STATE OF
EIGHTY-FOURTH SESSION - 2006
_____________________
SEVENTY-EIGHTH DAY
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 the
Reverend Roy Vanderwerf,
The members of the House gave the pledge
of allegiance to the flag of the
The roll was called and the following
members were present:
Abeler
Abrams
Anderson, B.
Atkins
Beard
Bernardy
Bradley
Brod
Buesgens
Carlson
Charron
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Klinzing
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Sertich
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
A quorum was present.
Mariani was excused.
The Chief Clerk proceeded to read the
Journal of the preceding day. Paymar
moved that further reading of the Journal be suspended and that the Journal be
approved as corrected by the Chief Clerk.
The motion prevailed.
REPORTS
OF STANDING COMMITTEES
Davids from the Committee on Agriculture and Rural
Development to which was referred:
H. F. No. 1466, A bill for an act relating to commerce;
prohibiting tampering with clock-hour meters on farm tractors; prescribing a
civil penalty and a private right of action; proposing coding for new law in
Minnesota Statutes, chapter 325E.
Reported the same back with the recommendation that the bill
pass and be re-referred to the Committee on Civil Law and Elections.
The report was adopted.
Bradley from the Committee on Health Policy and Finance to
which was referred:
H. F. No. 1862, A bill for an act relating to health;
modifying expenditure reporting requirements; establishing a separate reporting
procedure for expenditures over $5,000,000; restricting certain medical
referrals; appropriating money; amending Minnesota Statutes 2004, section
62J.17, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapter 62J.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
HEALTH CARE COST-CONTAINMENT
Section 1. [62J.431] EVIDENCE-BASED PRACTICE
STANDARDS AND GUIDELINES.
Subdivision 1.
Health-related boards and
provider organizations; practice standards. The health-related boards, under chapter
148, or professional provider organizations may establish practice standards
for treating patients within their respective scopes of practice. The boards or provider organizations may
utilize the services of appropriate public or private entities to facilitate
the development or review of practice standards and evidence-based guidelines. Each board or provider organization that has
established or ratified existing standards shall report these standards to the
legislative committees with jurisdiction over the public health occupations by
January 15, 2007, and shall report subsequent changes annually thereafter. If a board or provider organization has
existing standards, nothing in this section requires a board or provider
organization to establish new standards.
Nothing in this section shall require a health plan company to cover
treatments, testing, or imaging, based on standards developed under this
section.
Subd. 2. Criteria for evidence-based guidelines. Guidelines identified under this section
must meet the following criteria:
(1) the scope and application are clear;
(2) authorship is stated and any conflicts of interest
disclosed;
(3) authors represent all pertinent clinical fields or other
means of input have been used;
(4)
the development process is explicitly stated;
(5) the guideline is grounded in evidence;
(6) the evidence is cited and graded;
(7) the document itself is clear and practical;
(8) the document is flexible in use, with exceptions noted or
provided for with general statements;
(9) measures are included for use in systems improvement; and
(10) the guideline has scheduled reviews and updating.
Sec. 2. [62J.62] ELECTRONIC BILLING ASSISTANCE.
The commissioner of human services shall, out of existing
resources, encourage and assist providers to adopt and use electronic billing
for state programs, including but not limited to the provision of training.
Sec. 3. [62J.85] PROVISION OF INFORMATION ON
PHARMACEUTICAL ASSISTANCE PROGRAMS.
A medical clinic must make available to patients, in a public
area of the clinic, brochures on programs offered by pharmaceutical
manufacturers that provide free or discounted drugs or provide coverage for
prescription drugs. This requirement
applies only to brochures that are made available to clinics free of charge by
pharmaceutical manufacturers. If a Web
site is developed that provides this information, a public posting describing
the Web site complies with this requirement.
Sec. 4. [62M.071] PRIOR AUTHORIZATION.
Health plan companies, in cooperation with health care
providers, shall review prior authorization procedures administered by
utilization review organizations and health plan companies, to ensure the
cost-effective use of prior authorization and minimization of provider, clinic,
and central office administrative burden.
Sec. 5. [62M.072] USE OF EVIDENCE-BASED
STANDARDS.
If no independently developed evidence-based standards exist
for a particular treatment, testing, or imaging procedure, then an insurer or
utilization review organization shall not deny coverage of the treatment,
testing, or imaging based solely on the grounds that the treatment, testing, or
imaging does not meet an evidence-based standard.
Sec. 6. [62Q.676] MEDICATION THERAPY MANAGEMENT
CARE.
(a) A health plan company or pharmacy benefit manager that
provides prescription drug coverage must provide or arrange for medication
therapy management services for enrollees taking four or more prescriptions to
treat or prevent two or more chronic medical conditions. For purposes of this section,
"medication therapy management" means the provision of the following
pharmaceutical care services by a licensed pharmacist or a physician licensed
under chapter 147 to optimize the therapeutic outcomes of the patient's
medications:
(1) performing or obtaining necessary assessments of the
patient's health status in compliance with applicable health data privacy laws;
(2)
formulating a medication treatment plan;
(3) monitoring and evaluating the patient's response to
therapy, including safety and effectiveness;
(4) performing a comprehensive medication review to identify,
resolve, and prevent medication related problems, including adverse drug
events;
(5) documenting the care delivered and communicating
essential information to the patient's other primary care providers;
(6) providing verbal education and training designed to
enhance patient understanding and appropriate use of the patient's medications;
(7) providing information, support services, and resources
designed to enhance patient adherence with the patient's therapeutic regimens;
and
(8) coordinating and integrating medication therapy management
services within the broader health care management services being provided to
the patient.
(b) Nothing in this section shall be construed to expand or
modify the scope of practice of the pharmacist as defined in section 151.01,
subdivision 27.
Sec. 7. [144.0506] AGENCY WEB SITES.
Subdivision 1.
Information to be posted. The commissioner of health may post the
following information on agency Web sites, including minnesotahealthinfo.com:
(1) healthy lifestyle and preventive health care information,
organized by sex and age, with procedures and treatments categorized by level
of effectiveness and reliability of the supporting evidence on effectiveness;
(2) health plan company administrative efficiency report
cards;
(3) health care provider charges for common procedures, based
on information available under section 62J.052;
(4) evidence-based medicine guidelines and related
information for use as resources by health care professionals, and summaries of
the guidelines and related information for use by patients and consumers;
(5) resources and Web links related to improving efficiency
in medical clinics and health care professional practices; and
(6) lists of nonprofit and charitable entities that accept
donations of used medical equipment and supplies, such as crutches and walkers.
Subd. 2. Other Internet resources. The commissioner of health, in
implementing subdivision 1, shall include relevant Web links and materials from
private sector and other government sources, in order to avoid duplication and
reduce state administrative costs.
Subd. 3. Cooperation with commissioner of
commerce. The commissioner of
health shall consult and work in cooperation with the commissioner of commerce
when posting on the Web site information collected from health plan companies
regulated by the commissioner of commerce.
Sec.
8. Minnesota Statutes 2004, section
144.698, is amended by adding a subdivision to read:
Subd. 6. Reporting on uncompensated care. (a) A report on the services provided to
benefit the community, as required under subdivision 1, clause (5), must report
charity care in compliance with the following requirements:
(1) For a facility to report amounts as charity care
adjustments, the facility must:
(i) generate and record a charge;
(ii) have a policy on the provision of charity care that
contains specific eligibility criteria and is communicated or made available to
patients;
(iii) have made a reasonable effort to identify a third-party
payer, encourage the patient to enroll in public programs, and, to the extent
possible, aid the patient in the enrollment process; and
(iv) ensure that the patient meets the charity care criteria
of this subdivision.
(2) In determining whether to classify care as charity care,
the facility must consider the following:
(i) charity care may include services that the provider is
obligated to render independently of the ability to collect;
(ii) charity care may include care provided to patients who
meet the facility's charity care guidelines and have partial coverage, but who
are unable to pay the remainder of their medical bills, but this does not apply
to that portion of the bill that has been determined to be the patient's
responsibility after a partial charity care classification by the facility;
(iii) charity care may include care provided to low-income
patients who may qualify for a public health insurance program and meet the
facility's eligibility criteria for charity care, but who do not complete the
application process for public insurance despite the facility's reasonable
efforts;
(iv) charity care may include care to individuals whose
eligibility for charity care was determined through third-party services for
information gathering purposes only;
(v) charity care does not include contractual allowances,
which is the difference between gross charges and payments received under
contractual arrangements with insurance companies and payers;
(vi) charity care does not include bad debt;
(vii) charity care does not include what may be perceived as
underpayments for operating public programs;
(viii) charity care does not include unreimbursed costs of
basic or clinical research or professional education and training;
(ix) charity care does not include professional courtesy discounts;
(x) charity care does not include community service or
outreach activities; and
(xi) charity care does not include services for patients
against whom collection actions were taken that resulted in a financial
obligation documented on a patient's credit report with credit bureaus.
(3)
When reporting charity care adjustments, the facility must report total dollar
amounts and the number of contacts between a patient and a health care provider
during which a service is provided for the following categories:
(i) care to patients with family incomes at or below 275
percent of the federal poverty guideline;
(ii) care to patients with family incomes above 275 percent
of the federal poverty guideline; and
(iii) care to patients when the facility, with reasonable
effort, is unable to determine family incomes.
(b) For the report required under subdivision 1, clause (5),
the facility must, in determining whether to classify care as a bad debt
expense:
(1) presume that a patient is able and willing to pay until
and unless the facility has reason to consider the care as a charity care case
under its charity care policy and the facility classifies the care as a charity
care case; and
(2) include as a bad debt expense any unpaid deductibles,
coinsurance, co-payments, noncovered services, and other unpaid patient
responsibilities.
EFFECTIVE
DATE. This section is
effective for facility fiscal years ending on or after December 31, 2006.
Sec. 9. Minnesota
Statutes 2004, section 151.214, subdivision 1, is amended to read:
Subdivision 1. Explanation of pharmacy benefits. A pharmacist licensed under this chapter must
provide to a patient, for each prescription dispensed where part or all of the
cost of the prescription is being paid or reimbursed by an employer-sponsored
plan or health plan company, or its contracted pharmacy benefit manager, the
patient's co-payment amount and the pharmacy's own usual and customary
price of the prescription or the amount the pharmacy will be paid for the
prescription drug by the patient's employer-sponsored plan or health plan
company, or its contracted pharmacy benefit manager.
Sec. 10. Minnesota
Statutes 2005 Supplement, section 214.071, is amended to read:
214.071 HEALTH BOARDS;
DIRECTORY OF LICENSEES.
Each health health-related licensing board under
chapters 147, 148, 148B, and 150A, as defined in section 214.01,
subdivision 2, shall establish a directory of licensees that includes
biographical data for each licensee.
Sec. 11. [214.121] PRICE DISCLOSURE REMINDER.
Each health-related licensing board shall at least annually
inform and remind its licensees of the price disclosure requirements of section
62J.052 or 151.214, as applicable, through the board's regular means of
communicating with its licensees.
Sec. 12. REPORTING OF ACQUIRED INFECTIONS.
(a) The commissioner of health may consult with infection
control specialists, health care facility representatives, and consumers, for
the purpose of obtaining recommendations regarding a determination of the need
for action to implement health care associated infection control reporting in
hospitals and nursing homes. If the
outcome of the determination warrants, the commissioner shall consult with the
group regarding:
(1) the selection of reporting measures relating to health
care associated infections;
(2)
design, implementation, validation, and ongoing evaluation of the reporting
system; and
(3) ensuring that the reporting measures remain flexible and
adaptable to changing national standards.
(b) If the commissioner determines that there is a need for
the action described in paragraph (a), the commissioner shall make written
recommendations to the legislature.
Sec. 13. COST CONTAINMENT STUDIES.
Subdivision 1.
Alternative and complementary
health care. The commissioner
of human services, through the medical director and in consultation with the
health services policy committee established under Minnesota Statutes, section
256B.0625, subdivision 3c, shall study the potential for improving quality and
obtaining cost savings through greater use of alternative and complementary
treatment methods that are supported by the findings of evidence-based
research, and shall incorporate these methods into the medical assistance,
MinnesotaCare, and general assistance medical care programs as appropriate.
Subd. 2. Studies related to universal
participation and access to care.
The commissioners of human services and health shall study the
adequacy of the current system of community health care clinics and centers
both statewide, and in urban areas with significant disparities in health
status and access to services across racial and ethnic groups. The commissioners shall evaluate:
(1) methods to provide 24-hour availability of care through
the clinics and centers;
(2) methods to expand the availability of care through the
clinics and centers;
(3) the use of health care access fund grants to expand the
number of clinics and centers, the services provided, and the availability of
care; and
(4) the extent to which increased use of physician assistants,
nurse practitioners, medical residents and interns, and other allied health
professionals in clinics and centers would increase the availability of
services.
ARTICLE 2
CHARITY CARE BY HEALTH CARE PROVIDERS
Section 1. [62J.83] REDUCED PAYMENT AMOUNTS
PERMITTED.
(a) Notwithstanding any provision of chapter 148 or any other
provision of law to the contrary, a health care provider may provide care to a
patient at a discounted payment amount, including care provided for free.
(b) This section does not apply in a situation in which the
discounted payment amount is not permitted under federal law.
Sec. 2. Minnesota
Statutes 2004, section 72A.20, is amended by adding a subdivision to read:
Subd. 39. Discounted payments by health care
providers; effect on use of usual and customary payments. An insurer, including, but not limited to,
a health plan company as defined in section 62Q.01, subdivision 4; a reparation
obligor as defined in section 65B.43, subdivision 9; and a workers'
compensation insurer shall not consider in determining a health care provider's
usual and customary payment, standard payment, or allowable payment used as a
basis for determining the provider's payment by the insurer, the following discounted
payment situations:
(1) care provided to relatives of the provider;
(2)
care for which a discount or free care is given in hardship situations; and
(3) care for which a discount is given in exchange for cash
payment.
For purposes of this subdivision, "health care
provider" and "provider" have the meaning given in section
62J.03, subdivision 8.
Sec. 3. REPEALER.
Minnesota Statutes 2005 Supplement, section 62Q.251, is
repealed.
Sec. 4. EFFECTIVE DATE.
Sections 1 to 3 are effective the day following final
enactment.
ARTICLE 3
PUBLIC EMPLOYEES INSURANCE PROGRAM
Section 1. Minnesota
Statutes 2004, section 43A.316, subdivision 1, is amended to read:
Subdivision 1. Intent.
The legislature finds that the creation of a statewide program to provide
public employees and other eligible persons with life insurance and
hospital, medical, and dental benefit coverage through provider
organizations would result in a greater utilization more
efficient use of government resources and would advance the health and
welfare of the citizens of the state.
Sec. 2. Minnesota
Statutes 2004, section 43A.316, subdivision 2, is amended to read:
Subd. 2. Definitions. For the purpose of this section, the terms
defined in this subdivision have the meaning given them.
(a) Commissioner. "Commissioner"
means the commissioner of employee relations.
(b) Employee. "Employee"
means:
(1) a person who is a public employee within the definition of
section 179A.03, subdivision 14, who is insurance eligible and is employed by
an eligible employer;
(2) an elected public official of an eligible employer who is
insurance eligible;
(3) a person employed by a labor organization or employee
association certified as an exclusive representative of employees of an
eligible employer or by another public employer approved by the commissioner,
so long as the plan meets the requirements of a governmental plan under United
States Code, title 29, section 1002(32); or
(4) a person employed by a county or municipal hospital.
(c) Eligible employer. "Eligible
employer" means:
(1) a public employer within the definition of section
179A.03, subdivision 15, that is a town, county, city, school district as
defined in section 120A.05, service cooperative as defined in section 123A.21,
intermediate district as defined in section 136D.01, Cooperative Center for
Vocational Education as defined in section 123A.22, regional management
information center as defined in section 123A.23, or an education unit
organized under the joint powers action, section 471.59; or
(2)
an exclusive representative of employees, as defined in paragraph (b);
(3) a county or municipal hospital; or
(4) another public employer approved by the commissioner.
(d) Exclusive
representative. "Exclusive representative" means an exclusive
representative as defined in section 179A.03, subdivision 8.
(e) Labor-Management
Committee. "Labor-Management Committee" means the committee
established by subdivision 4.
(f) Program. "Program"
means the statewide public employees insurance buyers group
program created by subdivision 3.
Sec. 3. Minnesota
Statutes 2004, section 43A.316, subdivision 3, is amended to read:
Subd. 3. Public employee insurance buyers
group program. The commissioner
shall be the administrator of the public employee insurance buyers
group program and may determine its funding arrangements. The commissioner may contract with a
qualified entity to perform the administrative functions. The commissioner shall model the program
after the plan established in section 43A.18, subdivision 2, but may modify
adopt variations from that plan, in consultation with the Labor-Management
Committee. The variations may include
different deductibles, coinsurance, co-pays, or other enrollee cost-sharing
provisions. The commissioner may:
(1) develop and administer separately or jointly rated
programs within the public buyers group program, including a separately or
jointly rated and administered program for employees of public school
districts. Separate programs within the
public buyers group program may be pilot or demonstration programs, or
permanent programs;
(2) develop, implement, and administer demonstration or pilot
programs to help explore methods for improving the effectiveness and value of
the public buyers group program;
(3) conduct evaluations and studies to determine the
effectiveness and impact of pilot, demonstration, or other programs as part of
the public buyers group program;
(4) develop, adopt, modify, and implement strategies to
control health care costs and to improve health care outcomes, including, but
not limited to, health care cost and quality measurement and reporting
strategies, pay-for-performance strategies, value-based purchasing strategies,
use of complementary and alternative care, and other demonstrated or emerging
best practices in health care purchasing;
(5) in consultation with the labor management committee in
subdivision 4, develop, adopt, modify, and administer innovative health benefit
designs, including possible tiered arrangements, high deductible plans with
health care savings accounts, special provider networks, incentive programs for
healthy behaviors and health improvement, and other health benefit designs;
(6) temporarily suspend or limit new entrant groups into the
public buyers group program if necessary to maintain the quality,
effectiveness, and viability of the program;
(7) participate as part of broader community, regional, or
national alliances or initiatives, including joint public-private sector
efforts to improve health care purchasing, health care costs, quality, and
outcomes; and
(8)
use and submit additional information to the existing Web site
minnesotahealthinfo.org to provide members and the public with information and
a means to make inquiries to the public buyers group program.
Sec. 4. Minnesota
Statutes 2004, section 43A.316, is amended by adding a subdivision to read:
Subd. 3a. Health improvement programs. The commissioner is authorized to plan,
develop, purchase, administer, and evaluate disease management and other
programs, strategies, and incentives to improve the health and health outcomes
of members.
Sec. 5. Minnesota
Statutes 2004, section 43A.316, subdivision 4, is amended to read:
Subd. 4. Labor-Management Committee. (a) The Labor-Management Committee
consists of ten members appointed by the commissioner. The Labor-Management Committee must comprise
five members who represent employees, including at least one retired employee,
and five members who represent eligible employers. Committee members are eligible for expense
reimbursement in the same manner and amount as authorized by the commissioner's
plan adopted under section 43A.18, subdivision 2. The commissioner shall consult with the
labor-management committee in major decisions that affect the program. The committee shall study issues and make
recommendations relating to the insurance program including, but not
limited to, flexible benefits, utilization review, quality assessment, and cost
efficiency. The committee continues to
exist while the program remains in operation.
(b) The five members of the Labor-Management Committee who
represent employees must be chosen by the commissioner from among persons
nominated as provided in this paragraph.
Exclusive representatives of employees of counties, cities, school
districts, and townships are entitled to nominate two candidates for the
Labor-Management Committee from each of those four categories, and the
commissioner shall appoint one of those two nominees from each category. The commissioner shall choose the fifth
employee to represent retired employees.
(c) The five members of the Labor-Management Committee who
represent employers must be chosen by the commissioner from among persons
nominated as provided in this paragraph.
The Association of Minnesota Counties, Minnesota League of Cities,
Minnesota School Boards Association, and the Minnesota Association of Townships
are each entitled to nominate two candidates for the committee, and the
commissioner shall appoint one of those from each group. The commissioner shall select the fifth
employer member from an employer participating in the program and not
represented by the other four employer members, if any, or if that is not
reasonably possible, the commissioner may appoint any other person as the fifth
employer representative.
Sec. 6. Minnesota
Statutes 2004, section 43A.316, subdivision 5, is amended to read:
Subd. 5. Public employee participation. (a) Participation in the program is subject
to the conditions in this subdivision.
(b) Each exclusive representative for an eligible employer
determines whether the employees it represents will participate in the
program. The exclusive representative
shall make that decision with the advice of a health coverage study group
appointed by the exclusive representative.
The group must be appointed no later than 90 days before the expiration
date of the collective bargaining agreement preceding the date of entry into
the program. The exclusive
representative shall give the employer notice of intent to participate at least
30 60 days before the expiration date of the collective
bargaining agreement preceding the collective bargaining agreement that covers
the date of entry into the program. Either
all or none of the employees represented by an exclusive representative who
participate in the employer's plan must participate in the program. The exclusive representative and the eligible
employer shall give notice to the commissioner of the determination to
participate in the program at least 30 60 days before entry into
the program. Entry into the program is
governed by a schedule established by the commissioner.
(c)
Employees not represented by exclusive representatives may become members of
the program upon a determination of an eligible employer to include these
employees in the program. Either all or
none of the employer's unrepresented employees who participate in the
employer's plan must participate in the program. The eligible employer shall give at least 30
60 days' notice to the commissioner before entering the program. Entry into the program is governed by a
schedule established by the commissioner.
(d) Participation in the program is for a two-year
three-year term. Participation is
automatically renewed for an additional two-year three-year term
unless the exclusive representative, or the employer for
unrepresented employees, gives the commissioner notice of withdrawal at
least 30 60 days before expiration of the participation
period. A group that withdraws must wait
two years before rejoining, except with the approval of the commissioner. An exclusive representative, or employer for
unrepresented employees, may also withdraw if premiums increase 50 percent
by more than 20 percent in excess of the consumer price index for all urban
consumers or more from one insurance year to the next. The commissioner may modify the
participation requirement as part of a demonstration or pilot effort. Any modifications must be clearly
communicated to all employers who are members of the public buyers group
program, and incorporated into any information about the program, at least 90
days prior to the change becoming effective.
The modifications must apply on an equal basis to all current and
prospective employers enrolled in the program.
(e) To improve the stability and effectiveness of the
public buyers group program, the commissioner, in consultation with the
Labor-Management Committee and other experts, may explore mutual gain-sharing
arrangements, discounts, incentives, or penalties for public employers based on
the length of their continuous membership in the public buyers group program
and other factors. Any incentives for
long-term membership in the program must be: (1) consistent with the program's goals
of maintaining the overall integrity and viability of the program; (2)
consistent with other applicable laws, rules, and policies; and (3) available
to all groups on equal terms. The terms
of any incentives for long-term participation in the program must be clearly
communicated to all employers who are members of the public buyers group
program and incorporated into any information about the program. Any administration of the incentives or
changes must be communicated at least 90 days prior to each employer's renewal
date before the change may become effective.
The commissioner, in consultation with the Labor-Management Committee,
shall report to the legislature and the governor by January 15, 2008, and
annually thereafter, on the adequacy of the participation requirement and any
special incentives based on the length of participation in helping maintain the
stability and effectiveness of the public buyers group program.
(f) The exclusive representative shall give the
employer shall give notice of intent to withdraw to the commissioner at
least 30 60 days before the expiration date of a collective
bargaining agreement that includes the date on which the term of participation
expires.
(f) (g) Each participating eligible
employer shall notify the commissioner of the names of individuals who
will be participating within two weeks of after the commissioner receiving
receives notice of the parties' intent to participate. The employer shall also submit other
information as required by the commissioner for administration of the program.
(h) An employer that withdraws from the program under
circumstances that do not permit withdrawal under this subdivision is liable to
the board for premiums payable by the employer until the time that the employer
is eligible to withdraw, and the employer shall pay those premiums voluntarily
and no later than their due date. If the
premiums are not paid voluntarily, the board has authority to and shall collect
these premiums under any method permitted by law for a governmental or
nongovernmental creditor of the employer.
Sec. 7. Minnesota
Statutes 2004, section 43A.316, is amended by adding a subdivision to read:
Subd. 5a. Participating employers. Employers participating in the public
buyers group program and employers considering participation in the public buyers
group program shall not be refused or impeded by the program in their efforts
to obtain the utilization or claims data needed by the employer to seek
alternative bids for insurance
coverage. The ability of participating
employers to secure their data for the purposes of seeking alternative bids for
coverage exists regardless of any other program participation requirements or
incentives for long-term participation in the program. Participating employers must not be charged
for the report generated to satisfy this subdivision.
Sec. 8. Minnesota
Statutes 2004, section 43A.316, is amended by adding a subdivision to read:
Subd. 5b. School district's bids. School districts eligible for the public
buyers group program must request bids for insurance coverage through the
public buyers group program at least once every four years. This subdivision does not require school
districts eligible for the program to purchase coverage through the program. Other public employers are encouraged to seek
bids from the public buyers group program at least once every four years.
Sec. 9. Minnesota
Statutes 2004, section 43A.316, subdivision 6, is amended to read:
Subd. 6. Coverage. (a) By January 1, 1989, The
commissioner shall announce the benefits of the program. The program shall include employee hospital,
medical, and dental, and life insurance for employees and hospital
and medical benefits for dependents.
Health maintenance organization options and other delivery system
options may be provided if they are available, cost-effective, and capable of
servicing the number of people covered in the program. Participation in optional coverages may be
provided by collective bargaining agreements.
For employees not represented by an exclusive representative, the employer
may offer the optional coverages to eligible employees and their dependents
provided in the program. Health
coverage must include at least the benefits required of a health plan company
regulated under chapter 62A, 62C, 62D, or 62Q.
(b) The commissioner, with the assistance of the
Labor-Management Committee, shall periodically assess whether it is financially
feasible for the program to offer or to continue an individual retiree program
that has competitive premium rates and benefits. If the commissioner determines it to be
feasible to offer an individual retiree program, the commissioner shall
announce the applicable benefits, premium rates, and terms of
participation. Eligibility to
participate in the individual retiree program is governed by subdivision 8, but
applies to retirees of eligible employers that do not participate in the
program and to those retirees' dependents and surviving spouses.
Sec. 10. Minnesota
Statutes 2004, section 43A.316, subdivision 6a, is amended to read:
Subd. 6a. Chiropractic services Choice of
type of provider. All benefits
provided by the program or a successor program relating to expenses
incurred for medical treatment or services of a physician health care
provider must also include chiropractic treatment and services of a
chiropractor any other type of licensed, certified, or registered health
care provider to the extent that the chiropractic services and
treatment are within the scope of chiropractic licensure the
provider's licensure, certification, or registration.
This subdivision is intended to provide equal access to
benefits for program members who choose to obtain treatment for illness or
injury from a doctor of chiropractic, as long as the treatment falls within the
chiropractor's scope of practice. This
subdivision is not intended to change or add to the benefits provided for in
the program.
Sec. 11. Minnesota
Statutes 2004, section 43A.316, subdivision 7, is amended to read:
Subd. 7. Premiums. (a) The proportion of premium paid by
the employer and employee is subject to collective bargaining or personnel
policies. If, at the beginning of the
coverage period, no collective bargaining agreement has been finalized, the
increased dollar costs, if any, from the previous year is the sole
responsibility of the individual participant until a collective bargaining
agreement states otherwise. Premiums,
including an administration fee, shall be established by the commissioner. The commissioner may decide to rate
specific employers separately for premium purposes, if the commissioner
determines that doing so is in the best interests of the program. Each employer shall pay monthly the amounts
due for employee benefits including the amounts under subdivision 8 to the commissioner
no later than the dates established by the commissioner. If an employer fails to make the payments as
required, the commissioner may shall cancel program benefits and
pursue other civil remedies, as provided in subdivision 5, paragraph (d).
(b) The premium charged for an employer's first month in the
program may be up to three times the regular monthly premium charged to that
employer, to help establish and maintain the program's financial
resources. The extra premiums, if paid,
must be refunded to the employer if the employer leaves the program, if the
refund would not reduce the program's reserves below the level determined to be
appropriate by the commissioner.
(c) The commissioner must provide bids, including the premiums
to be charged, to eligible employers that request bids, no later than 90 days
prior to the date the coverage would begin or renew.
Sec. 12. Minnesota
Statutes 2004, section 43A.316, subdivision 8, is amended to read:
Subd. 8. Continuation of coverage. (a) A former employee of an employer
participating in the program who is receiving a public pension disability
benefit or an annuity or has met the age and service requirements necessary to
receive an annuity under chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or
424, and the former employee's dependents, are eligible to participate in the
program. This participation is at the
person's expense unless a collective bargaining agreement or personnel policy
provides otherwise. Premiums for these
participants must be established by the commissioner.
The commissioner may provide policy exclusions for preexisting
conditions only when there is a break in coverage between a participant's
coverage under the employment-based group insurance program and the
participant's coverage under this section.
An employer shall notify an employee of the option to participate under
this paragraph no later than the effective date of retirement. The retired employee or the employer of a
participating group on behalf of a current or retired employee shall notify the
commissioner within 30 days of the effective date of retirement of intent to
participate in the program according to the rules established by the
commissioner.
(b) The spouse of a deceased employee or former employee may
purchase the benefits provided at premiums established by the commissioner if
the spouse was a dependent under the employee's or former employee's coverage
under this section at the time of the death.
The spouse remains eligible to participate in the program as long as the
group that included the deceased employee or former employee participates in
the program spouse chooses to do so.
Coverage under this clause must be coordinated with relevant insurance
benefits provided through the federally sponsored Medicare program.
(c) The program benefits must continue in the event of strike
permitted by section 179A.18, if the exclusive representative chooses to have
coverage continue and the employee pays the total monthly premiums when due.
(d) A participant who discontinues coverage may not reenroll.
(d) Persons participating under these paragraphs
this subdivision shall make appropriate premium payments in the time and
manner established by the commissioner. They
are not subject to the payment of extra payments that may be required under
subdivision 7, paragraph (b).
