1.1 	A bill for an act
1.2 	relating to retirement; statewide and major local defined benefit retirement plans; 
1.3 	requiring unclassified state employees retirement program coverage for overtime 
1.4 	salary; amending Minnesota Statutes 2010, sections 352.01, subdivision 13; 
1.5 	352.04, subdivision 4; 352D.02, subdivision 1, by adding a subdivision; 352D.04, 
1.6 	subdivision 2; 353.01, subdivision 10; 353.27, subdivision 4; 354.05, subdivision 
1.7 	35; 354.52, subdivision 4b; 354A.011, subdivision 24; 354A.12, subdivision 5; 
1.8 	490.121, by adding a subdivision; 490.124, by adding a subdivision; proposing 
1.9 	coding for new law in Minnesota Statutes, chapter 356.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2010, section 352.01, subdivision 13, is amended to read:
1.12 		Subd. 13.Salary. (a) Subject to the limitations of section 356.611, "salary" means 
1.13 	wages, or other periodic compensation, paid to an employee before deductions for 
1.14 	deferred compensation, supplemental retirement plans, or other voluntary salary reduction 
1.15 	programs.
1.16 	(b) "Salary" does not include:
1.17 	(1) lump-sum sick leave payments;
1.18 	(2) severance payments;
1.19 	(3) lump-sum annual leave payments and overtime payments made at the time 
1.20 	of separation from state service;
1.21 	(4) payments in lieu of any employer-paid group insurance coverage, including the 
1.22 	difference between single and family rates that may be paid to an employee with single 
1.23 	coverage;
1.24 	(5) payments made as an employer-paid fringe benefit;
1.25 	(6) workers' compensation payments;
2.1 	(7) employer contributions to a deferred compensation or tax-sheltered annuity 
2.2 	program; ~~and~~
2.3 	(8) amounts contributed under a benevolent vacation and sick leave donation 
2.4 	program~~.~~; and
2.5 	(9) amounts of irregular compensation as defined in section 356.307 on which 
2.6 	employee and employer contributions were transmitted to the unclassified state employees 
2.7 	retirement program as provided in section 352D.02, subdivision 7.
2.8 	(c) Amounts provided to an employee by the employer through a grievance 
2.9 	proceeding or a legal settlement are salary only if the settlement is reviewed by the 
2.10 	executive director and the amounts are determined by the executive director to be 
2.11 	consistent with paragraph (a) and prior determinations.

2.12 	Sec. 2. Minnesota Statutes 2010, section 352.04, subdivision 4, is amended to read:
2.13 		Subd. 4.Payroll deductions. (a) The head of each department shall have employee 
2.14 	contributions deducted from the salary of each employee covered by the system on 
2.15 	every payroll abstract and shall approve one voucher payable to the commissioner of 
2.16 	management and budget for the aggregate amount deducted on the payroll abstract.
2.17 	(b) Deductions from salaries of employees paid direct by any department, institution, 
2.18 	or agency of the state must be made by the officer or employee authorized by law to 
2.19 	pay the salaries. The head of any department or agency having authority to appoint any 
2.20 	employee who receives fees as compensation or who receives compensation on federal 
2.21 	payrolls shall collect as the required employee contribution the applicable amounts 
2.22 	required in subdivision 2.
2.23 	(c) Deductions from salary and amounts collected must be remitted to the director 
2.24 	with a statement showing the total amount of earnings or fees, the amount of irregular 
2.25 	compensation, and in the case of fees, the number of transactions, and the amount of each 
2.26 	of the deductions and collections and the names of the employees on whose account 
2.27 	they have been made.

