Minnesota Legislature
HF 2807
as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2016 03:03pm
2.1 2.2
2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20
2.21
2.22 2.23 2.24 2.25 2.26 2.27 2.28
2.29
2.30 2.31 2.32 3.1 3.2 3.3
3.4
3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18
3.19
3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7
5.8
5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29
5.30
5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9
6.10
6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24
6.25
6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7
7.8
7.9 7.10
7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27
8.28
8.29 8.30 8.31 8.32
8.33
9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16
9.17
9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 10.36 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11
11.12
11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33
11.34
12.1 12.2 12.3 12.4 12.5 12.6 12.7
12.8
12.9 12.10 12.11 12.12 12.13 12.14
12.15
12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26
12.27
12.28 12.29 12.30 12.31 12.32 13.1 13.2 13.3 13.4
13.5
13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15
13.16
13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 14.1 14.2 14.3 14.4 14.5
14.6
14.7 14.8
14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35
15.36
16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12
16.13
16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29
16.30
16.31 16.32 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22
17.23
17.24 17.25 17.26 17.27
17.28
17.29 17.30
17.31 17.32 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8
18.9
18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17
18.18
18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8
19.9
19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31
19.32
20.1 20.2
20.3 20.4 20.5 20.6 20.7 20.8 20.9
20.10
20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 21.36 22.1 22.2 22.3 22.4 22.5 22.6 22.7
22.8
22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34
23.1
23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14
24.15
24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18
25.19
25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8
26.9
26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17
26.18
26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27
26.28
26.29 26.30 26.31 26.32 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10
27.11
27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31
27.32
27.33 28.1 28.2 28.3 28.4 28.5 28.6 28.7
28.8
28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2
29.3
29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20
29.21
29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6 30.7
30.8
30.9 30.10 30.11 30.12 30.13
30.14
30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22
31.23
31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 31.35 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13
32.14
32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22
32.23
32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26
33.27
33.28 33.29 33.30 33.31 33.32 33.33 33.34 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12
34.13
34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22
34.23
34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32
35.1 35.2 35.3
35.4
35.5 35.6
35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 35.36 35.37 35.38 35.39 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 36.36 36.37 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 37.37 37.38 37.39 37.40 37.41 37.42 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 38.36 38.37 38.38 38.39 38.40 38.41 38.42 38.43 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 39.36 39.37 39.38 39.39 39.40 39.41 40.1 40.2 40.3 40.4
40.5 40.6
A bill for an act
relating to retirement; making administrative changes to the Minnesota State
Retirement System, Teachers Retirement Association, Public Employees
Retirement Association, and St. Paul Teachers Retirement Fund Association;
clarifying refund repayment procedures; modifying the criteria for appointing
an executive director; clarifying combined service annuity augmentation rates;
revising appeal procedures; clarifying coverage for charter school administrators;
modifying the criteria for appointing an executive director; increasing the length
of allowable service credit purchase periods; establishing new procedures
for disability applications due to private disability insurance requirements;
clarifying death and disability benefit payment provisions; modifying the annual
benefit limitations provision for federal tax code compliance; authorizing the
executive director to correct operational and other errors under IRS correction
procedures; clarifying certain service and salary credit purchases; clarifying
the offset for benefits received for certain refund payments; clarifying police
and fire plan coverage for certain Hennepin Healthcare System supervisors;
requiring termination from all public service for combined service annuity
eligibility; modifying various economic actuarial assumptions; amending
Minnesota Statutes 2014, sections 3A.03, subdivision 3; 16A.14, subdivision 2a;
352.03, subdivisions 5, 6; 353.32, subdivision 1; 353.34, subdivision 2; 354.05,
subdivision 2, by adding a subdivision; 354.06, subdivisions 2, 2a; 354.095;
354.45, by adding a subdivision; 354.46, subdivision 6; 354.48, subdivision
1; 354.52, subdivisions 4, 6; 354A.093, subdivision 4; 354A.38, as amended;
356.30, subdivision 1; 356.635, by adding subdivisions; 356.96, subdivisions
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 423A.02, subdivision 3; Minnesota
Statutes 2015 Supplement, sections 3A.03, subdivision 2; 352.23; 352B.11,
subdivision 4; 352D.05, subdivision 4; 353.0162; 353.64, subdivision 10;
354.44, subdivision 9; 354A.093, subdivision 6; 354A.096; 356.215, subdivision
8; 356.50, subdivision 2; 356.551, subdivision 2; 356.635, subdivision 10;
490.124, subdivision 12; repealing Minnesota Statutes 2014, sections 353.0161,
subdivision 1; 356.611, subdivisions 3, 3a, 4, 5; 356.96, subdivisions 14, 15;
Minnesota Statutes 2015 Supplement, section 353.0161, subdivisions 2, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MINNESOTA STATE RETIREMENT SYSTEM
Section 1.
Minnesota Statutes 2015 Supplement, section 3A.03, subdivision 2, is
amended to read:
Subd. 2.
Refund.
(a) A former member who has made contributions under
subdivision 1 and who is no longer a member of the legislature is entitled to receive, upon
written application to the executive director on a form prescribed by the executive director,
a refund from the general fund of all contributions credited to the member's account with
interest computed as provided in section 352.22, subdivision 2.
(b) The refund of contributions as provided in paragraph (a) terminates all rights of a
former member of the legislature and the survivors of the former member under this chapter.
(c) If the former member of the legislature again becomes a member of the legislature
after having taken a refund as provided in paragraph (a), the member is a member of the
unclassified employees retirement program of the Minnesota State Retirement System.
(d) However, the member may reinstate the rights and credit for service previously
forfeited under this chapter if the member repays all refunds taken, plus interest at the
rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually
from the date on which the refund was taken to the date on which the refund is repaid.
new text begin Repayment must be made as provided in section 352.23, paragraph (d).
new text end
(e) No person may be required to apply for or to accept a refund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 2.
Minnesota Statutes 2014, section 3A.03, subdivision 3, is amended to read:
Subd. 3.
Legislators retirement fund.
(a) The legislators retirement fund, a special
retirement fund, is created within the state treasury. The legislators retirement fund must
be credited with any investment proceeds on the assets of the retirement fund.
(b) The payment of annuities under section 3A.115, paragraph (b), is appropriated
from the legislators retirement fund.
new text begin
(c) The legislators retirement fund may receive transfers of general fund proceeds.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 3.
Minnesota Statutes 2014, section 16A.14, subdivision 2a, is amended to read:
Subd. 2a.
Exceptions.
The allotment and encumbrance system does not apply to:
(1) appropriations for the courts or the legislature;
(2) payment of unemployment benefitsdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(3) transactions within the defined contribution funds administered by the Minnesota
State Retirement System.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 4.
Minnesota Statutes 2014, section 352.03, subdivision 5, is amended to read:
Subd. 5.
Executive directordeleted text begin ;deleted text end new text begin , deputy director, andnew text end assistant director.
(a) The
new text begin board shall appoint an new text end executive director, in this chapter called the director, deleted text begin of the
system must be appointed by the boarddeleted text end on the basis of deleted text begin fitnessdeleted text end new text begin educationnew text end , experience in
the retirement field, deleted text begin and leadershipdeleted text end abilitynew text begin to manage and lead system staff, and ability
to assist the board in setting a vision for the systemnew text end . The director must have had at
least five years' experience deleted text begin on the administrative staff of a major retirement systemdeleted text end new text begin in
either an executive level management position or in a position with responsibility for the
governance, management, or administration of a retirement plannew text end .
(b) The executive directornew text begin , deputy director, new text end and assistant director must be in the
unclassified service but appointees may be selected from civil service lists if desired. The
salary of the executive director must be as provided by section 15A.0815. The salary of
the new text begin deputy director and new text end assistant director must be set in accordance with section 43A.18,
subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 5.
Minnesota Statutes 2014, section 352.03, subdivision 6, is amended to read:
Subd. 6.
Duties and powers of executive director.
The management of the system
is vested in the director, who is the executive and administrative head of the system. new text begin The
director may appoint a deputy director and an assistant director with the approval of the
board. new text end The director shall be advisor to the board on matters pertaining to the system and
shall also act as the secretary of the board. The director shall:
(1) attend meetings of the board;
(2) prepare and recommend to the board appropriate rules to carry out this chapter;
(3) establish and maintain an adequate system of records and accounts following
recognized accounting principles and controls;
deleted text begin
(4) designate an assistant director with the approval of the board;
deleted text end
deleted text begin (5)deleted text end new text begin (4) new text end appoint any employees, both permanent and temporary, that are necessary to
carry out the provisions of this chapter;
deleted text begin (6)deleted text end new text begin (5) new text end organize the work of the system as the director deems necessary to fulfill the
functions of the system, and define the duties of its employees and delegate to them any
powers or duties, subject to the control of the director and under conditions the director
may prescribe. Appointments to exercise delegated power must be by written order and
shall be filed with the secretary of state;
deleted text begin (7)deleted text end new text begin (6) new text end with the advice and consent of the board, contract for the services of an
approved actuary, professional management services, and any other consulting services as
necessary and fix the compensation for those services. The contracts are not subject to
competitive bidding under chapter 16C. Any approved actuary retained by the executive
director shall function as the actuarial advisor of the board and the executive director, and
may perform actuarial valuations and experience studies to supplement those performed
by the actuary retained under section 356.214. Any supplemental actuarial valuations or
experience studies shall be filed with the executive director of the Legislative Commission
on Pensions and Retirement. Professional management services may not be contracted for
more often than once in six years. Copies of professional management survey reports must
be transmitted to the secretary of the senate, the chief clerk of the house of representatives,
and the Legislative Reference Library as provided by section 3.195, and to the executive
director of the commission at the time as reports are furnished to the board. Only
management firms experienced in conducting management surveys of federal, state, or
local public retirement systems are qualified to contract with the director;
deleted text begin (8)deleted text end new text begin (7) new text end with the advice and consent of the board provide in-service training for the
employees of the system;
deleted text begin (9)deleted text end new text begin (8) new text end make refunds of accumulated contributions to former state employees and
to the designated beneficiary, surviving spouse, legal representative, or next of kin of
deceased state employees or deceased former state employees, as provided in this chapter;
deleted text begin (10)deleted text end new text begin (9) new text end determine the amount of the annuities and disability benefits of employees
covered by the system and authorize payment of the annuities and benefits beginning as
of the dates on which the annuities and benefits begin to accrue, in accordance with the
provisions of this chapter;
deleted text begin (11)deleted text end new text begin (10) new text end pay annuities, refunds, survivor benefits, salaries, and necessary operating
expenses of the system;
deleted text begin (12)deleted text end new text begin (11) new text end certify funds available for investment to the State Board of Investment;
deleted text begin (13)deleted text end new text begin (12) new text end with the advice and approval of the board request the State Board of
Investment to sell securities when the director determines that funds are needed for the
system;
deleted text begin (14)deleted text end new text begin (13) new text end prepare and submit to the board and the legislature an annual financial
report covering the operation of the system, as required by section 356.20;
deleted text begin (15)deleted text end new text begin (14) new text end prepare and submit biennial and annual budgets to the board and with
the approval of the board submit the budgets to the Department of Management and
Budget; and
deleted text begin (16)deleted text end new text begin (15) new text end with the approval of the board, perform other duties required to administer
the retirement and other provisions of this chapter and to do its business.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 6.
