Key: (1) language to be deleted (2) new language
An act
relating to retirement; authorizing new categories of investments for the State Board of Investment; excluding new trades employees from Public Employees Retirement Association general plan coverage and grandfathering currently covered members; permitting contributions to multiemployer plans for employees in the building and constructions trades by the city of St. Paul and the St. Paul School District; revising augmentation for certain privatized medical facilities and their employees; amending requirements for reporting by pension funds to the state auditor; making changes of an administrative nature for the Minnesota State Retirement System, the Public Employees Retirement Association, the statewide volunteer firefighter plan, and the Teachers Retirement Association; authorizing the purchase of service credit for a certain Maplewood firefighter; increasing the maximum for lump sum pensions for volunteer firefighter relief associations; revising the allocation of fire state aid; assigning fire state aid to the city of Eagan; providing new procedures for volunteer firefighter relief association dissolution and termination of its retirement plan; providing for the dissolution of the Brooklyn Park Firefighter Relief Association and the termination of the retirement plan; providing for the division of the Ramsey Volunteer Firefighters' Relief Association and the transfer of accounts to a relief association affiliated with the city of Nowthen; authorizing relief associations to convert from a defined benefit plan to a defined contribution plan; implementing the recommendations of the state auditor's volunteer firefighter working group; temporarily extending the grandfather provision regarding actuarial assumptions used to compute an annuity in the Minnesota State Retirement System unclassified plan;
amending Minnesota Statutes 2018, sections 11A.24, subdivisions 1, 6; 352.01, subdivision 26; 352.04, subdivisions 4, 8, by adding a subdivision; 352.113, subdivision 4; 352.95, subdivision 3; 352B.011, subdivisions 6, 10; 352B.10, subdivision 2a; 352D.06, subdivision 1; 353.29, subdivisions 1, 7; 353.30, subdivision 3c; 353.31, subdivision 8; 353.32, subdivision 4; 353.651, subdivision 1; 353.656, subdivisions 1, 3; 353.657, subdivision 1; 353F.02, by adding subdivisions; 353F.04; 353G.01, by adding a subdivision; 353G.05, subdivisions 1, 5, by adding a subdivision; 353G.09, subdivision 3, by adding a subdivision; 353G.11, subdivision 2; 353G.121; 354.05, subdivisions 2, 41; 354.44, subdivisions 4, 6; 354.46, subdivision 2; 354.49, subdivision 2; 354.543, subdivision 3; 356.219, subdivisions 1, 6, 7; 356.24, subdivision 1, by adding a subdivision; 424A.003; 424A.02, subdivision 3; 424A.03, as amended; 424A.092, subdivisions 1, 2; 424B.01, by adding subdivisions; 490.121, subdivision 7c; 490.123, subdivision 5; 490.124, subdivision 1; Minnesota Statutes 2019 Supplement, sections 352.04, subdivision 9; 352.113, subdivision 2; 352.23; 353.01, subdivision 2b; 353.0141, subdivision 1; 353.34, subdivision 3; 353.371, subdivisions 1, 2, by adding a subdivision; 356.219, subdivisions 3, 8; 424A.014, subdivision 1; 424A.016, subdivisions 4, 6; 477B.04, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 356; 424B; 477B; repealing Minnesota Statutes 2018, sections 353.30, subdivision 4; 354.55, subdivision 10; 356.24, subdivision 2; 356.44; 424B.20; 424B.21; Laws 1980, chapter 607, section 13; Laws 2018, chapter 211, article 14, section 29.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
(a) Pursuant to an investment policy adopted by the state board, the state board is authorized to purchase, sell, lend, and exchange the securities specified in this section, for funds or accounts specifically made subject to this section. This authority includes puts and call options, future contracts, and swap contracts marked to market, if these options and contracts are traded on a contract market regulated by a governmental agency or by a financial institution regulated by a governmental agency. These securities may be owned directly or through shares in exchange-traded or mutual funds, or as units in commingled trusts, subject to any limitations as specified in this section.
(b) Any agreement to lend securities must be concurrently collateralized with cash or securities with a market value of not less than 100 percent of the market value of the loaned securities at the time of the agreement. Any agreement for put and call options and futures contracts may only be entered into with a fully offsetting amount of cash or securities. Only securities authorized by this section, excluding those under subdivision 6, paragraph (a), clauses (1) to deleted text begin (3)deleted text end new text begin (5)new text end , may be accepted as collateral or offsetting securities.
new text begin This section is effective the day following final enactment. new text end
(a) In addition to the investments authorized in subdivisions 1 to 5, and subject to the provisions in paragraph (b), the state board is authorized to invest funds in:
(1) equity and debt investment businesses through participation in limited partnerships, trusts, private placements, limited liability corporations, limited liability companies, limited liability partnerships, and corporations;
(2) real estate ownership interests or loans secured by mortgages or deeds of trust or shares of real estate investment trusts through investment in limited partnerships, bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance company commingled accountsdeleted text begin , including separate accountsdeleted text end ;
(3) resource investments through limited partnerships, trusts, private placements, limited liability corporations, limited liability companies, limited liability partnerships, and corporations; deleted text begin anddeleted text end
new text begin (4) investment vehicles that are co-investments or separate accounts; new text end
new text begin (5) liquid alternatives; new text end
new text begin (6) bank loans; and new text end
deleted text begin (4)deleted text end new text begin (7) new text end international securities.
(b) The investments authorized in paragraph (a) must conform to the following deleted text begin provisionsdeleted text end new text begin clausesnew text end :
(1) the aggregate value of all investments made under paragraph (a), clauses (1) to deleted text begin (3)deleted text end new text begin (4)new text end , may not exceed 35 percent of the market value of the fund for which the state board is investing;
(2) there must be at least four unrelated owners of the investment other than the state board for investments made under paragraph (a), clause (1), (2), or (3);
(3) state board participation in an investment vehicle is limited to 20 percent thereof for investments made under paragraph (a), clause (1), (2), or (3); and
(4) state board participation in deleted text begin a limited partnershipdeleted text end new text begin an investment vehicle new text end does not include a general partnership interest or other interest involving general liability. The state board may not deleted text begin engagedeleted text end new text begin participate new text end in any deleted text begin activity as a limited partnerdeleted text end new text begin investment vehicle in a manner new text end which creates general liability.
(c) All financial, business, or proprietary data collected, created, received, or maintained by the state board in connection with investments authorized by paragraph (a), deleted text begin clausedeleted text end new text begin clauses new text end (1)deleted text begin , (2), or (3)deleted text end new text begin to (6)new text end , are nonpublic data under section 13.02, subdivision 9. As used in this paragraph, "financial, business, or proprietary data" means data, as determined by the responsible authority for the state board, that is of a financial, business, or proprietary nature, the release of which could cause competitive harm to the state board, the legal entity in which the state board has invested or has considered an investment, the managing entity of an investment, or a portfolio company in which the legal entity holds an interest. As used in this section, "business data" is data described in section 13.591, subdivision 1. Regardless of whether they could be considered financial, business, or proprietary data, the following data received, prepared, used, or retained by the state board in connection with investments authorized by paragraph (a), deleted text begin clausedeleted text end new text begin clauses new text end (1)deleted text begin , (2), or (3)deleted text end new text begin to (6)new text end , are public at all times:
(1) the name and industry group classification of the legal entity in which the state board has invested or in which the state board has considered an investment;
(2) the state board commitment amount, if any;
(3) the funded amount of the state board's commitment to date, if any;
(4) the market value of the investment by the state board;
(5) the state board's internal rate of return for the investment, including expenditures and receipts used in the calculation of the investment's internal rate of return; and
(6) the age of the investment in years.
new text begin This section is effective the day following final enactment. new text end
(a) The following public employees are not eligible to participate as members of the association with retirement coverage by the general employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire retirement plan:
(1) persons whose annual salary from one governmental subdivision never exceeds an amount, stipulated in writing in advance, of $5,100 if the person is not a school district employee or $3,800 if the person is a school year employee. If annual compensation from one governmental subdivision to an employee exceeds the stipulated amount in a calendar year or a school year, whichever applies, after being stipulated in advance not to exceed the applicable amount, the stipulation is no longer valid and contributions must be made on behalf of the employee under section 353.27, subdivision 12, from the first month in which the employee received salary exceeding $425 in a month;
(2) public officers who are elected to a governing body, city mayors, or persons who are appointed to fill a vacancy in an elected office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elected position;
(3) election judges and persons employed solely to administer elections;
(4) patient and inmate personnel who perform services for a governmental subdivision;
(5) except as otherwise specified in subdivision 12a, employees who are employed solely in a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days of that resignation in the same governmental subdivision;
(6) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster, but if the person becomes a probationary or provisional employee within the same pay period, other than on a temporary basis, the person is a "public employee" retroactively to the beginning of the pay period;
(7) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion 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, and 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 plan on the salary based on the other service or to the Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
(8) persons who are 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, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;
(9) persons who are:
(i) employed by a governmental subdivision who have not reached the age of 23 and who 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 at a public or charter high school;
(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist interns and are serving in a degree or residency program in a public hospital or in a public clinic; or
(iii) students who are serving for a period not to exceed five years in an internship or a residency program that is sponsored by a governmental subdivision, including an accredited educational institution;
(10) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;
(11) for the first three years of employment, foreign citizens who are employed by a governmental subdivision, except that the following foreign citizens are included employees under subdivision 2a:
(i) employees of Hennepin County or Hennepin Healthcare System, Inc.;
(ii) employees legally authorized to work in the United States for three years or more; and
(iii) employees otherwise required to participate under federal law;
(12) 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;
(13) 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 general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;
(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, but 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 general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;
(15) new text begin employees in the building and construction trades, as follows:new text end
new text begin (i) 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 (16)deleted text end new text begin (ii) new text end electrical workers, plumbers, carpenters, and associated trades personnel deleted text begin who aredeleted text end employed by Independent School District No. 625, St. Paul, or the city of St. Paul, deleted text begin who have retirementdeleted text end new text begin with new text end coverage under a collective bargaining agreement by the electrical workers local 110 pension plan, the deleted text begin United Associationdeleted text end plumbers local 34 pension plan, or the deleted text begin pension plan applicable todeleted text end carpenters local 322 new text begin pension plan new 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 (17)deleted text end new text begin (iii) new text end bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers deleted text begin who aredeleted 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 deleted text begin l-1324deleted text end new text begin 1324 new text end pension plan, the painters and allied trades local 61 pension plan, or the deleted text begin twin citiesdeleted text end 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 (18)deleted text end new text begin (iv) new text end plumbers deleted text begin who aredeleted text end employed by the Metropolitan Airports Commission, with coverage under a collective bargaining agreement by the plumbers local 34 pension plan, who new text begin were new text end either deleted text begin weredeleted text end 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;
new text begin (v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation Board, with coverage under a collective bargaining agreement by the electrical workers local 292 pension plan or the pipefitters local 539 pension plan, who were first employed before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11, section 5; new text end
new text begin (vi) laborers and associated trades personnel employed by the city of St. Paul or Independent School District No. 625, St. Paul, who are designated as temporary employees with coverage under a collective bargaining agreement by a multiemployer plan as defined in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018, or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter 211, article 16, section 13; and new text end
new text begin (vii) employees who are trades employees as defined in section 356.27, subdivision 1, first hired on or after July 1, 2020, by the city of St. Paul or Independent School District No. 625, St. Paul, except for any trades employee for whom contributions are made under section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer plan as defined in section 356.27, subdivision 1; new text end
deleted text begin (19)deleted text end new text begin (16) new text end employees who are hired after June 30, 2002, solely 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 (20)deleted text end new text begin (17) 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 up to five years, 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 (21)deleted text end new text begin (18) new text end independent contractors and the employees of independent contractors;
deleted text begin (22)deleted text end new text begin (19) new text end reemployed annuitants of the association during the course of that reemployment;
deleted text begin (23)deleted text end new text begin (20) new text end persons appointed to serve on a board or commission of a governmental subdivision or an instrumentality thereof;new text begin andnew text end
deleted text begin (24)deleted text end new text begin (21) new text end persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 and who are, by virtue of that employment, members of the International Brotherhood of Teamsters Central States pension plandeleted text begin ;deleted text end new text begin .new text end
deleted text begin (25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board, with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters local 539 pension plan, who were first employed before May 2, 2015, and who elected to be excluded under Laws 2015, chapter 68, article 11, section 5; and deleted text end
deleted text begin (26) laborers and associated trades personnel employed by the city of St. Paul or Independent School District No. 625, St. Paul, who are designated as temporary employees under a collective bargaining agreement and have retirement coverage by the Minnesota Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211, article 16, section 13. deleted text end
(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 begin This section is effective the day following final enactment. new text end
new text begin (a) For purposes of this section, the terms defined in this subdivision have the meanings given them. new text end
new text begin (b) "Building and construction trades" means categories of employees who perform building construction, maintenance, or inspection services, including: new text end
new text begin (1) bricklayers; new text end
new text begin (2) carpenters; new text end
new text begin (3) cement masons; new text end
new text begin (4) electricians; new text end
new text begin (5) elevator constructors; new text end
new text begin (6) glaziers; new text end
new text begin (7) laborers; new text end
new text begin (8) operating engineers; new text end
new text begin (9) painters; new text end
new text begin (10) pipefitters; new text end
new text begin (11) plasterers; new text end
new text begin (12) plumbers; new text end
new text begin (13) roofers; new text end
new text begin (14) sheet metal workers; and new text end
new text begin (15) sprinkler fitters. new text end
new text begin Building and construction trades does not include machinists or teamsters. new text end
new text begin (c) "Employers" means the city of St. Paul and Independent School District No. 625, St. Paul. new text end
new text begin (d) "Grandfathered trades employees" means trades employees on whose behalf an employer made contributions on or before June 30, 2020, to PERA and to one or more multiemployer plans other than as provided in section 356.24, subdivision 1, clause (8), (9), or (10). new text end
new text begin (e) "Multiemployer plan" means a plan or fund subject to the federal Employee Retirement Income Security Act of 1974, as amended, to which more than one employer is required to contribute and that is maintained pursuant to one or more collective bargaining agreements between one or more labor organizations and more than one employer. For purposes of this section, a multiemployer plan may be: (1) either a defined benefit pension plan or a defined contribution retirement plan; and (2) either a plan that covers employees in one or more local units in the state of Minnesota or a plan that covers union employees nationwide. new text end
new text begin (f) "PERA" means the Public Employees Retirement Association general plan established under chapter 353. new text end
new text begin (g) "Trades employees" means employees principally employed in one of the building and construction trades. new text end
new text begin The employers are authorized to negotiate, with labor organizations representing trades employees, collective bargaining agreements that provide for contributions to multiemployer plans on the basis of hours worked or paid. Any provision must identify each multiemployer plan to which contributions are to be made and, beginning with any such collective bargaining agreement or renewal thereof entered into after June 30, 2020, must include the employer identification number and plan number unique to the plan. new text end
new text begin (a) In connection with services performed for an employer under a collective bargaining agreement authorized by subdivision 2, a trades employee first hired by the employer on or after July 1, 2020, shall not participate in PERA, except for a trades employee whose employer makes contributions on behalf of the trades employee to PERA and to one or more multiemployer plans as provided in section 356.24, subdivision 1, clause (8), (9), or (10). new text end
new text begin (b) Grandfathered trades employees shall continue to participate in PERA according to chapter 353 and in one or more multiemployer plans pursuant to a collective bargaining agreement authorized by subdivision 2. Participation shall not be subject to section 356.24. new text end
new text begin (a) If an employer negotiates a collective bargaining agreement authorized by subdivision 2 that covers grandfathered trades employees, the employer shall annually submit a report that satisfies the requirements of paragraph (b) to the executive director of the Legislative Commission on Pensions and Retirement annually, no later than 60 days after the end of the employer's fiscal year. new text end
new text begin (b) The report shall provide for each labor organization the number of grandfathered trades employees for whom the employer made contributions during the prior fiscal year. new text end
new text begin (c) After receiving a report from an employer, the executive director of the Legislative Commission on Pensions and Retirement may request additional information that the employer shall promptly provide. new text end
new text begin (d) The reporting obligation expires upon submission of a report for the last fiscal year in which the employer makes a contribution to PERA with respect to a grandfathered trades employee. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Minnesota Statutes 2018, section 356.24, subdivision 2, 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
new text begin "Executive director" means the executive director of the Public Employees Retirement Association. new text end
new text begin This section is effective July 1, 2020. new text end
new text begin "Medical facility" means a facility that has the primary purpose of providing medical care and that satisfies the definition of governmental subdivision under section 353.01, subdivision 6. new text end
new text begin This section is effective July 1, 2020. new text end
new text begin "Privatization" means a medical facility that privatizes when the facility ceases to be a governmental subdivision for any reason other than that the medical facility closes or permanently ceases to operate. new text end
new text begin This section is effective July 1, 2020. new text end
(a) The deferred annuity of a privatized former public employee is subject to augmentation under section deleted text begin 353.71, subdivision 2, of the edition of Minnesota Statutes published in the year in which the privatization occurreddeleted text end new text begin 353.34, subdivision 3new text end , except that the rate of augmentation is as specified in this deleted text begin subdivisiondeleted text end new text begin sectionnew text end .
(b) This paragraph applies if the effective date of privatization was on or before January 1, 2007, and also applies to Hutchinson Area Health Care with a privatization effective date of January 1, 2008. For a privatized former public employee, the augmentation rate is 5.5 percent compounded annually until January 1 following the year in which the person attains age 55. deleted text begin Fromdeleted text end new text begin After new text end that date deleted text begin to the effective date of retirementdeleted text end , the augmentation rate is 7.5 percent compounded annually.
(c) If paragraph (b) is not applicable, and if the effective date of the privatization is new text begin after January 1, 2007, and new text end before January 1, 2011, new text begin then new text end the augmentation rate is four percent compounded annually until January 1, following the year in which the person attains age 55. deleted text begin Fromdeleted text end new text begin After new text end that date deleted text begin to the effective date of retirementdeleted text end , the augmentation rate is six percent compounded annually.
(d) If the effective date of the privatization is after December 31, 2010, the deleted text begin applicabledeleted text end augmentation rate depends on the result of computations specified in section 353F.025, subdivision 1. If those computations indicate no loss or a net gain to the fund of the general employees retirement plan of the Public Employees Retirement Association, the augmentation rate is two percent compounded annually deleted text begin until the effective date of retirementdeleted text end . If the computations under that subdivision indicate a net loss to the fund if a two percent augmentation rate is used, but a net gain or no loss if a one percent rate is used, then the augmentation rate is one percent compounded annually deleted text begin until the effective date of retirementdeleted text end .
new text begin (e) Notwithstanding paragraphs (b) to (d), after June 30, 2020, and before January 1, 2024, the augmentation rate for all privatized former public employees under paragraphs (b) to (d) is two percent compounded annually. After December 31, 2023, no additional augmentation is applied to the privatized former public employee's deferred annuity. new text end
The deleted text begin increaseddeleted text end augmentation rates specified in subdivision 1 do not apply to a privatized former public employee:
(1) beginning the first of the month in which the privatized former public employee becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3, if the employee accrues at least six months of credited service in any single plan enumerated in section 356.30, subdivision 3, except clause (6);
(2) beginning the first of the month in which the privatized former public employee becomes covered again by the general employees retirement plan of the Public Employees Retirement Association;
(3) beginning the first of the month after a privatized former public employee terminates service with the privatized former public employer; deleted text begin ordeleted text end
(4) if the deleted text begin persondeleted text end new text begin privatized former public employee new text end begins receipt of a retirement annuity while employed by the deleted text begin employer which assumed operations of or purchased thedeleted text end privatized former public employerdeleted text begin .deleted text end new text begin ; ornew text end
new text begin (5) if the effective date of privatization occurs after June 30, 2020. new text end
new text begin This section is effective July 1, 2020. new text end
(a) The deleted text begin State Board of Investment, on behalf of the public pension funds and programs for which it is the investment authority, and any Minnesota public pension plan that is not fully invested through the State Board of Investment, including thedeleted text end Bloomington Fire Department Relief Association deleted text begin and a localdeleted text end new text begin ,new text end volunteer firefighters relief deleted text begin associationdeleted text end new text begin associations new text end governed by sections 424A.091 to 424A.095, deleted text begin shalldeleted text end new text begin the St. Paul Teachers Retirement Fund Association, and any Minnesota public pension plan that is not fully invested through the State Board of Investment, must new text end report the information specified in subdivision 3 to the state auditor. The state auditor may prescribe a form or forms for the purposes of the reporting requirements contained in this section.
deleted text begin (b) The Bloomington Fire Department Relief Association and a local volunteer firefighters relief association governed by sections 424A.091 to 424A.095 is fully invested during a given calendar year for purposes of this section if all assets of the applicable pension plan beyond sufficient cash equivalent investments to cover six months expected expenses are invested under section 11A.17. The board of any fully invested public pension plan remains responsible for submitting investment policy statements and subsequent revisions as required by subdivision 3, paragraph (a). deleted text end
deleted text begin (c) For purposes of this section, the State Board of Investment is considered to be the investment authority for any Minnesota public pension fund required to be invested by the State Board of Investment under section 11A.23, or for any Minnesota public pension fund authorized to invest in the supplemental investment fund under section 11A.17 and which is fully invested by the State Board of Investment. deleted text end
new text begin (b) For purposes of this section, a pension plan is fully invested through the State Board of Investment during a given calendar year if all assets of the pension plan beyond sufficient cash equivalent investments to cover six months of expected expenses are invested under section 11A.17. new text end
new text begin (c) A public pension plan to which subdivision 3, paragraph (b) or (c), applies is not required to file the report required by this subdivision for a given calendar year if the pension plan's most recent annual financial audit was conducted by the state auditor. new text end
(d) This section does not apply to the following plans:
(1) the Minnesota unclassified employees retirement program under chapter 352D;
(2) the public employees defined contribution plan under chapter 353D;
(3) the individual retirement account plans under chapters 354B and 354D;
(4) the higher education supplemental retirement plan under chapter 354C;
(5) any alternative retirement benefit plan established under section 383B.914; deleted text begin anddeleted text end
(6) the University of Minnesota faculty retirement plandeleted text begin .deleted text end new text begin and supplemental plan; andnew text end
new text begin (7) any other statewide plan required to be invested by the State Board of Investment under section 11A.23. new text end
new text begin This section is effective the day following final enactment. new text end
(a) The report required by subdivision 1 must include a written statement of the investment policy. Following that initial report, subsequent reports must include investment policy changes and the effective date of each policy change rather than a complete statement of investment policy, unless the state auditor requests submission of a complete current statement. The report must also include the information required by the following paragraphs, as applicable.