2.28 	Sec. 3. Minnesota Statutes 2010, section 352D.02, subdivision 1, is amended to read:
2.29 		Subdivision 1.Coverage.  (a) Employees enumerated in paragraph (c), clauses (2), 
2.30 	(3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or 
2.31 	Metropolitan Council and are eligible for coverage under the general state employees 
2.32 	retirement plan under chapter 352, are participants in the unclassified program under this 
2.33 	chapter unless the employee gives notice to the executive director of the Minnesota State 
2.34 	Retirement System within one year following the commencement of employment in the 
3.1 	unclassified service that the employee desires coverage under the general state employees 
3.2 	retirement plan. For the purposes of this chapter, an employee who does not file notice 
3.3 	with the executive director is deemed to have exercised the option to participate in the 
3.4 	unclassified program.
3.5 	(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified 
3.6 	program under this chapter unless the person was eligible to elect different coverage under 
3.7 	section 3A.07 and elected retirement coverage by the applicable alternative retirement 
3.8 	plan. Persons referenced in paragraph (c), clause (15), are participants in the unclassified 
3.9 	program under this chapter for judicial employment in excess of the service credit limit in 
3.10 	section 490.121, subdivision 22.
3.11 	(c) Enumerated employees and referenced persons are:
3.12 	(1) the governor, the lieutenant governor, the secretary of state, the state auditor, 
3.13 	and the attorney general;
3.14 	(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary 
3.15 	of State, State Auditor, Attorney General;
3.16 	(3) an employee of the State Board of Investment;
3.17 	(4) the head of a department, division, or agency created by statute in the unclassified 
3.18 	service, an acting department head subsequently appointed to the position, or an employee 
3.19 	enumerated in section 15A.0815 or 15A.083, subdivision 4;
3.20 	(5) a member of the legislature;
3.21 	(6) a full-time unclassified employee of the legislature or a commission or agency of 
3.22 	the legislature who is appointed without a limit on the duration of the employment or a 
3.23 	temporary legislative employee having shares in the supplemental retirement fund as a 
3.24 	result of former employment covered by this chapter, whether or not eligible for coverage 
3.25 	under the Minnesota State Retirement System;
3.26 	(7) a person who is employed in a position established under section 43A.08, 
3.27 	subdivision 1, clause (3), or in a position authorized under a statute creating or establishing 
3.28 	a department or agency of the state, which is at the deputy or assistant head of department 
3.29 	or agency or director level;
3.30 	(8) the regional administrator, or executive director of the Metropolitan Council, 
3.31 	general counsel, division directors, operations managers, and other positions as designated 
3.32 	by the council, all of which may not exceed 27 positions at the council and the chair;
3.33 	(9) the executive director, associate executive director, and not to exceed nine 
3.34 	positions of the Minnesota Office of Higher Education in the unclassified service, as 
3.35 	designated by the Minnesota Office of Higher Education before January 1, 1992, or 
3.36 	subsequently redesignated with the approval of the board of directors of the Minnesota 
4.1 	State Retirement System, unless the person has elected coverage by the individual 
4.2 	retirement account plan under chapter 354B;
4.3 	(10) the clerk of the appellate courts appointed under article VI, section 2, of the 
4.4 	Constitution of the state of Minnesota, the state court administrator and judicial district 
4.5 	administrators;
4.6 	(11) the chief executive officers of correctional facilities operated by the Department 
4.7 	of Corrections and of hospitals and nursing homes operated by the Department of Human 
4.8 	Services;
4.9 	(12) an employee whose principal employment is at the state ceremonial house;
4.10 	(13) an employee of the Agricultural Utilization Research Institute;
4.11 	(14) an employee of the State Lottery who is covered by the managerial plan 
4.12 	established under section 43A.18, subdivision 3;
4.13 	(15) a judge who has exceeded the service credit limit in section 490.121, 
4.14 	subdivision 22;
4.15 	(16) an employee of Enterprise Minnesota, Inc.;
4.16 	(17) a person employed by the Minnesota State Colleges and Universities as faculty 
4.17 	or in an eligible unclassified administrative position as defined in section 354B.20, 
4.18 	subdivision 6, who was employed by the former state university or the former community 
4.19 	college system before May 1, 1995, and elected unclassified program coverage prior to 
4.20 	May 1, 1995; ~~and~~
4.21 	(18) a person employed by the Minnesota State Colleges and Universities who 
4.22 	was employed in state service before July 1, 1995, who subsequently is employed in an 
4.23 	eligible unclassified administrative position as defined in section 354B.20, subdivision 6, 
4.24 	and who elects coverage by the unclassified program~~.~~; and
4.25 	(19) a person with regular retirement coverage by a defined benefit retirement 
4.26 	plan who receives irregular compensation as defined in section 356.307 with respect 
4.27 	to the employee or member contribution and employer contribution on that irregular 
4.28 	compensation.

