STATE OF MINNESOTA
EIGHTY-FIFTH SESSION - 2007
_____________________
SEVENTY-THIRD DAY
Saint Paul, Minnesota, Saturday, May 19, 2007
The House of Representatives convened at 10:00 a.m. and was
called to order by Margaret Anderson Kelliher, Speaker of the House.
Prayer was offered by the Reverend Paul Rogers, House Chaplain.
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, S.
Anzelc
Atkins
Beard
Benson
Berns
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Clark
Cornish
Davnie
Dean
DeLaForest
Demmer
Dill
Dittrich
Dominguez
Doty
Eastlund
Eken
Emmer
Erhardt
Erickson
Faust
Finstad
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kohls
Kranz
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Nornes
Norton
Olin
Olson
Otremba
Ozment
Paulsen
Paymar
Pelowski
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruth
Ruud
Sailer
Seifert
Sertich
Severson
Shimanski
Simon
Simpson
Slawik
Slocum
Smith
Solberg
Sviggum
Swails
Thao
Thissen
Tillberry
Tingelstad
Tschumper
Urdahl
Wagenius
Walker
Ward
Wardlow
Welti
Westrom
Winkler
Wollschlager
Zellers
Spk. Kelliher
A quorum was present.
Dettmer was excused.
Scalze was excused until 5:55 p.m.
The Chief Clerk proceeded to read the Journal of the preceding
day. Ward moved that further reading of
the Journal be suspended and that the Journal be approved as corrected by the Chief
Clerk. The motion prevailed.
Sertich moved that the House recess
subject to the call of the Chair. The
motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by Speaker pro
tempore Thissen.
PETITIONS AND COMMUNICATIONS
The following communications were received:
STATE
OF MINNESOTA
OFFICE
OF THE GOVERNOR
SAINT
PAUL 55155
May
15, 2007
The Honorable Margaret
Anderson Kelliher
Speaker of the House of
Representatives
The State of Minnesota
Dear Speaker Kelliher:
I have vetoed and am returning H. F. No. 946, Chapter No. 84,
the Omnibus Transportation Finance Bill.
With more than $5 billion in tax and fee increases, this bill
would impose an unnecessary and onerous financial burden on Minnesota citizens
and would weaken our state's economy.
The entire array of tax increases in this bill would cost an average
family in Minnesota up to $500 per year.
As I clearly stated to the legislative conference committee
that crafted this legislation, I remain opposed to increasing the tax burden on
Minnesota families. With gasoline
prices rising to historic highs, a gas tax increase of up to 7.5 cents per
gallon is untimely and misguided.
While the media have focused on the gas tax increase, other
provisions in this bill need to be highlighted, including:
● A 0.5% sales tax increase in the seven metro
counties and any adjacent county that chooses to join in without a voter
referendum. This will result in
Minneapolis and Hennepin Counties having one of the higher sales tax rates in
the nation.
● A 0.5% sales tax
increase in Greater Minnesota counties, subject to voter referendum.
● A new $20 excise
tax on motor vehicle purchases.
● Removal of the requirement that metropolitan
counties that impose a wheelage tax ($10) offset that amount on their property
tax levy, effectively increasing property taxes.
● Removal of caps on "license tabs" which limit
the tax to $189 in the second year after a car is purchased and $99 in the
third year, instituted at the recommendation of Governor Ventura during the
2000 legislative session, subjecting car owners to significant increases.
I am disappointed that the conference committee did not adopt
my transportation proposal and once again overreached. This type of overreaching has resulted in a
transportation funding stalemate at the Capitol for too many years. Steady progress that is achievable is
preferable to no progress at all.
Along with the numerous tax increases, the following provisions
in the bill are also objectionable:
● I remain opposed to the provision creating a
new joint powers entity in the metropolitan area with powers to distribute
transportation funds to counties, cities, and the state. The proposed governing board would create a
duplicative and unnecessarily complicated structure and add unnecessary process
at the local, state and federal levels.
Separating transportation spending decisions from the regional
transportation planning function - as H. F. No. 946 would do - would be a
step backward (recall the Regional Transit Board). This provision is bad public policy and would likely feature
parochial decision making over an objective, regional perspective for
transportation and transit planning, capital investments, and operations.
● I also remain opposed to the provision that
severely restricts the extent to which a county regional rail authority may
participate in financing the construction and operation of a transit
project. This provision will have a
negative impact on Minnesota's ability to compete for federal capital transit
funding for future "new starts" projects, and it could also have an
immediate negative - or even fatal - impact on the Northstar commuter rail
project. This provision would
necessitate a restructuring of the Northstar capital financing plan that has
been submitted to the Federal Transit Administration. The restructuring effort could delay the project, putting in
question the project's ability to remain eligible for federal funding.
The bill includes many items on which we share some agreement,
such as a significant level of trunk highway bonding to accelerate long-delayed
priority highway projects, the distribution of constitutionally dedicated motor
vehicle sales taxes (MVST) with a ratio of 60 percent for roads and highways
and 40 percent for transit, and the dedication of sales tax revenues on leased
vehicles to highways and transit.
However, I strongly urge the Legislature to adhere to my earlier
proposal to include leased vehicle sales tax revenue in the base of the
constitutionally dedicated MVST fund, and distribute the overall transit
portion 38 percent for Metro area transit and 2 percent for Greater Minnesota
transit. This formula will ensure that
transit systems across the state will have additional funds to meet their
future operating obligations.
I am issuing my veto promptly because I believe there is still
time this session for the Legislature to pass a significant transportation
financing bill - without tax increases - that I can sign into law. Investing in transportation is important to
the citizens of Minnesota and a top priority of my administration. I urge the Legislature to approve my
administration's transportation financing proposal and help us move forward in
addressing Minnesota's transportation needs.
Sincerely,
Tim
Pawlenty
Governor
MOTION
TO OVERRIDE VETO
Olson moved that H. F. No. 946, Chapter No. 84, be now
reconsidered and repassed, the objections of the Governor notwithstanding,
pursuant to Article IV, Section 23, of the Constitution of the State of
Minnesota.
LAY ON
THE TABLE
Sertich moved that the Olson motion be laid on the table.
A roll call was requested and properly seconded.
The question was taken on the Sertich motion and the roll was
called. There were 88 yeas and 44 nays
as follows:
Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Erhardt
Faust
Fritz
Gardner
Garofalo
Greiling
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kranz
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Mahoney
Mariani
Marquart
Masin
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Otremba
Ozment
Paymar
Pelowski
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruud
Sailer
Sertich
Simon
Slawik
Slocum
Solberg
Swails
Thao
Thissen
Tillberry
Tschumper
Wagenius
Walker
Ward
Welti
Winkler
Wollschlager
Spk. Kelliher
Those who voted in the negative were:
Abeler
Anderson, B.
Anderson, S.
Beard
Berns
Brod
Buesgens
Cornish
Dean
DeLaForest
Demmer
Eastlund
Emmer
Erickson
Finstad
Gottwalt
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Hoppe
Howes
Kohls
Lanning
Magnus
McFarlane
McNamara
Nornes
Olson
Paulsen
Peppin
Ruth
Seifert
Severson
Shimanski
Simpson
Smith
Sviggum
Tingelstad
Urdahl
Wardlow
Westrom
Zellers
The motion prevailed and the Olson motion was laid on the
table.
STATE
OF MINNESOTA
OFFICE OF THE GOVERNOR
SAINT PAUL 55155
May 15, 2007
The Honorable Margaret
Anderson Kelliher
Speaker of the House of
Representatives
The State of Minnesota
Dear Speaker Kelliher:
I have vetoed and am returning House File No. 2294, Chapter No.
81, relating to property taxes and individual income tax increases.
Although I am supportive of providing property tax relief, it
should be funded within the 9.8 percent biennial budget growth and the current
surplus of $2.2 billion and not by increasing income taxes by $452 million.
The creation of a new 4th tier for individual income taxes at a
9 percent rate would place Minnesota with the third highest tax rate in the
nation. This tax would fall most
heavily on the job creators and employers in the state as 90 percent of
businesses are flow-through entities that pay their taxes through the
individual income tax system. A
permanent statewide tax increase of this magnitude would place Minnesota at a
competitive disadvantage, negatively impacting our economy and the job creators
in our state.
This bill also makes significant changes to the state
equalization aid formula for excess levy referenda. Current law defines a specific process for calculating a school
district's state equalization aid. This
bill replaces the current fixed standard to a new standard based on a
percentage of "market value equalization factor." The "market value equalization
factor" is a new term that is not defined under current law or in this
bill. If this provision became the law,
the state would not be able to calculate the equalization aid to otherwise
qualifying school districts. This would
potentially harm qualifying school districts with less property tax wealth -
these tend to be school districts in rural areas or those in outer ring
suburbs.
I encourage the Legislature to pass targeted homeowner property
tax relief that is sustainable and is part of the overall budget target
agreement. We look forward to working
with you in this final week of session to reach a compromise that is acceptable
to all on the remaining omnibus tax and funding bills.
Sincerely,
Tim
Pawlenty
Governor
MOTION TO OVERRIDE VETO
Olson moved that H. F. No. 2294, Chapter No. 81, be now
reconsidered and repassed, the objections of the Governor notwithstanding,
pursuant to Article IV, Section 23, of the Constitution of the State of
Minnesota.
LAY ON
THE TABLE
Sertich moved that the Olson motion be laid on the table.
A roll call was requested and properly seconded.
The question was taken on the Sertich motion and the roll was
called. There were 87 yeas and 45 nays
as follows:
Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Erhardt
Faust
Fritz
Gardner
Greiling
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kranz
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Mahoney
Mariani
Marquart
Masin
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Otremba
Ozment
Paymar
Pelowski
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruud
Sailer
Sertich
Simon
Slawik
Slocum
Solberg
Swails
Thao
Thissen
Tillberry
Tschumper
Wagenius
Walker
Ward
Welti
Winkler
Wollschlager
Spk. Kelliher
Those who voted in the negative were:
Abeler
Anderson, B.
Anderson, S.
Beard
Berns
Brod
Buesgens
Cornish
Dean
DeLaForest
Demmer
Eastlund
Emmer
Erickson
Finstad
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Hoppe
Howes
Kohls
Lanning
Magnus
McFarlane
McNamara
Nornes
Olson
Paulsen
Peppin
Ruth
Seifert
Severson
Shimanski
Simpson
Smith
Sviggum
Tingelstad
Urdahl
Wardlow
Westrom
Zellers
The motion prevailed and the Olson motion was laid on the
table.
The following Conference Committee Report was received:
CONFERENCE
COMMITTEE REPORT ON H. F. No. 2433
A bill for an act relating to capital investment; providing
disaster relief for Browns Valley, Rogers, and Warroad; authorizing flood
mitigation projects in Browns Valley; appropriating money; amending Laws 2005,
chapter 20, article 1, section 7, subdivision 2; Laws 2006, chapter 258,
section 7, subdivision 3.
May
15, 2007
The Honorable Margaret
Anderson Kelliher
Speaker of the House of
Representatives
The Honorable James P.
Metzen
President of the Senate
We,
the undersigned conferees for H. F. No. 2433 report that we have agreed upon
the items in dispute and recommend as follows:
That
the Senate recede from its amendment and that H. F. No. 2433 be further amended
as follows:
Delete
everything after the enacting clause and insert:
"Section
1. BROWNS
VALLEY FLOOD RELIEF APPROPRIATION.
$2,000,000
is appropriated from the general fund to the commissioner of public safety for
a grant to the city of Browns Valley to be used for relief from damage caused by
the flooding of March 2007. This
appropriation is available until June 30, 2009.
Sec.
2. HOUSING
FINANCE AGENCY.
The
Housing Finance Agency may use the disaster relief contingency fund established
under Minnesota Statutes, section 462A.21, subdivision 29, to assist with the
rehabilitation or replacement of housing damaged as a result of the Browns
Valley flooding of March 2007, notwithstanding that the area is not included in
a presidential declaration of major disaster.
Sec.
3. Laws 2005, chapter 20, article 1,
section 7, subdivision 2, is amended to read:
Subd. 2. Flood Hazard Mitigation Grants 27,000,000
For the state share of flood
hazard mitigation grants for publicly owned capital improvements to prevent or
alleviate flood damage under Minnesota Statutes, section 103F.161.
The commissioner shall
determine project priorities as appropriate based on need.
This appropriation includes
money for the following projects: Ada, Austin, Breckenridge, Browns Valley,
Canisteo Mine, Cannon Falls, Crookston, Dawson, East Grand Forks, Grand Marais
Creek, Granite Falls, Green Meadow Dam, Inver Grove Heights, Little McDonald
Lake, Malung, Manston Slough, Minneapolis, Montevideo, Oakport, Palmville,
Roseau River, St. Louis Park, Two River Ross Impoundment, Warren, and
Whiskey Creek.
$2,000,000 is for Austin for
identified capital improvement projects, and any other authorized federal or
state flood mitigation projects in the area designated under Presidential
Declaration of Major Disaster, DR-1569, whether included in the original
declaration or added later by federal government action. The area currently included in DR-1569
includes territory within the counties of Dodge, Faribault, Freeborn, Martin,
Mower, Olmsted, and Steele.
$175,000 is for the state
share of a grant to the city of Cannon Falls for predesign and design of
capital improvements to alleviate flooding caused by runoff from the bluffs and
the flooding of the Little Cannon River and the Cannon River.
For any project listed in
this subdivision that is not ready to proceed or does not expend all the money
allocated to it, the commissioner may allocate that project's money to a
project on the commissioner's priority list.
To the extent that the cost
of a project in Ada, Austin, Breckenridge, Browns Valley, Dawson, East
Grand Forks, Granite Falls, Montevideo, Oakport Township, Roseau, or Warren
exceeds two percent of the median household income in the municipality
multiplied by the number of households in the municipality, this appropriation
is also for the local share of the project.
There is no local share
required for the Canisteo Mine project.
For grants for Roseau River
wildlife management area, Palmville, and Malung, the state share must be $3 for
each $1 of nonstate contribution.
Notwithstanding the grant
expiration date of June 30, 2002, the commissioner of natural resources shall
extend until June 30, 2007, the expiration date of a grant made to the city of
Stillwater under Minnesota Statutes, section 103F.161, used to match certain federal
appropriations for flood hazard mitigation.
Sec. 4. Laws 2006,
chapter 258, section 7, subdivision 3, is amended to read:
Subd. 3. Flood Hazard Mitigation Grants 25,000,000
For the state share of flood
hazard mitigation grants for publicly owned capital improvements to prevent or
alleviate flood damage under Minnesota Statutes, section 103F.161.
The commissioner shall
determine project priorities as appropriate, based on need.
This appropriation includes
money for the following projects:
(a) Austin
(b) Albert Lea
(c) Browns Valley
(d) Crookston
(d) (e) Canisteo Mine
(e) (f) Delano
(f) (g) East Grand Forks
(g) (h) Golden Valley
(h) (i) Grand Marais
Creek
(i) (j) Granite Falls
(j) (k) Inver Grove
Heights
(k) (l) Manston Slough
(l) (m) Oakport Township
(m) (n) Riverton
Township
(n) (o) Shell Rock
Watershed District
(o) (p) St. Vincent
(p) (q) Wild Rice River
Watershed District
For any project listed in this
subdivision that the commissioner determines is not ready to proceed or does
not expend all the money allocated to it, the commissioner may allocate that
project's money to a project on the commissioner's priority list.
