2004 Minnesota Statutes

     354.42 Contributions by employer and employee. 

    Subdivision 1.  Repealed, 1974 c 289 s 59 

    Subd. 2.    Employee.  The employee contribution to the 
 fund is an amount equal to 5.0 percent of the salary of every 
 coordinated member and 9.0 percent of the salary of every basic 
 member.  This contribution must be made by deduction from 
 salary.  Where any portion of a member's salary is paid from 
 other than public funds, the member's employee contribution must 
 be based on the entire salary received.  

    Subd. 3.    Employer.  The employer contribution to the 
 fund is an amount equal to 5.0 percent of the salary of each 
 coordinated member and 9.0 percent of the salary of each basic 
 member.  

    Subd. 4.  Repealed, 1969 c 485 s 40 

    Subd. 5.  Repealed, 1997 c 233 art 1 s 50 

    Subd. 6.  Repealed, 1974 c 289 s 59 

    Subd. 7.    Erroneous salary deductions or direct 
 payments.  (a) Deductions taken from the salary of an employee 
 for the retirement fund in error must be refunded to the 
 employee upon the discovery of the error and after the 
 verification of the error by the employing unit making the 
 deduction.  The corresponding employer contribution and 
 additional employer contribution amounts attributable to the 
 erroneous salary deduction must be refunded to the employing 
 unit. 

    (b) If salary deductions and employer contributions were 
 erroneously transmitted to the retirement fund and should have 
 been transmitted to another Minnesota public pension plan, the 
 executive director must transfer these salary deductions and 
 employer contributions to the appropriate public pension fund 
 without interest.  For purposes of this paragraph, a Minnesota 
 public pension plan means a plan specified in section 356.30, 
 subdivision 3, or the plan governed by chapter 354B. 

    (c) A potential transfer under paragraph (b) that would 
 cause the plan to fail to be a qualified plan under section 
 401(a) of the Internal Revenue Code, as amended, must not be 
 made by the executive director.  Within 30 days after being 
 notified by the Teachers Retirement Association of an unmade 
 potential transfer under this paragraph, the employer of the 
 affected person must transmit an amount representing the 
 applicable salary deductions and employer contributions, without 
 interest, to the retirement fund of the appropriate Minnesota 
 public pension plan fund.  The retirement association must 
 provide a credit for the amount of the erroneous salary 
 deductions and employer contributions against future 
 contributions from the employer. 

    (d) If a salary warrant or check from which a deduction for 
 the retirement fund was taken has been canceled or the amount of 
 the warrant or if a check has been returned to the funds of the 
 employing unit making the payment, a refund of the amount 
 deducted, or any portion of it that is required to adjust the 
 salary deductions, must be made to the employing unit. 

    (e) Erroneous direct payments of member-paid contributions 
 or erroneous salary deductions that were not refunded during the 
 regular payroll cycle processing must be refunded to the member, 
 plus interest computed using the rate and method specified in 
 section 354.49, subdivision 2. 

    (f) Any refund under this subdivision that would cause the 
 plan to fail to be a qualified plan under section 401(a) of the 
 Internal Revenue Code, as amended, may not be refunded and 
 instead must be credited against future contributions payable by 
 the employer.  The employer is responsible for refunding to the 
 applicable employee any amount that was erroneously deducted 
 from the salary of the employee, with interest as specified in 
 paragraph (e). 

    HIST: Ex1957 c 16 s 4; Ex1959 c 50 s 30; 1965 c 821 s 8-10; 
 1967 c 834 s 4-6; 1969 c 485 s 13-16; 1973 c 270 s 9; 1973 c 728 
 s 14-16; 1974 c 289 s 20,21; 1977 c 313 s 1; 1978 c 781 s 3; 
 1979 c 293 s 1,2; 1984 c 564 s 29; 1987 c 259 s 34; 1989 c 319 
 art 2 s 12; 1990 c 570 art 12 s 29,30; 1990 c 591 art 2 s 5; 
 1994 c 508 art 1 s 4; 1994 c 524 s 1; 1994 c 528 art 3 s 15,16; 
 1995 c 141 art 3 s 20; 1997 c 233 art 1 s 48-50; 2004 c 267 art 
 5 s 1