(b) deleted text begin If, after four years of reporting under this paragraph, the total portfolio time weighted rate of return, net of all investment related costs and fees, provided by the public pension plan differs by no more than 0.1 percent from the comparable return for the plan calculated by the Office of the State Auditor, and if a public pension plan has a total market value of $50,000,000 or more as of the beginning of the calendar year, and if the public pension plan's annual audit is performed by the state auditor or by the legislative auditor,deleted text end new text begin For public pension plans not fully invested through the State Board of Investment with assets having a market value of $50,000,000 or more as of the beginning of the calendar year, or that had a market value of $50,000,000 or more in a prior calendar year, new text end the report required by subdivision 1 must include deleted text begin the market value of the total portfolio and the market value of each asset class included in the pension fund as of the beginning of the calendar year and as of the end of the calendar year. At the discretion of the state auditor, the public pension plan may be required to submitdeleted text end new text begin the following:new text end
new text begin (1)new text end the market value of the total portfolio and the market value of each investment account, investment portfolio, or asset class included in the pension fund for each monthdeleted text begin , anddeleted text end new text begin ;new text end
new text begin (2)new text end the amount and date of each injection and withdrawal to the total portfolio and to each investment account, investment portfolio, or asset classdeleted text begin . If the market value of a public pension plan's fund drops below $50,000,000 in a subsequent year, it must continue reporting under this paragraph for any subsequent year in which the public pension plan is not fully invested as specified in subdivision 1, paragraph (b), except that if the public pension plan's annual audit is not performed by the state auditor or legislative auditor, paragraph (c) applies.deleted text end new text begin ;new text end
deleted text begin (c) If paragraph (b) would apply if the annual audit were provided by the state auditor or legislative auditor, the report required by subdivision 1 must include the market value of the total portfolio and the market value of each asset class included in the pension fund as of the beginning of the calendar year and for each month, and the amount and date of each injection and withdrawal to the total portfolio and to each investment account, investment portfolio, or asset class. deleted text end
deleted text begin (d) For public pension plans to which paragraph (b) or (c) applies, the report required by subdivision 1 must also includedeleted text end new text begin (3) new text end a calculation of the total time-weighted rate of return available from index-matching investmentsnew text begin ,new text end assuming the asset class performance targets and target asset mix indicated in the written statement of investment policydeleted text begin . The provided information must includedeleted text end new text begin ;new text end
new text begin (4)new text end a description of indices used in the analyses and an explanation of why those indices are appropriatedeleted text begin . This paragraph does not apply to any fully invested plan, as defined by subdivision 1, paragraph (b). Reporting by the State Board of Investment under this paragraph is limited to information on the Minnesota public pension plans required to be invested by the State Board of Investment under section 11A.23.deleted text end new text begin ;new text end
new text begin (5) computed time-weighted rates of return; and new text end
new text begin (6) any other information required by the state auditor. new text end
new text begin (c) For public pension plans fully invested through the State Board of Investment with assets having a market value of $50,000,000 or more as of the beginning of the calendar year, or that had a market value of $50,000,000 or more in a prior calendar year, the report required by subdivision 1 must be in the form required by the state auditor and include the information needed by the state auditor to supplement the reporting available from the State Board of Investment. new text end
deleted text begin (e)deleted text end new text begin (d)new text end If a public pension plan has new text begin assets with new text end a total market value of less than $50,000,000 as of the beginning of the calendar year and was never required to file under paragraph (b) or (c), the report required by subdivision 1 must include thenew text begin following:new text end
new text begin (1) unless paragraph (f) applies, thenew text end amount and date of each total portfolio injection and withdrawaldeleted text begin . In addition, the report must includedeleted text end new text begin ; andnew text end
new text begin (2)new text end the market value of the total portfolio as of the beginning of the calendar year and for each quarter.
deleted text begin (f) Any public pension plan reporting under paragraph (b) or (c) must include computed time-weighted rates of return with the report, in addition to all other required information, as applicable. The chief administrative officer of the public pension plan submitting the returns must certify, on a form prescribed by the state auditor, that the returns have been computed by the pension plan's investment performance consultant or custodial bank. The chief administrative officer of the public pension plan submitting the returns also must certify that the returns are net of all costs and fees, including investment management fees, and that the procedures used to compute the returns are consistent with Bank Administration Institute studies of investment performance measurement and presentation standards set by the CFA Institute. If the certifications required under this paragraph are not provided, the reporting requirements of paragraph (c) apply. deleted text end
deleted text begin (g)deleted text end new text begin (e) new text end For public pension plans reporting under paragraph deleted text begin (e)deleted text end new text begin (d)new text end , the public pension plan must retain supporting information specifying the date and amount of each injection and withdrawal to each investment account and investment portfolio. The public pension plan must also retain the market value of each investment account and investment portfolio at the beginning of the calendar year and for each quarter. Information that is required to be collected and retained for any given year or years under this paragraph must be submitted to the deleted text begin Office of thedeleted text end state auditor if the deleted text begin Office of thedeleted text end state auditor requests in writing that the information be submitted by deleted text begin adeleted text end new text begin the new text end public pension plan deleted text begin or plans, or be submitted by the State Board of Investment for any plan or plans for which the State Board of Investment is the investment authority under this sectiondeleted text end . If the state auditor requests information under this subdivision, and the deleted text begin publicdeleted text end new text begin pension new text end plan fails to comply, the pension plan is subject to penalties under subdivision 5, unless penalties are waived by the state auditor under that subdivision.
new text begin (f) A public pension plan reporting under paragraph (d) that is fully invested through the State Board of Investment for the given calendar year is required to report the market value of the total portfolio as of the beginning of the calendar year and for each quarter, but need not report the amount and date of each total portfolio injection and withdrawal. new text end
new text begin This section is effective the day following final enactment. new text end
(a) The state auditor shall prepare an annual report to the legislature on the investment performance of the deleted text begin variousdeleted text end public pension plans subject to this section. The content of the report is specified in paragraphs (b) to deleted text begin (f)deleted text end new text begin (d)new text end .
(b) For each public pension plan reporting under subdivision 3, paragraph (b), the state auditor shall new text begin compute and new text end report total portfolio and asset class time-weighted rates of return, net of all investment-related costs and fees. deleted text begin If the state auditor has required a plan to submit the market value of the total portfolio and the market value of each investment account, investment portfolio, or asset class included in the pension fund for each month, and the amount and date of each injection and withdrawal to the total portfolio and to each investment account, investment portfolio, or asset class as prescribed under subdivision 3, paragraph (b), the state auditor shall also compute and report total portfolio and asset class time-weighted rates of return, net of all costs and fees.deleted text end new text begin The report by the state auditor must also include the information submitted by the pension plans under subdivision 3 or a summary of that information.new text end
deleted text begin (c) For each public pension plan reporting under subdivision 3, paragraph (c), the state auditor shall compute and report total portfolio and asset class time-weighted rates of return, net of all costs and fees. deleted text end
deleted text begin (d)deleted text end new text begin (c)new text end For each public pension plan reporting under subdivision 3, paragraph deleted text begin (e)deleted text end new text begin (d)new text end , the state auditor shall compute and report total portfolio time-weighted rates of return, net of all costs and fees. deleted text begin If the state auditor has requested data for a plan under subdivision 3, paragraph (g), the state auditor may also compute and report asset class time-weighted rates of return, net of all costs and fees.deleted text end
deleted text begin (e) The report by the state auditor must include the information submitted by the pension plans under subdivision 3, paragraph (d), or a synopsis of that information. deleted text end
deleted text begin (f)deleted text end new text begin (d) new text end The report by the state auditor may also include a presentation of multiyear performancedeleted text begin , information collected under subdivision 4,deleted text end and any other information or analysis deemed appropriate by the state auditor.
new text begin This section is effective the day following final enactment. new text end
All administrative expenses incurred relating to the investment report by the state auditor described in subdivision 6 must be borne by the deleted text begin Office of thedeleted text end state auditor and may not be charged back to the entities described in subdivisions 1 or 4.
new text begin This section is effective the day following final enactment. new text end
(a) For the Bloomington Fire Department Relief Association and the volunteer deleted text begin firefighterdeleted text end new text begin firefighters new text end relief associations, the information required under this section must be submitted by the due date for reports required under section 424A.014, subdivision 1 or 2, as applicable. deleted text begin If a relief association satisfies the definition of a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered by the report required under section 424A.014, subdivision 1 or 2, as applicable, the chief administrative officer of the covered pension plan shall certify that compliance on a form prescribed by the state auditor. The state auditor shall transmit annually to the State Board of Investment a list or lists of covered pension plans which submitted certifications in order to facilitate reporting by the State Board of Investment under paragraph (c).deleted text end
(b) For the St. Paul Teachers Retirement Fund Association deleted text begin and the University of Minnesota faculty supplemental retirement plandeleted text end , the information required under this section must be submitted to the state auditor by June 1 of each year.
(c) deleted text begin The State Board of Investment, on behalf ofdeleted text end new text begin Any public new text end pension deleted text begin funds specified in subdivision 1,deleted text end new text begin plan required to submit information under this section that is not identified in new text end paragraph deleted text begin (c), shall reportdeleted text end new text begin (a) or (b) must submit the new text end information deleted text begin required under this sectiondeleted text end new text begin to the state auditor new text end by deleted text begin Septemberdeleted text end new text begin June new text end 1 of each year.
new text begin This section is effective the day following final enactment. new text end
"Dependent child" means new text begin an individual who is new text end a biological or adopted child of a deceased employee deleted text begin whodeleted text end new text begin ,new text end has not reached the age of 20new text begin ,new text end and is dependent upon the employee for more than one-half of the child's support at the time of the employee's death. It also means a child of the member conceived during the member's lifetime and born after the member's deathnew text begin , unless a parent-child relationship does not exist under section 524.2-120, subdivision 10new text end .
deleted text begin The head ofdeleted text end Each deleted text begin departmentdeleted text end new text begin employing entity new text end shall have employee contributions deducted from the salary of each employee covered by the system on every payroll abstract and shall approve one voucher payable to the commissioner of management and budget for the aggregate amount deducted on the payroll abstract. Deductions from salaries of employees paid deleted text begin directdeleted text end new text begin directly new text end by any deleted text begin department, institution, or agency of the statedeleted text end new text begin employing entity new text end must be made by the officer or employee authorized by law to pay the salaries. deleted text begin The head of any department or agencydeleted text end new text begin Any employing entity new text end having authority to appoint any employee who receives fees as compensation or who receives compensation on federal payrolls shall collect as the required employee contribution the applicable amounts required in subdivision 2. Deductions from salary and amounts collected must be remitted to the director with a statement showing the amount of earnings or fees, and in the case of fees, the number of transactions, deleted text begin anddeleted text end the amount of each of the deductions and collectionsnew text begin ,new text end and the names of the employees on whose account they have been made.
(a) If deleted text begin a departmentdeleted text end new text begin an employing entity new text end fails to take deductions past due for a period of 60 days or less from an employee's salary as provided in this section, those deductions must be taken on later payroll abstracts.
(b) If deleted text begin a departmentdeleted text end new text begin an employing entitynew text end fails to take deductions past due for a period in excess of 60 days from an employee's salary as provided in this section, the deleted text begin departmentdeleted text end new text begin employing entitynew text end , and not the employee, must pay on later payroll abstracts the employee and employer contributions and interest at the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date the employee and employer contributions should have been deducted to the date payment of the total amount due is paid by the deleted text begin departmentdeleted text end new text begin employing entitynew text end .
(c) If deleted text begin a departmentdeleted text end new text begin an employing entitynew text end fails to take deductions past due for a period of 60 days or less and the employee is no longer in state service so that the required deductions cannot be taken from the salary of the employee, the deleted text begin departmentdeleted text end new text begin employing entity new text end must nevertheless pay the required employer contributions. If any deleted text begin departmentdeleted text end new text begin employing entity new text end fails to take deductions past due for a period in excess of 60 days and the employee is no longer in state service, the omitted contributions must be recovered under paragraph (b).
(d) If an employee from whose salary required deductions were past due for a period of 60 days or less leaves state service before the payment of the omitted deductions and subsequently returns to state service, the unpaid amount is considered the equivalent of a refund. The employee accrues no right by reason of the unpaid amount, except that the employee may pay the amount of omitted deductions as provided in section 352.23.
(a) Deductions taken from the salary of an employee for the retirement fund in excess of required amounts must, upon discovery and verification by the deleted text begin departmentdeleted text end new text begin employing entitynew text end making the deduction, be refunded to the employee.new text begin Employer contributions made in excess of required amounts must be refunded or credited to the employing entity that made the contribution.new text end
(b) If a deduction for the retirement fund is taken from a salary payment, and the payment is canceled or the amount of the payment returned to the funds of the deleted text begin departmentdeleted text end new text begin employing entitynew text end making the payment, the sum deducted, or the part of it required to adjust the deductions, must be refunded new text begin or credited new text end to the deleted text begin department or institutiondeleted text end new text begin employing entity new text end if the deleted text begin departmentdeleted text end new text begin employing entity new text end applies for the refund on a form furnished by the director.deleted text begin The department's payments must likewise be refunded to the department.deleted text end
(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 applicable monthly rate or rates specified in section 356.59, subdivision 2, 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 begin In this section, "employing entity" means the entity that pays a state employee's salary and remits retirement contributions. new text end
(a) An employee making claim for a total and permanent disability benefit, or someone acting on behalf of the employee upon proof of authority satisfactory to the director, shall file a written application for benefits in deleted text begin thedeleted text end new text begin annew text end office of the system deleted text begin on or before the deadline specified in subdivision 4, paragraph (g)deleted text end new text begin or with a person authorized by the directornew text end .
(b) The application must be in a form and manner prescribed by the deleted text begin executivedeleted text end directordeleted text begin and include the medical reports required by subdivision 4, paragraph (b)deleted text end .new text begin The completed application form and supporting documents must be received in an office of the system or by an authorized person before the expiration of the period specified in subdivision 4, paragraph (g). In this paragraph, "supporting documents" means:new text end
new text begin (1) two medical reports as required by subdivision 4, paragraph (b); and new text end
new text begin (2) a written certification by the employing entity as required by subdivision 4, paragraph (e). new text end
new text begin Supporting documents are not required to be original documents except as determined by the director. new text end
(c) The benefit shall begin to accrue the day following the start of disability or the day following the last day paid, whichever is later, but not earlier than 180 days before the date the application deleted text begin isdeleted text end new text begin and supporting documents are new text end filed in an office of the systemnew text begin or with an authorized personnew text end .
(a) Any physician, psychologist, chiropractor, physician assistant,new text begin podiatrist,new text end or nurse practitioner providing any service specified in this section must be licensed.
(b) An applicant shall provide a detailed report signed by a physician, and at least one additional report signed by a physician, psychologist, chiropractor, physician assistant,new text begin podiatrist,new text end or nurse practitioner with evidence to support an application for total and permanent disability. The reports must include an expert opinion regarding whether the employee is permanently and totally disabled within the meaning of section 352.01, subdivision 17, and that the disability arose before the employee was placed on any paid or unpaid leave of absence or terminated public service.
(c) If there is medical evidence that supports the expectation that at some point the person applying for the disability benefit will no longer be disabled, the decision granting the disability benefit may provide for a termination date upon which the total and permanent disability can be expected to no longer exist. When a termination date is part of the decision granting benefits, prior to the benefit termination the executive director shall review any evidence provided by the disabled employee to show that the disabling condition for which benefits were initially granted continues. If the benefits cease, the disabled employee may follow the appeal procedures described in section 356.96 or may reapply for disability benefits using the process described in this subdivision.
(d) Any claim to disability must be supported by a report from the employer indicating that there is no available work that the employee can perform with the disabling condition and that all reasonable accommodations have been considered. Upon request of the executive director, an employer shall provide evidence of the steps the employer has taken to attempt to provide reasonable accommodations and continued employment to the claimant.
(e) The director shall also obtain written certification from the employer stating whether the employment has ceased or whether the employee is on sick leave of absence because of a disability that will prevent further service to the employer and that the employee is not entitled to compensation from the employer.
(f) The medical adviser shall consider the reports of the physician, psychologist, chiropractor, physician assistant,new text begin podiatrist,new text end or nurse practitioner and any other evidence supplied by the employee or other interested parties. If the medical adviser finds the employee totally and permanently disabled, the adviser shall make appropriate recommendation to the director in writing together with the date from which the employee has been totally disabled. The director shall then determine if the disability occurred while still in the employment of the state and constitutes a total and permanent disability as defined in section 352.01, subdivision 17.
(g) A terminated employee may apply for a disability benefit within 18 months of termination as long as the disability occurred while in the employment of the state. The fact that an employee is placed on leave of absence without compensation because of disability does not bar that employee from receiving a disability benefit.
(h) Upon appeal, the board of directors may extend the disability benefit application deadline in paragraph (g) by an additional 18 months if the terminated employee is determined by the board of directors to have a cognitive impairment that made it unlikely that the terminated employee understood that there was an application deadline or that the terminated employee was able to meet the application deadline.
(i) Unless the payment of a disability benefit has terminated because the employee is no longer totally disabled, or because the employee has reached normal retirement age as provided in this section, the disability benefit must cease with the last payment received by the disabled employee or which had accrued during the lifetime of the employee unless there is a spouse surviving. In that event, the surviving spouse is entitled to the disability benefit for the calendar month in which the disabled employee died.
(a) When any employee accepts a refund as provided in section 352.22, all existing allowable service credits and all rights and benefits to which the employee was entitled before accepting the refund terminate.
(b) Terminated service credits and rights must not again be restored until the former employee acquires at least six months of allowable service credit after taking the last refund and repays all refunds previously taken from the retirement fund with interest as provided in paragraph (d). deleted text begin If an employee repays only part of a refund or repays a refund in partial payments as permitted under paragraph (d), service credit will be restored in accordance with section 356.44.deleted text end An employee will not be considered as entitled to any other benefit, including benefits for which the employee may be eligible because of the employee's original hire date into public employment, until full repayment of all refunds has been made.
(c) Repayment of refunds entitles the employee only to credit for service covered by (1) salary deductions; (2) payments previously made in lieu of salary deductions as permitted under law in effect when the payment in lieu of deductions was made; (3) payments made to obtain credit for service as permitted by laws in effect when payment was made; and (4) allowable service previously credited while receiving temporary workers' compensation as provided in section 352.01, subdivision 11, paragraph (a), clause (3).
(d) Payments under this section for repayment of refunds are to be paid with interest at the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date the refund was taken until the date the refund is repaid. Repayment may be made deleted text begin in partial payments consistent with section 356.44 during employment ordeleted text end in a lump sum new text begin during employment or new text end up to six months after termination from service.
No application for disability benefits may be made until after the last day physically on the job. The disability benefit begins to accrue the day following the last day for which the employee is paid sick leave or annual leave, but not earlier than 180 days before the date the application is filed. A terminated employee must file a written application deleted text begin within the time frame specified under section 352.113, subdivision 4, paragraph (g)deleted text end new text begin in an office of the system or with a person authorized by the executive director. Applications must comply with section 352.113, subdivision 2, paragraph (b)new text end .
"Dependent child" means new text begin an individual who is new text end a natural or adopted unmarried child of a deceased member new text begin and is new text end under the age of 18 years, including any child of the member conceived during the lifetime of the member and born after the death of the membernew text begin unless a parent-child relationship does not exist under section 524-2.120, subdivision 10new text end .
