STATE OF MINNESOTA
EIGHTY-FOURTH SESSION - 2005
_____________________
FORTY-FIRST DAY
Saint Paul, Minnesota, Monday, April 18, 2005
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 Pastor John Lestock, Trinity Lutheran
Church, Owatonna, Minnesota.
The members of the House gave the pledge of allegiance to the
flag of the United States of America.
The roll was called and the following members were present:
Abeler
Anderson, B.
Anderson, I.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
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
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Opatz
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
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
A quorum was present.
Abrams, Davnie and Walker were excused.
The Chief Clerk proceeded to read the Journal of the preceding
day. Loeffler moved that further
reading of the Journal be suspended and that the Journal be approved as corrected
by the Chief Clerk. The motion
prevailed.
PETITIONS
AND COMMUNICATIONS
The following communications were received:
STATE
OF MINNESOTA
OFFICE
OF THE GOVERNOR
SAINT
PAUL 55155
April
11, 2005
The Honorable Steve Sviggum
Speaker of the House of
Representatives
The State of Minnesota
Dear Speaker Sviggum:
Please be advised that I have received, approved, signed, and
deposited in the Office of the Secretary of State the following House File:
H. F. No. 3, relating to capital improvements; authorizing
spending to acquire and better public land and buildings and other public
improvements of a capital nature with certain conditions; making adjustments to
previous bond authorizations; establishing new programs and modifying existing
programs; authorizing sale of state bonds; appropriating money.
Sincerely,
Tim
Pawlenty
Governor
STATE
OF MINNESOTA
OFFICE
OF THE SECRETARY OF STATE
ST.
PAUL 55155
The Honorable Steve Sviggum
Speaker of the House of
Representatives
The Honorable James P. Metzen
President of the Senate
I have the honor to inform you that the following enrolled Act
of the 2005 Session of the State Legislature has been received from the Office
of the Governor and is deposited in the Office of the Secretary of State for
preservation, pursuant to the State Constitution, Article IV, Section 23:
S. F. No. |
H. F. No. |
Session Laws Chapter No. |
Time and Date Approved 2005 |
Date Filed 2005 |
3 20 2:42
p.m. April 11 April
11
Sincerely,
Mary
Kiffmeyer
Secretary
of State
REPORTS
OF STANDING COMMITTEES
Tingelstad from the Committee on Governmental Operations and
Veterans Affairs to which was referred:
H. F. No. 432, A bill for an act relating to state government;
providing that chaplains employed by the state are in the classified civil
service; amending Minnesota Statutes 2004, section 43A.08, subdivision 1.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Gunther from the Committee on Jobs and Economic Opportunity
Policy and Finance to which was referred:
H. F. No. 632, A bill for an act relating to taxation; income;
providing for economic growth in rural counties of the state by allowing a
credit against the income tax of an employer for the creation and retention of
certain jobs; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 290.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
[290.0681] [RURAL ECONOMIC GROWTH CREDIT.]
Subdivision 1.
[CREDIT NAME.] The credit allowed by this section shall be known as
the "Rural Minnesota Catch-Up Credit."
Subd. 2.
[DEFINITIONS.] (a) For purposes of this section, the following terms
have the meanings given.
(b) "Eligible county" means a county, located
outside the metropolitan area, as defined in section 473.121, subdivision 2,
that experienced, between 1993 and 2003, a net new job growth rate of less than
15.6 percent, or a county that has a population of less than 25,000 according
to the 2000 census.
(c) "Qualifying job" means a job in an industry
that produces goods or services that bring outside wealth into an eligible
county. A qualifying job includes jobs
in the following industries:
value-added manufacturing, technologically innovative and information
industries, forestry, mining, agriprocessing, and tourism attractions. At a minimum, a qualifying job must provide
full-time employment and pay not less than $12 per hour, or $10 per hour plus
health insurance benefits, or its equivalent.
A qualifying job does not include any job for which a tax credit is
received under section 469.318 or for which a grant is made under section
469.309.
Subd. 3. [CREDIT
ALLOWED.] A taxpayer that is awarded a credit under subdivision 4 may take a
credit against the tax imposed by this chapter, equal to $4,000 per qualifying
job created by the taxpayer, per year for three years and $3,000 in the fourth
year.
Subd. 4.
[QUALIFICATION; APPLICATION.] (a) To qualify for a credit under this
section a taxpayer must create a new qualifying job within an eligible
county. The taxpayer must create the
qualifying job within 12 months of being awarded the credit. If a taxpayer does not create the qualifying
job within 12 months, the credit is forfeited and, if claimed by the taxpayer,
subject to recapture, and the credit amount accrues back to the eligible county
for allocation under subdivision 5.
(b) A taxpayer seeking a credit
under this section must make an application to an eligible county at least 60
days before the award date in paragraph (c).
Applications for a credit shall be made on a form and in a manner
prescribed by the commissioner.
(c) Eligible counties shall award credits under this section
twice each year, by March 15 and September 15.
An eligible county shall publish a notice advertising the award date at
least 90 days before the date.
Selection of applicants for awarding tax credits under this section
shall be made by the county board of commissioners of an eligible county, or
the duly appointed representatives of the county board of commissioners, using
uniform criteria established by the commissioner. In selecting among applicants for awarding credits under this section,
criteria must contemplate and place greater weight on the following
factors: whether the qualifying job
provides higher wages, better benefits, or on-the-job training; whether the
taxpayer's business is locally owned and owns, rather than leases, its own
facilities or buildings; whether the taxpayer's business provides employee
stock ownership plans or employee profit sharing; and whether a higher
percentage of the business's employees are hired with tax credits under this
section. For purposes of this section,
"duly appointed representatives" include a county or regional
economic development agency or authority.
Subd. 5.
[LIMITATION; CARRYFORWARD.] (a) The total amount of credits under
this section may not exceed $150,000 per eligible county over two years. If a county fails to award $150,000 within a
year, it may carry forward the amount that remains unawarded to the following
year. Unawarded amounts may not be
carried beyond the following year and are lost.
(b) A taxpayer may claim the credit under this section for
the year following the year in which the new qualifying job is created and for
each year the new qualifying job remains in existence, up to a maximum of four
years or $15,000 per qualifying job created.
The taxpayer may claim the credit under this section for years in which
the qualifying job was in existence for the entire year. A credit under this section is awarded to
the taxpayer for, and attaches to, a designated employee. If the designated employee for whom a credit
under this section was awarded leaves the employment of the taxpayer for any
reason, the remaining credit the taxpayer would otherwise be eligible to
receive is forfeited and may not be claimed by the taxpayer unless a
replacement employee is hired to fill the qualifying job within a reasonable
period, not to exceed three months.
Credit amounts forfeited under this paragraph accrue back to and may be
awarded by an eligible county as if the amount had been unawarded, as provided
in paragraph (a).
Subd. 6. [CREDIT
REFUNDABLE.] If the amount of credit that the taxpayer is eligible to
receive under this section exceeds the liability for tax under this chapter,
the commissioner shall refund the excess to the claimant. An amount sufficient to pay the refunds authorized
by this subdivision is appropriated to the commissioner from the general fund.
Subd. 7. [MANNER
OF CLAIMING.] The commissioner shall prescribe the manner in which the
credit may be issued and claimed. This
may include providing for the issuance of credit certificates or allowing the credit
only as a separately processed claim for a refund.
Subd. 8.
[REPORT.] The commissioner shall report to the legislature by
February 15, 2008, on credits claimed under this section and shall evaluate the
feasibility and benefit of continuing the program. The commissioner may consult with the commissioner of employment
and economic development in preparing this report.
Subd. 9.
[EXPIRATION.] This section expires for taxable years beginning after
December 31, 2010.
[EFFECTIVE DATE.] This
section is effective January 1, 2006."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Taxes.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No. 632
was re-referred to the Committee on Rules and Legislative Administration.
Seifert from the Committee on State Government Finance to
which was referred:
H. F. No. 751, A bill for an act relating to real property;
establishing the Electronic Real Estate Recording Task Force; appropriating money;
amending Minnesota Statutes 2004, sections 507.093; 507.24, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 507.
Reported the same back with the following amendments:
Page 3, line 18, delete "15" and insert "18"
Page 3, line 25, delete "three" and insert
"four"
Page 3, line 26, delete "one" and insert
"two" and delete "recorder" and insert "recorders"
Page 3, line 28, delete "appointed" and insert
"recommended"
Page 3, line 29, after "Counties" insert
"and appointed by the chair"
Page 3, line 32, after "sector" insert "recommended
by their industries and"
Page 3, line 36, delete "title companies,"
Page 4, line 3, delete the third "and"
Page 4, line 5, before the period, insert "; and
(5) two representatives of title companies"
Page 4, after line 24, insert:
"The task force shall review the Uniform Electronic
Recording Act as drafted by the National Conference of Commissioners on Uniform
State Laws and recommend alternative structures for the permanent Commission on
Electronic Real Estate Recording Standards."
Page 6, line 15, delete everything after
"APPROPRIATION"
Page 6, line 16, delete "FUNDS"
Page 6, delete lines 17 to 26
Page 6, line 27, delete everything before "$25,000"
Page 6, line 28, delete "payment" and insert
"appropriated"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Ways and Means.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No. 751
was re-referred to the Committee on Rules and Legislative Administration.
Wilkin from the Committee on Commerce and Financial
Institutions to which was referred:
H. F. No. 759, A bill for an act relating to labor; requiring
the certification and regulation of crane operators; authorizing civil
penalties; proposing coding for new law as Minnesota Statutes, chapter 184C.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
[182.6525] [CRANE OPERATION.]
Subdivision 1.
[CERTIFICATION REQUIRED.] An individual may not operate a crane with
a lifting capacity of five tons or more on a construction site unless the
individual has a valid crane operator certificate received from a nationally
recognized and accredited certification program. No employer, and no person who is under a contract to construct
an improvement to land, may permit any employee, agent, or independent
contractor to perform work in violation of this section. A crane operator certification required
under this subdivision must be renewed by an accredited certification program
every five years.
Subd. 2.
[EXCEPTIONS.] The requirements of subdivision 1 do not apply to:
(1) a crane operator trainee or apprentice, if the
individual is under the direct supervision of a crane operator who holds a
valid crane operator certificate as required in subdivision 1;
(2) a person directly employed by a class 1 or 2 railroad
who is qualified by the employing railroad as a crane operator or boom truck
operator while performing work on property owned, leased, or controlled by the
employing railroad;
(3) a person who is employed by or performing work for a
public utility, rural electric cooperative, municipality, telephone company, or
industrial manufacturing plant;
(4) a person who is subject to inspection and regulation
under the Mine Safety and Health Act, United States Code, title 30, sections
801 through 962;
(5) a person engaged in boating, fishing, agriculture, or
arboriculture;
(6) a person who is a member of and performing work for a
uniformed service or who is a member of and performing work for the United
States Merchant Marines;
(7) a person who is operating a crane for personal use on
premises owned or leased by that person; and
(8) a person who is operating a crane in an emergency
situation.
Subd. 3.
[PENALTIES.] An employer or general contractor may be cited by the
commissioner for a violation of the certification requirements in this
section. A citation is punishable as a
serious violation under section 182.666.
Sec. 2. Minnesota
Statutes 2004, section 182.659, is amended by adding a subdivision to read:
Subd. 1a. [PROOF
OF CRANE OPERATOR CERTIFICATION.] An individual who is operating a crane on
a worksite shall provide proof of certification required under section 182.6525
upon request by an investigator.
Sec. 3. [EFFECTIVE
DATE.]
Sections 1 and 2 are effective July 1, 2007."
Amend the title as follows:
Page 1, line 4, after the semicolon, insert "amending
Minnesota Statutes 2004, section 182.659, by adding a subdivision;" and
delete "as" and insert "in"
Page 1, line 5, delete "184C" and insert
"182"
With the recommendation that when so amended the bill pass.
The report was adopted.
Seifert from the Committee on State Government Finance to which
was referred:
H. F. No. 865, A bill for an act relating to elections;
changing certain procedures in cases of annexations affecting precinct
boundaries; amending Minnesota Statutes 2004, section 204B.14, subdivision 5.
Reported the same back with the recommendation that the bill
pass and be re-referred to the Committee on Rules and Legislative
Administration.
The report was adopted.
Tingelstad from the Committee on Governmental Operations and
Veterans Affairs to which was referred:
H. F. No. 899, A bill for an act relating to local government;
authorizing the state auditor to waive certain rules and laws applying to local
government units; creating a grants board to fund cooperative efforts in public
service delivery; proposing coding for new law in Minnesota Statutes, chapter
6.
Reported the same back with the recommendation that the bill
pass and be re-referred to the Committee on State Government Finance.
The report was adopted.
Erhardt from the Committee on Transportation to which was
referred:
H. F. No. 912, A bill for an act relating to traffic
regulations; defining motorized foot scooters and regulating their use and
operation; amending Minnesota Statutes 2004, section 169.01, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 169.
Reported the same back with the following amendments:
Page 1, after line 7, insert:
"Section 1.
Minnesota Statutes 2004, section 160.80, subdivision 1a, is amended to
read:
Subd. 1a.
[ELIGIBILITY CRITERIA FOR BUSINESS PANELS.] (a) To be eligible for a
business panel on a logo sign panel, a business establishment must:
(1) be open for business;
(2) have a sign on site that both identifies the business and
is visible to motorists;
(3) be open to everyone, regardless of race, religion, color,
age, sex, national origin, creed, marital status, sexual orientation, or
disability;
(4) not impose a cover charge or otherwise require customers to
purchase additional products or services; and
(5) meet the appropriate criteria in paragraphs (b) to (e).
(b) Gas businesses must provide vehicle services including fuel
and oil; restroom facilities and drinking water; continuous, staffed operation
at least 12 hours a day, seven days a week; and public access to a telephone.
(c) Food businesses must serve at least two meals a day during
normal mealtimes of breakfast, lunch, and dinner; provide a continuous, staffed
food service operation at least ten hours a day, seven days a week except
holidays as defined in section 645.44, subdivision 5, and except as provided
for seasonal food service businesses; provide seating capacity for at least 20
people; serve meals prepared on the premises; and possess any required
state or local licensing or approval. Reheated,
prepackaged, ready-to-eat food is not "food prepared on the
premises." Seasonal food
service businesses must provide a continuous, staffed food service operation at
least ten hours a day, seven days a week, during their months of operation.
(d) Lodging businesses must include sleeping accommodations,
provide public access to a telephone, and possess any required state or local
licensing or approval.
(e) Camping businesses must include sites for camping, include
parking accommodations for each campsite, provide sanitary facilities and
drinking water, and possess any required state or local licensing or approval.
(f) Businesses that do not meet the appropriate criteria in
paragraphs (b) to (e) but that have a signed lease as of January 1, 1998, may
retain the business panel until December 31, 2005, or until they withdraw from
the program, whichever occurs first, provided they continue to meet the
criteria in effect in the department's contract with the logo sign vendor on
August 1, 1995. After December 31,
2005, or after withdrawing from the program, a business must meet the
appropriate criteria in paragraphs (a) to (e) to qualify for a business panel.
(g) Seasonal businesses must indicate to motorists when they
are open for business by either putting the full months of operation directly
on the business panel or by having a "closed" plaque applied to the
business panel when the business is closed for the season.
(h) The maximum distance that an eligible business in Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county can be located
from the interchange is: for gas
businesses, one mile; for food businesses, two miles; for lodging businesses,
three miles; and for camping businesses, ten miles.
(i) The maximum distance that an eligible business in any other
county can be located from the interchange shall not exceed 15 miles in either
direction.
(j) Logo sign panels must be erected so that motorists
approaching an interchange view the panels in the following order: camping, lodging, food, gas.
(k) If there is insufficient space on a logo sign panel to
display all eligible businesses for a specific type of service, the businesses
closest to the interchange have priority over businesses farther away from the
interchange.
[EFFECTIVE DATE.] This
section is effective the day following final enactment.
Sec. 2. Minnesota
Statutes 2004, section 168.012, subdivision 1, is amended to read:
Subdivision 1.
[VEHICLES EXEMPT FROM TAX, FEES, OR PLATE DISPLAY.] (a) The following
vehicles are exempt from the provisions of this chapter requiring payment of
tax and registration fees, except as provided in subdivision 1c:
(1) vehicles owned and used solely in the transaction of
official business by the federal government, the state, or any political
subdivision;
(2) vehicles owned and used exclusively by educational
institutions and used solely in the transportation of pupils to and from those
institutions;
(3) vehicles used solely in driver education programs at
nonpublic high schools;
(4) vehicles owned by nonprofit charities and used exclusively
to transport disabled persons for educational purposes;
(5) ambulances owned by ambulance services licensed under
section 144E.10, the general appearance of which is unmistakable; and
(6) motorized foot scooters as defined in section 169.01,
subdivision 4c; and
(7) vehicles owned by a commercial driving school
licensed under section 171.34, or an employee of a commercial driving school
licensed under section 171.34, and the vehicle is used exclusively for driver
education and training.
(b) Vehicles owned by the federal government, municipal fire
apparatuses including fire-suppression support vehicles, police patrols, and
ambulances, the general appearance of which is unmistakable, are not required
to register or display number plates.
(c) Unmarked vehicles used in general police work, liquor
investigations, or arson investigations, and passenger automobiles, pickup
trucks, and buses owned or operated by the Department of Corrections, must be
registered and must display appropriate license number plates, furnished by the
registrar at cost. Original and renewal
applications for these license plates authorized for use in general police work
and for use by the Department of Corrections must be accompanied by a
certification signed by the appropriate chief of police if issued to a police
vehicle, the appropriate sheriff if issued to a sheriff's vehicle, the
commissioner of corrections if issued to a Department of Corrections vehicle,
or the appropriate officer in charge if issued to a vehicle of any other law
enforcement agency. The certification
must be on a form prescribed by the commissioner and state that the vehicle
will be used exclusively for a purpose authorized by this section.
(d) Unmarked vehicles used by the Departments of Revenue and
Labor and Industry, fraud unit, in conducting seizures or criminal
investigations must be registered and must display passenger vehicle
classification license number plates, furnished at cost by the registrar. Original and renewal applications for these
passenger vehicle license plates must be accompanied by a certification signed
by the commissioner of revenue or the commissioner of labor and industry. The certification must be on a form
prescribed by the commissioner and state that the vehicles will be used
exclusively for the purposes authorized by this section.
(e) Unmarked vehicles used by the Division
of Disease Prevention and Control of the Department of Health must be
registered and must display passenger vehicle classification license number
plates. These plates must be furnished
at cost by the registrar. Original and
renewal applications for these passenger vehicle license plates must be
accompanied by a certification signed by the commissioner of health. The certification must be on a form
prescribed by the commissioner and state that the vehicles will be used
exclusively for the official duties of the Division of Disease Prevention and
Control.
(f) Unmarked vehicles used by staff of the Gambling Control
Board in gambling investigations and reviews must be registered and must
display passenger vehicle classification license number plates. These plates must be furnished at cost by
the registrar. Original and renewal
applications for these passenger vehicle license plates must be accompanied by
a certification signed by the board chair.
The certification must be on a form prescribed by the commissioner and
state that the vehicles will be used exclusively for the official duties of the
Gambling Control Board.
(g) All other motor vehicles must be registered and display
tax-exempt number plates, furnished by the registrar at cost, except as
provided in subdivision 1c. All
vehicles required to display tax-exempt number plates must have the name of the
state department or political subdivision, nonpublic high school operating a
driver education program, or licensed commercial driving school, plainly
displayed on both sides of the vehicle; except that each state hospital and
institution for the mentally ill and mentally retarded may have one vehicle
without the required identification on the sides of the vehicle, and county
social service agencies may have vehicles used for child and vulnerable adult
protective services without the required identification on the sides of the
vehicle. This identification must be in
a color giving contrast with that of the part of the vehicle on which it is placed
and must endure throughout the term of the registration. The identification must not be on a
removable plate or placard and must be kept clean and visible at all times;
except that a removable plate or placard may be utilized on vehicles leased or
loaned to a political subdivision or to a nonpublic high school driver
education program."
Page 1, line 8, delete "Section 1" and insert
"Sec. 3"
Page 1, line 19, delete "2" and insert "4"
Amend the title as follows:
Page 1, line 2, after the semicolon, insert "exempting
motorized foot scooters from tax and registration fees; changing eligibility
criteria for certain business panels;"
Page 1, line 4, delete "section" and insert
"sections 160.80, subdivision 1a; 168.012, subdivision 1;"
With the recommendation that when so amended the bill pass.
The report was adopted.
Gunther from the Committee on Jobs and Economic Opportunity
Policy and Finance to which was referred:
H. F. No. 986, A bill for an act relating to economic
development; redefining low-income area for the purpose of the urban initiative
program; amending Minnesota Statutes 2004, section 116M.14, subdivision 4.
Reported the same back with the following amendments:
Page 1, after line 19, insert:
"Sec. 2. Minnesota
Statutes 2004, section 116M.15, is amended by adding a subdivision to read:
Subd. 5.
[SUNSET.] This section expires on June 30, 2007."
Renumber the sections in sequence and correct the internal
references
Amend the title as follows:
Page 1, line 4, after the semicolon, insert "providing a
sunset date for the Urban Initiative Board;"
Page 1, line 5, after "4" insert "; 116M.15, by
adding a subdivision"
With the recommendation that when so amended the bill pass.
The report was adopted.
Gunther from the Committee on Jobs and Economic Opportunity
Policy and Finance to which was referred:
H. F. No. 987, A bill for an act relating to child safety;
prohibiting the sale and commercial use of certain cribs; providing
enforcement; proposing coding for new law in Minnesota Statutes, chapters 245A;
325F.
Reported the same back with the following amendments:
Page 3, line 15, after "shall" insert ": (i)"
Page 3, line 16, delete "so that it is no longer used
by or" and insert "from use; and (ii) as soon as practicable,
but not more than two business days after the inspection, ensure that the crib
is not"
Page 4, line 15, delete "remanufacture, retrofit,"
With the recommendation that when so amended the bill pass.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No. 987
was re-referred to the Committee on Rules and Legislative Administration.
Gunther from the Committee on Jobs and Economic Opportunity
Policy and Finance to which was referred:
H. F. No. 1003, A bill for an act relating to commerce;
regulating service contracts and contract providers; providing exceptions;
amending Minnesota Statutes 2004, section 72A.20, by adding a subdivision;
proposing coding for new law as Minnesota Statutes, chapter 59B.
Reported the same back with the following amendments:
Page 4, line 5, delete "$200"
and insert "$750"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Ways and Means.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No.
1003 was re-referred to the Committee on Rules and Legislative Administration.
Ozment from the Committee on Agriculture, Environment and
Natural Resources Finance to which was referred:
H. F. No. 1081, A bill for an act relating to natural
resources; modifying commercial fishing restrictions in infested waters;
providing for a water recreation account; modifying expiration of certain
committees; modifying disposition of certain revenue and unrefunded tax
receipts; modifying terms of certain reports; eliminating commissioner approval
of county expenditures of county timber receipts; modifying zoning requirements
in floodplain areas; amending Minnesota Statutes 2004, sections 84D.03,
subdivision 4; 97A.055, subdivision 4b; 97A.4742, subdivision 4; 103G.615,
subdivision 2; 282.08; 282.38, subdivision 1; 296A.18, subdivision 2; 462.357,
subdivision 1e; proposing coding for new law in Minnesota Statutes, chapter
86B.
Reported the same back with the following amendments:
Page 2, after line 29, insert:
"Sec. 2. Minnesota
Statutes 2004, section 85.053, subdivision 1, is amended to read:
Subdivision 1. [FORM,
ISSUANCE, VALIDITY.] (a) The commissioner shall prepare and provide state park
permits for each calendar year that state a motor vehicle may enter and use
state parks, state recreation areas, and state waysides over 50 acres in
area. State park permits must be
available and placed on sale by January 1 of the calendar year that the
permit is valid in which the permits are to be issued. A separate motorcycle permit may be prepared
and provided by the commissioner.
(b) An annual state park permit must be affixed when purchased
and may be used from the time it is affixed for a 12-month period. State park permits in each category must be
numbered consecutively for each year of issue.
(c) State park permits shall be issued by employees of the
Division of Parks and Recreation as designated by the commissioner. State park permits also may be consigned to
and issued by agents designated by the commissioner who are not employees of
the Division of Parks and Recreation.
All proceeds from the sale of permits and all unsold permits consigned
to agents shall be returned to the commissioner at such times as the commissioner
may direct, but no later than the end of the calendar year for which the
permits are effective issued.