To the extent that the cost of a project in Ada,
Breckenridge, Browns Valley, Crookston, Dawson, East Grand Forks,
Granite Falls, Montevideo, Oakport Township, Roseau, St. Vincent, or
Warren exceeds two percent of the median household income in the municipality
multiplied by the number of households in the municipality, this appropriation
is also for the local share of the project.
The local share for the St. Vincent dike may not exceed $30,000.
Sec. 5. EFFECTIVE
DATE.
This act is effective the
day following final enactment."
Delete the title and insert:
"A bill for an act relating to capital investment;
providing flood relief for Browns Valley; authorizing flood mitigation projects
in Browns Valley; appropriating money; amending Laws 2005, chapter 20, article
1, section 7, subdivision 2; Laws 2006, chapter 258, section 7, subdivision
3."
We request the adoption of this report and repassage of the
bill.
House Conferees: Paul Marquart, Lyndon Carlson and Marty
Seifert.
Senate Conferees: Keith Langseth, Rod Skoe and Gary W. Kubly.
Marquart moved that the report of the Conference Committee on H. F. No. 2433
be adopted and that the bill be repassed as amended by the Conference
Committee. The motion prevailed.
H. F. No. 2433, A bill for an act relating to capital
investment; providing disaster relief for Browns Valley, Rogers, and Warroad;
authorizing flood mitigation projects in Browns Valley; appropriating money;
amending Laws 2005, chapter 20, article 1, section 7, subdivision 2; Laws 2006,
chapter 258, section 7, subdivision 3.
The bill was read for the third time, as amended by Conference,
and placed upon its repassage.
The question was taken on the repassage of the bill and the
roll was called. There were 132 yeas
and 0 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Berns
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Clark
Cornish
Davnie
Dean
DeLaForest
Demmer
Dill
Dittrich
Dominguez
Doty
Eastlund
Eken
Emmer
Erhardt
Erickson
Faust
Finstad
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kohls
Kranz
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Nornes
Norton
Olin
Olson
Otremba
Ozment
Paulsen
Paymar
Pelowski
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruth
Ruud
Sailer
Seifert
Sertich
Severson
Shimanski
Simon
Simpson
Slawik
Slocum
Smith
Solberg
Sviggum
Swails
Thao
Thissen
Tillberry
Tingelstad
Tschumper
Urdahl
Wagenius
Walker
Ward
Wardlow
Welti
Westrom
Winkler
Wollschlager
Zellers
Spk. Kelliher
The bill was repassed, as amended by Conference, and its title
agreed to.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Sertich
from the Committee on Rules and Legislative Administration to which was
referred:
H. F.
No. 2468, A bill for an act relating to capital improvements; authorizing the
issuance of state bonds; appropriating money to renovate a building at the
University of Minnesota for use as a biomedical science research facility.
Reported
the same back with the recommendation that the bill pass.
The report was adopted.
SECOND READING OF HOUSE BILLS
H. F. No. 2468 was read for the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Tschumper; Liebling; Doty; Anzelc; Greiling; Bly; Jaros;
Norton; Otremba; Mariani; Ward; Laine; Hausman; Madore; Wagenius; Clark;
Carlson; Kahn; Slocum; Paymar; Hornstein; Eken; Peterson, A.; Murphy, E.;
Hilty; Tillberry; Johnson; Dominguez; Walker; Sailer; Thao and Lesch
introduced:
H. F. No. 2522, A bill for an act
relating to health; guaranteeing that all necessary health care is available
and affordable for every Minnesotan; establishing the Minnesota Health Care
Plan; requiring a report; appropriating money; amending Minnesota Statutes
2006, sections 15.01; 15.06, subdivision 1; 15A.0815, subdivision 2; 43A.08,
subdivision 1a; proposing coding for new law as Minnesota Statutes, chapter
62U.
The bill was read for the first time and referred to the
Committee on Health and Human Services.
Heidgerken introduced:
H. F. No. 2523, A bill for an act relating to capital
improvements; appropriating money to establish a veterans facility in Sauk
Centre; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Ward, Haws, Doty, Severson, Dominguez, Wardlow, Howes and
Gottwalt introduced:
H. F. No. 2524, A bill for an act relating to veterans;
including the spouse and children of a resident veteran in the definition of
"resident student" for purposes of determining eligibility for state
financial aid for higher education; amending Minnesota Statutes 2006, section
136A.101, subdivision 8.
The bill was read for the first time and referred to the
Committee on Agriculture, Rural Economies and Veterans Affairs.
Erickson introduced:
H. F. No. 2525, A bill for an act relating to capital
improvements; appropriating money for a regional public safety facility in
Princeton; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee
on Finance.
Madore; Anderson, B.; Tillberry; Ward; Greiling; Moe and
Tingelstad introduced:
H. F. No. 2526, A bill for an act relating to education;
requiring school districts and charter schools to allow certain pupils with a
disability who have not completed the special instruction and services to
attend their high school graduation ceremonies; amending Minnesota Statutes
2006, section 125A.04.
The bill was read for the first time and referred to the
Committee on E-12 Education.
Moe; Ruud; Peterson, A.; Ozment; Mahoney and Tingelstad
introduced:
H. F. No. 2527, A bill for an act relating to pollution
control; establishing a low-carbon fuel standard to reduce the carbon intensity
of transportation fuels in Minnesota by 2020; aligning statutory references to
low-carbon energy; requiring rulemaking; appropriating money; amending
Minnesota Statutes 2006, section 216B.241, subdivision 6, as amended; proposing
coding for new law in Minnesota Statutes, chapter 116.
The bill was read for the first time and referred to the
Committee on Finance.
Nelson, Hausman, Lanning, Urdahl and
Murphy, M., introduced:
H. F. No. 2528, A bill for an act relating to capital
improvements; appropriating money for rehabilitation of public housing;
authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Seifert introduced:
H. F. No. 2529, A bill for an act relating to transportation
finance; appropriating money for transportation, Metropolitan Council, and
public safety activities; providing for fund transfers, general contingent
accounts, and tort claims; authorizing sale and issuance of trunk highway bonds
for highways and transit facilities; modifying provisions related to driver and
vehicle services fees; modifying provisions relating to various
transportation-related funds and accounts; providing for treatment and deposit
of proceeds of lease and sales taxes on motor vehicles; modifying formula for
transit assistance to transit replacement service communities; increasing fees
for services of Department of Public Safety; amending Minnesota Statutes 2006,
sections 16A.88; 161.04, subdivision 3; 168.017, subdivision 3; 168.12,
subdivision 5; 168A.29, subdivision 1; 171.02, subdivision 3; 171.06,
subdivision 2; 171.07, subdivisions 3a, 11; 171.20, subdivision 4; 297A.70,
subdivision 2; 297A.815, by adding a subdivision; 297A.94; 297B.09, subdivision
1; 299D.09; 473.388, subdivision 4; repealing Minnesota Statutes 2006, section
174.32.
The bill was read for the first time.
MOTION
TO DECLARE AN URGENCY
Pursuant to Article IV, Section 19, of the Constitution of the
state of Minnesota, Seifert moved that the rule therein be suspended and an
urgency be declared so that H. F. No. 2529 be given its second
and third readings and be placed upon its final passage.
A roll call was requested and properly seconded.
LAY ON
THE TABLE
Sertich moved that the Seifert motion be laid on the table.
A roll call was requested and properly seconded.
The question was taken on the Sertich motion and the roll was
called. There were 87 yeas and 34 nays
as follows:
Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Erhardt
Faust
Fritz
Gardner
Greiling
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kranz
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Mahoney
Mariani
Marquart
Masin
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Otremba
Paymar
Pelowski
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruud
Sailer
Sertich
Simon
Slawik
Slocum
Solberg
Swails
Thao
Thissen
Tillberry
Tschumper
Wagenius
Walker
Ward
Welti
Winkler
Wollschlager
Spk. Kelliher
Those who voted in the negative were:
Anderson, S.
Berns
Brod
Buesgens
Dean
Demmer
Eastlund
Emmer
Erickson
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Lanning
Magnus
McFarlane
McNamara
Nornes
Olson
Ozment
Paulsen
Peppin
Ruth
Seifert
Severson
Simpson
Smith
Sviggum
Urdahl
Wardlow
Westrom
The motion prevailed and the Seifert motion was laid on the
table.
H. F. No. 2529 was referred to the Committee on Finance.
Slawik, Lillie, McFarlane and Hausman introduced:
H. F. No. 2530, A bill for an act relating to capital
improvements; appropriating money for affordable housing, residences for
seniors, and a family shelter in Maplewood.
The bill was read for the first time and referred to the
Committee on Finance.
Thissen introduced:
H. F. No. 2531, A bill for an act relating to firearms;
amending the statutory list of persons prohibited from possessing firearms for
reasons of mental health, by addition of a cross-reference to federal law;
requiring certain state agencies to report to the Legislature on their
implementation of statutes mandating the reporting of mental health commitment
information for the purposes of determining eligibility for firearms
possession; mandating a report to the legislature; amending Minnesota Statutes
2006, section 624.713, subdivision 1.
The bill was read for the first time and referred to the
Committee on Health and Human Services.
Tschumper introduced:
H. F. No. 2532, A bill for an act relating to capital
improvements; appropriating money for renovation of the Hokah City Hall;
authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Tschumper introduced:
H. F. No. 2533, A bill for an act relating to capital
improvements; appropriating money for improvements to the Chatfield Brass Band
Lending Library (CBBLL).
The bill was read for the first time and referred to the
Committee on Finance.
Tschumper introduced:
H. F. No. 2534, A bill for an act relating to capital
improvements; appropriating money for the Houston County Historical Society
Building.
The bill was read for the first time and referred to the
Committee on Finance.
Benson; Hausman; Peterson, N.; Carlson; Rukavina; Lieder;
Madore; Urdahl; Clark; Wagenius; Scalze; Mahoney; Juhnke; Bly; Lanning;
McFarlane; Pelowski; Solberg; Tingelstad; Howes; Murphy, M.; Mariani; Dittrich;
Hansen and Dominguez introduced:
H. F. No. 2535, A bill for an act relating to capital
improvements; appropriating money for supportive housing for long-term
homeless; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Finance.
Lanning, Hansen, Ozment, Eken and McNamara introduced:
H. F. No. 2536, A bill for an act relating to environment;
authorizing establishment of watershed basin management districts with taxing
authority; appropriating money; amending Minnesota Statutes 2006, sections
103B.151, subdivision 1; 275.066; proposing coding for new law in Minnesota
Statutes, chapter 103B.
The bill was read for the first time and referred to the
Committee on Environment and Natural Resources.
Anzelc introduced:
H. F. No. 2537, A bill for an act relating to railroads;
regulating remote-control operation of trains over highway intersections and
bridges and near international border; amending Minnesota Statutes 2006,
section 219.383, by adding subdivisions.
The bill was read for the first time and referred to the
Transportation Finance Division.
Madore, Masin, Wardlow, Hansen, Morgan and Garofalo introduced:
H. F. No. 2538, A bill for an act relating to capital
improvements; authorizing the sale and issuance of state bonds; appropriating
money for Cedar Avenue Bus Rapid Transit.
The bill was read for the first time and referred to the
Committee on Finance.
Morgan, Atkins, Wardlow, Garofalo and Bigham introduced:
H. F. No. 2539, A bill for an act relating to capital
improvements; authorizing the sale and issuance of state bonds; appropriating
money for a public safety technology and support center in Dakota County.
The bill was read for the first time and referred to the
Committee on Finance.
Hansen, Ozment, Madore, McNamara and Masin introduced:
H. F. No. 2540, A bill for an act relating to capital
improvements; authorizing the sale and issuance of state bonds; appropriating
money for Robert Street corridor transitway in Dakota County.
The bill was read for the first time and referred to the Committee
on Finance.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Madam Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned, as amended by the Senate, in which amendments
the concurrence of the House is respectfully requested:
H. F. No. 1973, A bill for an act relating to local government;
enabling the merger of the Minneapolis Public Library and the Hennepin County
library system; authorizing the transfer of property, assets, and certain bond
proceeds related to the Minneapolis Public Library to Hennepin County;
authorizing the transfer of Minneapolis Public Library employees to Hennepin
County; amending Minnesota Statutes 2006, sections 275.065, subdivision 3; 383B.237;
383B.239; 383B.245; 383B.247.
Patrick E. Flahaven, Secretary of the Senate
CONCURRENCE
AND REPASSAGE
Carlson moved that the House concur in the Senate amendments to
H. F. No. 1973 and that the bill be repassed as amended by the
Senate.
MOTION
TO LAY ON THE TABLE
Kohls moved that the Carlson motion be laid on the table.
A roll call was requested and properly seconded.
The question was taken on the Kohls motion and the roll was
called. There were 42 yeas and 90 nays
as follows:
Those who voted in the affirmative were:
Anderson, B.
Anderson, S.
Beard
Berns
Brod
Buesgens
Cornish
Dean
DeLaForest
Demmer
Eastlund
Emmer
Erickson
Finstad
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Hoppe
Howes
Kohls
Lanning
Magnus
McFarlane
McNamara
Nornes
Olson
Paulsen
Peppin
Ruth
Seifert
Severson
Shimanski
Simpson
Sviggum
Urdahl
Wardlow
Westrom
Zellers
Those who voted in the negative were:
Abeler
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Erhardt
Faust
Fritz
Gardner
Greiling
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kranz
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Mahoney
Mariani
Marquart
Masin
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Otremba
Ozment
Paymar
Pelowski
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruud
Sailer
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Swails
Thao
Thissen
Tillberry
Tingelstad
Tschumper
Wagenius
Walker
Ward
Welti
Winkler
Wollschlager
Spk. Kelliher
The motion did not prevail.
Emmer moved that the House refuse to concur in the Senate
amendments to H. F. No. 1973, that the Speaker appoint a
Conference Committee of 3 members of the House, and that the House requests
that a like committee be appointed by the Senate to confer on the disagreeing
votes of the two houses.
A roll call was requested and properly seconded.
The question was taken on the Emmer motion and the roll was
called. There were 45 yeas and 87 nays
as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, S.
Beard
Berns
Brod
Buesgens
Cornish
Dean
DeLaForest
Demmer
Eastlund
Emmer
Erickson
Finstad
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Hoppe
Howes
Kohls
Kranz
Lanning
Magnus
McFarlane
McNamara
Nornes
Olson
Paulsen
Ruth
Seifert
Severson
Shimanski
Simpson
Smith
Sviggum
Tingelstad
Urdahl
Wardlow
Westrom
Zellers
Those who voted in the negative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Erhardt
Faust
Fritz
Gardner
Greiling
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Mahoney
Mariani
Marquart
Masin
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Otremba
Ozment
Paymar
Pelowski
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruud
Sailer
Sertich
Simon
Slawik
Slocum
Solberg
Swails
Thao
Thissen
Tillberry
Tschumper
Wagenius
Walker
Ward
Welti
Winkler
Wollschlager
Spk. Kelliher
The motion did not prevail.
