the age of at least 55 years and who is entitled to credit for at least three years allowable servicenew text begin if employed before July 1, 2010, or after five or more years of allowable service if employed after June 30, 2010new text end , or (2) who has received credit for at least 30 years allowable service regardless of age, is entitled upon application to a retirement annuity.
new text begin This section is effective the day following final enactment. new text end
(a) If an employee or former employee has credit for at least three years allowable service new text begin if the employee was employed before July 1, 2010, or for at least five years of allowable service if the employee was employed after June 30, 2010, new text end and dies before an annuity or disability benefit has become payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the employee may elect to receive, in lieu of the refund with interest under subdivision 1, an annuity equal to the joint and 100 percent survivor annuity which the employee or former employee could have qualified for on the date of death.
(b) If the employee was under age 55 and has credit for at least 30 years of allowable service on the date of death, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and surviving spouse on the date of death. The annuity is payable using the full early retirement reduction under section 352.116, subdivision 1, paragraph (a), to age 55 and one-half of the early retirement reduction from age 55 to the age payment begins.
(c) If the employee was under age 55 and has credit for at least three years of allowable service credit on the date of death new text begin if the employee was employed before July 1, 2010, or for at least five years of allowable service if the employee was employed after June 30, 2010, new text end but did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and surviving spouse at the time of death. The annuity is payable using the full early retirement reduction under section 352.116, subdivision 1 or 1a, to age 55 and one-half of the early retirement reduction from age 55 to the age payment begins.
(d) The surviving spouse eligible for benefits under paragraph (a) may apply for the annuity at any time after the date on which the employee or former employee would have attained the required age for retirement based on the allowable service earned. The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) may apply for the annuity at any time after the employee's death. The annuity must be computed under sections 352.115, subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 1a, and 3. Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision. The annuity must cease with the last payment received by the surviving spouse in the lifetime of the surviving spouse, or upon expiration of a term certain benefit payment to a surviving spouse under subdivision 2a. An amount equal to the excess, if any, of the accumulated contributions credited to the account of the deceased employee in excess of the total of the benefits paid and payable to the surviving spouse must be paid to the deceased employee's or former employee's last designated beneficiary or, if none, as specified under subdivision 1.
(e) Any employee or former employee may request in writing, with the signed consent of the spouse, that this subdivision not apply and that payment be made only to a designated beneficiary as otherwise provided by this chapter.
new text begin This section is effective the day following final enactment. new text end
Except as provided in subdivision 3, the refund payable to a person who ceased to be a state employee by reason of a termination of state service is an amount equal to employee accumulated contributions plus interest at the rate of six percent per year compounded daily from the date that the contribution was made until new text begin June 30, 2011, or until new text end the date on which the refund is paidnew text begin , whichever is earlier, and at the rate of four percent per year compounded daily from the date that the contribution was made or from July 1, 2011, whichever is later, until the date on which the refund is paidnew text end . Included with the refund is any interest paid as part of repayment of a past refund, plus interest thereon from the date of repayment.
new text begin This section is effective the day following final enactment. new text end
(a) An employee who has at least three years of allowable service new text begin if employed before July 1, 2010, or who has at least five years of allowable service if employed after June 30, 2010, new text end when termination occurs may elect to leave the accumulated contributions in the fund and thereby be entitled to a deferred retirement annuity. The annuity must be computed under the law in effect when state service terminated, on the basis of the allowable service credited to the person before the termination of service.
(b) An employee on layoff or on leave of absence without pay, except a leave of absence for health reasons, and who does not return to state service must have an annuity, deferred annuity, or other benefit to which the employee may become entitled computed under the law in effect on the employee's last working day.
(c) No application for a deferred annuity may be made more than 60 days before the time the former employee reaches the required age for entitlement to the payment of the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date the application is filed in the office of the system, but not (1) before the date on which the employee reaches the required age for entitlement to the annuity nor (2) before the day following the termination of state service in a position which is not covered by the retirement system.
(d) Application for the accumulated contributions left on deposit with the fund may be made at any time following the date of the termination of service.
new text begin This section is effective the day following final enactment. new text end
(a) Any person who has been an employee covered by a retirement system listed in paragraph (b) is entitled when qualified to an annuity from each fund if total allowable service in all funds or in any two of these funds totals three or more yearsnew text begin if employed before July 1, 2010, or totals five or more years if employed after June 30, 2010new text end .
(b) This section applies to the Minnesota State Retirement System, the Public Employees Retirement Association including the Public Employees Retirement Association police and fire fund, the Teachers Retirement Association, the State Patrol Retirement Association, or any other public employee retirement system in the state with a similar provision, except as noted in paragraph (c).
(c) This section does not apply to other funds providing benefits for police officers or firefighters.
(d) No portion of the allowable service upon which the retirement annuity from one fund is based shall be again used in the computation for benefits from another fund. No refund may have been taken from any one of these funds since service entitling the employee to coverage under the system or the employee's membership in any of the associations last terminated. The annuity from each fund must be determined by the appropriate provisions of the law except that the requirement that a person must have at least deleted text begin threedeleted text end new text begin a specific number of new text end years new text begin of new text end allowable service in the respective system or association does not apply for the purposes of this section if the combined service in two or more of these funds equals deleted text begin three or more yearsdeleted text end new text begin at least the longest period of allowable service of any of the applicable retirement plansnew text end .
new text begin This section is effective the day following final enactment. new text end
(a) The deferred annuity, if any, accruing under subdivision 1, or section 352.22, subdivision 3, must be computed as provided in section 352.22, subdivision 3, on the basis of allowable service before termination of state service and augmented as provided herein. The required reserves applicable to a deferred annuity or to an annuity for which a former employee was eligible but had not applied or to any deferred segment of an annuity must be determined as of the date the benefit begins to accrue and augmented by interest compounded annually from the first day of the month following the month in which the employee ceased to be a state employee, or July 1, 1971, whichever is later, to the first day of the month in which the annuity begins to accrue. The rates of interest used for this purpose must be five percent compounded annually until January 1, 1981, and three percent compounded annually thereafter until January 1 of the year following the year in which the former employee attains age 55new text begin or until January 1, 2012, whichever is earliernew text end , and from deleted text begin that datedeleted text end new text begin the January 1 next following the attainment of age 55 new text end to the effective date of retirementnew text begin or until January 1, 2012, whichever is earliernew text end , deleted text begin the rate isdeleted text end five percent compounded annually if the employee became an employee before July 1, 2006, deleted text begin and atdeleted text end 2.5 percent compounded annually new text begin until January 1, 2012, new text end if the employee becomes an employee after June 30, 2006new text begin , and two percent compounded annually after December 31, 2011, irrespective of when the employee became a state employeenew text end . If a person has more than one period of uninterrupted service, the required reserves related to each period must be augmented by interest under this subdivision. The sum of the augmented required reserves so determined is the present value of the annuity. "Uninterrupted service" for the purpose of this subdivision means periods of covered employment during which the employee has not been separated from state service for more than two years. If a person repays a refund, the service restored by the repayment must be considered continuous with the next period of service for which the employee has credit with this system. The formula percentages used for each period of uninterrupted service must be those applicable to a new employee. The mortality table and interest assumption used to compute the annuity must be those in effect when the employee files application for annuity. This section does not reduce the annuity otherwise payable under this chapter.
(b) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former state employee who terminated service before July 1, 1997, which is not first payable until after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and the tables adopted by the board and approved by the actuary retained under section 356.214.
new text begin This section is effective the day following final enactment. new text end
Any former member of the former Metropolitan Transit Commission-Transit Operating Division employees retirement fund is entitled to a retirement annuity from the Minnesota State Retirement System if the employee:
(1) is not an active employee of the Transit Operating Division of the former Metropolitan Transit Commission on July 1, 1978; (2) has at least ten years of active continuous service with the Transit Operating Division of the former Metropolitan Transit Commission as defined by the former Metropolitan Transit Commission-Transit Operating Division employees retirement plan document in effect on December 31, 1977; (3) has not received a refund of contributions; (4) has not retired or begun receiving an annuity or benefit from the former Metropolitan Transit Commission-Transit Operating Division employees retirement fund; (5) is at least 55 years old; and (6) submits a valid application for a retirement annuity to the executive director of the Minnesota State Retirement System.
The person is entitled to a retirement annuity in an amount equal to the normal old age retirement allowance calculated under the former Metropolitan Transit Commission-Transit Operating Division employees retirement fund plan document in effect on December 31, 1977, subject to an early retirement reduction or adjustment in amount on account of retirement before the normal retirement age specified in that former Metropolitan Transit Commission-Transit Operating Division employees retirement fund plan document.
The deferred retirement annuity of any person to whom this subdivision applies must be augmented. The required reserves applicable to the deferred retirement annuity, determined as of the date the allowance begins to accrue using an appropriate mortality table and an interest assumption of five percent, must be augmented by interest at the rate of five percent per year compounded annually from January 1, 1978, to January 1, 1981, deleted text begin anddeleted text end three percent per year compounded annually from January 1, 1981, new text begin until the date that the annuity begins to accrue or January 1, 2012, whichever is earlier, and two percent after December 31, 2011, new text end to the first day of the month in which the annuity begins to accrue. After the commencement of the retirement annuity, the annuity is eligible for postretirement adjustments under section 356.415. On applying for a retirement annuity under this subdivision, the person is entitled to elect a joint and survivor optional annuity under section 352.116, subdivision 3.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) "Vesting" means obtaining a nonforfeitable entitlement to an annuity or benefit from the correctional state employees retirement plan by having credit for sufficient allowable service under paragraph (b) or (c), whichever applies. new text end
new text begin (b) A member who first became a member of the correctional state employees retirement plan before July 1, 2010, is vested when the person has accrued credit for not less than three years of allowable service as defined under section 352.01, subdivision 11. new text end
new text begin (c) A member who first becomes a member of the correctional state employees retirement plan after June 30, 2010, is vested at the following percentages when the person has accrued credited allowable service as defined under section 352.01, subdivision 11, as follows: new text end
new text begin (i) 50 percent after five years; new text end
new text begin (ii) 60 percent after six years; new text end
new text begin (iii) 70 percent after seven years; new text end
new text begin (iv) 80 percent after eight years; new text end
new text begin (v) 90 percent after nine years; and new text end
new text begin (vi) 100 percent after ten years. new text end
new text begin This section is effective the day following final enactment. new text end
After separation from state service, an employee covered under section 352.91 who has reached age 55 years and deleted text begin has credit for at least three years of covered correctional service or a combination of covered correctional service and general employees state retirement plan servicedeleted text end new text begin is vested under section 352.925,new text end is entitled upon application to a retirement annuity under this section, based only on covered correctional employees' service. Application may be made no earlier than 60 days before the date the employee is eligible to retire by reason of both age and service requirements.
new text begin This section is effective the day following final enactment. new text end
Any covered correctional employee who becomes at least 50 years old and deleted text begin who has at least three years of allowable servicedeleted text end new text begin is vested under section 352.925, new text end is entitled upon application to a reduced retirement annuity equal to the annuity calculated under subdivision 2, reduced by two-tenths of one percent for each month that the correctional employee is under age 55 at the time of retirementnew text begin if first employed as a correctional state employee before July 1, 2010, and if retired before July 1, 2015, or reduced by 0.417 percent for each month that the correctional employee is under age 55 at the time of retirement if first employed as a correctional state employee after June 30, 2010, or if first employed as a correctional state employee before July 1, 2010, and if retired after June 30, 2015new text end .
new text begin This section is effective the day following final enactment. new text end
The board may establish optional annuity forms to pay a higher amount from the date of retirement until an employee is first eligible to draw Social Security benefitsnew text begin , reaches age 65,new text end or deleted text begin up todeleted text end new text begin reaches new text end the age the employee is eligible to receive unreduced Social Security benefits, at which time the monthly benefits must be reduced. The optional annuity forms must be actuarially equivalent to the normal single life annuity form provided in subdivision 2. The optional annuity forms must be deleted text begin approveddeleted text end new text begin certified as actuarially equivalent new text end by the actuary retained under section 356.214.
new text begin This section is effective the day following final enactment. new text end
(a) If the correctional employee was at least age 50, deleted text begin has credit for at least three years of allowable servicedeleted text end new text begin was vested under section 352.925new text end , and dies before an annuity or disability benefit has become payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the employee may elect to receive, in lieu of the refund under section 352.12, subdivision 1, an annuity for life equal to the joint and 100 percent survivor annuity which the employee could have qualified for had the employee terminated service on the date of death. The election may be made at any time after the date of death of the employee. The surviving spouse benefit begins to accrue as of the first of the month next following the date on which the application for the benefit was filed.
(b) If the employee was under age 50, dies, and deleted text begin had credit for at least three years of allowable service credit on the date of deathdeleted text end new text begin was vested under section 352.925,new text end but did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and surviving spouse at the time of death. The annuity is payable using the early retirement reduction under section 352.93, subdivision 2a, to age 50, and one-half of the early retirement reduction from age 50 to the age payment begins. The surviving spouse eligible for surviving spouse benefits under this paragraph may apply for the annuity at any time after the employee's death. Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision.
(c) The annuity must cease with the last payment received by the surviving spouse in the lifetime of the surviving spouse. Any employee may request in writing, with the signed consent of the spouse, that this subdivision not apply and that payment be made only to a designated beneficiary as otherwise provided by this chapter.
new text begin This section is effective the day following final enactment. new text end
A covered correctional employee who was hired before July 1, 2009, after rendering at least one year of covered correctional service, or a covered correctional employee who was first hired after June 30, 2009, deleted text begin after rendering at least three years of covered correctional plan servicedeleted text end new text begin is vested under section 352.925new text end , and who is determined to have a regular disability, physical or psychological, as defined under section 352.01, subdivision 17c, is entitled to a regular disability benefit. The regular disability benefit must be based on covered correctional service only. The regular disability benefit must be computed as provided in section 352.93, subdivisions 1 and 2. The regular disability benefit of a covered correctional employee who was first hired before July 1, 2009, and who is determined to have a regular disability, physical or psychological, under this subdivision must be computed as though the employee had at least 15 years of covered correctional service.
new text begin This section is effective the day following final enactment. new text end
A State Patrol retirement fund is established. Its membership consists of all persons defined in section 352B.011, subdivision 10.
(a) The member contribution is deleted text begin deleted text begin 10.40deleted text end percentdeleted text end new text begin the following percentagenew text end of the member's salarydeleted text begin .deleted text end new text begin :new text end
new text begin (1) before the first day of the first pay period beginning after July 1, 2011 new text end | new text begin 10.40 percent new text end | |
new text begin (2) on or after the first day of the first pay period beginning after July 1, 2011 new text end | new text begin 12.40 percent new text end |
(b) These contributions must be made by deduction from salary as provided in section 352.04, subdivision 4.
Member contribution amounts must be deducted each pay period by the department head, who shall have the total amount of the deductions paid to the commissioner of management and budget for deposit in the State Patrol retirement fund, and have a detailed report of all deductions made each pay period to the executive director of the Minnesota State Retirement System.
(a) In addition to member contributions, department heads shall pay a sum equal to deleted text begin 15.60deleted text end deleted text begin percentdeleted text end new text begin the specified percentagenew text end of the salary upon which deductions were made, which constitutes the employer contribution to the funddeleted text begin .deleted text end new text begin as follows:new text end
new text begin (1) before the first day of the first pay period beginning after July 1, 2011 new text end | new text begin 15.60 percent new text end | |
new text begin (2) on or after the first day of the first pay period beginning after July 1, 2011 new text end | new text begin 18.60 percent new text end |
(b) Department contributions must be paid out of money appropriated to departments for this purpose.
The amounts provided for in this section must be credited to the State Patrol retirement fund. All money received must be deposited by the commissioner of management and budget in the State Patrol retirement fund. The fund must be used to pay the administrative expenses of the retirement fund, and the benefits and annuities provided in this chapter.
new text begin (a) new text end The legislative auditor shall audit the fund.
new text begin (b)new text end Any actuarial valuation of the fund required under section 356.215 must be prepared by the actuary retained under section 356.214.
new text begin (c)new text end Any approved actuary retained by the executive director under section 352.03, subdivision 6, may perform actuarial valuations and experience studies to supplement those performed by the actuary retained under section 356.214. Any supplemental actuarial valuation or experience studies must be filed with the executive director of the Legislative Commission on Pensions and Retirement.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end Every member who is credited with three or more years of allowable service new text begin if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010, new text end is entitled to separate from state service and upon becoming 50 years old, is entitled to receive a life annuity, upon separation from state service.
new text begin (b)new text end Members deleted text begin shalldeleted text end new text begin must new text end apply for an annuity in a form and manner prescribed by the executive director.
new text begin (c)new text end No application may be made more than 90 days before the date the member is eligible to retire by reason of both age and service requirements.
new text begin (d)new text end An annuity begins to accrue no earlier than 180 days before the date the application is filed with the executive director.
new text begin This section is effective the day following final enactment. new text end
Any member who has become at least 50 years old and who has at least three years of allowable service new text begin if first employed before July 1, 2010, or who has at least five years of allowable service if first employed after June 30, 2010, new text end is entitled upon application to a reduced retirement annuity equal to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for each month that the member is under age 55 at the time of retirementnew text begin if first employed before July 1, 2010, or reduced by two-tenths of one percent for each month that the member is under age 55 at the time of retirement if first employed after June 30, 2010new text end .
new text begin This section is effective the day following final enactment. new text end
(a) If an active member with three or more years of allowable service new text begin if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010, new text end dies before attaining age 55, the surviving spouse is entitled to the benefit specified in subdivision 2c, paragraph (b).
(b) If an active member with less than three years of allowable service new text begin if first employed before July 1, 2010, or with fewer than five years of allowable service if first employed after June 30, 2010, new text end dies at any age, the surviving spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (c).
(c) If an active member with three or more years of allowable service new text begin if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010, new text end dies on or after attaining exact age 55, the surviving spouse is entitled to receive the benefits specified in subdivision 2c, paragraph (d).
(d) If a disabilitant dies while receiving a disability benefit under section 352B.10 or before the benefit under that section commenced, and an optional annuity was not elected under section 352B.10, subdivision 5, the surviving spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (b).
(e) If a former member with three or more years of allowable servicenew text begin if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010new text end , who terminated from service and has not received a refund or commenced receipt of any other benefit provided by this chapter, dies, the surviving spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (e).
(f) If a former member with less than three years of allowable servicenew text begin if first employed before July 1, 2010, or with fewer than five years of allowable service if first employed after June 30, 2010new text end , who terminated from service and has not received a refund or commenced receipt of any other benefit, if applicable, provided by this chapter, dies, the surviving spouse is entitled to receive the refund specified in subdivision 2c, paragraph (f).
new text begin This section is effective the day following final enactment. new text end
Any person who has been an employee covered by the Minnesota State Retirement System, or a member of the Public Employees Retirement Association including the Public Employees Retirement Association Police and Fire Fund, or the Teachers Retirement Association, or the State Patrol retirement fund, or any other public employee retirement system in Minnesota having a like provision but excluding all other funds providing benefits for police or firefighters is entitled when qualified to an annuity from each fund if total allowable service in all funds or in any two of these funds totals deleted text begin three or moredeleted text end new text begin the number of new text end yearsnew text begin of allowable service required by the applicable retirement plan with the longest vesting period for the personnew text end . No part of the allowable service upon which the retirement annuity from one fund is based may again be used in the computation for benefits from another fund. The member must not have taken a refund from any one of these funds since service entitling the member to coverage under the system or membership in any of the associations last terminated. The annuity from each fund must be determined by the appropriate law except that the requirement that a person must have at least deleted text begin threedeleted text end new text begin a specific number of new text end years allowable service in the respective system or association does not apply for the purposes of this section if the combined service in two or more of these funds equals deleted text begin three or moredeleted text end new text begin the number of new text end yearsnew text begin of allowable service required by the applicable retirement plan with the longest vesting period for the personnew text end .
new text begin This section is effective the day following final enactment. new text end
Deferred annuities must be computed according to this chapter on the basis of allowable service before termination of service and augmented as provided in this chapter. The required reserves applicable to a deferred annuity must be augmented by interest compounded annually from the first day of the month following the month in which the member terminated service, or July 1, 1971, whichever is later, to the first day of the month in which the annuity begins to accrue. The rates of interest used for this purpose deleted text begin shalldeleted text end new text begin must new text end be five percent per year compounded annually until January 1, 1981, deleted text begin and after that datedeleted text end three percent per year compounded annually new text begin after January 1, 1981, until January 1, 2012, new text end if the employee became an employee before July 1, 2006, deleted text begin and atdeleted text end 2.5 percent compounded annually if the employee becomes an employee after June 30, 2006new text begin , and two percent per year compounded annually after December 31, 2011, irrespective of when the employee was first employednew text end . The mortality table and interest assumption used to compute the annuity deleted text begin shalldeleted text end new text begin must new text end be those in effect when the member files application for annuity.
new text begin This section is effective the day following final enactment. new text end
Notwithstanding any provision of chapter 352 to the contrary, terminated hospital employees may receive a refund of employee accumulated contributions plus interest deleted text begin at the rate of six percent per year compounded annuallydeleted text end in accordance with deleted text begin Minnesota Statutes 1994,deleted text end section 352.22, subdivision 2, at any time after the transfer of employment to Fairview, University of Minnesota Physicians, or University Affiliated Family Physicians. If a terminated hospital employee has received a refund from a pension plan enumerated in section 356.30, subdivision 3, the person may not repay that refund unless the person again becomes a member of one of those enumerated plans and complies with section 356.30, subdivision 2.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) "Vesting" means obtaining a nonforfeitable entitlement to an annuity or benefit from a retirement plan administered by the Public Employees Retirement Association by having credit for sufficient allowable service under paragraph (b) or (c), whichever applies. new text end
new text begin (b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan member of the general employees retirement plan of the Public Employees Retirement Association: new text end
new text begin (1) a member who first became a public employee before July 1, 2010, is vested when the person has accrued credit for not less than three years of allowable service as defined under subdivision 16; and new text end
new text begin (2) a member who first becomes a public employee after June 30, 2010, is vested when the person has accrued credit for not less than five years of allowable service as defined under subdivision 16. new text end
new text begin (c) For purposes of qualifying for an annuity or benefit as a member of the police and fire plan or a member of the local government correctional employees retirement plan: new text end
new text begin (1) a member who first became a public employee before July 1, 2010, is vested when the person has accrued credit for not less than three years of allowable service as defined under subdivision 16; and new text end
new text begin (2) a member who first becomes a public employee after June 30, 2010, is vested at the following percentages when the person has accrued credited allowable service as defined under subdivision 16, as follows: new text end
new text begin (i) 50 percent after five years; new text end
new text begin (ii) 60 percent after six years; new text end
new text begin (iii) 70 percent after seven years; new text end
new text begin (iv) 80 percent after eight years; new text end
new text begin (v) 90 percent after nine years; and new text end
new text begin (vi) 100 percent after ten years. new text end
new text begin This section is effective the day following final enactment. new text end
(a) For a basic member, the employee contribution is 9.10 percent of salary. For a coordinated member, the employee contribution is deleted text begin six percentdeleted text end new text begin the following percentage new text end of salary plus any contribution rate adjustment under subdivision 3bdeleted text begin .deleted text end new text begin :new text end
new text begin Effective before January 1, 2011 new text end | new text begin 6.00 new text end | |
new text begin Effective after December 31, 2010 new text end | new text begin 6.25 new text end |
(b) These contributions must be made by deduction from salary as defined in section 353.01, subdivision 10, in the manner provided in subdivision 4. If any portion of a member's salary is paid from other than public funds, the member's employee contribution must be based on the total salary received by the member from all sources.
new text begin This section is effective the day following final enactment. new text end
(a) For a basic member, the employer contribution is 9.10 percent of salary. For a coordinated member, the employer contribution is deleted text begin six percentdeleted text end new text begin the following percentage new text end of salary plus any contribution rate adjustment under subdivision 3bdeleted text begin .deleted text end new text begin :new text end
new text begin Effective before January 1, 2011 new text end | new text begin 6.00 new text end | |
new text begin Effective after December 31, 2010 new text end | new text begin 6.25 new text end |
(b) This contribution must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.
new text begin This section is effective the day following final enactment. new text end
(a) For purposes of this sectiondeleted text begin ,deleted text end new text begin :new text end
new text begin (1)new text end a contribution sufficiency exists if the total of the employee contribution under subdivision 2, the employer contribution under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirementdeleted text begin . For purposes of this section,deleted text end new text begin ; andnew text end
new text begin (2)new text end a contribution deficiency exists if the total of the employee contributions under subdivision 2, the employer contributions under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision is less than the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.
(b) Employee and employer contributions under subdivisions 2 and 3 must be adjusted:
(1) if, new text begin on or new text end after July 1, 2010, the regular actuarial deleted text begin valuationsdeleted text end new text begin valuation new text end of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 deleted text begin indicatedeleted text end new text begin indicates new text end that there is a contribution sufficiency under paragraph (a) deleted text begin equal to ordeleted text end greater than deleted text begin 0.5deleted text end new text begin one new text end percent of covered payroll new text begin and that the sufficiency has existed new text end for new text begin at least new text end two consecutive years, the coordinated program employee and employer contribution rates must be decreased as determined under paragraph (c) to a level such that the sufficiency deleted text begin equalsdeleted text end new text begin is new text end no deleted text begin moredeleted text end new text begin greater new text end than deleted text begin 0.25deleted text end new text begin one new text end percent of covered payroll based on the most recent actuarial valuation; or
(2) if, new text begin on or new text end after July 1, 2010, the regular actuarial deleted text begin valuationsdeleted text end new text begin valuation new text end of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 deleted text begin indicatedeleted text end new text begin indicates new text end that there is a new text begin contribution new text end deficiency equal to or greater than 0.5 percent of covered payroll new text begin and that the deficiency has existed new text end for new text begin at least new text end two consecutive years, the coordinated program employee and employer contribution rates must be increased as determined under paragraph deleted text begin (c)deleted text end new text begin (d) new text end to a level such that no deficiency exists based on the most recent actuarial valuation.
(c) deleted text begin The contribution rate increase or decrease must be determined by the executive director of the Public Employees Retirement Association, must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1, and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination by the executive director that a contribution deficiency or sufficiency has existed for two consecutive fiscal years based on the most recent actuarial valuations under section 356.215.deleted text end If the actuarially required contribution deleted text begin exceeds ordeleted text end is less than the total support provided by the combined employee and employer contribution rates new text begin under subdivisions 2, 3, and 3a, new text end by more than deleted text begin 0.5deleted text end new text begin one new text end percent of covered payroll, the coordinated program employee and employer contribution rates new text begin under subdivisions 2 and 3 new text end must be deleted text begin adjusteddeleted text end new text begin decreased new text end incrementally over one or more years new text begin by no more than 0.25 percent of pay each for employee and employer matching contribution rates new text end to a level such that there remains a contribution sufficiency of deleted text begin no more than 0.25deleted text end new text begin at least one new text end percent of covered payroll.new text begin No contribution rate decrease may be made until at least two years have elapsed since any adjustment under this subdivision has been fully implemented.new text end
(d) deleted text begin Nodeleted text end new text begin If the actuarially required contribution exceeds the total support provided by the combined employee and employer contribution rates under subdivisions 2, 3, and 3a, the employee and matching employer contribution rates must be increased equally to eliminate that contribution deficiency. If the contribution deficiency is:new text end
new text begin (1) less than two percent, the new text end incremental deleted text begin adjustmentdeleted text end new text begin increase new text end may deleted text begin exceeddeleted text end new text begin be up to new text end 0.25 percent for deleted text begin eitherdeleted text end the deleted text begin coordinated programdeleted text end employee and new text begin matching new text end employer contribution rates deleted text begin per year in which any adjustment is implemented. A contribution rate adjustment under this subdivision must not be made until at least two years have passed since fully implementing a previous adjustment under this subdivision.deleted text end new text begin ;new text end
new text begin (2) greater than 1.99 percent and less than 4.01 percent, the incremental increase may be up to 0.5 percent for the employee and matching employer contribution rates; or new text end
new text begin (3) greater than four percent, the incremental increase may be up to 0.75 percent for the employee and matching employer contribution. new text end
new text begin (e) Any recommended adjustment to the contribution rates must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement by January 15 following receipt of the most recent annual actuarial valuation prepared under section 356.215. If the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, the recommended adjustment becomes effective on the first day of the first full payroll period in the fiscal year following receipt of the most recent actuarial valuation that gave rise to the adjustment. new text end
new text begin (f) A contribution sufficiency of up to one percent of covered payroll must be held in reserve to be used to offset any future actuarially required contributions that are more than the total combined employee and employer contributions under subdivisions 2, 3, and 3a. new text end
new text begin (g) Before any reduction in contributions to eliminate a sufficiency in excess of one percent of covered pay may be recommended, the executive director must review any need for a change in actuarial assumptions, as recommended by the actuary retained under section 356.214 in the most recent experience study of the general employees retirement plan prepared under section 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement that may result in an increase in the actuarially required contribution and must report to the Legislative Commission on Pensions and Retirement any recommendation by the board to use the sufficiency exceeding one percent of covered payroll to offset the impact of an actuarial assumption change recommended by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the commission under section 356.214, subdivision 4. new text end
new text begin (h) No contribution sufficiency in excess of one percent of covered pay may be proposed to be used to increase benefits, and no benefit increase may be proposed that would initiate an automatic adjustment to increase contributions under this subdivision. Any proposed benefit improvement must include a recommendation, prepared by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative Commission on Pensions and Retirement as provided under section 356.214, subdivision 4, on how the benefit modification will be funded. new text end
new text begin This section is effective the day following final enactment. new text end
Upon termination of membership, a person who has attained normal retirement age and who deleted text begin received credit for not less than three years of allowable servicedeleted text end new text begin is vested under section 353.01, subdivision 47, new text end is entitled upon application to a retirement annuity. The retirement annuity is known as the "normal" retirement annuity.
new text begin This section is effective the day following final enactment. new text end
Upon termination of public service, a person who first became a public employee or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, who has become at least 55 years old but not normal retirement age, and deleted text begin has received credit for at least three years of allowable servicedeleted text end new text begin is vested under section 353.01, subdivision 47, new text end is entitlednew text begin ,new text end upon applicationnew text begin ,new text end to a retirement annuity in an amount equal to the normal annuity provided in section 353.29, subdivision 3, paragraph (a), reduced by one-quarter of one percent for each month that the member is under normal retirement age at the time of retirement.
new text begin This section is effective the day following final enactment. new text end
If a member or former member who terminated public service dies before retirement or before receiving any retirement annuity and no other payment of any kind is or may become payable to any person, a refund deleted text begin shall be paiddeleted text end new text begin is payable new text end to the designated beneficiary or, if there be none, to the surviving spouse, or, if none, to the legal representative of the decedent's estate. deleted text begin Suchdeleted text end new text begin The new text end refund deleted text begin shalldeleted text end new text begin must new text end be in an amount equal to accumulated deductions plus new text begin annual compound new text end interest thereon at the rate deleted text begin of six percent per annum compounded annuallydeleted text end new text begin specified in section 353.34, subdivision 2, and new text end less the sum of any disability or survivor benefits, if any, that may have been paid by the fund; provided that a survivor who has a right to benefits deleted text begin pursuant todeleted text end new text begin under new text end section 353.31 may waive such benefits in writing, except such benefits for a dependent child under the age of 18 years may only be waived deleted text begin pursuant todeleted text end new text begin under new text end an order of the district court.
new text begin This section is effective the day following final enactment. new text end
(a) If a member or former member who deleted text begin has credit for not less than three years of allowable servicedeleted text end new text begin is vested under section 353.01, subdivision 47, new text end and new text begin who new text end dies before the annuity or disability benefit begins to accrue under section 353.29, subdivision 7, or 353.33, subdivision 2, notwithstanding any designation of beneficiary to the contrary, the surviving spouse may elect to receive, instead of a refund with interest under subdivision 1, or surviving spouse benefits otherwise payable under section 353.31, an annuity equal to a 100 percent joint and survivor annuity computed consistent with section 353.30, subdivision 1a, 1c, or 5, whichever is applicable.
(b) If a member first became a public employee or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, and has credit for at least 30 years of allowable service on the date of death, the surviving spouse may elect to receive a 100 percent joint and survivor annuity computed using section 353.30, subdivision 1b, except that the early retirement reduction under that provision will be applied from age 62 back to age 55 and one-half of the early retirement reduction from age 55 back to the age payment begins.
(c) If a member who was under age 55 and deleted text begin has credit for at least three years of allowable servicedeleted text end new text begin who is vested under section 353.01, subdivision 47, new text end dies, but did not qualify for retirement on the date of death, the surviving spouse may elect to receive a 100 percent joint and survivor annuity computed using section 353.30, subdivision 1c or 5, as applicable, except that the early retirement reduction specified in the applicable subdivision will be applied to age 55 and one-half of the early retirement reduction from age 55 back to the age payment begins.
(d) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 20, a former spouse of the member, if any, is entitled to a portion of the monthly surviving spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed with the association. If there is no surviving spouse or child or children, a former spouse may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a marriage dissolution decree, but not a monthly surviving spouse optional annuity, despite the terms of a marriage dissolution decree filed with the association.
(e) The surviving spouse eligible for surviving spouse benefits under paragraph (a) may apply for the annuity at any time after the date on which the deceased employee would have attained the required age for retirement based on the employee's allowable service. The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) may apply for an annuity any time after the member's death.
(f) Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision.
(g) An amount equal to any excess of the accumulated contributions that were credited to the account of the deceased employee over and above the total of the annuities paid and payable to the surviving spouse must be paid to the surviving spouse's estate.