No part of the permit fee may be retained by an agent. An additional charge or fee in an amount to
be determined by the commissioner, but not to exceed four percent of the price
of the permit, may be collected and retained by an agent for handling or
selling the permits.
Sec. 3. Minnesota Statutes 2004, section 85.054, is amended by adding a
subdivision to read:
Subd. 11. [BIG
BOG STATE RECREATION AREA.] A state park permit is not required and a fee
may not be charged for motor vehicle entry or parking at the parking area
located north of Tamarac River in the southern unit of Big Bog State Recreation
Area, Beltrami County."
Page 5, line 18, before the period, insert "and to the
senate and house committees with jurisdiction over natural resources finance"
Page 5, line 24, after "commissioner" insert "and
to the senate and house committees with jurisdiction over natural resources
finance"
Renumber the sections in sequence
Amend the title as follows:
Page 1, line 3, after the semicolon, insert "modifying
state park permit exemptions;"
Page 1, line 11, after the first semicolon, insert
"85.053, subdivision 1; 85.054, by adding a subdivision;"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Ways and Means.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No.
1081 was re-referred to the Committee on Rules and Legislative Administration.
Wilkin from the Committee on Commerce and Financial
Institutions to which was referred:
H. F. No. 1103, A bill for an act relating to employment;
permitting employers of professional athletes to request or require random drug
testing for the presence of anabolic steroids; amending Minnesota Statutes,
section 181.951, subdivision 4.
Reported the same back with the following amendments:
Page 1, line 14, delete everything after "athletes"
and insert "and subject to a collective bargaining agreement that
permits or requires such testing"
Page 1, line 15, delete everything before the period
With the recommendation that when so amended the bill pass.
The report was adopted.
Seifert from the Committee on State Government Finance to
which was referred:
H. F. No. 1172, A bill for an act relating to local government;
providing for local governments to opt out of state mandates; proposing coding
for new law as Minnesota Statutes, chapter 471B.
Reported the same back with the following amendments:
Page 1, line 25, delete "unless" and insert
"whether or not"
Page 4, line 26, delete "the resolutions" and
insert "at least seven certified opt out or reform proposals from each
government of the same kind listed in paragraph (c)"
Page 4, line 27, delete "included in" and
insert "submitted as" and after "notice"
insert "that" and delete "delivered" and
insert "delivers"
Page 4, delete lines 31 to 35 and insert:
"(b) The house of representatives and senate must adopt
rules ensuring that bills to specifically address at least seven mandates for
which the minimum number of resolutions have been filed are given a priority
status and presented to the house of representatives and senate for
consideration and action by that body in a timely manner during the regular
session that biennium."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Ways and Means.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No.
1172 was re-referred to the Committee on Rules and Legislative Administration.
Holberg from the Committee on Transportation Finance to which
was referred:
H. F. No. 1173, A bill for an act relating to taxation;
exempting public personal rapid transit systems from certain taxes; amending
Minnesota Statutes 2004, sections 272.02, by adding a subdivision; 290.05,
subdivision 1; 297A.61, by adding a subdivision; 297A.68, by adding a
subdivision; 297A.71, by adding a subdivision.
Reported the same back with the recommendation that the bill
pass and be re-referred to the Committee on Taxes.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No.
1173 was re-referred to the Committee on Rules and Legislative Administration.
Holberg from the Committee on Transportation Finance to
which was referred:
H. F. No. 1174, A bill for an act relating to local government;
authorizing local bonding for personal rapid transit; amending Minnesota
Statutes 2004, sections 429.021, subdivision 1; 475.51, by adding a
subdivision; 475.52, subdivisions 1, 3, by adding a subdivision.
Reported the same back with the following amendments:
Page 3, line 15, before the period, insert ", if the
commissioner of transportation has certified that the personal rapid transit
technology is at least as safe and reliable as other fixed-guideway transit
systems"
Page 4, line 7, after "systems" insert "is
contingent on the commissioner of transportation certifying that the personal
rapid transit technology is at least as safe and reliable as other
fixed-guideway transit systems, and"
Page 4, line 23, after "systems" insert "is
contingent on the commissioner of transportation certifying that the personal
rapid transit technology is at least as safe and reliable as other
fixed-guideway transit systems, and"
Page 4, lines 31 and 32, delete "or a PRT public safety
certification and training facility"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Taxes.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No.
1174 was re-referred to the Committee on Rules and Legislative Administration.
Tingelstad from the Committee on Governmental Operations and
Veterans Affairs to which was referred:
H. F. No. 1275, A bill for an act relating to state government;
establishing a Minnesota Humanities Commission; proposing coding for new law in
Minnesota Statutes, chapter 138.
Reported the same back with the following amendments:
Page 2, after line 4, insert:
"Sec. 2. [138.912]
[POET LAUREATE.]
(a) The position of poet laureate of the State of Minnesota
is established. The Minnesota
Humanities Commission must solicit nominations for the poet laureate
appointment, and must make recommendations to the governor. After receiving recommendations from the
Minnesota Humanities Commission, the governor shall appoint a state poet
laureate, and shall conduct appropriate ceremonies to honor the person
appointed. The person appointed as poet
laureate continues to serve in this position until the governor appoints
another person.
(b) State agencies and officers are encouraged to use the
services of the poet laureate for appropriate ceremonies and celebrations.
(c) Any expenses associated with the poet laureate must be
paid from nonstate sources."
Page 2, line 5, delete "2" and insert
"3"
Page 2, line 6, delete "Section 1 is" and
insert "Sections 1 and 2 are"
Amend the title as follows:
Page 1, line 3, after the semicolon, insert "establishing
a poet laureate position;"
With the recommendation that when so amended the bill pass.
The report was adopted.
Wilkin from the Committee on Commerce and Financial
Institutions to which was referred:
H. F. No. 1528, A bill for an act relating to insurance;
regulating claims practices; amending Minnesota Statutes 2004, section 72A.201,
subdivision 6.
Reported the same back with the following amendments:
Page 4, line 10, delete everything after "vehicle"
and insert a period
Page 4, line 11, delete everything before "Your"
Page 4, line 12, delete "restoring" and insert
"repairing"
With the recommendation that when so amended the bill pass.
The report was adopted.
Ozment from the Committee on Agriculture, Environment and
Natural Resources Finance to which was referred:
H. F. No. 1732, A bill for an act relating to agriculture;
changing certain loan provisions; establishing a loan program; changing certain
livestock zoning regulations; appropriating money; amending Minnesota Statutes
2004, sections 41B.046, subdivision 5; 41B.049, subdivision 2; 174.52,
subdivision 5; 394.25, subdivision 3c; 462.355, subdivision 4; 462.357, by
adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 41B; repealing Minnesota Statutes 2004, section 41B.046, subdivision 3.
Reported the same back with the following amendments:
Pages 8 and 9, delete sections 9 and 10
Page 9, line 31, delete "11" and insert "9"
Page 9, line 34, delete "12" and insert
"10"
Amend the title as follows:
Page 1, lines 4 and 5, delete "appropriating money;"
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Rules and Legislative Administration.
The report was adopted.
Holberg from the Committee on Transportation Finance to which
was referred:
H. F. No. 1818, A bill for an act relating to transportation;
exempting certain unsubsidized providers of public transit service from vehicle
registration taxes, motor fuel taxes, and corporate income tax; deleting
restriction on use of freeway and expressway shoulders by transit buses;
requiring Metropolitan Council to permit providers of transit service to use
its bus stops; amending Minnesota Statutes 2004, sections 168.012, subdivision
1; 169.306; 290.01, subdivision 19d; 296A.07, subdivision 4; 296A.08,
subdivision 3; 473.411, by adding a subdivision.
Reported the same back with the following amendments:
Page 2, line 13, delete "in" and insert "to
provide service to"
Page 8, line 25, delete "in" and insert "to
serve"
Page 9, line 28, delete "in" and insert "to
serve"
Page 10, line 5, after the period, insert "This
subdivision applies only to vehicles that:
(1) provide transit service originating outside the
metropolitan area as defined in section 473.121, subdivision 2;
(2) while inbound to the metropolitan area, do not pick up
passengers within the metropolitan area; and
(3) while outbound from the metropolitan area, do not drop
off passengers within the metropolitan area."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Taxes.
The report was adopted.
Pursuant to Joint Rule 2.03, H. F. No.
1818 was re-referred to the Committee on Rules and Legislative Administration.
Johnson, J., from the Committee on Civil Law and Elections to
which was referred:
H. F. No. 1879, A bill for an act relating to campaign finance;
changing certain reporting requirements; redefining inactivity; requiring
assumption of certain liabilities; changing certain limits; changing public
subsidy distribution requirements; amending Minnesota Statutes 2004, sections
10A.20, subdivisions 2, 5, by adding a subdivision; 10A.24, subdivision 2;
10A.242, subdivision 2; 10A.25, subdivision 2; 10A.31, subdivisions 6, 7;
10A.323.
Reported the same back with the following amendments:
Page 1, after line 11, insert:
"Section 1.
Minnesota Statutes 2004, section 10A.01, subdivision 9, is amended to
read:
Subd. 9. [CAMPAIGN
EXPENDITURE.] (a) "Campaign expenditure" or
"expenditure" means a purchase or payment of money or anything of
value, or an advance of credit, made or incurred for the purpose of influencing
the nomination or election of a candidate or for the purpose of promoting or
defeating a ballot question.
(b) An expenditure is considered to be made in the year
in which the candidate made the purchase of goods or services or incurred an
obligation to pay for goods or services.
(c) An expenditure made for the purpose of defeating a
candidate is considered made for the purpose of influencing the nomination or
election of that candidate or any opponent of that candidate.
(d) Except as provided in clause (1),
"expenditure" includes the dollar value of a donation in kind.
"Expenditure" does not include:
(1) noncampaign disbursements as defined in subdivision 26;
(2) services provided without compensation by an individual
volunteering personal time on behalf of a candidate, ballot question, political
committee, political fund, principal campaign committee, or party unit; or
(3) the publishing or broadcasting of news items or editorial
comments by the news media; or
(4) the cost of a communication on any subject by a
corporation intended for its shareholders or executive or administrative
personnel, by a membership association intended for its members or the members'
executive or administrative personnel, or by a labor organization intended for
its members or executive or administrative personnel or their families.
(e) For purposes of this subdivision and subdivision 11, the
following terms have the meanings given them.
(1) "Executive or administrative personnel" means
individuals employed by a corporation, membership association, or labor
organization who are paid on a salary rather than an hourly basis and who have
policymaking, managerial, professional, or supervisory responsibilities.
(2) "Labor organization" means any organization of
any kind, or any agency or employee representative committee or plan, in which
employees participate and that exists for the purpose, in whole or in part, of
dealing with employers concerning grievances, labor disputes, wages, rates of
pay, hours of employment, or conditions of work.
(3) "Members" means all persons who are currently
satisfying the requirements for membership in a membership association,
affirmatively accept the membership association's invitation to become a
member, and either:
(i) have some significant financial attachment to the
membership association, such as a significant investment or ownership state,
but not merely the payment of dues;
(ii) are required to pay on a regular basis a specific
amount of dues that is predetermined by the association and are entitled to
vote directly either for at least one member who has full participatory and
voting rights on the highest governing body of the membership association, or
for those who select at least one member of those on the highest governing body
of the membership association; or
(iii) are entitled to vote directly
for all of those on the highest governing body of the membership association.
(4) "Membership association" means a membership
organization; trade association; cooperative; corporation without capital
shares; or local, national, or international labor organization that expressly:
(i) provides for members in its articles and bylaws;
(ii) solicits members; and
(iii) acknowledges the acceptance of membership, such as by
sending a membership card or inclusion on a membership newsletter list.
(5) "Shareholder" means a person who has a vested
beneficial interest in one or more shares, has the power to direct how those
shares are voted if they are voting shares, and has the right to receive
dividends.
Sec. 2. Minnesota
Statutes 2004, section 10A.01, subdivision 11, is amended to read:
Subd. 11.
[CONTRIBUTION.] (a) "Contribution" means money, a negotiable
instrument, or a donation in kind that is given to a political committee,
political fund, principal campaign committee, or party unit.
(b) "Contribution" includes a loan or advance of
credit to a political committee, political fund, principal campaign committee,
or party unit, if the loan or advance of credit is: (1) forgiven; or (2) repaid
by an individual or an association other than the political committee,
political fund, principal campaign committee, or party unit to which the loan
or advance of credit was made. If an
advance of credit or a loan is forgiven or repaid as provided in this
paragraph, it is a contribution in the year in which the loan or advance of
credit was made.
(c) "Contribution" does not include services provided
without compensation by an individual volunteering personal time on behalf of a
candidate, ballot question, political committee, political fund, principal
campaign committee, or party unit, or the publishing or broadcasting of news
items or editorial comments by the news media.
(d) "Contribution" does not include the cost of a
communication on any subject by a corporation intended for its shareholders or
executive or administrative personnel, by a membership association intended for
its members or the members' executive or administrative personnel, or by a
labor organization intended for its members or executive or administrative
personnel or their families, as defined in subdivision 9."
Page 3, line 12, after "years" insert "or in
the case of candidates for judicial offices, six years,"
Page 3, line 16, after "years" insert "or in
the case of candidates for judicial offices, six years,"
Page 5, line 2, strike "If"
Page 5, line 7, delete "the preprimary"
Page 5, delete lines 8 to 13
Page 7, after line 24, insert:
"Sec. 12.
Minnesota Statutes 2004, section 211B.15, subdivision 1, is amended to
read:
Subdivision 1.
[DEFINITIONS.] For purposes of (a) The definitions in this
subdivision apply to this section,.
(b) "Contribution" has
the meaning given in section 10A.01, subdivision 11.
(c) "Corporation" means:
(1) a corporation organized for profit that does business in this
state;
(2) a nonprofit corporation that carries out activities in this
state; or
(3) a limited liability company formed under chapter 322B, or
under similar laws of another state, that does business in this state.
(d) "Expenditure" has the meaning given in section
10A.01, subdivision 9.
(e) "Political office" means an elective office of
the state or a political subdivision, but does not include the office of
president of the United States or the office of senator or representative in
Congress.
Sec. 13. Minnesota
Statutes 2004, section 211B.15, subdivision 17, is amended to read:
Subd. 17. [NONPROFIT
CORPORATION POLITICAL ACTIVITY ADMINISTRATIVE SUPPORT.] It is not a
violation of this section for a nonprofit corporation to provide administrative
assistance to one political committee or political fund that is associated with
the nonprofit corporation and registered with the Campaign Finance and Public
Disclosure Board under section 10A.14. Such
Administrative assistance must be limited to includes
accounting, clerical or legal services, bank charges, utilities, office space, and
supplies, and the expenses of soliciting donations to the political
committee or political fund. The
records of the political committee or political fund may be kept on the
premises of the nonprofit corporation.
The administrative assistance provided by the nonprofit
corporation to the political committee or political fund is limited annually to
the lesser of $5,000 or 7-1/2 percent of the expenditures of the political
committee or political fund."
Renumber the sections in sequence
Amend the title as follows:
Page 1, line 6, after the semicolon, insert "changing
certain definitions, procedures, and requirements;"
Page 1, line 7, after "sections" insert "10A.01,
subdivisions 9, 11;"
Page 1, line 10, before the period, insert "; 211B.15,
subdivisions 1, 17"
With the recommendation that when so amended the bill pass.
The report was adopted.
Wilkin from the Committee on Commerce
and Financial Institutions to which was referred:
H. F. No. 1914, A bill for an act relating to employment;
increasing the penalty for failure to pay a discharged employee within 24
hours; modifying the penalty for failure to pay benefits or wage supplements;
increasing the penalty for violation of migrant worker payment requirements;
amending Minnesota Statutes 2004, sections 181.11; 181.74, subdivision 1;
181.89, subdivision 2.
Reported the same back with the following amendments:
Page 1, line 23, after "two" insert "business"
Amend the title as follows:
Page 1, line 3, delete "a" and insert
"certain" and delete "employee" and insert
"employees"
With the recommendation that when so amended the bill pass.
The report was adopted.
Tingelstad from the Committee on Governmental Operations and
Veterans Affairs to which was referred:
H. F. No. 2092, A bill for an act relating to retirement;
elective state officers retirement plan; amending Minnesota Statutes 2004,
section 352C.091, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapter 352C; repealing Minnesota Statutes 2004, sections 352C.01;
352C.011; 352C.021; 352C.031; 352C.033; 352C.04; 352C.051; 352C.09; 352C.091,
subdivisions 2, 3.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"2005
OMNIBUS RETIREMENT BILL
ARTICLE
1
CLARIFICATION/RECODIFICATION
OF
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 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 section 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:
rate
period
(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
(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) However, the member may reinstate the rights and
credit for service previously forfeited under this chapter if the member
repays all refunds taken, plus interest at an annual rate of 8.5 percent
compounded annually from the date on which the refund was taken to the date on
which the refund is repaid.
(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) The payments for dependent children 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. Minnesota
Statutes 2004, section 3A.13, is amended to read:
3A.13 [EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
DEDUCTION.]
(a) The provisions of section 352.15 shall apply
to the legislators retirement plan, chapter 3A.
(b) The executive director of the Minnesota State
Retirement System must, at the request of a retired legislator who is enrolled
in a health insurance plan covering state employees, deduct the person's health
insurance premiums from the person's annuity and transfer the amount of the
premium to a health insurance carrier covering state employees.
Sec. 30. [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 31 or 77, 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. 31. 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. 32. 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. 33. 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. 34. Minnesota
Statutes 2004, 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" does not mean service as a
retired judge.
Sec. 35. 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. 36. 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. 37. 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. 38. 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. 39. 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. 40. 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. 41. 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. 42. 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. 43. 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. 44. 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. 45. Minnesota
Statutes 2004, section 490.121, subdivision 21, is amended to read:
Subd. 21. [FINAL
AVERAGE COMPENSATION.] "Final average compensation" means the total
amount of the salary payable paid to a judge in the
highest five years out of the last ten years prior to before
the event of maturity of benefits termination of judicial service,
divided by five; provided, however, that if the number of years of
service by the judge equals or exceeds ten.
If the number of years of service by the judge is less than ten,
but more than five, the highest five shall years of salary must
be counted, and. If the
number of years of service by the judge is less than five, the aggregate
salary in such for the period shall of service must
be divided by the number of months in such the period and
multiplied by 12.
Sec. 46. Minnesota
Statutes 2004, section 490.121, is amended by adding a subdivision to read:
Subd. 21a.
[JUDGE.] "Judge" means a judge or a justice of any court as
defined under subdivision 7b.
Sec. 47. Minnesota
Statutes 2004, section 490.121, is amended by adding a subdivision to read:
Subd. 21b.
[JUDGES' RETIREMENT FUND; RETIREMENT FUND; FUND.] "Judges'
retirement fund," "retirement fund," or "fund" means
the fund created by section 490.123.
Sec. 48. Minnesota
Statutes 2004, section 490.121, is amended by adding a subdivision to read:
Subd. 21c.
[MANDATORY RETIREMENT DATE.] "Mandatory retirement date"
means the last day of the month in which a judge has attained 70 years of age.
Sec. 49. Minnesota
Statutes 2004, section 490.121, is amended by adding a subdivision to read:
Subd. 21d.
[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. 50. Minnesota
Statutes 2004, section 490.121, is amended by adding a subdivision to read:
Subd. 21e.
[NORMAL RETIREMENT DATE.] "Normal retirement date" means
the last day of the month in which a judge attains the age of 65.
Sec. 51. 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. 52. 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. 53. 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. 54. 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.
[INAPPLICABILITY OF CERTAIN LAWS.] Except as otherwise specified, no
provision of chapter 352 applies to the judges' retirement fund or any judge.
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. 55. 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. 56. 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. 57. 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. 58. 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. 59. 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. 60. 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. 61. 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. 62. 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. 63. 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. 64. 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, the chief justice of the Supreme Court, the state court
administrator, and 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. 65. 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. 66. 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. 67. 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 has who 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. 68. Minnesota
Statutes 2004, section 490.124, subdivision 10, is amended to read:
Subd. 10. [PRIOR
SURVIVORS' BENEFITS; LIMITATION.] (a) Benefits provided pursuant to
under 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 section 490.102, subdivision 6, or 490.109.
Sec. 69. 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. 70. 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. 71. 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. 72. 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. 73. Minnesota Statutes 2004, section 490.126, 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.
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.] None of the money, annuities, or other benefits
provided in this chapter is assignable either in law or equity or is subject to
state estate tax, or to execution, levy, attachment, garnishment, or
other legal process, except as provided in section 518.58, 518.581, or
518.6111.
Sec. 74. 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 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. 75. [490A.01]
[BOARD OF JUDICIAL STANDARDS; ESTABLISHMENT.]
Subdivision 1.
[ESTABLISHMENT; COMPOSITION.] The Board on Judicial Standards is
established. The Board on Judicial
Standards is a continuation of the board established by Laws 1971, chapter 909,
sections 1 and 2, as amended. For the
purposes of this chapter, "board" means the Board on Judicial
Standards.
Subd. 2. [COMPOSITION; APPOINTMENT.] (a) The board
consists of one judge of the Court of Appeals, three trial court judges, two
lawyers who have practiced law in the state for at least ten years, and four
citizens who are not judges, retired judges, or lawyers.
(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. 76. [490A.02]
[JUDICIAL STANDARDS BOARD; POWERS.]
Subdivision 1.
[JUDICIAL DISQUALIFICATION.] A judge is disqualified from acting as a
judge, without a loss of salary, while there is pending an indictment or any
information charging the judge with a crime that is punishable as a felony
under either Minnesota law or federal law, or while there is pending a
recommendation to the Supreme Court by the Board on Judicial Standards for the
judge's removal or retirement.
Subd. 2.
[JUDICIAL SUSPENSION.] On receipt of a recommendation of the Board on
Judicial Standards or on its own motion, the Supreme Court may suspend a judge
from office without salary when the judge pleads guilty to or no contest to or
is found guilty of a crime that is punishable as a felony under either
Minnesota law or federal law or any other crime that involves moral
turpitude. If the conviction is
reversed, the suspension terminates and the judge must be paid a salary for the
period of suspension. If the judge is
suspended and the conviction becomes final, the Supreme Court shall remove the
judge from office.
Subd. 3.
[JUDICIAL DISABILITY.] On receipt of a recommendation of the Board on
Judicial Standards, the Supreme Court may retire a judge for a disability that
the court determines seriously interferes with the performance of the judge's
duties and is or is likely to become permanent, and censure or remove a judge
for an action or inaction that may constitute persistent failure to perform the
judge's duties, incompetence in performing the judge's duties, habitual
intemperance, or conduct prejudicial to the administration of justice that
brings the judicial office into disrepute.
Subd. 4.
[AUTHORITY TO REOPEN MATTERS.] The board is specifically empowered to
reopen any matter wherein any information or evidence was previously precluded
by a statute of limitations or by a previously existing provision of time
limitation.
Subd. 5.
[RETIREMENT STATUS.] (a) A judge who is retired by the Supreme Court
must be considered to have retired voluntarily.
(b) This section and section 490A.01 must not affect the
right of a judge who is suspended, retired, or removed under this section from
qualifying for any pension or other retirement benefits to which the judge
would otherwise be entitled by law to receive.
Subd. 6. [ELIGIBILITY FOR JUDICIAL OFFICE; PRACTICE
LAW.] A judge removed by the Supreme Court is ineligible for any future
service in a judicial office. The
question of the right of a removed judge to practice law in this state must be
referred to the proper authority for review.
Subd. 7.
[SUPREME COURT RULES.] The Supreme Court shall make rules to
implement this section.
Sec. 77. [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 1; 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; 352C.031; 352C.033;
352C.04; 352C.051; 352C.09; and 352C.091, subdivisions 2 and 3, are repealed.
Subd. 3.
[JUDICIAL RETIREMENT PLANS; REPEALED AS OBSOLETE.] Minnesota Statutes
2004, sections 490.021; 490.025, subdivisions 1, 2, 3, 4, and 6; 490.101;
490.102; 490.103; 490.105; 490.106; 490.107; 490.108; 490.109; 490.1091;
490.12; and 490.121, subdivisions 2, 3, 5, 8, 9, 10, 11, 12, 16, 17, 18, 19,
and 20, are repealed.
Subd. 4.