The question recurred on the Carlson motion that the House
concur in the Senate amendments to H. F. No. 1973 and that the bill be
repassed, as amended by the Senate, and the roll was called. There were 86 yeas and 45 nays as follows:
Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Erhardt
Faust
Fritz
Gardner
Greiling
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Mahoney
Mariani
Marquart
Masin
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Otremba
Ozment
Paymar
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruud
Sailer
Sertich
Simon
Slawik
Slocum
Solberg
Swails
Thao
Thissen
Tillberry
Tingelstad
Tschumper
Wagenius
Walker
Ward
Welti
Winkler
Wollschlager
Spk. Kelliher
Those who voted in the negative were:
Abeler
Anderson, B.
Anderson, S.
Beard
Berns
Brod
Buesgens
Cornish
Dean
DeLaForest
Demmer
Eastlund
Emmer
Erickson
Finstad
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Heidgerken
Holberg
Hoppe
Howes
Kohls
Kranz
Lanning
Magnus
McFarlane
McNamara
Nornes
Olson
Paulsen
Peppin
Ruth
Seifert
Severson
Shimanski
Simpson
Smith
Sviggum
Urdahl
Wardlow
Westrom
Zellers
The motion prevailed.
H. F. No. 1973, A bill for an act relating to local
government; enabling the merger of the Minneapolis Public Library and the
Hennepin County library system; authorizing the transfer of property, assets,
and certain bond proceeds related to the Minneapolis Public Library to Hennepin
County; authorizing the transfer of Minneapolis Public Library employees to
Hennepin County; amending Minnesota Statutes 2006, sections 275.065,
subdivision 3; 383B.237; 383B.239; 383B.245; 383B.247.
The bill was read for the third time, as amended by the Senate,
and placed upon its repassage.
The question was taken on the repassage of the bill and the
roll was called. There were 96 yeas and
36 nays as follows:
Those who voted in the affirmative were:
Abeler
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davnie
Dill
Dittrich
Dominguez
Doty
Eken
Erhardt
Faust
Fritz
Gardner
Greiling
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Moe
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Norton
Olin
Olson
Otremba
Ozment
Paymar
Pelowski
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruth
Ruud
Sailer
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Swails
Thao
Thissen
Tillberry
Tingelstad
Tschumper
Urdahl
Wagenius
Walker
Ward
Welti
Winkler
Wollschlager
Spk. Kelliher
Those who voted in the negative were:
Anderson, B.
Anderson, S.
Beard
Berns
Brod
Buesgens
Cornish
Dean
DeLaForest
Demmer
Eastlund
Emmer
Erickson
Finstad
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Holberg
Hoppe
Howes
Kohls
Kranz
Magnus
Nornes
Paulsen
Peppin
Seifert
Severson
Shimanski
Simpson
Sviggum
Wardlow
Westrom
Zellers
The bill was repassed, as amended by the Senate, and its title
agreed to.
Madam Speaker:
I hereby announce the passage by the Senate of the following
Senate File, herewith transmitted:
S. F. No. 590.
Patrick E. Flahaven, Secretary of the Senate
FIRST
READING OF SENATE BILLS
S. F.
No. 590, A resolution exhorting Congress to reform the federal Montgomery GI
Bill for the Selected Reserves to permit members of the National Guard and
reserves who have been mobilized into federal active duty in support of current
wars to receive and use their federal educational benefits following separation
from active reserve status and final discharge from the military.
The
bill was read for the first time.
Severson
moved that S. F. No. 590 and H. F. No. 903, now on the General Register, be
referred to the Chief Clerk for comparison.
The motion prevailed.
CALENDAR FOR THE DAY
S. F. No. 430 was reported to the House.
Murphy, M., moved to amend S. F. No. 430, the
third engrossment, as follows:
Delete everything after the enacting clause and insert the
following language of H. F. No. 1978, the third engrossment:
"ARTICLE
1
VARIOUS
CLARIFICATIONS AND CORRECTIONS
Section
1. Minnesota Statutes 2006, section
3A.05, is amended to read:
3A.05 APPLICATION FOR SURVIVOR BENEFIT.
(a)
Applications for survivor benefits under section 3A.04 must be filed with the
director by the surviving spouse and dependent child or children entitled to
benefits under section 3A.04, or by the guardian of the estate, if there is
one, of the dependent child or children.
(b)
Survivor benefits accrue as of the first day of the month following the death
of the member of the legislature or former legislator and payments commence as
of the first of the month next following the filing of the application, and are
retroactive to the date the benefit accrues or the first of the month occurring
12 months before the month in which the application is filed with the director,
whichever is earlier later.
EFFECTIVE DATE. This section is effective retroactively to July 1, 2006.
Sec.
2. Minnesota Statutes 2006, section
13.632, subdivision 1, is amended to read:
Subdivision
1. Beneficiary
and survivor data. The following
data on beneficiaries and survivors of the Minneapolis Teachers Retirement
Fund Association, the St. Paul Teachers Retirement Fund Association,
and the Duluth Teachers Retirement Fund Association members are private data on
individuals: home address, date of birth, direct deposit number, and tax
withholding data.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
3. Minnesota Statutes 2006, section
126C.41, subdivision 4, is amended to read:
Subd.
4. Minneapolis
health insurance subsidy. Each year
Special School District No. 1, Minneapolis, may make an additional levy not to
exceed the amount raised by a net tax rate of .10 percent times the adjusted
net tax capacity for taxes payable in 1991 and thereafter of the property in
the district for the preceding year.
The proceeds may be used only to subsidize health insurance costs for
eligible teachers as provided in this section.
"Eligible
teacher" means a retired teacher who is a retired member of the
Teachers Retirement Association, who was a basic member of the former Minneapolis
Teachers Retirement Fund Association, who retired before May 1, 1974, or who
had 20 or more years of basic member service in the former Minneapolis
Teachers Retirement Fund Association and retired before June 30, 1983, and who
is not eligible to receive the hospital insurance benefits of the federal
Medicare program of the Social Security Act without payment of a monthly
premium. The district must notify
eligible teachers that a subsidy is available.
To obtain a subsidy, an eligible teacher must submit to the school
district a copy of receipts for health insurance premiums paid. The district must disburse the health
insurance premium subsidy to each eligible teacher according to a schedule
determined by the district, but at least annually. An eligible teacher may receive a subsidy up to an amount equal
to the lesser of 90 percent of the cost of the eligible teacher's health
insurance or up to 90 percent of the cost of the number two qualified plan of
health coverage for individual policies made available by the Minnesota
comprehensive health association under chapter 62E.
If
funds remaining from the previous year's health insurance subsidy levy, minus
the previous year's required subsidy amount, are sufficient to pay the
estimated current year subsidy, the levy must be discontinued until the
remaining funds are estimated by the school board to be insufficient to pay the
subsidy.
This
subdivision does not extend benefits to teachers who retire after June 30,
1983, and does not create a contractual right or claim for altering the
benefits in this subdivision. This
subdivision does not restrict the district's right to modify or terminate
coverage under this subdivision.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec. 4. Minnesota Statutes 2006, section 353.01,
subdivision 2b, is amended to read:
Subd.
2b. Excluded employees. The
following public employees are not eligible to participate as members of the
association with retirement coverage by the public employees retirement plan,
the local government correctional employees retirement plan under chapter 353E,
or the public employees police and fire retirement plan:
(1)
public officers, other than county sheriffs, who are elected to a governing
body, or persons who are appointed to fill a vacancy in an elective office of a
governing body, whose term of office commences on or after July 1, 2002, for
the service to be rendered in that elective position. Elected governing body officials who were active members of the
association's coordinated or basic retirement plans as of June 30, 2002,
continue participation throughout incumbency in office until termination of
public service occurs as defined in subdivision 11a;
(2)
election officers or election judges;
(3)
patient and inmate personnel who perform services for a governmental
subdivision;
(4)
except as otherwise specified in subdivision 12a, employees who are hired for a
temporary position as defined under subdivision 12a, and employees who resign
from a nontemporary position and accept a temporary position within 30 days in
the same governmental subdivision;
(5)
employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster;
(6)
employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or
funds administered by the Minnesota State Retirement System, the Teachers
Retirement Association, the Duluth Teachers Retirement Fund Association, the
Minneapolis Teachers Retirement Fund Association, the St. Paul Teachers
Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any
police or firefighters relief association governed by section 69.77 that has
not consolidated with the Public Employees Retirement Association, or any local
police or firefighters consolidation account who have not elected the type of
benefit coverage provided by the public employees police and fire fund under
sections 353A.01 to 353A.10, or any persons covered by section 353.665,
subdivision 4, 5, or 6, who have not elected public employees police and fire
plan benefit coverage. This clause must
not be construed to prevent a person from being a member of and contributing to
the Public Employees Retirement Association and also belonging to and
contributing to another public pension plan or fund for other service occurring
during the same period of time. A
person who meets the definition of "public employee" in subdivision 2
by virtue of other service occurring during the same period of time becomes a
member of the association unless contributions are made to another public
retirement fund on the salary based on the other service or to the Teachers
Retirement Association by a teacher as defined in section 354.05, subdivision
2;
(7)
persons who are members of a religious order and are excluded from coverage
under the federal Old Age, Survivors, Disability, and Health Insurance Program
for the performance of service as specified in United States Code, title 42,
section 410(a)(8)(A), as amended through January 1, 1987, if no irrevocable
election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1954, as amended;
(8)
employees of a governmental subdivision who have not reached the age of 23 and
are enrolled on a full-time basis to attend or are attending classes on a
full-time basis at an accredited school, college, or university in an
undergraduate, graduate, or professional-technical program, or a public or
charter high school;
(9)
resident physicians, medical interns, and pharmacist residents and pharmacist
interns who are serving in a degree or residency program in public hospitals;
(10)
students who are serving in an internship or residency program sponsored by an
accredited educational institution;
(11)
persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;
(12)
except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
foreign citizens working for a governmental subdivision with a work permit of
less than three years, or an H-1b visa valid for less than three years of
employment. Upon notice to the
association that the work permit or visa extends beyond the three-year period,
the foreign citizens must be reported for membership from the date of the
extension;
(13)
public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988,
to October 1, 1988;
(14)
except as provided in section 353.86, volunteer ambulance service personnel, as
defined in subdivision 35, but persons who serve as volunteer ambulance service
personnel may still qualify as public employees under subdivision 2 and may be members
of the Public Employees Retirement Association and participants in the public
employees retirement fund or the public employees police and fire fund,
whichever applies, on the basis of compensation received from public employment
service other than service as volunteer ambulance service personnel;
(15)
except as provided in section 353.87, volunteer firefighters, as defined in
subdivision 36, engaging in activities undertaken as part of volunteer
firefighter duties; provided that a person who is a volunteer firefighter may
still qualify as a public employee under subdivision 2 and may be a member of
the Public Employees Retirement Association and a participant in the public
employees retirement fund or the public employees police and fire fund, whichever
applies, on the basis of compensation received from public employment
activities other than those as a volunteer firefighter;
(16)
pipefitters and associated trades personnel employed by Independent School
District No. 625, St. Paul, with coverage under a collective bargaining
agreement by the pipefitters local 455 pension plan who were either first
employed after May 1, 1997, or, if first employed before May 2, 1997, elected
to be excluded under Laws 1997, chapter 241, article 2, section 12;
(17)
electrical workers, plumbers, carpenters, and associated trades personnel
employed by Independent School District No. 625, St. Paul, or the city of St.
Paul, who have retirement coverage under a collective bargaining agreement by
the Electrical Workers Local 110 pension plan, the United Association Plumbers
Local 34 pension plan, or the Carpenters Local 87 pension plan who were either
first employed after May 1, 2000, or, if first employed before May 2, 2000,
elected to be excluded under Laws 2000, chapter 461, article 7, section 5;
(18)
bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
painters, allied tradesworkers, and plasterers employed by the city of St. Paul
or Independent School District No. 625, St. Paul, with coverage under a collective
bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension
plan, the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers
Local L-1324 pension plan, the Painters and Allied Trades Local 61 pension
plan, or the Twin Cities Plasterers Local 265 pension plan who were either
first employed after May 1, 2001, or if first employed before May 2, 2001,
elected to be excluded under Laws 2001, First Special Session chapter 10,
article 10, section 6;
(19)
plumbers employed by the Metropolitan Airports Commission, with coverage under
a collective bargaining agreement by the Plumbers Local 34 pension plan, who
either were first employed after May 1, 2001, or if first employed before May
2, 2001, elected to be excluded under Laws 2001, First Special Session chapter
10, article 10, section 6;
(20)
employees who are hired after June 30, 2002, to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to 185
consecutive calendar days or less in each year of employment with the
governmental subdivision;
(21)
persons who are provided supported employment or work-study positions by a
governmental subdivision and who participate in an employment or industries
program maintained for the benefit of these persons where the governmental
subdivision limits the position's duration to three years or less, including
persons participating in a federal or state subsidized on-the-job training,
work experience, senior citizen, youth, or unemployment relief program where
the training or work experience is not provided as a part of, or for, future
permanent public employment;
(22)
independent contractors and the employees of independent contractors; and
(23)
reemployed annuitants of the association during the course of that
reemployment.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec. 5. Minnesota Statutes 2006, 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.
(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 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 for
service rendered before July 1, 2006:
|
|
Coordinated Member |
|
Basic Member |
Each year of service
during first ten |
|
the percent specified in
section 356.315, subdivision 1, per year |
|
the percent specified in
section 356.315, subdivision 3, per year |
Each year of service
thereafter |
|
the percent specified in
section 356.315, subdivision 2, per year |
|
the percent specified in
section 356.315, subdivision 4, per year |
For
service rendered on or after July 1, 2006, the average salary as defined in
section 354.05, subdivision 13a, multiplied by the following percentages per
year of service credit, determines the amount the annuity to which the member
qualifying therefor is entitled:
|
|
Coordinated Member |
|
Basic Member |
Each year of service
during first ten |
|
the percent specified in
section 356.315, subdivision 1a, per year |
|
the percent specified in
section 356.315, subdivision 3, per year |
Each year of service after
ten years of service |
|
the percent specified in
section 356.315, subdivision 2b, per year |
|
the percent specified in
section 356.315, subdivision 4, 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). For a basic member, the average salary, as
defined in 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
shall determine the amount of the retirement annuity to which the basic member
is entitled. The annuity of a basic
member who was a member of the former Minneapolis Teachers Retirement Fund
Association as of June 30, 2006, must be determined according to the annuity
formula under the articles of incorporation of the former Minneapolis Teachers
Retirement Fund Association in effect as of that date. For a coordinated member, the average
salary, as defined in section 354.05, subdivision 13a, multiplied by the
percent specified in section 356.315, subdivision 2, for each year of service
rendered before July 1, 2006, and by the percent specified in section 356.315,
subdivision 2b, for each year of service rendered on or after July 1, 2006,
determines the amount of the retirement annuity to which the coordinated 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 if the employee became an
employee before July 1, 2006, and at 2.5 percent compounded annually if the
employee becomes an employee after June 30, 2006.
