STATE OF MINNESOTA
EIGHTY-THIRD SESSION - 2004
_____________________
SEVENTY-FOURTH DAY
Saint Paul, Minnesota, Monday, March 15, 2004
The House of Representatives convened at 3:00 p.m. and was
called to order by Steve Sviggum, Speaker of the House.
Prayer was offered by Don Wilke, Chaplain at The Good Shepherd
Community, Sauk Rapids, Minnesota.
The members of the House gave the pledge of allegiance to the
flag of the United States of America.
The roll was called and the following members were present:
Abeler
Abrams
Adolphson
Anderson, B.
Anderson, I.
Anderson, J.
Atkins
Beard
Bernardy
Biernat
Blaine
Borrell
Boudreau
Bradley
Brod
Buesgens
Carlson
Clark
Cornish
Cox
Davids
Davnie
DeLaForest
Demmer
Dempsey
Dill
Dorman
Dorn
Eastlund
Eken
Ellison
Entenza
Erhardt
Erickson
Finstad
Fuller
Gerlach
Goodwin
Greiling
Gunther
Haas
Hackbarth
Harder
Hausman
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Howes
Huntley
Jacobson
Jaros
Johnson, J.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Lieder
Lindgren
Lindner
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Mullery
Murphy
Nelson, C.
Nelson, M.
Nelson, P.
Newman
Nornes
Olsen, S.
Olson, M.
Opatz
Osterman
Otremba
Otto
Ozment
Paulsen
Paymar
Pelowski
Penas
Peterson
Powell
Pugh
Rhodes
Rukavina
Ruth
Samuelson
Seagren
Seifert
Sertich
Severson
Sieben
Simpson
Slawik
Smith
Soderstrom
Solberg
Stang
Strachan
Swenson
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Walz
Wardlow
Wasiluk
Westerberg
Westrom
Wilkin
Spk. Sviggum
A quorum was present.
Kuisle and Zellers were excused.
Lipman was excused until 3:45 p.m.
The Chief Clerk proceeded to read the Journal of the preceding
day. Dorman moved that further reading
of the Journal be suspended and that the Journal be approved as corrected by
the Chief Clerk. The motion prevailed.
PETITIONS AND COMMUNICATIONS
The following communications were received:
STATE
OF MINNESOTA
OFFICE
OF THE GOVERNOR
SAINT
PAUL 55155
March
10, 2004
The Honorable Steve Sviggum
Speaker of the House of
Representatives
The State of Minnesota
Dear Speaker Sviggum:
It is my honor to inform you that I have received, approved,
signed, and deposited in the Office of the Secretary of State the following
House File:
H. F. No. 1794, relating to transportation;
decreasing minimum required local contribution to federally funded airport
projects.
Sincerely,
Tim
Pawlenty
Governor
STATE
OF MINNESOTA
OFFICE
OF THE SECRETARY OF STATE
ST.
PAUL 55155
The Honorable Steve Sviggum
Speaker of the House of
Representatives
The Honorable James P.
Metzen
President of the Senate
I have the honor to inform you that the following enrolled Act
of the 2004 Session of the State Legislature has been received from the Office of
the Governor and is deposited in the Office of the Secretary of State for
preservation, pursuant to the State Constitution, Article IV, Section 23:
S. F. No. |
H. F. No. |
Session Laws Chapter No. |
Time and Date Approved 2004 |
Date Filed 2004 |
1794 136 11:05 a.m.
March 10 March
10
Sincerely,
Mary
Kiffmeyer
Secretary
of State
REPORTS OF STANDING COMMITTEES
Rhodes from the Committee on Governmental Operations and
Veterans Affairs Policy to which was referred:
H. F. No. 227, A bill for an act relating to elections; voter
eligibility; restoring eligibility to vote to certain convicted felons who are
not incarcerated; amending Minnesota Statutes 2002, sections 201.014,
subdivision 2; 242.31, subdivision 1; 609.165, subdivisions 1, 1a, 1b.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2003 Supplement, section 201.014, subdivision 2, is
amended to read:
Subd. 2. [NOT
ELIGIBLE.] (a) The following individuals are not eligible to vote. Any individual:
(a) (1) an individual who is convicted of treason
or any felony whose civil rights have not been restored;
(b) (2) an individual who is under a guardianship
of the person in which the court order provides that the ward does not retain
the right to vote; or and
(c) (3) an individual who is found by a court of
law to be legally incompetent.
(b) For purposes of this subdivision, an individual
convicted of a felony is restored to civil rights:
(1) after completion of any period of incarceration; or
(2) during or after any time the individual is placed on
probation, parole, conditional release, or supervised release.
Sec. 2. [243.205]
[NOTICE OF RESTORATION OF CIVIL RIGHTS AND ELIGIBILITY TO VOTE.]
(a) The commissioner of corrections must give an offender
notice in writing that the person is restored to civil rights for purposes of
eligibility to vote:
(1) when the offender is placed on supervised release under
section 244.05, or placed on conditional release under section 609.108,
subdivision 6, or 609.109, subdivision 7;
(2) when the offender is released from a state correctional
facility and is no longer under the custody of the commissioner of corrections;
and
(3) when the offender is placed on parole.
Sec. 3. [609.169]
[NOTICE OF RESTORATION OF CIVIL RIGHTS AND ELIGIBILITY TO VOTE.]
(a) When an offender who has been convicted of a felony
offense is released from incarceration in a local correctional facility, the
chief executive officer of the facility must give the offender a notice in
writing that the person is restored to civil rights for purposes of eligibility
to vote.
(b) When an offender who has been
committed to the custody of the commissioner of corrections is released from a
state correctional facility, the commissioner of corrections must notify the
offender of eligibility to vote under section 243.205."
Delete the title and insert:
"A bill for an act relating to elections; restoring
eligibility to vote to certain convicted felons who are not incarcerated;
requiring notice; amending Minnesota Statutes 2003 Supplement, section 201.014,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapters
243; 609."
With the recommendation that when so amended the bill pass.
The report was adopted.
Sykora from the Committee on Education Policy to which was
referred:
H. F. No. 580, A bill for an act relating to education;
providing for curriculum and instruction premised on abstinence until marriage;
amending Minnesota Statutes 2002, section 121A.23, by adding a subdivision.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Rhodes from the Committee on Governmental Operations and Veterans
Affairs Policy to which was referred:
H. F. No. 890, A bill for an act relating to retirement;
Minnesota state retirement system and public employees retirement association;
modifying various definitions in the public employees retirement association;
making clarifications to disability benefit and reemployed annuitant provisions
in the public employees retirement association; providing for disposition of
pension assets after death of certain employees in the Minnesota state
retirement system and public employees retirement association; amending
Minnesota Statutes 2002, sections 353.01, subdivisions 2b, 10, 12a, 12b;
353.33, subdivisions 4, 5, 6, 6b, 7; 353.37, subdivision 3, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapters 352F;
353F; repealing Minnesota Statutes 2002, sections 353.01, subdivision 38;
353.33, subdivision 5b.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2002, section 352.03, subdivision 6, is amended to
read:
Subd. 6. [DUTIES AND
POWERS OF EXECUTIVE DIRECTOR.] The management of the system is vested in the
director, who is the executive and administrative head of the system. The director shall be advisor to the board
on matters pertaining to the system and shall also act as the secretary of the
board. The director shall:
(1) attend meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out this chapter;
(3) establish and maintain an adequate
system of records and accounts following recognized accounting principles and
controls;
(4) designate an assistant director with the approval of the
board;
(5) appoint any employees, both permanent and temporary, that
are necessary to carry out the provisions of this chapter;
(6) organize the work of the system as the director deems
necessary to fulfill the functions of the system, and define the duties of its
employees and delegate to them any powers or duties, subject to the control of
the director and under conditions the director may prescribe. Appointments to exercise delegated power
must be by written order and shall be filed with the secretary of state;
(7) with the advice and consent of the board, contract for the
services of an approved actuary, professional management services, and any
other consulting services as necessary and fix the compensation for those
services. The contracts are not subject
to competitive bidding under chapter 16C.
Any approved actuary retained by the executive director shall function
as the actuarial advisor of the board and the executive director, and may
perform actuarial valuations and experience studies to supplement those
performed by the actuary retained by the legislative commission on pensions
and retirement under section 356.214. Any supplemental actuarial valuations or experience studies shall
be filed with the executive director of the Legislative Commission on Pensions
and Retirement. Professional management
services may not be contracted for more often than once in six years. Copies of professional management survey
reports must be transmitted to the secretary of the senate, the chief clerk of
the house of representatives, and the legislative reference library as provided
by section 3.195, and to the executive director of the commission at the time
as reports are furnished to the board.
Only management firms experienced in conducting management surveys of
federal, state, or local public retirement systems are qualified to contract
with the director;
(8) with the advice and consent of the board provide in-service
training for the employees of the system;
(9) make refunds of accumulated contributions to former state
employees and to the designated beneficiary, surviving spouse, legal
representative, or next of kin of deceased state employees or deceased former
state employees, as provided in this chapter;
(10) determine the amount of the annuities and disability
benefits of employees covered by the system and authorize payment of the
annuities and benefits beginning as of the dates on which the annuities and
benefits begin to accrue, in accordance with the provisions of this chapter;
(11) pay annuities, refunds, survivor benefits, salaries, and
necessary operating expenses of the system;
(12) certify funds available for investment to the State Board
of Investment;
(13) with the advice and approval of the board request the
State Board of Investment to sell securities when the director determines that
funds are needed for the system;
(14) prepare and submit to the board and the legislature an
annual financial report covering the operation of the system, as required by
section 356.20;
(15) prepare and submit biennial and annual budgets to the
board and with the approval of the board submit the budgets to the Department
of Finance; and
(16) with the approval of the board, perform other duties
required to administer the retirement and other provisions of this chapter and
to do its business.
Sec. 2.
Minnesota Statutes 2002, section 352B.02, subdivision 1e, is amended to
read:
Subd. 1e. [AUDIT;
ACTUARIAL VALUATION.] The legislative auditor shall audit the fund. Any actuarial valuation of the fund required
under section 356.215 shall must be prepared by the actuary
retained by the Legislative Commission on Pensions and Retirement under
section 356.214. Any approved
actuary retained by the executive director under section 352.03, subdivision 6,
may perform actuarial valuations and experience studies to supplement those
performed by the commission-retained actuary.
Any supplemental actuarial valuation or experience studies shall be
filed with the executive director of the Legislative Commission on Pensions and
Retirement.
Sec. 3. Minnesota
Statutes 2002, section 353.03, subdivision 3a, is amended to read:
Subd. 3a. [EXECUTIVE
DIRECTOR.] (a) [APPOINTMENT.] The board
shall appoint, with the advice and consent of the senate, an executive director
on the basis of education, experience in the retirement field, and leadership
ability. The executive director shall
have had at least five years' experience in an executive level management
position, which has included responsibility for pensions, deferred
compensation, or employee benefits. The
executive director serves at the pleasure of the board. The salary of the executive director is as
provided by section 15A.0815.
(b) [DUTIES.] The
management of the association is vested in the executive director who shall be
the executive and administrative head of the association. The executive director shall act as adviser
to the board on all matters pertaining to the association and shall also act as
the secretary of the board. The
executive director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out the provisions of this chapter;
(3) establish and maintain an adequate system of records and
accounts following recognized accounting principles and controls;
(4) designate, with the approval of the board, up to two
persons who shall serve in the unclassified service and whose salary is set in
accordance with section 43A.18, subdivision 3, appoint a confidential secretary
in the unclassified service, and appoint employees to carry out this chapter,
who are subject to chapters 43A and 179A in the same manner as are executive
branch employees;
(5) organize the work of the association as the director deems
necessary to fulfill the functions of the association, and define the duties of
its employees and delegate to them any powers or duties, subject to the control
of, and under such conditions as, the executive director may prescribe;
(6) with the approval of the board, contract for the services
of an approved actuary, professional management services, and any other
consulting services as necessary to fulfill the purposes of this chapter. All contracts are subject to chapter
16C. The commissioner of administration
shall not approve, and the association shall not enter into, any contract to
provide lobbying services or legislative advocacy of any kind. Any approved actuary retained by the
executive director shall function as the actuarial advisor of the board and the
executive director and may perform actuarial valuations and experience studies
to supplement those performed by the actuary retained by the Legislative
Commission on Pensions and Retirement under section 356.214. Any supplemental actuarial valuations or
experience studies shall be filed with the executive director of the
Legislative Commission on Pensions and Retirement. Copies of professional management survey reports shall be
transmitted to the secretary of the senate, the chief clerk of the house of
representatives, and the Legislative Reference Library as provided by section
3.195, and to the executive director of the commission at the same time as
reports are furnished to the board.
Only management firms experienced in conducting management surveys of
federal, state, or local public retirement systems shall be qualified to
contract with the director hereunder;
(7) with the approval of the board
provide in-service training for the employees of the association;
(8) make refunds of accumulated contributions to former members
and to the designated beneficiary, surviving spouse, legal representative or
next of kin of deceased members or deceased former members, as provided in this
chapter;
(9) determine the amount of the annuities and disability
benefits of members covered by the association and authorize payment of the
annuities and benefits beginning as of the dates on which the annuities and
benefits begin to accrue, in accordance with the provisions of this chapter;
(10) pay annuities, refunds, survivor benefits, salaries, and
necessary operating expenses of the association;
(11) prepare and submit to the board and the legislature an
annual financial report covering the operation of the association, as required
by section 356.20;
(12) prepare and submit biennial and annual budgets to the
board for its approval and submit the approved budgets to the department of
finance for approval by the commissioner;
(13) reduce all or part of the accrued interest payable under
section 353.27, subdivisions 12, 12a, and 12b, or 353.28, subdivision 5, upon receipt
of proof by the association of an unreasonable processing delay or other
extenuating circumstances of the employing unit. The executive director shall prescribe and submit for approval by
the board the conditions under which such interest may be reduced; and
(14) with the approval of the board, perform such other duties
as may be required for the administration of the association and the other
provisions of this chapter and for the transaction of its business.
Sec. 4. Minnesota
Statutes 2002, section 354.06, subdivision 2a, is amended to read:
Subd. 2a. [DUTIES OF
EXECUTIVE DIRECTOR.] The management of the association is vested in the
executive director who shall be the executive and administrative head of the
association. The executive director
shall act as advisor to the board on all matters pertaining to the association
and shall also act as the secretary of the board. The executive director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out the provisions of this chapter;
(3) establish and maintain an adequate system of records and
accounts following recognized accounting principles and controls;
(4) designate an assistant executive director in the
unclassified service and two assistant executive directors in the classified
service with the approval of the board, and appoint such employees, both
permanent and temporary, as are necessary to carry out the provisions of this
chapter;
(5) organize the work of the association as the director deems
necessary to fulfill the functions of the association, and define the duties of
its employees and delegate to them any powers or duties, subject to the
director's control and under such conditions as the director may prescribe;
(6) with the approval of the board, contract and set the
compensation for the services of an approved actuary, professional management
services, and any other consulting services.
These contracts are not subject to the competitive bidding procedure
prescribed by chapter 16C. An approved
actuary retained by the executive director shall function as the actuarial
advisor of the board and the executive director and may perform actuarial
valuations and experience studies to supplement those performed by the actuary
retained by the legislative commission on pensions and retirement under
section 356.214. Any supplemental
actuarial valuations or experience studies shall be filed with the executive
director of the Legislative Commission on Pensions and Retirement. Copies of professional management survey
reports must be transmitted to the secretary of the senate, the chief clerk of
the house of representatives, and the legislative reference library as provided
by section 3.195, and to the executive director of the commission at the same
time as reports are furnished to the board.
Only management firms experienced in conducting management surveys of
federal, state, or local public retirement systems are qualified to contract
with the executive director;
(7) with the approval of the board, provide in-service training
for the employees of the association;
(8) make refunds of accumulated contributions to former members
and to the designated beneficiary, surviving spouse, legal representative, or
next of kin of deceased members or deceased former members, under this chapter;
(9) determine the amount of the annuities and disability
benefits of members covered by the association and authorize payment of the
annuities and benefits beginning as of the dates on which the annuities and
benefits begin to accrue, under this chapter;
(10) pay annuities, refunds, survivor benefits, salaries, and
necessary operating expenses of the association;
(11) prepare and submit to the board and the legislature an
annual financial report covering the operation of the association, as required
by section 356.20;
(12) certify funds available for investment to the state board
of investment;
(13) with the advice and approval of the board, request the
State Board of Investment to sell securities on determining that funds are
needed for the purposes of the association;
(14) prepare and submit biennial and annual budgets to the
board and with the approval of the board submit those budgets to the department
of finance; and
(15) with the approval of the board, perform such other duties
as may be required for the administration of the association and the other
provisions of this chapter and for the transaction of its business. The executive director may:
(i) reduce all or part of the accrued interest and fines
payable by an employing unit for reporting requirements under section 354.52,
based on an evaluation of any extenuating circumstances of the employing unit;
(ii) assign association employees to conduct field audits of an
employing unit to ensure compliance with the provisions of this chapter; and
(iii) recover overpayments, if not repaid to the association,
by suspending or reducing the payment of a retirement annuity, refund,
disability benefit, survivor benefit, or optional annuity under this chapter
until the overpayment, plus interest, has been recovered.
Sec. 5. Minnesota
Statutes 2002, section 354A.021, subdivision 7, is amended to read:
Subd. 7. [ACTUARIAL
CONSULTANT.] The board of trustees or directors of each teachers retirement
fund association may contract for the services of an approved actuary and fix
the reasonable compensation for those services. Any approved actuary retained by the board shall function as the
actuarial advisor to the board and may perform actuarial valuations
and experience studies to supplement those performed by the actuary retained by
the Legislative Commission on Pensions and Retirement under section
356.214. Any supplemental actuarial
valuations or experience studies shall must be filed with the
executive director of the Legislative Commission on Pensions and Retirement.
Sec. 6. [356.214]
[ACTUARIAL VALUATION PREPARATION; JOINT RETENTION OF CONSULTING ACTUARY.]
Subdivision 1.
[JOINT RETENTION.] (a) The chief administrative officers of the
Minnesota State Retirement System, the Public Employees Retirement Association,
the Teachers Retirement Association, the Duluth Teachers Retirement Fund
Association, the Minneapolis Teachers Retirement Fund Association, the
Minneapolis Employees Retirement Fund, and the St. Paul Teachers Retirement
Fund Association, jointly, on behalf of the state, its employees, its
taxpayers, and its various public pension plans, shall contract with an
established actuarial consulting firm to conduct annual actuarial valuations
and related services for the retirement plans named in paragraph (b). The principal from the actuarial consulting
firm on the contract must be an approved actuary under section 356.215,
subdivision 1, paragraph (c). Prior to
becoming effective, the contract under this section is subject to a review and
approval by the Legislative Commission on Pensions and Retirement.
(b) The contract for actuarial services must include the
preparation of actuarial valuations and related actuarial work for the
following retirement plans:
(1) the teachers retirement plan, Teachers Retirement
Association;
(2) the general state employees retirement plan, Minnesota
State Retirement System;
(3) the correctional employees retirement plan, Minnesota
State Retirement System;
(4) the State Patrol retirement plan, Minnesota State
Retirement System;
(5) the judges retirement plan, Minnesota State Retirement
System;
(6) the Minneapolis employees retirement plan, Minneapolis Employees
Retirement Fund;
(7) the public employees retirement plan, Public Employees
Retirement Association;
(8) the public employees police and fire plan, Public
Employees Retirement Association;
(9) the Duluth teachers retirement plan, Duluth Teachers
Retirement Fund Association;
(10) the Minneapolis teachers retirement plan, Minneapolis
Teachers Retirement Fund Association;
(11) the St. Paul teachers retirement plan, St. Paul
Teachers Retirement Fund Association;
(12) the legislators retirement plan, Minnesota State
Retirement System;
(13) the elective state officers retirement plan, Minnesota
State Retirement System; and
(14) local government correctional service retirement plan,
Public Employees Retirement Association.
(c) The contract must require completion of the annual
actuarial valuation calculations on a fiscal year basis, with the contents of
the actuarial valuation calculations as specified in section 356.215, and in
conformity with the standards for actuarial work adopted by the Legislative
Commission on Pensions and Retirement.
The contract must require completion of annual experience
data collection and processing and a quadrennial published experience study for
the plans listed in paragraph (b), clauses (1), (2), and (7), as provided for
in the standards for actuarial work adopted by the commission. The experience data collection, processing,
and analysis must evaluate the following:
(1) individual salary progression;
(2) the rate of return on investments based on the current
asset value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
The contract must include provisions for the preparation of
cost analyses by the jointly retained actuary for proposed legislation that
include changes in benefit provisions or funding policies prior to their
consideration by the Legislative Commission on Pensions and Retirement.
(d) The actuary retained by the joint retirement systems
shall annually prepare a report to the legislature, including a commentary on
the actuarial valuation calculations for the plans named in paragraph (b) and
summarizing the results of the actuarial valuation calculations. The actuary shall include with the report
the actuary's recommendations to the legislature concerning the appropriateness
of the support rates to achieve proper funding of the retirement plans by the
required funding dates. The actuary
shall, as part of the quadrennial experience study, include recommendations to
the legislature on the appropriateness of the actuarial valuation assumptions
required for evaluation in the study.
(e) If the actuarial gain and loss analysis in the actuarial
valuation calculations indicates a persistent pattern of sizable gains or losses,
as directed by the joint retirement systems or as requested by the chair of the
Legislative Commission on Pensions and Retirement, the actuary shall prepare a
special experience study for a plan listed in paragraph (b), clause (3), (4),
(5), (6), (8), (9), (10), (11), (12), (13), or (14), in the manner provided for
in the standards for actuarial work adopted by the commission.
(f) The term of the contract between the joint retirement
systems and the actuary retained may not exceed five years. The joint retirement system administrative
officers shall establish procedures for the consideration and selection of
contract bidders and the requirements for the contents of an actuarial services
contract under this section. The
procedures and requirements must be submitted to the Legislative Commission on
Pensions and Retirement for review and comment prior to final approval by the
joint administrators. The contract is
subject to the procurement procedures under chapter 16C. The consideration of bids and the selection
of a consulting actuarial firm by the chief administrative officers must occur
at a meeting that is open to the public and reasonable timely public notice of
the date and the time of the meeting and its subject matter must be given.
(g) The actuarial services contract may not limit the
ability of the Minnesota legislature and its standing committees and
commissions to rely on the actuarial results of the work prepared under the
contract.
(h) The joint retirement systems shall designate one of the
retirement system executive directors as the actuarial services contract
manager.
Subd. 2.
[ALLOCATION OF ACTUARIAL COSTS.] (a) The actuarial services contract
manager shall assess each retirement plan specified in subdivision 1, paragraph
(b), its appropriate portion of the total compensation paid to the actuary
retained by the joint retirement systems for the actuarial valuation
calculations and quadrennial experience studies. The total assessment is 100 percent of the amount of contract
compensation for the actuarial consulting firm for actuarial valuation
calculations, including any public employees police and fire plan consolidation
accounts of the Public Employees Retirement Association established after March
1, 1999, annual experience data collection and processing, and quadrennial
experience studies.
The portion of the total assessment payable by each
retirement system or pension plan must be determined based on each plan's
proportion of the actuarial services required, as determined by the retained
actuary, to complete the actuarial valuation calculations, annual experience
data collection and processing, and quadrennial experience studies for all
plans.
The assessment must be made within 30 days following the end
of the fiscal year and must be reported to the chief administrative officers of
the applicable retirement plans. The
amount of the assessment is appropriated from the retirement fund applicable to
the retirement plan.
(b) The actuarial services contract manager shall assess
each retirement plan or each interest group which requested the preparation of
a cost analysis for proposed legislation the cost of the actuary retained by
the joint retirement systems incurred in the cost analysis preparation. With respect to interest groups, the
actuarial services contract manager shall obtain a written commitment for the
payment of the assessment in advance of the cost analysis preparation and may
require an advance deposit or advance payment before authorizing the cost
analysis preparation. The retirement
plan or the interest group shall pay the assessment within 30 days of the date
on which the assessment is billed. The
amount of the assessment is appropriated from the retirement fund applicable to
the retirement plan for cost analyses requested by a retirement plan or system.
(c) The actuarial services contract manager shall assess to
the Legislative Commission on Pensions and Retirement the cost of the actuarial
cost analysis preparation for the proposed legislation requested by the chair
of the Legislative Commission on Pensions and Retirement or by the commission
executive director. The commission
shall pay the assessment within 30 days of the date on which the assessment is
billed.
Subd. 3.
[REPORTING TO THE COMMISSION.] A copy of the actuarial valuations,
experience studies, and actuarial cost analyses prepared by the actuary
retained by the joint retirement systems under the contract provided for in
this section must be filed with the executive director of the Legislative
Commission on Pensions and Retirement at the same time that the document is
transmitted to the actuarial services contract manager or to any other document
recipient.
Sec. 7. Minnesota
Statutes 2002, section 356.215, subdivision 2, is amended to read:
Subd. 2.
[REQUIREMENTS.] (a) It is the policy of the legislature that it is
necessary and appropriate to determine annually the financial status of tax
supported retirement and pension plans for public employees. To achieve this goal:
(1) the Legislative Commission on Pensions and Retirement
shall have prepared by the actuary retained by the commission under
section 356.214 shall prepare annual actuarial valuations of the retirement
plans enumerated in section 3.85 356.214, subdivision 11 1,
paragraph (b), and quadrennial experience studies of the retirement plans
enumerated in section 3.85 356.214, subdivision 11 1,
paragraph (b), clauses (1), (2), and (7); and
(2) the commissioner of finance may have prepared by the
actuary retained by the commission, two years after each set of quadrennial
experience studies, quadrennial projection valuations of at least one of the
retirement plans enumerated in section 3.85 356.214, subdivision 11
1, paragraph (b), for which the commissioner determines that the
analysis may be beneficial.
(b) The governing or managing board or administrative officials
of each public pension and retirement fund or plan enumerated in section
356.20, subdivision 2, clauses (9), (10), and (12), shall have prepared by an
approved actuary annual actuarial valuations of their respective funds as
provided in this section. This
requirement also applies to any fund or plan that is the successor to any
organization enumerated in section 356.20, subdivision 2, or to the governing
or managing board or administrative officials of any newly formed retirement
fund, plan, or association operating under the control or supervision of any
public employee group, governmental unit, or institution receiving a portion of
its support through legislative appropriations, and any local police or fire
fund to which section 356.216 applies.
Sec. 8. Minnesota
Statutes 2002, section 356.215, subdivision 18, is amended to read:
Subd. 18.
[ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) The actuarial assumptions
used for the preparation of actuarial valuations under this section that are
other than those set forth in this section may be changed only with the
approval of the Legislative Commission on Pensions and Retirement.
(b) A change in the applicable actuarial assumptions may be
proposed by the governing board of the applicable pension fund or relief
association, by the actuary retained by the Legislative Commission on
Pensions and Retirement joint retirement systems under section 356.214,
by the actuarial advisor to a pension fund governed by chapter 352, 353, 354,
or 354A, or by the actuary retained by a local police or firefighters relief
association governed by sections 69.77 or 69.771 to 69.776, if one is retained.
Sec. 9. Minnesota
Statutes 2002, section 422A.06, subdivision 2, is amended to read:
Subd. 2. [ACTUARIAL
VALUATION REQUIRED.] As of July 1 of each year, an actuarial valuation of the
retirement fund shall be prepared by the commission-retained actuary retained
by the joint retirement systems under section 356.214 and filed in
conformance with the provisions and requirements of sections 356.215 to
356.23. Experience studies shall be
prepared at those times required by statute, required by the standards for
actuarial work adopted by the Legislative Commission on Pensions and Retirement
or ordered by the board.
The board may contract for the services of an approved actuary
and fix the reasonable compensation for those services. Any approved actuary retained by the board
shall function as the actuarial advisor to the board and may perform actuarial
valuations and experience studies to supplement those performed by the actuary
retained by the Legislative Commission on Pensions and Retirement joint
retirement systems under section 356.214. Any supplemental actuarial
valuations or experience studies shall must be filed with the
executive director of the Legislative Commission on Pensions and Retirement.
Sec. 10. [REPEALER.]
Minnesota Statutes 2002, sections 3.85, subdivisions 11 and
12; and 356.217, are repealed.
Sec. 11. [EFFECTIVE
DATE.]
Sections 1 to 10 are effective the day following final
enactment."
Delete the title and insert:
"A bill for an act relating to retirement; various
retirement plans; modifying the responsibilities to provide actuarial
valuations and proposed legislative cost estimates; amending Minnesota Statutes
2002, sections 352.03, subdivision 6; 352B.02, subdivision 1e; 353.03,
subdivision 3a; 354.06, subdivision 2a; 354A.021, subdivision 7; 356.215,
subdivisions 2, 18; 422A.06, subdivision 2; proposing coding for new law in
Minnesota Statutes, chapter 356; repealing Minnesota Statutes 2002, sections
3.85, subdivisions 11, 12; 356.217."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Ways and Means.
The report was adopted.
Westrom from the Committee on Regulated Industries to which was
referred:
H. F. No. 979, A bill for an act relating to
telecommunications; modifying provisions for alternative forms of regulation of
telephone companies; amending Minnesota Statutes 2002, sections 237.072;
237.774; Laws 1995, chapter 156, section 25; proposing coding for new law in
Minnesota Statutes, chapter 237; repealing Minnesota Statutes 2002, section
237.773; Laws 1995, chapter 156, section 22.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2002, section 237.766, is amended to read:
237.766 [PLAN DURATION AND EXTENSION.]
Subdivision 1.
[PLAN DURATION.] An alternative regulation plan approved by the
commission under section 237.764 must remain in force as approved for the term
specified in the plan, which must be for no less than three years. Within six months prior to the termination
of the plan, the plan must be reviewed by the commission and, with the
consent of the company, revised or renewed consistent with sections 237.76 to
237.774, except that the justification of earnings levels in section 237.764,
subdivision 1, paragraph (c), if required and the provisions prohibiting rate
increases at the initiation of or during the first three years of a plan
contained in section 237.762, shall not apply to a revised or renewed plan. Any revised or renewed plan must be approved
by the commission and shall contain a mechanism under which a telephone company
may reduce the rates for price-regulated services below the initial rates or
prices or increase the rates or prices during the term of the revised or
renewed plan. The plan must specify the
reports required of the telephone company for review of the plan and specify
that the telephone company shall maintain records in sufficient detail to
facilitate the review the company shall give notice that it will propose
a new plan, extend an existing plan, or revert to rate of return regulation.
Subd. 2. [NEW
PLAN.] A new plan proposed by a company must be reviewed by the commission
and, with the consent of the company, revised or renewed consistent with
sections 237.76 to 237.774, except that the justification of earnings levels in
section 237.764, subdivision 1, paragraph (c), if required, and the provisions
prohibiting rate increases at the initiation of or during the first three years
of a plan contained in section 237.762, do not apply to a revised or renewed
plan. Any new plan must be approved by
the commission and contain a mechanism under which a telephone company may
reduce the rates for price-regulated services below the initial rates or prices
or increase the rates or prices during the term of the plan. The plan must specify the reports required
of the telephone company for review of the plan and specify that the telephone
company shall maintain records in sufficient detail to facilitate the
review. The renewal of a new plan is
not an extension, which must be made pursuant to subdivision 3.
Subd. 3. [PLAN EXTENSION.] (a) Notwithstanding the provisions of its
plan, a telephone company operating under a plan as of December 1, 2003, may elect
to extend that plan or, if the plan has expired, reinstate that plan and extend
it, for a period of up to three years from the expiration date of the plan or
until December 31, 2007, whichever is earlier.
The election is effective upon notification to the commission, the
department, and the Office of the Attorney General. A telephone company shall provide notification of its election
within 30 days of the effective date of this section, or within six months of
the expiration of its current or expired plan, whichever is later. Once a telephone company has elected to
exercise the option provided under this section, the company may elect at any
time to terminate the plan by notifying the commission, the department, and the
Office of the Attorney General, in writing, six months prior to the termination
date. Upon termination of a plan, the
company shall be regulated as provided in this chapter.
(b) A telephone company may elect to extend a plan entered
into after the effective date of this section in lieu of proposing a new plan
if the company is in substantial compliance with the plan's service quality
provisions and has met its infrastructure obligations under the plan. The extension must be made in accordance
with procedures and conditions provided for in the plan. If the company elects to extend its existing
plan, the rates for price-regulated services must be capped at the rate levels
in effect at the time the extension commences, unless otherwise specified in
the plan. All other provisions of the
plan must continue in effect throughout the extension period. A plan may not be extended for less than one
year or more than three years, and may only be extended once.
A company electing to extend its existing plan shall notify
the commission and its customers of its intention to extend the plan six months
prior to the plan's expiration date.
(c) The Department of Commerce or the Office of the Attorney
General may file an objection to the extension with the commission if the
company is not in substantial compliance with the service quality provisions of
its plan or has not met its infrastructure obligations under the plan. Any such objection must be filed within 45
days of the company's notice of its intention to extend the plan.
(d) If an objection is filed by the Department of Commerce
or the Office of the Attorney General, the commission may hold a hearing on the
issues raised in the objection. Any
such hearings must be completed within 30 days of the deadline for filing the
objections. If the commission finds
that the issues raised in the objection are valid, it may reject the
extension. If the commission finds that
the issues raised in the objection are not valid, it shall approve the
extension. The commission shall issue
its decision within 15 days of the completion of any hearings held in response
to an objection.
