Capital Icon Minnesota Legislature

Office of the Revisor of Statutes

CHAPTER 353H. PROBATION AND TELECOMMUNICATOR RETIREMENT

Table of Sections
Section Headnote
353H.001 APPLICATION OF CHAPTER 353.
353H.002 POLICY.
353H.01 DEFINITIONS.
353H.02 ADMINISTRATION AND FUND DISBURSEMENT.
353H.03 MEMBERSHIP.
353H.04 CONTRIBUTIONS.
353H.05 RETIREMENT ANNUITY.
353H.06 DISABILITY BENEFITS.
353H.07 SURVIVOR BENEFITS.
353H.08 PURCHASE OF CREDIT FOR PAST SERVICE.

353H.001 APPLICATION OF CHAPTER 353.

The general provisions of chapter 353 apply to the local government probation and telecommunicator retirement plan, except where otherwise specifically provided in this chapter.

353H.002 POLICY.

It is the policy of the legislature that special consideration should be given to the pension benefits for employees of governmental subdivisions who devote their time and skills to assisting the community and the courts as probation officers or serving the public and public safety partners as telecommunicators. Because this work can be hazardous or high stress, special provisions are made by this chapter for earlier retirement and larger retirement annuities than are provided to members of the general employees retirement plan under chapter 353. The additional costs of these benefits are borne initially by the employees.

353H.01 DEFINITIONS.

Subdivision 1.Terms.

For purposes of this chapter, unless the language or context indicates that a different meaning is intended, the following terms have the meanings given. The definitions in section 353.01 apply to this chapter unless the term is defined in this section.

Subd. 2.Executive director.

"Executive director" means the executive director of the Public Employees Retirement Association appointed under section 353.03, subdivision 3a.

Subd. 3.Fund.

"Fund" means the local government probation and telecommunicator retirement fund.

Subd. 4.General plan.

"General plan" means the general employees retirement plan of the Public Employees Retirement Association.

Subd. 5.Member.

"Member" means an individual identified as a member under section 353H.03 for whom retirement coverage is provided by the plan.

Subd. 6.Normal retirement age.

"Normal retirement age" means age 60.

Subd. 7.Offset amount.

"Offset amount" means an amount available to offset the cost to purchase credit for past service upon the election by a member under section 353H.08, if state funding becomes available.

Subd. 8.Past service.

"Past service" means allowable service credited to a member before January 1, 2027, and covered by the general plan that would have been service covered by the local government probation and telecommunicator retirement plan had that plan been in effect before January 1, 2027.

Subd. 9.Plan.

"Plan" means the local government probation and telecommunicator retirement plan of the Public Employees Retirement Association.

Subd. 10.Probation officer.

"Probation officer" means an individual who the employer certifies, in the form prescribed by the executive director, is a public employee as defined in section 353.01 and:

(1) is employed as a probation officer by a county, community corrections agency, or state probation agency and provides community supervision services with direct offender contact; or

(2) directly supervises one or more individuals described in clause (1).

Subd. 11.Public safety telecommunicator.

"Public safety telecommunicator" means an individual who the employer certifies, in the form prescribed by the executive director, is a public employee as defined in section 353.01, employed by a primary or secondary public safety answering point and:

(1) serves as a first responder by receiving, assessing, or processing requests for assistance from the public and other public safety partners and coordinates the appropriate public safety response;

(2) as part of the individual's employment position, is assigned less than 50 percent of the time to perform employment duties other than the duties described in clause (1); or

(3) directly supervises one or more individuals described in clause (1) or (2).

Subd. 12.Vesting or vested.

"Vesting" or "vested" means obtaining or having obtained a nonforfeitable entitlement to an annuity or benefit under the plan by having earned credit for no less than three years of allowable service covered by the plan or the general plan.

353H.02 ADMINISTRATION AND FUND DISBURSEMENT.

Subdivision 1.Plan administration; fund.

(a) The plan is established as a separate plan to be administered by the board of trustees of the association and the executive director.

(b) The board of trustees and the executive director must undertake activities in a manner consistent with chapter 356A.

(c) The association must maintain a special fund to be known as the local government probation and telecommunicator retirement fund.

Subd. 2.Investment.

Assets of the fund must be deposited in the Minnesota combined investment fund as provided under section 11A.14, if applicable, or otherwise invested under section 11A.23.

Subd. 3.Fund disbursement restricted.

(a) The fund may be disbursed only for the purposes provided for under this chapter.

(b) The proportional share of the necessary and reasonable administrative expenses of the association and any benefits provided under this chapter must be paid from the fund. Retirement annuities, disability benefits, survivor benefits, and any refunds of accumulated deductions may only be paid from the fund after those needs have been certified by the executive director.

(c) The amounts necessary to make the payments from the fund are annually appropriated from the fund for those purposes.

353H.03 MEMBERSHIP.

(a) The members of the plan are probation officers and public safety telecommunicators.

(b) A probation officer or public safety telecommunicator who first became a public employee or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, is not eligible to participate as a member of the plan.

353H.04 CONTRIBUTIONS.

Subdivision 1.Member contributions.

(a) A member must make employee contributions equal to 8.82 percent of the member's salary.

(b) Employee contributions must be made by deduction from the member's salary, as defined in section 353.01, subdivision 10, in the manner provided in section 353.27, subdivision 4. If any portion of a member's salary is paid from a source other than public funds, the member's employee contribution must be based on the total salary received by the member from all sources.

Subd. 2.Employer contributions.

(a) The employer of a member must make employer contributions equal to 7.5 percent of the member's salary.

(b) Employer contributions must be made from money available to the employing subdivision by the means and in the manner provided under section 353.28.

Subd. 3.Deposit of contributions.