(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.
EFFECTIVE DATE. This section is effective retroactively to July 1, 2006.
Sec.
6. Minnesota Statutes 2006, section
354A.12, subdivision 3b, is amended to read:
Subd.
3b. Special direct state matching aid to the Teachers Retirement
Association. (a) Special School
District No. 1 must make an additional employer contribution to the Teachers
Retirement Fund Association. The city
of Minneapolis must make a contribution to the Teachers Retirement Association. This contribution must be made by a levy of
the board of estimate and taxation of the city of Minneapolis and the levy, if
made, is classified as that of a special taxing district for purposes of
sections 275.065 and 276.04, and for all other property tax purposes.
(b) $1,125,000
$1,250,000 must be contributed by Special School District No. 1 and $1,125,000
$1,250,000 must be contributed by the city of Minneapolis to the
Teachers Retirement Association under paragraph (a), and the state shall pay to
the Teachers Retirement Association $2,500,000 each fiscal year. The superintendent of Special School
District No. 1, the mayor of the city of Minneapolis, and the executive
director of the Teachers Retirement Association shall jointly certify to the
commissioner of finance the total amount that has been contributed by Special
School District No. 1 and by the city of Minneapolis to the Teachers Retirement
Association. Any certification to the
commissioner of education must be made quarterly. If the total certifications for a fiscal year exceed the maximum
annual direct state matching aid amount in any quarter, the amount of direct
state matching aid payable to the Teachers Retirement Association must be
limited to the balance of the maximum annual direct state matching aid amount
available. The amount required under
this paragraph, subject to the maximum direct state matching aid amount, is
appropriated annually to the commissioner of finance.
(c) The commissioner of finance
may prescribe the form of the certifications required under paragraph (b).
EFFECTIVE DATE. This section is effective retroactively to July 1, 2006.
Sec.
7. Minnesota Statutes 2006, section
354A.12, subdivision 3c, is amended to read:
Subd.
3c. Termination of supplemental contributions and direct matching and state
aid. (a) The supplemental
contributions payable to the Minneapolis Teachers Retirement Fund Association
by Special School District No. 1 and the city of Minneapolis under section
423A.02, subdivision 3, which must continue to be paid to the Teachers
Retirement Association until 2037, or. The supplemental contributions payable to the St. Paul
Teachers Retirement Fund Association by Independent School District No. 625
under section 423A.02, subdivision 3, or the direct state aids under
subdivision 3a to the St. Paul Teachers Retirement Fund Association terminate
at the end of the fiscal year in which the accrued liability funding ratio for
that fund, as determined in the most recent actuarial report for that fund by
the actuary retained under section 356.214, equals or exceeds the accrued
liability funding ratio for the teachers retirement association, as determined
in the most recent actuarial report for the Teachers Retirement Association by
the actuary retained under section 356.214.
(b) If
the state direct matching, state supplemental, or state aid is terminated for a
first class city teachers retirement fund association under paragraph (a), it
may not again be received by that fund.
(c) If
the St. Paul Teachers Retirement Fund Association is funded at the funding
ratio applicable to the Teachers Retirement Association when the provisions of
paragraph (b) become effective, then any state aid previously distributed to
that association must be immediately transferred to the Teachers Retirement
Association.
EFFECTIVE DATE. This section is effective retroactively to July 1, 2006.
Sec.
8. Minnesota Statutes 2006, section
354A.12, subdivision 3d, is amended to read:
Subd.
3d. Supplemental administrative expense assessment. (a) The active and retired membership of the
St. Paul Teachers Retirement Fund Association is responsible for defraying
supplemental administrative expenses other than investment expenses of the
respective teacher retirement fund association.
(b) Investment
expenses of the teachers retirement fund association are those expenses
incurred by or on behalf of the retirement fund in connection with the
investment of the assets of the retirement fund other than investment security
transaction costs. Other administrative
expenses are all expenses incurred by or on behalf of the retirement fund for
all other retirement fund functions other than the investment of retirement
fund assets. Investment and other
administrative expenses must be accounted for using generally accepted
accounting principles and in a manner consistent with the comprehensive annual
financial report of the teachers retirement fund association for the
immediately previous fiscal year under section 356.20.
(c)
Supplemental administrative expenses other than investment expenses of the St.
Paul Teachers Retirement Fund Association are those expenses for the fiscal
year that:
(1)
exceed, for the St. Paul Teachers Retirement Fund Association, $443,745 plus
an additional amount derived by applying the percentage increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers All Items
Index published by the Bureau of Labor Statistics of the United States
Department of Labor since July 1, 2001, to the dollar amount; and
(2) exceed
the amount computed by applying the most recent percentage of pay
administrative expense amount, other than investment expenses, for the teachers
retirement association governed by chapter 354 to the covered payroll of the
respective teachers retirement fund association for the fiscal year.
(d) The board of trustees of
the St. Paul Teachers Retirement Fund Association shall allocate the total
dollar amount of supplemental administrative expenses other than investment
expenses determined under paragraph (c), clause (2), among the various active
and retired membership groups of the teachers retirement fund association and
shall assess the various membership groups their respective share of the
supplemental administrative expenses other than investment expenses, in amounts
determined by the board of trustees.
The supplemental administrative expense assessments must be paid by the
membership group in a manner determined by the board of trustees of the
respective teachers retirement association.
Supplemental administrative expenses payable by the active members of
the pension plan must be picked up by the employer in accordance with section
356.62.
(e)
With respect to the St. Paul Teachers Retirement Fund Association, the
supplemental administrative expense assessment must be fully disclosed to the
various active and retired membership groups of the teachers retirement fund
association. The chief administrative
officer of the St. Paul Teachers Retirement Fund Association shall prepare a
supplemental administrative expense assessment disclosure notice, which must
include the following:
(1)
the total amount of administrative expenses of the St. Paul Teachers Retirement
Fund Association, the amount of the investment expenses of the St. Paul
Teachers Retirement Fund Association, and the net remaining amount of
administrative expenses of the St. Paul Teachers Retirement Fund Association;
(2)
the amount of administrative expenses for the St. Paul Teachers Retirement Fund
Association that would be equivalent to the teachers retirement association
noninvestment administrative expense level described in paragraph (c);
(3)
the total amount of supplemental administrative expenses required for
assessment calculated under paragraph (c);
(4)
the portion of the total amount of the supplemental administrative expense
assessment allocated to each membership group and the rationale for that
allocation;
(5)
the manner of collecting the supplemental administrative expense assessment
from each membership group, the number of assessment payments required during
the year, and the amount of each payment or the procedure used to determine
each payment; and
(6)
any other information that the chief administrative officer determines is
necessary to fairly portray the manner in which the supplemental administrative
expense assessment was determined and allocated.
(f)
The disclosure notice must be provided annually in the annual report of the
association.
(g)
The supplemental administrative expense assessments must be deposited in the
applicable teachers retirement fund upon receipt.
(h)
Any omitted active membership group assessments that remain undeducted and
unpaid to the teachers retirement fund association for 90 days must be paid by
the respective school district. The
school district may recover any omitted active membership group assessment
amounts that it has previously paid.
The teachers retirement fund association shall deduct any omitted
retired membership group assessment amounts from the benefits next payable
after the discovery of the omitted amounts.
EFFECTIVE DATE. This section is effective retroactively to July 1, 2006.
Sec. 9. Minnesota Statutes 2006, section 354B.21,
subdivision 3, is amended to read:
Subd.
3. Default
coverage. (a) Prior to making an
election under subdivision 2, or if an eligible person fails to elect coverage
by the plan under subdivision 2 or if the person fails to make a timely
election, the following retirement coverage applies:
(1)
for employees of the board who are employed in faculty positions in the
technical colleges, in the state universities or in the community colleges, the
retirement coverage is by the plan established by this chapter;
(2)
for employees of the board who are employed in faculty positions in the
technical colleges, the retirement coverage is by the plan established by this
chapter unless on June 30, 1997, the employee was a member of the Teachers
Retirement Association established under chapter 354 and then the retirement
coverage is by the Teachers Retirement Association, or, unless the employee was
a member of a first class city teacher retirement fund established under
chapter 354A on June 30, 1995, and then the retirement coverage is by the
Duluth Teachers Retirement Fund Association if the person was a member of that
plan on June 30, 1995, or the Minneapolis Teachers Retirement Fund
Association Teachers Retirement Association if the person was a
member of that plan the former Minneapolis Teachers Retirement Fund
Association on June 30, 1995, or the St. Paul Teachers Retirement Fund
Association if the person was a member of that plan on June 30, 1995; and
(3)
for employees of the board who are employed in eligible unclassified
administrative positions, the retirement coverage is by the plan established by
this chapter.
(b) If
an employee fails to correctly certify prior membership in the Teachers
Retirement Association to the Minnesota State colleges and Universities system,
the system shall not pay interest on employee contributions, employer
contributions, and additional employer contributions to the Teachers Retirement
Association under section 354.52, subdivision 4.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
10. Minnesota Statutes 2006, section
355.01, subdivision 3h, is amended to read:
Subd.
3h. Minneapolis teacher.
"Minneapolis teacher" means a person employed by Special
School District No. 1, Minneapolis, who holds a position covered by the Minneapolis
Teachers Retirement Fund Association established Teachers Retirement
Association under chapter 354A section 354.70.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
11. Minnesota Statutes 2006, section
356A.06, subdivision 6, is amended to read:
Subd.
6. Limited
list of authorized investment securities.
(a) Except to the extent otherwise authorized by law, a covered pension
plan may invest its assets only in investment securities authorized by this
subdivision if the plan does not:
(1)
have assets with a book value in excess of $1,000,000;
(2)
use the services of an investment advisor registered with the Securities and
Exchange Commission in accordance with the Investment Advisers Act of 1940, or
registered as an investment advisor in accordance with sections 80A.58,
and 80A.59 80A.60, for the investment of at least 60 percent of
its assets, calculated on book value;
(3)
use the services of the State Board of Investment for the investment of at
least 60 percent of its assets, calculated on book value; or
(4)
use a combination of the services of an investment advisor meeting the
requirements of clause (2) and the services of the State Board of Investment
for the investment of at least 75 percent of its assets, calculated on book
value.
(b)
Investment securities authorized for a pension plan covered by this subdivision
are:
(1)
certificates of deposit issued, to the extent of available insurance or
collateralization, by a financial institution that is a member of the Federal
Deposit Insurance Corporation or the Federal Savings and Loan Insurance
Corporation, is insured by the National Credit Union Administration, or is
authorized to do business in this state and has deposited with the chief
administrative officer of the plan a sufficient amount of marketable securities
as collateral in accordance with section 118A.03;
(2)
savings accounts, to the extent of available insurance, with a financial
institution that is a member of the Federal Deposit Insurance Corporation or
the Federal Savings and Loan Insurance Corporation;
(3)
governmental obligations, including bonds, notes, bills, or other fixed
obligations, issued by the United States, an agency or instrumentality of the
United States, an organization established and regulated by an act of Congress
or by a state, state agency or instrumentality, municipality, or other
governmental or political subdivision that:
(i)
for the obligation in question, issues an obligation that equals or exceeds the
stated investment yield of debt securities not exempt from federal income
taxation and of comparable quality;
(ii)
for an obligation that is a revenue bond, has been completely self-supporting
for the last five years; and
(iii)
for an obligation other than a revenue bond, has issued an obligation backed by
the full faith and credit of the applicable taxing jurisdiction and has not
been in default on the payment of principal or interest on the obligation in
question or any other nonrevenue bond obligation during the preceding ten
years;
(4)
corporate obligations, including bonds, notes, debentures, or other regularly
issued and readily marketable evidences of indebtedness issued by a corporation
organized under the laws of any state that during the preceding five years has
had on average annual net pretax earnings at least 50 percent greater than the
annual interest charges and principal payments on the total issued debt of the
corporation during that period and that, for the obligation in question, has
issued an obligation rated in one of the top three quality categories by
Moody's Investors Service, Incorporated, or Standard and Poor's Corporation;
and
(5)
shares in an open-end investment company registered under the federal
Investment Company Act of 1940, if the portfolio investments of the company are
limited to investments that meet the requirements of clauses (1) to (4).
EFFECTIVE DATE. This section is effective retroactively to August 1, 2006.
Sec.
12. Minnesota Statutes 2006, section
423A.02, subdivision 3, is amended to read:
Subd.
3. Reallocation
of amortization or supplementary amortization state aid. (a) Seventy percent of the difference
between $5,720,000 and the current year amortization aid or supplemental
amortization aid distributed under subdivisions 1 and 1a that is not
distributed for any reason to a municipality for use by a local police or
salaried fire relief association must be distributed by the commissioner of
revenue according to this paragraph.
The commissioner shall distribute 70 percent of the amounts derived
under this paragraph to the made
on or before June 30 each fiscal year.
The amount required under this paragraph is appropriated annually from
the general fund to the commissioner of revenue. If Minneapolis Teachers Retirement Fund Association
Teachers Retirement Association and 30 percent to the St. Paul Teachers
Retirement Fund Association to fund the unfunded actuarial accrued liabilities
of the respective funds. These payments
shall be either the Minneapolis Teachers Retirement Fund Association
or the St. Paul Teachers Retirement Fund Association becomes funded at
the funding ratio applicable to the teachers retirement association based on
the actuarial reports prepared by the actuary for the Legislative Commission on
Pensions and Retirement, then the commissioner shall distribute that fund's
share under this paragraph to the other fund.
The appropriation under this paragraph terminates when both funds become
fully funded, its eligibility for this aid ceases. Amounts remaining in the undistributed
balance account at the end of the biennium if aid eligibility ceases cancel
to the general fund.
(b) In
order to receive amortization and supplementary amortization aid under
paragraph (a), Independent School District No. 625, St. Paul, must make
contributions to the St. Paul Teachers Retirement Fund Association in
accordance with the following schedule:
|
Fiscal Year |
|
Amount |
|
1996 |
|
$0 |
|
1997 |
|
$0 |
|
1998 |
|
$200,000 |
|
1999 |
|
$400,000 |
|
2000 |
|
$600,000 |
|
2001 and thereafter |
$800,000 |
(c) In
order to receive amortization and supplementary amortization aid under paragraph
(a), Special School District No. 1, Minneapolis, and the city of
Minneapolis must each make contributions to the Minneapolis Teachers
Retirement Fund Association Teachers Retirement Association in
accordance with the following schedule:
|
Fiscal Year |
City
amount |
|
School
district amount |
|
1996 |
$0 |
|
$0 |
|
1997 |
$0 |
|
$0 |
|
1998 |
$250,000 |
|
$250,000 |
|
1999 |
$400,000 |
|
$400,000 |
|
2000 |
$550,000 |
|
$550,000 |
|
2001 |
$700,000 |
|
$700,000 |
|
2002 |
$850,000 |
|
$850,000 |
|
2003 and thereafter |
$1,000,000 |
|
$1,000,000 |
(d)
Money contributed under paragraph (a) and either paragraph (b) or (c), as
applicable, must be credited to a separate account in the applicable teachers
retirement fund and may not be used in determining any benefit increases. The separate account terminates for a fund
when the aid payments to the fund under paragraph (a) cease.