4.29 	Sec. 4. Minnesota Statutes 2010, section 352D.02, is amended by adding a subdivision 
4.30 	to read:
4.31 		Subd. 7.Coverage for irregular compensation. (a) A person referenced in 
4.32 	subdivision 1, paragraph (c), clause (19), is a participant in the unclassified program by 
4.33 	virtue of the receipt of irregular compensation as defined in section 356.307 and the 
4.34 	transmission of employee or member contributions and employer contributions with 
5.1 	respect to that irregular compensation to the program for the purchase of shares in the 
5.2 	Minnesota supplemental investment fund.
5.3 	(b) The chief administrative officer of the defined benefit retirement plan that 
5.4 	provides the primary defined benefit retirement coverage shall transmit the employee or 
5.5 	member and employer contributions associated with the irregular compensation within 
5.6 	five business days of receipt.
5.7 	(c) A person covered by the unclassified program under subdivision 1, paragraph 
5.8 	(c), clause (19), and this subdivision is not eligible for a transfer of unclassified program 
5.9 	coverage to the general state employees retirement plan under subdivision 3.

5.10 	Sec. 5. Minnesota Statutes 2010, section 352D.04, subdivision 2, is amended to read:
5.11 		Subd. 2.Contribution rates. (a) The money used to purchase shares under this 
5.12 	section is the employee and employer contributions provided in this subdivision.
5.13 	(b) The employee contribution is an amount equal to the percent of salary specified 
5.14 	in section 352.04, subdivision 2, or 352.045, subdivision 3.
5.15 	(c) The employer contribution is an amount equal to six percent of salary.
5.16 	(d) For members of the legislature, the contributions under this subdivision also must 
5.17 	be made on per diem payments received during a regular or special legislative session, but 
5.18 	may not be made on per diem payments received outside of a regular or special legislative 
5.19 	session, on the additional compensation attributable to a leadership position under section 
5.20 	3.099, subdivision 3, living expense payments under section 3.101, or special session 
5.21 	living expense payments under section 3.103.
5.22 	(e) For a judge who is a member of the unclassified plan under section 352D.02, 
5.23 	subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent 
5.24 	of salary, and there is no employer contribution.
5.25 	(f) For a person covered by the unclassified program under section 352D.02, 
5.26 	subdivision 1, paragraph (c), clause (19), the employee contribution is an amount equal 
5.27 	to the percent of the irregular compensation as defined in section 356.307 that is the 
5.28 	employee or member contribution rate applicable to the person's defined benefit retirement 
5.29 	plan coverage, and the employer contribution is an amount equal to the percent of the 
5.30 	irregular compensation as defined in section 356.307 that is the employer contribution rate 
5.31 	applicable to the person's defined benefit retirement plan coverage.
5.32 	(g) These contributions must be made in the manner provided in section 352.04, 
5.33 	subdivisions 4, 5, and 6.

