2001 Minnesota Statutes

CHAPTER 355. Social security coverage

  355.01 Definitions.  

    Subdivision 1.  For the purposes of this chapter, as 
 amended, the terms defined in this section have the meanings 
 ascribed to them herein.  

    Subd. 2.  The term "wages" means all remuneration for 
 employment as defined herein, including the cash value of all 
 remuneration paid in any medium other than cash, except that 
 such term shall not include that part of such remuneration 
 which, even if it were for "employment" within the meaning of 
 the Federal Insurance Contributions Act, would not constitute 
 "wages" within the meaning of that act.  

    Subd. 3.  The term "employment" means any service performed 
 by an employee in the employ of the state, or any political 
 subdivision thereof, for such employer, except (1) service which 
 in the absence of an agreement entered into under this chapter, 
 as amended, would constitute "employment" as defined in the 
 Social Security act; or (2) service which under the Social 
 Security Act may not be included in an agreement between the 
 state and the Secretary of Health, Education, and Welfare 
 entered into under this chapter, as amended.  Service which 
 under the Social Security Act may be included in an agreement 
 only upon certification by the governor in accordance with 
 section 218(d) (3) of that act shall be included in the term 
 "employment" if and when the governor issues, with respect to 
 such service, a certificate to the Secretary of Health, 
 Education, and Welfare.  

    Subd. 4.  The term "employee" includes an officer of a 
 state or political subdivision thereof.  

    Subd. 5.  The term "state agency" means the commissioner of 
 employee relations.  

    Subd. 6.  The term "Secretary of Health, Education, and 
 Welfare" includes any individual to whom the Secretary of 
 Health, Education, and Welfare has delegated any functions under 
 the Social Security Act with respect to coverage under such act 
 of employees of states and their political subdivisions.  

    Subd. 7.  Repealed, 1967 c 687 s 24 

    Subd. 8.  The term "Social Security Act" means the Act of 
 Congress approved August 14, 1935, chapter 531, Statutes at 
 Large, volume 49, page 620, officially cited as the "Social 
 Security Act," as such act has been and may from time to time be 
 amended (including regulations and requirements issued pursuant 
 thereto).  

    Subd. 9.  The term "Federal Insurance Contributions Act" 
 means subchapters A and B of chapter 21 of the Internal Revenue 
 Code of 1986, as amended through December 31, 1992; and the term 
 "employee tax" means the tax imposed by section 3101 of such 
 Code of 1986.  

    Subd. 10.  "Political subdivision" means any political 
 subdivision as defined in section 218(b) of the Social Security 
 Act, and includes any instrumentality of the state, any 
 instrumentality of one or more of its political subdivisions 
 including the League of Minnesota Municipalities, any 
 instrumentality of the state and one or more of its political 
 subdivisions, and an instrumentality established under an 
 agreement pursuant to section 471.59 wherein the instrumentality 
 is responsible for the employment and payment of the salaries of 
 employees of the instrumentality.  

    HIST: 1955 c 665 s 2; 1959 c 558 s 1,2; 1967 c 687 s 8; 1973 c 
 507 s 41,45; 1980 c 617 s 47; 1993 c 375 art 8 s 14 

  355.02 Agreements.  

    Subdivision 1.  The state agency, with the approval of the 
 governor, is hereby authorized to enter into an agreement on 
 behalf of the state with the Secretary of Health, Education, and 
 Welfare, consistent with the terms and provisions of this 
 chapter, as amended, for the purpose of extending the benefits 
 of the federal old age and survivors insurance system to 
 employees of the state or any political subdivision thereof with 
 respect to services specified in such agreement which constitute 
 "employment," whenever so specifically authorized by the 
 statutory provisions of this state pertaining to any coverage 
 group of such employees to which the agreement may become 
 applicable under the Social Security Act.  Pursuant to such 
 specific authorization the agreement may contain such provisions 
 relating to coverage, benefits, contributions, effective date, 
 modification and termination of the agreement, administration, 
 and other appropriate provisions as the state agency and the 
 Secretary of Health, Education, and Welfare shall agree upon, 
 but, except as may be otherwise required by or under the Social 
 Security Act as to the services to be covered, such agreement 
 shall provide in effect that 

    (1) Benefits will be provided for employees whose services 
 are covered by the agreement (and their dependents and 
 survivors) on the same basis as though such services constituted 
 employment within the meaning of title II of the Social Security 
 Act; 

    (2) The state will pay to the secretary of the treasury, at 
 such time or times as may be prescribed under the Social 
 Security Act, contributions with respect to wages, equal to the 
 sum of taxes which would be imposed by the Federal Insurance 
 Contributions Act if the services covered by the agreement 
 constituted employment within the meaning of that act; 

    (3) Such agreement shall be effective with respect to 
 services in employment covered by the agreement performed after 
 a date specified therein but in no event may it be effective 
 with respect to any such services performed prior to the first 
 day of the calendar year in which such agreement is entered into 
 or in which the modification of the agreement making it 
 applicable to such services, is entered into except that an 
 agreement or modification entered into prior to January 1, 1960, 
 may be effective with respect to services performed after 
 December 31, 1955, or after a later date specified in such 
 agreement or modification; 

    (4) All services which constitute employment and are 
 performed in the employ of the state or any of its political 
 subdivisions by employees thereof, may be covered by such 
 agreement whenever so specifically authorized by the statutory 
 provisions of this state pertaining to any coverage group of 
 such employees to which the agreement may become applicable 
 under the Social Security Act.  

    Subd. 2.  Any instrumentality jointly created by this state 
 and any other state or states is hereby authorized, upon the 
 granting of like authority by such other state or states, (1) to 
 enter into an agreement with the Secretary of Health, Education, 
 and Welfare whereby the benefits of the federal old age and 
 survivors insurance system shall be extended to employees of 
 such instrumentality, (2) to require its employees to pay (and 
 for that purpose to deduct from their wages) contributions equal 
 to the amounts which they would be required to pay under section 
 355.03, subdivision 1, if they were covered by an agreement made 
 pursuant to subdivision 1, and (3) to make payments to the 
 secretary of the treasury in accordance with such agreement, 
 including payments from its own funds, and otherwise to comply 
 with such agreements.  Such agreements shall, to the extent 
 practicable, be consistent with the terms and provisions of 
 subdivision 1 and other provisions of this chapter, as amended. 

    HIST: 1955 c 665 s 3; 1959 c 558 s 3,4 

  355.03 Employees, contributions.  

    Subdivision 1.  Every employee of the state, or any of its 
 political subdivisions, whose services are covered by the 
 agreement entered into under section 355.02 shall be required to 
 pay for the period of such coverage, into the contribution fund 
 established by section 355.04, contributions, with respect to 
 wages, equal to the amount of the employee's tax which would be 
 imposed by the Federal Insurance Contributions Act if such 
 services constituted employment within the meaning of that act.  
 Such liability shall arise in consideration of the employee's 
 retention in the service of the state, or any of its political 
 subdivisions, or the employee's entry upon such service, after 
 the enactment of this chapter, as amended. 

    Subd. 2.  The contribution imposed by this section shall be 
 collected by deducting the amount of the contribution from wages 
 as and when paid, but failure to make such deduction shall not 
 relieve the employee from liability for such contribution.  

    Subd. 3.  If more or less than the correct amount of the 
 contribution imposed by this section is paid or deducted with 
 respect to any remuneration, proper adjustments, or refund if 
 adjustment is impracticable, shall be made, without interest, in 
 such manner and at such times as the state agency shall 
 prescribe.  

    HIST: 1955 c 665 s 4; 1959 c 558 s 5; 1986 c 444 

  355.04 MS 1957 Renumbered 3.29 subd 4 

  355.04 MS 1992 Repealed, 1994 c 632 art 3 s 65 

  355.05 Rules.  

    The state agency shall make and publish such rules, not 
 inconsistent with the provisions of this chapter, as amended, as 
 it finds necessary or appropriate to the efficient 
 administration of the functions with which it is charged under 
 this chapter, as amended. 

    HIST: 1955 c 665 s 6; 1959 c 558 s 9; 1985 c 248 s 70 

  355.06 MS 1957 Renumbered 3.29 subd 6 

  355.06 MS 1992 Repealed, 1994 c 632 art 3 s 65 

  355.07 Declaration of policy. 

    In order to extend to employees of the state and its 
 political subdivisions and to the dependents and survivors of 
 such employees, the basic protection accorded to others by the 
 old age and survivors insurance system embodied in the Social 
 Security Act, it is hereby declared to be the policy of the 
 legislature, subject to the limitations of this chapter that 
 these steps are taken to provide protection to employees of the 
 state and its political subdivisions on as broad a basis as may 
 be authorized by the legislature and is permitted under the 
 Social Security Act.  It is also the policy of the legislature 
 that the protection afforded employees in positions covered by a 
 retirement system on the date an agreement under this chapter is 
 made applicable to service performed in those positions, or 
 receiving periodic benefits under the retirement system at that 
 time, will not be impaired as a result of making the agreement 
 so applicable or as a result of legislative enactment in 
 anticipation thereof when combined with the benefits accorded 
 the employee by the Social Security Act.  To this end the 
 agreement referred to in section 355.02 shall not be made 
 applicable to any service performed in any position covered by a 
 retirement system unless a referendum is first held by secret 
 ballot in which a majority of "eligible employees," as defined 
 in section 218(d) (3) of the Social Security Act vote in favor 
 thereof, or unless a retirement system is divided in two 
 divisions or parts, one of which is composed of positions of 
 members of the system who desire coverage and one of which is 
 composed of positions of members of the system who do not desire 
 coverage under section 218(d) (3) of the Social Security Act, in 
 accordance with subsections (6) and (7) thereof.  Nothing in any 
 provision of this chapter shall authorize the extension of the 
 insurance system established by this chapter, as amended, to 
 service in any police officer's or firefighter's position or in 
 any position covered by a retirement system applicable 
 exclusively to positions in one or more law enforcement or fire 
 fighting units, agencies or departments.  

    HIST: 1955 c 665 s 1; 1959 c 558 s 11; 1977 c 429 s 63; 1981 c 
 224 s 142 

  355.08 Application of Social Security Act.  

    The provisions of the Social Security Act, and all acts 
 amendatory thereof, shall govern relative to employees of the 
 state and political subdivisions subject to Minnesota Statutes, 
 chapter 355, as amended, anything in said chapter to the 
 contrary notwithstanding.  

    HIST: 1959 c 558 s 12 

  355.09 Renumbered 3.29 subd 9 

  355.10 Renumbered 3.29 subd 10 

  355.11 Definitions. 

    Subdivision 1.  For the purposes of sections 355.11 to 
 355.16 the terms defined in this section shall have the meanings 
 ascribed to them. 

    Subd. 2.  "Enabling Act" means sections 355.01 to 355.07. 

    Subd. 3.  The terms "Social Security Act," "state agency," 
 "wages," "contribution fund," and "Federal Insurance 
 Contributions Act" mean as defined in said "Enabling Act." 

    Subd. 4.  "Employee" means any employee, other than elected 
 officials, of municipal housing and redevelopment authorities or 
 of any soil and water conservation district organized pursuant 
 to chapter 103C, or any port authority organized pursuant to 
 chapter 458, or any hospital district organized or reorganized 
 pursuant to sections 447.31 to 447.37.  

    Subd. 5.  "Employing unit" means any municipal housing and 
 redevelopment authorities organized pursuant to sections 469.001 
 to 469.047 and any soil and water conservation district 
 organized pursuant to chapter 103C, or any port authority 
 organized pursuant to sections 469.048 to 469.068, or any 
 economic development authority organized pursuant to sections 
 469.090 to 469.108, or any hospital district organized or 
 reorganized pursuant to sections 447.31 to 447.37. 