[JUDICIAL STANDARDS BOARD; REPEALED FOR RELOCATION AS MINNESOTA
STATUTES, CHAPTER 490A.] Minnesota Statutes 2004, sections 490.021; 490.025,
subdivisions 1, 2, 3, 4, and 6; 490.101; 490.102; 490.103; 490.105; 490.106;
490.107; 490.108; 490.109; 490.1091; 490.12; and 490.121, subdivisions 2, 3, 5,
8, 9, 10, 11, 12, 16, 17, 18, 19, and 20, are repealed.
Subd. 5.
[UNIFORM JUDICIAL RETIREMENT PLAN; NO BENEFIT DIMINISHMENT INTENDED;
PROCEDURE.] Sections 32 to 76 are not intended to reduce or increase the
entitlement of active, deferred, or retired judges to retirement annuities or
benefits as of July 1, 2005, as reflected in the records of the Minnesota State
Retirement System. If the executive director
of the Minnesota State Retirement System determines that any provisions of
sections 32 to 76 functions to modify, impair, or diminish the retirement
annuity or benefit entitlement of any judge that had accrued or earned before
July 1, 2005, the executive director shall certify that determination and a
recommendation as to the required legislative correction to the chair of the
Legislative Commission on Pensions and Retirement, the chair of the senate
State and Local Governmental Operations Committee, the chair of the house
Governmental Operations and Veterans Affairs Policy Committee, and the
executive director of the Legislative Commission on Pensions and Retirement on
or before the October 1 next following that determination.
Sec. 78. [EFFECTIVE
DATE.]
This article is effective on July 1, 2005.
ARTICLE
2
COVERED
SALARY; AVERAGE SALARY
Section 1. Minnesota
Statutes 2004, section 352.01, is amended by adding a subdivision to read:
Subd. 14a.
[AVERAGE SALARY.] (a) "Average salary" means the average of
the highest five successive years of salary upon which the employee has made
contributions to the retirement fund by payroll deductions. Average salary must be based upon all
allowable service if this service is less than five years.
(b) "Average salary" does not include the payment
of accrued unused annual leave or overtime paid at time of final separation
from state service if paid in a lump sum nor does it include the reduced
salary, if any, paid during the period the employee is entitled to workers'
compensation benefit payments for temporary disability.
(c) For an employee covered by the correctional state
employees retirement plan, "average salary" means the average of the
monthly salary during the employee's highest five successive years of salary as
an employee covered by the general state employees retirement plan, or the
correctional state employees retirement plan, or by a combination of the
two. If the total of the covered
service is less than five years, the determination of average salary must be
based on all allowable service.
Sec. 2. Minnesota
Statutes 2004, section 352.115, subdivision 2, is amended to read:
Subd. 2. [AVERAGE
SALARY NORMAL RETIREMENT ANNUITY.] The retirement annuity hereunder
payable at normal retirement age or thereafter must be computed in accordance
with the applicable provisions of the formula stated in subdivision 3, on the
basis of the employee's average salary for the period of allowable
service. This retirement annuity is
known as the "normal" retirement annuity.
For each year of allowable service, "average
salary" of an employee in determining a retirement annuity means the
average of the highest five successive years of salary upon which the employee
has made contributions to the retirement fund by payroll deductions. Average salary must be based upon all
allowable service if this service is less than five years.
"Average salary" does not include the payment of
accrued unused annual leave or overtime paid at time of final separation from
state service if paid in a lump sum nor does it include the reduced salary, if
any, paid during the period the employee is entitled to workers' compensation
benefit payments for temporary disability.
Sec. 3. Minnesota
Statutes 2004, section 352.115, subdivision 3, is amended to read:
Subd. 3. [RETIREMENT
ANNUITY FORMULA.] (a) This paragraph, in conjunction with section 352.116,
subdivision 1, applies to a person who became a covered employee or a member of
a pension fund listed in section 356.30, subdivision 3, before July 1, 1989,
unless paragraph (b), in conjunction with section 352.116, subdivision 1a,
produces a higher annuity amount, in which case paragraph (b) will apply. The employee's average salary, as defined in
section 352.01, subdivision 2 14a, multiplied by the
percent specified in section 356.315, subdivision 1, per year of allowable
service for the first ten years and the percent specified in section 356.315,
subdivision 2, for each later year of allowable service and pro rata for
completed months less than a full year shall determine the amount of the
retirement annuity to which the employee is entitled.
(b) This paragraph applies to a person who has become at least
55 years old and first became a covered employee after June 30, 1989, and to
any other covered employee who has become at least 55 years old and whose
annuity amount, when calculated under this paragraph and in conjunction with
section 352.116, subdivision 1a, is higher than it is when calculated under
paragraph (a), in conjunction with section 352.116, subdivision 1. The employee's average salary, as defined in
section 352.01, subdivision 2 14a, multiplied by the
percent specified in section 356.315, subdivision 2, for each year of allowable
service and pro rata for months less than a full year shall determine the
amount of the retirement annuity to which the employee is entitled.
Sec. 4. Minnesota
Statutes 2004, section 352.87, subdivision 3, is amended to read:
Subd. 3. [RETIREMENT
ANNUITY FORMULA.] A person specified in subdivision 1 will have is
entitled to receive a retirement annuity applicable for allowable service
credit under this section calculated by multiplying the employee's average
salary, as defined in section 352.115 352.01, subdivision 2
14a, by the percent specified in section 356.315, subdivision 2a, for
each year or portions of a year of allowable service credit. No reduction for retirement prior to before
the normal retirement age, as specified in section 352.01, subdivision 25,
applies to service to which this section applies.
Sec. 5. Minnesota
Statutes 2004, section 352.93, subdivision 1, is amended to read:
Subdivision 1. [BASIS
OF ANNUITY; WHEN TO APPLY.] After separation from state service, an employee
covered under section 352.91 who has reached age 55 years and has credit for at
least three years of covered correctional service or a combination of
covered correctional service and regular Minnesota general
employees state retirement System plan service is entitled
upon application to a retirement annuity under this section, based only
on covered correctional employees' service.
Application may be made no earlier than 60 days before the date the
employee is eligible to retire by reason of both age and service requirements.
In this section, "average salary" means the
average of the monthly salary during the employee's highest five successive
years of salary as an employee covered by the Minnesota State Retirement
System. Average salary must be based
upon all allowable service if this service is less than five years.
Sec. 6. Minnesota
Statutes 2004, section 352C.021, is amended by adding a subdivision to read:
Subd. 1a.
[AVERAGE SALARY.] "Average salary," for purposes of
calculating the normal retirement annuity under section 352C.031, subdivision
4, means the average of the highest five successive years of salary upon which
contributions have been made under section 352C.09.
Sec. 7. Minnesota
Statutes 2004, section 353.01, subdivision 10, is amended to read:
Subd. 10. [SALARY.] (a)
"Salary" means:
(1) the periodic compensation of a public employee, before
deductions for deferred compensation, supplemental retirement plans, or other
voluntary salary reduction programs, and also means "wages" and
includes net income from fees;
(2) for a public employee who is covered by a supplemental
retirement plan under section 356.24, subdivision 1, clause (8), (9), or (10),
which require all plan contributions be made by the employer, the contribution
to the applicable supplemental retirement plan when the contribution is from
mandatory withholdings from employees' wages; and
(2) (3) for a public employee who has prior
service covered by a local police or firefighters relief association that has
consolidated with the Public Employees Retirement Association or to which
section 353.665 applies and who has elected coverage either under the public
employees police and fire fund benefit plan under section 353A.08 following the
consolidation or under section 353.665, subdivision 4, the rate of salary upon
which member contributions to the special fund of the relief association were
made prior to the effective date of the consolidation as specified by law and
by bylaw provisions governing the relief association on the date of the
initiation of the consolidation procedure and the actual periodic compensation
of the public employee after the effective date of consolidation.
(b) Salary does not mean:
(1) the fees paid to district court reporters, unused annual
vacation or sick leave payments, in lump-sum or periodic payments, severance
payments, reimbursement of expenses, lump-sum settlements not attached to a
specific earnings period, or workers' compensation payments;
(2) employer-paid amounts used by an employee toward the cost
of insurance coverage, employer-paid fringe benefits, flexible spending
accounts, cafeteria plans, health care expense accounts, day care expenses, or
any payments in lieu of any employer-paid group insurance coverage, including
the difference between single and family rates that may be paid to a member
with single coverage and certain amounts determined by the executive director
to be ineligible;
(3) the amount equal to that which the employing
governmental subdivision would otherwise pay toward single or family insurance
coverage for a covered employee when, through a contract or agreement with some
but not all employees, the employer:
(i) discontinues, or for new hires does not provide, payment
toward the cost of the employee's selected insurance coverages under a group
plan offered by the employer;
(ii) makes the employee solely responsible for all
contributions toward the cost of the employee's selected insurance coverages
under a group plan offered by the employer, including any amount the employer
makes toward other employees' selected insurance coverages under a group plan
offered by the employer; and
(iii) provides increased salary rates for employees who do not
have any employer-paid group insurance coverages;
(4) except as provided in section 353.86 or 353.87, compensation
of any kind paid to volunteer ambulance service personnel or volunteer
firefighters, as defined in subdivision 35 or 36; and
(5) the amount of compensation that exceeds the limitation
provided in section 356.611.
(c) Amounts provided to an employee by the employer through a
grievance proceeding or a legal settlement are salary only if the settlement is
reviewed by the executive director and the amounts are determined by the
executive director to be consistent with paragraph (a) and prior determinations.
Sec. 8. Minnesota
Statutes 2004, section 353.01, is amended by adding a subdivision to read:
Subd. 17a.
[AVERAGE SALARY.] (a) "Average salary," for purposes of
calculating a retirement annuity under section 353.29, subdivision 3, means an
amount equivalent to the average of the highest salary of the member, police
officer, or firefighter, whichever applies, upon which employee contributions
were paid for any five successive years of allowable service, based on dates of
salary periods as listed on salary deduction reports. Average salary must be based upon all allowable service if this
service is less than five years.
(b) "Average salary" may not include any reduced
salary paid during a period in which the employee is entitled to benefit
payments from workers' compensation for temporary disability, unless the
average salary is higher, including this period.
Sec. 9. Minnesota
Statutes 2004, section 353.29, subdivision 3, is amended to read:
Subd. 3. [RETIREMENT
ANNUITY FORMULA.] (a) This paragraph, in conjunction with section 353.30,
subdivisions 1, 1a, 1b, and 1c, applies to any member who first became a public
employee or a member of a pension fund listed in section 356.30, subdivision 3,
before July 1, 1989, unless paragraph (b), in conjunction with section 353.30,
subdivision 5, produces a higher annuity amount, in which case paragraph (b)
will apply. The average salary as
defined in section 353.01, subdivision 2 17a, multiplied
by the percent specified in section 356.315, subdivision 3, for each year of
allowable service for the first ten years and thereafter by the percent
specified in section 356.315, subdivision 4, per year of allowable service and
completed months less than a full year for the "basic member," and
the percent specified in section 356.315, subdivision 1, for each year of
allowable service for the first ten years and thereafter by the percent
specified in section 356.315, subdivision 2, per year of allowable service and
completed months less than a full year for the "coordinated member,"
shall determine the amount of the "normal" retirement annuity.
(b) This paragraph applies to a member who has become at
least 55 years old and first became a public employee after June 30, 1989, and
to any other member whose annuity amount, when calculated under this paragraph
and in conjunction with section 353.30, subdivision 5, is higher than it is
when calculated under paragraph (a), in conjunction with section 353.30,
subdivisions 1, 1a, 1b, and 1c. The
average salary, as defined in section 353.01, subdivision 2 17a,
multiplied by the percent specified in section 356.315, subdivision 4, for each
year of allowable service and completed months less than a full year for a
basic member and the percent specified in section 356.315, subdivision 2, per
year of allowable service and completed months less than a full year for a
coordinated member, shall determine the amount of the normal retirement
annuity.
Sec. 10. Minnesota
Statutes 2004, section 353.33, subdivision 3, is amended to read:
Subd. 3. [COMPUTATION
OF BENEFITS.] This disability benefit is an amount equal to the normal annuity
payable to a member who has reached normal retirement age with the same number
of years of allowable service and the same average salary, as provided in section
353.01, subdivision 17a, and section 353.29, subdivisions 2 and subdivision
3.
A basic member shall receive a supplementary monthly benefit of
$25 to age 65 or the five-year anniversary of the effective date of the
disability benefit, whichever is later.
If the disability benefits under this subdivision exceed the
average salary as defined in section 353.29 353.01, subdivision 2
17a, the disability benefits must be reduced to an amount equal to said
the average salary.
Sec. 11. Minnesota
Statutes 2004, section 353.651, subdivision 3, is amended to read:
Subd. 3. [RETIREMENT
ANNUITY FORMULA.] The average salary as defined in section 353.01,
subdivision 2 17a, multiplied by the percent specified in section
356.315, subdivision 6, per year of allowable service determines the amount of
the normal retirement annuity. If the
member has earned allowable service for performing services other than those of
a police officer or firefighter, the annuity representing such that
service is must be computed under sections 353.29 and 353.30.
Sec. 12. Minnesota
Statutes 2004, section 353.656, subdivision 1, is amended to read:
Subdivision 1. [IN LINE
OF DUTY; COMPUTATION OF BENEFITS.] A member of the police and fire plan 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. The benefits
must be in an amount equal to 60 percent of the "average salary" as
defined in section 353.651 353.01, subdivision 2 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. 13. Minnesota
Statutes 2004, section 354.05, is amended by adding a subdivision to read:
Subd. 13a.
[AVERAGE SALARY.] (a) "Average salary," for the purpose of
determining the member's retirement annuity, means the average salary upon
which contributions were made for the highest five successive years of formula
service credit.
(b) "Average salary" may not include any more
than the equivalent of 60 monthly salary payments.
(c) "Average salary" must be based upon all years
of formula service credit if this service credit is less than five years.
Sec. 14. Minnesota
Statutes 2004, section 354.44, subdivision 6, is amended to read:
Subd. 6. [COMPUTATION
OF FORMULA PROGRAM RETIREMENT ANNUITY.] (a) The formula retirement annuity must
be computed in accordance with the applicable provisions of the formulas stated
in paragraph (b) or (d) on the basis of each member's average salary under
section 354.05, subdivision 13a, for the period of the member's formula
service credit.
For all years of formula service credit, "average
salary," for the purpose of determining the member's retirement annuity,
means the average salary upon which contributions were made and upon which
payments were made to increase the salary limitation provided in Minnesota
Statutes 1971, section 354.511, for the highest five successive years of
formula service credit provided, however, that such "average salary" shall
not include any more than the equivalent of 60 monthly salary payments. Average salary must be based upon all years
of formula service credit if this service credit is less than five years.
(b) This paragraph, in conjunction with paragraph (c), applies
to a person who first became a member of the association or a member of a
pension fund listed in section 356.30, subdivision 3, before July 1, 1989,
unless paragraph (d), in conjunction with paragraph (e), produces a higher
annuity amount, in which case paragraph (d) applies. The average salary as defined in paragraph (a) section
354.05, subdivision 13a, multiplied by the following percentages per year
of formula service credit shall determine the amount of the annuity to which
the member qualifying therefor is entitled:
Coordinated Member Basic Member
Each year of service the percent the percent
during first ten specified
in
specified in
section 356.315, section 356.315,
subdivision 1, subdivision 3,
per year
per year
Each year of service the percent the percent
thereafter specified in specified in
section 356.315, section 356.315,
subdivision 2, subdivision 4,
per year
per year
(c)(i) This paragraph applies only to a person who first became
a member of the association or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989, and whose annuity is higher when
calculated under paragraph (b), in conjunction with this paragraph than when
calculated under paragraph (d), in conjunction with paragraph (e).
(ii) Where any member retires prior to normal retirement age
under a formula annuity, the member shall be paid a retirement annuity in an
amount equal to the normal annuity provided in paragraph (b) reduced by
one-quarter of one percent for each month that the member is under normal
retirement age at the time of retirement except that for any member who has 30
or more years of allowable service credit, the reduction shall be applied only
for each month that the member is under age 62.
(iii) Any member whose attained age
plus credited allowable service totals 90 years is entitled, upon application,
to a retirement annuity in an amount equal to the normal annuity provided in
paragraph (b), without any reduction by reason of early retirement.
(d) This paragraph applies to a member who has become at least
55 years old and first became a member of the association after June 30, 1989,
and to any other member who has become at least 55 years old and whose annuity
amount when calculated under this paragraph and in conjunction with paragraph
(e), is higher than it is when calculated under paragraph (b), in conjunction
with paragraph (c). The average salary,
as defined in paragraph (a) section 354.05, subdivision 13a,
multiplied by the percent specified by section 356.315, subdivision 4, for each
year of service for a basic member and by the percent specified in section
356.315, subdivision 2, for each year of service for a coordinated member shall
determine the amount of the retirement annuity to which the member is entitled.
(e) This paragraph applies to a person who has become at least
55 years old and first becomes a member of the association after June 30, 1989,
and to any other member who has become at least 55 years old and whose annuity
is higher when calculated under paragraph (d) in conjunction with this
paragraph than when calculated under paragraph (b), in conjunction with
paragraph (c). An employee who retires
under the formula annuity before the normal retirement age shall be paid the
normal annuity provided in paragraph (d) reduced so that the reduced annuity is
the actuarial equivalent of the annuity that would be payable to the employee
if the employee deferred receipt of the annuity and the annuity amount were
augmented at an annual rate of three percent compounded annually from the day
the annuity begins to accrue until the normal retirement age.
(f) No retirement annuity is payable to a former employee with
a salary that exceeds 95 percent of the governor's salary unless and until the
salary figures used in computing the highest five successive years average
salary under paragraph (a) have been audited by the Teachers Retirement
Association and determined by the executive director to comply with the
requirements and limitations of section 354.05, subdivisions 35 and 35a.
Sec. 15. Minnesota
Statutes 2004, section 354A.011, is amended by adding a subdivision to read:
Subd. 7a.
[AVERAGE SALARY.] "Average salary," for purposes of
computing a normal coordinated program retirement annuity under section
354A.31, subdivision 4 or 4a, means an amount equal to the average salary upon
which contributions were made for the highest five successive years of service
credit but may not, in any event, include any more than the equivalent of 60
monthly salary payments. Average salary
must be based upon all years of service credit if this service credit is less
than five years.
Sec. 16. Minnesota
Statutes 2004, section 354A.31, subdivision 4, is amended to read:
Subd. 4. [COMPUTATION
OF THE NORMAL COORDINATED RETIREMENT ANNUITY; MINNEAPOLIS AND ST. PAUL FUNDS.]
(a) This subdivision applies to the coordinated programs of the Minneapolis
Teachers Retirement Fund Association and the St. Paul Teachers Retirement Fund
Association.
(b) The normal coordinated retirement annuity shall be is
an amount equal to a retiring coordinated member's average salary under
section 354A.011, subdivision 7a, multiplied by the retirement annuity
formula percentage. Average salary
for purposes of this section shall mean an amount equal to the average salary
upon which contributions were made for the highest five successive years of
service credit, but which shall not in any event include any more than the
equivalent of 60 monthly salary payments.
Average salary must be based upon all years of service credit if this
service credit is less than five years.
(c) This paragraph, in conjunction with subdivision 6, applies
to a person who first became a member or a member in a pension fund listed in
section 356.30, subdivision 3, before July 1, 1989, unless paragraph (d), in
conjunction with subdivision 7, produces a higher annuity amount, in which case
paragraph (d) will apply. The
retirement annuity formula percentage for purposes of this paragraph is the
percent specified in section 356.315, subdivision 1, per year for each year of
coordinated service for the first ten years and the percent specified in
section 356.315, subdivision 2, for each year of coordinated service
thereafter.
(d) This paragraph applies to a person
who has become at least 55 years old and who first becomes a member after June
30, 1989, and to any other member who has become at least 55 years old and
whose annuity amount, when calculated under this paragraph and in conjunction
with subdivision 7 is higher than it is when calculated under paragraph (c), in
conjunction with the provisions of subdivision 6. The retirement annuity formula percentage for purposes of this
paragraph is the percent specified in section 356.315, subdivision 2, for each
year of coordinated service.
Sec. 17. Minnesota
Statutes 2004, section 354A.31, subdivision 4a, is amended to read:
Subd. 4a. [COMPUTATION
OF THE NORMAL COORDINATED RETIREMENT ANNUITY; DULUTH FUND.] (a) This
subdivision applies to the new law coordinated program of the Duluth Teachers
Retirement Fund Association.
(b) The normal coordinated retirement annuity is an amount
equal to a retiring coordinated member's average salary under section
354A.011, subdivision 7a, multiplied by the retirement annuity formula
percentage. Average salary for
purposes of this section means an amount equal to the average salary upon which
contributions were made for the highest five successive years of service
credit, but may not in any event include any more than the equivalent of 60
monthly salary payments. Average salary
must be based upon all years of service credit if this service credit is less
than five years.
(c) This paragraph, in conjunction with subdivision 6, applies
to a person who first became a member or a member in a pension fund listed in
section 356.30, subdivision 3, before July 1, 1989, unless paragraph (d), in
conjunction with subdivision 7, produces a higher annuity amount, in which case
paragraph (d) applies. The retirement
annuity formula percentage for purposes of this paragraph is the percent
specified in section 356.315, subdivision 1, per year for each year of
coordinated service for the first ten years and the percent specified in
section 356.315, subdivision 2, for each subsequent year of coordinated
service.
(d) This paragraph applies to a person who is at least 55 years
old and who first becomes a member after June 30, 1989, and to any other
member who is at least 55 years old and whose annuity amount, when calculated under
this paragraph and in conjunction with subdivision 7, is higher than it is when
calculated under paragraph (c) in conjunction with subdivision 6. The retirement annuity formula percentage
for purposes of this paragraph is the percent specified in section 356.315,
subdivision 2, for each year of coordinated service.
Sec. 18. Minnesota
Statutes 2004, section 422A.01, is amended by adding a subdivision to read:
Subd. 4a.
[AVERAGE SALARY.] (a) "Average salary" means the arithmetic
average annual salary, wages, or compensation of the member from the city for
any five calendar years out of the last ten calendar years of service, except
as provided for in section 422A.16, which may include the year in which the
employee retires, as selected by the employee.
(b) A member with more than five calendar years of service,
but less than ten calendar years, may select any five calendar years of service
to determine the average salary. A
member with less than five years of service with the city shall use all
earnings to determine the average salary.
Sec. 19. Minnesota
Statutes 2004, section 422A.15, subdivision 1, is amended to read:
Subdivision 1. [FORMULA
PENSION AND ANNUITY.] Except as otherwise provided in subdivision 3, each
contributing member who, at the time of retirement, fulfills the conditions
necessary to enable the member to retire of
the last ten calendar years of service except as provided for in section
422A.16, which may include the year in which the employee retires, as selected
by the employee, multiplied by the years of service credited by the
retirement fund. The formula pension
and annuity , shall is entitled to
receive what shall be known as a "formula pension and annuity"
equal to two percent for each year of allowable service for the first ten years
and thereafter 2.5 percent per year of allowable service of the arithmetic
average annual salary, wages or compensation of the member from the
city for any five calendar years out shall must be computed on the single life plan but subject
to the option selections provided for in section 422A.17.
In order to be entitled to the formula pension and annuity
herein provided for, the retiring employee at the time of cessation of
employment and of actual retirement shall must have attained the
age of 60 years or have been employed by the city not less than 30 years, or
meet the qualifications provided for in section 422A.16, and in addition
thereto have contributed to the retirement fund at the percentage rate
prescribed by the retirement law applicable when the salary, wages or
compensation was paid on all salaries, wages, or compensation received from the
city or from an applicable employing unit.
The years of service to be applied in the formula pension and annuity shall
must be found and determined by the retirement board, except that no
credit shall may be allowed for any year in which a back charge
is owing at time of retirement and the earnings from any year in which a back
charge is owing shall may not be used in determining the average annual
salary.
Sec. 20. Minnesota
Statutes 2004, section 422A.16, subdivision 9, is amended to read:
Subd. 9. [INCOMPETENCY
OR DEATH OF MEMBER.] Any member of the contributing class who becomes
permanently separated from the service of the city under subdivision 8, may, by
an instrument in writing, filed with the municipal employees retirement board
within 30 days after such the separation becomes permanent, elect
to allow the member contributions to such the fund to the date of
separation to remain on deposit in such the fund, and in such
the event the member shall be is entitled to receive a
retirement allowance at age 65, provided the member, or someone acting in the
member's behalf if the member be incompetent, shall must make a
written application for such the retirement allowance in the same
manner provided for in section 422A.17 and in accordance with the provisions of
section 422A.15, subdivision 1, except for determining average annual
salary. A member with more than five
calendar years of service but less than ten calendar years may select any five
calendar years of service to determine the average annual salary. A member with less than five years of
service with the city shall use all earnings to determine the average annual
salary.