5.34 	Sec. 6. Minnesota Statutes 2010, section 353.01, subdivision 10, is amended to read:
6.1 		Subd. 10.Salary. (a) Subject to the limitations of section 356.611, "salary" means:
6.2 	(1) the periodic compensation of a public employee, before deductions for deferred 
6.3 	compensation, supplemental retirement plans, or other voluntary salary reduction 
6.4 	programs, and also means "wages" and includes net income from fees;
6.5 	(2) for a public employee who is covered by a supplemental retirement plan under 
6.6 	section 356.24, subdivision 1, clause (8), (9), or (10), which require all plan contributions 
6.7 	be made by the employer, the contribution to the applicable supplemental retirement plan 
6.8 	when an agreement between the parties establishes that the contribution will either result 
6.9 	in a mandatory reduction of employees' wages through payroll withholdings, or be made 
6.10 	in lieu of an amount that would otherwise be paid as wages; and
6.11 	(3) for a public employee who has prior service covered by a local police or 
6.12 	firefighters relief association that has consolidated with the Public Employees Retirement 
6.13 	Association or to which section 353.665 applies and who has elected coverage either 
6.14 	under the public employees police and fire fund benefit plan under section 353A.08 
6.15 	following the consolidation or under section 353.665, subdivision 4, the rate of salary 
6.16 	upon which member contributions to the special fund of the relief association were made 
6.17 	prior to the effective date of the consolidation as specified by law and by bylaw provisions 
6.18 	governing the relief association on the date of the initiation of the consolidation procedure 
6.19 	and the actual periodic compensation of the public employee after the effective date of 
6.20 	consolidation.
6.21 	(b) Salary does not mean:
6.22 	(1) the fees paid to district court reporters, unused annual vacation or sick leave 
6.23 	payments, in lump-sum or periodic payments, severance payments, reimbursement of 
6.24 	expenses, lump-sum settlements not attached to a specific earnings period, or workers' 
6.25 	compensation payments;
6.26 	(2) employer-paid amounts used by an employee toward the cost of insurance 
6.27 	coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health 
6.28 	care expense accounts, day care expenses, or any payments in lieu of any employer-paid 
6.29 	group insurance coverage, including the difference between single and family rates that 
6.30 	may be paid to a member with single coverage and certain amounts determined by the 
6.31 	executive director to be ineligible;
6.32 	(3) the amount equal to that which the employing governmental subdivision would 
6.33 	otherwise pay toward single or family insurance coverage for a covered employee when, 
6.34 	through a contract or agreement with some but not all employees, the employer:
6.35 	(i) discontinues, or for new hires does not provide, payment toward the cost of the 
6.36 	employee's selected insurance coverages under a group plan offered by the employer;
7.1 	(ii) makes the employee solely responsible for all contributions toward the cost of 
7.2 	the employee's selected insurance coverages under a group plan offered by the employer, 
7.3 	including any amount the employer makes toward other employees' selected insurance 
7.4 	coverages under a group plan offered by the employer; and
7.5 	(iii) provides increased salary rates for employees who do not have any 
7.6 	employer-paid group insurance coverages;
7.7 	(4) except as provided in section 353.86 or 353.87, compensation of any kind paid to 
7.8 	volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision 
7.9 	35 or 36;
7.10 	(5) the amount of compensation that exceeds the limitation provided in section 
7.11 	356.611; ~~and~~
7.12 	(6) amounts paid by a federal or state grant for which the grant specifically 
7.13 	prohibits grant proceeds from being used to make pension plan contributions, unless the 
7.14 	contributions to the plan are made from sources other than the federal or state grant~~.~~; and
7.15 	(7) for members of the general employees retirement plan and the local government 
7.16 	correctional retirement plan, the amount of irregular compensation as defined in 
7.17 	section 356.307 on which employee and employer contributions were transmitted to 
7.18 	the unclassified state employees retirement program as provided in section 352D.02, 
7.19 	subdivision 7.
7.20 	(c) Amounts provided to an employee by the employer through a grievance 
7.21 	proceeding or a legal settlement are salary only if the settlement is reviewed by the 
7.22 	executive director and the amounts are determined by the executive director to be 
7.23 	consistent with paragraph (a) and prior determinations.