"Member" means:
(1) a State Patrol member currently employed under section 299D.03 by the state, who is a peace officer under section 626.84, and whose salary or compensation is paid out of state funds;
(2) a conservation officer employed under section 97A.201, currently employed by the state, whose salary or compensation is paid out of state funds;
(3) a crime bureau officer who was employed by the crime bureau and was a member of the Highway Patrolmen's retirement fund on July 1, 1978, whether or not that person has the power of arrest by warrant after that date, or who is employed as police personnel, with powers of arrest by warrant under Minnesota Statutes 2009, section 299C.04, and who is currently employed by the state, and whose salary or compensation is paid out of state funds;
deleted text begin (4) a person who is employed by the state in the Department of Public Safety in a data processing management position with salary or compensation paid from state funds, who was a crime bureau officer covered by the State Patrol retirement plan on August 15, 1987, and who was initially hired in the data processing management position within the department during September 1987, or January 1988, with membership continuing for the duration of the person's employment in that position, whether or not the person has the power of arrest by warrant after August 15, 1987; deleted text end
deleted text begin (5)deleted text end new text begin (4) new text end a public safety employee who is a peace officer under section 626.84, subdivision 1, paragraph (c), and who is employed by the Division of Alcohol and Gambling Enforcement under section 299L.01;
deleted text begin (6)deleted text end new text begin (5) new text end a Fugitive Apprehension Unit officer after October 31, 2000, who is employed by the Office of Special Investigations of the Department of Corrections and who is a peace officer under section 626.84;
deleted text begin (7)deleted text end new text begin (6) new text end an employee of the Department of Commerce defined as a peace officer in section 626.84, subdivision 1, paragraph (c), who is employed by the Commerce Fraud Bureau under section 45.0135 after January 1, 2005, and who has not attained the mandatory retirement age specified in section 43A.34, subdivision 4; and
deleted text begin (8)deleted text end new text begin (7) new text end an employee of the Department of Public Safety, who is a licensed peace officer under section 626.84, subdivision 1, paragraph (c), and is employed as the statewide coordinator of the Violent Crime Coordinating Council.
No application for disability benefits shall be made until after the last day physically on the job. The disability benefit begins to accrue the day following the last day for which the employee is paid sick leave or annual leave but not earlier than 180 days before the date the application is filed. A member who is terminated must file a written application deleted text begin within the time frame specified under section 352.113, subdivision 4, paragraph (g)deleted text end new text begin in an office of the system or with a person authorized by the executive director. Applications must comply with section 352.113, subdivision 2, paragraph (b)new text end .
It is unlawful for a school district or other governmental subdivision or state agency to levy taxes for or to contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees other than:
(1) to a supplemental pension plan that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
(3) to the individual retirement account plan established by chapter 354B;
(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or terminating employee;
deleted text begin (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: deleted text end
deleted text begin (i) to the state of Minnesota deferred compensation plan under section 352.965; deleted text end
deleted text begin (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 deleted text end
deleted text begin (iii) any other deferred compensation plan offered by the employer under section 457 of the Internal Revenue Code; deleted text end
new text begin (5) to a deferred compensation plan defined in subdivision 3; new text end
(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 $7,000 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;
deleted text begin (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; deleted text end
deleted text begin (12)deleted text end new text begin (11) new text end 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;
deleted text begin (13)deleted text end new text begin (12) new text end 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 (14)deleted text end new text begin (13) new text end to the alternative retirement plans established by the Hennepin County Medical Center under section 383B.914, subdivision 5; or
deleted text begin (15)deleted text end new text begin (14) new text end to the International Brotherhood of Teamsters Central States pension plan for fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 by virtue of that employment.
new text begin (a) As used in this section, a "deferred compensation plan" means a plan that satisfies the requirements in this subdivision. new text end
new text begin (b) The plan is: new text end
new text begin (1) the Minnesota deferred compensation plan under section 352.965; new text end
new text begin (2) a tax-sheltered annuity program under section 403(b) of the federal Internal Revenue Code; or new text end
new text begin (3) a deferred compensation plan under section 457(b) of the federal Internal Revenue Code. new text end
new text begin (c) The plan administrator or custodian discloses at least annually to participants (1) all fees, including administrative, maintenance, and investment fees, that impact the rate of return on each investment fund available under the plan, and (2) for each investment fund, the rates of return for the prior one-, three-, five-, and ten-year periods or for the life of the fund, if shorter, in an easily understandable document. The plan administrator or custodian must file a copy of this document with the executive director of the Legislative Commission on Pensions and Retirement within 30 days of the end of each fiscal year of the plan. new text end
new text begin (d) Enrollment in the plan is provided for in: new text end
new text begin (1) a personnel policy of the public employer; new text end
new text begin (2) a collective bargaining agreement between the public employer and the exclusive representative of public employees in an appropriate unit; or new text end
new text begin (3) an individual employment contract between a city and a city manager. new text end
new text begin (e) The plan covers employees of a school district, state agency, or other governmental subdivision. The plan may cover city managers covered by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover employees of the Board of Trustees of Minnesota State who are covered by the Higher Education Supplemental Retirement Plan under chapter 354C. new text end
new text begin (f) Public funds are contributed to the plan only in an amount that matches employee contributions on a dollar for dollar basis, but not to exceed the lesser of (1) the maximum authorized under the policy described in paragraph (d) that provides for enrollment in the plan or program, or (2) one-half of the annual limit on elective deferrals under section 402(g) of the federal Internal Revenue Code. new text end
new text begin (g) Contributions to the plan may include contributions deducted from an employee's sick leave, accumulated vacation leave, or accumulated severance pay. new text end
"Dependent surviving child" means deleted text begin anydeleted text end new text begin an individual who is an unmarried new text end natural or adopted child of a deceased judge deleted text begin whodeleted text end new text begin ,new text end has not reached the age of 18 yearsdeleted text begin ,deleted text end ornew text begin ,new text end having reached the age of 18, is under age 22 and deleted text begin whodeleted text end is a full-time student throughout the normal school year, deleted text begin is unmarried,deleted text end and deleted text begin isdeleted text end new text begin was new text end actually dependent for more than one-half of the child's support upon the judge for a period of at least 90 days new text begin immediately new text end before the judge's death. It also deleted text begin includesdeleted text end new text begin means new text end any natural child of the judge who was born after the death of the judgenew text begin unless a parent-child relationship does not exist under section 524.2-120, subdivision 10new text end .
(a) The state shall pay $6,000,000 annually to the judges' retirement fund. The aid is payable each deleted text begin Octoberdeleted text end new text begin July new text end 1. deleted text begin The commissioner of management and budget shall pay the aid specified in this subdivision.deleted text end The amount required is annually appropriated from the general fund to the deleted text begin commissioner of management and budgetdeleted text end new text begin judges' retirement fundnew text end .
(b) The aid under paragraph (a) continues until the earlier of:
(1) the first day of the fiscal year following the fiscal year in which the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as reported by the actuary retained under section 356.214 in the annual actuarial valuation prepared under section 356.215; or
(2) July 1, 2048.
(a) Except as qualified hereinafter from and after the mandatory retirement date, the normal retirement date, the early retirement date, or one year from the disability retirement date, as the case may be, a retiring judge is eligible to receive a retirement annuity from the judges' retirement fund.
(b) For a tier I program judge, the retirement annuity is an amount equal to:
(1) 2.7 percent multiplied by the judge's final average compensation with that result then multiplied by the number of years and fractions of years of allowable service rendered before July 1, 1980; plus
(2) 3.2 percent multiplied by the judge's final average compensation with that result then multiplied by the number of years and fractions of years of allowable service rendered after June 30, 1980.
(c) For a tier II program judge who was first appointed or elected as a judge before July 1, 2013, the retirement annuity is an amount equal to:
(1) 3.2 percent multiplied by the judge's final average compensation with that result then multiplied by the number of years and fractions of years of allowable service rendered before January 1, 2014; plus
(2) 2.5 percent multiplied by the judge's final average compensation with that result then multiplied by the number of years and fractions of years of allowable service rendered after December 31, 2013.
(d) For a tier II program judge who was first appointed or elected as a judge after June 30, 2013, the retirement annuity is an amount equal to deleted text begin thedeleted text end new text begin 2.5 new text end percent deleted text begin specified in section 356.315, subdivision 8a,deleted text end multiplied by the judge's final average compensation with that result then multiplied by the number of years and fractions of years of allowable service.
(e) For a judge in the tier I program, service that exceeds the service credit limit in section 490.121, subdivision 22, must be excluded in calculating the retirement annuity, but the compensation earned by the judge during this period of judicial service must be used in determining a judge's final average compensation and calculating the retirement annuity.
new text begin Minnesota Statutes 2018, section 356.44, new text end new text begin is repealed. new text end
new text begin Sections 1 to 18 are effective July 1, 2020. new text end
(a) The following public employees are not eligible to participate as members of the association with retirement coverage by the general employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire retirement plan:
(1) persons whose annual salary from one governmental subdivision never exceeds an amount, stipulated in writing in advance, of $5,100 if the person is not a school district employee or $3,800 if the person is a school year employee. If annual compensation from one governmental subdivision to an employee exceeds the stipulated amount in a calendar year or a school year, whichever applies, after being stipulated in advance not to exceed the applicable amount, the stipulation is no longer valid and contributions must be made on behalf of the employee under section 353.27, subdivision 12, from the first month in which the employee received salary exceeding $425 in a month;
(2) public officers who are elected to a governing body, city mayors, or persons who are appointed to fill a vacancy in an elected office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elected position;
(3) election judges and persons employed solely to administer elections;
(4) patient and inmate personnel who perform services for a governmental subdivision;
(5) except as otherwise specified in subdivision 12a, employees who are employed solely in a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days of that resignation in the same governmental subdivision;
(6) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster, but if the person becomes a probationary or provisional employee within the same pay period, other than on a temporary basis, the person is a "public employee" retroactively to the beginning of the pay period;
(7) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion 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, and 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 plan on the salary based on the other service or to the Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
(8) persons who are 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, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;
(9) persons who are:
(i) employed by a governmental subdivision who have not reached the age of 23 and who 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 at a public or charter high school;
(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist interns and are serving in a degree or residency program in a public hospital or in a public clinic; or
(iii) students who are serving for a period not to exceed five years in an internship or a residency program that is sponsored by a governmental subdivision, including an accredited educational institution;
(10) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;
(11) for the first three years of employment, foreign citizens who are employed by a governmental subdivision, except that the following foreign citizens are included employees under subdivision 2a:
(i) employees of Hennepin County or Hennepin Healthcare System, Inc.;
(ii) employees legally authorized to work in the United States for three years or more; and
(iii) employees otherwise required to participate under federal law;
(12) 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;
(13) 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 general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;
(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, but 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 general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;
(15) 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;
(16) electrical workers, plumbers, carpenters, and associated trades personnel who are 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 pension plan applicable to Carpenters Local 322 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;
(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers who are 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;
(18) plumbers who are 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;
(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under subdivision 12b which are limited in duration by the employer to deleted text begin 185 consecutive calendar daysdeleted text end new text begin a period of six months new text end or less in each year of employment with the governmental subdivision;
(20) 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 up to five years, 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;
(21) independent contractors and the employees of independent contractors;
(22) reemployed annuitants of the association during the course of that reemployment;
(23) persons appointed to serve on a board or commission of a governmental subdivision or an instrumentality thereof;
(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 and who are, by virtue of that employment, members of the International Brotherhood of Teamsters Central States pension plan;
(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board, with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters local 539 pension plan, who were first employed before May 2, 2015, and who elected to be excluded under Laws 2015, chapter 68, article 11, section 5; and
(26) laborers and associated trades personnel employed by the city of St. Paul or Independent School District No. 625, St. Paul, who are designated as temporary employees under a collective bargaining agreement and have retirement coverage by the Minnesota Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211, article 16, section 13.
(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 begin This section is effective July 1, 2020. new text end
(a) Unless prohibited under paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five new text begin cumulative new text end years of allowable service credit, for one or more periods of service in the uniformed services, as defined in United States Code, title 38, section 4303(13), ifnew text begin :new text end
new text begin (1)new text end the member has at least three years of allowable service credit with the general employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire retirement plannew text begin ;new text end
new text begin (2) the member's current period of employment is at least six months;new text end and
new text begin (3) one of the following appliesnew text end :
deleted text begin (1)deleted text end new text begin (i) new text end the member's service in the uniformed services occurred before becoming a public employee as defined in section 353.01, subdivision 2; or
deleted text begin (2)deleted text end new text begin (ii) new text end the member failed to obtain service credit for a uniformed services leave of absence under section 353.01, subdivision 16, paragraph (a), clause (8).
(b) A service credit purchase is prohibited if:
(1) the member separated from service in the uniformed services with a dishonorable or bad conduct discharge or under other than honorable conditions; or
(2) the member has purchased or otherwise received service credit from any Minnesota public employee pension plan for the same period of service in the uniformed services.
new text begin (c) When purchasing a period of service, if the period of service in the uniformed services is one year or less, then the member must purchase the full period of service. If the period of service in the uniformed services is longer than one year, the member may purchase the full period, not to exceed five cumulative years, or may purchase a portion of the period of service. If a member wishes to purchase a portion of the period of service, the portion must: new text end
new text begin (1) not be less than one year; and new text end
new text begin (2) be in increments of six months of service. new text end
new text begin This section is effective July 1, 2020. new text end
Upon termination of deleted text begin membershipdeleted text end new text begin public servicenew text end , a deleted text begin persondeleted text end new text begin member new text end who has attained normal retirement age and who is vested under section 353.01, subdivision 47, 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 July 1, 2020. new text end
(a) Except as specified in paragraph (b), a retirement annuity granted under this chapter begins on the first day of the first calendar month after the date of termination of public service or up to deleted text begin sixdeleted text end new text begin five new text end months before the first of the month in which a complete application is received by the executive director under subdivision 4, whichever is later. The annuity must be paid in equal monthly installmentsdeleted text begin , unless suspended or reduced under section 353.37deleted text end . Annuity payments shall not be paid beyond the end of the month in which entitlement to the annuity has terminated.
(b) An annuity granted to an elected public official may begin on the day following the expiration of the public office that qualified the elected official for membership under section 353.01, subdivision 2a or 2d, if a complete application is received by the executive director under subdivision 4 within six months of the date of termination of public service. The annuity for the month during which the expiration occurred is prorated accordingly.
(c) An annuity, once granted, must not be increased, decreased, or revoked except under this chapter.
(d) If an annuitant dies before negotiating the check for the month in which death occurs, payment must first be made to the surviving spouse, or if none, then to the designated beneficiary, or if none, lastly to the estate.
new text begin This section is effective July 1, 2020. new text end
In the event of the death of the designated optional annuity beneficiary before the retired employee or disabilitant, the restoration of the normal single life annuity under subdivision 3a or 3b will take effect on the first of the month following the date of death of the designated optional annuity beneficiary or deleted text begin ondeleted text end new text begin up to five months before new text end the first of the month deleted text begin following six months beforedeleted text end new text begin in which new text end satisfactory verification of the death is established by the executive director, whichever date is later.
new text begin This section is effective July 1, 2020. new text end
All benefits under this section and survivor benefits otherwise provided in this chapter when payable to persons qualifying therefor shall accrue on the deleted text begin first day following thedeleted text end new text begin date of new text end death of a deleted text begin "basic member"deleted text end new text begin basic member new text end or the first day of the month following the death of an annuitant or disabilitant. No payment may be made retroactively deleted text begin fordeleted text end more than deleted text begin 12deleted text end new text begin five new text end months deleted text begin prior to thatdeleted text end new text begin before the first of the new text end month in which deleted text begin thedeleted text end new text begin a complete new text end application is deleted text begin fileddeleted text end new text begin received by the executive directornew text end , and no benefit shall accrue beyond the end of the month in which entitlement to such benefits has terminated.
new text begin This section is effective July 1, 2020. new text end
If a member or former member dies without having designated a beneficiary or if the beneficiary should die before making application for refund, and if there is no surviving spouse, and if the legal representative of such member or former member does not apply for refund within five years from the date of death of the member or former member, the accumulated deductions to the member or former member's credit at the time of death shall be disposed of in the manner provided in section deleted text begin 356.631deleted text end new text begin 356.65, unless subdivision 5 appliesnew text end .
new text begin This section is effective July 1, 2020. new text end
(a) A member who is new text begin partially or 100 percent new text end vested under section 353.01, subdivision 47, when termination of public service or termination of membership occurs has the option of leaving the new text begin member's new text end 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.
(b) 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 deleted text begin earlierdeleted text end new text begin laternew text end , andnew text begin , if the later of termination of public service or termination of membership is on or before December 31, 2011, the deferred annuitynew text end must be augmented as provided in deleted text begin paragraphdeleted text end new text begin paragraphs new text end (c)new text begin to (e)new text end .
(c) The deferred annuity of any former member must be augmented from the first day of the month following the termination of active service, or July 1, 1971, whichever is later, to the effective date of retirementnew text begin or, if earlier, December 31, 2018new text end .
(d) For a person who became a public employee before July 1, 2006, and who has a termination of public service before January 1, 2012, the deferred annuity must be augmented at the following rate or rates, compounded annually:
(1) five percent until January 1, 1981;
(2) three percent from January 1, 1981, until January 1 of the year following the year in which the former member attains age 55 or December 31, 2011, whichever is earlier;
(3) five percent from January 1 of the year following the year in which the former member attains age 55, or December 31, 2011, whichever is earlier;
(4) one percent from January 1, 2012, until December 31, 2018; and
(5) after December 31, 2018, the deferred annuity must not be augmented.
(e) For a person who became a public employee after June 30, 2006, and who has a termination of public service before January 1, 2012, the deferred annuity must be augmented at the following rate or rates, compounded annually:
(1) 2.5 percent until December 31, 2011;
(2) one percent from January 1, 2012, until December 31, 2018; and
(3) after December 31, 2018, the deferred annuity must not be augmented.
(f) For a person who has a termination of public service after December 31, 2011, the deferred annuity must not be augmented.
(g) 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 investment return 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.
(h) 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 July 1, 2020. new text end
deleted text begin (a)deleted text end This section applies to a basic or coordinated member of the general employees retirement plan of the Public Employees Retirement Association who:
(1) for at least the five years immediately preceding separation under clause (2), was regularly scheduled to work 1,044 or more hours per year in a position covered by the general employees retirement plan of the Public Employees Retirement Association not including positions that are elected offices;
(2) deleted text begin terminatesdeleted text end new text begin has a termination of new text end membership as defined under section 353.01, subdivision 11b;
(3) at the time of termination under clause (2), was at least age 62 and met the age and service requirements necessary to receive a retirement annuity from the plan and satisfied requirements for the commencement of the retirement annuity in the month following termination;
(4) accepts a phased retirement agreement to continue employment new text begin in the same position new text end with the same governmental subdivisiondeleted text begin , workingdeleted text end new text begin that the member held before the date of the member's termination of membership and to work new text end a reduced schedule that is both:
(i) a reduction of at least 25 percent from the employee's number of previously regularly scheduled work hoursnew text begin per pay periodnew text end ; and
(ii) 1,044 hours new text begin per year new text end or less in public service; and
(5) is not eligible for participation in the state employee postretirement option program under section 43A.346.
deleted text begin (b) For purposes of this section, the length of separation requirement and termination of public service requirement prohibiting return to work agreements under section 353.01, subdivisions 11a and 28, are not applicable except as specified in subdivision 7, paragraph (a). deleted text end
new text begin This section is effective July 1, 2020. new text end
new text begin Notwithstanding sections 353.29 and 353.30, an employee covered by a phased retirement agreement need not have a termination of public service to be eligible for a retirement annuity. new text end The provisions of section 353.37 governing annuities of reemployed annuitants do not apply to employment under a phased retirement agreement.
new text begin This section is effective July 1, 2020. new text end
new text begin If an employee works more hours under a phased retirement agreement than is permitted under subdivision 1, paragraph (a), clause (4), then, effective on the first of the month following the date on which the permitted number of hours was exceeded: new text end
new text begin (1) the phased retirement agreement is terminated; and new text end
new text begin (2) the employee's retirement annuity is suspended until the employee meets the termination and length of service requirement in section 353.01, subdivisions 11a and 28. new text end
new text begin This section is effective July 1, 2020. new text end
Upon separation from public service, any police officer or firefighter member, other than a firefighter covered by section 353.6511, or a police officer covered by section 353.6512, who has attained the age of at least 55 years and who is new text begin partially or 100 percent new text end vested under section 353.01, subdivision 47, is entitled upon application to a retirement annuity, known as the deleted text begin "normal"deleted text end new text begin normal new text end retirement annuity.
new text begin This section is effective July 1, 2020. new text end
(a) A member of the police and fire plan, other than a firefighter covered by section 353.6511, or a police officer covered by section 353.6512, who is determined to qualify for duty disability as defined in section 353.01, subdivision 41, is entitled to receive disability benefits during the period of such disability in an amount equal to 60 percent of the average salary as defined in section 353.01, subdivision 17a, plus an additional 3.0 percent of that average salary for each year of service in excess of 20 years.
(b) To be eligible for a benefit under paragraph (a), the member must have:
(1) not met the new text begin age and vesting new text end requirements for a retirement annuity under section 353.651, subdivision 1; or
(2) met the new text begin age and vesting new text end requirements under that subdivision, but does not have at least 20 years of allowable service credit.
(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period of 60 months from the disability benefit accrual date and at the end of that period is subject to provisions of subdivision 5a.
(d) If the disability under this subdivision occurs before the member has at least five years of allowable service credit in the police and fire plan, the disability benefit must be computed on the average salary from which deductions were made for contribution to the police and fire fund.
new text begin This section is effective retroactively from January 1, 2020. new text end
(a) A member of the police and fire plan, other than a firefighter covered by section 353.6511, or a police officer covered by section 353.6512, who qualifies for a regular disability benefit as defined in section 353.01, subdivision 46, is entitled to receive a disability benefit, after filing a valid application, in an amount equal to 45 percent of the average salary as defined in section 353.01, subdivision 17a.