Sec. 13. Minnesota
Statutes 2004, section 43A.316, is amended by adding a subdivision to read:
Subd. 9a. Report. The commissioner shall report biennially
to the governor and legislature on March 1 of each odd-numbered year. The report must include information on
membership, finances, operations, effectiveness, and impact of the public
buyers group program. The report may
include discussion of changes and innovations, particularly with respect to
improving health care costs, quality, and outcomes, and any issues or
challenges faced by the program and how they might be addressed. The report must be posted on a Web site
maintained by or for the public buyers group program, and must be available to
the public.
Sec.
14. Minnesota Statutes 2004, section
43A.316, subdivision 10, is amended to read:
Subd. 10. Exemption. The public employee insurance
buyers group program and, where applicable, the employers participating in
it are exempt from chapters 60A, 62A, 62C, 62D, 62E, and 62H, section 471.617,
subdivisions 2 and 3, and the bidding requirements of section 471.6161,
except as otherwise provided in subdivision 6, paragraph (a).
Sec. 15. Minnesota
Statutes 2004, section 43A.316, is amended by adding a subdivision to read:
Subd. 11. Reinsurance. The commissioner may, on behalf of the
program, participate in an insured or self-insured reinsurance pool.
ARTICLE 4
MINNESOTA EMPLOYEES INSURANCE PROGRAM
Section 1. Minnesota
Statutes 2004, section 43A.317, is amended to read:
43A.317 MINNESOTA EMPLOYEES
INSURANCE PROGRAM.
Subdivision 1. Intent.
The legislature finds that the creation of a statewide program to
provide employers with the advantages of a large pool for insurance purchasing
would advance the welfare of the citizens of the state.
Subd. 2. Definitions. (a) Scope. For the purposes of this section, the
terms defined have the meaning given them.
(b) Commissioner
Board. "Commissioner" means the commissioner of employee
relations. "Board" means the board of directors created under
subdivision 4.
(c) Eligible employee.
"Eligible employee" means an employee eligible to participate in
the program under the terms described in subdivision 6.
(d) Eligible employer.
"Eligible employer" means an employer eligible to participate in
the program under the terms described in subdivision 5.
(e) Eligible
individual. "Eligible individual" means a person eligible to
participate in the program under the terms described in subdivision 6.
(f) Employee. "Employee"
means an employee of an eligible employer. "Employee" includes a sole
proprietor, partner of a partnership, member of a limited liability company, or
independent contractor.
(g) Employer. "Employer"
means a private person, firm, corporation, partnership, limited liability
company, association, or other entity actively engaged in business or public
services. "Employer" includes both for-profit and nonprofit entities.
(h) Program. "Program"
means the Minnesota employees insurance program created by this section.
Subd. 3. Entity status and administration. unincorporated
association and may incorporate as a Minnesota nonprofit corporation under
chapter 317A. The board shall have all
powers available under that chapter, except to the extent inconsistent with
this section. The After consulting with the chairs of the
senate Governmental Operations and Veterans Committee and the house of
representatives Governmental Operations and Veterans Affairs Policy Committee,
the commissioner may determine when the program provided under this section is
available. When the commissioner makes
the program available, The board is created and may operate as an commissioner
board shall, consistent with the provisions of this section, administer the
program and determine its coverage options, funding and premium arrangements,
contractual arrangements, and all other matters necessary to administer the
program. The commissioner's
contracting authority for the program, including authority for competitive
bidding and negotiations, is governed by section 43A.23.
Subd. 4. Advisory committee Board of
directors. After the
commissioner consults as required in subdivision 3 and then determines to make
the program available, The commissioner governor shall establish
a appoint an initial ten-member advisory committee board
of directors that includes five members who represent eligible employers and
five, two members who represent eligible individuals. The committee shall advise the commissioner
on issues related to administration of the program. The committee is governed by sections 15.014
and 15.059, and continues to exist while the program remains in operation.,
and three public members, for initial terms of two years for five directors and
three years for the other five directors.
Subsequent board members shall be appointed by the governor to serve
staggered three-year terms. The governor
may decide when to activate the board and the program by making the initial
appointments.
Subd. 5. Employer eligibility. (a) Procedures. All employers are eligible for coverage
through the program subject to the terms of this subdivision. The commissioner board shall
establish procedures for an employer to apply for coverage through the program.
(b) Term. The initial term of an employer's
coverage may must be for up to at least two years
from the effective date of the employer's application. After that, coverage will be automatically
renewed for an additional term of two years unless the employer gives
notice of withdrawal from the program according to procedures established by
the commissioner board or the commissioner board
gives notice to the employer of the discontinuance of the program. The commissioner board may
establish conditions under which an employer may withdraw from the program
prior to the expiration of a term, including by reason of an increase in health
coverage premiums of 50 percent or more from one insurance year to the
next. An employer that withdraws from
the program may not reapply for coverage for a period of time equal to its
initial term of coverage two years.
(c) Minnesota work
force. An employer is not eligible
for coverage through the program if five 50 percent or more of
its eligible employees work primarily outside Minnesota, except that an
employer that either does or does not meet that requirement may apply to
the program on behalf of only those employees who work primarily in Minnesota,
and the board may accept or reject the application.
(d) Employee
participation; aggregation of groups. An
employer is not eligible for coverage through the program unless its
application includes all eligible employees who work primarily in Minnesota,
except employees who waive coverage as permitted by subdivision 6. Private entities that are eligible to file a
combined tax return for purposes of state tax laws are considered a single
employer, except as otherwise approved by the commissioner board.
(e) Private
employer. A private employer is not
eligible for coverage unless it has two or more eligible employees who live in
the state of Minnesota. If an employer
has only two eligible employees and one is the spouse, child, sibling, parent,
or grandparent of the other, the employer must be a Minnesota domiciled
employer and have paid Social Security or self-employment tax on behalf of both
eligible employees.
(f) Minimum
participation. The commissioner must
require as a condition of employer eligibility that at least 75 percent of its
eligible employees who have not waived coverage participate in the
program. The participation level of
eligible employees must be determined at the initial offering of coverage and
at the renewal date of coverage. For purposes of this section, waiver of
coverage includes only waivers due to coverage under another group health
benefit plan. eligible for waiver under section 62L.03, subdivision 3,
paragraph (a). An employer may not offer
any employee health coverage other than that offered by the board, except with
prior approval of the board.
(g) Employer
contribution. The commissioner
board must require as a condition of employer eligibility that the employer
contribute at least 50 percent toward the cost of the premium of the employee
and may require that the contribution toward the cost of coverage is structured
in a way that promotes price competition among the coverage options available
through the program.
(h) Enrollment
cap. The commissioner
board may limit employer enrollment in the program if necessary to avoid
exceeding the program's reserve capacity.
Subd. 6. Individual eligibility. (a) Procedures. The commissioner board
shall establish procedures for eligible employees and other eligible
individuals to apply for coverage through the program.
(b) Employees. An employer shall determine when it
applies to the program the criteria its employees must meet to be eligible for
coverage under its plan. An employer may
subsequently change the criteria annually or at other times with approval of
the commissioner board.
The criteria must provide that new employees become eligible for coverage
after a probationary period of at least 30 days, but no more than 90 days.
(c) Other
individuals. An employer may elect
to cover under its plan:
(1) the spouse, dependent children, and dependent
grandchildren of a covered employee;
(2) a retiree who is eligible to receive a pension or annuity
from the employer and a covered retiree's spouse, dependent children, and
dependent grandchildren;
(3) the surviving spouse, dependent children, and dependent
grandchildren of a deceased employee or retiree, if the spouse, children, or
grandchildren were covered at the time of the death;
(4) a covered employee who becomes disabled, as provided in
sections 62A.147 and 62A.148; or
(5) any other categories of individuals for whom group
coverage is required by state or federal law.
An employer shall determine when it applies to the program
the criteria individuals in these categories must meet to be eligible for
coverage. An employer may subsequently
change the criteria annually, or at other times with approval of the commissioner
board. The criteria for dependent
children and dependent grandchildren may be no more inclusive than the criteria
under section 43A.18, subdivision 2.
This paragraph shall not be interpreted as relieving the program from
compliance with any federal and state continuation of coverage requirements.
(d) Waiver and late
entrance. An eligible individual may
waive coverage at the time the employer joins the program or when coverage
first becomes available. The commissioner
board may establish a preexisting condition exclusion of not more than 18
months for late entrants as defined in section 62L.02, subdivision 19.
(e) Continuation
coverage. The program shall provide
all continuation coverage required by state and federal law.
Subd. 7. Coverage. Coverage provide
coverage through contracts with carriers, unless the commissioner receives no
reasonable bids from carriers; through a group self-insured arrangement
under chapter 62H; or through a combination of those methods. The board may, on behalf of the program,
participate in an insured or self-insured reinsurance pool. is available through the program
beginning on July 1, 1993. Until an
arrangement is in place to provide coverage may be provided through
a transfer of risk to one or more carriers regulated under chapter 62A, 62C, or
62D, the commissioner shall solicit bids under section 43A.23, from carriers
regulated under chapters 62A, 62C, and 62D, to provide coverage of eligible
individuals. The commissioner shall
(a) Health
coverage. Health coverage is
available to all employers in the program.
The commissioner board shall attempt to establish health
coverage options that have strong care management features to control costs and
promote quality and shall attempt to make a choice of health coverage options
available. Health coverage for a retiree
who is eligible for the federal Medicare program must be administered as though
the retiree is enrolled in Medicare parts A and, B, and D. To the extent feasible as determined by
the commissioner and in the best interests of the program, the commissioner
shall model coverage after the plan established in section 43A.18, subdivision
2. Health coverage must include at
least the benefits required of a carrier regulated under chapter 62A, 62C, or
62D for comparable coverage. Coverage
under this paragraph must not be provided as part of the health plans available
to state employees.
(b) Choice of
providers. All benefits
provided by the program relating to expenses incurred for medical treatment or
services of a health care provider must also include treatment and services of
any other type of licensed, certified, or registered health care provider to
the extent that the services and treatment are within the scope of the
provider's licensure, certification, or registration.
(c) Optional
coverages. In addition
to offering health coverage, the commissioner board may arrange
to offer dental or other health-related coverage through the
program. Employers with health coverage
may choose to offer dental or other health-related coverage according to
the terms established by the commissioner board.
(c) (d) Open
enrollment. The program
must meet all underwriting requirements of chapter 62L and must provide
periodic open enrollments for eligible individuals for those coverages where a
choice exists.
(d) (e) Technical
assistance. The commissioner
board may arrange for technical assistance and referrals for eligible
employers in areas such as health promotion and wellness, employee benefits
structure, tax planning, and health care analysis services as described in
section 62J.2930.
Subd. 8. Premiums. (a) Payments. Employers enrolled in the program shall
pay premiums according to terms established by the commissioner board. If an employer fails to make the required
payments, the commissioner board may cancel coverage and pursue
other civil remedies.
(b) Rating
method. The commissioner
board shall determine the premium rates and rating method for the
program. The rating method for eligible
small employers must meet or exceed the requirements of chapter 62L. The rating methods must recover in premiums
all of the ongoing costs for state administration and for maintenance of
a premium stability and claim fluctuation reserve. On June 30, 1999, after paying all
necessary and reasonable expenses, the commissioner must apply up to $2,075,000
of any remaining balance in the Minnesota employees' insurance trust fund to
repayment of any amounts drawn or expended for this program from the health
care access fund. The board may
decide to rate specific employers separately for premium purposes if the board
determines that doing so is in the best interests of the program.
(c) Taxes and
assessments. To the extent that the
program operates as a self-insured group, the premiums paid to the program are
not subject to the taxes imposed by chapter 297I, but the program is subject to
a Minnesota Comprehensive Health Association assessment under section 62E.11.
(d) The board may require that employers entering the program
pay a premium of up to three times the normal monthly premium as a contribution
to reserves. If an employer leaves the
program, the board may refund the excess premium if the program's reserves would
remain adequate in the judgment of the board.
Subd.
9. Minnesota
employees insurance trust fund.
(a) Contents. The Minnesota employees insurance trust
fund in the state treasury consists of deposits received from eligible
employers and individuals, contractual settlements or rebates relating to the
program, investment income or losses, and direct appropriations.
(b) Appropriation. All money in the fund is appropriated to
the commissioner to pay insurance premiums, approved claims, refunds,
administrative costs, and other costs necessary to administer the program.
(c) Reserves. (a) For any
coverages for which the program does not contract to transfer full financial
responsibility, the commissioner board shall establish and
maintain reserves:
(1) for claims in process, incomplete and unreported claims,
premiums received but not yet earned, and all other accrued liabilities; and
(2) to ensure premium stability and the timely payment of
claims in the event of adverse claims experience. The reserve for premium stability and claim
fluctuations must be established according to the sound actuarial
standards of section 62C.09, subdivision 3, except that the reserve may
exceed the upper limit under this standard until July 1, 1997.
(d) Investments.
The State Board of Investment shall invest the fund's assets according to
section 11A.24. Investment income and
losses attributable to the fund must be credited to the fund.
(b) If the board determines that it needs additional funds
for start-up costs, the board may access additional funds as needed in the form
of loans from the health care access fund, not to exceed a total indebtedness
of $1,000,000 at any one time. Such
loans accrue interest at three percent per annum simple interest and must be
payable in monthly installments beginning no later than two years after the
board first provides coverage and must be fully repaid no later than five years
after that date. The monthly repayment
installments must be reamortized as needed to reflect repayments and additional
loan amounts accessed so that monthly installments will be sufficient to repay
the existing balance, including accrued interest, at the end of that five-year
period. The board may make additional
repayments of principal and interest at any time. The $1,000,000 amount is available until the
end of that five-year period. Amounts of
principal repaid are available to be accessed for new loans within that period.
Subd. 10. Program status. The Minnesota employees insurance program is
a state state-created program to provide the advantages of a
large pool to small employers for purchasing providing
health coverage, other coverages, and related services from insurance
companies, health maintenance organizations, and other organizations. The program is not an insurance company. Coverage under this program shall be
considered a certificate of insurance or similar evidence of coverage and is
subject to all applicable requirements of chapters 60A, 62A, 62C, 62D, 62E,
62H, 62L, and 72A, and is subject to regulation by the commissioner of commerce
to the extent applicable.
Subd. 12. Status of agents. Notwithstanding sections 60K.49 and 72A.07,
the program may use, and pay referral fees, commissions, or other compensation
to, agents licensed as insurance producers under chapter 60K or licensed under
section 62C.17, regardless of whether the agents are appointed to represent the
particular health carriers or community integrated service networks that
provide the coverage available through the program. When acting under this subdivision, an agent
is not an agent of the health carrier or community integrated service network,
with respect to that transaction.
Sec. 2. APPROPRIATION.
$1,000,000 is appropriated from the health care access fund
to the commissioner of employee relations for the as-needed loans to the
Minnesota employees insurance program, as provided in Minnesota Statutes,
section 43A.317, subdivision 9, paragraph (b).
ARTICLE
5
PRIVATE SECTOR HEALTH COVERAGE PROVISIONS
Section 1. Minnesota
Statutes 2004, section 62D.095, subdivision 3, is amended to read:
Subd. 3. Deductibles. (a) A health maintenance contract
issued by a health maintenance organization that is assessed less than three
percent of the total annual amount assessed by the Minnesota comprehensive
health association may impose deductibles not to exceed $3,000
$5,000 per person, per year and $6,000 $10,000 per family,
per year. For purposes of the
percentage calculation, a health maintenance organization's assessments include
those of its affiliates.
(b) All other health maintenance contracts may impose
deductibles not to exceed $2,250 per person, per year and $4,500 per family,
per year.
Sec. 2. Minnesota
Statutes 2004, section 62D.095, subdivision 4, is amended to read:
Subd. 4. Annual out-of-pocket maximums. (a) A health maintenance contract
issued by a health maintenance organization that is assessed less than three
percent of the total annual amount assessed by the Minnesota comprehensive
health association must include a limitation not to exceed $4,500
$5,000 per person and $7,500 $10,000 per family on total
annual out-of-pocket enrollee cost-sharing expenses. For purposes of the percentage
calculation, a health maintenance organization's assessments include those of
its affiliates.
(b) All other health maintenance contracts must include a
limitation not to exceed $3,000 per person and $6,000 per family on total
annual out-of-pocket enrollee cost-sharing expenses.
Sec. 3. Minnesota
Statutes 2004, section 62D.095, is amended by adding a subdivision to read:
Subd. 5a. Lifetime maximum benefit. A health maintenance contract issued by a
health maintenance organization may impose a lifetime maximum benefit no less
than $3,000,000. At no time shall a
health maintenance organization impose a lifetime maximum lower than the
required lifetime maximum of the comprehensive health insurance plan under
section 62E.12.
Sec. 4. [62Q.645] DISTRIBUTION OF INFORMATION;
ADMINISTRATIVE EFFICIENCY AND COVERAGE OPTIONS.
(a) The commissioner may use reports submitted by health plan
companies, service cooperatives, and the public employee insurance program
created in section 43A.316 to compile entity specific administrative efficiency
report cards; may make these report cards available on state agency Web sites,
including minnesotahealthinfo.com; and may include information on:
(1) number of covered lives;
(2) covered services;
(3) geographic availability;
(4) whom to contact to obtain current premium rates;
(5) administrative costs, using the definition of
administrative costs developed under section 62J.38;
(6)
Internet links to information on the health plan, if available; and
(7) any other information about the health plan identified by
the commissioner as being useful for employers, consumers, providers, and
others in evaluating health plan options.
(b) This section does not apply to a health plan company
unless its annual Minnesota premiums exceed $50,000,000 based on the most
recent assessment base of the Minnesota Comprehensive Health Association. For purposes of this determination, the
premiums of a health plan company include those of its affiliates.
Sec. 5. MEDICAL MALPRACTICE INSURANCE REPORT.
(a) The commissioner of commerce shall provide to the
legislature, no later than June 1 each year, a brief written report on the
status of the market for medical malpractice insurance in Minnesota. The report must summarize, interpret,
explain, and analyze information on that subject available to the commissioner,
through annual statements filed by insurance companies, information obtained
under paragraph (c), and other sources.
(b) The annual report must consider, to the extent possible,
Minnesota specific data on market shares; premiums received; amounts paid to
settle claims that were not litigated, claims that were settled after
litigation began, and claims that were litigated to court judgment; amounts
spent on processing, investigation, litigation, and otherwise handling claims;
other sales and administrative costs; and the loss ratios of the insurers.
(c) Each insurance company that provides medical malpractice
insurance in this state shall, no later than April 1 each year, file with the
commissioner of commerce, on a form prescribed by the commissioner, the
Minnesota specific data referenced in paragraph (b), other than market share,
for the previous calendar year for that insurance company, shown separately for
the categories of coverage provided to hospitals, medical clinics, nursing
homes, physicians who provide emergency medical care, obstetrician
gynecologists, and ambulance services.
An insurance company need not comply with this paragraph if its direct
premium written in the state for the previous calendar year is less than
$2,000,000.
ARTICLE 6
SERVICE COOPERATIVES
Section 1. Minnesota
Statutes 2004, section 123A.21, subdivision 7, is amended to read:
Subd. 7. Educational programs and services. (a) The board of directors of each SC
shall submit annually a plan to the members.
The plan shall identify the programs and services which are suggested
for implementation by the SC during the following year and shall contain
components of long-range planning determined by the SC. These programs and services may include, but
are not limited to, the following areas:
(1) administrative services;
(2) curriculum development;
(3) data processing;
(4) distance learning and other telecommunication services;
(5) evaluation and research;
(6) staff development;
(7)
media and technology centers;
(8) publication and dissemination of materials;
(9) pupil personnel services;
(10) planning;
(11) secondary, postsecondary, community, adult, and adult
vocational education;
(12) teaching and learning services, including services for
students with special talents and special needs;
(13) employee personnel services;
(14) vocational rehabilitation;
(15) health, diagnostic, and child development services and
centers;
(16) leadership or direction in early childhood and family
education;
(17) community services;
(18) shared time programs;
(19) fiscal services and risk management programs,
including health reinsurance programs;
(20) technology planning, training, and support services;
(21) health and safety services;
(22) student academic challenges; and
(23) cooperative purchasing services.
(b) A service cooperative may contract for goods and services
in conjunction with its health reinsurance programs, including management,
actuarial, investment, and legal services from others within or without this
state to ensure the efficient operation of these programs. It shall rebid its contracts for reinsurance
that it purchases at least every two years.
(c) A health reinsurance program operated by one or more
service cooperatives may:
(1) provide reinsurance or stop-loss coverage to nursing
homes licensed under chapter 144A and boarding care homes licensed under
sections 144.50 to 144.56 and certified for participation in the medical
assistance program located in this state; and
(2) determine premiums for its reinsurance or stop-loss
coverage individually for specific employers or may determine them on a pooled
or other basis established by the SC.
(d) A health coverage program provided by one or more service
cooperatives:
(1)
may provide coverage to nursing homes licensed under chapter 144A and boarding
care homes licensed under sections 144.50 to 144.56 and certified for
participation in the medical assistance program located in this state;
(2) must rebid contracts for insurance and third-party
administration at least every four years;
(3) must comply with section 72.20, subdivision 26,
notwithstanding section 13.203, and must also provide that same information to
exclusive representatives of the employees upon request. A service cooperative shall not terminate
coverage, exclude an employer from future coverage, or otherwise penalize an
employer for seeking bids from other sources of health coverage; and
(4) must provide bids for initial issuance or renewal of
coverage upon request to eligible employers no later than 90 days prior to the
expected beginning or renewal date of coverage.
Sec. 2. Minnesota
Statutes 2004, section 471.61, is amended by adding a subdivision to read:
Subd. 6. Reinsuring health risks. Any political subdivision, or any two or
more political subdivisions acting jointly, may provide for the reinsuring of
risks incurred as a result of providing the insurance or protection authorized
by this section by participating in a pool operated by a service cooperative or
cooperatives pursuant to section 471.617, subdivision 3a.
Sec. 3. Minnesota
Statutes 2004, section 471.617, subdivision 3, is amended to read:
Subd. 3. Stop-loss coverage. Any self-insurance plan covering fewer than
1,000 employees shall include excess or stop-loss coverage provided by a
licensed insurance company, an insurance company approved pursuant to sections
60A.195 to 60A.209, or service plan corporation, but excess or stop-loss
coverage need not be obtained for long-term disability.
This excess or stop-loss coverage shall cover all eligible
claims incurred during the term of the policy or contract. In addition to excess or stop-loss coverage,
the self-insurance plan shall provide for reserving of an appropriate amount of
funds to cover the estimated cost of claims incurred, but unpaid, during the term
of the policy or contract which shall be added to the expected claim
level. These funds shall be in addition
to funds reserved to cover the claims paid during the term of the policy or
contract. The excess or stop-loss
coverage shall be provided at levels in excess of self-insured retention which
is appropriate, taking into account the number of covered persons in the group.
Coverage under subdivision 3a qualifies under this
subdivision.
Sec. 4. Minnesota
Statutes 2004, section 471.617, is amended by adding a subdivision to read:
Subd. 3a. Reinsurance pools. A statutory or home rule charter city,
county, school district, or instrumentality of any of them may provide for the
reinsuring of risks incurred as a result of providing the health benefits authorized
by this section through a pool operated by a service cooperative or
cooperatives established pursuant to section 123A.21.
Sec. 5. EFFECTIVE DATE.
Sections 1 to 4 are effective the day following final
enactment.
ARTICLE
7
MEDICAL LIABILITY
Section 1. [604.111] MEDICAL LIABILITY; USE OF
PROVIDER'S APOLOGY.
Subdivision 1.
Apology not admission; medical
liability. In any civil
action brought by an alleged victim of an unanticipated outcome of medical
care, or in any arbitration proceeding related to such civil action, any and
all statements, affirmations, gestures, or conduct expressing apology, fault,
sympathy, commiseration, condolence, compassion, or a general sense of
benevolence, which are made by a health care provider or an employee of a
health care provider to the alleged victim, a relative of the alleged victim,
or a representative of the alleged victim and which relate to the discomfort,
pain, suffering, injury, or death of the alleged victim as a result of the
unanticipated outcome of medical care shall be inadmissible as evidence of an
admission of liability or as evidence of an admission against interest or as an
excited utterance.
Subd. 2. Definitions. For purposes of this section, unless the
context otherwise requires:
(a) "Health care provider" means any person
licensed, certified, or registered in this state to deliver health care and any
clinic, pharmacy, hospital, or other health facility located in this
state. The term includes any
professional corporation or other professional entity comprised of such health
care providers as permitted by the laws of this state.
(b) "Relative" means a victim's spouse, parent,
grandparent, stepfather, stepmother, child, grandchild, brother, sister, half
brother, half sister, or spouse's parents.
The term includes those relationships if created as a result of
adoption. In addition, relative includes
any person who is a member of the victim's household.
(c) "Representative" means a legal guardian,
attorney, person designated to make decisions on behalf of a patient under a
health care power of attorney, or any person recognized in law or custom as a
patient's agent.
(d) "Unanticipated outcome" means the outcome of a
medical treatment or procedure that differs from an expected result.
EFFECTIVE
DATE; APPLICATION. This section
is effective January 1, 2007, and applies to causes of action arising on or
after that date."
Delete the title and insert:
"A bill for an act relating to health; establishing
evidence-based practice standards; requiring a report on uncompensated care and
reporting on acquired infections; authorizing a study on alternative and
complimentary health care; permitting discounted health care payments under
certain circumstances; modifying provisions in the public employees insurance
program and Minnesota employees insurance program; modifying private sector
health coverage provisions; allowing service cooperatives to contract for goods
and services under certain conditions; adding a provision for medical
liability; appropriating money; amending Minnesota Statutes 2004, sections
43A.316, subdivisions 1, 2, 3, 4, 5, 6, 6a, 7, 8, 10, by adding subdivisions;
43A.317; 62D.095, subdivisions 3, 4, by adding a subdivision; 72A.20, by adding
a subdivision; 123A.21, subdivision 7; 144.698, by adding a subdivision;
151.214, subdivision 1; 471.61, by adding a subdivision; 471.617, subdivision
3, by adding a subdivision; Minnesota Statutes 2005 Supplement, section
214.071; proposing coding for new law in Minnesota Statutes, chapters 62J; 62M;
62Q; 144; 214; 604; repealing Minnesota Statutes 2005 Supplement, section
62Q.251."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Governmental Operations and Veterans
Affairs.
The report was adopted.
Johnson,
J., from the Committee on Civil Law and Elections to which was referred:
H. F. No. 1888, A bill for an act relating to government data
practices; requiring destruction of disposed private or confidential data;
amending Minnesota Statutes 2004, sections 13.05, subdivision 5; 138.17,
subdivision 7.
Reported the same back with the following amendments:
Page 1, line 9, before "The" insert "(a)"
Page 1, line 14, delete the new language
Page 1, delete lines 15 to 17 and insert:
"(b) When not public data, as defined in section
13.02, subdivision 8a, is being disposed of, the data must be destroyed in a
way that prevents its contents from being determined."
Page 2, line 30, delete the new language
Page 2, delete lines 31 to 34, and insert "When
records containing not public data as defined in section 13.02, subdivision 8a,
are being disposed of under this subdivision, the records must be destroyed in
a way that prevents their contents from being determined."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Commerce and Financial Institutions.
The report was adopted.
Bradley from the Committee on Health Policy and Finance to
which was referred:
H. F. No. 2147, A bill for an act relating to public safety;
requiring the commissioner of health to develop methamphetamine offender
education materials; requiring sheriffs to provide inmates with methamphetamine
education materials; proposing coding for new law in Minnesota Statutes,
chapters 144; 387.
Reported the same back with the following amendments:
Page 1, line 16, delete the comma and insert "and at
orientation"
Page 1, line 17, delete everything after "jail"
and insert "unit"
Page 1, line 18, delete everything before "with"
Page 1, line 21, delete "methamphetamine" and
insert "all"
Page 2, line 3, delete "2005" and insert
"2006"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Public Safety Policy and Finance.
The report was adopted.
Tingelstad
from the Committee on Governmental Operations and Veterans Affairs to which was
referred:
H. F. No. 2362, A bill for an act relating to retirement;
Minneapolis Teachers Retirement Fund Association and expanded list plans;
clarifying mutual fund authority; revising investment authority to exclude
below-investment grade bonds; amending Minnesota Statutes 2004, sections
354A.28, subdivision 5; 356A.06, subdivision 7.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
MINNESOTA STATE RETIREMENT SYSTEM
CONTRIBUTION INCREASES
Section 1. Minnesota
Statutes 2004, section 352.04, subdivision 2, is amended to read:
Subd. 2. Employee contributions. The employee contribution to the fund must be
equal to 4.0 the following percent of salary.:
before
July 1, 2007 4.00
from
July 1, 2007, to June 30, 2008 4.25
from
July 1, 2008, to June 30, 2009 4.50
from
July 1, 2009, to June 30, 2010 4.75
from
July 1, 2010, and thereafter 5.00.
These contributions must be made by deduction from
salary as provided in subdivision 4.
Sec. 2.
Minnesota Statutes 2004, section 352.04, subdivision 3, is amended to
read:
Subd. 3. Employer contributions. The employer contribution to the fund must be
equal to 4.0 the following percent of salary.:
before
July 1, 2007 4.00
from
July 1, 2007, to June 30, 2008 4.25
from
July 1, 2008, to June 30, 2009 4.50
from
July 1, 2009, to June 30, 2010 4.75
from
July 1, 2010, and thereafter 5.00.
Sec. 3. [352.045] PROCEDURE FOR REVISING
EMPLOYEE AND EMPLOYER CONTRIBUTIONS IN CERTAIN INSTANCES.
Subdivision 1.
Application. This section applies to the general state
employees retirement plan and the correctional state employees retirement plan
under this chapter, and to the state patrol retirement plan under
chapter 352B.
Subd. 2.
Determination. For purposes of this section, a
contribution sufficiency exists if, for purposes of the applicable plan, the
total of the employee contributions, the employer contributions, and any
additional employer contributions, if applicable, exceeds the total of the
normal cost, the administrative expenses, and the amortization contribution of
the retirement plan as reported in the most recent actuarial valuation of the retirement
plan prepared by the actuary retained under section 356.214 and prepared under
section 356.215 and the standards for actuarial work
of the Legislative Commission on Pensions and Retirement. For purposes of this section, a contribution
deficiency exists if, for the applicable plan, the total employee
contributions, employer contributions, and any additional employer
contributions are less than the total of the normal cost, the administrative
expenses, and the amortization contribution of the retirement plan as reported
in the most recent actuarial valuation of the retirement plan prepared by the
actuary retained under section 356.214 and prepared under section 356.215 and
the standards for actuarial work of the Legislative Commission on Pensions and
Retirement.