(h) A member may specify in writing, with the signed consent of the spouse, that this subdivision does not apply and that payment may be made only to the designated beneficiary as otherwise provided by this chapter. The waiver of a surviving spouse annuity under this section does not make a dependent child eligible for benefits under subdivision 1c.
(i) If the deceased member or former member first became a public employee or a member of a public pension plan listed in section 356.30, subdivision 3, on or after July 1, 1989, a survivor annuity computed under paragraph (a) or (c) must be computed as specified in section 353.30, subdivision 5, except for the revised early retirement reduction specified in paragraph (c), if paragraph (c) is the applicable provision.
(j) For any survivor annuity determined under this subdivision, the payment is to be based on the total allowable service that the member had accrued as of the date of death and the age of the member and surviving spouse on that date.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end A coordinated or basic member who deleted text begin has at least three years of allowable servicedeleted text end new text begin is vested under section 353.01, subdivision 47, new text end and new text begin who new text end becomes totally and permanently disabled before normal retirement age, upon application as defined under section 353.031, is entitled to a disability benefit in an amount determined under subdivision 3.
new text begin (b)new text end If the disabled person's public service has terminated at any time, at least two of the deleted text begin required threedeleted text end years of allowable service new text begin required to be vested under section 353.01, subdivision 47, new text end must have been rendered after last becoming an active member.
new text begin This section is effective the day following final enactment. new text end
(a) A former member is entitled to new text begin either new text end a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity under subdivision 3. Application for a refund may not be made before the date of termination of public service. Except as specified in paragraph (b), a refund must be paid within 120 days following receipt of the application unless the applicant has again become a public employee required to be covered by the association.
(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a refund is not payable before termination of service under section 353.01, subdivision 11a.
(c) An individual who terminates public service covered by the Public Employees Retirement Association general employees retirement plan, the Public Employees Retirement Association police and fire retirement plan, or the public employees local government deleted text begin correctionsdeleted text end new text begin correctional new text end service retirement plan, and who is employed by a different employer and who becomes an active member covered by one of the other two plans, may receive a refund of employee contributions plus deleted text begin six percentdeleted text end new text begin annual compound new text end interest deleted text begin compounded annuallydeleted text end from the plan from which the member terminated servicenew text begin at the applicable rate specified in subdivision 2new text end .
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end Except as provided in subdivision 1, any person who ceases to be a public employee deleted text begin shalldeleted text end new text begin is entitled to new text end receive a refund in an amount equal to accumulated deductions with new text begin annual compound new text end interest to the first day of the month in which the refund is processed deleted text begin at the rate of six percent compounded annually based on fiscal year balancesdeleted text end .
new text begin (b) For a person who ceases to be a public employee before July 1, 2011, the refund interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the refund interest is at the rate of four percent. new text end
new text begin (c)new text end If a person repays a refund and subsequently applies for another refund, the repayment amount, including interest, is added to the fiscal year balance in which the repayment was made.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end A member deleted text begin with at least three years of allowable servicedeleted text end new text begin who is vested under section 353.01, subdivision 47, new text end when termination of public service or termination of membership occurs has the option of leaving the accumulated deductions in the fund and being entitled to a deferred retirement annuity commencing at normal retirement age or to a deferred early retirement annuity under section 353.30, subdivision 1a, 1b, 1c, or 5.
new text begin (b)new text end The deferred annuity must be computed under section 353.29, subdivision 3, on the basis of the law in effect on the date of termination of public service or termination of membership, whichever is earlier, and must be augmented as provided in section 353.71, subdivision 2.
new text begin (c)new text end A former member qualified to apply for a deferred retirement annuity may revoke this option at any time before the commencement of deferred annuity payments by making application for a refund. The person is entitled to a refund of accumulated member contributions within 30 days following date of receipt of the application by the executive director.
new text begin This section is effective the day following final enactment. new text end
The employee contribution is 9.4 percent of the salary of the membernew text begin in calendar year 2010 and is 9.6 percent of the salary of the member in each calendar year after 2010new text end . This contribution must be made by deduction from salary in the manner provided in subdivision 4. Where any portion of a member's salary is paid from other than public funds, the member's employee contribution is based on the total salary received from all sources.
new text begin This section is effective the day following final enactment. new text end
The employer contribution is 14.1 percent of the salary of the membernew text begin in calendar year 2010 and is 14.4 percent of the salary of the member in each calendar year after 2010new text end . This contribution must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.
new text begin This section is effective the day following final enactment. new text end
Upon separation from public service, any police officer or firefighter member who has attained the age of at least 55 years and who deleted text begin received credit for not less than three years of allowable servicedeleted text end new text begin is vested under section 353.01, subdivision 47, new text end is entitled upon application to a retirement annuitydeleted text begin . Such retirement annuity isdeleted text end new text begin ,new text end known as the "normal" retirement annuity.
new text begin This section is effective the day following final enactment. new text end
(a) A person who becomes a police and fire plan member after June 30, 2007, or a former member who is reinstated as a member of the plan after that date, who is at least 50 years of age deleted text begin with at least three years of allowable servicedeleted text end new text begin and who is vested under section 353.01, subdivision 47new text end , upon the termination of public service is entitled upon application to a retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by two-tenths of one percent for each month that the member is under age 55 at the time of retirement.
(b) Upon the termination of public service, any police and fire plan member not specified in paragraph (a), upon attaining at least 50 years of age with at least three years of allowable service is entitled upon application to a retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for each month that the member is under age 55 at the time of retirement.
new text begin This section is effective the day following final enactment. new text end
(a) In the event that a member of the police and fire fund dies from any cause before retirement or before becoming disabled and receiving disability benefits, the association shall grant survivor benefits to a surviving spouse, as defined in section 353.01, subdivision 20, and to a dependent child or children, as defined in section 353.01, subdivision 15, except that if the death is not a line of duty death, the member must deleted text begin have accrued at least three years of credited servicedeleted text end new text begin be vested under section 353.01, subdivision 47new text end .
(b) Notwithstanding the definition of surviving spouse, a former spouse of the member, if any, is entitled to a portion of the monthly surviving spouse benefit if stipulated under the terms of a marriage dissolution decree filed with the association. If there is no surviving spouse or child or children, a former spouse may be entitled to a lump-sum refund payment under section 353.32, subdivision 1, if provided for in a marriage dissolution decree but not a monthly surviving spouse benefit despite the terms of a marriage dissolution decree filed with the association.
(c) The spouse and child or children are entitled to monthly benefits as provided in subdivisions 2 to 4.
new text begin This section is effective the day following final enactment. new text end
(a) If a member or former member who has attained the age of at least 50 years and deleted text begin has credit for not less than three years allowable servicedeleted text end new text begin either who is vested under section 353.01, subdivision 47, new text end or who has credit for at least 30 years of allowable service, regardless of age attained, dies before the annuity or disability benefit becomes payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse may elect to receive a death while eligible survivor benefit.
(b) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 20, a former spouse of the member, if any, is entitled to a portion of the death while eligible survivor benefit if stipulated under the terms of a marriage dissolution decree filed with the association. If there is no surviving spouse or child or children, a former spouse may be entitled to a lump-sum refund payment under section 353.32, subdivision 1, if provided for in a marriage dissolution decree but not a death while eligible survivor benefit despite the terms of a marriage dissolution decree filed with the association.
(c) The benefit may be elected instead of a refund with interest under section 353.32, subdivision 1, or surviving spouse benefits otherwise payable under subdivisions 1 and 2. The benefit must be an annuity equal to the 100 percent joint and survivor annuity which the member could have qualified for on the date of death, computed as provided in sections 353.651, subdivisions 2 and 3, and 353.30, subdivision 3.
(d) The surviving spouse may apply for the annuity at any time after the date on which the deceased employee would have attained the required age for retirement based on the employee's allowable service. Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity payable under this subdivision.
(e) No payment accrues beyond the end of the month in which entitlement to such annuity has terminated. An amount equal to the excess, if any, of the accumulated contributions which were credited to the account of the deceased employee over and above the total of the annuities paid and payable to the surviving spouse must be paid to the deceased member's last designated beneficiary or, if none, to the legal representative of the estate of such deceased member.
(f) Any member may request in writing, with the signed consent of the spouse, that this subdivision not apply and that payment be made only to the designated beneficiary, as otherwise provided by this chapter.
(g) For a member who is employed as a full-time firefighter by the Department of Military Affairs of the state of Minnesota, allowable service as a full-time state Military Affairs Department firefighter credited by the Minnesota State Retirement System may be used in meeting the minimum allowable service requirement of this subdivision.
new text begin This section is effective the day following final enactment. new text end
Any person who has been a member of new text begin a defined benefit retirement plan administered by new text end the Public Employees Retirement Association, or new text begin a retirement plan administered by new text end the Minnesota State Retirement System, or the Teachers Retirement Association, or any other public retirement system in the state of Minnesota having a like provision, except a deleted text begin funddeleted text end new text begin retirement plan new text end providing benefits for police officers or firefighters governed by sections 69.77 or 69.771 to 69.776, deleted text begin shall bedeleted text end new text begin is new text end entitlednew text begin ,new text end when qualifiednew text begin ,new text end to an annuity from each deleted text begin funddeleted text end new text begin retirement plan new text end if the total allowable service in all deleted text begin fundsdeleted text end new text begin retirement plans new text end or in any two of these deleted text begin fundsdeleted text end new text begin retirement plans new text end totals deleted text begin three or more yearsdeleted text end new text begin the number of years of allowable service required to receive a normal retirement annuity for that retirement plannew text end , provided new text begin that new text end no portion of the allowable service upon which the retirement annuity from one deleted text begin funddeleted text end new text begin retirement plan new text end is based is again used in the computation for benefits from another deleted text begin funddeleted text end new text begin retirement plan new text end and provided further that the person has not taken a refund from any one of these deleted text begin fundsdeleted text end new text begin retirement plans new text end since the person's membership in that association or system last terminated. The annuity from each fund deleted text begin shalldeleted text end new text begin must new text end be determined by the appropriate provisions of the law except that the requirement that a person must have at least deleted text begin three yearsdeleted text end new text begin a specific minimum period new text end of allowable service in the respective association or system deleted text begin shalldeleted text end new text begin does new text end not apply for the purposes of this section deleted text begin provideddeleted text end new text begin if new text end the combined service in two or more of these deleted text begin fundsdeleted text end new text begin retirement plans new text end equals deleted text begin three or moredeleted text end new text begin the number of new text end yearsnew text begin of allowable service required to receive a normal retirement annuity for that retirement plannew text end .
new text begin This section is effective the day following final enactment. new text end
(a) The deferred annuity accruing under subdivision 1, or under sections 353.34, subdivision 3, and 353.68, subdivision 4, must be computed on the basis of allowable service prior to the termination of public service and augmented as provided in this deleted text begin paragraphdeleted text end new text begin subdivisionnew text end . The required reserves applicable to a deferred annuity, or to any deferred segment of an annuity must be determined as of the first day of the month following the month in which the former member ceased to be a public employee, or July 1, 1971, whichever is later. deleted text begin Thesedeleted text end
new text begin (b) For a person who became a public employee before July 1, 2006, whose period of deferral began after June 30, 1971, and who terminated public employment before January 1, 2012, thenew text end required reserves new text begin of the deferred annuity new text end must be augmented at the new text begin following applicable new text end rate deleted text begin ofdeleted text end new text begin or rates:new text end
new text begin (1) new text end five percent deleted text begin annually compounded annuallydeleted text end new text begin annual compound interest new text end until January 1, 1981deleted text begin , and at the rate ofdeleted text end new text begin ;new text end
new text begin (2) new text end three percent deleted text begin thereafterdeleted text end new text begin annual compound interest after January 1, 1981, or until the earlier of December 31, 2011, or after the date of the termination of public service or the termination of membership, whichever is later, new text end until January 1 of the year following the year in which the former member attains age 55 deleted text begin anddeleted text end new text begin ;new text end
new text begin (3) five percent annual compound interestnew text end from deleted text begin that date to the effective date of retirement, the rate is five percent compounded annually if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes andeleted text end new text begin January 1 of the year following the year in which the former member attains age 55, or until December 31, 2011, whichever is earlier; andnew text end
new text begin (4) one percent annual compound interest from January 1, 2012. new text end
new text begin (c) For a person who became a publicnew text end employee after June 30, 2006new text begin , and who terminated public employment before January 1, 2012, the required reserves of the deferred annuity must be augmented at 2.5 percent annual compound interest from the date of termination of public service or termination of membership, whichever is earlier, until December 31, 2011, and one percent annual compound interest after December 31, 2011new text end .
new text begin (d) For a person who terminates public employment after December 31, 2011, the required reserves of the deferred annuity must not be augmented. new text end
new text begin (e)new text end If a person has more than one period of uninterrupted service, the required reserves related to each period must be augmented as specified in this paragraph. The sum of the augmented required reserves is the present value of the annuity. Uninterrupted service for the purpose of this subdivision means periods of covered employment during which the employee has not been separated from public service for more than two years. If a person repays a refund, the restored service must be considered as continuous with the next period of service for which the employee has credit with this association. This section must not reduce the annuity otherwise payable under this chapter. This paragraph applies to individuals who become deferred annuitants on or after July 1, 1971. For a member who became a deferred annuitant before July 1, 1971, the paragraph applies from July 1, 1971, if the former active member applies for an annuity after July 1, 1973.
deleted text begin (b)deleted text end new text begin (f) new text end The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former member who terminated service before July 1, 1997, or the survivor benefit payable on behalf of a basic or police and fire member who was receiving disability benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and tables adopted by the board and approved by the actuary retained under section 356.214.
new text begin This section is effective the day following final enactment. new text end
After termination of public employment, an employee covered under section 353E.02 who has attained the age of at least 55 years and deleted text begin has credit for not less than three years of coveragedeleted text end new text begin who is vested under section 353.01, subdivision 47, new text end in the local government correctional service plan is entitled, upon application, to a normal retirement annuity. Instead of a normal retirement annuity, a retiring employee may elect to receive the optional annuity provided in section 353.30, subdivision 3.
new text begin This section is effective the day following final enactment. new text end
An employee covered under section 353E.02 who has attained the age of at least 50 years and deleted text begin has credit for not less than three years of coveragedeleted text end new text begin who is vested under section 353.01, subdivision 47, new text end in the local government correctional service plan is entitled, upon application, to a reduced retirement annuity equal to the annuity calculated under subdivision 3, reduced so that the reduced annuity is the actuarial equivalent of the annuity that would be payable if the employee deferred receipt of the annuity from the day the annuity begins to accrue until age 55.
new text begin This section is effective the day following final enactment. new text end
If a member or former member of the local government correctional service retirement plan who has attained the age of at least 50 years and deleted text begin has credit for not less than three years of allowable servicedeleted text end new text begin who is vested under section 353.01, subdivision 47, new text end dies before the annuity or disability benefit has become payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse may elect to receive, in lieu of a refund with interest provided in section 353.32, subdivision 1, a surviving spouse annuity equal to the 100 percent joint and survivor annuity for which the member could have qualified had the member terminated service on the date of death.
new text begin This section is effective the day following final enactment. new text end
If the member was under age 50, dies, and deleted text begin had credit for not less than three years of allowable servicedeleted text end new text begin was vested under section 353.01, subdivision 47, new text end on the date of death but did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and the surviving spouse at the time of death. The annuity is payable using the early retirement reduction under section 353E.04, subdivision 4, to age 50 and one-half the early retirement reduction from age 50 to the age payment begins. Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision.
new text begin This section is effective the day following final enactment. new text end
Notwithstanding any provision of chapter 353 to the contrary, a terminated medical facility or other public employing unit employee is eligible to receive a retirement annuity under section 353.29 of the edition of Minnesota Statutes published in the year before the year in which the privatization occurred, without regard to the requirement deleted text begin for three years of allowable servicedeleted text end new text begin specified in section 353.01, subdivision 47new text end .
new text begin This section is effective the day following final enactment. new text end
(a) For a basic member, the employee contribution to the fund is deleted text begin 9.0 percentdeleted text end new text begin the following percentage new text end of the member's salarydeleted text begin .deleted text end new text begin :new text end
new text begin before July 1, 2011 new text end | new text begin 9.0 percent new text end | |
new text begin from July 1, 2011, until June 30, 2012 new text end | new text begin 9.5 percent new text end | |
new text begin from July 1, 2012, until June 30, 2013 new text end | new text begin 10.0 percent new text end | |
new text begin from July 1, 2013, until June 30, 2014 new text end | new text begin 10.5 percent new text end | |
new text begin after June 30, 2014 new text end | new text begin 11.0 percent new text end |
new text begin (b)new text end For a coordinated member, the employee contribution is deleted text begin 5.5 percentdeleted text end new text begin the following percentage new text end of the member's salarydeleted text begin .deleted text end new text begin :new text end
new text begin before July 1, 2011 new text end | new text begin 5.5 percent new text end | |
new text begin from July 1, 2011, until June 30, 2012 new text end | new text begin 6.0 percent new text end | |
new text begin from July 1, 2012, until June 30, 2013 new text end | new text begin 6.5 percent new text end | |
new text begin from July 1, 2013, until June 30, 2014 new text end | new text begin 7.0 percent new text end | |
new text begin after June 30, 2014 new text end | new text begin 7.5 percent new text end |
new text begin (c) When an employee contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid for each employer unit with the first payroll cycle reported. new text end
new text begin (d) After June 30, 2015, if a contribution rate revision is required under subdivisions 4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted accordingly. new text end
deleted text begin (b)deleted text end new text begin (e) new text end This contribution must be made by deduction from salary. Where any portion of a member's salary is paid from other than public funds, the member's employee contribution must be based on the entire salary received.
new text begin This section is effective the day following final enactment. new text end
(a) The deleted text begin regular employer contribution to the fund by Special School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated member and 9.0 percent of the salary of each of its teachers who is a basic member. After July 1, 2007, thedeleted text end regular employer contribution to the fund by Special School District No. 1, Minneapolis, is an amount equal to deleted text begin 5.5 percentdeleted text end new text begin the applicable following percentage new text end of salary of each coordinated member and deleted text begin 9.5 percentdeleted text end new text begin the applicable following percentage new text end of salary of each basic memberdeleted text begin .deleted text end new text begin :new text end
new text begin Period new text end | new text begin Coordinated Member new text end | new text begin Basic Member new text end | |||
new text begin before July 1, 2011 new text end | new text begin 5.5 percent new text end | new text begin 9.5 percent new text end | |||
new text begin from July 1, 2011, until June 30, 2012 new text end | new text begin 6.0 percent new text end | new text begin 10.0 percent new text end | |||
new text begin from July 1, 2012, until June 30, 2013 new text end | new text begin 6.5 percent new text end | new text begin 10.5 percent new text end | |||
new text begin from July 1, 2013, until June 30, 2014 new text end | new text begin 7.0 percent new text end | new text begin 11.0 percent new text end | |||
new text begin after June 30, 2014 new text end | new text begin 7.5 percent new text end | new text begin 11.5 percent new text end |
The additional employer contribution to the fund by Special School District No. 1, Minneapolis, deleted text begin after July 1, 2006,deleted text end is an amount equal to 3.64 percent of the salary of each teacher who is a coordinated member or is a basic member.
(b) The employer contribution to the fund for every other employer is an amount equal to deleted text begin 5.0 percentdeleted text end new text begin the applicable following percentage new text end of the salary of each coordinated member and deleted text begin 9.0 percentdeleted text end new text begin the applicable following percentage new text end of the salary of each basic member deleted text begin before July 1, 2007, and 5.5 percent of the salary of each coordinated member and 9.5 percent of the salary of each basic member after June 30, 2007.deleted text end new text begin :new text end
new text begin Period new text end | new text begin Coordinated Member new text end | new text begin Basic Member new text end | |||
new text begin before July 1, 2011 new text end | new text begin 5.5 percent new text end | new text begin 9.5 percent new text end | |||
new text begin from July 1, 2011, until June 30, 2012 new text end | new text begin 6.0 percent new text end | new text begin 10.0 percent new text end | |||
new text begin from July 1, 2012, until June 30, 2013 new text end | new text begin 6.5 percent new text end | new text begin 10.5 percent new text end | |||
new text begin from July 1, 2013, until June 30, 2014 new text end | new text begin 7.0 percent new text end | new text begin 11.0 percent new text end | |||
new text begin after June 30, 2014 new text end | new text begin 7.5 percent new text end | new text begin 11.5 percent new text end |
new text begin (c) When an employer contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid for each employer unit with the first payroll cycle reported. new text end
new text begin (d) After June 30, 2015, if a contribution rate revision is made under subdivisions 4a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted accordingly. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) For purposes of this section, a contribution sufficiency exists if the total of the employee contributions, the employer contributions, and any additional employer contributions, if applicable, exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. new text end
new text begin (b) For purposes of this section, a contribution deficiency exists if the total of the employee contributions, the employer contributions, and any additional employer contributions are less than the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Notwithstanding the contribution rate provisions under subdivisions 2 and 3, the employee and employer contribution rates may be adjusted as follows: new text end
new text begin (1) if, after June 30, 2015, the regular actuarial valuation of the plan under section 356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to or greater than one percent of covered payroll and the sufficiency has existed for at least two consecutive years, the employee and employer contribution rates for the plan may each be decreased to a level such that the sufficiency equals no more than one percent of covered payroll based on the most recent actuarial valuation; or new text end
new text begin (2) if, after June 30, 2015, the regular valuation of the plan under section 356.215 indicates that there is a deficiency equal to or greater than 0.25 percent of covered payroll and the deficiency has existed for at least two consecutive years, the employee and employer contribution rates for the applicable plan may each be increased by: new text end
new text begin (i) 0.25 percent if the deficiency is less than 2.00 percent of covered payroll; new text end
new text begin (ii) 0.5 percent if the deficiency is equal to or greater than 2.00 percent of covered payroll and less than or equal to four percent; and new text end
new text begin (iii) 0.75 percent if the deficiency is greater than four percent. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) A contribution sufficiency of up to one percent of covered payroll must be held in reserve to be used to offset any future actuarially required contributions that are more than the total combined employee and employer contributions being collected. new text end
new text begin (b) Before any reduction in contributions to eliminate a sufficiency in excess of one percent of covered pay may be recommended, the executive director must review any need for a change in actuarial assumptions, as recommended by the actuary retained under section 356.214 in the most recent experience study of the retirement plan, that may result in an increase in the actuarially required contribution and must report to the Legislative Commission on Pensions and Retirement any recommendation by the board to use the sufficiency exceeding one percent of covered payroll to offset the impact of an actuarial assumption change recommended by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the commission under section 356.214, subdivision 4. new text end
new text begin (c) A contribution sufficiency in excess of one percent of covered pay must not be used to increase benefits, and a benefit increase must not be proposed that would initiate an automatic adjustment under this section to increase contributions. A proposed benefit improvement must include a recommendation, prepared by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative Commission on Pensions and Retirement, as provided under section 356.214, subdivision 4, on the manner in which the benefit modification is to be funded. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin A contribution rate increase or decrease under subdivision 4b, as determined by the executive director of the Teachers Retirement Association, must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1 and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination by the executive director that a contribution deficiency or sufficiency exists based on the most recent actuarial valuation under section 356.215. new text end
new text begin This section is effective the day following final enactment. new text end
(a) If a member dies before retirement and is covered under section 354.44, subdivision 2, and neither an optional annuity, nor a reversionary annuity, nor a benefit under section 354.46, subdivision 1, is payable to the survivors if the member was a basic member, then the surviving spouse, or if there is no surviving spouse, the designated beneficiary is entitled to an amount equal to the member's accumulated deductions with interest credited to the account of the member to the date of death of the member. If the designated beneficiary is a minor, interest must be credited to the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier.
(b) If a member dies before retirement and is covered under section 354.44, subdivision 6, and neither an optional annuity, nor reversionary annuity, nor the benefit described in section 354.46, subdivision 1, is payable to the survivors if the member was a basic member, then the surviving spouse, or if there is no surviving spouse,new text begin then new text end the designated beneficiary is entitled to deleted text begin an amount equal to the member's accumulated deductions credited to the account of the member as of June 30, 1957, and from July 1, 1957, to the date of death of the member, the member's accumulated deductions plus six percent interest compounded annually.deleted text end new text begin a refund equal to the accumulated deductions credited to the member's account plus interest compounded annually until the member's date of death using the following interest rates:new text end
new text begin (1) before July 1, 1957, no interest accrues; new text end
new text begin (2) July 1, 1957, to June 30, 2011, six percent; and new text end
new text begin (3) after June 30, 2011, four percent. new text end
(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited under that paragraph must be credited to the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier.
(d) The amount of any refund payable under this subdivision must be reduced by any permanent disability payment under section 354.48 received by the member.
new text begin This section is effective the day following final enactment. new text end
(a) Except as provided in section 354.44, subdivision 1, any person who ceases to be a member by reason of termination of teaching service, is entitled to receive a refund in an amount equal to the accumulated deductions credited to the account deleted text begin as of June 30, 1957, and after July 1, 1957, the accumulated deductions with interest at the rate of six percent per annum compounded annually.deleted text end new text begin plus interest compounded annually using the following interest rates:new text end
new text begin (1) before July 1, 1957, no interest accrues; new text end
new text begin (2) July 1, 1957, to June 30, 2011, six percent; and new text end
new text begin (3) after June 30, 2011, four percent. new text end
For the purpose of this subdivision, interest must be computed on fiscal year end balances to the first day of the month in which the refund is issued.
(b) If the person has received permanent disability payments under section 354.48, the refund amount must be reduced by the amount of those payments.
new text begin This section is effective the day following final enactment. new text end
(a) Any person covered under section 354.44, subdivision 6, who ceases to render teaching service, may leave the person's accumulated deductions in the fund for the purpose of receiving a deferred annuity at retirement.
(b) The amount of the deferred retirement annuity is determined by section 354.44, subdivision 6, and augmented as provided in this subdivision. The required reserves for the annuity which had accrued when the member ceased to render teaching service must be augmented, as further specified in this subdivision, by new text begin the applicable new text end interest new text begin rate new text end compounded annually from the first day of the month following the month during which the member ceased to render teaching service to the effective date of retirement.
(c) No augmentation is not creditable if the deferral period is less than three months or if deferral commenced before July 1, 1971.
(d) For persons who became covered employees before July 1, 2006, with a deferral period commencing after June 30, 1971, the annuity must be augmented deleted text begin usingdeleted text end new text begin as follows:new text end
new text begin (1) new text end five percent interest compounded annually until January 1, 1981deleted text begin , anddeleted text end new text begin ;new text end
new text begin (2)new text end three percent interest compounded annually deleted text begin thereafterdeleted text end new text begin from January 1, 1981,new text end until January 1 of the year following the year in which the deferred annuitant attains age 55deleted text begin .deleted text end new text begin ;new text end
deleted text begin From that datedeleted text end new text begin (3) five percent interest compounded annually from the date established in clause (2) new text end to the effective date of retirementdeleted text begin , the rate is five percent compounded annually.deleted text end new text begin or until June 30, 2012, whichever is earlier; andnew text end
new text begin (4) two percent interest compounded annually after June 30, 2012. new text end
(e) For persons who become covered employees after June 30, 2006, the interest rate used to augment the deferred annuity is 2.5 percent interest compounded annuallynew text begin until June 30, 2012, or until the effective date of retirement, whichever is earlier, and two percent interest compounded annually after June 30, 2012new text end .
(f) If a person has more than one period of uninterrupted service, a separate average salary determined under section 354.44, subdivision 6, must be used for each period and the required reserves related to each period must be augmented as specified in this subdivision. The sum of the augmented required reserves is the present value of the annuity. For the purposes of this subdivision, "period of uninterrupted service" means a period of covered teaching service during which the member has not been separated from active service for more than one fiscal year.
(g) If a person repays a refund, the service restored by the repayment must be considered as continuous with the next period of service for which the person has allowable service credit in the Teachers Retirement Association.
(h) If a person does not render teaching service in any one fiscal year or more consecutive fiscal years and then resumes teaching service, the formula percentages used from the date of the resumption of teaching service must be those applicable to new members.
(i) The mortality table and interest new text begin rate actuarial new text end assumption used to compute the annuity must be the applicable mortality table established by the board under section 354.07, subdivision 1, and the interest rate new text begin actuarial new text end assumption under section 356.215 in effect when the member retires.
(j) In no case may the annuity payable under this subdivision be less than the amount of annuity payable under section 354.44, subdivision 6.
(k) The requirements and provisions for retirement before normal retirement age contained in section 354.44, subdivision 6, also apply to an employee fulfilling the requirements with a combination of service as provided in section 354.60.
(l) The augmentation provided by this subdivision applies to the benefit provided in section 354.46, subdivision 2.
(m) The augmentation provided by this subdivision does not apply to any period in which a person is on an approved leave of absence from an employer unit covered by the provisions of this chapter.
(n) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former teacher who terminated service before July 1, 1997, which is not first payable until after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and tables adopted by the board as recommended by an approved actuary and approved by the actuary retained under section 356.214.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end The contribution required to be paid by each member of a teachers retirement fund association deleted text begin shall not be less thandeleted text end new text begin is new text end the percentage of total salary specified below for the applicable association and program:
Association and Program | Percentage of Total Salary | ||
Duluth Teachers Retirement Fund Association | |||
old law and new law | |||
coordinated programs | deleted text begin 5.5 percent deleted text end | ||
new text begin before July 1, 2011 new text end | new text begin 5.5 percent new text end | ||
new text begin effective July 1, 2011 new text end | new text begin 6.0 percent new text end | ||
new text begin effective July 1, 2012 new text end | new text begin 6.5 percent new text end | ||
St. Paul Teachers Retirement Fund Association | |||
basic program new text begin before July 1, 2011new text end | 8 percent | ||
new text begin basic program after June 30, 2011 new text end | new text begin 8.25 percent new text end | ||
new text begin basic program after June 30, 2012 new text end | new text begin 8.5 percent new text end | ||
new text begin basic program after June 30, 2013 new text end | new text begin 8.75 percent new text end | ||
new text begin basic program after June 30, 2014 new text end | new text begin 9.0 percent new text end | ||
coordinated programnew text begin before July 1, 2011new text end | 5.5 percent | ||
new text begin coordinated program after June 30, 2011 new text end | new text begin 5.75 percent new text end | ||
new text begin coordinated program after June 30, 2012 new text end | new text begin 6.0 percent new text end | ||
new text begin coordinated program after June 30, 2013 new text end | new text begin 6.25 percent new text end | ||
new text begin coordinated program after June 30, 2014 new text end | new text begin 6.50 percent new text end |
new text begin (b) new text end Contributions shall be made by deduction from salary and must be remitted directly to the respective teachers retirement fund association at least once each month.
new text begin (c) When an employee contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid by the employer with the first payroll cycle reported. new text end
new text begin This section is effective July 1, 2010. new text end
(a) The employing units shall make the following employer contributions to teachers retirement fund associations:
(1) for any coordinated member of one of the following teachers retirement fund associations in a city of the first class, the employing unit shall make a regular employer contribution to the respective retirement fund association in an amount equal to the designated percentage of the salary of the coordinated member as provided below:
Duluth Teachers Retirement Fund Association | deleted text begin 4.50 percent deleted text end | ||
new text begin before July 1, 2011 new text end | new text begin 5.79 percent new text end | ||
new text begin effective July 1, 2011 new text end | new text begin 6.29 percent new text end | ||
new text begin effective July 1, 2012 new text end | new text begin 6.79 percent new text end | ||
St. Paul Teachers Retirement Fund Associationnew text begin before July 1, 2011new text end | 4.50 percent | ||
new text begin after June 30, 2011 new text end | new text begin 4.75 percent new text end | ||
new text begin after June 30, 2012 new text end | new text begin 5.0 percent new text end | ||
new text begin after June 30, 2013 new text end | new text begin 5.25 percent new text end | ||
new text begin after June 30, 2014 new text end | new text begin 5.5 percent new text end |
(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the employing unit shall make a regular employer contribution to the respective retirement fund in an amount deleted text begin equal to 8.00 percent of the salary of the basic member;deleted text end new text begin according to the schedule below:new text end
new text begin before July 1, 2011 new text end | new text begin 8.0 percent of salary new text end | |
new text begin after June 30, 2011 new text end | new text begin 8.25 percent of salary new text end | |
new text begin after June 30, 2012 new text end | new text begin 8.5 percent of salary new text end | |
new text begin after June 30, 2013 new text end | new text begin 8.75 percent of salary new text end | |
new text begin after June 30, 2014 new text end | new text begin 9.0 percent of salary new text end |
(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the employing unit shall make an additional employer contribution to the respective fund in an amount equal to 3.64 percent of the salary of the basic member;
(4) for a coordinated member of deleted text begin a teachers retirement fund association in a city of the first classdeleted text end new text begin the St. Paul Teachers Retirement Fund Associationnew text end , the employing unit shall make an additional employer contribution to the respective fund in an amount equal to the applicable percentage of the coordinated member's salary, as provided below:
deleted text begin Duluth Teachers Retirement Fund Association deleted text end | deleted text begin 1.29 percent deleted text end | ||
St. Paul Teachers Retirement Fund Association | 3.84 percent |
(b) The regular and additional employer contributions must be remitted directly to the respective teachers retirement fund association at least once each month. Delinquent amounts are payable with interest under the procedure in subdivision 1a.