(b) To be eligible for a benefit under paragraph (a), the member must have at least one year of allowable service credit and have:
(1) not met the new text begin age and vesting new text end requirements for a retirement annuity under section 353.651, subdivision 1, or
(2) met the new text begin age and vesting new text end requirements under that subdivision, but does not have at least 15 years of allowable service credit.
(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period of 60 months from the disability benefit accrual date and, at the end of that period, is subject to provisions of subdivision 5a.
(d) 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 retroactively from January 1, 2020. new text end
(a) In the event that a member of the police and fire fund, other than a firefighter covered by section 353.6511, or a police officer covered by section 353.6512, dies from any cause before retirement or before deleted text begin becoming disabled anddeleted text end 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 be new text begin partially or 100 percent new text end vested under section 353.01, subdivision 47.
(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 new text begin dependent new text end child or children are entitled to monthly benefits as provided in subdivisions 2 to 4.
new text begin This section is effective July 1, 2020. new text end
new text begin Minnesota Statutes, section 353.656, subdivision 1, paragraph (c), shall be read as "(c) The disability benefit must be paid for a period of 60 months from the disability benefit accrual date and at the end of that period is subject to provisions of subdivision 5a." new text end
new text begin This section is effective retroactively from July 1, 2007, and expires December 31, 2019. new text end
new text begin Minnesota Statutes 2018, section 353.30, subdivision 4, new text end new text begin is repealed. new text end
new text begin This section is effective July 1, 2020. new text end
new text begin "Governing body" means the governing body of a municipality or independent nonprofit firefighting corporation or, in the case of a joint powers entity, the governing bodies of the municipalities associated with the joint powers entity. new text end
deleted text begin Anydeleted text end new text begin (a) A relief association or a new text end municipality or independent nonprofit firefighting corporation new text begin affiliated with a relief association new text end may elect to have its volunteer firefighters covered by the lump-sum retirement division or the monthly benefit retirement division of the retirement plandeleted text begin , whichever appliesdeleted text end .
new text begin (b) A municipality or independent nonprofit firefighting corporation that is not affiliated with a relief association may elect to have its volunteer firefighters covered by the lump-sum retirement division of the retirement plan. new text end
deleted text begin Upon receipt ofdeleted text end new text begin (a) The executive director shall deliver new text end the cost analysis requested under subdivision 2 or 3, new text begin to new text end the new text begin board of trustees of the relief association, if one exists, and the new text end governing body deleted text begin of the municipality or independent nonprofit firefighting corporation associated with the fire department shall either approve or disapprove the retirement coverage changedeleted text end new text begin .new text end
new text begin (b) The transfer of coverage to the retirement plan is considered approved if,new text end within 120 daysnew text begin of receipt of the cost analysis, the transfer is approved by both (1) the board of trustees of the relief association, if one exists, and (2) the governing bodynew text end . Ifnew text begin eithernew text end the deleted text begin retirement coverage change is not acted upondeleted text end new text begin governing body or the board of trustees of the relief association does not take action to approve the transfer new text end within 120 daysdeleted text begin , it is deemed to be disapproveddeleted text end new text begin of receipt of the cost analysis, the transfer is not approvednew text end .
new text begin (c)new text end If the deleted text begin retirement coverage changedeleted text end new text begin transfer new text end is approved deleted text begin by the applicable governing bodydeleted text end , coverage by the deleted text begin voluntary statewide volunteer firefighterdeleted text end retirement plan is effective on the January 1 next following the deleted text begin approvaldeleted text end datenew text begin of approval by the last governing body or, if later, the date of approval by the board of trustees of the relief associationnew text end .
new text begin If transfer of coverage to the retirement plan is being requested for volunteer firefighters that provide services to a fire department operated as or by a joint powers entity, whenever an election or approval by or delivery to the governing body of a municipality is required under this section, all municipalities that executed the joint powers agreement must execute the election or approval or receive delivery, unless the joint powers agreement specifies another process be followed in order for the action of a joint powers entity to be effective. new text end
(a) An active member of the lump-sum retirement division 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 firefighter relief association as of the date immediately before 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 firefighter relief association or of the lump-sum retirement division of the retirement plan, but has not rendered at least five years of good time service credit as a member of the lump-sum retirement division of the plan; and
(4) applies in a manner prescribed by the executive director for the service pension.
(b) If retirement coverage before statewide retirement plan coverage was provided new text begin to an active member new text end by a defined benefit deleted text begin lump-sum retirement plan volunteer firefighterdeleted text end relief association, new text begin as defined in section 424A.001, subdivision 1b, new text end the alternative lump-sum service pension isnew text begin :new text end
new text begin (1)new text end the service pension deleted text begin amountdeleted text end new text begin level new text end specified in the bylaws of the applicable former volunteer firefighter relief association deleted text begin eitherdeleted text end as of the date immediately before the election of the retirement coverage change deleted text begin or as of the date immediately before the termination of firefighting services, whichever is earlier,deleted text end new text begin ;new text end multiplied by deleted text begin the total number ofdeleted text end
new text begin (2) either fullnew text end years of service new text begin or years and months of service, as specified in the bylaws, new text end as a member of that volunteer firefighter relief association and as a member of the retirement plandeleted text begin .deleted text end new text begin ; multiplied bynew text end
new text begin (3) the non-forfeitable percentage of the service pension to which the member is entitled under subdivision 2. new text end
new text begin (c)new text end If retirement coverage before statewide retirement plan coverage was provided new text begin to an active member new text end by a defined contribution deleted text begin plan volunteer firefighterdeleted text end relief association, new text begin as defined in section 424A.001, subdivision 1c, new text end the alternative lump-sum service pension isdeleted text begin an amount equal to that portion ofdeleted text end new text begin :new text end
new text begin (1)new text end the person's account balance deleted text begin that the person was vested fordeleted text end as of the date immediately before the deleted text begin date on which statewide retirement plan coverage was first provided to the persondeleted text end new text begin election of the retirement coverage change; multiplied bynew text end
new text begin (2) the non-forfeitable percentage of the account balance to which the person is entitled under subdivision 2; new text end plus
new text begin (3)new text end six percent annual compound interest from deleted text begin thatdeleted text end new text begin the new text end date new text begin immediately before the election of the retirement coverage change new text end until the date immediately before the date of retirement.
new text begin A person who (1) had the status of deferred member with a former volunteer firefighter relief association as of the date immediately before the election of the retirement coverage change, and (2) is eligible for a service pension under the former relief association's bylaws is entitled to receive a service pension from the retirement plan. Eligibility for and calculation of the service pension are determined under the former relief association's bylaws as of the date the person terminated firefighting services and under chapter 424A. new text end
deleted text begin After the transfer of retirement coverage to the lump-sum retirement division of the retirement plan, the governing body or bodies of the entity or entities operating the fire department whose firefighters are covered by the retirement plan may requestdeleted text end A cost estimate from the executive director of an increase in the service pension level applicable to the active firefighters of the fire departmentnew text begin may be requested by: (1) the fire chief of a department that has active membership covered by the lump-sum retirement division; or (2) the governing body operating a fire department that has active membership covered by the lump-sum retirement divisionnew text end . Within 120 days of the receipt of the cost estimate prepared by the executive director using a procedure certified as accurate by the approved actuary retained by the Public Employees Retirement Association, the governing body deleted text begin or bodiesdeleted text end may approve the service pension level change, effective for January 1 of the following calendar year unless the governing body deleted text begin or bodies specifydeleted text end new text begin specifiesnew text end in the deleted text begin approveddeleted text end new text begin approval new text end document an effective date deleted text begin as thedeleted text end new text begin that is new text end January 1 of the second year following the deleted text begin level increasedeleted text end approvalnew text begin datenew text end . If the approval occurs after April 30, the required municipal contribution for the following calendar year must be recalculated and the results reported to the deleted text begin municipality or municipalitiesdeleted text end new text begin governing bodynew text end . If not approved deleted text begin in a timely fashiondeleted text end new text begin within 120 days of the receipt of the cost estimatenew text end , the service pension level change is considered to have been disapproved.
(a) The fire chief of a fire department that has an active membership who are covered by the monthly benefit retirement division of the deleted text begin statewide retirementdeleted text end plan may initiate the process of modifying the retirement benefit plan document under this section.
(b) The modification procedure is initiated when the applicable fire chief files with the executive director of the Public Employees Retirement Association a written summary of the desired benefit plan document modification, the proposed benefit plan document modification language, a written request for the preparation of an actuarial cost estimate for the proposed benefit plan document modification, and payment of the estimated cost of the actuarial cost estimate.
(c) Upon receipt of the modification request and related documents, the executive director shall review the language of the proposed benefit plan document modification and, if a clarification is needed in the submitted language, shall inform the fire chief of the necessary clarification. Once the proposed benefit plan document modification language has been clarified by the fire chief and resubmitted to the executive director, the executive director shall arrange for the approved actuary retained by the Public Employees Retirement Association to prepare a benefit plan document modification cost estimate under the applicable provisions of section 356.215 and of the standards for actuarial work adopted by the Legislative Commission on Pensions and Retirement. Upon completion of the benefit plan document modification cost estimate, the executive director shall forward the estimate to the fire chief who requested it and to the chief financial officer of the municipality or entity with which the fire department is primarily associated.
(d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate with the active firefighters in the fire department and shall take reasonable steps to provide the estimate results to any affected retired members of the fire department and their beneficiaries. The chief financial officer of the municipality or entity associated with the fire department shall present the proposed modification language and the cost estimate to the governing body of the municipality or entity for its consideration at a public hearing held for that purpose.
(e) If the governing body of the municipality or entity approves the modification language, the chief administrative officer of the municipality or entity shall notify the executive director of the Public Employees Retirement Association of that approval. The benefit plan document modification is effective on the January 1 next following the date of filing the approval with the Public Employees Retirement Association deleted text begin and the state auditordeleted text end .
new text begin In Minnesota Statutes, the revisor of statutes shall substitute the term "statewide volunteer firefighter plan" for "voluntary statewide volunteer firefighter retirement plan" and the term "statewide volunteer firefighter fund" for "voluntary statewide volunteer firefighter retirement fund" wherever the terms refer to the retirement plan and fund established under Minnesota Statutes, chapter 353G. new text end
new text begin Sections 1 to 9 are effective the day following final enactment. new text end
(a) "Teacher" means:
(1) a person who renders service as a teacher, supervisor, principal, superintendent, librarian, nurse, counselor, social worker, therapist, or psychologist in:
(i) a public school of the state other than in Independent School District No. 625;
(ii) a charter school;new text begin ornew text end
deleted text begin (iii) a charitable, penal, or correctional institution of a governmental subdivision; or deleted text end
deleted text begin (iv)deleted text end new text begin (iii) new text end the Perpich Center for Arts Education, except that any employee of the Perpich Center for Arts Education who was covered by the Minnesota State Retirement System general state employees retirement plan as of July 1, 2018, shall continue to be covered by that plan and not by the Teachers Retirement Association;
(2) a person who is engaged in educational administration in connection with the state public school system, whether the position be a public office or as employment;
(3) a person who renders service as a charter school director or chief administrative officer; provided, however, that if the charter school director or chief administrative officer is covered by the Public Employees Retirement Association general employees retirement plan on July 1, 2018, the charter school director or chief administrative officer shall continue to be covered by that plan and not by the Teachers Retirement Association;
(4) an employee of the Teachers Retirement Association;
(5) a person who renders teaching service on a part-time basis and who also renders other services for a single employing unit where the teaching service comprises at least 50 percent of the combined employment salary is a member of the association for all services with the single employing unit or, if less than 50 percent of the combined employment salary, the executive director determines all of the combined service is covered by the association; or
(6) a person who is not covered by the plans established under chapter 352D, 354A, or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges and Universities system in an unclassified position as:
(i) a president, vice-president, or dean;
(ii) a manager or a professional in an academic or an academic support program other than specified in item (i);
(iii) an administrative or a service support faculty position; or
(iv) a teacher or a research assistant.
(b) "Teacher" does not mean:
(1) a person who works for a school or institution as an independent contractor as defined by the Internal Revenue Service;
(2) annuitants of the teachers retirement plan who are employed after retirement by an employing unit that participates in the teachers retirement plan during the course of that reemployment;
(3) a person who is employed by the University of Minnesota;
(4) a member or an officer of any general governing or managing board or body of an employing unit that participates in the teachers retirement plan; or
(5) a person employed by Independent School District No. 625 as a teacher as defined in section 354A.011, subdivision 27.
new text begin This section is effective the day following final enactment. new text end
(a) "Annual base salary" means:
(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;
(2) for a charter school, the lowest starting annual salary for a full-time deleted text begin licenseddeleted text end teacher employed during the previous fiscal year for that employing unit; and
(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.
(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.
(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 begin This section is effective the day following final enactment. new text end
(a) deleted text begin An annuity payment begins to accrue, provided thatdeleted text end new text begin If new text end the new text begin applicable new text end age and service requirements under deleted text begin subdivision 1deleted text end new text begin this section new text end are satisfied, deleted text begin after the termination of teaching service, or after the application for retirement has been filed with the executive director,deleted text end new text begin an annuity payment begins to accrue new text end as follows:
(1) on the day after the termination of teaching service;
(2) on the day of receipt of application if the application is filed with the executive director after the six-month period that occurs immediately following the termination of teaching service;new text begin ornew text end
(3) on July 1 for all school principals and other administrators who receive a full annual contract salary during the fiscal year for performance of a full year's contract dutiesdeleted text begin ; ordeleted text end new text begin .new text end
deleted text begin (4) if an application for retirement is filed with the executive director during the six-month period that occurs immediately following the termination of teaching service, the annuity may begin to accrue as if the application for retirement had been filed with the board on the date teaching service terminated. deleted text end
(b) A member, or a person authorized to act on behalf of the member, may specify a different date of retirement from that determined in paragraph (a), as follows:
(1) if the application is filed on or before the date of termination of teaching service, the accrual date deleted text begin may be a date nodeleted text end new text begin must not be new text end earlier than the day after the termination of teaching service and no later than six months after the termination date; or
(2) if the application is filed during the six-month period that occurs immediately following the termination of teaching service, the deleted text begin accrual datedeleted text end new text begin annuity new text end may begin to accrue retroactively, but no earlier than the day after new text begin termination of new text end teaching service deleted text begin terminateddeleted text end and no later than six months after the termination date.
new text begin This section is effective the day following final enactment. new text end
(a) The formula retirement annuity must be computed in accordance with the applicable provisions of the formulas stated in paragraph (b) or (d) on the basis of each member's average salary under section 354.05, subdivision 13a, for the period of the member's formula service credit.
(b) This paragraph, in conjunction with paragraph (c), applies to a person who first became a member of the association or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The average salary as defined in section 354.05, subdivision 13a, multiplied by the following percentages per year of formula service credit shall determine the amount of the annuity to which the member qualifying therefor is entitled for service rendered before July 1, 2006:
Period | Coordinated Member | Basic Member | |||
Each year of service during first ten | 1.2 percent per year | 2.2 percent per year | |||
Each year of service thereafter | 1.7 percent per year | 2.7 percent per year |
For service rendered on or after July 1, 2006, by a member other than a member who was a member of the former Duluth Teachers Retirement Fund Association between January 1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member who was a member of the former Duluth Teachers Retirement Fund Association between January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05, subdivision 13a, multiplied by the following percentages per year of service credit, determines the amount the annuity to which the member qualifying therefor is entitled:
Period | Coordinated Member | Basic Member | |||
Each year of service during first ten | 1.4 percent per year | 2.2 percent per year | |||
Each year of service after ten years of service | 1.9 percent per year | 2.7 percent per year |
(c)(1) This paragraph applies only to a person who first became a member of the association or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in conjunction with this paragraph than when calculated under paragraph (d), in conjunction with paragraph (e).
(2) Where any member retires prior to normal retirement age under a formula annuity, the member shall be paid a retirement annuity in an amount equal to the normal annuity provided in paragraph (b) reduced by one-quarter of one percent for each month that the member is under normal retirement age at the time of retirement except that for any member who has 30 or more years of allowable service credit, the reduction shall be applied only for each month that the member is under age 62.
(3) Any member whose attained age plus credited allowable service totals 90 years is entitled, upon application, to a retirement annuity in an amount equal to the normal annuity provided in paragraph (b), without any reduction by reason of early retirement.
(d) This paragraph applies to a member who has become at least 55 years old and first became a member of the association after June 30, 1989, and to any other member who has become at least 55 years old and whose annuity amount when calculated under this paragraph and in conjunction with paragraph (e), is higher than it is when calculated under paragraph (b), in conjunction with paragraph (c).
(1) For a basic member, the average salary, as defined in section 354.05, subdivision 13a, multiplied by 2.7 percent for each year of service for a basic member determines the amount of the retirement annuity to which the basic member is entitled. The annuity of a basic member who was a member of the former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must be determined according to the annuity formula under the articles of incorporation of the former Minneapolis Teachers Retirement Fund Association in effect as of that date.
(2) For a coordinated member, the average salary, as defined in section 354.05, subdivision 13a, multiplied by 1.7 percent for each year of service rendered before July 1, 2006, and by 1.9 percent for each year of service rendered on or after July 1, 2006, for a member other than a member who was a member of the former Duluth Teachers Retirement Fund Association between January 1, 2006, and June 30, 2015, and by 1.9 percent for each year of service rendered on or after July 1, 2013, for a member of the former Duluth Teachers Retirement Fund Association between January 1, 2013, and June 30, 2015, determines the amount of the retirement annuity to which the coordinated member is entitled.
deleted text begin (e) This paragraph applies to a member who has become at least 55 years old and first becomes a member of the association after June 30, 1989, and to any other member who has become at least 55 years old and whose annuity is higher when calculated under paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b), in conjunction with paragraph (c). An employee who retires under the formula annuity before the normal retirement age shall be paid the normal annuity provided in paragraph (d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would be payable to the employee if the employee deferred receipt of the annuity and the annuity amount were augmented at an annual rate of three percent compounded annually from the day the annuity begins to accrue until the normal retirement age 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. Except in regards to section 354.46, this paragraph remains in effect until June 30, 2015. deleted text end
deleted text begin (f) Until June 30, 2019, this paragraph applies to a member who has become at least 55 years old and first becomes a member of the association after June 30, 1989, and to any other member who has become at least 55 years old and whose annuity is higher when calculated under paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b) in conjunction with paragraph (c). An employee who retires under the formula annuity before the normal retirement age is entitled to receive the normal annuity provided in paragraph (d), reduced as described in clause (1) or (2), as applicable. deleted text end
deleted text begin (1) For a member who is at least age 62 and has at least 30 years of service, the annuity shall be reduced by an early reduction factor of six percent for each year that the member's age of retirement precedes normal retirement age. The resulting reduced annuity shall be further adjusted to take into account the increase in the monthly amount that would have occurred had the member retired early and deferred receipt of the annuity until normal retirement age and the annuity was augmented during the deferral period at 2.5 percent, if the member commenced employment after June 30, 2006, or at three percent, if the member commenced employment before July 1, 2006, compounded annually. deleted text end
deleted text begin (2) For a member who has not attained age 62 or has fewer than 30 years of service, the annuity shall be reduced for each year that the member's age of retirement precedes the normal retirement age by the following early reduction factors: deleted text end
deleted text begin (i) for the period during which the member is age 55 through age 59, the factor is four percent; and deleted text end
deleted text begin (ii) for the period during which the member is age 60 but not yet normal retirement age, the factor is seven percent. deleted text end
deleted text begin The resulting reduced annuity shall be further adjusted to take into account the increase in the monthly amount that would have occurred had the member retired early and deferred receipt of the annuity until normal retirement age and the annuity was augmented during the deferral period at 2.5 percent, if the member commenced employment after June 30, 2006, or at three percent, if the member commenced employment before July 1, 2006, compounded annually. deleted text end
deleted text begin (g) For members who retire on or after July 1, 2019,deleted text end new text begin (e) new text end This paragraph applies to a person who has become at least 55 years old and first becomes a member of the association after June 30, 1989, and to any other member who has become at least 55 years old and whose annuity is higher when calculated under paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b) in conjunction with paragraph (c). An employee who retires under the formula annuity before the normal retirement age is entitled to receive the normal annuity provided in paragraph (d), reduced as described in clause (1) or (2), as applicable.
(1) For a member who is at least age 62 and has at least 30 years of service, the annuity shall be reduced by an early reduction factor of six percent for each year that the member's age of retirement precedes the normal retirement age. The resulting reduced annuity shall be further adjusted to take into account the increase in the monthly amount that would have occurred had the member retired early and deferred receipt of the annuity until normal retirement age and the annuity was augmented during the deferral period at 2.5 percent, if the member commenced employment after June 30, 2006, or at three percent, if the member commenced employment before July 1, 2006, compounded annually.
(2) For a member who has not attained age 62 or has fewer than 30 years of service, the annuity shall be reduced for each year that the member's age of retirement precedes normal retirement age by the following early reduction factors:
(i) for the period during which the member is age 55 through age deleted text begin 59deleted text end new text begin 58new text end , the factor is four percent; and
(ii) for the period during which the member is new text begin at least new text end age deleted text begin 60deleted text end new text begin 59new text end but not yet normal retirement age, the factor is seven percent.