(e)
Thirty percent of the difference between $5,720,000 and the current year
amortization aid or supplemental amortization aid under subdivisions 1 and 1a
that is not distributed for any reason to a municipality for use by a local
police or salaried firefighter relief association must be distributed under
section 69.021, subdivision 7, paragraph (d), as additional funding to support
a minimum fire state aid amount for volunteer firefighter relief
associations. The amount required under
this paragraph is appropriated annually to the commissioner of revenue.
EFFECTIVE DATE. This section is effective retroactively to July 1, 2006.
Sec.
13. Minnesota Statutes 2006, section
423A.02, subdivision 5, is amended to read:
Subd.
5. Termination
of state aid programs. The
amortization state aid, supplemental amortization state aid, and additional
amortization state aid programs terminate as of the December 31, next following
the date of the actuarial valuation when the assets of the Minneapolis
Teachers Retirement Fund Association equal the actuarial accrued liability of
that plan and when the assets of the St. Paul Teachers Retirement Fund
Association equal the actuarial accrued liability of that plan or December 31,
2009, whichever is later.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
14. Laws 2006, chapter 271, article 2,
section 12, subdivision 1, is amended to read:
Subdivision
1. Election
of prior state coverage. (a) An
employee in the occupational position of laundry coordinator or delivery van
driver at the Minnesota Correctional Facility-Faribault who has future
retirement coverage transferred to the correctional state employees retirement
plan under section 5 is entitled to elect to obtain prior service credit for
eligible correctional state service performed after June 30, 1997, and before
July 1, 2006, with the Department of Corrections and an employee who had future
retirement coverage transferred to the correctional state employees retirement
plan under Laws 2004, chapter 267, article 1, section 1, is entitled to elect
to obtain prior service credit for eligible correctional state service
performed at the Minnesota Correctional Facility-Rush City before August 1,
2004. All prior service credit in
either instance must be purchased.
(b)
Eligible correctional state service is either a prior period of continuous
service after June 30, 1997, at the Minnesota Correctional Facility-Faribault,
or a prior period of continuous service at the Minnesota Correctional
Facility-Rush City before August 1, 2004, whichever applies, performed as an
employee of the Department of Corrections that would have been eligible for the
correctional state employees retirement plan coverage under section 1, if that
prior service had been performed after August 1, 2004, or June 30, 2006, rather
than before August 1, 2004, or July 1, 2006, whichever applies. Service is continuous if there has been no
period of discontinuation of eligible state service for a period greater than
30 calendar days.
(c)
The commissioner of corrections shall certify eligible correctional state
service to the commissioner of employee relations and to the executive director
of the Minnesota State Retirement System.
(d) A
correctional employee covered under section 1 this subdivision is
entitled to purchase the past service if the department certifies that the
employee met the eligibility requirements for coverage. The employee must make additional employee
contributions. Payment for past service
must be completed by June 30, 2007.
EFFECTIVE DATE. This section is effective retroactively to June 14, 2006.
Sec.
15. Laws 2006, chapter 271, article 2,
section 13, subdivision 3, is amended to read:
Subd. 3. Employee equivalent contribution. To receive the transfer of service credit
specified in subdivision 1, the individual must pay to the executive director of the Minnesota
State Retirement System the difference between the
employee contribution rate for the general state employees retirement plan and
the employee contribution rate for the correctional state employees retirement
plan in effect during the period eligible for transfer applied to the eligible
individual's salary at the time each additional contribution would have been
deducted from pay if coverage had been provided by the correctional state
employees retirement plan. These
amounts shall be paid in a lump sum by September 1, 2005 2007, or
prior to termination of service, whichever is earlier, plus 8.5 percent annual
compound interest from the applicable payroll deduction date until paid.
EFFECTIVE DATE. This section is effective retroactively to July 1, 2006.
Sec.
16. Laws 2006, chapter 271, article 14,
section 2, subdivision 3, is amended to read:
Subd.
3. Payment. If an eligible person meets the requirements
to purchase service credit under this section, the public employees police and
fire fund must be paid the amount determined under Minnesota Statutes, section
356.551. Of this amount:
(1)
the eligible person must pay an amount equal to the employee contribution rate
during the period of service to be purchased, applied to the actual salary in
effect during that period, plus interest at the rate of 8.5 percent per year
compounded annually from the date on which the contributions should have been
made to the date on which payment is made under this section; and
(2)
the city of Faribault must pay the remainder of the amount determined under
Minnesota Statutes, section 356.551.
EFFECTIVE DATE. This section is effective retroactively to June 2, 2006.
ARTICLE
2
ADMINISTRATIVE
PROVISIONS
Section
1. Minnesota Statutes 2006, 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, before July 1, 1994.
(b)
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 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 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.
(c)
The retirement allowance accrues beginning with the first day of the month
of receipt of the application, following the receipt by the director of
a retirement application on a form prescribed by the director, but not
before the normal retirement age 60, and, except as specified
in subdivision 1b. The annuity is
payable 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 as defined in section 3A.01,
subdivision 1c. The annuity does not
begin to accrue 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.
(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.
(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.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
2. Minnesota Statutes 2006, 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) (3) employees of the
Minnesota Crop Improvement Association;
(5) (4) employees of the
adjutant general who are paid from federal funds and who are not covered by any
federal civilian employees retirement system;
(6) (5) employees of the
Minnesota State Colleges and Universities employed under the university or
college activities program;
(7) (6) 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) (7) 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) (8) 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) (9) employees of the
Minnesota Safety Council;
(12) (10) 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) (11) 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) (12) judges of the
Tax Court;
(15) (13) 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;
(16) (14) seasonal help
in the classified service employed by the Department of Revenue; and
(17) (15) 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.; and
(16)
employees of the University of Minnesota unless excluded under subdivision 2b,
clause (3).
(b)
Employees specified in paragraph (a), clause (15) (13), 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.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
3. Minnesota Statutes 2006, section
352.01, subdivision 2b, is amended to read:
Subd.
2b. Excluded employees.
"State employee" does not include:
(1)
students employed by the University of Minnesota, or the state colleges and
universities, unless approved for coverage by the Board of Regents of the
University of Minnesota or the Board of Trustees of the Minnesota State
Colleges and Universities, as the case may be whichever is applicable;
(2)
employees who are eligible for membership in the state Teachers Retirement
Association, except employees of the Department of Education who have chosen or
may choose to be covered by the general state employees retirement plan of the
Minnesota State Retirement System instead of the Teachers Retirement
Association;
(3)
employees of the University of Minnesota who are excluded from coverage by
action of the Board of Regents;
(4)
officers and enlisted personnel in the National Guard and the naval militia who
are assigned to permanent peacetime duty and who under federal law are or are
required to be members of a federal retirement system;
(5)
election officers;
(6) persons who are engaged in
public work for the state but who are employed by contractors when the
performance of the contract is authorized by the legislature or other competent
authority;
(7)
officers and employees of the senate, or of the house of representatives, or of
a legislative committee or commission who are temporarily employed;
(8)
receivers, jurors, notaries public, and court employees who are not in the
judicial branch as defined in section 43A.02, subdivision 25, except referees
and adjusters employed by the Department of Labor and Industry;
(9)
patient and inmate help in state charitable, penal, and correctional
institutions including the Minnesota Veterans Home;
(10)
persons who are employed for professional services where the service is
incidental to their regular professional duties and whose compensation is paid
on a per diem basis;
(11)
employees of the Sibley House Association;
(12)
the members of any state board or commission who serve the state intermittently
and are paid on a per diem basis; the secretary, secretary-treasurer, and
treasurer of those boards if their compensation is $5,000 or less per year, or,
if they are legally prohibited from serving more than three years; and the
board of managers of the State Agricultural Society and its treasurer unless
the treasurer is also its full-time secretary;
(13)
state troopers and persons who are described in section 352B.01, subdivision
2, clauses (2) to (6);
(14)
temporary employees of the Minnesota State Fair who are employed on or after
July 1 for a period not to extend beyond October 15 of that year; and persons
who are employed at any time by the state fair administration for special
events held on the fairgrounds;
(15)
emergency employees who are in the classified service; except that if an
emergency employee, within the same pay period, becomes a provisional or
probationary employee on other than a temporary basis, the employee shall be
considered a "state employee" retroactively to the beginning of the
pay period;
(16)
persons who are described in section 352B.01, subdivision 2, clauses (2) to
(6);
(17) (16) temporary
employees in the classified service, and temporary employees in the
unclassified service who are appointed for a definite period of not more than
six months and who are employed less than six months in any one-year period;
(18) (17) interns hired for
six months or less and trainee employees, except those listed in
subdivision 2a, clause (10) (8);
(19) (18) persons whose
compensation is paid on a fee basis or as an independent contractor;
(20) (19) state employees
who are employed by the Board of Trustees of the Minnesota State Colleges and
Universities in unclassified positions enumerated in section 43A.08,
subdivision 1, clause (9);
(21) (20) state employees
who in any year have credit for 12 months service as teachers in the public
schools of the state and as teachers are members of the Teachers Retirement
Association or a retirement system in St. Paul, Minneapolis, or Duluth,
except for incidental employment as a state employee that is not covered by one
of the teacher retirement associations or systems;
(22) (21) employees of
the adjutant general who are employed on an unlimited intermittent or temporary
basis in the classified or unclassified service for the support of Army and Air
National Guard training facilities;
(23) (22) chaplains and
nuns who are excluded from coverage under the federal Old Age, Survivors,
Disability, and Health Insurance Program for the performance of service as
specified in United States Code, title 42, section 410(a)(8)(A), as amended, if
no irrevocable election of coverage has been made under section 3121(r) of the
Internal Revenue Code of 1986, as amended through December 31, 1992;
(24) (23) examination
monitors who are employed by departments, agencies, commissions, and boards to
conduct examinations required by law;
(25) (24) persons who are
appointed to serve as members of fact-finding commissions or adjustment panels,
arbitrators, or labor referees under chapter 179;
(26) (25) temporary
employees who are employed for limited periods under any state or federal
program for training or rehabilitation, including persons who are employed for
limited periods from areas of economic distress, but not including skilled and
supervisory personnel and persons having civil service status covered by the
system;
(27) (26) full-time
students who are employed by the Minnesota Historical Society intermittently
during part of the year and full-time during the summer months;
(28) (27) temporary
employees who are appointed for not more than six months, of the Metropolitan
Council and of any of its statutory boards, if the board members are appointed
by the Metropolitan Council;
(29) (28) persons who are
employed in positions designated by the Department of Employee Relations as student
workers;
(30) (29) members of
trades who are employed by the successor to the Metropolitan Waste Control
Commission, who have trade union pension plan coverage under a collective
bargaining agreement, and who are first employed after June 1, 1977;
(31)
persons who are employed in subsidized on-the-job training, work experience, or
public service employment as enrollees under the federal Comprehensive
Employment and Training Act after March 30, 1978, unless the person has as of
the later of March 30, 1978, or the date of employment sufficient service
credit in the retirement system to meet the minimum vesting requirements for a
deferred annuity, or the employer agrees in writing on forms prescribed by the
director to make the required employer contributions, including any employer
additional contributions, on account of that person from revenue sources other
than funds provided under the federal Comprehensive Employment and Training
Act, or the person agrees in writing on forms prescribed by the director to
make the required employer contribution in addition to the required employee
contribution;
(32) (30) off-duty peace
officers while employed by the Metropolitan Council;
(33) (31) persons who are
employed as full-time police officers by the Metropolitan Council and as police
officers are members of the public employees police and fire fund;
(34) (32) persons who are
employed as full-time firefighters by the Department of Military Affairs and as
firefighters are members of the public employees police and fire fund;
(35) (33) foreign
citizens with a work permit of less than three years, or an H-1b/JV visa valid
for less than three years of employment, unless notice of extension is supplied
which allows them to work for three or more years as of the date the extension
is granted, in which case they are eligible for coverage from the date
extended; and
(36) (34) persons who are
employed by the Board of Trustees of the Minnesota State Colleges and
Universities and who elect to remain members of the Public Employees Retirement
Association or the Minneapolis Employees Retirement Fund, whichever applies,
under section 136C.75.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
4. Minnesota Statutes 2006, section
352.01, subdivision 11, is amended to read:
Subd.
11. Allowable service. (a) "Allowable
service" means:
(1)
Service by an employee for which on or before July 1, 1957, the employee was
entitled to allowable service credit on the records of the system by reason of
employee contributions in the form of salary deductions, payments in lieu of
salary deductions, or in any other manner authorized by Minnesota Statutes
1953, chapter 352, as amended by Laws 1955, chapter 239.
(2) (1) service by an
employee for which on or before July 1, 1961, the employee chose to obtain
credit for service by making payments to the fund under Minnesota Statutes
1961, section 352.24.;
(3)
Except as provided in clauses (8) and (9), (2) service by an employee after July
1, 1957, for any calendar month in which the employee is paid salary from which
deductions are made, deposited, and credited in the fund, including deductions
made, deposited, and credited as provided in section 352.041.;
(4)
Except as provided in clauses (8) and (9), (3) service by an employee after
July 1, 1957, for any calendar month for which payments in lieu of salary
deductions are made, deposited, and credited in the fund, as provided in
section 352.27 and Minnesota Statutes 1957, section 352.021, subdivision 4.;
For
purposes of clauses (3) and (4), except as provided in clauses (8) and (9), any
salary paid for a fractional part of any calendar month, including the month of
separation from state service, is deemed the compensation for the entire
calendar month.
(5) (4) the period of
absence from their duties by employees who are temporarily disabled because of
injuries incurred in the performance of duties and for which disability the
state is liable under the workers' compensation law until the date authorized
by the director for the commencement of payments of a total and permanent
disability benefit from the retirement fund.;
(6) (5) service covered
by a refund repaid as provided in section 352.23 or 352D.05, subdivision 4,
except service rendered as an employee of the adjutant general for which the
person has credit with the federal civil service retirement system.;
(7) (6) service before
July 1, 1978, by an employee of the Transit Operating Division of the
Metropolitan Transit Commission or by an employee on an authorized leave of
absence from the Transit Operating Division of the Metropolitan Transit
Commission who is employed by the labor organization which is the exclusive
bargaining agent representing employees of the Transit Operating Division,
which was credited by the Metropolitan Transit Commission-Transit Operating
Division employees retirement fund or any of its predecessor plans or funds as
past, intermediate, future, continuous, or allowable service as defined in the
Metropolitan Transit Commission-Transit Operating Division employees retirement
fund plan document in effect on December 31, 1977.;
credited
on a fractional basis either by pay period, monthly, or annually based on the
relationship that the percentage of salary earned bears to a full-time salary,
with any salary paid for the fractional service credited on the basis of the
rate of salary applicable for a full-time pay period, month, or a full-time
year. For periods of part-time service
that is duplicated service credit, section 356.30, subdivision 1, clauses (i)
and (j), govern(8) (7) service after
July 1, 1983, by an employee who is employed on a part-time basis for less than
50 percent of full time, for which the employee is paid salary from which
deductions are made, deposited, and credited in the fund, including deductions
made, deposited, and credited as provided in section 352.041 or for which
payments in lieu of salary deductions are made, deposited, and credited in the
fund as provided in section 352.27 shall be .; and
Allowable
service determined and credited on a fractional basis shall be used in
calculating the amount of benefits payable, but service as determined on a
fractional basis must not be used in determining the length of service required
for eligibility for benefits.