Minnesota Statutes 2015 Supplement, section 352.23, is amended to read:
352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
(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 deleted text begin againdeleted text end be restored until the former
employee acquires at least six months of allowable service credit after taking the last
refunddeleted text begin . In that event, the employee may repaydeleted text end new text begin and repays new text end all refunds previously taken
from the retirement fundnew text begin with interest as provided in paragraph (d)new text end .
(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 rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded
annually from the date the refund was taken until the date the refund is repaid. deleted text begin They
deleted text end new text begin Repayment new text end may be deleted text begin paid in a lump sum or by payroll deduction in the manner provided in
section 352.04. Payment may bedeleted text end madenew text begin in partial payments consistent with section 356.44
during employment or new text end in a lump sum up to six months after termination from service.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 7.
Minnesota Statutes 2015 Supplement, section 352B.11, subdivision 4, is
amended to read:
Subd. 4.
Reentry into state service.
When a former member, who has become
separated from state service that entitled the member to membership and has received
a refund of retirement payments, reenters the state service in a position that entitles
the member to membership, that member shall receive credit for the period of prior
allowable state service if the member repays into the fund the amount of the refund, plus
interest on it at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter
compounded annuallydeleted text begin , at any time before subsequent retirement. Repayment may be
made in installments or in a lump sumdeleted text end .new text begin Repayment must be made as provided in section
352.23, paragraph (d).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 8.
Minnesota Statutes 2015 Supplement, section 352D.05, subdivision 4, is
amended to read:
Subd. 4.
Repayment of refund.
(a) A participant in the unclassified program may
repay regular refunds taken under section 352.22, as provided in section 352.23.
(b) A participant in the unclassified program or an employee covered by the general
employees retirement plan who has withdrawn the value of the total shares may repay
the refund taken and thereupon restore the service credit, rights and benefits forfeited by
paying into the fund the amount refunded plus interest at the rate of 8.5 percent until June
30, 2015, and eight percent thereafter compounded annually from the date that the refund
was taken until the date that the refund is repaid. If the participant had withdrawn only the
employee shares as permitted under prior laws, repayment must be pro rata.
(c) deleted text begin Except as provided in section 356.441, the repayment of a refund under this
section must be made in a lump sum.deleted text end new text begin Repayment must be made as provided in section
352.23, paragraph (d).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 9.
Minnesota Statutes 2015 Supplement, section 490.124, subdivision 12, is
amended to read:
Subd. 12.
Refund.
(a) A person who ceases to be a judge is entitled to a refund
in an amount that is equal to all of the member's employee contributions to the judges'
retirement fund plus interest computed under section 352.22, subdivision 2.
(b) A refund of contributions under paragraph (a) terminates all service credits and
all rights and benefits of the judge and the judge's survivors under this chapter.
(c) A person who becomes a judge again after taking a refund under paragraph (a)
may reinstate the previously terminated allowable service credit, rights, and benefits by
repaying the total amount of the previously received refund. The refund repayment must
include interest on the total amount previously received at the annual rate of 8.5 percent
until June 30, 2015, and eight percent thereafter, compounded annually, from the date on
which the refund was received until the date on which the refund is repaid.new text begin Repayment
must be made as provided in section 352.23, paragraph (d).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
ARTICLE 2
TEACHERS RETIREMENT ASSOCIATION
Section 1.
Minnesota Statutes 2014, section 354.05, subdivision 2, is amended to read:
Subd. 2.
Teacher.
(a) "Teacher" means:
(1) a person who renders service as a teacher, supervisor, principal, superintendent,
librarian, nurse, counselor, social worker, therapist, or psychologist innew text begin :
new text end
new text begin (i)new text end a public school of the state other than in Independent School District No. 625 deleted text begin or
in Independent School District No. 709, or in anydeleted text end new text begin ;
new text end
new text begin (ii) anew text end charter schooldeleted text begin , irrespective of the location of the school, or in anydeleted text end new text begin ; or
new text end
new text begin (iii) anew text end charitable, penal, or correctional deleted text begin institutionsdeleted text end new text begin institution new text end of a governmental
subdivisiondeleted text begin , or deleted text end new text begin ;
new text end
new text begin (2) a person new text end who is engaged in educational administration in connection with the
state public school system, whether the position be a public office or deleted text begin andeleted text end new text begin as new text end employmentnew text begin ;
new text end
new text begin (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, 2016, the charter school director or chief administrative officer shall
continue to be covered by that plan and not by the Teachers Retirement Associationnew text end ;
deleted text begin (2)deleted text end new text begin (4)new text end an employee of the Teachers Retirement Association;
deleted text begin (3)deleted text end new text begin (5)new text end 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
deleted text begin (4)deleted text end new text begin (6)new text end 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;
deleted text begin
(2) a person who renders part-time teaching service or who is a customized trainer
as defined by the Minnesota State Colleges and Universities system if (i) the service is
incidental to the regular nonteaching occupation of the person; and (ii) the employer
stipulates annually in advance that the part-time teaching service or customized training
service will not exceed 300 hours in a fiscal year and retains the stipulation in its records;
and (iii) the part-time teaching service or customized training service actually does not
exceed 300 hours in a fiscal year;
deleted text end
deleted text begin
(3) a person exempt from licensure under section 122A.30;
deleted text end
deleted text begin (4)deleted text end new text begin (2) new text end 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;
deleted text begin (5)deleted text end new text begin (3) new text end a person who is employed by the University of Minnesota;
deleted text begin (6)deleted text end new text begin (4) new text end 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
deleted text begin (7)deleted text end new text begin (5) new text end a person employed by Independent School District No. 625 deleted text begin or Independent
School District No. 709deleted text end as a teacher as defined in section 354A.011, subdivision 27.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 2.
Minnesota Statutes 2014, section 354.05, is amended by adding a subdivision
to read:
new text begin Subd. 17a. new text end
new text begin Former spouse. new text end
new text begin
"Former spouse" means a person who is no longer a
spouse of a member due to dissolution of the marriage, legal separation, or annulment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 3.
Minnesota Statutes 2014, section 354.06, subdivision 2, is amended to read:
Subd. 2.
President; executive director.
The board shall annually elect one of
its members as president. It shall elect an executive director, whose salary shall be as
provided by section 15A.0815. deleted text begin The salary of the assistant executive director who shall be
in the unclassified service, shall be set in accordance with section 43A.18, subdivision 3.
deleted text end The executive director shall serve during the pleasure of the board and be the executive
officer of the board, with such duties as the board shall prescribe. The board shall employ
all other clerks and employees necessary to properly administer the association. The
cost and expense of administering the provisions of this chapter shall be paid by the
association. The new text begin board shall appoint an new text end executive director deleted text begin shall be appointed by the
boarddeleted text end on the basis of deleted text begin fitnessdeleted text end new text begin educationnew text end , experience in the retirement field deleted text begin and leadershipdeleted text end new text begin ,
new text end abilitynew text begin to manage and lead system staff, and ability to assist the board in setting a vision
for the systemnew text end . The executive director shall have had at least five years of experience
deleted text begin on the administrative staff of a major retirement systemdeleted text end new text begin in either an executive-level
management position or in a position with responsibility for the governance, management,
or administration of a retirement plannew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 4.
Minnesota Statutes 2014, section 354.06, subdivision 2a, is amended to read:
Subd. 2a.
Duties of executive director.
The management of the association is
vested in the executive director who shall be the executive and administrative head of
the association. The executive director shall act as advisor to the board on all matters
pertaining to the association and shall also act as the secretary of the board. The executive
director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to carry out the provisions
of this chapter;
(3) establish and maintain an adequate system of records and accounts following
recognized accounting principles and controls;
(4) designatenew text begin , as necessary, a deputy executive director andnew text end an assistant executive
director in the unclassified servicenew text begin , as defined in section 43A.08, whose salaries shall
be set in accordance with section 43A.18, subdivision 3,new text end and two assistant executive
directors in the classified servicenew text begin , as defined in section 43A.07,new text end with the approval of the
board, and appoint such employees, both permanent and temporary, as are necessary to
carry out the provisions of this chapter;
(5) organize the work of the association as the director deems necessary to fulfill the
functions of the association, and define the duties of its employees and delegate to them
any powers or duties, subject to the director's control and under such conditions as the
director may prescribe;
(6) with the approval of the board, contract and set the compensation for the services
of an approved actuary, professional management services, and any other consulting
services. These contracts are not subject to the competitive bidding procedure prescribed
by chapter 16C. An approved actuary retained by the executive director shall function as
the actuarial advisor of the board and the executive director and may perform actuarial
valuations and experience studies to supplement those performed by the actuary retained
under section 356.214. Any supplemental actuarial valuations or experience studies shall
be filed with the executive director of the Legislative Commission on Pensions and
Retirement. Copies of professional management survey reports must be transmitted to the
secretary of the senate, the chief clerk of the house of representatives, and the Legislative
Reference Library as provided by section 3.195, and to the executive director of the
commission at the same time as reports are furnished to the board. Only management
firms experienced in conducting management surveys of federal, state, or local public
retirement systems are qualified to contract with the executive director;
(7) with the approval of the board, provide in-service training for the employees
of the association;
(8) make refunds of accumulated contributions to former members and to the
designated beneficiary, surviving spouse, legal representative, or next of kin of deceased
members or deceased former members, under this chapter;
(9) determine the amount of the annuities and disability benefits of members covered
by the association and authorize payment of the annuities and benefits beginning as of the
dates on which the annuities and benefits begin to accrue, under this chapter;
(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating
expenses of the association;
(11) prepare and submit to the board and the legislature an annual financial report
covering the operation of the association, as required by section 356.20;
(12) certify funds available for investment to the State Board of Investment;
(13) with the advice and approval of the board, request the State Board of Investment
to sell securities on determining that funds are needed for the purposes of the association;
(14) prepare and submit biennial and annual budgets to the board and with the
approval of the board submit those budgets to the Department of Management and
Budget; and
(15) with the approval of the board, perform such other duties as may be required for
the administration of the association and the other provisions of this chapter and for the
transaction of its business. The executive director may:
(i) reduce all or part of the accrued interest and fines payable by an employing
unit for reporting requirements under section 354.52, based on an evaluation of any
extenuating circumstances of the employing unit;
(ii) assign association employees to conduct field audits of an employing unit to
ensure compliance with the provisions of this chapter; and
(iii) recover overpayments, if not repaid to the association, by suspending or reducing
the payment of a retirement annuity, refund, disability benefit, survivor benefit, or optional
annuity under this chapter until the overpayment, plus interest, has been recovered.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 5.