The resulting annuity shall be further adjusted to take into account the increase in the monthly amount that would have occurred had the member retired early and deferred receipt of the annuity until normal retirement age and the annuity was augmented during the deferral period at the applicable annual rate, compounded annually. The applicable annual rate is the rate in effect for the month that includes the member's effective date of retirement and shall be considered as fixed for the member for the period until the member reaches normal retirement age. The applicable annual rate for June 2019 is 2.5 percent, if the member commenced employment after June 30, 2006, or three percent, if the member commenced employment before July 1, 2006, compounded annually, and decreases each month beginning July 2019 in equal monthly increments over the five-year period that begins July 1, 2019, and ends June 30, 2024, to zero percent effective for July 2024 and thereafter.
After June 30, 2024, the reduced annuity commencing before normal retirement age under this clause shall not take into account any augmentation.
deleted text begin (h) After June 30, 2015, and before July 1, 2019, for a person who would have a reduced retirement annuity under either paragraph (e) or (f) if they were applicable, the employee is entitled to receive a reduced annuity which must be calculated using a blended reduction factor augmented monthly by 1/60 of the difference between the reduction required under paragraph (e) and the reduction required under paragraph (f). deleted text end
deleted text begin (i)deleted text end new text begin (f) new text end No retirement annuity is payable to a former employee with a salary that exceeds 95 percent of the governor's salary unless and until the salary figures used in computing the highest five successive years average salary under paragraph (a) have been audited by the Teachers Retirement Association and determined by the executive director to comply with the requirements and limitations of section 354.05, subdivisions 35 and 35a.
new text begin This section is effective the day following final enactment, except the amendment to paragraph (g), clause (2), is effective retroactively from June 30, 2018. new text end
(a) If the active or deferred member was at least age 55 and had credit for at least three years of allowable service on the date of death, the surviving spouse is entitled to the second portion of a 100 percent joint and survivor annuity specified under section 354.45, based on the age of the active or deferred member at the time of death and the age of the surviving spouse at the time the benefit accrues.
(b) If the active or deferred member was under age 55 and had credit for at least 30 years of allowable service on the date of death, the surviving spouse may elect to receive the second portion of a 100 percent joint and survivor annuity based on the age of the active or deferred member on the date of death and the age of the surviving spouse at the time the benefit accrues. If section 354.44, subdivision 6, applies, the annuity is payable using the full early retirement reduction under section 354.44, subdivision 6, new text begin paragraph (c), new text end clause deleted text begin (3)(ii)deleted text end new text begin (2)new text end , to age 55 and one-half of the early retirement reduction from age 55 to the age payment begins.
(c) If the active or deferred member was under age 55 and had credit for at least three years of allowable service on the date of death, but did not yet qualify for retirement, the surviving spouse may elect to receive the second portion of a 100 percent joint and survivor annuity based on the age of the active or deferred member at the time of death and the age of the surviving spouse at the time the benefit accrues. If section 354.44, subdivision 6, applies, the annuity is calculated using the full early retirement reduction under section 354.44, subdivision 6, to age 55 and one-half of the early retirement reduction from age 55 to the age the annuity begins.
(d) The surviving spouse eligible for surviving spouse benefits under this subdivision may apply for the annuity any time after the member's death. The benefit may not begin to accrue more than six months before the date the application is filed with the executive director and may not accrue before the member's death. The benefit is payable for life. Any benefit under this subdivision is in lieu of benefits under subdivision 1, if applicable, and in lieu of a refund of accumulated member contributions under section 354.47, subdivision 1.
(e) For purposes of this subdivision, a designated beneficiary must be a former spouse or a biological or adopted child of 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 plus interest compounded annually using the following interest rates:
(1) before July 1, 1957, no interest accrues;
(2) July 1, 1957, to June 30, 2011, six percent;
(3) July 1, 2011, to June 30, 2018, four percent; and
(4) after June 30, 2018, three percent.
For the purpose of this subdivision, interest must be computed on fiscal year end balances deleted text begin todeleted text end new text begin through new text end the deleted text begin firstdeleted text end new text begin lastnew text end day of the month new text begin prior to the month new text end 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
Allowable and formula service credit for the purchase period must be granted by the Teachers Retirement Association to the purchasing teacher upon receipt of the purchase payment amount. Payment must be made before the teacher's termination of teaching service.new text begin Purchasing allowable and formula service credit under this section does not change the date the teacher first became a member of the association for the purpose of computing an annuity under section 354.44, subdivision 6.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 354.44, subdivision 6, paragraph (f), the references in Minnesota Statutes, section 354.44, subdivision 6, paragraph (f), to "age 59" shall be read as "age 58" and to "age 60" shall be read as "at least age 59." new text end
new text begin This section is effective retroactively from July 1, 2013, to the day of enactment. new text end
new text begin Minnesota Statutes 2018, section 354.55, subdivision 10, 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
new text begin (a) Notwithstanding Minnesota Statutes, section 353.27, subdivision 12, an eligible person described in paragraph (b) is entitled to purchase allowable service in the public employees police and fire retirement plan under Minnesota Statutes, sections 353.63 to 353.68, for the period described in paragraph (b), clause (3), upon making the payment described in subdivision 2 to the public employees police and fire fund. new text end
new text begin (b) An eligible person is a person who: new text end
new text begin (1) was hired by the city of Maplewood as a casual part-time firefighter, firefighter/EMT, or firefighter/paramedic after February 14, 2011, the effective date of resolutions approved by the city council of the city of Maplewood requesting coverage by the public employees police and fire retirement plan for casual part-time firefighters, as permitted by Minnesota Statutes, section 353.64, subdivision 2; new text end
new text begin (2) received salary in excess of the monthly threshold then in effect under Minnesota Statutes, section 353.01, subdivision 2b, paragraph (a), clause (1), so was not excluded from coverage by the public employees police and fire retirement plan under this provision or any other provision of Minnesota Statutes, section 353.01, subdivision 2b; new text end
new text begin (3) received salary for a period of service for the city of Maplewood from which the city of Maplewood failed to deduct employee contributions as required by Minnesota Statutes, section 353.65, subdivision 2; new text end
new text begin (4) has not accepted payment from the city of Maplewood in lieu of service credit under the public employees police and fire retirement plan for the period described in clause (3); and new text end
new text begin (5) no later than December 31, 2018, has made a request to the executive director of the Public Employees Retirement Association to purchase allowable service pursuant to this section for the period of service described in clause (3). new text end
new text begin (c) Upon receiving the payment described in subdivision 2, the executive director shall credit the eligible person with allowable service for the period of service described in paragraph (b), clause (3). The allowable service credit purchased under this section shall not be used for the purpose of determining a disability benefit under Minnesota Statutes, section 353.656. new text end
new text begin If the eligible person elects to purchase allowable service credit as described in subdivision 1, the eligible person shall pay to the public employees police and fire fund an amount equal to the total amount of the employee contributions that the eligible person would have made to the public employees police and fire fund based on the eligible person's total salary for the period of service described in subdivision 1, paragraph (b), clause (3), plus interest, compounded annually, at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 3, from the end of the year in which the contributions would have been made to the date on which the payment is made. The amount of the required payment shall be determined by the executive director of the Public Employees Retirement Association, who shall notify the eligible person regarding the amount and the basis for determining the amount. Payment must be made by the eligible person in a lump sum within 90 days of the effective date of this subdivision. new text end
new text begin Upon payment by the eligible person of the amount required by subdivision 2, the city of Maplewood shall pay to the public employees police and fire fund an amount equal to the total amount of the employer contributions that would have been made to the public employees police and fire fund based on the eligible person's total salary for the period of service described in subdivision 1, paragraph (b), clause (3), plus interest, compounded annually, at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 3, from the end of the year in which the contributions would have been made to the date on which the payment is made. The executive director shall notify the city of Maplewood regarding the amount and the basis for determining the amount. The payment shall be made within 60 days following receipt by the public employees police and fire fund of the eligible person's payment under subdivision 2. new text end
new text begin If the city of Maplewood fails to make all or any portion of the payment required by subdivision 3, the executive director of the Public Employees Retirement Association shall follow the procedures in Minnesota Statutes, section 353.28, subdivision 6, to collect the amount not paid. new text end
new text begin Subdivisions 1, 2, and 4 are effective the day following final enactment. Subdivision 3 is effective the day after the governing body of the city of Maplewood and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
(a) Annually on or before August 1 as part of the certification of the financial requirements and minimum municipal obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable, the secretary or some other official of the relief association designated in the bylaws of each defined benefit relief association shall calculate and certify to the governing body of the applicable municipality the average amount of available financing per active covered firefighter for the most recent three-year period. The amount of available financing includes any amounts of fire state aid and police and firefighter retirement supplemental state aid received or receivable by the relief association, any amounts of municipal contributions to the relief association raised from levies on real estate or from other available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.
(b) The maximum service pension which the defined benefit relief association has authority to provide for in its bylaws for payment to a member retiring after the calculation date when the minimum age and service requirements specified in subdivision 1 are met must be determined using the table in paragraph (c) or (d), whichever applies.
(c) For a defined benefit relief association where the governing bylaws provide for a monthly service pension to a retiring member, the maximum monthly service pension amount per month for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter:
Minimum Average Amount of Available Financing per Firefighter |
Maximum Service Pension Amount Payable per Month for Each Year of Service | ||
$ ... | $ .25 | ||
41 | .50 | ||
81 | 1.00 | ||
122 | 1.50 | ||
162 | 2.00 | ||
203 | 2.50 | ||
243 | 3.00 | ||
284 | 3.50 | ||
324 | 4.00 | ||
365 | 4.50 | ||
405 | 5.00 | ||
486 | 6.00 | ||
567 | 7.00 | ||
648 | 8.00 | ||
729 | 9.00 | ||
810 | 10.00 | ||
891 | 11.00 | ||
972 | 12.00 | ||
1053 | 13.00 | ||
1134 | 14.00 | ||
1215 | 15.00 | ||
1296 | 16.00 | ||
1377 | 17.00 | ||
1458 | 18.00 | ||
1539 | 19.00 | ||
1620 | 20.00 | ||
1701 | 21.00 | ||
1782 | 22.00 | ||
1823 | 22.50 | ||
1863 | 23.00 | ||
1944 | 24.00 | ||
2025 | 25.00 | ||
2106 | 26.00 | ||
2187 | 27.00 | ||
2268 | 28.00 | ||
2349 | 29.00 | ||
2430 | 30.00 | ||
2511 | 31.00 | ||
2592 | 32.00 | ||
2673 | 33.00 | ||
2754 | 34.00 | ||
2834 | 35.00 | ||
2916 | 36.00 | ||
2997 | 37.00 | ||
3078 | 38.00 | ||
3159 | 39.00 | ||
3240 | 40.00 | ||
3321 | 41.00 | ||
3402 | 42.00 | ||
3483 | 43.00 | ||
3564 | 44.00 | ||
3645 | 45.00 | ||
3726 | 46.00 | ||
3807 | 47.00 | ||
3888 | 48.00 | ||
3969 | 49.00 | ||
4050 | 50.00 | ||
4131 | 51.00 | ||
4212 | 52.00 | ||
4293 | 53.00 | ||
4374 | 54.00 | ||
4455 | 55.00 | ||
4536 | 56.00 | ||
4617 | 57.00 | ||
4698 | 58.00 | ||
4779 | 59.00 | ||
4860 | 60.00 | ||
4941 | 61.00 | ||
5022 | 62.00 | ||
5103 | 63.00 | ||
5184 | 64.00 | ||
5265 | 65.00 | ||
5346 | 66.00 | ||
5427 | 67.00 | ||
5508 | 68.00 | ||
5589 | 69.00 | ||
5670 | 70.00 | ||
5751 | 71.00 | ||
5832 | 72.00 | ||
5913 | 73.00 | ||
5994 | 74.00 | ||
6075 | 75.00 | ||
6156 | 76.00 | ||
6237 | 77.00 | ||
6318 | 78.00 | ||
6399 | 79.00 | ||
6480 | 80.00 | ||
6561 | 81.00 | ||
6642 | 82.00 | ||
6723 | 83.00 | ||
6804 | 84.00 | ||
6885 | 85.00 | ||
6966 | 86.00 | ||
7047 | 87.00 | ||
7128 | 88.00 | ||
7209 | 89.00 | ||
7290 | 90.00 | ||
7371 | 91.00 | ||
7452 | 92.00 | ||
7533 | 93.00 | ||
7614 | 94.00 | ||
7695 | 95.00 | ||
7776 | 96.00 | ||
7857 | 97.00 | ||
7938 | 98.00 | ||
8019 | 99.00 | ||
8100 | 100.00 | ||
any amount in excess of | |||
8100 | 100.00 |
(d) For a defined benefit relief association in which the governing bylaws provide for a lump-sum service pension to a retiring member, the maximum lump-sum service pension amount for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter for the applicable specified period:
Minimum Average Amount of Available Financing per Firefighter |
Maximum Lump-Sum Service Pension Amount Payable for Each Year of Service | ||
$ ... | $ 10 | ||
11 | 20 | ||
16 | 30 | ||
23 | 40 | ||
27 | 50 | ||
32 | 60 | ||
43 | 80 | ||
54 | 100 | ||
65 | 120 | ||
77 | 140 | ||
86 | 160 | ||
97 | 180 | ||
108 | 200 | ||
131 | 240 | ||
151 | 280 | ||
173 | 320 | ||
194 | 360 | ||
216 | 400 | ||
239 | 440 | ||
259 | 480 | ||
281 | 520 | ||
302 | 560 | ||
324 | 600 | ||
347 | 640 | ||
367 | 680 | ||
389 | 720 | ||
410 | 760 | ||
432 | 800 | ||
486 | 900 | ||
540 | 1000 | ||
594 | 1100 | ||
648 | 1200 | ||
702 | 1300 | ||
756 | 1400 | ||
810 | 1500 | ||
864 | 1600 | ||
918 | 1700 | ||
972 | 1800 | ||
1026 | 1900 | ||
1080 | 2000 | ||
1134 | 2100 | ||
1188 | 2200 | ||
1242 | 2300 | ||
1296 | 2400 | ||
1350 | 2500 | ||
1404 | 2600 | ||
1458 | 2700 | ||
1512 | 2800 | ||
1566 | 2900 | ||
1620 | 3000 | ||
1672 | 3100 | ||
1726 | 3200 | ||
1753 | 3250 | ||
1780 | 3300 | ||
1820 | 3375 | ||
1834 | 3400 | ||
1888 | 3500 | ||
1942 | 3600 | ||
1996 | 3700 | ||
2023 | 3750 | ||
2050 | 3800 | ||
2104 | 3900 | ||
2158 | 4000 | ||
2212 | 4100 | ||
2265 | 4200 | ||
2319 | 4300 | ||
2373 | 4400 | ||
2427 | 4500 | ||
2481 | 4600 | ||
2535 | 4700 | ||
2589 | 4800 | ||
2643 | 4900 | ||
2697 | 5000 | ||
2751 | 5100 | ||
2805 | 5200 | ||
2859 | 5300 | ||
2913 | 5400 | ||
2967 | 5500 | ||
3021 | 5600 | ||
3075 | 5700 | ||
3129 | 5800 | ||
3183 | 5900 | ||
3237 | 6000 | ||
3291 | 6100 | ||
3345 | 6200 | ||
3399 | 6300 | ||
3453 | 6400 | ||
3507 | 6500 | ||
3561 | 6600 | ||
3615 | 6700 | ||
3669 | 6800 | ||
3723 | 6900 | ||
3777 | 7000 | ||
3831 | 7100 | ||
3885 | 7200 | ||
3939 | 7300 | ||
3993 | 7400 | ||
4047 | 7500 | ||
4101 | 7600 | ||
4155 | 7700 | ||
4209 | 7800 | ||
4263 | 7900 | ||
4317 | 8000 | ||
4371 | 8100 | ||
4425 | 8200 | ||
4479 | 8300 | ||
4533 | 8400 | ||
4587 | 8500 | ||
4641 | 8600 | ||
4695 | 8700 | ||
4749 | 8800 | ||
4803 | 8900 | ||
4857 | 9000 | ||
4911 | 9100 | ||
4965 | 9200 | ||
5019 | 9300 | ||
5073 | 9400 | ||
5127 | 9500 | ||
5181 | 9600 | ||
5235 | 9700 | ||
5289 | 9800 | ||
5343 | 9900 | ||
5397 | 10,000 | ||
new text begin 5451 new text end | new text begin 10,100 new text end | ||
new text begin 5505 new text end | new text begin 10,200 new text end | ||
new text begin 5559 new text end | new text begin 10,300 new text end | ||
new text begin 5613 new text end | new text begin 10,400 new text end | ||
new text begin 5667 new text end | new text begin 10,500 new text end | ||
new text begin 5721 new text end | new text begin 10,600 new text end | ||
new text begin 5775 new text end | new text begin 10,700 new text end | ||
new text begin 5829 new text end | new text begin 10,800 new text end | ||
new text begin 5883 new text end | new text begin 10,900 new text end | ||
new text begin 5937 new text end | new text begin 11,000 new text end | ||
new text begin 5991 new text end | new text begin 11,100 new text end | ||
new text begin 6045 new text end | new text begin 11,200 new text end | ||
new text begin 6099 new text end | new text begin 11,300 new text end | ||
new text begin 6153 new text end | new text begin 11,400 new text end | ||
new text begin 6207 new text end | new text begin 11,500 new text end | ||
new text begin 6261 new text end | new text begin 11,600 new text end | ||
new text begin 6315 new text end | new text begin 11,700 new text end | ||
new text begin 6369 new text end | new text begin 11,800 new text end | ||
new text begin 6423 new text end | new text begin 11,900 new text end | ||
new text begin 6477 new text end | new text begin 12,000 new text end | ||
new text begin 6531 new text end | new text begin 12,100 new text end | ||
new text begin 6585 new text end | new text begin 12,200 new text end | ||
new text begin 6639 new text end | new text begin 12,300 new text end | ||
new text begin 6693 new text end | new text begin 12,400 new text end | ||
new text begin 6747 new text end | new text begin 12,500 new text end | ||
new text begin 6801 new text end | new text begin 12,600 new text end | ||
new text begin 6855 new text end | new text begin 12,700 new text end | ||
new text begin 6909 new text end | new text begin 12,800 new text end | ||
new text begin 6963 new text end | new text begin 12,900 new text end | ||
new text begin 7017 new text end | new text begin 13,000 new text end | ||
new text begin 7071 new text end | new text begin 13,100 new text end | ||
new text begin 7125 new text end | new text begin 13,200 new text end | ||
new text begin 7179 new text end | new text begin 13,300 new text end | ||
new text begin 7233 new text end | new text begin 13,400 new text end | ||
new text begin 7287 new text end | new text begin 13,500 new text end | ||
new text begin 7341 new text end | new text begin 13,600 new text end | ||
new text begin 7395 new text end | new text begin 13,700 new text end | ||
new text begin 7449 new text end | new text begin 13,800 new text end | ||
new text begin 7503 new text end | new text begin 13,900 new text end | ||
new text begin 7557 new text end | new text begin 14,000 new text end | ||
new text begin 7611 new text end | new text begin 14,100 new text end | ||
new text begin 7665 new text end | new text begin 14,200 new text end | ||
new text begin 7719 new text end | new text begin 14,300 new text end | ||
new text begin 7773 new text end | new text begin 14,400 new text end | ||
new text begin 7827 new text end | new text begin 14,500 new text end | ||
new text begin 7881 new text end | new text begin 14,600 new text end | ||
new text begin 7935 new text end | new text begin 14,700 new text end | ||
new text begin 7989 new text end | new text begin 14,800 new text end | ||
new text begin 8043 new text end | new text begin 14,900 new text end | ||
new text begin 8097 new text end | new text begin 15,000 new text end | ||
any amount in excess of | |||
deleted text begin
5397
deleted text end
new text begin 8097 new text end |
deleted text begin
10,000
deleted text end
new text begin 15,000 new text end |
(e) For a defined benefit relief association in which the governing bylaws provide for a monthly benefit service pension as an alternative form of service pension payment to a lump-sum service pension, the maximum service pension amount for each pension payment type must be determined using the applicable table contained in this subdivision.
(f) If a defined benefit relief association establishes a service pension in compliance with the applicable maximum contained in paragraph (c) or (d) and the minimum average amount of available financing per active covered firefighter is subsequently reduced because of a reduction in fire state aid or because of an increase in the number of active firefighters, the relief association may continue to provide the prior service pension amount specified in its bylaws, but may not increase the service pension amount until the minimum average amount of available financing per firefighter under the table in paragraph (c) or (d), whichever applies, permits.
(g) No defined benefit relief association is authorized to provide a service pension in an amount greater than the largest applicable flexible service pension maximum amount even if the amount of available financing per firefighter is greater than the financing amount associated with the largest applicable flexible service pension maximum.
(h) The method of calculating service pensions must be applied uniformly for all years of active service. Credit must be given for all years of active service except for caps on service credit if so provided in the bylaws of the relief association.
new text begin This section is effective January 1, 2021. new text end
new text begin Laws 2018, chapter 211, article 14, section 29, new text end new text begin is repealed. new text end
new text begin This section is effective January 1, 2021. new text end
(a) If the municipality or the independent nonprofit firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement plan under chapter 353G, the executive director of the Public Employees Retirement Association must credit the fire state aid against future municipal contribution requirements under section 353G.08 and must notify the municipality or the independent nonprofit firefighting corporation of the fire state aid so credited at least annually.