(9) (8) any period of
authorized leave of absence without pay that does not exceed one year and for
which the employee obtained credit by payment to the fund in lieu of salary
deductions. To obtain credit, the
employee shall pay an amount equal to the employee and employer contribution
rate in section 352.04, subdivisions 2 and 3, multiplied by the employee's
hourly rate of salary on the date of return from leave of absence and by the
days and months of the leave of absence without pay for which the employee
wants allowable service credit. The
employing department, at its option, may pay the employer amount on behalf of
its employees. Payments made under this
clause must include interest at an annual rate of 8.5 percent compounded
annually from the date of termination of the leave of absence to the date
payment is made unless payment is completed within one year of the return from
leave of absence under section 352.017.
(10)
MS 2002 [Expired]
(11)
[Expired, 2002 c 392 art 2 s 4]
(b)
For purposes of paragraph (a), clauses (2) and (3), any salary that is paid for
a fractional part of any calendar month, including the month of separation from
state service, is deemed to be the compensation for the entire calendar month.
(c)
Allowable service determined and credited on a fractional basis must be used in
calculating the amount of benefits payable, but service as determined on a
fractional basis must not be used in determining the length of service required
for eligibility for benefits.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
authorized leaves of absence that commence on or after the effective date.
Sec.
5. [352.017]
AUTHORIZED LEAVE OF ABSENCE SERVICE CREDIT PURCHASE PROCEDURE.
Subdivision
1. Application. Except for leaves or breaks in service
covered by section 352.27 or 352.275, this section applies to all plans
specified in this chapter for any period of authorized leave of absence without
pay that does not exceed one year and for which the employee obtains credit for
allowable service by making payment as specified in this section to the
applicable fund.
Subd.
2. Purchase
procedure. (a) An employee
covered by a plan specified in this chapter may purchase credit for allowable
service in that plan for a period specified in subdivision 1 if the employee
makes a payment as specified in paragraph (b) or (c), whichever applies. 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 executive director within one year from the end
of the authorized leave, the payment amount is equal to the employee and
employer contribution rates specified in law for the applicable plan at the end
of the leave period multiplied by the employee's hourly rate of salary on the
date of return from the leave of absence and by the days and months of the
leave of absence for which the employee wants allowable service credit. Payments made under this paragraph must
include compound interest at a monthly rate of 0.71 percent from the last day
of the leave period until the last day of the month in which payment is
received.
(c)
If payment is received by the executive director after one year, the payment
amount is the amount determined under section
356.551.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to authorized leaves of absence
that commence on or after the effective date.
Sec.
6. Minnesota Statutes 2006, section
352.12, subdivision 2a, is amended to read:
Subd.
2a. Surviving spouse coverage term certain. (a) In lieu of the 100 percent optional annuity under
subdivision 2, or refund under subdivision 1, the surviving spouse of a
deceased employee or former employee may elect to receive survivor coverage in
a term certain of five, ten, 15, or 20 years, but monthly payments
must not exceed 75 percent of the average high-five monthly salary of the
deceased employee or former employee.
The monthly term certain annuity must be actuarially equivalent to the
100 percent optional annuity under subdivision 2.
(b)
If a
survivor elects a term certain annuity and dies before the expiration of the
specified term certain period, the commuted value of the remaining annuity
payments must be paid in a lump sum to the survivor's estate.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
7. Minnesota Statutes 2006, section
352.27, is amended to read:
352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE
UNIFORMED SERVICE.
(a) An
employee who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who
returns to state service upon discharge from service in the uniformed service
within the time frames required in United States Code, title 38, section
4312(e), may obtain service credit for the period of the uniformed service as
further specified in this section, provided that the employee did not separate
from uniformed service with a dishonorable or bad conduct discharge or under
other than honorable conditions.
(b)
The employee may obtain credit by paying into the fund an equivalent employee
contribution based upon the contribution rate or rates in effect at the time
that the uniformed service was performed multiplied by the full and fractional
years being purchased and applied to the annual salary rate. The annual salary rate is the average annual
salary during the purchase period that the employee would have received if the
employee had continued to be employed in covered employment rather than to
provide uniformed service, or, if the determination of that rate is not
reasonably certain, the annual salary rate is the employee's average salary
rate during the 12-month period of covered employment rendered immediately preceding
the period of the uniformed service.
(c)
The equivalent employer contribution and, if applicable, the equivalent
additional employer contribution provided in section 352.04 chapter
352 must be paid by the department employing the employee from funds
available to the department at the time and in the manner provided in section
352.04 chapter 352, using the employer and additional employer
contribution rate or rates in effect at the time that the uniformed service was
performed, applied to the same annual salary rate or rates used to compute the
equivalent employee contribution.
(d) If
the employee equivalent contributions provided in this section are not paid in
full, the employee's allowable service credit must be prorated by multiplying
the full and fractional number of years of uniformed service eligible for
purchase by the ratio obtained by dividing the total employee contribution
received by the total employee contribution otherwise required under this
section.
(e)
To receive service credit under this section, the contributions specified in
this section must be transmitted to the Minnesota State Retirement System
during the period which begins with the date on which the individual returns to
state service and which has a duration of three times the length of the
uniformed service period, but not to exceed five years. If the determined payment period is less
than one year, the contributions required under this section to receive service
credit may be made within one year of the discharge date.
(f)
The amount of service credit obtainable under this section may not exceed five
years unless a longer purchase period is required under United States Code,
title 38, section 4312.
(g)
The employing unit shall pay interest on all equivalent employee and employer
contribution amounts payable under this section. Interest must be computed at a rate of 8.5 percent compounded
annually from the end of each fiscal year of the leave or the break in service
to the end of the month in which the payment is received.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
8. Minnesota Statutes 2006, section
352.951, is amended to read:
352.951 APPLICABILITY OF GENERAL LAW.
Except
as otherwise provided, this chapter applies to covered correctional employees,
military affairs personnel covered under section 352.85, and
Transportation Department pilots covered under section 352.86, and state
fire marshal employees under section 352.87.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
9. Minnesota Statutes 2006, section
352.98, is amended by adding a subdivision to read:
Subd.
8. Exemption
from process. Assets in a
health care savings plan account described in this section must be used for the
reimbursement of health care expenses and are not assignable or subject to
execution, levy, attachment, garnishment, or other legal process, except as
provided in section 518.58, 518.581, or 518A.53.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
10. Minnesota Statutes 2006, section
352D.02, subdivision 1, is amended to read:
Subdivision
1. Coverage. (a) Employees enumerated in paragraph (c),
clauses (2), (3), (4), and (6) to (14), and (16) to (18), if they
are in the unclassified service of the state or Metropolitan Council and are
eligible for coverage under the general state employees retirement plan under
chapter 352, are participants in the unclassified plan program under
this chapter unless the employee gives notice to the executive director of the
Minnesota State Retirement System within one year following the commencement of
employment in the unclassified service that the employee desires coverage under
the general state employees retirement plan.
For the purposes of this chapter, an employee who does not file notice
with the executive director is deemed to have exercised the option to
participate in the unclassified plan program.
(b)
Persons referenced in paragraph (c), clause (5), are participants in the
unclassified program under this chapter unless the person was eligible to elect
different coverage under section 3A.07 and elected retirement coverage by the
applicable alternative retirement plan.
Persons referenced in paragraph (c), clause (15), are participants in
the unclassified program under this chapter for judicial employment in excess
of the service credit limit in section 490.121, subdivision 22.
(c)
Enumerated employees and referenced persons are:
(1)
the governor, the lieutenant governor, the secretary of state, the state
auditor, and the attorney general;
(2) an
employee in the Office of the Governor, Lieutenant Governor, Secretary of
State, State Auditor, Attorney General;
(3) an
employee of the State Board of Investment;
(4)
the head of a department, division, or agency created by statute in the
unclassified service, an acting department head subsequently appointed to the
position, or an employee enumerated in section 15A.0815 or 15A.083, subdivision
4;
(5) a
member of the legislature;
(6) a
full-time unclassified employee of the legislature or a commission or agency of
the legislature who is appointed without a limit on the duration of the
employment or a temporary legislative employee having shares in the
supplemental retirement fund as a result of former employment covered by this
chapter, whether or not eligible for coverage under the Minnesota State
Retirement System;
(7) a
person who is employed in a position established under section 43A.08,
subdivision 1, clause (3), or in a position authorized under a statute creating
or establishing a department or agency of the state, which is at the deputy or
assistant head of department or agency or director level;
(8)
the regional administrator, or executive director of the Metropolitan Council,
general counsel, division directors, operations managers, and other positions
as designated by the council, all of which may not exceed 27 positions at the
council and the chair;
(9)
the executive director, associate executive director, and not to exceed nine
positions of the Minnesota Office of Higher Education in the unclassified
service, as designated by the Minnesota Office of Higher Education before
January 1, 1992, or subsequently redesignated with the approval of the board of
directors of the Minnesota State Retirement System, unless the person has
elected coverage by the individual retirement account plan under chapter 354B;
(10)
the clerk of the appellate courts appointed under article VI, section 2, of the
Constitution of the state of Minnesota;
(11)
the chief executive officers of correctional facilities operated by the
Department of Corrections and of hospitals and nursing homes operated by the
Department of Human Services;
(12)
an employee whose principal employment is at the state ceremonial house;
(13)
an employee of the Minnesota Educational Computing Corporation
Agricultural Utilization Research Institute;
(14)
an employee of the State Lottery who is covered by the managerial plan
established under section 43A.18, subdivision 3; and
(15) a
judge who has exceeded the service credit limit in section 490.121, subdivision
22.;
(16)
an employee of Minnesota Technology Incorporated;
(17)
a person employed by the Minnesota State Colleges and Universities as faculty
or in an eligible unclassified administrative position as defined in section
354B.20, subdivision 6, who was employed by the former state university or the
former community college system before May 1, 1995, and elected unclassified
program coverage prior to May 1, 1995; and
(18)
a person employed by the Minnesota State Colleges and Universities who was
employed in state service before July 1, 1995, who subsequently is employed in
an eligible unclassified administrative position as defined in section 354B.20,
subdivision 6, and who elects coverage by the unclassified program.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
11. Minnesota Statutes 2006, section
352D.02, subdivision 3, is amended to read:
Subd.
3. Election
irrevocable Transfer to general plan. An election to not participate is irrevocable during any
period of covered employment. (a) An employee credited with employee
shares in the unclassified program, after acquiring credit for ten years of
allowable service but prior to and not later than one month following
the termination of covered employment, may, notwithstanding other
provisions of this subdivision, elect to terminate participation in the
unclassified plan program and be covered by the regular general
plan by filing such a written election with the executive
director. The executive director shall thereupon
then redeem the employee's total shares and shall credit to the
employee's account in the regular general plan the amount of
contributions that would have been so credited had the employee been covered by
the regular general plan during the employee's entire covered
employment. The balance of money so
redeemed and not credited to the employee's account shall be transferred to the
state contribution reserve of the state employees general plan retirement
fund, except that (1) the employee contribution paid to the unclassified plan
program must be compared to (2) the employee contributions that would
have been paid to the general plan for the comparable period, if the individual
had been covered by that plan. If
clause (1) is greater than clause (2), the difference must be refunded to the
employee as provided in section 352.22.
If clause (2) is greater than clause (1), the difference must be paid by
the employee within six months of electing general plan coverage or before the
effective date of the annuity, whichever is sooner.
(b)
An election under paragraph (a) to transfer coverage to the general plan is
irrevocable during any period of covered employment.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
12. Minnesota Statutes 2006, section
352D.06, subdivision 3, is amended to read:
Subd.
3. Accrual
date. An annuity under this section
accrues the first day of the first full month after an application is received
or after the day following termination of state service,
whichever is later. Upon the former
employee's request, the annuity may begin to accrue up to six months before
redemption of shares, but not prior to the termination date from covered
service, and must be based on the account value at redemption and upon the age
of the former employee at the date annuity accrual starts. The account must be valued and redeemed
on the later of the end of the month of termination of covered employment, or
the end of the month of receipt of the annuity application for the purpose of
computing the annuity.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
13. Minnesota Statutes 2006, section
353.01, subdivision 2a, is amended to read:
Subd.
2a. Included employees. (a)
Public employees whose salary from employment in one or more positions
within one governmental subdivision exceeds $425 in any month shall
participate as members of the association.
If the salary is less than $425 in a subsequent month, the employee
retains membership eligibility.
Eligible public employees shall participate as
members of the association with retirement coverage by the public employees
retirement plan or the public employees police and fire retirement plan under
this chapter, or the local government correctional employees retirement plan
under chapter 353E, whichever applies, as a condition of their employment on
the first day of employment unless they:
(1)
are specifically excluded under subdivision 2b;
(2) do
not exercise their option to elect retirement coverage in the association as
provided in subdivision 2d, paragraph (a); or
(3)
are employees of the governmental subdivisions listed in subdivision 2d,
paragraph (b), where the governmental subdivision has not elected to
participate as a governmental subdivision covered by the association.
(b) A
public employee who was a member of the association on June 30, 2002, based on
employment that qualified for membership coverage by the public employees retirement
plan or the public employees police and fire plan under this chapter, or the
local government correctional employees retirement plan under chapter 353E as
of June 30, 2002, retains that membership for the duration of the person's
employment in that position or incumbency in elected office. Except as provided in subdivision 28, the
person shall participate as a member until the employee or elected
official terminates public employment under subdivision 11a or terminates
membership under subdivision 11b.
(c)
Public employees under paragraph (a) include physicians under section 353D.01,
subdivision 2, who do not elect public employees defined contribution plan
coverage under section 353D.02, subdivision 2.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
14. Minnesota Statutes 2006, section
353.01, subdivision 2b, is amended to read:
Subd.
