2004 Minnesota Statutes

     353.028 City managers; election; deferred compensation. 

    Subdivision 1.    Definitions.  For purposes of this 
 section "city manager" means (1) a person duly appointed to and 
 holding the position of city manager in a Plan B statutory city 
 or in a home rule city operating under the "council-manager" 
 form of government, or (2) a person appointed to and holding the 
 position of chief administrative officer of a home rule charter 
 city or a statutory city pursuant to a charter provision, 
 ordinance, or resolution establishing such a position and 
 prescribing its duties and responsibilities.  "Governing body"  
 means the city council of the city employing the city manager.  
 "Election" means the election described in subdivision 2.  

    Subd. 2.    Election.  (a) A city manager may elect to 
 be excluded from membership in the association.  The election of 
 exclusion must be made within six months following the 
 commencement of employment, in writing on a form prescribed by 
 the executive director, and must be approved by a resolution of 
 the governing body of the city.  The election of exclusion is 
 not effective until it is filed with the executive director.  
 Membership of a city manager in the association ceases on the 
 date the written election is received by the executive director 
 or upon a later date specified.  Employee and employer 
 contributions made on behalf of a person exercising the option 
 to be excluded from membership under this section must be 
 refunded in accordance with section 353.27, subdivision 7. 

    (b) A city manager who has elected exclusion under this 
 subdivision may elect to revoke that action by filing a written 
 notice with the executive director.  The notice must be on a 
 form prescribed by the executive director and must be approved 
 by a resolution of the governing body of the city.  Membership 
 of the city manager in the association resumes prospectively 
 from the date of the first day of the pay period for which 
 contributions were deducted or, if pay period coverage dates are 
 not provided, the date on which the notice of revocation or 
 contributions are received in the office of the association, 
 provided that the notice of revocation is received by the 
 association within 60 days of the receipt of contributions. 

    (c) An election under paragraph (b) is irrevocable.  Any 
 election under paragraph (a) or (b) must include a statement 
 that the individual will not seek authorization to purchase 
 service credit for any period of excluded service. 

    Subd. 3.    Deferred compensation; city contribution.  
 If an election of exclusion is made, and if the city manager and 
 the governing body of the city agree in writing that the 
 additional compensation is to be deferred and shall be 
 contributed on behalf of the city manager to a deferred 
 compensation program which meets the requirements of section 457 
 of the Internal Revenue Code of 1954, as amended through 
 December 31, 1980, the governing body may compensate the city 
 manager, in addition to the salary allowed under any limitation 
 imposed on salaries by law or charter, in an amount equal to the 
 employer contribution which would be required by section 353.27, 
 subdivision 3, if the city manager were a member of the 
 association.  

    Subd. 4.    Refunds; deferred annuity.  A city manager 
 who makes an election to be excluded from membership is entitled 
 to a refund of accumulated deductions or, if otherwise 
 qualified, a deferred annuity in the manner provided by section 
 353.34, at the option of the manager.  

    Subd. 5.    Election; other employment.  If a city 
 manager who has made an election to be excluded accepts 
 employment in another governmental subdivision or accepts 
 employment other than as a city manager in the same city, the 
 election shall be deemed to have been rescinded on the effective 
 date of employment.  

    HIST: 1981 c 254 s 1; 1988 c 709 art 5 s 8; 1Sp2003 c 12 art 4 
 s 3