(c) Payments of regular and additional employer contributions for school district or technical college employees who are paid from normal operating funds must be made from the appropriate fund of the district or technical college.
new text begin (d) When an employer contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid by the employer with the first payroll cycle reported. new text end
new text begin This section is effective July 1, 2010. new text end
(a) The supplemental contributions payable to the Minneapolis Teachers Retirement Fund Association by Special School District No. 1 and the city of Minneapolis under section 423A.02, subdivision 3, must be paid to the Teachers Retirement Association and must continue until the current assets of the fund equal or exceed the actuarial accrued liability of the fund as determined in the most recent actuarial report for the fund by the actuary retained under section 356.214, or 2037, whichever occurs earlier. The supplemental contributions payable to the St. Paul Teachers Retirement Fund Association by Independent School District No. 625 under section 423A.02, subdivision 3, or the direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund Association deleted text begin terminate at the end of the fiscal year in which the accrued liability funding ratio for that fund, as determined in the most recent actuarial report for that fund by the actuary retained under section 356.214, equals or exceeds the accrued liability funding ratio for the Teachers Retirement Association, as determined in the most recent actuarial report for the Teachers Retirement Association by the actuary retained under section 356.214.deleted text end new text begin must continue until the current assets of the fund equal or exceed the actuarial accrued liability of the fund as determined in the most recent actuarial report for the fund by the actuary retained under section 356.214 or until 2037, whichever occurs earlier.new text end
deleted text begin (b) If the St. Paul Teachers Retirement Fund Association is funded at an amount equal to or greater than the funding ratio applicable to the Teachers Retirement Association, then any future state aid under subdivision 3a is payable to the Teachers Retirement Association. deleted text end
new text begin This section is effective July 1, 2010. new text end
(a) Annually, after June 30, the board of trustees new text begin of the Duluth Teachers Retirement Fund Association new text end determines the amount of any postretirement adjustment using the procedures in this subdivision and subdivision 6new text begin or 7, whichever is applicablenew text end .
(b) Each person who has been receiving an annuity or benefit under the articles of incorporation, bylaws, or under this section for at least 12 months as of the date of the postretirement adjustment shall be eligible for a postretirement adjustment. The postretirement adjustment shall be payable each January 1. The postretirement adjustment shall be deleted text begin equal to two percent ofdeleted text end new text begin a permanent percentage increase as specified under subdivision 6 or 7, whichever is applicable, applied to new text end the annuity or benefit to which the person is entitled one month prior to the payment of the postretirement adjustment.
new text begin This section is effective July 1, 2010. new text end
deleted text begin (a) In addition to the postretirement increases granted under subdivision 5, an additional percentage increase must be computed and paid under this subdivision. deleted text end
deleted text begin (b) The board of trustees shall determine the number of annuitants or benefit recipients who have been receiving an annuity or benefit for at least 12 months as of the current June 30. These recipients are entitled to receive the surplus investment earnings additional postretirement increase. deleted text end
deleted text begin (c) Annually, as of each June 30, the board shall determine the five-year annualized rate of return attributable to the assets of the Duluth Teachers Retirement Fund Association under the formula or formulas specified in section 11A.04, clause (11). deleted text end
deleted text begin (d) The board shall determine the amount of excess five-year annualized rate of return over the preretirement interest assumption as specified in section 356.215. deleted text end
deleted text begin (e) The additional percentage increase must be determined by multiplying the quantity one minus the rate of contribution deficiency, as specified in the most recent actuarial report of the actuary retained under section 356.214, times the rate of return excess as determined in paragraph (d). deleted text end
deleted text begin (f) The additional increase is payable to all eligible annuitants or benefit recipients on the following January 1. deleted text end
new text begin (a) For purposes of computing postretirement adjustments after the effective date of this section for eligible benefit recipients of the Duluth Teachers Retirement Fund Association, the funding ratio of the plan, as determined by dividing the market value of assets by the actuarial accrued liability as reported in the most recent actuarial valuation prepared under sections 356.214 and 356.215, determines the postretirement increase as follows: new text end
new text begin Funding Ratio new text end | new text begin Postretirement Increase new text end | |
new text begin less than 80 percent new text end | new text begin 0 percent new text end | |
new text begin at least 80 percent but less than 90 percent new text end | new text begin 1 percent new text end | |
new text begin at least 90 percent new text end | new text begin 2 percent new text end |
new text begin (b) If the funding ratio of the plan based on actuarial value, rather than market value, is at least 90 percent as reported in the most recent actuarial valuation prepared under sections 356.214 and 356.215, this subdivision expires and subsequent postretirement increases must be paid as specified under subdivision 7. new text end
new text begin This section is effective July 1, 2010. new text end
new text begin (a) This subdivision applies if subdivision 6 has expired. new text end
new text begin (b) A percentage adjustment must be computed and paid under this subdivision to eligible persons under subdivision 5. This adjustment is determined by reference to the Consumer Price Index for urban wage earners and clerical workers all items index as reported by the Bureau of Labor Statistics within the United States Department of Labor each year as part of the determination of annual cost-of-living adjustments to recipients of federal old-age, survivors, and disability insurance. For calculations of cost-of-living adjustments under paragraph (c), the term "average third quarter Consumer Price Index value" means the sum of the monthly index values as initially reported by the Bureau of Labor Statistics for the months of July, August, and September, divided by 3. new text end
new text begin (c) Before January 1 of each year, the executive director must calculate the amount of the cost-of-living adjustment by dividing the most recent average third quarter index value by the same average third quarter index value from the previous year, subtract one from the resulting quotient, and express the result as a percentage amount, which must be rounded to the nearest one-tenth of one percent. new text end
new text begin (d) The amount calculated under paragraph (c) is the full cost-of-living adjustment to be applied as a permanent increase to the regular payment of each eligible member on January 1 of the next calendar year. For any eligible member whose effective date of benefit commencement occurred during the calendar year before the cost-of-living adjustment is applied, the full increase amount must be prorated on the basis of whole calendar quarters in benefit payment status in the calendar year prior to the January 1 on which the cost-of-living adjustment is applied, calculated to the third decimal place. new text end
new text begin (e) The adjustment must not be less than zero nor greater than five percent. new text end
new text begin (f) If the funding ratio of the plan as determined in the most recent actuarial valuation using the actuarial value of assets is less than 80 percent there will be no postretirement adjustment the following January 1. new text end
new text begin This section is effective July 1, 2010. new text end
Any coordinated member or former coordinated member new text begin of the St. Paul Teachers Retirement Fund Association new text end who has ceased to render teaching service for the school district in which the teachers retirement fund association exists and who has either attained the age of at least 55 years with not less than three years of allowable service credit or received credit for not less than 30 years of allowable service regardless of age, shall be entitled upon written application to a retirement annuity.new text begin Any coordinated member or former coordinated member of the Duluth Teachers Retirement Fund Association who has ceased to render teaching service for the school district in which the teacher retirement fund association exists and who has either attained the age of at least 55 years with not less than three years of allowable service credit if the member became an employee before July 1, 2010, or not less than five years of allowable service credit if the member became an employee after June 30, 2010, or received service credit for not less than 30 years of allowable service regardless of age, shall be entitled upon written application to a retirement annuity.new text end
new text begin This section is effective July 1, 2010. new text end
If a coordinated member or former coordinated member dies prior to retirement or prior to the receipt of any retirement annuity or other benefit payment which is or may be payable and a surviving spouse optional annuity is not payable pursuant to subdivision 2, a refund shall be paid to the person's surviving spouse, or if there is none, to the person's designated beneficiary, or if there is none, to the legal representative of the person's estate. new text begin For a coordinated member or former coordinated member of the St. Paul Teachers Retirement Fund Association, new text end the refund shall be in an amount equal to the person's accumulated new text begin employee new text end contributions plus interest at the rate of six percent per annum compounded annually.new text begin For a coordinated member or former coordinated member of the Duluth Teachers Retirement Fund Association, the refund shall be in an amount equal to the person's accumulated employee contributions plus interest at the rate of six percent per annum compounded annually to July 1, 2010, and four percent per annum compounded annually thereafter.new text end
new text begin This section is effective July 1, 2010. new text end
(a) Any coordinated member who ceases to render teaching services for the school district in which the teachers retirement fund association is located, with sufficient allowable service credit to meet the minimum service requirements specified in section 354A.31, subdivision 1, shall be entitled to a deferred retirement annuity in lieu of a refund pursuant to subdivision 1. The deferred retirement annuity shall be computed pursuant to section 354A.31 and shall be augmented as provided in this subdivision. The deferred annuity shall commence upon application after the person on deferred status attains at least the minimum age specified in section 354A.31, subdivision 1.
(b) The monthly annuity amount that had accrued when the member ceased to render teaching service must be augmented from the first day of the month following the month during which the member ceased to render teaching service to the effective date of retirement. There is no augmentation if this period is less than three months. new text begin For a member of the St. Paul Teachers Retirement Fund Association, new text end the rate of augmentation is three percent compounded annually until January 1 of the year following the year in which the former member attains age 55, and five percent compounded annually after that date to the effective date of retirement if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes an employee after June 30, 2006. new text begin For a member of the Duluth Teachers Retirement Fund Association, the rate of augmentation is three percent compounded annually until January 1 of the year following the year in which the former member attains age 55, five percent compounded annually after that date to July 1, 2012, and two percent compounded annually after that date to the effective date of retirement if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent compounded annually after that date to the effective date of retirement if the employee becomes an employee after June 30, 2006. new text end If a person has more than one period of uninterrupted service, a separate average salary determined under section 354A.31 must be used for each period, and the monthly annuity amount related to each period must be augmented as provided in this subdivision. The sum of the augmented monthly annuity amounts determines the total deferred annuity payable. If a person repays a refund, the service restored by the repayment must be considered as continuous with the next period of service for which the person has credit with the fund. If a person does not render teaching services in any one fiscal year or more consecutive fiscal years and then resumes teaching service, the formula percentages used from the date of resumption of teaching service are those applicable to new members. The mortality table and interest assumption used to compute the annuity are the table established by the fund to compute other annuities, and the interest assumption under section 356.215 in effect when the member retires. A period of uninterrupted service for the purpose of this subdivision means a period of covered teaching service during which the member has not been separated from active service for more than one fiscal year.
(c) The augmentation provided by this subdivision applies to the benefit provided in section 354A.35, subdivision 2. The augmentation provided by this subdivision does not apply to any period in which a person is on an approved leave of absence from an employer unit.
new text begin This section is effective July 1, 2010. new text end
A former coordinated member new text begin of the St. Paul Teachers Retirement Fund Association new text end who qualifies for a refund deleted text begin pursuant todeleted text end new text begin under new text end subdivision 1 shall receive a refund equal to the amount of the former coordinated member's accumulated new text begin employee new text end contributions with interest at the rate of six percent per annum compounded annually.new text begin A former coordinated member of the Duluth Teachers Retirement Fund Association who qualifies for a refund under subdivision 1 shall receive a refund equal to the amount of the former coordinated member's accumulated employee contributions with interest at the rate of six percent per annum compounded annually to July 1, 2010, and four percent per annum compounded annually thereafter.new text end
new text begin This section is effective July 1, 2010. new text end
Any coordinated member who has attained the normal retirement age with less than ten years of allowable service credit and has terminated active teaching service shall be entitled to a refund in lieu of a proportionate annuity pursuant to section 356.32. The refund new text begin for a member of the St. Paul Teachers Retirement Fund Association new text end shall be equal to the coordinated member's accumulated employee contributions plus interest at the rate of six percent compounded annually. new text begin The refund for a member of the Duluth Teachers Retirement Fund Association shall be equal to the coordinated member's accumulated employee contributions plus interest at the rate of six percent compounded annually to July 1, 2010, and four percent per annum compounded annually thereafter.new text end
new text begin This section is effective July 1, 2010. new text end
(a) The actuarial valuation must use the applicable following preretirement interest assumption and the applicable following postretirement interest assumption:
plan | preretirement interest rate assumption |
postretirement interest rate 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 | |
St. Paul teachers retirement plan | 8.5 | 8.5 | |
Minneapolis Police Relief Association | 6.0 | 6.0 | |
Fairmont Police Relief Association | 5.0 | 5.0 | |
Minneapolis Fire Department Relief Association | 6.0 | 6.0 | |
Virginia Fire Department Relief Association | 5.0 | 5.0 | |
Bloomington Fire Department Relief Association | 6.0 | 6.0 | |
local monthly benefit volunteer firefighters relief associations | 5.0 | 5.0 |
(b) Before July 1, 2010, 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
plan | future salary increase assumption |
|
legislators retirement plan | 5.0% | |
judges retirement plan | 4.0 | |
Minneapolis Police Relief Association | 4.0 | |
Fairmont Police Relief Association | 3.5 | |
Minneapolis Fire Department Relief Association | 4.0 | |
Virginia Fire Department Relief Association | 3.5 | |
Bloomington Fire Department Relief Association | 4.0 |
(2) modified single rate future salary increase assumption
plan | future salary increase assumption |
|
Minneapolis employees retirement plan | the prior calendar year 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) new text begin age-related new text end select and ultimate future salary increase assumption or graded rate future salary increase assumption
plan | future salary increase assumption |
general state employees retirement plan | select calculation and assumption A |
correctional state employees retirement plan | assumption deleted text begin Hdeleted text end new text begin Gnew text end |
State Patrol retirement plan | assumption deleted text begin Gdeleted text end new text begin Fnew text end |
deleted text begin general public employees retirement plan deleted text end | deleted text begin select calculation and assumption B deleted text end |
public employees police and fire fund retirement plan | assumption deleted text begin Cdeleted text end new text begin Bnew text end |
local government correctional service retirement plan | assumption deleted text begin Gdeleted text end new text begin Fnew text end |
teachers retirement plan | assumption deleted text begin Ddeleted text end new text begin Cnew text end |
Duluth teachers retirement plan | assumption deleted text begin Edeleted text end new text begin Dnew text end |
St. Paul teachers retirement plan | assumption deleted text begin Fdeleted text end new text begin Enew text end |
The select calculation is: during the designated select period, a designated percentage rate is multiplied by the result of the designated integer minus T, where T is the number of completed years of service, and is added to the applicable future salary increase assumption. The designated select period is five years and the designated integer is five for the general state employees retirement plan deleted text begin and the general public employees retirement plandeleted text end . The designated select period is ten years and the designated integer is ten for all other retirement plans covered by this clause. The designated percentage rate is: (1) 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; (2) 0.6 percent for the general state employees retirement plan deleted text begin and the general public employees retirement plandeleted text end ; and (3) 0.3 percent for the teachers retirement plan, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers Retirement Fund Association. The select calculation for the Duluth Teachers Retirement Fund Association is 8.00 percent per year for service years one through seven, 7.25 percent per year for service years seven and eight, and 6.50 percent per year for service years eight and nine.
The ultimate future salary increase assumption is:
age | A | deleted text begin B deleted text end | deleted text begin C deleted text end new text begin B new text end | deleted text begin D deleted text end new text begin C new text end | deleted text begin E deleted text end new text begin D new text end | deleted text begin F deleted text end new text begin E new text end | deleted text begin G deleted text end new text begin F new text end | deleted text begin H deleted text end new text begin G new text end |
16 | 5.95% | deleted text begin 5.95% deleted text end | 11.00% | 7.70% | 8.00% | 6.90% | 7.7500% | 7.2500% |
17 | 5.90 | deleted text begin 5.90 deleted text end | 11.00 | 7.65 | 8.00 | 6.90 | 7.7500 | 7.2500 |
18 | 5.85 | deleted text begin 5.85 deleted text end | 11.00 | 7.60 | 8.00 | 6.90 | 7.7500 | 7.2500 |
19 | 5.80 | deleted text begin 5.80 deleted text end | 11.00 | 7.55 | 8.00 | 6.90 | 7.7500 | 7.2500 |
20 | 5.75 | deleted text begin 5.40 deleted text end | 11.00 | 5.50 | 6.90 | 6.90 | 7.7500 | 7.2500 |
21 | 5.75 | deleted text begin 5.40 deleted text end | 11.00 | 5.50 | 6.90 | 6.90 | 7.1454 | 6.6454 |
22 | 5.75 | deleted text begin 5.40 deleted text end | 10.50 | 5.50 | 6.90 | 6.90 | 7.0725 | 6.5725 |
23 | 5.75 | deleted text begin 5.40 deleted text end | 10.00 | 5.50 | 6.85 | 6.85 | 7.0544 | 6.5544 |
24 | 5.75 | deleted text begin 5.40 deleted text end | 9.50 | 5.50 | 6.80 | 6.80 | 7.0363 | 6.5363 |
25 | 5.75 | deleted text begin 5.40 deleted text end | 9.00 | 5.50 | 6.75 | 6.75 | 7.0000 | 6.5000 |
26 | 5.75 | deleted text begin 5.36 deleted text end | 8.70 | 5.50 | 6.70 | 6.70 | 7.0000 | 6.5000 |
27 | 5.75 | deleted text begin 5.32 deleted text end | 8.40 | 5.50 | 6.65 | 6.65 | 7.0000 | 6.5000 |
28 | 5.75 | deleted text begin 5.28 deleted text end | 8.10 | 5.50 | 6.60 | 6.60 | 7.0000 | 6.5000 |
29 | 5.75 | deleted text begin 5.24 deleted text end | 7.80 | 5.50 | 6.55 | 6.55 | 7.0000 | 6.5000 |
30 | 5.75 | deleted text begin 5.20 deleted text end | 7.50 | 5.50 | 6.50 | 6.50 | 7.0000 | 6.5000 |
31 | 5.75 | deleted text begin 5.16 deleted text end | 7.30 | 5.50 | 6.45 | 6.45 | 7.0000 | 6.5000 |
32 | 5.75 | deleted text begin 5.12 deleted text end | 7.10 | 5.50 | 6.40 | 6.40 | 7.0000 | 6.5000 |
33 | 5.75 | deleted text begin 5.08 deleted text end | 6.90 | 5.50 | 6.35 | 6.35 | 7.0000 | 6.5000 |
34 | 5.75 | deleted text begin 5.04 deleted text end | 6.70 | 5.50 | 6.30 | 6.30 | 7.0000 | 6.5000 |
35 | 5.75 | deleted text begin 5.00 deleted text end | 6.50 | 5.50 | 6.25 | 6.25 | 7.0000 | 6.5000 |
36 | 5.75 | deleted text begin 4.96 deleted text end | 6.30 | 5.50 | 6.20 | 6.20 | 6.9019 | 6.4019 |
37 | 5.75 | deleted text begin 4.92 deleted text end | 6.10 | 5.50 | 6.15 | 6.15 | 6.8074 | 6.3074 |
38 | 5.75 | deleted text begin 4.88 deleted text end | 5.90 | 5.40 | 6.10 | 6.10 | 6.7125 | 6.2125 |
39 | 5.75 | deleted text begin 4.84 deleted text end | 5.70 | 5.30 | 6.05 | 6.05 | 6.6054 | 6.1054 |
40 | 5.75 | deleted text begin 4.80 deleted text end | 5.50 | 5.20 | 6.00 | 6.00 | 6.5000 | 6.0000 |
41 | 5.75 | deleted text begin 4.76 deleted text end | 5.40 | 5.10 | 5.90 | 5.95 | 6.3540 | 5.8540 |
42 | 5.75 | deleted text begin 4.72 deleted text end | 5.30 | 5.00 | 5.80 | 5.90 | 6.2087 | 5.7087 |
43 | 5.65 | deleted text begin 4.68 deleted text end | 5.20 | 4.90 | 5.70 | 5.85 | 6.0622 | 5.5622 |
44 | 5.55 | deleted text begin 4.64 deleted text end | 5.10 | 4.80 | 5.60 | 5.80 | 5.9048 | 5.4078 |
45 | 5.45 | deleted text begin 4.60 deleted text end | 5.00 | 4.70 | 5.50 | 5.75 | 5.7500 | 5.2500 |
46 | 5.35 | deleted text begin 4.56 deleted text end | 4.95 | 4.60 | 5.40 | 5.70 | 5.6940 | 5.1940 |
47 | 5.25 | deleted text begin 4.52 deleted text end | 4.90 | 4.50 | 5.30 | 5.65 | 5.6375 | 5.1375 |
48 | 5.15 | deleted text begin 4.48 deleted text end | 4.85 | 4.50 | 5.20 | 5.60 | 5.5822 | 5.0822 |
49 | 5.05 | deleted text begin 4.44 deleted text end | 4.80 | 4.50 | 5.10 | 5.55 | 5.5404 | 5.0404 |
50 | 4.95 | deleted text begin 4.40 deleted text end | 4.75 | 4.50 | 5.00 | 5.50 | 5.5000 | 5.0000 |
51 | 4.85 | deleted text begin 4.36 deleted text end | 4.75 | 4.50 | 4.90 | 5.45 | 5.4384 | 4.9384 |
52 | 4.75 | deleted text begin 4.32 deleted text end | 4.75 | 4.50 | 4.80 | 5.40 | 5.3776 | 4.8776 |
53 | 4.65 | deleted text begin 4.28 deleted text end | 4.75 | 4.50 | 4.70 | 5.35 | 5.3167 | 4.8167 |
54 | 4.55 | deleted text begin 4.24 deleted text end | 4.75 | 4.50 | 4.60 | 5.30 | 5.2826 | 4.7826 |
55 | 4.45 | deleted text begin 4.20 deleted text end | 4.75 | 4.50 | 4.50 | 5.25 | 5.2500 | 4.7500 |
56 | 4.35 | deleted text begin 4.16 deleted text end | 4.75 | 4.50 | 4.40 | 5.20 | 5.2500 | 4.7500 |
57 | 4.25 | deleted text begin 4.12 deleted text end | 4.75 | 4.50 | 4.30 | 5.15 | 5.2500 | 4.7500 |
58 | 4.25 | deleted text begin 4.08 deleted text end | 4.75 | 4.60 | 4.20 | 5.10 | 5.2500 | 4.7500 |
59 | 4.25 | deleted text begin 4.04 deleted text end | 4.75 | 4.70 | 4.10 | 5.05 | 5.2500 | 4.7500 |
60 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 4.80 | 4.00 | 5.00 | 5.2500 | 4.7500 |
61 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 4.90 | 3.90 | 5.00 | 5.2500 | 4.7500 |
62 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.00 | 3.80 | 5.00 | 5.2500 | 4.7500 |
63 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.10 | 3.70 | 5.00 | 5.2500 | 4.7500 |
64 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.20 | 3.60 | 5.00 | 5.2500 | 4.7500 |
65 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500 |
66 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500 |
67 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500 |
68 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500 |
69 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500 |
70 | 4.25 | deleted text begin 4.00 deleted text end | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500 |
71 | 4.25 | deleted text begin 4.00 deleted text end | 5.20 |
new text begin (4) service-related ultimate future salary increase assumption new text end
new text begin service length new text end | new text begin general employees retirement plan of the Public Employees Retirement Association new text end |
new text begin 1 new text end | new text begin 12.03% new text end |
new text begin 2 new text end | new text begin 8.90 new text end |
new text begin 3 new text end | new text begin 7.46 new text end |
new text begin 4 new text end | new text begin 6.58 new text end |
new text begin 5 new text end | new text begin 5.97 new text end |
new text begin 6 new text end | new text begin 5.52 new text end |
new text begin 7 new text end | new text begin 5.16 new text end |
new text begin 8 new text end | new text begin 4.87 new text end |
new text begin 9 new text end | new text begin 4.63 new text end |
new text begin 10 new text end | new text begin 4.42 new text end |
new text begin 11 new text end | new text begin 4.24 new text end |
new text begin 12 new text end | new text begin 4.08 new text end |
new text begin 13 new text end | new text begin 3.94 new text end |
new text begin 14 new text end | new text begin 3.82 new text end |
new text begin 15 new text end | new text begin 3.70 new text end |
new text begin 16 new text end | new text begin 3.60 new text end |
new text begin 17 new text end | new text begin 3.51 new text end |
new text begin 18 new text end | new text begin 3.50 new text end |
new text begin 19 new text end | new text begin 3.50 new text end |
new text begin 20 new text end | new text begin 3.50 new text end |
new text begin 21 new text end | new text begin 3.50 new text end |
new text begin 22 new text end | new text begin 3.50 new text end |
new text begin 23 new text end | new text begin 3.50 new text end |
new text begin 24 new text end | new text begin 3.50 new text end |
new text begin 25 new text end | new text begin 3.50 new text end |
new text begin 26 new text end | new text begin 3.50 new text end |
new text begin 27 new text end | new text begin 3.50 new text end |
new text begin 28 new text end | new text begin 3.50 new text end |
new text begin 29 new text end | new text begin 3.50 new text end |
new text begin 30 or more new text end | new text begin 3.50 new text end |
(c) Before July 2, 2010, 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:
plan | payroll growth assumption |
|
general state employees retirement plan | 4.50% | |
correctional state employees retirement plan | 4.50 | |
State Patrol retirement plan | 4.50 | |
legislators retirement plan | 4.50 | |
judges retirement plan | 4.00 | |
general deleted text begin publicdeleted text end employees retirement plannew text begin of the Public Employees Retirement Associationnew text end | deleted text begin 4.50 deleted text end new text begin 4.00 new text end | |
public employees police and fire retirement plan | 4.50 | |
local government correctional service retirement plan | 4.50 | |
teachers retirement plan | 4.50 | |
Duluth teachers retirement plan | 4.50 | |
St. Paul teachers retirement plan | 5.00 |
(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to apply, unless a different salary assumption or a different payroll increase assumption:
(1) has been proposed by the governing board of the applicable retirement plan;
(2) is accompanied by the concurring recommendation of the actuary retained under section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most recent actuarial valuation report if section 356.214 does not apply; and
(3) has been approved or deemed approved under subdivision 18.
new text begin This section is effective the day following final enactment. new text end
(a) In addition to the exhibit indicating the level normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial reporting purposes indicating the additional annual contribution sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit for contribution determination purposes indicating the additional contribution sufficient to amortize the unfunded actuarial accrued liability. For the retirement plans listed in subdivision 8, paragraph (c), 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, assuming annual payroll growth at the applicable percentage rate set forth in subdivision 8, paragraph (c). For all other retirement plans, the additional annual contribution must be calculated on a level annual dollar amount basis.
(b) For any retirement plan other than the Minneapolis Employees Retirement Fund, the general employees retirement plan of the Public Employees Retirement Association, new text begin the general state employees retirement plan of the Minnesota State Retirement System, new text end and the St. Paul Teachers Retirement Fund Association, 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 retirement plan other than the Minneapolis Employees Retirement Fund and the general employees retirement plan of the Public Employees Retirement Association, 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 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 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 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, the established date for full funding is June 30, 2031.
(f) For the Teachers Retirement Association, the established date for full funding is June 30, 2037.
(g) For the correctional state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2038.
(h) For the judges retirement plan, the established date for full funding is June 30, 2038.
(i) For the public employees police and fire retirement plan, the established date for full funding is June 30, 2038.
(j) For the St. Paul Teachers Retirement Fund Association, the established date for full funding is June 30 of the 25th year from the valuation date. In addition to other requirements of this chapter, the annual actuarial valuation shall contain an exhibit indicating the funded ratio and the deficiency or sufficiency in annual contributions when comparing liabilities to the market value of the assets of the fund as of the close of the most recent fiscal year.
(k) new text begin For the general state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2040.new text end
new text begin (l) new text end 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.
new text begin This section is effective the day following final enactment. new text end
(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 at the appropriate rate under the laws governing each public pension plan or fund named in subdivision 3, based on the date of the person's initial entry into public employment from the date the person terminated all public service if:
(1) the person has allowable service deleted text begin totaling an amount that allows the person to receive an annuitydeleted text end in any two or more of the enumerated plans;
new text begin (2) the person has sufficient allowable service in total that equals or exceeds the applicable service credit vesting requirement of the retirement plan with the longest applicable service credit vesting requirement; new text end and
deleted text begin (2)deleted text end new text begin (3) new text end 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 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 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 356.315, 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 percentage rate specified in section 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 percentage rate specified in section 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 must not exceed 2.5 percent, but this limit does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph (c).
(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.
new text begin This section is effective the day following final enactment. new text end
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 the normal retirement 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 deleted text begin three yearsdeleted text end new text begin the number of years required by the applicable retirement plan with the longest service credit requirement for disability benefit receiptnew text end ;
(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) 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.
new text begin This section is effective the day following final enactment. new text end
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 deleted text begin one yeardeleted text end new text begin the minimum period of service credit required by the applicable retirement plan with the longest service credit eligibility requirement for the receipt of a duty-related disability benefit new text end if the disability is duty-related or totaling at least deleted text begin three yearsdeleted text end new text begin the minimum period of service credit required by the applicable retirement plan with the longest service credit eligibility requirement for a disability benefit that is not duty-related new text end 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) 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.
new text begin This section is effective the day following final enactment. new text end
A disabled member of a covered retirement plan who has credit for allowable service in a combination of both a public safety employee retirement plan and general employee retirement 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 disabilitynew text begin , that the person must have allowable service credit for the applicable retirement plan with the longest service credit eligibility requirement for the receipt of a disability benefit,new text end 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.
new text begin This section is effective the day following final enactment. new text end
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 deleted text begin anydeleted text end new text begin the new text end minimum allowable service credit requirement of the new text begin applicable new text end covered retirement fund new text begin with the longest allowable service credit requirement new text end 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.
new text begin This section is effective the day following final enactment. new text end
The applicable benefit accrual rate is 2.4 percentnew text begin if employed as a correctional state employee before July 1, 2010, or 2.2 percent if employed as a correctional state employee after June 30, 2010new text end .
new text begin This section is effective the day following final enactment. new text end
(a) new text begin Except as otherwise provided in subdivision 1a, 1b, 1c, 1d, new text end new text begin or 1e,new text end retirement annuity, disability benefit, or survivor benefit recipients of a covered retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:
(1) a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months prior to the January 1 increase; and
(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit new text begin amount new text end for at least one full month, an annual postretirement increase of 1/12 of 2.5 percent for each month new text begin that new text end the person has been receiving an annuity or benefit must be applied, effective new text begin on new text end January 1 following the new text begin calendar new text end year in which the person has been retired for less than 12 months.
(b) The increases provided by this deleted text begin sectiondeleted text end new text begin subdivisionnew text end commence on January 1, 2010.
(c) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the covered retirement plan requesting that the increase not be made.