Employee contributions under subdivision 1, employer contributions under subdivision 2, and other amounts authorized by law, including investment return on invested fund assets, must be deposited in the fund.

Subd. 4.Collection, correction, and reporting of contributions.

The requirements and procedures under sections 353.27 and 353.28 apply to employee and employer contributions under this section.

353H.05 RETIREMENT ANNUITY.

Subdivision 1.Normal retirement annuity.

After termination of public service, a member who has attained at least normal retirement age and is vested is entitled, upon application, to a normal retirement annuity. The normal retirement annuity is equal to the member's average salary multiplied by 1.9 percent for each year of allowable service.

Subd. 2.Optional annuity; bounce-back annuity.

(a) Instead of a normal retirement annuity under subdivision 1, a member may elect to receive an optional annuity under section 353.30, subdivision 3.

(b) A bounce-back annuity under section 353.30, subdivisions 3a and 3c, applies to an annuity under this section or a disability benefit under section 353H.06.

Subd. 3.Early retirement annuity.

After termination of public service, a member who is vested and at least 55 years of age, but not yet normal retirement age, is entitled, upon application, to an early retirement annuity that is actuarially equivalent to the normal retirement annuity.

Subd. 4.Allowable service in other retirement plans.

If a member has earned allowable service in the general plan, the public employees police and fire retirement plan, or the public employees local government correctional service retirement plan before or after participation under this chapter, the retirement annuity under the plan or plans must be computed in accordance with the formula specified in sections 353.29 and 353.30, 353.651, or 353E.04, whichever applies.

Subd. 5.Application; annuity starting date; annuity duration.

Upon application under section 353.29, subdivision 4, the retirement annuity under this section begins as provided in section 353.29, subdivision 7. The retirement annuity is payable for the life of the recipient or in accordance with the terms of any optional annuity form selected by the member.

Subd. 6.Payment of annuities and benefits earned under the general plan.

The executive director must pay a retirement annuity or benefit as provided under chapter 353 to a member of the plan from the assets of the fund if the member was transferred from the general plan to the plan on January 1, 2027, and had allowable service under the general plan.

Subd. 7.Postretirement adjustment eligibility.

An annuity under this section is eligible for postretirement adjustments under section 356.415.

353H.06 DISABILITY BENEFITS.

A vested member who becomes totally and permanently disabled as defined in section 353.01, subdivision 19, before normal retirement age is entitled to a disability benefit on the same basis as a member of the general plan under sections 353.031, 353.33, and 353.335.

353H.07 SURVIVOR BENEFITS.

Upon the death of a member, survivor benefits are payable as provided under section 353.32 on the same basis as a member of the general plan.

353H.08 PURCHASE OF CREDIT FOR PAST SERVICE.

Subdivision 1.Purchase of credit for past service.

(a) A member is entitled to elect a onetime purchase of credit for periods of past service to be added to the member's allowable service covered by this section and used in calculating the member's retirement annuity. The member must repay any refunds of employee contributions previously received from the general plan before making a purchase of past service credit under this section.

(b) A member may request an estimate of the cost of a service credit purchase under this paragraph.

(1) A member may file a request with the executive director for an estimate of the purchase price for up to three different periods of past service by filing an application on a form approved by the executive director.

(2) The member must file the request for an estimate prior to filing an election to purchase past service under paragraph (c).

(3) The member must submit, with the estimate request, payment of the administrative fee in the amount of $250 to cover the cost of preparing the estimates. If the member proceeds with the purchase, the executive director must credit the administrative fee toward the purchase price.

(4) The executive director must estimate the purchase price using the assumptions and applying any offset amount as directed under subdivision 2 for the periods of past service requested by the member and provide the estimates to the member.

(c) To purchase credit for past service, a member must file an application with the executive director on a form approved by the executive director before the annuity starting date of the member's retirement annuity or benefit. The application must:

(1) include documentation of the member's eligibility to make the purchase, signed written permission to allow the executive director to request and receive verification of applicable facts and eligibility requirements from the member's employer, and any other relevant information the executive director may require;

(2) state the amount of credit for past service the member plans to purchase and be accompanied by a certification from one or more employers that the past service fulfills the requirements under section 353H.01, subdivision 8; and

(3) if the member did not previously pay the administrative fee under paragraph (b), include payment of the administrative fee of $250. If the member proceeds with the purchase, the executive director must credit the administrative fee toward the purchase price.

(d) The executive director must apply the assumptions and any offset amount under subdivision 2 to calculate the purchase price and notify the member. If the member elects to make the purchase of credit for past service, the member must arrange for the transfer of pretax money from another retirement plan. Payment must be made in one lump sum before the annuity starting date of the member's retirement annuity or benefit.

(e) Upon receipt of payment, the executive director must grant the member service credit for the period of past service for which credit was purchased.

Subd. 2.Determination of past service purchase price.

(a) The executive director must calculate the purchase price for the period of past service elected by the member. The purchase price is an amount equal to the actuarial present value, on the date of payment, of the amount of the additional retirement annuity obtained by the additional service credit being purchased minus any offset amount.

(b) The executive director must calculate the purchase price by:

(1) using the investment return assumption specified in section 356.215, subdivision 8, and the mortality table in effect for the general plan;

(2) assuming continuous future service in the plan until the plan's minimum requirements for normal retirement, or retirement with an annuity unreduced for retirement at an early age, are met with the additional service credit purchased;

(3) assuming a full-time equivalent salary or actual salary, whichever is greater, and a future salary history that includes annual salary increases at the applicable salary increase rate for the plan; and

(4) reducing the amount determined under clauses (1) to (3) by any offset amount.

Official Publication of the State of Minnesota
Revisor of Statutes