2b. Excluded employees. The
following public employees are not eligible to participate as members of the
association with retirement coverage by the public employees retirement plan,
the local government correctional employees retirement plan under chapter 353E,
or the public employees police and fire retirement plan:
(1)
public officers, other than county sheriffs, who are elected to a governing
body, or persons who are appointed to fill a vacancy in an elective office of a
governing body, whose term of office commences on or after July 1, 2002, for
the service to be rendered in that elective position. Elected governing body officials who were
active members of the association's coordinated or basic retirement plans as of
June 30, 2002, continue participation throughout incumbency in office until
termination of public service occurs as defined in subdivision 11a;
(2)
election officers or election judges;
(3)
patient and inmate personnel who perform services for a governmental
subdivision;
(4)
except as otherwise specified in subdivision 12a, employees who are hired for a
temporary position as defined under subdivision 12a, and employees who resign
from a nontemporary position and accept a temporary position within 30 days in
the same governmental subdivision;
(5)
employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster;
(6)
employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or
funds administered by the Minnesota State Retirement System, the Teachers
Retirement Association, the Duluth Teachers Retirement Fund Association, the
Minneapolis Teachers Retirement Fund Association,
the St. Paul Teachers Retirement Fund Association, the Minneapolis
Employees Retirement Fund, or any police or firefighters relief association
governed by section 69.77 that has not consolidated with the Public Employees
Retirement Association, or any local police or firefighters consolidation
account who have not elected the type of benefit coverage provided by the
public employees police and fire fund under sections 353A.01 to 353A.10, or any
persons covered by section 353.665, subdivision 4, 5, or 6, who have not
elected public employees police and fire plan benefit coverage. This clause must not be construed to prevent
a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public
pension plan or fund for other service occurring during the same period of
time. A person who meets the definition
of "public employee" in subdivision 2 by virtue of other service
occurring during the same period of time becomes a member of the association
unless contributions are made to another public retirement fund on the salary
based on the other service or to the Teachers Retirement Association by a
teacher as defined in section 354.05, subdivision 2;
(7)
persons who are members of a religious order and are excluded from coverage
under the federal Old Age, Survivors, Disability, and Health Insurance Program
for the performance of service as specified in United States Code, title 42,
section 410(a)(8)(A), as amended through January 1, 1987, if no irrevocable
election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1954, as amended;
(8)
employees of a governmental subdivision who have not reached the age of 23 and
are enrolled on a full-time basis to attend or are attending classes on a
full-time basis at an accredited school, college, or university in an
undergraduate, graduate, or professional-technical program, or a public or
charter high school;
(9)
resident physicians, medical interns, and pharmacist residents and pharmacist
interns who are serving in a degree or residency program in public hospitals;
(10)
students who are serving in an internship or residency program sponsored by an
accredited educational institution;
(11)
persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;
(12)
except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
foreign citizens working for a governmental subdivision with a work permit of
less than three years, or an H-1b visa valid for less than three years of
employment. Upon notice to the
association that the work permit or visa extends beyond the three-year period,
the foreign citizens must be reported for membership from the date of the
extension;
(13)
public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988,
to October 1, 1988;
(14)
except as provided in section 353.86, volunteer ambulance service personnel, as
defined in subdivision 35, but persons who serve as volunteer ambulance service
personnel may still qualify as public employees under subdivision 2 and may be
members of the Public Employees Retirement Association and participants in the
public employees retirement fund or the public employees police and fire fund,
whichever applies, on the basis of compensation received from public employment
service other than service as volunteer ambulance service personnel;
(15)
except as provided in section 353.87, volunteer firefighters, as defined in
subdivision 36, engaging in activities undertaken as part of volunteer
firefighter duties; provided that a person who is a volunteer firefighter may
still qualify as a public employee under subdivision 2 and may be a member of
the Public Employees Retirement Association and a participant in the public
employees retirement fund or the public employees police and fire fund,
whichever applies, on the basis of compensation received from public employment
activities other than those as a volunteer firefighter;
(16) pipefitters and associated
trades personnel employed by Independent School District No. 625, St. Paul,
with coverage under a collective bargaining agreement by the pipefitters local
455 pension plan who were either first employed after May 1, 1997, or, if first
employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
241, article 2, section 12;
(17)
electrical workers, plumbers, carpenters, and associated trades personnel
employed by Independent School District No. 625, St. Paul, or the city of
St. Paul, who have retirement coverage under a collective bargaining agreement
by the Electrical Workers Local 110 pension plan, the United Association
Plumbers Local 34 pension plan, or the Carpenters Local 87 pension plan who
were either first employed after May 1, 2000, or, if first employed before May
2, 2000, elected to be excluded under Laws 2000, chapter 461, article 7,
section 5;
(18)
bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
painters, allied tradesworkers, and plasterers employed by the city of St. Paul
or Independent School District No. 625, St. Paul, with coverage under a
collective bargaining agreement by the Bricklayers and Allied Craftworkers
Local 1 pension plan, the Cement Masons Local 633 pension plan, the Glaziers
and Glassworkers Local L-1324 pension plan, the Painters and Allied Trades
Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension plan who
were either first employed after May 1, 2001, or if first employed before May
2, 2001, elected to be excluded under Laws 2001, First Special Session chapter
10, article 10, section 6;
(19)
plumbers employed by the Metropolitan Airports Commission, with coverage under
a collective bargaining agreement by the Plumbers Local 34 pension plan, who
either were first employed after May 1, 2001, or if first employed before May
2, 2001, elected to be excluded under Laws 2001, First Special Session chapter
10, article 10, section 6;
(20)
employees who are hired after June 30, 2002, to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to 185
consecutive calendar days or less in each year of employment with the
governmental subdivision;
(21)
persons who are provided supported employment or work-study positions by a
governmental subdivision and who participate in an employment or industries
program maintained for the benefit of these persons where the governmental
subdivision limits the position's duration to three years or less, including
persons participating in a federal or state subsidized on-the-job training,
work experience, senior citizen, youth, or unemployment relief program where
the training or work experience is not provided as a part of, or for, future
permanent public employment;
(22)
independent contractors and the employees of independent contractors; and
(23)
reemployed annuitants of the association during the course of that
reemployment.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
15. Minnesota Statutes 2006, 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, or instrumentality of
state or local government, or any public body whose revenues are
derived established under state or local authority that has a
governmental purpose, is under public control, is responsible for the
employment and payment of the salaries of employees of the entity, and receives
a major portion of its revenues from taxation, fees, assessments or from
other public sources.
(b) Governmental subdivision
also means the Public Employees Retirement Association, the League of Minnesota
Cities, the Association of Metropolitan Municipalities, charter schools
formed under section 124D.10, service cooperatives exercising retirement plan
participation under section 123A.21, subdivision 5, joint powers boards
organized under section 471.59, subdivision 11, paragraph (a), family service
collaboratives and children's mental health collaboratives organized under
section 471.59, subdivision 11, paragraph (b) or (c), provided that the
entities creating the collaboratives are governmental units that otherwise
qualify for retirement plan membership, public hospitals owned or operated
by, or an integral part of, a governmental subdivision or governmental
subdivisions, the Association of Minnesota Counties, the Metropolitan Minnesota
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, the Dakota County Agricultural Society, and
Hennepin Healthcare System, Inc.
(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;
or the board of a family service collaborative or children's mental health
collaborative organized under sections 124D.23, 245.491 to 245.495, or 471.59,
if that board is not controlled by representatives of governmental units.
(d)
A nonprofit corporation governed by chapter 317A or organized under Internal
Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b),
is not a governmental subdivision unless the entity has obtained a written
advisory opinion from the United States Department of Labor or a ruling from
the Internal Revenue Service declaring the entity to be an instrumentality of
the state so as to provide that any future contributions by the entity on
behalf of its employees are contributions to a governmental plan within the
meaning of Internal Revenue Code, section 414(d).
(e)
A public body created by state or local authority may request membership on
behalf of its employees by providing sufficient evidence that it meets the
requirements in paragraph (a).
(f)
An entity determined to be a governmental subdivision is subject to the
reporting requirements of this chapter upon receipt of a written notice of
eligibility from the association.
EFFECTIVE DATE. This section is effective the day after final enactment. Paragraphs (e) and (f) apply to initial plan
coverage dates occurring on or after the effective date.
Sec.
16. Minnesota Statutes 2006, section
353.01, subdivision 16, is amended to read:
Subd.
16. Allowable service; limits and computation. (a) "Allowable service" means:
(1)
service during years of actual membership in the course of which employee
contributions were made, periods covered by payments in lieu of salary
deductions under section 353.35;
(2)
service in years during which the public employee was not a member but for
which the member later elected, while a member, to obtain credit by making
payments to the fund as permitted by any law then in effect;
(3) a period of authorized
leave of absence with pay from which deductions for employee contributions are
made, deposited, and credited to the fund;
(4) a
period of authorized personal, parental, or medical leave of absence without
pay, including a leave of absence covered under the federal Family Medical
Leave Act, that does not exceed one year, and during or for which a
member obtained service credit for each month in the leave period by payments
payment under section 353.0161 to the fund made in place of salary
deductions. The payments must be
made in an amount or amounts based on the member's average salary on which
deductions were paid for the last six months of public service, or for that
portion of the last six months while the member was in public service, to apply
to the period in either case that immediately precedes the commencement of the
leave of absence. If the employee
elects to pay the employee contributions for the period of any authorized
personal, parental, or medical leave of absence without pay, or for any portion
of the leave, the employee shall also, as a condition to the exercise of the
election, pay to the fund an amount equivalent to the required employer and the
additional employer contributions, if any, for the employee. The payment must be made within one year
from the expiration of the leave of absence or within 20 days after termination
of public service under subdivision 11a, whichever is earlier. The employer, by appropriate action of its
governing body which is made a part of its official records and which is
adopted before the date of the first payment of the employee contribution, may
certify to the association in writing its commitment to pay the employer and
additional employer contributions from the proceeds of a tax levy made under
section 353.28. Payments under this
paragraph must include interest at an annual rate of 8.5 percent compounded
annually from the date of the termination of the leave of absence to the date
payment is made. An employee must
return to public service and render a minimum of three months of allowable
service in order to be eligible to pay employee and employer contributions
make payment under section 353.0161 for a subsequent authorized leave of
absence without pay. Upon payment, the
employee must be granted allowable service credit for the purchased period;
(5) a
periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not
exceed 208 hours per annual normal work cycle as certified to the association
by the employer. A participating member
obtains service credit by making employee contributions in an amount or amounts
based on the member's average salary that would have been paid if the leave had
not been taken. The employer shall pay
the employer and additional employer contributions on behalf of the
participating member. The employee and
the employer are responsible to pay interest on their respective shares at the
rate of 8.5 percent a year, compounded annually, from the end of the normal
cycle until full payment is made. An
employer shall also make the employer and additional employer contributions,
plus 8.5 percent interest, compounded annually, on behalf of an employee who
makes employee contributions but terminates public service. The employee contributions must be made
within one year after the end of the annual normal working cycle or within 20
days after termination of public service, whichever is sooner. The executive director shall prescribe the
manner and forms to be used by a governmental subdivision in administering a
periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased
period;
(6) an
authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one
calendar year. An employee who has
received the maximum service credit allowed for an authorized temporary or
seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive
allowable service for a subsequent authorized temporary or seasonal layoff; or
(7) a
period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in
United States Code, title 38, section 4303(13), if the member returns to public
service upon discharge from service in the uniformed service within the time
frames required under United States Code, title 38, section 4312(e), provided
that the member did not separate from uniformed service with a dishonorable or
bad conduct discharge or under other than honorable conditions. The service is credited if the member pays
into the fund equivalent employee contributions based upon the contribution
rate or rates in effect at the
time that the uniformed service was performed multiplied by the full and
fractional years being purchased and applied to the annual salary rate. The annual salary rate is the average annual
salary during the purchase period that the member would have received if the
member had continued to be employed in covered employment rather than to
provide uniformed service, or, if the determination of that rate is not
reasonably certain, the annual salary rate is the member's average salary rate
during the 12-month period of covered employment rendered immediately preceding
the period of the uniformed service.
Payment of the member equivalent contributions must be made during a
period that begins with the date on which the individual returns to public
employment and that is three times the length of the military leave period, or
within five years of the date of discharge from the military service, whichever
is less. If the determined payment
period is less than one year, the contributions required under this clause to
receive service credit may be made within one year of the discharge date. Payment may not be accepted following 20
days after termination of public service under subdivision 11a. If the member equivalent contributions
provided for in this clause are not paid in full, the member's allowable
service credit must be prorated by multiplying the full and fractional number
of years of uniformed service eligible for purchase by the ratio obtained by dividing
the total member contributions received by the total member contributions
otherwise required under this clause.
The equivalent employer contribution, and, if applicable, the equivalent
additional employer contribution must be paid by the governmental subdivision
employing the member if the member makes the equivalent employee
contributions. The employer payments
must be made from funds available to the employing unit, using the employer and
additional employer contribution rate or rates in effect at the time that the
uniformed service was performed, applied to the same annual salary rate or
rates used to compute the equivalent member contribution. The governmental subdivision involved may
appropriate money for those payments.
The amount of service credit obtainable under this section may not
exceed five years unless a longer purchase period is required under United
States Code, title 38, section 4312.
The employing unit shall pay interest on all equivalent member and
employer contribution amounts payable under this clause. Interest must be computed at a rate of 8.5
percent compounded annually from the end of each fiscal year of the leave or
the break in service to the end of the month in which the payment is
received. Upon payment, the employee
must be granted allowable service credit for the purchased period.
(b)
For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for
state officers and employees displaced by the Community Corrections Act,
chapter 401, and transferred into county service under section 401.04,
"allowable service" means the combined years of allowable service as
defined in paragraph (a), clauses (1) to (6), and section 352.01, subdivision
11.
(c)
For a public employee who has prior service covered by a local police or
firefighters relief association that has consolidated with the Public Employees
Retirement Association or to which section 353.665 applies, and who has elected
the type of benefit coverage provided by the public employees police and fire
fund either under section 353A.08 following the consolidation or under section
353.665, subdivision 4, "applicable service" is a period of service
credited by the local police or firefighters relief association as of the
effective date of the consolidation based on law and on bylaw provisions
governing the relief association on the date of the initiation of the
consolidation procedure.
(d) No
member may receive more than 12 months of allowable service credit in a year
either for vesting purposes or for benefit calculation purposes.
(e) MS
2002 [Expired]
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
authorized leaves of absence that commence on or after the effective date.
Sec.
17. Minnesota Statutes 2006, section
353.01, subdivision 28, is amended to read:
Subd.
28. Retirement. (a)
"Retirement" means the commencement of the payment of an
annuity based on a date designated by the board of trustees. This date determines the rights under this
chapter which occur either before or after retirement. A right to retirement is subject to
termination of public service under subdivision 11a. A right to retirement requires a complete and continuous
separation for 30 days from employment as a public employee and from the
provision of paid services to that employer.
(b) An
individual who separates from employment as a public employee and who, within
30 days of separation, returns to provide service to a governmental subdivision
as an independent contractor or as an employee of an independent contractor,
has not satisfied the separation requirements under paragraph (a).
(c)
A former member of the basic or police and fire fund who becomes a coordinated
member upon returning to eligible, nontemporary public service, terminates
employment before obtaining six months' allowable service under subdivision 16,
paragraph (a), in the coordinated fund, and is eligible to receive an annuity
the first day of the month after the most recent termination date shall not
accrue a right to a retirement annuity under the coordinated fund. An annuity otherwise payable to the former
member must be based on the laws in effect on the date of termination of the
most recent service under the basic or police and fire fund and shall be
retroactive to the first day of the month following that termination date or
one year preceding the filing of an application for retirement annuity as
provided by section 353.29, subdivision 7, whichever is later. The annuity payment must be suspended under
the provisions of section 353.37, if earned compensation for the reemployment
equals or exceeds the amounts indicated under that section. The association will refund the employee
deductions made to the coordinated fund, with interest under section 353.34,
subdivision 2, return the accompanying employer contributions, and remove the
allowable service credits covering the deductions refunded.