(e) If the Department of Commerce or the Office of the
Attorney General does not file an objection, the commission shall approve the
extension within 60 days of the company's filing of its notice of its intention
to extend the plan.
Sec. 2. Minnesota
Statutes 2002, section 237.773, subdivision 3, is amended to read:
Subd. 3. [LOCAL RATE.]
(a) Except as provided in paragraph (b), a small telephone company shall not implement
a rate increase for any service listed in section 237.761, subdivision 3,
beyond the level in effect 60 days prior to an election under subdivision 2,
until the later of January 1, 1998, or two years after making an election. However, a small telephone company may
implement any new service and establish rates for any new service and may
change rates for any other service at any time subject to the requirements of
section 237.761, subdivision 4. A small
company shall provide to its customers the ability to block, at no extra
charge, any new service which it offers, provides, or bills. This requirement shall not apply to services
that require affirmative subscription by the customer. Nothing in this section shall prevent the
commission from requiring blocking or other privacy or safety protections for
other types of telecommunications services under section 237.081.
(b) At any time following one year after
electing under subdivision 2, a small telephone company may change rates for
local services except switched network access services, listed in section
237.761, subdivision 3, to reflect:
(1) changes in state and federal taxes;
(2) changes in jurisdictional allocations from the Federal
Communications Commission, the amount of which the small telephone company
cannot control and for which equal and opposite exogenous changes are made on
the federal level;
(3) substantial financial impacts of investments in network
upgrades which are made; or
(i) if the investment exceeds 20 percent of the gross plant
investment of the company; or
(ii) as the result of government mandates to construct specific
telephone infrastructure, if the mandate applies to local telephone companies
and the company would not otherwise be compensated.
A small telephone company
may change rates for local services listed in section 237.761, subdivision 3,
at any time, to implement extended area service or any successor to that
service on an income-neutral basis.
A small telephone company
proposing an increase under this subdivision shall provide 60 days' advance
written notice to the department and each of the company's customers including
the individual rates affected and the procedure necessary for the customers to
petition for investigation. If the
department receives a petition within 45 days after the notice from five
percent or 500, whichever is fewer, of the customers of the small telephone
company, the department and the company shall jointly determine
if the petition is valid and, if so, may investigate the rate change to
determine if it conforms to the limitations of this subdivision. Within 30 days of validating the
petition, the department shall report its findings to the commission, which
shall either adopt the report or order changes to conform to this subdivision.
(c) On or after the later of January 1998, or two years after
making an election under subdivision 2, a small telephone company may increase
rates for local services, except switched network access services, listed in
section 237.761, subdivision 3. A small
telephone company proposing an increase shall provide 60 days' advance written
notice to its customers including individual rates affected and the procedure
necessary for the customers to petition for investigation. If the commission receives a petition within
45 days after such notice, from five percent or 500, whichever is fewer, of the
customers of the small telephone company, the department and the company
shall jointly determine if the petition is valid and, if so, may
investigate the proposed rate increase to determine if it is appropriate in
light of rates charged by other local exchange telephone companies for
comparable services, taking into account calling scope, quality of service, the
availability of competitive alternatives, service costs, and the features
available to the customers. Within
30 days of validating the petition, the department shall file a report with
the commission which shall then approve appropriate rates for those
services. Rates established by the
commission under this paragraph shall not be increased within one year of
implementation.
Sec. 3. [EFFECTIVE
DATE.]
Sections 1 and 2 are effective the day following final
enactment."
Delete the title and insert:
"A bill for an act relating to telecommunications;
modifying provisions for alternative forms of regulation of telephone
companies; amending Minnesota Statutes 2002, sections 237.766; 237.773,
subdivision 3."
With the recommendation that when so amended the bill pass.
The report was adopted.
Erhardt from the Committee on
Transportation Policy to which was referred:
H. F. No. 985, A bill for an act relating to traffic
regulations; increasing maximum gross weight for certain vehicles and
combinations on noninterstate trunk highways; amending Minnesota Statutes 2002,
section 169.824, subdivision 2.
Reported the same back with the following amendments:
Page 1, line 18, after "axles" insert "while
exclusively engaged in hauling livestock"
Page 1, line 19, after "highways" insert
", if the vehicle has a permit under section 169.86, subdivision 5,
paragraph (j)"
Page 2, after line 9, insert:
"Sec. 2. Minnesota
Statutes 2003 Supplement, section 169.86, subdivision 5, is amended to read:
Subd. 5. [FEE; PROCEEDS
TO TRUNK HIGHWAY FUND.] The commissioner, with respect to highways under the
commissioner's jurisdiction, may charge a fee for each permit issued. All such fees for permits issued by the
commissioner of transportation shall be deposited in the state treasury and
credited to the trunk highway fund.
Except for those annual permits for which the permit fees are specified
elsewhere in this chapter, the fees shall be:
(a) $15 for each single trip permit.
(b) $36 for each job permit.
A job permit may be issued for like loads carried on a specific route
for a period not to exceed two months.
"Like loads" means loads of the same product, weight, and
dimension.
(c) $60 for an annual permit to be issued for a period not to
exceed 12 consecutive months. Annual
permits may be issued for:
(1) motor vehicles used to alleviate a temporary crisis
adversely affecting the safety or well-being of the public;
(2) motor vehicles which travel on interstate highways and
carry loads authorized under subdivision 1a;
(3) motor vehicles operating with gross weights authorized
under section 169.826, subdivision 1a;
(4) special pulpwood vehicles described in section 169.863;
(5) motor vehicles bearing snowplow blades not exceeding ten
feet in width; and
(6) noncommercial transportation of a boat by the owner or user
of the boat.
(d) $120 for an oversize annual permit to be issued for a
period not to exceed 12 consecutive months.
Annual permits may be issued for:
(1) mobile cranes;
(2) construction equipment, machinery, and supplies;
(3) manufactured homes;
(4) implements of husbandry when the movement is not made
according to the provisions of paragraph (i);
(5) double-deck buses;
(6) commercial boat hauling.
(e) For vehicles which have axle weights exceeding the weight
limitations of sections 169.822 to 169.829, an additional cost added to the
fees listed above. However, this
paragraph applies to any vehicle described in section 168.013, subdivision 3,
paragraph (b), but only when the vehicle exceeds its gross weight allowance set
forth in that paragraph, and then the additional cost is for all weight,
including the allowance weight, in excess of the permitted maximum axle
weight. The additional cost is equal to
the product of the distance traveled times the sum of the overweight axle group
cost factors shown in the following chart:
Overweight Axle Group Cost Factors
Cost Per Mile For Each Group Of:
Weight (pounds)
exceeding Two consecutive Three consecutive Four consecutive
weight limitations axles spaced within axles spaced within axles spaced within
on
axles 8 feet or
less 9 feet or less 14
feet or less
0-2,000
.12
.05
.04
2,001-4,000 .14
.06
.05
4,001-6,000 .18
.07
.06
6,001-8,000 .21
.09
.07
8,001-10,000 .26
.10
.08
10,001-12,000 .30
.12
.09
12,001-14,000 Not permitted
.14
.11
14,001-16,000 Not permitted
.17
.12
16,001-18,000 Not permitted
.19
.15
18,001-20,000 Not permitted
Not permitted
.16
20,001-22,000 Not permitted
Not permitted
.20
The amounts added are
rounded to the nearest cent for each axle or axle group. The additional cost does not apply to
paragraph (c), clauses (1) and (3).
For a vehicle found to
exceed the appropriate maximum permitted weight, a cost-per-mile fee of 22
cents per ton, or fraction of a ton, over the permitted maximum weight is
imposed in addition to the normal permit fee.
Miles must be calculated based on the distance already traveled in the
state plus the distance from the point of detection to a transportation loading
site or unloading site within the state or to the point of exit from the state.
(f) As an alternative to paragraph (e), an annual permit may be
issued for overweight, or oversize and overweight, construction equipment,
machinery, and supplies. The fees for
the permit are as follows:
Gross Weight (pounds) of Vehicle Annual
Permit Fee
90,000 or less
$200
90,001 - 100,000
$300
100,001 - 110,000
$400
110,001 - 120,000
$500
120,001 - 130,000 $600
130,001 - 140,000
$700
140,001 - 145,000
$800
If the gross weight of the
vehicle is more than 145,000 pounds the permit fee is determined under
paragraph (e).
(g) For vehicles which exceed the width limitations set forth
in section 169.80 by more than 72 inches, an additional cost equal to $120
added to the amount in paragraph (a) when the permit is issued while seasonal
load restrictions pursuant to section 169.87 are in effect.
(h) $85 for an annual permit to be issued for a period not to
exceed 12 months, for refuse-compactor vehicles that carry a gross weight of
not more than: 22,000 pounds on a
single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section
169.828, subdivision 2, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds on a
tridem rear axle must limit the gross vehicle weight to not more than 62,000
pounds.
(i) For vehicles exclusively transporting implements of
husbandry, an annual permit fee of $24.
A vehicle operated under a permit authorized by this paragraph may be
moved at the discretion of the permit holder without prior route approval by
the commissioner if:
(1) the total width of the transporting vehicle, including
load, does not exceed 14 feet;
(2) the vehicle is operated only between sunrise and 30 minutes
after sunset, and is not operated at any time after 12:00 noon on Sundays or
holidays;
(3) the vehicle is not operated when visibility is impaired by
weather, fog, or other conditions that render persons and other vehicles not
clearly visible at 500 feet;
(4) the vehicle displays at the front and rear of the load or
vehicle a pair of flashing amber lights, as provided in section 169.59,
subdivision 4, whenever the overall width of the vehicle exceeds 126 inches;
and
(5) the vehicle is not operated on a trunk highway with a
surfaced roadway width of less than 24 feet unless such operation is authorized
by the permit.
A permit under this
paragraph authorizes movements of the permitted vehicle on an interstate
highway, and movements of 75 miles or more on other highways.
(j) $200 for an annual permit for a vehicle operating under
authority of section 169.824, subdivision 2, paragraph (a), clause (2).
Sec. 3. [NOT TO AFFECT
BRIDGE POSTINGS.]
Nothing in this act authorizes operation of any vehicle on
any bridge in violation of gross weight limitations lawfully posted for that
bridge."
Amend the title as follows:
Page 1, line 5, before the period, insert "; Minnesota
Statutes 2003 Supplement, section 169.86, subdivision 5"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Transportation Finance.
The report was adopted.
Rhodes from the Committee on Governmental Operations and
Veterans Affairs Policy to which was referred:
H. F. No. 1086, A bill for an act relating to retirement;
modifying military service credit purchase provisions in the teachers
retirement association and first class city teacher plans; providing for
compliance with certain provisions of the Internal Revenue Code related to all
retirement plans; making other clarifying and technical changes; amending
Minnesota Statutes 2002, sections 354.42, subdivision 7; 354.53; 354.533,
subdivision 1; 354A.093; 354A.097, subdivision 1; 356.611, subdivision 2, by
adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 356.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE
1
MEMBERSHIP
ISSUES
Section 1. Minnesota
Statutes 2002, section 353.01, subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED
EMPLOYEES.] The following public employees are not eligible to participate as
members of the association with retirement coverage by the public employees retirement
plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire retirement plan:
(1) public officers, other than county sheriffs, who are
elected to a governing body, or persons who are appointed to fill a vacancy in
an elective office of a governing body, whose term of office first
commences on or after July 1, 2002, for the service to be rendered in
that elective position. Elected
governing body officials who were active members of the association's
coordinated or basic retirement plans as of June 30, 2002, continue
participation throughout incumbency in office until termination of public
service occurs as defined in subdivision 11a;
(2) election officers or election judges;
(3) patient and inmate personnel who perform services for a
governmental subdivision;
(4) except as otherwise specified in subdivision 12a,
employees who are hired for a temporary position as defined under
subdivision 12a, and employees who resign from a nontemporary position and
accept a temporary position within 30 days in the same governmental subdivision.;
An employer must not apply the definition of temporary position so as to
exclude employees who are hired to fill positions that are permanent or that
are for an unspecified period but who are serving a probationary period at the
start of the employment. If the period
of employment extends beyond six consecutive months and the employee earns more
than $425 from one governmental subdivision in any calendar month, the
department head shall report the employee for membership and require employee
deductions be made on behalf of the employee under section 353.27, subdivision
4.
The membership eligibility of an employee who resigns or is
dismissed from a temporary position and within 30 days accepts another
temporary position in the same governmental subdivision is determined on the
total length of employment rather than on each separate position. Membership eligibility of an employee who
holds concurrent temporary and nontemporary positions in one governmental
subdivision is determined by the length of employment and salary of each
separate position;
(5) employees who are employed by reason of work emergency
caused by fire, flood, storm, or similar disaster;
(6) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of and to
contribute to any of the plans or funds administered by the Minnesota State
Retirement System, the Teachers Retirement Association, the Duluth Teachers
Retirement Fund Association, the Minneapolis Teachers Retirement Fund
Association, the St. Paul Teachers Retirement Fund Association, the Minneapolis
Employees Retirement Fund, or any police or firefighters relief association
governed by section 69.77 that has not consolidated with the Public Employees
Retirement Association, or any local police or firefighters consolidation
account but who have not elected the type of benefit coverage provided
by the public employees police and fire fund under sections 353A.01 to 353A.10,
or any persons covered by section 353.665, subdivision 4, 5, or 6, who have not
elected public employees police and fire plan benefit coverage. This clause must not be construed to prevent
a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public
pension plan or fund for other service occurring during the same period
of time. A person who meets the
definition of "public employee" in subdivision 2 by virtue of other
service occurring during the same period of time becomes a member of the
association unless contributions are made to another public retirement fund on
the salary based on the other service or to the Teachers Retirement Association
by a teacher as defined in section 354.05, subdivision 2;
(7) persons who are members of a religious order and are
excluded from coverage under the federal Old Age, Survivors, Disability, and
Health Insurance Program for the performance of service as specified in United
States Code, title 42, section 410(a)(8)(A), as amended through January 1,
1987, if no irrevocable election of coverage has been made under section
3121(r) of the Internal Revenue Code of 1954, as amended;
(8) employees of a governmental subdivision who have not
reached the age of 23 and are enrolled on a full-time basis to attend or are
attending classes on a full-time basis at an accredited school, college, or
university in an undergraduate, graduate, or professional-technical program, or
a public or charter high school;
(9) resident physicians, medical interns, and pharmacist
residents and pharmacist interns who are serving in a degree or residency
program in public hospitals;
(10) students who are serving in an internship or residency
program sponsored by an accredited educational institution;
(11) persons who hold a part-time adult supplementary technical
college license who render part-time teaching service in a technical college;
(12) except for employees of Hennepin County, foreign citizens
working for a governmental subdivision with a work permit of less than three
years, or an H-1b visa valid for less than three years of employment. Upon notice to the association that the work
permit or visa extends beyond the three-year period, the foreign citizens are
to must be reported for membership from the date of the extension;
(13) public hospital employees who elected not to participate
as members of the association before 1972 and who did not elect to participate
from July 1, 1988, to October 1, 1988;
(14) except as provided in section 353.86, volunteer ambulance
service personnel, as defined in subdivision 35, but persons who serve as
volunteer ambulance service personnel may still qualify as public employees
under subdivision 2 and may be members of the Public Employees Retirement
Association and participants in the public employees retirement fund or the
public employees police and fire fund, whichever applies, on the basis of
compensation received from public employment service other than service as
volunteer ambulance service personnel;
(15) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in activities undertaken
as part of volunteer firefighter duties; provided that a person who is a
volunteer firefighter may still qualify as a public employee under subdivision
2 and may be a member of the Public Employees Retirement Association and a participant
in the public employees retirement fund or the public employees police and fire
fund, whichever applies, on the basis of compensation received from public
employment activities other than those as a volunteer firefighter;
(16) pipefitters and associated trades personnel employed by
Independent School District No. 625, St. Paul, with coverage under a collective
bargaining agreement by the pipefitters local 455 pension plan who were either
first employed after May 1, 1997, or, if first employed before May 2, 1997,
elected to be excluded under Laws 1997, chapter 241, article 2, section 12;
(17) electrical workers, plumbers, carpenters, and associated
trades personnel employed by Independent School District No. 625, St. Paul, or
the city of St. Paul, who have retirement coverage under a collective
bargaining agreement by the Electrical Workers Local 110 pension plan, the
United Association Plumbers Local 34 pension plan, or the Carpenters Local 87
pension plan who were either first employed after May 1, 2000, or, if first
employed before May 2, 2000, elected to be excluded under Laws 2000, chapter
461, article 7, section 5;
(18) bricklayers, allied craftworkers, cement masons, glaziers,
glassworkers, painters, allied tradesworkers, and plasterers employed by the
city of St. Paul or Independent School District No. 625, St. Paul, with
coverage under a collective bargaining agreement by the Bricklayers and Allied
Craftworkers Local 1 pension plan, the Cement Masons Local 633 pension plan,
the Glaziers and Glassworkers Local L-1324 pension plan, the Painters and
Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265
pension plan who were either first employed after May 1, 2001, or if first
employed before May 2, 2001, elected to be excluded under Laws 2001, First
Special Session chapter 10, article 10, section 6;
(19) plumbers employed by the metropolitan airports commission,
with coverage under a collective bargaining agreement by the Plumbers Local 34
pension plan, who either were first employed after May 1, 2001, or if first
employed before May 2, 2001, elected to be excluded under Laws 2001, First
Special Session chapter 10, article 10, section 6;
(20) employees who are hired after June 30, 2002, to fill
seasonal positions under subdivision 12b which are limited in duration by the
employer to 185 consecutive calendar days or less in each year of employment
with the governmental subdivision;
(21) persons who are provided supported employment or
work-study positions by a governmental subdivision and who participate in an
employment or industries program maintained for the benefit of these persons
where the governmental subdivision limits the position's duration to three
years or less, including persons participating in a federal or state subsidized
on-the-job training, work experience, senior citizen, youth, or unemployment
relief program where the training or work experience is not provided as a part
of, or for, future permanent public employment;
(22) independent contractors and the employees of independent
contractors; and
(23) reemployed annuitants of the association during the course
of that reemployment.
Sec. 2. Minnesota
Statutes 2002, section 353.01, subdivision 12a, is amended to read:
Subd. 12a. [TEMPORARY
POSITION.] (1) (a) "Temporary position" means an
employment position predetermined by the employer at the time of hiring to be a
period of six months or less. Temporary
position also means an employment position occupied by a person hired by the
employer as a temporary replacement who is employed for a predetermined period
of six months or less.
(2) (b) "Temporary
position" does not mean an employment position for a specified or
unspecified term in which a person serves a probationary period as a
requirement for subsequent employment on a permanent or unlimited basis.
(c) If employment in a temporary position extends beyond six
consecutive months, the head of the department shall report the employee for
membership if salary in any month exceeds the salary threshold specified in
subdivision 2a. The membership
eligibility of an employee who resigns or is dismissed from a temporary
position and accepts another temporary position in the same governmental
subdivision within 30 days is determined on the total length of employment
rather than on each separate position.
Sec. 3. Minnesota
Statutes 2002, section 353.01, subdivision 12b, is amended to read:
Subd. 12b. [SEASONAL
POSITION.] "Seasonal position" means a position where the nature of
the work or its duration are related to a specific season or seasons of the
year, regardless of whether or not the employing agency anticipates that the
same employee will return to the position each season in which it becomes
available. The entire period of employment
in a business year must be used to determine whether or not a position
may be excluded as seasonal when there is less than a 30-day break between one
seasonal position and a subsequent seasonal position for employment with the
same governmental employer. Seasonal
positions include, but are not limited to, coaching athletic activities or
employment to plow snow or to maintain roads or parks, or to operate skating
rinks, ski lodges, golf courses, or swimming pools.
Sec. 4. Minnesota
Statutes 2002, section 354.05, subdivision 2, is amended to read:
Subd. 2. [TEACHER.] (a)
"Teacher" means:
(1) a person who renders service as a teacher, supervisor,
principal, superintendent, librarian, nurse, counselor, social worker,
therapist, or psychologist in a public school of the state located outside of
the corporate limits of a city of the first class, or in any charter school,
irrespective of the location of the school, or in any charitable, penal, or
correctional institutions of a governmental subdivision, or who is engaged in
educational administration in connection with the state public school system,
but excluding the University of Minnesota, whether the position be a public
office or an employment, not including the members or officers of any
general governing or managing board or body;
(2) an employee of the teachers retirement association;
(3) a person who renders teaching service on a part-time basis
and who also renders other services for a single employing unit. A person whose teaching service comprises at
least 50 percent of the combined employment salary is a member of the
association for all services with the single employing unit. If the person's teaching service comprises
less than 50 percent of the combined employment salary, the executive director
must determine whether all or none of the combined service is covered by the
association; or
(4) a person who is not covered by the plans established under
chapter 352D, 354A, or 354B and who is employed by the Board of Trustees of the
Minnesota State Colleges and Universities system in an unclassified position
as:
(i) a president, vice-president, or dean;
(ii) a manager or a professional in an academic or an academic
support program other than specified in item (i);
(iii) an administrative or a service support faculty position;
or
(iv) a teacher or a research assistant.
(b) "Teacher" does not mean:
(1) a person who works for a school or institution as an
independent contractor as defined by the Internal Revenue Service;
(2) a person employed in subsidized on-the-job training,
work experience or public service employment as an enrollee under the federal
Comprehensive Employment and Training Act from and after March 30, 1978, unless
the person has, as of the later of March 30, 1978, or the date of employment, sufficient
service credit in the retirement association to meet the minimum vesting
requirements for a deferred retirement annuity, or the employer agrees in
writing on forms prescribed by the executive director to make the required
employer contributions, including any employer additional contributions, on
account of that person from revenue sources other than funds provided under the
federal Comprehensive Training and Employment Act, or the person agrees in
writing on forms prescribed by the executive director to make the required
employer contribution in addition to the required employee contribution;
(3) a person holding a part-time adult supplementary
technical college license who renders part-time teaching service or a
customized trainer as defined by the Minnesota State Colleges and Universities
system in a technical college if (i) the service is incidental to the
regular nonteaching occupation of the person; and (ii) the applicable
technical college employer stipulates annually in advance that the
part-time teaching service or customized training service will not exceed 300
hours in a fiscal year and retains the stipulation in its records; and (iii)
the part-time teaching service or customized training service actually does not
exceed 300 hours in a fiscal year; or
(4) (3) a person exempt from licensure under
section 122A.30.
Sec. 5. Minnesota
Statutes 2002, section 354B.20, subdivision 4, is amended to read:
Subd. 4. [COVERED
EMPLOYMENT.] (a) "Covered employment" means employment by a person
eligible for coverage by this retirement program under section 354B.21 in a
faculty position or in an eligible unclassified administrative position.
(b) "Covered employment" does not mean employment
specified in paragraph (a) by a faculty member employed in a state
university or a community college the Minnesota State Colleges and
Universities system if the person's initial appointment is specified as
constituting less than 25 percent of a full academic year, exclusive of summer
session, for the applicable institution.
Sec. 6. Minnesota
Statutes 2002, section 354B.20, subdivision 6, is amended to read:
Subd. 6. [ELIGIBLE
UNCLASSIFIED ADMINISTRATIVE POSITION.] "Eligible unclassified
administrative position" means the following:
(1) the chancellor of the board;
(2) a president of a state college or university; or
(3) an excluded administrator employed in a state
university or college, by the board, or by the higher education services office;
or
(4) other managers and professionals in academic and
academic support programs in the unclassified service employed in a state
university or college, by the board, or by the higher education services office.
Sec. 7.
Minnesota Statutes 2002, section 354C.11, subdivision 2, is amended to
read:
Subd. 2. [ELIGIBILITY.]
(a) An individual must participate in the supplemental retirement plan if the
individual is employed by the board of trustees in the unclassified service of
the state and has completed at least two years with a full-time contract of
applicable unclassified employment with the board or an applicable predecessor
board in any of the positions specified in paragraph (b).
(b) Eligible positions or employment classifications are:
(1) an unclassified administrative position as defined in
section 354B.20, subdivision 6;
(2) an employment classification included in one of the
following collective bargaining units under section 179A.10, subdivision 2:
(i) the state university instructional unit;
(ii) the state college instructional unit; and
(iii) the state university administrative unit; or
(3) an unclassified employee of the board:
(i) included in the general professional unit or
supervisory employees unit under section 179A.10, subdivision 2; or
(ii) excluded from those units due to the employee's
confidential status under section 179A.10, subdivision 1, clause (8).
Sec. 8. [REPEALER.]
Minnesota Statutes 2002, section 352D.02, subdivision 5, is
repealed.
Sec. 9. [EFFECTIVE
DATE.]
(a) Sections 1 to 5 and 8 are effective on July 1, 2004.
(b) Section 6 is effective on July 1, 2004, and applies
retroactively to the date of hire of the applicable person in the affected
position.
(c) Section 7 is effective retroactively to July 1, 2001.
ARTICLE
2
COVERED
SALARY DEFINITION
Section 1. Minnesota
Statutes 2002, section 352.01, subdivision 13, is amended to read:
Subd. 13. [SALARY.] (a)
"Salary" means wages, or other periodic compensation, paid to an
employee before deductions for deferred compensation, supplemental retirement
plans, or other voluntary salary reduction programs.
(b) "Salary" does not include:
(1) lump sum sick leave payments,;
(2) severance payments,;
(3) lump sum annual leave payments and overtime payments
made at the time of separation from state service,;
(4) payments in lieu of any employer-paid group
insurance coverage, including the difference between single and family rates
that may be paid to an employee with single coverage, and;
(5) payments made as an employer-paid fringe benefit,;
(6) workers' compensation payments,;
(7) employer contributions to a deferred compensation or
tax sheltered annuity program,; and
(8) amounts contributed under a benevolent vacation and
sick leave donation program are not salary.
(c) Amounts provided to an employee by the employer through
a grievance proceeding or a legal settlement are salary only if the settlement
is reviewed by the executive director and the amounts are determined by the
executive director to be consistent with paragraph (a) and prior
determinations.
Sec. 2. Minnesota
Statutes 2002, section 352B.01, subdivision 11, is amended to read:
Subd. 11. [AVERAGE
MONTHLY SALARY.] (a) "Average monthly salary" means the
average of the highest monthly salaries for five years of service as a member upon
which contributions were deducted from pay under section 352B.02, or upon which
appropriate contributions or payments were made to the fund to receive
allowable service and salary credit as specified under the applicable law. Average monthly salary must be based upon
all allowable service if this service is less than five years. It
(b) "Average monthly salary" means the salary of
the member as defined in section 352.01, subdivision 13. "Average monthly salary" does
not include any lump-sum annual leave payments and overtime payments made at
the time of separation from state service, any amounts of severance pay, or any
reduced salary paid during the period the person is entitled to workers'
compensation benefit payments for temporary disability.
(c) A member on leave of absence receiving temporary
workers' compensation payments and a reduced salary or no salary from the
employer who is entitled to allowable service credit for the period of absence
may make payment to the fund for the difference between salary received, if
any, and the salary the member would normally receive if not on leave of
absence during the period. The member
shall pay an amount equal to the member and employer contribution rate under
section 352B.02, subdivisions 1b and 1c, on the differential salary amount for
the period of the leave of absence. The
employing department, at its option, may pay the employer amount on behalf of
the member. Payment made under this
subdivision must include interest at the rate of 8.5 percent per year, and must
be completed within one year of the return from the leave of absence.
Sec. 3. Minnesota
Statutes 2002, section 353.01, subdivision 10, is amended to read:
Subd. 10. [SALARY.] (a)
"Salary" means:
(1) periodic compensation of a public employee, before
deductions for deferred compensation, supplemental retirement plans, or other
voluntary salary reduction programs, and also means "wages" and
includes net income from fees; and
(2) for a public employee who has prior
service covered by a local police or firefighters relief association that has
consolidated with the Public Employees Retirement Association or to which
section 353.665 applies and who has elected coverage either under the public
employees police and fire fund benefit plan under section 353A.08 following the
consolidation or under section 353.665, subdivision 4, "salary" means
the rate of salary upon which member contributions to the special fund of the
relief association were made prior to the effective date of the consolidation
as specified by law and by bylaw provisions governing the relief association on
the date of the initiation of the consolidation procedure and the actual
periodic compensation of the public employee after the effective date of
consolidation.
(b) Salary does not mean:
(1) fees paid to district court reporters, unused annual
vacation or sick leave payments, in lump-sum or periodic payments, severance
payments, reimbursement of expenses, lump-sum settlements not attached to a
specific earnings period, or workers' compensation payments;
(2) employer-paid amounts used by an employee toward the cost
of insurance coverage, employer-paid fringe benefits, flexible spending
accounts, cafeteria plans, health care expense accounts, day care expenses, or
any payments in lieu of any employer-paid group insurance coverage, including
the difference between single and family rates that may be paid to a member
with single coverage and certain amounts determined by the executive director
to be ineligible;
(3) the amount equal to that which the employing governmental
subdivision would otherwise pay toward single or family insurance coverage for
a covered employee when, through a contract or agreement with some but not all
employees, the employer:
(i) discontinues, or for new hires does not provide, payment
toward the cost of the employee's selected insurance coverages under a group
plan offered by the employer;
(ii) makes the employee solely responsible for all
contributions toward the cost of the employee's selected insurance coverages
under a group plan offered by the employer, including any amount the employer
makes toward other employees' selected insurance coverages under a group plan
offered by the employer; and
(iii) provides increased salary rates for employees who do not
have any employer-paid group insurance coverages; and
(4) except as provided in section 353.86 or 353.87,
compensation of any kind paid to volunteer ambulance service personnel or
volunteer firefighters, as defined in subdivision 35 or 36; and
(5) compensation that exceeds the limitation provided in
section 356.611.
(c) Amounts provided to an employee by the employer through
a grievance proceeding or a legal settlement are salary only if the settlement
is reviewed by the executive director and the amounts are determined by the
executive director to be consistent with paragraph (a) and prior
determinations.
Sec. 4. Minnesota
Statutes 2002, section 354.05, subdivision 35, is amended to read:
Subd. 35. [SALARY.] (a)
"Salary" means the periodic compensation, upon which member
contributions are required before deductions for deferred compensation,
supplemental retirement plans, or other voluntary salary reduction programs.
(b) "Salary" does not mean:
(1) lump sum annual leave payments;
(2) lump sum wellness and sick leave payments;
(3) employer-paid amounts used by an employee toward the cost
of insurance coverage, employer-paid fringe benefits, flexible spending
accounts, cafeteria plans, health care expense accounts, day care expenses, or
any payments in lieu of any employer-paid group insurance coverage, including
the difference between single and family rates that may be paid to a member
with single coverage and certain amounts determined by the executive director
to be ineligible;
(4) any form of payment made in lieu of any other employer-paid
fringe benefit or expense;
(5) any form of severance payments;
(6) workers' compensation payments;
(7) disability insurance payments including self-insured
disability payments;
(8) payments to school principals and all other administrators
for services in addition to the normal work year contract if these additional
services are performed on an extended duty day, Saturday, Sunday, holiday,
annual leave day, sick leave day, or any other nonduty day;
(9) payments under section 356.24, subdivision 1, clause (4);
and
(10) payments made under section 122A.40, subdivision 12,
except for payments for sick leave accumulated under the provisions of a
uniform school district policy that applies equally to all similarly situated
persons in the district.
(c) Amounts provided to an employee by the employer through
a grievance proceeding or a legal settlement are salary only if the settlement
is reviewed by the executive director and the amounts are determined by the
executive director to be consistent with paragraph (a) and prior
determinations.
Sec. 5. Minnesota
Statutes 2002, section 354A.011, subdivision 24, is amended to read:
Subd. 24. [SALARY;
COVERED SALARY.] (a) "Salary" or "covered salary" means the
entire compensation, upon which member contributions are required and made,
that is paid to a teacher before deductions for deferred compensation, supplemental
retirement plans, or other voluntary salary reduction programs.
(b) "Salary" does not mean:
(1) lump sum annual leave payments;
(2) lump sum wellness and sick leave payments;
(3) employer-paid amounts used by an employee toward the cost
of insurance coverage, employer-paid fringe benefits, flexible spending
accounts, cafeteria plans, health care expense accounts, day care expenses, or
any payments in lieu of any employer-paid group insurance coverage, including
the difference between single and family rates that may be paid to a member
with single coverage, and certain amounts determined by the executive secretary
or director to be ineligible;
(4) any form of payment made in lieu of any other
employer-paid fringe benefit or expense;
(5) any form of severance payments;
(6) workers' compensation payments;
(7) disability insurance payments, including self-insured
disability payments;
(8) payments to school principals and all other administrators
for services in addition to the normal work year contract if these additional
services are performed on an extended duty day, Saturday, Sunday, holiday,
annual leave day, sick leave day, or any other nonduty day;
(9) payments under section 356.24, subdivision 1, clause
(4)(ii); and
(10) payments made under section 122A.40, subdivision 12,
except for payments for sick leave accumulated under the provisions of a
uniform school district policy that applies equally to all similarly situated
persons in the district.
(c) Amounts provided to an employee by the employer through
a grievance proceeding or a legal settlement are salary only if the settlement
is reviewed by the executive director and the amounts are determined by the
executive director to be consistent with paragraph (a) and prior
determinations.
Sec. 6. Minnesota
Statutes 2002, section 356.611, subdivision 2, is amended to read:
Subd. 2. [FEDERAL
COMPENSATION LIMITS.] (a) For members first contributing to of
a covered pension plan enumerated in section 356.30, subdivision 3, on or
after July 1, 1995, compensation in excess of the limitation set forth
specified in section 401(a)(17) of the Internal Revenue Code,
as amended, for changes in the cost of living under section 401(a)(17)(B)
of the Internal Revenue Code, may not be included for contribution and
benefit computation purposes.
(b) Notwithstanding paragraph (a), for members specified in
paragraph (a) who first contributed to a covered plan before July 1, 1995,
the annual compensation limit set forth specified in
Internal Revenue Code 401(a)(17) on June 30, 1993, applies to members first
contributing before July 1, 1995 if that provides a greater allowable
annual compensation.
Sec. 7. Minnesota
Statutes 2002, section 356.611, is amended by adding a subdivision to read:
Subd. 3.
[MAXIMUM BENEFIT LIMITATIONS.] A member's annual benefit must, if
necessary, be reduced to the extent required by section 415(b) of the Internal
Revenue Code, as adjusted by the United States Secretary of the Treasury under
section 415(d) of the Internal Revenue Code.
For purposes of section 415 of the Internal Revenue Code, the limitation
year of a pension plan covered by this section must be the fiscal year or
calendar year of that plan, whichever is applicable. The accrued benefit limitation described in section 415(e) of the
Internal Revenue Code must cease to be effective for limitation years beginning
after December 31, 1999.
Sec. 8. [EFFECTIVE
DATE.]
(a) Sections 1, 2, 3, 6, and 7 are effective on July 1,
2004.
(b) Sections 4 and 5 are effective on the day following
final enactment.
ARTICLE 3
ALLOWABLE
SERVICE CREDIT
Section 1. Minnesota
Statutes 2002, section 352.27, is amended to read:
352.27 [CREDIT FOR MILITARY BREAK IN SERVICE TO
PROVIDE UNIFORMED SERVICE.]
Any (a) An employee given a leave of absence
to enter military service who is absent from employment by reason of
service in the uniformed services, as defined in United States Code, title 38,
section 4303(13), and who returns to state service upon discharge from military
service as provided in the uniformed service within the time frames
required in United States Code, title 38, section 192.262 4312(e),
may obtain service credit for the period of military the
uniformed service. The employee
is not entitled to credit for any voluntary extension of military service at
the instance of the employee beyond the initial period of enlistment,
induction, or call to active duty, nor to credit for any period of service
following a voluntary return to military service as further specified in
this section, provided that the employee did not separate from uniformed
service with a dishonorable or bad conduct discharge or under other than
honorable conditions. An
(b) The employee may obtain credit by paying into the
fund an equivalent employee contribution based upon the contribution
rate or rates in effect at the time that the uniformed service was performed
multiplied by the full and fractional years being purchased and applied to the
annual salary received at the date of return from military service. The
amount of this contribution must be the applicable amounts required in section
352.04, subdivision 2, plus interest at an annual rate of 8.5 percent
compounded annually rate. The
annual salary rate is the average annual salary during the purchase period that
the employee would have received if the employee had continued to be employed
in covered employment rather than to provide uniformed service, or, if the
determination of that rate is not reasonably certain, the annual salary rate is
the employee's average salary rate during the 12-month period of covered
employment immediately preceding the period of the uniformed service.
(c) The matching equivalent employer
contribution and, if applicable, the equivalent additional employer
contribution provided in section 352.04 must be paid by the department
employing the employee upon return to state service from funds available
to the department at the time and in the manner provided in section 352.04,
using the employer and additional employer contribution rate or rates in effect
at the time that the uniformed service was performed, applied to the same
annual salary rate or rates used to compute the equivalent employee
contribution.
(d) If the employee equivalent contributions provided in
this section are not paid in full, the employee's allowable service credit must
be prorated by multiplying the full and fractional number of years of uniformed
service eligible for purchase by the ratio obtained by dividing the total
employee contribution received by the total employee contribution otherwise
required under this section.
(e) To receive service credit under this section, the
contributions specified in this section must be transmitted to the Minnesota
State Retirement System during the period which begins with the date on which
the individual returns to state service and which has a duration of three times
the length of the uniformed service period, but not to exceed five years. If the determined payment period is less
than one year, the contributions required under this section to receive service
credit may be made within one year of the discharge date.
(f) The amount of service credit obtainable under this
section may not exceed five years unless a longer purchase period is required
under United States Code, title 38, section 4312.
(g) The employing unit shall pay interest on all equivalent
employee and employer contribution amounts payable under this section. Interest must be computed at a rate of 8.5
percent compounded annually from the end of each fiscal year of the leave or
the break in service to the end of the month in which the payment is received.
Sec. 2. Minnesota
Statutes 2002, section 352B.01, is amended by adding a subdivision to read:
Subd. 3b.
[CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED SERVICE.] (a) A
member who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who
returns to state employment in a position covered by the plan upon discharge
from service in the uniformed service within the time frame required in United
States Code, title 38, section 4312(e), may obtain service credit for the
period of the uniformed service, provided that the member did not separate from
uniformed service with a dishonorable or bad conduct discharge or under other
than honorable conditions.
(b) The member may obtain credit by paying into the fund an
equivalent member contribution based on the contribution rate or rates in
effect at the time that the uniformed service was performed multiplied by the
full and fractional years being purchased and applied to the annual salary
rate. The annual salary rate is the
average annual salary during the purchase period that the member would have
received if the member had continued to provide employment services to the
state rather than to provide uniformed service, or if the determination of that
rate is not reasonably certain, the annual salary rate is the member's average
salary rate during the 12-month period immediately preceding the purchase
period.
(c) The equivalent employer contribution and, if applicable,
the equivalent employer additional contribution, must be paid by the employing
unit, using the employer and employer additional contribution rate or rates in
effect at the time that the uniformed service was performed, applied to the
same annual salary rate or rates used to compute the equivalent member
contribution.
(d) If the member equivalent contributions provided for in
this subdivision are not paid in full, the member's allowable service credit
must be prorated by multiplying the full and fractional number of years of
uniformed service eligible for purchase by the ratio obtained by dividing the
total member contributions received by the total member contributions otherwise
required under this subdivision.
(e) To receive allowable service credit under this
subdivision, the contributions specified in this section must be transmitted to
the fund during the period which begins with the date on which the individual
returns to state employment covered by the plan and which has a duration of
three times the length of the uniformed service period, but not to exceed five
years. If the determined payment period
is calculated to be less than one year, the contributions required under this
subdivision to receive service credit may be within one year from the discharge
date.
(f) The amount of allowable service credit obtainable under
this section may not exceed five years, unless a longer purchase period is
required under United States Code, title 38, section 4312.
(g) The employing unit shall pay interest on all equivalent
member and employer contribution amounts payable under this subdivision. Interest must be computed at a rate of 8.5
percent compounded annually from the end of each fiscal year of the leave or
break in service to the end of the month in which payment is received.
Sec. 3. Minnesota
Statutes 2002, section 353.01, subdivision 16, is amended to read:
Subd. 16. [ALLOWABLE
SERVICE; LIMITS AND COMPUTATION.] (a) "Allowable service" means:
(1) service during years of actual membership in the course of
which employee contributions were made, periods covered by payments in lieu of
salary deductions under section 353.35;
(2) service in years during which the public employee was not a
member but for which the member later elected, while a member, to obtain credit
by making payments to the fund as permitted by any law then in effect;
(3) a period of authorized leave of
absence with pay from which deductions for employee contributions are made,
deposited, and credited to the fund;
(4) a period of authorized personal, parental, or medical leave
of absence without pay, including a leave of absence covered under the federal
Family Medical Leave Act, that does not exceed one year, and during or for
which a member obtained service credit for each month in the leave period by
payments to the fund made in place of salary deductions. The payments must be made in an amount or
amounts based on the member's average salary on which deductions were paid for
the last six months of public service, or for that portion of the last six
months while the member was in public service, to apply to the period in either
case that immediately precedes the commencement of the leave of absence. If the employee elects to pay the employee
contributions for the period of any authorized personal, parental, or medical
leave of absence without pay, or for any portion of the leave, the employee
shall also, as a condition to the exercise of the election, pay to the fund an
amount equivalent to the required employer and the additional employer
contributions, if any, for the employee.
The payment must be made within one year from the expiration of the
leave of absence or within 20 days after termination of public service under
subdivision 11a, whichever is earlier.
The employer, by appropriate action of its governing body which is made
a part of its official records and which is adopted before the date of the
first payment of the employee contribution, may certify to the association in
writing its commitment to pay the employer and additional employer
contributions from the proceeds of a tax levy made under section 353.28. Payments under this paragraph must include
interest at an annual rate of 8.5 percent compounded annually from the date of
the termination of the leave of absence to the date payment is made. An employee shall return to public service
and render a minimum of three months of allowable service in order to be
eligible to pay employee and employer contributions for a subsequent authorized
leave of absence without pay. Upon
payment, the employee must be granted allowable service credit for the
purchased period;
(5) a periodic, repetitive leave that is offered to all
employees of a governmental subdivision.
The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service credit by making employee
contributions in an amount or amounts based on the member's average salary that
would have been paid if the leave had not been taken. The employer shall pay the employer and additional employer
contributions on behalf of the participating member. The employee and the employer are responsible to pay interest on
their respective shares at the rate of 8.5 percent a year, compounded annually,
from the end of the normal cycle until full payment is made. An employer shall also make the employer and
additional employer contributions, plus 8.5 percent interest, compounded
annually, on behalf of an employee who makes employee contributions but
terminates public service. The employee
contributions must be made within one year after the end of the annual normal
working cycle or within 20 days after termination of public service, whichever
is sooner. The association shall
prescribe the manner and forms to be used by a governmental subdivision in administering
a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased
period;
(6) an authorized temporary layoff under subdivision 12,
limited to three months allowable service per authorized temporary layoff in
one calendar year. An employee who has
received the maximum service credit allowed for an authorized temporary layoff
must return to public service and must obtain a minimum of three months of
allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary layoff; or
(7) a period during which a member is rate
or rates in effect at the time that the uniformed service was performed
multiplied by the full and fractional years being purchased and applied to the
annual salary on an authorized leave
of absence to enter military absent from employment by a governmental
subdivision by reason of service in the armed forces of the United
States in the uniformed services, as defined in United States Code,
title 38, section 4303(13), if the member returns to public service upon
discharge from military service in the uniformed service within the
time frames required under United States Code, title 38, section 192.262
and 4312(e), provided that the member did not separate from uniformed
service with a dishonorable or bad conduct discharge or under other than
honorable conditions. The service is
credited if the member pays into the fund equivalent employee contributions
based upon the employee's contribution at the date of return from military service rate. The annual salary rate is the average annual
salary during the purchase period that the member would have received if the
member had continued to be employed in covered employment rather than to
provide uniformed service, or, if the determination of that rate is not
reasonably certain, the annual salary rate is the member's average salary rate
during the 12-month period of covered employment immediately preceding the
period of the uniformed service.
Payment of the member equivalent contributions must be made within
during a period which begins with the date on which the individual
returns to public employment and that is three times the length of the
military leave period, or within five years of the date of discharge from the
military service, whichever is less. If
the determined payment period is less than one year, the contributions required
under this clause to receive service credit may be made within one year of the
discharge date. Payment may not be accepted following 20 days after termination
of public service under subdivision 11a.
The amount of these contributions must be in accord with the
contribution rates and salary limitations, if any, in effect during the leave,
plus interest at an annual rate of 8.5 percent compounded annually from the
date of return to public service to the date payment is made. If the member equivalent contributions
provided for in this clause are not paid in full, the member's allowable
service credit must be prorated by multiplying the full and fractional number
of years of uniformed service eligible for purchase by the ratio obtained by
dividing the total member contributions received by the total member
contributions otherwise required under this clause. The corresponding equivalent
employer contribution, and, if applicable, the equivalent additional
employer contribution, if applicable, must be paid by the governmental
subdivision employing the member upon the person's return to public service
if the member makes the equivalent employee contributions. The employer payments must be made from
funds available to the employing unit, using the employer and additional
employer contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to
compute the equivalent member contribution. The governmental subdivision involved may appropriate money for
those payments. A member may not
receive credit for a voluntary extension of military service at the instance of
the member beyond the initial period of enlistment, induction, or call to
active duty. The amount of
service credit obtainable under this section may not exceed five years unless a
longer purchase period is required under United States Code, title 38, section
4312. The employing unit shall pay
interest on all equivalent member and employer contribution amounts payable
under this clause. Interest must be
computed at a rate of 8.5 percent compounded annually from the end of each fiscal
year of the leave or the break in service to the end of the month in which the payment is received. Upon payment, the employee must be granted
allowable service credit for the purchased period.
(b) For calculating benefits under sections 353.30, 353.31,
353.32, and 353.33 for state officers and employees displaced by the Community
Corrections Act, chapter 401, and transferred into county service under section
401.04, "allowable service"
means the combined years of allowable service as defined in paragraph
(a), clauses (1) to (6), and section 352.01, subdivision 11.
(c) For a public employee who has prior service covered by a
local police or firefighters relief association that has consolidated with the
Public Employees Retirement Association or to which section 353.665 applies,
and who has elected the type of benefit coverage provided by the public
employees police and fire fund either under section 353A.08 following the
consolidation or under section 353.665, subdivision 4, "applicable
service" is a period of service credited by the local police or
firefighters relief association as of the effective date of the consolidation
based on law and on bylaw provisions governing the relief association on the
date of the initiation of the consolidation procedure.
(d) No member may receive more than 12 months of allowable
service credit in a year either for vesting purposes or for benefit calculation
purposes.
(e) "Allowable service" also means a period purchased
under section 356.555.
Sec. 4.
Minnesota Statutes 2002, section 354.091, is amended to read:
354.091 [SERVICE CREDIT.]
(a) In computing service credit, no teacher shall receive
credit for more than one year of teaching service for any fiscal year. Commencing July 1, 1961:
(1) if a teacher teaches less than five hours in a day, service
credit must be given for the fractional part of the day as the term of service
performed bears to five hours;
(2) if a teacher teaches five or more hours in a day, service
credit must be given for only one day;
(3) if a teacher teaches at least 170 full days in any fiscal
year, service credit must be given for a full year of teaching service; and
(4) if a teacher teaches for only a fractional part of the
year, service credit must be given for such fractional part of the year as the
period of service performed bears to 170 days.
(b) A teacher shall receive a full year of service credit based
on the number of days in the employer's full school year if it is less than 170
days. Teaching service performed before
July 1, 1961, must be computed under the law in effect at the time it was
performed.
(c) A teacher does not lose or gain retirement service credit
as a result of the employer converting to a flexible or alternate work
schedule. If the employer converts to a
flexible or alternate work schedule, the forms for reporting and the procedures
for determining service credit must be determined by the executive director
with the approval of the board of trustees.
(d) For all services rendered on or after July 1, 2003,
service credit for all members employed by the Minnesota State Colleges and
Universities system must be determined:
(1) for full-time employees, by the definition of full time
employment contained in the collective bargaining agreement for those units
listed in section 179A.10, subdivision 2, or contained in the applicable
personnel or salary plan for those positions designated in section 179A.10,
subdivision 1;
(2) for part-time employees, by the appropriate proration of
full-time equivalency based on the provisions contained in the collective
bargaining agreement for those units listed in section 179A.10, subdivision 2,
or contained in the applicable personnel or salary plan for those positions
designated in section 179A.10, subdivision 1, and the applicable procedures of
the Minnesota State Colleges and Universities system; and
(3) in no case may a member receive more than one year of
service credit for any fiscal year.
Sec. 5. Minnesota
Statutes 2002, section 354.096, subdivision 1, is amended to read:
Subdivision 1.
[CERTIFICATION.] Upon granting a family leave to a member, an employing
unit must certify the leave to the association on a form specified by the
executive director before the end of the fiscal year during which the leave
was granted.
Sec. 6.
Minnesota Statutes 2002, section 354.53, is amended to read:
354.53 [CREDIT FOR MILITARY BREAK IN SERVICE LEAVE
OF ABSENCE TO PROVIDE UNIFORMED SERVICE.]
Subdivision 1.
[ELIGIBILITY; EMPLOYEE AND EMPLOYER CONTRIBUTIONS.] (a) Any employee
given a leave of absence to enter military service teacher who is absent
from employment by reason of service in the uniformed services, as defined in
United States Code, title 38, section 4303(13), and who returns to the
employer providing teaching service upon discharge from military
service as provided in the uniformed service within the time frames
required in United States Code, title 38, section 192.262 4312(e),
may obtain service credit for the period of military the
uniformed service but shall not receive credit for any voluntary
extension of military service at the instance of the member beyond the initial
period of enlistment, induction or call to active duty as further
specified in this section, provided that the teacher did not separate from
uniformed service with a dishonorable or bad conduct discharge or under other
than honorable conditions.
(b) The member shall may obtain credit by
paying into the fund an equivalent employee contribution based upon the
contribution rate or rates in effect at the time that the military
uniformed service was performed multiplied by the full and fractional
years being purchased and applied to the annual salary rate of the
member for the year beginning with the date of return from military service and
the number of years of military service together with interest thereon at an
annual rate of 8.5 percent compounded annually from the time the military
service was rendered to the first date of payment. The annual salary rate is the average annual
salary during the purchase period that the teacher would have received if the
teacher had continued to provide teaching service to the employer rather than
provide uniformed service or if the determination of that rate is not
reasonably certain, the annual salary rate is the teacher's average salary rate
during the 12-month period immediately preceding the period, or, if the
preceding period is less than 12 months, the annualized rate derived from the
teacher's average salary rate during the period of teacher employment immediately
preceding the period of the uniformed service.
(c) The equivalent employer contribution and,
if applicable, the equivalent additional contribution provided in section
354.42 must be paid by the employing unit at as provided in section
354.52, subdivision 4, using the employer and employer additional
contribution rate or rates in effect at the time that the military uniformed
service was performed, applied to the same annual salary rate of or
rates used to compute the member for the year beginning with the date of
return from military service, in the manner provided in section 354.52,
subdivision 4 equivalent employee contribution.
Subd. 2. [CALCULATION
OF CREDIT.] (a) For purposes of computing a money purchase annuity under
section 354.44, subdivision 2 money purchase annuity, all payments into the
fund pursuant to under this section shall must be
considered accumulations after July 1, 1957 for the purpose of computing any
annuity in accordance with section 354.44, subdivision 2.
(b) For purposes of computing a formula annuity under
section 354.44, subdivision 6, if the employee equivalent
contributions and interest thereon provided in this section are not paid
in full, the member's formula service credit shall must be calculated
prorated by multiplying the full and fractional number of years
of military uniformed service eligible for purchase by the
ratio obtained by dividing the total amount paid and employee
contribution received by the maximum amount payable provided herein total
employee contribution otherwise required under this section.
Subd. 3. [PAYMENTS
ELIGIBLE PAYMENT PERIOD.] Payments pursuant to this (a) To
receive service credit under this section, the contributions specified in this
section shall must be made within transmitted to the
teachers retirement association during the period which begins with the date on
which the individual returns to teaching service and which has a duration of
three times the length of the uniformed service period, but not to exceed
five years from the date of discharge.
(b) Notwithstanding paragraph (a), if
the payment period determined under paragraph (a) is less than one year, the
contributions required under this section to receive service credit may be made
within one year from the discharge date.
Subd. 4. [LIMITS
ON SERVICE CREDIT.] The amount of service credit obtainable under this
section may not exceed five years, unless a longer purchase period is required
under United States Code, title 38, section 4312.
Subd. 5.
[INTEREST REQUIREMENTS.] The employer shall pay interest on all
equivalent employee and employer contribution amounts payable under this
section. Interest must be computed at a
rate of 8.5 percent compounded annually from the end of each fiscal year of the
leave or the break in service to the end of the month in which the payment is
received.
Sec. 7. Minnesota
Statutes 2002, section 354A.093, is amended to read:
354A.093 [MILITARY BREAK IN SERVICE CREDIT
TO PROVIDE UNIFORMED SERVICE.]
Subdivision 1.
[ELIGIBILITY.] Any teacher in the coordinated program of either the
Minneapolis Teachers Retirement Fund Association or the St. Paul Teachers
Retirement Fund Association or any teacher in the new law coordinated program
of the Duluth Teachers Retirement Fund Association who is granted a leave
absent from employment by reason of absence to enter military
service in the uniformed services as defined in United States Code, title
38, section 4303(13) and who returns to the employer providing
active teaching service upon discharge from military uniformed
service as provided in within the time frames required under United
States Code, title 38, section 192.262 4312(e), shall be
entitled to may receive allowable service credit in the applicable
association for all or a portion of the period of military uniformed
service but, provided that the teacher did not for any
voluntary extension of military separate from uniformed service beyond
the initial period of enlistment, induction with a dishonorable or call
to active duty which occurred at the instance of the teacher bad conduct
discharge or under other than honorable conditions.
Subd. 2.
[CONTRIBUTIONS.] If the teacher granted the military service leave of
absence makes the equivalent employee contribution for a period of military
service leave of absence pursuant to service provided to the uniformed
services under this section, the employing unit shall make an equivalent
employer contribution on behalf of the teacher to the applicable association
for the period of the military service leave of absence being
purchased in the manner described in section 354A.12, subdivision 2a. The equivalent employee and employer
contributions shall must be in an amount equal to the employee
and employer contribution rates in effect for other active members of the
association covered by the same program applied to a salary figure equal to the
teacher's average annual salary rate at the date of return from
military service that the teacher would have received if the leave or
break in service had not occurred, or if the determination of that average
salary rate is not reasonably certain, on the basis of the teacher's average
salary rate during the 12-month period immediately preceding the period, or, if
the preceding period is less than 12 months, the annualized rate derived from
the teacher's average salary rate during the period of teacher employment
immediately preceding the period of uniformed service, with the result
multiplied by the number of full and fractional years constituting the
period of service provided to the military uniformed
service leave of absence which the teacher seeks is authorized
to purchase under this section. Payment
shall include interest on the amount payable pursuant to this section at the
rate of six percent compounded annually from the year the military service was
rendered to the date of payment.
Subd. 3.
[PRORATING.] If the payments made by a teacher pursuant to under
this section are less than an the full amount equal to the
applicable contribution rate applied to a salary figure equal to the teacher's
annual salary rate at the date of return from military service, multiplied by
the number of years constituting the period of the military service leave of
absence determined under subdivision 2, the service credit shall
must be prorated. The prorated
service credit shall must be determined by the ratio between the
amount of the actual equivalent employee payment which was made and the
full contribution amount payable pursuant to equivalent employee
payment required under this section.
In order to be entitled to receive service credit under this section,
payment shall be made within five years from the date of discharge from
military service.
Subd. 4.
[ELIGIBLE PAYMENT PERIOD.] (a) To receive service credit under this
section, the contributions specified in this section must be transmitted to the
applicable first class city teachers retirement fund association during the
period which begins with the date the individual returns to teaching service
and which has a duration of three times the length of the uniformed service
period, but not to exceed five years.
(b) Notwithstanding paragraph (a), if the payment period
determined under paragraph (a) is less than one year, the contributions
required under this section to receive service credit may be made within one
year from the discharge date.
Subd. 5. [LIMITS
ON SERVICE CREDIT.] The amount of service credit obtainable under this
section may not exceed five years, unless a longer purchase period is required
under United States Code, title 38, section 4312.
Subd. 6.
[INTEREST REQUIREMENTS.] The employer shall pay interest on all
equivalent employee and employer contribution amounts payable under this
section. Interest must be computed at a
rate of 8.5 percent compounded annually from the end of each fiscal year of the
leave or break in service to the end of the month in which payment is received.
Sec. 8. Minnesota
Statutes 2002, section 490.121, is amended by adding a subdivision to read:
Subd. 4b. [CREDIT
FOR BREAK IN SERVICE TO PROVIDE UNIFORMED SERVICE.] (a) A judge who is
absent from employment by reason of service in the uniformed services, as
defined in United States Code, title 38, section 4303(13), and who returns to
state employment as a judge upon discharge from service in the uniformed
service within the time frame required in United States Code, title 38, section
4312(e) may obtain service credit for the period of the uniformed service,
provided that the judge did not separate from uniformed service with a
dishonorable or bad conduct discharge or under other than honorable conditions.
(b) The judge may obtain credit by paying into the fund
equivalent member contribution based on the contribution rate rates in effect
at the time that the uniformed service was performed multiplied by the full and
fractional years being purchased and applied to the annual salary rate. The annual salary rate is the average annual
salary during the purchase period that the judge would have received if the
judge had continued to provide employment services to the state rather than to
provide uniformed service, or if the determination of that rate is not
reasonably certain, the annual salary rate is the judge's average salary rate
during the 12-month period immediately preceding the purchase period.
(c) The equivalent employer contribution and, if applicable,
the equivalent employer additional contribution, must be paid by the employing
unit, using the employer and employer additional contribution rate or rates in
effect at the time that the uniformed service was performed, applied to the
same annual salary rate or rates used to compute the equivalent member
contribution.
(d) If the member equivalent contributions provided for in
this subdivision are not paid in full, the judge's allowable service credit
must be prorated by multiplying the full and fractional number of years of
uniformed service eligible for purchase by the ratio obtained by dividing the
total member contributions received by the total member contributions otherwise
required under this subdivision.
(e) To receive allowable service credit under this
subdivision, the contributions specified in this section must be transmitted to
the fund during the period which begins with the date on which the individual
returns to judicial employment and which has a duration of three times the
length of the uniformed service period, but not to exceed five years. If the determined payment period is
calculated to be less than one year, the contributions required under this
subdivision to receive service credit may be within one year from the discharge
date.
(f) The amount of allowable service credit obtainable under
this section may not exceed five years, unless a longer purchase period is
required under United States Code, title 38, section 4312.
(g) The state court administrator shall pay interest on all
equivalent member and employer contribution amounts payable under this
subdivision. Interest must be computed
at a rate of 8.5 percent compounded annually from the end of each fiscal year
of the leave or break in service to the end of the month in which payment is
received.
Sec. 9. [EFFECTIVE
DATE.]
Sections 1 to 8 are effective on July 1, 2004.
ARTICLE
4
QUALIFIED
PART-TIME TEACHER PROVISIONS
Section 1. Minnesota
Statutes 2002, section 354.66, subdivision 2, is amended to read:
Subd. 2. [QUALIFIED
PART-TIME TEACHER PROGRAM PARTICIPATION REQUIREMENTS.] (a) A teacher in
a Minnesota public elementary school, a Minnesota secondary school, or the
Minnesota State Colleges and Universities system who has three years or more of
allowable service in the association or three years or more of full-time
teaching service in Minnesota public elementary schools, Minnesota secondary
schools, or the Minnesota State Colleges and Universities system, by agreement
with the board of the employing district or with the authorized representative
of the board, may be assigned to teaching service in a part-time teaching
position under subdivision 3. The
agreement must be executed before October 1 of the school year for which
the teacher requests to make retirement contributions under subdivision 4. A copy of the executed agreement must be
filed with the executive director of the association. If the copy of the executed agreement is filed with the
association after October 1 of the school year for which the teacher
requests to make retirement contributions under subdivision 4, the employing
unit shall pay the fine specified in section 354.52, subdivision 6, for each calendar
day that elapsed since the October 1 due date.
The association may not accept an executed agreement that is received by
the association more than 15 months late.
The association may not waive the fine required by this section.
(b) Notwithstanding paragraph (a), if the teacher is also a
legislator:
(1) the agreement in paragraph (a) must be executed before
March 1 of the school year for which the teacher requests to make retirement
contributions under subdivision 4; and
(2) fines specified in paragraph (a) apply if the employing
unit does not file the executed agreement with the executive director of the
association by March 1.
Sec. 2. Minnesota
Statutes 2002, section 354A.094, subdivision 3, is amended to read:
Subd. 3. [QUALIFIED PART-TIME
TEACHER PROGRAM PARTICIPATION REQUIREMENTS.] (a) A teacher in the public
schools of a city of the first class who has three years or more allowable
service in the applicable retirement fund association or three years or more of
full-time teaching service in Minnesota public elementary schools, Minnesota
secondary schools, and Minnesota State Colleges and Universities system may, by
agreement with the board of the employing district, be assigned to teaching
service within the district in a part-time teaching position. The agreement must be executed before
October 1 of the year for which the teacher requests to make retirement
contributions under subdivision 4. A
copy of the executed agreement must be filed with the executive director of the
retirement fund association. If the
copy of the executed agreement is filed with the association after October 1 of
the year for which the teacher requests to make retirement contributions under
subdivision 4, the employing school district shall pay a fine of $5 for each
calendar day that elapsed since the October 1 due date. The association may not accept an executed
agreement that is received by the association more than 15 months late. The association may not waive the fine
required by this section.
(b) Notwithstanding paragraph (a), if the teacher is also a
legislator:
(1) the agreement in paragraph (a) must be executed before
March 1 of the school year for which the teacher requests to make retirement
contributions under subdivision 4; and
(2) fines specified in paragraph (a) apply if the employing
unit does not file the executed agreement with the executive director of the
Teachers Retirement Fund Association by March 1.
Sec. 3. [EFFECTIVE
DATE.]
Sections 1 and 2 are effective on July 1, 2004.
ARTICLE
5
RETIREMENT
PLAN CONTRIBUTIONS AND TRANSFERS
Section 1. Minnesota
Statutes 2002, section 354.42, subdivision 7, is amended to read:
Subd. 7. [ERRONEOUS
SALARY DEDUCTIONS OR DIRECT PAYMENTS.] (a) Any deductions taken from the
salary of an employee for the retirement fund in error shall 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, and. 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 retirement association 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, shall must be
made to the employing unit.
(d) (e) Any erroneous direct payments of
member-paid contributions or erroneous salary deductions that were not
refunded in during the regular payroll cycle processing of
an employing unit's annual summary report shall must be refunded to
the member with, 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).
Sec. 2. Minnesota
Statutes 2002, section 354.51, subdivision 5, is amended to read:
Subd. 5. [PAYMENT OF
SHORTAGES.] (a) Except as provided in paragraph (b), in the event that
full required member contributions are not deducted from the salary of a teacher,
payment shall must be made as follows:
(a) (1) Payment of shortages in member deductions
on salary earned after June 30, 1957, and prior to before July 1,
1981, may be made any time prior to before retirement. Payment shall must include
interest at an annual rate of 8.5 percent compounded annually from the end of
the fiscal year in which the shortage occurred to the end of the month in which
payment is made and the interest shall must be credited to the
fund. If payment of a shortage in
deductions is not made, the formula service credit of the member shall must
be prorated pursuant to under section 354.05, subdivision 25,
clause (3).
(b) (2) Payment of shortages in member deductions
on salary earned after June 30, 1981, shall be are the sole obligation
of the employing unit and shall be are payable by the employing
unit upon notification by the executive director of the shortage with interest
at an annual rate of 8.5 percent compounded annually from the end of the fiscal
year in which the shortage occurred to the end of the month in which payment is
made and the interest shall must be credited to the fund. Effective July 1, 1986, the employing unit
shall also pay the employer contributions as specified in section 354.42,
subdivisions 3 and 5 for such the shortages. If the shortage payment is not paid by the
employing unit within 60 days of notification, the executive director shall
certify the amount of the shortage payment to the applicable county auditor,
who shall spread a levy in the amount of the shortage payment over the taxable
property of the taxing district of the employing unit if the employing unit is
supported by property taxes, or to the commissioner of finance, who shall
deduct the amount from any state aid or appropriation amount applicable to the
employing unit if the employing unit is not supported by property taxes.
(c) (3) Payment may not be made for shortages in
member deductions on salary earned prior to before July 1, 1957,
for shortages in member deductions on salary paid or payable under paragraph
(b), or for shortages in member deductions for persons employed by the
Minnesota State Colleges and Universities system in a faculty position or in an
eligible unclassified administrative position and whose employment was less than
25 percent of a full academic year, exclusive of the summer session, for the
applicable institution that exceeds the most recent 36 months.
(b) For a person who is employed by the Minnesota State
Colleges and Universities system in a faculty position or in an eligible
unclassified administrative position and whose employment was less than 25
percent of a full academic year, exclusive of the summer session, for the
applicable institution, upon the person's election under section 354B.21 of
retirement coverage under this chapter, the shortage in member deductions on
the salary for employment by the Minnesota State Colleges and Universities
system institution of less than 25 percent of a full academic year, exclusive
of the summer session, for the applicable institution for the most recent 36
months and the associated employer contributions must be paid by the Minnesota
State Colleges and Universities system institution, plus annual compound
interest at the rate of 8.5 percent from the end of the fiscal year in which
the shortage occurred to the end of the month in which the teachers retirement
association coverage election is made.
If the shortage payment is not made by the institution within 60 days of
notification, the executive director shall certify the amount of the shortage
payment to the commissioner of finance, who shall deduct the amount from any
state appropriation to the system. An
individual electing coverage under this paragraph shall repay the amount of the
shortage in member deductions, plus interest, through deduction from salary or
compensation payments within the first year of employment after the election
under section 354B.21, subject to the limitations in section 16D.16. The Minnesota State Colleges and
Universities system may use any means available to recover amounts which were
not recovered through deductions from salary or compensation payments. No payment of the shortage in member
deductions under this paragraph may be made for a period longer than the most
recent 36 months.
Sec. 3. Minnesota
Statutes 2002, section 354B.23, subdivision 1, is amended to read:
Subdivision 1. [MEMBER
CONTRIBUTION RATE.] (a) Except as provided in paragraph (b), The member
contribution rate for participants in the individual retirement account plan is
4.5 percent of salary.
