1998 Minnesota Statutes

     126C.41 Benefits levies. 

    Subdivision 1.    Health insurance.  (a) A district may 
 levy the amount necessary to make employer contributions for 
 insurance for retired employees under this subdivision.  

    (b) The school board of a joint vocational technical 
 district formed under sections 136C.60 to 136C.69 and the school 
 board of a school district may provide employer-paid hospital, 
 medical, and dental benefits to a person who: 

    (1) is eligible for employer-paid insurance under 
 collective bargaining agreements or personnel plans in effect on 
 June 30, 1992; 

    (2) has at least 25 years of service credit in the public 
 pension plan of which the person is a member on the day before 
 retirement or, in the case of a teacher, has a total of at least 
 25 years of service credit in the teachers retirement 
 association, a first-class city teacher retirement fund, or any 
 combination of these; 

    (3) upon retirement is immediately eligible for a 
 retirement annuity; 

    (4) is at least 55 and not yet 65 years of age; and 

    (5) retires on or after May 15, 1992, and before July 21, 
 1992. 

    A school board paying insurance under this subdivision may 
 not exclude any eligible employees. 

    (c) An employee who is eligible both for the health 
 insurance benefit under this subdivision and for an early 
 retirement incentive under a collective bargaining agreement or 
 personnel plan established by the employer must select either 
 the early retirement incentive provided under the collective 
 bargaining agreement personnel plan or the incentive provided 
 under this subdivision, but may not receive both.  For purposes 
 of this subdivision, a person retires when the person terminates 
 active employment and applies for retirement benefits.  The 
 retired employee is eligible for single and dependent coverages 
 and employer payments to which the person was entitled 
 immediately before retirement, subject to any changes in 
 coverage and employer and employee payments through collective 
 bargaining or personnel plans, for employees in positions 
 equivalent to the position from which the employee retired.  The 
 retired employee is not eligible for employer-paid life 
 insurance.  Eligibility ceases when the retired employee attains 
 the age of 65, or when the employee chooses not to receive the 
 retirement benefits for which the employee has applied, or when 
 the employee is eligible for employer-paid health insurance from 
 a new employer.  Coverages must be coordinated with relevant 
 health insurance benefits provided through the federally 
 sponsored Medicare program.  

    (d) Unilateral implementation of this section by a public 
 employer is not an unfair labor practice for purposes of chapter 
 179A.  The authority provided in this subdivision for an 
 employer to pay health insurance costs for certain retired 
 employees is not subject to the limits in section 179A.20, 
 subdivision 2a. 

    (e) If a school district levies according to this 
 subdivision, it may not also levy according to section 123A.73, 
 subdivision 12, for eligible employees. 

    Subd. 2.    Retired employee health benefits.  For taxes 
 payable in 1996, 1997, 1998, and 1999 only, a district may levy 
 an amount up to the amount the district is required by the 
 collective bargaining agreement in effect on March 30, 1992, to 
 pay for health insurance or unreimbursed medical expenses for 
 licensed and nonlicensed employees who have terminated services 
 in the employing district and withdrawn from active teaching 
 service or other active service, as applicable, before July 1, 
 1992.  The total amount of the levy each year may not exceed 
 $300,000.  

    Subd. 3.    Retirement levies.  (1) In addition to the 
 excess levy authorized in 1976 any district within a city of the 
 first class which was authorized in 1975 to make a retirement 
 levy under Minnesota Statutes 1974, section 275.127 and chapter 
 422A may levy an amount per pupil unit which is equal to the 
 amount levied in 1975 payable 1976, under Minnesota Statutes 
 1974, section 275.127 and chapter 422A, divided by the number of 
 pupil units in the district in 1976-1977. 

    (2) In 1979 and each year thereafter, any district which 
 qualified in 1976 for an extra levy under paragraph (1) shall be 
 allowed to levy the same amount as levied for retirement in 1978 
 under this clause reduced each year by ten percent of the 
 difference between the amount levied for retirement in 1971 
 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 422.54 and the amount levied for retirement in 1975 under 
 Minnesota Statutes 1974, section 275.127 and chapter 422A. 

    (3) In 1991 and each year thereafter, a district to which 
 this subdivision applies may levy an additional amount required 
 for contributions to the Minneapolis employees retirement fund 
 as a result of the maximum dollar amount limitation on state 
 contributions to the fund imposed under section 422A.101, 
 subdivision 3.  The additional levy must not exceed the most 
 recent amount certified by the board of the Minneapolis 
 employees retirement fund as the district's share of the 
 contribution requirement in excess of the maximum state 
 contribution under section 422A.101, subdivision 3.  

    (4) For taxes payable in 1994 and thereafter, special 
 school district No. 1, Minneapolis, and independent school 
 district No. 625, St. Paul, may levy for the increase in the 
 employer retirement fund contributions, under Laws 1992, chapter 
 598, article 5, section 1.  

    (5) If the employer retirement fund contributions under 
 section 354A.12, subdivision 2a, are increased for fiscal year 
 1994 or later fiscal years, special school district No. 1, 
 Minneapolis, and independent school district No. 625, St. Paul, 
 may levy in payable 1994 or later an amount equal to the amount 
 derived by applying the net increase in the employer retirement 
 fund contribution rate of the respective teacher retirement fund 
 association between fiscal year 1993 and the fiscal year 
 beginning in the year after the levy is certified to the total 
 covered payroll of the applicable teacher retirement fund 
 association.  If an applicable school district levies under this 
 paragraph, they may not levy under paragraph (4). 

    (6) In addition to the levy authorized under paragraph (5), 
 special school district No. 1, Minneapolis, may also levy 
 payable in 1997 or later an amount equal to the contributions 
 under section 423A.02, subdivision 3, and may also levy in 
 payable 1994 or later an amount equal to the state aid 
 contribution under section 354A.12, subdivision 3b.  Independent 
 school district No. 625, St. Paul, may levy payable in 1997 or 
 later an amount equal to the supplemental contributions under 
 section 423A.02, subdivision 3.  

    Subd. 4.    Minneapolis health insurance subsidy.  Each 
 year special school district No. 1, Minneapolis, may make an 
 additional levy not to exceed the amount raised by a net tax 
 rate of .10 percent times the adjusted net tax capacity for 
 taxes payable in 1991 and thereafter of the property in the 
 district for the preceding year.  The proceeds may be used only 
 to subsidize health insurance costs for eligible teachers as 
 provided in this section.  

    "Eligible teacher" means a retired teacher who was a basic 
 member of the Minneapolis teachers retirement fund association, 
 who retired before May 1, 1974, or who had 20 or more years of 
 basic member service in the Minneapolis teacher retirement fund 
 association and retired before June 30, 1983, and who is not 
 eligible to receive the hospital insurance benefits of the 
 federal Medicare program of the Social Security Act without 
 payment of a monthly premium.  The district must notify eligible 
 teachers that a subsidy is available.  To obtain a subsidy, an 
 eligible teacher must submit to the school district a copy of 
 receipts for health insurance premiums paid.  The district must 
 disburse the health insurance premium subsidy to each eligible 
 teacher according to a schedule determined by the district, but 
 at least annually.  An eligible teacher may receive a subsidy up 
 to an amount equal to the lesser of 90 percent of the cost of 
 the eligible teacher's health insurance or up to 90 percent of 
 the cost of the number two qualified plan of health coverage for 
 individual policies made available by the Minnesota 
 comprehensive health association under chapter 62E.  

    If funds remaining from the previous year's health 
 insurance subsidy levy, minus the previous year's required 
 subsidy amount, are sufficient to pay the estimated current year 
 subsidy, the levy must be discontinued until the remaining funds 
 are estimated by the school board to be insufficient to pay the 
 subsidy. 

    This subdivision does not extend benefits to teachers who 
 retire after June 30, 1983, and does not create a contractual 
 right or claim for altering the benefits in this subdivision.  
 This subdivision does not restrict the district's right to 
 modify or terminate coverage under this subdivision. 

    HIST: 1976 c 271 s 84; 1979 c 303 art 2 s 22; 1981 c 224 s 38; 
 1983 c 314 art 1 s 21; 1986 c 444; 1987 c 384 art 2 s 68; 1987 c 
 398 art 6 s 14; 1988 c 719 art 5 s 84; 1989 c 15 s 1; 1989 c 329 
 art 13 s 10,20; 1Sp1989 c 1 art 2 s 11; 1990 c 562 art 10 s 
 7,12; 1991 c 345 art 4 s 1; 1992 c 499 art 7 s 12,13; art 12 s 
 29; 1992 c 603 s 7; 1993 c 224 art 8 s 5,6; 1995 c 186 s 37; 
 1Sp1995 c 3 art 8 s 5; 1996 c 412 art 8 s 8; 1996 c 438 art 4 s 
 3; 1Sp1997 c 4 art 1 s 29-31; 1998 c 397 art 7 s 116,164; art 11 
 s 3