    HIST: 1955 c 684 s 1; 1959 c 633 s 1,2; 1969 c 637 s 1; 1976 c 
 2 s 126; 1981 c 224 s 143-145; 1982 c 424 s 65; 1986 c 399 art 2 
 s 10; 1986 c 400 s 10; 1Sp1986 c 3 art 2 s 41; 1987 c 291 s 216; 
 1990 c 391 art 8 s 36,37 

     355.12 Agreements. 

    The state agency is hereby authorized to enter into an 
 agreement with the Secretary of Health, Education, and Welfare, 
 or to modify any such agreement previously made to obtain the 
 benefits of the federal old age survivors insurance system in 
 respect to services performed by employees of any employing unit.

    HIST: 1955 c 684 s 2; 1959 c 633 s 3; 1979 c 332 art 1 s 82 

     355.13 Employees, contributions. 

    Subdivision 1.  Effective retroactively with respect to 
 services performed after December 31, 1954, by its employees who 
 are such on the date of the agreement or modification, each and 
 every employing unit shall pay into the contribution fund 
 contributions with respect to wages equal to the sum of the 
 taxes which would be imposed by the Federal Insurance 
 Contributions Act if the services covered by the agreement 
 constituted employment within the meaning of that act.  

    Subd. 2.  Effective retroactively with respect to services 
 performed after December 31, 1954, by persons who are its 
 employees on the date of the agreement or modification, each and 
 every employing unit is authorized, in consideration of the 
 employee's retention in, or entry upon, employment after April 
 22, 1955, to impose upon each employee a contribution with 
 respect to the employee's wages not exceeding the amount of the 
 employee tax which would be imposed by the Federal Insurance 
 Contributions Act if the employment services constituted 
 employment within the meaning of that act, and to deduct the 
 amount of the contribution from the employee's wages as and when 
 paid.  Contributions so collected shall be paid into the 
 contribution fund in partial discharge of the liability of each 
 and every employing unit in respect thereto.  Failure to deduct 
 the contribution shall not relieve the employee or the employing 
 unit of liability therefor. 

    Subd. 3.  Delinquent payments due under this section, with 
 interest at the rate of six percent per annum, may be recovered 
 by action in a court of competent jurisdiction against each and 
 every employing unit liable therefor or may, at the request of 
 the state agency, be deducted from any other moneys payable to 
 such employing unit by any department or agency of the state.  

    HIST: 1955 c 684 s 3; 1959 c 633 s 4; 1981 c 224 s 146 

     355.14 Reimbursements by employing units.  

    Each and every employing unit shall reimburse the state 
 agency for its pro rata share of the cost of the administration 
 of said agency in accordance with the rules of the state agency 
 pertaining thereto.  Such reimbursements shall be paid into the 
 state agency revolving fund.  

    HIST: 1955 c 684 s 4; 1959 c 633 s 5; 1985 c 248 s 70 

     355.15 Reports.  

    Each and every employing unit shall make such reports in 
 such form and containing such information as the state agency 
 may from time to time require, and comply with such provisions 
 as the state agency or the Secretary of Health, Education and 
 Welfare may from time to time find necessary to assure the 
 correctness and verification of such reports.  

    HIST: 1955 c 684 s 5; 1959 c 633 s 6 

     355.16 Costs defrayed from proceeds of special benefit 
  taxes. 

    The proceeds of the special benefit taxes authorized to be 
 levied for redevelopment purposes under section 469.033, 
 subdivision 6, may be used to defray all or part of the costs 
 incurred by any housing and redevelopment authority under the 
 provisions of sections 355.11 to 355.16. 

    HIST: 1955 c 684 s 6; 1987 c 291 s 217 

     355.17 Modification of agreement, retroactive effect. 

    Employing units may individually determine whether they 
 desire inclusion in the state social security agreement, and 
 each employing unit desiring such inclusion shall so indicate by 
 submitting a formal resolution to the state agency, including 
 therein the desired starting date for social security coverage.  
 The state agency may modify the agreement between the state and 
 the Secretary of Health, Education and Welfare with respect to 
 employees of any such employing unit, separately, so as to 
 provide social security coverage therefor retroactive to any 
 date subsequent to December 31, 1955. 

    HIST: 1959 c 633 s 7; 1974 c 184 s 13; 1979 c 332 art 1 s 83 

     355.201 Definitions. 

    Subdivision 1.  For the purposes of sections 355.201 to 
 355.209, the terms defined in this section shall have the 
 meaning ascribed to them. 

    Subd. 2.  "Enabling Act" means sections 355.01 to 355.07. 

    Subd. 3.  The terms "Social Security Act," "state agency," 
 "employment," "wages," "contribution fund," "Federal Insurance 
 Contributions Act," and "political subdivision" mean as defined 
 in the Enabling Act. 

    Subd. 4.  "Teacher" means all employees of political 
 subdivisions who hold positions covered by the St. Paul teachers 
 retirement fund association established under the provisions of 
 chapter 354A. 

    HIST: 1977 c 429 s 38 

     355.202 Referendum. 

    Pursuant to the provisions of the Enabling Act, the 
 governor shall designate an agency or an individual to supervise 
 a referendum to be held after May 1, 1978, in accordance with 
 the provisions of section 218 (d) (6) (C) of the Social Security 
 Act, for teachers. 

    HIST: 1977 c 429 s 39 

     355.203 Notice of referendum. 

    The notice of referendum required by section 218 (d) of the 
 Social Security Act which is to be given to the teachers shall 
 contain a statement in such form as the agency or individual 
 designated to supervise the referendum shall deem necessary and 
 sufficient to inform the teachers of the rights which accrue to 
 them under the Social Security Act.  The statement shall also 
 inform the teachers of the effect that coverage under the Social 
 Security Act will have on their public retirement program. 

    HIST: 1977 c 429 s 40 

     355.204 Division of the St. Paul teachers retirement 
  fund association. 

    In accordance with section 218 (d) (6) (C) of the Social 
 Security Act, the state agency shall divide into two divisions 
 or parts the St. Paul teachers retirement fund association 
 established under the provisions of chapter 354A.  One division 
 or part of the retirement fund association shall be composed of 
 positions of teachers who desire coverage under an agreement 
 under section 218 (d) of the Social Security Act.  The other 
 division or part of the retirement fund association shall be 
 composed of positions of teachers who do not desire coverage 
 under such an agreement.  Each division or part shall be deemed 
 to be a separate retirement system for the purposes of section 
 218 (d) of the Social Security Act.  There shall be included in 
 the division or part composed of members desiring such coverage 
 the positions of teachers who become members of the St. Paul 
 teachers retirement fund association after such coverage is 
 extended; provided, a teacher whose service in a position 
 covered by the retirement fund association commences after the 
 date on which such social security coverage is extended shall be 
 deemed to become a member of the retirement fund association 
 upon the commencement of such service for purposes of this 
 section, notwithstanding the date of any employment contract. 

    HIST: 1977 c 429 s 41 

     355.205 Transfer of members. 

    In accordance with section 218 (d) (6) (F) of the Social 
 Security Act, and when the St. Paul teachers retirement fund 
 association is divided into two divisions or parts, the position 
 of any member of the division or part composed of positions of 
 teachers who do not desire coverage under an agreement under 
 section 218 (d) of the Social Security Act may be transferred to 
 the separate retirement system composed of teachers who desire 
 such coverage; and a modification of agreement between the state 
 and the Secretary of Health, Education, and Welfare may so 
 provide, but only if prior to such modification the individual 
 occupying such position files with the state agency a written 
 request for such transfer. 

    HIST: 1977 c 429 s 42 

     355.206 Certification by governor. 

    The governor on receiving satisfactory evidence that the 
 conditions specified in section 218 (d) (7) of the Social 
 Security Act have been met with respect to the St. Paul teachers 
 retirement fund association, shall so certify to the Secretary 
 of Health, Education, and Welfare. 

    HIST: 1977 c 429 s 43; 1986 c 444 

     355.207 Agreements with federal agency. 

    Upon the governor's certification pursuant to section 
 355.206, the state agency shall be authorized after June 30, 
 1978, to enter into an agreement with the Secretary of Health, 
 Education, and Welfare, or modify any such agreement previously 
 made with respect to teachers.  The agreement or modification 
 shall contain such terms and provisions authorized by the Social 
 Security Act and the Enabling Act as the state agency finds 
 proper. 

    HIST: 1977 c 429 s 44; 1979 c 332 art 1 s 84 

     355.208 Employer contributions. 

    Contributions required under the agreement or modification 
 entered into pursuant to section 355.207 to be made by political 
 subdivisions employing teachers, and payments required by 
 section 355.49, which shall apply to political subdivisions 
 employing teachers, shall be paid by the political 
 subdivisions.  Payments for school district or technical college 
 employees who are paid from normal operating funds, shall be 
 made from the appropriate fund of the district or technical 
 college. 

    HIST: 1977 c 429 s 45; 1Sp1985 c 12 art 11 s 14; 1Sp1986 c 1 
 art 9 s 25; 1987 c 258 s 12; 1989 c 246 s 2 

     355.209 Employee contributions; deduction from wages. 

    After the date the agreement or modification is entered 
 into pursuant to section 355.207, there shall be paid as a 
 deduction from wages an employee contribution in an amount equal 
 to the tax that would be imposed by the Federal Insurance 
 Contribution Act if such service constituted employment within 
 the meaning of that act.  Contributions so made shall be paid 
 into the contribution fund in partial discharge of the liability 
 of the political subdivision in respect thereto.  Failure to 
 deduct such contribution shall not relieve the employee or the 
 political subdivision of liability therefor. 

    HIST: 1977 c 429 s 46; 1Sp1985 c 12 art 11 s 15 

     355.21 Definitions. 

    Subdivision 1.  For the purposes of sections 355.21 to 
 355.27 the terms defined in this section shall have the meanings 
 ascribed to them.  

    Subd. 2.  "Enabling Act" means sections 355.01 to 355.07. 

    Subd. 3.  The terms "Social Security Act," "state agency," 
 "employment," "wages," "contribution fund," "Federal Insurance 
 Contributions Act," "political subdivision," and "state agency," 
 mean as defined in said "Enabling Act."  

    Subd. 4.  "Teacher" means all employees of political 
 subdivisions who hold positions covered by the Duluth teachers 
 retirement fund association established pursuant to the 
 provisions of chapter 354A. 

    Subd. 5.  The term "part-time position" means a position 
 which ordinarily does not require the actual performance of duty 
 more than 90 days in each year.  

    HIST: 1957 c 650 s 1; 1981 c 224 s 147,148 

     355.22 Teachers to be deemed separate unit. 

    Pursuant to section 218(d) (6) of the Social Security Act, 
 every teachers retirement fund association established under the 
 provisions of chapter 354A shall be deemed to constitute a 
 separate retirement system. 

    HIST: 1957 c 650 s 2; 1981 c 224 s 149 

     355.23 Duluth referendum. 

    Subdivision 1.  Upon the request of the governing body of 
 the Duluth teachers retirement fund association and the board of 
 education of independent school district No. 709 or upon the 
 petition of at least ten percent of the active members of the 
 association and the board of education of independent school 
 district No. 709, the governor shall be empowered to authorize a 
 referendum to be held at a date to be set by the governor, and 
 to designate any agency or individual to supervise its conduct, 
 in accordance with the requirements of section 218(d) (3) of the 
 Social Security Act, on the question of whether service by 
 teachers in positions covered by the Duluth teachers retirement 
 fund association should be excluded from or included in an 
 agreement under the Enabling Act.  The notice of referendum 
 required by section 218(d) (3) (C) of the Social Security Act to 
 be given to teachers shall contain or shall be accompanied by a 
 statement, in such form and such detail as the agency or 
 individual designated to supervise the referendum shall deem 
 necessary and sufficient, to inform the teachers of the rights 
 which will accrue to them and their dependents and survivors, 
 and the liabilities to which they will be subject, if their 
 services are included in an agreement under the Enabling Act, 
 and the statement shall contain in such form and such detail as 
 deemed necessary the plan proposed for the integration, 
 supplementation or combination of the teachers retirement fund 
 association and social security.  The cost of any referendum 
 hereby authorized shall be paid by the teachers retirement fund 
 association in reference to which the referendum is held. 