(d) The retirement annuity payable to a person who retires before becoming eligible for Social Security benefits and who has elected the optional payment as provided in section 353.29, subdivision 6, deleted text begin or 354.35deleted text end must be treated as the sum of a period certain retirement annuity and a life retirement annuity for the purposes of any postretirement adjustment. The period certain retirement annuity plus the life retirement annuity must be the annuity amount payable until age 62 for section 353.29, subdivision 6deleted text begin , or age 62, 65, or normal retirement age, as selected by the member at retirement, for an annuity amount payable under section 354.35deleted text end . A postretirement adjustment granted on the period certain retirement annuity must terminate when the period certain retirement annuity terminates.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) Retirement annuity, disability benefit, or survivor benefit recipients of the legislators retirement plan, the general state employees retirement plan, the correctional state employees retirement plan, the elected state officers retirement plan, the unclassified state employees retirement program, and the judges retirement plan are entitled to a postretirement adjustment annually on January 1, as follows: new text end
new text begin (1) a postretirement increase of two percent must be applied each year, effective on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months before the January 1 increase; and new text end
new text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of two percent for each month that the person has been receiving an annuity or benefit must be applied, effective January 1, following the calendar year in which the person has been retired for at least six months, but has been retired for less than 18 months. new text end
new text begin (b) The increases provided by this subdivision commence on January 1, 2011. Increases under this subdivision for the general state employees retirement plan, the correctional state employees retirement plan, or the judges retirement plan terminate on December 31 of the calendar year in which the actuarial valuation prepared by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement indicates that the market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases under subdivision 1 recommence after that date. Increases under this subdivision for the legislators retirement plan or the elected state officers retirement plan terminate on December 31 of the calendar year in which the actuarial valuation prepared by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement indicates that the market value of assets of the general state employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases under subdivision 1 recommence after that date. new text end
new text begin (c) An increase in annuity or benefit payments under this subdivision must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the applicable covered retirement plan requesting that the increase not be made. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) Retirement annuity, disability benefit, or survivor benefit recipients of the general employees retirement plan of the Public Employees Retirement Association and the local government correctional service retirement plan are entitled to a postretirement adjustment annually on January 1, as follows: new text end
new text begin (1) for January 1, 2011, and each successive January 1 until funding stability is restored for the applicable retirement plan, a postretirement increase of one percent must be applied each year, effective on January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or benefit for at least 12 full months as of the current June 30; new text end
new text begin (2) for January 1, 2011, and each successive January 1 until funding stability is restored for the applicable retirement plan, for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least one full month, but less than 12 full months as of the current June 30, an annual postretirement increase of 1/12 of one percent for each month the person has been receiving an annuity or benefit must be applied; new text end
new text begin (3) for each January 1 following the restoration of funding stability for the applicable retirement plan, a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or benefit for at least 12 full months as of the current June 30; and new text end
new text begin (4) for each January 1 following restoration of funding stability for the applicable retirement plan, for each annuity or benefit recipient who has been receiving an annuity or a benefit for at least one full month, but less than 12 full months as of the current June 30, an annual postretirement increase of 1/12 of 2.5 percent for each month the person has been receiving an annuity or benefit must be applied. new text end
new text begin (b) Funding stability is restored when the market value of assets of the applicable retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the applicable plan in the most recent prior actuarial valuation prepared under section 356.215 and the standards for actuarial work by the approved actuary retained by the Public Employees Retirement Association under section 356.214. new text end
new text begin (c) If, after applying the increase as provided for in paragraph (a), clauses (3) and (4), the market value of the applicable retirement plan is determined in the next subsequent actuarial valuation prepared under section 356.215 to be less than 90 percent of the actuarial accrued liability of any of the applicable Public Employees Retirement Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be applied as of the next successive January until funding stability is again restored. new text end
new text begin (d) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the Public Employees Retirement Association requesting that the increase not be made. new text end
new text begin (e) The retirement annuity payable to a person who retires before becoming eligible for Social Security benefits and who has elected the optional payment, as provided in section 353.29, subdivision 6, must be treated as the sum of a period-certain retirement annuity and a life retirement annuity for the purposes of any postretirement adjustment. The period-certain retirement annuity plus the life retirement annuity must be the annuity amount payable until age 62 for section 353.29, subdivision 6. A postretirement adjustment granted on the period-certain retirement annuity must terminate when the period-certain retirement annuity terminates. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) Retirement annuity, disability benefit, or survivor benefit recipients of the public employees police and fire retirement plan are entitled to a postretirement adjustment annually on January 1, as follows: new text end
new text begin (1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least 12 full months as of the immediate preceding June 30, an amount equal to one percent in each year; new text end
new text begin (2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least one full month as of the immediate preceding June 30, an amount equal to 1/12 of one percent in each year; new text end
new text begin (3) for January 1, 2013, and each successive January 1 that follows the loss of funding stability as defined under paragraph (b) until funding stability as defined under paragraph (b) is again restored, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least 12 full months as of the immediate preceding June 30, an amount equal to 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 between the immediate preceding June 30 and the June 30 occurring 12 months previous, but not to exceed 1.5 percent; new text end
new text begin (4) for January 1, 2013, and each successive January 1 that follows the loss of funding stability as defined under paragraph (b) until funding stability as defined under paragraph (b) is again restored, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least one full month as of the immediate preceding June 30, an amount equal to 1/12 of 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 between the immediate preceding June 30 and the June 30 occurring 12 months previous for each full month of annuity or benefit receipt, but not to exceed 1/12 of 1.5 percent for each full month of annuity or benefit receipt; new text end
new text begin (5) for each January 1 following the restoration of funding stability as defined under paragraph (b) and during the continuation of funding stability as defined under paragraph (b), for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least 12 full months as of the immediate preceding June 30, an amount equal to 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 between the immediate preceding June 30 and the June 30 occurring 12 months previous, but not to exceed 2.5 percent; and new text end
new text begin (6) for each January 1 following the restoration of funding stability as defined under paragraph (b) and during the continuation of funding stability as defined under paragraph (b), for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least one full month as of the immediate preceding June 30, an amount equal to 1/12 of 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 between the immediate preceding June 30 and the June 30 occurring 12 months previous for each full month of annuity or benefit receipt, but not to exceed 1/12 of 2.5 percent for each full month of annuity or benefit receipt. new text end
new text begin (b) Funding stability is restored when the market value of assets of the public employees police and fire retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the applicable plan in the most recent prior actuarial valuation prepared under section 356.215 and under the standards for actuarial work of the Legislative Commission on Pensions and Retirement by the approved actuary retained by the Public Employees Retirement Association under section 356.214. new text end
new text begin (c) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the Public Employees Retirement Association requesting that the increase not be made. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers Retirement Association are entitled to a postretirement adjustment annually on January 1, as follows: new text end
new text begin (1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable; new text end
new text begin (2) for January 1, 2013, and each successive January 1 until funding stability is restored, a postretirement increase of two percent must be applied each year, effective on January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months prior to the January 1 increase; new text end
new text begin (3) for January 1, 2013, and each successive January 1 until funding stability is restored, for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of two percent for each month the person has been receiving an annuity or benefit must be applied, effective January 1, following the year in which the person has been retired for less than 12 months; new text end
new text begin (4) for each January 1 following the restoration of funding stability, a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months prior to the January 1 increase; and new text end
new text begin (5) for each January 1 following the restoration of funding stability, for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of 2.5 percent for each month the person has been receiving an annuity or benefit must be applied, effective January 1, following the year in which the person has been retired for less than 12 months. new text end
new text begin (b) Funding stability is restored when the market value of assets of the Teachers Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of the Teachers Retirement Association in the most recent prior actuarial valuation prepared under section 356.215 and the standards for actuarial work by the approved actuary retained by the Teachers Retirement Association under section 356.214. new text end
new text begin (c) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the Teachers Retirement Association requesting that the increase not be made. new text end
new text begin (d) The retirement annuity payable to a person who retires before becoming eligible for Social Security benefits and who has elected the optional payment as provided in section 354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement annuity for the purposes of any postretirement adjustment. The period-certain retirement annuity plus the life retirement annuity must be the annuity amount payable until age 62, 65, or normal retirement age, as selected by the member at retirement, for an annuity amount payable under section 354.35. A postretirement adjustment granted on the period-certain retirement annuity must terminate when the period-certain retirement annuity terminates. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol retirement plan are entitled to a postretirement adjustment annually on January 1, as follows: new text end
new text begin (1) a postretirement increase of 1.5 percent must be applied each year, effective on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months before the January 1 increase; and new text end
new text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent for each month that the person has been receiving an annuity or benefit must be applied, effective January 1, following the calendar year in which the person has been retired for at least six months, but has been retired for less than 18 months. new text end
new text begin (b) The increases provided by this subdivision commence on January 1, 2011. Increases under this subdivision for the State Patrol retirement plan terminate on December 31 of the calendar year in which the actuarial valuation prepared by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement indicates that the market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases under subdivision 1 recommence after that date. new text end
new text begin (c) An increase in annuity or benefit payments under this subdivision must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the applicable covered retirement plan requesting that the increase not be made. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Notwithstanding any provision of section 356.215, subdivision 8, to the contrary, until the actuarial valuations, prepared annually by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement, indicate that the market value of assets of the applicable covered plans equals or exceeds 90 percent of the actuarial accrued liabilities, the actuarial valuation reports must utilize a postretirement interest rate assumption that is equal to the difference between the preretirement interest rate assumption provided in section 356.215, subdivision 8, and the stated annual postretirement adjustment rate provided under this section, as applicable to each covered plan. new text end
new text begin This section is effective the day following final enactment. new text end
(a) Beginning one year after the reemployment withholding period ends relating to the reemployment that gave rise to the limitation, 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 new text begin annual compound new text end interest deleted text begin atdeleted text end new text begin . For the general state employees retirement plan, the correctional state employees retirement plan, the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, the local government correctional employees retirement plan, and the teachers retirement plan, the annual interest rate is six percent from the date on which the amount was deducted from the retirement annuity to the date of payment or until January 1, 2011, whichever is earlier, and no interest after January 1, 2011. For the Duluth Teachers Retirement Fund Association, the annual interest is six percent from the date on which the amount was deducted from the retirement annuity to the date of payment or until June 30, 2010, whichever is earlier, and no interest after June 30, 2010. For the St. Paul Teachers Retirement Fund Association, the annual interest isnew text end the deleted text begin compound annualdeleted text end 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.
(d) In lieu of the direct payment of the person's amount under subdivision 2, on or after the payment date under paragraph (a), if the federal Internal Revenue Code so permits, the retired member may elect to have all or any portion of the payment amount under this section paid in the form of a direct rollover to an eligible retirement plan as defined in section 402(c) of the federal Internal Revenue Code that is specified by the retired member. If the retired member dies with a balance remaining payable under this section, the surviving spouse of the retired member, or if none, the deceased person's designated beneficiary, or if none, the administrator of the deceased person's estate may elect a direct rollover under this paragraph.
new text begin This section is effective the day following final enactment. new text end
(a) Seventy percent of the difference between $5,720,000 and the current year amortization aid and supplemental amortization aid distributed under subdivisions 1 and 1a that is not distributed for any reason to a municipality for use by a local police or salaried fire relief association must be distributed by the commissioner of revenue according to this paragraph. The commissioner shall distribute 50 percent of the amounts derived under this paragraph to the Teachers Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the respective funds. These payments shall be made on or before June 30 each fiscal year. If the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility for this aid ceases. Amounts remaining in the undistributed balance account at the end of the biennium if aid eligibility ceases cancel to the general fund.
(b) In order to receive amortization and supplementary amortization aid under paragraph (a), Independent School District No. 625, St. Paul, must make contributions to the St. Paul Teachers Retirement Fund Association in accordance with the following schedule:
Fiscal Year | Amount | |||
1996 | $ | 0 | ||
1997 | $ | 0 | ||
1998 | $ | 200,000 | ||
1999 | $ | 400,000 | ||
2000 | $ | 600,000 | ||
2001 and thereafter | $ | 800,000 |
(c) Special School District No. 1, Minneapolis, and the city of Minneapolis must each make contributions to the Teachers Retirement Association in accordance with the following schedule:
Fiscal Year | City amount | School district amount | |||||
1996 | $ | 0 | $ | 0 | |||
1997 | $ | 0 | $ | 0 | |||
1998 | $ | 250,000 | $ | 250,000 | |||
1999 | $ | 400,000 | $ | 400,000 | |||
2000 | $ | 550,000 | $ | 550,000 | |||
2001 | $ | 700,000 | $ | 700,000 | |||
2002 | $ | 850,000 | $ | 850,000 | |||
2003 and thereafter | $ | 1,000,000 | $ | 1,000,000 |
deleted text begin (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as applicable, must be credited to a separate account in the applicable teachers retirement fund and may not be used in determining any benefit increases. The separate account terminates for a fund when the aid payments to the fund under paragraph (a) cease. deleted text end
deleted text begin (e)deleted text end new text begin (d) new text end Thirty percent of the difference between $5,720,000 and the current year amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not distributed for any reason to a municipality for use by a local police or salaried firefighter relief association must be distributed under section 69.021, subdivision 7, paragraph (d), as additional funding to support a minimum fire state aid amount for volunteer firefighter relief associations.
new text begin This section is effective the day following final enactment. new text end
new text begin A study group consisting of representatives from pension plans subject to Minnesota Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the state auditor to study investment-related provisions, authorities, and limitations under Minnesota Statutes, chapter 356A, and related sections of other chapters. Administrative support for the study group shall be provided by the state auditor. The study group shall prepare a report to include an assessment of the effectiveness of current statutory prescriptions, options for change, and recommendations for consideration by the governor and the legislature during the 2011 legislative session. The report will be provided no later than January 15, 2011, to the executive director of the Legislative Commission on Pensions and Retirement, the chair and ranking minority caucus member of the senate State and Local Government Operations and Oversight Committee, and the chair and ranking minority caucus member of the house State and Local Government Operations Reform, Technology and Elections Committee. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin The executive directors of the Minnesota State Retirement System, the Public Employees Retirement Association, and the Teachers Retirement Association shall jointly conduct a study of defined benefit, defined contribution, and other alternative retirement plans for Minnesota public employees. The study must include analysis of the feasibility, sustainability, financial impacts, and other design considerations of these retirement plans. The report must be provided no later than June 1, 2011, to the chair, the vice-chair, and the executive director of the Legislative Commission on Pensions and Retirement. new text end
new text begin Consistent with the requirements of Minnesota Statutes, section 354A.12, subdivision 4, the board of the Duluth Teachers Retirement Fund Association is authorized to revise the bylaws or articles of incorporation so that the requirements of this act apply to the old law coordinated program. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Notwithstanding Minnesota Statutes, section 354A.29, no postretirement benefit adjustment to benefit recipients of the St. Paul Teachers Retirement Fund Association shall be provided for the year commencing January 1, 2011. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Minnesota Statutes 2008, section 354A.27, subdivision 1, new text end new text begin is repealed. new text end
new text begin This section is effective July 1, 2010. new text end
(a) "State employee" includes:
(1) employees of the Minnesota Historical Society;
(2) employees of the State Horticultural Society;
(3) employees of the Minnesota Crop Improvement Association;
(4) employees of the adjutant general deleted text begin whodeleted text end new text begin whose salariesnew text end are paid from federal funds and who are not covered by any federal civilian employees retirement system;
(5) employees of the Minnesota State Colleges and Universities new text begin who arenew text end employed under the university or college activities program;
(6) currently contributing employees covered by the system who are temporarily employed by the legislature during a legislative session or any currently contributing employee employed for any special service as defined in subdivision 2b, clause (8);
(7) employees of the legislature new text begin who arenew text end appointed without a limit on the duration of their employment and persons employed or designated by the legislature or by a legislative committee or commission or other competent authority to conduct a special inquiry, investigation, examination, or installation;
(8) trainees who are employed on a full-time established training program performing the duties of the classified position for which they will be eligible to receive immediate appointment at the completion of the training period;
(9) employees of the Minnesota Safety Council;
(10) any employees new text begin who arenew text end on authorized leave of absence from the Transit Operating Division of the former Metropolitan Transit Commission new text begin andnew text end who are employed by the labor organization which is the exclusive bargaining agent representing employees of the Transit Operating Division;
(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space Commission, Metropolitan Sports Facilities Commission, new text begin or new text end Metropolitan Mosquito Control Commissiondeleted text begin , or Metropolitan Radio Boarddeleted text end unless excluded new text begin under subdivision 2bnew text end or new text begin arenew text end covered by another public pension fund or plan under section 473.415, subdivision 3;
(12) judges of the Tax Court;
(13) personnel new text begin who werenew text end employed on June 30, 1992, by the University of Minnesota in the management, operation, or maintenance of its heating plant facilities, whose employment transfers to an employer assuming operation of the heating plant facilities, so long as the person is employed at the University of Minnesota heating plant by that employer or by its successor organization;
(14) new text begin personnel who are employed asnew text end seasonal deleted text begin helpdeleted text end new text begin employees new text end in the classified new text begin or unclassified new text end service deleted text begin employed by the Department of Revenuedeleted text end ;
(15) persons new text begin who arenew text end employed by the Department of Commerce as a peace officer in the Insurance Fraud Prevention Division under section 45.0135 who have attained the mandatory retirement age specified in section 43A.34, subdivision 4;
(16) employees of the University of Minnesota unless excluded under subdivision 2b, clause (3);
(17) employees of the Middle Management Association whose employment began after July 1, 2007, and to whom section 352.029 does not apply; and
(18) employees of the Minnesota Government Engineers Council to whom section 352.029 does not apply.
(b) Employees specified in paragraph (a), clause (13), are included employees under paragraph (a) if employer and employee contributions are made in a timely manner in the amounts required by section 352.04. Employee contributions must be deducted from salary. Employer contributions are the sole obligation of the employer assuming operation of the University of Minnesota heating plant facilities or any successor organizations to that employer.
new text begin This section is effective the day following final enactment. new text end
(a) The board shall:
(1) elect a chair;
(2) appoint an executive director;
(3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, and 490 and transact the business of the system, subject to the limitations of law;
(4) consider and dispose of, or take any other action the board of directors deems appropriate concerningnew text begin ,new text end denials of applications for annuities or disability benefits under this chapter, new text begin chapter 3A, 352B, 352C, 352D, or 490,new text end and complaints of employees and others pertaining to the retirement of employees and the operation of the system;
(5) oversee the administration of the deleted text begin statedeleted text end deferred compensation plan established in section 352.965; and
(6) oversee the administration of the health care savings plan established in section 352.98.
(b) The board shall advise the director on any matters relating to the system and carrying out functions and purposes of this chapter. The board's advice shall control.
new text begin This section is effective the day following final enactment. new text end
(a) Deductions taken from the salary of an employee for the retirement fund in deleted text begin errordeleted text end new text begin excess of required amounts new text end must, upon discovery and verification by the department making the deduction, be refunded to the employee.
(b) If a deduction for the retirement fund is taken from a salary warrant or check, and the check is canceled or the amount of the warrant or check returned to the funds of the department making the payment, the sum deducted, or the part of it required to adjust the deductions, must be refunded to the department or institution if the department applies for the refund on a form furnished by the director. The department's payments must likewise be refunded to the department.
deleted text begin (c) Employee deductions and employer contributions taken in error may be directly transferred, without interest, to another Minnesota public employee retirement plan by which the employee is actually covered. deleted text end
deleted text begin For purposes of this subdivision, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plan governed by chapter 354B. deleted text end
new text begin (c) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the plan and any other plans specified in section 356.99, that section applies. If the employee should have been covered by the plan governed by chapter 352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken in error must be directly transferred to the applicable employee's account in the correct retirement plan, with interest at the rate of 0.71 percent per month, compounded annually, from the first day of the month following the month in which coverage should have commenced in the correct defined contribution plan until the end of the month in which the transfer occurs. new text end
new text begin This section is effective July 1, 2010. new text end
(a) new text begin Except for salary or wages received as a temporary employee of the legislature during a legislative session, new text end if any retired employee again becomes entitled to receive salary or wages from deleted text begin the state, ordeleted text end any employer who employs state employees as that term is defined in section 352.01, subdivision 2, deleted text begin other than salary or wages received as a temporary employee of the legislature during a legislative sessiondeleted text end new text begin in a position covered by this chapternew text end , the annuity or retirement allowance deleted text begin shalldeleted text end new text begin mustnew text end cease when the retired employee has earned an amount equal to the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal old age, survivors, and disability insurance program as set by the secretary of health and human services under United States Code, title 42, section 403, in any calendar year. If the retired employee has not yet reached the minimum age for the receipt of Social Security benefits, the maximum earnings for the retired employee deleted text begin shall bedeleted text end new text begin arenew text end equal to the annual maximum earnings allowable for the minimum age for the receipt of Social Security benefits.
(b) The balance of the annual retirement annuity after cessation must be handled or disposed of as provided in section 356.47.
(c) The annuity must be resumed when state service ends, or, if the retired employee is still employed at the beginning of the next calendar year, at the beginning of that calendar year, and payment must again end when the retired employee has earned the applicable reemployment earnings maximum specified in this subdivision. If the retired employee is granted a sick leave without pay, but not otherwise, the annuity or retirement allowance must be resumed during the period of sick leave.
(d) No payroll deductions for the retirement fund may be made from the earnings of a reemployed retired employee.
(e) No change deleted text begin shalldeleted text end new text begin maynew text end be made in the monthly amount of an annuity or retirement allowance because of the reemployment of an annuitant.
new text begin (f) If a reemployed annuitant whose annuity is suspended under paragraph (a) is having insurance premium amounts withheld under section 356.87, subdivision 2, insurance premium amounts must continue to be withheld and transferred from the suspended portion of the annuity. The balance of the annual retirement annuity after cessation, after deduction of the insurance premium amounts, must be treated as specified in paragraph (b). new text end
new text begin This section is effective January 1, 2010. new text end
new text begin If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the correctional state employees retirement plan and any other plan specified in section 356.99, that section applies. new text end
new text begin This section is effective July 1, 2010. new text end
(a) The Minnesota deleted text begin statedeleted text end deferred compensation plan is established. For purposes of this section, "plan" means the Minnesota deleted text begin statedeleted text end deferred compensation plan, unless the context clearly indicates otherwise. The Minnesota State Retirement System shall administer the plan.
(b) The purpose of the plan is to provide a means for a public employee to contribute a portion of the employee's compensation to a tax-deferred investment account. The plan is an eligible tax-deferred compensation plan under section 457(b) of the Internal Revenue Code, United States Code, title 26, section 457(b), and the applicable regulations under Code of Federal Regulations, title 26, parts 1.457-3 to 1.457-10.
(c) The board of directors of the Minnesota State Retirement System is the plan trustee and new text begin plan sponsor. new text end The board's executive director is the plan administrator. Fiduciary activities of the plan must be undertaken in a manner consistent with chapter 356A.
(d) The executive director, with the approval of the board of directors, shall adopt and amend, as required to maintain tax-qualified status, a written plan document specifying the material terms and conditions for eligibility, benefits, applicable limitations, and the time and form under which benefit distributions can be made. With the approval of the board of directors, the executive director may also establish policies and procedures necessary for the administration of the deferred compensation plan.
(e) The plan document deleted text begin shalldeleted text end new text begin mustnew text end include provisions that are necessary to cause the plan to be an eligible deferred compensation plan within the meaning of section 457(b) of the Internal Revenue Code. The plan document may provide additional administrative and substantive provisions consistent with state law, provided new text begin thatnew text end those provisions deleted text begin willdeleted text end new text begin donew text end not cause the plan to fail to be an eligible deferred compensation plan within the meaning of section 457(b) of the Internal Revenue Code and may include provisions for certain optional features and services.
(f) The board of directors may authorize the executive director to establish and administer a Roth 457 plan if authorized by the Internal Revenue Code or a Roth individual retirement account as defined under section 408A of the Internal Revenue Code.
(g) All amounts contributed to the deferred compensation plan and all earnings on those amounts must be held in trust, in custodial accounts, or in qualifying annuity contracts for the exclusive benefit of the plan participants and beneficiaries, as required by section 457(g) of the Internal Revenue Code and in accordance with sections 356.001 and 356A.06, subdivision 1.
(h) The information and data maintained in the accounts of the participants and beneficiaries are private data and deleted text begin shalldeleted text end new text begin mustnew text end not be disclosed to anyone other than the participant or beneficiary pursuant to a court order or deleted text begin pursuant todeleted text end new text begin undernew text end section 356.49.
(i) The plan document is not subject to the rule adoption process under the Administrative Procedures Act, including section 14.386, but must conform with applicable federal and state laws.
new text begin This section is effective the day following final enactment. new text end
new text begin (a)new text end At the request of an officer or employee of the state, an officer or employee of a political subdivision, or an employee covered by a retirement fund in section 356.20, subdivision 2, the appointing authority shall defer the payment of part of the compensation of the public officer or employee through payroll deduction.
new text begin (b)new text end The amount to be deferred must be as provided in deleted text begin a writtendeleted text end new text begin an new text end agreement between the officer or employee and the deleted text begin public employerdeleted text end new text begin plan sponsornew text end . The agreement must be in a form specified by the executive director of the Minnesota State Retirement System and must be consistent with the requirements for an eligible plan under federal and state tax laws, regulations, and rulings.
new text begin This section is effective the day following final enactment. new text end
(a) "Allowable service" means:
(1) service in a month during which a member is paid a salary from which a member contribution is deducted, deposited, and credited in the State Patrol retirement fund;
(2) for members defined in subdivision 10, clause (1), service in any month for which payments have been made to the State Patrol retirement fund under law; deleted text begin anddeleted text end
(3) for members defined in subdivision 10, clauses (2) and (3), service for which payments have been made to the State Patrol retirement fund under law, service for which payments were made to the State Police officers retirement fund under law after June 30, 1961, and all prior service which was credited to a member for service on or before June 30, 1961deleted text begin .deleted text end new text begin ;new text end
new text begin (4) any period of authorized leave of absence without pay that does not exceed one year and for which the employee obtains credit by payment to the fund under section 352B.013; and new text end
new text begin (5) eligible periods of uniformed service for which the member obtained service credit by payment under section 352B.086 to the fund. new text end
(b) Allowable service also includes any period of absence from duty by a member who, by reason of injury incurred in the performance of duty, is temporarily disabled and for which disability the state is liable under the workers' compensation law, until the date authorized by the executive director for commencement of payment of a disability benefit or until the date of a return to employment.
new text begin This section is effective the day following final enactment. new text end
new text begin This section specifies the procedure for purchasing service credit in the State Patrol retirement plan for authorized leaves of absence under section 352B.011, subdivision 3, unless an alternative payment procedure is specified in law for a particular form of leave or break in service. new text end
new text begin (a) An employee covered by the plan specified in this chapter may purchase credit for allowable service in the plan for a period specified in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever applies. The employing unit, at its option, may pay the employer portion of the amount specified in paragraph (b) on behalf of its employees. new text end
new text begin (b) If payment is received by the executive director within one year from the date the employee returned to work following the authorized leave, the payment amount is equal to the employee and employer contribution rates specified in section 352B.02 at the end of the leave period multiplied by the employee's hourly rate of salary on the date of return from the leave of absence and by the days and months of the leave of absence for which the employee is eligible for allowable service credit. The payment must include compound interest at a monthly rate of 0.71 percent from the last day of the leave period until the last day of the month in which payment is received. If payment is received by the executive director after one year from the date the employee returned to work following the authorized leave, the payment amount is the amount determined under section 356.551. Payment under this paragraph must be made before the date of termination from public employment covered under this chapter. new text end
new text begin (c) If the employee terminates employment covered by this chapter during the leave or following the leave rather than returning to covered employment, payment must be received by the executive director within 30 days after the termination date. The payment amount is equal to the employee and employer contribution rates specified in section 352B.02 on the day prior to the termination date, multiplied by the employee's hourly rate of salary on that date and by the days and months of the leave of absence prior to termination. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the State Patrol retirement plan and any other plan specified in section 356.99, that section applies. new text end
new text begin This section is effective July 1, 2010. new text end
(a) If employee deductions and employer contributions were erroneously transmitted to the association, but should have been transmitted to deleted text begin another Minnesota public pensiondeleted text end new text begin a new text end plannew text begin covered by chapter 352D, 353D, 354B, or 354Dnew text end , the executive director shall transfer the erroneous employee deductions and employer contributions to the appropriate retirement fund or individual account, as applicabledeleted text begin , without interestdeleted text end . The time limitations specified in subdivisions 7 and 12 do not apply. new text begin The transfer to the applicable defined contribution plan account must include interest at the rate of 0.71 percent per month, compounded annually, from the first day of the month following the month in which coverage should have commenced in the defined contribution plan until the end of the month in which the transfer occurs.new text end
deleted text begin (b) For purposes of this subdivision, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plans governed by chapters 353D and 354B. deleted text end
deleted text begin (c)deleted text end new text begin (b) new text end A potential transfer under paragraph (a) that is reasonably determined to cause the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code, as amended, must not be made by the executive director of the association. Within 30 days after being notified by the Public Employees Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable individual account if the proper coverage is by a defined contribution plan. The association must provide the employing unit a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer. If the employing unit receives a credit under this paragraph, the employing unit is responsible for refunding to the applicable employee any amount that had been erroneously deducted from the person's salary.
new text begin (c) If erroneous employee deductions and employer contributions reflect a plan coverage error involving any Public Employees Retirement Association plan specified in section 356.99 and any other plan specified in that section, section 356.99 applies. new text end
new text begin This section is effective July 1, 2010. new text end
new text begin (a) new text end The balance of the annual retirement annuity after suspension or the amount of the retirement annuity reduction must be handled or disposed of as provided in section 356.47.
new text begin (b) If a reemployed annuitant whose annuity is suspended is having insurance premium amounts withheld under section 356.87, subdivision 2, insurance premium amounts must continue to be withheld and transferred from the suspended portion of the annuity. The balance of the annual retirement annuity after cessation, after deduction of the insurance premium amounts, must be treated as specified in paragraph (a). new text end
new text begin This section is effective January 1, 2010. new text end
(a) new text begin Any new text end deductions taken from the salary of an employee for the retirement fund in deleted text begin errordeleted text end new text begin excess of amounts required new text end must be refunded to the employee upon the discovery of the error and after the verification of the error by the employing unit making the deduction. The corresponding new text begin excess new text end employer contribution and new text begin excess new text end additional employer contribution amounts attributable to the erroneous salary deduction must be refunded to the employing unit.
(b) If salary deductions and employer contributions were erroneously transmitted to the retirement fund and should have been transmitted to deleted text begin another Minnesota public pensiondeleted text end new text begin the new text end plannew text begin covered by chapter 352D, 353D, 354B, or 354Dnew text end , the executive director must transfer these salary deductions and employer contributions to the new text begin account of the new text end appropriate deleted text begin public pension fund without interest. For purposes of this paragraph, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plan governed by chapter 354B.deleted text end new text begin person under the applicable plan. The transfer to the applicable defined contribution plan account must include interest at the rate of 0.71 percent per month, compounded annually, from the first day of the month following the month in which coverage should have commenced in the defined contribution plan until the end of the month in which the transfer occurs.new text end
(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be made by the executive director. Within 30 days after being notified by the Teachers Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the deleted text begin retirement fund of the appropriate Minnesota public pension plan funddeleted text end new text begin account of the applicable person under the appropriate plannew text end . The retirement association must provide a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer.
(d) If a salary warrant or check from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or if a check has been returned to the funds of the employing unit making the payment, a refund of the amount deducted, or any portion of it that is required to adjust the salary deductions, must be made to the employing unit.
(e) Erroneous direct payments of member-paid contributions or erroneous salary deductions that were not refunded during the regular payroll cycle processing must be refunded to the member, plus interest computed using the rate and method specified in section 354.49, subdivision 2.
(f) Any refund under this subdivision that would cause the plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded and instead must be credited against future contributions payable by the employer. The employer is responsible for refunding to the applicable employee any amount that was erroneously deducted from the salary of the employee, with interest as specified in paragraph (e).
new text begin (g) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the plan and any other plan specified in section 356.99, that section applies. new text end
new text begin This section is effective July 1, 2010. new text end
new text begin If erroneous employee deductions and employer contributions reflect a plan coverage error involving any plan covered by this chapter and any plan specified in section 356.99, that section applies. new text end
new text begin This section is effective July 1, 2010. new text end
deleted text begin (a)deleted text end It is unlawful for a school district or other governmental subdivision or state agency to levy taxes fordeleted text begin ,deleted text end 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, but including city managers covered by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph (a), or by the defined contribution plan of the Public Employees Retirement Association under section 353.028, subdivision 3, paragraph (b), 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 or in the individual employment contract between a city and a city manager, and if for each available investment all fees and historic rates of return for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily comprehended document not to exceed two pages, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of one-half of the available elective deferral permitted per year per employee, under the Internal Revenue Code:
(i) to the state of Minnesota deferred compensation plan under section 352.965;
(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; or
(iii) any other deferred compensation plan offered by the employer under section 457 of the Internal Revenue Code;
(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 laborers national industrial pension fund or to a laborers 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 $5,000 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 $5,000 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 $5,000 per year per employee;
(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;
(12) to the International Association of Machinists 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 $5,000 per year per employee; or
(13) for employees of United Hospital District, Blue Earth, to the state of Minnesota deferred compensation program, if the employee makes a contribution, in an amount that does not exceed the total percentage of covered salary under section 353.27, subdivisions 3 and 3a.
deleted text begin (b) No governmental subdivision may make a contribution to a deferred compensation plan operating under section 457 of the Internal Revenue Code for volunteer or emergency on-call firefighters in lieu of providing retirement coverage under the federal Old Age, Survivors, and Disability Insurance Program. deleted text end
new text begin This section is effective the day following final enactment. new text end
Notwithstanding subdivisions 1 and 2, if after being discharged, the person commences receipt of an annuity from the applicable plan, and it is later determined that the person was wrongfully discharged, the person shall repay the annuity received in a lump sum within 60 days of receipt of the back pay award. deleted text begin If the annuity is not repaid, the person is not entitled to reinstatement in the applicable plan as an active member, the person is not authorized to make payments under subdivision 2, paragraph (a), and, for subsequent employment with the employer, the person shall be treated as a reemployed annuitant.deleted text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) For purposes of this section, the terms in paragraphs (b) to (e) have the meanings given them. new text end
new text begin (b) "Chief administrative officer" means the person selected or elected by the governing board of a covered pension plan with primary responsibility to administer the covered pension plan, or that person's designee or representative. new text end
new text begin (c) "Covered pension plan" means a plan enumerated in section 356.30, subdivision 3, except clauses (3), (5), (6), and (11). new text end
new text begin (d) "Governing board" means the governing board of the Minnesota State Retirement System, the Public Employees Retirement Association, the Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, or the St. Paul Teachers Retirement Fund Association. new text end
new text begin (e) "Member" means an active plan member in a covered pension plan. new text end
new text begin Any person who terminated the erroneously covered service before a chief administrative officer determined the covered pension plan coverage was in error retains the coverage with the plan that originally credited the service. new text end
new text begin Upon determination by a chief administrative officer that a member is covered by the wrong pension plan, the employer must stop remitting the erroneous employee deductions and employer contributions and report the employee to the correct covered pension plan for all subsequent service. new text end
new text begin Any plan member, with past service credited in an erroneous plan, retains the coverage for that past service with the plan that originally credited that service if the reporting error began earlier than two fiscal years prior to the current fiscal year in which the error was determined by the chief administrative officer. If the reporting error began within two fiscal years prior to the current fiscal year, the pension plan coverage for that past service must be corrected as provided in subdivision 5. new text end
new text begin (a) For cases under subdivision 4 requiring correction of prior service coverage, on behalf of the applicable member the chief administrative officer of the covered pension plan fund that has received erroneous employee deductions and employer contributions must transfer to the appropriate covered retirement plan fund an amount which is the lesser of all contributions made by or on behalf of the member for the period of erroneous membership, or the specific amount requested by the chief administrative officer of the other covered pension plan which represents the employee deductions and employer contributions that would have been made had the member been properly reported. new text end
new text begin (b) If excess employee deductions remain in the member's account after the transfer of funds, the remaining erroneous amount must be refunded to the person with interest at the rate provided under the general refund law of the applicable covered pension plan. The chief administrative officer must also return any remaining excess employer contributions by providing to the employer a credit against future contributions payable by that employer. new text end
new text begin (c) If the contributions transferred to the correct covered pension plan fund are less than the amounts required for the period being corrected, the chief administrative officer of the correct covered pension plan fund must collect the remaining employee deductions and employer contributions from the employer under laws for recovering deficient contributions applicable to the correct covered pension plan, except that no interest is chargeable if the additional amounts due under this paragraph are received by the chief administrative officer within 30 days of notifying the employer of the amount due. new text end
new text begin (d) A potential transfer under this section that would cause a plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be made. Within 30 days after being notified by a chief administrative officer of an unmade potential transfer under this section, the employer of the member must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the fund of the appropriate covered pension plan. The chief administrative officer of the covered pension plan which erroneously provided coverage must provide to the employer a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from that employer. new text end
new text begin (e) Upon transfer of the required assets, or payment from the employer under paragraph (d), whichever is applicable, allowable service and salary credit for the period being transferred is forfeited in the erroneous plan and is granted in the correct plan. new text end
new text begin This section is effective July 1, 2010. new text end
new text begin (a) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the judges retirement plan and any other plan specified in section 356.99, that section applies. new text end
new text begin (b) The provisions of section 352.04, subdivisions 8 and 9, apply to the judges' retirement plan, except that if employee deductions or contributions are erroneously transmitted to the judges' retirement fund for service rendered after the service credit limit under section 490.121, subdivision 22, has been attained, consistent with section 352D.04, subdivision 2, no employer contributions may be transferred. new text end
new text begin This section is effective July 1, 2010. new text end
new text begin Minnesota Statutes 2008, sections 352.91, subdivision 5; and 353.88, new text end new text begin are repealed. new text end
new text begin This section is effective July 1, 2010. new text end
(a) The reasonable and necessary administrative expenses of the deferred compensation plan may be charged to plan participants in the form of an annual fee, an asset-based fee, a percentage of the contributions to the plan, or a combination thereof, as set forth in the plan document. The executive director of the system at the direction of the board of directors shall establish procedures to carry out this section including allocation of administrative costs of the plan to participants. Processes and procedures shall be set forth in the plan document. Fees cannot be charged on contributions and investment returns attributable to contributions made to the Minnesota supplemental investment funds before July 1, 1992.