Minnesota Statutes 2014, section 354.095, is amended to read:
354.095 MEDICAL LEAVE.
new text begin (a) new text end Upon granting a medical leave, an employing unit must certify the leave to the
association on a form specified by the executive director. A member of the association
who is on an authorized medical leave of absence is entitled to receive allowable service
credit, not to exceed deleted text begin one yeardeleted text end new text begin five yearsnew text end , for the period of leave, upon making the
prescribed payment to the fund under section 354.72. A member may not receive more
than one year of allowable service credit during any fiscal year by making payment under
this section. A member may not receive disability benefits under section 354.48 and
receive allowable service credit under this section for the same period of time.
new text begin
(b) The executive director shall reject an application for disability benefits under
section 354.48 if the member is applying only because an employer-sponsored provider of
private disability insurance benefits requires such an application and the member would
not have applied for disability benefits in the absence of such requirement. The member
shall submit a copy of the disability insurance policy that requires an application for
disability benefits from the plan if the member wishes to assert that the application is only
being submitted because of the disability insurance policy requirement.
new text end
new text begin (c) new text end Notwithstanding the provisions of any agreement to the contrary, employee
and employer contributions may not be made to receive allowable service credit under
this section if the member does not retain the right to full reinstatement both during and
at the end of the medical leave.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 6.
Minnesota Statutes 2015 Supplement, section 354.44, subdivision 9, is
amended to read:
Subd. 9.
Determining applicable law.
A former teacher who returns to covered
service following a termination and who is not receiving a retirement annuity under this
section must have earned at least deleted text begin 85 daysdeleted text end new text begin one-half year new text end of credited service following the
return to covered service to be eligible for improved benefits resulting from any law
change enacted subsequent to that termination.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 7.
Minnesota Statutes 2014, section 354.45, is amended by adding a subdivision
to read:
new text begin Subd. 3. new text end
new text begin Payment upon death of former spouse. new text end
new text begin
Upon the death of the former
spouse to whom payments are to be made before the end of the specified payment period,
payments shall be made according to the terms of a beneficiary form completed by the
former spouse or, if no beneficiary form, to the estate of the former spouse.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 8.
Minnesota Statutes 2014, section 354.46, subdivision 6, is amended to read:
Subd. 6.
Application.
(a) A beneficiary designation and an application for benefits
under this section must be in writing on a form prescribed by the executive director.
(b) Sections 354.55, subdivision 11, and 354.60 apply to a deferred annuity payable
under this section.
(c) Unless otherwise specified, the annuity must be computed under section 354.44,
subdivision 2 or 6, whichever is applicable.
new text begin
(d) Each designated beneficiary eligible for a lifetime benefit under this subdivision
may apply for an 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.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 9.
Minnesota Statutes 2014, section 354.48, subdivision 1, is amended to read:
Subdivision 1.
Age, service and salary requirements.
A member who is totally and
permanently disablednew text begin , who has not reached the normal retirement age as defined in section
354.05, subdivision 38, new text end and new text begin who new text end has at least three years of credited allowable service at the
time that the total and permanent disability begins is entitled to a disability benefit based
on this allowable service in an amount provided in subdivision 3. If the disabled member's
teaching service has terminated at any time, at least two of the required three years of
allowable service must have been rendered after last becoming a member. deleted text begin Any member
whose average salary is less than $75 per month is not entitled to disability benefits.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 10.
Minnesota Statutes 2014, section 354.52, subdivision 4, is amended to read:
Subd. 4.
Reporting and remittance requirements.
An employer shall remit all
amounts due to the association and furnish a statement indicating the amount due and
transmitted with any other information required by the executive director. If an amount
due is not received by the association within 14 calendar days of the payroll warrant,
the amount accrues interest at an annual rate of 8.5 percent compounded annually from
the due date until the amount is received by the association. All amounts due and other
employer obligations not remitted deleted text begin within 60 days of notification by the association must
deleted text end new text begin may new text end be certified to the commissioner of management and budget who shall deduct the
amount from any state aid or appropriation amount applicable to the employing unit.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 11.
Minnesota Statutes 2014, section 423A.02, subdivision 3, is amended to read:
Subd. 3.
Reallocation of amortization state aid.
(a) Seventy percent of the
difference between $5,720,000 and the current year amortization aid distributed under
subdivision 1 that is not distributed for any reason to a municipality must be distributed
by the commissioner of revenue according to this paragraph. The commissioner shall
distribute 60 percent of the amounts derived under this paragraph to the Teachers
Retirement Association, and 40 percent to the St. Paul Teachers Retirement Fund
Association to fund the unfunded actuarial accrued liabilities of the respective funds.
These payments must be made on July 15 each fiscal year. If the St. Paul Teachers
Retirement Fund Association deleted text begin or the Duluth Teachers Retirement Fund Association
deleted text end becomes fully funded, the association's eligibility for its portion of this aid ceases.
Amounts remaining in the undistributed balance account at the end of the biennium if aid
eligibility ceases cancel to the general fund.
(b) In order to receive amortization aid under paragraph (a), before June 30 annually
Independent School District No. 625, St. Paul, must make an additional contribution of
$800,000 each year to the St. Paul Teachers Retirement Fund Association.
(c) Thirty percent of the difference between $5,720,000 and the current year
amortization aid under subdivision 1 that is not distributed for any reason to a municipality
must be distributed under section 69.021, subdivision 7, paragraph (d), as additional
funding to support a minimum fire state aid amount for volunteer firefighter relief
associations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
ARTICLE 3
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
Section 1.
Minnesota Statutes 2015 Supplement, section 353.0162, is amended to read:
353.0162 deleted text begin REDUCED SALARY PERIODSdeleted text end SALARY CREDIT PURCHASE
new text begin FOR PERIODS OF REDUCED SALARYnew text end .
(a) A member may purchase deleted text begin additionaldeleted text end new text begin differential new text end salary creditnew text begin , as described in
paragraph (c),new text end for a period specified in deleted text begin this sectiondeleted text end new text begin paragraph (b)new text end .
(b) The applicable period is a period during which the member is receiving deleted text begin adeleted text end new text begin no or
new text end reduced salary from the employer while the member is:
(1) receiving deleted text begin temporarydeleted text end workers' compensation payments related to the member's
service to the public employer;
(2) on an authorized leave of absencenew text begin , except that if the authorized leave of absence
exceeds 12 months, the period of leave for which differential salary credit may be
purchased is limited to 12 monthsnew text end ; or
(3) on an authorized deleted text begin partial paiddeleted text end leave of absence as a result of a budgetary or salary
savings program offered or mandated by a governmental subdivisionnew text begin , if certified to the
executive director by the governmental subdivisionnew text end .
(c) deleted text begin Thedeleted text end Differential salary deleted text begin amountdeleted text end new text begin credit new text end is the difference between the deleted text begin average
monthlydeleted text end salary received by the member during deleted text begin thedeleted text end new text begin a new text end period deleted text begin of reduced salary under
this sectiondeleted text end new text begin specified in paragraph (b) new text end and the deleted text begin average monthlydeleted text end salary of the member,
excluding overtime, on which contributions to the applicable plan deleted text begin weredeleted text end new text begin would have
been new text end made during the period deleted text begin of the last six months of covered employment occurring
immediately before the period of reduced salary, applied todeleted text end new text begin based on new text end the member's normal
employment period, measured in hours or otherwise, as applicablenew text begin , and rate of paynew text end .
(d) To receive deleted text begin eligibledeleted text end new text begin differential new text end salary credit, the member shall pay new text begin the plan, by
delivering payment to the executive director, new text end an amount equal to:
(1) the applicable employee contribution rate under section 353.27, subdivision
2; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the
differential salary amount;
(2) plus an employer equivalent payment equal to the applicable employer
contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
subdivision 2, as applicable, multiplied by the differential salary amount;
(3) plus, if applicable, an equivalent employer additional amount equal to the
additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the
differential salary amount.
(e) The employer, by appropriate action of its governing body and documented in its
official records, may pay the employer equivalent contributions and, as applicable, the
equivalent employer additional contributions on behalf of the member.
(f) Payment under this section must include interest on the contribution amount or
amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015, and at an
eight percent annual rate thereafter, prorated for applicable months from the date on which
the period of reduced salary specified deleted text begin under this sectiondeleted text end new text begin in paragraph (b) new text end terminates to the
date on which the payment or payments are received by the executive director. Payment
under this section must be completed deleted text begin withindeleted text end new text begin by new text end the deleted text begin earlierdeleted text end new text begin earliest new text end ofnew text begin :new text end
new text begin (1) new text end 30 days deleted text begin fromdeleted text end new text begin after new text end termination of public service by the employee under section
353.01, subdivision 11adeleted text begin , or deleted text end new text begin ;
new text end
new text begin (2) new text end one year after the termination of the period specified in paragraph (b)deleted text begin , as further
restricted under this sectiondeleted text end new text begin ; or
new text end
new text begin (3) 30 days after the commencement of a disability benefitnew text end .
deleted text begin
(g) The period for which additional allowable salary credit may be purchased is
limited to the period during which the person receives temporary workers' compensation
payments or for those business years in which the governmental subdivision offers or
mandates a budget or salary savings program, as certified to the executive director by a
resolution of the governing body of the governmental subdivision. For an authorized leave
of absence, the period for which allowable salary credit may be purchased may not exceed
12 months of authorized leave.
deleted text end
deleted text begin (h) To purchasedeleted text end new text begin (g) If the member has purchased 12 months of differential new text end salary
credit deleted text begin for a subsequent period of temporary workers' compensation benefits or subsequent
authorized medical leave of absencedeleted text end , the member must return to public service and render
a minimum of three months of allowable servicenew text begin to purchase differential salary credit for
a subsequent leave of absencenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 2.
Minnesota Statutes 2014, section 353.32, subdivision 1, is amended to read:
Subdivision 1.
Before retirement.
If a member or former member deleted text begin who terminated
public servicedeleted text end dies before deleted text begin retirement or beforedeleted text end receiving any retirement annuity and no
other payment of any kind is or may become payable to any person, a refund is payable to
the designated beneficiary or, if there be none, to the surviving spouse, or, if none, to the
legal representative of the decedent's estate. The refund must be in an amount equal to
accumulated deductionsnew text begin , less the sum of any disability or survivor benefits that have been
paid by the fund,new text end plus annual compound interest thereon at the rate specified in section
353.34, subdivision 2, deleted text begin and less the sum of any disability or survivor benefits, if any, that
may have been paid by the fund;deleted text end provided that a survivor who has a right to benefits under
section 353.31 may waive such benefits in writing, except such benefits for a dependent
child under the age of 18 years may only be waived under an order of the district court.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 3.
Minnesota Statutes 2014, section 353.34, subdivision 2, is amended to read:
Subd. 2.
Refund with interest.
(a) Except as provided in subdivision 1, any person
who ceases to be a public employee is entitled to receive a refund in an amount equal
to accumulated deductions deleted text begin withdeleted text end new text begin , less the sum of any disability benefits that have been
paid by the fund, plusnew text end annual compound interest to the first day of the month in which
the refund is processed.
(b) For a person who ceases to be a public employee before July 1, 2011, the refund
interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after
June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the
refund interest is at the rate of four percent.
(c) If a person repays a refund and subsequently applies for another refund, the
repayment amount, including interest, is added to the fiscal year balance in which the
repayment was made.