If the contributing member dies before reaching the age of 65
years, or having attained the age of 65 years without having made the election
provided for herein, the net accumulated amount of deductions from the member's
salary, pay or compensation, plus interest, to the member's credit on date of
death shall be paid is payable to such the person
or persons as have been nominated by written designation filed with the
retirement board, in such the form as that the
retirement board shall require requires.
If the employee fails to make a designation, or if the person
or persons designated by such the employee predeceases such
the employee, the net accumulated credit to such the
employee's account on date of death shall be paid is payable to such
the employee's estate.
The provisions of subdivisions 4, 5, and 6 shall
also apply to any member qualifying for benefits under this subdivision, except
for purposes of this subdivision the age referred to in subdivision 4 shall
be is 65 years.
Sec. 21. Minnesota
Statutes 2004, section 490.121, subdivision 21, is amended to read:
Subd. 21. [FINAL
AVERAGE COMPENSATION.] "Final average compensation" means the total
amount of salary payable paid to a judge in the highest five
years out of the last ten years prior to before the event
of maturity of benefits termination of judicial service, divided by
five; provided, however, that if the number of years of service by
the judge equals or exceeds ten. If the
number of years of service by the judge is less than ten, but more than
five, the highest five shall years of salary must be counted,
and. If the number of years of
service by the judge is less than five, the aggregate salary in such
for the period shall of service must be divided by the
number of months in such the period and multiplied by 12.
Sec. 22. [REPEALER.]
Minnesota Statutes 2004, sections 352C.031, subdivision 3;
353.29, subdivision 2; and 353.651, subdivision 2, are repealed.
Sec. 23. [EFFECTIVE
DATE.]
This article is effective July 1, 2005.
ARTICLE
3
ALLOWABLE
SERVICE CREDIT
Section 1. [356.195]
[SERVICE CREDIT PURCHASE PROCEDURES FOR STRIKE PERIODS.]
Subdivision 1.
[COVERED PLANS.] This section applies to all defined benefit plans
specified in section 356.30, subdivision 3.
Subd. 2.
[PURCHASE PROCEDURE FOR STRIKE PERIODS.] (a) An employee covered by a
plan specified in subdivision 1 may purchase allowable service credit in the
applicable plan for any period of time during which the employee was on a
public employee strike without pay, not to exceed a period of one year, if the
employee makes a payment in lieu of salary deductions as specified in
paragraphs (b) and (c), whichever is applicable. The employing unit, at its option, may pay the employer portion
of the amount specified in paragraph (b) on behalf of its employees.
(b) If payment is received by the applicable pension plan
executive director within one year from the end of the strike, the payment
amount is equal to the applicable employee and employer contribution rates
specified in law for the applicable plan during the strike period, applied to
the employee's rate of salary in effect at the conclusion of the strike for the
period of the strike without pay, plus compound interest at a monthly rate of
0.71 percent from the last day of the strike period until the date payment is
received.
(c) If payment is received by the applicable pension fund
director after one year and before five years from the end of the strike, the
payment amount is the amount determined under section 356.551.
(d) Payments may not be made more than five years after the
end of the strike.
Sec. 2. Minnesota
Statutes 2004, 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 served as a referee in probate for all referees in probate who were in
office prior to 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 member and employer
contribution rates under section 490.123, subdivisions 1a and 1b, applied to
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.
Sec. 3. Laws 1999, chapter 222, article 16, section 16, as amended by
Laws 2002, chapter 392, article 7, section 1, and Laws 2003, First Special
Session chapter 12, article 6, section 2, and Laws 2004, chapter 267,
article 17, section 6, is amended to read:
Sec. 16. [REPEALER.]
(a) Sections 2 to 6 and 8 to 13 are repealed on May 16, 2004.
(b) Sections 1 and 7 are repealed on May 16, 2006 2007.
Sec. 4. Laws 2000,
chapter 461, article 4, section 4, as amended by Laws 2003, First Special
Session chapter 12, article 6, section 3, and Laws 2004, chapter 267, article
17, section 7, is amended to read:
Sec. 4. [EFFECTIVE
DATE; SUNSET REPEALER.]
(a) Sections 1, 2, and 3 are effective on the day
following final enactment.
(b) Sections 1, 2, and 3, are repealed on May 16, 2006 2007.
Sec. 5. [METRO TRANSIT
STRIKE PROVISION.]
Notwithstanding the payment deadline specified in Minnesota Statutes,
section 356.195, subdivision 2, paragraph (b), a Metro Transit employee covered
by the general state employees retirement plan of the Minnesota State
Retirement System who was on strike on or after January 1, 2004, and before the
effective date of this section, is authorized to make a payment under that
paragraph on or before one year after the effective date of this section.
Sec. 6. [CROSBY-IRONTON
PUBLIC SCHOOL STRIKE PROVISION.]
Notwithstanding the payment deadline specified in Minnesota
Statutes, section 356.195, subdivision 2, paragraph (b), a Crosby-Ironton
public school teacher covered by the Teachers Retirement Association who was on
strike during a period that included April 1, 2005, and before the effective
date of this section, is authorized to make a payment under that paragraph on
or before one year after the effective date of this section.
Sec. 7. [EFFECTIVE
DATE.]
(a) Sections 1 and 3 to 6 are effective the day following
final enactment.
(b) Section 2 is effective retroactively from January 1,
2005, and applies to any person who was in active service as a judge on or
after that date and applies to an authorized leave of absence that occurred
before or after that date. For a person
for whom section 2 is retroactive, the equivalent contribution payment must be
made on or before July 1, 2006.
ARTICLE
4
ACTUARIAL
AND FINANCIAL
REPORTING
CHANGES
Section 1. Minnesota
Statutes 2004, section 352.01, subdivision 12, is amended to read:
Subd. 12. [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 at a specified age with each
actuarial present value based on the appropriate mortality table adopted by the
board of directors based on the experience of the fund as
recommended by the actuary retained by the Legislative Commission on
Pensions and Retirement 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. 2. Minnesota
Statutes 2004, section 353.01, subdivision 14, is amended to read:
Subd. 14. [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 trustees based
on the experience of the fund as recommended by the actuary retained by the
Legislative Commission on Pensions and Retirement 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 2004, section 354.05, subdivision 7, is amended to read:
Subd. 7. [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 trustees based
on the experience of the association as recommended by the actuary retained by
the Legislative Commission on Pensions and Retirement 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. 4. Minnesota
Statutes 2004, section 354A.011, subdivision 3a, is amended to read:
Subd. 3a. [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 appropriate board of trustees
based on the experience of that retirement fund association as recommended by
the actuary retained by the Legislative Commission on Pensions and
Retirement 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. 5. Minnesota
Statutes 2004, section 356.20, subdivision 4, is amended to read:
Subd. 4. [CONTENTS OF
FINANCIAL REPORT.] (a) The financial report required by this section must
contain financial statements and disclosures that indicate the financial
operations and position of the retirement plan and fund. The report must conform with generally
accepted governmental accounting principles, applied on a consistent basis. The report must be audited. The report must include, as part of its
exhibits or its footnotes, an actuarial disclosure item based on the
actuarial valuation calculations prepared by the commission-retained
actuary retained under section 356.214 or by the actuary retained by the
retirement fund or plan, if applicable whichever applies,
according to applicable actuarial requirements enumerated in section 356.215,
and specified in the most recent standards for actuarial work adopted by the
Legislative Commission on Pensions and Retirement. The accrued assets, the accrued liabilities, including accrued
reserves, and the unfunded actuarial accrued liability of the fund or plan must
be disclosed. The disclosure item must
contain a declaration by the actuary retained by the Legislative Commission
on Pensions and Retirement under section 356.214 or the actuary
retained by the fund or plan, whichever applies, specifying that the required
reserves for any retirement, disability, or survivor benefits provided under a
benefit formula are computed in accordance with the entry age actuarial cost
method and in accordance with the most recent applicable standards for
actuarial work adopted by the Legislative Commission on Pensions and
Retirement.
(b) Assets of the fund or plan contained in the disclosure
item must include the following statement of the actuarial value of current
assets as defined in section 356.215, subdivision 1:
Value at cost Value at market
Cash, cash equivalents, and
short-term securities
.........
.........
Accounts receivable
.........
.........
Accrued investment income ......... .........
Fixed income investments ......... .........
Equity investments other
than real estate
.........
.........
Real estate investments ......... .........
Equipment
.........
.........
Equity Participation in
the Minnesota
postretirement investment
fund or the retirement
benefit fund
.........
.........
Other
.........
.........
Total assets
Value at cost
.........
Value at market
.........
Actuarial value of current assets
.........
(c) The unfunded actuarial accrued liability of the fund or
plan contained in the disclosure item must include the following measures of
unfunded actuarial accrued liability, using the actuarial value of
current assets:
(1) the unfunded actuarial accrued liability, determined
by subtracting the current assets and the present value of future normal costs
from the total current and expected future benefit obligations; and
(2) the unfunded pension benefit obligation, determined
by subtracting the current assets from the actuarial present value of credited
projected benefits.
If the current assets of the fund or plan exceed the actuarial
accrued liabilities, the excess must be disclosed and indicated as a surplus.
(d) The pension benefit obligations schedule included in the
disclosure must contain the following information on the benefit obligations:
(1) the pension benefit obligation, determined as the actuarial
present value of credited projected benefits on account of service rendered to
date, separately identified as follows:
(i) for annuitants;
retirement annuities;
disability benefits;
surviving spouse and child
benefits;
(ii) for former members without vested rights;
(iii) for deferred annuitants' benefits, including
any augmentation;
(iv) for active employees;
accumulated employee contributions,
including allocated investment income;
employer-financed benefits vested;
employer-financed benefits nonvested;
total pension benefit obligation; and
(2) if there are additional benefits not appropriately covered
by the foregoing items of benefit obligations, a separate identification of the
obligation.
(e) The report must contain an itemized exhibit describing
the administrative expenses of the plan, including, but not limited to, the
following items, classified on a consistent basis from year to year, and with
any further meaningful detail:
(1) personnel expenses;
(2) communication-related expenses;
(3) office building and maintenance expenses;
(4) professional services fees; and
(5) other expenses.
(f) The report must contain an itemized exhibit describing
the investment expenses of the plan, including, but not limited to, the
following items, classified on a consistent basis from year to year, and with
any further meaningful detail:
(1) internal investment-related expenses; and
(2) external investment-related expenses.
(g) Any additional statements or exhibits or more
detailed or subdivided itemization of a disclosure item that will enable the
management of the fund to portray a true interpretation of the fund's financial
condition must be included in the additional statements or exhibits.
Sec. 6. Minnesota
Statutes 2004, section 422A.01, subdivision 6, is amended to read:
Subd. 6. [PRESENT WORTH
OR PRESENT VALUE.] "Present worth" or "present value" means
that the present amount of money if increased at the applicable postretirement
or preretirement interest rate assumption specified in section 356.215,
subdivision 8, and based on the mortality table adopted by the board of
trustees based on the experience of the fund as recommended by the actuary
retained by the Legislative Commission on Pensions and Retirement under
section 356.214, and approved under section 356.215, subdivision 18, will
at retirement equal the actuarial accrued liability of the annuity already
earned.
Sec. 7. Minnesota
Statutes 2004, section 490.121, subdivision 20, is amended to read:
Subd. 20. [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 trustees
directors of the Minnesota State Retirement System based on the
experience of the fund as recommended by the commission-retained 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. 8. [EFFECTIVE
DATE.]
(a) Sections 1 to 4, 6, and 7 are effective on July 1, 2005.
(b) Section 5 is effective the day following final enactment
and applies to annual financial reporting occurring on or after June 30, 2005.
ARTICLE
5
MEMBERSHIP
INCLUSIONS
AND
EXCLUSIONS
Section 1. Minnesota
Statutes 2004, section 69.011, is amended by adding a subdivision to read:
Subd. 2c.
[INELIGIBILITY OF CERTAIN POLICE OFFICERS.] A police officer employed
by the University of Minnesota who is required by the Board of Regents to be a
member of the University of Minnesota faculty retirement plan is not eligible
to be included in any police state-aid certification under this section.
Sec. 2. Minnesota
Statutes 2004, section 352.01, subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED
EMPLOYEES.] (a) "State employee" includes:
(1) employees of the Minnesota Historical Society;
(2) employees of the State Horticultural Society;
(3) employees of the Disabled American Veterans, Department of
Minnesota, Veterans of Foreign Wars, Department of Minnesota, if employed before
July 1, 1963;
(4) employees of the Minnesota Crop Improvement Association;
(5) employees of the adjutant general who are paid from federal
funds and who are not covered by any federal civilian employees retirement
system;
(6) employees of the Minnesota State
Colleges and Universities employed under the university or college activities
program;
(7) currently contributing employees covered by the system who
are temporarily employed by the legislature during a legislative session or any
currently contributing employee employed for any special service as defined in
subdivision 2b, clause (8);
(8) employees of the Armory Building Commission;
(9) employees of the legislature appointed without a limit on
the duration of their employment and persons employed or designated by the
legislature or by a legislative committee or commission or other competent
authority to conduct a special inquiry, investigation, examination, or
installation;
(10) trainees who are employed on a full-time established
training program performing the duties of the classified position for which
they will be eligible to receive immediate appointment at the completion of the
training period;
(11) employees of the Minnesota Safety Council;
(12) any employees on authorized leave of absence from the
Transit Operating Division of the former Metropolitan Transit Commission who
are employed by the labor organization which is the exclusive bargaining agent
representing employees of the Transit Operating Division;
(13) employees of the Metropolitan Council, Metropolitan Parks
and Open Space Commission, Metropolitan Sports Facilities Commission,
Metropolitan Mosquito Control Commission, or Metropolitan Radio Board unless
excluded or covered by another public pension fund or plan under section
473.415, subdivision 3;
(14) judges of the Tax Court;
(15) personnel employed on June 30, 1992, by the University of
Minnesota in the management, operation, or maintenance of its heating plant
facilities, whose employment transfers to an employer assuming operation of the
heating plant facilities, so long as the person is employed at the University
of Minnesota heating plant by that employer or by its successor organization; and
(16) seasonal help in the classified service employed by the
Department of Revenue; and
(17) persons employed by the Department of Commerce as a
peace officer in the Insurance Fraud Prevention Division under section 45.0135
who have attained the mandatory retirement age specified in section 43A.34, subdivision
4.
(b) Employees specified in paragraph (a), clause (15), are
included employees under paragraph (a) if employer and employee contributions
are made in a timely manner in the amounts required by section 352.04. Employee contributions must be deducted from
salary. Employer contributions are the
sole obligation of the employer assuming operation of the University of
Minnesota heating plant facilities or any successor organizations to that
employer.
Sec. 3. Minnesota
Statutes 2004, section 352.91, is amended by adding a subdivision to read:
Subd. 4a.
[PROCESS FOR EVALUATING AND RECOMMENDING POTENTIAL EMPLOYMENT POSITIONS
FOR MEMBERSHIP INCLUSION.] (a) The Department of Corrections and the
Department of Human Services must establish a procedure for evaluating periodic
requests by department employees for qualification
for recommendation by the commissioner for inclusion of the employment position
in the correctional facility or human services facility in the correctional
retirement plan and for periodically determining employment positions that no
longer qualify for continued correctional retirement plan coverage.
(b) The procedure must provide for an evaluation of the
extent of the employee's working time spent in direct contact with patients or
inmates, the extent of the physical hazard that the employee is routinely
subjected to in the course of employment, and the extent of intervention
routinely expected of the employee in the event of a facility incident. The percentage of routine direct contact
with inmates or patients may not be less than 75 percent.
(c) The applicable commissioner shall notify the employee of
the determination of the appropriateness of recommending the employment
position for inclusion in the correctional retirement plan, if the evaluation
procedure results in a finding that the employee:
(1) routinely spends 75 percent of the employee's time in
direct contact with inmates or patients; and
(2) is regularly engaged in the rehabilitation, treatment,
custody, or supervision of inmates or patients.
(d) After providing the affected employee an opportunity to
dispute or clarify any evaluation determinations, if the commissioner
determines that the employment position is appropriate for inclusion in the
correctional retirement plan, the commissioner shall forward that
recommendation and supporting documentation to the chair of the Legislative
Commission on Pensions and Retirement, the chair of the State and Local
Governmental Operations Committee of the senate, the chair of the Governmental
Operations and Veterans Affairs Policy Committee of the house of
representatives, and the executive director of the Legislative Commission on
Pensions and Retirement in the form of the appropriate proposed legislation. The recommendation must be forwarded to the
legislature before January 15 for the recommendation to be considered in that
year's legislative session.
Sec. 4. Minnesota
Statutes 2004, section 352B.01, subdivision 2, is amended to read:
Subd. 2. [MEMBER.]
"Member" means:
(1) a State Patrol member currently employed after June 30,
1943, under section 299D.03 by the state, who is a peace officer under section
626.84, and whose salary or compensation is paid out of state funds;
(2) a conservation officer employed under section 97A.201,
currently employed by the state, whose salary or compensation is paid out of
state funds;
(3) a crime bureau officer who was employed by the crime bureau
and was a member of the Highway Patrolmen's retirement fund on July 1, 1978,
whether or not that person has the power of arrest by warrant after that date,
or who is employed as police personnel, with powers of arrest by warrant under
section 299C.04, and who is currently employed by the state, and whose salary
or compensation is paid out of state funds;
(4) a person who is employed by the state in the Department of
Public Safety in a data processing management position with salary or
compensation paid from state funds, who was a crime bureau officer covered by
the State Patrol retirement plan on August 15, 1987, and who was initially
hired in the data processing management position within the department during
September 1987, or January 1988, with membership continuing for the duration of
the person's employment in that position, whether or not the person has
the power of arrest by warrant after August 15, 1987;
(5) a public safety employee defined as a peace officer in
section 626.84, subdivision 1, paragraph (c), and employed with the Division of
Alcohol and Gambling Enforcement under section 299L.01; and
(6) a Fugitive Apprehension Unit
officer after October 31, 2000, employed by the Office of Special
Investigations of the Department of Corrections who is a peace officer under
section 626.84; and
(7) an employee of the Department of Commerce defined as a
peace officer in section 626.84, subdivision 1, paragraph (c), who is employed
by the Division of Insurance Fraud Prevention under section 45.0135 after
January 1, 2005, and who has not attained the mandatory retirement age
specified in section 43A.34, subdivision 4.
Sec. 5. Minnesota
Statutes 2004, section 353.01, subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL
SUBDIVISION.] (a) "Governmental subdivision" means a county, city,
town, school district within this state, or a department or unit of state
government, or any public body whose revenues are derived from taxation, fees,
assessments or from other sources.
(b) Governmental subdivision also means the Public Employees
Retirement Association, the League of Minnesota Cities, the Association of
Metropolitan Municipalities, public hospitals owned or operated by, or an
integral part of, a governmental subdivision or governmental subdivisions, the
Association of Minnesota Counties, the Metropolitan Intercounty Association,
the Minnesota Municipal Utilities Association, the Metropolitan Airports
Commission, the University of Minnesota with respect to police officers
covered by the public employees police and fire retirement plan, the
Minneapolis Employees Retirement Fund for employment initially commenced after
June 30, 1979, the Range Association of Municipalities and Schools, soil
and water conservation districts, economic development authorities created or
operating under sections 469.090 to 469.108, the Port Authority of the city of
St. Paul, the Spring Lake Park Fire Department, incorporated, the Lake
Johanna Volunteer Fire Department, incorporated, the Red Wing Environmental
Learning Center, and the Dakota County Agricultural Society.
(c) Governmental subdivision does not mean any municipal
housing and redevelopment authority organized under the provisions of sections
469.001 to 469.047; or any port authority organized under sections 469.048 to
469.089 other than the Port Authority of the city of St. Paul; or any hospital
district organized or reorganized prior to July 1, 1975, under sections 447.31
to 447.37 or the successor of the district, nor the Minneapolis Community
Development Agency.
Sec. 6. Minnesota
Statutes 2004, section 353.64, is amended by adding a subdivision to read:
Subd. 6a.
[UNIVERSITY OF MINNESOTA POLICE OFFICERS; EXCLUSION.] (a) Unless
paragraph (b) applies, a person who is employed as a peace officer by the
University of Minnesota at any campus or facility of the university, who is
required by the university to be and is licensed as a peace officer by the
Minnesota Peace Officer Standards and Training Board under sections 626.84 to
626.863, and who has the full power of arrest is a member of the public
employees police and fire retirement plan.
(b) A police officer employed by the University of Minnesota
who is required by the Board of Regents to contribute to the University of
Minnesota faculty retirement plan is not eligible to be a member of the public
employees police and fire retirement plan.
Sec. 7. [EFFECTIVE
DATE.]
(a) Sections 1, 3, 5, and 6 are effective July 1, 2005.
(b) Sections 2 and 4 are effective retroactively from
January 1, 2005.
ARTICLE
6
RETIREMENT
CONTRIBUTIONS
Section 1. Minnesota
Statutes 2004, section 353.28, subdivision 5, is amended to read:
Subd. 5. [INTEREST CHARGES
CHARGEABLE ON AMOUNTS DUE.] Any amount due under this section or section
353.27, subdivision 4, is payable with interest at an annual compound
rate of 8.5 percent compounded annually from the date due until the date
payment is received by the association, with a minimum interest charge
of $10. Interest for past due
payments of excess police state aid under section 69.031, subdivision 5, must
be charged at an annual rate of 8.5 percent compounded annually.
Sec. 2. Minnesota
Statutes 2004, section 353.28, subdivision 6, is amended to read:
Subd. 6. [FAILURE TO
PAY COLLECTION OF UNPAID AMOUNTS.] (a) If the a
governmental subdivision which receives the direct proceeds of property
taxation fails to pay amounts an amount due under chapters
chapter 353, 353A, 353B, 353C, and or 353D or fails to
make payments of excess police state aid to the public employees police and
fire fund under section 69.031, subdivision 5, the executive director shall
certify those amounts 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 amounts the amount to the applicable
county auditor for collection. The
county auditor shall collect such amounts the amount out of the
revenue of the governmental subdivision, or shall add them the amount
to the levy of the governmental subdivision and make payment directly to the
association. This tax shall 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.
Sec. 3. [EFFECTIVE
DATE.]
Sections 1 and 2 are effective July 1, 2005.
ARTICLE
7
PENSION
BENEFITS UPON PRIVATIZATION
Section 1. Minnesota
Statutes 2004, section 353F.02, subdivision 4, is amended to read:
Subd. 4. [MEDICAL
FACILITY.] "Medical facility" means:
(1) Bridges Medical Services;
(2) the Fair Oaks Lodge, Wadena;
(2) (3) the Glencoe Area Health Center;
(3) (4) the Hutchinson Area Health Care;
(5) the Kanabec Hospital;
(4) (6) the Luverne Public Hospital;
(7) the Northfield Hospital;
(5) (8) the RenVilla Nursing Home;
(6) (9) the Renville County Hospital in Olivia;
(7) (10) the St. Peter Community Healthcare
Center; and
(8) (11) the Waconia-Ridgeview Medical Center.
Sec. 2. Laws 2004,
chapter 267, article 12, section 4, is amended to read:
Sec. 4. [EFFECTIVE
DATE.]
(a) Section 1, relating to the Fair Oaks Lodge, Wadena, is
effective upon the latter of:
(1) the day after the governing body of Todd County and its
chief clerical officer timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3; and
(2) the day after the governing body of Wadena County and its
chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
(b) Section 1, relating to the RenVilla Nursing Home, is
effective upon the latter of:
(1) the day after the governing body of the city of Renville
and its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3, except that the certificate
of approval must be filed before January 1, 2006; and
(2) the first day of the month next following certification to
the governing body of the city of Renville by the executive director of the
Public Employees Retirement Association that the actuarial accrued liability of
the special benefit coverage proposed for extension to the privatized RenVilla
Nursing Home employees under section 1 does not exceed the actuarial gain
otherwise to be accrued by the Public Employees Retirement Association, as
calculated by the consulting actuary retained by the Legislative Commission on
Pensions and Retirement, or the actuary retained under Minnesota Statutes,
section 356.214, whichever is applicable.
(c) The cost of the actuarial calculations must be borne by the
city of Renville or the purchaser of the RenVilla Nursing Home.
