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352.04 STATE EMPLOYEES RETIREMENT FUND, CONTRIBUTIONS BY EMPLOYEE
AND EMPLOYER.
    Subdivision 1. Fund created. (a) There is created a special fund to be known as the general
state employees retirement fund. In that fund, employee contributions, employer contributions,
and other amounts authorized by law must be deposited.
(b) The general state employees retirement plan of the Minnesota State Retirement System
must participate in the Minnesota postretirement investment fund. The amounts provided in
section 352.119 must be deposited in the Minnesota postretirement investment fund.
     Subd. 2. Employee contributions. (a) The employee contribution to the fund must be equal
to the following percent of salary:

before July 1, 2007
4.00

from July 1, 2007, to June 30, 2008
4.25

from July 1, 2008, to June 30, 2009
4.50

from July 1, 2009, to June 30, 2010
4.75

from July 1, 2010, and thereafter
5.00.
(b) These contributions must be made by deduction from salary as provided in subdivision 4.
     Subd. 3. Employer contributions. The employer contribution to the fund must be equal
to the following percent of salary:

before July 1, 2007
4.00

from July 1, 2007, to June 30, 2008
4.25

from July 1, 2008, to June 30, 2009
4.50

from July 1, 2009, to June 30, 2010
4.75

from July 1, 2010, and thereafter
5.00.
    Subd. 4. Payroll deductions. The head of each department shall have employee contributions
deducted from the salary of each employee covered by the system on every payroll abstract and
shall approve one voucher payable to the commissioner of finance for the aggregate amount
deducted on the payroll abstract. Deductions from salaries of employees paid direct by any
department, institution, or agency of the state must be made by the officer or employee authorized
by law to pay the salaries. The head of any department or agency having authority to appoint
any employee who receives fees as compensation or who receives compensation on federal
payrolls shall collect as the required employee contribution the applicable amounts required in
subdivision 2. Deductions from salary and amounts collected must be remitted to the director
with a statement showing the amount of earnings or fees, and in the case of fees, the number of
transactions, and the amount of each of the deductions and collections and the names of the
employees on whose account they have been made.
    Subd. 5. Payment of employer contributions. The head of each department or agency shall
have employer contributions made to the fund on a payroll abstract at the time an employee is
paid salary in the amounts required by subdivision 3. These contributions must be charged as
administrative costs. Each department shall pay these amounts from accounts and funds from
which the department or agency receives its revenue, including appropriations from the general
fund and from any other fund for the payment of salaries and in the same proportion as it pays the
amounts of salaries.
    Subd. 6. Quasi-state agencies; employer contributions. For those of their employees who
are covered by the system, 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, the Minnesota Safety Council, the Metropolitan Council and any of its statutory
boards, the employer of persons described in section 352.01, subdivision 2a, paragraph (a), clause
(15), and any other agency employing employees covered by this system, respectively, shall also
pay into the retirement fund the amount required by subdivision 3.
    Subd. 7.[Repealed, 1973 c 221 s 11]
    Subd. 8. Department required to pay omitted salary deductions. (a) If a department fails
to take deductions past due for a period of 60 days or less from an employee's salary as provided
in this section, those deductions must be taken on later payroll abstracts.
(b) If a department fails to take deductions past due for a period in excess of 60 days from an
employee's salary as provided in this section, the department, and not the employee, must pay
on later payroll abstracts the employee and employer contributions and an amount equivalent
to 8.5 percent of the total amount due in lieu of interest, or if the delay in payment exceeds one
year, 8.5 percent compound annual interest.
(c) If a department fails to take deductions past due for a period of 60 days or less and