(d) If the refund payable to a member is based on employee deductions that are
determined to be invalid under section 353.27, subdivision 7, the interest payable on the
invalid employee deductions is four percent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 4.
Minnesota Statutes 2015 Supplement, section 353.64, subdivision 10, is
amended to read:
Subd. 10.
Pension coverage for Hennepin Healthcare System, Inc.; paramedics
and emergency medical technicians.
An employee of Hennepin Healthcare System,
Inc. is a member of the public employees police and fire retirement plan under sections
353.63 to 353.68 if the person is:
(1) certified as a paramedic or emergency medical technician by the state under
section 144E.28, subdivision 4;
(2) employed full time new text begin by Hennepin County new text end asnew text begin :
new text end
new text begin (i)new text end a paramedic deleted text begin ordeleted text end new text begin ;
new text end
new text begin (ii) annew text end emergency medical technician deleted text begin by Hennepin Countydeleted text end new text begin ; or
new text end
new text begin (iii) a supervisor or manager of paramedics or emergency medical techniciansnew text end ; and
(3) not eligible for coverage under the agreement signed between the state and the
secretary of the federal Department of Health and Human Services making the provisions
of the federal Old Age, Survivors, and Disability Insurance Act applicable to paramedics
and emergency medical technicians because the person's position is excluded after that
date from application under United States Code, title 42, sections 418(d)(5)(A) and
418(d)(8)(D), and section 355.07.
Hennepin Healthcare System, Inc. shall deduct the employee contribution from
the salary of each full-time paramedic and emergency medical technician it employs as
required by section 353.65, subdivision 2, shall make the employer contribution for each
full-time paramedic and emergency medical technician it employs as required by section
353.65, subdivision 3, and shall meet the employer recording and reporting requirements
in section 353.65, subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 5. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2014, section 353.0161, subdivision 1,
new text end
new text begin
is repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2015 Supplement, section 353.0161, subdivisions 2 and
3,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
ARTICLE 4
ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
Section 1.
Minnesota Statutes 2014, section 354A.093, subdivision 4, is amended to
read:
Subd. 4.
Eligible payment period.
(a) To receive service credit under this section,
the contributions specified in this section must be transmitted to the deleted text begin applicable first class
citydeleted text end new text begin St. Paul new text end Teachers Retirement Fund Association during the period which begins with
the date the individual returns to teaching service and which has a duration of three times
the length of the uniformed service period, but not to exceed five years.
(b) Notwithstanding paragraph (a), if the payment period determined under
paragraph (a) is less than one year, the contributions required under this section to receive
service credit may be made within one year from the discharge date.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 2.
Minnesota Statutes 2015 Supplement, section 354A.093, subdivision 6, is
amended to read:
Subd. 6.
Interest requirements.
The employer shall pay interest on all equivalent
employee and employer contribution amounts payable under this sectiondeleted text begin . Interest must
be computed at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter
compounded annuallydeleted text end from the end of each fiscal year of the leave or break in service to the
end of the month in which payment is receivednew text begin at the annual compound rate of 8.5 percent
for any period, or portion thereof, through June 30, 2015, and eight percent thereafternew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 3.
Minnesota Statutes 2015 Supplement, section 354A.096, is amended to read:
354A.096 MEDICAL LEAVE.
Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
Association who is on an authorized medical leave of absence and subsequently returns to
teaching service is entitled to receive allowable service credit, not to exceed one year, for
the period of leave, upon making the prescribed payment to the fund. This payment must
include the required employee and employer contributions at the rates specified in section
354A.12, subdivisions 1 and 2a, as applied to the member's average full-time monthly
salary rate on the date the leave of absence commenced plus deleted text begin annualdeleted text end interestnew text begin compounded
annually from the end of the fiscal year during which the leave terminates to the end of
the month during which payment is madenew text end at the rate of 8.5 percent deleted text begin untildeleted text end new text begin for any period,
or portion thereof, new text end new text begin through new text end June 30, 2015, and eight percent thereafter deleted text begin per year from the
end of the fiscal year during which the leave terminates to the end of the month during
which payment is madedeleted text end . The member must pay the total amount required unless the
employing unit, at its option, pays the employer contributions. The total amount required
must be paid by the end of the fiscal year following the fiscal year in which the leave of
absence terminated or before the member retires, whichever is earlier. Payment must be
accompanied by a copy of the resolution or action of the employing authority granting the
leave and the employing authority, upon granting the leave, must certify the leave to the
association in a manner specified by the executive director. A member may not receive
more than one year of allowable service credit during any fiscal year by making payment
under this section. A member may not receive disability benefits under section 354A.36
and receive allowable service credit under this section for the same period of time.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 4.
Minnesota Statutes 2014, section 354A.38, as amended by Laws 2015, chapter
68, article 2, section 15, is amended to read:
354A.38 EFFECT OF REFUND; REPAYMENT OF REFUND.
Subdivision 1.
Effect of refund; termination of service credit.
If a coordinated
member or former coordinated member applies for and deleted text begin acceptsdeleted text end new text begin is issued new text end a refund pursuant
to section 354A.37, all allowable service which was credited to the member or former
member shall be terminated.
Subd. 2.
Repayment of refund.
A coordinated member with at least two years of
allowable service credited subsequent to the member's last application for and deleted text begin acceptance
deleted text end new text begin payment new text end of a refund pursuant to section 354A.37 shall be entitled to repay the refund. The
amount of the refund repayment shall be calculated pursuant to subdivision 3. If the
member has deleted text begin previously applied for and accepteddeleted text end new text begin taken new text end more than one refund, deleted text begin and the
previous refund ordeleted text end new text begin all new text end refunds deleted text begin have not beendeleted text end new text begin must be new text end repaidnew text begin pro ratanew text end deleted text begin , then the member
shall be entitled only to repay all outstanding refunds and shall not be entitled to repay
only the most recent refunddeleted text end .
Subd. 3.
Computation of refund repayment amount.
If the coordinated member
elects to repay a refund under subdivision 2, the repayment to the fund must be in an
amount equal to new text begin the new text end refunds the member has deleted text begin accepteddeleted text end new text begin been issued new text end plus interest deleted text begin at the rate
of 8.5 percent until June 30, 2015, and eight percent thereafterdeleted text end compounded annually
from the date that the refund was deleted text begin accepteddeleted text end new text begin issued new text end to the date that the refund is repaidnew text begin at a
rate of 8.5 percent for any period, or portion thereof, through June 30, 2015, and eight
percent thereafternew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
ARTICLE 5
RETIREMENT SYSTEMS GENERALLY
Section 1.
Minnesota Statutes 2014, section 354.52, subdivision 6, is amended to read:
Subd. 6.
Noncompliance consequences.
(a) An employing unit that does not
comply with the reporting requirements under subdivision 2a, 4a, 4b, or 4d, new text begin clause (1),
new text end must pay a fine of $5 per calendar day until the association receives the required data.
(b) If the annual base salary required to be reported under subdivision 4d has not
been settled or determined as of June 16, the fine commences if the annual base salary has
not been reported to the association within 14 days following the settlement date.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 2.
Minnesota Statutes 2014, section 356.30, subdivision 1, is amended to read:
Subdivision 1.
Eligibility; computation of annuity.
(a) Notwithstanding any
provisions of the laws governing the retirement plans enumerated in subdivision 3, a
person who has met the qualifications of paragraph (b) may elect to receivenew text begin :
new text end
new text begin (1)new text end a retirement annuity from each enumerated retirement plan in which the person
has at least one-half year of allowable service, based on the allowable service in each plandeleted text begin ,
deleted text end new text begin and new text end subject to the provisions of paragraph (c)deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(2) augmentation of a deferred annuity calculated at the appropriate rate under the
laws governing the applicable enumerated retirement plan.
new text end
(b) A person may receive, upon retirement, deleted text begin adeleted text end retirement deleted text begin annuity from each
enumerated retirement plan in which the person has at least one-half year of allowable
servicedeleted text end new text begin annuities as described in paragraph (a), clause (1)new text end , and augmentation of deleted text begin adeleted text end new text begin any
new text end deferred annuity deleted text begin calculated at the appropriate rate under the laws governing each public
pension plan or fund named in subdivision 3, based on the date of the person's initial
entry into public employment from the date the person terminated all public servicedeleted text end new text begin as
described in paragraph (a), clause (2), new text end if:
(1) the person has allowable service in any two or more of the enumerated plans;
(2) the person has sufficient allowable service in total that equals or exceeds the
applicable service credit vesting requirement of the retirement plan with the longest
applicable service credit vesting requirement; deleted text begin and
deleted text end
(3) the person has not begun to receive an annuity from any enumerated plan deleted text begin or the
person has made application for benefits from each applicable plandeleted text end new text begin before terminating all
public service;new text end and
new text begin (4)new text end the effective dates of the retirement annuity with each plan under which the
person chooses to receive an annuity are within a one-year period.
(c) The retirement annuity from each plan must be based upon the allowable service,
accrual rates, and average salary in the applicable plan except as further specified or
modified in the following clauses:
(1) the laws governing annuities must be the law in effect on the date of termination
from the last period of public service under a covered retirement plan with which the person
earned a minimum of one-half year of allowable service credit during that employment;
(2) the "average salary" on which the annuity from each covered plan in which
the employee has credit in a formula plan must be based on the employee's highest five
successive years of covered salary during the entire service in covered plans;
(3) the accrual rates to be used by each plan must be those percentages prescribed by
each plan's formula as continued for the respective years of allowable service from one
plan to the next, recognizing all previous allowable service with the other covered plans;
(4) the allowable service in all the plans must be combined in determining eligibility
for and the application of each plan's provisions in respect to reduction in the annuity
amount for retirement prior to normal retirement age; and
(5) the annuity amount payable for any allowable service under a nonformula plan
of a covered plan must not be affected, but such service and covered salary must be used
in the above calculation.
(d) This section does not apply to any person whose final termination from the last
public service under a covered plan was before May 1, 1975.
(e) For the purpose of computing annuities under this section, the accrual rates
used by any covered plan, except the public employees police and fire plan, the judges
retirement fund, and the State Patrol retirement plan, must not exceed 2.7 percent per year
of service for any year of service or fraction thereof. The formula percentage used by the
judges retirement fund must not exceed 3.2 percent per year of service for any year of
service or fraction thereof. The accrual rate used by the public employees police and fire
plan and the State Patrol retirement plan must not exceed 3.0 percent per year of service
for any year of service or fraction thereof. The accrual rate or rates used by the legislators
retirement plan must not exceed 2.5 percent, but this limit does not apply to the adjustment
provided under section 3A.02, subdivision 1, paragraph (c).
(f) Any period of time for which a person has credit in more than one of the covered
plans must be used only once for the purpose of determining total allowable service.
(g) If the period of duplicated service credit is more than one-half year, or the person
has credit for more than one-half year, with each of the plans, each plan must apply its
formula to a prorated service credit for the period of duplicated service based on a fraction
of the salary on which deductions were paid to that fund for the period divided by the total
salary on which deductions were paid to all plans for the period.