    Subd. 2.  Upon being satisfied by the evidence that with 
 respect to any such referendum the conditions specified in 
 section 218(d) (3) of the Social Security Act have been met, the 
 governor shall so certify to the Secretary of Health, Education 
 and Welfare.  

    Subd. 3.  Upon such certification, the state agency shall 
 become authorized to modify the agreement with the Secretary of 
 Health, Education and Welfare, previously made as provided in 
 the Enabling Act, to obtain the benefits of the federal old age 
 and survivors insurance system in respect to services performed 
 by teachers as defined in sections 355.21 to 355.27.  Such 
 modification may take effect retroactively to January 1 of the 
 year in which the modification of the agreement is accepted by 
 the Secretary of Health, Education and Welfare, and apply to all 
 such services performed after the effective date by teachers who 
 are such on the date the modification is entered into or 
 thereafter, excepting any service of an emergency nature, any 
 service performed by a student, and all services in any class or 
 classes of part-time positions, or positions the compensation 
 for which is on a fee basis. 

    HIST: 1957 c 650 s 3; 1979 c 332 art 1 s 85; 1981 c 224 s 150; 
 1986 c 444 

     355.24 Retroactive procedure.  

    Subdivision 1.  Effective retroactively with respect to 
 services performed after the effective date specified in the 
 modifications of the agreement, by teachers who are such on the 
 date the modification is entered into or thereafter, each and 
 every political subdivision affected by the modification is 
 hereby authorized, required and directed to pay into the 
 contribution fund contributions with respect to wages equal to 
 the sum of the taxes which would be imposed by the Federal 
 Insurance Contributions Act if the services covered by such 
 modification constituted employment within the meaning of that 
 act.  With respect to wages for services performed after the 
 effective date as specified in the modification, but prior to 
 the date of such modification, the payments shall be made on 
 account of all services performed in positions covered by such 
 teachers retirement fund associations by the employer who is 
 such on the date of the modification irrespective of for whom 
 the services were performed during such prior period.  

    Subd. 2.  Effective retroactively with respect to services 
 performed after the effective date as specified in the 
 modification, by teachers who are such on the date the 
 modification is entered into or thereafter, each and every 
 political subdivision is hereby authorized, required, and 
 directed, in consideration of sections 355.21 to 355.27, to 
 impose upon each such teacher a contribution with respect to the 
 teacher's wages, not exceeding the amount of the employee tax 
 which would be imposed by the Federal Insurance Contributions 
 Act if such services constituted employment within the meaning 
 of that act, and to deduct the amount of such contribution from 
 the teacher's wages as and when paid.  With respect to 
 deductions from wages for services performed in positions 
 covered by such teachers retirement fund association, the 
 deductions shall be made by the employer who is such on the date 
 of the modification irrespective of for whom the services were 
 performed during such prior period.  Contributions so collected 
 shall be paid into the contribution fund in partial discharge of 
 the liability of each and every political subdivision in respect 
 thereto.  

    Subd. 3.  Delinquent payments under this section, with 
 interest at the rate of six percent per annum, may be recovered 
 by action in a court of competent jurisdiction against each and 
 every political subdivision liable therefor, or may, at the 
 request of the state agency, be deducted from any other moneys 
 payable to such political subdivision by any department or 
 agency of the state.  

    HIST: 1957 c 650 s 4; 1986 c 444 

     355.25 Costs of administration.  

    Each and every political subdivision affected by the 
 modification shall reimburse the state agency for its pro rata 
 share of the cost of administration of said agency in accordance 
 with the rules of the state agency pertaining thereto.  Such 
 reimbursement shall be paid into the state agency revolving fund.

    HIST: 1957 c 650 s 5; 1985 c 248 s 70 

     355.26 Reports to state agency.  

    Each and every political subdivision affected by the 
 modification shall make such reports in such form and containing 
 such information as the state agency may from time to time 
 require, and comply with such provisions as the state agency or 
 the Secretary of Health, Education and Welfare may from time to 
 time find necessary to assure the correctness and verification 
 of such reports.  

    HIST: 1957 c 650 s 6 

     355.27 Revenues, may be used, tax levy.  

    Each and every political subdivision is hereby authorized 
 and directed to pay its obligations under sections 355.21 to 
 355.27 from moneys collected from taxes or other revenues.  Each 
 and every political subdivision may include in its tax levy the 
 amount necessary to pay such obligations.  If the taxes 
 authorized to be levied under this section cause the total 
 amount of taxes to exceed any limitation whatsoever upon the 
 power of a political subdivision to levy taxes, such political 
 subdivision may levy taxes in excess of the limitation in such 
 amount as is necessary to meet the obligations under sections 
 355.21 to 355.27.  The governing body of a political 
 subdivision, for the purpose of meeting its liabilities under 
 sections 355.21 to 355.27 in the event of a deficit, may issue 
 its obligations payable in not more than two years, in an amount 
 which may cause its indebtedness to exceed any limitation 
 without an election and may levy taxes to pay therefor.  

    HIST: 1957 c 650 s 7 

     355.28 Definitions. 

    Subdivision 1.  For the purposes of sections 355.28 to 
 355.288 the terms defined in this section shall have the 
 meanings ascribed to them. 

    Subd. 2.  "Enabling Act" means sections 355.01 to 355.07. 

    Subd. 3.  The terms "Social Security Act," "state agency," 
 "employment," "wages," "contribution fund," "Federal Insurance 
 Contributions Act," and "political subdivision" mean as defined 
 in the Enabling Act. 

    Subd. 4.  "Teacher" means all employees of political 
 subdivisions who hold positions covered by the Minneapolis 
 teachers retirement fund association established under the 
 provisions of chapter 354A. 

    HIST: 1976 c 238 s 2 

     355.281 Referendum. 

    Pursuant to the provisions of the Enabling Act the governor 
 shall designate an agency or an individual to supervise a 
 referendum to be held after May 1, 1978, in accordance with the 
 provisions of section 218 (d) (6) (C) of the Social Security 
 Act, for teachers. 

    HIST: 1976 c 238 s 3; 1977 c 429 s 47 

     355.282 Notice of referendum. 

    The notice of referendum required by section 218 (d) of the 
 Social Security Act which is to be given to the teachers shall 
 contain a statement in such form as the agency or individual 
 designated to supervise the referendum shall deem necessary and 
 sufficient to inform the teachers of the rights which accrue to 
 them under the Social Security Act.  The statement shall also 
 inform the teachers of the effect that coverage under the Social 
 Security Act will have on their public retirement program. 

    HIST: 1976 c 238 s 4 

     355.283 Division of Minneapolis teacher's retirement 
  fund association. 

    In accordance with section 218 (d) (6) (C) of the Social 
 Security Act, the state agency shall divide into two divisions 
 or parts the Minneapolis teachers retirement fund association 
 established under the provisions of chapter 354A.  One division 
 or part of the retirement fund association shall be composed of 
 positions of teachers who desire coverage under an agreement 
 under section 218 (d) of the Social Security Act.  The other 
 division or part of the retirement fund association shall be 
 composed of positions of teachers who do not desire coverage 
 under such an agreement.  Each division or part shall be deemed 
 to be a separate retirement system for the purposes of section 
 218 (d) of the Social Security Act.  There shall be included in 
 the division or part composed of members desiring such coverage 
 the positions of teachers who become members of the Minneapolis 
 teachers retirement fund association after such coverage is 
 extended; provided, a teacher whose service in a position 
 covered by the retirement fund association commences after the 
 date on which such social security coverage is extended shall be 
 deemed to become a member of the retirement fund association 
 upon the commencement of such service for purposes of this 
 section, notwithstanding the date of any employment contract. 

    HIST: 1976 c 238 s 5 

     355.284 Transfer of members. 

    In accordance with section 218 (d) (6) (F) of the Social 
 Security Act, and when the Minneapolis teachers retirement fund 
 association is divided into two divisions or parts, the position 
 of any member of the division or part composed of positions of 
 teachers who do not desire coverage under an agreement under 
 section 218 (d) of the Social Security Act may be transferred to 
 the separate retirement system composed of teachers who desire 
 such coverage; and a modification of agreement between the state 
 and the Secretary of Health, Education, and Welfare may so 
 provide, but only if prior to such modification the individual 
 occupying such position files with the state agency a written 
 request for such transfer. 

    HIST: 1976 c 238 s 6 

     355.285 Certification by governor. 

    The governor , on receiving satisfactory evidence that the 
 conditions specified in section 218 (d) (7) of the Social 
 Security Act have been met with respect to the Minneapolis 
 teachers retirement fund association, shall so certify to the 
 Secretary of Health, Education, and Welfare. 

    HIST: 1976 c 238 s 7; 1986 c 444 

     355.286 Agreements with federal agency. 

    Upon the governor's certification pursuant to section 
 355.285, the state agency shall be authorized after June 30, 
 1978, to enter into an agreement with the Secretary of Health, 
 Education, and Welfare, or modify any such agreement previously 
 made with respect to teachers.  The agreement or modification 
 shall contain such terms and provisions authorized by the Social 
 Security Act and the Enabling Act as the state agency finds 
 proper. 

    HIST: 1976 c 238 s 8; 1977 c 429 s 48; 1979 c 332 art 1 s 86 

     355.287 Employer contributions. 

    Contributions required under the agreement or modification 
 entered into pursuant to section 355.286 to be made by political 
 subdivisions employing teachers, and payments required by 
 section 355.49, which shall apply to political subdivisions 
 employing teachers, shall be paid by the political subdivision.  
 Payments for school district or technical college employees who 
 are paid from normal operating funds, shall be made from the 
 appropriate fund of the district or technical college. 

    HIST: 1976 c 238 s 9; 1Sp1985 c 12 art 11 s 16; 1Sp1986 c 1 
 art 9 s 26; 1987 c 258 s 12; 1989 c 246 s 2 

     355.288 Employee contributions; deduction from wages. 

    After the date the agreement or modification is entered 
 into pursuant to section 355.286, there shall be paid as a 
 deduction from wages an employee contribution in an amount equal 
 to the tax that would be imposed by the Federal Insurance 
 Contributions Act if such service constituted employment within 
 the meaning of that act.  Contributions so made shall be paid 
 into the contribution fund in partial discharge of the liability 
 of the political subdivision in respect thereto.  Failure to 
 deduct such contribution shall not relieve the employee or the 
 political subdivision of liability therefor. 

    HIST: 1976 c 238 s 10; 1Sp1985 c 12 art 11 s 17 

     355.29 Definitions. 

    Subdivision 1.  For the purposes of sections 355.29 to 
 355.30, the terms defined in this section have the meanings 
 ascribed to them. 

    Subd. 2.  "Public employee" means any officer or employee 
 of any political subdivision of the state who performs services 
 in any position covered by the public employees retirement 
 association.  

    Subd. 3.  "Political subdivision" means any political 
 subdivision as defined in section 218(b) of the Social Security 
 Act, and includes any instrumentality of the state, any 
 instrumentality of one or more of its political subdivisions 
 including the League of Minnesota Cities, any instrumentality of 
 the state and one or more of its political subdivisions, any 
 governmental subdivision as defined in section 353.01, 
 subdivision 6 and any instrumentality established under an 
 agreement pursuant to section 471.59 wherein the instrumentality 
 is responsible for the employment and payment of the salaries of 
 employees of the instrumentality. 

    Subd. 4.  "Enabling Act" means sections 355.01 to 355.07. 