Subd. 3.
Contribution rate revision. Notwithstanding the contribution rate
provisions stated in plan law, the employee and employer contribution rates
must be adjusted:
(1) if, after July 1, 2011, the regular actuarial
valuations of the applicable plan under section 356.215 indicate that there is
a contribution sufficiency under subdivision 2 equal to or greater than 0.5
percent of covered payroll for two consecutive years, the employee and employer
contribution rates for the applicable plan must be decreased as determined
under subdivision 4 to a level such that the sufficiency equals no more than
0.25 percent of covered payroll based on the most recent actuarial valuation;
or
(2) if, after July 1, 2011, the regular actuarial
valuations of the applicable plan under section 356.215 indicate that there is
a deficiency equal to or greater than 0.5 percent of covered payroll for two
consecutive years, the employee and employer contribution rates for the
applicable plan must be increased as determined under subdivision 4 to a level
such that no deficiency exists based on the most recent actuarial valuation.
Subd. 4.
Reporting, commission review. (a) The contribution rate increase or
decrease must be determined by the executive director of the Minnesota State
Retirement System, must be reported to the chair and the executive director of
the Legislative Commission on Pensions and Retirement on or before the next
February 1, and, if the Legislative Commission on Pensions and Retirement does
not recommend against the rate change or does not recommend a modification in
the rate change, is effective on the next July 1 following the determination by
the executive director that a contribution deficiency or sufficiency has
existed for two consecutive fiscal years based on the most recent actuarial
valuations under section 356.215. If the
actuarially required contribution exceeds or is less than the total support
provided by the combined employee and employer contribution rates for the
applicable plan by more than 0.5 percent of covered payroll, the applicable
plan employee and employer contribution rates must be adjusted incrementally
over one or more years to a level such that there remains a contribution
sufficiency of no more than 0.25 percent of covered payroll.
(b) No incremental adjustment may exceed 0.25 percent
of payroll for either the employee or employer contribution rates per year in
which any adjustment is implemented. For
an applicable plan, a contribution rate adjustment under this section must not
be made until at least two years have passed since fully implementing a
previous adjustment under this section.
Sec. 4.
Minnesota Statutes 2004, section 352.92, subdivision 1, is amended to
read:
Subdivision 1. Employee contributions. Employee contributions of covered
correctional employees must be in an amount equal to 5.69 the
following percent of salary.:
before
July 1, 2007 5.69
from
July 1, 2007, to June 30, 2008 6.40
from
July 1, 2008, to June 30, 2009 7.00
from
July 1, 2009, to June 30, 2010 7.70
from
July 1, 2010, and thereafter 8.60.
These contributions must be made by deduction from
salary as provided in section 352.04, subdivision 4.
Sec.
5. Minnesota Statutes 2004, section
352.92, subdivision 2, is amended to read:
Subd. 2. Employer contributions. The employer shall contribute for covered
correctional employees an amount equal to 7.98 the following percent
of salary.:
before
July 1, 2007 7.98
from
July 1, 2007, to June 30, 2008 9.10
from
July 1, 2008, to June 30, 2009 10.10
from
July 1, 2009, to June 30, 2010 11.10
from July 1,
2010, and thereafter 12.10.
Sec. 6. Minnesota Statutes 2004, section 352B.02,
subdivision 1a, is amended to read:
Subd. 1a. Member
contributions. Each member shall pay
a sum equal to 8.40 the following percent of the member's salary,
which shall constitute the member contribution to the fund.:
before
July 1, 2007 8.40
from
July 1, 2007, to June 30, 2008 9.10
from
July 1, 2008, to June 30, 2009 9.80
from
July 1, 2009, and thereafter 10.40.
These contributions must be made by deduction from
salary as provided in section 352.04, subdivision 4.
Sec. 7.
Minnesota Statutes 2004, section 352B.02, subdivision 1c, is amended to
read:
Subd. 1c. Employer contributions. In addition to member contributions,
department heads shall pay a sum equal to 12.60 the following percent
of the salary upon which deductions were made, which shall constitute the
employer contribution to the fund.:
before
July 1, 2007 12.60
from
July 1, 2007, to June 30, 2008 13.60
from
July 1, 2008, to June 30, 2009 14.60
from
July 1, 2009, and thereafter 15.60.
Department contributions must be paid out of money
appropriated to departments for this purpose.
Sec. 8.
Minnesota Statutes 2004, section 352D.04, subdivision 2, is amended to
read:
Subd. 2. Contribution rates. (a) The money used to purchase shares under
this section is the employee and employer contributions provided in this
subdivision.
(b) The employee contribution is an amount equal to the
employee contribution specified in section 352.04, subdivision 2 four percent of salary.
(c) The employer contribution is an amount equal to six
percent of salary.
(d) These contributions must be made in the manner
provided in section 352.04, subdivisions 4, 5, and 6.
(e) For members of the legislature, the contributions
under this subdivision also must be made on per diem payments received during a
regular or special legislative session, but may not be made on per diem
payments received outside of a regular or special legislative session, on the
additional compensation attributable to a leadership position under section
3.099, subdivision 3, living expense payments under section 3.101, or special
session living expense payments under section 3.103.
(f)
For a judge who is a member of the unclassified plan under section 352D.02,
subdivision 1, paragraph (c), clause (16), the employee contribution rate is
eight percent of salary, and there is no employer contribution.
Sec. 9. EFFECTIVE DATE.
(a) Sections 1, 2, 3, and 8 are effective July 1,
2007.
(b) Sections 4, 5, 6, and 7 are effective July 1,
2006.
ARTICLE 2
MSRS-CORRECTIONAL RETIREMENT PLAN INCLUSIONS
Section 1.
Minnesota Statutes 2004, section 352.90, is amended to read:
352.90
POLICY.
It is the policy of the legislature to provide special
retirement benefits for and special contributions for by
certain correctional employees who may be required to retire at an early
age because they lose the mental or physical capacity required to maintain the
safety, security, discipline, and custody of inmates at state correctional
facilities or of patients at the Minnesota Security Hospital or at,
of patients in the Minnesota Sexual Psychopathic Personality Treatment
Center Sex Offender Program, or of patients in the Minnesota
extended treatment options on-campus program at the Cambridge
Regional Human Services Center.
Sec. 2.
Minnesota Statutes 2004, section 352.91, subdivision 1, is amended to
read:
Subdivision 1. Qualifying jobs. "Covered correctional service"
means service performed by a state employee, as defined in section 352.01,
employed at a state correctional facility, the Minnesota Security Hospital, or
the Minnesota Sexual Psychopathic Personality Treatment Center Sex
Offender Program as:
(1) a corrections officer 1;
(2) a corrections officer 2;
(3) a corrections officer 3;
(4) a corrections officer supervisor;
(5) a corrections officer 4 lieutenant;
(6) a corrections captain;
(7) a security counselor; or
(8) a security counselor lead; or
(9) a corrections canine officer.
Sec.
3. Minnesota Statutes 2004, section
352.91, subdivision 2, is amended to read:
Subd. 2. Maintenance, correctional industry, and trades. "Covered correctional service" also
means service rendered at any time by state employees as maintenance personnel and,
correctional industry personnel, or members of trades certified by the
commissioner of employee relations to the executive director as being regularly
engaged for at least 75 percent of the employee's working time in the
rehabilitation, treatment, custody, or supervision of inmates at a
Minnesota correctional facility, or of patients at the Minnesota Security
Hospital or at the Minnesota Sexual Psychopathic Personality
Treatment Center Sex Offender Program.
Sec. 4.
Minnesota Statutes 2004, section 352.91, subdivision 3c, is amended to
read:
Subd. 3c. Nursing personnel. (a) "Covered correctional service"
means service by a state employee in one of the employment positions at a
correctional facility or at the Minnesota Security Hospital, or in the
Minnesota Sex Offender Program that are specified in paragraph (b),
provided that if at least 75 percent of the employee's working time
is spent in direct contact with inmates or patients and the fact of this direct
contact is certified to the executive director by the appropriate commissioner,
unless the person elects to retain the current retirement coverage under Laws
1996, chapter 408, article 8, section 21.
(b) The employment positions are as follows:
(1) registered nurse - senior;
(2) registered nurse;
(3) registered nurse - principal;
(4) licensed practical nurse 2; and
(5) registered nurse practitioner advance
practice.
Sec. 5.
Minnesota Statutes 2004, section 352.91, subdivision 3d, is amended to
read:
Subd. 3d. Other correctional personnel. (a) "Covered correctional service"
means service by a state employee in one of the employment positions at a
correctional facility or at the Minnesota Security Hospital specified in
paragraph (b), provided that if at least 75 percent of the
employee's working time is spent in direct contact with inmates or patients and
the fact of this direct contact is certified to the executive director by the
appropriate commissioner, unless the person elects to retain the current
retirement coverage under Laws 1996, chapter 408, article 8, section 21.
(b) The employment positions are as follows: baker,;
central services administrative specialist, intermediate; central services
administrative specialist, principal; chaplain; chemical dependency
counselor supervisor,; chief cook,; cook,;
cook coordinator, corrections behavior therapist, corrections behavior
therapist specialist, corrections parent education coordinator,;
corrections program therapist 1; corrections program therapist 2; corrections
program therapist 3; corrections inmate program coordinator; corrections
transitions program coordinator; corrections security caseworker,;
corrections security caseworker career,; corrections teaching
assistant,; delivery van driver; dentist,;
electrician supervisor,; general maintenance worker; general
repair worker,; laundry coordinator; library/information research
services specialist,; library/information research services
specialist senior,; library technician; plumber supervisor,;
psychologist 1; psychologist 3,; recreation therapist,;
recreation therapist coordinator,; recreation program assistant,;
recreation therapist senior, stores clerk senior,; sports medicine
specialist; water treatment plant operator, work therapy technician,;
work therapy assistant,; work therapy program coordinator; and
work therapy technician.
(c)
"Covered correctional service" also means service as the director or
as an assistant group supervisor of the Phoenix/Pomiga treatment/behavior
change program of the Department of Corrections.
Sec. 6.
Minnesota Statutes 2004, section 352.91, subdivision 3e, is amended to
read:
Subd. 3e. Minnesota extended treatment options
program; Cambridge. (a) "Covered
correctional service" means service by a state employee in one of the following
employment positions with the Minnesota extended treatment options on-campus
program at the Cambridge Regional Human Services Center specified in
paragraph (b) if at least 75 percent of the employee's working time is
spent in direct contact with patients who are in the Minnesota extended
treatment options program and if service in such a position is certified to the
executive director by the commissioner of human services, unless the person
elects to retain current retirement coverage under section 6.
(b) The employment positions are:
(1) behavior analyst I 1;
(2) behavior analyst 2;
(3) behavior analyst 3;
(4) group supervisor;
(5) group supervisor assistant;
(6) human services support specialist;
(3) (7) mental retardation residential
program lead;
(4) (8) psychologist 2;
(5) (9) recreation program
assistant;
(6) (10) recreation therapist
senior;
(7) (11) registered nurse senior;
(8) (12) skills development
specialist; and
(9) (13) social worker senior;
(14) social worker specialist; and
(15) speech pathology specialist.
Sec. 7.
Minnesota Statutes 2004, section 352.91, subdivision 3f, is amended to
read:
Subd. 3f. Additional Department of Human Services
personnel. (a) "Covered
correctional service" means service by a state employee in one of the
employment positions specified in paragraph (b) at the Minnesota Security
Hospital or in the Minnesota Sexual Psychopathic Personality
Treatment Center, provided that Sex Offender Program if at least 75
percent of the employee's working time is spent in direct contact with patients
and the fact determination of this direct contact is certified to
the executive director by the commissioner of human services.
(b)
The employment positions are:
(1) behavior analyst 2;
(2) licensed practical nurse 1 behavior
analyst 3;
(3) chemical dependency counselor senior;
(4) client advocate;
(5) dental assistant registered;
(6) group supervisor;
(7) group supervisor assistant;
(8) licensed practical nurse 1;
(9) occupational therapist;
(10) occupational therapist, senior;
(11) office and administrative
specialist senior;
(4) (12) psychologist 1;
(13) psychologist 2;
(5) (14) psychologist 3;
(15) recreation program assistant;
(16) recreation therapist senior;
(17) rehabilitation counselor senior;
(18) skills development specialist;
(19) social worker senior;
(20) social worker specialist;
(6) behavior analyst 3 (21)
social worker specialist, senior;
(22) speech pathology clinician;
(23) work therapy assistant; and
(7) social worker senior (24) work
therapy program coordinator.
Sec.
8. Minnesota Statutes 2004, section
352.91, subdivision 3g, is amended to read:
Subd. 3g. Additional Corrections Department
personnel. (a) "Covered
correctional service" means service by a state employee in one of the
employment positions at the designated Minnesota correctional facility
specified in paragraph (b) if at least 75 percent of the employee's working
time is spent in direct contact with inmates and the fact determination
of this direct contact is certified to the executive director by the
commissioner of corrections.
(b) The qualifying employment positions and the
designated correctional facilities are:
(1) corrections discipline unit supervisor, at the
Minnesota Correctional Facility-Faribault, the Minnesota Correctional
Facility-Lino Lakes, the Minnesota Correctional Facility-Oak Park Heights, the
Minnesota Correctional Facility-Rush City, and the Minnesota Correctional
Facility-St. Cloud;
(2) dental assistant registered, at the Minnesota
Correctional Facility-Faribault, the Minnesota Correctional Facility-Lino
Lakes, the Minnesota Correctional Facility-Moose Lake, the Minnesota
Correctional Facility-Oak Park Heights, and the Minnesota Correctional
Facility-Red Wing;
(3) dental hygienist, at the Minnesota Correctional
Facility-Shakopee and the Minnesota Correctional Facility-Rush City;
(4) psychologist 2, at the Minnesota Correctional
Facility-Faribault, the Minnesota Correctional Facility-Lino Lakes, the
Minnesota Correctional Facility-Moose Lake, the Minnesota Correctional
Facility-Oak Park Heights, the Minnesota Correctional Facility-Red Wing, the
Minnesota Correctional Facility-Rush City, the Minnesota Correctional
Facility-St. Cloud, the Minnesota Correctional Facility-Shakopee, and the
Minnesota Correctional Facility-Stillwater; or and
(5) sentencing to service crew leader involved with
the inmate community work crew program, at the Minnesota Correctional
Facility-Faribault and the Minnesota Correctional Facility-Lino Lakes.
Sec. 9.
Minnesota Statutes 2004, section 352.91, is amended by adding a
subdivision to read:
Subd. 3h.
Employment occupation name
changes. (a) If the
occupational title of a state employee covered by the Minnesota correctional
employees retirement plan changes from the applicable title listed in
subdivision 1, 2, 2a, 3c, 3d, 3e, 3f, or 3g, qualification for coverage by the
correctional state employees retirement plan continues until the July 1 next
following the title change if the commissioner of employee relations certifies
to the executive director of the Minnesota State Retirement System and to the
executive director of the Legislative Commission on Pensions and Retirement
that the duties, requirements, and responsibilities of the new occupational
title are substantially identical to the duties, requirements, and
responsibilities of the prior occupational title.
(b) If the commissioner of employee relations does not
certify a new occupational title under paragraph (a), eligibility for future correctional
state employees retirement coverage terminates as of the start of the first
payroll period next following the effective date of the occupational title
change.
(c) For consideration by the Legislative Commission on
Pensions and Retirement during the legislative session next following an
occupational title change involving a state employee in covered correctional
service, the commissioner of employee relations shall submit the applicable
draft proposed legislation accommodating the occupational title change in this
section.
Sec.
10. Minnesota Statutes 2004, section
352.91, is amended by adding a subdivision to read:
Subd. 3i.
Lateral transfers to new
correctional facilities. If a
new correctional facility is established, a state employee rendering covered
correctional service immediately before the transfer remains eligible for
coverage by the correctional state employees retirement plan for future state
employment at the new facility if the person is employed in the same
occupational title at the new facility.
The eligibility for future coverage continues until the July 1 next
following the effective date of the establishment of the new facility.
Sec. 11.
Minnesota Statutes 2004, section 352.91, is amended by adding a
subdivision to read:
Subd. 4b.
Department of Corrections;
procedure for coverage change considerations. (a) The commissioner of corrections shall
appoint a standing review committee to review and determine positions that
should be included in legislative requests for correctional employees
retirement plan coverage under subdivision 4a.
(b) Periodically, the Department of Corrections will
convene meetings of the review committee.
The review committee must review all requests and the supporting
documentation for coverage by the correctional employees retirement plan and
must determine which classes or positions meet the statutory requirements for
coverage. The review committee also must
determine if incumbents of and recent retirees from classes or positions
determined for inclusion in correctional employees retirement plan coverage
have prior Department of Corrections employment which also qualified as
correctional service and which should be transferred from the general state
employees retirement plan to the plan and the initial date for each potential
service credit transfer.
(c) The department must provide a notice of each
determination and of the employee's right to appeal from the review committee
to each employee who requested inclusion.
Appeals must be filed with the agency human resource manager within 30
days of the date of the notice of determination.
(d) The commissioner of corrections shall appoint a
standing appeals committee to hear appeals of determinations for coverage. The appeal committee must include relevant
department employees and employee representatives. Appeal committee determinations are final.
(e) All positions approved for inclusion must be
forwarded to the commissioner of corrections for the preparation of legislation
to implement the coverage change and submission. The commissioner will submit a written
recommendation documenting classes or positions that should or should not be
covered by the correctional employees retirement plan. Documentation of each request and the final
determination must be retained in the Department of Corrections' office of
human resource management.
Sec. 12. COVERAGE FOR PRIOR STATE SERVICE FOR
CERTAIN PERSONS.
Subdivision 1.
Election of prior state
coverage. (a) An employee in
the occupational position of laundry coordinator or delivery van driver at the
Minnesota Correctional Facility-Faribault who has future retirement coverage
transferred to the correctional state employees retirement plan under section 5
is entitled to elect to obtain prior service credit for eligible correctional
state service performed after June 30, 1997, and before July 1, 2006, with the
Department of Corrections and an employee who had future retirement coverage
transferred to the correctional state employees retirement plan under Laws
2004, chapter 267, article 1, section 1, is entitled to elect to obtain prior
service credit for eligible correctional state service performed at the
Minnesota Correctional Facility-Rush City before August 1, 2004. All prior service credit in either instance
must be purchased.
(b) Eligible correctional state service is either a
prior period of continuous service after June 30, 1997, at the Minnesota
Correctional Facility-Faribault, or a prior period of continuous service at the
Minnesota Correctional Facility-Rush City before August 1, 2004, whichever
applies, performed as an employee of the Department of Corrections that would
have been eligible for the correctional state employees retirement plan
coverage under section
1, if that prior service had been performed after August 1, 2004, or June 30,
2006, rather than before August 1, 2004, or July 1, 2006, whichever
applies. Service is continuous if there
has been no period of discontinuation of eligible state service for a period
greater than 30 calendar days.
(c) The commissioner of corrections shall certify
eligible correctional state service to the commissioner of employee relations
and to the executive director of the Minnesota State Retirement System.
(d) A correctional employee covered under section 1 is
entitled to purchase the past service if the department certifies that the
employee met the eligibility requirements for coverage. The employee must make additional employee
contributions. Payment for past service
must be completed by June 30, 2007.
Subd. 2. Payment for prior service.
(a) An employee electing to obtain prior service credit under
subdivision 1 must pay an additional employee contribution for
that prior service. The additional
member contribution is the contribution differential percentage applied to the
actual salary paid to the employee during the period of the prior eligible
correctional state service, plus interest at the rate of 8.5 percent per annum,
compounded annually. The contribution
differential percentage is the difference between 5.69 percent of salary and
the applicable employee contribution rate of the general state employees
retirement plan during the period of the prior eligible correctional state
service.
(b) The additional member contribution may be paid
only in a lump sum. Payment must
accompany the election to obtain prior service credit. No election or payment may be made by the
person or accepted by the executive director of the Minnesota State Retirement
System after June 30, 2007.
Subd. 3.
Transfer of assets. (a) Assets must be transferred from the
general state employees retirement plan to the correctional state employees
retirement plan in an amount equal to the present value of benefits earned
under the general state employees retirement plan for each employee
transferring to the correctional state employees retirement plan under this
section, as determined by the actuary retained under Minnesota Statutes,
section 356.214, in accordance with Minnesota Statutes, section 356.215,
multiplied by the accrued liability funding ratio of active members as derived
from the most recent actuarial valuation prepared by the actuary retained under
Minnesota Statutes, section 356.214. The
transfer of assets must be made within 30 days after the employee elects to transfer
the coverage to the correctional state employees retirement plan.
(b) The Department of Corrections shall pay the cost
of the actuarial work performed by the actuary retained under Minnesota
Statutes, section 356.214, under paragraph (a) upon receipt of a billing from
the executive director of the Public Employees Retirement Association.
Subd. 4.
Effect of the asset transfer. Upon the transfer of assets in subdivision
3, service credit in the general state employees retirement plan of the Minnesota
State Retirement System is forfeited and may not be reinstated. The service credit and transferred assets
must be credited to the correctional state employees retirement plan.
Sec. 13. SERVICE CREDIT TRANSFER TO CORRECTIONAL
PLAN.
Subdivision 1.
Authorization. If the review of the corrections program
director position of the eligible individual under Minnesota Statutes 2005
Supplement, section 352.91, subdivision 4a, results in the inclusion of the
corrections program director position in the correctional state employees
retirement plan of the Minnesota State Retirement System by legislative
enactment during the 2006 or 2007 legislative sessions, an eligible individual
specified in subdivision 2 is authorized to have service credit in the Minnesota
State Retirement System general state employees retirement plan for employment
as a corrections program director from June 17, 1995, to June 5, 2001,
transferred from the Minnesota State Retirement System general state employees
retirement plan to the Minnesota State Retirement System correctional state
employees retirement plan, if all conditions required by this section are met.
Subd.
2.
(1) was born on November 14, 1956;
(2) is currently employed as a corrections lieutenant;
(3) was covered by the Minnesota State Retirement
System correctional state employees retirement plan for service provided from
November 1, 1980, to June 16, 1995;
(4) was covered by the Minnesota State Retirement
System general state employees retirement plan for employment as a corrections
program director from June 17, 1995, to June 5, 2001; and
(5) is covered by the Minnesota State Retirement
System correctional state employees retirement plan for employment as a corrections
lieutenant beginning June 6, 2001.
Subd. 3. Employee equivalent contribution. To receive the transfer of service credit
specified in subdivision 1, the individual must pay to the executive director
of the Minnesota State Retirement System the difference between the employee
contribution rate for the general state employees retirement plan and the
employee contribution rate for the correctional state employees retirement plan
in effect during the period eligible for transfer applied to the eligible
individual's salary at the time each additional contribution would have been
deducted from pay if coverage had been provided by the correctional state
employees retirement plan. These amounts
shall be paid in a lump sum by September 1, 2005, or prior to termination of
service, whichever is earlier, plus 8.5 percent annual compound interest from
the applicable payroll deduction date until paid.
Subd. 4.
Employer equivalent. The eligible individual shall also pay to
the executive director of the Minnesota State Retirement System the difference
between the employer contribution rate for the general state employees
retirement plan and the employer contribution rate for the correctional state
employees retirement plan in effect during the period eligible for transfer
applied to the eligible individual's salary at the time each additional
contribution would have been deducted from pay if coverage had been provided by
the correctional state employees retirement plan. These amounts shall be paid in a lump sum at
the same time as the amount under subdivision 3, with interest as specified in
that subdivision.
Subd. 5.
Transfer of assets. If payments under subdivisions 3 and 4 are
made, assets must be transferred from the general state employees retirement plan
fund to the correctional state employees retirement plan fund in an amount
equal to the present value of benefits earned by the eligible individual under
the general state employees retirement plan, as determined by the actuary
retained under section 356.214 in accordance with Minnesota Statutes, section
356.215. The transfer of assets must be
made within 45 days after the receipt of payments under subdivisions 3 and 4.
Subd. 6.
Effect of the asset transfer. Upon transfer of assets in subdivision 5, service
credit in the general state employees retirement plan of the Minnesota State
Retirement System is forfeited and may not be reinstated. The service credit and transferred assets
must be credited to the correctional state employees retirement plan.
Subd. 7.
Payment of actuarial
calculation costs. The
expense for the calculations by the actuary under subdivision 5 must be paid by
the Department of Corrections.
Sec. 14. EFFECTIVE DATE.
(a) Sections 1 to 8 and 12, are effective the first
day of the first payroll period next following the date of enactment.
(b)
Sections 9, 10, and 11 are effective the day following final enactment.
(c) Section 13 is effective July 1, 2006, applies
retroactively to permit a transfer by an eligible individual of service credit
before January 1, 2008, even if the eligible individual has terminated active
state employment before July 1, 2007, and, if the eligible individual is in
receipt of a retirement annuity from the correctional state employees
retirement plan of the Minnesota State Retirement System on or before July 1,
2007, allows the eligible individual to have the retirement annuity
recalculated on the basis of any transferred service credit.
(d) The addition of the reference to
"correctional industry" in section 3 is a clarification of the
existing provision and is not intended to be the basis for the addition of any
employment position to plan coverage beyond the employment positions included
on January 15, 2006, unless there is a change in the duties of an employment
position connected with correctional industries that increases the regularly
occurring direct inmate contact of the position to in excess of 75 percent and
the inclusion of the position as "correctional industry personnel" is
approved by the commissioner of employee relations.
ARTICLE 3
RETIREMENT PLAN ADMINISTRATIVE PROVISIONS
Section 1.
Minnesota Statutes 2004, section 136F.45, subdivision 1a, is amended to
read:
Subd. 1a. Subsequent vendor contracts. (a) The board may limit the number of vendors
under subdivision 1.
(b) In addition to any other tax-sheltered annuity
program investment options, the board may offer as an investment option the
Minnesota supplemental investment fund administered by the State Board of
Investment under section 11A.17.
(c) For the tax-sheltered annuity program vendor
contracts executed after July 1, 2000, The board shall actively solicit
participation of and shall include as vendors lower expense and
"no-load" mutual funds or equivalent investment products as those
terms are defined by the federal Securities and Exchange Commission. To the extent possible, in addition to a
range of insurance annuity contract providers and other mutual fund provider
arrangements, the board must assure that no less than five insurance annuity
providers and no less than one nor more than three lower expense and
"no-load" mutual funds or equivalent investment products will be made
available for direct-access by employee participants. To the extent that offering a lower
expense "no-load" product increases the total necessary and
reasonable expenses of the program and if the board is unable to negotiate a
rebate of fees from the mutual fund or equivalent investment product providers,
the board may charge the participants utilizing the lower expense
"no-load" mutual fund products a fee to cover those expenses. The participant fee may not exceed one
percent of the participant's annual contributions or $20 per participant per
year, whichever is greater. Any excess
fee revenue generated under this subdivision must be reimbursed to participant
accounts in the manner provided in subdivision 3a.
Sec. 2.
Minnesota Statutes 2004, section 352.113, subdivision 7a, is amended to
read:
Subd. 7a. Temporary
reemployment benefit reduction waiver.
(a) 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.
(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 may return to employment and continue disability benefit payments
under this subdivision only once while receiving disability benefits from a
plan administered by the Minnesota State Retirement System.
Sec. 3.
Minnesota Statutes 2004, section 352.116, subdivision 3a, is amended to
read:
Subd. 3a. Bounce-back annuity. (a) If a retired employee or disabilitant
selects a joint and survivor annuity option under subdivision 3 after June
30, 1989, the retired employee or disabilitant must receive a normal
single-life annuity if the designated optional annuity beneficiary dies before
the retired employee or disabilitant.
Under this option, no reduction may be made in the annuity to provide
for restoration of the normal single-life annuity in the event of the death of
the designated optional annuity beneficiary.
(b) A retired employee or disabilitant who selected
an optional joint and survivor annuity before July 1, 1989, but did not choose
an option that provides that the normal single-life annuity is payable to the
retired employee or the disabilitant if the designated optional annuity
beneficiary dies first, is eligible for restoration of the normal single-life
annuity if the designated optional annuity beneficiary dies first, without
further actuarial reduction of the person's annuity. A retired employee or disabilitant who
selected an optional joint and survivor annuity, but whose designated optional
annuity beneficiary died before July 1, 1989, shall receive a normal
single-life annuity after that date, but shall not receive retroactive payments
for periods before that date The annuity adjustment specified in
paragraph (a) also applies to joint and survivor annuity options under subdivision
3 elected prior to July 1, 1989. The
annuity adjustment under this paragraph occurs on July 1, 1989, or on the first
day of the first month following the death of the designated optional annuity
beneficiary, whichever is later. This
paragraph should not be interpreted as authorizing retroactive payments.
(c) A retired employee or disabilitant who took a
further actuarial reduction to elect an optional joint and survivor annuity
that provides that the normal annuity is payable to the retired employee or
disabilitant if the designated optional beneficiary died before July 1, 1989,
shall have the annuity increased as of July 1, 1989, to the amount the person
would have received if, at the time of retirement or disability, the person had
selected only optional survivor coverage that would not have provided for
restoration of the normal annuity upon the death of the designated optional
annuity beneficiary. Any annuity or
benefit increase under this paragraph is effective only for payments made after
June 30, 1989, and is not retroactive for payments made before July 1, 1989.
Sec. 4.
Minnesota Statutes 2004, section 352.116, subdivision 3b, is amended to
read:
Subd. 3b. Bounce-back annuity. (a) The board of directors must provide a
joint and survivor annuity option to members of the correctional employees and
State Patrol retirement funds. Under
this option, if a former member or disabilitant selects a joint and
survivor annuity option after June 30, 1989, the former member or disabilitant must
receive a normal single life annuity if the designated optional annuity
beneficiary dies before the former member or disabilitant. Under this option, no reduction may be made
in the person's annuity to provide for restoration of the normal single life
annuity in the event of the death of the designated optional annuity
beneficiary.
(b) A former member or disabilitant of the
correctional or State Patrol fund who selected an optional joint and survivor
annuity before July 1, 1989, but did not choose an option that provides that
the normal single life annuity is payable to the former member or the
disabilitant if the designated optional annuity beneficiary dies first, is
eligible for restoration of the normal single life annuity if the designated
optional annuity beneficiary dies first, without further actuarial reduction of
the person's annuity. A former member or
disabilitant who selected an optional joint and survivor annuity, but whose
designated optional annuity beneficiary died before July 1, 1989, shall receive
a normal single life annuity after that date, but shall not receive retroactive
payments for periods before that date The annuity adjustment specified
in paragraph (a) also applies to joint and survivor annuity options elected
prior to July 1, 1989. The annuity
adjustment under this paragraph occurs on July 1, 1989, or on the first day of
the first month following the death of the designated optional annuity
beneficiary, whichever is later. This
paragraph should not be interpreted as authorizing retroactive payments.
(c)
A former member or disabilitant who took a further actuarial reduction to elect
an optional joint and survivor annuity that provides that the normal annuity is
payable to the former member or disabilitant if the designated optional
beneficiary died before July 1, 1989, shall have their annuity increased as of
July 1, 1989, to the amount the person would have received if, at the time of
retirement or disability, the person had selected only optional survivor
coverage that would not have provided for restoration of the normal annuity
upon the death of the designated optional annuity beneficiary. Any annuity or benefit increase under this
paragraph is effective only for payments made after June 30, 1989, and is not
retroactive for payments made before July 1, 1989.
Sec. 5.
Minnesota Statutes 2004, section 353.01, subdivision 2a, is amended to
read:
Subd. 2a. Included employees. (a) Public employees whose salary from one
governmental subdivision exceeds $425 in any month shall participate as members
of the association. If the salary is
less than $425 in a subsequent month, the employee retains membership
eligibility. Eligible public employees
shall participate as members of the association with retirement coverage by the
public employees retirement plan or the public employees police and fire
retirement plan under this chapter, or the local government correctional
employees retirement plan under chapter 353E, whichever applies, as a condition
of their employment on the first day of employment unless they:
(1) are specifically excluded under subdivision 2b;
(2) do not exercise their option to elect retirement
coverage in the association as provided in subdivision 2d, paragraph (a); or
(3) are employees of the governmental subdivisions
listed in subdivision 2d, paragraph (b), where the governmental subdivision has
not elected to participate as a governmental subdivision covered by the
association.
(b) A public employee who was a member of the
association on June 30, 2002, based on employment that qualified for membership
coverage by the public employees retirement plan or the public employees police
and fire plan under this chapter, or the local government correctional
employees retirement plan under chapter 353E as of June 30, 2002, retains that
membership until the employee terminates public employment under subdivision
11a or terminates membership under subdivision 11b.
(c) Public employees under paragraph (a) includes
physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision
2.
Sec. 6.
Minnesota Statutes 2005 Supplement, section 353.01, subdivision 2d, is
amended to read:
Subd. 2d. Optional membership. (a) Membership in the association is optional
by action of the individual employee for the following public employees who
meet the conditions set forth in subdivision 2a:
(1) members of the coordinated plan who are also
employees of labor organizations as defined in section 353.017, subdivision 1,
for their employment by the labor organization only if they elect to have
membership under section 353.017, subdivision 2;
(2) persons who are elected or persons who are
appointed to elected positions other than local governing body elected
positions who elect to participate by filing a written election for membership;
(3) members of the association who are appointed by
the governor to be a state department head and who elect not to be covered by
the general state employees retirement plan of the Minnesota State Retirement
System under section 352.021;
(4)
city managers as defined in section 353.028, subdivision 1, who do not elect to
be excluded from membership in the association under section 353.028,
subdivision 2; and
(5) employees of the Port Authority of the city of St.
Paul who were at least age 45 on January 1, 2003, who were at least
age 45 on that date, and who elect to participate by filing a written
election for membership.
(b) Membership in the association is optional by
action of the governmental subdivision for the employees of the following
governmental subdivisions under the conditions specified:
(1) the Minnesota Association of Townships if the
board of the association, at its option, certifies to the executive director that
its employees are to be included for purposes of retirement coverage, in which
case the status of the association as a participating employer is permanent;
(2) a county historical society if the county in which
the historical society is located, at its option, certifies to the executive
director that the employees of the historical society are to be county
employees for purposes of retirement coverage under this chapter. The status as a county employee must be accorded
to all similarly situated county historical society employees and, once
established, must continue as long as a person is an employee of the county
historical society; and
(3) Hennepin Healthcare System, Inc., a public
corporation, with respect to employees other than paramedics, emergency medical
technicians, and protection officers, if the corporate board establishes
alternative retirement plans for certain classes of employees of the
corporation and certifies the employees to be excluded from future retirement
coverage.
(c) For employees who are covered by paragraph (a),
clause (1), (2), or (3), or covered by paragraph (b), clause (1) or (2), if the
necessary membership election is not made, the employee is excluded from
retirement coverage under this chapter.
For employees who are covered by paragraph (a), clause (4), if the
necessary election is not made, the employee must become a member and have
retirement coverage under this chapter.
For employees specified in paragraph (b), clause (3), membership
continues until the exclusion option is exercised for the designated class of
employee. The option to become a member,
once exercised under this subdivision, may not be withdrawn until termination
of public service as defined under subdivision 11a.
Sec. 7.
Minnesota Statutes 2004, section 353.01, subdivision 11a, is amended to
read:
Subd. 11a. Termination of public service. (a) "Termination of public service"
occurs when a member resigns or is dismissed from public service by the
employing governmental subdivision or when a position ends and the member
who held the position is not considered by the governmental subdivision to be
on a temporary layoff, and the employee does not, within 30 days of the
date the employment relationship ended, return to an employment position in the
same governmental subdivision or when the employer-employee relationship is
severed due to the expiration of a layoff under subdivision 12 or 12c.
(b) The termination of public service must be recorded
in the association records upon receipt of an appropriate notice from the
governmental subdivision.
Sec. 8.
Minnesota Statutes 2004, section 353.01, subdivision 11b, is amended to
read:
Subd. 11b. Termination of membership. (a) "Termination of membership"
means the conclusion of membership in the association for a person who has
not terminated public service under subdivision 11a and occurs:
(1) upon termination of public service under
subdivision 11a;
(2)
when a member does not return to work within 30 days of the expiration of an
authorized temporary layoff under subdivision 12 or an authorized leave of
absence under subdivision 31 as evidenced by the appropriate record filed by
the governmental subdivision; or
(3) when a person files a written
election with the association to discontinue employee deductions under
section 353.27, subdivision 7, paragraph (a), clause (1);
(2) when a city manager files a written election with
the association to discontinue employee deductions under section 353.028,
subdivision 2; or
(3) when a member transfers to a temporary position
and becomes excluded from membership under subdivision 2b, clause (4).
(b) The termination of membership under clause (3) must
be reported to the association by the governmental subdivision.
(c) If the employee subsequently returns to a position
in the same governmental subdivision, the employee shall not again be required
to earn a salary in excess of $425 per month to qualify for membership, unless
the employee has taken a refund of accumulated employee deduction plus interest
under section 353.34, subdivision 1.
Sec. 9.
Minnesota Statutes 2004, section 353.01, subdivision 12, is amended to
read:
Subd. 12. Authorized temporary or seasonal layoff. "Authorized temporary or seasonal layoff,"
including seasonal leave of absence, means a suspension of public service for
a limited period during a year authorized by the employing governmental
subdivision for a period not exceeding three months in any calendar year, as
evidenced by appropriate record of the employer and promptly transmitted to the
association member who is expected to return to the same position at the
end of the layoff period and for which there has been no termination of public
service under subdivision 11a.
Sec. 10.
Minnesota Statutes 2004, section 353.01, is amended by adding a
subdivision to read:
Subd. 12c.
Indefinite layoff. "Indefinite layoff" occurs when
a member is placed on a layoff that is not a temporary or seasonal layoff under
subdivision 12, for which no date has been specified by the employing
governmental subdivision for the employee's return to work, and there has been
no termination of public service under subdivision 11a.
Sec. 11.
Minnesota Statutes 2004, 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 or seasonal layoff
under subdivision 12, limited to three months allowable service per authorized
temporary or seasonal layoff in one calendar year. An employee who has received the maximum
service credit allowed for an authorized temporary or seasonal 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 or seasonal layoff; or
(7) a period during which a member is absent from
employment by a governmental subdivision by reason of service 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 service in the uniformed
service within the time frames required under United States Code, title 38,
section 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 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 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 rendered immediately preceding
the
period of the uniformed service. Payment
of the member equivalent contributions must be made 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. 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 equivalent employer contribution, and, if
applicable, the equivalent additional employer contribution must be paid by the
governmental subdivision employing the member 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. 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) MS 2002 (Expired)
Sec. 12.
Minnesota Statutes 2004, section 353.03, subdivision 1, is amended to
read:
Subdivision 1. Management; composition; election. (a) The management of the public
employees retirement fund is vested in an 11-member board of trustees
consisting of ten members and the state auditor member
of the police and fire fund and one of whom must be a former member who met the
definition of public employee under section 353.01, subdivisions 2 and 2a, for
at least five years prior to terminating membership or a member who receives a
disability benefit who. The state auditor may designate a deputy
auditor with expertise in pension matters as the auditor's representative on
the board. The governor shall appoint
five trustees to four-year terms, one of whom shall be designated to represent
school boards, one to represent cities, one to represent counties, one who is a
retired annuitant, and one who is a public member knowledgeable in pension
matters. The membership of the
association, including recipients of retirement annuities and disability and
survivor benefits, shall elect five trustees for terms of four years,
one of whom must be a , for terms of four years. Terms expire on January 31 of the fourth
year, and positions are vacant until newly elected members are seated. Except as provided in this subdivision,
trustees elected by the membership of the association must be public employees
and members of the association.
(b) For seven days beginning October 1
of each year preceding a year in which an election is held, the association
shall accept at its office filings in person or by mail of candidates for the
board of trustees. A candidate shall
submit at the time of filing a nominating petition signed by 25 or more members
of the fund association.
No name may be withdrawn from nomination by the nominee after October
15. At the request of a candidate for an
elected position on the board of trustees, the board shall mail a statement of
up to 300 words prepared by the candidate to all persons eligible to vote in
the election of the candidate. The board
may adopt policies, subject to review and approval by the secretary of state
under paragraph (e), to govern the form and length of these
statements, timing of mailings, and deadlines for submitting materials to be
mailed. These policies must be
approved by the secretary of state. The
secretary of state shall resolve disputes between the board and a candidate
concerning application of these policies to a particular statement.
(c) By January 10 of each year in which elections are
to be held, the board shall distribute by mail to the members ballots listing
the candidates. No member may vote for
more than one candidate for each board position to be filled. A ballot indicating a vote for more than one
person for any position is void. No
special marking may be used on the ballot to indicate incumbents. Ballots mailed to the association must be
postmarked no later than January 31. The
ballot envelopes must be so designated and the ballots counted in a manner that
ensures that each vote is secret.
(d) A candidate who:
(1) receives contributions or makes
expenditures in excess of $100;, or
(2) has given implicit or explicit
consent for any other person to receive contributions or make expenditures in
excess of $100 for the purpose of bringing about the candidate's election,
shall file a report with the campaign finance and public disclosure board
disclosing the source and amount of all contributions to the candidate's
campaign. The campaign finance and
public disclosure board shall prescribe forms governing these disclosures. Expenditures and contributions have the
meaning defined in section 10A.01. These
terms do not include the mailing made by the association board on behalf of the
candidate. A candidate shall file a
report within 30 days from the day that the results of the election are
announced. The Campaign Finance and
Public Disclosure Board shall maintain these reports and make them available
for public inspection in the same manner as the board maintains and makes
available other reports filed with it. By
January 10 of each year in which elections are to be held the board shall
distribute by mail to the members ballots listing the candidates. No member may vote for more than one
candidate for each board position to be filled.
A ballot indicating a vote for more than one person for any position is
void. No special marking may be used on
the ballot to indicate incumbents. The
last day for mailing ballots to the fund is January 31. Terms expire on January 31 of the fourth
year, and positions are vacant until newly elected members are qualified. The ballot envelopes must be so designed and
the ballots counted in a manner that ensures that each vote is secret.
(e) The secretary of state shall supervise
review and approve the procedures defined by the board of trustees for conducting
the elections specified in this subdivision, including board policies
adopted under paragraph (b).
(f) The board of trustees and the
executive director shall undertake their activities consistent with chapter
356A.
Sec.
13. Minnesota Statutes 2004, section
353.03, subdivision 1a, is amended to read:
Subd. 1a. Vacancy, how filled. Any vacancy on the board caused by death,
resignation, or removal of any trustee, or occurring because an elected trustee
ceases to be a public employee and an active member of the association, must be
filled by the board for trustees elected by members, and by the governor for
other trustees, for the unexpired portion of the term in which the vacancy
occurs. The board shall adopt
policies and procedures governing how the vacancy of an elected trustee is to
be filled.
Sec. 14.
Minnesota Statutes 2004, section 353.03, is amended by adding a
subdivision to read:
Subd. 2b.
Board legal authority. The board is authorized to take legal
action when necessary to effectively administer the various plans administered
by the association, consistent with applicable articles of incorporation,
bylaws, law, and rules, as applicable, and including but not limited to the
recapture of overpaid annuities, benefits, or refunds, and the correction of
omitted or deficient deductions.
Sec. 15.
Minnesota Statutes 2004, section 353.27, subdivision 7, is amended to
read:
Subd. 7. Adjustment for erroneous receipts or
disbursements. (a) Except as
provided in paragraph (b), erroneous employee deductions and erroneous employer
contributions and additional employer contributions for a person, who otherwise
does not qualify for membership under this chapter, are considered:
(1) valid if the initial erroneous deduction began
before January 1, 1990. Upon
determination of the error by the association, the person may continue
membership in the association while employed in the same position for which
erroneous deductions were taken, or file a written election to terminate
membership and apply for a refund upon termination of public service or
defer an annuity under section 353.34; or
(2) invalid, if the initial erroneous employee
deduction began on or after January 1, 1990.
Upon determination of the error, the association shall require the
employer to discontinue erroneous employee deductions and erroneous employer
contributions and additional employer contributions. Upon discontinuance, the association shall refund
all erroneous employee deductions to the person, with interest, under
section 353.34, subdivision 2, and all erroneous employer contributions and
additional employer contributions to the employer as specified in
paragraph (d). No person may claim a
right to continued or past membership in the association based on erroneous
deductions which began on or after January 1, 1990.
(b) Erroneous deductions taken from the salary of a
person who did not qualify for membership in the association by virtue of
concurrent employment before July 1, 1978, which required contributions to
another retirement fund or relief association established for the benefit of
officers and employees of a governmental subdivision, are invalid. Upon discovery of the error, the association
shall remove all invalid service and upon termination of public
service, the association shall refund all erroneous employee deductions to
the person, with interest under section 353.34, subdivision 2, and all
erroneous employer contributions to the employer. This paragraph has both retroactive and
prospective application.
(c) Employer contributions and employee deductions
taken in error from amounts which are not salary under section 353.01,
subdivision 10, are invalid upon discovery by the association and may
must be refunded at any time as specified in paragraph (d).
(d) Upon discovery of the receipt of erroneous
deductions and contributions under paragraph (a), clause (2), or paragraph (c),
the association must require the employer to discontinue the erroneous employee
deductions and erroneous employer contributions. Upon discontinuation, the association must
refund the invalid employee deductions
to the person without interest and invalid employer contributions to the
employer or provide a credit against future contributions payable by the
employer for the amount of all erroneous deductions and contributions. In the event a retirement annuity or
disability benefit had been computed using invalid service or salary, the
association must adjust the annuity or benefit and recover the overpayment
under subdivision 7b.
(e) In the event 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 check returned to the funds of the
department making the payment, a refund of the sum deducted, or a portion of it
that is required to adjust the deductions, must be made to the department or
institution.
(f) Any refund to a member 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 receiving the credit is
responsible for refunding to the applicable employee any amount that had been
erroneously deducted from the person's salary.
Sec. 16.
Minnesota Statutes 2004, section 353.27, subdivision 7a, is amended to
read:
Subd. 7a. Deductions or contributions transmitted by
error. (a) If employee deductions
and employer contributions were erroneously transmitted to the association, but
should have been transmitted to another Minnesota public pension plan, the
association shall transfer the erroneous employee deductions and employer
contributions to the appropriate retirement fund or individual account, as
applicable, without interest. The
time limitations in subdivisions 7 and 12 do not apply.
(b) For purposes of this subdivision, a Minnesota
public pension plan means a plan specified in section 356.30, subdivision 3, or
the plan plans governed by chapter chapters 353D and
354B.
(c) A potential transfer under paragraph (a) 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
of the association. Within 30 days after
being notified by the Public Employees 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, or to the individual account if the
proper coverage is by a defined contribution plan. The association must provide a credit for the
amount of the erroneous salary deductions and employer contributions against
future contributions from the employer.
Sec. 17.
Minnesota Statutes 2004, section 353.27, subdivision 7b, is amended to
read:
Subd. 7b. Overpayments to members. In the event of an overpayment to a member, retiree,
beneficiary, or other person, the executive director shall recover the
overpayment by suspending or reducing the payment of a retirement annuity,
refund, disability benefit, survivor benefit, or optional annuity under this
chapter until all outstanding money has been recovered.
Sec. 18.
Minnesota Statutes 2005 Supplement, section 353.28, subdivision 6, is
amended to read:
Subd. 6. Collection of unpaid amounts. (a) If a governmental subdivision which
receives the direct proceeds of property taxation fails to pay an amount due
under chapter 353, 353A, 353B, 353C, or 353D, the executive director shall
certify the amount to the governmental subdivision for payment. If the governmental subdivision fails to remit
the sum so due in a timely fashion, the executive director shall certify the
amount to the applicable county auditor
for collection. The county auditor shall
collect the amount out of the revenue of the governmental subdivision, or shall
add the amount to the levy of the governmental subdivision and make payment
directly to the association. This tax
must be levied, collected, and apportioned in the manner that other taxes are
levied, collected, and apportioned.
(b) If a governmental subdivision which is not funded
directly from the proceeds of property taxation fails to pay an amount due
under this chapter, the executive director shall certify the amount to the
governmental subdivision for payment. If
the governmental subdivision fails to pay the amount for a period of 60 days
after certification, the executive director shall certify the amount to the
commissioner of finance, who shall deduct the amount from any subsequent
state-aid payment or state appropriation amount applicable to the governmental
subdivision and make payment directly to the association.
Sec. 19.
Minnesota Statutes 2004, section 353.29, subdivision 8, is amended to
read:
Subd. 8. Annuities; payment; evidence of receipt. Payment of any annuity or benefit for a given
month shall be mailed by the association to the annuitant, recipient of a
disability benefit, or survivor, or automatically deposited under section
356.401, subdivision 2, during the first week of that month. Evidence of receipt of warrants issued by
the association in payment of an annuity or benefit shall be submitted by the
payee thereof to the association periodically at times specified by the board
of trustees, together with a written declaration that the annuitant or
recipient of a disability benefit has or has not returned to public service;
that the surviving dependent spouse has or has not remarried; and shall be
furnished on forms provided by the executive director thereof, before the
association shall pay to the disability recipient or survivor for the next
ensuing month, the benefit to which the person otherwise may be entitled. In lieu of the evidence of receipt of
warrants for recipients of an annuity or a benefit, The board may contract
for professional services to identify deceased annuitants and benefit
recipients through a review of nationally maintained death records.
Sec. 20.
Minnesota Statutes 2004, section 353.30, subdivision 3a, is amended to
read:
Subd. 3a. Bounce-back annuity. (a) If a former member or disabilitant
selects a joint and survivor annuity option under subdivision 3 after June
30, 1989, the former member or disabilitant must receive a normal single
life annuity if the designated optional annuity beneficiary dies before the
former member or disabilitant. Under
this option, no reduction may be made in the person's annuity to provide for
restoration of the normal single life annuity in the event of the death of the
designated optional annuity beneficiary.
(b) A former member or disabilitant who selected an
optional joint and survivor annuity before July 1, 1989, but did not choose an
option that provides that the normal single life annuity is payable to the
former member or the disabilitant if the designated optional annuity
beneficiary dies first, is eligible for restoration of the normal single life
annuity if the designated optional annuity beneficiary dies first, without
further actuarial reduction of the person's annuity. A former member or disabilitant who selected
an optional joint and survivor annuity, but whose designated optional annuity
beneficiary died before July 1, 1989, shall receive a normal single life
annuity after that date, but shall not receive retroactive payments for periods
before that date The annuity adjustment specified in paragraph (a) also
applies to joint and survivor annuity options under subdivision 3 elected prior
to July 1, 1989. The annuity adjustment
under this paragraph occurs on July 1, 1989, or on the first day of the first
month following the death of the designated optional annuity beneficiary,
whichever is later. This paragraph should
not be interpreted as authorizing retroactive payments.
1989,
to the amount the person would have received if, at the time of retirement or
disability, the person had selected only optional survivor coverage that would
not have provided for restoration of the normal annuity upon the death of the
designated optional annuity beneficiary.
Any annuity or benefit increase under this paragraph is effective only
for payments made after June 30, 1989, and is not retroactive for payments made
before July 1, 1989.(c) A former member or disabilitant who took a further
actuarial reduction to elect an optional joint and survivor annuity that
provides that the normal annuity is payable to the former member or
disabilitant if the designated optional beneficiary dies first but has not died
before July 1, 1989, shall have their annuity increased as of July 1,
Sec. 21.
Minnesota Statutes 2004, section 353.30, subdivision 3b, is amended to
read:
Subd. 3b. Bounce-back annuity. (a) The board of trustees must provide a
joint and survivor annuity option to members of the police and fire fund. Under this option, a If a joint and
survivor annuity is elected on or after July 1, 1989, the former
member or disabilitant must receive a normal single life annuity if the designated
optional annuity beneficiary dies before the former member or
disabilitant. Under this option, no
reduction may be made in the person's annuity to provide for restoration of the
normal single life annuity in the event of the death of the designated optional
annuity beneficiary.
(b) A former member or disabilitant of the police
and fire fund who selected an optional joint and survivor annuity before July
1, 1989, but did not choose an option that provides that the normal single life
annuity is payable to the former member or the disabilitant if the designated
optional annuity beneficiary dies first, is eligible for restoration of the
normal single life annuity if the designated optional annuity beneficiary dies
first, without further actuarial reduction of the person's annuity. A former member or disabilitant who selected
an optional joint and survivor annuity, but whose designated optional annuity
beneficiary died before July 1, 1989, shall receive a normal single life
annuity after that date, but shall not receive retroactive payments for periods
before that date The annuity adjustment specified in paragraph (a) also
applies to joint and survivor annuity options under subdivision 3 elected prior
to July 1, 1989. The annuity adjustment
under this paragraph occurs on July 1, 1989, or on the first day of the first
month following the death of the designated optional annuity beneficiary,
whichever is later. This paragraph
should not be interpreted as authorizing retroactive payments.
(c) A former member or disabilitant who took a further
actuarial reduction to elect an optional joint and survivor annuity that
provides that the normal annuity is payable to the former member or
disabilitant if the designated optional beneficiary dies first but has not died
before July 1, 1989, shall have their annuity increased as of July 1, 1989, to
the amount the person would have received if, at the time of retirement or
disability, the person had selected only optional survivor coverage that would
not have provided for restoration of the normal annuity upon the death of the
designated optional annuity beneficiary.
Any annuity or benefit increase under this paragraph is effective only
for payments made after June 30, 1989, and is not retroactive for payments made
before July 1, 1989.
Sec. 22.
Minnesota Statutes 2004, section 353.32, subdivision 1a, is amended to
read:
Subd. 1a. Surviving spouse optional annuity. (a) If a member or former member who has
credit for not less than three years of allowable service and dies before the
annuity or disability benefit begins to accrue under section 353.29,
subdivision 7, or 353.33, subdivision 2, notwithstanding any designation of
beneficiary to the contrary, the surviving spouse may elect to receive, instead
of a refund with interest under subdivision 1, or surviving spouse benefits
otherwise payable under section 353.31, an annuity equal to the 100 percent
joint and survivor annuity that the member could have qualified for had the
member terminated service on the date of death.
(b) If the member was under age 55 and has credit for
at least 30 years of allowable service on the date of death, the surviving
spouse may elect to receive a 100 percent joint and survivor annuity based on
the age of the member and surviving spouse on the date of death. The annuity is payable using the full early
retirement reduction under section 353.30, subdivisions 1b and 1c, to age 55
and one-half of the early retirement reduction from age 55 to the age payment
begins.
(c)
If the member was under age 55 and has credit for at least three years of
allowable service on the date of death but did not qualify for retirement, the
surviving spouse may elect to receive the 100 percent joint and survivor
annuity based on the age of the member and surviving spouse at the time of
death. The annuity is payable using the
full early retirement reduction under section 353.30, subdivision 1, 1b, 1c, or
5, to age 55 and one-half of the early retirement reduction from age 55 to the
age payment begins.
(d) Notwithstanding the definition of
surviving spouse in section 353.01, subdivision 20, a former spouse of the
member, if any, is entitled to a portion of the monthly surviving spouse
optional annuity if stipulated under the terms of a marriage dissolution decree
filed with the association. If there is
no surviving spouse or child or children, a former spouse may be entitled to a
lump-sum refund payment under subdivision 1, if provided for in a marriage
dissolution decree but not a monthly surviving spouse optional annuity despite
the terms of a marriage dissolution decree filed with the association.
(e) The surviving spouse eligible for
surviving spouse benefits 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. The surviving spouse eligible for surviving
spouse benefits under paragraph (b) or (c) may apply for an annuity any time
after the member's death. The annuity
must be computed under sections 353.29, subdivisions 2 and 3; and 353.30,
subdivisions 1, 1a, 1b, 1c, and 5; and 353.31, subdivision 3.
(f) Sections 353.34, subdivision 3, and
353.71, subdivision 2, apply to a deferred annuity or surviving spouse benefit
payable under this subdivision. No
payment may accrue beyond the end of the month in which entitlement to the
annuity has terminated or upon expiration of the term certain benefit payment
under subdivision 1b. An amount equal to
any excess of the accumulated contributions that were credited to the account
of the deceased employee over and above the total of the annuities paid and
payable to the surviving spouse must be paid to the deceased member's last
designated beneficiary or, if none, as specified under subdivision 1
surviving spouse's estate.
(g) A member may specify in writing
that this subdivision does not apply and that payment may be made only to the
designated beneficiary as otherwise provided by this chapter. The waiver of a surviving spouse annuity
under this section does not make a dependent child eligible for benefits under
subdivision 1c.
Sec. 23.
Minnesota Statutes 2004, section 353.32, subdivision 1b, is amended to
read:
Subd. 1b. Survivor
coverage term certain. (a) In
lieu of the 100 percent optional annuity under subdivision 1a, or a
refund under subdivision 1, the surviving spouse of a deceased member may elect
to receive survivor coverage for a term certain of five, ten, 15, or 20
years, but monthly payments must not exceed 75 percent of the average high-five
monthly salary of the deceased member.
The monthly term certain annuity must be actuarially equivalent to the
100 percent optional annuity under subdivision 1a.
(b) If a surviving spouse elects a term
certain annuity and dies before the expiration of the specified term certain
period, the commuted value of the remaining annuity payments must be paid in a
lump sum to the survivor's estate.
Sec. 24.
Minnesota Statutes 2004, section 353.33, subdivision 1, is amended to read:
Subdivision 1. Age, service, and salary requirements. A coordinated member who has at least three
years of allowable service and becomes totally and permanently disabled before
normal retirement age, and a basic member who has at least three years of
allowable service and who becomes totally and permanently disabled is entitled
to a disability benefit in an amount determined under subdivision
3. If the disabled person's public
service has terminated at any time, at least two of the required three years of
allowable service must have been rendered after last becoming of
disability benefits under subdivision 2 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,
subdivision 16, a an
active member. A repayment of a
refund must be made within six months after the effective date 353.017, subdivision
4, or 353.36, subdivision 2, may be made after the occurrence of the
disability for which an application under this section is filed.
Sec. 25.
Minnesota Statutes 2004, section 353.33, subdivision 9, is amended to
read:
Subd. 9. Return to public service
employment. (a) Any
person receiving a disability benefit under this section who is restored
to active public service except persons receiving benefits as provided in
employment not covered by subdivision 7, or 7a shall have the
disability benefit discontinued on the first day of the month following the
return to employment.
(b) If the person is employed by a governmental
subdivision as defined under section 353.01, subdivision 6, deductions must
be taken for the retirement fund and upon subsequent retirement have the
retirement annuity payable based upon all allowable service including that upon
which the disability benefits were based.
(c) If the employment is not through public service
covered under this chapter, the account may be placed on a deferred status and
the subsequent retirement annuity must be calculated as provided in section
353.34, subdivision 3, if the person meets the length of allowable service
requirement stated in that subdivision; or the person may request a refund of
any remaining employee deductions. The
refund shall be in an amount equal to the accumulated employee deductions plus
six percent interest compounded annually less the sum of the disability
benefits paid to the member.
Sec. 26. [353.335] DISABILITANT EARNINGS REPORTS.
Disability benefit recipients must report all earnings
from reemployment and from income from workers' compensation to the association
annually by May 15 in a format prescribed by the executive director. If the form is not submitted by May 15,
benefits will be suspended effective June 1.
Upon receipt of the form, if the disability benefit recipient is deemed
to be eligible for continued payment, benefits will be reinstated retroactive
to June 1.
Sec. 27.
Minnesota Statutes 2004, section 353.34, subdivision 1, is amended to
read:
Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to a refund
of accumulated employee deductions under subdivision 2, or to a deferred
annuity under subdivision 3. Application
for a refund may not be made prior to the date of termination of public service
or the termination of membership, whichever is sooner. Except as specified in paragraph (b), a
refund must be paid within 120 days following receipt of the application unless
the applicant has again become a public employee required to be covered by the
association.
(b) If an individual was granted an authorized
temporary placed on layoff under section 353.01, subdivision 12
or 12c, a refund is not payable before termination of membership
service under section 353.01, subdivision 11b, clause (3) 11a.
(c) An individual who terminates public service
covered by the Public Employees Retirement Association general plan, the Public
Employees Retirement Association police and fire plan, or the public employees
local government corrections service retirement plan, and who is employed by
a different employer and becomes an active member covered by one of the
other two plans, may receive a refund of employee contributions plus six
percent interest compounded annually from the plan in which the member
terminated service.
Sec.
28. Minnesota Statutes 2004, section
353.656, subdivision 4, is amended to read:
Subd. 4. Limitation on disability benefit payments. (a) No member is entitled to receive a
disability benefit payment when there remains to the member's credit unused
annual leave or sick leave or under any other circumstances when, during the
period of disability, there has been no impairment of the person's salary as a
police officer or, a firefighter, or a paramedic as defined in
section 353.64, subdivision 10, whichever applies.
(b) If a disabled member resumes a gainful occupation
with earnings less than, that when added to the normal disability
benefit, and workers' compensation benefit if applicable, exceed the
disabilitant reemployment earnings limit, the amount of the disability benefit
must be reduced as provided in this paragraph.
The disabilitant reemployment earnings limit is the greater of:
(1) the salary earned at the date of disability; or
(2) 125 percent of the base salary currently
paid by the employing governmental subdivision for similar positions.
The disability benefit must be reduced by one dollar
for each three dollars by which the total amount of the current disability
benefit, any workers' compensation benefits if applicable, and actual
earnings exceed the greater disabilitant reemployment earnings limit. In no event may the disability benefit as
adjusted under this subdivision exceed the disability benefit originally
allowed.
Sec. 29.
Minnesota Statutes 2004, section 353D.01, subdivision 2, is amended to
read:
Subd. 2. Eligibility. (a) Eligibility to participate in the defined
contribution plan is available to:
(1) elected local government officials of a
governmental subdivision who elect to participate in the plan under section
353D.02, subdivision 1, and who, for the elected service rendered to a
governmental subdivision, are not members of the Public Employees Retirement
Association within the meaning of section 353.01, subdivision 7;
(2) physicians who, if they did not elect to
participate in the plan under section 353D.02, subdivision 2, would meet the
definition of member under section 353.01, subdivision 7;
(3) basic and advanced life support emergency medical
service personnel employed by or providing services for any public
ambulance service or privately operated ambulance service that receives an
operating subsidy from a governmental entity that elects to participate
under section 353D.02, subdivision 3;
(4) members of a municipal rescue squad associated with
Litchfield in Meeker County, or of a county rescue squad associated with
Kandiyohi County, if an independent nonprofit rescue squad corporation,
incorporated under chapter 317A, performing emergency management services, and
if not affiliated with a fire department or ambulance service and if its
members are not eligible for membership in that fire department's or ambulance
service's relief association or comparable pension plan; and
(5) employees of the Port Authority of the city of St.
Paul who elect to participate in the plan under section 353D.02, subdivision 5,
and who are not members of the Public Employees Retirement Association under
section 353.01, subdivision 7.
(b) For purposes of this chapter, an elected local
government official includes a person appointed to fill a vacancy in an
elective office. Service as an elected
local government official only includes service for the governmental
subdivision for which the official was elected by the public-at-large. Service as an elected local government
official ceases and eligibility to participate terminates when the person
ceases to be an elected official. An
elected local government official does not include an elected county sheriff.
(c)
Individuals otherwise eligible to participate in the plan under this
subdivision who are currently covered by a public or private pension plan
because of their employment or provision of services are not eligible to
participate in the public employees defined contribution plan.
(d) A former participant is a person who has terminated
eligible employment or service and has not withdrawn the value of the person's
individual account.
Sec. 30.
Minnesota Statutes 2004, section 353D.02, subdivision 3, is amended to
read:
Subd. 3. Eligible ambulance service personnel. Each public ambulance service or privately
operated ambulance service with eligible personnel that receives an
operating subsidy from a governmental entity may elect to participate in
the plan. If a service elects to
participate, its eligible personnel may elect to participate or to decline to
participate. An individual's election
must be made within 30 days of the service's election to participate or 30 days
of the date on which the individual was employed by the service or began to
provide service for it, whichever date is later. An election by a service or an individual is
revocable.
Sec. 31.
Minnesota Statutes 2004, section 353E.02, subdivision 3, is amended to
read:
Subd. 3. County correctional institution. A county correctional institution is:
(1) a jail administered by a county;
(2) a correctional facility administered by a county; or
(3) a regional correctional facility administered by or
on behalf of multiple counties; or
(4) a juvenile correctional facility administered by a
county or on behalf of multiple counties.
Sec. 32.
Minnesota Statutes 2004, section 354.45, subdivision 1a, is amended to
read:
Subd. 1a. Bounce-back annuity. (a) If a former member or disabilitant
selects a joint and survivor annuity option under subdivision 1 after June
30, 1989, the former member or disabilitant must receive a normal single
life annuity if the designated optional annuity beneficiary dies before the
former member or disabilitant. Under
this option, no reduction may be made in the person's annuity to provide for
restoration of the normal single life annuity in the event of the death of the
designated optional annuity beneficiary.
(b) A former member or disabilitant who selected an
optional joint and survivor annuity before July 1, 1989, but did not choose an
option that provides that the normal single life annuity is payable to the
former member or the disabilitant if the designated optional annuity
beneficiary dies first, is eligible for restoration of the normal single life
annuity if the designated optional annuity beneficiary dies first, without
further actuarial reduction of the person's annuity. A former member or disabilitant who selected
an optional joint and survivor annuity, but whose designated optional annuity
beneficiary died before July 1, 1989, shall receive a normal single life
annuity after that date, but shall not receive retroactive payments for periods
before that date The annuity adjustment specified in paragraph (a) also
applies to joint and survivor annuity options under subdivision 1 elected prior
to July 1, 1989. The annuity adjustment
under this paragraph occurs on July 1, 1989, or on the first day of the first
month following the death of the designated optional annuity beneficiary,
whichever is later. This paragraph
should not be interpreted as authorizing retroactive payments.
(c) The restoration of the normal single life annuity
under this subdivision will take effect on the first of the month following the
date of death of the designated optional annuity beneficiary or on the first of
the month following one year before the date on which a certified copy of the
death record of the designated optional annuity beneficiary is received in the
office of the Teachers Retirement Association, whichever date is later.
Sec.
33. Minnesota Statutes 2004, section
354A.32, subdivision 1a, is amended to read:
Subd. 1a. Bounce-back annuity. (a) If a former coordinated member or
disabilitant has selected a joint and survivor annuity option under subdivision
1 after June 30, 1989, the former member or disabilitant must receive a
normal single life annuity if the designated optional annuity beneficiary dies
before the former member or disabilitant.
Under this option, no reduction may be made in the person's annuity to
provide for restoration of the normal single life annuity in the event of the
death of the designated optional annuity beneficiary.
(b) A former coordinated member or disabilitant who
selected an optional joint and survivor annuity before July 1, 1989, but
did not choose an option that provides that the normal single life annuity is
payable to the former member or the disabilitant if the designated optional
annuity beneficiary dies first, is eligible for restoration of the normal
single life annuity if the designated optional annuity beneficiary dies first,
without further actuarial reduction of the person's annuity. A former member or disabilitant who selected
an optional joint and survivor annuity, but whose designated optional annuity
beneficiary died before July 1, 1989, shall receive a normal single life
annuity after that date, but shall not receive retroactive payments for periods
before that date The annuity adjustment specified in paragraph (a) also
applies to joint and survivor annuity options elected prior to July 1,
1989. The annuity adjustment under this
paragraph occurs on July 1, 1989, or on the first day of the first month
following the death of the designated optional annuity beneficiary, whichever is
later. This paragraph should not be interpreted
as authorizing retroactive payments.
(c) A former coordinated member or disabilitant who
took a further actuarial reduction to elect an optional joint and survivor
annuity that provides that the normal annuity is payable to the former member
or disabilitant if the designated optional beneficiary dies first but has not
died before July 1, 1989, shall have the annuity increased as of July 1, 1989,
to the amount the person would have received if, at the time of retirement or
disability, the person had selected only optional survivor coverage that would
not have provided for restoration of the normal annuity upon the death of the
designated optional annuity beneficiary.
Any annuity or benefit increase under this paragraph is effective only
for payments made after June 30, 1989, and is not retroactive for payments made
before July 1, 1989.
(d) Unless otherwise specified in this
subdivision, the restoration of the normal single life annuity under this
subdivision will take effect on the first of the month following the date of
death of the designated optional annuity beneficiary or on the first of the
month following one year before the date on which a certified copy of the death
record of the designated optional annuity beneficiary is received in the office
of the appropriate teachers retirement fund association, whichever date is
later.
Sec. 34.
Minnesota Statutes 2004, section 354D.05, is amended to read:
354D.05
CONTRIBUTIONS.
Subdivision 1. Member contributions. Eligible employees (a) Participants
in the individual retirement account plan who are specified in section 354D.02,
subdivision 2, clause (1) or (2), and who would otherwise be eligible to
participate in the members of a Minnesota State Retirement System, the
Public Employees Retirement Association, or the Teachers Retirement
Association plan, but who participate in the individual retirement
account plan, shall make a member
contribution in an amount equal to the member contribution amount required
by the plan for which the individual was originally eligible for
membership. The contribution as
specified in section 354B.23, subdivision 1.
(b) For individual retirement account plan members
specified in section 354D.02, subdivision 2, clause (3), the member
contribution is the employee contribution specified in applicable law for the
Minnesota State Retirement System, Public Employees Retirement Association, or
Teachers Retirement Association plan in which the individual would otherwise be
a member.
(c)
Contributions under this subdivision
Subd. 2. Employer contributions. (a) The employer of eligible
employees an employee described in subdivision 1 who are eligible
to participate in either the Minnesota State Retirement System or the Public
Employees Retirement Association shall, paragraph (a), must make an
employer contribution to the employee's individual retirement account plan
in an amount equal to the employer contribution amount required by the plan
for which the individual was originally eligible for membership account
as specified in section 354B.23, subdivisions 3 and 4.
(b) The employer of eligible
employees an employee described in subdivision 1 who are eligible
to participate in the Teachers Retirement Association shall, paragraph
(b), must make an employer contribution to the employee's individual
retirement account plan in an amount account equal to the
employer contribution including, if applicable, any employer additional
contribution required by section 354.42, subdivision 3, and shall make
an employer contribution to the applicable plan law for the Minnesota
State Retirement System, Public Employees Retirement Association, or Teachers
Retirement Association in an amount equal to which the employer
contribution required by section 354.42, subdivision 5 individual would
otherwise be a member.
Sec. 35. Laws
2004, chapter 267, article 8, section 41, is amended to read:
Sec. 41. 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. 36. EARLY RETIREMENT INCENTIVE.
Subdivision 1.
Eligibility. An appointing authority in the executive
or legislative branch of state government or the Board of Public Defense or the
Minnesota Historical Society or the Minnesota State Colleges and Universities
or any school district may offer the early retirement incentive in this section
to an employee who:
(1) has at least 15 years of allowable service in one
or more of the funds listed in Minnesota Statutes, section 356.30, subdivision
3, or has at least five years of coverage by the individual retirement account
plan governed by Minnesota Statutes, chapter 354B, and upon retirement is
immediately eligible for a retirement annuity or benefit from one or more of
these funds; and
(2) terminates state or teaching service after the
effective date of this section and before September 1, 2006.
Subd. 2.
Incentive. (a) For an employee eligible under
subdivision 1, the employer may provide an amount up to $17,000, to be used:
(1) for an employee who terminates state service after
the effective date of this section and on or before July 15, 2006, for deposit
in the employee's account in the health care savings plan established by
Minnesota Statutes, section 352.98; or
(2) for an employee who terminates state service after
July 15, 2006, and before September 1, 2006:
(i) notwithstanding Minnesota Statutes, section 352.01,
subdivision 11, or 354.05, subdivision 13, whichever applies, for purchase of
service credit for unperformed service sufficient to enable the employee to
retire under Minnesota Statutes, section 352.116, subdivision 1, paragraph (b);
353.30; or 354.44, subdivision 6, paragraph (b), whichever applies; or
(ii)
for purchase of a lifetime annuity or annuity for a specific number of years
from the state unclassified retirement program to provide additional benefits
under Minnesota Statutes, section 352D.06, subdivision 1.
(b) An employee is eligible for the payment under
paragraph (a), clause (2), item (i), if the employee uses money from a deferred
compensation account that, combined with the payment under paragraph (a),
clause (2), item (i), would be sufficient to purchase enough service credit to
qualify for retirement under Minnesota Statutes, section 352.116, subdivision
1, paragraph (b); 353.30, subdivision 1a; or 354.44, subdivision 6, paragraph
(b), whichever applies.
(c) The cost to purchase service credit under this
section must be made in accordance with Minnesota Statutes, section 356.551.
Subd. 3.
Designation of positions;
employer discretion. Before
offering an incentive under this section, an appointing authority must be
experiencing employee layoffs due to budget shortfalls or reorganization that
would be offset by offering the incentive.
The appointing authority must document that the incentive payment is
equal to or less than the cost of the employee layoff. The appointing authority must designate the
job classifications or positions within the job classifications that qualify
for the incentive. The appointing authority
may modify this designation at any time.
Designation of positions eligible for the incentive under this section,
participation of individual employees, and the amount of the payment under this
section are at the sole discretion of the appointing authority. Unilateral implementation of this section by
the employer is not an unfair labor practice under Minnesota Statutes, chapter
179A.
Sec. 37. PERA-GENERAL; PURCHASE OF SERVICE CREDIT
FOR ILLINOIS MUNICIPAL RETIREMENT PLAN COVERED SERVICE.
(a) Notwithstanding any provision of Minnesota
Statutes, chapter 353, to the contrary, a member of the general employees
retirement plan of the Public Employees Retirement Association who left active
employment covered by Minnesota Statutes, chapter 353, was employed in public
employment covered by the Illinois municipal retirement plan, and returned to
active Minnesota local government employment may purchase allowable service
credit in the general employees retirement plan of the Public Employees
Retirement Association for the period of service covered by the Illinois
municipal retirement plan by authorizing the transfer of funds specified in
paragraph (b) and by making the payment specified in paragraph (c).
(b) If a person elects to obtain service credit under
this section, the person shall authorize an institution-to-institution transfer
of the person's account in the Illinois municipal retirement plan to the
general employees retirement fund of the Public Employees Retirement
Association.
(c) If a person elects to obtain service credit under
this section and authorizes an account transfer under paragraph (b), the person
shall pay the balance of the prior service credit purchase payment calculated
under Minnesota Statutes, section 356.551, in excess of the account transfer
amount.
(d) The election under this section must be made in writing
on a form prescribed by the executive director of the Public Employees
Retirement Association. The person
making this election also must waive any retirement annuity or benefit from the
Illinois municipal retirement fund and must provide any reasonable
documentation of the person's compliance with qualification requirements to the
executive director of the Public Employees Retirement Association that is
requested by the director.
Sec.
38. REPEALER.
Minnesota Statutes 2004, section 43A.34, subdivision
1, is repealed.
Sec. 39. EFFECTIVE DATE.
(a) Sections 1 and 38 are effective the day following
final enactment.
(b) Sections 2 to 33 and 35 are effective July 1,
2006.
(c) Section 34 is effective the first day of the first
payroll period next following final enactment.
(d) Sections 3, 4, 20, 21, 32, and 33 are not intended
to increase, modify, impair, or diminish the benefit entitlements specified in
the sections of Minnesota Statutes being amended. If the executive director of the Minnesota State
Retirement System, the Public Employees Retirement Association, the Teachers
Retirement Association, or a first class city teacher retirement fund
association, whichever is applicable, 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 applicable 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 and Veterans Affairs Policy Committee, the senate State and Local
Governmental Operations Committee, and the executive director of the Legislative
Commission on Pensions and Retirement.
ARTICLE 4
PERA-P&F RETIREMENT PLAN CHANGES
Section 1.
Minnesota Statutes 2005 Supplement, section 353.656, subdivision 1, is
amended to read:
Subdivision 1. In line of duty; computation of benefits. (a) A member of the police and fire
plan who:
(1) has not met the requirements for a retirement
annuity under section 353.651, subdivision 1, or
(2) has met the requirements for a retirement annuity
under section 353.651, subdivision 1, but who does not have 20 years of
credited service; and who becomes disabled and physically unfit to perform
duties as a police officer, firefighter, or paramedic as defined under section
353.64, subdivision 10, as a direct result of an injury, sickness, or other
disability incurred in or arising out of any act of duty, which has or is
expected to render the member physically or mentally unable to perform the
duties as a police officer, firefighter, or paramedic as defined under section
353.64, subdivision 10, for a period of at least one year, shall receive
disability benefits during the period of such disability.
(b) The benefits must be in an amount
equal to 60 percent of the "average salary" as defined in section
353.01, subdivision 17a, plus an additional percent specified in section
356.315, subdivision 6, of that average salary for each year of service in
excess of 20 years. If the disability
under this subdivision occurs before the member has at least five years of
allowable service credit in the police and fire plan, the disability benefit
must be computed on the "average salary" from which deductions were
made for contribution to the police and fire fund.
Sec.
2. Minnesota Statutes 2004, section
353.656, subdivision 3, is amended to read:
Subd. 3. Nonduty disability benefit. (a) Any member of the police and fire
plan who:
(1) has not met the requirements for a retirement
annuity under section 353.651, subdivision 1, or
(2) has met the requirements for a retirement annuity
under section 353.651, subdivision 1, but who does not have 15 years of
credited service; and who becomes disabled after not less than one year of
allowable service because of sickness or injury occurring while not on duty as
a police officer, firefighter, or paramedic as defined under section 353.64,
subdivision 10, and by reason of that sickness or injury the member has been or
is expected to be unable to perform the duties as a police officer,
firefighter, or paramedic as defined under section 353.64, subdivision 10, for
a period of at least one year, is entitled to receive a disability benefit.
(b) The benefit must be paid in the
same manner as if the benefit were paid under section 353.651. If a disability under this subdivision occurs
after one but in less than 15 years of allowable service, the disability
benefit must be the same as though the member had at least 15 years
service. For a member who is employed as
a full-time firefighter by the Department of Military Affairs of the state of
Minnesota, allowable service as a full-time state Military Affairs Department
firefighter credited by the Minnesota State Retirement System may be used in
meeting the minimum allowable service requirement of this subdivision.
Sec. 3.
Minnesota Statutes 2004, section 353.656, subdivision 6a, is amended to
read:
Subd. 6a. Disability
survivor benefits. If a member who
is receiving a disability benefit under subdivision 1 or 3:
(a) (1) dies before attaining the
age 65 required for receipt of a retirement annuity under section
353.651, subdivision 1, or within five years of the effective date of the
disability, whichever is later, the surviving spouse shall receive a survivor
benefit under section 353.657, subdivision 2 or 2a, unless the surviving spouse
elected to receive a refund under section 353.32, subdivision 1. The joint and survivor optional annuity under
subdivision 2a is based on the minimum disability benefit under subdivision 1
or 3, or the deceased member's allowable service, whichever is greater.;
(b) (2) is living at the age
65 required for receipt of a retirement annuity under section 353.651,
subdivision 1, or five years after the effective date of the disability,
whichever is later, the member may continue to receive a normal disability
benefit, or the member may elect a joint and survivor optional annuity under
section 353.30. The optional annuity is
based on the minimum disability benefit under subdivision 1 or 3, or the
member's allowable service, whichever is greater. The election of this joint and survivor
annuity must occur within 90 days of the age 65 required for
receipt of a retirement annuity under section 353.651, subdivision 1, or
the five-year anniversary of the effective date of the disability benefit,
whichever is later. The optional annuity
takes effect the first of the month following the month in which the person
attains the age 65 required for receipt of a retirement
annuity under section 353.651, subdivision 1, or reaches the five-year
anniversary of the effective date of the disability benefit, whichever is later.;
or
(c) if there is (3) has a dependent child
or children under paragraph (a) or (b) clause (1) or (2), the
association shall grant a dependent child benefit under section 353.657,
subdivision 3.
Sec. 4. EFFECTIVE DATE.
Sections 1 to 3 are effective July 1, 2006.
ARTICLE
5
PRIVATIZATION RETIREMENT COVERAGE CHANGE
Section 1.
Minnesota Statutes 2004, section 352F.04, is amended to read:
352F.04
AUGMENTATION INTEREST RATE RATES FOR TERMINATED UNIVERSITY
HOSPITAL PRIVATIZED EMPLOYEES.
Subdivision 1.
Enhanced augmentation rates. (a) The deferred annuity of a
terminated hospital employee who attained that status prior to the effective
date of this section is subject to augmentation in accordance with under
Minnesota Statutes 1994, section 352.72, subdivision 2, except that the
rate of interest for this purpose augmentation is 5.5 percent
compounded annually until January 1 following the year in which such the
person attains age 55. From that
date to the effective date of retirement, the augmentation rate is 7.5
percent compounded annually. These
(b) If a terminated hospital employee attained that
status on or after the effective date of this section, the augmentation rate is
four percent compounded annually until January 1, following the year in which
the person attains age 55. From that
date to the effective date of retirement, the augmentation rate is six percent
compounded annually.
Subd. 2.
Exceptions. The increased augmentation rates are
no longer applicable for any time after specified in subdivision 1 do
not apply if the terminated hospital employee or Academic Health Center
employee:
(1) becomes covered again by a
retirement fund plan enumerated in section 356.30, subdivision 3. These increased deferred annuity augmentation
rates do not apply to a terminated transferred hospital employee or Academic
Health Center employee who; or
(2) begins receipt of a retirement
annuity while employed by Fairview the employer which assumed
operations of the medical facility or other public employing unit or purchased
the medical facility or other public employing unit.
Sec. 2.
Minnesota Statutes 2005 Supplement, section 353F.02, subdivision 4, is
amended to read:
Subd. 4. Medical facility. "Medical facility" means:
(1) Bridges Medical Services;
(2) the City of Cannon Falls Hospital;
(3) Clearwater County Memorial Hospital doing business
as Clearwater Health Services in Bagley;
(4) the Dassel Lakeside Community Home;
(5) the Fair Oaks Lodge, Wadena;
(3) (6) the
Glencoe Area Health Center;
(4) (7) the
Hutchinson Area Health Care;
(5) (8) the
Kanabec Hospital;
(6) (9) the
Luverne Public Hospital;
(7) (10) the
Northfield Hospital;
(8) (11) the
RenVilla Nursing Home;
(9) (12) the
Renville County Hospital in Olivia;
(10) (13) the St.
Peter Community Healthcare Center; and
(11) (14) the
Waconia-Ridgeview Medical Center.
Sec. 3.
Minnesota Statutes 2004, section 353F.04, is amended to read:
353F.04
AUGMENTATION INTEREST RATE RATES FOR TERMINATED MEDICAL OR
OTHER PUBLIC EMPLOYING UNIT FACILITY EMPLOYEES.
Subdivision 1.
Enhanced augmentation rates. (a) The deferred annuity of a
terminated medical facility or other public employing unit employee is subject
to augmentation in accordance with under section 353.71,
subdivision 2, of the edition of Minnesota Statutes published in the year in
which the privatization occurred, except that the rate of interest for this
purpose augmentation is as specified in paragraph (b) or (c),
whichever is applicable.
(b) This paragraph applies if the legislation adding
the medical facility or other employing unit to section 353F.02, subdivision 4
or 5, as applicable, was enacted before July 26, 2005, and became effective
before January 1, 2007. For a terminated
medical facility or other public employing unit employee, the augmentation rate
is 5.5 percent compounded annually until January 1 following the
year in which such the person attains age 55. From that date to the effective date of
retirement, the augmentation rate is 7.5 percent compounded annually. These
(c) If paragraph (b) is not applicable, the
augmentation rate is four percent compounded annually until January 1,
following the year in which the person attains age 55. From that date to the effective date of retirement,
the augmentation rate is six percent compounded annually.
Subd. 2.
Exceptions. The increased augmentation rates are
no longer applicable for any time after specified in subdivision 1 do
not apply if the terminated medical facility or other public employing unit
employee:
(1) becomes covered again by a
retirement fund plan enumerated in section 356.30, subdivision 3. These increased deferred annuity augmentation
rates do not apply to a terminated transferred medical facility or other public
employing unit employee who; or
(2) begins receipt of a retirement
annuity while employed by the employer which assumed operations of the medical
facility or other public employing unit or purchased the medical facility or
other public employing unit.
Sec. 4. EFFECTIVE DATE.
(a) Sections 1 and 3 are effective the day following
final enactment and section 3 has effect retroactively from July 25, 2005.
(b) Section 2 with respect to the Cannon Falls
Hospital District is effective upon the latter of:
(1) the day after the governing body of the Cannon
Falls Hospital District and its chief clerical officer meet the requirements
under Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
(2)
the first day of the month following certification to the Cannon Falls Hospital
District 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 City of Cannon Falls Hospital
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 under Minnesota Statutes, section 356.214. The cost of the actuarial calculations must
be borne by the current employer or by the entity which is the employer
following the privatization.
(c) Section 2, with respect to Clearwater County
Memorial Hospital, is effective upon the latter of:
(1) the day after the governing body of Clearwater
County and its chief clerical officer meet the requirements under Minnesota
Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month following certification
to Clearwater County 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 Clearwater Health
Services employees under section 2 does not exceed the actuarial gain otherwise
to be accrued by the Public Employees Retirement Association, as calculated by
the consulting actuary retained under Minnesota Statutes, section 356.214. The cost of the actuarial calculations must
be borne by the current employer or by the entity which is the employer
following the privatization.
(d) Section 2 with respect to the Dassel Lakeside
Community Home is effective upon the latter of:
(1) the day after the governing body of the city of
Dassel and its chief clerical officer timely complete compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month next following
certification to the Dassel City Council 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 Dassel
Lakeside Community Home employees under section 2 does not exceed the actuarial
gain otherwise to be accrued by the Public Employees Retirement Association, as
calculated by the consulting actuary retained under Minnesota Statutes, section
356.214. The cost of the actuarial
calculations must be borne by the city of Dassel or by the entity which is the
employer following the privatization.
ARTICLE 6
SOCIAL SECURITY COVERAGE CHANGES
Section 1.
Minnesota Statutes 2004, section 355.01, subdivision 3g, is amended to
read:
Subd. 3g. Local governmental subdivision. "Local governmental subdivision"
means:
(1) a political subdivision as defined in section
218(b) of the Social Security Act;
(2) an instrumentality of the state;
(3) an instrumentality of one or more of the political
subdivisions of the state, including the League of Minnesota Cities;
(4) an instrumentality of the state and one or more of
its political subdivisions;
(5) a governmental subdivision as defined in section
353.01, subdivision 6; and
(6)
any instrumentality established under a joint powers agreement under section
471.59 wherein the instrumentality is responsible for the employment and the
payment of the salaries of the employees of the instrumentality.
Sec. 2.
Minnesota Statutes 2004, section 355.02, subdivision 1, is amended to
read:
Subdivision 1. General authority. (a) The director, with the approval of the
governor, is hereby authorized to enter into an agreement on behalf of the
state, its political subdivisions, and its other governmental employers, with the federal Secretary of Health and Human
Services, consistent with the terms and provisions of this chapter, for the
purpose of extending the benefits of the federal old age, survivors, and
disability insurance system to employees of the state or any political
subdivision thereof who hold positions covered by a retirement system with
respect to services specified in the agreement which constitute
"employment,." whenever so specifically authorized
by the statutory provisions of this state pertaining to any coverage group of
such employees to which the agreement may become applicable under the Social
Security Act.
(b) Under this specific authorization The
agreement may contain those provisions relating to coverage, benefits,
contributions, effective date, modification and termination of the agreement,
administration, and other appropriate provisions as the director and the
federal Secretary of Health and Human Services shall agree upon, but, except as
may be otherwise required by or under the Social Security Act as to the
services to be covered, such agreement must provide in effect that:
(1) benefits will be provided for employees whose
services are covered by the agreement (and their dependents and survivors) on
the same basis as though those services constituted employment within the
meaning of title II of the Social Security Act;
(2) the state or other employer will pay to the
federal Secretary of the Treasury, at such time or times as may be prescribed
under the Social Security Act, contributions with respect to wages, equal to
the sum of the taxes which would be imposed by the Federal Insurance
Contributions Act if the services covered by the agreement constituted
employment within the meaning of that act;
(3) the agreement is effective with respect to
services in employment covered by the agreement performed after a date
specified therein; and
(4) all services which constitute employment and are
performed in the employ of the state or any of its political subdivisions by
employees thereof, may be covered by the agreement whenever so specifically
authorized by the statutory provisions of this state pertaining to any coverage
group of such employees to which the agreement may become applicable under the
Social Security Act.
Sec. 3.
Minnesota Statutes 2004, section 355.02, subdivision 3, is amended to
read:
Subd. 3. Groups covered by Social Security. (a) The following groups having
coverage under a retirement plan in section 356.30, subdivision 3, except
clauses (4) and (8) must be covered by an agreement or a modification to an
agreement between the director and the federal Secretary of Health and Human
Services:
(1) constitutional officers;
(2) Duluth teachers;
(3) educational employees;
(4) higher education employees;
(5)
hospital employees;
(6) judges;
(7) legislators;
(8) Minneapolis teachers;
(9) public employees;
(10) St. Paul teachers; and
(11) special authority or district employees; and
(12) state employees.
(b) The following groups must be covered prospectively
following the referendum in subdivision 4 and the modification to the state
Social Security agreement under subdivision 1:
(1) special authority or district employees in
positions covered by a retirement plan provided by the employer; and
(2) local elected officials of a local governmental
subdivision or of a special authority or district holding positions covered by
the defined contribution plan under chapter 353D.
(c) Each local governmental subdivision or special
authority or district desiring inclusion in the state Social Security agreement
for groups covered by paragraph (b) must request such coverage by submitting a
formal resolution to the director, including therein the desired starting date
for Social Security coverage.
(d) For purposes of paragraph (b), clause (2), the
defined contribution plan of the Public Employees Retirement Association is
considered a separate retirement system with respect to each local governmental
subdivision or special authority or district, and the elected officials in a
local governmental subdivision or in a special authority or district must be
treated separately and independently from the other governmental subdivisions.
Sec. 4.
Minnesota Statutes 2004, section 355.02, is amended by adding a
subdivision to read:
Subd. 4.
Referendum. The director shall authorize and supervise
a referendum under section 218(d)(6)(C) of the Social Security Act to be held
on the date or dates set by the local governmental subdivision or by the
special authority or district desiring inclusion under subdivision 3, paragraph
(b). The referendum must permit each
eligible employee the opportunity to elect Social Security coverage. The notice of referendum required by section
218(d) of the Social Security Act must contain a statement sufficient to inform
the person of the rights which accrue under the Social Security Act and the
employee contribution rates applicable to the program. The cost of the referendum must be borne by
the governmental subdivision. The
director, on receiving satisfactory evidence that the conditions required by
section 218 of the Social Security Act have been met, must so certify to the
Secretary of Health and Human Services.
Sec. 5.
Minnesota Statutes 2004, section 355.02, is amended by adding a
subdivision to read:
Subd. 5.
Retroactive Social Security
coverage. An employee or
elected official who elects Social Security coverage under subdivision 4 may
obtain retroactive coverage for the period specified in the modification of the
agreement if the individual is employed by the local governmental subdivision
or by the special authority or district on
the date of the modification of the agreement.
The employee or elected official must pay an amount equal to the taxes
which would have been imposed on the person by the Federal Insurance
Contributions Act had the service been covered at the time performed. The employing local governmental subdivision
or special authority or district must pay the necessary employer contributions
for the retroactive period. Nothing in
this section shall require an employee or elected official to elect retroactive
Social Security coverage.
Sec. 6. [355.095] OPTIONAL MEDICARE COVERAGE FOR
CERTAIN PUBLIC EMPLOYEES.
Subdivision 1.
Agreement. (a) The director, on behalf of the state,
its political subdivisions, and its other governmental employers, is authorized
to enter into an agreement with the Secretary of Health and Human Services to
extend the provisions of United States Code, title 42, section 426, 426-1, and
1395c, to the employees in paragraph (b) who meet the requirements of United
States Code, title 42, section 418(v)(2) and who do not have coverage by the
federal old age, survivors, and disability insurance program for that employment
under any previous modification of the agreement or previous Medicare
referendum.
(b) The applicable employees are:
(1) employees who are members of one of the retirement
plans in section 356.30, subdivision 3, except clauses (4) and (8), based on
continuous employment since March 31, 1986; and
(2) employees of a special authority or district who
have been continuously employed by the special authority or district since
March 31, 1986.
Subd. 2.
Referendum. (a) Each local governmental subdivision or
special authority or district desiring inclusion in the state Social Security
agreement under subdivision 1 must request such coverage by submitting a formal
resolution to the director, including therein the desired starting date for
Social Security coverage.
(b) The director shall authorize a referendum on the
question of extending the provisions of United States Code, title 42, sections
426, 426-1, and 1395c. The director
shall supervise the referendum in accordance with the requirements of United
States Code, title 42, section 418, on the date or dates set. The cost of such referendum must be borne by
the requesting retirement plan, or the requesting special authority or
district. The notice of the referendum
provided to each eligible employee must contain a statement sufficient to
inform the person of the rights available as an employee in Medicare qualified
government employment and the employee contribution rates applicable to the
program. The referendum must permit each
eligible employee the opportunity to vote in such referendum in accordance with
the requirements in the Social Security Act.
The director, on receiving satisfactory evidence that the conditions
specified in United States Code, title 42, section 418(d)(7) have been met,
must so certify to the Secretary of Health and Human Services.
Subd. 3.
Contributions. Employers must pay the necessary employer
contributions and make the necessary deductions from salary for employees who
elect to participate in the federal Medicare program under this section and as
required by federal law.
Subd. 4.
Retroactive Medicare coverage. An individual who obtains Medicare
coverage through the referendum under subdivision 2 may obtain retroactive
coverage for the period specified in the modification of the agreement if
employed by the governmental subdivision or by the special authority or
district on the date of the modification of the agreement. The individual must pay an amount equal to
the Medicare taxes which would have been imposed on the employee had the
service been covered at the time performed.
The employing local governmental subdivision or special authority or
district must pay the necessary employer contributions for the retroactive
Medicare coverage period. Nothing in
this section shall require an employee or elected official to elect retroactive
Medicare coverage.
Sec. 7. EFFECTIVE DATE.
Sections 1 to 6 are effective the day following final
enactment.
ARTICLE
7
SUPPLEMENTAL RETIREMENT PLAN COVERAGE CHANGES
Section 1.
Minnesota Statutes 2004, section 356.24, subdivision 1, is amended to
read:
Subdivision 1. Restriction; exceptions. It is unlawful for a school district or other
governmental subdivision or state agency to levy taxes for, or to contribute
public funds to a supplemental pension or deferred compensation plan that is
established, maintained, and operated in addition to a primary pension program
for the benefit of the governmental subdivision employees other than:
(1) to a supplemental pension plan that was established,
maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health,
hospital, disability, or death benefits;
(3) to the individual retirement account plan
established by chapter 354B;
(4) to a plan that provides solely for severance pay
under section 465.72 to a retiring or terminating employee;
(5) for employees other than personnel employed by the
Board of Trustees of the Minnesota State Colleges and Universities and covered
under the Higher Education Supplemental Retirement Plan under chapter 354C, if
the supplemental plan coverage is provided for in a personnel policy of the
public employer or in the collective bargaining agreement between the public
employer and the exclusive representative of public employees in an appropriate
unit, in an amount matching employee contributions on a dollar for dollar
basis, but not to exceed an employer contribution of $2,000 a year per
employee;
(i) to the state of Minnesota deferred compensation
plan under section 352.96; or
(ii) in payment of the applicable portion of the
contribution made to any investment eligible under section 403(b) of the
Internal Revenue Code, if the employing unit has complied with any applicable
pension plan provisions of the Internal Revenue Code with respect to the
tax-sheltered annuity program during the preceding calendar year;
(6) for personnel employed by the Board of Trustees of
the Minnesota State Colleges and Universities and not covered by clause (5), to
the supplemental retirement plan under chapter 354C, if the supplemental plan
coverage is provided for in a personnel policy or in the collective bargaining
agreement of the public employer with the exclusive representative of the
covered employees in an appropriate unit, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an employer
contribution of $2,700 a year for each employee;
(7) to a supplemental plan or to a governmental trust
to save for postretirement health care expenses qualified for tax-preferred
treatment under the Internal Revenue Code, if the supplemental plan coverage is
provided for in a personnel policy or in the collective bargaining agreement of
a public employer with the exclusive representative of the covered employees in
an appropriate unit;
(8) to the laborer's national industrial pension fund or
to a laborer's local pension fund for the employees of a governmental
subdivision who are covered by a collective bargaining agreement that provides
for coverage by that fund and that sets forth a fund contribution rate, but not
to exceed an employer contribution of $2,000 $5,000 per year per
employee;
(9)
to the plumbers' and pipefitters' national pension fund or to a plumbers' and
pipefitters' local pension fund for the employees of a governmental subdivision
who are covered by a collective bargaining agreement that provides for coverage
by that fund and that sets forth a fund contribution rate, but not to exceed an
employer contribution of $2,000 $5,000 per year per employee;
(10) to the International Union of Operating Engineers
pension fund for the employees of a governmental subdivision who are covered by
a collective bargaining agreement that provides for coverage by that fund and
that sets forth a fund contribution rate, but not to exceed an employer
contribution of $2,000 $5,000 per year per employee; or
(11) to a supplemental plan organized and operated
under the federal Internal Revenue Code, as amended, that is wholly and solely
funded by the employee's accumulated sick leave, accumulated vacation leave,
and accumulated severance pay; or
(12) to the International Association of Machinists
national pension fund for the employees of a governmental subdivision who are
covered by a collective bargaining agreement that provides for coverage by that
fund and that sets forth a fund contribution rate, but not to exceed an
employer contribution of $5,000 per year per employee.
Sec. 2. EFFECTIVE DATE.
Section 1 is effective the day following final
enactment.
ARTICLE 8
RETIREMENT FUND INVESTMENT AUTHORITY CHANGES
Section 1.
Minnesota Statutes 2004, section 69.77, subdivision 9, is amended to
read:
Subd. 9. Local police and paid fire relief
association investment authority.
(a) The funds of the association must be invested in securities that are
authorized investments under section 356A.06, subdivision 6 or 7, whichever
applies. Up to 75 percent of the
market value of the assets of Notwithstanding any provision of section
356A.06, subdivision 6 or 7 to the contrary, the special fund of
the relief association may be additionally invested in:
(1) open-end investment companies registered under the
federal Investment Company Act of 1940, if the portfolio investments of the
investment companies comply with the type of securities authorized for
investment under section 356A.06, subdivision 7, up to 75 percent of the
market value of the assets of the fund; and
(2) domestic government and corporate debt obligations
that are not rated in the top four quality categories by a nationally
recognized rating agency, and comparable unrated securities if the percentage
of these assets does not exceed five percent of the total assets of the special
fund or 15 percent of the special fund's nonequity assets, whichever is less,
the special fund's participation is limited to 50 percent of a single offering
of the debt obligations, and the special fund's participation is limited to 25
percent of an issuer's debt obligations that are not rated in the top four
quality categories. Securities
held by the association before June 2, 1989, that do not meet the requirements
of this subdivision may be retained after that date if they were proper
investments for the association on that date.
(b) The governing board of the association may select
and appoint investment agencies to act for and in its behalf or may certify
special fund assets for investment by the State Board of Investment under
section 11A.17. The governing board of
the association may certify general fund assets of the relief association for investment
by the State Board of Investment in fixed income pools or in a separately
managed account at the discretion of the State Board of Investment as provided
in section 11A.14. The governing board
of the association may select and appoint a qualified private firm to measure
management performance and return on investment, and the firm shall use the
formula or formulas developed by the state board under section 11A.04, clause
(11).
Sec.
2. Minnesota Statutes 2004, section
354A.08, is amended to read:
354A.08
AUTHORIZED INVESTMENTS.
In addition to investments authorized under section
356A.06, subdivision 7, a teachers retirement fund association may receive,
hold, and dispose of:
(1) real estate or personal property
acquired by it, whether the acquisition was by purchase, or any other lawful
means, as provided in this chapter or in the association's articles of
incorporation.; and
(2) domestic government and corporate debt obligations
that are not rated in the top four quality categories by a nationally
recognized rating agency, and comparable unrated securities if the percentage
of these assets does not exceed five percent of the total assets of the pension
plan or 15 percent of the pension plan's nonequity assets, whichever is less,
the pension plan's participation is limited to 50 percent of a single offering
of the debt obligations, and the pension plan's participation is limited to 25
percent of an issuer's debt obligations that are not rated in the top four
quality categories.
In addition to other authorized real estate
investments, an association may also invest funds in Minnesota situs nonfarm
real estate ownership interests or loans secured by mortgages or deeds of
trust. The board may also certify
assets for investment by the State Board of Investment as provided under
section 11A.17.
Sec. 3.
Minnesota Statutes 2004, section 354A.28, subdivision 5, is amended to
read:
Subd. 5. Investment. The assets of the annuity reserve fund must
be invested, reinvested, and retained in the discretion of by the
board of trustees of the Minneapolis Teachers Retirement Fund Association in
authorized investments under section 11A.24 356A.06, subdivision 7.
Sec. 4.
Minnesota Statutes 2004, section 356.219, subdivision 3, is amended to
read:
Subd. 3. Content of reports. (a) The report required by subdivision 1 must
include a written statement of the investment policy in effect on June 30,
1997, if that statement has not been previously submitted. Following that date initial report,
subsequent reports must include investment policy changes and the effective
date of each policy change rather than a complete statement of investment
policy, unless the state auditor requests submission of a complete current
statement. The report must also include
the information required by the following paragraphs, as applicable.
(b) If after four years of reporting under this
paragraph, the total portfolio time weighted rate of return, net of all
investment related costs and fees, provided by the public pension plan differs
by no more than 0.1 percent from the comparable return for the plan calculated
by the office of the state auditor, and if a public pension plan has a
total market value of $10,000,000 $25,000,000 or more as of the
beginning of the calendar year, and if the public pension plan's annual
audit is performed by the state auditor or by the legislative auditor, the
report required by subdivision 1 must include the market value of the total
portfolio and the market value of each investment account, investment portfolio,
or asset class included in the pension fund as of the beginning of the
calendar year and as of the end of the calendar year. At the discretion of the state auditor, the
public pension plan may be required to submit the market value of the total
portfolio and the market value of each investment account, investment
portfolio, or asset class included in the pension fund for each month, and
the amount and date of each injection and withdrawal to the total portfolio and
to each investment account, investment portfolio, or asset class. If a public pension plan once files a
report under this paragraph the market value of a public pension plan's
fund drops below $25,000,000 in a subsequent year, it must continue
reporting under this paragraph for any subsequent year in which the public
pension plan is not fully invested as specified in subdivision 1, paragraph
(b), even if asset values drop below $10,000,000 in market value in that
subsequent year except that if the public pension plan's annual audit is
not performed by the state auditor or legislative auditor, paragraph (c)
applies.
(c)
If paragraph (b) would apply if the annual audit were provided by the state
auditor or legislative auditor, the report required by subdivision 1 must
include the market value of the total portfolio and the market value of each
asset class included in the pension fund as of the beginning of the calendar
year and for each month, and the amount and date of each injection and
withdrawal to the total portfolio and to each investment account, investment
portfolio, or asset class.
(d) For public pension plans to which
paragraph (b) or (c) applies, the report required by subdivision 1 must
also include a calculation of the total time-weighted rate of return available
from index-matching investments assuming the asset class performance targets
and target asset mix indicated in the written statement of investment
policy. The provided information must
include a description of indices used in the analyses and an explanation of why
those indices are appropriate. This
paragraph does not apply to any fully invested plan, as defined by subdivision
1, paragraph (b). Reporting by the State
Board of Investment under this paragraph is limited to information on the
Minnesota public pension plans required to be invested by the State Board of
Investment under section 11A.23.
(d) (e) If a public pension
plan has a total market value of less than $10,000,000 $25,000,000 as
of the beginning of the calendar year and was never required to file under
paragraph (b) or (c), the report required by subdivision 1 must include
the amount and date of each total portfolio injection and withdrawal. In addition, the report must include the
market value of the total portfolio as of the beginning of the calendar year
and for each quarter.
(e) (f) Any public pension plan
reporting under paragraph (b) or (d) may (c) must include
computed time-weighted rates of return with the report, in addition to all
other required information, as applicable.
If these returns are supplied, the individual who computed The
chief administrative officer of the public pension plan submitting the
returns must certify on a form prescribed by the state auditor that the
returns have been computed by the pension plan's investment performance
consultant or custodial bank. The chief
administrative officer of the public pension plan submitting the returns also
must certify that the returns are net of all costs and fees, including
investment management fees, and that the procedures used to compute the returns
are consistent with Bank Administration Institute studies of investment
performance measurement and Association for Investment Management and
Research presentation standards set by the Certified Financial Analyst
Institute. If the certifications
required under this paragraph are not provided, the reporting requirements of
paragraph (c) apply.
(f) (g) For public pension
plans reporting under paragraph (d) (e), the public pension plan
must retain supporting information specifying the date and amount of each
injection and withdrawal to each investment account and investment
portfolio. The public pension plan must
also retain the market value of each investment account and investment
portfolio at the beginning of the calendar year and for each quarter. Information that is required to be collected
and retained for any given year or years under this paragraph must be submitted
to the Office of the State Auditor if the Office of the State Auditor requests
in writing that the information be submitted by a public pension plan or plans,
or be submitted by the State Board of Investment for any plan or plans for
which the State Board of Investment is the investment authority under this
section. If the state auditor requests
information under this subdivision, and the public plan fails to comply, the
pension plan is subject to penalties under subdivision 5, unless penalties are
waived by the state auditor under that subdivision.
Sec. 5.
Minnesota Statutes 2004, section 356.219, subdivision 6, is amended to
read:
Subd. 6. Investment disclosure report. (a) The state auditor shall prepare an annual
report to the legislature on the investment performance of the various public
pension plans subject to this section.
The content of the report is specified in paragraphs (b) to (e)
(f).
(b) For each public pension plan reporting under
subdivision 3, paragraph (b), the state auditor shall and
date of each injection and withdrawal to the total portfolio and to each
investment account, investment portfolio, or asset class as prescribed under
subdivision 3, paragraph (b), the state auditor shall also compute and report
total portfolio and asset class time-weighted rates of return, net of all costs
and fees.compute and report
total portfolio and asset class time-weighted rates of return, net of all
investment-related costs and fees. If
the state auditor has required a plan to submit the market value of the total
portfolio and the market value of each investment account, investment
portfolio, or asset class included in the pension fund for each month, and the
amount
(c) For each public pension plan reporting under
subdivision 3, paragraph (c), the state auditor shall compute and report total
portfolio and asset class time-weighted rates of return, net of all costs and
fees.
(d) For each public pension plan
reporting under subdivision 3, paragraph (d) (e), the state
auditor shall compute and report total portfolio time-weighted rates of return,
net of all costs and fees. If the state
auditor has requested data for a plan under subdivision 3, paragraph (f)
(g), the state auditor may also compute and report asset class
time-weighted rates of return, net of all costs and fees.
(d) (e) The report by the state
auditor must include the information submitted by the pension plans under
subdivision 3, paragraph (c) (d), or a synopsis of that
information.
(e) (f) The report by the state
auditor may also include a presentation of multiyear performance, information
collected under subdivision 4, and any other information or analysis deemed
appropriate by the state auditor.
Sec. 6.
Minnesota Statutes 2005 Supplement, section 356A.06, subdivision 7, is
amended to read:
Subd. 7. Expanded list of authorized investment
securities. (a) Authority. Except to the
extent otherwise authorized by law or bylaws, a covered pension plan not
described by subdivision 6, paragraph (a), may shall invest its
assets only in accordance with this subdivision.
(b) Securities
generally. The covered pension plan
has the authority to purchase, sell, lend, or exchange the securities specified
in paragraphs (c) to (h) (i), including puts and call options and
future contracts traded on a contract market regulated by a governmental agency
or by a financial institution regulated by a governmental agency. These securities may be owned as units in
commingled trusts that own the securities described in paragraphs (c) to (h)
(i), including real estate investment trusts and insurance company commingled
accounts, including separate accounts.
(c) Government
obligations. The covered pension
plan may invest funds in governmental bonds, notes, bills, mortgages, and other
evidences of indebtedness provided the issue is backed by the full faith and
credit of the issuer or the issue is rated among the top four quality rating
categories by a nationally recognized rating agency. The obligations in which funds may be
invested under this paragraph include guaranteed or insured issues of (1) the
United States, its agencies, its instrumentalities, or organizations created
and regulated by an act of Congress; (2) Canada and its provinces, provided the
principal and interest is payable in United States dollars; (3) the states and
their municipalities, political subdivisions, agencies, or instrumentalities;
(4) the International Bank for Reconstruction and Development, the
Inter-American Development Bank, the Asian Development Bank, the African
Development Bank, or any other United States government sponsored organization
of which the United States is a member, provided the principal and interest is
payable in United States dollars.
(d) Corporate
obligations. The covered pension
plan may invest funds in bonds, notes, debentures, transportation equipment
obligations, or any other longer term evidences of indebtedness issued or
guaranteed by a corporation organized under the laws of the United States or
any state thereof, or the Dominion of Canada or any province thereof if they
conform to the following provisions:
(1) the principal and interest of obligations of
corporations incorporated or organized under the laws of the Dominion of Canada
or any province thereof must be payable in United States dollars; and
(2)
obligations must be rated among the top four quality categories by a nationally
recognized rating agency.
(e) Other
obligations. (1) The covered pension plan may invest funds in bankers
acceptances, certificates of deposit, deposit notes, commercial paper, mortgage
participation certificates and pools, asset backed securities, repurchase
agreements and reverse repurchase agreements, guaranteed investment contracts,
savings accounts, and guaranty fund certificates, surplus notes, or debentures
of domestic mutual insurance companies if they conform to the following
provisions:
(i) bankers acceptances and deposit notes of United
States banks are limited to those issued by banks rated in the highest four
quality categories by a nationally recognized rating agency;
(ii) certificates of deposit are limited to those
issued by (A) United States banks and savings institutions that are rated in
the highest four quality categories by a nationally recognized rating agency or
whose certificates of deposit are fully insured by federal agencies; or (B)
credit unions in amounts up to the limit of insurance coverage provided by the
National Credit Union Administration;
(iii) commercial paper is limited to those issued by
United States corporations or their Canadian subsidiaries and rated in the
highest two quality categories by a nationally recognized rating agency;
(iv) mortgage participation or pass through
certificates evidencing interests in pools of first mortgages or trust deeds on
improved real estate located in the United States where the loan to value ratio
for each loan as calculated in accordance with section 61A.28, subdivision 3,
does not exceed 80 percent for fully amortizable residential properties and in
all other respects meets the requirements of section 61A.28, subdivision 3;
(v) collateral for repurchase agreements and reverse
repurchase agreements is limited to letters of credit and securities authorized
in this section;
(vi) guaranteed investment contracts are limited to
those issued by insurance companies or banks rated in the top four quality
categories by a nationally recognized rating agency or to alternative
guaranteed investment contracts where the underlying assets comply with the
requirements of this subdivision;
(vii) savings accounts are limited to those fully
insured by federal agencies; and
(viii) asset backed securities must be rated in the
top four quality categories by a nationally recognized rating agency.
(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05
do not apply to certificates of deposit and collateralization agreements
executed by the covered pension plan under clause (1), item (ii).
(3) In addition to investments authorized by clause
(1), item (iv), the covered pension plan may purchase from the Minnesota
Housing Finance Agency all or any part of a pool of residential mortgages, not
in default, that has previously been financed by the issuance of bonds or notes
of the agency. The covered pension plan
may also enter into a commitment with the agency, at the time of any issue of
bonds or notes, to purchase at a specified future date, not exceeding 12 years
from the date of the issue, the amount of mortgage loans then outstanding and
not in default that have been made or purchased from the proceeds of the bonds
or notes. The covered pension plan may
charge reasonable fees for any such commitment and may agree to purchase the
mortgage loans at a price sufficient to produce a yield to the covered pension
plan comparable, in its judgment, to the yield available on similar mortgage
loans at the date of the bonds or notes.
The covered pension plan may also enter into agreements with the agency
for the investment of any portion of the funds of the agency. The agreement must cover the period of the
investment, withdrawal privileges, and any guaranteed rate of return.
(f)
Corporate stocks. The covered pension plan may invest funds
in stocks or convertible issues of any corporation organized under the laws of
the United States or the states thereof, any corporation organized under the
laws of the Dominion of Canada or its provinces, or any corporation listed on
an exchange regulated by an agency of the United States or of the Canadian
national government, if they conform to the following provisions:
(1) the aggregate value of corporate stock
investments under this paragraph, plus paragraphs (g) and (k), plus equity
investments under paragraphs (h), (i), and (j), as adjusted for realized profits
gains and losses, must not exceed 85 percent of the market or book
value, whichever is less, of a fund, less the aggregate value of investments
according to paragraph (h); and
(2) investments must not exceed five percent of the
total outstanding shares of any one corporation.
(g) Developed
market foreign stocks investments.
In addition to investments authorized under paragraph (f), the
covered pension fund may invest in foreign stock sold on an exchange in any
developed market country included in the Europe, Australia, and Far East Index.
(h) Commingled or mutual investments. The covered pension plan may invest in
index funds or mutual funds, including index mutual funds, through
bank-sponsored collective funds and shares of open-end investment companies
registered under the Federal Investment Company Act of 1940, if the investments
of the index or mutual fund comply with paragraphs (c) to (j).
(i) Real estate investment trust; related investments. The covered pension plan may invest in
real estate investment trusts secured by mortgages or deeds of trust and sold
on an exchange, and insurance company commingled accounts, including separate
accounts, of a debt or equity nature.
(j) Exchange traded funds. The covered pension plan may invest
funds in exchange traded funds, subject to the maximums, the requirements, and
the limitations set forth in paragraph (d), (e), (f), or (h), whichever
applies paragraphs (c) to (i), as applicable.
(h) (k) Other investments. (1) In addition to the investments
authorized in paragraphs (b) to (g) (j), and subject to the
provisions in clause (2), the covered pension plan may invest funds in:
(i) venture capital investment businesses through
participation in limited partnerships and corporations;
(ii) real estate ownership interests or loans secured
by mortgages or deeds of trust through investment in limited partnerships,
or bank sponsored collective funds, trusts, and insurance company
commingled accounts, including separate accounts;
(iii) regional and mutual funds through bank sponsored
collective funds and open-end investment companies registered under the Federal
Investment Company Act of 1940 which do not qualify under paragraph (h);
(iv) resource investments through limited
partnerships, private placements, and corporations; and
(v) international debt securities and
emerging market equity securities.
(2) The investments authorized in clause (1) must
conform to the following provisions:
(i) the aggregate value of all investments made
according to clause (1) may not exceed 35 20 percent of the
market value of the fund for which the covered pension plan is investing;
(ii)
there must be at least four unrelated owners of the investment other than the
covered pension plan for investments made under clause (1), item (i), (ii),
(iii), or (iv);
(iii) covered pension plan participation in an
investment vehicle is limited to 20 percent thereof for investments made under
clause (1), item (i), (ii), (iii), or (iv); and
(iv) covered pension plan participation in a limited
partnership does not include a general partnership interest or other interest
involving general liability. The covered
pension plan may not engage in any activity as a limited partner which creates
general liability.
Sec. 7. TRANSITION PROVISION.
A covered pension plan with investments that on the
day prior to the effective date of this section do not comply with section 3
shall divest of any assets not in compliance before January 1, 2008.
Sec. 8. EFFECTIVE DATE.
Sections 1 to 5 are effective the day following final
enactment.
ARTICLE 9
MINNEAPOLIS EMPLOYEES RETIREMENT FUND CHANGES
Section 1.
Minnesota Statutes 2004, section 422A.05, subdivision 2c, is amended to
read:
Subd. 2c. Minneapolis employees retirement fund
investment authority. (a) For
investments made on or after July 1, 1991, the board shall invest funds only in
investments authorized by section 356A.06, subdivision 7.
(b) However, in addition to real estate investments
authorized under paragraph (a), the board may also make loans to purchasers of
Minnesota situs nonfarm residential real estate that is owned by the
Minneapolis Employees Retirement Fund.
The loans must be secured by mortgages or deeds of trust.
(c) For investments made before July 1, 1991, the
board may, but is not required to, comply with paragraph (a). However, with respect to these investments,
the board shall act in accordance with subdivision 2a and chapter 356A.
(d) The board may certify assets for investment by the
State Board of Investment under section 11A.14, subject to any restrictions
established by the State Board of Investment, and section 11A.17.
Sec. 2.
Minnesota Statutes 2004, section 422A.06, subdivision 3, is amended to
read:
Subd. 3. Deposit accumulation fund. (a) The deposit accumulation fund
consists of the assets held in the fund, including amounts contributed by or
for employees, amounts contributed by the city, amounts contributed by
municipal activities supported in whole or in part by revenues other than taxes
and amounts contributed by any public corporation, amounts paid by the state,
and by income from investments.
(b) There must be paid from the fund
the amounts required to be transferred to the retirement benefit fund, or the
disability benefit fund, refunds of contributions, including the
death-while-active refund specified in section 422A.22, subdivision 4,
postretirement increases in retirement allowances granted under Laws 1965,
chapter 688, or Laws 1969, chapter 859, and expenses of the administration of
the retirement fund which were not charged by the retirement board against the
income of the retirement benefit fund from investments as the cost of handling
the investments of the retirement benefit fund.
(c)
To the extent that the deposit accumulation fund has insufficient assets to
transfer the total value of the required reserves for retirement annuities to
either the fund under subdivisions 5 and 7 or the retirement benefit fund under
subdivisions 5 and 8 as required, the deposit accumulation fund has a transfer
amount payable on which an interest charge accrues. The executive director must determine the
interest charge for the period that transfer amount payable remains unpaid at
an annual rate equal to five percent plus the percentage increase in the amount
of the annual Consumer Price Index for urban wage earners and clerical workers
as calculated by the Bureau of Labor Statistics of the United States Department
of Labor from the previous June 30. The
interest charge must be reflected in the books of the Minneapolis Employees
Retirement Fund and assessed against the deposit accumulation fund based on the
average quarterly transfer amount payable balance outstanding. Any revenue received by the deposit
accumulation fund subsequent to unpaid transfers must be transferred from the
deposit accumulation fund to the disability benefit fund or to the retirement
fund, whichever applies, must first be applied to any remaining interest charge
and then must be applied to the principal amount of transfer amount payable
outstanding.
Sec. 3.
Minnesota Statutes 2004, section 422A.06, subdivision 5, is amended to
read:
Subd. 5. Transfer of reserves to retirement benefit
fund; adjustments of annuities and benefits. (a) Assets equal to the required reserves for
retirement annuities as determined in accordance with the appropriate mortality
table adopted by the board of trustees based on the experience of the fund as
recommended by the commission-retained actuary retained under section
356.214 and using the postretirement interest assumption specified in
section 356.215, subdivision 8, shall must be transferred to the
disability benefit fund as provided in subdivision 7, or the retirement benefit
fund, except for any amounts payable from the survivor benefit fund, as of date
of retirement.
(b) If a full transfer amount is not payable from the
deposit accumulation fund, the applicable fund must be credited with an
interest-bearing transfer amount receivable.
(b) (c) Annuity
payments shall must be adjusted in accordance with this chapter,
except that no minimum retirement payments described in this chapter shall must
include any amounts payable from the survivors' benefit fund or disability
benefit fund and supplemented benefits specifically financed by statute.
(c) (d) Increases in
annuity payments pursuant to under this section shall must
be made automatically unless written notice on a form prescribed by the
board is filed with the retirement board requesting that the increase not be
made.
(d) (e) Any additional annuity which began to
accrue on July 1, 1973, or which began to accrue on January 1, 1974,
pursuant to Laws 1973, chapter 770, section 1, shall must be
considered as part of the base amount to be used in determining any
postretirement adjustments payable pursuant to under the
provisions of subdivision 8.
Sec. 4.
Minnesota Statutes 2005 Supplement, section 422A.06, subdivision 7, is
amended to read:
Subd. 7. Disability benefit fund. (a) A disability benefit fund is established,
containing the required reserves for disability allowances under this chapter
unless subdivision 3, paragraph (c), applies. A proportionate share of income from
investments must be allocated to this fund and any interest charge under
subdivision 3, paragraph (c), must be credited to the fund. There must be paid from this fund the
disability allowances payable under this chapter.
(b) In the event of the termination of any disability
allowance for any reason other than the death of the recipient, the balance of
the required reserves for the disability allowance as of the date of the
termination must be transferred from the disability benefit fund to the deposit
accumulation fund.
(c) At the end of each fiscal year, as part of the
annual actuarial valuation, a determination must be made of the required
reserves for all disability allowances being paid from the disability benefit
fund. Any excess of assets over
actuarial required reserves in the disability benefit fund must be transferred
to the deposit accumulation fund. Unless
subdivision 3, paragraph (c), applies, any excess of actuarial reserves
over assets in the disability benefit fund must be funded by a transfer of the
appropriate amount of assets from the deposit accumulation fund.
Sec.
5. Minnesota Statutes 2004, section
422A.06, subdivision 8, is amended to read:
Subd. 8. Retirement benefit fund. (a) The retirement benefit fund shall
consist consists of amounts held for payment of retirement
allowances for members retired pursuant to under this chapter,
including any transfer amount payable under subdivision 3, paragraph (c).
(b) Unless subdivision 3, paragraph (c), applies,
assets equal to the required reserves for retirement allowances pursuant to under
this chapter determined in accordance with the appropriate mortality table
adopted by the board of trustees based on the experience of the fund as
recommended by the commission-retained actuary shall retained
under section 356.214, must be transferred from the deposit accumulation fund
to the retirement benefit fund as of the last business day of the month in
which the retirement allowance begins.
The income from investments of these assets shall must be
allocated to this fund and any interest charge under subdivision 3,
paragraph (c), must be credited to the fund. There shall must be paid from
this fund the retirement annuities authorized by law. A required reserve calculation for the
retirement benefit fund must be made by the actuary retained by the
Legislative Commission on Pensions and Retirement under section 356.214 and
must be certified to the retirement board by the commission-retained actuary.
(c) The retirement benefit fund shall must be
governed by the applicable laws governing the accounting and audit procedures,
investment, actuarial requirements, calculation and payment of postretirement
benefit adjustments, discharge of any deficiency in the assets of the fund when
compared to the actuarially determined required reserves, and other applicable
operations and procedures regarding the Minnesota postretirement investment
fund in effect on June 30, 1997, established under Minnesota Statutes 1996,
section 11A.18, and any legal or administrative interpretations of those laws
of the State Board of Investment, the legal advisor to the Board of Investment
and the executive director of the State Board of Investment in effect on June
30, 1997. If a deferred yield adjustment
account is established for the Minnesota postretirement investment fund before
June 30, 1997, under Minnesota Statutes 1996, section 11A.18, subdivision 5,
the retirement board shall also establish and maintain a deferred yield
adjustment account within this fund.
(d) Annually, following the calculation of any
postretirement adjustment payable from the retirement benefit fund, the board
of trustees shall submit a report to the executive director of the Legislative
Commission on Pensions and Retirement and to the commissioner of finance
indicating the amount of any postretirement adjustment and the underlying calculations
on which that postretirement adjustment amount is based, including the amount
of dividends, the amount of interest, and the amount of net realized capital
gains or losses utilized in the calculations.
(e) With respect to a former contributing member who
began receiving a retirement annuity or disability benefit under section
422A.151, paragraph (a), clause (2), after June 30, 1997, or with respect to a
survivor of a former contributing member who began receiving a survivor benefit
under section 422A.151, paragraph (a), clause (2), after June 30, 1997, the
reserves attributable to the one percent lower amount of the cost-of-living
adjustment payable to those annuity or benefit recipients annually must be
transferred back to the deposit accumulation fund to the credit of the
Metropolitan Airports Commission. The
calculation of this annual reduced cost-of-living adjustment reserve transfer
must be reviewed by the actuary retained by the Legislative Commission on
Pensions and Retirement under section 356.214.
Sec. 6.
Minnesota Statutes 2004, section 422A.101, subdivision 3, is amended to
read:
Subd. 3. State contributions. (a) Subject to the limitation set forth in
paragraph (c), the state shall pay to the Minneapolis Employees Retirement Fund
annually an amount equal to the amount calculated under paragraph (b).
(b) The payment amount is an amount equal to the
financial requirements of the Minneapolis Employees Retirement Fund reported in
the actuarial valuation of the fund prepared by the commission-retained actuary
pursuant to section 356.215 for the most recent year but based on a target date
for full amortization of the unfunded actuarial
accrued liabilities by June 30, 2020, less the amount of employee contributions
required pursuant to section 422A.10, and the amount of employer contributions
required pursuant to subdivisions 1a, 2, and 2a. Payments shall be made September 15 annually.
(c) The annual state contribution under this
subdivision may not exceed $9,000,000, plus the cost of the annual supplemental
benefit determined under section 356.43.
(d) If the amount determined under paragraph (b)
exceeds $11,910,000 $9,000,000, the excess must be allocated to
and paid to the fund by the employers identified in subdivisions 1a and 2,
other than units of metropolitan government.
Each employer's share of the excess is proportionate to the employer's
share of the fund's unfunded actuarial accrued liability as disclosed in the
annual actuarial valuation prepared by the actuary retained by the Legislative
Commission on Pensions and Retirement under section 356.214 compared
to the total unfunded actuarial accrued liability attributed to all employers
identified in subdivisions 1a and 2, other than units of metropolitan
government. Payments must be made in
equal installments as set forth in paragraph (b).
Sec. 7. REPEALER.
Minnesota Statutes 2004, section 422A.101, subdivision
4, is repealed.
Sec. 8. EFFECTIVE DATE; LOCAL APPROVAL.
Sections 1 to 7 are effective retroactively on June
30, 2005, once the city council of the city of Minneapolis and its chief
clerical officer timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
ARTICLE 10
MINNEAPOLIS POLICE RELIEF ASSOCIATION CHANGES
Section 1. Minnesota
Statutes 2004, section 423B.07, is amended to read:
423B.07
AUTHORIZED FUND DISBURSEMENTS.
The police pension fund may be used only for the
payment of:
(1) service, disability, or dependency pensions;
(2) notwithstanding a contrary provision of section
69.80, the salaries of the elected members of the board of trustees in an
amount not to exceed three seven units for the president and
five units for other elected board members;
(3) expenses of officers and employees of the
association in connection with the protection of the fund;
(4) expenses of operating and maintaining the
association, including the administrative expenses related to the
administration of the insurance plan authorized in section 423B.08; and
(5) other expenses authorized by section 69.80, or
other applicable law.
Sec.
2. Minnesota Statutes 2005 Supplement,
section 423B.09, subdivision 1, is amended to read:
Subdivision 1. Minneapolis police; persons entitled to
receive pensions. The association
shall grant pensions payable from the police pension fund in monthly
installments to persons entitled to pensions in the manner and for the
following purposes.
(a) An active member or a deferred pensioner who has
performed duty as a member of the police department of the city for five years
or more, upon written application after retiring from duty and reaching at
least age 50, is entitled to be paid monthly for life a service pension. Active members, deferred members, and service
pensioners are entitled to a service pension according to the following
schedule:
A B
5
years 8.0
8.5 units 9.0
units
6
years 9.6
10.1 units 10.6
units
7
years 11.2
11.7 units 12.2
units
8
years 12.8
13.3 units 13.8
units
9
years 14.4
14.9 units 15.4
units
10
years 16.0
16.5 units 17.0
units
11
years 17.6
18.1 units 18.6
units
12
years 19.2
19.7 units 20.2
units
13
years 20.8
21.3 units 21.8
units
14
years 22.4
22.9 units 23.4
units
15
years 24.0
24.5 units 25.0
units
16
years 25.6
26.1 units 26.6
units
17
years 27.2
27.7 units 28.2
units
18
years 28.8
29.3 units 29.8
units
19
years 30.4
30.9 units 31.4
units
A B
20
years 34.5
units 35.0
units
21
years 36.1
units 36.6
units
22
years 37.7
units 38.2
units
23
years 39.3
units 39.8
units
24
years 40.9
units 41.4
units
25
years 42.5
units 43.0
units
Column A is applicable until
December 31, 2005, and applies retroactively to January 1, 2005, for a service
pensioner who retired before January 1, 2005.
Column B applies on and after January 1, 2006.
Fractional years of service may not
be used in computing pensions.
(b) An active member who after five
years' service but less than 20 years' service with the police department of
the city, becomes superannuated so as to be permanently unable to perform the
person's assigned duties, is entitled to be paid monthly for life a
superannuation pension equal to four units for five years of service and an
additional two units for each full year of service over five years and less
than 20 years.
(c) An active member who is not
eligible for a service pension and who, while a member of the police department
of the city, becomes diseased or sustains an injury while in the service that
permanently unfits the member for the performance of police duties is entitled
to be paid monthly for life a pension equal to 34 units while so disabled.
Sec.
3. EFFECTIVE
DATE; LOCAL APPROVAL.
(a) Section 1 is effective the day
after the date of approval by the city council of the city of Minneapolis and
the timely completion by the chief clerical officer of the city of Minneapolis
of compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
(b) Section 2 is effective the day
after the governing body of the city of Minneapolis and its chief clerical
officer timely complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
ARTICLE 11
RECODIFICATION OF VARIOUS
STATEWIDE SPECIALTY RETIREMENT
PLANS
Section 1. Minnesota Statutes 2004, section 3A.01,
subdivision 1, is amended to read:
Subdivision 1. Purposes. Each of the terms defined in this
section, for the purposes of this chapter shall be given has the
meanings meaning ascribed to them.
Sec. 2. Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:
Subd. 1a. Actuarial
equivalent. "Actuarial
equivalent" means the condition of one allowance or benefit having an
equal actuarial present value to another allowance or benefit, determined by
the actuary retained under section 356.214 as of a given date at a specified
age with each actuarial present value based on the mortality table applicable
for the plan and approved under section 356.215, subdivision 18, and using the
applicable preretirement or postretirement interest rate assumption specified
in section 356.215, subdivision 8.
Sec. 3. Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:
Subd. 1b. Average
monthly salary. "Average
monthly salary" means the average of the member's highest five successive
years of salary that was received as a member of the legislature and upon which
the member has made contributions under section 3A.03, subdivision 1, or for
which the member of the legislature has made payments for past service under
Minnesota Statutes 2004, section 3A.02, subdivision 2, or has made, before July
1, 1994, payments in lieu of contributions under Minnesota Statutes 1992,
section 3A.031.
Sec. 4. Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:
Subd. 1c. Constitutional
officer. "Constitutional
officer" means a person who was duly elected, qualifies for, and serves as
the governor, the lieutenant governor, the attorney general, the secretary of
state, or the state auditor of the state of Minnesota.
Sec. 5. Minnesota Statutes 2004, section 3A.01,
subdivision 2, is amended to read:
Subd. 2. Dependent
child. (a) "Dependent
child" means any natural or adopted child of a deceased member of the
legislature or a former legislator who is under the age of 18, or who is
under the age of 22 and is a full-time student, and who, in either case,
is unmarried and was actually dependent for more than one-half of support upon such
the legislator for a period of at least 90 days immediately prior
to before the legislator's death.
It
(b) The term also
includes any child of the member of the legislature or former legislator who
was conceived during the lifetime of, and who was born after the
death of, the member or former legislator.
This subdivision shall be retroactive as to any dependent child under
the age of 22 years as of April 1,1975.
Sec.
6. Minnesota Statutes 2004, section
3A.01, subdivision 6, is amended to read:
Subd. 6. Director. "Director" means the executive
director of the Minnesota State Retirement System who was appointed under
section 352.03, subdivision 5.
Sec. 7. Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:
Subd. 6b. Former
legislator. "Former
legislator" means a legislator who has ceased to be a member of the
legislature for any reason, including, but not limited to, the expiration of
the term for which a member of the legislature was elected or the death of the
member.
Sec. 8. Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:
Subd. 6c. Member
of the legislature. "Member
of the legislature" means a person who was a member of the house of
representatives or of the senate of the state of Minnesota who has subscribed
to the oath of office after July 1, 1965, and who was first elected to a
legislative office before July 1, 1997, and retained coverage by the plan under
Laws 1997, chapter 233, article 2, section 15.
Sec. 9. Minnesota Statutes 2004, section 3A.01,
subdivision 8, is amended to read:
Subd. 8. Normal
retirement age. "Normal
retirement age" means the age of 60 years with regard to any member of
the legislature whose service terminates prior to the beginning of the 1981
legislative session, and the age of 62 years with regard to any member
of the legislature whose service terminates after the beginning of the 1981
session.
Sec. 10. Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:
Subd. 9. Retirement. "Retirement" means the period of
time after which a former legislator is entitled to a retirement allowance.
Sec. 11. Minnesota Statutes 2004, section 3A.01, is
amended by adding a subdivision to read:
Subd. 10. Salary. (a) "Salary" means the regular
compensation payable under law to a member of the legislature and paid to the
person for service as a legislator.
(b) The term includes the monthly
compensation paid to the member of the legislature and the per diem payments
paid during a regular or special session to the member of the legislature.
(c) The term does not include per
diem payments paid to a member of the legislature other than during the regular
or special session; additional compensation attributable to a leadership
position under section 3.099, subdivision 3; living expense payments under
section 3.101; and special session living expense payments under section 3.103.
Sec. 12. Minnesota Statutes 2004, section 3A.011, is
amended to read:
3A.011
ADMINISTRATION OF PLAN.
The executive director and the
board of directors of the Minnesota State Retirement System shall
administer the legislators retirement plan in accordance with this chapter
and chapter 356A.
Sec.
13. Minnesota Statutes 2004, section
3A.02, subdivision 1, is amended to read:
Subdivision 1. Qualifications. (a) A former legislator is entitled, upon
written application to the director, to receive a retirement allowance monthly,
if the person:
(1) has either served at
least six full years, without regard to the application of section 3A.10,
subdivision 2, or has served during all or part of four regular sessions as a
member of the legislature, which service need not be continuous;
(2) has attained the normal
retirement age;
(3) has retired as a member of the
legislature; and
(4) has made all contributions
provided for in section 3A.03, has made payments for past service under
subdivision 2, or has made payments in lieu of contributions under Minnesota
Statutes 1992, section 3A.031, prior to before July 1, 1994.
(b) This paragraph applies to
members of the legislature who terminate service as a legislator before July 1,
1997. For service rendered before the
beginning of the 1979 legislative session, but not to exceed eight years of
service, the retirement allowance is an amount equal to five percent per year
of service of that member's average monthly salary. For service in excess of eight years rendered
before the beginning of the 1979 legislative session, and for service rendered
after the beginning of the 1979 legislative session, Unless the former
legislator has legislative service before January 1, 1979, the retirement
allowance is an amount equal to 2-1/2 percent per year of service of that
member's average monthly salary.
(c) This paragraph applies to
members of the legislature who terminate service as a legislator after June 30,
1997. The retirement allowance is an
amount equal to the applicable rate or rates under paragraph (b) per year of
service of the member's average monthly salary and adjusted
for that person on an actuarial equivalent basis to reflect the change in the
postretirement interest rate actuarial assumption under section 356.215,
subdivision 8, from five percent to six percent. The adjustment must be calculated by or,
alternatively, the adjustment procedure must be specified by, the actuary
retained by the Legislative Commission on Pensions and Retirement under
section 356.214. The purpose of this
adjustment is to ensure that the total amount of benefits that the actuary
predicts an individual member will receive over the member's lifetime under
this paragraph will be the same as the total amount of benefits the actuary
predicts the individual member would receive over the member's lifetime under
the law in effect before enactment of this paragraph. If the former legislator has legislative
service before January 1, 1979, the person's benefit must include the additional
benefit amount in effect on January 1, 1979, and adjusted as otherwise provided
in this paragraph.
(d) (c) The
retirement allowance accrues beginning with the first day of the month of
receipt of the application, but not before age 60, and for the remainder of the
former legislator's life, if the former legislator is not serving as a member
of the legislature or as a constitutional officer or commissioner as
defined in section 352C.021, subdivisions 2 and 3 3A.01, subdivision
1c. The annuity does not begin to
accrue prior to before the person's retirement as a
legislator. No annuity payment may be
made retroactive for more than 180 days before the date that the annuity
application is filed with the director.
(e) (d) Any member
who has served during all or part of four regular sessions is considered to
have served eight years as a member of the legislature.
(f) (e) The
retirement allowance ceases with the last payment that accrued to the retired
legislator during the retired legislator's lifetime, except that the surviving
spouse, if any, is entitled to receive the retirement allowance of
the retired legislator for the calendar month in which the retired
legislator died.
Sec.
14. Minnesota Statutes 2004, section
3A.02, subdivision 1b, is amended to read:
Subd. 1b. Reduced
retirement allowance. (a) Upon
separation from service after the beginning of the 1981 legislative session, a
former member of the legislature who has attained the age set by the board of
directors of the Minnesota State Retirement System and who is otherwise
qualified in accordance with under subdivision 1 is entitled,
upon making written application on forms supplied a form prescribed by
the director, to a reduced retirement allowance in. The reduced retirement allowance is an
amount equal to the retirement allowance specified in subdivision 1,
paragraph (b), that is reduced so that the reduced annuity allowance
is the actuarial equivalent of the annuity allowance that
would be payable if the former member of the legislature deferred receipt of
the annuity allowance and the annuity allowance amount
were was augmented at an annual rate of three percent compounded
annually from the date the annuity allowance begins to accrue
until age 62.
(b) The age set by the board of
directors under paragraph (a) cannot be less an earlier age than
the early retirement age under section 352.116, subdivision 1a.
(c) If there is an actuarial cost
to the plan of resetting the early retirement age under paragraph (a), the
retired legislator is required to pay an additional amount to cover the full
actuarial value. The additional amount
must be paid in a lump sum within 30 days of the certification of the amount by
the executive director.
(d) The executive director of the
Minnesota State Retirement System shall report to the Legislative Commission on
Pensions and Retirement on the utilization of this provision annually on
or before September 1, 2000.
Sec. 15. Minnesota Statutes 2004, section 3A.02,
subdivision 3, is amended to read:
Subd. 3. Appropriation. The amounts required for payment of
retirement allowances provided by this section are appropriated annually to the
director from the participation of the legislators retirement plan in
the Minnesota postretirement investment fund and shall. The retirement allowance must be paid
monthly to the recipients entitled thereto to those retirement
allowances.
Sec. 16. Minnesota Statutes 2004, section 3A.02,
subdivision 4, is amended to read:
Subd. 4. Deferred
annuities augmentation. (a) The
deferred annuity retirement allowance of any former legislator
must be augmented as provided herein.
(b) The
required reserves applicable to the deferred annuity retirement
allowance, determined as of the date the benefit begins to accrue using an
appropriate mortality table and an interest assumption of six percent, must be
augmented from the first of the month following the termination of active
service, or July 1, 1973, whichever is later, to the first day of the month
in which the annuity allowance begins to accrue, at the following
annually compounded rate of five percent per annum compounded annually
until January 1, 1981, and thereafter at the rate of three percent per annum
compounded annually until January 1 of the year in which the former legislator
attains age 55. From that date to the
effective date of retirement, the rate is five percent compounded annually. or
rates:
(1) five percent until January 1,
1981;
(2) three percent from January 1,
1981, or from the first day of the month following the termination of active
service, whichever is later, until January 1 of the year in which the former
legislator attains age 55; and
(3) five percent from the period
end date under clause (2) to the effective date of retirement.
(b)
The retirement allowance of, or the survivor benefit payable on behalf of, a
former member of the legislature who terminated service before July 1, 1997,
which is not first payable until after June 30, 1997, must be increased on an
actuarial equivalent basis to reflect the change in the postretirement interest
rate actuarial assumption under section 356.215, subdivision 8, from five
percent to six percent under a calculation procedure and tables adopted by the
board of directors of the Minnesota State Retirement System and approved by the
actuary retained by the Legislative Commission on Pensions and Retirement.
Sec. 17. Minnesota Statutes 2004, section 3A.02,
subdivision 5, is amended to read:
Subd. 5. Optional
annuities. (a) The board of
directors shall establish an optional retirement annuity in the form of a joint
and survivor annuity and an optional retirement annuity in the form of a period
certain and life thereafter. Except as
provided in paragraph (b), these optional annuity forms must be actuarially
equivalent to the normal annuity allowance computed under this
section, plus the actuarial value of any surviving spouse benefit otherwise
potentially payable at the time of retirement under section 3A.04, subdivision
1. An individual selecting an optional annuity
under this subdivision waives and the person's spouse waive any
rights to surviving spouse benefits under section 3A.04, subdivision 1.
(b) If a retired legislator selects
the joint and survivor annuity option, the retired legislator must receive a
normal single-life annuity allowance if the designated optional
annuity beneficiary dies before the retired legislator and no reduction may be
made in the annuity to provide for restoration of the normal single-life annuity
allowance in the event of the death of the designated optional
annuity beneficiary.
(c) The surviving spouse of a
legislator who has attained at least age 60 and who dies while a member of the
legislature may elect an optional joint and survivor annuity under paragraph
(a), in lieu of surviving spouse benefits under section 3A.04, subdivision 1.
Sec. 18. Minnesota Statutes 2004, section 3A.03,
subdivision 1, is amended to read:
Subdivision 1. Percentage. (a) Every member of the legislature
shall contribute nine percent of total salary,.
(b) The contribution must be made by payroll
deduction, to and must be paid into the state treasury and
deposited in the general fund. It
shall be the duty of
(c) The
director to must record the periodic contributions of each member
of the legislature and must credit such each contribution
to the member's account.
Sec. 19. Minnesota Statutes 2004, section 3A.03,
subdivision 2, is amended to read:
Subd. 2. Refund. (a) 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 from the
general fund of all contributions credited to the member's account with
interest 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 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 is
a new member of this plan the unclassified employees
retirement program of the Minnesota State Retirement System.
(d)
(d) (e) No person
may be required to apply for or to accept a refund.
Sec. 20. Minnesota Statutes 2004, section 3A.04,
subdivision 1, is amended to read:
Subdivision 1. Surviving
spouse. (a) Upon the death of
a member of the legislature while serving as such a member after
June 30, 1973, or upon the death of a former member of the legislature with
at least the number of six full years of service as required
by section 3A.02, subdivision 1, clause (1) or service in all or part of
four regular legislative sessions, the surviving spouse shall be paid is
entitled to a survivor benefit in the amount of .
(b) The surviving spouse benefit is one-half of
the retirement allowance of the member of the legislature computed as though
the member were at least normal retirement age on the date of death and based
upon the member's allowable service or upon eight years,
whichever is greater. The augmentation
provided in section 3A.02, subdivision 4, if applicable, shall must be
applied for the period up to, and including, the month of death.
(c) Upon the
death of a former legislator receiving a retirement allowance, the surviving
spouse shall be is entitled to one-half of the amount of the retirement
allowance being paid to the legislator.
Such
(d) The surviving spouse benefit shall
be paid during is payable for the lifetime of the surviving spouse.
Sec. 21. Minnesota Statutes 2004, section 3A.04,
subdivision 2, is amended to read:
Subd. 2. Dependent
children. (a) Upon the death
of a member of the legislature while serving as a member, or upon the death of
a former member of the legislature who has rendered at least the number of six
full years of service as required by section 3A.02, subdivision 1,
clause (1) or service in all or part of four regular legislative
sessions and who was not receiving a retirement allowance, each dependent
child of the member or former legislator shall be is entitled to
receive a survivor benefit in the following amount:
(1) for the first
dependent child, a monthly allowance which equals benefit equal to 25
percent of the monthly retirement allowance of the member of the legislature or
the former legislator computed as though the member or the former
legislator had attained at least the normal retirement age on the date of death
and based upon the average monthly salary as of the date of death or as of the
date of termination, whichever is applicable applies, and the member's
allowable service or eight years, whichever is greater;
(2) for each
additional dependent child, a monthly allowance which equals benefit
equal to 12-1/2 percent of the monthly retirement allowance of the member
or the former legislator computed as provided in the case of
the first child clause (1); but and
(3) the total
amount paid to the surviving spouse and to the dependent child or children
shall may not exceed, in any one month, 100 percent
of the monthly retirement allowance of the member or of the former
legislator computed as provided in the case of the first child clause
(1).
(b) The
augmentation provided in section 3A.02, subdivision 4, if applicable, shall
be applied applies from the first day of the month next following
the date of the termination of the person from service as a
member of the legislature to the month of the death of the person.
(c) Upon the
death of a former legislator who was receiving a retirement allowance, the a
surviving dependent child shall be is entitled to the
applicable percentage specified above in paragraph (a), clause (1) or
(2), whichever applies, of the amount of the allowance which was paid to
the former legislator for the month immediately prior to before the
date of death of the former legislator.
(d)
shall must be made to
the surviving spouse or to the guardian of the estate of the dependent
children, if there is one.
Sec. 22. Minnesota Statutes 2004, section 3A.04,
subdivision 3, is amended to read:
Subd. 3. Payment. The surviving spouse's spouse and
dependent children's child or children survivor benefits payable
under this section shall be paid are payable by the director
monthly in the same manner as retirement allowances are authorized to be paid
by this chapter.
Sec. 23. Minnesota Statutes 2004, section 3A.04,
subdivision 4, is amended to read:
Subd. 4. Death
refunds. (a) Upon the death
of a member of the legislature or of a former legislator who was not
receiving a retirement allowance, without leaving either a
surviving spouse or a dependent child or dependent children, the
last designated beneficiary named on a form that was filed with the
director before the death of the legislator, or if no designation is filed, the
estate of the member or the former legislator, upon application, shall
be is entitled to a refund.
(b) The refund is the amount of
contributions credited to the person's account plus
interest as provided in section 3A.03, subdivision 2, clause (2) paragraph
(a).
Sec. 24. Minnesota Statutes 2004, section 3A.04, is
amended by adding a subdivision to read:
Subd. 5. Appropriation. The survivor benefits and the death
refunds authorized by this section are appropriated to the director from the
general fund when they are due and payable.
Sec. 25. Minnesota Statutes 2004, section 3A.05, is
amended to read:
3A.05
APPLICATION FOR SURVIVOR BENEFIT.
(a) Applications
for survivor benefits pursuant to under section 3A.04 shall must
be filed with the director by the surviving spouse and dependent child
or children entitled to benefits pursuant to under section 3A.04,
or by the guardian of the estate, if there is one, of the dependent child or
children.
(b) Survivor
benefits shall accrue as of the first day of the month following the
death of the member of the legislature or former legislator and payments shall
commence as of the first of the month next following the filing of the
application, and shall be are retroactive to the date the benefit
accrues; provided, however, that no payment shall be retroactive for more
than or the first of the month occurring 12 months prior to before
the month in which the application is filed with the director,
whichever is earlier.
Sec. 26. Minnesota Statutes 2004, section 3A.07, is
amended to read:
3A.07
APPLICATION.
(a) Except as provided in paragraph
(b), this chapter applies to members of the legislature in service after July
1, 1965, who otherwise meet the requirements of this chapter.
(b) Members of the legislature who
were elected for the first time after June 30, 1997, or members of the
legislature who were elected before July 1, 1997, and who, after July 1, 1998,
elect not to be members of the plan established by this chapter are covered by
the unclassified employees retirement program governed by chapter 352D.
(c)
The post-July 1, 1998, coverage election under paragraph (b) is irrevocable and
must be made on a form prescribed by the director. The second chance referendum election
under Laws 2002, chapter 392, article 15, also is irrevocable.
Sec. 27. Minnesota Statutes 2004, section 3A.10,
subdivision 1, is amended to read:
Subdivision 1. Service
credit for legislative term. (a) In
the case of a member of the house of representatives, one full term of
office shall must be considered two full years of service,
notwithstanding the fact that the oath of office may be was taken
on different days each biennium.
(b) In the case
of a member of the senate, one full term of office shall must be
considered four full years of service, notwithstanding the fact
that the oath of office may be was taken on different days at the
start of each term.
(c) For
purposes of this chapter, a legislative term shall must be deemed
to commence on January 1st 1 and to end on December 31st 31.
Sec. 28. Minnesota Statutes 2004, section 3A.12, is
amended to read:
3A.12
COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR ASSOCIATION.
Subdivision 1. Entitlement
to annuity. (a) Any
legislator who has been an employee covered by a member of a
retirement plan listed in paragraph (b) is entitled, when otherwise qualified,
to a retirement allowance or annuity from each plan if the total allowable
service in all plans or in any two of these plans totals ten or more years.
(b) This section applies to any
retirement plan or program administered by the Minnesota State
Retirement System, or a member of any retirement plan administered by
the Public Employees Retirement Association, including the Public
Employees Retirement Association police and fire fund, or the Teachers
Retirement Association, or the Minneapolis employees retirement fund plan,
or the State Patrol retirement fund plan, or any other public
employee retirement system in the state of Minnesota having a like provision but
excluding all.
(c) This section does not apply to other funds
retirement plans providing benefits for police or firefighters,
shall be entitled when qualified to an annuity from each fund if the total
allowable service for which the legislator has credit in all funds or in any
two of these funds totals ten or more years, provided.
(d) No portion
of the allowable service upon which the retirement annuity from one fund plan
is based is again used in the computation for benefits from another fund
plan. The annuity from each fund
shall plan must be determined by the appropriate provisions of the
law, except that the requirement that a person must have at least ten
a minimum number of years of allowable service in the
respective system or association shall does not apply for the
purposes of this section provided if the combined service in two
or more of these funds plans equals ten or more years. The augmentation of deferred annuities
provided in section 3A.02, subdivision 4, shall apply applies to
the annuities accruing hereunder under this section.
Subd. 2. Refund
repayment. Any A former
legislator who has received a refund as provided in section 3A.03, subdivision
2, who is a currently contributing member of a retirement fund plan specified
in subdivision 1, paragraph (b), may repay the refund as provided in
section 3A.03, subdivision 2. Any A
member of the legislature who has received a refund from any of the funds
retirement plans specified in subdivision 1, may repay the
refund to the respective fund plan under such terms and
conditions consistent with the law governing such fund the retirement
plan if the law governing such fund the plan permits the
repayment of refunds. If the total
amount to be repaid, including principal and interest exceeds $2,000, repayment
may be made in three equal installments over a period of 18 months, with the
interest accrued during the period of the repayment added to the
final installment.
Sec.
29. [352C.001]
RETIREMENT PLAN; APPLICATION.
(a) The retirement plan applicable
to a former constitutional officer who was first elected to a constitutional
office after July 1, 1967, and before July 1, 1997, is the applicable portions
of this chapter and chapter 356 in effect on the date on which the person
terminated active service as a constitutional officer.
(b) Nothing in this section or
section 30 or 33, subdivision 2, is intended to reduce the benefits of former
constitutional officers or to adversely modify their eligibility for benefits
in effect as of the day before the effective date of this section.
Sec. 30. Minnesota Statutes 2004, section 352C.091,
subdivision 1, is amended to read:
Subdivision 1. Administrative
agency and standards. This
chapter (a) The elected officers retirement plan must be
administered by the board of directors and the executive director of the Minnesota
State Retirement System.
(b) The elected
state officers retirement plan must be administered consistent with this
chapter the applicable statutory provisions governing the plan and
chapters 356 and 356A.
Sec. 31. Minnesota Statutes 2004, section 352C.10, is
amended to read:
352C.10
BENEFIT ADJUSTMENTS.
Retirement allowances payable to
retired constitutional officers pursuant to section 352C.031 and
surviving spouse benefits payable pursuant to section 352C.04, shall must
be adjusted in the same manner, at the same times and in the same amounts
as are benefits payable from the Minnesota postretirement investment fund to
retirees of a participating public pension fund.
Sec. 32. Minnesota Statutes 2004, section 352D.02,
subdivision 1, is amended to read:
Subdivision 1. Coverage. (a) Employees enumerated in paragraph (c),
clauses (2), (3), (4), and (6) to (14), if they are in the unclassified service
of the state or Metropolitan Council and are eligible for coverage under the
general state employees retirement plan under chapter 352, are participants in
the unclassified plan under this chapter unless the employee gives notice to
the executive director of the Minnesota State Retirement System within one year
following the commencement of employment in the unclassified service that the
employee desires coverage under the general state employees retirement
plan. For the purposes of this chapter,
an employee who does not file notice with the executive director is deemed to
have exercised the option to participate in the unclassified plan.
(b) Persons referenced in paragraph
(c), clauses (1) and clause (5), are participants in the
unclassified program under this chapter unless the person is was eligible
to elect different coverage under section 3A.07 or 352C.011 and,
after July 1,1998, elects elected retirement coverage by the
applicable alternative retirement plan.
Persons referenced in paragraph (c), clause (15), are participants in
the unclassified program under this chapter for judicial employment in excess
of the service credit limit in section 490.121, subdivision 22.
(c) Enumerated employees and
referenced persons are:
(1) the governor, the lieutenant
governor, the secretary of state, the state auditor, and the attorney general;
(2) an employee in the Office of
the Governor, Lieutenant Governor, Secretary of State, State Auditor, Attorney
General;
(3) an employee of the State Board
of Investment;
(4)
the head of a department, division, or agency created by statute in the
unclassified service, an acting department head subsequently appointed to the position,
or an employee enumerated in section 15A.0815 or 15A.083, subdivision 4;
(5) a member of the legislature;
(6) a full-time unclassified
employee of the legislature or a commission or agency of the legislature who is
appointed without a limit on the duration of the employment or a temporary
legislative employee having shares in the supplemental retirement fund as a
result of former employment covered by this chapter, whether or not eligible
for coverage under the Minnesota State Retirement System;
(7) a person who is employed in a
position established under section 43A.08, subdivision 1, clause (3), or in a
position authorized under a statute creating or establishing a department or
agency of the state, which is at the deputy or assistant head of department or
agency or director level;
(8) the regional administrator, or
executive director of the Metropolitan Council, general counsel, division
directors, operations managers, and other positions as designated by the
council, all of which may not exceed 27 positions at the council and the chair;
(9) the executive director,
associate executive director, and not to exceed nine positions of the Higher
Education Services Office in the unclassified service, as designated by the
Higher Education Services Office before January 1, 1992, or subsequently
redesignated with the approval of the board of directors of the Minnesota State
Retirement System, unless the person has elected coverage by the individual
retirement account plan under chapter 354B;
(10) the clerk of the appellate
courts appointed under article VI, section 2, of the Constitution of the state
of Minnesota;
(11) the chief executive officers of
correctional facilities operated by the Department of Corrections and of
hospitals and nursing homes operated by the Department of Human Services;
(12) an employee whose principal
employment is at the state ceremonial house;
(13) an employee of the Minnesota
Educational Computing Corporation;
(14) an employee of the State
Lottery who is covered by the managerial plan established under section 43A.18,
subdivision 3; and
(15) a judge who has exceeded the
service credit limit in section 490.121, subdivision 22.
Sec. 33. REPEALER;
EFFECT ON BENEFIT COVERAGE.
Subdivision 1. Legislators
retirement plan; repealed as obsolete.
Minnesota Statutes 2004, sections 3A.01, subdivisions 3, 4, 6a, and
7; 3A.02, subdivision 2; 3A.04, subdivision 1a; and 3A.09, are repealed.
Subd. 2. Elective
state officers retirement plan; repealed as obsolete. Minnesota Statutes 2004, sections 352C.01;
352C.011; 352C.021, subdivisions 1, 2, 3, 4, 5, 6, and 7; 352C.031,
subdivisions 1, 2, 4, 5, and 6; 352C.033; 352C.04; 352C.051; 352C.09; and
352C.091, subdivisions 2 and 3, and Minnesota Statutes 2005 Supplement, section
352C.021, subdivision 1a, are repealed.
Sec. 34. EFFECTIVE
DATE.
Sections 1 to 33 are effective July
1, 2006.
ARTICLE
12
JUDGES RETIREMENT PLAN AND
BOARD ON JUDICIAL STANDARDS
RECODIFICATION
Section 1. Minnesota Statutes 2004, section 490.121,
subdivision 1, is amended to read:
Subdivision 1. Scope. For purposes of sections 490.121 to 490.132, unless
the context clearly indicates otherwise, each of the terms defined in this
section have has the meanings meaning given them
unless the context clearly indicates otherwise it.
Sec. 2. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 2a. Actuarial
equivalent. "Actuarial
equivalent" means the condition of one annuity or benefit having an equal
actuarial present value as another annuity or benefit, determined as of a given
date with each actuarial present value based on the appropriate mortality table
adopted by the board of directors of the Minnesota State Retirement System
based on the experience of the fund as recommended by the actuary retained
under section 356.214 and approved under section 356.215, subdivision 18, and
using the applicable preretirement or postretirement interest rate assumption
specified in section 356.215, subdivision 8.
Sec. 3. Minnesota Statutes 2005 Supplement, section
490.121, subdivision 4, is amended to read:
Subd. 4. Allowable
service. (a) "Allowable
service" means any calendar month, subject to the service credit limit in
subdivision 22, served as a judge at any time, or during which the
judge received compensation for that service from the state, municipality, or
county, whichever applies, and for which the judge made any required member
contribution. It also includes any month
served as a referee in probate for all referees in probate who were in office prior
to before January 1, 1974.
(b) "Allowable service"
also means a period of authorized leave of absence for which the judge has made
a payment in lieu of contributions, not in an amount in excess of the service
credit limit under subdivision 22. To
obtain the service credit, the judge shall pay an amount equal to the normal
cost of the judges retirement plan on the date of return from the leave of
absence, as determined in the most recent actuarial report for the plan filed with
the Legislative Commission on Pensions and Retirement, multiplied by the
judge's average monthly salary rate during the authorized leave of absence and
multiplied by the number of months of the authorized leave of absence, plus
annual compound interest at the rate of 8.5 percent from the date of the
termination of the leave to the date on which payment is made. The payment must be made within one year of
the date on which the authorized leave of absence terminated. Service credit for an authorized leave of
absence is in addition to a uniformed service leave under section 490.1211.
(c) "Allowable service"
does not mean service as a retired judge.
Sec. 4. Minnesota Statutes 2004, section 490.121,
subdivision 6, is amended to read:
Subd. 6. Annuity.
"Annuity" means the payments that
are made each year to an annuitant from the judges' retirement fund,
pursuant to the provisions of under sections 490.121 to 490.132.
Sec. 5. Minnesota Statutes 2004, section 490.121,
subdivision 7, is amended to read:
Subd. 7. Annuitant. "Annuitant" means a former judge,
a surviving spouse, or a dependent child who is entitled
to and is receiving an annuity under the provisions of sections
490.121 to 490.132.
Sec.
6. Minnesota Statutes 2004, section
490.121, is amended by adding a subdivision to read:
Subd. 7a. Approved
actuary. "Approved
actuary" means an actuary as defined in section 356.215, subdivision 1,
paragraph (c).
Sec. 7. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 7b. Court. "Court" means any court of this
state that is established by the Minnesota Constitution.
Sec. 8. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 7c. Dependent
surviving child. "Dependent
surviving child" means any natural or adopted child of a deceased judge
who has not reached the age of 18 years, or having reached the age of 18, is
under age 22 and who is a full-time student throughout the normal school year,
is unmarried, and is actually dependent for more than one-half of the child's
support upon the judge for a period of at least 90 days before the judge's
death. It also includes any natural
child of the judge who was born after the death of the judge.
Sec. 9. Minnesota Statutes 2004, section 490.121,
subdivision 13, is amended to read:
Subd. 13. Disability. "Disability" means the permanent
inability of a judge to continue to perform the functions of judge by
reason of a physical or mental impairment resulting from a sickness
or an injury.
Sec. 10. Minnesota Statutes 2004, section 490.121,
subdivision 14, is amended to read:
Subd. 14. Disability
retirement date. "Disability
retirement date" means the last day of the first month after the date
on which the governor determines, upon receipt of the voluntary
application by the judge or otherwise, that a judge suffers from a disability.
Sec. 11. Minnesota Statutes 2004, section 490.121,
subdivision 15, is amended to read:
Subd. 15. Disability
retirement annuity. "Disability
retirement annuity" means an annuity to which a judge is entitled under
section 490.124, subdivisions 1 and 4, after the retirement for
reason of the judge because of a disability.
Sec. 12. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 15a. Early
retirement date. "Early
retirement date" means the last day of the month after a judge attains the
age of 60 but before the judge reaches the normal retirement date.
Sec. 13. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 15b. Early
retirement annuity. "Early
retirement annuity" means an annuity to which a judge is entitled under
section 490.124, subdivisions 1 and 3, upon retirement by the judge at an early
retirement date.
Sec. 14. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 21b. Judge. "Judge" means a judge or a
justice of any court as defined under subdivision 7b.
Sec.
15. Minnesota Statutes 2004, section 490.121,
is amended by adding a subdivision to read:
Subd. 21c. Judges'
retirement fund; retirement fund; fund.
"Judges' retirement fund," "retirement fund," or
"fund" means the fund created by section 490.123.
Sec. 16. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 21d. Mandatory
retirement date. "Mandatory
retirement date" means the last day of the month in which a judge has
attained 70 years of age.
Sec. 17. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 21e. Normal
retirement annuity. Except as
otherwise provided in sections 490.121 to 490.132, "normal retirement
annuity" means an annuity to which a judge is entitled under section
490.124, subdivision 1, upon retirement on or after the normal retirement date
of the judge.
Sec. 18. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 21f. Normal
retirement date. "Normal
retirement date" means the last day of the month in which a judge attains
the age of 65.
Sec. 19. Minnesota Statutes 2004, section 490.121,
subdivision 22, is amended to read:
Subd. 22. Service
credit limit. "Service credit
limit" means the greater of: (1) 24
years of allowable service under this chapter 490; or (2) for
judges with allowable service rendered prior to before July 1,
1980, the number of years of allowable service under chapter 490, which, when
multiplied by the percentage listed in section 356.315, subdivision 7 or 8,
whichever is applicable to each year of service, equals 76.8.
Sec. 20. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 23. Surviving
spouse. "Surviving
spouse" means the surviving legally married spouse of a deceased judge.
Sec. 21. Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:
Subd. 24. Survivor's
annuity. "Survivor's
annuity" means an annuity to which a surviving spouse or dependent child
is entitled under section 490.124, subdivision 9.
Sec. 22. Minnesota Statutes 2004, section 490.122, is
amended to read:
490.122
ADMINISTRATION OF JUDGES' RETIREMENT.
Subdivision 1. Administration. The policy-making, management, and
administrative functions governing the operation of the judges' retirement fund
and the administration of sections 490.121 to 490.132 this chapter are
vested in the board of directors and executive director of the Minnesota State
Retirement System with such.
In administering the plan and fund, the board and the director have the
same duties, authority, and responsibility as are provided in chapter 352.
Subd.
2.
Subd. 3. Fiduciary
responsibility. Fiduciary
activities of relating to the uniform judges' retirement and
Survivors' Annuities for Judges plan must be undertaken in a manner
consistent with chapter 356A.
Sec. 23. Minnesota Statutes 2004, section 490.123,
subdivision 1, is amended to read:
Subdivision 1. Fund
creation; revenue and authorized disbursements. (a) There is created a special fund to be
known as the "judges' retirement fund."
(b) The judges' retirement fund must be
credited with all contributions,; all interest, dividends, and
other investment proceeds; and all other income authorized by this
chapter or other applicable law.
(c) From this
fund there are appropriated the payments authorized by sections 490.121 to
490.132, in the amounts and at the times provided, including the necessary and
reasonable expenses of the Minnesota State Retirement System in administering
the fund and the transfers to the Minnesota postretirement investment fund.
Sec. 24. Minnesota Statutes 2004, section 490.123,
subdivision 1a, is amended to read:
Subd. 1a. Member
contribution rates. (a) A judge who
is covered by the federal Old Age, Survivors, Disability, and Health Insurance
Program and whose service does not exceed the service credit limit in
section 490.121, subdivision 22, shall contribute to the fund from each salary
payment a sum equal to 8.00 percent of salary.
(b) A judge not so covered whose
service does not exceed the service credit limit in section 490.121,
subdivision 22, shall contribute to the fund from each salary payment a sum
equal to 8.15 percent of salary.
(c) The
contribution under this subdivision is payable by salary deduction. The deduction must be made by the state
court administrator under section 352.04, subdivisions 4, 5, and 8.
Sec. 25. Minnesota Statutes 2004, section 490.123,
subdivision 1b, is amended to read:
Subd. 1b. Employer
contribution rate. (a) The
employer contribution rate to the fund on behalf of a judge is 20.5 percent of
salary and. The employer
obligation continues after a judge exceeds the service credit limit in
section 490.121, subdivision 22.
(b) The
employer contribution must be paid by the state court administrator and. The employer contribution is payable at
the same time as member contributions are made under subdivision 1a or as
employee contributions are made to the unclassified plan in program
governed by chapter 352D for judges whose service exceeds the limit in
section 490.121, subdivision 22, are remitted.
Sec. 26. Minnesota Statutes 2004, section 490.123,
subdivision 1c, is amended to read:
Subd. 1c. Additional
employer contribution. In the
event that If the employer contribution under subdivision 1b and the
assets of the judges retirement fund are insufficient to meet reserve transfers
to the Minnesota postretirement investment fund or payments of survivor
benefits before July 1, 1993 in a month, the necessary amount is
appropriated from the general fund to the executive director of the Minnesota
State Retirement System, upon the certification of the required
amount by the executive director to the commissioner of finance.
Sec.
27. Minnesota Statutes 2004, section
490.123, subdivision 2, is amended to read:
Subd. 2. Commissioner
of finance. The commissioner of
finance shall be is the ex officio treasurer of the judges'
retirement fund and the. The
commissioner's general bond to the state shall must be so conditioned
as to cover all liability for acting as the treasurer of this the
fund. All moneys money received
by the commissioner pursuant to under this section shall must
be set aside in the state treasury to the credit of the judges' retirement
fund. The commissioner shall transmit
monthly to the executive director described in section 352.03, subdivision 5, a
detailed statement of all amounts so received and credited to the fund. The commissioner shall pay out the fund only
upon vouchers signed by said executive director; provided that vouchers for
investment may be signed by the secretary of the State Board of Investment.
Sec. 28. Minnesota Statutes 2004, section 490.123,
subdivision 3, is amended to read:
Subd. 3. Investment. (a) The executive director referred
to in subdivision 2 of the Minnesota State Retirement System shall,
from time to time, certify to the State Board of Investment such portions of
the judges' retirement fund as in the director's judgment may not be required
for immediate use.
(b) Assets from
the judges' retirement fund shall must be transferred to the
Minnesota postretirement investment fund for retirement and disability benefits
as provided in sections 11A.18 and 352.119.
(c) The State
Board of Investment shall thereupon invest and reinvest sums so transferred, or
certified, in such securities as are duly authorized legal investments for such
purposes under section 11A.24 in compliance with sections 356A.04 and
356A.06.
Sec. 29. Minnesota Statutes 2004, section 490.124,
subdivision 1, is amended to read:
Subdivision 1. Basic
retirement annuity. (a) Except
as qualified hereinafter from and after the mandatory retirement date, the
normal retirement date, the early retirement date, or one year from
the disability retirement date, as the case may be, a retiring judge is
eligible to receive a retirement annuity shall be payable to a retiring
judge from the judges' retirement fund in.
(b) The retirement annuity is an amount
equal to: (1) the percent specified in
section 356.315, subdivision 7, multiplied by the judge's final average
compensation with that result then multiplied by the number of years and
fractions of years of allowable service rendered prior to before July
1, 1980; plus (2) the percent specified in section 356.315, subdivision 8,
multiplied by the judge's final average compensation with that result then multiplied
by the number of years and fractions of years of allowable service rendered
after June 30, 1980.
(c) Service
that exceeds the service credit limit in section 490.121, subdivision 22, must
be excluded in calculating the retirement annuity, but the compensation
earned by the judge during this period of judicial service must
be used in determining a judge's final average compensation and calculating the
retirement annuity.
Sec. 30. Minnesota Statutes 2004, section 490.124,
subdivision 2, is amended to read:
Subd. 2. Minimum
service requirement; extension of term. No (a) Unless section 356.30
applies, a judge shall be is not eligible for an annuity at the
normal retirement date or the early retirement date if the
judge has less than five years of allowable service.
(b) A judge who
shall retire retires on or, as permitted under sections 490.121
to 490.132, after the judge's mandatory retirement date, shall be is
entitled to a proportionate annuity based upon the allowable service of the
judge at the date of retirement.
A
judge who was in office on December 31, 1973, and thereafter and who, by the
date on which the current term expires, would not be eligible to retire with
full benefits under statutes in effect on December 31, 1973, may apply to the
governor for an extension to serve up to three additional years, stating the
intention of the judge to retire upon attaining eligibility to receive a
retirement allowance. Notwithstanding
section 490.125, the governor shall forthwith make a written order accepting
the retirement application, and extending the term of office of the judge for
the period of time, not to exceed three years, as may be necessary to make the
judge eligible for retirement, solely for purposes of computing benefits
hereunder.
Sec. 31. Minnesota Statutes 2004, section 490.124,
subdivision 3, is amended to read:
Subd. 3. Early reduced
retirement. The retirement
annuity provided by under subdivision 1 of any judge electing who
elects to retire at an early retirement date shall must be
reduced by one-half of one percent per month from the retirement date to the
normal retirement date.
Sec. 32. Minnesota Statutes 2004, section 490.124,
subdivision 4, is amended to read:
Subd. 4. Disability
retirement. (a) When the governor
determines that a judge is disabled under section 490.121, subdivision 13,
notice of the governor's determination must be sent to the judge, to the chief
justice of the Supreme Court, to the state court administrator, and to the
executive director of the Minnesota State Retirement System.
(b) From and
after disability retirement date, a disabled judge shall be is entitled
to continuation of the judge's full salary payable by the judge's employer, as
if the judge's office were not vacated by retirement, for a period of up to one
full year, but in no event beyond the judge's mandatory retirement date. During this year the judge will is
entitled to earn additional service credit in the judges' retirement
plan. The salary earned will be payable
to a disabled judge is subject to retirement deductions and will must
be included in computing final average compensation of the judge. Thereafter
(c) At the conclusion of the year
of continued salary following a disability or upon the judge's mandatory
retirement date, whichever is earlier, the disabled judge is entitled to a
disability retirement annuity computed as provided in subdivision 1 shall be
paid, provided that. If the
computed retirement annuity is a smaller amount, the judge shall is
entitled to receive a minimum annuity of 25 percent of the judge's final
average compensation.
Sec. 33. Minnesota Statutes 2004, section 490.124,
subdivision 5, is amended to read:
Subd. 5. Deferred
benefits. (a) Any A benefit
to which a judge is entitled under this section may be deferred until the early
or normal retirement date or later, notwithstanding the termination
of such the judge's service prior thereto.
(b) The retirement annuity of, or
the survivor benefit payable on behalf of, a former judge, who terminated
service before July 1, 1997, which is not first payable until after June 30,
1997, must be increased on an actuarial equivalent basis to reflect the change
in the postretirement interest rate actuarial assumption under section 356.215,
subdivision 8, from five percent to six percent under a calculation procedure
and tables adopted by the board of directors of the Minnesota State Retirement
System and approved by the actuary retained by the Legislative Commission on
Pensions and Retirement under section 356.214.
Sec.
34. Minnesota Statutes 2004, section
490.124, subdivision 8, is amended to read:
Subd. 8. Exclusive
normal retirement benefits. Any (a)
Except as provided in paragraph (b), a judge who retires after December 31,
1973, shall be is entitled to a retirement pension, retirement
compensation or other retirement payment under statutes applicable solely to
judges pursuant to under this section only, except that any
such .
(b) A judge who
was in office prior to before January 1, 1974, who retires at
or after normal retirement age may then elect to receive during the judge's
lifetime a normal retirement annuity computed on the basis of retirement
compensation provided for such judge under statutes in effect on December 31,
1973, in lieu of the amount of normal retirement annuity otherwise computed
under sections 490.121 to 490.132.
For purposes of this subdivision,
the Conciliation Court of the city of Duluth shall be deemed to have been a
court of record by the statutes in effect on December 31, 1973.
Sec. 35. Minnesota Statutes 2004, section 490.124,
subdivision 9, is amended to read:
Subd. 9. Survivors'
annuity. (a) Upon the death
of a judge prior to before retirement, or upon the death of a
person who has qualified for an annuity under this section but who
ceases to be a judge prior to before retirement and who has
not received a refund of contributions pursuant to under subdivision
12, a surviving spouse is entitled to, or, if there be no surviving
spouse, dependent children, shall are entitled to receive an
annuity, payable monthly, equal in total to 60 percent of the normal
retirement annuity which would have been payable to the judge or former judge
had the date of death been the normal retirement date, provided that the.
(b)
The annuity payable to a surviving spouse or to dependent
children shall receive an annuity is an amount of not less than
25 percent of the judge's or the former judge's final average
compensation.
If a judge, whose surviving spouse
was not entitled to survivors benefits provided solely for judges under statutes
in effect prior to January 1, 1974, shall have died prior to retirement on or
after May 23, 1973 and before January 1, 1974, a surviving spouse and dependent
children, if any, shall be entitled to survivors benefits as provided hereunder
as if such judge had died on January 1, 1974.
Sec. 36. Minnesota Statutes 2004, section 490.124,
subdivision 10, is amended to read:
Subd. 10. Prior
survivors' benefits; limitation. (a)
Benefits provided pursuant to under Minnesota Statutes 2004,
section 490.102, subdivision 6, or 490.1091, for a surviving spouse of a
retired judge, payable after the death of the judge, shall be are limited
to:
(a) spouses of
judges who have retired prior to before January 1, 1974; and .
(b) spouses of judges in office
on December 31, 1973 and thereafter who elect to continue contributions
pursuant to section 490.102, subdivision 6 or 490.109. The contributions shall be in addition to
contributions pursuant to section 490.123, and upon retirement the judge may
not elect to receive any optional annuity pursuant to subdivision 11 unless the
judge and the spouse shall waive any benefits pursuant to section 490.102,
subdivision 6 or 490.1091.
No other judge in office on or
after January 1, 1974, shall be is required to contribute pursuant
to under Minnesota Statutes 2004, section 490.102, subdivision 6,
or 490.109.
Sec.
37. Minnesota Statutes 2004, section
490.124, subdivision 11, is amended to read:
Subd. 11. Limitation
on survivor benefits; optional annuities. (a) No survivor or death benefits may
be paid in connection with the death of a judge who retires after December 31,
1973, except as otherwise provided in sections 490.121 to 490.132.
(b) Except as
provided in subdivision 10, a judge may elect to receive, instead of the normal
retirement annuity, an optional retirement annuity in the form of either (1)
an annuity payable for a period certain and for life after that period, (2)
a joint and survivor annuity without reinstatement in the event of if
the designated beneficiary predeceasing predeceases the
retired judge, or (3) a joint and survivor annuity with reinstatement in
the event of if the designated beneficiary predeceasing predeceases
the retired judge.
(c) An optional
retirement annuity must be actuarially equivalent to a single-life annuity with
no term certain and must be established by the board of directors of the
Minnesota State Retirement System. In
establishing these optional retirement annuity forms, the board shall obtain
the written recommendation of the actuary retained by the Legislative
Commission on Pensions and Retirement under section 356.214. The recommendations must be retained as a
part of the permanent records of the board.
Sec. 38. Minnesota Statutes 2004, section 490.124,
subdivision 12, is amended to read:
Subd. 12. Refund. (a) A person who ceases to be a judge but
who does not qualify for a retirement annuity or other benefit under section
490.121 is entitled to a refund in an amount that is equal to all of
the member's employee contributions to the judges' retirement fund plus
interest computed 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 under this chapter.
(c) A person
who becomes a judge again after taking a refund under paragraph (a) may
reinstate the previously terminated allowable service credits credit,
rights, and benefits by repaying the total amount of the previously received
refund. 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. 39. Minnesota Statutes 2004, section 490.124,
subdivision 13, is amended to read:
Subd. 13. Death
refund. If a judge who has not
received other benefits under this chapter dies and there are no survivor
benefits payable under this chapter, a refund plus interest as provided in
subdivision 12 is payable to the last designated beneficiary named on a form
filed with the director before the death of the judge, or, if no
designation is on file, the refund is payable to the estate of the
deceased judge.
Sec. 40. Minnesota Statutes 2004, section 490.125,
subdivision 1, is amended to read:
Subdivision 1. Mandatory
retirement age. Except as
otherwise provided in sections 490.121 to 490.132, each a judge
shall retire terminate active service as a judge on the judge's
mandatory retirement date.
Sec. 41. Minnesota Statutes 2004, section 490.125,
subdivision 2, is amended to read:
Subd. 2. Exception. Except as provided by sections 490.025,
subdivision 3, 490.102, subdivisions 3 and 3a and 490.12, subdivision 2,
Any judge in office on December 31, 1973 who shall have attained 70 years of
age on or prior to such date shall retire upon the expiration of the term of
office of such judge.
Sec.
42. Minnesota Statutes 2004, section
490.126, as amended by Laws 2005, First Special Session chapter 8, article 10,
section 79, is amended to read:
490.126
PROCEDURES.
Subdivision 1. Compulsory
retirement. Proceedings for
compulsory retirement of a judge, if necessary, shall must be
conducted in accordance with rules issued by the Supreme Court pursuant to
under section 490.16 490A.02.
Subd. 2. Vacancies. Any judge may make written application to the
governor for retirement. The governor
thereupon shall direct the judge's retirement by written order which, when
filed in the Office of the Secretary of State, shall effect effects
a vacancy in the office to be filled as provided by law.
Subd. 3. Application
for annuity or refund. An application
for an annuity or a refund under sections 490.121 to 490.132 may be made
by the potential annuitant or by someone authorized to act for the potential
annuitant. Every application for an
annuity or refund, with accompanied by a proof of age and by a
record of years of service when required, shall must be
submitted to the governing body executive director of the
Minnesota State Retirement System in a form prescribed by it the
director.
Subd. 4. Manner
of payment. Unless otherwise
specifically provided by statute or agreed upon by the annuitant and the governing
body board of directors of the Minnesota state retirement
system, annuities payable under sections 490.121 to 490.132 shall
must be paid in the manner and at the intervals as prescribed by the
executive director of the Minnesota state retirement system. The annuity shall cease ceases
with the last payment received by the annuitant while living.
Subd. 5. Exemption
from process; no assignment. The
provisions of section 356.401 apply to the judges retirement plan.
Sec. 43. Minnesota Statutes 2004, section 490.133, is
amended to read:
490.133
RETIREMENT; TRANSITION PROVISIONS; TRANSFER TO COURT OF APPEALS.
(a) If a judge
to whom or to whose survivors benefits would be payable under Minnesota
Statutes 2004, sections 490.101 to 490.12, is elected or appointed to the
Court of Appeals, that judge and the judge's survivors, shall continue
to be eligible for benefits under those sections and not under sections 490.121
to 490.132.
(b) In that the
case of a judge to whom paragraph (a) applies, the service of the
judge in the Court of Appeals shall must be added to the prior
service as district judge, probate judge, or judge of any other court of
record in determining eligibility and the compensation of a judge of the Court
of Appeals at the time of the judge's death, disability, or retirement shall
be is the "compensation allotted to the office" for the
purposes of calculating benefit amounts.
(c) All other
judges of the Court of Appeals and their survivors shall be are subject
to the retirement and survivor's annuity provisions of sections 490.121 to
490.132.
Sec. 44. [490A.01]
BOARD OF JUDICIAL STANDARDS; ESTABLISHMENT.
Subdivision 1. Establishment;
composition. The Board on
Judicial Standards is established. The
board is a continuation of the board established by Laws 1971, chapter 909,
sections 1 and 2, as amended.
Subd.
2.
(b) All members must be appointed
by the governor with the advice and consent of the senate. Senate confirmation is not required for
judicial members.
Subd. 3. Term
maximum; membership termination.
No member may serve more than two full four-year terms or their
equivalent. Membership terminates if a
member ceases to hold the position that qualified the member for appointment.
Subd. 4. Member
terms; compensation; removal. The
membership terms, compensation, removal of members, and filling of vacancies on
the board are as provided in section 15.0575.
Subd. 5. Executive
secretary appointment; salary. (a)
The board shall appoint the executive secretary.
(b) The salary of the executive
secretary of the board is 85 percent of the maximum salary provided for an
administrative law judge under section 15A.083, subdivision 6a.
Sec. 45. [490A.02]
JUDICIAL STANDARDS BOARD; POWERS.
Subdivision 1. Judicial disqualification. A judge is disqualified fro