(b) For participants in the individual retirement account
plan who were otherwise eligible to elect retirement coverage in the state
unclassified employees retirement program, the member contribution rate is the
rate specified in section 352D.04, subdivision 2, paragraph (a).
Sec. 4. Minnesota
Statutes 2002, section 354B.32, is amended to read:
354B.32 [TRANSFER OF FUNDS TO IRAP.]
A participant in the individual retirement account plan
established in this chapter who has less than ten years of allowable service
under the Teachers Retirement Association or the a teachers
retirement fund association, whichever applies, may elect to transfer an
amount equal to the participant's accumulated member contributions to the
teachers retirement association or the applicable teachers retirement
fund association, plus compound interest at the rate of six percent per annum,
to the individual retirement account plan.
The transfers are irrevocable fund to fund fund-to-fund
transfers, and, in no event, may the participant receive direct
payment of the money transferred prior to retirement before the
termination of employment. If a
participant elects the contribution transfer, all of the participant's
allowable and formula service credit in the Teachers Retirement Association or
the teachers retirement fund association associated with the transferred amount
is forfeited.
The executive director of the Teachers Retirement Association
and the chief administrative officers of the teachers retirement fund
associations, in cooperation with the chancellor of the Minnesota State
Colleges and Universities system, shall notify participants who are eligible to
transfer of their right to transfer and the amount that they are eligible to
transfer, and shall, upon request, provide forms to implement the
transfer. The chancellor of the
Minnesota State Colleges and Universities system shall assist the Teachers
Retirement Association and the teachers retirement fund associations in
developing transfer forms and in implementing the transfers.
Authority to elect a transfer under this section expires on
July 1, 2004.
Sec. 5. [EFFECTIVE
DATE; RETROACTIVE APPLICATION.]
(a) Section 2 is effective on July 1, 2004.
(b) Section 2 applies to shortages in member deductions that
occurred before the effective date of the section.
(c) Sections 1, 3, and 4 are effective on July 1, 2004.
ARTICLE
6
REPORTING
AND INFORMATION PROVISION
Section 1. Minnesota
Statutes 2002, section 354.07, subdivision 9, is amended to read:
Subd. 9. [INFORMATION
DISTRIBUTION.] All school districts, the Minnesota State Colleges and
Universities, community colleges and other employers of members of the
association are obligated to distribute to their employees ballots for the
election of members to the board of trustees, pamphlets, brochures, documents
or any other material containing association information which are prepared by
the executive director or the board and are delivered to the employers for
distribution.
Sec. 2.
Minnesota Statutes 2002, section 354.52, subdivision 4a, is amended to
read:
Subd. 4a. [MEMBER DATA
REPORTING REQUIREMENTS.] (a) An employing unit must initially provide the
member data specified in paragraph (b) or any of that data not previously
provided to the association for payroll warrants dated after June 30, 1995, in
a format prescribed by the executive director. An employing unit must provide the member data specified in
paragraph (b) in a format prescribed by the executive director. Data changes and the dates of those changes
under this subdivision must be reported to the association in a format
prescribed by the executive director on an ongoing basis within 14 calendar
days after the date of the end of the payroll cycle in which they occur. These data changes must be reported with the
payroll cycle data under subdivision 4b.
(b) Data on the member includes:
(1) legal name, address, date of birth, association member
number, employer-assigned employee number, and Social Security number;
(2) association status, including, but not limited to, basic,
coordinated, exempt annuitant, exempt technical college teacher, and exempt
independent contractor or consultant;
(3) employment status, including, but not limited to, full time,
part time, intermittent, substitute, or part-time mobility;
(4) employment position, including, but not limited to,
teacher, superintendent, principal, administrator, or other;
(5) employment activity, including, but not limited to, hire,
termination, resumption of employment, disability, or death;
(6) leaves of absence;
(7) county district number assigned by the association for the
employing unit;
(8) data center identification number, if applicable; and
(9) gender;
(10) position code; and
(11) other information as may be required by the
executive director.
Sec. 3. Minnesota
Statutes 2002, section 354.52, is amended by adding a subdivision to read:
Subd. 4c. [MNSCU
SERVICE CREDIT REPORTING.] For all part-time service rendered on or after
July 1, 2004, the service credit reporting requirement in subdivision 4b for
all part-time employees of the Minnesota State Colleges and Universities system
must be met by the Minnesota State Colleges and Universities system reporting to
the association on or before July 31 of each year the final calculation of each
part-time member's service credit for the immediately preceding fiscal year
based on the employee's assignments for the fiscal year.
Sec. 4. Minnesota
Statutes 2002, section 354.52, subdivision 6, is amended to read:
Subd. 6. [NONCOMPLIANCE
CONSEQUENCES.] An employing unit that does not comply with the reporting
requirements under this section shall subdivision 2a, 4a, or 4b must
pay a fine of $5 per calendar day until the association receives the required
data.
Sec. 5.
[EFFECTIVE DATE.]
Sections 1 to 4 are effective on July 1, 2004.
ARTICLE
7
RETIREMENT
ANNUITY PROVISIONS
Section 1. Minnesota
Statutes 2002, section 352.86, subdivision 1, is amended to read:
Subdivision 1.
[ELIGIBILITY; RETIREMENT ANNUITY.] A person who is employed by the
Department of Transportation in the civil service employment classification of
aircraft pilot or chief pilot who is covered by the general employee retirement
plan of the system under section 352.01, subdivision 23, who elects this
special retirement coverage under subdivision 3, who is prohibited from
performing the duties of aircraft pilot or chief pilot after reaching age 62
65 by a rule policy adopted by the commissioner of
transportation, and who terminates employment as a state employee on reaching
that on or after age 62 but prior to normal retirement age is
entitled, upon application, to a retirement annuity computed in accordance
with under section 352.115, subdivisions 2 and 3, without any
reduction for early retirement under section 352.116, subdivision 1.
Sec. 2. Minnesota
Statutes 2002, section 353.37, is amended by adding a subdivision to read:
Subd. 1b.
[RETIREMENT AGE.] For purposes of this section, "retirement
age" means retirement age as defined in United States Code, title 42,
section 416(l).
Sec. 3. Minnesota
Statutes 2002, section 353.37, subdivision 3, is amended to read:
Subd. 3. [REDUCTION OF
ANNUITY.] The association shall reduce the amount of the annuity as follows:
(a) for of a person who has not reached normal
the retirement age, by one-half of the amount in excess of
the applicable reemployment income maximum under subdivision 1;.
(b) for a person who has reached normal retirement age, but
has not reached age 70, one-third of the amount in excess of the applicable
reemployment income maximum under subdivision 1;
(c) for a person who has reached age 70, or for salary
earned through service in an elected office, there is no reduction upon
reemployment, regardless of income.
There is no reduction upon
reemployment, regardless of income, for a person who has reached the retirement
age.
Sec. 4. Minnesota
Statutes 2002, section 354.44, subdivision 4, is amended to read:
Subd. 4. [RETIREMENT
ANNUITY ACCRUAL DATE.] (a) An annuity payment begins to accrue, providing that
the age and service requirements under subdivision 1 are satisfied, after the
termination of teaching service, or after the application for retirement has been
filed with the board, whichever is later, as follows:
(1) on the 16th day of the month of termination or filing if
the termination or filing occurs on or before the 15th day of the month;
(2) on the first day of the month
following the month of termination or filing if the termination or filing
occurs on or after the 16th day of the month;
(3) on July 1 for all school principals and other
administrators who receive a full annual contract salary during the fiscal year
for performance of a full year's contract duties; or
(4) a later date to be either the first or the
16th day of a month occurring within the six-month period immediately
following the termination of teaching service as specified under paragraph (b)
by the member.
(b) If an application for retirement is filed with the board
during the six-month period that occurs immediately following the
termination of teaching service, the annuity may begin to accrue as if the
application for retirement had been filed with the board on the date teaching
service terminated or a later date under paragraph (a), clause (4). An annuity must not begin to accrue more
than one month before the date of final salary receipt.
Sec. 5. Minnesota
Statutes 2002, section 354.44, subdivision 5, is amended to read:
Subd. 5. [RESUMPTION OF
TEACHING SERVICE AFTER RETIREMENT.] (a) Any person who retired under the
provisions of this chapter and has thereafter resumed teaching in any employer
unit to which this chapter applies is eligible to continue to receive payments
in accordance with the annuity except that annuity payments must be reduced
during the calendar year immediately following any calendar year in which the
person's income from the teaching service is in an amount greater than the
annual maximum earnings allowable for that age for the continued receipt of
full benefit amounts monthly under the federal old age, survivors and
disability insurance program as set by the secretary of health and human
services under United States Code, title 42, section 403. The amount of the reduction must be one-half
of the amount in excess of the applicable reemployment income maximum specified
in this subdivision and must be deducted from the annuity payable for the
calendar year immediately following the calendar year in which the excess
amount was earned. If the person has
not yet reached the minimum age for the receipt of Social Security benefits,
the maximum earnings for the person must be equal to the annual maximum earnings
allowable for the minimum age for the receipt of Social Security benefits.
(b) If the person is retired for only a fractional part of the
calendar year during the initial year of retirement, the maximum reemployment
income specified in this subdivision must be prorated for that calendar year.
(c) After a person has reached the Social Security full
retirement age of 70, no reemployment income maximum is applicable
regardless of the amount of income.
(d) The amount of the retirement annuity reduction must be
handled or disposed of as provided in section 356.47.
(e) For the purpose of this subdivision, income from teaching
service includes, but is not limited to:
(1) all income for services performed as a consultant or an
independent contractor for an employer unit covered by the provisions of this
chapter; and
(2) the greater of either the income received or an amount
based on the rate paid with respect to an administrative position, consultant,
or independent contractor in an employer unit with approximately the same
number of pupils and at the same level as the position occupied by the person
who resumes teaching service.
Sec. 6. Minnesota
Statutes 2002, section 490.121, subdivision 10, is amended to read:
Subd. 10. [EARLY
RETIREMENT DATE.] "Early retirement date" means the last day of any
month after a judge attains the age of 62 60 until the
normal retirement date.
Sec. 7.
[PERA-POLICE AND FIRE; TEMPORARY EXEMPTION FROM REEMPLOYED ANNUITANT
EARNINGS LIMITATIONS.]
Notwithstanding any provision of Minnesota Statutes, section
353.37, to the contrary, a person who is receiving a retirement annuity from
the public employees police and fire plan and who is employed as a sworn peace
officer by the Metropolitan Airports Commission, is exempt from the limitation
on reemployed annuitant earnings for the period January 1, 2004, until June 30,
2007.
Sec. 8. [EFFECTIVE
DATE.]
(a) Section 1 is effective on the day following final
enactment.
(b) Sections 2, 3,
4, 5, and 6 are effective on July 1, 2004.
(c) Section 7 is effective on the day following final
enactment and applies retroactively from January 1, 2004.
ARTICLE
8
DISABILITY
BENEFIT PROVISIONS
Section 1. Minnesota
Statutes 2002, section 352.113, subdivision 4, is amended to read:
Subd. 4. [MEDICAL OR
PSYCHOLOGICAL EXAMINATIONS; AUTHORIZATION FOR PAYMENT OF BENEFIT.] (a)
An applicant shall provide medical, chiropractic, or psychological
evidence to support an application for total and permanent disability.
(b) The director shall have the employee examined by at
least one additional licensed chiropractor, physician, or psychologist
designated by the medical adviser. The
chiropractors, physicians, or psychologists shall make written reports to the
director concerning the employee's disability including medical expert
opinions as to whether the employee is permanently and totally disabled within
the meaning of section 352.01, subdivision 17.
(c) The director shall also obtain written certification
from the employer stating whether the employment has ceased or whether the
employee is on sick leave of absence because of a disability that will prevent
further service to the employer and as a consequence the employee is not
entitled to compensation from the employer.
(d) The medical adviser shall consider the reports of
the physicians, psychologists, and chiropractors and any other evidence
supplied by the employee or other interested parties. If the medical adviser finds the employee totally and permanently
disabled, the adviser shall make appropriate recommendation to the director in
writing together with the date from which the employee has been totally
disabled. The director shall then
determine if the disability occurred within 180 days of filing the application,
while still in the employment of the state, and the propriety of authorizing
payment of a disability benefit as provided in this section.
(e) A terminated employee may apply for a disability
benefit within 180 days of termination as long as the disability occurred while
in the employment of the state. The
fact that an employee is placed on leave of absence without compensation
because of disability does not bar that employee from receiving a disability
benefit.
(f) Unless payment of a disability benefit has
terminated because the employee is no longer totally disabled, or because the
employee has reached normal retirement age as provided in this section, the
disability benefit shall cease with the last payment received by the disabled
employee or which had accrued during the lifetime of the employee unless there
is a spouse surviving; in that event the surviving spouse is entitled to the
disability benefit for the calendar month in which the disabled employee died.
Sec. 2. Minnesota
Statutes 2002, section 352.113, subdivision 6, is amended to read:
Subd. 6. [REGULAR
MEDICAL OR PSYCHOLOGICAL EXAMINATIONS.] At least once each year during the
first five years following the allowance of a disability benefit to any
employee, and at least once in every three-year period thereafter, the director
may require any disabled employee to undergo a medical, chiropractic, or
psychological examination. The
examination must be made at the place of residence of the employee, or at any
place mutually agreed upon, by a physician or physicians an expert or
experts designated by the medical adviser and engaged by the director. If any examination indicates to the medical
adviser that the employee is no longer permanently and totally disabled, or is
engaged in or can engage in a gainful occupation, payments of the disability
benefit by the fund must be discontinued.
The payments shall discontinue as soon as the employee is reinstated to
the payroll following sick leave, but in no case shall payment be made for more
than 60 days after the medical adviser finds that the employee is no longer
permanently and totally disabled.
Sec. 3. Minnesota
Statutes 2002, section 352.113, is amended by adding a subdivision to read:
Subd. 7a.
[TEMPORARY REEMPLOYMENT BENEFIT REDUCTION WAIVER.] A reduction in benefits
under subdivision 7, or a termination of benefits due to the disabled employee
resuming a gainful occupation from which earnings are equal to or more than the
employee's salary at the date of disability or the salary currently paid for
similar positions does not apply until six months after the individual returns
to a gainful occupation.
Sec. 4. Minnesota
Statutes 2002, section 352.113, subdivision 8, is amended to read:
Subd. 8. [REFUSAL OF
EXAMINATION.] If a disabled employee refuses to submit to a medical an
expert examination as required, payments by the fund must be discontinued
and the director shall revoke all rights of the employee in any disability
benefit.
Sec. 5. Minnesota
Statutes 2002, section 352.95, subdivision 1, is amended to read:
Subdivision 1.
[JOB-RELATED DISABILITY.] A covered correctional employee who becomes
disabled and who is expected to be physically or mentally unfit
to perform the duties of the position for at least one year as a direct
result of an injury, sickness, or other disability that incurred in or arising
arose out of any act of duty that makes the employee physically or
mentally unable to perform the duties, is entitled to a disability
benefit. The disability benefit may
be based on covered correctional service only. The benefit amount must equal is 50 percent of the
average salary defined in section 352.93, plus an additional percent equal to
that specified in section 356.315, subdivision 5, for each year of covered
correctional service in excess of 20 years, ten months, prorated for completed
months.
Sec. 6. Minnesota
Statutes 2002, section 352.95, subdivision 2, is amended to read:
Subd. 2.
[NON-JOB-RELATED DISABILITY.] Any A covered correctional
employee who, after rendering at least one year of covered correctional
service, becomes disabled and who is expected to be physically or
mentally unfit to perform the duties of the position for at least one year
because of sickness or injury occurring that occurred while not
engaged in covered employment, is entitled to a disability benefit based
on covered correctional service only.
The disability benefit must be computed as provided in section 352.93,
subdivisions 1 and 2, and must be computed as though the employee had at
least 15 years of covered correctional service.
Sec. 7. Minnesota
Statutes 2002, section 352.95, subdivision 4, is amended to read:
Subd. 4. [MEDICAL OR
PSYCHOLOGICAL EVIDENCE.] (a) An applicant shall provide medical,
chiropractic, or psychological evidence to support an application for
disability benefits. The director shall
have the employee examined by at least one additional licensed physician,
chiropractor, or psychologist who is designated by the medical adviser. The physicians, chiropractors, or
psychologists with respect to a mental impairment, shall make written
reports to the director concerning the question of the employee's
disability, including medical their expert opinions as to whether
the employee is disabled within the meaning of this section. The director shall also obtain written
certification from the employer stating whether or not the employee is
on sick leave of absence because of a disability that will prevent further
service to the employer, and as a consequence, the employee is not
entitled to compensation from the employer.
(b) If, on considering the physicians' reports by
the physicians, chiropractors, or psychologists and any other evidence
supplied by the employee or others, the medical adviser finds the employee
disabled within the meaning of this section, the advisor shall make appropriate
recommendation to the director, in writing, together with the date from
which the employee has been disabled.
The director shall then determine the propriety of authorizing payment
of a disability benefit as provided in this section.
(c) Unless the payment of a disability benefit has
terminated because the employee is no longer disabled, or because the employee
has reached either age 65 or the five-year anniversary of the effective
date of the disability benefit, whichever is later, the disability benefit shall
must cease with the last payment received by the disabled employee or
which had accrued during the employee's lifetime. While disability benefits are paid, the director has the right,
at reasonable times, to require the disabled employee to submit proof of
the continuance of the disability claimed.
If any examination indicates to the medical adviser that the employee is
no longer disabled, the disability payment must be discontinued upon the
reinstatement to state service or within 60 days of the finding, whichever is
sooner.
Sec. 8. Minnesota
Statutes 2002, section 352B.10, subdivision 1, is amended to read:
Subdivision 1.
[INJURIES,; PAYMENT AMOUNTS.] Any A member
who becomes disabled and who is expected to be physically or mentally
unfit to perform duties for at least one year as a direct result of an
injury, sickness, or other disability that incurred in or arising
arose out of any act of duty, shall is entitled to receive
disability benefits while disabled. The
benefits must be paid in monthly installments. The benefit is an amount equal to the member's average
monthly salary multiplied by 60 percent, plus an additional percent equal to
that specified in section 356.315, subdivision 6, for each year and pro rata
for completed months of service in excess of 20 years, if any.
Sec. 9. Minnesota
Statutes 2002, section 352B.10, subdivision 2, is amended to read:
Subd. 2. [DISABLED
WHILE NOT ON DUTY.] If a member terminates employment after with
at least one year of service because of sickness or injury occurring while
not on duty and not engaged in state work entitling the member to membership,
and the member becomes disabled and is expected to be physically or
mentally unfit to perform the duties of the position for at least one year
because of sickness or injury occurring that occurred while not
engaged in covered employment, the member individual is entitled
to disability benefits. The benefit
must be in the same amount and computed in the same way as if the
member individual were 55 years old at the date of disability and
the annuity were paid was payable under section 352B.08. If a disability under this clause
subdivision occurs after one year of service but before 15 years of
service, the disability benefit must be computed as though the member individual
had 15 years of service.
Sec. 10. Minnesota
Statutes 2002, section 352B.10, subdivision 3, is amended to read:
Subd. 3. [ANNUAL AND
SICK LEAVE; WORK AT LOWER PAY.] No member date of disability shall is entitled to
receive any a disability benefit payment when the member has
unused annual leave or sick leave, or under any other circumstances,
when, during the period of disability, there has been no
impairment of salary. Should If
the member or former member resume disabilitant resumes gainful work
employment, the disability benefit must be continued in an amount which,
when added to current earnings, does not exceed the salary rate received
of by the person at the as,
which must be adjusted over time by the same percentage
increase in United States average wages used by the Social Security Administration
in calculating average indexed monthly earnings for the old age, survivors,
and disability insurance programs for the same period.
Sec. 11. Minnesota
Statutes 2002, section 352B.10, subdivision 4, is amended to read:
Subd. 4. [PROOF OF
DISABILITY.] (a) No disability benefit payment shall benefits
may be made except upon paid unless adequate proof is
furnished to the executive director of the existence of the
disability. While disability
benefits are being paid
(b) Adequate proof of a disability must include a written
expert report by a licensed physician, by a licensed chiropractor, or with
respect to a mental impairment, by a licensed psychologist.
(c) Following the commencement of benefit payments, the executive
director has the right, at reasonable times, to require the disabled former
member disabilitant to submit proof of the continuance of the
disability claimed.
Sec. 12. Minnesota
Statutes 2002, section 352B.10, subdivision 5, is amended to read:
Subd. 5. [OPTIONAL
ANNUITY.] A disabled member disabilitant may, in lieu of
survivorship coverage under section 352B.11, subdivision 2, choose the normal
disability benefit or an optional annuity as provided in section 352B.08,
subdivision 3. The choice of an
optional annuity must be made in writing, on a form prescribed by the
executive director, and must be made before the commencement of the
payment of the disability benefit, or within 90 days of attaining before
reaching age 65 or before reaching the five-year anniversary of the
effective date of the disability benefit, whichever is later. It The optional annuity is
effective on the date on which the disability benefit begins to accrue, or the
month following the attainment of age 65 or following the
five-year anniversary of the effective date of the disability benefit,
whichever is later.
Sec. 13. Minnesota
Statutes 2002, section 352B.105, is amended to read:
352B.105 [TERMINATION OF DISABILITY BENEFITS.]
Disability benefits payable under section 352B.10 shall must
terminate at on the transfer date, which is the end of the
month in which the beneficiary disabilitant becomes 65
years old or the five-year anniversary of the effective date of the
disability benefit, whichever is later.
If the beneficiary disabilitant is still disabled when
on the beneficiary becomes 65 years old transfer date, the
beneficiary shall disabilitant must be deemed to be a retired
member and, if the beneficiary disabilitant had chosen an
optional annuity under section 352B.10, subdivision 5, shall must
receive an annuity in accordance with under the terms of the
optional annuity previously chosen. If
the beneficiary disabilitant had not chosen an optional annuity
under section 352B.10, subdivision 5, the beneficiary disabilitant
may then choose to receive either a normal retirement annuity computed
under section 352B.08, subdivision 2, or an optional annuity as provided in
section 352B.08, subdivision 3. An
optional annuity must be chosen within 90 days of attaining age 65 or
reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later transfer date. If an optional annuity is chosen, the
optional annuity shall begin to accrue accrues on the first of
the month next following attainment of age 65 or the five-year
anniversary of the effective transfer date of the
disability benefit, whichever is later.
Sec. 14. Minnesota Statutes
2002, section 352D.065, subdivision 2, is amended to read:
Subd. 2. [DISABILITY
BENEFIT AMOUNT.] A participant who becomes totally and permanently disabled has
the option, even if on leave of absence without pay, to receive:
(1) the value of the participant's total shares;
(2) the value of one-half of a portion of the
total shares and an annuity based on the value of one-half remainder
of the total shares; or
(3) an annuity based on the value of the participant's total
shares.
Sec. 15. Minnesota
Statutes 2002, section 353.33, subdivision 4, is amended to read:
Subd. 4. [PROCEDURE TO
DETERMINE ELIGIBILITY.] (a) The applicant shall provide an expert
report signed by a licensed physician, psychologist, or chiropractor and the
applicant must authorize the release of medical and health care
evidence, including all medical records and relevant information from any
source, to support the application for total and permanent disability benefits.
(b) The medical
adviser shall verify the medical evidence and, if necessary for disability
determination, suggest the referral of the applicant to
specialized medical consultants.
(c) The association shall also obtain from the employer,
certification of the member's past public service, dates of paid sick leave and
vacation beyond the last working day and whether or not sick leave or annual
leave has been allowed.
(d) If, upon consideration of the medical
evidence received and the recommendations of the medical adviser, it is
determined by the executive director that the applicant is totally and
permanently disabled within the meaning of the law, the association shall grant
the person a disability benefit. The
fact that
(e) An employee who is placed on leave of absence
without compensation because of disability does is not bar the
person barred from receiving a disability benefit.
Sec. 16. Minnesota
Statutes 2002, section 353.33, subdivision 6, is amended to read:
Subd. 6. [CONTINUING
ELIGIBILITY FOR BENEFITS.] The association shall determine eligibility for
continuation of disability benefits and require periodic examinations and
evaluations of disabled members as frequently as deemed necessary. The association shall require the disabled
member to provide an expert report signed by a licensed physician,
psychologist, or chiropractor and the disabled member shall
authorize the release of medical and health care evidence,
including all medical and health care records and information from any
source, relating to an application for continuation of disability
benefits. Disability benefits are
contingent upon a disabled person's participation in a vocational
rehabilitation program evaluation if the executive director
determines that the disabled person may be able to return to a gainful occupation. If a member is found to be no longer totally
and permanently disabled, payments must cease the first of the month following
the expiration of a 30-day period after the member receives a certified letter
notifying the member that payments will cease.
Sec. 17. Minnesota
Statutes 2002, section 353.33, subdivision 6b, is amended to read:
Subd. 6b. [DUTIES OF
THE MEDICAL ADVISER.] At the request of the executive director, the medical
adviser shall designate licensed physicians, psychologists, or chiropractors
to examine applicants for disability benefits and review the medical expert
reports based upon these examinations to determine whether an applicant is
totally and permanently disabled as defined in section 353.01, subdivision 19,
disabled as defined in section 353.656, or eligible for continuation of
disability benefits under subdivision 6.
The medical examiner shall also review, at the request of the executive
director, all medical and health care statements on behalf of an
applicant for disability benefits, and shall report in writing to the executive
director the conclusions and recommendations of the examiner on
those matters referred for advice.
Sec. 18. Minnesota
Statutes 2002, section 353.33, subdivision 7, is amended to read:
Subd. 7. [PARTIAL
REEMPLOYMENT.] If, following a work or non-work-related injury or illness, a
disabled person resumes a gainful occupation from which who remains
totally and permanently disabled as defined in section 353.01, subdivision 19,
has income from employment that is not substantial gainful activity and the
rate of earnings from that employment are less than the salary rate
at the date of disability or the salary rate currently paid for similar
positions similar to the employment position held by the disabled person
immediately before becoming disabled, whichever is greater, the board
executive director shall continue the disability benefit in an amount
that, when added to the earnings and any workers' compensation benefit,
does not exceed the salary rate at the date of disability or the salary
currently paid for similar positions similar to the employment
position held by the disabled person immediately before becoming disabled,
whichever is higher, provided. The disability benefit does
under this subdivision may not exceed the disability benefit originally
allowed, plus any postretirement adjustments payable after December 31, 1988,
in accordance with section 11A.18, subdivision 10. No deductions for the retirement fund may be taken from the salary
of a disabled person who is receiving a disability benefit as provided in this
subdivision.
Sec. 19. Minnesota
Statutes 2002, section 353.33, is amended by adding a subdivision to read:
Subd. 7a. [TRIAL
WORK PERIOD.] (a) If, following a work or non-work related injury or
illness, a disabled member attempts to return to work for their previous public
employer or attempts to return to a similar position with another public
employer, on a full-time or less than full-time basis, the Public Employees
Retirement Association shall continue paying the disability benefit for a
period not to exceed six months. The
disability benefit must continue in an amount that, when added to the
subsequent employment earnings and workers' compensation benefit, does not
exceed the salary at the date of disability or the salary currently paid for
similar positions, whichever is higher.
(b) No deductions for the retirement fund may be taken from
the salary of a disabled person who is attempting to return to work under this
provision unless the member waives further disability benefits.
(c) A member only may return to employment and continue
disability benefit payments once while receiving disability benefits from a
plan administered by the Public Employees Retirement Association.
Sec. 20. Minnesota
Statutes 2002, section 353.656, subdivision 5, is amended to read:
Subd. 5. [PROOF OF
DISABILITY.] (a) A disability benefit payment must not be made except
upon adequate proof furnished to the executive director of the
association of the existence of such a disability, and.
(b) During the time when disability benefits are being
paid, the executive director of the association has the right, at
reasonable times, to require the disabled member to submit proof of the continuance
of the disability claimed.
(c) Adequate proof of a disability must include a written
expert report by a licensed physician, by a licensed chiropractor, or with
respect to a mental impairment, by a licensed psychologist.
(d) A person applying for or receiving a disability
benefit shall provide or authorize release of medical evidence, including all
medical records and information from any source, relating to an application for
disability benefits or the continuation of those benefits.
Sec. 21.
Minnesota Statutes 2002, section 353.656, is amended by adding a
subdivision to read:
Subd. 8.
[APPLICATION PROCEDURE TO DETERMINE ELIGIBILITY FOR POLICE AND FIRE PLAN
DISABILITY BENEFITS.] (a) An application for disability benefits must be
made in writing on a form or forms prescribed by the executive director.
(b) If an application for disability benefits is filed
within two years of the date of the injury or the onset of the illness that
gave rise to the disability application, the application must be supported by
evidence that the applicant is unable to perform the duties of the position
held by the applicant on the date of the injury or the onset of the illness
causing the disability. The employer must
provide evidence indicating whether the applicant is able or unable to perform
the duties of the position held on the date of the injury or onset of illness
causing the disability and the specifications of any duties that the individual
can or cannot perform.
(c) If an application for disability benefits is filed more
than two years after the date of the injury or the onset of an illness causing
the disability, the application must be supported by evidence that the
applicant is unable to perform the most recent duties that are expected to be
performed by the applicant during the 90 days before the filing of the
application. The employer must provide
evidence of the duties that are expected to be performed by the applicant
during the 90 days before to the filing of the application, whether the
applicant can or cannot perform those duties overall, and the specifications of
any duties that the applicant can or cannot perform.
(d) Unless otherwise permitted by law, no application for
disability benefits can be filed by a former member of the police and fire plan
more than three years after the former member has terminated from Public
Employees Retirement Association police and fire plan covered employment. If an application is filed within three
years after the termination of public employment, the former member must
provide evidence that the disability is the direct result of an injury or the
contracting of an illness that occurred while still actively employed and
participating in the police and fire plan.
(e) Any application for duty-related disability must be
supported by a first report of injury as defined in section 176.231.
(f) If a member who has applied for and been approved for
disability benefits before the termination of service does not terminate
service or is not placed on an authorized leave of absence as certified by the
governmental subdivision within 45 days following the date on which the
application is approved, the application shall be canceled. If an approved application for disability
benefits has been canceled, a subsequent application for disability benefits
may not be filed on the basis of the same medical condition for a minimum of
one year from the date on which the previous application was canceled.
(g) An applicant may file a retirement application under section
353.29, subdivision 4, at the same time as the disability application is
filed. If the disability application is
approved, the retirement application is canceled. If the disability application is denied, the retirement
application must be initiated and processed upon the request of the
applicant. A police and fire fund
member may not receive a disability benefit and a retirement annuity from the
police and fire fund at the same time.
(h) A repayment of a refund must be made within six months
after the effective date of disability benefits or within six months after the
date of the filing of the disability application, whichever is later. No purchase of prior service or payment made
in lieu of salary deductions otherwise authorized under section 353.01 or
353.36, subdivision 2, may be made after the occurrence of the disability for
which an application is filed under this section.
Sec. 22.
Minnesota Statutes 2002, section 353.656, is amended by adding a
subdivision to read:
Subd. 9. [REFUSAL
OF EXAMINATION OR MEDICAL EVIDENCE.] If a person applying for or receiving a
disability benefit refuses to submit to a medical examination under subdivision
11, or fails to provide or to authorize the release of medical evidence under
subdivisions 5 and 7, the association shall cease the application process or
shall discontinue the payment of a disability benefit, whichever is
applicable. Upon the receipt of the
requested medical evidence, the association shall resume the application
process or the payment of a disability benefit upon approval for the
continuation, whichever is applicable.
Sec. 23. Minnesota
Statutes 2002, section 353.656, is amended by adding a subdivision to read:
Subd. 10.
[ACCRUAL OF BENEFITS.] (a) A disability benefit begins to accrue the
day following the commencement of disability, 90 days preceding the filing of
an application, or, if annual or sick leave is paid for more than the 90-day
period, from the date on which the payment of salary ceased, whichever is
later.
(b) Payment of the disability benefit must not continue
beyond the end of the month in which entitlement has terminated. If the disabilitant dies prior to
negotiating the check for the month in which death occurs, payment must be made
to the surviving spouse or, if none, to the designated beneficiary or, if none,
to the estate.
Sec. 24. Minnesota
Statutes 2002, section 353.656, is amended by adding a subdivision to read:
Subd. 11.
[INDEPENDENT MEDICAL EXAMINATION; DUTIES OF THE MEDICAL ADVISOR.] Any
individual receiving disability benefits or any applicant, if requested by the
executive director, must submit to an independent medical examination. The medical examination must be paid for by
the association. The medical advisor
shall review all medical reports submitted to the association, including the
findings of an independent medical examination requested under this section,
and shall advise the executive director.
Sec. 25. Minnesota
Statutes 2002, section 353.656, is amended by adding a subdivision to read:
Subd. 12.
[APPROVAL OF DISABILITY BENEFITS.] Review of disability benefit
applications and review of existing disability cases must be made by the
executive director based upon all relevant evidence including advice from the
medical advisor and the evidence provided by the member and employer. A member whose application for disability
benefits or whose continuation of disability benefits is denied may appeal the
executive director's decision to the board of trustees within 45 days of the
receipt of a certified letter notifying the member of the decision to deny the
application or the benefit continuation.
Sec. 26. Minnesota
Statutes 2002, section 354.48, subdivision 2, is amended to read:
Subd. 2. [APPLICATIONS;
ACCRUAL.] (a) A person described in subdivision 1, or another person
authorized to act on behalf of the person, may make written application on
a form prescribed by the executive director for a total and permanent
disability benefit only within the 18-month period following the termination of
teaching service. This
(b) The benefit accrues from the day following the
commencement of the disability or the day following the last day for
which salary is paid, whichever is later, but does not begin to accrue more
than six months before the date on which the written application
is filed with the executive director.
If salary is being received for either annual or sick leave during the disability
period, payments accrue the disability benefit accrues from the
day following the last day for which this salary is paid.
Sec. 27.
Minnesota Statutes 2002, section 354.48, subdivision 4, is amended to
read:
Subd. 4. [DETERMINATION
BY THE EXECUTIVE DIRECTOR.] (a) The executive director shall have the
member examined by at least two licensed physicians, licensed chiropractors,
or licensed psychologists selected by the medical adviser.
(b) These physicians, chiropractors, or psychologists
with respect to a mental impairment, shall make written reports to the
executive director concerning the member's disability, including medical
expert opinions as to whether or not the member is permanently and
totally disabled within the meaning of section 354.05, subdivision 14.
(c) The executive director shall also obtain written
certification from the last employer stating whether or not the member was
separated from service because of a disability which would reasonably prevent
further service to the employer and as a consequence the member is not entitled
to compensation from the employer.
(d) If, upon the consideration of the reports of
the physicians or psychologists and any other evidence presented by the
member or by others interested therein, the executive director finds that
the member is totally and permanently disabled, the executive director
shall grant the member a disability benefit.
The fact that
(e) An employee who is placed on leave of absence
without compensation because of disability shall is not bar
the member barred from receiving a disability benefit.
Sec. 28. Minnesota
Statutes 2002, section 354.48, subdivision 6, is amended to read:
Subd. 6. [REGULAR
PHYSICAL EXAMINATIONS.] At least once each year during the first five years
following the allowance of a disability benefit to any member, and at least
once in every three-year period thereafter, the executive director shall
require the disability beneficiary to undergo a medical an expert
examination by a physician or physicians, by a chiropractor or
chiropractors, or by one or more psychologists with respect to a mental
impairment, engaged by the executive director. If any an examination indicates that the member is
no longer permanently and totally disabled or that the member is engaged or is
able to engage in a substantial gainful occupation, payments of the disability
benefit by the association shall must be discontinued. The payments shall discontinue must
be discontinued as soon as the member is reinstated to the payroll
following sick leave, but payment may not be made for more than 60 days after the
physicians, the chiropractors, or the psychologists engaged by the
executive director find that the person is no longer permanently and totally
disabled.
Sec. 29. Minnesota
Statutes 2002, section 354.48, subdivision 6a, is amended to read:
Subd. 6a. [MEDICAL
ADVISER; DUTIES.] The state commissioner of health or a licensed physician on
the staff of the department of health who is designated by the
commissioner shall be the medical adviser of the executive director. The medical adviser shall designate licensed
physicians, licensed chiropractors, or licensed psychologists with respect
to a mental impairment, who shall examine applicants for disability
benefits. The medical adviser shall
pass upon all medical expert reports based on any examinations
performed in order to determine whether a teacher is totally and permanently
disabled as defined in section 354.05, subdivision 14. The medical adviser shall also investigate
all health and medical statements and certificates by or on behalf of a teacher
in connection with a disability benefit, and shall report in writing to the
director setting forth any conclusions and recommendations on all matters
referred to the medical adviser.
Sec. 30. Minnesota
Statutes 2002, section 354.48, subdivision 10, is amended to read:
Subd. 10. [RETIREMENT
STATUS AT NORMAL RETIREMENT AGE.] (a) No person shall be is
entitled to receive both a disability benefit and a retirement annuity provided
by this chapter.
(b) The disability benefit paid to
a person hereunder shall must terminate at the end of the month
in which the person attains the normal retirement age. If the person is still totally and
permanently disabled at the beginning of the month next following the month in
which the person attains the normal retirement age, the person shall must
be deemed to be on retirement status and, if the person had elected an optional
annuity pursuant to under subdivision 3a, shall must
receive an annuity in accordance with the terms of the optional annuity
previously elected, or, if the person had not elected an optional annuity pursuant
to under subdivision 3a, may elect to receive a straight life
retirement annuity equal to the disability benefit paid prior to before
the date on which the person attains age 65 or reaches the five-year
anniversary of the effective date of the disability benefit, whichever is
later, or may elect to receive an optional annuity as provided in
section 354.45, subdivision 1.
(c) Election of an optional annuity must be made within
90 days of the normal retirement age 65 or the five-year
anniversary of the effective date of the disability benefit, whichever is
later.
(d) If an optional annuity is elected, the election shall
be is effective on the date on which the person attains the
normal retirement age 65 or reaches the five-year anniversary of the
effective date of the disability benefit, whichever is later. The optional annuity shall begin begins
to accrue on the first day of the month next following the month in which the
person attains the normal retirement age 65 or reaches the
five-year anniversary of the effective date of the disability benefit,
whichever is later.
Sec. 31. Minnesota
Statutes 2002, section 356.302, subdivision 3, is amended to read:
Subd. 3. [GENERAL
EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] A disabled member of a covered
retirement plan who has credit for allowable service in a combination of
general employee retirement plans is entitled to a combined service disability
benefit if the member:
(1) is less than 65 years of the normal retirement
age on the date of the application for the disability benefit;
(2) has become totally and permanently disabled;
(3) has credit for allowable service in any combination of
general employee retirement plans totaling at least three years;
(4) has credit for at least one-half year of allowable service
with the current general employee retirement plan before the commencement of
the disability;
(5) has at least three continuous years of allowable service
credit by the general employee retirement plan or has at least a total of three
years of allowable service credit by a combination of general employee
retirement plans in a 72-month period during which no interruption of allowable
service credit from a termination of employment exceeded 29 days; and
(6) was not receiving a retirement annuity or disability
benefit from any covered general employee retirement plan at the time of the
commencement of the disability.
Sec. 32. Minnesota
Statutes 2002, section 422A.18, subdivision 1, is amended to read:
Subdivision 1. [MEDICAL
EXPERT EXAMINATION.] (a) Upon the application of the head of the
department in which a contributing employee is employed, or upon the
application of the contributing employee or of one acting in the employee's
behalf, the retirement board shall place the contributor on disability,
provided and pay the person a disability allowance under this section if
the medical board, after a medical an expert examination of the
contributor made at the place of residence of the contributor or at a place
mutually agreed upon, shall certify to the retirement board that the
contributor is physically or mentally incapacitated for the performance of
further service to the city and recommend that the contributor be placed on
disability.
(b) The medical board shall consist of the city
physician, a physician, chiropractor, or licensed psychologist to be
selected by the retirement board, and a physician, chiropractor, or licensed
psychologist to be selected by the employee.
(c) Disability of an employee resulting from injury or
illness received in the performance of the duties of the city service shall be
defined as duty disability.
(d) Disability incurred as a result of injury or illness
not connected with the performance of such service shall be defined as nonduty
disability. In order to be entitled to
a retirement allowance for a nonduty disability an employee shall have rendered
five or more years of service to the city.
Sec. 33. Minnesota
Statutes 2002, section 422A.18, subdivision 4, is amended to read:
Subd. 4. [ADDITIONAL
MEDICAL EXAMINATIONS.] (a) Once each year, the retirement board
may require any disability beneficiary while still under the established age
for retirement to undergo medical an expert examination by a
physician or one or more physicians, one or more chiropractors,
or one or more licensed psychologists designated by the retirement board,. The examination to must be
made at the place of residence of the beneficiary or other place mutually
agreed upon. Should
(b) If the medical board report and certify certifies
to the retirement board that such the disability beneficiary is
no longer physically or mentally incapacitated for the performance of duty, the
beneficiary's allowance shall must be discontinued and the head
of the department in which the beneficiary was employed at the time of
retirement shall, upon notification by the retirement board of the report of
the medical board, reemploy the beneficiary at a rate of salary not less than
the amount of the disability allowance, but.
(c) After the
expiration of five years subsequent to the retirement of such the
beneficiary, the restoration to duty, notwithstanding the recommendation
of the medical board, shall be is optional with the head of the
department. Should If any
disability beneficiary while under the established age for retirement refuse
refuses to submit to at least one medical expert
examination in any year by a physician or one or more physicians,
one or more chiropractors, or one or more licensed psychologists designated
by the medical board, the allowance shall must be discontinued
until the withdrawal of such refusal, and should such refusal continue for one
year, all the beneficiary's rights in and to any retirement or disability
allowance shall be are forfeited.
Sec. 34. Minnesota
Statutes 2002, section 423B.09, subdivision 4, is amended to read:
Subd. 4. [CERTIFICATE
OF PHYSICIANS REQUIRED.] (a) No member is entitled to a pension under
subdivision 1, paragraph (b) or (c), except upon the certificate of two or more
physicians or, surgeons, chiropractors, licensed
psychologists, or a combination of experts chosen by the governing
board. This certificate must set forth
the cause, nature, and extent of the disability, disease, or injury of the
member.
(b) No active member may be awarded, granted, or paid a
disability pension under subdivision 1, paragraph (c), unless the certificate
states that the disability, disease, or injury was incurred or sustained by the
member while in the service of the police department of the city. The certificate must be filed with the
secretary of the association.
Sec. 35. Minnesota
Statutes 2002, section 423C.05, subdivision 4, is amended to read:
Subd. 4. [TEMPORARY
DISABILITY PENSION.] (a) An active member who, by sickness or accident,
becomes temporarily disabled from performing firefighter duties for the fire
department shall be is entitled to a temporary disability
pension.
(b) No allowance for disability shall may
be made unless notice of the disability and an application for benefits is made
by or on behalf of the disabled member within 90 days after the beginning of
the disability. This application shall
must include a certificate from a qualified medical professional expert
setting forth the cause, nature, and extent of the disability. This certificate must also conclude that the
disability was incurred or sustained while the member was in the service of the
fire department.
(c) The board shall utilize the board of examiners
established pursuant to under section 423C.03, subdivision 6, to
investigate and report on an application for benefits pursuant to under
this section and to make recommendations as to eligibility and the
benefit amount to be paid.
(d) A member entitled to a disability pension shall
must receive benefits in the amount and manner determined by the board.
Sec. 36. Minnesota
Statutes 2002, section 423C.05, subdivision 5, is amended to read:
Subd. 5.
[SERVICE-RELATED PERMANENT DISABILITY PENSION.] An active member who
becomes permanently disabled as the result of a service-related disease or
injury shall is, upon application and approval of the board, be
entitled to a pension of 41 units or in the amount determined under subdivision
8. The application for service-related
permanent disability shall must include a certificate from a
qualified medical professional expert setting forth the permanent
nature of the disability or disease and that it was service related.
Sec. 37. Minnesota Statutes
2002, section 423C.05, subdivision 6, is amended to read:
Subd. 6.
[NON-SERVICE-RELATED PERMANENT DISABILITY PENSION.] An active member
who, by sickness or accident, becomes permanently disabled and unable to
perform firefighter duties for the fire department due to non-service-related
disease or injury shall be is entitled to a permanent disability
pension. No allowance for disability shall
may be made unless notice of the disability and an application for
benefits is made by or on behalf of the disabled member within 90 days after
the beginning of the disability. This
application shall must include a certificate from a qualified
medical professional setting forth the cause, nature, and extent of the
disability. A member entitled to a
disability pension under this subdivision shall must receive
benefits in the amount and manner determined by the board, not to exceed 41
units.
Sec. 38. Minnesota
Statutes 2002, section 423C.05, is amended by adding a subdivision to read:
Subd. 6a.
[QUALIFIED EXPERT.] A qualified expert includes a licensed physician
or chiropractor, or in the case of mental impairment, includes a licensed
psychologist.
Sec. 39. [REPEALER.]
(a) Minnesota Statutes 2002, sections 353.33, subdivision
5b; and 490.11, are repealed on July 1, 2004.
(b) Sections 3 and 19 are repealed on July 1, 2006.
Sec. 40. [EFFECTIVE
DATE.]
Sections 1 to 39 are effective on July 1, 2004.
ARTICLE 9
DEATH
AND SURVIVOR BENEFITS AND REFUNDS
Section 1. Minnesota
Statutes 2002, section 3A.03, subdivision 2, is amended to read:
Subd. 2. [REFUND.] (a) Any
A former member who has made contributions under subdivision 1 and who
is no longer a member of the legislature is entitled to receive, upon written
application to the executive director on a form prescribed by the
executive director, a refund of all contributions credited to the member's
account with interest at an annual rate of six percent compounded annually
computed as provided in section 352.22, subdivision 2.
(b) The refund of contributions as provided in paragraph (a)
terminates all rights of a former member of the legislature or and
the survivors of the former member under this chapter.
(c) If the former member of the legislature again
becomes a member of the legislature after having taken a refund as provided in
paragraph (a), the member must be considered a new member of this plan. However, a new the member may
reinstate the rights and credit for service previously forfeited if the new
member repays all refunds taken plus interest at an annual rate of 8.5 percent
compounded annually from the date on which the refund was taken to the date
on which the refund is repaid.
(c) (d) No person may be required to apply for or
to accept a refund.
Sec. 2. Minnesota Statutes
2002, section 352.12, subdivision 1, is amended to read:
Subdivision 1. [DEATH
BEFORE TERMINATION OF SERVICE.] If an employee dies before state service has
terminated and neither a survivor annuity nor a reversionary annuity is payable
on behalf of the employee, or if a former employee who has sufficient
service credit to be entitled to an annuity dies before the benefit annuity
has become payable, the director shall make a refund with interest is
payable upon filing a written application on a form prescribed by the executive
director. The refund is payable to
the last designated beneficiary or, if there is none, to the surviving spouse
or, if none, to the employee's surviving children in equal shares or, if none,
to the employee's surviving parents in equal shares or, if none, to the
representative of the estate in an amount equal to the accumulated employee
contributions plus interest at the rate of six percent per annum compounded
annually. Interest must be computed
as provided in section 352.22, subdivision 2, to the first day of the month
in which the refund is processed.
Upon the death of an employee who has received a refund that was later
repaid in full, interest must be paid on the repaid refund only from the date
of the repayment. If the
repayment was made in installments, interest must be paid only from the date on
which the installment payments began.
The designated beneficiary, the surviving spouse, or the
representative of the estate of an employee who had received a disability benefit
is not entitled to the payment of interest upon any balance remaining to
the decedent's credit in the fund at the time of death, unless the death
occurred before any payment could be negotiated.
Sec. 3. Minnesota
Statutes 2002, section 352.12, subdivision 6, is amended to read:
Subd. 6. [DEATH AFTER
SERVICE TERMINATION.] Except as provided in subdivision 1, if a former employee
covered by the system dies and who has not received an annuity, a
retirement allowance, or a disability benefit dies, a refund must be
made is payable to the last designated beneficiary or, if there is
none, to the surviving spouse or, if none, to the employee's surviving children
in equal shares or, if none, to the employee's surviving parents in equal
shares or, if none, to the representative of the estate in an amount equal to
accumulated employee contributions plus interest. The refund must include interest at the
rate of six percent per year compounded annually. The interest on the refund must be computed as provided in
section 352.22, subdivision 2.
Sec. 4. Minnesota
Statutes 2002, section 352.22, subdivision 2, is amended to read:
Subd. 2. [AMOUNT OF
REFUND.] Except as provided in subdivision 3, the refund payable to a person
who ceased to be a state employee by reason of a termination of state
service is in an amount equal to employee accumulated contributions plus
interest at the rate of six percent per year compounded annually daily
from the date that the contribution was made until the date on which the refund
is paid. Included with the refund
is any interest paid as part of repayment of a past refund, plus interest
thereon from the date of repayment. Interest
must be computed to the first day of the month in which the refund is processed
and must be based on fiscal year or monthly balances, whichever applies.
Sec. 5. Minnesota
Statutes 2002, section 352.22, subdivision 3, is amended to read:
Subd. 3. [DEFERRED
ANNUITY.] (a) An employee who has at least three years of allowable service
when termination occurs may elect to leave the accumulated contributions in the
fund and thereby be entitled to a deferred retirement annuity. The annuity must be computed under the law
in effect when state service terminated, on the basis of the allowable
service credited to the person before the termination of service.
(b) An employee on layoff or on leave of absence without pay,
except a leave of absence for health reasons, and who does not return to
state service shall must have an annuity, deferred annuity, or
other benefit to which the employee may become entitled computed under the law
in effect on the employee's last working day.
(c) No application for a deferred annuity may be made more than
60 days before the time the former employee reaches the required age for
entitlement to the payment of the annuity.
The deferred annuity begins to accrue no earlier than 60 days before the
date the application is filed in the office of the system, but not (1) before
the date on which the employee reaches the required age for entitlement
to the annuity nor (2) before the day following the termination of state
service in a position which is not covered by the retirement system.
(d) Application for the accumulated contributions left on
deposit with the fund may be made at any time after 30 days following
the date of the termination of service.
Sec. 6. Minnesota
Statutes 2002, section 352B.10, subdivision 5, is amended to read:
Subd. 5. [OPTIONAL
ANNUITY.] A disabled member disabilitant may elect, in
lieu of spousal survivorship coverage under section 352B.11, subdivision
2 subdivisions 2b and 2c, choose the normal disability
benefit or an optional annuity as provided in section 352B.08, subdivision
3. The choice of an optional annuity
must be made before the commencement of the payment of the
disability benefit, or within 90 days of attaining before reaching
age 65 or reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later.
It The optional annuity is effective on the date on which
the disability benefit begins to accrue, or the month following attainment of
age 65 or the five-year anniversary of the effective date of the disability
benefit, whichever is later.
Sec. 7. Minnesota
Statutes 2002, section 352B.11, subdivision 1, is amended to read:
Subdivision 1. [REFUND
OF PAYMENTS.] (a) A member who has not received other benefits under
this chapter is entitled to a refund of payments made by salary deduction, plus
interest, if the member is separated, either voluntarily or involuntarily, from
the state service that entitled the member to membership.
(b) In the event of the member's death, if there are no
survivor benefits payable under this chapter, a refund plus interest is
payable to the last designated beneficiary on a form filed with the director
before death, or if no designation is filed, the refund is payable to
the member's estate. Interest under
this subdivision must be computed at the rate of six percent a year,
compounded annually calculated as provided in section 352.22,
subdivision 2. To receive a refund,
the application must be made on a form prescribed by the executive
director.
Sec. 8. Minnesota
Statutes 2002, section 352B.11, subdivision 2, is amended to read:
Subd. 2. [DEATH; PAYMENT
TO SPOUSE AND DEPENDENT CHILDREN; FAMILY MAXIMUMS.] If
a member serving actively as a member, or a member or former member receiving
the disability benefit before attaining age 65 or reaching the five-year
anniversary of the effective date of the disability benefit, whichever is
later, provided by section 352B.10, subdivisions 1 and 2, dies from any cause
before attaining age 65 or reaching the five-year anniversary of the effective
date of the disability benefit, whichever is later, the surviving spouse and
dependent children are entitled to benefit payments as follows:
(a) A member with at least three years of allowable service
is deemed to have elected a 100 percent joint and survivor annuity payable to a
surviving spouse only on or after the date the member or former member became
or would have become 55.
(b) The surviving spouse of a member who had credit for less
than three years of service shall receive, for life, a monthly annuity equal to
50 percent of that part of the average monthly salary of the member from which
deductions were made for retirement.
(c) The surviving spouse of a member who had credit for at
least three years service and who died after becoming 55 years old, may elect
to receive a 100 percent joint and survivor annuity, for life, notwithstanding
a subsequent remarriage, in lieu of the annuity prescribed in paragraph (b).
(d) The surviving spouse of any member who had credit for
three years or more and who was not 55 years old at death, shall receive the
benefit equal to 50 percent of the average monthly salary as described in
clause (b) until the deceased member would have become 55 years old, and
beginning the first of the month following that date, may elect to receive the
100 percent joint and survivor annuity.
(e) Each dependent child, as defined in section
352B.01, subdivision 10, shall is entitled to receive a
monthly annuity equal to ten percent of that part of the average monthly
salary of the former deceased member from which deductions
were made for retirement. A
dependent child over 18 and under 23 years of age also may receive the monthly
benefit provided in this section, if the child is continuously attending
an accredited school as a full-time student during the normal school year as
determined by the director. If the
child does not continuously attend school, but separates from full-time
attendance during any part of a school year, the annuity shall must
cease at the end of the month of separation.
In addition, a payment of $20 per month shall must be prorated
equally to surviving dependent children when the former member is survived by
one or more dependent children.
Payments for the benefit of any qualified dependent child must be
made to the surviving spouse, or if there is none, to the legal guardian of the
child. The maximum monthly
benefit for any one family, including a surviving spouse benefit, if
applicable, must not be less than 50 percent nor exceed 70 percent
of the average monthly salary for any number of children of the
deceased member.
(f) If the member dies under circumstances that entitle the
surviving spouse and dependent children to receive benefits under the workers'
compensation law, the workers' compensation benefits received by them must not
be deducted from the benefits payable under this section.
(g) The surviving spouse of a deceased former member who had
credit for three or more years of allowable service, but not the spouse of a
former member receiving a disability benefit under section 352B.10, subdivision
2, is entitled to receive the 100 percent joint and survivor annuity at the
time the deceased member would have become 55 years old. If a former member dies who does not qualify
for other benefits under this chapter, the surviving spouse or, if none, the
children or heirs are entitled to a refund of the accumulated deductions left
in the fund plus interest at the rate of six percent per year compounded
annually.
Sec. 9.
Minnesota Statutes 2002, section 352B.11, is amended by adding a
subdivision to read:
Subd. 2b.
[SURVIVING SPOUSE BENEFIT ELIGIBILITY.] (a) If an active member with
three or more years of allowable service dies before attaining age 55, the
surviving spouse is entitled to the benefit specified in subdivision 2c,
paragraph (b).
(b) If an active member with less than three years of
allowable service dies at any age, the surviving spouse is entitled to receive
the benefit specified in subdivision 2c, paragraph (c).
(c) If an active member with three or more years of
allowable service dies on or after attaining exact age 55, the surviving spouse
is entitled to receive the benefits specified in subdivision 2c, paragraph (d).
(d) If a disabilitant dies while receiving a disability
benefit under section 352B.10 or before the benefit under that section
commenced, and an optional annuity was not elected under section 352B.10,
subdivision 5, the surviving spouse is entitled to receive the benefit
specified in subdivision 2c, paragraph (b).
(e) If a former member with three or more years of allowable
service, who terminated from service and has not received a refund or commenced
receipt of any other benefit provided by this chapter, dies, the surviving
spouse is entitled to receive the benefit specified in subdivision 2c,
paragraph (e).
(f) If a former member with less than three years of
allowable service, who terminated from service and has not received a refund or
commenced receipt of any other benefit, if applicable, provided by this
chapter, dies, the surviving spouse is entitled to receive the refund specified
in subdivision 2c, paragraph (f).
Sec. 10. Minnesota
Statutes 2002, section 352B.11, is amended by adding a subdivision to read:
Subd. 2c.
[SURVIVING SPOUSE BENEFIT ENTITLEMENTS.] (a) A surviving spouse
specified in subdivision 2b is eligible to receive, following the filing of a
valid application and consistent with any other applicable requirements, a
benefit as specified in this subdivision.
A 100 percent joint and survivor annuity under paragraph (b) must be
computed assuming the exact age 55 for the deceased and the age of the
surviving spouse on the date of death.
A 100 percent joint and survivor annuity under paragraph (d) or (e) must
be computed using the age of the deceased on the date of death and the age of
the surviving spouse on that same date.
(b) For a surviving spouse specified in subdivision 2b,
paragraph (a) or (d), the surviving spouse benefit is a benefit for life equal
to 50 percent of the average monthly salary of the deceased member. On the first of the month next following the
date on which the deceased member would have attained exact age 55, in lieu of
continued receipt of the prior benefit, the surviving spouse is eligible to
commence receipt of the second half of a 100 percent joint and survivor annuity,
if this provides a larger benefit.
(c) For a surviving spouse specified in subdivision 2b,
paragraph (b), the surviving spouse benefit is a benefit for life equal to 50
percent of the average monthly salary of the deceased member.
(d) For a surviving spouse specified in subdivision 2b,
paragraph (c), the surviving spouse benefit is a benefit for life equal to 50
percent of the average monthly salary of the deceased member, or the second
half of a 100 percent joint and survivor annuity, whichever is larger.
(e) For a surviving spouse specified in subdivision 2b,
paragraph (e), the surviving spouse benefit is the second half of a 100 percent
joint and survivor annuity, commencing on the first of the month next following
the deceased member's date of death, or the first of the month next following
the date on which the deceased member would have attained age 55, whichever is
later.
(f) For a surviving spouse specified
in subdivision 2b, paragraph (f), the surviving spouse or, if none, the
children or, if none, the deceased member's estate, is entitled to a refund of
the employee contributions plus interest computed as specified in subdivision
1.
Sec. 11. Minnesota
Statutes 2002, section 352B.11, is amended by adding a subdivision to read:
Subd. 2d.
[COORDINATION WITH WORKERS' COMPENSATION BENEFITS.] If the deceased
member died under circumstances that entitle the surviving spouse and the
dependent child or children to receive benefits under workers' compensation
law, the workers' compensation benefits received by the deceased member's
survivor or survivors must not be deducted from the benefits payable under this
section.
Sec. 12. Minnesota
Statutes 2002, section 352D.075, subdivision 2, is amended to read:
Subd. 2. [SURVIVING
SPOUSE BENEFIT.] (a) Notwithstanding any designation of a beneficiary to the
contrary, if a participant or a former participant dies leaving a
spouse and there is no named beneficiary who survives to receive payment or the
spouse is named beneficiary before an annuity or a disability benefit
becomes payable, the surviving spouse may is entitled to
receive:
(1) a lump sum payment of the value of the participant's
total shares;
(2) The a lump sum payment of a portion of the
value of one-half of the total shares and beginning at age 55 or
thereafter, at any time after the participant's death, receive
an annuity based on the remaining value of one-half of the total
shares, provided that. If
the spouse dies before receiving any annuity payments, the remaining
value of said the shares shall be paid is payable
to the spouse's children in equal shares, but and if no such
children survive, then to the parents of the spouse in equal shares, but
and if no such children or parents survive, then to the estate of
the spouse; or
(3) Beginning at age 55 or thereafter at any time
after the participant's death, receive an annuity based on the value
of the total shares, provided that. If the spouse dies before receiving any annuity payments,
the value of said the shares shall be paid is payable
to the spouse's children in equal shares, but and if no such
children survive, then to the parents of the spouse in equal shares, but
and if no such children or parents survive, then to the estate of the
spouse; and further provided, if said the spouse dies
after receiving annuity payments but before receiving payments equal to the
value of the employee shares, the value of the employee shares remaining shall
be paid is payable to the spouse's children in equal shares, but
and if no such children survive, then to the parents of
the spouse in equal shares, but and if no such children or
parents survive, then to the estate of the spouse.
(b) A participant or a former participant and the person's
spouse may make a joint specification, in writing, on a form prescribed by the
executive director, that the benefits provided in this section must be paid
only to the designated beneficiary.
Sec. 13. Minnesota
Statutes 2002, section 352D.075, is amended by adding a subdivision to read:
Subd. 2a.
[SURVIVING SPOUSE COVERAGE TERM CERTAIN.] In lieu of the annuity
under subdivision 2, clause (2) or (3), or in lieu of a distribution under
subdivision 2, clause (1), the surviving spouse of a deceased participant may
elect to receive survivor coverage in the form of a term certain annuity of
five, six, 15, or 20 years, based on the value of the remaining shares. The monthly term certain annuity must be
calculated under section 352D.06, subdivision 1.
Sec. 14.
Minnesota Statutes 2002, section 352D.075, subdivision 3, is amended to
read:
Subd. 3. [REFUND TO
BENEFICIARY.] If a participant dies and has named a beneficiary no
surviving spouse, the value of the total shares shall be paid is
payable to such a designated beneficiary, but if such the
beneficiary dies before receiving payment, or if no beneficiary has been named and
there is no spouse, the value of said the shares shall be
paid is payable to the children of the participant in equal shares, but
or if no such children survive, then in equal shares to
the parents of the participant, but or if no such children or
parents survive, then to the estate of the participant.
Sec. 15. [352F.052]
[APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD PROVISION.]
Notwithstanding any provisions of law to the contrary,
subdivisions within section 352.12 of the edition of Minnesota Statutes
published in the year before the year in which a privatization occurred,
applicable to the surviving spouse or dependent children of a former member,
apply to the survivors of a terminated hospital employee of Fairview,
University of Minnesota Physicians, or University Affiliated Family Physicians.
Sec. 16. [353F.052]
[APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD PROVISION.]
Notwithstanding any provisions of law to the contrary,
subdivisions within section 353.32 of the edition of Minnesota Statutes
published in the year before the year in which a privatization occurred,
applicable to the surviving spouse or dependent children of a former member as
defined in section 353.01, subdivision 7a, apply to the survivors of a
terminated medical facility or other public employing unit employee.
Sec. 17. Minnesota
Statutes 2002, section 354.05, subdivision 22, is amended to read:
Subd. 22. [DESIGNATED
BENEFICIARY.] "Designated beneficiary" means the person, trust, or
organization designated by a retiree or member to receive the benefits to which
a beneficiary is entitled under this chapter.
A beneficiary designation is valid only if it is made on an appropriate
form provided by the executive director that is signed by the member and two
witnesses to the member's signature.
The properly completed form must be received by the association on or
before the date of death of the retiree or member. If a retiree or a member does not designate a person, trust, or
organization, or if the person who was designated predeceases the
retiree or the member, or if the trust or organization ceases to exist
before the death of the retiree or the member, the designated beneficiary means
is the estate of the deceased retiree or member.
Sec. 18. Minnesota
Statutes 2002, section 354.46, subdivision 2, is amended to read:
Subd. 2. [DEATH
WHILE ELIGIBLE DESIGNATED BENEFICIARY BENEFIT SURVIVING SPOUSE SURVIVOR
COVERAGE.] (a) The surviving spouse of any member or former member who
has If the active or deferred member was at least age 55 and had
credit for at least three years of allowable service on the date of death,
the surviving spouse is entitled to the second portion of a 100 percent
joint and survivor annuity coverage in the event of death of the member
prior to retirement. If the surviving
spouse does not elect to receive a surviving spouse benefit under subdivision
1, if applicable, or does not elect to receive a refund of accumulated member
contributions under section 354.47, subdivision 1, the surviving spouse is
entitled to receive, upon written application on a form prescribed by the
executive director, a benefit equal to the second portion of a 100 percent
joint and survivor annuity specified under section 354.45, based on the age
of the active or deferred member and surviving spouse at the time
of death of the member, and computed under section 354.44,
subdivision 2 or 6, whichever is applicable the age of the surviving
spouse at the time the benefit accrues.
(b) If the active or deferred member was under age 55
and the
age of the surviving spouse at the time the benefit accrues. If section 354.44, subdivision 6,
applies, the annuity is payable using the full early retirement reduction
under section 354.44, subdivision 6, has had credit for at least 30 years of allowable service on
the date of death, the surviving spouse may elect to receive the second
portion of a 100 percent joint and survivor annuity based on the age of the
active or deferred member and surviving spouse on the date of
death and paragraph clause (3)(ii), to
age 55 and one-half of the early retirement reduction from age 55 to the age
payment begins.
(c) If the active or deferred member was under age 55
and has had credit for at least three years of allowable service
on the date of death, but did not yet qualify for retirement, the
surviving spouse may elect to receive the second portion of a 100
percent joint and survivor annuity based on the age of the active or
deferred member and the surviving spouse at the time of death and
the age of the surviving spouse at the time the benefit accrues. If section 354.44, subdivision 6,
applies, the annuity is calculated using the full early retirement reduction
under section 354.44, subdivision 6, to age 55 and one-half of the early
retirement reduction from age 55 to the age the annuity begins. The surviving spouse eligible for a
surviving spouse benefit under paragraph (a) may apply for the annuity at any
time after the date on which the deceased employee would have attained the
required age for retirement based on the employee's allowable service.
(d) The surviving spouse eligible for surviving spouse
benefits under paragraph (b) or (c) this subdivision may apply
for the annuity any time after the member's death. This The benefit accrues from the day following
the date of the member's death but may not begin to accrue more than six
months before the date the application is filed with the executive director and
may not accrue before the member's death.
Sections 354.55, subdivision 11, and 354.60 apply to a deferred
annuity payable under this section.
The benefit is payable for life.
Any benefit under this subdivision is in lieu of benefits under
subdivision 1, if applicable, and in lieu of a refund of accumulated member
contributions under section 354.47, subdivision 1.
(e) For purposes of this subdivision, a designated
beneficiary must be a former spouse or a biological or adopted child of the
member.
Sec. 19. Minnesota
Statutes 2002, section 354.46, subdivision 2b, is amended to read:
Subd. 2b. [DEPENDENT
CHILD SURVIVOR COVERAGE.] If there is no surviving spouse eligible for benefits
under subdivision 2, a each dependent child or children as
defined in section 354.05, subdivision 8a, is eligible for monthly payments
surviving child benefits. Payments
Surviving child benefits to a dependent child must be paid from the date
of the member's death to the date the dependent child attains age 20 if the
child is under age 15 on the date of the member's death. If the child is 15 years or older on the
date of the member's death, payment must be made the surviving
child benefit is payable for five years.