the employee is no longer in state service so that the required deductions cannot be taken
from the salary of the employee, the department must nevertheless pay the required employer
contributions. If any department fails to take deductions past due for a period in excess of 60 days
and the employee is no longer in state service, the omitted contributions must be recovered
under paragraph (b).
(d) If an employee from whose salary required deductions were past due for a period of 60
days or less leaves state service before the payment of the omitted deductions and subsequently
returns to state service, the unpaid amount is considered the equivalent of a refund. The employee
accrues no right by reason of the unpaid amount, except that the employee may pay the amount of
omitted deductions as provided in section 352.23.
    Subd. 9. Erroneous deductions, canceled warrants. (a) Deductions taken from the salary
of an employee for the retirement fund in error must, upon discovery and verification by the
department making the deduction, be refunded to the employee.
(b) If a deduction for the retirement fund is taken from a salary warrant or check, and the
check is canceled or the amount of the warrant or check returned to the funds of the department
making the payment, the sum deducted, or the part of it required to adjust the deductions, must
be refunded to the department or institution if the department applies for the refund on a form
furnished by the director. The department's payments must likewise be refunded to the department.
(c) Employee deductions and employer contributions taken in error may be directly
transferred, without interest, to another Minnesota public employee retirement plan by which
the employee is actually covered.
For purposes of this subdivision, a Minnesota public pension plan means a plan specified in
section 356.30, subdivision 3, or the plan governed by chapter 354B.
    Subd. 10.[Repealed, 2Sp1981 c 1 s 8]
    Subd. 11. Gifts and bequests. The director may credit to the retirement fund any money
received in the form of donations, gifts, appropriations, bequests, or otherwise, or derived from it.
    Subd. 12. Fund disbursement restricted. The general state employees retirement fund and
the participation in the Minnesota postretirement investment fund must be disbursed only for the
purposes provided by law. The expenses of the system and any benefits provided by law, other
than benefits payable from the Minnesota postretirement investment fund, must be paid from the
general state employees retirement fund. The retirement allowances, retirement annuities, and
disability benefits, as well as refunds of any sum remaining to the credit of a deceased retired
employee or a disabled employee must be paid only from the general state employees retirement
fund after the needs have been certified and the amounts withdrawn from the participation in the
Minnesota postretirement investment fund under section 11A.18. The amounts necessary to
make the payments from the general state employees retirement fund and the participation in
the Minnesota postretirement investment fund are annually appropriated from these funds for
those purposes.
History: (254-4) 1929 c 191 s 4; 1931 c 351 s 4; 1933 c 326 s 4; 1935 c 238 s 4; 1939 c 432
s 2; 1941 c 391 s 4; 1943 c 622 s 3; 1945 c 284 s 5-7; 1945 c 603 s 1; 1947 c 631 s 10,11; 1949 c
644 s 9,10; 1951 c 441 s 13,14; 1955 c 239 s 7,8; 1957 c 928 s 8,33; 1961 c 633 s 1; Ex1961 c 67
s 3-6; 1963 c 383 s 12-19; 1965 c 861 s 1; 1967 c 571 s 1; Ex1967 c 57 s 11; 1969 c 399 s 1;
1969 c 893 s 3-5; 1971 c 194 s 1; 1973 c 492 s 14; 1973 c 653 s 26,27; 1980 c 607 art 14 s 45
subd 2; s 46; 1980 c 614 s 136; 3Sp1981 c 2 art 1 s 64,65; 1982 c 578 art 1 s 2; 1982 c 641 art
1 s 9,10; 1984 c 564 s 4,5; 1986 c 444; 1987 c 229 art 6 s 1; 1989 c 319 art 13 s 3,4; 1990 c
591 art 2 s 1,2; 1992 c 513 art 4 s 38,39; 1992 c 598 art 1 s 3; 1993 c 307 art 1 s 6,7; 1994 c
508 art 1 s 1; 1994 c 528 art 1 s 4,5; 1996 c 438 art 2 s 1; 1997 c 233 art 1 s 17,18; 2003 c 112
art 2 s 50; 1Sp2005 c 8 art 10 s 15,16; 2006 c 271 art 1 s 1,2
NOTE: The amendments to subdivisions 2 and 3 by Laws 2006, chapter 271, article 1,
sections 1 and 2, are effective July 1, 2007. Laws 2006, chapter 271, article 1, section 9.