(b) If new text begin (1) new text end the municipality or the independent nonprofit firefighting corporation is not covered by the voluntary statewide volunteer firefighter retirement plandeleted text begin ,deleted text end new text begin and is affiliated with a duly incorporated firefighters relief association, (2) the relief association has filed a financial report with the municipality pursuant to section 424A.014, subdivision 1 or 2, whichever applies, and (3) there is not an aid allocation agreement under section 477B.042 in effect, then new text end the treasurer of the municipality must, within 30 days after receipt, transmit the fire state aid to the treasurer of the deleted text begin duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality pursuant to section 424A.014, subdivision 1 or 2, whichever applies.deleted text end new text begin relief association. If clauses (1) and (2) are satisfied and there is an aid allocation agreement under section 477B.042 in effect, then fire state aid must be transmitted as described in that section.new text end If the relief association has not filed a financial report with the municipality, new text begin then, regardless of whether an aid allocation agreement is in effect, new text end the treasurer of the municipality must delay transmission of the fire state aid to the relief association until the complete financial report is filed.
(c) The treasurer of the municipality must deposit the fire state aid money in the municipal treasury if (1) the municipality or independent nonprofit firefighting corporation is not covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no relief association organized, (3) the association has dissolved, or (4) the association has been removed as trustees of state aid. The money may be disbursed from the municipal treasury only for the purposes and in the manner set forth in section 424A.08 or 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.
new text begin This section is effective for aids payable in 2021 and thereafter. new text end
new text begin (a) This section applies to fire state aid payable each year under section 477B.04, subdivision 3, paragraph (b), if, during the prior year, the municipality or independent nonprofit firefighting corporation: new text end
new text begin (1) employs one or more volunteer firefighters covered by the relief association affiliated with the municipality or independent nonprofit firefighting corporation under chapter 424A; and new text end
new text begin (2) contributes on behalf of one or more firefighters to the public employees police and fire retirement plan under chapter 353. new text end
new text begin (b) This section does not apply to police and firefighter supplemental state aid under section 423A.022. new text end
new text begin (a) The municipality or independent nonprofit firefighting corporation and the affiliated relief association may agree to allocate fire state aid between the relief association and the public employees police and fire retirement plan by entering into an aid allocation agreement described in subdivision 3. new text end
new text begin (b) If an aid allocation agreement has been filed with the state auditor and is in effect, then within 30 days of receipt of the fire state aid the treasurer of the municipality must transmit to the relief association the amount of the fire state aid as determined in the aid allocation agreement. If a municipality receives fire state aid on behalf of an independent nonprofit firefighting corporation, the municipality must also transmit any remaining fire state aid to the independent nonprofit firefighting corporation. new text end
new text begin (c) The fire state aid allocated to the municipality or independent nonprofit firefighting corporation may only be disbursed for the payment of employer contributions for firefighters covered by the public employees police and fire retirement plan or for contributions to the relief association and must be disbursed within 18 months of receipt by the municipality or independent nonprofit firefighting corporation. new text end
new text begin (a) An aid allocation agreement is a written agreement that meets the following requirements: new text end
new text begin (1) the agreement specifies: new text end
new text begin (i) the percentage of the fire state aid, a dollar amount, or a formula for determining the amount of fire state aid that will be transmitted to the relief association annually; and new text end
new text begin (ii) the period of time covered by the agreement and the date on which the agreement expires; and new text end
new text begin (2) the agreement has been signed by: new text end
new text begin (i) an individual authorized to sign on behalf of the municipality or independent nonprofit firefighting corporation; and new text end
new text begin (ii) the president of the relief association or its representative duly appointed for the purposes of this section. new text end
new text begin (b) An aid allocation agreement is not effective unless filed with the state auditor under subdivision 5. new text end
new text begin (a) The parties to the agreement may modify or terminate the aid allocation agreement, provided that the modification or termination is in writing and signed by the parties. new text end
new text begin (b) If the amount of fire state aid paid to a municipality or independent nonprofit firefighting corporation by the commissioner changes by an amount greater than 50 percent of the prior year's amount, then the aid allocation agreement may be terminated by either party to the agreement by providing written notice of termination to the other party. new text end
new text begin (c) Unless the aid allocation agreement provides otherwise, termination is effective for the fire state aids payable in the calendar year after notice of termination has been given. new text end
new text begin (a) By March 1 of each year in which fire state aid is to be allocated, the municipality or independent nonprofit firefighting corporation must file a copy of the aid allocation agreement or modified agreement with the state auditor. new text end
new text begin (b) If an aid allocation agreement terminates by its own terms or for any other reason, the municipality or independent nonprofit firefighting corporation must notify the Office of the State Auditor in writing within 30 days after the termination date. new text end
new text begin (c) If the municipality or independent nonprofit firefighting corporation fails to file by the deadline in paragraph (a), fire state aid payments must not be allocated, but must be transmitted to the relief association until the agreement has been filed. If the state auditor determines that an aid allocation agreement does not meet the requirements of subdivision 3, any future fire state aid payments must be transmitted to the relief association by the municipality until the municipality files with the state auditor an aid allocation agreement that satisfies the requirements under subdivision 3. new text end
new text begin This section is effective for aids payable in 2021 and thereafter. new text end
new text begin (a) Notwithstanding Minnesota Statutes, section 477B.042, subdivision 3, a written document is an aid allocation agreement for the purposes of Minnesota Statutes, sections 477B.04, subdivision 3, and 477B.042, and remains effective as an aid allocation agreement until the document ceases to be effective according to its own terms or is modified, if the document: new text end
new text begin (1) determines the amount of fire state aid that will be transmitted by a municipality to its affiliated fire relief association; new text end
new text begin (2) is effective under existing law on the day before the effective date of this section; and new text end
new text begin (3) is a provision of a relief association's bylaws that was jointly approved by the relief association and its affiliated municipality or a court-ordered settlement agreement entered into by a relief association and its affiliated municipality. 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, the terms defined in this subdivision have the meanings given them unless the context clearly indicates otherwise. new text end
new text begin (b) "Agreement" means an agreement or contract between the city of Eagan and the Eagan Firefighters Relief Association which specifies an amount of money that the city will contribute to the relief association annually and permits the city to deposit fire state aid in the city treasury. new text end
new text begin (c) "Fire state aid" means fire state aid paid to the city of Eagan by the commissioner of revenue under Minnesota Statutes, section 477B.04, and does not include supplemental aid. new text end
new text begin (d) "Relief association" means the Eagan Firefighters Relief Association. new text end
new text begin (e) "Supplemental aid" means police and firefighter retirement supplemental state aid under Minnesota Statutes, section 423A.022. new text end
new text begin (a) Notwithstanding any law to the contrary, if an agreement is in effect, then for the term of the agreement the city of Eagan is not required to transmit fire state aid to the relief association except as provided for in this section. Following receipt from the commissioner of revenue of fire state aid, the city of Eagan must: new text end
new text begin (1) disburse fire state aid only as provided in clause (2) or for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under Minnesota Statutes, section 353.65; and new text end
new text begin (2) by the date required under the agreement, transmit to the relief association no less than the amount required under the agreement. new text end
new text begin (b) The city of Eagan must transmit any supplemental aid it receives to the relief association as required under Minnesota Statutes, section 423A.022. Supplemental aid transmitted to the relief association may be credited against the amount the city is obligated to pay under the agreement. new text end
new text begin (c) If any fire state aid is received by the city of Eagan and an agreement in not in effect, then the fire state aid must be transmitted to the relief association in a manner consistent with Minnesota Statutes, section 477B.04, and other applicable law. new text end
new text begin This section expires June 30, 2022. new text end
new text begin This section is effective the day following final enactment and applies retroactively from January 1, 2020. new text end
new text begin Laws 1980, chapter 607, article xv, section 13, 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
new text begin "Board of trustees" means the governing board of a relief association. new text end
new text begin "Defined benefit plan" means a retirement plan that provides a retirement benefit that is a lump sum, the amount of which is determined by multiplying the applicable lump-sum service pension amount under section 424A.02, subdivision 3, paragraph (d), by years of service, or a monthly pension, the amount of which is determined by multiplying the applicable monthly pension amount under section 424A.02, subdivision 3, paragraph (c), by years of service. A defined benefit plan may provide both a lump sum and a monthly pension. new text end
new text begin "Defined benefit relief association" means a relief association that has established and administers a retirement plan that is a defined benefit plan. new text end
new text begin "Defined contribution plan" means a retirement plan that provides a retirement benefit based on the member's individual account balance. new text end
new text begin "Defined contribution relief association" means a relief association that has established and administers a retirement plan that is a defined contribution plan. new text end
new text begin (a) "Member" means a person: new text end
new text begin (1) who is a member of a fire department or independent nonprofit firefighting corporation; new text end
new text begin (2) who has been credited with at least one year of service toward a retirement benefit under the retirement plan of a relief association that is affiliated with the fire department or independent nonprofit firefighting corporation; and new text end
new text begin (3) whose retirement benefit under the retirement plan has not yet been distributed in a lump sum or has not yet begun to be distributed in periodic installments or as a monthly pension. new text end
new text begin (b) A member may be an active firefighter, an inactive firefighter, or a former firefighter who has a benefit under the retirement plan but has not become eligible to receive the benefit. new text end
new text begin "Municipality" means a city or township that has established a fire department with which the relief association is affiliated, a city or township that has entered into a contract with an independent nonprofit firefighting corporation with which the relief association is affiliated, or a city or township that has entered into a joint powers agreement under section 471.59 with one or more cities or townships to operate a fire department with which the relief association is affiliated. A reference in chapter 424B to municipality in connection with a power that may be exercised by or a requirement that is imposed on the municipality means each city or township that is party to a joint powers agreement, unless the joint powers agreement identifies one city or township with the authority to act on behalf of the other parties to the agreement or with the responsibility for fulfilling requirements imposed on the other parties to the agreement. new text end
new text begin "Other benefit recipient" means: new text end
new text begin (1) a person who is entitled to receive all or a portion of the benefit of a member under a retirement plan due to the person having one of the following relationships to the member: new text end
new text begin (i) the member's surviving spouse; new text end
new text begin (ii) the member's former spouse who is the alternate payee under a state domestic relations order that meets the requirements of section 414(p) of the Internal Revenue Code or who is a recipient of a court-ordered distribution of marital property, as provided in section 518.58; or new text end
new text begin (iii) a nonspousal beneficiary of the member; or new text end
new text begin (2) the member's estate. new text end
new text begin (a) "Relief association" or "volunteer firefighter relief association" means a nonprofit corporation incorporated under or governed by chapter 317A that is a governmental entity that receives and manages public money to provide retirement benefits for individuals providing the governmental services of firefighting and emergency first response, is subject to chapter 424A, and is affiliated with: new text end
new text begin (1) a fire department established by municipal ordinance; new text end
new text begin (2) an independent nonprofit firefighting corporation incorporated under chapter 317A; or new text end
new text begin (3) a fire department operated as or by a joint powers entity. new text end
new text begin (b) Relief association or volunteer firefighters relief association does not mean the voluntary statewide volunteer firefighter retirement plan governed by chapter 353G. new text end
new text begin "Required contribution" means a contribution made by the municipality to the special fund of a relief association in satisfaction of a minimum municipal obligation required under section 424A.092 or 424A.093. new text end
new text begin "Retiree in pay status" means a former member who left employment or service as an active firefighter, has reached at least age 50, and is receiving a monthly pension or periodic installment payments from a retirement plan. new text end
new text begin "Retirement benefit" means the benefit to which a member is entitled under a retirement plan. new text end
new text begin "Retirement plan" means the defined benefit plan or defined contribution plan established and administered by a relief association. new text end
new text begin "Surplus" means the amount by which the assets in a defined benefit plan exceed accrued liabilities. new text end
new text begin (a) Notwithstanding any laws to the contrary, this section applies to: new text end
new text begin (1) the termination of a retirement plan established and administered by a relief association, whether or not the relief association is also dissolved or eliminated; and new text end
new text begin (2) the dissolution of a relief association that is not consolidating with another relief association under sections 424B.01 to 424B.10. new text end
new text begin This section does not apply to the dissolution of a relief association or the termination of a retirement plan that occurs due to the change in retirement coverage from a retirement plan administered by a relief association to the Public Employees Retirement Association statewide volunteer firefighter plan under section 353G.06. new text end
new text begin (b) To terminate a retirement plan, the board of trustees must comply with subdivisions 3, 5 to 11, and, if desired, subdivision 4. new text end
new text begin (c) To dissolve a relief association, the board of trustees of the relief association must: new text end
new text begin (1) terminate the retirement plan in accordance with this section; new text end
new text begin (2) determine all legal obligations of the special and general funds of the relief association, as required by subdivision 5; new text end
new text begin (3) take the actions required by subdivision 12; and new text end
new text begin (4) comply with the requirements governing dissolution of nonprofit corporations under chapter 317A. new text end
new text begin (d) A relief association that terminates its retirement plan must liquidate its special fund as provided in subdivision 8, but need not liquidate its general fund if the relief association is not being dissolved. new text end
new text begin (a) A relief association is dissolved and the retirement plan administered by the relief association is terminated automatically if: new text end
new text begin (1) the fire department affiliated with a relief association is dissolved by action of the governing body of the municipality in which the fire department is located or by the governing body of the independent nonprofit firefighting corporation, whichever applies; or new text end
new text begin (2) the fire department affiliated with a relief association has terminated the employment or services of all active firefighters covered by the relief association. new text end
new text begin (b) An involuntary termination of a relief association under this subdivision is effective on the December 31 that is at least eight months after the date on which the fire department is dissolved or the termination of employment or services of all active firefighters occurs. new text end
new text begin (c) The retirement plan administered by a relief association is terminated automatically if the relief association is dissolved, effective on the date of the dissolution of the relief association. new text end
new text begin (a) Unless subdivision 2 applies, the effective date of the termination of a retirement plan is the effective date of the dissolution of the relief association or, if the relief association is not being dissolved, the end of the calendar year in which the employment or services of all active firefighters has been terminated, unless the board of trustees of the relief association approves a different termination date. new text end
new text begin (b) As of the earlier of the retirement plan termination date or the date on which the employment or services of all active firefighters have been terminated, each member becomes fully (100 percent) vested in the member's retirement benefit under the retirement plan, notwithstanding any bylaws or laws to the contrary, except as provided in paragraph (c). new text end
new text begin (c) If the relief association is a defined contribution relief association, the account of each member who becomes 100 percent vested under paragraph (b) shall include an allocation of any forfeiture that is required, under the bylaws of the relief association, to occur on or as of the end of the calendar year during which the termination of the retirement plan is effective, if the member is entitled to an allocation of forfeitures under the bylaws. Any account so forfeited shall not be included in the retirement benefits that become 100 percent vested under paragraph (b). new text end
new text begin (a) Notwithstanding section 424A.02, subdivision 10, the board of trustees of a relief association may increase the benefit amount under a defined benefit relief association without the consent of the affiliated municipality or independent nonprofit firefighting corporation, as provided in this subdivision. new text end
new text begin (b) If the retirement plan being terminated is a defined benefit plan, the board of trustees may approve an amendment to the bylaws of the relief association to increase the lump-sum or monthly pension amount or both the lump and monthly pension amount, if the relief association offers both, up to 125 percent of the largest maximum lump-sum service pension amount or service pension amount payable per month in effect under paragraphs (c) or (d), respectively, of section 424A.02, subdivision 3, without regard to the relief association's minimum average amount of available financing per firefighter. The amount by which the lump-sum or monthly pension amount is increased must not cause the liabilities of the retirement plan to exceed the value of the assets, after taking into account full vesting as required under subdivision 3 and any administrative expenses. new text end
new text begin (c) The board of trustees shall specify whether the benefit increase will apply to only members active as of the date of the termination of the retirement plan or whether the benefit increase will apply to all members, including members who are not active as of the plan termination date. new text end
new text begin (a) The board of trustees shall determine the following as of the date of termination of the retirement plan: new text end
new text begin (1) the fair market value of the assets of the special fund; new text end
new text begin (2) the present value of each member's accrued benefit, taking into account full vesting under subdivision 3 and any increased lump-sum or monthly benefit level approved under subdivision 4; new text end
new text begin (3) the present value of any benefit remaining to be paid to each retiree in pay status, if any; and new text end
new text begin (4) administrative expenses incurred or reasonably anticipated to be incurred through the date on which all retirement benefits have been distributed or transferred or, if later, the effective date of the dissolution of the relief association. new text end
new text begin (b) The board of trustees shall compile a schedule that includes the following information: new text end
new text begin (1) the name of each member and retiree in pay status to whom a benefit or pension is or will be owed; new text end
new text begin (2) the name of each other benefit recipient to whom a benefit or pension is or will be owed; and new text end
new text begin (3) for each individual described in clauses (1) and (2), the amount of the benefit or pension to which the individual is entitled under the bylaws of the relief association, taking into account the changes required or permitted by this section, the corresponding number of years of service on which the benefit or pension is based, and the earliest date on which the benefit or pension would have been payable under the bylaws of the relief association. new text end
new text begin (c) If the relief association is dissolving, in addition to the determination under paragraph (a) for the retirement plan, the board of trustees shall determine, as of the effective date of the dissolution of the relief association, the legal obligations of the general fund of the relief association. new text end
new text begin To minimize the risk of investment losses between the termination date and the date benefits will begin to be distributed, the board of trustees shall invest the assets in the special fund in low-risk investments, to the extent consistent with its fiduciary duty under chapter 356A. new text end
new text begin (a) If the retirement plan is a defined benefit plan and if, after completing the determination of assets, liabilities, and administrative expenses under subdivision 5, there is a surplus, the board of trustees shall transfer to the affiliated municipality the lesser of (1) the amount of the surplus, or (2) the sum of all required contributions, without investment earnings or interest thereon, made by the municipality to the relief association during the year in which the termination of the retirement plan occurs or during the preceding nine years. new text end
new text begin (b) If the affiliated municipality did not make any required contributions to the relief association during the current or preceding nine years or if, after the transfer described in paragraph (a), there is surplus remaining, the relief association and the municipality will mutually agree on an allocation between them of the remaining surplus. new text end
new text begin (c) If, within 180 days of the date of termination of the retirement plan, the municipality and relief association have not reached an agreement on the allocation of the surplus under paragraph (b), then 50 percent of the surplus shall be retained by the relief association and 50 percent of the surplus shall be transferred to the affiliated municipality. new text end
new text begin (d) Any surplus retained by the relief association under paragraph (c) shall be allocated among all members eligible to share in the surplus in the same proportion that the present value of the accrued benefit for each eligible member bears to the total present value of the accrued benefits of all members eligible to share in the surplus, and each eligible member's benefit, as determined under subdivision 5, paragraph (a), clause (2), shall be increased by the member's share of the surplus. The board of trustees shall determine eligibility to share in the surplus, which may include any of the following, in addition to firefighters active as of the date on which members became 100 percent vested: new text end
new text begin (1) inactive firefighters; new text end
new text begin (2) former firefighters with a deferred benefit under the retirement plan; and new text end
new text begin (3) retirees in pay status and any other firefighters who, within the last three years or such other number of years as determined by the board of trustees, separated from active service and (i) received their retirement benefit, or (ii) began to receive distribution of a retirement benefit in installments or as a monthly pension. new text end
new text begin If the board of trustees decides to include the individuals described in clause (3) in the allocation of the surplus, the board of trustees shall modify the method for allocating the surplus to take into account such individuals. new text end
new text begin (e) Any amount of surplus transferred to the affiliated municipality under this subdivision may only be used for the purposes described in section 424A.08, paragraph (a) or (b). new text end
new text begin (a) The board of trustees shall liquidate the assets of the special fund and pay retirement benefits and administrative expenses under the retirement plan within 210 days after the effective date of the termination of the retirement plan. new text end
new text begin (b) If the retirement plan is a defined benefit plan that pays lump-sum benefits or a defined contribution plan, without regard to whether the member has attained age 50, each member and other benefit recipient shall be permitted to elect an immediate distribution or a direct rollover of the member's benefit to an eligible retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the benefit is an eligible rollover distribution as defined in section 356.635, subdivisions 4 and 5. new text end
new text begin (c) If the retirement plan is a defined benefit plan that pays monthly pension benefits, the board of trustees shall, at the election of the member or other benefit recipient, purchase an annuity contract under section 424A.015, subdivision 3, naming the member or other benefit recipient, as applicable, as the insured or distribute a lump sum amount that is equal to the present value of the monthly pension benefits to which the member or other benefit recipient is entitled. If an annuity is elected by the member or other benefit recipient, the annuity shall provide for commencement at a date elected by the insured, to be paid as an annuity for the life of the insured. Legal title to the annuity contract shall be transferred to the insured. If a lump sum is elected, the option under paragraph (b) to take an immediate distribution or a direct rollover shall apply. new text end
new text begin (d) The board of trustees shall complete the distribution of all assets of the special fund by making any remaining distributions or transfers as required under subdivision 9 on behalf of members or other benefit recipients who cannot be located or are unresponsive and paying any remaining administrative expenses related to the termination of the plan. new text end
new text begin (a) For purposes of this subdivision, the terms defined in this subdivision have the meanings given them. new text end
new text begin (b) "Retirement benefit" means: new text end
new text begin (1) the member's account balance if the retirement plan is a defined contribution plan; new text end
new text begin (2) the member's lump sum benefit if the retirement plan is a defined benefit plan that pays a lump sum; or new text end
new text begin (3) an amount equal to the present value of the member's benefit if the retirement plan is a defined benefit plan that pays a monthly annuity. new text end
new text begin (c) "Individual retirement account" means an account that satisfies the requirements of section 408(a) of the Internal Revenue Code which is established by an officer of the relief association in the name of the member or other benefit recipient at a federally insured financial institution. new text end
new text begin (d) If the board of trustees cannot locate a member or other benefit recipient or receives no response to an offer to distribute a retirement benefit, the board of trustees shall make a diligent effort to obtain a current address or other contact information as follows: new text end
new text begin (1) send a notice to the address on file for the member or other benefit recipient using certified mail; new text end
new text begin (2) check with the Minnesota State Fire Department Association, the municipality, and any other employer of the member; new text end
new text begin (3) check with the member's designated beneficiary on file with the relief association; and new text end
new text begin (4) use one or more of the Internet search tools that are free of charge. new text end
new text begin (e) If the board of trustees is unable to locate the member or other benefit recipient after taking actions described in paragraph (d), the board of trustees shall transfer the retirement benefit to an individual retirement account or consider the retirement benefit abandoned and deposit funds in the amount of the retirement benefit with the commissioner of commerce under chapter 345. The board of trustees may deposit a retirement benefit with the commissioner of commerce under chapter 345, notwithstanding any laws to the contrary, including Minnesota Statutes, section 345.381. new text end
new text begin Within 60 days after the distribution of benefits under subdivision 8, the municipality or independent nonprofit firefighting corporation with which the fire department is affiliated shall pay supplemental benefits under section 424A.10 to each member and survivor who satisfies the requirements of section 424A.10, subdivision 2, if the member is at least age 50. The commissioner of revenue shall reimburse the municipality or independent nonprofit firefighting corporation for all supplemental benefits paid as provided in section 424A.10, subdivision 3. new text end
new text begin The board of trustees shall notify the commissioner of revenue and the state auditor that the retirement plan is being terminated no later than 30 days before the effective date of the termination of the retirement plan and provide any information the commissioner or state auditor may require. new text end
new text begin The relief association is dissolved effective on the date that the board of trustees completes the following actions: new text end
new text begin (1) prepares and files with the state auditor final audited financial statements, pursuant to section 424A.014, subdivision 1, or, if applicable, the certified financial statement, pursuant to section 424A.014, subdivision 2; new text end
new text begin (2) liquidates the general fund and settles all legal obligations of the general fund as determined under subdivision 5; new text end
new text begin (3) transfers the records of the relief association to the chief administrative officer of the affiliated municipality; and new text end
new text begin (4) notifies the commissioner of revenue, the state auditor, and the secretary of state of the dissolution no later than 30 days before the effective date of the dissolution. new text end
new text begin Minnesota Statutes 2018, sections 424B.20; and 424B.21, new text end new text begin are repealed. new text end
new text begin Sections 1 to 16 are effective the day following final enactment. new text end
new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapters 424A, 424B, or any other law to the contrary, the retirement plan administered by the Brooklyn Park Firefighters' Relief Association is terminated and the relief association is dissolved in accordance with the provisions of this section following the payment by the relief association of all benefits, the settlement of all legal obligations, and the distribution of all remaining assets of the relief association. new text end
new text begin (b) For the purposes of this section: new text end
new text begin (1) "alternate payee" means a spouse, former spouse, child, or other dependent of a volunteer firefighter, who is recognized by a divorce decree or domestic relations order as having a right to receive all or a portion of the volunteer firefighter's account; new text end
new text begin (2) "city" means the city of Brooklyn Park; new text end
new text begin (3) "relief association" means the Brooklyn Park Firefighters' Relief Association; new text end
new text begin (4) "retirement plan" means the defined contribution retirement plan sponsored, administered, and maintained by the relief association; and new text end
new text begin (5) "volunteer firefighter" means a volunteer firefighter, as defined in Minnesota Statutes, section 424A.001, subdivision 10, employed or previously employed by the city and who has an account in the retirement plan. new text end
new text begin (c) The retirement plan is terminated and the volunteer firefighters become 100 percent vested in their accounts in the retirement plan effective on December 31, 2019, or, if earlier, the date that the city terminates the employment of the last of its volunteer firefighters. For purposes of this section, the city will be considered to have terminated the employment of a volunteer firefighter even if the city hires or continues to employ the volunteer firefighter as a part-time or full-time city employee performing firefighting or other services. new text end
new text begin (d) The account of each volunteer firefighter who becomes fully vested under paragraph (c) shall include an allocation of any forfeiture that is required to occur on December 31, 2019, if the volunteer firefighter is entitled to such allocation under the bylaws of the relief association. Any account so forfeited shall not be included in the accounts that become fully vested under paragraph (c). new text end
new text begin (e) The relief association is dissolved effective on the date that the relief association completes the following actions: new text end
new text begin (1) prepares and files with the Office of the State Auditor final audited financial statements, pursuant to Minnesota Statutes, section 424A.014, subdivision 1; new text end
new text begin (2) satisfies the requirements of Minnesota Statutes, section 424B.20, subdivision 3, including the settlement of legal obligations owed to any party to the extent authorized by Minnesota Statutes, section 424A.05, subdivision 3; new text end
new text begin (3) distributes the account of each volunteer firefighter, regardless of the age of the volunteer firefighter, and each alternate payee as soon as possible after enactment. Distribution must be made in the form of a lump sum payment or direct rollover, at the election of the volunteer firefighter or alternate payee; and new text end
new text begin (4) satisfies the requirements of Minnesota Statutes, section 424B.20, subdivision 5, including the transfer of records to the city and notice to the commissioner of revenue, the state auditor, and the secretary of state. new text end
new text begin (f) Within 60 days after the distribution of the accounts under paragraph (e), clause (3), the city shall (i) pay a supplemental lump sum benefit to each volunteer firefighter and survivor who satisfies the requirements of Minnesota Statutes, section 424A.10, subdivision 2, if the volunteer firefighter is at least age 50, and (ii) reimburse the relief association for any supplemental lump sum benefits paid by the relief association during 2020. new text end
new text begin (g) The city shall file for and the commissioner of revenue shall reimburse the city pursuant to Minnesota Statutes, section 424A.10, subdivision 3, for the supplemental benefits paid or reimbursed under paragraph (f). new text end
new text begin (h) The city is subject to Minnesota Statutes, section 477B.04, subdivision 3, paragraph (c), for calendar year 2020 with respect to any fire state aid it receives, including the requirement that it disburse the fire state aid solely for the purposes authorized by Minnesota Statutes, section 424A.08. new text end
new text begin This section is effective the day after the Brooklyn Park City Council and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
new text begin (a) For purposes of this section, the terms defined in this section have the meanings given them. new text end
new text begin (b) "Account balance" means the account established for a member under the Ramsey relief association, to which an allocation of fire state aid, contributions, forfeitures, and net investment earnings have been credited for every year the member was eligible to receive such funding under the bylaws of the Ramsey relief association. new text end
new text begin (c) "Inactive or deferred Nowthen firefighter" means a Ramsey firefighter who, when the firefighter was an active firefighter, was assigned to the Nowthen fire station and whose account in the Ramsey relief association has not yet been distributed or forfeited as provided under the bylaws of the Ramsey relief association. new text end
new text begin (d) "Joint powers agreement" means the city of Ramsey and city of Nowthen joint powers fire protection agreement. new text end
new text begin (e) "Nowthen firefighter" means a firefighter who is a member of the Ramsey relief association and who is hired to provide firefighting services to the city of Nowthen by the city of Nowthen or a municipality with which the city of Nowthen enters into a joint powers agreement or an independent nonprofit firefighting corporation that provides firefighting services to the city of Nowthen. new text end
new text begin (f) "Nowthen relief association" means a volunteer firefighters relief association to be established by the city of Nowthen or a volunteer firefighters relief association affiliated with a municipality with which the city of Nowthen enters into a joint powers agreement or a volunteer firefighters relief association affiliated with an independent nonprofit firefighting corporation that provides firefighting services to the city of Nowthen or an account in the Public Employees Retirement Association statewide volunteer firefighter plan, as directed by the city of Nowthen. new text end
new text begin (g) "Other benefit recipient of a Nowthen firefighter" means: new text end
new text begin (1) a person who is entitled to receive all or a portion of a Nowthen firefighter's account under the Ramsey relief association due to the person having one of the following relationships to the Nowthen firefighter: new text end
new text begin (i) surviving spouse; new text end
new text begin (ii) former spouse who is the alternate payee under a state domestic relations order that meets the requirements of section 414(p) of the federal Internal Revenue Code of 1986, as amended, or who is a recipient of a court-ordered distribution of marital property, as provided in Minnesota Statutes, section 518.58; or new text end
new text begin (iii) nonspousal beneficiary; or new text end
new text begin (2) the estate of a Nowthen firefighter. new text end
new text begin (h) "Ramsey firefighter" means a firefighter who is or was an employee of the city of Ramsey, is a member of the Ramsey relief association, and provides or provided firefighting services to the city of Ramsey or the city of Nowthen. new text end
new text begin (i) "Ramsey relief association" means the city of Ramsey Volunteer Firefighters' Relief Association. new text end
new text begin This section applies, notwithstanding any provision of Minnesota Statutes, chapter 424A or 424B, if all of the following occurs: new text end
new text begin (1) the joint powers agreement expires or is terminated by either party; new text end
new text begin (2) the city of Nowthen establishes a fire department or enters into a joint powers agreement with another municipality to provide firefighting services for the city of Nowthen or enters into an agreement with an independent nonprofit firefighting corporation to provide firefighting services to the city of Nowthen; new text end
new text begin (3) the city of Nowthen establishes a volunteer firefighters relief association or the municipality with which the city of Nowthen enters into a joint powers agreement is affiliated with a volunteer firefighters relief association or the independent nonprofit firefighting corporation with which the city of Nowthen enters into an agreement to provide firefighting services for the city of Nowthen is affiliated with a volunteer firefighters relief association or the city of Nowthen joins the Public Employees Retirement Association statewide volunteer firefighter plan; and new text end
new text begin (4) the Nowthen relief association includes as members one or more firefighters whose employment with the city of Ramsey terminates on or before December 31, 2021, and who are hired as firefighters by: new text end
new text begin (i) the city of Nowthen; new text end
new text begin (ii) a municipality with which the city of Nowthen enters into a joint powers agreement; or new text end
new text begin (iii) an independent nonprofit firefighting corporation that provides firefighting services to the city of Nowthen. new text end
new text begin (a) By the sixtieth day after the satisfaction of the conditions described in subdivision 2, the Ramsey relief association shall transfer to the Nowthen relief association the account balance for each Nowthen firefighter, each inactive or deferred Nowthen firefighter, and any other benefit recipient of a Nowthen firefighter in accordance with this subdivision. new text end
new text begin (b) If the city of Ramsey terminates the employment of one or more firefighters who become Nowthen firefighters during 2020, the Ramsey relief association shall transfer, by the end of February 2021, the account balances for each Nowthen firefighter, each inactive or deferred Nowthen firefighter, and each other benefit recipient of a Nowthen firefighter. The transfers shall occur after the accounting has been completed for the 2020 calendar year and all fire state aid, contributions, forfeitures, net investment income, and administrative expenses during 2020 and as of the 2020 calendar year end have been credited, in accordance with the bylaws of the Ramsey relief association. Notwithstanding any provision in the bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is terminated during 2020 shall be considered for purposes of allocating fire state aid, contributions, and forfeitures as having worked 12 active service months for 2020. new text end
new text begin (c) If the city of Ramsey terminates the employment of one or more firefighters who become Nowthen firefighters during 2021, the Ramsey relief association shall transfer, by the end of February 2022, the account balances for each Nowthen firefighter and for any inactive or deferred Nowthen firefighter and any other benefit recipient of a Nowthen firefighter whose account balance was not transferred under paragraph (b) in 2021. The transfers shall occur after the accounting has been completed for the 2021 calendar year and all fire state aid, contributions, forfeitures, net investment income, and administrative expenses during 2021 and as of the 2021 calendar year end have been credited, in accordance with the bylaws of the Ramsey relief association. Notwithstanding any provision in the bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is terminated during 2021 shall be considered for purposes of allocating fire state aid, contributions, and forfeitures as having worked 12 active service months for 2021. new text end
new text begin (d) The transfer of account balances under this subdivision shall be considered authorized disbursements from the special fund of the Ramsey relief association for purposes of Minnesota Statutes, section 424A.05, subdivision 3. new text end
new text begin (e) The Ramsey relief association shall transfer records to the Nowthen relief association regarding service, vesting service, and account activity for each Nowthen firefighter, inactive or deferred Nowthen firefighter, or other benefit recipient whose account balance is transferred. new text end
new text begin When the Ramsey relief association transfers the account balances under subdivision 3, the Ramsey relief association shall also transfer a proportionate share of the assets in the general fund of the Ramsey relief association to the general fund of the Nowthen relief association. The proportion shall be equal to the ratio that the total value of the account balances transferred to the Nowthen relief association bears to the total value of all account balances in the Ramsey relief association on the day immediately preceding the date of transfer. new text end
new text begin If subdivision 3, paragraph (b), applies, the city of Ramsey shall transfer to the city of Nowthen a portion of the 2021 fire state aid received by the city of Ramsey on or about October 1, 2021, based on 2020 property value and population. The portion to be transferred shall be equal to the amount determined by the commissioner of revenue to be attributable to the estimated market value of property and population in the city of Nowthen fire service area, as a percentage of the total fire state aid paid to the city of Ramsey on or about October 1, 2021. new text end
new text begin The Nowthen relief association shall credit each firefighter whose account balance is transferred from the Ramsey relief association to the Nowthen relief association with the same number of years of service credit with which the firefighter had been credited under the Ramsey relief association for vesting and any other purpose for which service credit is granted. Such service credit shall be applied to retain the firefighter's vesting percentage in the account balance that was transferred and shall be applied toward the firefighter's vesting percentage in all funds allocated to the firefighter's account in the Nowthen relief association after the transfer. new text end
new text begin (a) This subdivision applies to any Ramsey firefighter: new text end
new text begin (1) who is assigned to the Nowthen fire station; new text end
new text begin (2) whose employment is terminated by the city of Ramsey on or before December 31, 2021; and new text end
new text begin (3) who is not hired by the city of Nowthen. new text end
new text begin (b) Notwithstanding any law or provision in the bylaws of the Ramsey relief association, the Ramsey relief association shall fully (100 percent) vest the Ramsey firefighter in the firefighter's account in the Ramsey relief association as of the date the Ramsey firefighter's employment is terminated. new text end
new text begin (c) The Ramsey firefighter shall be considered an inactive or deferred Nowthen firefighter for all purposes under subdivision 3. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin "Board of trustees" means the governing board of a relief association. new text end
new text begin "Conversion effective date" means the date on which the assets of the defined benefit plan have been allocated to accounts under the defined contribution plan. new text end
new text begin "Defined benefit plan" means a retirement plan that provides a retirement benefit that is a lump sum, the amount of which is determined by multiplying the applicable lump-sum service pension amount under section 424A.02, subdivision 3, paragraph (d), by years of service, or a monthly pension, the amount of which is determined by multiplying the applicable monthly pension amount under section 424A.02, subdivision 3, paragraph (c), by years of service. A defined benefit plan may provide both a lump-sum benefit and a monthly pension. new text end
new text begin "Defined benefit relief association" means a relief association that has established and administers a retirement plan that is a defined benefit plan. new text end
new text begin "Defined contribution plan" means a retirement plan that provides a retirement benefit based on the member's individual account balance. new text end
new text begin "Defined contribution relief association" means a relief association that has established and administers a retirement plan that is a defined contribution plan. new text end
new text begin "Firefighting corporation" means an independent nonprofit firefighting corporation that is organized under chapter 317A and that operates primarily for firefighting purposes. new text end
new text begin (a) "Member" means a person: new text end
new text begin (1) who is a member of a fire department or independent nonprofit firefighting corporation; new text end
new text begin (2) who has been credited with at least one year of service toward a retirement benefit under the retirement plan of a relief association that is affiliated with the fire department or independent nonprofit firefighting corporation; and new text end
new text begin (3) whose retirement benefit under the retirement plan has not yet been distributed in a lump sum or has not yet begun to be distributed in periodic installments or as a monthly pension. new text end
new text begin (b) A member may be an active firefighter, an inactive firefighter, or a former firefighter who has a benefit under the retirement plan but has not become eligible to receive the benefit. new text end
new text begin (a) "Relief association" or "volunteer firefighter relief association" means a nonprofit corporation incorporated under or governed by chapter 317A that is a governmental entity that receives and manages public money to provide retirement benefits for individuals providing the governmental services of firefighting and emergency first response, is subject to chapter 424A, and is affiliated with: new text end
new text begin (1) a fire department established by municipal ordinance; new text end
new text begin (2) an independent nonprofit firefighting corporation incorporated under chapter 317A; or new text end
new text begin (3) a fire department operated as or by a joint powers entity. new text end
new text begin (b) Relief association or volunteer firefighters relief association does not mean the voluntary statewide volunteer firefighter retirement plan governed by chapter 353G. new text end
new text begin "Retirement benefit" means the benefit to which a member is entitled under a retirement plan. new text end
new text begin "Retirement plan" means the defined benefit plan or defined contribution plan established and administered by a relief association. new text end
new text begin "Surplus" means the amount by which the assets in a defined benefit plan exceed accrued liabilities. new text end
new text begin (a) The board of trustees of a defined benefit relief association may convert the defined benefit plan to a defined contribution plan in accordance with this section. new text end
new text begin (b) A conversion consists of: new text end
new text begin (1) termination of the defined benefit plan; new text end
new text begin (2) establishment of a defined contribution plan; and new text end
new text begin (3) transfer and allocation of the assets of the defined benefit plan to accounts under the defined contribution plan. new text end
new text begin (c) The termination of the defined benefit plan does not dissolve the relief association, which is an ongoing nonprofit corporation under chapter 317A, unless dissolved under chapter 317A and section 424B.22. new text end
new text begin To initiate and complete a conversion, the board of trustees must: new text end
new text begin (1) approve resolutions that: new text end
new text begin (i) state that the defined benefit plan is being converted to a defined contribution plan; new text end
new text begin (ii) designate a conversion effective date; new text end
new text begin (iii) fully vest all members as of the conversion effective date in each member's lump-sum benefit or monthly pension, such that each member is 100 percent vested in the member's lump-sum benefit or monthly pension; new text end
new text begin (iv) if the relief association has a surplus as of the end of the relief association's most recent fiscal year before the conversion effective date, at the option of the board of trustees, conditionally increase the lump-sum benefit or monthly pension amount under the defined benefit plan, as provided under subdivision 4; new text end
new text begin (v) determine the method for allocating a surplus; new text end
new text begin (vi) adopt a defined contribution plan and approve a plan document that complies with section 424A.016 and states the terms and conditions for eligibility, vesting, allocation of contributions, distribution of retirement benefits, and any ancillary benefits; and new text end
new text begin (vii) authorize any bylaws amendments needed to incorporate items (i) to (vi) into the bylaws; new text end
new text begin (2) obtain the consent of the municipality or firefighting corporation if required by subdivision 3; new text end
new text begin (3) determine the present value of each member's accrued benefit as of the conversion effective date as required by subdivision 5; new text end
new text begin (4) if there is a surplus, allocate the surplus under a method that complies with subdivision 6; new text end
new text begin (5) if there is not a surplus, take the actions required under subdivision 7; new text end
new text begin (6) provide the notices required under subdivisions 8 and 9; and new text end
new text begin (7) implement the conversion, including the requirements under subdivision 10. new text end
new text begin The consent of the affiliated municipality, all municipalities if more than one municipality operates the fire department pursuant to a joint powers agreement, or firefighting corporation to a relief association's conversion of its defined benefit plan to a defined contribution plan is required as provided under subdivision 7 only if the relief association does not have a surplus as of the end of the relief association's most recent fiscal year before the conversion effective date. new text end
new text begin (a) If the relief association has a surplus as of the end of the relief association's most recent fiscal year before the conversion effective date, the board of trustees may approve a resolution that increases the lump-sum benefit or monthly pension amount or both the lump sum and monthly pension amount, if the relief association offers both, and amends the relief association bylaws without the consent of the affiliated municipality or firefighting corporation, notwithstanding section 424A.02, subdivision 10. The resulting lump-sum benefit or monthly pension amount is not limited to the maximum lump-sum benefit or monthly pension amounts under section 424A.02, subdivision 3. new text end
new text begin (b) The benefit increase must not cause the liabilities of the retirement plan to exceed the value of the assets, after taking into account full vesting as required under subdivision 2 and any administrative expenses arising from the conversion. new text end
new text begin (c) The board of trustees shall specify whether the benefit increase will apply only to members active as of the conversion effective date or whether the benefit increase will apply to all members, including members who are not active as of the conversion effective date, notwithstanding section 424A.015, subdivision 6. new text end
new text begin (d) The board of trustees' resolution approving an increase in the benefit level must be considered conditional on there being sufficient assets to fund the increase and must state that if, as of the date benefits are transferred to the defined contribution plan, there are not sufficient assets to cover all benefit liabilities at the new higher benefit level, the benefit level will be reduced until assets equal or are greater than liabilities. The resolution must state that the new lower benefit level will be considered approved by the board of trustees without further action by the board. new text end
new text begin (a) The board of trustees shall determine the present value of each member's accrued benefit, taking into account the full vesting requirement under subdivision 2 and any increase in the lump-sum benefit or monthly pension amount approved under subdivision 4: new text end
new text begin (1) using the method set forth in section 424A.092, subdivision 2, for determining a plan's funded status by calculating the value of each firefighter's accrued benefit; or new text end