(d) Section 1, relating to the St. Peter Community Healthcare
Center, is effective upon the latter of:
(1) the day after the governing body of the city of St. Peter
and its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month next following certification to
the governing body of the city of St. Peter 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 St. Peter
Community Healthcare Center employees under section 1 does not exceed the
actuarial gain otherwise to be accrued by the Public Employees Retirement
Association, as calculated by the consulting actuary retained by the
Legislative Commission on Pensions and Retirement, or the actuary retained
under Minnesota Statutes, section 356.214, whichever is applicable.
(e) The cost of the actuarial calculations must be borne by
the city of St. Peter or the purchaser of the St. Peter Community Healthcare
Center.
(f) If the required actions under paragraphs (b) and (c) occur,
section 1 applies retroactively to the RenVilla Nursing Home as of the date of
privatization.
(g) If the required actions under paragraph (a) occur, section
1 applies retroactively to Fair Oaks Lodge, Wadena, as of January 1, 2004.
(h) Sections 2 and 3 are effective on the day following final
enactment.
Sec. 3. [EFFECTIVE
DATE.]
(a) Section 1, relating to Bridges Medical Services, is
effective upon the later of:
(1) the day after the governing body of the city of Ada and
its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month next following certification
to the governing body of the city of Ada 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 Bridges
Medical Services 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.
(b) Section 1, relating to the Hutchinson Area Health Care,
is effective upon the later of:
(1) the day after the governing body of the city of
Hutchinson and its chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month next following certification
to the governing body of the city of Hutchinson 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 Hutchinson Area Health Care employees under section 1 does not
exceed the actuarial gain otherwise to be accrued by the Public Employees
Retirement Association, as calculated by the consulting actuary retained by the
Legislative Commission on Pensions and Retirement.
(c) Section 1, relating to the Northfield Hospital, is
effective upon the later of:
(1) the day after the governing body of the city of
Northfield and its chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month next following certification
to the governing body of the city of Northfield 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 Northfield 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 by the
Legislative Commission on Pensions and Retirement.
(d) The cost of the actuarial calculations must be borne by
the facility, the city in which the facility is located, or the purchaser of
the facility.
(e) If the required actions in paragraphs (a), (b), or (c)
and (d) occur, section 1 applies retroactively to the date of privatization.
(f) Section 2 is effective the day following final
enactment.
ARTICLE 8
FIRST
CLASS CITY TEACHER
RETIREMENT
FUND ASSOCIATIONS
Section 1. Minnesota
Statutes 2004, section 354A.021, is amended by adding a subdivision to read:
Subd. 9.
[UPDATED ARTICLES OF INCORPORATION AND BYLAWS; FILING.] (a) On or
before July 1, 2006, and within six months of the date of the
approval of any amendment to the articles of incorporation or bylaws, the chief
administrative officer of each first class city teacher retirement fund
association shall prepare and publish an updated compilation of the articles of
incorporation and the bylaws of the association.
(b) The chief administrative officer of the first class city
teacher retirement fund association must certify the accuracy and the
completeness of the compilation.
(c) The compilation of the articles of incorporation and
bylaws of a first class city teacher retirement fund association must contain
an index.
(d) The compilation must be made available to association
members and other interested parties.
The association may charge a fee for a copy that reflects the price of
printing or otherwise producing the copy.
Two copies of the compilation must be filed, without charge, by each
retirement fund association with the Legislation Commission on Pensions and
Retirement, the Legislative Reference Library, the state auditor, the
commissioner of education, the chancellor of the Minnesota State Colleges and
Universities system, and the superintendent of the applicable school district.
(e) A first class city teacher retirement fund association
may contract with the revisor of statutes for the preparation of the
compilation.
(f) If a first class city teacher retirement fund
association makes an updated copy of its articles of incorporation and bylaws
available on its Web site, the retirement fund association is not obligated to
file a hard copy of the documents under paragraph (d) for the applicable filing
period.
Sec. 2. [EFFECTIVE
DATE.]
Section 1 is effective July 1, 2005.
ARTICLE
9
MINNESOTA
STATE COLLEGES AND UNIVERSITIES
INDIVIDUAL
RETIREMENT ACCOUNT PLAN CHANGES
Section 1. Minnesota
Statutes 2004, section 354B.25, subdivision 2, is amended to read:
Subd. 2. [INVESTMENT
OPTIONS.] (a) The plan administrator shall arrange for the purchase of
investment products.
(b) The investment products must be purchased with
contributions under section 354B.23 or with money or assets otherwise provided
by law by authority of the board.
(c) Various investment accounts offered through the
Minnesota supplemental investment fund established under section 11A.17 and
administered by the State Board of Investment is one of the may be
included as investment products for the individual retirement account
plan. Direct access must also be
provided to lower expense and no-load mutual funds, as those terms are defined
by the federal Securities and Exchange Commission, including stock funds, bond
funds, and balanced funds. Other
investment products or combination of investment products which may be included
are:
(1) savings accounts at federally insured financial
institutions;
(2) life insurance contracts, fixed and variable annuity
contracts from companies that are subject to regulation by the commerce
commissioner;
(3) investment options from open-ended investment companies
registered under the federal Investment Company Act of 1940, United States
Code, title 15, sections 80a-1 to 80a-64;
(4) investment options from a firm that is a registered
investment advisor under the federal Investment Advisers Act of 1940, United
States Code, title 15, sections 80b-1 to 80b-21; and
(5) investment options of a bank as defined in United States Code,
title 15, section 80b-2, subsection (a), paragraph 2, or a bank holding company
as defined in the Bank Holding Company Act of 1956, United States Code, title
12, section 1841, subsection (a), paragraph (1).
Sec. 2. [EFFECTIVE
DATE.]
Section 1 is effective the day following final enactment.
ARTICLE
10
SUPPLEMENTAL
RETIREMENT PLANS
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 at the date of retirement or the termination of
active employment.
Sec. 2. [EFFECTIVE
DATE.]
Section 1 is effective the day following final enactment.
ARTICLE
11
VOLUNTEER
FIREFIGHTER RELIEF
ASSOCIATION
CHANGES
Section 1. Minnesota
Statutes 2004, section 69.051, subdivision 1, is amended to read:
Subdivision 1.
[FINANCIAL REPORT AND AUDIT.] The board of each salaried firefighters
relief association, police relief association, and volunteer firefighters
relief association as defined in section 424A.001, subdivision 4, with assets
of at least $200,000 or liabilities of at least $200,000 in the prior year
or in any previous year, according to the most recent applicable
actuarial valuation or financial report if no valuation is required, shall:
(1) prepare a financial report covering the special and
general funds of the relief association for the preceding fiscal year on a form
prescribed by the state auditor. The
financial report shall must contain financial statements and
disclosures which present the true financial condition of the relief association
and the results of relief association operations in conformity with generally
accepted accounting principles and in compliance with the regulatory, financing
and funding provisions of this chapter and any other applicable laws. The financial report shall must
be countersigned by the municipal clerk or clerk-treasurer of the municipality
in which the relief association is located if the relief association is a
firefighters relief association which is directly associated with a municipal
fire department or is a police relief association, or countersigned by the
secretary of the independent nonprofit firefighting corporation and by the
municipal clerk or clerk-treasurer of the largest municipality in population
which contracts with the independent nonprofit firefighting corporation if the volunteer
firefighter relief association is a subsidiary of an independent nonprofit
firefighting corporation;
(2) file the financial report in its office for public
inspection and present it to the city council after the close of the fiscal
year. One copy of the financial report shall
must be furnished to the state auditor after the close of the fiscal
year; and
(3) submit to the state auditor audited financial statements
which have been attested to by a certified public accountant, public
accountant, or the state auditor within 180 days after the close of the fiscal
year. The state auditor may accept this
report in lieu of the report required in clause (2).
Sec. 2. Minnesota
Statutes 2004, section 69.051, subdivision 1a, is amended to read:
Subd. 1a. [FINANCIAL
STATEMENT.] (a) The board of each volunteer firefighters relief association, as
defined in section 424A.001, subdivision 4, with assets of less than
$200,000 and liabilities less than $200,000, according to the most recent
financial report, shall that is not required to file a financial report
and audit under subdivision 1 must prepare a detailed statement of the
financial affairs for the preceding fiscal year of the relief association's
special and general funds in the style and form prescribed by the state
auditor. The detailed statement must
show the sources and amounts of all money received; all disbursements, accounts
payable and accounts receivable; the amount of money remaining in the treasury;
total assets including a listing of all investments; the accrued liabilities;
and all items necessary to show accurately the revenues and expenditures and
financial position of the relief association.
(b) The detailed financial statement required under paragraph
(a) must be certified by an independent public accountant or auditor or by the
auditor or accountant who regularly examines or audits the financial
transactions of the municipality. In
addition to certifying the financial condition of the special and general funds
of the relief association, the accountant or auditor conducting the examination
shall give an opinion as to the condition of the special and general funds of
the relief association, and shall comment upon any exceptions to the report. The independent accountant or auditor shall
must have at least five years of public accounting, auditing, or similar
experience, and shall must not be an active, inactive, or retired
member of the relief association or the fire or police department.
(c) The detailed statement required under paragraph (a) must be
countersigned by the municipal clerk or clerk-treasurer of the municipality,
or, where applicable, by the secretary of the independent nonprofit
firefighting corporation and by the municipal clerk or clerk-treasurer of the
largest municipality in population which contracts with the independent
nonprofit firefighting corporation if the relief association is a subsidiary of
an independent nonprofit firefighting corporation.
(d) The volunteer firefighters' relief association board must
file the detailed statement required under paragraph (a) in the relief
association office for public inspection and present it to the city council
within 45 days after the close of the fiscal year, and must submit a copy of
the detailed statement to the state auditor within 90 days of the close of the
fiscal year.
Sec. 3. Minnesota Statutes 2004, section 69.771, is amended to read:
69.771 [VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION FINANCING
GUIDELINES ACT; APPLICATION.]
Subdivision 1. [COVERED
RELIEF ASSOCIATIONS.] The applicable provisions of sections 69.771 to 69.776 shall
apply to any firefighters' relief association other than a relief association
enumerated in section 69.77, subdivision 1a, which is organized under any laws
of this state, which is composed of volunteer firefighters or is
composed partially of volunteer firefighters and partially of salaried
firefighters with retirement coverage provided by the public employees police
and fire fund and which, in either case, operates subject to the service
pension minimum requirements for entitlement and maximums contained in section
424A.02, or subject to a special law modifying those requirements or
maximums.
Subd. 2. [AUTHORIZED
EMPLOYER SUPPORT FOR A RELIEF ASSOCIATION.] Notwithstanding any law to the
contrary, a municipality may lawfully contribute public funds, including the
transfer of any applicable fire state aid, or may levy property
taxes for the support of a firefighters' relief association specified in
subdivision 1, however organized, which provides retirement coverage or pays a
service pension to retired firefighter or a retirement benefit to a disabled
firefighter or a surviving dependent of either an active or retired firefighter
for the operation and maintenance of the relief association only if the
municipality and the relief association both comply with the applicable
provisions of sections 69.771 to 69.776.
Subd. 3. [REMEDY FOR
NONCOMPLIANCE; DETERMINATION.] Any (a) A municipality in which
there exists a firefighters' relief association as specified in subdivision 1
which does not comply with the applicable provisions of sections 69.771 to
69.776 or the provisions of any applicable special law relating to the funding
or financing of the association shall does not qualify initially
to receive, or be and is not entitled subsequently to retain,
fire state aid pursuant to under sections 69.011 to 69.051 until
the reason for the disqualification specified by the state auditor
is remedied, whereupon the municipality or relief association, if otherwise
qualified, shall be is entitled to again receive fire state aid
for the year occurring immediately subsequent to the year in which the
disqualification is remedied.
(b) The state auditor shall determine if a municipality
to which a firefighters' relief association is directly associated or a
firefighters' relief association fails to comply with the provisions of
sections 69.771 to 69.776 or the funding or financing provisions of any applicable
special law based upon the information contained in the annual financial report
of the firefighters' relief association required pursuant to under
section 69.051., the actuarial valuation of the relief association,
if applicable, the relief association officers' financial requirements of the
relief association and minimum municipal obligation determination documentation
under section 69.772, subdivisions 3 and 4; 69.773, subdivisions 4 and 5; or
69.774, subdivision 2, if requested to be filed by the state auditor, the
applicable municipal or nonprofit firefighting corporation budget, if requested
to be filed by the state auditor, and any other relevant documents or reports
obtained by the state auditor.
(c) The municipality or nonprofit firefighting corporation
and the associated relief association are not eligible to receive or to retain
fire state aid if:
(1) the relief association fails to prepare or to file the
financial report or financial statement under section 69.051;
(2) the relief association treasurer is not bonded in the
manner and in the amount required by section 69.051, subdivision 2;
(3) the relief association officers fail to determine or
improperly determine the accrued liability and the annual accruing liability of
the relief association under section 69.772, subdivisions 2, 2a, and 3,
paragraph (c), clause (2), if applicable;
(4) if applicable, the relief
association officers fail to obtain and file a required actuarial valuation or
the officers file an actuarial valuation that does not contain the special fund
actuarial liability calculated under the entry age normal actuarial cost
method, the special fund current assets, the special fund unfunded actuarial
accrued liability, the special fund normal cost under the entry age normal
actuarial cost method, the amortization requirement for the special fund
unfunded actuarial accrued liability by the applicable target date, a summary
of the applicable benefit plan, a summary of the membership of the relief
association, a summary of the actuarial assumptions used in preparing the
valuation, and a signed statement by the actuary attesting to its results and
certifying to the qualifications of the actuary as an approved actuary under
section 356.215, subdivision 1, paragraph (c);
(5) the municipality failed to provide a municipal
contribution, or the nonprofit firefighting corporation failed to provide a
corporate contribution, in the amount equal to the minimum municipal obligation
if the relief association is governed under section 69.772, or the amount
necessary, when added to the fire state aid actually received in the plan year
in question, to at least equal in total the calculated annual financial
requirements of the special fund of the relief association if the relief association
is governed under section 69.773, and, if the municipal or corporate
contribution is deficient, the municipality failed to include the minimum
municipal obligation certified under section 69.772, subdivision 3, or 69.773,
subdivision 5, in its budget and tax levy or the nonprofit firefighting
corporation failed to include the minimum corporate obligation certified under
section 69.774, subdivision 2, in the corporate budget;
(6) the relief association did not receive municipal
ratification for the most recent plan amendment when municipal ratification was
required under section 69.772, subdivision 6; 69.773, subdivision 6; or
424A.02, subdivision 10;
(7) the relief association invested special fund assets in
an investment security that is not authorized under section 69.775;
(8) the relief association had an administrative expense
that is not authorized under section 69.80 or 424A.05, subdivision 3, or the
municipality had an expenditure that is not authorized under section 424A.08;
(9) the relief association officers fail to provide a
complete and accurate public pension plan investment portfolio and performance
disclosure under section 356.219;
(10) the relief association fails to obtain the
acknowledgment from a broker of the statement of investment restrictions under
section 356A.06, subdivision 8b;
(11) the relief association officers permitted to occur a
prohibited transaction under section 356A.06, subdivision 9, or 424A.001,
subdivision 7, or failed to undertake correction of a prohibited transaction
that did occur; or
(12) the relief association pays a defined benefit service
pension in an amount that is in excess of the applicable service pension
maximum under section 424A.02, subdivision 3.
Sec. 4. Minnesota
Statutes 2004, section 69.772, subdivision 3, is amended to read:
Subd. 3. [FINANCIAL
REQUIREMENTS OF RELIEF ASSOCIATION; MINIMUM OBLIGATION OF MUNICIPALITY.] (a)
During the month of July, the officers of the relief association shall
determine the overall funding balance of the special fund for the current
calendar year, the financial requirements of the special fund for the following
calendar year and the minimum obligation of the municipality with respect to
the special fund for the following calendar year in accordance with the
requirements of this subdivision.
(1) (b) The overall funding balance of the
special fund for the current calendar year shall must be
determined in the following manner:
(a) (1) The total
accrued liability of the special fund for all active and deferred members of
the relief association as of December 31 of the current year shall must
be calculated pursuant to under subdivisions 2 and 2a, if
applicable.
(b) (2) The total present assets of the special
fund projected to December 31 of the current year, including receipts by and
disbursements from the special fund anticipated to occur on or before December
31 shall, must be calculated.
To the extent possible, for those assets for which a market value is
readily ascertainable, the current market value as of the date of the
calculation for those assets shall must be utilized in making
this calculation. For any asset for
which no market value is readily ascertainable, the cost value or the book
value, whichever is applicable, shall must be utilized in making
this calculation.
(c) (3) The amount of the total present assets of
the special fund calculated pursuant to under clause (b) shall
(2) must be subtracted from the amount of the total accrued liability of
the special fund calculated pursuant to under clause (a) (1). If the amount of total present assets
exceeds the amount of the total accrued liability, then the special fund shall
be is considered to have a surplus over full funding. If the amount of the total present assets is
less than the amount of the total accrued liability, then the special fund shall
be is considered to have a deficit from full funding. If the amount of total present assets is
equal to the amount of the total accrued liability, then the special fund shall
be is considered to be fully funded.
(2) (c) The financial requirements of the special
fund for the following calendar year shall must be determined in
the following manner:
(a) (1) The total accrued liability of the
special fund for all active and deferred members of the relief association as
of December 31 of the calendar year next following the current calendar year shall
must be calculated pursuant to under subdivisions 2 and
2a, if applicable.
(b) (2) The increase in the total accrued liability
of the special fund for the following calendar year over the total accrued
liability of the special fund for the current year shall must be
calculated.
(c) (3) The amount of anticipated future
administrative expenses of the special fund shall must be
calculated by multiplying the dollar amount of the administrative expenses of
the special fund for the most recent prior calendar year by the factor
of 1.035.
(d) (4) If the special fund is fully funded, the
financial requirement requirements of the special fund for the
following calendar year shall be are the figure which
represents the increase in the total accrued liability of the special
fund as amounts calculated pursuant to subclause (b) under
clauses (2) and (3).
(e) (5) If the special fund has a deficit from
full funding, the financial requirements of the special fund for the following
calendar year shall be are the financial requirements of the
special fund calculated as though the special fund were fully funded pursuant
to subclause (d) under clause (4) plus an amount equal to one-tenth
of the original amount of the deficit from full funding of the special
fund as determined pursuant to this section for the calendar year 1971 until
that deficit from full funding is fully retired, and plus an amount equal to
one-tenth of the increase in the deficit from full funding of the special fund
under clause (2) resulting either from an increase in the amount
of the service pension accruing after December 31, 1971 occurring in
the last ten years or from a net annual investment loss occurring during the
last ten years until each increase in the deficit from full funding is
fully retired. The annual
amortization contribution under this clause may not exceed the amount of the
deficit from full funding.
(f) (6) If the special fund has a surplus over
full funding, the financial requirements of the special fund for the following
calendar year shall be are the financial requirements of the
special fund calculated as though the special fund were fully funded pursuant
to subclause (d) under clause (4) reduced by an amount equal to
one-tenth of the amount of the surplus over full funding of the special fund.
(3) (d) The minimum
obligation of the municipality with respect to the special fund shall be
is the financial requirements of the special fund reduced by the amount
of any fire state aid payable pursuant to under sections 69.011
to 69.051 reasonably anticipated to be received by the municipality for
transmittal to the special fund during the following calendar year, an amount
of interest on the assets of the special fund projected to the beginning of the
following calendar year calculated at the rate of five percent per annum, and
the amount of any anticipated contributions to the special fund required
by the relief association bylaws from the active members of the relief
association reasonably anticipated to be received during the following
calendar year. A reasonable amount
of anticipated fire state aid is an amount that does not exceed the fire state
aid actually received in the prior year multiplied by the factor 1.035.
Sec. 5. Minnesota
Statutes 2004, section 69.772, subdivision 4, is amended to read:
Subd. 4. [CERTIFICATION
OF FINANCIAL REQUIREMENTS AND MINIMUM MUNICIPAL OBLIGATION; LEVY.] (a) The
officers of the relief association shall certify the financial requirements of
the special fund of the relief association and the minimum obligation of the
municipality with respect to the special fund of the relief association as
determined pursuant to under subdivision 3 to the governing body
of the municipality on or before August 1 of each year. The financial requirements of the relief
association and the minimum municipal obligation must be included in the
financial report or financial statement under section 69.051.
(b) The municipality shall provide for at least the
minimum obligation of the municipality with respect to the special fund of the
relief association by tax levy or from any other source of public revenue.
(c) The municipality may levy taxes for the payment of
the minimum municipal obligation without any limitation as to rate or amount
and irrespective of any limitations imposed by other provisions of law upon the
rate or amount of taxation until the balance of the special fund or any fund of
the relief association has attained a specified level. In addition, any taxes levied pursuant to
under this section shall must not cause the amount or rate
of any other taxes levied in that year or to be levied in a subsequent year by
the municipality which are subject to a limitation as to rate or amount to be
reduced.
(d) If the municipality does not include the full amount
of the minimum municipal obligations in its levy for any year, the officers of
the relief association shall certify that amount to the county auditor, who
shall spread a levy in the amount of the certified minimum municipal
obligation on the taxable property of the municipality.
(e) If the state auditor determines that a municipal
contribution actually made in a plan year was insufficient under section
69.771, subdivision 3, paragraph (c), clause (5), the state auditor may request
a copy of the certifications under this subdivision from the relief association
or from the city. The relief
association or the city, whichever applies, must provide the certifications
within 14 days of the date of the request from the state auditor.
Sec. 6. Minnesota
Statutes 2004, section 69.773, subdivision 4, is amended to read:
Subd. 4. [FINANCIAL
REQUIREMENTS OF SPECIAL FUND.] Prior to (a) On or before August 1
of each year, the officers of the relief association shall determine the
financial requirements of the special fund of the relief association in
accordance with the requirements of this subdivision.
(b) The financial requirements of the relief association
shall must be based on the most recent actuarial valuation of the
special fund prepared in accordance with subdivision 2. If the relief association has an unfunded
actuarial accrued liability as reported in the most recent actuarial valuation,
the financial requirements shall must be determined by adding the
figures calculated pursuant to under paragraph (d), clauses (a)
(1), (b) (2), and (c) (3). If the relief association does not have an
unfunded actuarial accrued liability as reported in the most recent actuarial
valuation, the financial requirements shall must be an amount
equal to the figure calculated pursuant to under paragraph (d),
clauses (a) (1) and (b) (2), reduced by an amount
equal to one-tenth of the amount of any assets in excess of the actuarial
accrued liability of the relief association.
(c) The determination of whether or not the relief
association has an unfunded actuarial accrued liability shall must
be based on the current market value of assets for which a market value is
readily ascertainable and the cost or book value, whichever is applicable, for
assets for which no market value is readily ascertainable.
(a) (d) The components of the financial requirements
of the relief association are the following:
(1) The normal level cost requirement for the following
year, expressed as a dollar amount, shall be is the figure for
the normal level cost of the relief association as reported in the actuarial
valuation.
(b) (2) The amount of anticipated future
administrative expenses of the special fund shall must be
calculated by multiplying the dollar amount of the administrative expenses of
the special fund for the most recent prior calendar year by the factor
of 1.035.