(h) If the period of duplicated service credit is less than one-half year, or when
added to other service credit with that plan is less than one-half year, the service credit
must be ignored and a refund of contributions made to the person in accord with that
plan's refund provisions.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 3.
Minnesota Statutes 2015 Supplement, section 356.50, subdivision 2, is
amended to read:
Subd. 2.
Service credit procedure.
(a) To obtain the public pension plan
allowable service credit, the eligible person under subdivision 1 shall pay the required
member contribution amount. The required member contribution amount is the member
contribution rate or rates in effect for the pension plan during the period of service covered
by the back pay award, applied to the unpaid gross salary amounts of the back pay award
including unemployment insurance, workers' compensation, or wages from other sources
which reduced the back award. No contributions may be made under this clause for
compensation covered by a public pension plan listed in section 356.30, subdivision 3,
for employment during the removal period. The person shall pay the required member
contribution amount within 60 days of the date of receipt of the back pay award or within
60 days of a billing from the retirement fund, whichever is later.
(b) The public employer who wrongfully discharged the public employee must pay
an employer contribution on the back pay award. The employer contribution must be
based on the employer contribution rate or rates in effect for the pension plan during the
period of service covered by the back pay award, applied to the salary amount on which
the member contribution amount was determined under paragraph (a). new text begin The employer must
pay the new text end interest on both the required member and employer contribution deleted text begin amount must be
paid by the employerdeleted text end new text begin amounts from the date the contribution amount would have been paid
to the date of actual payment new text end at the annual compound rate of 8.5 percent for any period
for the Teachers Retirement Association and 8.5 percent deleted text begin untildeleted text end new text begin for any period, or portion
thereof, through new text end June 30, 2015, and eight percent thereafter, for any other retirement plan
listed in section 356.30, subdivision 3deleted text begin , per year, expressed monthly, between the date the
contribution amount would have been paid to the date of actual paymentdeleted text end . The employer
payment must be made within 30 days of the payment under paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 4.
Minnesota Statutes 2015 Supplement, section 356.551, subdivision 2, is
amended to read:
Subd. 2.
Determination.
(a) Unless the minimum purchase amount set forth in
paragraph (c) applies, the prior service credit purchase amount is an amount equal to the
actuarial present value, on the date of payment, as calculated by the chief administrative
officer of the pension plan and reviewed by the actuary retained under section 356.214,
of the amount of the additional retirement annuity obtained by the acquisition of the
additional service credit in this section.
(b) Calculation of this amount must be made using the preretirement interest rate
applicable to the public pension plan specified in section 356.215, subdivision 8, and
the mortality table adopted for the public pension plan. The calculation must assume
continuous future service in the public pension plan until, and retirement at, the age at
which the minimum requirements of the fund for normal retirement or retirement with an
annuity unreduced for retirement at an early age, including section 356.30, are met with
the additional service credit purchased. The calculation must also assume a full-time
equivalent salary, or actual salary, whichever is greater, and a future salary history that
includes annual salary increases at the applicable salary increase rate for the plan specified
in section 356.215, subdivision deleted text begin 4ddeleted text end new text begin 8new text end .
(c) The prior service credit purchase amount may not be less than the amount
determined by applying, for each year or fraction of a year being purchased, the sum of the
employee contribution rate, the employer contribution rate, and the additional employer
contribution rate, if any, applicable during that period, to the person's annual salary during
that period, or fractional portion of a year's salary, if applicable, plus interest deleted text begin at the annual
rate of 8.5 percentdeleted text end deleted text begin until June 30, 2015, and eight percent thereafterdeleted text end compounded annually
from the end of the year in which contributions would otherwise have been made to
the date on which the payment is receivednew text begin at the rate of 8.5 percent for any period for
the Teachers Retirement Association and 8.5 percent for any period, or portion thereof,
through June 30, 2015, and eight percent thereafter, for any other retirement plan listed
in section 356.30, subdivision 3new text end .
(d) Unless otherwise provided by statutes governing a specific plan, payment must
be made in one lump sum within one year of the prior service credit authorization or prior
to the member's effective date of retirement, whichever is earlier. Payment of the amount
calculated under this section must be made by the applicable eligible person.
(e) However, the current employer or the prior employer may, at its discretion, pay
all or any portion of the payment amount that exceeds an amount equal to the employee
contribution rates in effect during the period or periods of prior service applied to the
actual salary rates in effect during the period or periods of prior service, plus interest deleted text begin at the
rate of 8.5 percent a yeardeleted text end compounded annually from the date on which the contributions
would otherwise have been made to the date on which the payment is madenew text begin at the rate of
8.5 percent for any period for the Teachers Retirement Association and 8.5 percent for any
period, or portion thereof, through June 30, 2015, and eight percent thereafter, for any other
retirement plan listed in section 356.30, subdivision 3new text end . If the employer agrees to payments
under this subdivision, the purchaser must make the employee payments required under
this subdivision within 90 days of the prior service credit authorization. If that employee
payment is made, the employer payment under this subdivision must be remitted to the
chief administrative officer of the public pension plan within 60 days of receipt by the
chief administrative officer of the employee payments specified under this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 5.
Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
to read:
new text begin Subd. 9a. new text end
new text begin Definitions. new text end
new text begin
(a) The following definitions apply for purposes of this
subdivision and subdivisions 10 to 12.
new text end
new text begin
(b) "Annual addition" means the sum for the limitation year of all pretax and after-tax
contributions made by the member or the member's employer and credited to an account
in the name of the member in any defined contribution plan maintained by the employer.
new text end
new text begin
(c) "Compensation" means the compensation actually paid or made available to
a member for any limitation year, including all items of remuneration described in
Code of Federal Regulations, title 26, section 1.415(c)-2(b), and excluding all items of
remuneration described in Code of Federal Regulations, title 26, section 1.415(c)-2(c).
Compensation for pension plan purposes for any limitation year shall not exceed the
applicable federal compensation limit described in section 356.611, subdivision 2.
new text end
new text begin
(d) "Limitation year" means the calendar year or fiscal year, whichever is applicable
to the particular pension plan.
new text end
new text begin
(e) "Maximum permissible benefit" means an annual benefit of $160,000,
automatically adjusted under section 415(d) of the Internal Revenue Code for each
limitation year ending after December 31, 2001, payable in the form of a single life
annuity. The new limitation shall apply to limitation years ending with or within the
calendar year of the date of the adjustment, but a member's benefits shall not reflect the
adjusted limit prior to January 1 of that calendar year. The maximum permissible benefit
amount shall be further adjusted as follows:
new text end
new text begin
(1) if the member has less than ten years of participation, the maximum permissible
benefit shall be multiplied by a fraction, the numerator of which is the number of years (or
part thereof, but not less than one year) of participation in the plan, and the denominator of
which is ten;
new text end
new text begin
(2) if the annual benefit begins before the member has attained age 62, the
determination as to whether the maximum permissible benefit limit has been satisfied shall
be made, in accordance with regulations prescribed by the United States secretary of the
treasury, by reducing the limit so that the limit, as so reduced, equals an annual benefit,
beginning when the annual benefit actually begins, which is equivalent to a $160,000, as
adjusted, annual benefit beginning at age 62; and
new text end
new text begin
(3) if the annual benefit begins after the member has attained age 65, the
determination as to whether the maximum permissible benefit limit has been satisfied shall
be made, in accordance with regulations prescribed by the United States secretary of the
treasury, by increasing the limit so that the limit, as so increased, equals an annual benefit,
beginning when the annual benefit actually begins, which is equivalent to a $160,000, as
adjusted, annual benefit beginning at age 65.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 6.
Minnesota Statutes 2015 Supplement, section 356.635, subdivision 10, is
amended to read:
Subd. 10.
new text begin Annual new text end benefit limitationsnew text begin ; defined benefit plansnew text end .
new text begin
(a) The annual benefit
payable to a member shall not exceed the maximum permissible benefit. If the benefit the
member would otherwise receive for a limitation year would result in the payment of an
annual benefit in excess of the maximum permissible benefit, the benefit shall be reduced
to the extent necessary so the benefit does not exceed the maximum permissible benefit.
new text end
new text begin (b) new text end For purposes of applying the deleted text begin limits of section 415(b) of the Internal Revenue
Code, a retirementdeleted text end new text begin limitation in paragraph (a), an annual new text end benefit that is payable in any
form other than a single life annuity deleted text begin and that is subject to section 417(e)(3) of the Internal
Revenue Code mustdeleted text end new text begin shall new text end be adjusted to an actuarially equivalent single life annuity
that equals, if the annuity starting date is in a plan year beginning after 2005, the annual
amount of the single life annuity commencing at the same annuity starting date that has
the same actuarial present value as the deleted text begin participant'sdeleted text end new text begin member's new text end form of benefit, using
whichever of the following produces the greatest annual amount:
(1) the interest rate and the mortality table or other tabular factor specified in the
plan for adjusting benefits in the same form;
(2) a 5.5 percent interest rate assumption and the applicable mortality table; or
(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code
and the applicable mortality table, divided by 1.05.
new text begin
(c) If a member participated in more than one pension plan in which the employer
participates, the benefits under each plan must be reduced proportionately to satisfy the
limitation in paragraph (a).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 7.
Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Annual addition limitation; defined contribution plans. new text end
new text begin
The annual
additions by or on behalf of a member to a defined contribution plan for any limitation
year shall not exceed the lesser of (1) 100 percent of the member's compensation for
the limitation year or (2) the dollar limit in effect for the limitation year under section
415(c)(1)(A) of the Internal Revenue Code, as adjusted by the United States secretary of
the treasury under section 415(d)(1)(C) of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 8.
Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
to read:
new text begin Subd. 12. new text end
new text begin Incorporation by reference. new text end
new text begin
Any requirements of section 415(b) and (c)
of the Internal Revenue Code and related regulations and agency guidance not addressed
by subdivisions 10 and 11 shall be considered incorporated by reference, including
provisions applicable to qualified police and firefighters and to survivor and disability
benefits. Subdivisions 10 to 12 shall be interpreted in a manner that is consistent with the
requirements of section 415(b) and (c) of the Internal Revenue Code and the related
regulations.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 9.
Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
to read:
new text begin Subd. 13. new text end
new text begin Correction of errors. new text end
new text begin
The executive director of each plan may correct an
operational, demographic, employer eligibility, or plan document error as the executive
director deems necessary or appropriate to preserve and protect the plan's tax qualification
under section 401(a) of the Internal Revenue Code, including as provided in the Internal
Revenue Service's Employee Plans Compliance Resolution System (EPCRS) or any
successor thereto. To the extent deemed necessary by the executive director to implement
correction, the executive director may:
new text end
new text begin
(1) make distributions;
new text end
new text begin
(2) transfer assets; or
new text end
new text begin
(3) recover an overpayment by reducing future benefit payments or designating
appropriate revenue or source of funding that will restore to the plan the amount of the
overpayment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 10.
Minnesota Statutes 2014, section 356.96, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) Unless the language or context clearly indicates that
a different meaning is intended, for the purpose of this section, the terms in deleted text begin paragraphs
(b) to (e)deleted text end new text begin this subdivision new text end have the meanings given them.