    HIST: 1967 c 687 s 10; 1981 c 224 s 151-153 

     355.291 Referendum.  

    Subdivision 1.  Pursuant to the provisions of the Enabling 
 Act, the governor shall designate an agency or an individual to 
 supervise a referendum for public employees at a date to be set 
 by the governor in accordance with the requirements of the 
 Social Security Act. 

    Subd. 2.  The referendum shall decide the question of 
 whether or not the employment of public employees should be 
 excluded from or included in an agreement or modification.  

    Subd. 3.  In accordance with section 218(d) (6) (C) of the 
 Social Security Act, the state agency shall divide into two 
 divisions or parts, the public employees retirement association 
 established by chapter 353.  One division or part of such 
 retirement system shall be composed of positions of members of 
 such system who desire coverage under an agreement pursuant to 
 section 218(d) of the Social Security Act.  The other division 
 or part of such retirement system shall be composed of positions 
 of members of such system who do not desire coverage under such 
 agreement.  Each division or part shall be deemed to be a 
 separate retirement system for the purposes of section 218(d) of 
 the Social Security Act.  There shall be included in such 
 division or part composed of members desiring such coverage, the 
 positions of individuals who become members of the public 
 employees retirement association after such coverage is extended 
 with the exception of positions that may not be included in an 
 agreement with the Secretary of Health, Education and Welfare 
 under section 355.295, and with the further exception that 
 employees who did not elect such coverage shall not be deemed 
 covered employees with respect to service credit earned prior to 
 first becoming covered under this section.  

    HIST: 1967 c 687 s 11; 1971 c 374 s 1 

     355.292 Notice of referendum.  

    The notice of referendum required by section 218(d) of the 
 Social Security Act which is to be given to the public employees 
 shall contain a statement in such form as the agency or 
 individual designated to supervise the referendum shall deem 
 necessary and sufficient to inform these public employees of the 
 rights which accrue to them under the Social Security Act.  The 
 statement shall also inform the public employees of the effect 
 that coverage under the Social Security Act will have on their 
 public employee retirement program.  

    HIST: 1967 c 687 s 12 

     355.293 Certification by governor.  

    The governor or an official of the state designated by the 
 governor for the purpose, on receiving satisfactory evidence 
 that the conditions specified in section 218(d) (7) of the 
 Social Security Act have been met, shall so certify to the 
 Secretary of Health, Education and Welfare.  

    HIST: 1967 c 687 s 13; 1986 c 444 

     355.294 Transfer of members.  

    In accordance with section 218(d) (6) (F) of the Social 
 Security Act and when the public employees retirement 
 association is so divided into two parts, as herein provided, 
 the position of any member of the division or part composed of 
 positions of members who do not desire coverage may be 
 transferred to the separate retirement system composed of 
 members who desire such coverage, and a modification of an 
 agreement between the state and the Secretary of Health, 
 Education and Welfare may so provide, but only if prior to such 
 modification or such later modification, as the case may be, the 
 individual occupying such position files with the state agency a 
 written request for such transfer.  

    HIST: 1967 c 687 s 14 

     355.295 State-federal agreement. 

    Upon such certification as provided herein the state agency 
 shall be authorized to enter into an agreement with the 
 Secretary of Health, Education and Welfare or modify any such 
 agreement previously made with respect to the employment by 
 public employees.  The agreement or modification authorized 
 hereunder shall take effect retroactively and apply to all 
 employment performed after the last day of the fifth calendar 
 year preceding the year in which the agreement or modification 
 is entered into by the employees who are such on the effective 
 date of the agreement or modification.  The agreement or 
 modification shall further include within its application, 
 effective with the date of entry into service as public 
 employees, all employment of such public employees on the date 
 of and subsequent to the approval of the agreement or 
 modification as well as those who are such on the effective date 
 thereof. 

    The agreement shall not include employment of any public 
 employee who performs service in (a) any position the 
 compensation for which is on a fee basis, (b) any position 
 performing services which, under the Social Security Act, may 
 not be included in any agreement between the state and Secretary 
 of Health, Education and Welfare, (c) any position which is an 
 elective office of the state, and (d) any position in a public 
 hospital for which employees are provided coverage under the old 
 age, survivors, and disability insurance provisions of Title II 
 of the federal Social Security Act under another provision of 
 law.  This section applies only to hospitals in existence prior 
 to July 1, 1971. 

    HIST: 1967 c 687 s 15; 1971 c 19 s 1; 1979 c 332 art 1 s 87 

     355.296 Retroactive employer-employee contributions.  

    Subdivision 1.  Effective retroactively with respect to 
 employment after the date of retroactive coverage by public 
 employees who are employed on the date of the agreement or 
 modification and who are included within such agreement or 
 modification, the board of trustees of the public employees 
 retirement association shall pay out of its fund an amount for 
 each public employee so included which is equal to the amount of 
 employee tax which would have been imposed by the Federal 
 Insurance Contributions Act, if such service constituted 
 employment within the meaning of that act.  This payment shall 
 be computed from the date of retroactive coverage to the date 
 that deductions are taken from the wages of each such public 
 employee as provided hereafter.  The amount so paid by the 
 trustees shall be deducted from the accumulated deductions, if 
 any, from the salary of the public employee which have been paid 
 to the public employees retirement association.  If the 
 accumulated deductions of any public employee are not sufficient 
 to pay for the employee's retroactive contribution, such 
 employee shall pay the difference to the fund.  To the extent 
 that the difference is not paid by the employee, it shall 
 constitute a liability of the employer.  An employer shall be 
 subrogated to the rights of the association in respect of any 
 amount paid by the employer on account of its liability in 
 behalf of the employee.  

    Subd. 2.  Effective retroactively with respect to 
 employment after the date of retroactive coverage by public 
 employees who are employed on the date of the agreement or 
 modification and who are included within such agreement or 
 modification, the board of trustees of the public employees 
 retirement association shall pay out of the fund an amount for 
 each member which is equal to the amount of employer tax which 
 would have been imposed by the Federal Insurance Contributions 
 Act if such service constituted employment within the meaning of 
 the act.  This amount shall be computed from the date of 
 retroactive coverage to the date deductions are taken from the 
 wages of such public employees.  If this amount exceeds the 
 contribution made to the association by the employer in respect 
 of the employee, the difference shall be paid by the employer to 
 the fund of the association. 

    Subd. 3.  The amounts herein required by this section are 
 hereby appropriated from the public employees retirement fund 
 and the trustees are hereby authorized to make the necessary 
 disbursements and transfers thereof.  The amounts so required 
 shall be paid to the contribution fund provided for in the 
 Enabling Act.  

    Subd. 4.  Any member who elects social security coverage 
 from and after January 1, 1969 and thereby transfers to the 
 coordinated fund and from whose account retroactive social 
 security employee taxes are paid by the board of trustees of the 
 public employees retirement association, shall be required to 
 reimburse the said association in an amount equal to the 
 difference between employee contributions at the rate of six 
 percent of total salary and the aggregate of three percent of 
 said salary plus the rate of retroactive social security 
 employee taxes paid on said salary restricted to earnings 
 limitations imposed by the Federal Insurance Contributions Act 
 covering public service rendered from and after said date of 
 January 1, 1969.  In the event any such member does not 
 reimburse the association within 30 days following notification 
 by the public employees retirement association of the amount so 
 due, interest shall accrue thereon at the rate of six percent 
 per annum compounded annually from the date first payable.  The 
 governmental subdivision in which any such member rendered 
 public service from and after January 1, 1969 covering which 
 service retroactive social security employer taxes are paid by 
 the board of trustees of the public employees retirement 
 association shall be required to reimburse the said association 
 in an amount equal to the aforementioned difference, such amount 
 to be paid from the proceeds of a tax levy made pursuant to 
 section 353.28, or from other funds available to the employer.  

    HIST: 1967 c 687 s 16; 1969 c 267 s 4,5; 1969 c 999 s 5; 1986 
 c 444 

     355.297 Current employer-employee contribution.  

    Subdivision 1.  With respect to services performed after 
 the effective date of the agreement or modification, each 
 political subdivision shall be obligated to pay employer 
 contributions with respect to wages earned by public employees 
 included in the agreement or modification in an amount equal to 
 the employer tax which would be imposed by the federal 
 contributions act if the services covered by the agreement or 
 modification constituted employment within the meaning of the 
 act.  This amount shall be paid directly by the political 
 subdivision.  Contributions so made shall be paid into the 
 contribution fund provided for in the Enabling Act.  

    Subd. 2.  With respect to services performed after the 
 effective date of the agreement or modification, each public 
 employee included in the agreement or modification shall pay 
 contributions with respect to wages and the same will be 
 deducted from the employee's wages as and when paid in an amount 
 equal to the employee tax which would be imposed by the Federal 
 Insurance Contributions Act if the services covered by the 
 agreement or modification constituted employment within the 
 meaning of that act.  Contributions so made shall be paid into 
 the contributions fund provided for in the Enabling Act in 
 partial discharge of the liability of the state and each 
 political subdivision in respect thereto.  Failure to deduct 
 such contribution shall not relieve the political subdivision 
 from liability therefor.  

    HIST: 1967 c 687 s 17; 1986 c 444 

     355.298 Administrative cost of state agency.  

    Each political subdivision employing public employees 
 included in the agreement or modification shall reimburse the 
 state agency for its pro rata share of the cost of 
 administration of said agency in accordance with the rules of 
 the state agency.  Such reimbursements shall be paid into the 
 state agency revolving fund.  

    HIST: 1967 c 687 s 18; 1985 c 248 s 70 

     355.299 Obligations of political subdivisions.  

    Each political subdivision is hereby authorized and 
 directed to pay its obligations under sections 355.29 to 355.30 
 from money collected from taxes or other revenues.  Each 
 political subdivision authorized to levy taxes may include in 
 its tax levy the amount necessary to pay such obligations.  If 
 the taxes authorized to be levied under this section cause the 
 total amount of taxes levied to exceed any limitation whatsoever 
 under the power of the political subdivision to levy taxes, such 
 political subdivision, if it is other than a school district, 
 may levy taxes in excess of the limitation in such amount as is 
 necessary to meet its obligation under sections 355.29 to 
 355.30.  The expenditures authorized to be made shall not be 
 included in computing the cost of government as defined in any 
 home rule charter or charter of any city affected thereby.  The 
 governing body of a municipality for the purposes of meeting its 
 obligations hereunder, in the event of deficit, may issue its 
 obligations payable in not more than two years in an amount 
 which may cause its indebtedness to exceed any statutory or 
 charter limitation without an election and may levy taxes and 
 pay therefor in a manner provided in section 475.61 and acts 
 amendatory thereto.  

    HIST: 1967 c 687 s 19; Ex1971 c 31 art 20 s 12 

     355.30 Delinquent payments. 

    Delinquent payments under sections 355.29 to 355.30 shall 
 bear interest at the rate of six percent per annum, compounded 
 annually from the date upon which they were first payable, and 
 may be recovered by action in a court of competent jurisdiction 
 against each and every political subdivision or employee liable 
 therefor or, if a political subdivision is liable, may, at the 
 request of the state agency, be deducted from any other moneys 
 payable to such political subdivision by any department or 
 agency of the state.  An action for the recovery of delinquent 
 payments shall not be subject to any statutory provision which 
 would otherwise limit the time within which such an action may 
 be commenced. 

