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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 352D

Section 352D.02

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Recent History

352D.02 COVERAGE.
    Subdivision 1. Coverage. (a) Employees enumerated in paragraph (c), clauses (2), (3), (4),
and (6) to (14), if they are in the unclassified service of the state or Metropolitan Council and
are eligible for coverage under the general state employees retirement plan under chapter 352,
are participants in the unclassified plan under this chapter unless the employee gives notice to
the executive director of the Minnesota State Retirement System within one year following the
commencement of employment in the unclassified service that the employee desires coverage
under the general state employees retirement plan. For the purposes of this chapter, an employee
who does not file notice with the executive director is deemed to have exercised the option to
participate in the unclassified plan.
    (b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
program under this chapter unless the person was eligible to elect different coverage under section
3A.07 and elected retirement coverage by the applicable alternative retirement plan. Persons
referenced in paragraph (c), clause (15), are participants in the unclassified program under
this chapter for judicial employment in excess of the service credit limit in section 490.121,
subdivision 22
.
    (c) Enumerated employees and referenced persons are:
    (1) the governor, the lieutenant governor, the secretary of state, the state auditor, and the
attorney general;
    (2) an employee in the Office of the Governor, Lieutenant Governor, Secretary of State, State
Auditor, Attorney General;
    (3) an employee of the State Board of Investment;
    (4) the head of a department, division, or agency created by statute in the unclassified service,
an acting department head subsequently appointed to the position, or an employee enumerated in
section 15A.0815 or 15A.083, subdivision 4;
    (5) a member of the legislature;
    (6) a full-time unclassified employee of the legislature or a commission or agency of the
legislature who is appointed without a limit on the duration of the employment or a temporary
legislative employee having shares in the supplemental retirement fund as a result of former
employment covered by this chapter, whether or not eligible for coverage under the Minnesota
State Retirement System;
    (7) a person who is employed in a position established under section 43A.08, subdivision
1
, clause (3), or in a position authorized under a statute creating or establishing a department or
agency of the state, which is at the deputy or assistant head of department or agency or director
level;
    (8) the regional administrator, or executive director of the Metropolitan Council, general
counsel, division directors, operations managers, and other positions as designated by the council,
all of which may not exceed 27 positions at the council and the chair;
    (9) the executive director, associate executive director, and not to exceed nine positions
of the Minnesota Office of Higher Education in the unclassified service, as designated by the
Minnesota Office of Higher Education before January 1, 1992, or subsequently redesignated with
the approval of the board of directors of the Minnesota State Retirement System, unless the person
has elected coverage by the individual retirement account plan under chapter 354B;
    (10) the clerk of the appellate courts appointed under article VI, section 2, of the Constitution
of the state of Minnesota;
    (11) the chief executive officers of correctional facilities operated by the Department of
Corrections and of hospitals and nursing homes operated by the Department of Human Services;
    (12) an employee whose principal employment is at the state ceremonial house;
    (13) an employee of the Minnesota Educational Computing Corporation;
    (14) an employee of the State Lottery who is covered by the managerial plan established
under section 43A.18, subdivision 3; and
    (15) a judge who has exceeded the service credit limit in section 490.121, subdivision 22.
    Subd. 1a.[Repealed, 1995 c 141 art 4 s 31]
    Subd. 1b.[Repealed, 1991 c 238 art 1 s 26]
    Subd. 1c. Transfer of contributions. An employee covered by the regular plan who is
subsequently employed as a full-time unclassified employee of the legislature or any commission
or agency of the legislature without a limit on the duration of the employment may elect to transfer
accumulated employee and matching employer contributions, as provided in section 352D.03.
    Subd. 1d. Election of program participation. An employee who is a participant in the
unclassified program by virtue of employment in a position listed in subdivision 1 may elect to
remain in the unclassified program upon subsequent employment in an unlimited, full-time
unclassified position that is not listed in subdivision 1. To elect participation in the unclassified
program, the employee must give notice to the executive director of the Minnesota State
Retirement System within one year of the commencement of employment in an unclassified
position that is not listed in subdivision 1. Upon receipt of the notice, the executive director shall
transfer to the employee's account in the unclassified program an amount equal to the employer
and employee contributions with six percent interest to the regular plan on the employee's behalf
from the commencement of employment in the position not listed in subdivision 1 to the receipt
of the notice by the executive director.
    Subd. 2. Coverage upon employment change. A person becoming a participant in the
unclassified program by virtue of employment in a position specified in subdivision 1, clause (4),
and remaining in the unclassified service shall remain a participant in the program even though
the position the person occupies is deleted from any of the sections referenced in subdivision 1,
clause (4), by subsequent amendment, except that a person shall not be eligible to elect the
unclassified program after separation from unclassified service if on the return of the person to
service, that position is not specified in subdivision 1, clause (4). Any person employed in a
position specified in subdivision 1 shall cease to participate in the unclassified program in the
event the position is placed in the classified service.
    Subd. 3. Election irrevocable. An election to not participate is irrevocable during any
period of covered employment. An employee credited with employee shares in the unclassified
program, after acquiring credit for ten years of allowable service but prior to termination of
covered employment, may, notwithstanding other provisions of this subdivision, elect to terminate
participation in the unclassified plan and be covered by the regular plan by filing such election
with the executive director. The executive director shall thereupon redeem the employee's total
shares and shall credit to the employee's account in the regular plan the amount of contributions
that would have been so credited had the employee been covered by the regular plan during the
employee's entire covered employment. The balance of money so redeemed and not credited to
the employee's account shall be transferred to the state contribution reserve of the state employees
retirement fund, except that (1) the employee contribution paid to the unclassified plan must be
compared to (2) the employee contributions that would have been paid to the general plan for
the comparable period, if the individual had been covered by that plan. If clause (1) is greater
than clause (2), the difference must be refunded to the employee as provided in section 352.22. If
clause (2) is greater than clause (1), the difference must be paid by the employee within six months
of electing general plan coverage or before the effective date of the annuity, whichever is sooner.
    Subd. 4. Start of coverage. When any person elects participation in the unclassified program
all contributions from the time first eligible to make such an election shall be covered by the
program.
    Subd. 5.[Repealed, 2004 c 267 art 1 s 9]
    Subd. 6. Omitted salary deductions. The provisions of section 352.04, subdivision 8,
apply to this section.
History: 1971 c 604 s 2; 1973 c 624 s 3; 1975 c 368 s 42,43; 1976 c 329 s 11; 1977 c 429 s
17; 1979 c 50 s 43; 1980 c 607 art 14 s 37; 1981 c 224 s 68,69; 1982 c 399 s 1; 1982 c 560 s
56,57; 1983 c 128 s 33; 1983 c 247 s 138; 1984 c 574 s 8; 1984 c 619 s 14; 1984 c 654 art 2 s
124; art 5 s 58; 1Sp1985 c 10 s 88; 1986 c 444; 1986 c 458 s 7; 1990 c 570 art 4 s 1; 1991 c 233 s
109; 1991 c 317 s 1; 1992 c 446 s 3,4; 1993 c 239 art 1 s 1,2; 1993 c 307 art 3 s 6,7; 1994 c 628
art 1 s 3; art 3 s 30; 1995 c 141 art 4 s 2; 1995 c 212 art 3 s 59; 1997 c 233 art 2 s 3,4; 2Sp1997 c
3 s 18; 2000 c 260 s 56; 2000 c 457 s 7,8; 2000 c 461 art 3 s 3; art 18 s 1; 2002 c 379 art 1 s 77;
2003 c 112 art 2 s 50; 2005 c 107 art 2 s 60; 2006 c 271 art 10 s 32