7.24 	Sec. 7. Minnesota Statutes 2010, section 353.27, subdivision 4, is amended to read:
7.25 		Subd. 4.Employer reporting requirements; contributions; member status.
 7.26 	(a) A representative authorized by the head of each department shall deduct employee 
7.27 	contributions from the salary of each public employee who qualifies for membership in 
7.28 	the general employees retirement plan of the Public Employees Retirement Association 
7.29 	or in the public employees police and fire retirement plan under this chapter or chapter 
7.30 	353D or 353E at the rate under section 353.27, 353.65, 353D.03, or 353E.03, whichever 
7.31 	is applicable, that is in effect on the date the salary is paid. The employer representative 
7.32 	must also remit payment in a manner prescribed by the executive director for the 
7.33 	aggregate amount of the employee contributions and the required employer contributions 
7.34 	to be received by the association within 14 calendar days after each pay date. If the 
7.35 	payment is less than the amount required, the employer must pay the shortage amount to 
8.1 	the association and collect reimbursement of any employee contribution shortage paid 
8.2 	on behalf of a member through subsequent payroll withholdings from the wages of the 
8.3 	employee. Payment of shortages in employee contributions and associated employer 
8.4 	contributions, if applicable, must include interest at the rate specified in section 353.28, 
8.5 	subdivision 5, if not received within 30 days following the date the amount was initially 
8.6 	due under this section.
8.7 	(b) The head of each department or the person's designee shall submit for each 
8.8 	pay period to the association a salary deduction report in the format prescribed by the 
8.9 	executive director. The report must be received by the association within 14 calendar 
8.10 	days after each pay date or the employer may be assessed a fine of $5 per calendar day 
8.11 	until the association receives the required data. Data required as part of salary deduction 
8.12 	reporting must include, but are not limited to:
8.13 	(1) the legal names and Social Security numbers of employees who are members;
8.14 	(2) the amount of each employee's salary deduction;
8.15 	(3) the total amount of compensation;
8.16 	(4) the amount of salary defined in section 353.01, subdivision 10, earned in the 
8.17 	pay period from which each deduction was made and the salary amount earned by a 
8.18 	reemployed annuitant under section 353.37, subdivision 1, or 353.371, subdivision 1, or 
8.19 	by a disabled member under section 353.33, subdivision 7 or 7a;
8.20 	(5) the amount of irregular compensation;
8.21 	~~(4)~~(6) the beginning and ending dates of the payroll period covered and the date of 
8.22 	actual payment; and
8.23 	~~(5)~~(7) adjustments or corrections covering past pay periods as authorized by the 
8.24 	executive director.
8.25 	(c) Employers must furnish the data required for enrollment for each new or 
8.26 	reinstated employee who qualifies for membership in the general employees retirement 
8.27 	plan of the Public Employees Retirement Association or in the public employees police 
8.28 	and fire retirement plan in the format prescribed by the executive director. The required 
8.29 	enrollment data on new members must be submitted to the association prior to or 
8.30 	concurrent with the submission of the initial employee salary deduction. Also, the 
8.31 	employer shall report to the association all member employment status changes, such as 
8.32 	leaves of absence, terminations, and death, and shall report the effective dates of those 
8.33 	changes, on an ongoing basis for the payroll cycle in which they occur. If an employer 
8.34 	fails to comply with the reporting requirements under this paragraph, the executive 
8.35 	director may assess a fine of $25 for each failure if the association staff has notified the 
9.1 	employer of the noncompliance and attempted to obtain the missing data or form from the 
9.2 	employer for a period of more than three months.
9.3 	(d) The employer shall furnish data, forms, and reports as may be required by 
9.4 	the executive director for proper administration of the retirement system. Before 
9.5 	implementing new or different computerized reporting requirements, the executive 
9.6 	director shall give appropriate advance notice to governmental subdivisions to allow time 
9.7 	for system modifications.
9.8 	(e) Notwithstanding paragraph (a), the executive director may provide for less 
9.9 	frequent reporting and payments for small employers.
9.10 	(f) The executive director may establish reporting procedures and methods as 
9.11 	required to review compliance by employers with the salary and contribution reporting 
9.12 	requirements in this chapter. A review of the payroll records of a participating employer 
9.13 	may be conducted by the association on a periodic basis or as a result of concerns known 
9.14 	to exist within a governmental subdivision. An employer under review must extract 
9.15 	requested data and provide records to the association after receiving reasonable advanced 
9.16 	notice. Failure to provide requested information or materials will result in the employer 
9.17 	being liable to the association for any expenses associated with a field audit, which may 
9.18 	include staff salaries, administrative expenses, and travel expenses.