    HIST: 1967 c 687 s 20; 1969 c 267 s 6; 1977 c 347 s 55 

  355.301 Repealed, 1975 c 368 s 51 

  355.302 Repealed, 1981 c 224 s 276 

  355.303 Repealed, 1981 c 224 s 276 

  355.304 Repealed, 1981 c 224 s 276 

  355.305 Repealed, 1981 c 224 s 276 

  355.306 Repealed, 1981 c 224 s 276 

  355.307 Repealed, 1981 c 224 s 276 

  355.308 Repealed, 1981 c 224 s 276 

  355.309 Repealed, 1981 c 224 s 276 

  355.31 Repealed, 1977 c 403 s 13 

     355.311 Second social security referendum. 

    Subdivision 1.    Election of social security coverage.  
 Any member of the basic program of the Minneapolis employees 
 retirement fund established under the provisions of chapter 422A 
 shall be entitled to elect social security coverage retroactive 
 to July 1, 1978 in a second social security referendum.  Any 
 member who so elects shall become a member of the coordinated 
 program of the public employees retirement association and 
 sufficient assets shall be transferred by the board of trustees 
 of the Minneapolis employees retirement fund to the coordinated 
 program of the public employees retirement association pursuant 
 to Minnesota Statutes 1980, section 353.023. 

    Subd. 2.    Payment of retroactive social security 
 employee and employer taxes.  Effective retroactively with 
 respect to any employment after the date of retroactive coverage 
 by municipal employees who are employed on the date of the 
 agreement or modification of the agreement with the Secretary of 
 Health, Education and Welfare, the executive secretary of the 
 Minneapolis employees retirement fund shall cause to be paid out 
 of the fund an amount for each municipal employee as defined 
 pursuant to Minnesota Statutes 1978, section 355.302, 
 subdivision 4, retroactively included, equal to the employee and 
 employer taxes which would have been imposed by the Federal 
 Insurance Contributions Act if the service by the employee 
 constituted employment within the meaning of that act.  This 
 payment shall be computed from the date of retroactive coverage 
 to the date that deductions are first taken from the wages of 
 each municipal employee pursuant to Minnesota Statutes 1978, 
 Section 355.309.  Amounts paid to meet the required employee 
 contribution shall first be deducted from the accumulated 
 deductions of the municipal employee and then from the remaining 
 assets of the fund. 

    Subd. 3.    Appropriation.  The amounts required by 
 this section are hereby appropriated from the Minneapolis 
 employees retirement fund and the executive secretary of the 
 fund is authorized to make any necessary disbursements and 
 transfers.  The amounts so required shall be paid to the 
 contribution fund provided for in the Enabling Act.  

    Subd. 4.    Balances due after payment of retroactive 
 social security employee and employer taxes.  Any municipal 
 employee as defined pursuant to Minnesota Statutes 1978, section 
 355.302, subdivision 4, who elects social security coverage from 
 and after January 1, 1979, and thereby transfers from the basic 
 program of the Minneapolis employees fund to the coordinated 
 program of the public employees retirement association and from 
 whose account retroactive social security employee taxes are 
 paid by the board of the Minneapolis employees fund shall be 
 required to reimburse the Minneapolis employees retirement fund 
 in an amount equal to the difference between employee 
 contributions at the rate of eight percent of the employee's 
 total salary for the period of retroactive social security 
 coverage and the aggregate of six percent of the employee's 
 total salary for the period of retroactive social security 
 coverage plus the rate of retroactive social security employee 
 taxes paid on the salary of the municipal employee restricted to 
 the earnings limitations imposed by the Federal Insurance 
 Contributions Act covering service as a municipal employee 
 rendered from and after July 1, 1978.  In the event that a 
 municipal employee does not reimburse the Minneapolis employees 
 retirement fund within 30 days following notification by the 
 executive secretary of the amount of reimbursement which is due, 
 interest at the rate of six percent per annum compounded 
 annually from the date the amount was first payable following 
 notification until the date payment is made shall accrue.  The 
 city or the public corporation which employs a municipal 
 employee electing social security coverage from and after 
 January 1, 1979, for service on which retroactive social 
 security employer taxes are paid from the Minneapolis employees 
 retirement fund shall reimburse the Minneapolis employees 
 retirement fund in an amount equal to the reimbursement amount 
 payable by the municipal employee.  The employer reimbursement 
 may be paid from the proceeds of a tax levy made for this 
 purpose or from any other funds available to the employer. 

    HIST: 1979 c 293 s 4; 1979 c 303 art 6 s 7; 1980 c 607 art 16 
 s 17 subd 2; 1981 c 224 s 154-156; 1981 c 298 s 11; 1987 c 384 
 art 2 s 83 

  355.32 Repealed, 1977 c 403 s 13 

  355.33 Repealed, 1977 c 403 s 13 

  355.34 Repealed, 1977 c 403 s 13 

  355.35 Repealed, 1977 c 403 s 13 

  355.36 Repealed, 1977 c 403 s 13 

  355.37 Repealed, 1977 c 403 s 13 

  355.38 Repealed, 1977 c 403 s 13 

  355.39 Repealed, 1977 c 403 s 13 

     355.391 Definitions. 

    Subdivision 1.    Terms.  Unless the context indicates 
 otherwise, for the purposes of this section and section 355.392, 
 the terms defined in this section shall have the meanings given 
 to them.  

    Subd. 2.    Enabling Act.  "Enabling Act" means sections 
 355.01 to 355.07.  

    Subd. 3.    Judge.  "Judge" means any person who is a 
 judge within the meaning of section 490.121, subdivision 3.  

    Subd. 4.    Employing unit.  "Employing unit" means the 
 state.  

    HIST: 1981 c 224 s 157; 1996 c 305 art 1 s 92 

     355.392 Social security coverage for judges. 

    Subdivision 1.    Social security coverage.  In 
 accordance with section 218(d)(6)(C) of the Social Security Act, 
 the judges retirement fund is divided into two parts:  

    (a) the first part is composed of judges in office on and 
 after December 31, 1973, who elected not to have coverage under 
 an agreement pursuant to section 218(d) of the Social Security 
 Act in the referendum authorized pursuant to Laws 1973, chapter 
 744, sections 7 and 8; 

    (b) the second part is composed of judges in office on and 
 after December 31, 1973, who elected to have coverage under an 
 agreement pursuant to section 218(d) of the Social Security Act 
 in the referendum authorized pursuant to Laws 1973, chapter 744, 
 sections 7 and 8 and of judges first entering office after 
 December 31, 1973, whose service constitutes "employment" as 
 defined in the Social Security Act.  

    Subd. 2.    Employer contributions.  For services by 
 judges referred to in subdivision 1, clause (b), the state court 
 administrator shall pay an employer contribution on wages equal 
 the employer tax rate imposed by the Federal Insurance 
 Contributions Act.  

    Subd. 3.    Employee contributions.  For services by 
 judges referred to in subdivision 1, clause (b), the judge shall 
 pay an employee contribution on wages equal to the employee tax 
 rate imposed by the Federal Insurance Contributions Act.  The 
 contribution must be made by payroll deduction.  

    Subd. 4.    Delinquent contributions.  Any delinquent 
 contribution shall be payable with interest at the rate of six 
 percent per annum.  

    Subd. 5.    Administrative expenses.  Every employing 
 unit shall reimburse the state agency for its pro rata share of 
 the cost of the administration of the agency in accordance with 
 rules which the state agency prescribes.  Reimbursements of 
 administrative expenses shall be paid to the state agency 
 revolving fund.  

    Subd. 6.    Reports.  Every employing unit shall make 
 whatever reports in whatever form and containing whatever 
 information which the state agency may from time to time 
 require, and shall comply with whatever provisions which the 
 state agency or the secretary of the federal Department of 
 Health and Human Services may find from time to time necessary 
 to assure the correctness of the reports.  

    HIST: 1981 c 224 s 158; 1991 c 345 art 1 s 87,88; 1996 c 305 
 art 1 s 93,94 

     355.393 Second social security coverage election. 

    A member of the basic program of the judges retirement plan 
 governed by sections 490.121 to 490.133 is entitled to elect 
 social security coverage in a second social security referendum 
 held for that purpose by the department of employee relations.  
 The social security coverage is effective on the first of the 
 month next following the referendum. 

    HIST: 1992 c 492 s 1 

     355.41 Definitions. 

    Subdivision 1.  Unless the context indicates otherwise, the 
 terms used in this section have the meanings ascribed to them by 
 sections 355.01 to 355.07, and the meanings ascribed to them in 
 this section.  

    Subd. 2.  The term "state employee" means any employee of 
 the state or a political subdivision who performs services in 
 any position covered by the Minnesota state retirement system 
 governed pursuant to chapter 352, relating to the state 
 employees retirement association, excepting any position the 
 compensation for which is on a fee basis. 

    Subd. 3.  The term "public employee" includes all employees 
 of the state and its political subdivisions as defined in 
 section 2, subdivision 7 of the Enabling Act, who hold positions 
 which are covered by the public employees retirement association 
 governed pursuant to chapter 353, excepting any position 
 performing service which under the Social Security Act may not 
 be included in an agreement between the state and Secretary of 
 Health, Education and Welfare entered into pursuant to sections 
 355.41 to 355.55. 

    Subd. 4.  The term "educational employee" means any 
 employee of the state and its political subdivisions who 
 performs services in any position covered by the teachers 
 retirement fund governed pursuant to chapter 354. 

    Subd. 5.  The term "employee" includes an officer of the 
 state or political subdivision thereof.  

    Subd. 6.  The term "political subdivision" includes an 
 instrumentality of the state, of one or more of its political 
 subdivisions, or of the state and one or more of its political 
 subdivisions, but only if such instrumentality is a juristic 
 entity which is legally separate and distinct from the state or 
 subdivision and only if its employees are not by virtue of their 
 relation to such juristic entity employees of the state or 
 subdivision.  

    Subd. 7.  The term "Enabling Act" means sections 355.01 to 
 355.07.  

    HIST: Ex1957 c 18 s 1; Ex1959 c 50 s 37; 1981 c 224 s 159-162 

     355.42 Referendum. 

    Pursuant to the provisions of sections 355.01 to 355.07, 
 the governor shall designate an agency to supervise a referendum 
 for each of the following groups: 

    (a) The public employees retirement association shall be 
 deemed a single retirement system with respect to the political 
 subdivisions and the state having positions covered thereby. 

    (b) The state employees retirement association shall be 
 deemed a single retirement system except as provided in 
 paragraph (c). 

    (c) The employees of the University of Minnesota covered by 
 the state employees retirement association shall be deemed a 
 single retirement system. 

    (d) The teachers retirement fund shall be deemed a single 
 retirement system with respect to the state departments, 
 institutions, and political subdivisions having positions 
 covered thereby except as provided in paragraph (e). 

    (e) The educational employees of the state universities 
 covered by the teachers retirement fund. 

    HIST: 1957 c 576 s 2; Ex1957 c 18 s 2; 1975 c 321 s 2 

     355.43 Notice of referendum.  

    The notice of referendum required by section 218(d) (3) (c) 
 of the Social Security Act which is to be given to the employees 
 shall contain a statement, in such form as the agency designated 
 to supervise the referendum shall deem necessary and sufficient, 
 to inform the employees of the rights which accrue to them under 
 the Social Security Act.  The statement shall also inform the 
 employees of the effect that coverage under the Social Security 
 Act will have on their state retirement program.  

    HIST: Ex1957 c 18 s 3 

     355.44 Certification by governor.  

    If the governor receives satisfactory evidence that the 
 conditions specified in section 218(d) (3) of the Social 
 Security Act have been met and the outcome of the referendum 
 indicates that the majority of the employees desire to be 
 covered by the Social Security Act, the governor shall so 
 certify to the Secretary of Health, Education and Welfare.  

    HIST: Ex1957 c 18 s 4 

     355.45 State agency to make agreement with Secretary of 
  Health, Education and Welfare. 

    Upon such certification the state agency shall be 
 authorized to enter into an agreement with the Secretary of 
 Health, Education and Welfare, or modify any such agreement 
 previously made with respect to employment by state employees, 
 public employees, and educational employees.  The agreement or 
 modifications shall take effect retroactively and apply to all 
 such employment performed after December 31, 1955, by the 
 employees who are such on that date, and shall include within 
 its application effective with the date of entry into state, 
 public or educational service, all employment by such employees 
 on the date of and subsequent to the approval of the agreement 
 or modification as well as those who are such on the approval 
 date thereof. 

    HIST: Ex1957 c 18 s 5; 1979 c 332 art 1 s 89 

     355.46 Social security contributions. 

    Subdivision 1.  Repealed, 1Sp1985 c 12 art 11 s 22 

    Subd. 2.  Repealed, 1Sp1985 c 12 art 11 s 22 

    Subd. 3.    Social security contributions.  The employer 
 taxes due with respect to employment by educational employees 
 who have made their selection pursuant to section 218(d)(6)(C) 
 of the Social Security Act, shall be paid in the following 
 manner: 

    (a) Contributions required to be made for current service 
 by political subdivisions employing educational employees and 
 payments required by section 355.49 shall be paid by the 
 political subdivision.  Payments for school district or 
 technical institute employees who are paid from normal operating 
 funds, shall be made from the appropriate fund of the district 
 or technical institute.  The state shall make payments for 
 services rendered prior to July 1, 1986. 

    (b) Contributions required to be made with respect to 
 educational employees of state departments and institutions and 
 payments required by section 355.49 shall be paid by the 
 departments and institutions in accordance with the provisions 
 of sections 355.49 and 355.50. 

    Subd. 4.  Repealed, 1971 c 535 s 6 

    Subd. 5.  Repealed, 1Sp1985 c 12 art 11 s 22 

    HIST: Ex1957 c 18 s 6; Ex1959 c 50 s 40; 1971 c 40 s 35; 1971 
 c 535 s 5; 1973 c 492 s 14; 1980 c 614 s 144; 1981 c 224 s 163; 
 1Sp1985 c 12 art 11 s 18,20; 1986 c 444; 1Sp1986 c 1 art 9 s 27; 
 1989 c 293 s 80 

  355.47 Repealed, 1Sp1985 c 12 art 11 s 22 

     355.48 Employee contributions, deduction from wages.  

    After the date the agreement or modification is entered 
 into, there shall be paid as a deduction from wages an employee 
 contribution in an amount equal to the tax that would be imposed 
 by the Federal Insurance Contributions Act if such service 
 constitutes employment within the meaning of that act.  
 Contributions so made shall be paid into the contribution fund 
 in partial discharge of the liability of the state and each 
 political subdivision in respect thereto.  Failure to deduct 
 such contribution shall not relieve the employee or the state or 
 the political subdivision of liability therefor.  

    HIST: Ex1957 c 18 s 8 

     355.49 Reimbursement of administrative costs of state 
  agency.  

    Each department or agency of state and each political 
 subdivision employing members of the association shall reimburse 
 the state agency for its pro rata share of the cost of 
 administration of said agency in accordance with rules of the 
 state agency, except as provided in section 355.46.  Such 
 reimbursements shall be paid into the state agency's revolving 
 fund.  

    HIST: Ex1957 c 18 s 9; Ex1959 c 50 s 42; 1985 c 248 s 70 

     355.50 State employees, appropriation. 

    With respect to state employees, each department and agency 
 shall pay the amounts required by sections 355.41 to 355.60 from 
 such accounts and funds from which each department or agency 
 receives its revenue, including appropriations from the general 
 fund and from any other fund, now or hereafter existing, for the 
 payment of salaries and in the same proportion as it pays 
 therefrom the amounts of such salaries.  Such payments shall be 
 charged as an administrative cost by such units of state 
 government.  

    If the federal government increases the required 
 contributions for social security, and as a result of the 
 increase there are insufficient moneys in any such accounts or 
 fund or source of revenue to make the payments to the 
 contribution fund required by sections 355.41 to 355.60 by such 
 departments or agencies, there is hereby appropriated to such 
 department or agency from any moneys in the state treasury not 
 otherwise appropriated such moneys as are required to meet such 
 deficiencies.  The amount of each payment made pursuant to these 
 provisions shall be certified by the commissioner of employee 
 relations to the commissioner of finance at such times as the 
 commissioner of finance shall require.  The amount certified as 
 necessary to meet a deficiency caused by an increase in federal 
 contribution requirements shall be reported to the senate 
 committee on finance and the house committee on ways and means 
 before the commissioner of finance transfers any money to meet 
 the deficiency.  

    For those employees of the state or its instrumentalities 
 who as eligible members in the state employees retirement 
 association are employed by the state horticultural society, the 
 disabled American veterans, department of Minnesota, veterans of 
 foreign wars, department of Minnesota, the Minnesota crop 
 improvement association, the Minnesota historical society, the 
 armory building commission and the 
 Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 
 these units of government shall also pay into the contribution 
 fund contributions with respect to wages equal to the sum of 
 taxes which would be imposed by the Federal Insurance 
 Contributions Act if the services covered by such agreement or 
 modification constituted employment within the meaning of that 
 act.  

    HIST: Ex1957 c 18 s 10; Ex1959 c 50 s 44; 1969 c 399 s 1; 1973 
 c 492 s 14; 1973 c 507 s 45; 1980 c 614 s 145; 1980 c 617 s 47; 
 1993 c 4 s 32 

     355.51 Delinquent payments, collection.  

    Delinquent payments under sections 355.41 to 355.60 with 
 interest at the rate of six percent per annum may be recovered 
 by action in a court of competent jurisdiction against each and 
 every political subdivision liable therefor or may, at the 
 request of the state agency, be deducted from any other money 
 payable to such political subdivision by any department or 
 agency of the state.  

    HIST: Ex1957 c 18 s 11; Ex1959 c 50 s 38 

     355.52 Obligations of political subdivision, payment.  

    Each and every political subdivision is hereby authorized 
 and directed to pay its obligations under sections 355.41 to 
 355.60 for moneys collected from taxes or other revenues.  Each 
 and every political subdivision authorized to levy taxes may 
 include in its tax levy the amount necessary to pay such 
 obligations.  If the taxes authorized to be levied under this 
 section cause the total amount of taxes levied to exceed any 
 limitation whatsoever upon the power of a political subdivision, 
 as defined in section 355.41, to levy taxes, such political 
 subdivision may levy taxes in excess of the limitation in such 
 amounts as is necessary to meet its obligations under sections 
 355.41 to 355.60. The expenditures authorized to be made under 
 sections 355.41 to 355.60 shall not be included in computing the 
 cost of government as defined in any home rule charter of any 
 city affected thereby.  The governing body of a municipality, 
 for the purpose of meeting its liabilities under sections 355.41 
 to 355.60 in the event of a deficit, may issue its obligations 
 payable in not more than two years, in an amount which may cause 
 its indebtedness to exceed any statutory or charter limitations, 
 without an election, and may levy taxes to pay therefor in the 
 manner provided in section 475.61. 

    HIST: Ex1957 c 18 s 12; Ex1959 c 50 s 39 

  355.53 Repealed, 1981 c 224 s 276 

     355.54 Amendment of federal Social Security Act, effect. 

    If the federal Social Security Act or any rule or 
 regulation made thereunder is amended prior to any agreement or 
 modification provided in sections 355.41 to 355.55, and such 
 amendment permits retroactive coverage of governmental employees 
 at some date after December 31, 1955, with the allowance of 
 fully insured status with 18 months of service as a governmental 
 employee, the retroactive coverage shall begin on such date 
 notwithstanding any provision in sections 355.41 to 355.55 to 
 the contrary.  In the event of such amendment, the agreements 
 and contributions provided herein shall be retroactive to such 
 date.  

    HIST: Ex1957 c 18 s 14 

     355.55 Restoration to membership in retirement 
  association fund.  

    Provided that all persons whose membership in a retirement 
 fund or association is terminated July 1, 1957 by reason of 
 state legislative action shall be restored as of July 1, 1957 to 
 membership in the association or fund prior to any modification 
 of the agreement between the state and the Secretary of Health, 
 Education, and Welfare in the event that they are not before 
 such date brought within the coverage of the federal Social 
 Security Act pursuant to authorizing federal legislation.  Such 
 restoration to membership shall be conditioned upon payment by 
 affected members of required contributions to the fund accruing 
 subsequent to July 1, 1957 to the date of restoration; such 
 payment to be made at the time and in the manner as the board 
 shall determine.  

    HIST: Ex1957 c 18 s 15 

     355.56 Division of teachers retirement association. 

    In accordance with section 218(d) (6) (C) of the Social 
 Security Act, the state agency shall divide into two divisions 
 or parts, the teachers retirement association established by 
 chapter 354.  One division or part of such retirement system 
 shall be composed of positions of members of such system who 
 desire coverage under an agreement under section 218(d) of the 
 Social Security Act.  The other division or part of such 
 retirement system shall be composed of positions of members of 
 such system who do not desire coverage under such an agreement.  
 Each division or part shall be deemed to be a separate 
 retirement system for the purposes of section 218(d) of the 
 Social Security Act.  There shall be included in such division 
 or part composed of members desiring such coverage the positions 
 of individuals who become members of the teachers retirement 
 association, after such coverage is extended. 

    HIST: Ex1959 c 50 s 32; 1979 c 50 s 48 

     355.57 Transfer of members.  

    In accordance with section 218(d) (6) (F) of the Social 
 Security Act, and when such a retirement system is so divided 
 into two parts, as hereinbefore provided, the position of any 
 member of the division or part composed of positions of members 
 who do not desire coverage may be transferred to the separate 
 retirement system composed of members who desire such coverage; 
 and a modification of agreement between the state and the 
 Secretary of Health, Education, and Welfare may so provide, but 
 only if prior to such modification or such later modification, 
 as the case may be, the individual occupying such position files 
 with the state agency a written request for such transfer.  

    HIST: Ex1959 c 50 s 33 

     355.58 Persons in positions covered by retirement system.

    Any individual who is in a position covered by a retirement 
 system referred to in section 355.56 and who is not a member of 
 such system but is eligible to become a member thereof shall, 
 for the purposes of Extra Session Laws 1959, chapter 50, be 
 regarded as a member of such system and any such individual 
 shall be treated, after the division of the retirement system, 
 the same as individuals in positions referred to in section 
 355.57.  

    HIST: Ex1959 c 50 s 34 

     355.59 Certification by governor.  

    The governor, on receiving satisfactory evidence that the 
 conditions specified in section 218(d) (7) of the Social 
 Security Act have been met with respect to the teachers 
 retirement association, shall so certify to the Secretary of 
 Health, Education, and Welfare.  

    HIST: Ex1959 c 50 s 35; 1986 c 444 

     355.60 Agreements with federal agency. 

    Upon such certification the state agency shall be 
 authorized to enter into an agreement with the Secretary of 
 Health, Education, and Welfare, or modify any such agreement 
 previously made with respect to employment by educational 
 employees.  The agreement or modification shall contain such 
 terms and provisions authorized by the Social Security Act and 
 the Enabling Act as the state agency finds proper. 

    HIST: Ex1959 c 50 s 36; 1979 c 332 art 1 s 90 

     355.61 Social security coverage for certain faculty 
  members employed by the board of trustees of the Minnesota state 
  colleges and universities. 

    Plan participants and persons electing participation under 
 section 354B.21 remain members of the teachers retirement 
 association for purposes of social security coverage only, and 
 remain covered by the applicable agreement entered into under 
 section 355.02, but are not members of the teachers retirement 
 association for any other purpose while employed in covered 
 employment. 

    HIST: 1989 c 319 art 18 s 10; 1995 c 141 art 4 s 6; 1995 c 212 
 art 4 s 64 

     355.621 Legislators and constitutional officers; social 
  security coverage referendum. 

    Subdivision 1.    Definitions generally.  For the 
 purposes of sections 355.621 to 355.628, each of the terms 
 defined in this section has the indicated meaning. 