The payment to a dependent surviving child benefit
is an amount actuarially equivalent to the value of a 100 percent optional
annuity under subdivision 2 calculated using the age of the member and
age of the dependent child at as of the date of death in lieu of
the age of the member and the spouse.
If there is more than one dependent child, each dependent child shall
is entitled to receive a proportionate share of the actuarial value of
the member's account.
Sec. 20. Minnesota
Statutes 2002, section 354.46, subdivision 5, is amended to read:
Subd. 5. [PAYMENT TO
DESIGNATED BENEFICIARY.] A member and who is single or, if the member
is married, a member and the spouse of the member jointly, may make
a joint specification in writing on a form prescribed by the executive
director that the benefits provided in subdivision 2, or in section 354.47,
subdivision 1, must be paid only to a designated beneficiary or to
designated beneficiaries. For
purposes of subdivision 2, a designated beneficiary may only be either a former
spouse or a biological or an adopted child of the member.
Sec. 21. Minnesota
Statutes 2002, section 354.46, is amended by adding a subdivision to read:
Subd. 6.
[APPLICATION.] (a) A beneficiary designation and an application for
benefits under this section must be in writing on a form prescribed by the
executive director.
(b) Sections 354.55, subdivision 11, and 354.60 apply to a
deferred annuity payable under this section.
(c) Unless otherwise specified, the annuity must be computed
under section 354.44, subdivision 2 or 6, whichever is applicable.
Sec. 22. Minnesota
Statutes 2002, section 356.441, is amended to read:
356.441 [REPAYMENT OF REFUNDS PAYMENT ACCEPTANCE
ALLOWED.]
Subdivision 1.
[PAYMENT AUTHORIZATION.] The repayment of a refund and interest
on that refund or the payment of equivalent contributions and interest for
an eligible leave of absence, as permitted under laws governing any public
pension plan in Minnesota, may be made:
(1) with funds distributed or transferred from a
plan qualified under the federal Internal Revenue Code of 1986, section 401,
subsection (a) or (k); 403; 408; or 457, subsection (b), as amended through
December 31, 1988, or an annuity qualified under the federal Internal Revenue
Code of 1986, section 403(a). Repayment
may also be made from time to time; or
(2) with funds distributed from an individual retirement
account used solely to receive a or individual retirement annuity, if
done solely in a manner that is eligible for treatment as a nontaxable
rollover from that type of a plan or annuity or transfer under the
applicable federal law. The
repaid refund
Subd. 2.
[SEPARATE ACCOUNTING REQUIREMENT.] Nontaxable rollovers or transfer
amounts under subdivision 1 received by a public pension fund must be
separately accounted for as member contributions not previously taxed. Before accepting any rollovers or
transfers to which this section applies, the executive director must shall
require the member to provide written documentation to demonstrate that the
amounts to be rolled over or transferred are eligible for a tax-free
rollover or transfer and qualify for that treatment under the federal
Internal Revenue Code of 1986, as amended.
Sec. 23. Minnesota
Statutes 2002, section 490.124, subdivision 12, is amended to read:
Subd. 12. [REFUND.] (a)
Any A person who ceases to be a judge but who does not qualify
for a retirement annuity or other benefit under section 490.121 shall be
is entitled to a refund in an amount equal to all the person's member's
employee contributions to the judges' retirement fund plus interest
computed to the first day of the month in which the refund is processed
based on fiscal year balances at an annual rate of five percent compounded
annually under section 352.22, subdivision 2.
(b) A refund of contributions under paragraph (a) terminates
all service credits and all rights and benefits of the judge and the judge's
survivors. A person who becomes a judge
again after taking a refund under paragraph (a) may reinstate the
previously terminated service credits, rights, and benefits by repaying all
refunds the total amount of the previously received refund. A The refund repayment must
include interest on the total amount previously received at an annual
rate of 8.5 percent compounded annually from the date on which the refund
was received until the date on which the refund is repaid.
Sec. 24. [TEACHERS
RETIREMENT ASSOCIATION; BENEFICIARY DESIGNATION.]
(a) An eligible person described in paragraph (b) is
entitled to make a specification that the benefits provided in Minnesota
Statutes, section 354.46, subdivision 2, or in Minnesota Statutes, section
354.47, subdivision 1, may be paid only to a designated beneficiary or
beneficiaries.
(b) An eligible person is a person who:
(1) was born on July 9, 1956;
(2) is employed as a teacher by Independent School District
No. 535, Rochester;
(3) is a member of the Teachers Retirement Association;
(4) has more than 19 years of allowable service credit in
the Teachers Retirement Association;
(5) has two minor children;
(6) has no potential surviving spouse by virtue of a prior
marriage dissolution; and
(7) has been diagnosed with a serious medical condition that
is life threatening.
(c) The designated beneficiary or beneficiaries may only be
a biological or adopted child, the biological or adopted children of the
eligible person, or a trust established for the child or children if the trust
is required to provide for the proper health, support, maintenance, and
education of the dependent child or children.
If two or more children are designated or if a trust established for
more than one child is designated, the benefit payable to or on behalf of each
child is an equal share of the total benefit.
(d) The specification must be made in writing on a form
prescribed by the executive director of the Teachers Retirement Association.
Sec. 25. [REPEALER.]
Minnesota Statutes 2002, section 354A.107, is repealed.
Sec. 26. [EFFECTIVE
DATE.]
(a) Sections 1 to 25 are effective on July 1, 2004.
(b) Sections 8 to 11 are not intended to increase, modify,
impair, or diminish the benefit entitlements specified in Minnesota Statutes,
chapter 352B. If the Minnesota State
Retirement System executive director determines that any provision of those
sections does increase, modify, impair, or diminish the benefit entitlements as
reflected in applicable law just prior to the effective date of this section,
the executive director shall certify that determination and a recommendation as
to the required legislative correction to the chairs of the Legislative
Commission on Pensions and Retirement, the house Governmental Operations
Committee, the senate Governmental Operations Committee, and the executive
director of the Legislative Commission on Pensions and Retirement.
(c) Consistent with Minnesota Statutes, section 645.21, and
public pension policy in general, the increased interest rate provided on a
refund under section 23 applies only to judges whose termination of service
occurs on or after July 1, 2004.
ARTICLE
10
FEDERAL
INTERNAL REVENUE
CODE
COMPLIANCE
Section 1. Minnesota
Statutes 2002, section 356.611, is amended by adding a subdivision to read:
Subd. 4.
[COMPENSATION.] (a) For purposes of this section, compensation means
a member's compensation actually paid or made available for any limitation year
determined as provided by Treasury Regulation Section 1.415-2(d)(10).
(b) Compensation for any period includes:
(1) any elective deferral as defined in section 402(g)(3) of
the Internal Revenue Code;
(2) any elective amounts that are not includable in a
member's gross income by reason of sections 125 or 457 of the Internal Revenue
Code; and
(3) any elective amounts that are not includable in a
member's gross income by reason of section 132(f)(4) of the Internal Revenue
Code.
Sec. 2. [356.635]
[INTERNAL REVENUE CODE COMPLIANCE.]
Subdivision 1.
[RETIREMENT BENEFIT COMMENCEMENT.] The retirement benefit of a member
who has terminated employment must begin no later than the later of April 1 of
the calendar year following the calendar year that the member attains the
federal minimum distribution age under section 401(a)(9) of the Internal
Revenue Code or April 1 of the calendar year following the calendar year in
which the member terminated employment.
Subd. 2.
[DISTRIBUTIONS.] Distributions shall be made as required under
section 401(a)(9) of the Internal Revenue Code and the treasury regulations
adopted under that section, including, but not limited to, the incidental death
benefit provisions of section 401(a)(9)(G) of the Internal Revenue Code.
Subd. 3. [DIRECT
ROLLOVERS.] A distributee may elect, at the time and in the manner
prescribed by the plan administrator, to have all or any portion of an eligible
rollover distribution paid directly to an eligible retirement plan as specified
by the distributee.
Subd. 4.
[ELIGIBLE ROLLOVER DISTRIBUTION.] An "eligible rollover
distribution" is any distribution of all or any portion of the balance to
the credit of the distributee.
Subd. 5.
[INELIGIBLE AMOUNTS.] An eligible rollover distribution does not
include:
(1) a distribution that is one of a series of substantially
equal periodic payments, receivable annually or more frequently, that is made
for the life or life expectancy of the distributee, the joint lives or joint
life expectancies of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more;
(2) a distribution that is required under section 401(a)(9) of
the Internal Revenue Code; or
(3) any other exception required by law or the Internal
Revenue Code.
Subd. 6.
[ELIGIBLE RETIREMENT PLAN.] (a) An "eligible retirement
plan" is:
(1) an individual retirement account under section 408(a) of
the Internal Revenue Code;
(2) an individual retirement annuity plan under section
408(b) of the Internal Revenue Code;
(3) an annuity plan under section 403(a) of the Internal
Revenue Code;
(4) a qualified trust plan under section 401(a) of the
Internal Revenue Code that accepts the distributee's eligible rollover
distribution;
(5) an annuity contract under section 403(b) of the Internal
Revenue Code; or
(6) an eligible deferred compensation plan under section
457(b) of the Internal Revenue Code, which is maintained by a state or local
government and which agrees to separately account for the amounts transferred
into the plan.
(b) For distributions of after-tax contributions which are
not includable in gross income, the after-tax portion may be transferred only
to an individual retirement account or annuity described in section 408(a) or
(b) of the Internal Revenue Code, or to a qualified defined contribution plan
described in either section 401(a), or section 403(a), of the Internal Revenue
Code, that agrees to separately account for the amounts transferred, including
separately accounting for the portion of the distribution which is includable
in gross income and the portion of the distribution which is not includable.
Subd. 7.
[DISTRIBUTEE.] A "distributee" is:
(1) an employee or a former employee;
(2) the surviving spouse of an employee or former employee;
or
(3) the former spouse of the employee or former employee who
is the alternate payee under a qualified domestic relations order as defined in
section 414(p) of the Internal Revenue Code, or who is a recipient of a
court-ordered equitable distribution of marital property, as provided in
section 518.58.
Subd. 8.
[FORFEITURES.] For defined benefit plans, unless otherwise permitted
by section 401(a)(8) of the Internal Revenue Code, forfeitures may not be
applied to increase the benefits that any employee would otherwise receive
under the plan.
Subd. 9.
[MILITARY SERVICE.] Contributions, benefits, and service credit with
respect to qualified military service must be provided according to section
414(u) of the Internal Revenue Code.
Sec. 3. [TRANSITIONAL
PROVISION.]
(a) An eligible rollover distribution under Minnesota
Statutes, section 356.635, does not include the portion of a distribution that
is not included in gross income.
(b) For eligible rollover distributions to a surviving
spouse, an eligible retirement plan under Minnesota Statutes, section 356.635,
is limited to an individual retirement account under section 408(a) of the
Internal Revenue Code or an individual retirement annuity plan under section
408(b) of the Internal Revenue Code.
Sec. 4. [EFFECTIVE
DATE.]
(a) Section 1, paragraph (a), is effective on July 1,
2004. Section 1, paragraph (b), is
effective retroactively as follows:
clauses (1) and (2) are effective for limitation years beginning on and
after January 1, 1998; and clause (3) is effective for limitation years
beginning on and after January 1, 2001.
(b) Sections 2 and 3 are effective on the day following
final enactment.
(c) Section 2 is effective retroactively as follows:
subdivision 1 is effective on and after January 1, 1989; subdivision 2 is
effective for distributions on and after December 31, 1989; subdivision 3 is
effective for distributions on and after January 1, 1993; subdivision 6,
paragraph (a), clauses (5) and (6), are effective for distributions made after
December 31, 2001; subdivision 6, paragraph (b), is effective for distributions
after December 31, 2001; and subdivision 9 is effective December 12, 1994.
(d) Section 3 is effective only for distributions made
before January 1, 2002.
ARTICLE
11
HEALTH
CARE SAVINGS
PLAN
MODIFICATIONS
Section 1. Minnesota
Statutes 2002, section 352.98, is amended to read:
352.98 [POSTRETIREMENT HEALTH CARE SAVINGS PLAN.]
Subdivision 1. [PLAN
CREATED.] The Minnesota State Retirement System shall establish a plan or
plans, known as postretirement health care savings plans, through which
public employers and employees may save to cover postretirement health
care costs. The Minnesota State
Retirement System shall make available one or more trusts, including a
governmental trust or governmental trusts, authorized under the Internal
Revenue Code to be eligible for tax-preferred or tax-free treatment through
which employers and employees can save to cover postretirement health
care costs.
Subd. 2. [CONTRACTING
AUTHORIZED.] The Minnesota State Retirement System is authorized to administer
the plan and to contract with public and private entities to provide investment
services, record keeping, benefit payments, and other functions necessary for
the administration of the plan. If
allowed by the Minnesota State Board of Investment, the Minnesota State Board
of Investment supplemental investment funds may be offered as investment
options under the postretirement health care savings plan or
plans.
Subd. 3.
[CONTRIBUTIONS.] (a) Contributions to the plan shall be determined
through a personnel policy or in a collective bargaining agreement of a public
employer with the exclusive representative of the covered employees in an
appropriate unit. The Minnesota State
Retirement System may offer different types of trusts permitted under the
Internal Revenue Code to best meet the needs of different employee units.
(b) Contributions to the plan by or on behalf of the employee
shall be held in trust for reimbursement of employee and dependent
health-related expenses following retirement from public employment or
during active employment. The
Minnesota State Retirement System shall maintain a separate account of the
contributions made by or on behalf of each participant and the earnings
thereon. The Minnesota State Retirement
System shall make available a limited range of investment options, and each
employee may direct the investment of the accumulations in the employee's
account among the investment options made available by the Minnesota State
Retirement System. At the request of a
participating employer and employee group, the Minnesota State Retirement
System may determine how the assets of the affected employer and employee group
should be invested.
(c) This section does not obligate a public employer to meet
and negotiate in good faith with the exclusive bargaining representative of any
public employee group regarding an employer contribution to a postretirement or
active employee health care savings plan authorized by this section and
section 356.24, subdivision 1, clause (7).
It is not the intent of the legislature to authorize the state to incur
new funding obligations for the costs of retiree health care or the costs of
administering retiree health care plans or accounts.
Subd. 4.
[REIMBURSEMENT FOR HEALTH-RELATED EXPENSES.] Following termination of
public service, The Minnesota State Retirement System shall reimburse
employees at least quarterly for submitted health-related expenses, as
required by federal and state law, until the employee exhausts the
accumulation in the employee's account.
If an employee dies prior to exhausting the employee's account balance,
the employee's spouse or dependents shall be eligible to be reimbursed for
health care expenses from the account until the account balance is
exhausted. If an account balance remains
after the death of a participant and all of the participant's legal dependents,
the remainder of the account shall be paid to the employee's beneficiaries or,
if none, to the employee's estate.
Subd. 5. [FEES.] The
Minnesota state retirement plan is authorized to charge uniform fees to
participants to cover the ongoing cost of operating the plan. Any fees not needed shall revert to
participant accounts or be used to reduce plan fees the following year. The Minnesota State Retirement System is
authorized to charge participating employers a fee, not to exceed one-sixth of
the Federal Insurance Contribution Act savings realized by the employer as a
result of participating in the plan, until the initial costs of establishing
the plan or plans authorized by this section are recovered, or $75,000,
whichever is less.
Subd. 6. [ADVISORY
COMMITTEE.] (a) The Minnesota State Retirement System shall establish a
participant advisory committee for the health care savings plan, made up
of one representative appointed by each employee unit participating in the
plan. Each participating unit shall be
responsible for the expenses of its own representative.
(b) The advisory committee shall meet at least twice per year
and shall be consulted on plan offerings and vendor selection. By October 1 of each year, the Minnesota
State Retirement System shall give the advisory committee a statement of fees
collected and the use of the fees.
Subd. 7. [CONTRACTING
WITH PRIVATE ENTITIES.] Nothing in this section shall prohibit employers from
contracting with private entities to provide for postretirement health
care reimbursement plans.
Sec. 2. [EFFECTIVE
DATE.]
Section 1 is effective on the day following final enactment.
ARTICLE
12
RETIREMENT
COVERAGE FOLLOWING
A
PRIVATIZATION
Section 1. Minnesota
Statutes 2003 Supplement, section 353F.02, subdivision 4, is amended to read:
Subd. 4. [MEDICAL
FACILITY.] "Medical facility" means:
(1) the Fair Oaks Lodge, Wadena;
(2) the Glencoe Area Health Center;
(2) (3) the Kanabec Hospital;
(4) the Luverne Public Hospital;
(5) the RenVilla Nursing Home; and
(3) (6) the Waconia-Ridgeview Medical Center;
and
(4) the Kanabec Hospital.
Sec. 2.
[PERA-GENERAL RETENTION OF PUBLIC EMPLOYEE STATUS FOR ANOKA ACHIEVE
PROGRAM EMPLOYEES.]
Subdivision 1.
[APPLICATION.] This section applies to a person who was:
(1) employed by Anoka County in connection with the Achieve
Program for adults with developmental disabilities on the day before operation
of the program is transferred to Achieve Services, Inc; and
(2) a member of the Public Employees Retirement Association
on December 31, 2003.
Subd. 2. [CONTINUATION OF COVERAGE.] For purposes of
participation in the coordinated plan of the Public Employees Retirement
Association, a person to whom this section applies is a "public
employee" under chapter 353, while employed by Achieve Services, Inc.,
which is a governmental subdivision under section 353.01, subdivision 6(a) for
the purposes of reporting contributions for those persons to whom this section
applies only.
Sec. 3. [PERA-GENERAL;
RETENTION OF PUBLIC EMPLOYEE COVERAGE FOR GOVERNMENT TRAINING SERVICES
EMPLOYEES.]
Subdivision 1.
[APPLICATION.] Notwithstanding any provision of Minnesota Statutes,
chapter 353, this section applies to a person who:
(1) was employed by the state and local government joint
powers organization, the Government Training Service, on the day before the
operation was transferred to a nonprofit organization, Government Training
Services;
(2) was a member of the general employees retirement plan of
the Public Employees Retirement Association; and
(3) is employed by Government Training Services.
Subd. 2.
[COVERAGE CONTINUATION.] (a) A person described in subdivision 1 is a
public employee for purposes of Minnesota Statutes, section 353.01, subdivision
2, and is eligible to continue participation in the coordinated program of the
general employees retirement plan of the Public Employees Retirement
Association.
(b) While employing a person described in subdivision 1,
Government Training Services is a governmental subdivision for purposes of
Minnesota Statutes, section 353.01, subdivision 6, paragraph (a).
Sec. 4. [EFFECTIVE
DATE.]
(a) Section 1, relating to the Fair Oaks Lodge, Wadena, is
effective upon the latter of:
(1) the day after the governing body of Todd County and its
chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3; and
(2) the day after the governing body of Wadena County and
its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
(b) Section 1, relating to the RenVilla Nursing Home, is
effective upon the latter of:
(1) the day after the governing body of the city of Renville
and its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month next
following certification to the governing body of the city of Renville by the
executive director of the Public Employees Retirement Association that the
actuarial accrued liability of the special benefit coverage proposed for
extension to the privatized RenVilla Nursing Home employees under section 1 does
not exceed the actuarial gain otherwise to be accrued by the Public Employees
Retirement Association, as calculated by the consulting actuary retained by the
Legislative Commission on Pensions and Retirement.
(c) The cost of the actuarial calculations must be borne by
the city of Renville or the purchaser of the RenVilla Nursing Home.
(d) If the required actions under paragraphs (b) and (c)
occur, section 1 applies retroactively to the RenVilla Nursing Home as of the
date of privatization.
(e) If the required actions under paragraph (a) occur,
section 1 applies retroactively to Fair Oaks Lodge, Wadena, as of January 1,
2004.
(f) Sections 2 and 3 are effective on the day following
final enactment.
ARTICLE
13
MINNEAPOLIS
FIREFIGHTERS RELIEF ASSOCIATION
Section 1. Minnesota
Statutes 2003 Supplement, section 423C.03, subdivision 3, is amended to read:
Subd. 3. [COMPENSATION
OF OFFICERS AND BOARD MEMBERS.] (a) Notwithstanding any other law to the
contrary, the association may provide for payment of the following
salaries to its officers and board members: as specified in this
subdivision.
(1) (b) If the executive secretary is not an
active member, the executive secretary may receive a salary to be set by
the board, subject to the limitations stated in paragraph (d). If the executive secretary is an active
member, the executive secretary may receive a salary not exceeding 50
percent of the maximum salary of a first grade firefighter;.
(2) (c) The president may receive a salary not exceeding
ten percent of the maximum salary of a first grade firefighter;,
and
(3) all other elected members of the board, other
than the executive secretary, may receive a salary not exceeding 2.5
percent of the maximum salary of a first grade firefighter.
(d) If the executive secretary is not an active member, the
executive secretary's salary may not exceed the highest salary currently
received by the executive director of the Minnesota State Retirement System,
the Public Employees Retirement Association, or the Teachers Retirement
Association.
Sec. 2. [EFFECTIVE
DATE.]
Section 1 is effective on the day on which the Minneapolis
City Council and the chief clerical officer of the city of Minneapolis complete
in a timely manner the requirements of Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
ARTICLE
14
VOLUNTEER
FIREFIGHTER RELIEF
ASSOCIATION
CHANGES
Section 1. Minnesota
Statutes 2002, section 424A.02, subdivision 2, is amended to read:
Subd. 2.
[NONFORFEITABLE PORTION OF SERVICE PENSION.] If the articles of
incorporation or bylaws of a relief association so provide, a relief
association may pay a reduced service pension to a retiring member who has
completed fewer than 20 years of service.
The reduced service pension may be paid when the retiring member meets
the minimum age and service requirements of subdivision 1.
The amount of the reduced service pension may not exceed the
amount calculated by multiplying the service pension appropriate for the
completed years of service as specified in the bylaws times the applicable
nonforfeitable percentage of pension.
For a volunteer firefighter relief association that pays a
lump sum service pension, a monthly benefit service pension, or a lump sum
service pension or a monthly benefit service pension as alternative benefit
forms, the nonforfeitable percentage of pension amounts are as follows:
Completed Years Nonforfeitable
Percentage
of Service of
Pension Amount
5
40 percent
6
44 percent
7
48 percent
8
52 percent
9
56 percent
10
60 percent
11
64 percent
12
68 percent
13
72 percent
14
76 percent
15
80 percent
16
84 percent
17
88 percent
18 92 percent
19
96 percent
20 and thereafter 100 percent
For a volunteer firefighter relief association that pays a
defined contribution service pension, the nonforfeitable percentage of pension
amounts are as follows:
Completed Years Nonforfeitable Percentage
of Service of
Pension Amount
5
40 percent
6
52 percent
7
64 percent
8
76 percent
9
88 percent
10 and thereafter 100 percent
Sec. 2. Minnesota
Statutes 2002, section 424A.02, subdivision 7, is amended to read:
Subd. 7. [DEFERRED
SERVICE PENSIONS.] (a) A member of a relief association to which this section
applies is entitled to a deferred service pension if the member:
(1) has completed the lesser of the minimum period of active
service with the fire department specified in the bylaws or 20 years of active
service with the fire department;
(2) has completed at least five years of active membership in
the relief association; and
(3) separates from active service and membership before
reaching age 50 or the minimum age for retirement and commencement of a service
pension specified in the bylaws governing the relief association if that age is
greater than age 50.
(b) The deferred service pension starts when the former member
reaches age 50 or the minimum age specified in the bylaws governing the relief
association if that age is greater than age 50 and when the former member makes
a valid written application.
(c) A relief association that provides a lump sum service
pension may, when its governing bylaws so provide, pay interest on the deferred
lump sum service pension during the period of deferral. If provided for in the bylaws, interest must
be paid in one of the following manners:
(1) at the investment performance rate actually
earned on that portion of the assets if the deferred benefit amount is invested
by the relief association in a separate account established and maintained by
the relief association or if the deferred benefit amount is invested in
a separate investment vehicle held by the relief association or, if not,;
(2) at the interest rate of five percent, compounded
annually; or
(3) at a rate equal to the actual time weighted total rate
of return investment performance of the special fund as reported by the office
of the state auditor under section 356.219, up to five percent, compounded
annually, and applied consistently for all deferred service pensioners.
(d) A relief association may not use the method provided for
in paragraph (c), clause (3), until it has modified its bylaws to be consistent
with that clause.
(e) For a deferred service pension that is transferred
to a separate account established and maintained by the relief association or
separate investment vehicle held by the relief association, the deferred member
bears the full investment risk subsequent to transfer and in calculating the accrued
liability of the volunteer firefighters relief association that pays a lump sum
service pension, the accrued liability for deferred service pensions is equal
to the separate relief association account balance or the fair market value of
the separate investment vehicle held by the relief association.
(e) (f) The deferred service pension is governed
by and must be calculated under the general statute, special law, relief
association articles of incorporation, and relief association bylaw provisions
applicable on the date on which the member separated from active service with
the fire department and active membership in the relief association.
Sec. 3. [MARINE ON ST.
CROIX VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION; EARLY VESTING.]
(a) Notwithstanding Minnesota Statutes, section 424A.02,
subdivision 2, to the contrary, the Marine on St. Croix Volunteer Firefighters
Relief Association may utilize an early vesting schedule as provided in
paragraphs (b) and (c).
(b) If the articles of incorporation or bylaws of the Marine
on St. Croix Volunteer Firefighters Relief Association so provide, the relief
association may pay a reduced service pension to a retiring member who has
completed fewer than ten years of service.
The reduced service pension may be paid when the retiring member meets
the minimum age and service requirements of Minnesota Statutes, section
424A.02, subdivision 1.
(c) The amount of the reduced service pension may not exceed
the amount calculated by multiplying the service pension appropriate for the
completed years of service as specified in the articles of incorporation or
bylaws by the applicable nonforfeitable percentage of the service pension
amount. The nonforfeitable percentage
of service pension amounts are as follows:
Completed years Nonforfeitable percentage
of service of service pension amount
5
40 percent
6
52 percent
7
64 percent
8
76 percent
9
88 percent
10 and
100 percent
thereafter
Sec. 4. [BELLINGHAM
FIREFIGHTER RELIEF ASSOCIATION; RATIFICATION OF PRIOR ANNUITY INVESTMENTS.]
Notwithstanding Minnesota Statutes, section 356A.06,
subdivision 7, any annuity purchases by the Bellingham Firefighters Relief
Association prior to the effective date of this section are ratified as permissible
investments.
Sec. 5. [STUDY OF
STATEWIDE LUMP SUM VOLUNTEER FIREFIGHTER RETIREMENT PLAN; CREATION OF TASK
FORCE.]
Subdivision 1.
[TASK FORCE MEMBERSHIP.] (a) A statewide Volunteer Firefighter
Retirement Plan Study Task Force is created.
(b) The task force members are:
(1) four members appointed by the president of the Minnesota
Area Relief Association coalition;
(2) four members appointed by the president of the Minnesota
State Fire Department Association;
(3) four members appointed by the president of the Minnesota
State Fire Chiefs Association;
(4) four members appointed by the board of directors of the
League of Minnesota Cities;
(5) two members appointed by the board of directors of the
Insurance Federation of Minnesota;
(6) two members appointed by the board of directors of the
Minnesota Association of Farm Mutual Insurance Companies; and
(7) the Minnesota state auditor or the auditor's designee.
(c) Appointments must be made on or before July 1,
2004. If the appointment is not made in
a timely manner, or if there is a vacancy, the state auditor shall appoint the
task force member or the replacement member.
(d) The chair of the task force shall be selected by the
task force.
(e) Administrative services for the task force must be
provided by the Department of Public Safety.
Subd. 2. [TASK
FORCE DUTIES.] The task force shall conduct fact finding regarding the
creation of a statewide volunteer firefighter retirement plan.
The task force shall recommend the investment vehicle or
vehicles to be utilized by the plan, the administration and corporate
governance structure of the plan, the incentives needed to formulate the plan,
the limitations applicable to the plan, and the state resources needed to be
dedicated to the plan.
Subd. 3.
[REPORT.] The task force shall prepare a report detailing its
findings about a potential statewide volunteer firefighter retirement
plan. The report is due January 15,
2005, and must be filed with the Legislative Reference Library; the chair of
the Legislative Commission on Pensions and Retirement; the chair of the State
and Local Governmental Operations Committee of the senate; the chair of the
State Government, Economic Development, and Judiciary Budget Division of the
Senate Finance Committee; the chair of the Governmental Operations and Veterans
Affairs Policy Committee of the house of representatives; and the chair of the
State Government Finance Committee of the house of representatives.
Sec. 6.
[APPROPRIATION.]
$40,000 is appropriated from the general fund in fiscal year
2005 to the commissioner of public safety to hire a consultant to assist the
statewide Volunteer Firefighter Retirement Plan Study Task Force.
Sec. 7. [EFFECTIVE
DATE.]
Sections 1, 2, 5, and 6 are effective on July 1, 2004.
(b) Section 3 is effective on the day after the date on
which the city council of the city of Marine on St. Croix and the chief
clerical officer of the city of Marine on St. Croix comply with Minnesota
Statutes, section 645.02, subdivisions 2 and 3.
(c) Section 4 is effective on the day following final
enactment.
(d) The deferred service pension interest crediting
procedure of Minnesota Statutes, section 424A.02, subdivision 7, paragraph (c),
clause (3), expires on December 31, 2008.
ARTICLE
15
PERA
POLICE AND FIRE PLAN
MEMBERSHIP
INCLUSIONS
Section 1. Minnesota
Statutes 2003 Supplement, section 353.01, subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL
SUBDIVISION.] (a) "Governmental subdivision" means a county, city,
town, school district within this state, or a department or unit of state
government, or any public body whose revenues are derived from taxation, fees,
assessments or from other sources.
(b) Governmental subdivision also means the Public Employees
Retirement Association, the League of Minnesota Cities, the Association of
Metropolitan Municipalities, public hospitals owned or operated by, or an
integral part of, a governmental subdivision or governmental subdivisions, the
Association of Minnesota Counties, the Metropolitan Intercounty Association,
the Minnesota Municipal Utilities Association, the Metropolitan Airports
Commission, the Minneapolis Employees Retirement Fund for employment initially
commenced after June 30, 1979, the Range Association of Municipalities and
Schools, soil and water conservation districts, economic development
authorities created or operating under sections 469.090 to 469.108, the Port
Authority of the city of St. Paul, the Spring Lake Park Fire Department,
incorporated, the Lake Johanna Volunteer Fire Department, incorporated,
the Red Wing Environmental Learning Center, and the Dakota County Agricultural
Society.
(c) Governmental subdivision does not mean any municipal
housing and redevelopment authority organized under the provisions of sections
469.001 to 469.047; or any port authority organized under sections 469.048 to
469.089 other than the Port Authority of the city of St. Paul; or any hospital
district organized or reorganized prior to July 1, 1975, under sections 447.31
to 447.37 or the successor of the district, nor the Minneapolis Community
Development Agency.
Sec. 2. [EFFECTIVE
DATE.]
Section 1 is effective on the day following final enactment.
ARTICLE 16
ONE
PERSON AND SMALL GROUP
PENSION
CHANGES
Section 1.
[PERA-GENERAL; PURCHASE OF PRIOR SERVICE CREDIT.]
(a) An eligible person described in paragraph (b) is
entitled to purchase up to 33 months of allowable service credit from the
general employees retirement plan of the Public Employees Retirement
Association. The service credit
purchase under this section must be made in accordance with Minnesota Statutes,
section 356.55 or 356.551, whichever applies.
(b) An eligible person is a person who:
(1) is currently a member of the Teachers Retirement
Association;
(2) was employed by Independent School District No. 621,
Mounds View, from May 1968 to December 1971, but was not covered by the general
employees retirement plan of the Public Employees Retirement Association;
(3) was employed by Independent School District No. 31,
Bemidji, but was not covered by the general employees retirement plan of the
Public Employees Retirement Association;
(4) was employed as a special education teacher by
Independent School District No. 12, Centennial, for the 1974-1975 school year
and for the 1977-1978, 1978-1979, and 1979-1980 school years;
(5) was employed as a special education teacher by
Independent School District No. 16, Spring Lake Park, for the 1975-1976 school
year;
(6) was employed as a special education teacher by
Independent School District No. 138, North Branch, for the 1980-1981,
1981-1982, 1982-1983, 1983-1984, 1984-1985, and 1985-1986 school years; and
(7) has been employed by Independent School District No. 11,
Anoka-Hennepin, since the 1986-1987 school year.
(c) An eligible person described in paragraph (b) must apply
with the executive director of the Public Employees Retirement Association to
make the service credit purchase under this section. The application must be in writing and must include all necessary
documentation of the applicability of this section, documentation of the
eligible person's eligibility for retirement coverage by the general employees
retirement plan of the Public Employees Retirement Association if the
employment had been properly reported to the association at the time the
employment was rendered, and any other relevant information that the executive
director may require.
Sec. 2. [PERA-GENERAL
EMPLOYEES RETIREMENT PLAN COVERAGE TERMINATION AUTHORIZATION.]
Subdivision 1.
[ELIGIBILITY.] (a) An eligible person specified in paragraph (b) is
authorized to apply for a retirement annuity from the public employees police
and fire retirement plan, provided that the necessary age and service
requirements are met, under Minnesota Statutes, section 353.651, as further
specified under subdivision 2.
(b) An eligible person is a person who:
(1) was born on October 10, 1956;
(2) was employed as a police officer
by the city of Red Wing;
(3) was elected to the Goodhue County Board of Commissioners
in November 1998; and
(4) elected under the law then applicable to have retirement
coverage by the general employees retirement plan of the Public Employees
Retirement Association for the county board service.
Subd. 2.
[RETIREMENT ANNUITY.] (a) Notwithstanding an irrevocable election to
participate in the general employees retirement plan of the Public Employees
Retirement Association as an elected official and the person's continuation of
elected service, an eligible person under subdivision 1, paragraph (b), is
deemed to have terminated retirement plan membership under Minnesota Statutes,
section 353.01, subdivision 11b, on the first day of the first pay period next
following the date of enactment.
(b) Upon the change in retirement coverage status under
paragraph (a), the eligible person may apply for a retirement annuity under
Minnesota Statutes, section 353.651. In
computing that annuity, the Public Employees Retirement Association must
exclude the salary that was attributable to the Goodhue County board
service. The deferred annuity
augmentation under Minnesota Statutes, section 353.71, applies to the annuity
under this subdivision.
Subd. 3.
[TREATMENT OF GOODHUE COUNTY BOARD CONTRIBUTIONS TO PERA.] (a) All
member contributions by the eligible person to the coordinated program of the
general employee retirement plan of the Public Employees Retirement Association
attributable to the Goodhue County board elected service, and all corresponding
employer contributions, must be determined.
(b) An eligible person described in subdivision 1, paragraph
(b), must elect, within 90 days of the change in retirement coverage status
under paragraph (a), between receiving a refund under Minnesota Statutes,
section 353.34, subdivision 2, of the member contributions determined under
paragraph (a) or having coverage by the public employees defined contribution
plan under Minnesota Statutes, chapter 353D, as further specified in paragraph
(c).
(c) If coverage by the public employees defined contribution
plan is elected under paragraph (b), contributions to that plan commence as of
the first day of the first pay period following the election, and the
accumulated member and employer contributions determined under paragraph (a)
must be transferred with annual compound interest at the rate of six percent to
an account established for the eligible person in its public employees defined
contribution plan.
(d) If no election is made by an eligible person by the
required date in paragraph (b), the individual is assumed to have elected the
refund indicated in paragraph (b).
(e) Upon an election under paragraph (b), or upon a
mandatory refund under paragraph (d), all rights in the Public Employees
Retirement Association coordinated plan due to elected Goodhue County board
service are forfeited and may not be reestablished.
Sec. 3. [EFFECTIVE
DATE.]
Sections 1 and 2 are effective on the day following final
enactment.
ARTICLE
17
PRIOR
SERVICE CREDIT PURCHASES
Section 1. Minnesota
Statutes 2002, section 352.275, subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A state employee who has at
least three years of allowable service with the Minnesota State Retirement
System and who performed service in the United States armed forces before
becoming a state employee, or who failed to obtain service credit for a
military leave of absence under section 352.27, is entitled to purchase
allowable service credit for the initial period of enlistment, induction, or
call to active duty without any voluntary extension by making payment under
section 356.55 if the employee is not entitled to receive a current or
deferred retirement annuity from a United States armed forces pension plan and
has not purchased service credit from any other defined benefit public employee
pension plan for the same period of service.
Sec. 2. Minnesota
Statutes 2002, section 352B.01, subdivision 3a, is amended to read:
Subd. 3a. [UNCREDITED
MILITARY SERVICE CREDIT PURCHASE.] (a) A member who has at least three years of
allowable service with the State Patrol retirement plan under subdivision 3 and
who performed service in the United States armed forces before becoming a
member is entitled to purchase allowable service credit for the initial period
of enlistment, induction, or call to active duty without any voluntary
extension by making payment under section 356.55, if the employee is not
entitled to receive a current or deferred retirement annuity from a United
States armed forces pension plan and has not purchased service credit from any
other defined benefit public employee pension plan for the same period of
service.
(b) A member who desires to purchase service credit under paragraph
(a) must apply with the executive director to make the purchase. The application must include all necessary
documentation of the member's qualifications to make the purchase, signed
written permission to allow the executive director to request and receive
necessary verification of applicable facts and eligibility requirements, and
any other relevant information that the executive director may require.
(c) Allowable service credit for the purchase period must be
granted by the State Patrol retirement plan to the purchasing employee upon
receipt of the purchase payment amount.
Payment must be made before the effective date of retirement of the
member.
Sec. 3. Minnesota
Statutes 2002, section 353.01, subdivision 16a, is amended to read:
Subd. 16a. [UNCREDITED
MILITARY SERVICE CREDIT PURCHASE.] (a) A public employee who has at least three
years of allowable service with the Public Employees Retirement Association or
the public employees police and fire plan and who performed service in the United
States armed forces before becoming a public employee, or who failed to obtain
service credit for a military leave of absence under subdivision 16, paragraph
(h), is entitled to purchase allowable service credit for the initial period of
enlistment, induction, or call to active duty without any voluntary extension
by making payment under section 356.55 if the public employee is not
entitled to receive a current or deferred retirement annuity from a United
States armed forces pension plan and has not purchased service credit from any
other defined benefit public employee pension plan for the same period of
service.
(b) A public employee who desires to purchase service credit
under paragraph (a) must apply with the executive director to make the purchase. The application must include all necessary
documentation of the public employee's qualifications to make the purchase,
signed written permission to allow the executive director to request and
receive necessary verification of applicable facts and eligibility
requirements, and any other relevant information that the executive director
may require.
(c) Allowable service credit for the purchase period must be
granted by the public employees association or the public employees police and
fire plan, whichever applies, to the purchasing public employee upon receipt of
the purchase payment amount. Payment
must be made before the effective date of retirement of the public employee.
Sec. 4.
Minnesota Statutes 2002, section 354.533, subdivision 1, is amended to
read:
Subdivision 1. [SERVICE
CREDIT PURCHASE AUTHORIZED.] A teacher who has at least three years of
allowable service credit with the Teachers Retirement Association and who
performed service in the United States armed forces before becoming a teacher
as defined in section 354.05, subdivision 2, or who failed to obtain service
credit for a military leave of absence under the provisions of section 354.53,
is entitled to purchase allowable and formula service credit for the initial
period of enlistment, induction, or call to active duty without any voluntary
extension by making payment under section 356.55 provided the teacher is not
entitled to receive a current or deferred retirement annuity from a United
States armed forces pension plan and has not purchased service credit from any
other defined benefit public employee pension plan for the same period of
service.
Sec. 5. Minnesota
Statutes 2002, section 354A.097, subdivision 1, is amended to read:
Subdivision 1. [SERVICE
CREDIT PURCHASE AUTHORIZED.] A teacher who has at least three years of
allowable service credit with the teachers retirement fund association and who
performed service in the United States armed forces before becoming a teacher
as defined in section 354A.011, subdivision 27, or who failed to obtain service
credit for a military leave of absence period under section 354A.093, is
entitled to purchase allowable service credit for the initial period of
enlistment, induction, or call to active duty without any voluntary extension by
making payment under section 356.55, provided the teacher is not entitled to
receive a current or deferred retirement annuity from a United States armed
forces pension plan and has not purchased service credit from another defined
benefit public employee pension plan for the same period of service.
Sec. 6. Laws 1999,
chapter 222, article 16, section 16, as amended by Laws 2002, chapter 392,
article 7, section 1, and Laws 2003, First Special Session chapter 12, article
6, section 2, is amended to read:
Sec. 16. [REPEALER.]
(a) Sections 1 2 to 6 and 8 to 13
are repealed on May 16, 2004.
(b) Sections 1 and 7 are repealed on May 16, 2006.
Sec. 7. Laws 2000,
chapter 461, article 4, section 4, as amended by Laws 2003, First Special
Session chapter 12, article 6, section 4, is amended to read:
Sec. 4. [EFFECTIVE DATE;
SUNSET REPEALER.]
(a) Sections 1, 2, and 3 are effective on the day
following final enactment.
(b) Sections 1, 2, and 3 are repealed on May 16, 2004.
Sec. 8. [EFFECTIVE
DATE.]
Sections 1 to 7 are effective on the day following final
enactment.
ARTICLE
18
PROVISION
OF ACTUARIAL SERVICES
Section 1. Minnesota
Statutes 2002, section 352.03, subdivision 6, is amended to read:
Subd. 6.
[DUTIES AND POWERS OF EXECUTIVE DIRECTOR.] The management of the system
is vested in the director, who is the executive and administrative head of the
system. The director shall be advisor
to the board on matters pertaining to the system and shall also act as the
secretary of the board. The director
shall:
(1) attend meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out this chapter;
(3) establish and maintain an adequate system of records and
accounts following recognized accounting principles and controls;
(4) designate an assistant director with the approval of the
board;
(5) appoint any employees, both permanent and temporary, that
are necessary to carry out the provisions of this chapter;
(6) organize the work of the system as the director deems
necessary to fulfill the functions of the system, and define the duties of its
employees and delegate to them any powers or duties, subject to the control of
the director and under conditions the director may prescribe. Appointments to exercise delegated power
must be by written order and shall be filed with the secretary of state;
(7) with the advice and consent of the board, contract for the
services of an approved actuary, professional management services, and any
other consulting services as necessary and fix the compensation for those
services. The contracts are not subject
to competitive bidding under chapter 16C.
Any approved actuary retained by the executive director shall function
as the actuarial advisor of the board and the executive director, and may
perform actuarial valuations and experience studies to supplement those
performed by the actuary retained by the legislative commission on pensions
and retirement under section 6.
Any supplemental actuarial valuations or experience studies shall be
filed with the executive director of the Legislative Commission on Pensions and
Retirement. Professional management
services may not be contracted for more often than once in six years. Copies of professional management survey
reports must be transmitted to the secretary of the senate, the chief clerk of
the house of representatives, and the legislative reference library as provided
by section 3.195, and to the executive director of the commission at the time
as reports are furnished to the board.
Only management firms experienced in conducting management surveys of
federal, state, or local public retirement systems are qualified to contract
with the director;
(8) with the advice and consent of the board provide in-service
training for the employees of the system;
(9) make refunds of accumulated contributions to former state
employees and to the designated beneficiary, surviving spouse, legal
representative, or next of kin of deceased state employees or deceased former
state employees, as provided in this chapter;
(10) determine the amount of the annuities and disability
benefits of employees covered by the system and authorize payment of the
annuities and benefits beginning as of the dates on which the annuities and
benefits begin to accrue, in accordance with the provisions of this chapter;
(11) pay annuities, refunds, survivor benefits, salaries, and
necessary operating expenses of the system;
(12) certify funds available for investment to the State Board
of Investment;
(13) with the advice and approval of the board request the
State Board of Investment to sell securities when the director determines that
funds are needed for the system;
(14) prepare and submit to the board and
the legislature an annual financial report covering the operation of the
system, as required by section 356.20;
(15) prepare and submit biennial and annual budgets to the
board and with the approval of the board submit the budgets to the Department
of Finance; and
(16) with the approval of the board, perform other duties
required to administer the retirement and other provisions of this chapter and
to do its business.
Sec. 2. Minnesota
Statutes 2002, section 352B.02, subdivision 1e, is amended to read:
Subd. 1e. [AUDIT;
ACTUARIAL VALUATION.] The legislative auditor shall audit the fund. Any actuarial valuation of the fund required
under section 356.215 shall must be prepared by the actuary
retained by the Legislative Commission on Pensions and Retirement under
section 6. Any approved actuary
retained by the executive director under section 352.03, subdivision 6, may
perform actuarial valuations and experience studies to supplement those
performed by the commission-retained actuary.
Any supplemental actuarial valuation or experience studies shall be
filed with the executive director of the Legislative Commission on Pensions and
Retirement.
Sec. 3. Minnesota
Statutes 2002, section 353.03, subdivision 3a, is amended to read:
Subd. 3a. [EXECUTIVE
DIRECTOR.] (a) [APPOINTMENT.] The board
shall appoint, with the advice and consent of the senate, an executive director
on the basis of education, experience in the retirement field, and leadership
ability. The executive director shall
have had at least five years' experience in an executive level management
position, which has included responsibility for pensions, deferred
compensation, or employee benefits. The
executive director serves at the pleasure of the board. The salary of the executive director is as
provided by section 15A.0815.
(b) [DUTIES.] The
management of the association is vested in the executive director who shall be
the executive and administrative head of the association. The executive director shall act as adviser
to the board on all matters pertaining to the association and shall also act as
the secretary of the board. The
executive director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out the provisions of this chapter;
(3) establish and maintain an adequate system of records and
accounts following recognized accounting principles and controls;
(4) designate, with the approval of the board, up to two
persons who shall serve in the unclassified service and whose salary is set in
accordance with section 43A.18, subdivision 3, appoint a confidential secretary
in the unclassified service, and appoint employees to carry out this chapter,
who are subject to chapters 43A and 179A in the same manner as are executive
branch employees;
(5) organize the work of the association as the director deems
necessary to fulfill the functions of the association, and define the duties of
its employees and delegate to them any powers or duties, subject to the control
of, and under such conditions as, the executive director may prescribe;
(6) with the approval of the board, contract for the services
of an approved actuary, professional management services, and any other
consulting services as necessary to fulfill the purposes of this chapter. All contracts are subject to chapter
16C. The commissioner of administration
shall not approve, and the association shall not enter into, any contract to provide
lobbying services or legislative advocacy of any kind. Any approved actuary retained by the
executive director shall function as the actuarial advisor of the board and the
executive director and may perform actuarial valuations and experience studies
to supplement those performed by the actuary retained by the Legislative
Commission on Pensions and Retirement under section 6. Any supplemental actuarial valuations or
experience studies shall be filed with the executive director of the
Legislative Commission on Pensions and Retirement. Copies of professional management survey reports shall be transmitted
to the secretary of the senate, the chief clerk of the house of
representatives, and the Legislative Reference Library as provided by section
3.195, and to the executive director of the commission at the same time as
reports are furnished to the board.
Only management firms experienced in conducting management surveys of
federal, state, or local public retirement systems shall be qualified to
contract with the director hereunder;
(7) with the approval of the board provide in-service training
for the employees of the association;
(8) make refunds of accumulated contributions to former members
and to the designated beneficiary, surviving spouse, legal representative or
next of kin of deceased members or deceased former members, as provided in this
chapter;
(9) determine the amount of the annuities and disability
benefits of members covered by the association and authorize payment of the
annuities and benefits beginning as of the dates on which the annuities and
benefits begin to accrue, in accordance with the provisions of this chapter;
(10) pay annuities, refunds, survivor benefits, salaries, and
necessary operating expenses of the association;
(11) prepare and submit to the board and the legislature an
annual financial report covering the operation of the association, as required
by section 356.20;
(12) prepare and submit biennial and annual budgets to the
board for its approval and submit the approved budgets to the department of
finance for approval by the commissioner;
(13) reduce all or part of the accrued interest payable under
section 353.27, subdivisions 12, 12a, and 12b, or 353.28, subdivision 5, upon
receipt of proof by the association of an unreasonable processing delay or
other extenuating circumstances of the employing unit. The executive director shall prescribe and
submit for approval by the board the conditions under which such interest may
be reduced; and
(14) with the approval of the board, perform such other duties
as may be required for the administration of the association and the other
provisions of this chapter and for the transaction of its business.
Sec. 4. Minnesota
Statutes 2002, section 354.06, subdivision 2a, is amended to read:
Subd. 2a. [DUTIES OF
EXECUTIVE DIRECTOR.] The management of the association is vested in the
executive director who shall be the executive and administrative head of the
association. The executive director
shall act as advisor to the board on all matters pertaining to the association
and shall also act as the secretary of the board. The executive director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out the provisions of this chapter;
(3) establish and maintain an adequate system of records and
accounts following recognized accounting principles and controls;
(4) designate an assistant executive director in the
unclassified service and two assistant executive directors in the classified
service with the approval of the board, and appoint such employees, both
permanent and temporary, as are necessary to carry out the provisions of this
chapter;
(5) organize the work of the association as the director deems
necessary to fulfill the functions of the association, and define the duties of
its employees and delegate to them any powers or duties, subject to the
director's control and under such conditions as the director may prescribe;
(6) with the approval of the board, contract and set the
compensation for the services of an approved actuary, professional management
services, and any other consulting services.
These contracts are not subject to the competitive bidding procedure
prescribed by chapter 16C. An approved
actuary retained by the executive director shall function as the actuarial advisor
of the board and the executive director and may perform actuarial valuations
and experience studies to supplement those performed by the actuary retained by
the legislative commission on pensions and retirement under section 6. Any supplemental actuarial valuations or
experience studies shall be filed with the executive director of the
Legislative Commission on Pensions and Retirement. Copies of professional management survey reports must be
transmitted to the secretary of the senate, the chief clerk of the house of
representatives, and the legislative reference library as provided by section
3.195, and to the executive director of the commission at the same time as
reports are furnished to the board.
Only management firms experienced in conducting management surveys of
federal, state, or local public retirement systems are qualified to contract
with the executive director;
(7) with the approval of the board, provide in-service training
for the employees of the association;
(8) make refunds of accumulated contributions to former members
and to the designated beneficiary, surviving spouse, legal representative, or
next of kin of deceased members or deceased former members, under this chapter;
(9) determine the amount of the annuities and disability
benefits of members covered by the association and authorize payment of the
annuities and benefits beginning as of the dates on which the annuities and
benefits begin to accrue, under this chapter;
(10) pay annuities, refunds, survivor benefits, salaries, and
necessary operating expenses of the association;
(11) prepare and submit to the board and the legislature an
annual financial report covering the operation of the association, as required
by section 356.20;
(12) certify funds available for investment to the state board
of investment;
(13) with the advice and approval of the board, request the
State Board of Investment to sell securities on determining that funds are
needed for the purposes of the association;
(14) prepare and submit biennial and annual budgets to the
board and with the approval of the board submit those budgets to the department
of finance; and
(15) with the approval of the board, perform such other duties
as may be required for the administration of the association and the other
provisions of this chapter and for the transaction of its business. The executive director may:
(i) reduce all or part of the accrued interest and fines
payable by an employing unit for reporting requirements under section 354.52,
based on an evaluation of any extenuating circumstances of the employing unit;
(ii) assign association employees to conduct field audits of
an employing unit to ensure compliance with the provisions of this chapter; and
(iii) recover overpayments, if not repaid to the association,
by suspending or reducing the payment of a retirement annuity, refund,
disability benefit, survivor benefit, or optional annuity under this chapter
until the overpayment, plus interest, has been recovered.
Sec. 5. Minnesota Statutes
2002, section 354A.021, subdivision 7, is amended to read:
Subd. 7. [ACTUARIAL
CONSULTANT.] The board of trustees or directors of each teachers retirement
fund association may contract for the services of an approved actuary and fix
the reasonable compensation for those services. Any approved actuary retained by the board shall function as the
actuarial advisor to the board and may perform actuarial valuations and
experience studies to supplement those performed by the actuary retained by
the Legislative Commission on Pensions and Retirement under section 6. Any supplemental actuarial valuations or
experience studies shall must be filed with the executive
director of the Legislative Commission on Pensions and Retirement.
Sec. 6. [356.214] [ACTUARIAL
VALUATION PREPARATION; JOINT RETENTION OF CONSULTING ACTUARY.]
Subdivision 1.
[JOINT RETENTION.] (a) The chief administrative officers of the
Minnesota State Retirement System, the Public Employees Retirement Association,
the Teachers Retirement Association, the Duluth Teachers Retirement Fund
Association, the Minneapolis Teachers Retirement Fund Association, the
Minneapolis Employees Retirement Fund, and the St. Paul Teachers Retirement
Fund Association, jointly, on behalf of the state, its employees, its
taxpayers, and its various public pension plans, shall contract with an
established actuarial consulting firm to conduct annual actuarial valuations
and related services for the retirement plans named in paragraph (b). The principal from the actuarial consulting
firm on the contract must be an approved actuary under section 356.215,
subdivision 1, paragraph (c). Prior to
becoming effective, the contract under this section is subject to a review and
approval by the Legislative Commission on Pensions and Retirement.
(b) The contract for actuarial services must include the
preparation of actuarial valuations and related actuarial work for the
following retirement plans:
(1) the teachers retirement plan, Teachers Retirement
Association;
(2) the general state employees retirement plan, Minnesota
State Retirement System;
(3) the correctional employees retirement plan, Minnesota
State Retirement System;
(4) the State Patrol retirement plan, Minnesota State
Retirement System;
(5) the judges retirement plan, Minnesota State Retirement
System;
(6) the Minneapolis employees retirement plan, Minneapolis
Employees Retirement Fund;
(7) the public employees retirement plan, Public Employees
Retirement Association;
(8) the public employees police and fire plan, Public
Employees Retirement Association;
(9) the Duluth teachers retirement plan, Duluth Teachers
Retirement Fund Association;
(10) the Minneapolis teachers retirement plan, Minneapolis
Teachers Retirement Fund Association;
(11) the St. Paul teachers retirement plan, St. Paul
Teachers Retirement Fund Association;
(12) the legislators retirement plan, Minnesota State
Retirement System;
(13) the elective state officers retirement plan, Minnesota
State Retirement System; and
(14) local government correctional service retirement plan,
Public Employees Retirement Association.
(c) The contract must require completion of the annual
actuarial valuation calculations on a fiscal year basis, with the contents of
the actuarial valuation calculations as specified in section 356.215, and in
conformity with the standards for actuarial work adopted by the Legislative
Commission on Pensions and Retirement.
The contract must require completion of annual experience
data collection and processing and a quadrennial published experience study for
the plans listed in paragraph (b), clauses (1), (2), and (7), as provided for
in the standards for actuarial work adopted by the commission. The experience data collection, processing,
and analysis must evaluate the following:
(1) individual salary progression;
(2) the rate of return on investments based on the current
asset value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
The contract must include provisions for the preparation of
cost analyses by the jointly retained actuary for proposed legislation that
include changes in benefit provisions or funding policies prior to their
consideration by the Legislative Commission on Pensions and Retirement.
(d) The actuary retained by the joint retirement systems
shall annually prepare a report to the legislature, including a commentary on
the actuarial valuation calculations for the plans named in paragraph (b) and
summarizing the results of the actuarial valuation calculations. The actuary shall include with the report
the actuary's recommendations to the legislature concerning the appropriateness
of the support rates to achieve proper funding of the retirement plans by the
required funding dates. The actuary
shall, as part of the quadrennial experience study, include recommendations to
the legislature on the appropriateness of the actuarial valuation assumptions
required for evaluation in the study.
(e) If the actuarial gain and loss analysis in the actuarial
valuation calculations indicates a persistent pattern of sizable gains or
losses, as directed by the joint retirement systems or as requested by the
chair of the Legislative Commission on Pensions and Retirement, the actuary
shall prepare a special experience study for a plan listed in paragraph (b),
clause (3), (4), (5), (6), (8), (9), (10), (11), (12), (13), or (14), in the
manner provided for in the standards for actuarial work adopted by the
commission.
(f) The term of the contract between
the joint retirement systems and the actuary retained may not exceed five
years. The joint retirement system
administrative officers shall establish procedures for the consideration and
selection of contract bidders and the requirements for the contents of an
actuarial services contract under this section. The procedures and requirements must be submitted to the
Legislative Commission on Pensions and Retirement for review and comment prior
to final approval by the joint administrators.
The contract is subject to the procurement procedures under chapter
16C. The consideration of bids and the
selection of a consulting actuarial firm by the chief administrative officers
must occur at a meeting that is open to the public and reasonable timely public
notice of the date and the time of the meeting and its subject matter must be
given.
(g) The actuarial services contract may not limit the
ability of the Minnesota legislature and its standing committees and
commissions to rely on the actuarial results of the work prepared under the
contract.
(h) The joint retirement systems shall designate one of the
retirement system executive directors as the actuarial services contract
manager.
Subd. 2.
[ALLOCATION OF ACTUARIAL COSTS.] (a) The actuarial services contract
manager shall assess each retirement plan specified in subdivision 1, paragraph
(b), its appropriate portion of the total compensation paid to the actuary
retained by the joint retirement systems for the actuarial valuation
calculations and quadrennial experience studies. The total assessment is 100 percent of the amount of contract
compensation for the actuarial consulting firm for actuarial valuation
calculations, including any public employees police and fire plan consolidation
accounts of the Public Employees Retirement Association established after March
1, 1999, annual experience data collection and processing, and quadrennial
experience studies.
The portion of the total assessment payable by each
retirement system or pension plan must be determined based on each plan's
proportion of the actuarial services required, as determined by the retained
actuary, to complete the actuarial valuation calculations, annual experience
data collection and processing, and quadrennial experience studies for all
plans.
The assessment must be made within 30 days following the end
of the fiscal year and must be reported to the chief administrative officers of
the applicable retirement plans. The
amount of the assessment is appropriated from the retirement fund applicable to
the retirement plan.
(b) The actuarial services contract manager shall assess
each retirement plan or each interest group which requested the preparation of
a cost analysis for proposed legislation the cost of the actuary retained by
the joint retirement systems incurred in the cost analysis preparation. With respect to interest groups, the
actuarial services contract manager shall obtain a written commitment for the payment
of the assessment in advance of the cost analysis preparation and may require
an advance deposit or advance payment before authorizing the cost analysis
preparation. The retirement plan or the
interest group shall pay the assessment within 30 days of the date on which the
assessment is billed. The amount of the
assessment is appropriated from the retirement fund applicable to the
retirement plan for cost analyses requested by a retirement plan or system.
(c) The actuarial services contract manager shall assess to
the Legislative Commission on Pensions and Retirement the cost of the actuarial
cost analysis preparation for the proposed legislation requested by the chair
of the Legislative Commission on Pensions and Retirement or by the commission
executive director. The commission
shall pay the assessment within 30 days of the date on which the assessment is
billed.
Subd. 3.
[REPORTING TO THE COMMISSION.] A copy of the actuarial valuations,
experience studies, and actuarial cost analyses prepared by the actuary
retained by the joint retirement systems under the contract provided for in
this section must be filed with the executive director of the Legislative
Commission on Pensions and Retirement at the same time that the document is
transmitted to the actuarial services contract manager or to any other document
recipient.
Sec. 7.
Minnesota Statutes 2002, section 356.215, subdivision 2, is amended to
read:
Subd. 2.
[REQUIREMENTS.] (a) It is the policy of the legislature that it is
necessary and appropriate to determine annually the financial status of tax
supported retirement and pension plans for public employees. To achieve this goal:
(1) the Legislative Commission on Pensions and Retirement
shall have prepared by the actuary retained by the commission under
section 6 shall prepare annual actuarial valuations of the retirement plans
enumerated in section 3.85 6, subdivision 11 1,
paragraph (b), and quadrennial experience studies of the retirement plans
enumerated in section 3.85 6, subdivision 11 1,
paragraph (b), clauses (1), (2), and (7); and
(2) the commissioner of finance may have prepared by the
actuary retained by the commission, two years after each set of quadrennial
experience studies, quadrennial projection valuations of at least one of the
retirement plans enumerated in section 3.85 6, subdivision 11
1, paragraph (b), for which the commissioner determines that the
analysis may be beneficial.
(b) The governing or managing board or administrative officials
of each public pension and retirement fund or plan enumerated in section
356.20, subdivision 2, clauses (9), (10), and (12), shall have prepared by an
approved actuary annual actuarial valuations of their respective funds as
provided in this section. This
requirement also applies to any fund or plan that is the successor to any
organization enumerated in section 356.20, subdivision 2, or to the governing
or managing board or administrative officials of any newly formed retirement
fund, plan, or association operating under the control or supervision of any
public employee group, governmental unit, or institution receiving a portion of
its support through legislative appropriations, and any local police or fire
fund to which section 356.216 applies.
Sec. 8. Minnesota
Statutes 2002, section 356.215, subdivision 18, is amended to read:
Subd. 18.
[ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) The actuarial assumptions
used for the preparation of actuarial valuations under this section that are
other than those set forth in this section may be changed only with the
approval of the Legislative Commission on Pensions and Retirement.
(b) A change in the applicable actuarial assumptions may be
proposed by the governing board of the applicable pension fund or relief
association, by the actuary retained by the Legislative Commission on
Pensions and Retirement joint retirement systems under section 6, by
the actuarial advisor to a pension fund governed by chapter 352, 353, 354, or
354A, or by the actuary retained by a local police or firefighters relief
association governed by sections 69.77 or 69.771 to 69.776, if one is retained.
Sec. 9. Minnesota
Statutes 2002, section 422A.06, subdivision 2, is amended to read:
Subd. 2. [ACTUARIAL
VALUATION REQUIRED.] As of July 1 of each year, an actuarial valuation of the retirement
fund shall be prepared by the commission-retained actuary retained by
the joint retirement systems under section 6 and filed in conformance with
the provisions and requirements of sections 356.215 to 356.23. Experience studies shall be prepared at
those times required by statute, required by the standards for actuarial work
adopted by the Legislative Commission on Pensions and Retirement or ordered by
the board.
The board may contract for the services of an approved actuary
and fix the reasonable compensation for those services. Any approved actuary retained by the board
shall function as the actuarial advisor to the board and may perform actuarial
valuations and experience studies to supplement those performed by the actuary
retained by the Legislative Commission on Pensions and Retirement joint
retirement systems under section 6.
Any supplemental actuarial valuations or experience studies shall
must be filed with the executive director of the Legislative Commission
on Pensions and Retirement.
Sec. 10.
[REPEALER.]
Minnesota Statutes 2002, sections 3.85, subdivisions 11 and
12; and 356.217 are repealed.
Sec. 11. [EFFECTIVE DATE.]
Sections 1 to 10 are effective on the day following final
enactment."
Delete the title and insert:
"A bill for an act relating to retirement; statewide and
major local public pension plans; making various changes of an administrative
nature; setting various limitations and requirements for public employees
police and fire retirement plan disability benefit applications; resolving one
person and small group pension problems; reducing the early retirement age for
the judges retirement plan; authorizing a shorter vesting schedule for the
Marine on St. Croix Volunteer Firefighters Relief Association; revising the
salary maximum for the executive secretary of the Minneapolis Firefighters
Relief Association; permitting single Teachers Retirement Association members
to make survivor benefit designations; authorizing retirement coverage
discontinuation by an elected county official; revising the manner in which
actuarial services to the Legislative Commission on Pensions and Retirement are
provided; continuing retirement coverage by the general employees retirement
plan of the Public Employees Retirement Association for Anoka County Achieve
Program and the Government Training Services; including in privatized public
employee retirement coverage employees of the Fair Oaks Lodge, Wadena, and
RenVilla Nursing Home; extending the expiration date on certain prior military
service credit purchases; temporarily exempting Metropolitan Airports
Commission police from reemployed annuitant earnings limitation; ratifying
certain Bellingham volunteer firefighter relief association annuity purchases;
including the Lake Johanna fire department employees in Public Employees
Retirement Association coverage; expanding the health care savings plan;
modifying the department of transportation pilots retirement plan; creating a
statewide volunteer firefighter retirement plan study task force; authorizing
shorter vesting periods for defined contribution volunteer firefighter relief
associations; appropriating money; amending Minnesota Statutes 2002, sections
3A.03, subdivision 2; 352.01, subdivision 13; 352.03, subdivision 6; 352.113,
subdivisions 4, 6, 8, by adding a subdivision; 352.12, subdivisions 1, 6;
352.22, subdivisions 2, 3; 352.27; 352.275, subdivision 1; 352.86, subdivision
1; 352.95, subdivisions 1, 2, 4; 352.98; 352B.01, subdivisions 3a, 11, by
adding a subdivision; 352B.02, subdivision 1e; 352B.10, subdivisions 1, 2, 3,
4, 5; 352B.105; 352B.11, subdivisions 1, 2, by adding subdivisions; 352D.065,
subdivision 2; 352D.075, subdivisions 2, 3, by adding a subdivision; 353.01,
subdivisions 2b, 10, 12a, 12b, 16, 16a; 353.03, subdivision 3a; 353.33,
subdivisions 4, 6, 6b, 7, by adding a subdivision; 353.37, subdivision 3, by
adding a subdivision; 353.656, subdivision 5, by adding subdivisions; 354.05,
subdivisions 2, 22, 35; 354.06, subdivision 2a; 354.07, subdivision 9; 354.091;
354.096, subdivision 1; 354.42, subdivision 7; 354.44, subdivisions 4, 5;
354.46, subdivisions 2, 2b, 5, by adding a subdivision; 354.48, subdivisions 2,
4, 6, 6a, 10; 354.51, subdivision 5; 354.52, subdivisions 4a, 6, by adding a
subdivision; 354.53; 354.533, subdivision 1; 354.66, subdivision 2; 354A.011,
subdivision 24; 354A.021, subdivision 7; 354A.093; 354A.094, subdivision 3;
354A.097, subdivision 1; 354B.20, subdivisions 4, 6; 354B.23, subdivision 1;
354B.32; 354C.11, subdivision 2; 356.215, subdivisions 2, 18; 356.302,
subdivision 3; 356.441; 356.611, subdivision 2, by adding subdivisions;
422A.06, subdivision 2; 422A.18, subdivisions 1, 4; 423B.09, subdivision 4;
423C.05, subdivisions 4, 5, 6, by adding a subdivision; 424A.02, subdivisions
2, 7; 490.121, subdivision 10, by adding a subdivision; 490.124, subdivision
12; Minnesota Statutes 2003 Supplement, sections 353.01, subdivision 6;
353F.02, subdivision 4; 423C.03, subdivision 3; Laws 1999, chapter 222, article
16, section 16, as amended; Laws 2000, chapter 461, article 4, section 4;
proposing coding for new law in Minnesota Statutes, chapters 352F; 356;
repealing Minnesota Statutes 2002, sections 3.85, subdivisions 11, 12; 352D.02,
subdivision 5; 353.33, subdivision 5b; 354A.107; 356.217; 490.11."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on State Government Finance.
The report was adopted.
Dempsey from the Committee on Local
Government and Metropolitan Affairs to which was referred:
H. F. No. 1392, A bill for an act relating to cities; allowing
the charter to prohibit members of the governing body of the city from serving
on the charter commission; amending Minnesota Statutes 2002, section 410.05,
subdivision 1.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Boudreau from the Committee on Health and Human Services Policy
to which was referred:
H. F. No. 1677, A bill for an act relating to human services;
including community collaborative child care provider licensed under
nonresidential child care programs; amending Minnesota Statutes 2002, section
245A.14, subdivision 4.
Reported the same back with the following amendments:
Page 2, line 1, delete "nonprofit community agency"
and insert "community action agency as defined in section 119A.375"
With the recommendation that when so amended the bill pass.
The report was adopted.
Smith from the Committee on Judiciary Policy and Finance to
which was referred:
H. F. No. 1683, A bill for an act relating to traffic
regulations; restricting possession of traffic signal-override device;
providing a penalty; amending Minnesota Statutes 2002, section 169.06, by
adding a subdivision.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Holberg from the Committee on Civil Law to which was referred:
H. F. No. 1730, A bill for an act relating to higher education;
providing penalties for students convicted of rioting; proposing coding for new
law in Minnesota Statutes, chapter 135A.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
[135A.157] [PENALTIES FOR RIOTING.]
If a student enrolled in a postsecondary institution is
convicted of a felony or gross misdemeanor crime as a direct consequence of
participating in a riot, the student is not eligible for a state grant award
under section 136A.121 after conviction and must pay the highest applicable
tuition rate, including the nonresident tuition rate, to attend
a public postsecondary institution in subsequent enrollment periods. The penalties under this section shall
continue for a period of one year following the date of conviction. At the time of sentencing, the court must
determine whether the conviction was a direct consequence of participating in a
riot.
For the purposes of this section, "riot" means an
incident in which three or more persons assembled disturb the public peace by
an intentional act or threat of unlawful force or violence to person or
property.
Sec. 2. [APPLICATION
INFORMATION.]
The Higher Education Services Office must collect
information necessary to administer section 1 on application forms for student aid. The Minnesota State Colleges and Universities must collect
information to administer section 1.
The University of Minnesota is requested to collect information
necessary to administer section 1.
Sec. 3. [EFFECTIVE
DATE.]
Sections 1 and 2 are effective the day following final
enactment."
With the recommendation that when so amended the bill pass.
The report was adopted.
Smith from the Committee on Judiciary Policy and Finance to
which was referred:
H. F. No. 1732, A bill for an act relating to crime; prohibiting
intentional introduction of disease to domestic animals; prohibiting certain
trespass on agricultural land; providing a civil remedy; providing criminal
penalties; amending Minnesota Statutes 2002, section 609.605, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 609.
Reported the same back with the following amendments:
Page 1, line 12, after the headnote insert "(a)"
Page 1, after line 17, insert:
"(b) The provisions of paragraph (a) do not apply to a person
performing academic or industry research on domestic animals under protocols
approved by an institutional animal care and use committee."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Ways and Means.
The report was adopted.
Sykora from the Committee on Education Policy to which was
referred:
H. F. No. 1738, A bill for an act relating to education;
directing the education commissioner to seek and report advisory task force
recommendations on adopting a uniform statewide grading scale policy.
Reported the same back with the following amendments:
Page 1, line 12, delete "developing and adopting"
and insert "whether and how to develop and adopt"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Governmental Operations and Veterans Affairs
Policy.
The report was adopted.
Holberg from the Committee on Civil Law to which was referred:
H. F. No. 1798, A bill for an act relating to state government;
the Office of the Secretary of State; simplifying filing procedures;
eliminating certain filing requirements; requiring electronic registration
after December 31, 2004; regulating notary appointments and commissions;
appropriating money; amending Minnesota Statutes 2002, sections 184.30;
302A.821, subdivisions 1, 2, 4; 308A.995, subdivision 5; 317A.823, subdivision
1, by adding a subdivision; 322B.960, subdivisions 1, 2, 5; 325A.06,
subdivision 1; 326.40, subdivision 2; 326.48, subdivision 3; 330.01,
subdivision 1; 330.08; 330.09; 336.9-525; 340A.416, subdivision 4; 359.01;
359.071; 398.10; Minnesota Statutes 2003 Supplement, section 308B.121,
subdivision 5.
Reported the same back with the following amendments:
Page 15, line 4, delete "4, and 7 to 10" and
insert "11"
Page 15, delete line 5
Page 15, line 6, delete "enactment."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on State Government Finance.
The report was adopted.
Rhodes from the Committee on Governmental Operations and
Veterans Affairs Policy to which was referred:
H. F. No. 1801, A bill for an act relating to commerce;
requiring continuing education for municipal building officials; requiring more
detail in reports from municipalities on building code enforcement; requiring
prelicensing education of residential building contractors; making changes in
continuing education; providing homebuyers with access to information about
avoidance of moisture and other problems; permitting successful home warranty
claimants to recover attorney fees and expenses; regulating actions for a
breach of the statutory home warranty requirements; amending Minnesota Statutes
2002, sections 16B.65, by adding a subdivision; 326.87, subdivision 1; 326.89,
subdivision 2; 326.96; 327A.05; Minnesota Statutes 2003 Supplement, section
16B.685; proposing coding for new law in Minnesota Statutes, chapter 326.
Reported the same back with the following amendments:
Page 2, line 21, after the semicolon, insert "and"
Page 2, delete lines 22 to 31 and insert:
"(4) the total number of permits issued, total number
of inspections performed, and the total number of hours of staff time and total
expenditures associated with administration of permitting and inspection
services."
With the recommendation that when so amended the bill pass.
The report was adopted.
Rhodes from the Committee on Governmental Operations and
Veterans Affairs Policy to which was referred:
H. F. No. 1806, A bill for an act relating to real property;
the electronic real estate recording task force created by Laws 2000, chapter
391; amending uncoded laws relating to that task force; extending the period of
existence of the task force and the surcharge on filings appropriated to the
task force; appropriating money; amending Laws 2000, chapter 391, section 1,
subdivision 2; Laws 2001, First Special Session chapter 10, article 2, section
77; Laws 2002, chapter 365, section 9; Laws 2003, First Special Session chapter
1, article 2, section 123.
Reported the same back with the recommendation that the bill
pass and be re-referred to the Committee on State Government Finance.
The report was adopted.
Sykora from the Committee on Education Policy to which was
referred:
H. F. No. 1814, A bill for an act relating to education;
providing for a teacher training program for qualified professionals; proposing
coding for new law in Minnesota Statutes, chapter 122A.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
[122A.245] [TEACHER TRAINING PROGRAM FOR QUALIFIED PROFESSIONALS.]
Subdivision 1.
[REQUIREMENTS.] (a) As an alternative to postsecondary teacher
preparation programs and alternative preparation licensing for teachers under
section 122A.24, a teacher training program is established for qualified
professionals to acquire an entrance license.
Providers may offer the program in the instructional fields of special
education, science, math, reading, English as a second language, communication
arts and literature, business, world languages, and library and media
specialist.
(b) To participate in the teacher training program, the
applicant must:
(1) have a bachelor's degree from an accredited four-year
postsecondary institution;
(2) have an undergraduate major or postbaccalaureate degree
in the subject to be taught or have equivalent academic qualifications in the
subject area in which the applicant is seeking licensure;
(3) have a minimum of five years of professional employment
in a subject area related to the subject area in which the applicant is seeking
licensure; and
(4) pass a skills exam in reading, writing, and mathematics
under section 122A.18.
(c) Teachers currently teaching under a variance issued by
the Board of Teaching may apply to participate in this program.
Subd. 2.
[PROGRAM.] The teacher training program must include:
(1) 200 clock hours of intensive training in classroom
management, curriculum, and instruction; and
(2) a minimum of five seminars totaling at least 20 clock
hours during the applicant's first year of teaching.
Subd. 3.
[PROGRAM APPROVAL.] The commissioner must approve teacher training
programs under this section based on criteria developed by an advisory group
appointed by the commissioner. The
advisory group at least must include representatives of the Board of Teaching,
school superintendents, and postsecondary institutions.
An approved teacher training program must require program
participants to complete the standards of effective practice for teachers under
Minnesota Rules, part 8710.2000.
Subd. 4.
[PROGRAM DELIVERY.] Postsecondary institutions and district-created
teacher academies, among other entities, may apply to the commissioner in the
form and manner the commissioner indicates, to deliver a teacher training
program under this section.
Subd. 5.
[ELIGIBILITY LICENSE.] An applicant who successfully completes the
training under subdivision 2, clause (1), and passes the Praxis II content exam
under section 122A.09, subdivision 4, paragraph (e), may receive a one-year
eligibility license and begin teaching.
During the one-year eligibility period, the district must assign a
teacher who holds a regular teaching license to mentor the applicant
teacher. The applicant teacher and
teacher mentor must meet at least once every week.
Subd. 6.
[STANDARD ENTRANCE LICENSE.] The Board of Teaching must issue a
standard entrance license to a training program licensee who successfully
completes the program under subdivision 2, successfully teaches in a classroom
for one complete school year, and receives a positive recommendation from the
applicant's school principal or other district or school administrator.
Subd. 7. [QUALIFIED
TEACHER.] A person with a valid eligibility license under subdivision 5 is a
qualified teacher under section 122A.16.
Subd. 8.
[EVALUATION AND REPORT.] The Office of the Legislative Auditor must
evaluate the program under this section and report its findings to the
Education Policy and Finance Committees in the legislature by February 1, 2008,
and each three years thereafter on February 1."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Higher Education Finance.
The report was adopted.
Holberg from the Committee on Civil Law to which was referred:
H. F. No. 1819, A bill for an act relating to the military;
clarifying the civil and criminal protections provided to members of the
Minnesota National Guard or other United States armed forces who apply
reasonable force while acting in accordance with official military orders;
amending Minnesota Statutes 2002, section 192.27.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Dempsey from the Committee on Local Government and Metropolitan
Affairs to which was referred:
H. F. No. 1868, A bill for an act relating to elections;
providing for periodic uniform election days for state and local elections,
other than special elections to fill a vacancy; amending Minnesota Statutes
2002, sections 126C.17, subdivision 11; 204C.05, by adding a subdivision;
205.10, subdivision 3; 205A.05, subdivision 1; 373.40, subdivision 2; 375.20;
458.40; 469.053, subdivision 5; 469.0724; 469.190, subdivision 5; 475.58,
subdivisions 1, 1a; 475.59; Minnesota Statutes 2003 Supplement, sections
123B.63, subdivision 3; 465.82, subdivision 2; 465.84; 475.521, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapters 204D; 205; 205A;
repealing Minnesota Statutes 2002, sections 204C.05, subdivisions 1a, 1b;
205.175; 205A.09.
Reported the same back with the recommendation that the bill
pass and be re-referred to the Committee on State Government Finance.
The report was adopted.
Dempsey from the Committee on Local Government and Metropolitan
Affairs to which was referred:
H. F. No. 1913, A bill for an act relating to highways;
providing for county board approval of certain preliminary plats and initial
plat filings; amending Minnesota Statutes 2002, section 505.03, subdivision 2;
repealing Minnesota Statutes 2002, section 162.02, subdivisions 8, 8a.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2002, section 505.03, subdivision 2, is amended to
read:
Subd. 2. [PLAT
APPROVAL; ROAD REVIEW.] (a) Any proposed preliminary plat in a city, town, or
county, which includes lands abutting upon any existing or established trunk
highway or proposed highway which has been designated by a centerline order
filed in the office of the county recorder shall first be presented by the
city, town, or county to the commissioner of transportation for written
comments and recommendations.
Preliminary plats in a city or town involving both a trunk highway and a
highway under county jurisdiction shall be submitted by the city or town to the
county highway engineer as provided in paragraphs (b) and, (c),
and (d) and to the commissioner of transportation. Plats shall be submitted by the city, town,
or county to the commissioner of transportation for review at least 30 days
prior to the home rule charter or statutory city, town or county taking final
action on the preliminary plat. The
commissioner of transportation shall submit the written comments and
recommendations to the city, town, or county within 30 days after receipt by
the commissioner of such a plat. Final
action on such plat by the city, town, or county shall not be taken until after
these required comments and recommendations have been received or until the
30-day period has elapsed.
(b) Any proposed preliminary plat or initial plat filing that
includes land located in a city or town bordering an existing or proposed
county road, highway, or county state-aid highway that is designated on a map
or county highway plan filed in the office of the county recorder or registrar
of titles, must be submitted by the city or town to the county engineer within
five business days after receipt by the city or town of the preliminary plat or
initial plat filing for written comments and recommendations. The county engineer's review shall be
limited to factors of county significance in conformance with adopted county
guidelines developed through a public hearing or a comprehensive planning
process with comment by the cities and towns.
The guidelines must provide for development and redevelopment scenarios,
allow for variances, and reflect consideration of city or town adopted guidelines. This paragraph does not apply to a
proposed preliminary plat or initial plat filing that borders a county
state-aid highway in a county that has adopted an ordinance as provided in
paragraph (d).
(c) Within 30 days after county receipt from the city or town
of the preliminary plat or initial plat filing, the county engineer shall
provide to the city or town written comments stating whether the plat meets
county guidelines and describing any modifications necessary to bring the plat
into conformity with the county guidelines.
No city or town may approve a preliminary plat until it has received the
county engineer's written comments and recommendations or until the county
engineer's comment period has expired, whichever occurs first. Within ten business days following a city's
or town's approval of a preliminary plat, the city or town shall submit to the
county board notice of its approval, along with a statement addressing the
disposition of any written comments or recommendations made by the county
engineer. In the event the city or town
does not amend the plat to conform to the recommendations made by the county
engineer, representatives from the county and city or town shall meet to
discuss the differences and determine whether changes to the plat are
appropriate prior to final approval.
This requirement shall not extend the time deadlines for preliminary or
final approval as required under this section, section 15.99 or 462.358, or any
other law, nor shall this requirement prohibit final approval as required by
this section. This paragraph does
not apply to a proposed preliminary plat or initial plat filing that borders a
county state-aid highway in a county that has adopted an ordinance as provided
in paragraph (d).
(d) A county that has adopted a long-term comprehensive
transportation plan that includes detailed mapping may by ordinance authorize
its county engineer to review and approve any proposed preliminary plat or
initial plat filing that includes land that is located in a city or town and
that borders an existing or proposed county state-aid highway. A city or town proposing such a plat or
filing in a county that has adopted such an ordinance must submit the proposed
plat or filing to the county engineer.
Upon receipt of such a notice the county engineer shall review the plat
or filing for (1) conformity to the county's long-term comprehensive
transportation plan, (2) the amount of right-of-way in the platted land
dedicated to highway purposes, (3) adequacy of drainage provisions, (4)
adequacy of control access to the highway, and (5) congestion management and
traffic flow issues. Within 30 days of
receipt the county engineer shall notify the city or town of approval or
disapproval of the preliminary plat or filing.
Failure by the county engineer to act within the 30-day period
constitutes approval. A city or town
subject to this paragraph may not approve a preliminary plat unless it has
previously been approved by the county engineer.
(e) A legible preliminary drawing or print of a proposed
preliminary plat shall be acceptable for purposes of review by the commissioner
of transportation or the county highway engineer. To such drawing or print there shall be attached a written
statement describing; (1) the outlet for and means of disposal of surface
waters from the proposed platted area, (2) the land use designation or zoning
category of the proposed platted area, (3) the locations of ingress and egress
to the proposed platted area, and (4) a preliminary site plan for the proposed
platted area, with dimensions to scale, authenticated by a registered engineer
or land surveyor, showing the existing or proposed state highway, county road,
or county highway and all existing and proposed rights-of-way, easements,
general lot layouts, and lot dimensions.
Failure to obtain the written comments and recommendations of the
commissioner of transportation or the county highway engineer, or approval
of the county engineer where required, shall in no manner affect the title
to the lands included in the plat or the platting of said lands. A city, town, or county shall file with the
plat, in the office of the county recorder or registrar of titles, a
certificate or other evidence showing submission of the preliminary plat to the
commissioner or county highway engineer in compliance with this
subdivision."
Amend the title as follows:
Page 1, line 5, delete everything after "2"
Page 1, line 6, delete everything before the period
With the recommendation that when so amended the bill be
re-referred to the Committee on Transportation Finance without further
recommendation.
The report was adopted.
Holberg from the Committee on Civil Law to which was referred:
H. F. No. 1915, A bill for an act relating to education;
allowing students to possess or have immediate access to nonsyringe injectors
of epinephrine; amending Minnesota Statutes 2002, section 121A.22, subdivision
2; proposing coding for new law in Minnesota Statutes, chapter 122A.
Reported the same back with the following amendments:
Page 3, line 13, delete everything after "section"
Page 3, line 14, delete everything before the period
With the recommendation that when so amended the bill pass.
The report was adopted.
Davids from the Committee on Commerce, Jobs and Economic
Development to which was referred:
H. F. No. 1965, A bill for an act relating to insurance;
permitting service cooperatives to provide group health coverage to private
employers; proposing coding for new law in Minnesota Statutes, chapter 123A.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Holberg from the Committee on Civil Law to which was referred:
H. F. No. 1989, A bill for an act relating to crime prevention;
regulating the sale of methamphetamine precursor drugs; authorizing reporting
of suspicious transactions involving these drugs and providing civil immunity
for so doing; requiring a methamphetamine educational program for retailers;
further regulating while recodifying activities involving anhydrous ammonia;
requiring courts to order restitution in certain situations involving
controlled substances; imposing property restrictions in certain situations
involving controlled substances; increasing the criminal penalties for possessing
certain substances with the intent to manufacture methamphetamine and imposing
a mandatory minimum sentence for so doing; establishing new
methamphetamine-related crimes; expanding the definition of "violent
crime" for mandatory sentencing purposes; requiring that vehicles and
other property
used to manufacture methamphetamine indicate this in the title or deed;
establishing a methamphetamine laboratory cleanup revolving fund and
authorizing loans to assist counties and cities in conducting methamphetamine
cleanup; exempting certain substances from being classified as controlled
substances under certain circumstances; exempting certain pediatric products
labeled pursuant to federal regulation from law prohibiting sale of
methamphetamine precursor drugs; authorizing taking a child into protective
custody for health screening relating to methamphetamine; imposing criminal
penalties; appropriating money; amending Minnesota Statutes 2002, sections
152.135, subdivision 2; 168A.05, subdivision 3; 609.1095, subdivision 1;
Minnesota Statutes 2003 Supplement, section 152.021, subdivisions 2a, 3;
proposing coding for new law in Minnesota Statutes, chapters 152; 446A;
repealing Minnesota Statutes 2002, sections 18C.005, subdivisions 1a, 35a;
18C.201, subdivisions 6, 7; 18D.331, subdivision 5.
Reported the same back with the following amendments:
Page 5, line 13, after "entities" insert
"and property owners"
Page 6, line 2, delete "county" and insert
"local unit of government"
Page 6, delete lines 25 to 36
Page 7, delete line 1
Page 7, line 2, delete "(g)" and insert "(f)"
Page 7, line 6, after "methamphetamine" insert
"and if the authority is able to obtain the certificate of title for
the motor vehicle"
Page 7, line 8, after "fact" insert "and
in addition forward the certificate of title to the registrar"
Page 9, after line 29, insert:
"Subd. 7.
[PREEMPTION; INVALIDATION.] This section preempts all local
ordinances or regulations governing the sale by a business establishment of
over-the-counter products containing ephedrine or pseudoephedrine. All ordinances enacted prior to the
effective date of this act are void."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Judiciary Policy and Finance.
The report was adopted.
Holberg from the Committee on Civil Law to which was referred:
H. F. No. 2016, A bill for an act relating to traffic
regulations; specifying duty of care of bus drivers to passengers; proposing
coding for new law in Minnesota Statutes, chapter 169.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Harder from the Committee on Agriculture
and Rural Development Finance to which was referred:
H. F. No. 2051, A bill for an act relating to county
agricultural societies; modifying provisions relating to county and regional
fairs; amending Minnesota Statutes 2002, sections 38.01; 38.04; 38.12; 38.14;
38.15; 38.16; Minnesota Statutes 2003 Supplement, section 38.02, subdivision 1;
repealing Minnesota Statutes 2002, sections 38.02, subdivisions 2, 4; 38.13.
Reported the same back with the following amendments:
Pages 1 and 2, delete section 1
Page 3, line 12, reinstate the stricken language and strike
"25" and insert "15"
Page 3, line 13, reinstate the stricken language
Page 3, line 16, reinstate the stricken language and delete
"(3)"
Page 3, line 28, reinstate the stricken language and delete the
new language
Page 3, line 33, reinstate the stricken language and delete
"(5)" and strike "records and" and after
"report" insert "of premiums paid"
Page 4, line 14, after "races," insert "horse
pulls, tractor pulls, demolition derby, automobile or other racing, jackpot
premiums,"
Page 4, line 18, strike everything after the period
Page 4, strike lines 19 to 21
Page 4, line 22, strike everything before "The"
Page 4, line 30, after "held" insert "to
those agricultural societies or associations entitled to payments under the
provisions of this chapter"
Page 4, line 34, strike "therefor"
Page 4, after line 36, insert:
"Sec. 2. Minnesota
Statutes 2003 Supplement, section 38.02, subdivision 3, is amended to read:
Subd. 3. [CERTIFICATION,
COMMISSIONER OF AGRICULTURE ENTITLEMENT FOR PRO RATA DISTRIBUTION.] Any
A county or district agricultural society which has held its second
annual fair is entitled to share pro rata in the distribution. The commissioner of agriculture shall
certify to the secretary of the State Agricultural Society, within 30 days
after payments have been made, a list of all county or district agricultural
societies that have complied with this chapter, and which are entitled to share
in the appropriation. All Payments
shall be based on reports submitted by agricultural societies under subdivision
1, paragraph (b), clause (6)."
Page 5, line 11, strike "the society's secretary" and
insert "an officer of the society"
Page 5, lines 15 and 16, delete the new language and insert
"and a financial statement prepared in accordance with generally
accepted accounting principles. The
report must also list"
Page 5, line 17, strike the second
"and"
Page 5, line 18, delete the new language and strike
"receipts and expenditures during the year"
Page 5, line 27, after the stricken period, insert "Reports
of the society are public data under chapter 13 and must be made available for
inspection by any person."
Page 6, line 15, strike the comma and insert a period
Page 6, strike lines 16 to 34
Page 7, line 34, delete "subdivisions 2 and"
and insert "subdivision 2;"
Page 7, line 35, delete "4;"
Renumber the sections in sequence
Correct internal references
Amend the title as follows:
Page 1, line 4, delete "38.01;"
Page 1, line 6, delete "subdivision 1" and insert
"subdivisions 1, 3"
Page 1, line 8, delete "subdivisions 2, 4" and insert
"subdivision 2"
With the recommendation that when so amended the bill pass.
The report was adopted.
Smith from the Committee on Judiciary Policy and Finance to which
was referred:
H. F. No. 2078, A bill for an act relating to public transit;
clarifying railroad grade crossing requirements; clarifying crimes involving
public transit; providing penalties; amending Minnesota Statutes 2002, section
609.855, subdivision 1, by adding a subdivision; Minnesota Statutes 2003
Supplement, section 169.28, subdivision 1.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Davids from the Committee on Commerce, Jobs and Economic
Development to which was referred:
H. F. No. 2098, A bill for an act relating to motor fuels;
regulating oxygenated gasoline; abolishing a fee and certain requirements and
powers of Department of Commerce relating to utility measuring equipment;
amending Minnesota Statutes 2002, section 239.791, subdivision 12, by adding a
subdivision; repealing Minnesota Statutes 2002, sections 239.12; 239.25.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2002, section 239.791, subdivision 12, is amended to
read:
Subd. 12. [EXEMPTION
FOR COLLECTOR VEHICLE AND OFF-ROAD USE.] (a) A person responsible for the
product may offer for sale, sell, or dispense at a retail gasoline station for
use in collector vehicles or vehicles eligible to be licensed as collector
vehicles, off-road vehicles, motorcycles, boats, snowmobiles, or small engines,
gasoline that is not oxygenated in accordance with subdivision 1 if the person
meets the conditions in paragraphs (b) to (e).
If the nonoxygenated gasoline is for use in a small engine, it must be
dispensed into a can with a capacity of six or fewer gallons.
(b) The nonoxygenated gasoline must be unleaded premium grade
as defined in section 239.751, subdivision 4.
(c) No more than one storage tank on the premises of the retail
gasoline station may be used for storage of the nonoxygenated gasoline offered
for sale, sold, or dispensed by the station.
(d) The pump stands must be posted with a permanent notice
stating: "NONOXYGENATED
GASOLINE. FOR USE IN COLLECTOR VEHICLES
OR VEHICLES ELIGIBLE TO BE LICENSED AS COLLECTOR VEHICLES, OFF-ROAD VEHICLES,
MOTORCYCLES, BOATS, SNOWMOBILES, OR SMALL ENGINES ONLY."
(e) For a retail gasoline station located in the county of
Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Washington, or
Wright, a person responsible for the product must annually register with the
director, on forms provided by the director, an intent to sell nonoxygenated
gasoline during the period of October 1 through January 31. Such person must register on or before
August 1 of each year, and must report to the director before April 1 of the
following year the total number of gallons of nonoxygenated premium grade
gasoline sold during the period of October 1 through January 31. Data submitted to the department under this
paragraph shall be considered nonpublic data as defined in section 13.02,
subdivision 13. This notice must
be posted at least two feet above the ground.
A retail gasoline station that sells nonoxygenated premium as defined in
subdivision 15, must register every two years with the director, or an entity
appointed by the director, on forms approved by the director, the total amount
of nonoxygenated premium sold annually.
Sec. 2. Minnesota
Statutes 2002, section 239.791, is amended by adding a subdivision to read:
Subd. 15.
[EXEMPTION FOR CERTAIN BLEND PUMPS.] A person responsible for the
product, who offers for sale, sells, or dispenses nonoxygenated premium
gasoline under one or more of the exemptions in subdivisions 10 to 14, may
sell, offer for sale, or dispense oxygenated gasoline that contains less than
the minimum amount of ethanol required under subdivision 1 if all of the following
conditions are met:
(1) the blended gasoline has an octane rating of 88 or
greater;
(2) the gasoline is a blend of oxygenated gasoline meeting
the requirements of subdivision 1 with nonoxygenated premium gasoline;
(3) the blended gasoline contains not more than ten percent
nonoxygenated premium gasoline;
(4) the blending of oxygenated gasoline with nonoxygenated
gasoline occurs within the gasoline dispenser; and
(5) the gasoline station at which the gasoline is sold,
offered for sale, or delivered is equipped to store gasoline in not more than
two storage tanks.
This subdivision applies only to those persons who meet the
conditions in clauses (1) through (5) on the effective date of this act and
have registered with the directory within three months of the effective date of
this act.
Sec. 3. [REPEALER.]
Minnesota Statutes 2002, sections 239.12 and 239.25, are
repealed."
With the recommendation that when so amended the bill pass.
The report was adopted.
Dempsey from the Committee on Local Government and Metropolitan
Affairs to which was referred:
H. F. No. 2103, A bill for an act relating to real property;
local planning and zoning; authorizing municipalities to require the dedication
of land for public purposes; providing certain terms and conditions for the
dedication; amending Minnesota Statutes 2002, section 462.358, subdivision 2b,
by adding a subdivision; Minnesota Statutes 2003 Supplement, section 462.353,
subdivision 4.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2003 Supplement, section 462.353, subdivision 4, is
amended to read:
Subd. 4. [FEES.] (a)
A municipality may prescribe fees sufficient to defray the costs incurred by it
in reviewing, investigating, and administering an application for an amendment
to an official control established pursuant to sections 462.351 to 462.364 or
an application for a permit or other approval required under an official
control established pursuant to those sections. Except as provided in subdivision 4a, fees as prescribed must be
by ordinance. Fees must be fair,
reasonable, and proportionate and have a nexus to the actual cost of the
service for which the fee is imposed.
(b) A municipality shall must adopt
management and accounting procedures to ensure that fees are maintained and
used only for the purpose for which they are collected. Upon request, a municipality must explain
the basis of its fees.
(c) Except as provided in this paragraph, a fee ordinance or
amendment to a fee ordinance is effective January 1 after its adoption. A municipality may adopt a fee ordinance or
an amendment to a fee ordinance with an effective date other than the next
January 1, but the ordinance or amendment does not apply if an application for
final approval has been submitted to the municipality.
(d) If a dispute arises over a specific fee imposed by a
municipality related to a specific application, the amount of the fee must
be deposited and held in escrow, and the person aggrieved by the fee may
appeal under section 462.361, provided that the appeal must be brought
within 60 days after approval of an application under this section and deposit
of the fee into escrow. An approved
application may proceed as if the fee had been paid, pending a decision on the
appeal. This paragraph must not be
construed to preclude the city from conditioning approval of any proposed
subdivision or development on an agreement to waive a challenge to the cost
associated with municipally installed improvements of the type described in
section 429.021.
Sec. 2. Minnesota
Statutes 2002, section 462.358, subdivision 2b, is amended to read:
Subd. 2b. [DEDICATION.]
(a) The regulations may require that a reasonable portion of any
proposed subdivision be dedicated to the public or preserved for public use as
streets, roads, sewers, electric, gas, and water facilities, storm water
drainage and holding areas or ponds and similar utilities and improvements.
(b) In addition, the regulations may require that a
reasonable portion of any proposed subdivision be dedicated to the public or
preserved for conservation purposes or for public use as parks, recreational
facilities as defined and outlined in section 471.191, playgrounds, trails,
wetlands, or open space; provided that (a) (1) the municipality
may choose to accept an equivalent amount in cash from the applicant for part
or all of the portion required to be dedicated to such public uses or purposes
based on the fair market value of the land no later than at the time of final
approval, (b) (2) any cash payments received shall be placed in a
special fund by the municipality used only for the purposes for which the money
was obtained, (c) and may not be used for ongoing operation or
maintenance, (3) in establishing the reasonable portion to be dedicated,
the regulations may consider the open space, park, recreational, or common
areas and facilities which the applicant proposes to reserve for the subdivision,
and (d) (4) the municipality reasonably determines that it will
need to acquire that portion of land for the purposes stated in this paragraph
as a result of approval of the subdivision.
The basis for calculating the amount to be dedicated or preserved
must be established by ordinance or pursuant to the procedures established in
section 462.353, subdivision 4a.
Sec. 3. Minnesota
Statutes 2002, section 462.358, is amended by adding a subdivision to read:
Subd. 2c.
[NEXUS.] (a) There must be an essential nexus between the fees or
dedication imposed under subdivision 2b and the municipal purpose sought to be
achieved by the fee or dedication. The
fee or dedication must bear a rough proportionality to the need created by the
proposed subdivision or development.
(b) If a municipality is given written notice of a dispute
over a proposed fee in lieu of dedication before the municipality's final
decision on an application, a municipality must not condition the approval of
any proposed subdivision or development on an agreement to waive the right to
challenge the validity of a fee in lieu of dedication.
(c) An application may proceed as if the fee had been paid,
pending a decision on the appeal of a dispute over a proposed fee in lieu of
dedication, if (1) the person aggrieved by the fee puts the city on written
notice of a dispute over a proposed fee in lieu of dedication, (2) prior to the
municipality's final decision on the application, the fee in lieu of dedication
is deposited in escrow, and (3) the person aggrieved by the fee appeals under
section 462.361, within 60 days of the approval of the application. If such an appeal is filed by the deadline,
or if the person aggrieved by the fee does not prevail on the appeal, then the
funds paid into escrow must be transferred to the municipality.
Sec. 4. [EFFECTIVE
DATE; APPLICATION.]
This act is effective August 1, 2004, and applies to
ordinances relating to fees, fee schedules, and dedications adopted or amended
on or after August 1, 2004."
With the recommendation that when so amended the bill pass.
The report was adopted.
Westrom from the Committee on Regulated Industries to which
was referred:
H. F. No. 2151, A bill for an act relating to
telecommunications; requiring instant credit for wrong information from
directory assistance; amending Minnesota Statutes 2002, section 237.01, by
adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 237.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE
1
CREDIT
FOR WRONG DIRECTORY ASSISTANCE
Section 1. Minnesota
Statutes 2002, section 237.01, is amended by adding a subdivision to read:
Subd. 8. [LOCAL
EXCHANGE CARRIER.] "Local exchange carrier" means a telephone
company or telecommunications carrier providing local exchange service.
Sec. 2. [237.155]
[CREDIT FOR INCORRECT DIRECTORY ASSISTANCE.]
Any person that provides directory assistance to customers
for a fee, either directly or by contracting with a third party, must provide
for an immediate credit to a customer that informs the directory assistance
provider that the provider has given the customer incorrect information for
which the provider charged the customer a fee.