9.19 	Sec. 8. Minnesota Statutes 2010, section 354.05, subdivision 35, is amended to read:
9.20 		Subd. 35.Salary. (a) Subject to the limitations of section 356.611, "salary" 
9.21 	means the periodic compensation, upon which member contributions are required before 
9.22 	deductions for deferred compensation, supplemental retirement plans, or other voluntary 
9.23 	salary reduction programs.
9.24 	(b) "Salary" does not mean:
9.25 	(1) lump-sum annual leave payments;
9.26 	(2) lump-sum wellness and sick leave payments;
9.27 	(3) employer-paid amounts used by an employee toward the cost of insurance 
9.28 	coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health 
9.29 	care expense accounts, day care expenses, or any payments in lieu of any employer-paid 
9.30 	group insurance coverage, including the difference between single and family rates that 
9.31 	may be paid to a member with single coverage and certain amounts determined by the 
9.32 	executive director to be ineligible;
9.33 	(4) any form of payment made in lieu of any other employer-paid fringe benefit or 
9.34 	expense;
9.35 	(5) any form of severance payments;
10.1 	(6) workers' compensation payments;
10.2 	(7) disability insurance payments, including self-insured disability payments;
10.3 	(8) payments to school principals and all other administrators for services that are 
10.4 	in addition to the normal work year contract if these additional services are performed 
10.5 	on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or 
10.6 	any other nonduty day;
10.7 	(9) payments under section 356.24, subdivision 1, clause (4); ~~and~~
10.8 	(10) payments made under section 122A.40, subdivision 12, except for payments for 
10.9 	sick leave that are accumulated under the provisions of a uniform school district policy 
10.10 	that applies equally to all similarly situated persons in the district~~.~~; and
10.11 	(11) amounts of irregular compensation as defined in section 356.307 on which 
10.12 	employee and employer contributions were transmitted to the unclassified state employees 
10.13 	retirement program as provided in section 352D.02, subdivision 7.
10.14 	(c) Amounts provided to an employee by the employer through a grievance 
10.15 	proceeding or a legal settlement are salary only if the settlement is reviewed by the 
10.16 	executive director and the amounts are determined by the executive director to be 
10.17 	consistent with paragraph (a) and prior determinations.

10.18 	Sec. 9. Minnesota Statutes 2010, section 354.52, subdivision 4b, is amended to read:
10.19 		Subd. 4b.Payroll cycle reporting requirements. An employing unit shall provide 
10.20 	the following data to the association for payroll warrants on an ongoing basis within 14 
10.21 	calendar days after the date of the payroll warrant in a format prescribed by the executive 
10.22 	director:
10.23 	(1) association member number;
10.24 	(2) employer-assigned employee number;
10.25 	(3) Social Security number;
10.26 	(4) amount of each salary deduction;
10.27 	(5) amount of total compensation;
10.28 	(6) amount of salary as defined in section 354.05, subdivision 35, from which each 
10.29 	deduction was made;
10.30 	(7) amount of irregular compensation;
10.31 	~~(6)~~(8) reason for payment;
10.32 	~~(7)~~(9) service credit;
10.33 	~~(8)~~(10) the beginning and ending dates of the payroll period covered and the date 
10.34 	of actual payment;
10.35 	~~(9)~~(11) fiscal year of salary earnings;
11.1 	~~(10)~~(12) total remittance amount including employee, employer, and additional 
11.2 	employer contributions;
11.3 	~~(11)~~(13) reemployed annuitant salary under section 354.44, subdivision 5; and
11.4 	~~(12)~~(14) other information as may be required by the executive director.