    Subd. 2.    Enabling Act.  "Enabling Act" means sections 
 355.01 to 355.07. 

    Subd. 3.    Legislator.  "Legislator" means a member of 
 the legislature duly elected and sworn into office. 

    Subd. 4.    Constitutional officer.  "Constitutional 
 officer" means the governor, the lieutenant governor, the 
 attorney general, the secretary of state, the state auditor, and 
 the state treasurer duly elected and sworn into office. 

    Subd. 5.    Additional terms.  The terms "social 
 security act," "state agency," "employment," "wages," 
 "contribution fund," "Federal Insurance Contributions Act," and 
 "political subdivision" each have the meaning ascribed in the 
 Enabling Act. 

    HIST: 1997 c 233 art 2 s 7 

     355.622 Referendum. 

    Under the Enabling Act, the governor shall designate an 
 agency or individual to supervise a referendum to be held after 
 July 1, 1998, in accordance with provisions of section 
 218(d)(6)(c) of the Social Security Act, for legislators and for 
 constitutional officers. 

    HIST: 1997 c 233 art 2 s 8 

     355.623 Notice of referendum. 

    The notice of referendum required by section 218(d) of the 
 Social Security Act that is to be provided to legislators and to 
 constitutional officers must contain a statement of the rights 
 which accrue under the Social Security Act.  The statement must 
 be in the form that the agency or individual designated to 
 supervise the referendum deems necessary and sufficient to 
 inform legislators and constitutional officers of their Social 
 Security Act rights.  The statement must also inform the 
 legislators and constitutional officers of the effect that 
 social security coverage will have on their future public 
 retirement coverage. 

    HIST: 1997 c 233 art 2 s 9 

     355.624 Division of the legislators retirement plan and 
  the elective state officers retirement plan. 

    (a) In accord with section 218(d)(6)(c) of the Social 
 Security Act, the state agency shall divide the legislators 
 retirement plan into two parts or divisions and shall divide the 
 elective state officers retirement plan into two parts or 
 divisions. 

    (b) One division or part of the legislators retirement plan 
 must be composed of legislators who desire coverage under an 
 agreement under section 218(d) of the Social Security Act, and 
 those legislators must have their future public pension plan 
 coverage under chapter 352D.  Also included in this division or 
 part are legislators who are elected after July 1, 1997.  The 
 other division or part of the legislators retirement plan must 
 be composed of legislators who do not desire coverage under an 
 agreement under section 218(d) of the Social Security Act, and 
 those legislators must have their future public pension plan 
 coverage under chapter 3A. 

    (c) One division or part of the elective state officers 
 retirement plan must be composed of constitutional officers who 
 desire coverage under an agreement under section 218(d) of the 
 Social Security Act, and those constitutional officers must have 
 their future public pension plan coverage under chapter 352D.  
 Also included in this division or part are constitutional 
 officers who are elected after July 1, 1997.  The other division 
 or part of the elective state officers retirement plan must be 
 composed of constitutional officers who do not desire coverage 
 under an agreement under section 218(d) of the Social Security 
 Act, and those constitutional officers must have their future 
 public pension plan coverage under chapter 352C. 

    HIST: 1997 c 233 art 2 s 10 

     355.625 Transfer of members. 

    In accord with section 218(d)(6)(f) of the Social Security 
 Act and when the legislators retirement plan or the elective 
 state officers retirement plan, whichever applies, is divided 
 into two parts or divisions, a legislator or constitutional 
 officer who does not desire coverage under an agreement under 
 section 218(d) of the Social Security Act may be transferred to 
 the other part or division if the agreement with the federal 
 Department of Health and Human Services so provides and if the 
 legislator or constitutional officer files with the state agency 
 a written request for the transfer. 

    HIST: 1997 c 233 art 2 s 11 

     355.626 Certification by governor. 

    If the governor receives satisfactory evidence that the 
 conditions specified in section 218(d)(7) of the Social Security 
 Act have been met with respect to the legislators retirement 
 plan or the elective state officers retirement plan, whichever 
 applies, the governor shall so certify to the secretary of the 
 federal Department of Health and Human Services. 

    HIST: 1997 c 233 art 2 s 12 

     355.627 Agreements with federal agency. 

    Upon the governor's certification under section 355.626, 
 the state agency, with the approval of the governor, is 
 authorized after June 30, 1998, to enter into or modify an 
 agreement with the secretary of the federal Department of Health 
 and Human Services with respect to legislators or constitutional 
 officers, whichever applies. 

    HIST: 1997 c 233 art 2 s 13 

     355.628 Social security contributions. 

    Subdivision 1.    Employer contributions.  Employer 
 contributions required under the agreement or modification under 
 section 355.627 and payments required by section 355.49 must be 
 paid by the senate, the house of representatives, or the 
 relevant constitutional office, whichever applies. 

    Subd. 2.    Employee contributions; deduction from wages. 
  (a) After the date on which the agreement or modification 
 under section 355.627 is executed, there must be paid as a 
 deduction from wages an employee contribution by legislators or 
 constitutional officers in an amount equal to the tax that would 
 be imposed by the Federal Insurance Contributions Act if the 
 service constituted employment within the meaning of the act. 

    (b) Contributions made under this subdivision must be paid 
 into the contribution fund in partial discharge of the employer 
 liability for social security coverage. 

    (c) A failure to deduct employee contributions does not 
 relieve the legislator or constitutional officer or the senate, 
 the house of representatives, or the relevant constitutional 
 office of the liability to make the contribution. 

    HIST: 1997 c 233 art 2 s 14 

     355.71 Definitions. 

    Subdivision 1.  For the purposes of sections 355.71 to 
 355.81, the terms defined in this section have the meaning 
 ascribed to them.  

    Subd. 2.  "Hospital employee" means any officer or employee 
 of a public hospital who performs services in any position 
 covered by the public employees retirement association.  

    Subd. 3.  "Public hospital" means any hospital owned or 
 operated by, or which is an integral part of, any political 
 subdivision, or political subdivisions.  

    Subd. 4.  "Political subdivision" means any political 
 subdivision as defined in section 218 of the Social Security 
 Act, and includes any city, county, town, hospital district, or 
 other body, politic and corporate.  

    Subd. 5.  "State agency" means the commissioner of employee 
 relations.  

    Subd. 6.  "Enabling Act" means sections 355.01 to 355.07 
 and acts amendatory thereof. 

    HIST: 1963 c 793 s 1; 1973 c 35 s 61; 1973 c 123 art 5 s 7; 
 1973 c 507 s 45; 1980 c 617 s 47; 1981 c 224 s 164 

     355.72 Separate system for hospital employees. 

    In accordance with section 218(d) (6) (A) or 218(d) (6) (B) 
 of the Social Security Act, the hospital employees of each 
 public hospital which was in existence prior to July 1, 1971 are 
 deemed to be covered by a separate retirement system for the 
 employees of that hospital, notwithstanding the provisions of 
 section 355.42, clause (a).  

    HIST: 1963 c 793 s 2; 1971 c 19 s 2; 1981 c 224 s 165 

     355.73 Referendum. 

    Subdivision 1.  Pursuant to the provisions of the Enabling 
 Act, the governor shall designate an agency or an individual to 
 supervise a referendum in accordance with the provisions of 
 section 218(d) (6) (C) of the Social Security Act for the 
 employees of such public hospital after a petition is received 
 as provided in subdivision 2 or 3.  

    Subd. 2.  At least 35 percent of the employees of any 
 public hospital may petition the governor to conduct a 
 referendum pursuant to section 218(d) (6) (C) of the Social 
 Security Act to be held on the date to be set by the governor in 
 accordance with the requirements of said act.  

    Subd. 3.  The governing body of any public hospital may 
 petition the governor to conduct a referendum pursuant to 
 section 218(d) (6) (C) of the Social Security Act to be held at 
 a date to be set by the governor in accordance with the 
 requirements of said act.  

    Subd. 4.  No more than one referendum shall be held in each 
 12 month period for the hospital employees of any one public 
 hospital.  

    Subd. 5. Repealed, 1981 c 224 s 276 

    Subd. 6. Repealed, 1981 c 224 s 276 

    Subd. 7. Repealed, 1981 c 224 s 276 

    Subd. 8.  Any hospital employee excluded from retirement 
 coverage by the public employees retirement association pursuant 
 to Minnesota Statutes 1980, section 355.73, subdivision 5, shall 
 continue to be excluded from that retirement coverage so long as 
 the person remains employed as a hospital employee.  

    HIST: 1963 c 793 s 3; 1967 c 687 s 22; 1971 c 19 s 3; 1981 c 
 224 s 166; 1986 c 444 

     355.74 Notice of referendum.  

    Subdivision 1.  The notice of referendum required by 
 section 218(d) of the Social Security Act which is to be given 
 to the hospital employees shall contain a statement in such form 
 as the agency or individual designated to supervise the 
 referendum shall deem necessary and sufficient to inform the 
 hospital employees of the rights which accrue to them under the 
 Social Security Act.  The statement shall also inform the 
 hospital employees of the effect that coverage under the Social 
 Security Act will have on their public retirement program.  

    Subd. 2.  In accordance with section 218(d) (6) (C) of the 
 Social Security Act, the state agency shall divide into two 
 divisions or parts each deemed retirement system consisting of 
 employees of hospitals as herein provided whose employees are 
 covered by the public employees retirement association 
 established by Minnesota Statutes 1961, chapter 353, and acts 
 amendatory thereof.  One division or part of such deemed 
 retirement system shall be composed of positions of members of 
 such system who desire coverage under an agreement pursuant to 
 sections 355.73 and 355.76.  The other division or part of such 
 retirement system shall be composed of positions of members of 
 such system who do not desire coverage under such agreement.  
 Each division or part shall be deemed to be a separate 
 retirement system for the purposes of section 218(d) of the 
 Social Security Act.  There shall be included in such division 
 or part composed of members desiring such coverage, the 
 positions of individuals who become employees of any public 
 hospital in which a referendum was conducted after such coverage 
 is extended, with the exception of positions of individuals 
 which under the Social Security Act may not be included in an 
 agreement between the state and Secretary of Health, Education, 
 and Welfare, and with the further exception that employees who 
 did not elect such coverage shall not be deemed covered 
 employees with respect to service credit earned prior to first 
 becoming covered under this section.  

    Subd. 3.  In accordance with section 218(d) (6) (F) of the 
 Social Security Act, as amended, and in case such a deemed 
 retirement system is so divided into two parts, as hereinbefore 
 provided, the position of any member of the division or part 
 composed of positions of members who do not desire coverage may 
 be transferred to the separate retirement system composed of 
 members who desire such coverage; and a modification of 
 agreement between the state and the Secretary of Health, 
 Education, and Welfare may so provide, but only if prior to such 
 modification or such later modification, as the case may be, the 
 individual occupying such position files with the state agency a 
 written request for such transfer.  

    HIST: 1963 c 793 s 4; 1971 c 374 s 2 

     355.75 Certification by governor.  

    The governor, on receiving satisfactory evidence that the 
 conditions specified in section 218(d) (7) of the Social 
 Security Act have been met shall so certify to the Secretary of 
 Health, Education, and Welfare.  

    HIST: 1963 c 793 s 5; 1986 c 444 

     355.76 State-federal agreement. 

    Upon such certification the state agency shall be 
 authorized to enter into an agreement with the Secretary of 
 Health, Education, and Welfare or modify any such agreement 
 previously made with respect to the employment by state 
 employees, public employees, and educational employees.  The 
 agreement or modification authorized hereunder shall take effect 
 retroactively and apply to all employment performed after 
 December 31 of the year prior to the date of the agreement or 
 modification, by the employees who are such on that date and 
 shall include within its application, effective with the date of 
 entry into service as a hospital employee, all employment by 
 such hospital employees on the date of and subsequent to the 
 approval of the agreement or modification as well as those who 
 are such on the approval date thereof.  The agreement under 
 sections 355.71 to 355.81 shall not apply to services in 
 positions the compensation for which is on a fee basis. 