(b) The plan document must conform to federal and state tax laws, regulations, and rulings, and is not subject to the Administrative Procedure Act.
(c) The executive director may contract with a third party to perform administrative and record keeping functions. The executive director may solicit bids and negotiate such contracts.new text begin Participating employers must provide the necessary data to the third-party record keeper as determined by the executive director. The third-party record keeper and the Minnesota State Retirement System shall follow the data privacy provisions under chapter 13. The third-party record keeper may not solicit participants for any product or services not related to the deferred compensation plan.new text end
(d) The board of directors may authorize a third-party investment consultant to provide investment information and advicedeleted text begin , provided thatdeleted text end new text begin ifnew text end the offering of such information and advice is consistent with the investment advice requirements applicable to private plans under Title VI, subtitle A, of the Pension Protection Act of 2006, Public Law 109-280, section 601.
new text begin This section is effective July 1, 2010. new text end
"State employee" does not include:
(1) students new text begin who are new text end employed by the University of Minnesota, or the state colleges and universities, unless approved for coverage by the Board of Regents of the University of Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, whichever is applicable;
(2) employees who are eligible for membership in the state Teachers Retirement Association, except employees of the Department of Education who have chosen or may choose to be covered by the general state employees retirement plan of the Minnesota State Retirement System instead of the Teachers Retirement Association;
(3) employees of the University of Minnesota who are excluded from coverage by action of the Board of Regents;
(4) officers and enlisted personnel in the National Guard and the naval militia who are assigned to permanent peacetime duty and who under federal law are or are required to be members of a federal retirement system;
(5) election officers;
(6) persons who are engaged in public work for the state but who are employed by contractors when the performance of the contract is authorized by the legislature or other competent authority;
(7) officers and employees of the senate, or of the house of representatives, or of a legislative committee or commission who are temporarily employed;
(8) receivers, jurors, notaries public, and court employees who are not in the judicial branch as defined in section 43A.02, subdivision 25, except referees and adjusters employed by the Department of Labor and Industry;
(9) patient and inmate help new text begin who perform services new text end in state charitable, penal, and correctional institutions including the Minnesota Veterans Home;
(10) persons who are employed for professional services where the service is incidental to their regular professional duties and whose compensation is paid on a per diem basis;
(11) employees of the Sibley House Association;
(12) the members of any state board or commission who serve the state intermittently and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those boards if their compensation is $5,000 or less per year, or, if they are legally prohibited from serving more than three years; and the board of managers of the State Agricultural Society and its treasurer unless the treasurer is also its full-time secretary;
(13) state troopers and persons who are described in section 352B.011, subdivision 10, clauses (2) to (8);
(14) temporary employees of the Minnesota State Fair who are employed on or after July 1 for a period not to extend beyond October 15 of that year; and persons who are employed at any time by the state fair administration for special events held on the fairgrounds;
(15) emergency employees who are in the classified service; except that if an emergency employee, within the same pay period, becomes a provisional or probationary employee on other than a temporary basis, the employee must be considered a "state employee" retroactively to the beginning of the pay period;
(16) temporary employees in the classified service, and temporary employees in the unclassified service who are appointed for a definite period of not more than six months and who are employed less than six months in any one-year period;
(17) interns new text begin who are new text end hired for six months or less and trainee employees, except those listed in subdivision 2a, clause (8);
(18) persons whose compensation is paid on a fee basis or as an independent contractor;
(19) state employees who are employed by the Board of Trustees of the Minnesota State Colleges and Universities in unclassified positions enumerated in section 43A.08, subdivision 1, clause (9);
(20) state employees who in any year have credit for 12 months service as teachers in the public schools of the state and as teachers are members of the Teachers Retirement Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for incidental employment as a state employee that is not covered by one of the teacher retirement associations or systems;
(21) employees of the adjutant general who are employed on an unlimited intermittent or temporary basis in the classified or unclassified service for the support of Army and Air National Guard training facilities;
(22) chaplains and nuns who are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1986, as amended through December 31, 1992;
(23) examination monitors who are employed by departments, agencies, commissions, and boards to conduct examinations required by law;
(24) persons who are appointed to serve as members of fact-finding commissions or adjustment panels, arbitrators, or labor referees under chapter 179;
(25) temporary employees who are employed for limited periods under any state or federal program for training or rehabilitation, including persons who are employed for limited periods from areas of economic distress, but not including skilled and supervisory personnel and persons having civil service status covered by the system;
(26) full-time students who are employed by the Minnesota Historical Society intermittently during part of the year and full-time during the summer months;
(27) temporary employees who are appointed for not more than six months, of the Metropolitan Council and of any of its statutory boards, if the board members are appointed by the Metropolitan Council;
(28) persons who are employed in positions designated by the Department of Management and Budget as student workers;
(29) members of trades who are employed by the successor to the Metropolitan Waste Control Commission, who have trade union pension plan coverage under a collective bargaining agreement, and who are first employed after June 1, 1977;
(30) off-duty peace officers while employed by the Metropolitan Council;
(31) persons who are employed as full-time police officers by the Metropolitan Council and as police officers are members of the public employees police and fire fund;
(32) persons who are employed as full-time firefighters by the Department of Military Affairs and as firefighters are members of the public employees police and fire fund;
(33) foreign citizens deleted text begin withdeleted text end new text begin who are employed under new text end a work permit of less than three years, or an H-1b/JV visa valid for less than three years of employment, unless notice of extension is supplied which allows them to work for three or more years as of the date new text begin that new text end the extension is granted, in which case they are eligible for coverage from the date extended; deleted text begin anddeleted text end
(34) persons who are employed by the Board of Trustees of the Minnesota State Colleges and Universities and who elected to remain members of the Public Employees Retirement Association or the Minneapolis Employees Retirement Fund, whichever applies, under Minnesota Statutes 1994, section 136C.75deleted text begin .deleted text end new text begin ; andnew text end
new text begin (35) employees who have elected to transfer service to the unclassified program under section 352D.02, subdivision 1d. new text end
new text begin This section is effective June 30, 2010. new text end
"General fund" means the general state employees retirement fundnew text begin under chapter 352new text end deleted text begin except the moneys for the unclassified programdeleted text end .
new text begin This section is effective June 30, 2010. new text end
new text begin "General employees retirement plan" means the general state employees retirement plan under chapter 352. new text end
new text begin This section is effective June 30, 2010. new text end
"Value" means deleted text begin cash value at the end of the month following receipt of an application. If no application is required, "value" means the cash value at the end of the month in which the event necessitating the transfer occursdeleted text end new text begin the market value of the account at the end of the United States investment market daynew text end .
new text begin This section is effective July 1, 2010. new text end
An employee covered by the deleted text begin regulardeleted text end new text begin general employees retirementnew text end plan who is subsequently employed as a full-time unclassified employee of the legislature or any commission or agency of the legislature without a limit on the duration of the employment may elect to transfer accumulated employee and matching employer contributionsdeleted text begin ,deleted text end as provided in section 352D.03.
new text begin This section is effective June 30, 2010. new text end
A person becoming a participant in the unclassified programnew text begin prior to July 1, 2010,new text end by virtue of employment in a position specified in subdivision 1, clause (4), and remaining in the unclassified service shall remain a participant in the program even though the position the person occupies is deleted from any of the sections referenced in subdivision 1, clause (4), by subsequent amendment, except that a person deleted text begin shalldeleted text end new text begin isnew text end not deleted text begin bedeleted text end eligible to elect the unclassified program after separation from unclassified service if on the return of the person to service, that position is not specified in subdivision 1, clause (4). Any person employed in a position specified in subdivision 1 shall cease to participate in the unclassified program in the event new text begin thatnew text end the position is placed in the classified service.
new text begin This section is effective June 30, 2010. new text end
(a) An employee new text begin referred to in subdivision 1, paragraph (c), clauses (2) to (4), (6) to (14), and (16) to (18), who is new text end credited with deleted text begin employeedeleted text end shares in the unclassified program, deleted text begin after acquiringdeleted text end new text begin and who has new text end credit for deleted text begin ten years ofdeleted text end allowable service deleted text begin anddeleted text end new text begin ,new text end not later than one month following the termination of covered employment, may elect to terminate participation in the unclassified program and be covered by the general new text begin employees retirement new text end plan by filing a written election with the executive directordeleted text begin .deleted text end new text begin if the employee was employed before July 1, 2010, and has at least ten years of allowable service as of the date of the election or if the employee was employed after June 30, 2010, and has no more than seven years of allowable service as of the date of the election.new text end
new text begin (b) If the transfer election is made, new text end the executive director shall then redeem the employee's total shares and shall credit to the employee's account in the general new text begin employees retirement new text end plan the amount of contributions that would have been so credited had the employee been covered by the general new text begin employees retirement new text end plan during the employee's entire covered employmentnew text begin or elective state servicenew text end . The balance of money so redeemed and not credited to the employee's account deleted text begin shalldeleted text end new text begin must new text end be transferred to the general new text begin employees retirement new text end plan deleted text begin retirement funddeleted text end , except that (1) the employee contribution paid to the unclassified program must be compared to (2) the employee contributions that would have been paid to the general new text begin employees retirement new text end plan for the comparable period, if the individual had been covered by that plan. If clause (1) is greater than clause (2), the difference must be refunded to the employee as provided in section 352.22. If clause (2) is greater than clause (1), the difference must be paid by the employee within six months of electing general new text begin employees retirement new text end plan coverage or before the effective date of the annuity, whichever is sooner.
deleted text begin (b)deleted text end new text begin (c) new text end An election under paragraph (a) to transfer coverage to the general new text begin employees retirement new text end plan is irrevocable during any period of covered employment.
new text begin (d) A person referenced in subdivision 1, paragraph (c), clause (1), (5), or (15), who is credited with employee shares in the unclassified program is not permitted to terminate participation in the unclassified program and be covered by the general employees retirement plan. new text end
new text begin This section is effective June 30, 2010. new text end
Unless an eligible employee enumerated in section 352D.02, subdivision 1, has elected coverage under the individual retirement account plan under chapter 354B, deleted text begin adeleted text end deleted text begin sum of money representing the assets credited to each employee exercising the option contained in section deleted text end deleted text begin , plus an equal employer contribution together with interest deleted text end new text begin for an employee exercising an option under section 352D.02, an amount equal to the employee and employer contributions new text end for the employment period deleted text begin at the applicable preretirement interest actuarial assumption rate during this perioddeleted text end new text begin plus six percent interestnew text end , compounded annually, must be used for the purchase of shares on behalf of each employee in the accounts of the supplemental retirement fund established by section 11A.17.
new text begin This section is effective June 30, 2010. new text end
(a) A person exercising an option to participate in the retirement program provided by this chapter may elect to purchase shares in one or a combination of the income share account, the growth share account, the international share account, the money market account, the bond market account, the fixed interest account, or the common stock index account established in section 11A.17. The person may elect to participate in one or more of the investment accounts in the fund by specifying, deleted text begin on a form provideddeleted text end new text begin in a manner prescribed new text end by the executive director, the percentage of the person's contributions provided in subdivision 2 to be used to purchase shares in each of the accounts.
(b) A participant may deleted text begin indicate in writing on forms provideddeleted text end new text begin , in a manner prescribednew text end by the deleted text begin Minnesota State Retirement System a choice of optionsdeleted text end new text begin executive director, choose their investment allocation new text end for subsequent purchases of shares. Until a different written indication is made by the participant, the executive director shall purchase shares in the supplemental fund as selected by the participant. If no initial option is chosen, 100 percent income shares must be purchased for a participant. A change in choice of investment option is effective deleted text begin no later than the first pay date first occurring after 30 days following the receipt of the request for a changedeleted text end new text begin at the end of the most recent United States investment market daynew text end .
deleted text begin (c) Shares in the fixed interest account attributable to any guaranteed investment contract as of July 1, 1994, may not be withdrawn from the fund or transferred to another account until the guaranteed investment contract has expired, unless the participant qualifies for withdrawal under section 352D.05 or for benefit payments under sections 352D.06 to 352D.075. deleted text end
deleted text begin (d)deleted text end new text begin (c) new text end A participant or former participant may also change the investment options selected for all or a portion of the participant's shares previously purchased in accounts, subject to the deleted text begin provisions of paragraph (c) concerning the fixed interest account. Changes in investment options for the participant's shares must be effected as soon as cash flow to an account practically permits, but not later than six months after the requested changedeleted text end new text begin trading restrictions imposed on the investment optionnew text end .
new text begin This section is effective July 1, 2010. new text end
(a) The money used to purchase shares under this section is the employee and employer contributions provided in this subdivision.
(b) The employee contribution is an amount equal to deleted text begin fourdeleted text end new text begin the new text end percent of salarynew text begin specified in section 352.04, subdivision 2, or 352.045, subdivision 3new text end .
(c) The employer contribution is an amount equal to six percent of salary.
(d) For members of the legislature, the contributions under this subdivision also must be made on per diem payments received during a regular or special legislative session, but may not be made on per diem payments received outside of a regular or special legislative session, on the additional compensation attributable to a leadership position under section 3.099, subdivision 3, living expense payments under section 3.101, or special session living expense payments under section 3.103.
(e) For a judge who is a member of the unclassified plan under section 352D.02, subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent of salary, and there is no employer contribution.
(f) These contributions must be made in the manner provided in section 352.04, subdivisions 4, 5, and 6.
new text begin This section is effective the first day of the first full pay period beginning after July 1, 2010. new text end
After termination of covered employment or at any time thereafter, a participant is entitled, upon application, to withdraw the cash value of the participant's total shares or leave such shares on deposit with the supplemental retirement fund. The account is valued at the end of the deleted text begin month in whichdeleted text end new text begin most recent United States investment market day following receipt of thenew text end application for withdrawal is made. Shares not withdrawn remain on deposit with the supplemental retirement fund until the former participant becomes at least 55 years old, and applies for an annuity under section 352D.06, subdivision 1.
new text begin This section is effective July 1, 2010. new text end
(a) A participant in the unclassified program may repay regular refunds taken under section 352.22, as provided in section 352.23.
(b) A participant in the unclassified program or an employee covered by the general new text begin employees retirement new text end plan who has withdrawn the value of the total shares may repay the refund taken and thereupon restore the service credit, rights and benefits forfeited by paying into the fund the amount refunded plus interest at an annual rate of 8.5 percent compounded annually from the date that the refund was taken until the date that the refund is repaid. If the participant had withdrawn only the employee shares as permitted under prior laws, repayment must be pro rata.
(c) Except as provided in section 356.441, the repayment of a refund under this section must be made in a lump sum.
new text begin This section is effective June 30, 2010. new text end
An annuity under this section accrues the deleted text begin first day of the first full month after an application is received or the day following termination of state service, whichever is later. The account must be valued and redeemed on the later of the end of the month of termination of covered employment, or the end of the month of receipt of the annuity application for the purpose of computing the annuitydeleted text end new text begin day following receipt of the application or the day following termination, whichever is later. The benefit must be based on the value of the account the day following receipt of the application or the date of termination, whichever is later, plus any contributions and interest received after that datenew text end .
new text begin This section is effective July 1, 2010. new text end
The annuity payable under this section deleted text begin shall begindeleted text end new text begin beginsnew text end to accrue the deleted text begin firstdeleted text end day deleted text begin of the monthdeleted text end following deleted text begin the date of disabilitydeleted text end new text begin receipt of the application or the day after termination, whichever is later, plus any contributions and interest received after that date, new text end and deleted text begin shalldeleted text end new text begin mustnew text end be based on the participant's age when the annuity begins to accrue. The shares deleted text begin shalldeleted text end new text begin mustnew text end be valued as of the end of the deleted text begin month following authorization of paymentsdeleted text end new text begin day on which the benefit accruesnew text end .
new text begin This section is effective July 1, 2010. new text end
new text begin (a) new text end The executive director shall annually deleted text begin distributedeleted text end new text begin make available by electronic means to each participantnew text end the prospectus prepared by the supplemental fund, by July 1 or when received from such fund, whichever is laterdeleted text begin , to each participant in covered employmentdeleted text end .
new text begin (b) Any participant may contact the Minnesota State Retirement System and request a copy of the prospectus. new text end
new text begin This section is effective July 1, 2010. new text end
The board of directors shall establish a budget and charge participants a new text begin reasonable new text end fee to pay the administrative expenses of the unclassified program. Fees deleted text begin cannotdeleted text end new text begin may notnew text end be charged on contributions and investment returns attributable to contributions made before July 1, 1992. deleted text begin Annual total fees charged for plan administration cannot exceed 10/100 of one percent of the contributions and investment returns attributable to contributions made on or after July 1, 1992.deleted text end
new text begin This section is effective July 1, 2010. new text end
"Public employee" means a governmental employee new text begin or a public officer new text end performing personal services for a governmental subdivision defined in subdivision 6, whose salary is paid, in whole or in part, from revenue derived from taxation, fees, assessments, or from other sources. new text begin For purposes of membership in the association, new text end the term includes the classes of persons deleted text begin described ordeleted text end listed in subdivision 2anew text begin and excludes the classes of persons listed in subdivision 2bnew text end . The term also includes persons who elect association membership under subdivision 2d, paragraph (a), and persons for whom the applicable governmental subdivision had elected association membership under subdivision 2d, paragraph (b). deleted text begin The term excludes the classes of persons listed in subdivision 2b for purposes of membership in the association.deleted text end
new text begin This section is effective July 1, 2010. new text end
(a) Public employees deleted text begin whose salary from employment in one or more positions within 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 shalldeleted text end new text begin whose salary exceeds $425 in any month and who are not specifically excluded under subdivision 2b or who have not been provided an option to participate under subdivision 2d, whether individually or by action of the governmental subdivision, must new text end 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 appliesdeleted text begin ,deleted text end new text begin . Membership commencesnew text end as a condition of their employment on the first day of new text begin their new text end employment deleted text begin unless theydeleted text end new text begin or on the first day that the eligibility criteria are met, whichever is later. Public employees include but are not limited tonew text end :
deleted text begin (1) are specifically excluded under subdivision 2b; deleted text end
deleted text begin (2) do not exercise their option to elect retirement coverage in the association as provided in subdivision 2d, paragraph (a); or deleted text end
deleted text begin (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. deleted text end
new text begin (1) persons whose salary meets the threshold in this paragraph from employment in one or more positions within one governmental subdivision; new text end
new text begin (2) elected county sheriffs; new text end
new text begin (3) persons who are appointed, employed, or contracted to perform governmental functions that by law or local ordinance are required of a public officer, including, but not limited to: new text end
new text begin (i) town and city clerk or treasurer; new text end
new text begin (ii) county auditor, treasurer, or recorder; new text end
new text begin (iii) city manager as defined in section 353.028 who does not exercise the option provided under subdivision 2d; or new text end
new text begin (iv) emergency management director, as provided under section 12.25; new text end
new text begin (4) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2; new text end
new text begin (5) full-time employees of the Dakota County Agricultural Society; and new text end
new text begin (6) employees of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief Association who are not excluded employees under subdivision 2b due to coverage by the relief association pension plan and who elected general employee retirement plan coverage before August 20, 2009. new text end
(b) A public employee new text begin or elected official new text end 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 for the duration of the person's employment in that position or incumbency in elected office. Except as provided in subdivision 28, the person shall participate as a member until the employee or elected official terminates public employment under subdivision 11a or terminates membership under subdivision 11b.
deleted text begin (c) Public employees under paragraph (a) include: deleted text end
deleted text begin (1) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2; deleted text end
deleted text begin (2) full-time employees of the Dakota County Agricultural Society; and deleted text end
deleted text begin (3) employees of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief Association who are not excluded employees under subdivision 2b due to coverage by the relief association pension plan and who elect Public Employee Retirement Association general plan coverage under Laws 2009, chapter 169, article 12, section 10. deleted text end
new text begin (c) If the salary of an included public employee is less than $425 in any subsequent month, the member retains membership eligibility. new text end
new text begin This section is effective July 1, 2010, except that the amendment to paragraph (a), clause (3), applies to any person first appointed, elected, or contracted after June 30, 2010. new text end
new text begin (a) new text end The following public employees are not eligible to participate as members of the association with retirement coverage by the deleted text begin publicdeleted text end new text begin generalnew text end employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire retirement plan:
(1)new text begin persons whose salary from one governmental subdivision never exceeds $425 in a month;new text end
new text begin (2) new text end public officersdeleted text begin , other than county sheriffs,deleted text end who are elected to a governing body, new text begin city mayors, new text end or persons who are appointed to fill a vacancy in an elective office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elective position;
deleted text begin (2)deleted text end new text begin (3) new text end election officers or election judges;
deleted text begin (3)deleted text end new text begin (4) new text end patient and inmate personnel who perform services for a governmental subdivision;
deleted text begin (4)deleted text end new text begin (5) new text end except as otherwise specified in subdivision 12a, employees who are hired for a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days in the same governmental subdivision;
deleted text begin (5)deleted text end new text begin (6) new text end employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster;
deleted text begin (6)deleted text end new text begin (7) new text end 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 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 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 plan or 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;
deleted text begin (7)deleted text end new text begin (8) new text end 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;
deleted text begin (8)deleted text end new text begin (9) new text end employees 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;
deleted text begin (9)deleted text end new text begin (10) new text end resident physicians, medical interns, and pharmacist residents and pharmacist interns who are serving in a degree or residency program in public hospitals or clinics;
deleted text begin (10)deleted text end new text begin (11) new text end students who are serving in an internship or residency program sponsored by an accredited educational institution;
deleted text begin (11)deleted text end new text begin (12) new text end persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;
deleted text begin (12)deleted text end new text begin (13) new text end except for employees of Hennepin County or Hennepin Healthcare System, Inc., foreign citizens deleted text begin working fordeleted text end new text begin who are employed bynew text end a governmental subdivision deleted text begin withdeleted text end new text begin undernew text end a work permit deleted text begin of less than three yearsdeleted text end , or an H-1b visa deleted text begin validdeleted text end new text begin initially issued or extended new text end for new text begin a combined period new text end less than three years of employment. Upon deleted text begin notice to the association that the work permit or visa extendsdeleted text end new text begin extension of the employment new text end beyond the three-year period, the foreign citizens must be reported for membership deleted text begin from the date of the extensiondeleted text end new text begin beginning the first of the month thereafter provided the monthly earnings threshold as provided under subdivision 2a is metnew text end ;
deleted text begin (13)deleted text end new text begin (14) new text end 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;
deleted text begin (14)deleted text end new text begin (15) new text end 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 deleted text begin publicdeleted text end new text begin generalnew text end employees retirement deleted text begin funddeleted text end new text begin plannew text end or the public employees police and fire deleted text begin funddeleted text end new text begin plannew text end , whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;
deleted text begin (15)deleted text end new text begin (16) new text end except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter dutiesdeleted text begin ; provided thatdeleted text end new text begin , butnew text end 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 deleted text begin publicdeleted text end new text begin generalnew text end employees retirement deleted text begin funddeleted text end new text begin plannew text end or the public employees police and fire deleted text begin funddeleted text end new text begin plannew text end , whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;
deleted text begin (16)deleted text end new text begin (17) new text end 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;
deleted text begin (17)deleted text end new text begin (18) new text end electrical workers, plumbers, carpenters, and associated trades personnel new text begin who arenew text end 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 thenew text begin pension plan applicable tonew text end Carpenters Local 87 deleted text begin pension plandeleted text end 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;
deleted text begin (18)deleted text end new text begin (19) new text end bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers new text begin who arenew text end 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;
deleted text begin (19)deleted text end new text begin (20) new text end plumbers new text begin who arenew text end 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;
deleted text begin (20)deleted text end new text begin (21) new text end 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 year of employment with the governmental subdivision;
deleted text begin (21)deleted text end new text begin (22) new text end 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;
deleted text begin (22)deleted text end new text begin (23) new text end independent contractors and the employees of independent contractors; deleted text begin anddeleted text end
deleted text begin (23)deleted text end new text begin (24) new text end reemployed annuitants of the association during the course of that reemploymentdeleted text begin .deleted text end new text begin ; andnew text end
new text begin (25) persons appointed to serve on a board or commission of a governmental subdivision or an instrumentality thereof. new text end
new text begin (b) Any person performing the duties of a public officer in a position defined in subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an employee of an independent contractor. new text end
new text begin This section is effective July 1, 2010, except that clause (25) is effective for persons first appointed after June 30, 2010. new text end
(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;
(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 on January 1, 2003, who were at least age 45 on that date, and who elected 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 that association, at its option, certifies to the executive director that its employees who meet the conditions set forth in subdivision 2a are to be included for purposes of retirement coverage, in which case the status of the association as a participating employer is permanent;
(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 who meet the conditions set forth in subdivision 2a are to be considered 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; and
(3) Hennepin Healthcare System, Inc., a public corporation, with respect to employees other than paramedics, emergency medical technicians, and protection officers, if the corporate board establishes alternative retirement plans for certain classes of employees of the corporation and certifies to the association the applicable employees to be excluded from future retirement coverage.
(c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or covered by paragraph (b), clause (1) or (2), 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 new text begin the applicable provisions ofnew text end this chapter. For employees specified in paragraph (b), clause (3), membership continues until the exclusion option is exercised for the designated class of employee.
new text begin (d)new text end The option to become a member, once exercised under this subdivision, may not be withdrawn until the termination of public service as defined under subdivision 11a.
new text begin This section is effective July 1, 2010. new text end
(a) "Allowable service" means:
(1) service during years of actual membership in the course of which employee deductions were withheld from salary and contributions were made at the applicable rates under section 353.27, 353.65, or 353E.03;
(2) periods of service covered by payments in lieu of salary deductions under sections 353.27, subdivision 12, and 353.35;
(3) 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;
(4) a period of authorized leave of absence with pay from which deductions for employee contributions are made, deposited, and credited to the fund;
(5) 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 for which a member obtained service credit for each month in the leave period by payment under section 353.0161 to the fund made in place of salary deductions. An employee must return to public service and render a minimum of three months of allowable service in order to be eligible to make payment under section 353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the employee must be granted allowable service credit for the purchased period;
(6) 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 salarynew text begin , excluding overtime pay,new text end 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 30 days after termination of public service, whichever is sooner. The executive director 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 the purchased period;
(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three months allowable service per authorized temporary or seasonal layoff in one calendar year. An employee who has received the maximum service credit allowed for an authorized temporary or seasonal 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 or seasonal layoff;
(8) a period during which a member is absent from employment by a governmental subdivision by reason of service in the uniformed services, as defined in United States Code, title 38, section 4303(13), if the member returns to public service with the same governmental subdivision upon discharge from service in the uniformed service within the time frames required under United States Code, title 38, section 4312(e), provided that the member did not separate from uniformed service with a dishonorable or bad conduct discharge or under other than honorable conditions. The service deleted text begin isdeleted text end new text begin must benew text end credited if the member pays into the fund equivalent employee contributions based upon the contribution rate or rates in effect at the time that the uniformed service was performed multiplied by the full and fractional years being purchased and applied to the annual salary rate. The annual salary rate is the average annual salarynew text begin , excluding overtime pay,new text end during the purchase period that the member would have received if the member had continued to be employed in covered employment rather than to provide uniformed service, or, if the determination of that rate is not reasonably certain, the annual salary rate is the member's average salary ratenew text begin , excluding overtime pay,new text end during the 12-month period of covered employment rendered immediately preceding the period of the uniformed service. Payment of the member equivalent contributions must be made during a period that begins with the date on which the individual returns to public employment and 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. If the determined payment period is less than one year, the contributions required under this clause to receive service credit may be made within one year of the discharge date. Payment may not be accepted following 30 days after termination of public service under subdivision 11a. If the member equivalent contributions provided for in this clause are not paid in full, the member's allowable service credit must be prorated by multiplying the full and fractional number of years of uniformed service eligible for purchase by the ratio obtained by dividing the total member contributions received by the total member contributions otherwise required under this clause. The equivalent employer contribution, and, if applicable, the equivalent additional employer contribution must be paid by the governmental subdivision employing the member if the member makes the equivalent employee contributions. The employer payments must be made from funds available to the employing unit, using the employer and additional employer contribution rate or rates in effect at the time that the uniformed service was performed, applied to the same annual salary rate or rates used to compute the equivalent member contribution. The governmental subdivision involved may appropriate money for those payments. The amount of service credit obtainable under this section may not exceed five years unless a longer purchase period is required under United States Code, title 38, section 4312. The employing unit shall pay interest on all equivalent member and employer contribution amounts payable under this clause. Interest must be computed at a rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the break in service to the end of the month in which the payment is received. Upon payment, the employee must be granted allowable service credit for the purchased period; or
(9) a period specified under subdivision 40.
(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) No member may receive more than 12 months of allowable service credit in a year either for vesting purposes or for benefit calculation purposes.
(e) MS 2002 [Expired]
new text begin This section is effective the day following final enactment. new text end
(a) An employee covered by a plan specified in subdivision 1 may purchase credit for allowable service in that plan for a period specified in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever applies. The employing unit, at its option, may pay the employer portion of the amount specified in paragraph (b) on behalf of its employees.
(b) If payment is received by the executive director within one year from the date the member returned to work following the authorized leave, or within 30 days after the date of termination of public service if the member did not return to work, the payment amount is equal to the employee and employer contribution rates specified in law for the applicable plan at the end of the leave period, or at termination of public service, whichever is earlier, multiplied by the employee's average monthly salarynew text begin , excluding overtime,new text end upon which deductions were paid during the six months, or portion thereof, before the commencement of the leave of absence and by the number of months of the leave of absence for which the employee wants allowable service credit. Payments made under this paragraph must include compound interest at a monthly rate of 0.71 percent from the last day of the leave period until the last day of the month in which payment is received.
(c) If payment is received by the executive director after one year, the payment amount is the amount determined under section 356.551. Payment under this paragraph must be made before the date the person terminates public service under section 353.01, subdivision 11a.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) A member may purchase additional salary credit for a period specified in this section. new text end
new text begin (b) The applicable period is a period during which the member is receiving a reduced salary from the employer while the member is: new text end
new text begin (1) receiving temporary workers' compensation payments related to the member's service to the public employer; new text end
new text begin (2) on an authorized medical leave of absence; or new text end
new text begin (3) on an authorized partial paid leave of absence as a result of a budgetary or salary savings program offered or mandated by a governmental subdivision. new text end
new text begin (c) The differential salary amount is the difference between the average monthly salary received by the member during the period of reduced salary under this section and the average monthly salary of the member, excluding overtime, on which contributions to the applicable plan were made during the period of the last six months of covered employment occurring immediately before the period of reduced salary, applied to the member's normal employment period, measured in hours or otherwise, as applicable. new text end
new text begin (d) To receive eligible salary credit, the member shall pay an amount equal to: new text end
new text begin (1) 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; new text end
new text begin (2) 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; new text end
new text begin (3) 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. new text end
new text begin (e) The employer, by appropriate action of its governing body and documented in its official records, may pay the employer equivalent contributions and, as applicable, the equivalent employer additional contributions on behalf of the member. new text end
new text begin (f) Payment under this section 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 period of reduced salary specified under this section terminates to the date on which the payment or payments are received by the executive director. Payment under this section must be completed within the earlier of 30 days from termination of public service by the employee under section 353.01, subdivision 11a, or one year after the termination of the period specified in paragraph (b), as further restricted under this section. new text end
new text begin (g) The period for which additional allowable salary credit may be purchased is limited to the period during which the person receives temporary workers' compensation payments or for those business years in which the governmental subdivision offers or mandates a budget or salary savings program, as certified to the executive director by a resolution of the governing body of the governmental subdivision. For an authorized medical leave of absence, the period for which allowable salary credit may be purchased may not exceed 12 consecutive months of authorized medical leave. new text end
new text begin (h) To purchase salary credit for a subsequent period of temporary workers' compensation benefits or subsequent authorized medical leave of absence, the member must return to public service and render a minimum of three months of allowable service. new text end
new text begin This section is effective July 1, 2010. Purchase of reduced salary credit may be made for a period mandated or offered by a governmental subdivision for purposes of budget or salary savings on or after July 1, 2009. new text end
(a) The management of the public employees retirement fund is vested in an 11-member board of trustees consisting of ten members and the state auditor. The state auditor may designate a deputy auditor with expertise in pension matters as the auditor's representative on the board. The governor shall appoint five trustees to four-year terms, one of whom shall be designated to represent school boards, one to represent cities, one to represent counties, one who is a retired annuitant, and one who is a public member knowledgeable in pension matters. The membership of the association, including recipients of retirement annuities and disability and survivor benefits, shall elect five trustees for terms of four years, one of whom must be a member of the police and fire fund and one of whom must be a former member who met the definition of public employee under section 353.01, subdivisions 2 and 2a, for at least five years prior to terminating membership new text begin and who is receiving a retirement annuity new text end or a member who receives a disability benefit. Terms expire on January 31 of the fourth year, and positions are vacant until newly elected members are seated. Except as provided in this subdivision, trustees elected by the membership of the association must be public employees and members of the association.