11.5 	Sec. 10. Minnesota Statutes 2010, section 354A.011, subdivision 24, is amended to 
11.6 	read:
11.7 		Subd. 24.Salary; covered salary. (a) Subject to the limitations of section 356.611, 
11.8 	"salary" or "covered salary" means the entire compensation, upon which member 
11.9 	contributions are required and made, that is paid to a teacher before deductions for 
11.10 	deferred compensation, supplemental retirement plans, or other voluntary salary reduction 
11.11 	programs.
11.12 	(b) "Salary" does not mean:
11.13 	(1) lump-sum annual leave payments;
11.14 	(2) lump-sum wellness and sick leave payments;
11.15 	(3) employer-paid amounts used by an employee toward the cost of insurance 
11.16 	coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health 
11.17 	care expense accounts, day care expenses, or any payments in lieu of any employer-paid 
11.18 	group insurance coverage, including the difference between single and family rates that 
11.19 	may be paid to a member with single coverage, and certain amounts determined by the 
11.20 	executive secretary or director to be ineligible;
11.21 	(4) any form of payment that is made in lieu of any other employer-paid fringe 
11.22 	benefit or expense;
11.23 	(5) any form of severance payments;
11.24 	(6) workers' compensation payments;
11.25 	(7) disability insurance payments, including self-insured disability payments;
11.26 	(8) payments to school principals and all other administrators for services that are 
11.27 	in addition to the normal work year contract if these additional services are performed 
11.28 	on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or 
11.29 	any other nonduty day;
11.30 	(9) payments under section 356.24, subdivision 1, clause (4)(ii); ~~and~~
11.31 	(10) payments made under section 122A.40, subdivision 12, except for payments for 
11.32 	sick leave that are accumulated under the provisions of a uniform school district policy 
11.33 	that applies equally to all similarly situated persons in the district~~.~~; and
12.1 	(11) amounts of irregular compensation as defined in section 356.307 on which 
12.2 	employee and employer contributions were transmitted to the unclassified state employees 
12.3 	retirement program as provided in section 352D.02, subdivision 7.
12.4 	(c) Amounts provided to an employee by the employer through a grievance 
12.5 	proceeding or a legal settlement are salary only if the settlement is reviewed by the 
12.6 	executive director and the amounts are determined by the executive director to be 
12.7 	consistent with paragraph (a) and prior determinations.

12.8 	Sec. 11. Minnesota Statutes 2010, section 354A.12, subdivision 5, is amended to read:
12.9 		Subd. 5.Reporting and remittance requirements. (a) Each employing unit shall 
12.10 	provide to the appropriate teachers retirement fund association the following member 
12.11 	data regarding all new or returning employees before the employee's first payroll date in 
12.12 	a format approved by the executive secretary or director. Data changes and the dates of 
12.13 	those changes must be reported to the association on an ongoing basis for the payroll cycle 
12.14 	in which they occur. Data on the member includes:
12.15 	(1) legal name, address, date of birth, association member number, 
12.16 	employer-assigned employee number, and Social Security number;
12.17 	(2) association status, including, but not limited to, basic, coordinated, exempt 
12.18 	annuitant, exempt technical college teacher, or exempt independent contractor or 
12.19 	consultant;
12.20 	(3) employment status, including, but not limited to, full time, part time, intermittent, 
12.21 	substitute, or part-time mobility;
12.22 	(4) employment position, including, but not limited to, teacher, superintendent, 
12.23 	principal, administrator, or other;
12.24 	(5) employment activity, including, but not limited to, hire, termination, resumption 
12.25 	of employment, disability, or death;
12.26 	(6) leaves of absence; and
12.27 	(7) other information as may be required by the association.
12.28 	(b) Each employing unit shall provide the following data to the appropriate 
12.29 	association for each payroll cycle in a format approved by the executive secretary or 
12.30 	director:
12.31 	(1) an association member number;
12.32 	(2) employer-assigned employee number;
12.33 	(3) Social Security number;
12.34 	(4) amount of each salary deduction;
12.35 	(5) amount of total compensation;
13.1 	(6) amount of salary as defined in section 354A.011, subdivision 24, from which 
13.2 	each deduction was made;
13.3 	(7) amount of irregular compensation;
13.4 	~~(6)~~(8) reason for payment;
13.5 	~~(7)~~(9) service credit;
13.6 	~~(8)~~(10) the beginning and ending dates of the payroll period covered and the date 
13.7 	of actual payment;
13.8 	~~(9)~~(11) fiscal year of salary earnings;
13.9 	~~(10)~~(12) total remittance amount including employee, employer, and employer 
13.10 	additional contributions; and
13.11 	~~(11)~~(13) other information as may be required by the association.
13.12 	(c) On or before August 1 each year, each employing unit must report to the 
13.13 	appropriate association giving an itemized summary for the preceding 12 months of the 
13.14 	total amount that was withheld from the salaries of teachers for deductions and all other 
13.15 	information required by the association.
13.16 	(d) An employing unit that does not comply with the reporting requirements 
13.17 	under this section shall pay a fine of $5 per calendar day until the association receives 
13.18 	the required member data.
13.19 	(e) An employing unit shall remit all amounts that are due to the association and 
13.20 	shall furnish for each pay period an itemized statement indicating the total amount that is 
13.21 	due and is transmitted with any other information required by the association. All amounts 
13.22 	due and other employer obligations that are not remitted within 30 days of notification 
13.23 	by the association must be certified by the director or secretary to the commissioner of 
13.24 	management and budget, who shall deduct the amount from any state aid or appropriation 
13.25 	amount applicable to the employing unit and shall transmit the deducted amount to the 
13.26 	applicable association.

13.27 	Sec. 12. [356.307] IRREGULAR COMPENSATION.
13.28 		Subdivision 1.Definition. For purposes of the defined benefit retirement plans 
13.29 	listed in subdivision 2, "irregular compensation" means compensation paid for overtime 
13.30 	services, shift differential, extracurricular services, extra duty services, uniform 
13.31 	allowances, employment incentives, bonuses, payments in lieu of leave time, nonduty day 
13.32 	services, recognition rewards, and payments in lieu of insurance coverage.
13.33 		Subd. 2.Applicable retirement plans. The definition in subdivision 1 is applicable 
13.34 	to the following defined benefit retirement plans:
14.1 	(1) general state employees retirement plan of the Minnesota State Retirement 
14.2 	System;
14.3 	(2) correctional state employees retirement plan of the Minnesota State Retirement 
14.4 	System;
14.5 	(3) transportation department pilots retirement plan;
14.6 	(4) military affairs department personnel retirement plan;
14.7 	(5) state fire marshal division fire/arson investigator retirement plan;
14.8 	(6) general employees retirement plan of the Public Employees Retirement 
14.9 	Association;
14.10 	(7) local government correctional service retirement plan of the Public Employees 
14.11 	Retirement Association;
14.12 	(8) Teachers Retirement Association;
14.13 	(9) Duluth Teachers Retirement Fund Association;
14.14 	(10) St. Paul Teachers Retirement Fund Association; and
14.15 	(11) judges retirement plan.

14.16 	Sec. 13. Minnesota Statutes 2010, section 490.121, is amended by adding a subdivision 
14.17 	to read:
14.18 		Subd. 21g.Salary. "Salary" has the same meaning as the definition of the term in 
14.19 	section 352.01, subdivision 13.

14.20 	Sec. 14. Minnesota Statutes 2010, section 490.124, is amended by adding a subdivision 
14.21 	to read:
14.22 		Subd. 15.Compensation and deduction amount requirements. The state court 
14.23 	administrator shall comply with the compensation and deduction reporting requirements 
14.24 	of section 352.04, subdivision 4, paragraph (c).

14.25 	Sec. 15. EFFECTIVE DATE.
 14.26 	Sections 1 to 14 are effective July 1, 2012, and apply to compensation paid and 
14.27 	deductions made beginning with the first full payroll period beginning after June 30, 2012.