(b) deleted text begin "Chief administrative officer"deleted text end new text begin "Executive director" new text end means the executive director
of a covered pension plan or the executive director's designee or representative.
(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision
2, clauses (1) to (4), (8), and (11) to (14), but does not mean the deferred compensation
plan administered under sections 352.965 and 352.97 or deleted text begin todeleted text end the postretirement health care
savings plan administered under section 352.98.
(d) "Governing board" means the Board of Trustees of the Public Employees
Retirement Association, the Board of Trustees of the Teachers Retirement Association, or
the Board of Directors of the Minnesota State Retirement System.
(e) "Person" deleted text begin includesdeleted text end new text begin means new text end an active, retired, deferred, or nonvested inactive
participant in a covered pension plan or a beneficiary of a participant, or an individual
who has applied to be a participant or who is or may be a survivor of a participant,
or new text begin the representative of new text end a state agency or other governmental unit that employs active
participants in a covered pension plan.
new text begin
(f) "Petitioner" means a person who has filed a petition for review of an executive
director's determination under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 11.
Minnesota Statutes 2014, section 356.96, subdivision 2, is amended to read:
Subd. 2.
Right to deleted text begin reviewdeleted text end new text begin appeal to executive director; determinationnew text end .
A
deleted text begin determination made by the chief administrative officerdeleted text end new text begin person may appeal a decision by
the staff new text end of a covered pension plan regarding deleted text begin adeleted text end new text begin the new text end person's eligibility, benefits, or other
rights under the plan deleted text begin with which the person does not agreedeleted text end new text begin to the executive director of
the plan. The appeal must be in writing and be delivered to the executive director. The
executive director may overturn, modify, or affirm the staff's decision. The executive
director's determinationnew text end is subject to review under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 12.
Minnesota Statutes 2014, section 356.96, subdivision 3, is amended to read:
Subd. 3.
Notice of determination.
deleted text begin
If the applicable chief administrative officer
denies an application or a written request, modifies a benefit, or terminates a benefit
of a person
deleted text end
deleted text begin
claiming a right or potential rights under a covered pension plan, the chief
administrative officer shall notify that person through a written notice containing:
deleted text end
new text begin
The
executive director shall issue a written notice of determination to the person who files an
appeal under subdivision 2. The notice of determination must be delivered by certified
mail to the address to which the most recent benefit payment was sent or, if that address
is that of a financial institution, to the last known address of the person. The notice of
determination shall include the following:
new text end
(1) a statement of the reasons for the determination;
(2) a deleted text begin noticedeleted text end new text begin statement new text end that the person may petition the governing board of the
covered pension plan for a review of the determination and that a person's petition for
review must be filed in the administrative office of the covered pension plan deleted text begin withindeleted text end new text begin no
later than new text end 60 days deleted text begin of the receiptdeleted text end new text begin after the date new text end of the written notice of deleted text begin thedeleted text end determination;
(3) a statement indicating that a failure to petition for review within 60 days
precludes the person from deleted text begin contesting indeleted text end any deleted text begin otherdeleted text end new text begin further new text end administrative new text begin or judicial
new text end review deleted text begin or court procedure the issues determined by the chief administrative officerdeleted text end new text begin of the
executive director's determinationnew text end ;
(4) a statement indicating that all relevant materials, documents, affidavits, and
other records that the person wishes to be reviewed in support of the petition new text begin and a list
of any witnesses who will testify before the governing board, along with a summary of
their testimony, new text end must be filed with deleted text begin and received indeleted text end the administrative office of the covered
pension plan at least 15 days before the date of the hearing under subdivision 10new text begin or as
directed by the administrative law judge who conducts a fact-finding conference under
subdivision 7, paragraph (b), or a contested case hearing under subdivision 12, paragraph
(b)new text end ; deleted text begin and
deleted text end
(5) a summary of this section, including all filing requirements and deadlinesdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(6) the statement required under subdivision 4, paragraph (a), if applicable.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 13.
Minnesota Statutes 2014, section 356.96, subdivision 4, is amended to read:
Subd. 4.
Termination of benefits.
(a) If deleted text begin a covered pension plan decides todeleted text end new text begin the
executive director's determination will new text end terminate a benefit that is being paid to a person,
deleted text begin before terminating the benefit, the chief administrative officer must, in addition to the
other procedures prescribed in this section, provide the individual with written notice of
the pending benefit termination by certified mail. The notice must explain the reason for
the pending benefit termination. The person must be given andeleted text end new text begin the notice of determination
must also state that the person has the new text end opportunity to explain, in writing, in person, by
telephone, or by e-mail, the reasons that the benefit should not be terminated.
(b) If the deleted text begin chief administrative officer is unable to contact the person anddeleted text end new text begin notice of
determination is returned as undeliverable, and the person cannot be reached by any other
reasonable means of communication, and the executive director new text end determines that a failure
to terminate the benefit will result in unauthorized payment by a covered pension plan,
the deleted text begin chief administrative officerdeleted text end new text begin executive director new text end may terminate the benefit immediately
deleted text begin upon mailing a written notice containing the information required by subdivision 3 to the
address to which the most recent benefit payment was sent and, if that address is that of a
financial institution, to the last known address of the persondeleted text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 14.
Minnesota Statutes 2014, section 356.96, subdivision 5, is amended to read:
Subd. 5.
Petition for review.
(a) new text begin Upon receipt of the notice of determination
required in subdivision 3, new text end a person deleted text begin who claims a right under subdivision 2deleted text end may petition
new text begin the governing board of the covered pension plan new text end for a review of deleted text begin that decision by the
governing board of the covered pension plandeleted text end new text begin the executive director's determinationnew text end .
(b) deleted text begin A petition under this section must be sent to the chief administrative officer
by mail and must be postmarkeddeleted text end new text begin The petitioner must file the petition for review with
the administrative office of the covered pension plan new text end no later than 60 days after the
deleted text begin person receiveddeleted text end new text begin date of new text end the notice new text begin of determination new text end required by subdivision 3. new text begin Filing of
the petition is effective upon mailing or personal delivery. new text end The petition must include
the deleted text begin person'sdeleted text end new text begin petitioner's new text end statement of the reason or reasons that the deleted text begin person believes the
decision of the chief administrative officerdeleted text end new text begin determination of the executive director
new text end should be reversed or modified. deleted text begin The petition may include all documentation and written
materials that the petitioner deems to be relevant. In developing a record for review by
the board when a decision is appealed, the chief administrative officer may direct that the
applicant participate in a fact-finding session conducted by an administrative law judge
assigned by the Office of Administrative Hearings and, as applicable, participate in a
vocational assessment conducted by a qualified rehabilitation counselor on contract with
the applicable retirement system.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 15.
Minnesota Statutes 2014, section 356.96, subdivision 6, is amended to read:
Subd. 6.
Failure to petition.
If a timely petition for review under subdivision 5 is
not filed with the deleted text begin chiefdeleted text end administrative deleted text begin officer,deleted text end new text begin office of new text end the covered pension deleted text begin plan'sdeleted text end new text begin plan,
the executive director's new text end determination is final and is not subject to further administrative
or judicial review.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 16.
Minnesota Statutes 2014, section 356.96, subdivision 7, is amended to read:
Subd. 7.
Notice of hearingnew text begin ; fact-finding; filing and timing requirementsnew text end .
(a)
After receiving a petition, the deleted text begin chief administrative officerdeleted text end new text begin executive director new text end must schedule
a deleted text begin timelydeleted text end new text begin hearing to new text end review deleted text begin ofdeleted text end the petition before the governing board of the covered
pension plannew text begin or the executive director may defer the scheduling of a hearing until after
a fact-finding conference under paragraph (b)new text end . deleted text begin The review must be scheduled to take
into consideration any necessary accommodations to allow the petitioner to participate
in the governing board's review.
deleted text end
new text begin
(b) The executive director may direct the petitioner to participate in a fact-finding
conference conducted by an administrative law judge assigned by the Office of
Administrative Hearings. The fact-finding conference is an informal proceeding not
subject to the provisions of Minnesota Rules, chapter 1400, except that part 1400.7300
shall govern the admissibility of evidence and part 1400.8603 shall govern how the
fact-finding conference is conducted. The administrative law judge must issue a report
and a recommendation to the governing board.
new text end
new text begin
(c) If the petitioner's claim relates to disability benefits, the executive director may
direct the petitioner to participate in a vocational assessment conducted by a qualified
rehabilitation counselor under contract with the covered pension plan. The counselor must
issue a report regarding the assessment to the governing board.
new text end
deleted text begin (b)deleted text end new text begin (d) new text end Not less than 30 calendar days before the new text begin date new text end scheduled new text begin for the new text end hearing
deleted text begin datedeleted text end new text begin before the governing boardnew text end , the deleted text begin chief administrative officerdeleted text end new text begin executive director new text end must
deleted text begin provide by mail todeleted text end new text begin notify new text end the petitioner deleted text begin an acknowledgment of the receipt of the person's
petition and a follow-up noticedeleted text end of the time and place of the meeting at which the governing
board is scheduled to deleted text begin consider the petition anddeleted text end new text begin conduct the hearing. If there has been
no fact-finding conference under paragraph (b), not less than 15 days before the date
scheduled for the hearing, the petitioner and the executive director new text end must provide deleted text begin a copydeleted text end new text begin to
the governing board and the other party copies new text end of all deleted text begin relevant documents,deleted text end new text begin documentary
new text end evidencedeleted text begin , summaries, and recommendations assembled by or on behalf of the plan
administration to be considered by the governing boarddeleted text end new text begin that will be presented and a list of
witnesses who will testify, along with a summary of their testimonynew text end .
deleted text begin
(c) all documents and materials that the petitioner wishes to be part of the record
for review must be filed with the chief administrative officer and must be received in the
offices of the covered pension plan at least 15 days before the date of the meeting at
which the petition is scheduled to be heard.
deleted text end
deleted text begin (d) Adeleted text end new text begin (e) The new text end petitioner may request a deleted text begin continuancedeleted text end new text begin postponement new text end of deleted text begin adeleted text end new text begin the date
new text end scheduled new text begin for the new text end hearing deleted text begin if the request is received by the chief administrative officer within
deleted text end new text begin before the governing board within a reasonable time, but no later than new text end ten calendar days deleted text begin of
deleted text end new text begin before new text end the scheduled new text begin hearing new text end date deleted text begin of the applicable board meeting. The chief administrative
officer must reschedule the review within a reasonable time. only one continuance may be
granted to any petitionerdeleted text end new text begin . A petitioner shall be granted only one postponement unless the
applicable covered pension plan agrees to additional postponementsnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 17.
Minnesota Statutes 2014, section 356.96, subdivision 8, is amended to read:
Subd. 8.
Record for review.
(a) All evidence, including all records, documents, and
affidavits in the possession of the covered pension plan of which the covered pension plan
desires to avail itself and be considered by the governing board, and all evidence which the
petitioner wishes to present to the governing board, including any evidence which would
otherwise be classified by law as "private," must be made part of the hearing record.
(b) The deleted text begin chief administrative officerdeleted text end new text begin executive director new text end must provide a copy of
the record to each member of the governing board at least deleted text begin sevendeleted text end new text begin five new text end days before the
scheduled hearing date.