(b) For seven days beginning October 1 of each year preceding a year in which an election is held, the association shall accept deleted text begin at its officedeleted text end filings deleted text begin in person or by maildeleted text end of candidates for the board of trustees. A candidate shall submit at the time of filing a nominating petition signed by 25 or more members of the association. No name may be withdrawn from nomination by the nominee after October 15. At the request of a candidate for an elected position on the board of trustees, the board shall deleted text begin maildeleted text end new text begin provide new text end a statement of up to 300 words prepared by the candidate to all persons eligible to vote in the election of the candidate. The board may adopt policiesdeleted text begin , subject to review and approval by the secretary of state under paragraph (e),deleted text end new text begin and procedures new text end to govern the form and length of these statementsdeleted text begin ,deleted text end new text begin and the new text end timing deleted text begin of mailings,deleted text end and deadlines for submitting materials to be deleted text begin mailed. The secretary of state shall resolve disputes between the board and a candidate concerning application of these policies to a particular statementdeleted text end new text begin distributed to the eligible votersnew text end .
(c) By January 10 of each year in which elections are to be held, the board shall distribute deleted text begin by maildeleted text end to the deleted text begin members ballots listingdeleted text end new text begin eligible voters the instructions and materials necessary to vote for new text end the candidatesnew text begin seeking terms on the board of trustees. Eligible voters are the members, retirees, and other benefit recipientsnew text end . No deleted text begin memberdeleted text end new text begin voter new text end may vote for more than one candidate for each board position to be filled. A deleted text begin ballot indicating adeleted text end vote for more than one person for any position is void. No special marking may be used deleted text begin on the ballotdeleted text end to indicate incumbents. deleted text begin Ballotsdeleted text end new text begin Votes cast by using paper ballots new text end mailed to the association must be postmarked no later than January 31. new text begin Votes cast by using telephone or other electronic means authorized under the board's procedures must be entered by the end of the day on January 31. new text end The deleted text begin ballot envelopes must be so designated and the ballots must be counted in a manner that ensuresdeleted text end new text begin design of the voting response media must ensurenew text end that each new text begin voter's new text end vote is secret.
(d) A candidate who receives contributions deleted text begin ordeleted text end new text begin , whonew text end makes expenditures in excess of $100, or new text begin whonew text end has given implicit or explicit consent for any other person to receive contributions or make expenditures in excess of $100 for the purpose of bringing about the candidate's electiondeleted text begin ,deleted text end shall file a report with the campaign finance and public disclosure board disclosing the source and amount of all contributions to the candidate's campaign. The campaign finance and public disclosure board shall prescribe forms governing these disclosures. Expenditures and contributions have the meaning defined in section 10A.01. These terms do not include deleted text begin the mailingdeleted text end new text begin any distributionnew text end made by the association board on behalf of the candidate. A candidate shall file a report within 30 days from the day that the results of the election are announced. The Campaign Finance and Public Disclosure Board shall maintain these reports and make them available for public inspection in the same manner as the board maintains and makes available other reports filed with it.
(e) The secretary of state shall review and deleted text begin approvedeleted text end new text begin comment on new text end the procedures defined by the board of trustees for conducting the elections specified in this subdivision, including board policies adopted under paragraph (b).
(f) The board of trustees and the executive director shall undertake their activities consistent with chapter 356A.
new text begin This section is effective the day following final enactment. new text end
(a) A representative authorized by the head of each department shall deduct employee contributions from the salary of each new text begin public new text end employee who qualifies for membership under this chapter deleted text begin anddeleted text end new text begin or chapter 353D or 353E at the rate under section 353.27, 353.65, 353D.03, or 353E.03, whichever is applicable, that is in effect on the date the salary is paid. The employer representative must also new text end remit payment in a manner prescribed by the executive director for the aggregate amount of the employee contributionsdeleted text begin ,deleted text end new text begin and new text end the new text begin required new text end employer contributions deleted text begin and the additional employer contributionsdeleted text end to be received new text begin by the association new text end within 14 calendar daysnew text begin after each pay date. If the payment is less than the amount required, the employer must pay the shortage amount to the association and collect reimbursement of any employee contribution shortage paid on behalf of a member through subsequent payroll withholdings from the wages of the employee. Payment of shortages in employee contributions and associated employer contributions, if applicable, must include interest at the rate specified in section 353.28, subdivision 5, if not received within 30 days following the date the amount was initially due under this sectionnew text end .
new text begin (b)new text end The head of each department or the person's designee shallnew text begin submitnew text end for each pay period deleted text begin submitdeleted text end to the association a salary deduction report in the format prescribed by the executive director. new text begin The report must be received by the association within 14 calendar days after each pay date or the employer may be assessed a fine of $5 per calendar day until the association receives the required data. new text end Data required deleted text begin to be submitteddeleted text end 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 new text begin defined in section 353.01, subdivision 10, earned in the pay period new text end from which each deduction was madenew text begin and the salary amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371, subdivision 1, or by a disabled member under section 353.33, subdivision 7 or 7anew text end ;
(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 periodsnew text begin as authorized by the executive directornew text end .
deleted text begin (b)deleted text end new text begin (c) new text end Employers must furnish the data required for enrollment for each new new text begin or reinstated new text end employee who qualifies for membership in the format prescribed by the executive director. The required enrollment data on new deleted text begin employeesdeleted text end new text begin members new text end must be submitted to the association prior to or concurrent with the submission of the initial employee salary deduction. new text begin Also,new text end the employer shall deleted text begin alsodeleted text end 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.new text begin If an employer fails to comply with the reporting requirements under this paragraph, the executive director may assess a fine of $25 for each failure if the association staff has notified the employer of the noncompliance and attempted to obtain the missing data or form from the employer for a period of more than three months.new text end
new text begin (d) new text end 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.
deleted text begin (c)deleted text end new text begin (e) new text end Notwithstanding paragraph (a), the association may provide for less frequent reporting and payments for small employers.
new text begin (f) The executive director may establish reporting procedures and methods as required to review compliance by employers with the salary and contribution reporting requirements in this chapter. A review of the payroll records of a participating employer may be conducted by the association on a periodic basis or as a result of concerns known to exist within a governmental subdivision. An employer under review must extract requested data and provide records to the association after receiving reasonable advanced notice. Failure to provide requested information or materials will result in the employer being liable to the association for any expenses associated with a field audit, which may include staff salaries, administrative expenses, and travel expenses. new text end
new text begin This section is effective the day following final enactment. new text end
(a) Except as provided in paragraph (b), erroneous employee deductions and erroneous employer contributions and additional employer contributions for a persondeleted text begin ,deleted text end who otherwise does not qualify for membership under this chapter, are considered:
(1) valid if the initial erroneous deduction began before January 1, 1990. Upon determination of the error by the association, the person may continue membership in the association while employed in the same position for which erroneous deductions were taken, or file a written election to terminate membership and apply for a refund upon termination of public service or defer an annuity under section 353.34; or
(2) invalid, if the initial erroneous employee deduction began on or after January 1, 1990. Upon determination of the error, the association shall refund all erroneous employee deductions and all erroneous employer contributions as specified in paragraph (e). No person may claim a right to continued or past membership in the association based on erroneous deductions which began on or after January 1, 1990.
(b) Erroneous deductions taken from the salary of a person who did not qualify for membership in the association by virtue of concurrent employment before July 1, 1978, which required contributions to another retirement fund or relief association established for the benefit of officers and employees of a governmental subdivision, are invalid. Upon discovery of the error, deleted text begin the association shall removedeleted text end new text begin allowable service credit fornew text end all invalid servicenew text begin if forfeitednew text end and, upon termination of public service, the association shall refund all erroneous employee deductions to the person, with interest as determined under section 353.34, subdivision 2, and all erroneous employer contributions without interest to the employer. This paragraph has both retroactive and prospective application.
(c) Adjustments to correct employer contributions and employee deductions taken in error from amounts which are not salary under section 353.01, subdivision 10, must be made as specified in paragraph (e). The period of adjustment must be limited to the fiscal year in which the error is discovered by the association and the immediate two preceding fiscal years.
(d) If there is evidence of fraud or other misconduct on the part of the employee or the employer, the board of trustees may authorize adjustments to the account of a member or former member to correct erroneous employee deductions and employer contributions on invalid salary and the recovery of any overpayments for a period longer than provided for under paragraph (c).
(e) Upon discovery of the receipt of erroneous employee deductions and employer contributions under paragraph (a), clause (2), or paragraph (c), the association must require the employer to discontinue the erroneous employee deductions and erroneous employer contributions reported on behalf of a member. Upon discontinuation, the association must:
(1) for a member, provide a refund deleted text begin or credit to the employerdeleted text end in the amount of the invalid employee deductions with interest on the invalid employee deductions at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is madedeleted text begin ; and the employer must pay the refunded employee deductions plus interest to the memberdeleted text end ;
(2) for a former member who:
(i) is not receiving a retirement annuity or benefit, return the erroneous employee deductions to the former member through a refund with interest at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; or
(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving an optional annuity or survivor benefit, for whom it has been determined an overpayment must be recovered, adjust the payment amount and recover the overpayments as provided under this section; and
(3) return the invalid employer contributions reported on behalf of a member or former member to the employer by providing a credit against future contributions payable by the employer.
(f) In the event that a salary warrant or check from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or check returned to the funds of the department making the payment, a refund of the sum deducted, or any portion of it that is required to adjust the deductions, must be made to the department or institution.
(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit is within the limitation period specified in paragraph (c), and an overpayment has resulted by using invalid service or salary, or due to any erroneous calculation procedure, the association must recalculate the annuity or benefit payable and recover any overpayment as provided under subdivision 7b.
(h) Notwithstanding the provisions of this subdivision, the association may apply the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans Compliance Resolution System and not issue a refund of erroneous employee deductions and employer contributions or not recover a small overpayment of benefits if the cost to correct the error would exceed the amount of the member refund or overpayment.
(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure by an employer to follow the statutory requirements for reporting eligible members and salary must be paid by the employer.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end The head of a department shall annually furnish the executive director with an exclusion report listing only those employees in potentially PERA-eligible positions who were not reported as members of the association and who worked during the school year for school employees and calendar year for nonschool employees. The department head must certify the accuracy and completeness of the exclusion report to the association. The executive director shall prescribe the manner and forms, including standardized exclusion codes, to be used by a governmental subdivision in preparing and filing exclusion reports. new text begin Also,new text end the executive director shall deleted text begin alsodeleted text end check the exclusion report to ascertain whether any omissions have been made by a department head in the reporting of new public employees for membership. The executive director may delegate an association employee under section 353.03, subdivision 3a, paragraph (b), clause (5), to conduct a field audit to review the payroll records of a governmental subdivision.
new text begin (b) If an employer fails to comply with the reporting requirements under this subdivision, the executive director may assess a fine of $25 for each failure if the association staff has notified the employer of the noncompliance and attempted to obtain the missing data or form from the employer for a period of more than three months. new text end
new text begin This section is effective the day following final enactment. new text end
Postretirement option employment deleted text begin shalldeleted text end new text begin maynew text end be for an initial period not to exceed one year. At the end of the initial period, the governing body has sole discretion to determine if the offer of a postretirement option position will be renewed, renewed with modifications, or terminated. Postretirement option employment may be renewed annually, but deleted text begin may not be renewed after the individual attains retirement age as defined in United States Code, title 42, section 416(l)deleted text end new text begin no more than four renewals may occurnew text end .
new text begin This section is effective the day following final enactment. new text end
(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 personnelnew text begin who arenew text end employed by any public ambulance service that elects to participate under section 353D.02, subdivision 3;
(4) members of a municipal rescue squad associated with new text begin the city ofnew text end 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;
(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;
(6) city managers who elected to be excluded from the general employees retirement plan of the Public Employees Retirement Association under section 353.028 and who elected to participate in the public employees defined contribution plan under section 353.028, subdivision 3, paragraph (b); deleted text begin anddeleted text end
(7) volunteer or emergency on-call firefighters serving in a municipal fire department or an independent nonprofit firefighting corporation who are not covered by the public employees police and fire retirement plan and who are not covered by a volunteer firefighters relief association and who elect to participate in the public employees defined contribution plandeleted text begin .deleted text end new text begin ;new text end
new text begin (8) elected county sheriffs who are former members of the police and fire plan and who are receiving a retirement annuity as provided under section 353.651; and new text end
new text begin (9) persons who are excluded from membership under section 353.01, subdivision 2b, paragraph (a), clause (25). new text end
(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 sheriffnew text begin who must be a member of the police and fire plan as provided under chapter 353new text end .
(c) 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.
new text begin This section is effective July 1, 2010. new text end
deleted text begin Andeleted text end new text begin (a) The following classes of new text end eligible deleted text begin elected local government officialdeleted text end new text begin participants new text end who deleted text begin electsdeleted text end new text begin elect new text end to participate in the public employees defined contribution plan new text begin under section 353D.02 new text end shall contribute an amount equal to five percent of salary as defined in section 353.01, subdivision 10deleted text begin . A participatingdeleted text end new text begin :new text end
new text begin (1)new text end elected local government deleted text begin official'sdeleted text end new text begin officials;new text end
new text begin (2) physicians; and new text end
new text begin (3) persons who are excluded from membership under section 353.01, subdivision 2b, clause (25). new text end
new text begin (b) A participant's new text end governmental subdivision shall contribute a matching amount.
new text begin This section is effective July 1, 2010. new text end
new text begin (a) new text end Contributions made by or on behalf of a deleted text begin participating elected local government official or physiciandeleted text end new text begin participant under section 353D.03, subdivisions 1, 5, and 6, paragraph (a), new text end must be remitted to the Public Employees Retirement Association and credited to the individual account established for the participant. deleted text begin Ambulance servicedeleted text end
new text begin (b) new text end Contributions new text begin as provided under section 353D.03, subdivisions 3, and 6, paragraph (b), new text end must be remitted on a regular basis to the association together with any member contributions paid or withheld. Those contributions must be credited to the individual account of each participating member.
new text begin This section is effective July 1, 2010. new text end
The executive director may adopt policies and procedures regarding deductions taken totally or partially in error by the employer from the salary of an elected official.
new text begin This section is effective July 1, 2010. new text end
"Medical facility" means:
(1) Bridges Medical Services;
(2) the City of Cannon Falls Hospital;
(3) new text begin the Chris Jenson Health and Rehabilitation Center in St. Louis County;new text end
new text begin (4) new text end Clearwater County Memorial Hospital doing business as Clearwater Health Services in Bagley;
deleted text begin (4)deleted text end new text begin (5) new text end the Dassel Lakeside Community Home;
new text begin (6) the Douglas County Hospital, with respect to the Mental Health Unit; new text end
deleted text begin (5)deleted text end new text begin (7) new text end the Fair Oaks Lodge, Wadena;
deleted text begin (6)deleted text end new text begin (8) new text end the Glencoe Area Health Center;
deleted text begin (7)deleted text end new text begin (9) new text end Hutchinson Area Health Care;
deleted text begin (8)deleted text end new text begin (10) new text end the Lakefield Nursing Home;
deleted text begin (9)deleted text end new text begin (11) new text end the Lakeview Nursing Home in Gaylord;
deleted text begin (10)deleted text end new text begin (12) new text end the Luverne Public Hospital;
deleted text begin (11)deleted text end new text begin (13) new text end the Oakland Park Nursing Home;
deleted text begin (12)deleted text end new text begin (14) new text end the RenVilla Nursing Home;
deleted text begin (13)deleted text end new text begin (15) new text end the Rice Memorial Hospital in Willmar, with respect to the Department of Radiology and the Department of Radiation/Oncology;
deleted text begin (14)deleted text end new text begin (16) new text end the St. Peter Community Health Care Center;
deleted text begin (15)deleted text end new text begin (17) new text end the Waconia-Ridgeview Medical Center;
deleted text begin (16)deleted text end new text begin (18) new text end the Weiner Memorial Medical Center, Inc.; deleted text begin anddeleted text end
new text begin (19) the Wheaton Community Hospital; and new text end
deleted text begin (17)deleted text end new text begin (20) new text end the Worthington Regional Hospital.
new text begin This section is effective the day following final enactment. new text end
(a) The chief clerical officer of a governmental subdivision may submit a resolution from the governing body to the executive director of the Public Employees Retirement Association which supports providing coverage under this chapter for employees of that governmental subdivision who are privatized, and which states that the governing body will pay for actuarial calculations, as further specified in paragraph (c).
(b) The governing body must also provide a copy of any applicable purchase or lease agreement and any other information requested by the executive director to allow the executive director to verify that under the proposed employer change, the new employer does not qualify as a governmental subdivision under section 353.01, subdivision 6, making the employees ineligible for continued coverage as active members of the general employees retirement plan of the Public Employees Retirement Association.
(c) Following receipt of a resolution and a determination by the executive director that the new employer is not a governmental subdivision, the executive director shall direct the consulting actuary retained under section 356.214 to determine whether the general employees retirement plan of the Public Employees Retirement Associationnew text begin , if coverage under this chapter is provided,new text end is expected to receive a net gain new text begin or a net loss new text end if privatization occursdeleted text begin , by determining whetherdeleted text end new text begin . A net gain is expected if new text end the actuarial liability of the special benefit coverage provided under this chapter, if extended to the applicable employees under the privatization, is less than the actuarial gain otherwise to accrue to the plan. new text begin A net loss is expected if the actuarial accrued liability of the special benefit coverage provided under this chapter, if extended to the applicable employees under the privatization, is more than the actuarial gain otherwise to accrue to the plan. new text end The date of the actuarial calculations used to make this determination must be within one year of the effective date, as defined in section 353F.02, subdivision 3.
new text begin This section is effective the day following final enactment. new text end
(a) If the actuarial calculations under subdivision 1, paragraph (c), indicate that a net gain to the general employees retirement plan of the Public Employees Retirement Association is expected due to the privatization, new text begin or if paragraph (c) applies, new text end the executive director shall forward a recommendation and supporting documentation to the chair of the Legislative Commission on Pensions and Retirement, the chair of the Governmental Operations, Reform, Technology and Elections Committee of the house of representatives, the chair of the State and Local Government Operations and Oversight Committee of the senate, and the executive director of the Legislative Commission on Pensions and Retirement. The recommendation must be in the form of an addition to the definition of "medical facility" under section 353F.02, subdivision 4, or to "other public employing unit" under section 353F.02, subdivision 5, whichever is applicable. The recommendation must be forwarded to the legislature before January 15 for the recommendation to be considered in that year's legislative session.new text begin The recommendation may be included as part of public pension administrative legislation under section 356B.05.new text end
(b) If a medical facility or other public employing unit listed under section 353F.02, subdivision 4 or 5, fails to privatize within one year of the final enactment date of the legislation adding the entity to the applicable definition, its inclusion under this chapter is voided, and the executive director shall include in the new text begin subsequentnew text end proposed legislation under paragraph (a) a recommendation that the applicable entity be stricken from the definition.
new text begin (c) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the executive director shall forward a recommendation that the privatization be included as an addition under paragraph (a) if the chief clerical officer of the applicable governmental subdivision submits a resolution from the governing body specifying that a lump sum payment will be made to the executive director equal to the net loss, plus interest. The interest must be computed using the applicable preretirement interest rate assumption under section 356.215, subdivision 8, expressed as a monthly rate, from the date of the actuarial valuation from which the actuarial accrued liability data was used to determine the net loss in the actuarial study under subdivision 1, to the date of payment, with annual compounding. Payment must be made on or after the effective date defined under section 353F.02. new text end
new text begin This section is effective the day following final enactment. new text end
A determination made by the deleted text begin administrationdeleted text end new text begin chief administrative officer new text end of a covered pension plan regarding a person's eligibility, benefits, or other rights under the plan with which the person does not agree is subject to review under this section.
new text begin This section is effective the day following final enactment. new text end
If the applicable chief administrative officer denies an application or a written request, modifies a benefit, or terminates a benefit of a person claiming a right or potential rights under a covered pension plan, the chief administrative officer shall notify that person through a written notice containing:
(1) a statement of the reasons for the determination;
(2) a notice that the person may petition the governing board of the covered pension plan for a review of the determination and that a person's petition for review must be filed in the administrative office of the covered pension plan within 60 days of the receipt of the written notice of the determination;
(3) a statement indicating that a failure to petition for review within 60 days precludes the person from contesting in any other administrative review or court procedure the issues determined by the chief administrative officer;
(4) a statement indicating that all relevant materials, documents, affidavits, and other records that the person wishes to be reviewed in support of the petition must be filed with and received in the administrative office of the covered pension plan at least deleted text begin 30deleted text end new text begin 15 new text end days before the date of the hearing under subdivision 10; and
(5) a deleted text begin copydeleted text end new text begin summary new text end of this sectionnew text begin , including all filing requirements and deadlinesnew text end .
new text begin This section is effective the day following final enactment. new text end
(a) A person who claims a right under subdivision 2 may petition for a review of that decision by the governing board of the covered pension plan.
(b) A petition under this section must be sent to the chief administrative officer by mail and must be postmarked no later than 60 days after the person received the notice required by subdivision 3. The petition must include the person's statement of the reason or reasons that the person believes the decision of the chief administrative officer should be reversed or modified. The petition may include all documentation and written materials that the petitioner deems to be relevant. In developing a record for review by the board when a decision is appealed, the deleted text begin executive directordeleted text end new text begin chief administrative officer new text end may direct that the applicant participate in a fact-finding session conducted by an administrative law judge assigned by the Office of Administrative Hearings and, as applicable, participate in a vocational assessment conducted by a qualified rehabilitation counselor on contract with the applicable retirement system.
new text begin This section is effective the day following final enactment. new text end
(a) After receiving a petition, deleted text begin and not less than 30 calendar days from the date of the next regular board meeting,deleted text end the chief administrative officer must schedule a timely review of the petition before the governing board of the covered pension plan. The review must be scheduled to take into consideration any necessary accommodations to allow the petitioner to participate in the governing board's review.
(b) Not less than deleted text begin 15deleted text end new text begin 30 new text end calendar days before the scheduled hearing date, the chief administrative officer must provide by mail to the petitioner an acknowledgment of the receipt of the person's petition and a follow-up notice of the time and place of the meeting at which the governing board is scheduled to consider the petition and must provide a copy of all relevant documents, evidence, summaries, and recommendations assembled by or on behalf of the plan administration to be considered by the governing board.
(c) deleted text begin Except as provided in subdivision 8, paragraph (c),deleted text end All documents and materials that the petitioner wishes to be part of the record for review must be filed with the chief administrative officer and must be received in the offices of the covered pension plan at least deleted text begin 30deleted text end new text begin 15 new text end days before the date of the meeting at which the petition is scheduled to be heard.
(d) A petitionerdeleted text begin ,deleted text end new text begin may request a continuance of a scheduled hearing if the request is received by the chief administrative officer new text end within ten calendar days of the scheduled date of the applicable board meetingdeleted text begin , may request a continuance on a scheduled petitiondeleted text end . The chief administrative officer must reschedule the review within deleted text begin 60 days of the date of the continuance requestdeleted text end new text begin a reasonable timenew text end . Only one continuance may be granted to any petitioner.
new text begin This section is effective the day following final enactment. new text end
(a) All evidence, including all records, documents, and affidavits in the possession of the covered pension plan of which the covered pension plan desires to avail itself and be considered by the governing board, and all evidence which the petitioner wishes to present to the governing board, including any evidence which would otherwise be classified by law as "private," must be made part of the hearing record.
(b) deleted text begin Not later thandeleted text end new text begin The chief administrative officer must provide a copy of the record to each member of the governing board at least new text end seven days before the scheduled hearing datedeleted text begin , the chief administrative officer must provide a copy of the record to each member of the governing boarddeleted text end .
(c) deleted text begin At least five days before the hearing, the petitioner may submit to the chief administrative officer, for submission to the governing board,deleted text end Any additional document, affidavit, or other relevant information that deleted text begin was not initially submitted with the petitiondeleted text end new text begin the petitioner requests be part of the record may be admitted with the consent of the governing boardnew text end .
new text begin This section is effective the day following final enactment. new text end
Notwithstanding any provisions of Minnesota Statutes, section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2008, chapters 353 and 356, to the contrary, this section establishes the procedures by which the executive director of the Public Employees Retirement Association shall adjust erroneous employee deductions and employer contributions paid on behalf of active employees and former members by the city of Duluth deleted text begin anddeleted text end new text begin ,new text end by the Duluth Airport Authoritynew text begin , and by the city of Virginianew text end on amounts determined by the executive director to be invalid salary under Minnesota Statutes, section 353.01, subdivision 10, reported between January 1, 1997, and October 23, 2008, and for adjusting benefits that were paid to former members and their beneficiaries based upon invalid salary amounts.
(a) The executive director shall refund to active employees or former members who are not receiving retirement annuities or benefits all erroneous employee deductions identified by the city of Duluth deleted text begin ordeleted text end new text begin ,new text end by the Duluth Airport Authoritynew text begin , or by the city of Virginianew text end as deductions taken from amounts determined to be invalid salary. The refunds must include interest at the rate specified in Minnesota Statutes, section 353.34, subdivision 2, from the date each invalid employee deduction was received through the date each refund is paid.
(b) The refund payment for active employees must be sent to the deleted text begin applicable governmental subdivision which must pay the refunded employee deductions plus interest to the activedeleted text end new text begin home addresses of the new text end members who are employees of the city of Duluthdeleted text begin ordeleted text end new text begin ,new text end who are employees of the Duluth Airport Authority, new text begin or who are employees of the city of Virginia, new text end as applicable.
(c) Refunds to former members must be mailed by the executive director of the Public Employees Retirement Association to the former member's last known address.
(a) For a former member who is receiving a retirement annuity or disability benefit, or for a person receiving an optional annuity or survivor benefit, the executive director must:
(1) adjust the annuity or benefit payment to the correct monthly benefit amount payable by reducing the average salary under Minnesota Statutes, section 353.01, subdivision 17a, by the invalid salary amounts;
(2) determine the amount of the overpaid benefits paid from the effective date of the annuity or benefit payment to the first of the month in which the monthly benefit amount is corrected;
(3) calculate the amount of employee deductions taken in error on invalid salary, including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision 2, from the date each invalid employee deduction was received through the date the annuity or benefit is adjusted as provided under clause (1); and
(4) determine the net amount of overpaid benefits by reducing the amount of the overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous employee deductions with interestnew text begin asnew text end determined in clause (3).
(b) If a former member's erroneous employee deductions plus interest determined under this section exceeds the amount of the person's overpaid benefits, the balance must be refunded to the person to whom the annuity or benefit is being paid.
(c) The executive director shall recover the net amount of all overpaid annuities or benefits as provided under subdivision 4.
(a) The executive director shall provide a credit without interest to the city of Duluth deleted text begin anddeleted text end new text begin ,new text end to the Duluth Airport Authoritynew text begin , and to the city of Virginia, as applicable,new text end for the amount of that governmental subdivision's erroneous employer contributions. The credit must first be used to offset the net amount of the overpaid retirement annuities and the disability and survivor benefits that remains after applying the amount of erroneous employee deductions with interest as provided under subdivision 3, paragraph (a), clause (4). The remaining erroneous employer contributions, if any, must be credited against future employer contributions required to be paid by the applicable governmental subdivision. If the overpaid benefits exceed the employer contribution credit, the balance of the overpaid benefits is the obligation of the city of Duluth deleted text begin ordeleted text end new text begin ,new text end the Duluth Airport Authority, new text begin or the city of Virginia, new text end whichever is applicable.
(b) The Public Employees Retirement Association board of trustees shall determine the period of time and manner for the collection of overpaid retirement annuities and benefits, if any, from the city of Duluth deleted text begin anddeleted text end new text begin ,new text end the Duluth Airport Authoritynew text begin , and the city of Virginianew text end .
new text begin This section is effective the day following final enactment. new text end
(a) This section is effective for the city of Duluth the day after the Duluth city council and the chief clerical officer of the city of Duluth timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are, and former members who were, employees of the city of Duluth.
(b) This section is effective for the Duluth Airport Authority the day after the Duluth Airport Authority and the chief clerical officer of the Duluth Airport Authority timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are, and former members who were, employees of the Duluth Airport Authority.
new text begin (c) This section is effective for the city of Virginia the day after the Virginia city council and the chief clerical officer of the city of Virginia timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are, and former members who were, employees of the city of Virginia. If this section becomes effective for the city of Virginia, it applies retroactively from June 23, 2009. new text end
new text begin This section is effective the day following final enactment. new text end
This section is effective the day following final enactment and expires on June 30, deleted text begin 2011deleted text end new text begin 2014new text end . Individuals must not be appointed to a postretirement option position after that date.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end new text begin Minnesota Statutes 2008, section 353.01, subdivision 40, new text end new text begin is repealed effective July 1, 2010. new text end
new text begin (b) new text end new text begin Minnesota Statutes 2008, sections 353.46, subdivision 1a; and 353D.03, subdivision 2, new text end new text begin are repealed the day following final enactment. new text end
new text begin (c) new text end new text begin Minnesota Statutes 2008, section 353D.12, new text end new text begin is repealed effective July 1, 2011. new text end
new text begin (a) new text end Each municipality which has an organized fire department but which does not have a firefighters' relief association new text begin governed by section 69.77 or sections 69.771 to 69.775 and which is not exempted under paragraph (b) new text end shall annually prepare a detailed financial report of the receipts and disbursements by the municipality for fire protection service during the preceding calendar year, on a form prescribed by the state auditor. The financial report deleted text begin shalldeleted text end new text begin must new text end contain any information which the state auditor deems necessary to disclose the sources of receipts and the purpose of disbursements for fire protection service. The financial report deleted text begin shalldeleted text end new text begin must new text end be signed by the municipal clerk or clerk-treasurer of the municipality. The financial report deleted text begin shalldeleted text end new text begin must new text end be filed by the municipal clerk or clerk-treasurer with the state auditor on or before July 1 annually. The state auditor shall forward one copy to the county auditor of the county wherein the municipality is located. The municipality shall not qualify initially to receive, or be entitled subsequently to retain, state aid deleted text begin pursuant todeleted text end new text begin under new text end this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled.
new text begin (b) Each municipality that has an organized fire department and provides retirement coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide lump-sum volunteer firefighter retirement fund without filing a detailed financial report if the executive director of the Public Employees Retirement Association certifies compliance by the municipality with the requirements of sections 353G.04 and 353G.08, paragraph (e), and by the applicable fire chief with the requirements of section 353G.07. new text end
new text begin This section is effective retroactively from January 1, 2010. new text end
(a) The process for electing coverage of volunteer firefighters by the retirement plan is initiated by a request to the executive director for a cost analysis of the prospective retirement coverage.
(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief association governed by chapter 424A, the cost analysis of the prospective retirement coverage must be requested jointly by the secretary of the volunteer firefighters' relief association, following approval of the request by the board of the volunteer firefighters' relief association, and the chief administrative officer of the entity associated with the relief association, following approval of the request by the governing body of the entity associated with the relief association. If the relief association is associated with more than one entity, the chief administrative officer of each associated entity must execute the request. If the volunteer firefighters are not currently covered by a volunteer firefighters' relief association, the cost analysis of the prospective retirement coverage must be requested by the chief administrative officer of the entity operating the fire department. The request must be made in writing and must be made on a form prescribed by the executive director.
(c) The cost analysis of the prospective retirement coverage by the statewide retirement plan must be based on the service pension amount under section 353G.11 closest to the service pension amount provided by the volunteer firefighters' relief associationdeleted text begin ,deleted text end if deleted text begin there is onedeleted text end new text begin the relief association is a lump-sum defined benefit plan, or the amount equal to 95 percent of the most current average account balance per relief association member if the relief association is a defined contribution plannew text end , or to the lowest service pension amount under section 353G.11 if there is no volunteer firefighters' relief association, rounded up, and any other service pension amount designated by the requester or requesters. The cost analysis must be prepared using a mathematical procedure certified as accurate by an approved actuary retained by the Public Employees Retirement Association.
(d) If a cost analysis is requested and a volunteer firefighters' relief association exists that has filed the information required under section 69.051 in a timely fashion, upon request by the executive director, the state auditor shall provide the most recent data available on the financial condition of the volunteer firefighters' relief association, the most recent firefighter demographic data available, and a copy of the current relief association bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association exists, the chief administrative officer of the entity operating the fire department shall provide the demographic information on the volunteer firefighters serving as members of the fire department requested by the executive director.
(e) If a cost analysis is requested, the executive director of the State Board of Investment shall review the investment portfolio of the relief association, if applicable, for compliance with the applicable provisions of chapter 11A and for appropriateness for retention under the established investment objectives and investment policies of the State Board of Investment. If the prospective retirement coverage change is approved under paragraph (f), the State Board of Investment may require that the relief association liquidate any investment security or other asset which the executive director of the State Board of Investment has determined to be an ineligible or inappropriate investment for retention by the State Board of Investment. The security or asset liquidation must occur before the effective date of the transfer of retirement plan coverage. If requested to do so by the chief administrative officer of the relief association, the executive director of the State Board of Investment shall provide advice about the best means to conduct the liquidation.