(c) (3) The amortization contribution requirement
to retire the current unfunded actuarial accrued liability by the established
date for full funding shall be is the figure for the amortization
contribution as reported in the actuarial valuation. If there has not been a change in the actuarial assumptions used
for calculating the actuarial accrued liability of the special fund, a change
in the bylaws of the relief association governing the service pensions,
retirement benefits, or both, payable from the special fund, or a
change in the actuarial cost method used to value all or a portion of the
special fund which change or changes, which by themselves, without
inclusion of any other items of increase or decrease, produce a net increase in
the unfunded actuarial accrued liability of the special fund since December
31, 1970, the established date for full funding shall be is the
December 31, 1990 occurring ten years later. If there has been a change in the actuarial
assumptions used for calculating the actuarial accrued liability of the special
fund, a change in the bylaws of the relief association governing the service
pensions, retirement benefits, or both payable from the special fund or a
change in the actuarial cost method used to value all or a portion of
the special fund and the change or changes, by themselves and without
inclusion of any other items of increase or decrease, produce a net
increase in the unfunded actuarial accrued liability of the special fund since
December 31, 1970, but prior to January 1, 1979 within the
past 20 years, the established date for full funding shall be December
31, 1998, and if there has been a change since December 31, 1978, the
established date for full funding shall must be determined using the
following procedure:
(i) the unfunded actuarial accrued liability of the special
fund attributable to experience losses that have occurred since the most recent
prior actuarial valuation must be determined and the level annual dollar
contribution needed to amortize the experience loss over a period of ten years
ending on the December 31 occurring ten years later must be calculated;
(ii) the unfunded actuarial accrued liability of the
special fund shall must be determined in accordance with the
provisions governing service pensions, retirement benefits, and actuarial
assumptions in effect before an applicable change;
(ii) (iii) the level annual dollar contribution
needed to amortize this unfunded actuarial accrued liability amount by the date
for full funding in effect prior to before the change shall
must be calculated using the interest assumption specified in section
356.215, subdivision 8, in effect before any applicable change;
(iii) (iv) the unfunded actuarial accrued
liability of the special fund shall must be determined in
accordance with any new provisions governing service pensions, retirement
benefits, and actuarial assumptions and the remaining provisions governing
service pensions, retirement benefits, and actuarial assumptions in effect
before an applicable change;
(iv) (v) the level annual dollar contribution
needed to amortize the difference between the unfunded actuarial accrued
liability amount calculated pursuant to subclause (i) under item (ii)
and the unfunded actuarial accrued liability amount calculated pursuant
to subclause (iii) under item (iv) over a period of 20 years
starting December 31 of the year in which the change is effective shall must
be calculated using the interest assumption specified in section 356.215,
subdivision 8, in effect after any applicable change;
(v) (vi) the annual amortization contribution
calculated pursuant to subclause (iv) shall under item (v) must
be added to the annual amortization contribution calculated pursuant to
subclause (ii) under items (i) and (iii);
(vi) (vii) the period in which the unfunded
actuarial accrued liability amount determined in subclause (iii) item
(iv) will be amortized by the total annual amortization contribution
computed pursuant to subclause (v) shall under item (vi) must be
calculated using the interest assumption specified in section 356.215,
subdivision 8, in effect after any applicable change, rounded to the nearest
integral number of years, but which shall must not exceed a
period of 20 years from the end of the year in which the determination of the
date for full funding using this procedure is made and which shall must
not be less than the period of years beginning in the year in which the
determination of the date for full funding using this procedure is made and
ending by the date for full funding in effect before the change;
(vii) (viii) the period determined pursuant to
subclause (vi) shall under item (vii) must be added to the date as
of which the actuarial valuation was prepared and the resulting date shall
be is the new date for full funding.
Sec. 7. Minnesota
Statutes 2004, section 69.773, subdivision 5, is amended to read:
Subd. 5. [MINIMUM
MUNICIPAL OBLIGATION.] (a) The officers of the relief association shall
determine the minimum obligation of the municipality with respect to the
special fund of the relief association for the following calendar year prior
to on or before August 1 of each year in accordance with the
requirements of this subdivision.
(b) The minimum obligation of the municipality with
respect to the special fund shall be is an amount equal to the
financial requirements of the special fund of the relief association determined
pursuant to under subdivision 4, reduced by the estimated amount
of any fire state aid payable pursuant to under sections 69.011
to 69.051 reasonably anticipated to be received by the municipality for
transmittal to the special fund of the relief association during the following
year and the amount of any anticipated contributions to the special fund required
by the relief association bylaws from the active members of the relief
association reasonably anticipated to be received during the following
calendar year. A reasonable amount
of anticipated fire state aid is an amount that does not exceed the fire state
aid actually received in the prior year multiplied by the factor 1.035.
(c) The officers of the relief association shall certify
the financial requirements of the special fund of the relief association and
the minimum obligation of the municipality with respect to the special fund of
the relief association as determined pursuant to under
subdivision 4 and this subdivision to the governing body of the municipality by
August 1 of each year. The financial
requirements of the relief association and the minimum municipal obligation
must be included in the financial report or financial statement under section
69.051.
(d) The municipality shall provide for at least the
minimum obligation of the municipality with respect to the special fund of the
relief association by tax levy or from any other source of public revenue. The municipality may levy taxes for the
payment of the minimum municipal obligation without any limitation as to rate
or amount and irrespective of any limitations imposed by other provisions of
law or charter upon the rate or amount of taxation until the balance of the
special fund or any fund of the relief association has attained a specified
level. In addition, any taxes levied pursuant
to under this section shall must not cause the amount
or rate of any other taxes levied in that year or to be levied in a subsequent
year by the municipality which are subject to a limitation as to rate or amount
to be reduced.
(e) If the municipality does not include the full amount
of the minimum municipal obligation in its levy for any year, the officers of
the relief association shall certify that amount to the county auditor, who
shall spread a levy in the amount of the minimum municipal obligation on the
taxable property of the municipality.
(f) If the state auditor determines that a municipal
contribution actually made in a plan year was insufficient under section
69.771, subdivision 3, paragraph (c), clause (5), the state auditor may request
from the relief association or from the city a copy of the certifications under
this subdivision. The relief
association or the city, whichever applies, must provide the certifications
within 14 days of the date of the request from the state auditor.
Sec. 8. Minnesota
Statutes 2004, section 69.775, is amended to read:
69.775 [INVESTMENTS.]
(a) The special fund assets of the a
relief associations association governed by sections 69.771 to
69.776 must be invested in securities that are authorized investments under
section 356A.06, subdivision 6 or 7.
(b) Notwithstanding the foregoing, up to 75 percent of
the market value of the assets of the special fund, not including any
money market mutual funds, may be invested in 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.
(c) Securities held by the associations before June 2,
1989, that do not meet the requirements of this section may be retained after that
date if they were proper investments for the association on that date.
(d) 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.
(e) 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.
(f) 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. 9. Minnesota
Statutes 2004, 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
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 (g) (h),
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 (g) (h).
(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 the New York Stock
Exchange or the American Stock Exchange 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, as
adjusted for realized profits 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 subdivision 6 paragraph (h);
(2) investments must not exceed five percent of the total
outstanding shares of any one corporation.
(g) [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.
(h) [OTHER
INVESTMENTS.] (1) In addition to the investments authorized in paragraphs (b)
to (f) (g), 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, 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;
(iv) resource investments through limited partnerships, private
placements, and corporations; and
(v) international 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 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 state board 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. 10. Minnesota
Statutes 2004, section 424A.02, subdivision 3, is amended to read:
Subd. 3. [FLEXIBLE
SERVICE PENSION MAXIMUMS.] (a) Annually on or before August 1 as part of the
certification of the financial requirements and minimum municipal obligation
determined under section 69.772, subdivision 4, or 69.773, subdivision 5, as
applicable, the secretary or some other official of the relief association
designated in the bylaws of each relief association shall calculate and certify
to the governing body of the applicable qualified municipality the average
amount of available financing per active covered firefighter for the most
recent three-year period. The amount of
available financing shall include any amounts of fire state aid received or
receivable by the relief association, any amounts of municipal contributions to
the relief association raised from levies on real estate or from other
available revenue sources exclusive of fire state aid, and one-tenth of the
amount of assets in excess of the accrued liabilities of the relief association
calculated under section 69.772, subdivision 2; 69.773, subdivisions 2 and 4;
or 69.774, subdivision 2, if any.
(b) The maximum service pension which the relief association
has authority to provide for in its bylaws for payment to a member retiring
after the calculation date when the minimum age and service requirements
specified in subdivision 1 are met must be determined using the table in
paragraph (c) or (d), whichever applies.
(c) For a relief association where the governing bylaws provide
for a monthly service pension to a retiring member, the maximum monthly service
pension amount per month for each year of service credited that may be provided
for in the bylaws is the greater of the service pension amount provided for
in the bylaws on the date of the calculation of the average amount of the
available financing per active covered firefighter or the maximum service
pension figure corresponding to the average amount of available financing per
active covered firefighter:
Minimum
Average Amount of
Maximum Service Pension
Available
Financing per
Amount Payable per Month
Firefighter
for Each Year of Service
$...
$.25
42
41
.50
84
81
1.00
126
122
1.50
168
162
2.00
209
203
2.50
252
243
3.00
294
284
3.50
335
324
4.00
378
365
4.50
420 405
5.00
503
486
6.00
587
567
7.00
672
648
8.00
755
729
9.00
839
810
10.00
923
891
11.00
1007
972
12.00
1090 1053
13.00
1175 1134
14.00
1259 1215 15.00
1342 1296
16.00
1427 1377
17.00
1510 1458
18.00
1594 1539
19.00
1677 1620
20.00
1762 1701
21.00
1845 1782
22.00
1888 1823
22.50
1929 1863
23.00
2014 1944
24.00
2098 2025
25.00
2183 2106
26.00
2267 2187
27.00
2351 2268
28.00
2436 2349
29.00
2520 2430
30.00
2604 2511
31.00
2689 2592
32.00
2773 2673
33.00
2857 2754
34.00
2942 2834
35.00
3026 2916
36.00
3110 2997
37.00
3194 3078
38.00
3278 3159
39.00
3362 3240
40.00
3446 3321
41.00
3530 3402
42.00
3614 3483
43.00
3698 3564
44.00
3782 3645
45.00
3866 3726
46.00
3950 3807
47.00
4034 3888
48.00
4118 3969
49.00
4202 4050
50.00
4286 4131
51.00
4370 4212
52.00
Effective beginning December 31,
2003:
4454 4293
53.00
4538 4374
54.00
4622 4455
55.00
4706 4536
56.00
(d) For a relief association in which the governing bylaws
provide for a lump sum service pension to a retiring member, the maximum lump
sum service pension amount for each year of service credited that may be
provided for in the bylaws is the greater of the service pension amount
provided for in the bylaws on the date of the calculation of the
average amount of the available financing per active covered firefighter or the
maximum service pension figure corresponding to the average amount of available
financing per active covered firefighter for the applicable specified period:
Minimum Average
Amount Maximum
Lump Sum Service
of Available
Financing
Pension Amount Payable
per Firefighter for Each Year of
Service
$..
$10
11
20
16
30
23
40
27
50
32
60
43
80
54
100
65
120
77
140
86
160
97
180
108
200
131
240
151
280
173
320
194
360
216
400
239
440
259
480
281
520
302
560
324
600
347
640
367
680
389
720
410
760
432
800
486
900
540
1000
594
1100
648
1200
702
1300
756
1400
810
1500
864
1600
918
1700
972
1800
1026
1900
1080
2000
1134
2100
1188
2200
1242
2300
1296
2400
1350
2500
1404
2600
1458
2700
1512
2800
1566
2900
1620
3000
1672
3100
1726
3200
1753
3250
1780
3300
1820
3375
1834
3400
1888
3500
1942
3600
1996
3700
2023
3750
2050
3800
2104
3900
2158
4000
2212
4100
2265
4200
2319
4300
2373
4400
2427
4500
2481
4600
2535
4700
2589
4800
2643
4900
2697
5000
2751
5100
2805
5200
2859
5300
2913
5400
2967
5500
3021
5600
3075
5700
3129
5800
3183
5900
3237
6000
3291
6100
3345
6200
3399
6300
3453
6400
3507
6500
3561
6600
3615
6700
3669
6800
3723
6900
3777
7000
Effective beginning December 31, 2003:
3831
7100
3885
7200
3939
7300
3993
7400
4047
7500
(e) For a relief association in which the governing bylaws
provide for a monthly benefit service pension as an alternative form of service
pension payment to a lump sum service pension, the maximum service pension
amount for each pension payment type must be determined using the applicable
table contained in this subdivision.
(f) If a relief association establishes a service pension in
compliance with the applicable maximum contained in paragraph (c) or (d) and
the minimum average amount of available financing per active covered
firefighter is subsequently reduced because of a reduction in fire state aid or
because of an increase in the number of active firefighters, the relief
association may continue to provide the prior service pension amount specified
in its bylaws, but may not increase the service pension amount until the minimum
average amount of available financing per firefighter under the table in
paragraph (c) or (d), whichever applies, permits.
(g) No relief association is authorized to provide a service
pension in an amount greater than the largest applicable flexible service
pension maximum amount even if the amount of available financing per
firefighter is greater than the financing amount associated with the largest
applicable flexible service pension maximum.
Sec. 11. Minnesota
Statutes 2004, section 424A.02, subdivision 4, is amended to read:
Subd. 4. [DEFINED
CONTRIBUTION LUMP SUM SERVICE PENSIONS.] (a) If the bylaws governing the
relief association so provide exclusively, the relief association may pay a
defined contribution lump sum service pension in lieu of any defined benefit
service pension governed by subdivision 2.
(b) An individual account for each firefighter who is a
member of the relief association shall must be established. To each individual active member
account shall must be credited a right to an equal share
of: (a) (1) any amounts
of fire state aid received by the relief association; (b) (2) any
amounts of municipal contributions to the relief association raised from levies
on real estate or from other available revenue sources exclusive of fire state
aid; and (c) (3) any amounts equal to the share of the assets of
the special fund to the credit of: (1)
(i) any former member who terminated active service with the fire
department to which the relief association is associated prior to before
meeting the minimum service requirement provided for in subdivision 1 and has
not returned to active service with the fire department for a period no shorter
than five years; or (2) (ii) any retired member who retired prior
to before obtaining a full nonforfeitable interest in the amounts
credited to the individual member account pursuant to under
subdivision 2 and any applicable provision of the bylaws of the relief
association. In addition, any interest
or investment income earned return on the assets of the
special fund shall must be credited in proportion to the share of
the assets of the special fund to the credit of each individual active
member account through the date on which the investment return is recognized
by and credited to the special fund.
(c) At the time of retirement pursuant to under
subdivision 1 and any applicable provision of the bylaws of the relief
association, a retiring member shall be is entitled to that
portion of the assets of the special fund to the credit of the member in the
individual member account which is nonforfeitable pursuant to under
subdivision 2 and any applicable provision of the bylaws of the relief
association based on the number of years of service to the credit of the
retiring member.
Sec. 12. Minnesota
Statutes 2004, section 424A.02, subdivision 7, is amended to read:
Subd. 7. [DEFERRED
SERVICE PENSIONS.] (a) A member of a relief association to which this
section applies is entitled to a deferred service pension if the member:
(1) has completed the lesser of the minimum period of active
service with the fire department specified in the bylaws or 20 years of active
service with the fire department;
(2) has completed at least five years of active membership in
the relief association; and
(3) separates from active service and membership before
reaching age 50 or the minimum age for retirement and commencement of a service
pension specified in the bylaws governing the relief association if that age is
greater than age 50.
(b) The deferred service pension starts is payable
when the former member reaches age 50, or the minimum age specified in
the bylaws governing the relief association if that age is greater than age 50,
and when the former member makes a valid written application.
(c) A relief association that provides a lump sum service
pension governed by subdivision 3 may, when its governing bylaws so
provide, pay interest on the deferred lump sum service pension during the
period of deferral. If provided for in
the bylaws, interest must be paid in one of the following manners:
(1) at the investment performance rate actually earned on that
portion of the assets if the deferred benefit amount is invested by the relief
association in a separate account established and maintained by the relief
association or if the deferred benefit amount is invested in a separate
investment vehicle held by the relief association;
(2) at the an interest rate of up to five
percent, compounded annually as set by the board of directors and approved
as provided in subdivision 10; or
(3) at a rate equal to the actual time weighted total rate of
return investment performance of the special fund as reported by the Office of
the State Auditor under section 356.219, up to five percent, compounded
annually, and applied consistently for all deferred service pensioners.
(d) A relief association may not use the method provided
for in paragraph (c), clause (3), until it has modified its bylaws to be
consistent with that clause.
(d) Interest under paragraph (c), clause (2) or (3), is
payable from the first day of the month next following the date on which the
municipality has approved the deferred service pension interest rate
established by the board of trustees or from the first day of the month next following
the date on which the member separated from active fire department service and
relief association membership, whichever is later, to the last day of the month
immediately before the month in which the deferred member becomes eligible to
begin receipt of the service pension and applies for the deferred service
pension.
(e) A relief association that provides a defined
contribution service pension may, if its governing bylaws so provide, credit
interest or additional investment performance on the deferred lump sum service
pension during the period of deferral.
If provided for in the bylaws, the interest must be paid in one of the
manners specified in paragraph (c) or alternatively the relief association may
credit any investment return on the assets of the special fund of the defined
contribution volunteer firefighter relief association in proportion to the
share of the assets of the special fund to the credit of each individual
deferred member account through the date on which the investment return is
recognized by and credited to the special fund.
(f) For a deferred service pension that is
transferred to a separate account established and maintained by the relief
association or separate investment vehicle held by the relief association, the
deferred member bears the full investment risk subsequent to transfer and in
calculating the accrued liability of the volunteer firefighters relief
association that pays a lump sum service pension, the accrued liability for
deferred service pensions is equal to the separate relief association account
balance or the fair market value of the separate investment vehicle held by the
relief association.
(f) (g) The deferred service pension is governed
by and must be calculated under the general statute, special law, relief
association articles of incorporation, and relief association bylaw provisions
applicable on the date on which the member separated from active service with
the fire department and active membership in the relief association.
Sec. 13. [424A.021]
[CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED SERVICE.]
Subdivision 1.
[AUTHORIZATION.] Subject to restrictions stated in this section, a
volunteer firefighter who is absent from firefighting service due to service in
the uniformed services, as defined in United States Code, title 38, section
4303(13), may obtain service credit if the relief association is a defined
benefit plan or an allocation of any fire state aid, any municipal
contributions, and any investment return received by the relief association if
the relief association is a defined benefit contribution plan for the period of
the uniformed service, not to exceed five years, unless a longer period is
required under United States Code, title 38, section 4312.
Subd. 2.
[LIMITATIONS.] (a) To be eligible for service credit or financial
allocation under this section, the volunteer firefighter must return to
firefighting service with coverage by the same relief association or by the
successor to that relief association upon discharge from service in the
uniformed service within the time frame required in United States Code, title
38, section 4312(e).
(b) Service credit or financial allocation is not authorized
if the firefighter separates from uniformed service with a dishonorable or bad
conduct discharge or under other than honorable conditions.
(c) Service credit or financial allocation is not authorized
if the firefighter fails to provide notice to the fire department that the
individual is leaving to provide service in the uniformed service, unless it is
not feasible to provide that notice due to the emergency nature of the
situation.
Sec. 14. Minnesota
Statutes 2004, section 424A.04, subdivision 1, is amended to read:
Subdivision 1.
[MEMBERSHIP.] (a) Every A relief association that is
directly associated with a municipal fire department shall must
be managed by a board of trustees consisting of nine members. Six trustees shall must be
elected from the membership of the relief association and three trustees shall
must be drawn from the officials of the municipalities served by the
fire department to which the relief association is directly associated. The bylaws of a relief association which
provides a monthly benefit service pension may provide that one of the six
trustees elected from the relief association membership may be a retired
member receiving a monthly pension who is elected by the membership of the
relief association. The three ex
officio municipal trustees shall be the mayor, the clerk,
clerk-treasurer or finance director, must be one elected municipal
official and one elected or appointed municipal official who are designated as
municipal representatives by the municipal governing board annually and the
chief of the municipal fire department.
(b) provide that one of the six
trustees elected from the relief association membership may be a retired
member receiving a monthly pension who is elected by the membership of the
relief association. The Every A relief association that is a
subsidiary of an independent nonprofit firefighting corporation shall must
be managed by a board of trustees consisting of ten nine
members. Six trustees shall must
be elected from the membership of the relief association, three two
trustees shall must be drawn from the officials of the
municipalities served by the fire department to which the relief association is
directly associated, and one trustee shall be the fire chief serving with
the independent nonprofit firefighting corporation. The bylaws of a relief association may three ex officio
two municipal trustees who are the elected officials shall must
be elected or appointed municipal officials, selected as follows:
(1) if only one municipality contracts with the independent
nonprofit firefighting corporation, the ex officio municipal
trustees shall must be three elected two officials
of the contracting municipality who are designated annually by the
governing body of the municipality;
(2) if two municipalities contract with the independent
nonprofit firefighting corporation, the ex officio trustees shall be two
elected officials of the largest municipality in population and one elected
official of the next largest municipality in population who are designated by
the governing bodies of the applicable municipalities; or
(3) (2) if three two or more
municipalities contract with the independent nonprofit corporation, the ex
officio municipal trustees shall must be one elected
official of from each of the three two largest
municipalities in population who are designated annually by the
governing bodies of the applicable municipalities.
(c) The municipal trustees for a relief association that is
directly associated with a fire department operated as or by a joint powers
entity must be designated annually by the joint powers board. The municipal trustees for a relief
association that is directly associated with a fire department service area
township must be designated by the township board.
(d) If a relief association lacks the ex officio municipal
board members provided for in paragraph (a), (b), or (b) (c)
because the fire department is not located in or associated with an organized
municipality, joint powers entity, or township, the ex officio municipal
board members must be appointed from the fire department service area by the
board of commissioners of the applicable county.
(e) The term of these appointed ex officio municipal
board members is three years one year or until the person's
successor is qualified, whichever is later.
(d) An ex officio (f) A municipal trustee under
paragraph (a), (b), or (c) shall have, or (d) has all the
rights and duties accorded to any other trustee, except the right to be
an officer of the relief association board of trustees.
(e) (g) A board shall must have at
least three officers, which shall be who are a president, a
secretary and a treasurer. These
officers shall must be elected from among the elected trustees by
either the full board of trustees or by the membership, as specified in the
bylaws, and. In no event shall
may any trustee hold more than one officer position at any one
time. The terms of the elected trustees
and of the officers of the board shall must be specified in the
bylaws of the relief association, but shall may not exceed three
years. If the term of the elected
trustees exceeds one year, the election of the various trustees elected from
the membership shall initially and shall thereafter continue to must
be staggered on as equal a basis as is practicable.
Sec. 15. Minnesota
Statutes 2004, section 424B.10, subdivision 1, is amended to read:
Subdivision 1.
[BENEFITS.] (a) Notwithstanding any provision of section 424A.02,
subdivision 3, to the contrary, the service pension of the subsequent relief
association as of the effective date of consolidation is either the service
pension amount specified in clause (1) or the service pension amounts specified
in clause (2), as provided for in the consolidated relief association's
articles of incorporation or bylaws:
(1) the highest dollar amount service pension amount of
any prior volunteer firefighters relief association in effect immediately
before the consolidation initiation if the pension amount was implemented
consistent with section 424A.02; or
(2) for service rendered by each individual volunteer
firefighter under the consolidating volunteer firefighters relief association
that the firefighter belonged to immediately before the consolidation if the
pension amount was implemented consistent with section 424A.02 and for service
rendered after the effective date of the consolidation, the highest dollar
amount service pension of any of the consolidating volunteer firefighters
relief associations in effect immediately before the consolidation if the
pension amount was implemented consistent with section 424A.02.
(b) Any increase in the service pension amount beyond the
amount implemented under paragraph (a) must conform with the requirements and
limitations of sections 69.771 to 69.775 and 424A.02.
Sec. 16. [STUDY OF
STATEWIDE LUMP-SUM VOLUNTEER FIREFIGHTER RETIREMENT PLAN; CREATION OF TASK
FORCE.]
Subdivision 1.
[TASK FORCE MEMBERSHIP.] (a) A statewide Volunteer Firefighter
Retirement Plan Study Task Force is created.
(b) The task force members are:
(1) four members appointed by the president of the Minnesota
Area Relief Association coalition;
(2) four members appointed by the president of the Minnesota
State Fire Department Association;
(3) four members appointed by the president of the Minnesota
State Fire Chiefs Association;
(4) four members appointed by the board of directors of the
League of Minnesota Cities;
(5) two members appointed by the board of directors of the
Insurance Federation of Minnesota;
(6) two members appointed by the board of directors of the
Minnesota Association of Farm Mutual Insurance Companies; and
(7) the Minnesota state auditor or the auditor's designee.
(c) Appointments must be made on or before July 1,
2005. If the appointment is not made in
a timely manner, or if there is a vacancy, the state auditor shall appoint the
task force member or the replacement member.
(d) The chair of the task force shall be selected by the
task force.
(e) Administrative services for the task force must be
provided by the Department of Public Safety.
Subd. 2. [TASK
FORCE DUTIES.] (a) The task force shall conduct fact finding regarding the
creation of a statewide volunteer firefighter retirement plan.
(b) The task force shall recommend whether a statewide
volunteer firefighter retirement plan should be created. If the task force concludes a statewide
volunteer fire plan has merit, the task force shall recommend the investment
vehicle or vehicles to be utilized by the plan, the administration and
corporate governance structure of the plan, the incentives needed to formulate
the plan, the limitations applicable to the plan, and the state resources
needed to be dedicated to the plan. The
task force may also consider creation of regional plans.