new text begin (2) as determined by an actuary retained by the relief association, who meets the definition of approved actuary under section 356.215, subdivision 1, paragraph (c). new text end
new text begin (b) If the retirement plan pays a monthly pension, the board of trustees shall determine the present value of the remaining payments to any former member or beneficiary who is receiving an annuity. Present value shall be determined by an actuary who meets the definition of approved actuary under section 356.215, subdivision 1, paragraph (c), retained by the relief association. The relief association shall offer the former member or beneficiary receiving the annuity: new text end
new text begin (1) an immediate lump sum distribution of an amount equal to the present value of the remaining payments as determined by the actuary and permit the former member or beneficiary to elect a lump sum payment or a direct rollover of the amount to an eligible retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the distribution is an eligible rollover distribution as defined in section 356.635, subdivisions 4 and 5; or new text end
new text begin (2) continued payments in the same monthly amount, under an annuity to be purchased by the board of trustees from a reputable insurance company licensed to do business in the state. new text end
new text begin (a) If, as of the conversion effective date, the defined benefit plan has a surplus, the board of trustees shall allocate the surplus as follows: new text end
new text begin (1) per capita method: each member's account will receive the same dollar amount; new text end
new text begin (2) service-based method: each member's account will receive a share of the surplus based on the ratio of the member's years of service to the total years of service for all members; or new text end
new text begin (3) member and municipality sharing method under paragraph (b). new text end
new text begin (b) The board of trustees may allocate the surplus using the member and municipality sharing method in accordance with this paragraph. new text end
new text begin (1) For this purpose, "municipality" means "municipality" or "firefighting corporation," as applicable. new text end
new text begin (2) If the fire department is operated by more than one municipality under a joint powers agreement: new text end
new text begin (i) any consent by the municipality under this paragraph requires consent by each municipality that is party to the joint powers agreement; new text end
new text begin (ii) any payment of surplus to the municipality under this paragraph requires a payment of a pro rata share of surplus to each municipality that is party to the joint powers agreement; and new text end
new text begin (iii) any restrictions on the use of surplus applies to each municipality that is party to the joint powers agreement. new text end
new text begin (3) Under the member and municipality sharing method: new text end
new text begin (i) first, the municipality will receive a share of the surplus based on the ratio of the municipal contributions made to the defined benefit relief association over a specified period of years to the total of fire state aid paid and municipal contributions made to the defined benefit relief association over the same period; and new text end
new text begin (ii) second, any remaining surplus will be allocated to accounts of members using the per capita or service-based method. new text end
new text begin (4) The board of trustees may impose conditions on the use of the surplus by the municipality, as follows: new text end
new text begin (i) all or a specified portion of the surplus must be contributed back to the defined contribution relief association over a specified number of future years for allocation to the accounts of members eligible for an allocation; new text end
new text begin (ii) all or a specified portion of the surplus must be used by the municipality for the purposes described in section 424A.08, paragraph (a) or (b); or new text end
new text begin (iii) all or a specified portion of the surplus must be used by the municipality to provide health insurance or other welfare benefits for the members. new text end
new text begin (c) The board of trustees shall specify whether the surplus will be allocated only to members who are active firefighters as of the conversion effective date or whether the surplus will be allocated to all members, including members who are not active firefighters as of the conversion effective date. new text end
new text begin If the relief association does not have a surplus as of the end of the relief association's most recent fiscal year before the conversion effective date, the board of trustees shall: new text end
new text begin (1) obtain the consent of the municipality, of each municipality, if more than one municipality operates the fire department pursuant to a joint powers agreement, or of the firefighting corporation to the conversion and bylaws amendments under subdivision 2; and new text end
new text begin (2) either: new text end
new text begin (i) include with the resolutions of the board of trustees under subdivision 2 a resolution amending the relief association bylaws to decrease the lump-sum or monthly pension benefit level as necessary to reduce benefit liabilities until plan assets are sufficient to fund all benefit liabilities, taking into account full vesting under subdivision 2 and the payment of administrative expenses arising from the conversion; or new text end
new text begin (ii) enter into an agreement with the municipality, each municipality, if more than one municipality operates the fire department pursuant to a joint powers agreement, or the firefighting corporation, as applicable, that requires the municipality, municipalities, or firefighting corporation, as applicable, to make a contribution in an amount sufficient to cover all benefit liabilities at the current benefit level, taking into account full vesting under subdivision 2 and the payment of administrative expenses arising from the conversion. new text end
new text begin The board of trustees shall provide notice to all members at least 90 days before the conversion effective date. The notice shall include: new text end
new text begin (1) an explanation that the plan is converting from a defined benefit plan to a defined contribution plan and provide definitions for those terms, the reasons for the conversion, the conversion effective date, and the procedure to be followed, including fully vesting all members; new text end
new text begin (2) a summary of the terms of the newly adopted defined contribution plan; new text end
new text begin (3) information about any increase in the benefit level and whether the increase applies to all members or only active firefighters; new text end
new text begin (4) a section tailored to each member that provides an estimate of the present value of the member's fully vested accrued benefit and the calculation that resulted in that value; new text end
new text begin (5) an estimate of any anticipated surplus and an explanation of the disposition of the surplus, including, as applicable, a description of the method allocating the surplus among members' accounts and whether the municipality, each municipality, if more than one municipality operates the fire department pursuant to a joint powers agreement, or firefighting corporation will receive any of the surplus and any conditions on its use; and new text end
new text begin (6) contact information for one or more members of the board of trustees who will answer questions and provide a copy of the new defined contribution plan document or a summary, if requested, or directions to a website for viewing and printing the plan document or summary. new text end
new text begin The relief association shall provide notice to the municipality, each municipality, if more than one municipality operates the fire department pursuant to a joint powers agreement, or firefighting corporation affiliated with the relief association and the state auditor at the same time as the notice required under subdivision 8. The notice must include the information required under subdivision 8, except that the individualized information will be provided as a spreadsheet listing the name of each firefighter and the corresponding accrued benefit amount. new text end
new text begin (a) A record-keeping account shall be established for each member under the defined contribution plan to which is recorded the value of the firefighter's fully vested accrued benefit as determined as of the conversion effective date and the amount of any surplus allocated to the firefighter's account. new text end
new text begin (b) In no event may the value of a member's account in the defined contribution plan be less as of the day following the conversion effective date than the present value of the member's accrued benefit as of the day before the conversion effective date. new text end
new text begin Sections 1 to 13 are effective the day following final enactment. new text end
(a) When a municipal fire department, a joint powers fire department, or an independent nonprofit firefighting corporation is directly associated with the volunteer firefighters relief association, the fire chief shall certify annually by March 31 the service credit for the previous calendar year of each volunteer firefighter rendering active service with the fire department.
(b) The certification shall be made to an officer of the relief association's board of trustees and to the municipal clerk or clerk-treasurer of the largest municipality in population served by the associated fire department.
(c) The fire chief shall notify each volunteer firefighter rendering active service with the fire department of the amount of service credit rendered by the firefighter for the previous calendar year. The service credit notification and a description of the process and deadlines for the firefighter to challenge the fire chief's determination of service credit must be provided to the firefighter deleted text begin 60deleted text end new text begin at least 21 new text end days prior to its certification to the relief association and municipality. If the service credit amount is challenged, the fire chief shall accept and consider any additional pertinent information and shall make a final determination of service credit.
(d) The service credit certification must be expressed as the number of completed months of the previous year during which an active volunteer firefighter rendered at least the minimum level of duties as specified and required by the fire department under the rules, regulations, and policies applicable to the fire department. No more than one year of service credit may be certified for a calendar year.
(e) If a volunteer firefighter who is a member of the relief association leaves active firefighting service to render active military service that is required to be governed by the federal Uniformed Services Employment and Reemployment Rights Act, as amended, the firefighter must be certified as providing service credit for the period of the military service, up to the applicable limit of the federal Uniformed Services Employment and Reemployment Rights Act. If the volunteer firefighter does not return from the military service in compliance with the federal Uniformed Services Employment and Reemployment Rights Act, the service credits applicable to that military service credit period are forfeited and canceled at the end of the calendar year in which the time limit set by federal law occurs.
new text begin This section is effective January 1, 2021. new text end
(a) The board of the Bloomington Fire Department Relief Association and each volunteer firefighters relief association with assets of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous year, according to the applicable actuarial valuation or according to the financial report if no valuation is required, must prepare a financial report covering the special and general funds of the relief association for the preceding fiscal year, file the financial report, and submit financial statements.
(b) The financial report must contain financial statements and disclosures that present the true financial condition of the relief association and the results of relief association operations in conformity with generally accepted accounting principles and in compliance with the regulatory, financing, and funding provisions of this chapter and any other applicable laws. The financial report must be countersigned by:
(1) the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is a firefighters' relief association that is directly associated with a municipal fire department;
(2) the municipal clerk or clerk-treasurer of the largest municipality in population that contracts with the independent nonprofit firefighting corporation if the volunteer firefighter relief association is a subsidiary of an independent nonprofit firefighting corporation, and by the secretary of the independent nonprofit firefighting corporation; or
(3) the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality.
(c) The financial report must be retained in the office of the Bloomington Fire Department Relief Association or the volunteer firefighter relief association for public inspection and must be filed with the governing body of the government subdivision in which the associated fire department is located after the close of the fiscal year. One copy of the financial report must be furnished to the state auditor after the close of the fiscal year.
(d) Audited financial statements must be attested to by a certified public accountant or by the state auditor and must be filed with the state auditor on or before June 30 after the close of the fiscal year. Audits must be conducted in compliance with generally accepted deleted text begin governmentaldeleted text end auditing standards and section 6.65 governing audit procedures. The state auditor may accept this report in lieu of the report required in paragraph (c).
new text begin This section is effective the day following final enactment. new text end
(a) An individual account must be established for each firefighter who is a member of the relief association.
(b) To each individual active member account must be credited an equal share of:
(1) any amounts of fire state aid and police and firefighter retirement supplemental state aid received by the relief association;
(2) any amounts of municipal contributions to the relief association raised from levies on real estate or from other available municipal revenue sources exclusive of fire state aid; and
(3) any amounts equal to the share of the assets of the special fund to the credit of:
(i) any former member who terminated active service with the fire department to which the relief association is associated before meeting the minimum service requirement provided for in subdivision 2, paragraph (b), and has not returned to active service with the fire department for a period no shorter than five years; or
(ii) any retired member who retired before obtaining a full nonforfeitable interest in the amounts credited to the individual member account under subdivision 2, paragraph (b), and any applicable provision of the bylaws of the relief association.
new text begin (c)new text end In addition, any investment return on the assets of the special fund must be credited in proportion to the share of the assets of the special fund to the credit of each individual active member accountnew text begin and inactive member account, unless the inactive member is a deferred member as defined in subdivision 6new text end .
new text begin (d)new text end Administrative expenses of the relief association payable from the special fund may be deducted from individual accounts in a manner specified in the bylaws of the relief association.
deleted text begin (c) If the bylaws so permit and as the bylaws define, the relief association may credit any investment return on the assets of the special fund to the accounts of inactive members. deleted text end
deleted text begin (d)deleted text end new text begin (e) new text end Amounts to be credited to individual accounts must be allocated uniformly for all years of active service and allocations must be made for all years of service, except for caps on service credit if so provided in the bylaws of the relief association. Amounts forfeited under paragraph (b), clause (3), before a resumption of active service and membership under section 424A.01, subdivision 6, remain forfeited and may not be reinstated upon the resumption of active service and membership. The allocation method may utilize monthly proration for fractional years of service, as the bylaws or articles of incorporation of the relief association so provide. The bylaws or articles of incorporation may define a "month," but the definition must require a calendar month to have at least 16 days of active service. If the bylaws or articles of incorporation do not define a "month," a "month" is a completed calendar month of active service measured from the member's date of entry to the same date in the subsequent month.
deleted text begin (e)deleted text end new text begin (f) new text end At the time of retirement under subdivision 2 and any applicable provision of the bylaws of the relief association, a retiring member is entitled to that portion of the assets of the special fund to the credit of the member in the individual member account which is nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief association based on the number of years of service to the credit of the retiring member.
deleted text begin (f)deleted text end new text begin (g) new text end Annually, the secretary of the relief association shall certify the individual account allocations to the state auditor at the same time that the annual financial statement or financial report and audit of the relief association, whichever applies, is due under section 424A.014.
(a) A new text begin "deferred member" means a new text end member of a relief association deleted text begin is entitled to a deferred service pension if the member separatesdeleted text end new text begin who has separated new text end from active service and membership and has completed the minimum service and membership requirements in subdivision 2. The requirement that a member separate from active service and membership is waived for persons who have discontinued their volunteer firefighter duties and who are employed on a full-time basis under section 424A.015, subdivision 1.
(b) deleted text begin Thedeleted text end new text begin A deferred member is entitled to receive a new text end deferred service pension deleted text begin is payabledeleted text end when the deleted text begin formerdeleted text end member reaches at least age 50, or at least the minimum age specified in the bylaws governing the relief association if that age is greater than age 50, and deleted text begin when the former memberdeleted text end makes a valid written application.
(c) A defined contribution relief association deleted text begin may, if its governing bylaws so provide,deleted text end new text begin must new text end credit interest or additional investment performance on the deferred lump-sum service pension during the period of deferralnew text begin for all deferred members on or after January 1, 2021new text end . deleted text begin If provided for in the bylaws, thedeleted text end Interest must be creditednew text begin using one of the following methods, as provided for in the bylawsnew text end :
(1) at the investment performance rate actually earned on that portion of the assets if the deferred benefit amount is invested by the relief association in a separate account established and maintained by the relief association;
(2) at the investment performance rate actually earned on that portion of the assets if the deferred benefit amount is invested in a separate investment vehicle held by the relief association; or
(3) at the investment return on the assets of the special fund of the defined contribution volunteer firefighters relief association in proportion to the share of the assets of the special fund to the credit of each individual deferred member account through the accounting date on which the investment return is recognized by and credited to the special fund.
(d) Unless the bylaws of a relief association that has elected to pay interest or additional investment performance on deferred lump-sum service pensions under paragraph (c) specifies a different interest or additional investment performance method, including the interest or additional investment performance period starting date and ending date, the interest or additional investment performance on a deferred service pension is creditable as follows:
(1) for a relief association that has elected to credit interest or additional investment performance under paragraph (c), clause (1) or (3), beginning on the date that the member separates from active service and membership and ending on the accounting date immediately before the deferred member commences receipt of the deferred service pension; or
(2) for a relief association that has elected to credit interest or additional investment performance under paragraph (c), clause (2), beginning on the date that the member separates from active service and membership and ending on the date that the separate investment vehicle is valued immediately before the date on which the deferred member commences receipt of the deferred service pension.
new text begin (e) If the bylaws do not define a method for crediting interest or additional investment performance, the interest or additional investment performance must be credited using the method defined in paragraph (c), clause (3). new text end
new text begin (f) Until December 31, 2020, a defined contribution relief association is permitted, if its governing bylaws so provide, to credit interest or additional investment performance on the deferred lump-sum service pension during the period of deferral using the method set forth in the bylaws applicable on the date on which each deferred member separated from active service. new text end
new text begin This section is effective the day following final enactment. new text end
deleted text begin Every partially salaried and partially volunteer firefightersdeleted text end new text begin A new text end relief association must provide service pensions new text begin or retirement benefits new text end to deleted text begin volunteer firefighterdeleted text end new text begin its new text end members based on the years of service of the membersnew text begin ,new text end not on the compensation paid to the members for deleted text begin firefighting services. Each relief association must provide service pensions to salaried members as set forth in chapter 424 and applicable special lawsdeleted text end new text begin their servicenew text end .
deleted text begin A municipality which has a fire department associated withdeleted text end new text begin Ifnew text end a relief association deleted text begin whichdeleted text end violates deleted text begin the provisions ofdeleted text end subdivision 1 deleted text begin is directly associated or which contracts with an independent nonprofit firefighting corporation associated with a relief association which violates the provisions of subdivision 1 is a subsidiary maydeleted text end new text begin , the affiliated municipality or municipalities mustnew text end not be included in the apportionment of fire state aid and police and firefighter retirement supplemental state aid payable under chapter 477B and section 423A.022 and deleted text begin may not be includeddeleted text end in the apportionment of fire state aid to the various municipalities under section 477B.03.
new text begin This section is effective the day following final enactment. new text end
This section shall apply to any firefighters relief association specified in section 424A.091, subdivision 1, which pays a lump-sum service pension, but which does not pay a monthly service pension, to a retiring firefighter when at least the minimum requirements for entitlement to a service pension specified in section 424A.02deleted text begin ,deleted text end or any applicable special legislation and the articles of incorporation or bylaws of the relief association have been met. Each firefighters relief association to which this section applies shall determine the accrued liability of the special fund of the relief association in accordance with deleted text begin the accrued liability table set forth in subdivisiondeleted text end new text begin subdivisions new text end 2 and new text begin 2a, if applicable, and new text end the financial requirements of the relief association and the minimum obligation of the municipality in accordance with the procedure set forth in subdivision 3.
new text begin This section is effective the day following final enactment. new text end
(a) new text begin Beginning with the calculation performed in 2021 for the 2022 calendar year new text end each firefighters relief association which pays anew text begin lump-sumnew text end service pension deleted text begin when a retiring firefighter meets the minimum requirements for entitlement to a service pension specified in section 424A.02 and which in its articles of incorporation or bylaws requires service credit for a period of service of at least 20 years of active service for a totally nonforfeitable service pensiondeleted text end shall determine the accrued liability of the special fund of the firefighters relief association relative to each active member of the relief association, calculatednew text begin using the applicable appendix to the standards for actuarial work established by the Legislative Commission on Pensions and Retirement under section 3.85, subdivision 10.new text end
new text begin (b) For calendar years before 2022, each firefighters relief association shall determine the accrued liability of the special fund of the firefighters relief association relative to each active member of the relief association, calculatednew text end individually using the following table:
Cumulative Year |
Accrued Liability |
||
............ | ............ | ||
1 | $ | 60 | |
2 | 124 | ||
3 | 190 | ||
4 | 260 | ||
5 | 334 | ||
6 | 410 | ||
7 | 492 | ||
8 | 576 | ||
9 | 666 | ||
10 | 760 | ||
11 | 858 | ||
12 | 962 | ||
13 | 1070 | ||
14 | 1184 | ||
15 | 1304 | ||
16 | 1428 | ||
17 | 1560 | ||
18 | 1698 | ||
19 | 1844 | ||
20 | 2000 | ||
21 | and thereafter | 100 | additional per year |
deleted text begin (b)deleted text end As set forth in the table the accrued liability for each member of the relief association corresponds to the cumulative years of active service to the credit of the member. The accrued liability of the special fund for each active member is determined by multiplying the accrued liability from the chart by the ratio of the lump-sum service pension amount currently provided for in the bylaws of the relief association to a service pension of $100 per year of service.
new text begin (c)new text end If a member has fractional service as of December 31, the figure for service credit to be used for the determination of accrued liability pursuant to this section shall be rounded to the nearest full year of service credit. The total accrued liability of the special fund as of December 31 shall be the sum of the accrued liability attributable to each active member of the relief association.
deleted text begin (c)deleted text end new text begin (d) new text end To the extent that the state auditor considers it to be necessary or practical, the state auditor may specify and issue procedures, forms, or mathematical tables for use in performing the calculations of the accrued liability for deferred members pursuant to this subdivision.
new text begin This section is effective the day following final enactment. new text end
(a) When a participant attains at least age 55, terminates from covered service, and applies for a retirement annuity, the cash value of the participant's shares must be transferred to the general state employees retirement fund and be used to provide an annuity for the participant based upon the participant's age when the benefit begins to accrue.
(b) Except for participants described in paragraph (c), the monthly amount of the annuity must be determined using the actuarial assumptions in effect for the general state employees retirement plan under section 356.215 on the accrual date.
(c) For any participant who retires on or after July 1, 2017, and before July 1, 2020, when the participant is at least age 63 or has had at least 26 years of covered service, the monthly amount of the annuity must be determined using the actuarial assumptions in effect for the general state employees retirement plan under section 356.215 on June 30, 2016.
new text begin (d) For any participant who terminates employment on or after July 1, 2020, and before July 1, 2021, if the participant was at least age 63 or had at least 26 years of covered service as of June 30, 2020, the monthly amount of the annuity must be determined using the actuarial assumptions in effect for the general state employees retirement plan under section 356.215 on June 30, 2016. new text end
new text begin This section is effective the day following final enactment. new text end
Presented to the governor May 18, 2020
Signed by the governor May 27, 2020, 11:18 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes