2000 Minnesota Statutes

     356.62 Payment of employee contribution. 

    For purposes of any public pension plan, as defined in 
 section 356.61, each employer shall pick up the employee 
 contributions required pursuant to law or the pension plan for 
 all salary payable after December 31, 1982.  If the United 
 States Treasury department rules that pursuant to section 414(h) 
 of the Internal Revenue Code of 1986, as amended through 
 December 31, 1992, that these picked up contributions are not 
 includable in the employee's adjusted gross income until they 
 are distributed or made available, then these picked up 
 contributions shall be treated as employer contributions in 
 determining tax treatment pursuant to the Internal Revenue Code 
 of 1986, as amended through December 31, 1992, and the employer 
 shall discontinue withholding federal income taxes on the amount 
 of these contributions.  The employer shall pay these picked up 
 contributions from the same source of funds as is used to pay 
 the salary of the employee.  The employer shall pick up these 
 employee contributions by a reduction in the cash salary of the 
 employee. 

    Employee contributions that are picked up shall be treated 
 for all purposes of the public pension plan in the same manner 
 and to the same extent as employee contributions that were made 
 prior to the date on which the employee contributions pick up 
 began.  The amount of the employee contributions that are picked 
 up shall be included in the salary upon which retirement 
 coverage is credited and retirement and survivor's benefits are 
 determined.  For purposes of this section, "employee" means any 
 person covered by a public pension plan.  For purposes of this 
 section, "employee contributions" include any sums deducted from 
 the employee's salary or wages or otherwise paid in lieu 
 thereof, regardless of whether they are denominated 
 contributions by the public pension plan. 

    For any calendar year in which withholding has been reduced 
 pursuant to this section, the employing unit shall supply each 
 employee and the commissioner of revenue with an information 
 return indicating the amount of the employer's picked-up 
 contributions for the calendar year that were not subject to 
 withholding.  This return shall be provided to the employee not 
 later than January 31 of the succeeding calendar year.  The 
 commissioner of revenue shall prescribe the form of the return 
 and the provisions of section 289A.12 shall apply to the extent 
 not inconsistent with the provisions of this section. 

    HIST: 3Sp1982 c 1 art 2 s 7; 1983 c 148 s 6; 1983 c 216 art 1 
 s 85; 1990 c 480 art 1 s 46; 1993 c 375 art 8 s 14