(f) Upon receipt of the cost analysis, the governing body of the municipality or independent nonprofit firefighting corporation associated with the fire department shall new text begin either new text end approve or disapprove the retirement coverage change within 90 days. If the retirement coverage change is not acted upon within 90 days, it is deemed to be disapproved. If the retirement coverage change is approved by the applicable governing body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan is effective on the next following January 1.
new text begin This section is effective retroactively from January 1, 2010. new text end
deleted text begin (a)deleted text end On the date immediately prior to the effective date of the coverage change, the special fund of the applicable volunteer firefighters' relief association, if one exists, ceases to exist as a pension fund of the association and legal title to the assets of the special fund transfers to the State Board of Investment, with the beneficial title to the assets of the special fund remaining in the applicable volunteer firefighters.
deleted text begin (b) If the market value of the special fund of the volunteer firefighters' relief association for which retirement coverage changed under this chapter declines in the interval between the date of the most recent financial report or statement, and the special fund disestablishment date, the applicable municipality shall transfer an additional amount to the State Board of Investment equal to that decline. If more than one municipality is responsible for the direct management of the fire department, the municipalities shall allocate the additional transfer amount among the various applicable municipalities one-half in proportion to the population of each municipality and one-half in proportion to the market value of each municipality. deleted text end
new text begin This section is effective retroactively from January 1, 2010. new text end
(a) Annually, the executive director shall determine the funding requirements of each account in the voluntary statewide lump-sum volunteer firefighter retirement plan on or before August 1. The funding requirements as directed under this section, must be determined using a mathematical procedure developed and certified as accurate by an approved actuary retained by the Public Employees Retirement Association and based on present value factors using a six percent interest rate, without any decrement assumptions. The funding requirements must be certified to the entity or entities associated with the fire department whose active firefighters are covered by the retirement plan.
(b) The overall funding balance of each account for the current calendar year must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the account as of December 31 of the current year must be calculated based on the good time service credit of active and deferred members as of that date.
(2) The total present assets of the account projected to December 31 of the current year, including receipts by and disbursements from the account anticipated to occur on or before December 31, must be calculated. To the extent possible, the market value of assets must be utilized in making this calculation.
(3) The amount of the total present assets calculated under clause (2) must be subtracted from the amount of the total accrued liability calculated under clause (1). If the amount of total present assets exceeds the amount of the total accrued liability, then the account is considered to have a surplus over full funding. If the amount of the total present assets is less than the amount of the total accrued liability, then the account is considered to have a deficit from full funding. If the amount of total present assets is equal to the amount of the total accrued liability, then the special fund is considered to be fully funded.
(c) The financial requirements of each account for the following calendar year must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the account as of December 31 of the calendar year next following the current calendar year must be calculated based on the good time service used in the calculation under paragraph (b), clause (1), increased by one year.
(2) The increase in the total accrued liability of the account for the following calendar year over the total accrued liability of the account for the current year must be calculated.
(3) The amount of anticipated future administrative expenses of the account must be calculated by multiplying the dollar amount of the administrative expenses for the most recent prior calendar year by the factor of 1.035.
(4) If the account is fully funded, the financial requirement of the account for the following calendar year is the total of the amounts calculated under clauses (2) and (3).
(5) If the account has a deficit from full funding, the financial requirement of the account for the following calendar year is the total of the amounts calculated under clauses (2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the account.
(6) If the account has a surplus over full funding, the financial requirement of the account for the following calendar year is the financial requirement of the account calculated as though the account was fully funded under clause (4) and, if the account has also had a surplus over full funding during the prior two years, additionally reduced by an amount equal to one-tenth of the amount of the surplus over full funding of the account.
(d) The required contribution of the entity or entities associated with the fire department whose active firefighters are covered by the retirement plan is the annual financial requirements of the account of the retirement plan under paragraph (c) reduced by the amount of any fire state aid payable under sections 69.011 to 69.051 reasonably anticipated to be received by the retirement plan attributable to the entity or entities during the following calendar year, and an amount of interest on the assets projected to be received during the following calendar year calculated at the rate of six percent per annum. The required contribution must be allocated between the entities if more than one entity is involved. A reasonable amount of anticipated fire state aid is an amount that does not exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.
(e) The required contribution calculated in paragraph (d) must be paid to the retirement plan on or before December 31 of the year for which it was calculated. If the contribution is not received by the retirement plan by December 31, it is payable with interest at an annual compound rate of six percent from the date due until the date payment is received by the retirement plan. If the entity does not pay the full amount of the required contribution, the executive director shall collect the unpaid amount under section 353.28, subdivision 6.
new text begin If the executive director determines that an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has insufficient assets to meet the service pensions determined payable from the account, the executive director shall certify the amount of the potential service pension shortfall to the municipality or municipalities and the municipality or municipalities shall make an additional employer contribution to the account within ten days of the certification. If more than one municipality is associated with the account, unless the municipalities agree to a different allocation, the municipalities shall allocate the additional employer contribution one-half in proportion to the population of each municipality and one-half in proportion to the market value of the property of each municipality. new text end
deleted text begin (f)deleted text end The assets of the retirement fund may only be disbursed for:
(1) the administrative expenses of the retirement plan;
(2) the investment expenses of the retirement fund;
(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or 353G.15; deleted text begin anddeleted text end
(4) the survivor benefits payable under section 353G.12new text begin ; andnew text end
new text begin (5) the disability benefit coverage insurance premiums under section 353G.115new text end .
new text begin This section is effective retroactively from January 1, 2010. new text end
(a) An active member of the retirement plan is entitled to an alternative lump-sum service pension from the retirement plan if the person:
(1) has separated from active service with the fire department for at least 30 days;
(2) has attained the age of at least 50 years or the age for receipt of a service pension under the benefit plan of the applicable former volunteer firefighters' relief association as of the date immediately prior to the election of the retirement coverage change, whichever is later;
(3) has completed at least five years of active service with the fire department and at least five years in total as a member of the applicable former volunteer firefighters' relief association or of the retirement plan, but has not rendered at least five years of good time service credit as a member of the retirement plan; and
(4) applies in a manner prescribed by the executive director for the service pension.
(b) new text begin If retirement coverage prior to statewide retirement plan coverage was provided by a defined benefit plan volunteer firefighters relief association, new text end the alternative lump-sum service pension is the service pension amount specified in the bylaws of the applicable former volunteer firefighters' relief association either as of the date immediately prior to the election of the retirement coverage change or as of the date immediately before the termination of firefighting services, whichever is earlier, multiplied by the total number of years of service as a member of that volunteer firefighters' relief association and as a member of the retirement plan.new text begin If retirement coverage prior to statewide retirement plan coverage was provided by a defined contribution plan volunteer firefighters relief association, the alternative lump-sum service pension is an amount equal to the person's account balance as of the date immediately prior to the date on which statewide retirement plan coverage was first provided to the person plus six percent annual compound interest from that date until the date immediately prior to the date of retirement.new text end
new text begin This section is effective retroactively from January 1, 2010. new text end
The retirement plan provides the following levels of service pension amounts to be selected at the election of coverage, or, if fully funded, thereafter:
Level A | $500 per year of good time service credit | |
Level B | deleted text begin $750deleted text end new text begin $600 new text end per year of good time service credit | |
new text begin Level C new text end | new text begin $700 per year of good time service credit new text end | |
new text begin Level D new text end | new text begin $800 per year of good time service credit new text end | |
new text begin Level E new text end | new text begin $900 per year of good time service credit new text end | |
Level deleted text begin Cdeleted text end new text begin Fnew text end | $1,000 per year of good time service credit | |
new text begin Level G new text end | new text begin $1,250 per year of good time service credit new text end | |
Level deleted text begin Ddeleted text end new text begin Hnew text end | $1,500 per year of good time service credit | |
Level deleted text begin Edeleted text end new text begin Inew text end | $2,000 per year of good time service credit | |
Level deleted text begin Fdeleted text end new text begin Jnew text end | $2,500 per year of good time service credit | |
Level deleted text begin Gdeleted text end new text begin Knew text end | $3,000 per year of good time service credit | |
Level deleted text begin Hdeleted text end new text begin Lnew text end | $3,500 per year of good time service credit | |
Level deleted text begin Ideleted text end new text begin Mnew text end | $4,000 per year of good time service credit | |
Level deleted text begin Jdeleted text end new text begin Nnew text end | $4,500 per year of good time service credit | |
Level deleted text begin Kdeleted text end new text begin Onew text end | $5,000 per year of good time service credit | |
Level deleted text begin Ldeleted text end new text begin Pnew text end | $5,500 per year of good time service credit | |
Level deleted text begin Mdeleted text end new text begin Qnew text end | $6,000 per year of good time service credit | |
Level deleted text begin Ndeleted text end new text begin Rnew text end | $6,500 per year of good time service credit | |
Level deleted text begin Odeleted text end new text begin Snew text end | $7,000 per year of good time service credit | |
Level deleted text begin Pdeleted text end new text begin Tnew text end | $7,500 per year of good time service credit |
new text begin This section is effective July 1, 2010. new text end
new text begin If a municipality or independent nonprofit firefighting corporation elects to be covered by the retirement plan prior to January 1, 2010, and selects the $750 per year of good time service credit service pension amount effective for January 1, 2010, that level continues for the volunteer firefighters of that municipality or independent nonprofit firefighting corporation until a different service pension amount is selected under subdivision 2 after January 1, 2010. new text end
new text begin This section is effective July 1, 2010. new text end
new text begin (a) Except as provided in paragraph (b), no disability benefit is payable from the statewide retirement plan. new text end
new text begin (b) If the board approves the arrangement, disability coverage for statewide retirement plan members may be provided through a group disability insurance policy obtained from an insurance company licensed to do business in this state. The voluntary statewide lump-sum volunteer retirement plan is authorized to pay the premium for the disability insurance authorized by this paragraph. The proportional amount of the total annual disability insurance premium must be added to the required contribution amount determined under section 353G.08. new text end
new text begin This section is effective retroactively from January 1, 2010. new text end
(a) Any qualified municipality which is entitled to receive fire state aid but which has no volunteer firefighters' relief association directly associated with its fire department and which has no full-time firefighters with retirement coverage by the public employees police and fire retirement plan shall deposit the fire state aid in a special account established for that purpose in the municipal treasury. Disbursement from the special account may not be made for any purpose except:
(1) payment of the fees, dues and assessments to the Minnesota State Fire Department Association and to the state Volunteer Firefighters' Benefit Association in order to entitle its firefighters to membership in and the benefits of these state associations;
(2) payment of the cost of purchasing and maintaining needed equipment for the fire department; and
(3) payment of the cost of construction, acquisition, repair, or maintenance of buildings or other premises to house the equipment of the fire department.
(b) A qualified municipality which is entitled to receive fire state aid, which has no volunteer firefighters' relief association directly associated with its fire departmentnew text begin , which does not participate in the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G,new text end and which has full-time firefighters with retirement coverage by the public employees police and fire retirement plan may disburse the fire state aid as provided in paragraph (a), for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3, or for a combination of the two types of disbursements.
new text begin (c) A municipality that has no volunteer firefighters' relief association directly associated with it and that participates in the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G shall transmit any fire state aid that it receives to the voluntary statewide lump-sum volunteer firefighter retirement fund. new text end
new text begin This section is effective retroactively from January 1, 2010. new text end
new text begin (a) "Annual base salary" means: new text end
new text begin (1) for an independent school district or educational cooperative, the lowest full-time Bachelor of Arts (BA) base contract salary for the previous fiscal year for that employing unit; new text end
new text begin (2) for a charter school, the lowest starting annual salary for a full-time licensed teacher employed during the previous fiscal year for that employing unit; and new text end
new text begin (3) for a state agency or professional organization, the lowest starting annual salary for a full-time Teachers Retirement Association covered position for the previous fiscal year for that employing unit. new text end
new text begin (b) If there is no previous fiscal year data because an employer unit is new and paragraph (c) does not apply, the annual base salary for the first year of operation will be as provided in paragraph (a), except that the base contract salary for the current fiscal year, rather than the previous fiscal year, must be used. new text end
new text begin (c) For a new employer unit created as a result of a merger or consolidation, the annual base salary must be the lowest annual base salary as specified in paragraph (a) for any of the employer units involved in the merger or consolidation. new text end
new text begin This section is effective July 1, 2012. new text end
The board shall keep a record of the receipts and disbursements of the fund and a separate account with each member of the association. The board shall also keep separate accounts for annuity payments, for employer contributions and all other necessary accounts and reserves. It shall determine annually the annual interest earnings of the fund which shall include realized capital gains and losses. Any amount in the capital reserve account on July 1, 1973new text begin ,new text end shall be transferred to the employer contribution's account. The annual interest earnings shall be apportioned and credited to the separate members' accounts except those covered under the provisions of section 354.44, subdivision 6 deleted text begin or 7deleted text end . The rate to be used in this distribution computed to the last full quarter percent shall be determined by dividing the interest earnings by the total invested assets of the fund. The excess of the annual interest earnings in the excess earnings reserve which was not credited to the various accounts shall be credited to the gross interest earnings for the next succeeding year.
new text begin For purposes of this section, "monthly base salary" means the annual base salary, as defined in section 354.05, subdivision 41, divided by 12. new text end
deleted text begin (a) In computing service credit,deleted text end No teacher may receive credit for more than one year of teaching service for any fiscal year. deleted text begin Additionally, in crediting allowable service:deleted text end
deleted text begin (1) if a teacher teaches less than five hours in a day, service credit must be given for the fractional part of the day as the term of service performed bears to five hours; deleted text end
deleted text begin (2) if a teacher teaches five or more hours in a day, service credit must be given for only one day; deleted text end
deleted text begin (3) if a teacher teaches at least 170 full days in any fiscal year, service credit must be given for a full year of teaching service; and deleted text end
deleted text begin (4) if a teacher teaches for only a fractional part of the year, service credit must be given for such fractional part of the year in the same relationship as the period of service performed bears to 170 days. deleted text end
deleted text begin (b) A teacher must receive a full year of service credit based on the number of days in the employer's full school year if that school year is less than 170 days. Teaching service performed before July 1, 1961, must be computed under the law in effect at the time it was performed. deleted text end
deleted text begin (c) A teacher must not lose or gain retirement service credit as a result of the employer converting to a flexible or alternate work schedule. If the employer converts to a flexible or alternate work schedule, the forms for reporting teaching service and the procedures for determining service credit must be determined by the executive director with the approval of the board of trustees. deleted text end
new text begin (a) Except as specified in subdivisions 4 and 5, service credit must be calculated monthly by dividing the teacher's monthly salary by the monthly base salary for the teacher's employing unit and multiplying the result by 11.1 percent. new text end
new text begin (b) For purposes of computing service credit, salary must be allocated to each calendar month based on the pay period begin and end dates. If the pay period covers more than one calendar month, the salary must be allocated based on the number of days in each calendar month. new text end
new text begin (c) A teacher may not receive more than 11.1 percent of a year's service credit in a calendar month. new text end
new text begin (d) Annual service credit must be calculated by adding the allowable monthly service credit for all 12 months of the fiscal year, with the result rounded to two decimal places, subject to the annual limit specified in subdivision 2. new text end
deleted text begin (d)deleted text end For all services rendered on or after July 1, 2003, service credit for all members employed by the Minnesota State Colleges and Universities system must be determined:
(1) for full-time employees, by the definition of full-time employment contained in the collective bargaining agreement for those units listed in section 179A.10, subdivision 2, or contained in the applicable personnel or salary plan for those positions designated in section 179A.10, subdivision 1;new text begin andnew text end
(2) for part-time employees, by the appropriate proration of full-time equivalency based on the provisions contained in the collective bargaining agreement for those units listed in section 179A.10, subdivision 2, or contained in the applicable personnel or salary plan for those positions designated in section 179A.10, subdivision 1, and the applicable procedures of the Minnesota State Colleges and Universities systemdeleted text begin ; anddeleted text end new text begin .new text end
deleted text begin (3) in no case may a member receive more than one year of service credit for any fiscal year. deleted text end
new text begin For employer units that have nontraditional work schedules or pay schedules, the procedure for determining service credit must be specified by the executive director with the approval of the board of trustees. new text end
new text begin This section is effective for teaching service performed after June 30, 2012. new text end
An employing unit shall provide the following data to the association for payroll warrants on an ongoing basis within 14 calendar days after the date of the payroll warrant in a format prescribed by the executive director:
(1) association member number;
(2) employer-assigned employee number;
(3) Social Security number;
(4) amount of each salary deduction;
(5) amount of salary as defined in section 354.05, subdivision 35, from which each deduction was made;
(6) reason for payment;
deleted text begin (7) service credit; deleted text end
deleted text begin (8)deleted text end new text begin (7) new text end the beginning and ending dates of the payroll period covered and the date of actual payment;
deleted text begin (9)deleted text end new text begin (8) new text end fiscal year of salary earnings;
deleted text begin (10)deleted text end new text begin (9) new text end total remittance amount including employee, employer, and additional employer contributions;
deleted text begin (11)deleted text end new text begin (10) new text end reemployed annuitant salary under section 354.44, subdivision 5; and
deleted text begin (12)deleted text end new text begin (11) new text end other information as may be required by the executive director.
new text begin This section is effective July 1, 2012. new text end
new text begin An employing unit must provide the following data to the association on or before June 30 of each fiscal year: new text end
new text begin (1) annual base salary, as defined in section 354.05, subdivision 41; and new text end
new text begin (2) beginning and ending dates for the regular school work year. new text end
new text begin This section is effective July 1, 2011. new text end
new text begin (a) new text end An employing unit that does not comply with the reporting requirements under subdivision 2a, 4a, deleted text begin ordeleted text end 4bnew text begin , or 4d,new text end must pay a fine of $5 per calendar day until the association receives the required data.
new text begin (b) If the annual base salary required to be reported under subdivision 4d has not been settled or determined as of June 16, the fine commences if the annual base salary has not been reported to the association within 14 days following the settlement date. new text end
new text begin This section is effective July 1, 2011. new text end
(a) For purposes of this section, the term "part-time teaching position" means a teaching position within the district in which the teacher is deleted text begin employed for at least 50 full days or a fractional equivalent thereof as prescribed in section 354.091, and for which the teacher isdeleted text end compensated deleted text begin indeleted text end new text begin for new text end an amount new text begin of at least 30 percent, but new text end not exceeding 80 percent of the compensation established by the board for a full-time teacher with identical education and experience with the employing unit.
(b) For a teacher to which subdivision 1c, paragraph (b), applies, the term "part-time teaching position" means a teaching position within the district in which the teacher is deleted text begin employed for at least 25 full days or a fractional equivalent thereof as prescribed in section 354.091, and for which the teacher isdeleted text end compensated deleted text begin indeleted text end new text begin for new text end an amount new text begin of at least 15 percent, but new text end not exceeding 40 percent of the compensation established by the board for a full-time teacher, with identical education and experience with the employing unit.
new text begin This section is effective for service provided after June 30, 2012. new text end
The state board shall:
(1) Act as trustees for each fund for which it invests or manages money in accordance with the standard of care set forth in section 11A.09 if state assets are involved and in accordance with chapter 356A if pension assets are involved.
(2) Formulate policies and procedures deemed necessary and appropriate to carry out its functions. Procedures adopted by the board must allow fund beneficiaries and members of the public to become informed of proposed board actions. Procedures and policies of the board are not subject to the Administrative Procedure Act.
(3) Employ an executive director as provided in section 11A.07.
(4) Employ investment advisors and consultants as it deems necessary.
(5) Prescribe policies concerning personal investments of all employees of the board to prevent conflicts of interest.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory committees subject to section 15.059 to assist the board in carrying out its duties.
(8) Not permit state funds to be used for the underwriting or direct purchase of municipal securities from the issuer or the issuer's agent.
(9) Direct the commissioner of management and budget to sell property other than money that has escheated to the state when the board determines that sale of the property is in the best interest of the state. Escheated property must be sold to the highest bidder in the manner and upon terms and conditions prescribed by the board.
(10) Undertake any other activities necessary to implement the duties and powers set forth in this section.
(11) Establish a formula or formulas to measure management performance and return on investment. Public pension funds in the state shall utilize the formula or formulas developed by the state board.
(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state of Minnesota, employ, at its discretion, qualified private firms to invest and manage the assets of funds over which the state board has investment management responsibility. There is annually appropriated to the state board, from the assets of the funds for which the state board utilizes a private investment manager, sums sufficient to pay the costs of employing private firms. Each year, by January 15, the board shall report to the governor and legislature on the cost and the investment performance of each investment manager employed by the board.
(13) Adopt an investment policy statement that includes investment objectives, asset allocation, and the investment management structure for the retirement fund assets under its control. The statement may be revised at the discretion of the state board. The state board shall seek the advice of the council regarding its investment policy statement. Adoption of the statement is not subject to chapter 14.
(14) Adopt a compensation plan setting the terms and conditions of employment for unclassified board employees who are not covered by a collective bargaining agreement.
new text begin (15) Contract, as necessary, with the board of trustees of the Minnesota State Universities and Colleges System for the provision of investment review and selection services under section 354B.25, subdivision 3, and arrange for the receipt of payment for those services. new text end
There is annually appropriated to the state board, from the assets of the funds for which the state board provides investment services, sums sufficient to pay the costs of all necessary expenses for the administration of the board. These sums will be deposited in the State Board of Investment operating account, which must be established by the commissioner of management and budget.
The individual retirement account plan is the administrative responsibility of the Board of Trustees of the Minnesota State Colleges and Universities. The Board of Trustees of the Minnesota State Colleges and Universities may administer the plan directly or may contract out for administrative services with a qualified third-party plan administrative entitynew text begin and may contract out for investment review and selection servicenew text end .
new text begin This section is effective the day following final enactment. new text end
(a) The investment options provided under subdivision 2 must be selected by new text begin the board. The board may contract with new text end the State Board of Investmentnew text begin or with a third party to provide the investment review and selection services. The board must not contract with a third party to provide the investment option review and selection services if the third party markets, offers, or has other material interest in investment products. The board must require any third party contracted to provide investment review and selection services to disclose to the board any contracts for services and any financial relationships it has with vendors under consideration to provide investment products under the plannew text end .
In making its selection, at a minimum, the deleted text begin Statedeleted text end board deleted text begin of Investmentdeleted text end shall consider the following:
(1) the experience and ability of the financial institution to provide benefits and products that are suited to meet the needs of plan participants;
(2) the relationship of those benefits and products provided by the financial institution to their cost;
(3) the financial strength and stability of the financial institution; and
(4) the fees and expenses associated with the investment products in comparison to other products of similar risk and rates of return.
(b) After selecting a financial institution, the deleted text begin Statedeleted text end board deleted text begin of Investmentdeleted text end must periodically review each financial institution and the offered products. The periodic review must occur at least every three years. In making its review, the deleted text begin Statedeleted text end board deleted text begin of Investmentdeleted text end may retain appropriate consulting services to assist it in its periodic review, establish a budget for the cost of the periodic review process, and charge a proportional share of these costs to the reviewed financial institution.
(c) Contracts with financial institutions under this section must be executed by the boarddeleted text begin and must be approved by the State Board of Investment before executiondeleted text end .
deleted text begin (d) The State Board of Investment shall also establish policies and procedures under section 11A.04, clause (2), to carry out the provisions of this subdivision. deleted text end
new text begin This section is effective the day following final enactment. new text end
(a) The Board of Trustees of the Minnesota State Colleges and Universities shall invest the deductions and contributions under section 354C.12, after deduction of administrative expenses under section 354C.12, subdivision 4, in annuity contracts or custodial accounts from financial institutions selected deleted text begin by the State Board of Investmentdeleted text end under section 354B.25, subdivision 3.
(b) The retirement contributions and death benefits provided by annuity contracts or custodial accounts purchased by the Board of Trustees of the Minnesota State Colleges and Universities are owned by the supplemental retirement plan and must be paid in accordance with those annuity contracts or custodial account agreements.
new text begin This section is effective the day following final enactment. new text end
new text begin Minnesota Statutes 2008, section 354C.15, new text end new text begin is repealed. new text end
new text begin This section is effective the day following final enactment. new text end
(a) The actuarial valuations required annually must be made as of the beginning of each fiscal year.
(b) Two copies of the completed valuation must be delivered to the executive director of the Legislative Commission on Pensions and Retirement, to the commissioner of management and budget, and to the Legislative Reference Library.new text begin The copies of the actuarial valuation must be filed with the executive director of the Legislative Commission on Pensions and Retirement, the commissioner of management and budget, and the Legislative Reference Library no later than the last day of the sixth month occurring after the end of the previous fiscal year.new text end
(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 management and budget, and with the Legislative Reference Library, not later than the deleted text begin firstdeleted text end new text begin last new text end day of the deleted text begin 11thdeleted text end new text begin 12th new text end 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, deleted text begin two copiesdeleted text end new text begin one copy new text end 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.
new text begin This section is effective July 1, 2010. new text end
new text begin This section applies to the following retirement plans: new text end
new text begin (1) the general state employees retirement plan of the Minnesota State Retirement System established under chapter 352; new text end
new text begin (2) the correctional state employees retirement plan of the Minnesota State Retirement System established under chapter 352; new text end
new text begin (3) the State Patrol retirement plan established under chapter 352B; new text end
new text begin (4) the unclassified state employees retirement program of the Minnesota State Retirement System established under chapter 352D; new text end
new text begin (5) the general employee retirement plan of the Public Employees Retirement Association established under chapter 353; new text end
new text begin (6) the public employees police and fire retirement plan established under chapter 353; new text end
new text begin (7) the local government correctional employees retirement plan of the Public Employees Retirement Association established under chapter 353E; new text end
new text begin (8) the Teachers Retirement Association established under chapter 354; and new text end
new text begin (9) the uniform judicial retirement plan established under chapter 490. new text end
new text begin (a) The treatment specified in this section applies if, after the accrual date of an annuity or benefit from an applicable plan or plans, a marriage dissolution decree or annulment decree is rendered that specifies that the designation of an optional annuity must be revoked and if the other requirements specified in this section are satisfied. new text end
new text begin (b) Notwithstanding any law to the contrary, if the applicable pension plan or plans have provisions of law that revise the monthly benefit amount payable to the primary annuitant upon the death of the individual named as the optional joint annuitant, the monthly benefit amount must be recomputed as though the individual that had been named as the optional joint annuitant died on the date a certified copy of the marriage dissolution or annulment decree is received by the chief administrative officer. Payment of any benefit adjustment under this section is prospective only. new text end
new text begin (a) This section does not apply if the marriage dissolution decree or annulment decree is not consistent with the requirements under section 518.58. new text end
new text begin (b) The pension plan benefit recipient must not designate, and the court may not require that the member designate, a subsequent optional annuity beneficiary. new text end
new text begin (c) This section does not apply if more than one surviving individual was named as an optional joint annuitant. new text end
new text begin To receive the treatment provided in this section, an eligible retiree or disabilitant must provide, to the chief administrative officer of the applicable pension plan, a certified copy of the marriage dissolution or annulment decree. The retiree or disabilitant and the joint annuitant must also submit a form, prescribed by the chief administrative officer of the applicable pension plan and signed by both individuals, requesting the annuity bounce back as provided in subdivision 2. The individuals must also provide any other documentation the chief administrative officer may request. new text end
new text begin This section is effective the day following final enactment and applies retroactively to any marriage dissolution decree or annulment decree requiring the revocation of an optional annuity form granted at any time prior to the date of enactment. new text end
(a) If the court finds that it is necessary to preserve the marital assets of the parties, the court may order the sale of the homestead of the parties or the sale of other marital assets, as the individual circumstances may require, during the pendency of a proceeding for a dissolution of marriage or an annulment. If the court orders a sale, it may further provide for the disposition of the funds received from the sale during the pendency of the proceeding. deleted text begin If liquid or readily liquidated marital property other than property representing vested pension benefits or rights is available, the court, so far as possible, shall divide the property representing vested pension benefits or rights by the disposition of an equivalent amount of the liquid or readily liquidated property.deleted text end
(b) The court may order a partial distribution of marital assets during the pendency of a proceeding for a dissolution of marriage or an annulment for good cause shown or upon the request of both parties, provided that the court shall fully protect the interests of the other party.
new text begin This section is effective the day following final enactment. new text end
(a) The division of marital property that represents pension plan benefits or rights in the form of future pension plan payments:
(1) is payable only to the extent of the amount of the pension plan benefit payable under the terms of the plan;
(2) is not payable for a period that exceeds the time that pension plan benefits are payable to the pension plan benefit recipient;
(3) is not payable in a lump-sum amount from defined benefit pension plan assets attributable in any fashion to a spouse with the status of an active member, deferred retiree, or benefit recipient of a pension plan;
(4) if the former spouse to whom the payments are to be made dies prior to the end of the specified payment period with the right to any remaining payments accruing to an estate or to more than one survivor, is payable only to a trustee on behalf of the estate or the group of survivors for subsequent apportionment by the trustee; and
(5) in the case of defined benefit public pension plan benefits or rights, may not commence until the public plan member submits a valid application for a public pension plan benefit and the benefit becomes payable.
(b) The individual retirement account plans established under chapter 354B may provide in its plan document, if published and made generally available, for an alternative marital property division or distribution of individual retirement account plan assets. If an alternative division or distribution procedure is provided, it applies in place of paragraph (a), clause (5).
new text begin (c) If liquid or readily liquidated marital property other than property representing vested pension benefits or rights is available, the court, so far as possible, shall divide the property representing vested pension benefits or rights by the disposition of an equivalent amount of the liquid or readily liquidated property. new text end
new text begin (d) If sufficient liquid or readily liquidated marital property other than property representing vested pension benefits or rights is not available, the court may order the revocation of the designation of an optional annuity beneficiary in pension plans specified in section 356.48 or in any other pension plan in which plan-governing law or governing documents allow revocation of an optional annuity in marital dissolution or annulment situations. new text end
new text begin (a) This section is effective the day following final enactment. new text end
new text begin (b) This section applies retroactively, for plans specified in section 365.48, to any marriage dissolution decree or annulment decree requiring the revocation of an optional annuity form granted at any time prior to the date of enactment. new text end
(a) Public employees whose salary from employment in one or more positions within 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 deleted text begin publicdeleted text end new text begin generalnew text end employees retirement plan deleted text begin ordeleted text end new text begin under this chapter,new text end 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 for the duration of the person's employment in that position or incumbency in elected office. Except as provided in subdivision 28, the person shall participate as a member until the employee or elected official terminates public employment under subdivision 11a or terminates membership under subdivision 11b.
(c) Public employees under paragraph (a) include:
(1) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2;
(2) full-time employees of the Dakota County Agricultural Society; and
(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief Association who are not excluded employees under subdivision 2b due to coverage by the relief association pension plan and who elect Public Employee Retirement Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.
new text begin (d) For the purpose of participation in the MERF division of the general employees retirement plan, public employees include employees who were members of the former Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as members of the MERF division of the association. new text end
The following public employees are not eligible to participate as members of the association with retirement coverage by the deleted text begin publicdeleted text end new text begin general new text end 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 commences on or after July 1, 2002, for the service to be rendered in that elective position;
(2) election officers or election judges;
(3) patient and inmate personnel who perform services for a governmental subdivision;
(4) except as otherwise specified in subdivision 12a, employees who are hired for a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days in the same governmental subdivision;
(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 St. Paul Teachers Retirement Fund Association, deleted text begin the Minneapolis Employees Retirement Fund,deleted text end 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 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 plan or 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 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;
(9) resident physicians, medical interns, and pharmacist residents and pharmacist interns who are serving in a degree or residency program in public hospitals or clinics;
(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 or Hennepin Healthcare System, Inc., 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 must 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 deleted text begin publicdeleted text end new text begin generalnew text end 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 deleted text begin publicdeleted text end new text begin generalnew text end 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 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.
new text begin "MERF division" means the separate retirement plan within the general employees retirement plan of the Public Employees Retirement Association containing the applicable provisions of Minnesota Statutes 2008, chapter 422A. new text end
new text begin "MERF division account" means the separate account within the retirement fund of the general employees retirement fund of the Public Employees Retirement Association in which the actuarial liabilities of the former Minneapolis Employees Retirement Fund are held, and in which the assets of the former Minneapolis Employees Retirement Fund are credited. new text end
The commissioner of management and budget shall be ex officio treasurer of the retirement funds of the associationnew text begin , including the MERF division, new text end and the general bond of the commissioner of management and budget to the state deleted text begin shalldeleted text end new text begin mustnew text end be so conditioned as to cover all liability for acts as treasurer of these funds. All deleted text begin moneysdeleted text end new text begin money new text end of the association received by the commissioner of management and budget deleted text begin shalldeleted text end new text begin mustnew text end be set aside in the state treasury to the credit of the proper fundnew text begin or accountnew text end . The commissioner of management and budget shall transmit monthly to the executive director a detailed statement of all amounts so received and credited to the deleted text begin funddeleted text end new text begin funds, including the MERF divisionnew text end . Payments out new text begin of new text end the deleted text begin fund shalldeleted text end new text begin funds, including the MERF division, may only new text end be made deleted text begin onlydeleted text end on warrants issued by the commissioner of management and budget, upon abstracts signed by the executive director; provided that abstracts for investment may be signed by the deleted text begin secretarydeleted text end new text begin executive director new text end of the State Board of Investment.