(c) deleted text begin Any additional document, affidavit, or other relevant information that the
petitioner requests be part of the record may be admitted with the consent of the governing
board.deleted text end new text begin If a fact-finding conference under subdivision 7, paragraph (b), is not conducted,
the record is limited to those materials provided to the petitioner in accordance with
subdivision 7, paragraph (d), those filed by the petitioner with the covered pension plan
in a timely manner in accordance with subdivision 7, paragraph (e), any vocational
assessment report under subdivision 7, paragraph (c), and any testimony at the hearing
before the governing board. Any additional evidence may be placed in the record pursuant
to subdivision 10, paragraph (b).
new text end
new text begin
(d) If a fact-finding conference under subdivision 7, paragraph (b), or a contested
case hearing under subdivision 12, paragraph (b), is conducted, the record before the
governing board must be limited to the following:
new text end
new text begin
(1) the record from the Office of Administrative Hearings;
new text end
new text begin
(2) seven-page submissions by the petitioner and a representative of the covered
pension plan commenting on the administrative law judge's recommendation; and
new text end
new text begin
(3) any vocational assessment report under subdivision 7, paragraph (c).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 18.
Minnesota Statutes 2014, section 356.96, subdivision 9, is amended to read:
Subd. 9.
Amended determination.
At any time before the hearing before the
governing board, for good cause shown and made part of the records of the plan, the deleted text begin chief
administrative officerdeleted text end new text begin executive director new text end may reverse, alter, amend, or modify the prior
decision which is subject to review under this section by issuing an amended deleted text begin decision
deleted text end new text begin determination to the petitionernew text end . Upon doing so, the deleted text begin chief administrative officerdeleted text end new text begin executive
director new text end may cancel the governing board's scheduled review of the person's petition and
deleted text begin shall sodeleted text end notify the petitioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 19.
Minnesota Statutes 2014, section 356.96, subdivision 10, is amended to read:
Subd. 10.
new text begin Board new text end hearing.
(a) The governing board shall hold a timely hearing
on a petition for review as part of a regularly scheduled board meeting, or as part of
a special meeting if so scheduled. All governing board members who participate in the
decision-making process must be familiar with the record. The governing board shall
make its decision on a petition solely on the record as submitted and on the proceedings
of the hearing.
new text begin (b)new text end At the hearing, the petitioner, the petitioner's deleted text begin attorneydeleted text end new text begin representative, if anynew text end , deleted text begin and
deleted text end the deleted text begin chief administrative officerdeleted text end new text begin executive director and a representative of the covered
pension plan who does not also serve as the governing board's legal advisor during the
board's decision-making process, new text end may state and discuss with the governing board their
positions with respect to the petition. new text begin If no fact-finding conference under subdivision
7, paragraph (b), or contested case hearing under subdivision 12, paragraph (b), was
conducted, additional evidence may be received in the form of testimony from previously
disclosed witnesses. new text end The governing board may allow further documentation to be placed
in the record at the board meeting only with the agreement of both the deleted text begin chief administrative
officerdeleted text end new text begin executive director new text end and the petitioner. The deleted text begin chief administrative officerdeleted text end new text begin executive
director new text end may not otherwise participate in the board's decision-making process.
deleted text begin
(b) When a petition presents a contested issue of law, an assistant attorney general
may participate and may argue on behalf of the legal position taken by the chief
administrative officer if that assistant attorney general does not also serve as the governing
board's legal advisor during the board's decision-making process.
deleted text end
deleted text begin
(c) A motion by a board member, supported by a summary of the relevant facts,
conclusions and reasons, as properly amended and approved by a majority of the
governing board, constitutes the board's final decision. A verbatim statement of the
board's final decision must be served upon the petitioner. If the decision is contrary to the
petitioner's desired outcome, the notice shall inform the petitioner of the appeal rights set
forth in subdivision 13.
deleted text end
deleted text begin (d)deleted text end new text begin (c) new text end If a petitioner who received timely notice of a scheduled hearing fails to
appear, the governing board may nevertheless hear the petition and issue a decision.
new text begin
(d) The governing board's decision shall be made upon a motion by a board member
and approval by a majority of the governing board. The governing board must issue
its decision as a written order containing findings of fact, conclusions of law, and the
board's decision no later than 30 days after the hearing. If the decision is contrary to the
petitioner's desired outcome, the notice must inform the petitioner of the appeal rights set
forth in subdivision 13.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 20.
Minnesota Statutes 2014, section 356.96, subdivision 11, is amended to read:
Subd. 11.
Disability medical issues.
deleted text begin (a)deleted text end If deleted text begin a person petitions the governing board
deleted text end new text begin the petitioner seeks new text end to reverse or modify a determination deleted text begin which founddeleted text end new text begin by the executive
director new text end that there deleted text begin exists nodeleted text end new text begin was insufficient new text end medical data deleted text begin supportingdeleted text end new text begin to support new text end an
application for disability benefits, the new text begin governing new text end board may reverse that determination
only if there is deleted text begin in factdeleted text end medical evidence supporting the application. The new text begin governing new text end board
has the discretion to resubmit a disability benefit application at any time to a medical
advisor for reconsideration, and the resubmission may include an instruction that further
medical examinations be obtained.
deleted text begin
(b) The governing board may make a determination contrary to the recommendation
of the medical advisor only if there is expert medical evidence in the record to support
its contrary decision. If there is no medical evidence contrary to the opinion of the
medical advisor in the record and the medical advisor attests that the decision was made in
accordance with the applicable disability standard, the board must follow the decision of
the medical advisor regarding the cause of the disability.
deleted text end
deleted text begin
(c) The obligation of the governing board to follow the decision of the medical
advisor under paragraph (b) does not apply to instances when the governing board makes
a determination different from the recommendation of the medical advisor on issues
that do not involve medical issues.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 21.
Minnesota Statutes 2014, section 356.96, subdivision 12, is amended to read:
Subd. 12.
Referral for administrative hearing.
(a) deleted text begin Notwithstanding any provision
of sections 14.03, 14.06, and 14.57 to 14.69 to the contrary, a challenge to a determination
of the chief administrative officer of a covered pension plandeleted text end new text begin A fact-finding conference
under subdivision 7, paragraph (b), new text end must be conducted exclusively under the procedures
set forth in this section and deleted text begin isdeleted text end not new text begin as new text end a contested case under chapter 14.
(b) deleted text begin Notwithstanding the provisions of paragraph (a),deleted text end A governing board, in its sole
discretion, may refer a petition brought under this section to the Office of Administrative
Hearings for a contested case hearing under sections 14.57 to 14.69.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
Sec. 22.
Minnesota Statutes 2014, section 356.96, subdivision 13, is amended to read:
Subd. 13.
Appeal of the governing board's decision; judicial review.
deleted text begin Withindeleted text end new text begin No
later than new text end 60 days deleted text begin ofdeleted text end new text begin after new text end the date of the mailing of the notice of the governing board's
decision, the petitioner may appeal the decision by filing a writ of certiorari with the
Court of Appeals under section 606.01 and Rule 115 of the Minnesota Rules of Civil
Appellate Procedure. Failure by a person to appeal to the Court of Appeals within the
60-day period precludes the person from later raising, in any subsequent administrative
hearing or court proceeding, deleted text begin thosedeleted text end substantive and procedural issues that reasonably
should have been raised upon a timely appeal.
Sec. 23. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2014, sections 356.611, subdivisions 3, 3a, 4, and 5; and 356.96,
subdivisions 14 and 15,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016.
new text end
ARTICLE 6
ACTUARIAL ASSUMPTIONS
Section 1.
Minnesota Statutes 2015 Supplement, section 356.215, subdivision 8,
is amended to read:
Subd. 8.
Interest and salary assumptions.
(a) The actuarial valuation must use the
applicable following interest assumption:
deleted text begin
(1) select and ultimate interest rate assumption
deleted text end
|
deleted text begin
plan deleted text end |
deleted text begin
ultimate interest rate assumption deleted text end |
|
|
deleted text begin
teachers retirement plan deleted text end |
deleted text begin
8.5% deleted text end |
deleted text begin
The select preretirement interest rate assumption for the period through June 30,
2017, is eight percent.
deleted text end
deleted text begin
(2) single rate interest rate assumption
deleted text end
| plan |
interest rate assumption |
|
| general state employees retirement plan |
8% |
|
| correctional state employees retirement plan |
8 |
|
| State Patrol retirement plan |
8 |
|
| legislators retirement plan, and for the constitutional officers calculation of total plan liabilities |
0 |
|
| judges retirement plan |
8 |
|
| general public employees retirement plan |
8 |
|
| public employees police and fire retirement plan |
8 |
|
| local government correctional service retirement plan |
8 |
|
|
new text begin
teachers retirement plan new text end |
new text begin
8 new text end |
|
| St. Paul teachers retirement plan |
8 |
|
| Bloomington Fire Department Relief Association |
6 |
|
| local monthly benefit volunteer firefighter relief associations |
5 |
|
| monthly benefit retirement plans in the statewide volunteer firefighter retirement plan |
6 |
(b)(1) If funding stability has been attained, the valuation must use a postretirement
adjustment rate actuarial assumption equal to the postretirement adjustment rate specified
in section deleted text begin 354A.27, subdivision 7;deleted text end 354A.29, subdivision 9deleted text begin ;deleted text end new text begin ,new text end or 356.415, subdivision 1,
whichever applies.
(2) If funding stability has not been attained, the valuation must use a select
postretirement adjustment rate actuarial assumption equal to the postretirement adjustment
rate specified in section deleted text begin 354A.27, subdivision 6a;deleted text end 354A.29, subdivision 8deleted text begin ;deleted text end new text begin ,new text end or 356.415,
subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the
approved actuary estimates that the plan will attain the defined funding stability measure,
and thereafter an ultimate postretirement adjustment rate actuarial assumption equal
to the postretirement adjustment rate under section deleted text begin 354A.27, subdivision 7;deleted text end 354A.29,
subdivision 9deleted text begin ;deleted text end new text begin ,new text end or 356.415, subdivision 1, for the applicable period or periods beginning
when funding stability is projected to be attained.
(c) The actuarial valuation must use the applicable following single rate future salary
increase assumption, the applicable following modified single rate future salary increase
assumption, or the applicable following graded rate future salary increase assumption:
(1) single rate future salary increase assumption
| plan |
future salary increase assumption |
|
| legislators retirement plan |
5% |
|
| judges retirement plan |
2.75 |
|
| Bloomington Fire Department Relief Association |
4 |
|
(2) age-related future salary increase deleted text begin age-related select and ultimate future salary
increase assumption or graded rate future salary increasedeleted text end assumption
| plan |
future salary increase assumption |
| local government correctional service retirement plan |
assumption B |
| St. Paul teachers retirement plan |
assumption A |
For deleted text begin plans other thandeleted text end the St. Paul Teachers
Retirement deleted text begin plan and the local government
correctional service retirement plan, the
select calculation is:deleted text end new text begin Fund Association,
new text end during deleted text begin thedeleted text end new text begin a new text end designated select periodnew text begin of 15
years, in addition to the age-based rates
shown belownew text end , a designated percentage rate
new text begin of 0.2 percent new text end is multiplied by the result of
deleted text begin the designated integerdeleted text end new text begin 15 new text end minus T, where T
is the number of completed years of service,
and is added to the applicable future salary
increase assumption. deleted text begin The designated select
period is ten years and the designated integer
is ten for the local government correctional
service retirement plan and 15 for the St.