Subd. 3. [REPORT.] The task force shall prepare a
report detailing its findings about a potential statewide or regional volunteer
firefighter retirement plan or plans.
The report is due January 15, 2006, and must be filed with the
Legislative Reference Library; the chair of the Legislative Commission on
Pensions and Retirement; the chair of the State and Local Governmental
Operations Committee of the senate; the chair of the State Government Budget
Division of the senate Finance Committee; the chair of the Governmental
Operations and Veterans Affairs Committee of the house of representatives; and
the chair of the State Government Finance Committee of the house of
representatives.
Sec. 17.
[APPROPRIATION.]
$40,000 is appropriated from the general fund in fiscal year
2006 to the commissioner of public safety to hire a consultant to assist the
statewide Volunteer Firefighter Retirement Plan Study Task Force.
Sec. 18. [EFFECTIVE
DATE.]
(a) Sections 1 to 12, 14, 15, and 17 are effective July 1,
2005.
(b) Section 13 is effective July 1, 2005, and applies to
breaks in service that end on or after that date.
(c) Section 16 is effective the day following final
enactment.
ARTICLE
12
VARIOUS
CORRECTIONS AND CLARIFICATIONS
Section 1. Minnesota
Statutes 2004, section 3A.13, is amended to read:
3A.13 [EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
DEDUCTION.]
(a) The provisions of section 352.15 shall 356.401
apply to the legislators retirement plan, chapter 3A.
(b) The executive director of the Minnesota State
Retirement System must, at the request of a retired legislator who is enrolled
in a health insurance plan covering state employees, deduct the person's health
insurance premiums from the person's annuity and transfer the amount of the
premium to a health insurance carrier covering state employees.
Sec. 2. Minnesota
Statutes 2004, section 69.011, subdivision 2b, is amended to read:
Subd. 2b. [DEPARTMENTS
OF NATURAL RESOURCES AND PUBLIC SAFETY.] (a) On or before July 1, 1997, the
commissioner of natural resources shall certify one-half of the number of peace
officers as defined in subdivision 1, clause (g), employed by the Enforcement
Division during calendar year 1996 and the commissioner of public safety shall
certify one-half of the number of peace officers as defined in subdivision 1,
clause (g), employed by the Bureau of Criminal Apprehension, the Gambling
Enforcement Division, and the State Patrol Division during calendar year 1996.
(b) On or before March 15, 1998, the commissioner of natural
resources shall certify seven-tenths of the number of peace officers as defined
in subdivision 1, clause (g), employed by the Enforcement Division and the
commissioner of public safety shall certify seven-tenths of the number of peace
officers as defined in subdivision 1, clause (g), employed by the Bureau of
Criminal Apprehension, the Gambling Enforcement Division, and the State Patrol
Division.
(c) On or before March 15,
1999, and annually on or before each March 15 thereafter, the
commissioner of natural resources shall certify the number of peace officers as
defined in subdivision 1, clause (g), employed by the Enforcement Division and
the commissioner of public safety shall certify the number of peace officers as
defined in subdivision 1, clause (g), employed by the Bureau of Criminal Apprehension,
the Gambling Enforcement Division, and the State Patrol Division.
(d) (b) The certification must be on a form
prescribed by the commissioner. Peace
officers certified under this paragraph must be included in the total
certifications under subdivision 2.
Sec. 3. Minnesota
Statutes 2004, section 69.021, subdivision 5, is amended to read:
Subd. 5. [CALCULATION
OF STATE AID.] (a) The amount of fire state aid available for apportionment,
before the addition of the minimum fire state aid allocation amount under
subdivision 7, is equal to 107 percent of the amount of premium taxes paid to
the state upon the fire, lightning, sprinkler leakage, and extended coverage
premiums reported to the commissioner by insurers on the Minnesota Firetown Premium
Report. This amount shall must
be reduced by the amount required to pay the state auditor's costs and expenses
of the audits or exams of the firefighters relief associations.
The total amount for apportionment in respect to fire state aid
must not be less than two percent of the premiums reported to the commissioner
by insurers on the Minnesota Firetown Premium Report after subtracting the
following amounts:
(1) the amount required to pay the state auditor's costs and
expenses of the audits or exams of the firefighters relief associations; and
(2) one percent of the premiums reported by town and farmers'
mutual insurance companies and mutual property and casualty companies with
total assets of $5,000,000 or less.
(b) The total amount for apportionment as police state aid is
equal to 104 percent of the amount of premium taxes paid to the state on the
premiums reported to the commissioner by insurers on the Minnesota Aid to
Police Premium Report, reduced by the amount required to pay the costs and
expenses of the state auditor for audits or exams of police relief
associations. The total amount for
apportionment in respect to the police state aid program must not be less than
two percent of the amount of premiums reported to the commissioner by insurers
on the Minnesota Aid to Police Premium Report after subtracting the amount
required to pay the state auditor's cost and expenses of the audits or exams of
the police relief associations.
(c) The commissioner shall calculate the percentage of increase
or decrease reflected in the apportionment over or under the previous year's
available state aid using the same premiums as a basis for comparison.
(d) The amount for apportionment in respect to peace officer
state aid under paragraph (b) must be further reduced by $1,779,000 in fiscal
year 1999, $2,077,000 in fiscal year 2000, and $2,404,000 in fiscal year
2001. These reductions in this
paragraph cancel to the general fund.
(e) In addition to the amount for apportionment of
police state aid under paragraph (b), each year $100,000 shall must
be apportioned for police state aid. An
amount sufficient to pay this increase is annually appropriated from the
general fund.
Sec. 4. Minnesota Statutes 2004, section 69.021, subdivision 11, is amended
to read:
Subd. 11. [EXCESS
POLICE STATE-AID HOLDING ACCOUNT.] (a) The excess police state-aid holding
account is established in the general fund.
The excess police state-aid holding account must be administered by the
commissioner.
(b) Excess police state aid determined according to subdivision
10, must be deposited in the excess police state-aid holding account.
(c) From the balance in the excess police state-aid holding
account, $900,000 is appropriated to and must be transferred annually to the
ambulance service personnel longevity award and incentive suspense account
established by section 144E.42, subdivision 2.
(d) If a police officer stress reduction program is created by
law and money is appropriated for that program, an amount equal to that
appropriation must be transferred to the administrator of that program
from the balance in the excess police state-aid holding account.
(e) On October 1, 1997, and annually on each subsequent
October 1 of each year, one-half of the balance of the excess police
state-aid holding account remaining after the deductions under paragraphs (c)
and (d) is appropriated for additional amortization aid under section 423A.02,
subdivision 1b.
(f) Annually, the remaining balance in the excess police state-aid
holding account, after the deductions under paragraphs (c), (d), and (e),
cancels to the general fund.
Sec. 5. Minnesota
Statutes 2004, section 69.33, is amended to read:
69.33 [NAMES OF ASSOCIATIONS REPORTED TO INSURANCE COMPANIES.]
The commissioner shall enclose in the annual statement blank that
is sent to all fire insurance companies doing business in this state a
blank form containing the names of all firefighters' relief associations in
all cities of the first class and the names of the cities and require
these companies, at the time of making their annual statements to the
commissioner, to state on these blanks the amount of premiums received by them
upon properties insured within the corporate limits of the cities named thereon
during the year ending December 31st last past. Thereafter, before July first each year, the commissioner shall
certify to the commissioner of finance the information thus obtained, together
with the amount of the tax for the benefit of the relief association pension
plans covering firefighters in cities of the first class paid in such year
by these companies upon these insurance premiums.
Sec. 6. Minnesota
Statutes 2004, section 69.773, subdivision 4, is amended to read:
Subd. 4. [FINANCIAL
REQUIREMENTS OF SPECIAL FUND.] Prior to Before August 1 of each
year, the officers of the relief association shall determine the financial
requirements of the special fund of the relief association in accordance with
the requirements of this subdivision.
The financial requirements of the relief association shall must
be based on the most recent actuarial valuation of the special fund prepared in
accordance with subdivision 2. If the
relief association has an unfunded actuarial accrued liability as reported in
the most recent actuarial valuation, the financial requirements shall must
be determined by adding the figures calculated pursuant to under
clauses (a), (b), and (c). If the
relief association does not have an unfunded actuarial accrued liability as
reported in the most recent actuarial valuation, the financial requirements shall
must be an amount equal to the figure calculated pursuant to under
clauses (a) and (b), reduced by an amount equal to one-tenth of the amount of
any assets in excess of the actuarial accrued liability of the relief
association. The determination of
whether or not the relief association has an unfunded actuarial accrued
liability shall must be based on the current market value of
assets for which a market value is readily ascertainable and the cost or book
value, whichever is applicable, for assets for which no market value is readily
ascertainable.
(a) The normal level cost requirement
for the following year, expressed as a dollar amount, shall be is
the figure for the normal level cost of the relief association as reported in
the actuarial valuation.
(b) The amount of anticipated future administrative expenses of
the special fund shall must be calculated by multiplying the
dollar amount of the administrative expenses of the special fund for the most
recent year by the factor of 1.035.
(c) The amortization contribution requirement to retire the
current unfunded actuarial accrued liability by the established date for full
funding shall be is the figure for the amortization contribution
as reported in the actuarial valuation.
If there has not been a change in the actuarial assumptions used for
calculating the actuarial accrued liability of the special fund, a change in
the bylaws of the relief association governing the service pensions, retirement
benefits, or both payable from the special fund or a change in the actuarial
cost method used to value all or a portion of the special fund which change or
changes, which by themselves without inclusion of any other items of increase
or decrease, produce a net increase in the unfunded actuarial accrued liability
of the special fund since December 31, 1970, the established date for full
funding shall be December 31, 1990. If there has been a change in the
actuarial assumptions used for calculating the actuarial accrued liability of
the special fund, a change in the bylaws of the relief association governing
the service pensions, retirement benefits, or both payable from the special
fund or a change in the actuarial cost method used to value all or a portion of
the special fund and the change or changes, by themselves and without inclusion
of any other items of increase or decrease, produce a net increase in the
unfunded actuarial accrued liability of the special fund since December 31,
1970, but prior to January 1, 1979, the established date for full funding shall
be December 31, 1998, and if there has been a change since
December 31, 1978, the established date for full funding shall
must be determined using the following procedure:
(i) the unfunded actuarial accrued liability of the special
fund shall must be determined in accordance with the provisions
governing service pensions, retirement benefits, and actuarial assumptions in
effect before an applicable change;
(ii) the level annual dollar contribution needed to amortize
this unfunded actuarial accrued liability amount by the date for full funding
in effect prior to before the change shall must be
calculated using the interest assumption specified in section 356.215,
subdivision 8, in effect before any applicable change;
(iii) the unfunded actuarial accrued liability of the special
fund shall must be determined in accordance with any new
provisions governing service pensions, retirement benefits, and actuarial
assumptions and the remaining provisions governing service pensions, retirement
benefits, and actuarial assumptions in effect before an applicable change;
(iv) the level annual dollar contribution needed to amortize
the difference between the unfunded actuarial accrued liability amount
calculated pursuant to under subclause (i) and the unfunded
actuarial accrued liability amount calculated pursuant to under
subclause (iii) over a period of 20 years starting December 31 of the year in
which the change is effective shall must be calculated using the
interest assumption specified in section 356.215, subdivision 8, in effect
after any applicable change;
(v) the annual amortization contribution calculated pursuant
to under subclause (iv) shall must be added to the
annual amortization contribution calculated pursuant to under
subclause (ii);
(vi) the period in which the unfunded actuarial accrued
liability amount determined in subclause (iii) will be amortized by the total
annual amortization contribution computed pursuant to under subclause
(v) shall must be calculated using the interest assumption
specified in section 356.215, subdivision 8, in effect after any applicable
change, rounded to the nearest integral number of years, but which shall
does not exceed a period of 20 years from the end of the year in which
the determination of the date for full funding using this procedure is made and
which shall is not be less than the period of years
beginning in the year in which the determination of the date for full funding
using this procedure is made and ending by the date for full funding in effect
before the change;
(vii) the period determined pursuant to under
subclause (vi) shall must be added to the date as of which the
actuarial valuation was prepared and the resulting date shall be is
the new date for full funding.
Sec. 7. Minnesota
Statutes 2004, section 352.01, subdivision 4, is amended to read:
Subd. 4. [ACCUMULATED
CONTRIBUTIONS.] "Accumulated contributions" means the total,
exclusive of interest, of (1) the sums deducted from the salary of an employee,
(2) the amount of payments, including assessments, paid by the employee in lieu
of salary deductions and all other payments made under Laws 1929, chapter
191, as amended, this chapter and credited to the employee's individual
account in the retirement fund.
Sec. 8. Minnesota
Statutes 2004, section 352.01, subdivision 5, is amended to read:
Subd. 5. [RETIREMENT
FUND.] (a) "Retirement fund" means the general state employees
retirement fund created by section 352.04, subdivision 1, with respect to the
general state employees retirement plan or the correctional state employees
retirement fund created by section 352.911, subdivision 1, with respect to the
correctional state employees retirement plan.
(b) "The retirement fund"
includes the aggregate of accumulated contributions of employees covered by
the applicable plan, and all other funds paid into the state treasury or
received by the director under Laws 1929, chapter 191, as amended this
chapter, together with all income and profits from the money and interest
on it, including contributions on the part of the federal government, the
state, and state departments.
Sec. 9. Minnesota
Statutes 2004, section 352.01, subdivision 21, is amended to read:
Subd. 21. [ACCRUED
ANNUITIES.] (a) In this chapter and chapters 3A, 352B, 352C, and 490,
"accrued annuity" means an
annuity that had become payable to a retired employee in the lifetime of the
employee.
(b) An annuity or benefit authorized as provided in this
chapter and chapters 3A, 352B, 352C, and 490 becomes payable on the first day
of each calendar month for that calendar month and is to must be
paid on the first day of each calendar month beginning with benefits payable
on and after December 1, 1977.
(c) Notwithstanding any provision to the contrary in
this chapter and chapters 3A, 352B, 352C, and 490, benefit payment authorized
as "payable for life" is payable for the entire month in which death
occurs, and the benefit payment for the month of death is payable to the
surviving spouse or other beneficiary only if the annuitant dies before
negotiating the benefit check.
Sec. 10. Minnesota
Statutes 2004, section 352.01, subdivision 23, is amended to read:
Subd. 23. [COVERAGE OR
COVERED BY THE SYSTEM.] "Coverage" or "covered by the
system" means that a state employees employee who serve
serves the state of Minnesota and make makes the required
employee contributions to the retirement fund will is, by reason
of these contributions become, entitled to either (1) a
retirement annuity, or (2) a disability benefit, or (3) a refund of accumulated
contributions, as provided in this chapter.
Sec. 11. Minnesota
Statutes 2004, section 352.021, subdivision 1, is amended to read:
Subdivision 1.
[ESTABLISHMENT.] (a) There is established the general state
employees retirement plan of the Minnesota State Retirement System for
state employees.
(b) The system general state employees
retirement plan is a continuation of the State Employees Retirement
Association.
(c) Any person who was a member of the State
Employees Retirement Association on June 30, 1967, is covered by the system
general state employees retirement plan and is entitled to all benefits
provided by the system plan upon fulfilling the age, service,
contribution, and other requirements of this chapter.
Sec. 12. Minnesota
Statutes 2004, section 352.021, subdivision 2, is amended to read:
Subd. 2. [STATE
EMPLOYEES COVERED.] Every person who is a state employee, as defined in
section 352.01, on July 1, 1967, or becomes a state employee after that
date as defined in section 352.01 is covered by the system general
state employees retirement plan.
Acceptance of state employment or continuance in state service is deemed
to be consent to have deductions made from salary for deposit to the
credit of the account of the state employee in the retirement fund.
Sec. 13. Minnesota
Statutes 2004, section 352.021, subdivision 3, is amended to read:
Subd. 3. [OPTIONAL
EXEMPTIONS.] Any person who is appointed by the governor or lieutenant governor
may request exemption from coverage by the general state employees
retirement plan under this chapter if the appointee is not so
covered at by the plan on the date of appointment. To qualify for this exemption, a written
request must be made within 90 days from the date of entering upon the duties
of the position to which the person is appointed. After making the request, a person
requesting the exemption is not entitled to coverage by the general
state employees retirement plan while employed in the position that
entitled that person to an exemption from coverage.
Sec. 14. Minnesota
Statutes 2004, section 352.021, subdivision 4, is amended to read:
Subd. 4. [REENTERING
SERVICE AFTER REFUND.] When a former employee who has withdrawn accumulated
contributions reenters employment in a position entitled to coverage under the system
general state employees retirement plan, the employee shall must
be covered by the system plan on the same basis as a new employee
and is not entitled to credit for any former service. The annuity rights forfeited when taking a refund can only be
restored as provided in this chapter.
Sec. 15. Minnesota
Statutes 2004, section 352.04, subdivision 1, is amended to read:
Subdivision 1. [FUND
CREATED.] (a) There is created a special fund to be known as the general
state employees retirement fund. In
that fund there shall be deposited employees, employee
contributions, employers employer contributions, and other
amounts authorized by law must be deposited.
(b) Effective July 1, 1969, The general state
employees retirement plan of the Minnesota State Retirement System shall
must participate in the Minnesota postretirement investment fund. In that fund there shall be deposited
The amounts provided in section 352.119 must be deposited in the Minnesota
postretirement investment fund.
Sec. 16. Minnesota
Statutes 2004, section 352.04, subdivision 12, is amended to read:
Subd. 12. [FUND
DISBURSEMENT RESTRICTED.] The general state employees retirement fund
and the participation in the Minnesota postretirement investment fund must be
disbursed only for the purposes provided by law. The expenses of the system and any benefits provided by law,
other than benefits payable from the Minnesota postretirement investment fund,
must be paid from the general state employees retirement fund. The retirement allowances, retirement
annuities, and disability benefits, as well as refunds of any sum remaining to
the credit of a deceased retired employee or a disabled employee must be paid
only from the general state employees retirement fund after the needs
have been certified and the amounts withdrawn from the participation in the
Minnesota postretirement investment fund under section 11A.18. The amounts necessary to make the payments
from the general state employees retirement fund and the participation
in the Minnesota postretirement investment fund are annually appropriated from
these funds for those purposes.
Sec. 17. Minnesota
Statutes 2004, section 352.041, subdivision 1, is amended to read:
Subdivision 1.
[ALLOWABLE SERVICE CREDIT.] Any (a) An employee covered by
the system general state employees retirement plan who is given a
leave of absence for employment by a political subdivision of the state shall
remains a member of the plan and must continue to pay member
contributions into the general state employees retirement fund for
the period of leave.
(b) Upon payment of member contributions, the
employee must be given allowable service credit as a state employee on the
records of the system retirement plan as though the employee had
received salary from the state during the leave. Payments into the retirement fund shall must be at
the rate required in section 352.04, subdivision 2, and must be based upon the
salary received from the political subdivision subject to the maximum
amount, if any.
Sec. 18. Minnesota
Statutes 2004, section 352.041, subdivision 2, is amended to read:
Subd. 2. [EMPLOYEE
CONTRIBUTIONS, PROCEDURE.] The officer or employee who is authorized by
law to pay salaries to employees of the political subdivision which is
employing a state employee shall have must deduct employee
contributions deducted for the general state employees retirement
plan under section 352.04, subdivision 2, from the salary of each employee
who is on leave of absence from state service on each payroll abstract and shall
must pay the sum to the director following the conclusion of each
pay period.
Sec. 19. Minnesota
Statutes 2004, section 352.041, subdivision 3, is amended to read:
Subd. 3. [EMPLOYER
CONTRIBUTIONS, PROCEDURE.] The officer or employee who is authorized by
law to pay salaries to employees of the political subdivision which is
employing a state employee covered by the system shall general state
employees retirement plan also must have employer contributions made
to the general state employees retirement fund on following
the conclusion of each payroll abstract in the amount required by section
352.04, subdivision 3. These
contributions are to must be charged to the political
subdivision as an administrative cost.
Sec. 20. Minnesota
Statutes 2004, section 352.041, subdivision 5, is amended to read:
Subd. 5. [EMPLOYER
CONTRIBUTIONS, LEAVES OF ABSENCE; TAX LEVIES.] (a) Every political
subdivision which is employing a state employee covered by the system on
leave of absence from state service for employment by a political subdivision
of the state shall must pay into the general state
employees retirement fund the amount of the employer contribution required by
law for state employees covered by the system under section 352.04,
subdivision 3.
(b) Employing political subdivisions, except other
than school districts, may levy taxes necessary for the payment of employer
contributions without limitation as to rate or amount. The levy of the taxes does not reduce the
amount of other taxes to that may be levied by political
subdivisions, except other than school districts, which
are subject to any limitation.
Sec. 21. Minnesota
Statutes 2004, section 352.15, subdivision 1, is amended to read:
Subdivision 1.
[EXEMPTION; EXCEPTIONS.] None of the money, annuities, or
other benefits mentioned in this chapter is assignable either in law or in
equity or subject to execution, levy, attachment, garnishment, or other legal
process, except as provided in subdivision 1a or section 518.58, 518.581, or
518.6111. The provisions of section 356.401 apply to the general state
employees retirement plan and to the correctional state employees retirement
plan.
Sec. 22. Minnesota
Statutes 2004, section 352.15, subdivision 3, is amended to read:
Subd. 3. [DEDUCTING
HEALTH OR DENTAL INSURANCE PREMIUMS.] The board may direct authorize,
at its discretion, the deduction of a retiree's health or dental insurance
premiums and transfer of the amounts to a health or dental insurance carrier
covering state employees. The insurance
carrier must certify that the retired employee has signed an authorization for
the deduction and provide a computer readable roster of covered retirees and
amounts. The health or dental insurance
carrier must refund deductions withheld from a retiree's check in error
directly to the retiree. The board
shall require that the insurance carrier to reimburse the fund
for the administrative expense of withholding the premium amounts. The insurance carrier shall assume liability
for any failure of the system to properly withhold the premium amounts.
Sec. 23. Minnesota
Statutes 2004, section 352.15, subdivision 4, is amended to read:
Subd. 4. [DIRECT
TRANSFER OF REFUNDS.] A direct transfer of account refunds under
this chapter may be made to an individual retirement savings accounts
account or a qualified retirement plans plan of the
person upon the receipt of an application for transfer by a former
employee, on forms acceptable to the executive director.
Sec. 24. Minnesota
Statutes 2004, section 352.22, subdivision 10, is amended to read:
Subd. 10. [OTHER
REFUNDS.] Former employees covered by the system are entitled to apply for
refunds if they are or become members of the State Patrol retirement fund, the
state Teachers Retirement Association, or employees of the University of
Minnesota excluded from coverage under the system by action of the Board of
Regents; or labor service employees, excluded from coverage under section
352.01, subdivision 2b, clause (25); or employees of the adjutant general
who under federal law effectually elect membership in a federal retirement
system; or officers or employees of the senate or house of representatives,
excluded from coverage under section 352.01, subdivision 2b, clause (8) (7). The refunds must include accumulated
contributions plus interest as provided in subdivision 2. These employees may apply for a refund
once 30 days or more have elapsed after their coverage ceases, even
if they continue in state service but in positions not covered by this chapter.
Sec. 25. Minnesota
Statutes 2004, section 352B.01, subdivision 1, is amended to read:
Subdivision 1. [SCOPE.]
In this chapter, each of the terms defined in this section have has
the meanings meaning given them to it.
Sec. 26. Minnesota
Statutes 2004, section 352B.01, subdivision 2, is amended to read:
Subd. 2. [MEMBER.]
"Member" means:
(1) a State Patrol member currently employed after June 30,
1943, under section 299D.03 by the state, who is a peace officer under
section 626.84, and whose salary or compensation is paid out of state funds;
(2) a conservation officer employed under section 97A.201,
currently employed by the state, whose salary or compensation is paid out of
state funds;
(3) a crime bureau officer who was employed by the crime bureau
and was a member of the Highway Patrolmen's retirement fund on July 1, 1978,
whether or not that person has the power of arrest by warrant after that date,
or who is employed as police personnel, with powers of arrest by warrant under
section 299C.04, and who is currently employed by the state, and whose salary
or compensation is paid out of state funds;
(4) a person who is employed by the state in the Department
of Public Safety in a data processing management position with salary or
compensation paid from state funds, who was a crime bureau officer covered by
the State Patrol retirement plan on August 15, 1987, and who was initially
hired in the data processing management position within the department
during September 1987, or January 1988, with membership continuing for the
duration of the person's employment in that position, whether or not the person
has the power of arrest by warrant after August 15, 1987;
(5) a public safety employee defined as who is a
peace officer in under section 626.84, subdivision 1, paragraph
(c), and who is employed with by the Division of Alcohol
and Gambling Enforcement under section 299L.01; and
(6) a Fugitive Apprehension Unit officer after October 31,
2000, who is employed by the Office of Special Investigations of the
Department of Corrections and who is a peace officer under section
626.84.
Sec. 27. Minnesota
Statutes 2004, section 352B.01, subdivision 3, is amended to read:
Subd. 3. [ALLOWABLE
SERVICE.] (a) "Allowable service" means:
(1) for members defined in subdivision 2, clause (a) (1),
monthly service is granted for in any month for which
payments have been made to the State Patrol retirement fund, and
(2) for members defined in subdivision 2, clauses (b) (2)
and (c) (3), service for which payments have been made to the
State Patrol retirement fund, service for which payments were made to the State
Police officers retirement fund after June 30, 1961, and all prior service
which was credited to a member for service on or before June 30, 1961.
(b) Allowable service also includes any period of absence from
duty by a member who, by reason of injury incurred in the performance of duty,
is temporarily disabled and for which disability the state is liable under the
workers' compensation law, until the date authorized by the executive director
for commencement of payment of a disability benefit or return to employment.
(c) MS 2002 (Expired)
(d) Allowable service means service in a month during which
a member is paid a salary from which a member contribution is deducted,
deposited, and credited in the State Patrol retirement plan.
Sec. 28. Minnesota
Statutes 2004, section 352B.02, subdivision 1e, is amended to read:
Subd. 1e. [AUDIT;
ACTUARIAL VALUATION.] The legislative auditor shall audit the fund. Any actuarial valuation of the fund required
under section 356.215 must be prepared by the actuary retained under section
356.214. Any approved actuary retained
by the executive director under section 352.03, subdivision 6, may perform
actuarial valuations and experience studies to supplement those performed by
the commission-retained actuary retained under section 356.214. Any supplemental actuarial valuation or
experience studies shall must be filed with the executive
director of the Legislative Commission on Pensions and Retirement.
Sec. 29. Minnesota
Statutes 2004, section 352B.071, is amended to read:
352B.071 [EXEMPTION FROM PROCESS.]
None of the money, annuities, or other benefits provided for
in this chapter is assignable either in law or in equity or be subject to
execution, levy, attachment, garnishment, or other legal process, except as
provided in section 518.58, 518.581, or 518.6111. The provisions of
section 356.401 apply to the State Patrol retirement plan.
Sec. 30. Minnesota Statutes 2004, section 352D.01, is amended to read:
352D.01 [ESTABLISHMENT.]
There is hereby established within the Minnesota State
Retirement System a retirement program for certain public employees to be known
as the Minnesota unclassified employees retirement program, which shall be. The program must be administered by the
Minnesota State Retirement System.
Sec. 31. Minnesota
Statutes 2004, section 352D.015, subdivision 3, is amended to read:
Subd. 3. [SUPPLEMENTAL INVESTMENT
FUND.] "Supplemental investment fund" means the fund
established and governed by section 11A.17.
Sec. 32. Minnesota
Statutes 2004, section 352D.015, subdivision 4, is amended to read:
Subd. 4. [GENERAL
FUND.] "General fund" means the general state employees
retirement fund except the moneys for the unclassified program.
Sec. 33. Minnesota
Statutes 2004, section 352D.03, is amended to read:
352D.03 [TRANSFER OF ASSETS.]
Unless an eligible employee enumerated in section 352D.02,
subdivision 1 or 1a, has elected coverage under the individual
retirement account plan under chapter 354B, a sum of money representing the
assets credited to each employee exercising the option contained in section
352D.02, plus an equal employer contribution together with interest for the
employment period at the actuarially assumed rates applicable
preretirement interest actuarial assumption rate during this period,
compounded annually, shall must be used for the purchase of
shares on behalf of each employee in the accounts of the supplemental
retirement fund established by section 11A.17.
Any employer's contribution to amortize the deficit in the state
employee's retirement fund shall not, however, be used for the purchase of
shares.
Sec. 34. Minnesota
Statutes 2004, section 352D.05, subdivision 4, is amended to read:
Subd. 4. [REPAYMENT OF
REFUND.] (a) A participant in the unclassified program may repay regular
refunds taken pursuant to under section 352.22, as provided in
section 352.23.
(b) A participant in the unclassified program or an
employee covered by the general plan who has withdrawn the value of the total
shares may repay the refund taken and thereupon restore the service credit,
rights and benefits forfeited by paying into the fund the amount refunded plus
interest at an annual rate of 8.5 percent compounded annually from the date that
the refund was taken until the date that the refund is repaid. If the participant had withdrawn only the
employee shares as permitted under prior laws, repayment shall must
be pro rata. Payment shall
(c) Except as provided in section 356.441, the repayment of
a refund under this section must be made in a lump sum.
Sec. 35. Minnesota
Statutes 2004, section 352D.085, subdivision 1, is amended to read:
Subdivision 1.
[COMBINED SERVICE.] Except as provided in section 356.30, 356.302, or
356.303, service under the unclassified program for which the employee has
been credited with employee shares may be used for the limited purpose of
qualifying for benefits under sections 352.115, 352.72, subdivision 1, 352.113,
354.44, 354.45, 354.48, and 354.60 352.113
or 354.48 if a participant was under the unclassified program at the time of
the disability; provided such. The service also may not be used
to qualify for a disability benefit under section , and provided further that. Also, the years of service and salary paid while the
participant was in the unclassified program shall may not be used
in determining the amount of benefits.
Sec. 36. Minnesota
Statutes 2004, section 352D.09, subdivision 5, is amended to read:
Subd. 5. [UNCLAIMED
BENEFITS.] If the beneficiary, surviving spouse or estate has not made
application for benefits within ten years after the date of the death of
a participant, the value of the shares shall be is
appropriated to the regular general state employees retirement
fund and the provisions of section 352.12, subdivision 12 shall,
govern. If a former participant fails
to make a claim for benefits within five years after the termination of
covered service or by age 70, whichever is later, the value of the shares shall
be is appropriated to the general state employees retirement
fund and the provisions of section 352.22, subdivision 8, shall apply.
Sec. 37. Minnesota
Statutes 2004, section 352D.12, is amended to read:
352D.12 [TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.]
(a) An employee who is a participant in the unclassified
program and who has prior service credit in a covered plan under chapters
3A, chapter 352, 352C, 353, 354, 354A, and or
422A may, within the time limits specified in this section, elect to transfer
to the unclassified program prior service contributions to one or more of those
plans. Participants with six or more
years of prior service credit in a plan governed by chapter 3A or 352C on July
1, 1998, may not transfer prior service contributions. Participants with less than six years of
prior service credit in a plan governed by chapter 3A or 352C on July 1,
1998, must be contributing to the unclassified plan on or after January
5, 1999, in order to transfer prior contributions.
(b) For participants with prior service credit in a plan
governed by chapter 352, 353, 354, 354A, or 422A, "prior service
contributions" means the accumulated employee and equal employer
contributions with interest at an annual rate of 8.5 percent compounded
annually, based on fiscal year balances.
For participants with less than six years of service credit as of
July 1, 1998, and with prior service credit in a plan governed by chapter 3A or
352C, "prior service contributions" means an amount equal to twice
the amount of the accumulated member contributions plus annual compound
interest at the rate of 8.5 percent, computed on fiscal year balances.
(c) If a participant has taken a refund from a retirement plan
listed in this section, the participant may repay the refund to that plan,
notwithstanding any restrictions on repayment to that plan, plus 8.5 percent
interest compounded annually and have the accumulated employee and equal
employer contributions transferred to the unclassified program with interest at
an annual rate of 8.5 percent compounded annually based on fiscal year
balances. If a person repays a refund
and subsequently elects to have the money transferred to the unclassified
program, the repayment amount, including interest, is added to the fiscal year
balance in the year which the repayment was made.
(d) A participant electing to transfer prior service
contributions credited to a retirement plan governed by chapter 352, 353, 354,
354A, or 422A as provided under this section must complete the a
written application for the transfer and repay any refund within one year
of the commencement of the employee's participation in the unclassified
program. A participant electing to
transfer prior service contributions credited to a retirement plan governed by
chapter 3A or 352C as provided under this section must complete the application
for the transfer and repay any refund between January 5, 1999, and June 1,
1999, if the employee commenced participation in the unclassified program
before January 5, 1999, or within one year of the commencement of the
employee's participation in the unclassified program if the employee commenced
participation in the unclassified program after January 4, 1999.
Sec. 38. Minnesota Statutes 2004, section 353.01, subdivision 32, is
amended to read:
Subd. 32. [COORDINATED
MEMBER.] "Coordinated member" means any a public
employee, including any a public hospital employee, who is
covered by any an agreement or modification made between the
state and the Secretary of Health, Education and Welfare Human
Services, making the provisions of the federal Old Age, Survivors and
Disability Insurance Act applicable to the member if the membership
eligibility criteria are met under this chapter. A coordinated member also is a former basic member who has a
complete and continuous separation for at least 30 days from employment as a
public employee meeting the requirements specified in subdivision 28,
paragraphs (a) and (b), and who reenters public service as a public employee
and meets the membership eligibility criteria under this chapter.
Sec. 39. Minnesota
Statutes 2004, section 353.01, subdivision 33, is amended to read:
Subd. 33. [BASIC
MEMBER.] "Basic member" means any a public employee,
including any a public hospital employee, who is not covered
by any agreement or modification made between the state and the Secretary of
Health, Education and Welfare Human Services.
Sec. 40. Minnesota
Statutes 2004, section 353.025, is amended to read:
353.025 [RANGE ASSOCIATION OF MUNICIPALITIES AND SCHOOLS.]
From and after January 1, 1982, Employees of the Range
Association of Municipalities and Schools hereinafter referred to as the
association, shall become are coordinated members of the general
employees retirement plan of the Public Employees Retirement Association
unless specifically exempt under section 353.01, subdivision 2b, and. The Range Association shall be
deemed to be of Municipalities and Schools is a governmental
subdivision for the purposes of this chapter.
Sec. 41. Minnesota Statutes
2004, section 353.026, is amended to read:
353.026 [COVERAGE FOR CERTAIN MUNICIPAL AND SCHOOL DISTRICT
EMPLOYEES.]
Any person who was employed by the city of Minneapolis, Special
School District No. 1, or public corporation as defined in section 422A.01,
subdivision 9, on or after July 1, 1978, and prior to before
July 1, 1979, and who was excluded from retirement coverage by the coordinated
program of the Minneapolis municipal employees retirement fund pursuant to
under section 422A.09, subdivision 3, shall be is entitled
to retirement coverage by the general employees retirement plan of the
Public Employees Retirement Association unless specifically excluded pursuant
to under section 353.01, subdivision 2b, from and after May 19,
1981.
Sec. 42. Minnesota
Statutes 2004, section 353.027, is amended to read:
353.027 [RETENTION OF COVERAGE FOR CERTAIN MUNICIPAL COURT
EMPLOYEES.]
Any person employed on January 1, 1975, by a municipal court
established pursuant to under Minnesota Statutes 1957, section
488.03, and located in the cities of New Brighton, Roseville, Maplewood,
North Saint Paul, White Bear Lake, or St. Paul shall be is eligible for membership in the general
employees retirement plan of the Public Employees Retirement Association
and shall retain retains any rights or benefits the person had
attained as a member of the general employees retirement plan of the
association on January 1, 1975, so long as the person remains an employee of
the municipal court of Ramsey County.
Sec. 43. Minnesota Statutes 2004, section 353.028, is amended to read:
353.028 [CITY MANAGERS; ELECTION; DEFERRED COMPENSATION.]
Subdivision 1.
[DEFINITIONS.] (a) For purposes of this section, each of the
terms in this subdivision has the meaning indicated.
(b) "City manager" means (1) a person who
is duly appointed to and is holding the position of city manager in
a Plan B statutory city or in a home rule city operating under the
"council-manager" form of government, or (2) a person who is
appointed to and is holding the position of chief administrative officer
of a home rule charter city or a statutory city pursuant to under
a charter provision, ordinance, or resolution establishing such a position and
prescribing its duties and responsibilities.
(c) "Governing body" means the city council of
the city employing the city manager.
(d) "Election" means the election described in
subdivision 2.
Subd. 2. [ELECTION.]
(a) A city manager may elect to be excluded from membership in the general
employees retirement plan of the Public Employees Retirement
Association. The election of exclusion
must be made within six months following the commencement of employment, must
be made in writing on a form prescribed by the executive director, and must
be approved by a resolution of adopted by the governing body of
the city. The election of exclusion is
not effective until it is filed with the executive director. Membership of a city manager in the association
general employees retirement plan ceases on the date the written
election is received by the executive director or upon a later date
specified. Employee and employer
contributions made on behalf of a person exercising the option to be excluded
from membership under this section must be refunded in accordance with section
353.27, subdivision 7.
(b) A city manager who has elected exclusion under this
subdivision may elect to revoke that action by filing a written notice with the
executive director. The notice must be
on a form prescribed by the executive director and must be approved by a
resolution of the governing body of the city.
Membership of the city manager in the association resumes prospectively
from the date of the first day of the pay period for which contributions were
deducted or, if pay period coverage dates are not provided, the date on which
the notice of revocation or contributions are received in the office of the
association, provided that the notice of revocation is received by the
association within 60 days of the receipt of contributions.
(c) An election under paragraph (b) is irrevocable. Any election under paragraph (a) or (b) must
include a statement that the individual will not seek authorization to purchase
service credit for any period of excluded service.
Subd. 3. [DEFERRED
COMPENSATION; CITY CONTRIBUTION.] If an election of exclusion is made, and if
the city manager and the governing body of the city additionally agree
in writing that the additional compensation is to be deferred and shall is
to be contributed on behalf of the city manager to a deferred compensation
program which meets the requirements of section 457 of the Internal Revenue
Code of 1954 1986, as amended through December 31, 1980,
the governing body may compensate the city manager, in addition to the salary
allowed under any limitation imposed on salaries by law or charter, in an
amount equal to the employer contribution which would be required by section
353.27, subdivision 3, if the city manager were a member of the association
general employees retirement plan.
Subd. 4. [REFUNDS;
DEFERRED ANNUITY.] A city manager who makes an election to be excluded from
membership is entitled to a refund of accumulated deductions or, if otherwise
qualified, a deferred annuity in the manner provided by under
section 353.34, at the option of the manager.
Subd. 5. [ELECTION;
OTHER EMPLOYMENT.] If a city manager who has made an election to be excluded subsequently
accepts employment in another governmental subdivision or subsequently
accepts employment other than as a city manager in the same city, the election shall
be deemed to have been is rescinded on the effective date of
employment.
Sec. 44. Minnesota
Statutes 2004, section 353.14, is amended to read:
353.14 [BENEFITS FROM OTHER FUNDS.]
No annuity or benefit provided by this chapter shall may
be affected, diminished, or impaired by any pension, benefit, or annuity which
any member or survivor is entitled to receive from a tax supported public
retirement plan or system authorized by any other law, for based
on service that is different service than the service for which the
member or survivor is entitled to receive benefit or annuity from a
retirement plan administered by the Public Employees Retirement
Association.
Sec. 45. Minnesota
Statutes 2004, section 353.15, subdivision 1, is amended to read:
Subdivision 1.
[EXEMPTION; EXCEPTIONS.] No money, annuity, or benefit
provided for in this chapter is assignable or subject to execution, levy,
attachment, garnishment, or legal process, except as provided in subdivision 2
or section 518.58, 518.581, or 518.6111. The provisions of section
356.401 apply to the general employees retirement plan, to the public employees
police and fire retirement plan, and to the local government correctional
service retirement plan.
Sec. 46. Minnesota
Statutes 2004, section 353.15, subdivision 3, is amended to read:
Subd. 3. [PAYMENT TO
PUBLIC BODIES.] If, in the judgment of the executive director,
conditions so warrant, payment of an annuity, a retirement benefit, or a
refund may be made to a public body in behalf of an annuitant,
disabilitant, or survivor upon such terms as the executive director may
prescribe.
Sec. 47. Minnesota
Statutes 2004, section 353.27, subdivision 11, is amended to read:
Subd. 11. [EMPLOYERS;
REQUIRED TO FURNISH REQUESTED INFORMATION.] (a) All governmental
subdivisions shall furnish promptly such other information relative to the
employment status of all employees or former employees, including, but
not limited to, payroll abstracts pertaining to all past and present
employees, as may be requested by the association or its executive
director, including schedules of salaries applicable to various categories of
employment.
(b) In the event payroll abstract records have been lost
or destroyed, for whatever reason or in whatever manner, so that such schedules
of salaries cannot be furnished therefrom, the employing governmental
subdivision, in lieu thereof, shall furnish to the association an estimate of
the earnings of any employee or former employee for any period as may be
requested by the association or its executive director. Should If the association receive
such schedules is provided a schedule of estimated earnings, the
executive director is hereby authorized to use the same as a basis for
making whatever computations might be necessary for determining obligations of
the employee and employer to the retirement fund. If estimates are not furnished by the employer pursuant to
at the request of the association or its executive director, the association
executive director may estimate the obligations of the employee and
employer to the retirement fund based upon such those records as
that are in its possession. Where
payroll abstracts have been lost or destroyed, the governmental agency need not
furnish any information pertaining to employment prior to July 1, 1963. The association shall make no estimate of
any obligation of any employee, former employee, or employer covering
employment prior to July 1, 1963.
Sec. 48. Minnesota Statutes
2004, section 353.271, is amended to read:
353.271 [PARTICIPATION IN MINNESOTA POSTRETIREMENT INVESTMENT
FUND.]
Subdivision 1.
[AUTHORIZATION.] The general employees retirement plan of the
Public Employees Retirement Association, including the public employees
police and fire fund but excluding the various local relief association
consolidation accounts, is retirement plan, and the local government
correctional service retirement plan are authorized to participate in the
Minnesota postretirement investment fund.
There shall be is one general participation in the
Minnesota postretirement investment fund for all purposes by each
plan of the Public Employees Retirement fund and one general
participation in the Minnesota postretirement investment fund for all purposes
by the public employees police and fire fund Association.
Subd. 2. [VALUATION OF
ASSETS; ADJUSTMENT OF BENEFITS.] (1) (a) The required reserves
for retirement annuities payable as provided in this chapter other than those
payable from the various local relief association consolidation accounts, 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
actuary retained by the Legislative Commission on Pensions and Retirement
under section 356.214, and approved under section 356.215, subdivision 18,
and using the postretirement interest assumption specified in section 356.215,
subdivision 8, shall must be transferred to the Minnesota postretirement
investment fund as of the last business day of the month in which the
retirement annuity begins.
(2) (b) Annuity payments other than those
payable from the various local relief association consolidation accounts shall
must be adjusted in accordance with the provisions of section 11A.18.
(3) (c) Increases in payments pursuant to under
this section or from the various local relief association consolidation
accounts, if applicable, will must be made automatically unless the
intended recipient files written notice with the executive director of the
Public Employees Retirement Association requesting that the increase shall
not be made.
Sec. 49. Minnesota
Statutes 2004, section 353.31, subdivision 1c, is amended to read:
Subd. 1c. [COORDINATED
MEMBERS.] Except for benefits provided under section 353.32, subdivisions 1
and 1a, no survivor benefits are payable to the surviving spouse or
dependent children of a deceased coordinated member.
Sec. 50. Minnesota
Statutes 2004, section 353.32, subdivision 9, is amended to read:
Subd. 9. [PAYMENT TO A
MINOR.] If a member or former member dies having named as beneficiary a person
who is a minor at the time of the application for refund, the board may make the
payment (a) (1) directly to the minor, (b) (2) to any
a person who has legally qualified and is acting as guardian of the
minor's person or property in any jurisdiction, or (c) (3) to
either parent of the minor or to any an adult person with whom
the minor may at the time be living, provided only that. The
parent or other person to whom any amount is to be paid shall have advised
must advise the board in writing that the amount will be held or used in
trust for the benefit of such minor.
Any annuity or disability benefit payable at the time of death of an
annuitant or recipient of a disability benefit, which is payable to a
beneficiary who is a minor, may be paid in the same manner. Such The payment shall be
is a bar to recovery by any other person or persons.
Sec. 51. Minnesota Statutes
2004, section 353.33, subdivision 12, is amended to read:
Subd. 12. [BASIC
DISABILITY SURVIVOR BENEFITS.] If a basic member who is receiving a disability
benefit under subdivision 3:
(a) (1) dies before attaining age 65 or
within five years of the effective date of the disability, whichever is later,
the surviving spouse shall is entitled to receive a survivor
benefit under section 353.31, unless the surviving spouse elected to receive a
refund under section 353.32, subdivision 1.;
(b) (2) is living at age 65 or five years after
the effective date of the disability, whichever is later, the basic member may
continue to receive a normal disability benefit, or elect a joint and survivor
optional annuity under section 353.31, subdivision 1b. The election of the joint and survivor
optional annuity must occur within 90 days of attaining age 65 or of
reaching the five-year anniversary of the effective date of the disability
benefit, whichever is later. The
optional annuity takes effect on the first day of the month following
the month in which the person attains age 65 or reaches the five-year
anniversary of the effective date of the disability benefit, whichever is later.;
or
(c) (3) if there is a dependent child or children
under paragraph (a) or (b) clause (1) or (2), the association
shall grant dependent child is entitled to a dependent child benefit
under section 353.31, subdivision 1b, paragraph (b).
Sec. 52. Minnesota
Statutes 2004, section 354.091, is amended to read:
354.091 [SERVICE CREDIT.]
(a) In computing service credit, no teacher shall may
receive credit for more than one year of teaching service for any fiscal
year. Commencing July 1, 1961 Additionally,
in crediting allowable service:
(1) if a teacher teaches less than five hours in a day, service
credit must be given for the fractional part of the day as the term of service
performed bears to five hours;
(2) if a teacher teaches five or more hours in a day, service
credit must be given for only one day;
(3) if a teacher teaches at least 170 full days in any fiscal
year, service credit must be given for a full year of teaching service; and
(4) if a teacher teaches for only a fractional part of the
year, service credit must be given for such fractional part of the year in
the same relationship as the period of service performed bears to 170 days.
(b) A teacher shall must receive a full year of
service credit based on the number of days in the employer's full school year
if it that school year is less than 170 days. Teaching service performed before July 1,
1961, must be computed under the law in effect at the time it was performed.
(c) A teacher must not lose or gain retirement service credit
as a result of the employer converting to a flexible or alternate work
schedule. If the employer converts to a
flexible or alternate work schedule, the forms for reporting teaching
service and the procedures for determining service credit must be
determined by the executive director with the approval of the board of trustees.
(d) For all services rendered on or after July 1, 2003, service
credit for all members employed by the Minnesota State Colleges and
Universities system must be determined:
(1) for full-time employees, by the definition of full-time
employment contained in the collective bargaining agreement for those units
listed in section 179A.10, subdivision 2, or contained in the applicable
personnel or salary plan for those positions designated in section 179A.10,
subdivision 1;
(2) for part-time employees, by the appropriate proration
of full-time equivalency based on the provisions contained in the collective
bargaining agreement for those units listed in section 179A.10, subdivision 2,
or contained in the applicable personnel or salary plan for those positions
designated in section 179A.10, subdivision 1, and the applicable procedures of
the Minnesota State Colleges and Universities system; and
(3) in no case may a member receive more than one year of
service credit for any fiscal year.
Sec. 53. Minnesota
Statutes 2004, section 354.10, subdivision 1, is amended to read:
Subdivision 1.
[EXEMPTION; EXCEPTIONS.] (a) The provisions of section 356.401 apply
to the teachers retirement plan.
(b) The right of a teacher to take advantage of the
benefits provided by this chapter, is a personal right only and is not
assignable. All money to the credit of
a teacher's account in the fund or any money payable to the teacher from the
fund belongs to the state of Minnesota until actually paid to the teacher or a
beneficiary under this chapter.
(c) The association may acknowledge a properly completed
power of attorney form. An
assignment or attempted assignment of a teacher's interest in the fund, or of
the beneficiary's interest in the fund, by a teacher or a beneficiary is void
and exempt from garnishment or levy under attachment or execution, except as
provided in subdivision 2 or 3, or section 518.58, 518.581, or 518.6111.
Sec. 54. Minnesota
Statutes 2004, section 354.10, subdivision 3, is amended to read: