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Minnesota Legislature

Office of the Revisor of Statutes

355.03 MS 1957 [Renumbered 3.29, subd 3]
    Subdivision 1. Employee contribution amount. Every employee of the state, or of any of
its political subdivisions, whose services are covered by the agreement entered into under section
355.02 must pay for the period of the coverage, 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 those services constituted employment within the meaning of that act. This liability arises
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 that service, after April 22, 1955.
    Subd. 2. Employee deduction. The contribution imposed by this section must be collected
by the covered employee's employer by deducting the amount of the contribution from wages as
and when paid. The failure to make such deduction does not relieve the employee from liability
for such contribution.
    Subd. 2a. Employer contribution. (a) Employer contributions that are required under the
agreement must be paid by the applicable employing unit.
(b) Employer contributions on behalf of St. Paul teachers, Duluth teachers, Minneapolis
teachers, or education employees may be paid from normal school operating funds. Employer
contributions on behalf of state employees must be paid by the applicable department or agency
from its appropriation or other revenue, in the same proportion as salaries are paid, and must be
charged as an administrative cost of the state governmental unit.
(c) Employing units may pay the employer contribution from taxes collected or from other
governmental revenue. An employing unit may include in its tax levy the amount necessary to
pay its Social Security obligations. If the taxes authorized to be levied cause the total levy amount
to exceed any limitation on the power of the employing unit to levy taxes, the unit may still levy
the necessary amount. The employing unit, in the event of a deficit, may issue debt obligations,
payable in not more than two years, in an amount which may cause its indebtedness to exceed
any limitation without holding an election and may levy taxes to amortize the indebtedness.
The authorized Social Security expenditures must not be included in computing the cost of
government for purposes of any home rule charter or other charter.
(d) If the required employer contribution for Social Security is increased and, as a result
of that increase, there is insufficient money available to a state governmental unit, there is
appropriated to the state department or agency from the general fund the amount required to meet
the deficiency, based on certifications from the director to the commissioner of finance. The
transfer of the appropriated amount may only occur after the commissioner of finance notifies the
chair and ranking minority member of the house Committee on Ways and Means and the chair
and ranking minority member of the senate Finance Committee of the amount to be transferred.
(e) For members of the general state employees retirement plan of the Minnesota State
Retirement System who are employed by the State Horticultural Society, the Department
of Minnesota for the Disabled American Veterans organization, the Department of
Minnesota of the Veterans of Foreign Wars organization, the Minnesota Crop Improvement
Association, the Minnesota Historical Society, the Armory Building Commission, and the
Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, the applicable employing unit
must pay the employer contribution from any revenue source that it has.
    Subd. 3. Adjustments; refunds. 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, must be made, without interest, in such manner and at
such times as the director prescribes.
    Subd. 4. Delinquent payments. Delinquent payments that are due under this chapter, with
compound interest at the rate of six percent per annum, may be recovered by legal action in a
court of competent jurisdiction against an employing unit that is liable for the amount. The
director may request that the delinquent payment and interest amount be deducted from any other
money that is payable to the applicable employing unit by any department or agency of the state.
An action for the recovery of delinquent payments is not subject to any statutory provision that
would otherwise limit the time within which an action may be commenced.
History: 1955 c 665 s 4; 1959 c 558 s 5; 1986 c 444; 2002 c 392 art 8 s 28