2005 Minnesota Statutes

     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.  The employee 
 contribution to the fund must be equal to 4.0 percent of 
 salary.  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 4.0 percent of salary. 

    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.  

    HIST: (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