Paul Teachers Retirement Fund Association.
The designated percentage rate is 0.2 percent
for the St. Paul Teachers Retirement Fund
Association.
deleted text end
The ultimate future salary increase assumption is:
| age |
A |
B |
|
| 16 |
5.9% |
8.75% |
|
| 17 |
5.9 |
8.75 |
|
| 18 |
5.9 |
8.75 |
|
| 19 |
5.9 |
8.75 |
|
| 20 |
5.9 |
8.75 |
|
| 21 |
5.9 |
8.5 |
|
| 22 |
5.9 |
8.25 |
|
| 23 |
5.85 |
8 |
|
| 24 |
5.8 |
7.75 |
|
| 25 |
5.75 |
7.5 |
|
| 26 |
5.7 |
7.25 |
|
| 27 |
5.65 |
7 |
|
| 28 |
5.6 |
6.75 |
|
| 29 |
5.55 |
6.5 |
|
| 30 |
5.5 |
6.5 |
|
| 31 |
5.45 |
6.25 |
|
| 32 |
5.4 |
6.25 |
|
| 33 |
5.35 |
6.25 |
|
| 34 |
5.3 |
6 |
|
| 35 |
5.25 |
6 |
|
| 36 |
5.2 |
5.75 |
|
| 37 |
5.15 |
5.75 |
|
| 38 |
5.1 |
5.75 |
|
| 39 |
5.05 |
5.5 |
|
| 40 |
5 |
5.5 |
|
| 41 |
4.95 |
5.5 |
|
| 42 |
4.9 |
5.25 |
|
| 43 |
4.85 |
5 |
|
| 44 |
4.8 |
5 |
|
| 45 |
4.75 |
4.75 |
|
| 46 |
4.7 |
4.75 |
|
| 47 |
4.65 |
4.75 |
|
| 48 |
4.6 |
4.75 |
|
| 49 |
4.55 |
4.75 |
|
| 50 |
4.5 |
4.75 |
|
| 51 |
4.45 |
4.75 |
|
| 52 |
4.4 |
4.75 |
|
| 53 |
4.35 |
4.75 |
|
| 54 |
4.3 |
4.75 |
|
| 55 |
4.25 |
4.5 |
|
| 56 |
4.2 |
4.5 |
|
| 57 |
4.15 |
4.25 |
|
| 58 |
4.1 |
4 |
|
| 59 |
4.05 |
4 |
|
| 60 |
4 |
4 |
|
| 61 |
4 |
4 |
|
| 62 |
4 |
4 |
|
| 63 |
4 |
4 |
|
| 64 |
4 |
4 |
|
| 65 |
4 |
3.75 |
|
| 66 |
4 |
3.75 |
|
| 67 |
4 |
3.75 |
|
| 68 |
4 |
3.75 |
|
| 69 |
4 |
3.75 |
|
| 70 |
4 |
3.75 |
(3) service-related deleted text begin ultimatedeleted text end future salary increase assumption
| general state employees retirement plan of the Minnesota State Retirement System |
assumption A |
| general employees retirement plan of the Public Employees Retirement Association |
assumption B |
| Teachers Retirement Association |
assumption C |
| public employees police and fire retirement plan |
assumption D |
| State Patrol retirement plan |
assumption E |
| correctional state employees retirement plan of the Minnesota State Retirement System |
assumption F |
| service length |
A |
B |
C |
D |
E |
F |
| 1 |
deleted text begin 10.25deleted text end new text begin 14new text end % |
deleted text begin 11.78 deleted text end new text begin 11.5new text end % |
deleted text begin 12deleted text end new text begin 9.5new text end % |
12.75% |
7.75% |
5.75% |
| 2 |
deleted text begin
7.85
deleted text end
new text begin
11.5 new text end |
deleted text begin
8.65
deleted text end
new text begin
8.5 new text end |
deleted text begin
9
deleted text end
new text begin
9.5 new text end |
10.75 |
7.25 |
5.6 |
| 3 |
deleted text begin
6.65
deleted text end
new text begin
6.25 new text end |
deleted text begin
7.21
deleted text end
new text begin
7 new text end |
deleted text begin
8
deleted text end
new text begin
7.75 new text end |
8.75 |
6.75 |
5.45 |
| 4 |
deleted text begin
5.95
deleted text end
new text begin
5.5 new text end |
deleted text begin
6.33
deleted text end
new text begin
6 new text end |
deleted text begin
7.5
deleted text end
new text begin
7.25 new text end |
7.75 |
6.5 |
5.3 |
| 5 |
deleted text begin
5.45
deleted text end
new text begin
5.25 new text end |
deleted text begin
5.72
deleted text end
new text begin
5.5 new text end |
deleted text begin
7.25
deleted text end
new text begin
7 new text end |
6.25 |
6.25 |
5.15 |
| 6 |
deleted text begin
5.05
deleted text end
new text begin
5.15 new text end |
deleted text begin
5.27
deleted text end
new text begin
5.2 new text end |
7 |
5.85 |
6 |
5 |
| 7 |
deleted text begin
4.75
deleted text end
new text begin
5 new text end |
deleted text begin
4.91
deleted text end
new text begin
4.9 new text end |
6.85 |
5.55 |
5.75 |
4.85 |
| 8 |
deleted text begin
4.45
deleted text end
new text begin
4.75 new text end |
deleted text begin
4.62
deleted text end
new text begin
4.8 new text end |
6.7 |
5.35 |
5.6 |
4.7 |
| 9 |
deleted text begin
4.25
deleted text end
new text begin
4.5 new text end |
deleted text begin
4.38
deleted text end
new text begin
4.7 new text end |
6.55 |
5.15 |
5.45 |
4.55 |
| 10 |
deleted text begin
4.15
deleted text end
new text begin
4.25 new text end |
deleted text begin
4.17
deleted text end
new text begin
4.5 new text end |
6.4 |
5.05 |
5.3 |
4.4 |
| 11 |
deleted text begin
3.95
deleted text end
new text begin
4.2 new text end |
deleted text begin
3.99
deleted text end
new text begin
4.25 new text end |
6.25 |
4.95 |
5.15 |
4.3 |
| 12 |
deleted text begin
3.85
deleted text end
new text begin
4.15 new text end |
deleted text begin
3.83
deleted text end
new text begin
4.1 new text end |
6 |
4.85 |
5 |
4.2 |
| 13 |
deleted text begin
3.75
deleted text end
new text begin
4.1 new text end |
deleted text begin
3.69
deleted text end
new text begin
4 new text end |
5.75 |
4.75 |
4.85 |
4.1 |
| 14 |
deleted text begin
3.55
deleted text end
new text begin
4.05 new text end |
deleted text begin
3.57
deleted text end
new text begin
3.9 new text end |
5.5 |
4.65 |
4.7 |
4 |
| 15 |
deleted text begin
3.45
deleted text end
new text begin
4 new text end |
deleted text begin
3.45
deleted text end
new text begin
3.9 new text end |
5.25 |
4.55 |
4.55 |
3.9 |
| 16 |
deleted text begin
3.35
deleted text end
new text begin
3.95 new text end |
deleted text begin
3.35
deleted text end
new text begin
3.85 new text end |
5 |
4.55 |
4.4 |
3.8 |
| 17 |
deleted text begin
3.25
deleted text end
new text begin
3.9 new text end |
deleted text begin
3.26
deleted text end
new text begin
3.8 new text end |
4.75 |
4.55 |
4.25 |
3.7 |
| 18 |
deleted text begin
3.25
deleted text end
new text begin
3.85 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.75 new text end |
4.5 |
4.55 |
4.1 |
3.6 |
| 19 |
deleted text begin
3.25
deleted text end
new text begin
3.8 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.75 new text end |
deleted text begin
4.25
deleted text end
new text begin
4.3 new text end |
4.55 |
3.95 |
3.5 |
| 20 |
deleted text begin
3.25
deleted text end
new text begin
3.75 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.75 new text end |
deleted text begin
4
deleted text end
new text begin
4.2 new text end |
4.55 |
3.8 |
3.5 |
| 21 |
deleted text begin
3.25
deleted text end
new text begin
3.7 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.75 new text end |
deleted text begin
3.9
deleted text end
new text begin
4.1 new text end |
4.45 |
3.75 |
3.5 |
| 22 |
deleted text begin
3.25
deleted text end
new text begin
3.65 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.7 new text end |
deleted text begin
3.8
deleted text end
new text begin
4 new text end |
4.35 |
3.75 |
3.5 |
| 23 |
deleted text begin
3.25
deleted text end
new text begin
3.6 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.6 new text end |
deleted text begin
3.7
deleted text end
new text begin
3.9 new text end |
4.25 |
3.75 |
3.5 |
| 24 |
deleted text begin
3.25
deleted text end
new text begin
3.55 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.6 new text end |
deleted text begin
3.6
deleted text end
new text begin
3.8 new text end |
4.25 |
3.75 |
3.5 |
| 25 |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.6 new text end |
deleted text begin
3.5
deleted text end
new text begin
3.7 new text end |
4.25 |
3.75 |
3.5 |
| 26 |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
deleted text begin
3.5
deleted text end
new text begin
3.6 new text end |
4.25 |
3.75 |
3.5 |
| 27 |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
3.5 |
4.25 |
3.75 |
3.5 |
| 28 |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
3.5 |
4.25 |
3.75 |
3.5 |
| 29 |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
3.5 |
4.25 |
3.75 |
3.5 |
| 30 or more |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
deleted text begin
3.25
deleted text end
new text begin
3.5 new text end |
3.5 |
4.25 |
3.75 |
3.5 |
(d) The actuarial valuation must use the applicable following payroll growth
assumption for calculating the amortization requirement for the unfunded actuarial
accrued liability where the amortization retirement is calculated as a level percentage
of an increasing payroll:
| plan |
payroll growth assumption |
| general state employees retirement plan of the Minnesota State Retirement System |
3.5% |
| correctional state employees retirement plan |
3.5 |
| State Patrol retirement plan |
3.5 |
| judges retirement plan |
2.75 |
| general employees retirement plan of the Public Employees Retirement Association |
3.5 |
| public employees police and fire retirement plan |
3.5 |
| local government correctional service retirement plan |
3.5 |
| teachers retirement plan |
deleted text begin
3.75
deleted text end
new text begin
3.5 new text end |
| St. Paul teachers retirement plan |
4 |
(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a
different salary assumption or a different payroll increase assumption:
(1) has been proposed by the governing board of the applicable retirement plan;
(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
most recent actuarial valuation report if section 356.214 does not apply; and
(3) has been approved or deemed approved under subdivision 18.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2016, and applies to actuarial
valuations prepared on or after that date.
new text end