The executive director shall from time to time certify to the State Board of Investment for investment such portions of the deleted text begin retirement funddeleted text end new text begin funds of the association, including the MERF division, new text end as in deleted text begin itsdeleted text end new text begin the director's new text end judgment may not be required for immediate use. The State Board of Investment shall thereupon invest and reinvest the sum so certified, or transferred, in such securities as are duly authorized as legal investments deleted text begin for state employees retirement funddeleted text end new text begin under section 11A.24 new text end and deleted text begin shall havedeleted text end new text begin has new text end authority to sell, convey, and exchange such securities and invest and reinvest the securities when it deems it desirable to do so and shall sell securities upon request of the deleted text begin board of trusteesdeleted text end new text begin executive director new text end when such funds are needed for its purposes. All of the provisions regarding accounting procedures and restrictions and conditions for the purchase and sale of securities under chapter 11A must apply to the accounting, purchase and sale of securities for the new text begin funds of the new text end Public Employees Retirement deleted text begin funddeleted text end new text begin Association, including the MERF divisionnew text end .
There is a special fund known as the "deleted text begin publicdeleted text end new text begin generalnew text end employees retirement fund," the "retirement fund," or the "fund," which must include all the assets of the new text begin general employees retirement plan of the new text end association. This fund must be credited with all contributions, all interest and all other income new text begin of the general employees retirement plan of the Public Employees Retirement Association that are new text end authorized by law. From this fund there is appropriated the payments authorized by deleted text begin this chapterdeleted text end new text begin sections 353.01 to 353.46 new text end in the amounts and at such time provided herein, including the expenses of administering the new text begin general employees retirement plan and new text end fund.
new text begin The MERF division account is established as a special account. The MERF division account includes all of the assets of the former Minneapolis Employees Retirement Fund that were transferred to the administration of the Public Employees Retirement Association under section 353.50. The special account is credited with the contributions under section 353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision 3, investment performance on the special account assets, and all other income of the MERF division authorized by law. The payments of annuities and benefits authorized by Minnesota Statutes 2008, chapter 422A, in the amounts and at the times provided in that chapter, and the administrative expenses of the MERF division are appropriated from the special account. new text end
(a) For a basic membernew text begin of the general employees retirement plan of the Public Employees Retirement Associationnew text end , the employee contribution is 9.10 percent of salary. For a coordinated membernew text begin of the general employees retirement plan of the Public Employees Retirement Associationnew text end , the employee contribution is six percent of salary plus any contribution rate adjustment under subdivision 3b.
(b) These contributions must be made by deduction from salary as defined in section 353.01, subdivision 10, in the manner provided in subdivision 4. If any portion of a member's salary is paid from other than public funds, the member's employee contribution must be based on the total salary received by the member from all sources.
(a) For a basic membernew text begin of the general employees retirement plan of the Public Employees Retirement Associationnew text end , the employer contribution is 9.10 percent of salary. For a coordinated membernew text begin of the general employees retirement plan of the Public Employees Retirement Associationnew text end , the employer contribution is six percent of salary plus any contribution rate adjustment under subdivision 3b.
(b) This contribution must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.
(a) An additional employer contribution new text begin to the general employees retirement fund of the Public Employees Retirement Association new text end must be made equal to the following applicable percentage of the total salary amount for "basic members" and for "coordinated members":
Basic Program | Coordinated Program | |||
Effective before January 1, 2006 | 2.68 | .43 | ||
Effective January 1, 2006 | 2.68 | .50 | ||
Effective January 1, 2009 | 2.68 | .75 | ||
Effective January 1, 2010 | 2.68 | 1.00 |
These contributions must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.
(b) The coordinated program contribution rates set forth in paragraph (a) effective for deleted text begin January 1, 2009, or deleted text end January 1, 2010, must not be implemented if, following receipt of the deleted text begin July 1, 2008, or deleted text end July 1, 2009, annual actuarial valuation deleted text begin reportsdeleted text end new text begin report new text end under section 356.215, respectively, the actuarially required contributions are equal to or less than the total rates under this section in effect as of January 1, 2008.
(c) This subdivision is repealed once the actuarial value of the assets of the new text begin general employees retirement new text end plan new text begin of the Public Employees Retirement Association new text end equal or exceed the actuarial accrued liability of the plan as determined by the actuary retained under sections 356.214 and 356.215. The repeal is effective on the first day of the first full pay period occurring after March 31 of the calendar year following the issuance of the actuarial valuation upon which the repeal is based.
(a) For purposes of this section, a contribution sufficiency exists if the total of the employee contribution under subdivision 2, the employer contribution under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the new text begin general employees new text end retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. For purposes of this section, a contribution deficiency exists if the total of the employee contributions under subdivision 2, the employer contributions under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision is less than the total of the normal cost, the administrative expenses, and the amortization contribution of the new text begin general employees new text end retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.
(b) Employee and employer contributions new text begin to the general employees retirement plan new text end under subdivisions 2 and 3 must be adjusted:
(1) if, after July 1, 2010, the regular actuarial valuations of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate that there is a contribution sufficiency under paragraph (a) equal to or greater than 0.5 percent of covered payroll for two consecutive years, the coordinated program employee and employer contribution rates must be decreased as determined under paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of covered payroll based on the most recent actuarial valuation; or
(2) if, after July 1, 2010, the regular actuarial valuations of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for two consecutive years, the coordinated program employee and employer contribution rates must be increased as determined under paragraph (c) to a level such that no deficiency exists based on the most recent actuarial valuation.
(c) The new text begin general employees retirement plan new text end contribution rate increase or decrease must be determined by the executive director of the Public Employees Retirement Association, must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1, and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination by the executive director that a contribution deficiency or sufficiency has existed for two consecutive fiscal years based on the most recent actuarial valuations under section 356.215. If the actuarially required contribution new text begin of the general employees retirement plan new text end exceeds or is less than the total support provided by the combined employee and employer contribution rates by more than 0.5 percent of covered payroll, the new text begin general employees retirement plan new text end coordinated program employee and employer contribution rates must be adjusted incrementally over one or more years to a level such that there remains a contribution sufficiency of no more than 0.25 percent of covered payroll.
(d) No incremental adjustment may exceed 0.25 percent for either the new text begin general employees retirement plan new text end coordinated program employee and employer contribution rates per year in which any adjustment is implemented. A new text begin general employees retirement plan new text end contribution rate adjustment under this subdivision must not be made until at least two years have passed since fully implementing a previous adjustment under this subdivision.
new text begin (e) The general employees retirement plan contribution sufficiency or deficiency determination under paragraphs (a) to (d) must be made without the inclusion of the contributions to, the funded condition of, or the actuarial funding requirements of the MERF division. new text end
(a) A representative authorized by the head of each department shall deduct employee contributions from the salary of each employee who qualifies for membership new text begin in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan new text end 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.
(b) Employers must furnish the data required for enrollment for each new employee who qualifies for membership new text begin in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan new text end 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 deleted text begin associationdeleted text end new text begin executive director new text end may provide for less frequent reporting and payments for small employers.
(a) Except as provided in paragraph (b), erroneous employee deductions and erroneous employer contributions and additional employer contributions new text begin to the general employees retirement plan of the Public Employees Retirement Association or to the public employees police and fire retirement plan new text end for a person, who otherwise does not qualify for membership under this chapter, are considered:
(1) valid if the initial erroneous deduction began before January 1, 1990. Upon determination of the error by the association, the person may continue membership in the association while employed in the same position for which erroneous deductions were taken, or file a written election to terminate membership and apply for a refund upon termination of public service or defer an annuity under section 353.34; or
(2) invalid, if the initial erroneous employee deduction began on or after January 1, 1990. Upon determination of the error, the association shall refund all erroneous employee deductions and all erroneous employer contributions as specified in paragraph (e). No person may claim a right to continued or past membership in the association based on erroneous deductions which began on or after January 1, 1990.
(b) Erroneous deductions taken from the salary of a person who did not qualify for membership in the new text begin general employees retirement plan of the Public Employees Retirement new text end Association new text begin or in the public employees police and fire retirement plan new text end by virtue of concurrent employment before July 1, 1978, which required contributions to another retirement fund or relief association established for the benefit of officers and employees of a governmental subdivision, are invalid. Upon discovery of the error, the association shall remove all invalid service and, upon termination of public service, the association shall refund all erroneous employee deductions to the person, with interest as determined under section 353.34, subdivision 2, and all erroneous employer contributions without interest to the employer. This paragraph has both retroactive and prospective application.
(c) Adjustments to correct employer contributions and employee deductions taken in error from amounts which are not salary under section 353.01, subdivision 10, must be made as specified in paragraph (e). The period of adjustment must be limited to the fiscal year in which the error is discovered by the association and the immediate two preceding fiscal years.
(d) If there is evidence of fraud or other misconduct on the part of the employee or the employer, the board of trustees may authorize adjustments to the account of a member or former member to correct erroneous employee deductions and employer contributions on invalid salary and the recovery of any overpayments for a period longer than provided for under paragraph (c).
(e) Upon discovery of the receipt of erroneous employee deductions and employer contributions under paragraph (a), clause (2), or paragraph (c), the association must require the employer to discontinue the erroneous employee deductions and erroneous employer contributions reported on behalf of a member. Upon discontinuation, the association must:
(1) for a member, provide a refund or credit to the employer in the amount of the invalid employee deductions with interest on the invalid employee deductions at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; and the employer must pay the refunded employee deductions plus interest to the member;
(2) for a former member who:
(i) is not receiving a retirement annuity or benefit, return the erroneous employee deductions to the former member through a refund with interest at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; or
(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving an optional annuity or survivor benefit, for whom it has been determined an overpayment must be recovered, adjust the payment amount and recover the overpayments as provided under this section; and
(3) return the invalid employer contributions reported on behalf of a member or former member to the employer by providing a credit against future contributions payable by the employer.
(f) In the event that a salary warrant or check from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or check returned to the funds of the department making the payment, a refund of the sum deducted, or any portion of it that is required to adjust the deductions, must be made to the department or institution.
(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit is within the limitation period specified in paragraph (c), and an overpayment has resulted by using invalid service or salary, or due to any erroneous calculation procedure, the association must recalculate the annuity or benefit payable and recover any overpayment as provided under subdivision 7b.
(h) Notwithstanding the provisions of this subdivision, the association may apply the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans Compliance Resolution System and not issue a refund of erroneous employee deductions and employer contributions or not recover a small overpayment of benefits if the cost to correct the error would exceed the amount of the member refund or overpayment.
(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure by an employer to follow the statutory requirements for reporting eligible members and salary must be paid by the employer.
(a) If employee deductions and employer contributions new text begin under this section, section 353.50, 353.65, or 353E.03 new text end were erroneously transmitted to the association, but should have been transmitted to another Minnesota public pension plan, the executive director shall transfer the erroneous employee deductions and employer contributions to the appropriate retirement fund or individual account, as applicable, without interest. The time limitations specified in subdivisions 7 and 12 do not apply.
(b) For purposes of this subdivision, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plans governed by chapters 353D and 354B.
(c) A potential transfer under paragraph (a) that is reasonably determined to cause the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code, as amended, must not be made by the executive director of the association. Within 30 days after being notified by the Public Employees Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable individual account if the proper coverage is by a defined contribution plan. The association must provide the employing unit a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer. If the employing unit receives a credit under this paragraph, the employing unit is responsible for refunding to the applicable employee any amount that had been erroneously deducted from the person's salary.
(a) In the event the executive director determines that an overpaid annuity or benefit deleted text begin thatdeleted text end new text begin from the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan new text end is the result of invalid salary included in the average salary used to calculate the payment amount must be recovered, the association must determine the amount of the employee deductions taken in error on the invalid salary, with interest determined in the manner provided for a former member under subdivision 7, paragraph (e), clause (2), item (i), and must subtract that amount from the total annuity or benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if any, must be recovered.
(b) If the invalid employee deductions plus interest exceed the amount of the overpaid benefits, the balance must be refunded to the person to whom the benefit or annuity is being paid.
(c) Any invalid employer contributions reported on the invalid salary must be credited to the employer as provided in subdivision 7, paragraph (e).
(d) If a member or former member, who is receiving a retirement annuity or disability benefit for which an overpayment is being recovered, dies before recovery of the overpayment is completed and a joint and survivor optional annuity is payable, the remaining balance of the overpaid annuity or benefit must continue to be recovered from the payment to the optional annuity beneficiary.
(e) If the association finds that a refund has been overpaid to a former member, beneficiary or other person, the amount of the overpayment must be recoverednew text begin for the benefit of the respective retirement fund or accountnew text end .
(f) The board of trustees shall adopt policies directing the period of time and manner for the collection of any overpaid retirement or optional annuity, and survivor or disability benefit, or a refund that the executive director determines must be recovered as provided under this section.
No deductions for any plan under this chapter or chapter 353E may be taken from the salary of a person who is employed by a governmental subdivision under section 353.01, subdivision 6, and who is receiving disability benefit payments from any plan under this chapter or chapter 353E unless the person waives the right to further disability benefit payments.
Deductions from the salary of a district court reporter in a judicial district consisting of two or more counties deleted text begin shalldeleted text end new text begin mustnew text end be made by the auditor of the county in which the bond and official oath of such district court reporter are filed, from the portion of salary paid by such county.
Any appointed or elected officer of a governmental subdivision who was or is a "public employee" within the meaning of section 353.01 and was or is a member of the deleted text begin funddeleted text end new text begin general employees retirement plan of the Public Employees Retirement Association new text end and whose salary was or is paid in whole or in part from revenue derived by fees and assessments, shall pay employee contribution in the amount, at the time, and in the manner provided in subdivisions 2 and 4. This subdivision deleted text begin shalldeleted text end new text begin does new text end not apply to district court reporters. The employer contribution as provided in subdivision 3, and the additional employer contribution as provided in subdivision 3a, with respect to such service deleted text begin shalldeleted text end new text begin must new text end be paid by the governmental subdivision. This subdivision deleted text begin shall havedeleted text end new text begin has new text end both retroactive and prospective application as to all such members; and every employing governmental subdivision is deemed liable, retroactively and prospectively, for all employer and additional employer contributions for every such member new text begin of the general employees retirement plan new text end in its employ. Delinquencies under this section deleted text begin shall bedeleted text end new text begin arenew text end governed in all respects by section 353.28.
The head of a department shall annually furnish the executive director with an exclusion report listing only those employees in potentially deleted text begin PERA-eligibledeleted text end new text begin PERA general employees retirement plan-eligible new text end positions who were not reported as members of the deleted text begin associationdeleted text end new text begin general employees retirement plan new text end and who worked during the school year for school employees and calendar year for nonschool employees. The department head must certify the accuracy and completeness of the exclusion report to the association. The executive director shall prescribe the manner and forms, including standardized exclusion codes, to be used by a governmental subdivision in preparing and filing exclusion reports. The executive director shall also check the exclusion report to ascertain whether any omissions have been made by a department head in the reporting of new public employees for membership. The executive director may delegate an association employee under section 353.03, subdivision 3a, paragraph (b), clause (5), to conduct a field audit to review the payroll records of a governmental subdivision.
(a) 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 executive director, including schedules of salaries applicable to various categories of employment.
(b) 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 executive director. If the association is provided a schedule of estimated earnings, the executive director is 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 new text begin general employees new text end retirement deleted text begin funddeleted text end new text begin plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plannew text end . If estimates are not furnished by the employer at the request of the executive director, the executive director may estimate the obligations of the employee and employer to the new text begin general employees new text end retirement fundnew text begin , the public employees police and fire retirement plan, or the local government correctional employees retirement plannew text end based upon those records that are in its possession.
(a) In the case of omission of required deductions new text begin for the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan new text end from the salary of an employee, the department head or designee shall immediately, upon discovery, report the employee for membership and deduct the employee deductions under subdivision 4 during the current pay period or during the pay period immediately following the discovery of the omission. Payment for the omitted obligations may only be made in accordance with reporting procedures and methods established by the executive director.
(b) When the entire omission period of an employee does not exceed 60 days, the governmental subdivision may report and submit payment of the omitted employee deductions and the omitted employer contributions through the reporting processes under subdivision 4.
(c) When the omission period of an employee exceeds 60 days, the governmental subdivision shall furnish to the association sufficient data and documentation upon which the obligation for omitted employee and employer contributions can be calculated. The omitted employee deductions must be deducted from the employee's subsequent salary payment or payments and remitted to the associationnew text begin for deposit in the applicable retirement fundnew text end . The employee shall pay omitted employee deductions due for the 60 days prior to the end of the last pay period in the omission period during which salary was earned. The employer shall pay any remaining omitted employee deductions and any omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent compounded annually, from the date or dates each omitted employee contribution was first payable.
(d) An employer shall not hold an employee liable for omitted employee deductions beyond the pay period dates under paragraph (c), nor attempt to recover from the employee those employee deductions paid by the employer on behalf of the employee. Omitted deductions due under paragraph (c) which are not paid by the employee constitute a liability of the employer that failed to deduct the omitted deductions from the employee's salary. The employer shall make payment with interest at an annual rate of 8.5 percent compounded annually. Omitted employee deductions are no longer due if an employee terminates public service before making payment of omitted employee deductions to the association, but the employer remains liable to pay omitted employer contributions plus interest at an annual rate of 8.5 percent compounded annually from the date the contributions were first payable.
(e) The association may not commence action for the recovery of omitted employee deductions and employer contributions after the expiration of three calendar years after the calendar year in which the contributions and deductions were omitted. Except as provided under paragraph (b), no payment may be made or accepted unless the association has already commenced action for recovery of omitted deductions. An action for recovery commences on the date of the mailing of any written correspondence from the association requesting information from the governmental subdivision upon which to determine whether or not omitted deductions occurred.
A terminated employee new text begin who was a member of the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan and new text end who has a period of employment in which previously omitted employer contributions were made under subdivision 12 but for whom no, or only partial, omitted employee contributions have been made, or a member who had prior coverage in the association for which previously omitted employer contributions were made under subdivision 12 but who terminated service before required omitted employee deductions could be withheld from salary, may pay the omitted employee deductions for the period on which omitted employer contributions were previously paid plus interest at an annual rate of 8.5 percent compounded annually. A terminated employee may pay the omitted employee deductions plus interest within six months of an initial notification from the association of eligibility to pay those omitted deductions. If a terminated employee is reemployed in a position covered under a public pension fund under section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment must be made no later than six months after a subsequent termination of public service.
If deductions were omitted from salary adjustments or final salary of a terminated employee new text begin who was a member of the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan and new text end who is immediately eligible to draw a monthly benefit, the employer shall pay the omitted employer and employer additional contributions plus interest on both the employer and employee amounts due at an annual rate of 8.5 percent compounded annually. The employee shall pay the employee deductions within six months of an initial notification from the association of eligibility to pay omitted deductions or the employee forfeits the right to make the payment.
A warrant payable from the new text begin general employees new text end retirement fundnew text begin , the public employees police and fire retirement fund, or the local government correctional retirement fundnew text end remaining unpaid for a period of six months must be canceled into the new text begin applicable new text end retirement fund and not new text begin canceled new text end into the new text begin state's new text end general fund.
(a) If an entity is determined to be a governmental subdivision due to receipt of a written notice of eligibility from the associationnew text begin with respect to the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional retirement plannew text end , that employer and its employees are subject to the requirements of subdivision 12, effective retroactively to the date that the executive director of the association determines that the entity first met the definition of a governmental subdivision, if that date predates the notice of eligibility.
(b) If the retroactive time period under paragraph (a) exceeds three years, an employee is authorized to purchase service credit in the applicable Public Employees Retirement Association plan for the portion of the period in excess of three years, by making payment under section 356.551. Notwithstanding new text begin any provision of new text end section 356.551, subdivision 2, new text begin to the contrary, new text end regarding time limits on purchases, payment new text begin of a service credit purchase amount new text end may be made anytime before new text begin the new text end termination of public service.
(c) This subdivision does not apply if the applicable employment under paragraph (a) included coverage by any public or private defined benefit or defined contribution retirement plan, other than a volunteer firefighters relief association. If this paragraph applies, an individual is prohibited from purchasing service credit new text begin from a Public Employees Retirement Association plan new text end for any period or periods specified in paragraph (a).
(a) A former member is entitled to a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity under subdivision 3. Application for a refund may not be made before the date of termination of public service. Except as specified in paragraph (b), a refund must be paid within 120 days following receipt of the application unless the applicant has again become a public employee required to be covered by the association.
(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a refund is not payable before termination of service under section 353.01, subdivision 11a.
(c) An individual who terminates public service covered by the Public Employees Retirement Association general employees retirement plan, new text begin the MERF division, new text end the Public Employees Retirement Association police and fire retirement plan, or the public employees local government corrections service retirement plan, and who is employed by a different employer and who becomes an active member covered by one of the other two plans, may receive a refund of employee contributions plus six percent interest compounded annually from the plan from which the member terminated service.
The board of trustees may credit to the new text begin general employees retirement new text end fund any deleted text begin moneysdeleted text end new text begin money new text end received in the form of contributions, donations, gifts, appropriations, bequests, or otherwise.
new text begin (a) new text end The annuity of a person otherwise eligible for an annuity deleted text begin under this chapterdeleted text end new text begin from the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan new text end must be suspended under subdivision 2 or reduced under subdivision 3, whichever results in the higher annual annuity amount, if the person reenters public service as a nonelective employee of a governmental subdivision in a position covered by this chapter or returns to work as an employee of a labor organization that represents public employees who are association members under this chapter and salary for the reemployment service exceeds the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal Old Age, Survivors and Disability Insurance Program as set by the secretary of health and human services under United States Code, title 42, section 403, in any calendar year. If the person has not yet reached the minimum age for the receipt of Social Security benefits, the maximum salary for the person is equal to the annual maximum earnings allowable for the minimum age for the receipt of Social Security benefits.
new text begin (b) The provisions of paragraph (a) do not apply to the members of the MERF division. new text end
new text begin (a) new text end The association shall suspend the annuity on the first of the month after the month in which the salary of the reemployed annuitant new text begin described in subdivision 1, paragraph (a), new text end exceeds the maximums set in subdivision 1, new text begin paragraph (a), new text end based only on those months in which the annuitant is actually employed in nonelective public service in a position covered under this chapter or employment with a labor organization that represents public employees who are deleted text begin associationdeleted text end members new text begin of a retirement plan new text end under this chapternew text begin or chapter 353Enew text end .
new text begin (b) new text end An annuitant who is elected to public office after retirement may hold new text begin that new text end office and receive an annuity otherwise payable from new text begin a retirement plan administered by new text end the association.
new text begin (a) new text end The association shall reduce the amount of the annuity of a person who has not reached the retirement age by one-half of the amount in excess of the applicable reemployment income maximum under subdivision 1new text begin , paragraph (a)new text end .
new text begin (b) new text end There is no reduction upon reemployment, regardless of income, for a person who has reached the retirement age.
The association shall resume paying a full annuity to the reemployed annuitant new text begin described in subdivision 1, paragraph (a), new text end at the start of each calendar year until the salary exceeds the maximums under subdivision 1, new text begin paragraph (a), new text end or on the first of the month following new text begin the new text end termination of new text begin the new text end employment which resulted in the suspension of the annuity. The executive director may adopt policies regarding the suspension and reduction of annuities under this section.
Except as provided under this section, public service performed by an annuitant new text begin described in subdivision 1, paragraph (a), new text end subsequent to retirement deleted text begin under this chapterdeleted text end new text begin from the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan new text end does not increase or decrease the amount of an annuity. The annuitant shall not make any further contributions to deleted text begin the association'sdeleted text end new text begin a new text end defined benefit plan new text begin administered by the association new text end by reason of this subsequent public service.
The deleted text begin rightdeleted text end new text begin entitlement new text end of a deferred annuitant or other former member new text begin of the general employees retirement plan of the Public Employees Retirement Association, the Minneapolis Employees Retirement Fund division, the public employees police and fire retirement plan, or the local government correctional employees retirement plan new text end to receive an annuity under the law in effect at the time deleted text begin suchdeleted text end new text begin the new text end person terminated public service is herein preserveddeleted text begin ; provided, however,deleted text end new text begin .new text end The provisions of section 353.71, subdivision 2, as amended by Laws 1973, chapter 753deleted text begin shalldeleted text end new text begin ,new text end apply to a deferred annuitant or other former member who first begins receiving an annuity after July 1, 1973.
Any coordinated member new text begin of the general employees retirement plan of the Public Employees Retirement Association new text end who deleted text begin prior todeleted text end new text begin , beforenew text end July 1, 1979new text begin ,new text end was a member of the new text begin former new text end coordinated program of the new text begin former new text end Minneapolis Municipal Employees Retirement Fund and who deleted text begin prior todeleted text end new text begin , beforenew text end July 1, 1978new text begin ,new text end was a member of the basic program of the Minneapolis Municipal Employees Retirement Fund deleted text begin shall:deleted text end
deleted text begin (1) bedeleted text end new text begin is new text end entitled to receive a retirement annuity when otherwise qualified, the calculation of which deleted text begin shalldeleted text end new text begin must new text end utilize the formula accrual rates specified in section 422A.15, subdivision 1, for that portion of credited service which was rendered deleted text begin prior todeleted text end new text begin before new text end July 1, 1978, and the formula accrual rates specified in section 353.29, subdivision 3, for the remainder of credited service, both applied to the average salary as specified in section deleted text begin 353.29, subdivision 2deleted text end new text begin 353.01, subdivision 17anew text end . The formula accrual rates to be used in calculating the retirement annuity deleted text begin shalldeleted text end new text begin must new text end recognize the service after July 1, 1978new text begin ,new text end as a member of the new text begin former new text end coordinated program of the new text begin former new text end Minneapolis Municipal Employees Retirement Fund and after July 1, 1979new text begin ,new text end as a member of the new text begin general employees retirement plan of the new text end Public Employees Retirement Association as a continuation of service rendered deleted text begin prior todeleted text end new text begin before new text end July 1, 1978. The annuity amount attributable to service as a member of the basic program of the new text begin former new text end Minneapolis Municipal Employees Retirement Fund deleted text begin shall bedeleted text end new text begin is new text end payable deleted text begin bydeleted text end new text begin from new text end the deleted text begin Minneapolis Employees Retirement Funddeleted text end new text begin MERF division new text end and the annuity amount attributable to all other service deleted text begin shall bedeleted text end new text begin is new text end payable deleted text begin bydeleted text end new text begin from the general employees retirement fund of new text end the Public Employees Retirement Associationdeleted text begin ; deleted text end new text begin .new text end
deleted text begin (2) retain eligibility when otherwise qualified for a disability benefit from the Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage by the Public Employees Retirement Association, if the member has or would, without the transfer of retirement coverage from the basic program of the Minneapolis Municipal Employees Retirement Fund to the coordinated program of the Minneapolis Municipal Employees Retirement Fund or from the coordinated program of the Minneapolis Municipal Employees Retirement Fund to the public employees retirement fund, have sufficient credited service prior to January 1, 1983, to meet the minimum service requirements for a disability benefit pursuant to section 422A.18. The disability benefit amount attributable to service as a member of the basic program of the Minneapolis Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees Retirement Fund and the disability benefit amount attributable to all other service shall be payable by the Public Employees Retirement Association. deleted text end
new text begin (a) Notwithstanding any provision of this chapter or chapter 422A to the contrary, the administration of the Minneapolis Employees Retirement Fund as the MERF division is transferred to the Public Employees Retirement Association board of trustees. The assets, service credit, and benefit liabilities of the Minneapolis Employees Retirement Fund transfer to the MERF division account within the general employees retirement plan of the Public Employees Retirement Association established by section 353.27, subdivision 1a, on July 1, 2010. new text end
new text begin (b) The creation of the MERF division must not be construed to alter the Social Security or Medicare coverage of any member of the former Minneapolis Employees Retirement Fund on June 29, 2010, while the person is employed in a position covered under the MERF division of the Public Employees Retirement Association. new text end
new text begin Effective June 30, 2010, the active, inactive, and retired members of the Minneapolis Employees Retirement Fund are transferred to the MERF division administered by the Public Employees Retirement Association and are no longer members of the Minneapolis Employees Retirement Fund. new text end
new text begin (a) All allowable service credit and salary credit of the members of the Minneapolis Employees Retirement Fund as specified in the records of the Minneapolis Employees Retirement Fund through June 30, 2010, are transferred to the MERF division of the Public Employees Retirement Association and are credited by the MERF division. Annuities or benefits of persons who are active members of the former Minneapolis Employees Retirement Fund on June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic postretirement adjustments after December 31, 2010, under section 356.415. new text end
new text begin (b) The liability for the payment of annuities and benefits of the Minneapolis Employees Retirement Fund retirees and benefit recipients as specified in the records of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the MERF division of the Public Employees Retirement Association on June 30, 2010. new text end
new text begin On June 30, 2010, the executive director of the Minneapolis Employees Retirement Fund shall transfer all records and documents relating to the Minneapolis Employees Retirement Fund and its benefit plan to the executive director of the Public Employees Retirement Association. To the extent possible, original copies of all records and documents must be transferred. new text end
new text begin On June 30, 2010, legal title to the assets of the Minneapolis Employees Retirement Fund transfers to the State Board of Investment and the assets must be invested under section 11A.14, as assets of the MERF division of the Public Employees Retirement Association. The MERF division is the successor in interest to all claims that the former Minneapolis Employees Retirement Fund may have or may assert against any person and is the successor in interest to all claims which could have been asserted against the former Minneapolis Employees Retirement Fund, but the MERF division is not liable for any claim against the former Minneapolis Employees Retirement Fund, its former governing board, or its former administrative staff acting in a fiduciary capacity under chapter 356A or under common law, which is founded upon a claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach were not undertaken in good faith, the Public Employees Retirement Association may assert any applicable defense to any claim in any judicial or administrative proceeding that the former Minneapolis Employees Retirement Fund, its former board, or its former administrative staff would otherwise have been entitled to assert, and the Public Employees Retirement Association may assert any applicable defense that it has in its capacity as a statewide agency. new text end
new text begin (a) The annuities and benefits of, or attributable to, retired, disabled, deferred, or inactive Minneapolis Employees Retirement Fund members with that status as of June 30, 2010, with the exception of post-December 31, 2010, postretirement adjustments, which are governed by paragraph (b), as calculated under Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, continue in force after the administrative consolidation under this article. new text end
new text begin (b) After December 31, 2010, annuities and benefits from the MERF division are eligible for annual automatic postretirement adjustments solely under section 356.415. new text end
new text begin (a) After June 30, 2010, the member and employer contributions to the MERF division account are governed by this subdivision. new text end
new text begin (b) An active member covered by the MERF division must make an employee contribution of 9.75 percent of the total salary of the member as defined in section 353.01, subdivision 10. The employee contribution must be made by payroll deduction by the member's employing unit under section 353.27, subdivision 4, and is subject to the provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b. new text end
new text begin (c) The employer regular contribution to the MERF division account with respect to an active MERF division member is 9.75 percent of the total salary of the member as defined in section 353.01, subdivision 10. new text end
new text begin (d) The employer additional contribution to the MERF division account with respect to an active member of the MERF division is 2.68 percent of the total salary of the member as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000 that the employing unit paid or is payable to the former Minneapolis Employees Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2, or 2a, during calendar year 2009, as was certified by the former executive director of the former Minneapolis Employees Retirement Fund. new text end
new text begin (e) Annually after June 30, 2012, the employer supplemental contribution to the MERF division account by the city of Minneapolis, Special School District No. 1, Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity, Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and the Minnesota State Colleges and Universities system is the larger of the following: new text end
new text begin (1) the amount by which the total actuarial required contribution determined under section 356.215 by the approved actuary retained by the Public Employees Retirement Association in the most recent actuarial valuation of the MERF division and based on a June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b), (c), and (d), exceeds $22,750,000 or $24,000,000, whichever applies; or new text end
new text begin (2) the amount of $27,000,000, but the total supplemental contribution amount plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000. Each employing unit's share of the total employer supplemental contribution amount is equal to the applicable portion specified in paragraph (g). The initial total actuarial required contribution after June 30, 2012, must be calculated using the mortality assumption change recommended on September 30, 2009, for the Minneapolis Employees Retirement Fund by the approved consulting actuary retained by the Minneapolis Employees Retirement Fund board. new text end
new text begin (f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of August 1 annually, if the amount of the retirement annuities and benefits paid from the MERF division account during the preceding fiscal year, multiplied by the factor of 1.035, exceeds the market value of the assets of the MERF division account on the preceding June 30, plus state aid of $9,000,000, $22,750,000, or $24,000,000, whichever applies, plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional employer contribution. The special additional employer contribution under this paragraph is payable in addition to any employer contribution required under paragraphs (c), (d), and (e), and is payable on or before the following June 30. The special additional employer contribution under this paragraph must be allocated as specified in paragraph (g). new text end
new text begin (g) The employer supplemental contribution under paragraph (e) or the special additional employer contribution under paragraph (f) must be allocated between the city of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal activity, the Minnesota State Colleges and Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan Airports Commission in proportion to their share of the actuarial accrued liability of the former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the approved actuary retained under section 356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section 356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement. new text end
new text begin (h) The employer contributions under paragraphs (c), (d), and (e) must be paid as provided in section 353.28. new text end
new text begin (i) Contributions under this subdivision are subject to the provisions of section 353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14. new text end
new text begin If authorized by an annuitant or retirement benefit recipient in writing on a form prescribed by the executive director of the Public Employees Retirement Association, the executive director shall deduct the dues for the Minneapolis Municipal Retirement Association from the person's annuity or retirement benefit. This dues deduction authority expires upon the eventual full consolidation of the MERF account under subdivision 9. new text end