    HIST: 1963 c 793 s 6; 1973 c 35 s 62; 1979 c 332 art 1 s 91 

     355.77 Retroactive employer-employee contributions.  

    Subdivision 1.  Effective retroactively with respect to 
 employment after the date of retroactive coverage by hospital 
 employees who are employed on the date of the agreement or 
 modification and who are included within such agreement or 
 modification, the board of trustees of the public employees 
 retirement association shall pay out of its fund an amount for 
 each hospital employee so included which is equal to the amount 
 of employee tax which would have been imposed by the Federal 
 Insurance Contributions Act, if such service constituted 
 employment within the meaning of that act.  This payment shall 
 be computed from the date of retroactive coverage to the date 
 that deductions are taken from the wages of each such hospital 
 employee as provided in section 355.78.  The amount so paid by 
 the trustees shall be deducted from the accumulated deductions 
 of each such member of the public employees retirement 
 association.  If the accumulated deductions of any member are 
 not sufficient to pay for the member's retroactive contribution, 
 such member shall pay the difference to the fund.  To the extent 
 that the difference is not paid by the employee, it shall 
 constitute a liability of the employer.  An employer shall be 
 subrogated to the rights of the association in respect of any 
 amount paid by the employer on account of its liability in 
 behalf of the employee.  

    Subd. 2.  Effective retroactively with respect to 
 employment after the date of retroactive coverage by hospital 
 employees who are employed on the date of the agreement or 
 modification and who are included within such agreement or 
 modification, the board of trustees of the public employees 
 retirement association shall pay out of the fund an amount for 
 each member which is equal to the amount of employer tax which 
 would have been imposed by the Federal Insurance Contributions 
 Act if such service constituted employment within the meaning of 
 that act.  This amount shall be computed from the date of 
 retroactive coverage to the date deductions are taken from wages 
 as provided in section 355.78.  If this amount exceeds the 
 contribution made to the association by the employer in respect 
 of the employee, the difference shall be paid by the employer to 
 the fund of the association. 

    Subd. 3.  The amounts herein required by this section are 
 hereby appropriated from the public employees retirement fund 
 and the trustees are hereby authorized to make the necessary 
 disbursements and transfers therefor.  The amounts so required 
 shall be paid to the contribution fund provided for in the 
 Enabling Act.  

    Subd. 4.  Any member who is employed by a public hospital 
 and who elects social security coverage from and after January 
 1, 1969 and thereby transfers to the coordinated fund and from 
 whose account retroactive social security employee taxes are 
 paid by the board of trustees of the public employees retirement 
 association, shall be required to reimburse the said association 
 in an amount equal to the difference between employee 
 contributions at the rate of six percent of total salary and the 
 aggregate of three percent of said salary plus the rate of 
 retroactive social security employee taxes paid on said salary 
 restricted to earnings limitations imposed by the Federal 
 Insurance Contributions Act covering public service rendered 
 from and after said date of January 1, 1969.  In the event any 
 such member does not reimburse the association within 30 days 
 following notification by the public employees retirement 
 association of the amount so due, interest shall accrue thereon 
 at the rate of six percent per annum compounded annually from 
 the date first payable.  The governmental subdivision operating 
 the public hospital in which any such member rendered public 
 service from and after January 1, 1969 covering which service 
 retroactive social security employer taxes are paid by the board 
 of trustees of the public employees retirement association shall 
 be required to reimburse the said association in an amount equal 
 to the aforementioned difference, such amount to be paid from 
 the proceeds of a tax levy made pursuant to section 353.28, or 
 from other funds available to the employer.  

    HIST: 1963 c 793 s 7; 1969 c 267 s 7,8; 1969 c 999 s 6; 1986 c 
 444 

     355.78 Current employer-employee contributions.  

    Subdivision 1.  With respect to services performed after 
 the date of execution of the agreement or modification, each 
 public hospital shall be obligated to pay employer contributions 
 with respect to wages earned by hospital employees included in 
 the agreement or modification in an amount equal to the employer 
 taxes which would be imposed by the Federal Insurance 
 Contributions Act if the services covered by the agreement or 
 modification constituted employment within the meaning of the 
 act.  This amount shall be paid by the public hospital directly 
 if it is a political subdivision with the powers under law to 
 raise revenue by taxes or it shall be paid by the political 
 subdivision operating the public hospital if such hospital does 
 not have the power under law to raise revenue by taxes.  
 Contributions so made shall be paid into the contribution fund 
 provided for in the Enabling Act.  

    Subd. 2.  With respect to services performed after the date 
 of execution of the agreement or modification, each hospital 
 employee included in the agreement or modification shall pay 
 contributions with respect to wages and the same shall be 
 deducted from the employee's wages as and when paid in an amount 
 equal to the employee tax which would be imposed by the Federal 
 Insurance Contributions Act if the services covered by the 
 agreement or modification constituted employment within the 
 meaning of that act.  Contributions so made shall be paid into 
 the contribution fund provided for in the Enabling Act in 
 partial discharge of the liability of the state and each 
 political subdivision in respect thereto.  Failure to deduct 
 such contribution shall not relieve the hospital employee, or 
 the state or the political subdivision, from liability therefor. 

    HIST: 1963 c 793 s 8; 1986 c 444 

     355.79 Administrative costs of state agency.  

    Each political subdivision employing hospital employees 
 included in the agreement or modification or employing hospital 
 employees who participated in a referendum shall reimburse the 
 state agency for its pro rata share of the cost of 
 administration of said agency in accordance with rules of the 
 state agency.  Such reimbursements shall be paid into the state 
 agency's revolving fund.  

    HIST: 1963 c 793 s 9; 1985 c 248 s 70 

     355.80 Obligations of political subdivision. 

    Each political subdivision is hereby authorized and 
 directed to pay its obligations under sections 355.71 to 355.81 
 from moneys collected from taxes or other revenue.  Each 
 political subdivision authorized to levy taxes may include in 
 its tax levy the amount necessary to pay such obligations.  If 
 the taxes authorized to be levied under this section cause the 
 total amount of taxes levied to exceed any limitation whatsoever 
 upon the power of the political subdivision to levy taxes, such 
 political subdivision may levy taxes in excess of the limitation 
 in such amounts as is necessary to meet its obligation under 
 sections 355.71 to 355.81.  The expenditures authorized to be 
 made shall not be included in computing the cost of government 
 as defined in any home rule charter or charter of any city 
 affected thereby.  The governing body of a municipality, for the 
 purposes of meeting its obligations hereunder in the event of a 
 deficit, may issue its obligations payable in not more than two 
 years, in an amount which may cause its indebtedness to exceed 
 any statutory or charter limitations without an election and may 
 levy taxes to pay therefor in the manner provided in section 
 475.61, and acts amendatory thereto. 

    HIST: 1963 c 793 s 10; 1976 c 2 s 127; 1976 c 239 s 108 

     355.81 Delinquent payments.  

    Delinquent payments under sections 355.71 to 355.81 shall 
 bear interest at the rate of six percent per annum, compounded 
 annually from the date upon which they were first payable, and 
 may be recovered by action in a court of competent jurisdiction 
 against each and every political subdivision or employee liable 
 therefor or, if a political subdivision is liable, may at the 
 request of the state agency be deducted from any other moneys 
 payable to such political subdivision by any department or 
 agency of the state.  An action for the recovery of delinquent 
 payments shall not be subject to any statutory provision which 
 would otherwise limit the time within which such an action may 
 be commenced.  

    HIST: 1963 c 793 s 11; 1969 c 267 s 9 

  355.82 Repealed, 1971 c 295 s 3 

  355.83 Repealed, 1971 c 295 s 3 

  355.84 Repealed, 1971 c 295 s 3 

  355.85 Repealed, 1971 c 295 s 3 

  355.86 Repealed, 1971 c 295 s 3 

  355.87 Repealed, 1971 c 295 s 3 

  355.88 Repealed, 1971 c 295 s 3 

  355.89 Repealed, 1971 c 295 s 3 

     355.90 Optional Medicare coverage for certain pre-1986 
  public employees. 

    Subdivision 1.    Definitions.  (a) Notwithstanding any 
 provision of section 355.01 to the contrary, the terms used in 
 this section are defined in this subdivision.  

    (b) "Employee" means an active member or participant of a 
 public employee pension plan listed in section 356.30, 
 subdivision 3, clauses (5), (6), (7), (9), (10), (11), and (12), 
 who is not covered by a previous agreement under section 355.02 
 for that employment and who meets the requirements of United 
 States Code, title 42, section 418(v)(2). 

    (c) "Employment" means service performed for compensation 
 by an employee in the employ of the state or of a political 
 subdivision that constitutes Medicare qualified government 
 employment under the provisions of United States Code, title 42, 
 section 410(p).  

    (d) "Political subdivision" means a public employer under 
 section 355.01, subdivision 10.  

    (e) "Social Security Act" means the act cited in section 
 355.01, subdivision 8.  

    (f) "State agency" means the commissioner of employee 
 relations or the commissioner's designee.  

    (g) "Wages" means compensation specified in section 355.01, 
 subdivision 2.  

    Subd. 2.    Optional Medicare coverage agreement.  The 
 state agency, with the approval of the governor, may modify its 
 agreement on behalf of the state and its political subdivisions 
 with the Secretary of Health and Human Services to extend the 
 provisions of United States Code, title 42, sections 426, 426-1, 
 and 1395c, to current employees of the state and its political 
 subdivisions who do not have that coverage through coverage by 
 the federal old age, survivors, and disability insurance program 
 for that employment under any previous agreement or modification 
 of the agreement.  

    Subd. 3.    Referendum.  A referendum on the question of 
 extending the provisions of United States Code, title 42, 
 sections 426, 426-1, and 1395c, must be held for each public 
 employee pension plan listed in section 356.30, subdivision 3, 
 except clauses (5) and (6), that has current members or 
 participants who do not have coverage by the federal old age, 
 survivors, and disability insurance program for the employment 
 giving rise to that pension plan membership.  The state agency 
 shall supervise the referendum in accordance with United States 
 Code, title 42, section 418, on the date or dates set by the 
 governor for each pension plan.  The notice of the referendum 
 provided to each employee must contain a statement sufficient to 
 inform the person of the rights available to the person as an 
 employee in Medicare qualified government employment and the 
 employee contribution rates applicable to the program.  The 
 referendum must permit each employee the opportunity to select 
 or reject Medicare coverage.  The governor shall certify to the 
 Secretary of Health and Human Services that the conditions 
 specified in United States Code, title 42, section 418(d)(7) 
 have been met.  Coverage is effective for members or 
 participants of the plan who select it on the first of the month 
 after the certification. 

    Subd. 4.    Employee and employer contributions.  (a) 
 Beginning on the first of the month after the certification by 
 the governor, the employer of each member or participant 
 selecting coverage under the referendum shall deduct from the 
 wages of the employee an amount equal to the tax that would be 
 imposed under United States Code, title 26, section 3101(b), if 
 the services of the employee for which wages were paid 
 constituted employment as defined in United States Code, title 
 26, section 3121. 

    (b) In addition to the deduction specified in paragraph 
 (a), the employer of each member or participant covered by the 
 referendum shall also pay an amount equal to the tax that would 
 be imposed under United States Code, title 26, section 3111(b), 
 on the same wage base specified in paragraph (a). 

    (c) The amounts under paragraphs (a) and (b) shall be paid 
 by the employer to the Secretary of the Treasury in the manner 
 required by the secretary. 

    HIST: 1988 c 709 art 6 s 1; 1989 c 319 art 5 s 2,3