(d) (c) Notwithstanding
the 30-day separation requirement under paragraph (a), a member of the a
defined benefit plan under this chapter, who also participates in the
public employees defined contribution plan under chapter 353D for other public
service, may be paid, if eligible, a retirement annuity from the defined
benefit plan while participating in the defined contribution plan. A retirement annuity is also payable from
a defined benefit plan under this chapter to an eligible member who terminates
public service and who, within 30 days of separation, takes office as an
elected official of a governmental subdivision.
(d)
Elected officials included in association membership under subdivisions 2a and
2d meet the 30-day separation requirement under this section by resigning from
office before filing for a subsequent term in the same office and by remaining
completely and continuously separated from that office for 30 days prior to the
date of the election.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
18. [353.0161] AUTHORIZED LEAVE OF ABSENCE SERVICE CREDIT PURCHASE
PROCEDURE.
Subdivision
1. Application. This section applies to employees covered
by any plan specified in this chapter or chapter 353E for any period of
authorized leave of absence specified in section 353.01, subdivision 16,
paragraph (a), clause (4), for which the employee obtains credit for allowable
service by making payment as specified in this section to the applicable fund.
Subd.
2. Purchase
procedure. (a) An employee
covered by a plan specified in subdivision 1 may purchase credit for allowable
service in that plan for a period specified in subdivision 1 if the employee
makes a payment as specified in paragraph (b) or (c), whichever applies. 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 executive director within one year from the end
of the authorized leave, the payment amount is equal to the employee and
employer contribution rates specified in law for the applicable plan at the end
of the leave period multiplied by the employee's hourly rate of salary on the
date of return from the leave of absence and by the days and months of the
leave of absence for which the employee wants allowable service credit. Payments made under this paragraph must
include compound interest at a monthly rate of 0.71 percent from the last day
of the leave period until the last day of the month in which payment is
received.
(c)
If payment is received by the executive director after one year, the payment
amount is the amount determined under section 356.551.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
authorized leaves of absence that commence on or after the effective date.
Sec.
19. Minnesota Statutes 2006, section
353.03, subdivision 3, is amended to read:
Subd. 3. Duties
and powers of the board. (a) The
board shall:
(1) elect a president and
vice-president. The board shall;
(2) approve the staffing
complement, as recommended by the executive director, necessary to
administer the fund. The cost of
administering this chapter must be paid by the fund.;
(b)
The board shall (3)
adopt bylaws for its own government and for the management of the fund
consistent with the laws of the state and may modify them at pleasure. It shall;
(4) adopt, alter, and enforce
reasonable rules consistent with the laws of the state and the terms of the
applicable benefit plans for the administration and management of the fund,
for the payment and collection of payments from members, and for the
payment of withdrawals and benefits.
It shall, and that are necessary in order to comply with the
applicable federal Internal Revenue Service and Department of Labor
requirements;
(5) pass upon and allow or
disallow all applications for membership in the fund and shall allow or
disallow claims for withdrawals, pensions, or benefits payable from the fund. It shall;
(6) adopt an appropriate
mortality table based on experience of the fund as recommended by the
association actuary and approved under section 356.215, subdivision 18,
with interest set at the rate specified in section 356.215, subdivision 8. It shall;
(7) provide for the payment out
of the fund of the cost of administering this chapter, of all necessary
expenses for the administration of the fund and of all claims for withdrawals,
pensions, or benefits allowed. The
board shall; and
(8) approve or disapprove all
recommendations and actions of the executive director made subject to its
approval or disapproval by subdivision 3a.
(c) (b) In passing upon
all applications and claims, the board may summon, swear, hear, and examine
witnesses and, in the case of claims for disability benefits, may require the
claimant to submit to a medical examination by a physician of the board's
choice, at the expense of the fund, as a condition precedent to the passing on
the claim, and, in the case of all applications and claims, may conduct
investigations necessary to determine their validity and merit. The board shall establish procedures to
assure that a benefit applicant and recipient may have a review of a benefit
eligibility or benefit amount determination affecting the applicant or
recipient. The review procedure may
afford the benefit applicant or benefit recipient an opportunity to present
views at any review proceeding conducted, but is not a contested case under
chapter 14.
(d) (c) The board may
continue to authorize the sale of life insurance to members under the insurance
program in effect on January 1, 1985, but must not change that program without
the approval of the commissioner of finance.
The association shall not receive any financial benefit from the life
insurance program beyond the amount necessary to reimburse the association for
costs incurred in administering the program.
The association shall not engage directly or indirectly in any other
activity involving the sale or promotion of goods or services, or both, whether
to members or nonmembers.
(e) (d) The board shall
establish procedures governing reimbursement of expenses to board members. These procedures shall must
define the types of activities and expenses that qualify for reimbursement, shall
must provide that all out-of-state travel must be authorized by
the board, and shall must provide for the independent
verification of claims for expense reimbursement. The procedures must comply with the applicable rules and
policies of the Department of Finance, the Department of Administration, and
the Department of Employee Relations.
(f) (e) The board may
purchase fiduciary liability insurance and official bonds for the officers and
members of the board of trustees and employees of the association and may
purchase property insurance or may establish a self-insurance risk reserve
including, but not limited to, data processing insurance and
"extra-expense" coverage.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
20. Minnesota Statutes 2006, section
353.03, subdivision 3a, is amended to read:
Subd.
3a. Executive director. (a) Appointment. The board shall appoint, with the advice and consent of
the senate, an executive director on the basis of education, experience in
the retirement field, and leadership ability.
The executive director shall must have had at least five
years' experience in an executive level management position, which has included
responsibility for pensions, deferred compensation, or employee benefits. The executive director serves at the
pleasure of the board. The salary of
the executive director is as provided by section 15A.0815.
(b) Duties. The management of the association is
vested in the executive director who shall be the executive and administrative
head of the association. The executive
director shall act as adviser to the board on all matters pertaining to the
association and shall also act as the secretary of the board. The executive director shall:
(1)
attend all meetings of the board;
(2)
prepare and recommend to the board appropriate rules to carry out the
provisions of this chapter;
(3)
establish and maintain an adequate system of records and accounts following
recognized accounting principles and controls;
(4)
designate, with the approval of the board, up to two persons who shall may
serve in the unclassified service and whose salary is salaries
are set in accordance with section 43A.18, subdivision 3, appoint a
confidential secretary in the unclassified service, and appoint employees to
carry out this chapter, who are subject to chapters 43A and 179A in the same
manner as are executive branch employees;
(5)
organize the work of the association as the director deems necessary to fulfill
the functions of the association, and define the duties of its employees and
delegate to them any powers or duties, subject to the control of, and under
such conditions as, the executive director may prescribe;
(6) with
the approval of the board, contract for the services of an approved actuary,
professional management services, and any other consulting services as
necessary to fulfill the purposes of this chapter. All contracts are subject to chapter 16C. The commissioner of administration shall not
approve, and the association shall not enter into, any contract to provide
lobbying services or legislative advocacy of any kind. Any approved actuary retained by the
executive director shall function as the actuarial advisor of the board and the
executive director and may perform actuarial valuations and experience studies
to supplement those performed by the actuary retained under section 356.214. Any supplemental actuarial valuations or
experience studies shall be filed with the executive director of the
Legislative Commission on Pensions and Retirement. Copies of professional management survey reports shall be
transmitted to the secretary of the senate, the chief clerk of the house of
representatives, and the Legislative Reference Library as provided by section
3.195, and to the executive director of the commission at the same time as
reports are furnished to the board.
Only management firms experienced in conducting management surveys of
federal, state, or local public retirement systems shall be qualified to
contract with the director hereunder;
(7)
with the approval of the board provide in-service training for the employees of
the association;
(8)
make refunds of accumulated contributions to former members and to the
designated beneficiary, surviving spouse, legal representative or next of kin
of deceased members or deceased former members, as provided in this chapter;
(9)
determine the amount of the annuities and disability benefits of members
covered by the association and authorize payment of the annuities and benefits
beginning as of the dates on which the annuities and benefits begin to accrue,
in accordance with the provisions of this chapter;
(10)
pay annuities, refunds, survivor benefits, salaries, and necessary operating
expenses of the association;
(11)
prepare and submit to the board and the legislature an annual financial report
covering the operation of the association, as required by section 356.20;
(12)
prepare and submit biennial and annual budgets to the board for its approval
and submit the approved budgets to the Department of Finance for approval by
the commissioner;
(13)
reduce all or part of the accrued interest payable under section 353.27,
subdivisions 12, 12a, and 12b, or 353.28, subdivision 5, upon receipt of proof
by the association of an unreasonable processing delay or other extenuating
circumstances of the employing unit.
The executive director shall prescribe and submit for approval by the
board the conditions under which such interest may be reduced; and
(14)
with the approval of the board, perform such other duties as may be required
for the administration of the association and the other provisions of this
chapter and for the transaction of its business.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
21. Minnesota Statutes 2006, section
353.03, subdivision 4, is amended to read:
Subd.
4. Offices. The commissioner of administration shall
make provision for suitable office space in the state capitol or other state
office buildings, or at such other location as is determined by the
commissioner for the use of the board of trustees and its executive
director. The commissioner shall give
the board at least four months notice for any proposed removal from their
present location. Any and all rental
charges shall be paid by the trustees from the public employees retirement fund
public pension fund facilities created under section 356B.10.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
22. Minnesota Statutes 2006, section
353.27, is amended by adding a subdivision to read:
Subd.
14. Treatment
of periods before initial coverage date. (a) If an entity is determined to be a governmental
subdivision due to receipt of a written notice of eligibility from the
association, that employer and its employees are subject to the requirements of
subdivision 12, effective retroactive to the date that the executive director
of the association determines that the entity first met the definition of a
governmental subdivision, if that date predates the notice of eligibility.
(b) If the retroactive time
period under paragraph (a) exceeds three years, an employee is authorized to
purchase service credit in the applicable Public Employees Retirement
Association plan for the portion of the period in excess of three years, by
making payment under section 356.551.
(c)
This subdivision does not apply if the applicable employment under paragraph
(a) included coverage by any public or private defined benefit or defined
contribution retirement plan, other than a volunteer firefighters relief
association. If this paragraph applies,
an individual is prohibited from purchasing service credit for any period or
periods specified in paragraph (a).
EFFECTIVE DATE. This section is effective the day after final enactment and
applies to initial plan coverage dates occurring on or after the effective
date.
Sec.
23. Minnesota Statutes 2006, section
353.28, subdivision 6, is amended to read:
Subd.
6. Collection
of unpaid amounts. (a) If a
governmental subdivision which receives the direct proceeds of property
taxation fails to pay an amount due under chapter 353, 353A, 353B, 353C, or
353D, the executive director shall certify the amount to the governmental
subdivision for payment. If the
governmental subdivision fails to remit the sum so due in a timely fashion, the
executive director shall certify the amount to the applicable county auditor
for collection. The county auditor
shall collect the amount out of the revenue of the governmental subdivision, or
shall add the amount to the levy of the governmental subdivision and make
payment directly to the association.
This tax must be levied, collected, and apportioned in the manner that
other taxes are levied, collected, and apportioned.
(b) If
a governmental subdivision which is not funded directly from the proceeds of
property taxation fails to pay an amount due under this chapter, the executive
director shall certify the amount to the governmental subdivision for
payment. If the governmental
subdivision fails to pay the amount for a period of 60 days after the date of
the certification, the executive director shall certify the amount to the
commissioner of finance, who shall deduct the amount from any subsequent
state-aid payment or state appropriation amount applicable to the governmental
subdivision and make payment directly to the association. If the amount of the state-aid payment or
state appropriation is not sufficient to pay the full sum due, the amounts paid
to the association must be applied first to the unpaid employee deductions
withheld from the employees' wages and next to the unpaid employer
contributions. Any remaining amount
received by the association must be applied to the interest due on the employee
and employer contribution amounts. If a
government subdivision under this paragraph owes amounts to more than one
public retirement plan, section 356.98 applies.
(c)
If a governmental subdivision has been dissolved or closed, the requirements in
paragraph (b) of a certification to the governmental subdivision and the
related 60-day waiting period do not apply.
The executive director is authorized to immediately certify the
applicable amount to the commissioner of finance.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
24. Minnesota Statutes 2006, section
353.29, subdivision 3, is amended to read:
Subd.
3. Retirement
annuity formula. (a) This
paragraph, in conjunction with section 353.30, subdivisions 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 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 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," a the "coordinated member," a
coordinated member shall determine the amount of the "normal"
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 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.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
25. Minnesota Statutes 2006, section
353.30, subdivision 1a, is amended to read:
Subd.
1a. Pre-July 1, 1989 members: rule of 90. Any Upon termination of public service under section
353.01, subdivision 11a, a person who first became a public employee or a
member of a pension fund listed in section 356.30, subdivision 3, before July
1, 1989, and 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 section 353.29, subdivisions 2 and subdivision
3, paragraph (a), without any reduction in annuity by reason of such
due to early retirement.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
26. Minnesota Statutes 2006, section 353.30,
subdivision 1b, is amended to read:
Subd.
1b. Pre-July 1, 1989 members: 30 years of service. Any Upon termination of public
service under section 353.01, subdivision 11a, a person who first became a
public employee or a member of a pension fund listed in section 356.30,
subdivision 3, before July 1, 1989, with 30 years or more of allowable service
credit, who elects early retirement under subdivision 1 to retire
prior to normal retirement age, shall receive an annuity in an amount equal
to the normal annuity provided under section 353.29, subdivisions 2 and subdivision
3, paragraph (a), reduced by one-quarter of one percent for each month that
the member is under age 62 at the time of retirement.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
27. Minnesota Statutes 2006, section
353.30, subdivision 1c, is amended to read:
Subd.
1c. Pre-July 1, 1989 members: early retirement. Any Upon termination of public
service, a person who first became a public employee or a member of a
pension fund listed in section 356.30, subdivision 3, before July 1, 1989, and
who has received credit for at least 30 years of allowable service or who
has become at least 55 years old but not normal retirement age, and has
received credit for at least three years of allowable service is entitled upon
application to a retirement annuity in an amount equal to the normal annuity
provided in section 353.29, subdivisions 2 and subdivision 3,
paragraph (a), 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 the reduction
shall be applied only for each month that the member is under age 62 at the
time of retirement.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec. 28. Minnesota Statutes 2006, section 353.32,
subdivision 1a, is amended to read:
Subd.
1a. Surviving spouse optional annuity.
(a) If a member or former member who has credit for not less than three
years of allowable service and dies before the annuity or disability benefit
begins to accrue under section 353.29, subdivision 7, or 353.33, subdivision 2,
notwithstanding any designation of beneficiary to the contrary, the surviving
spouse may elect to receive, instead of a refund with interest under
subdivision 1, or surviving spouse benefits otherwise payable under section
353.31, an annuity equal to the a 100 percent joint and survivor
annuity that the member could have qualified for had the member terminated
service on the date of death computed consistent with section 353.30,
subdivision 1a, 1c, or 5, whichever is applicable.
(b) If
the a member was under age 55 first became a public
employee or a member of a pension fund listed in section 356.30, subdivision 3,
before July 1, 1989, and has credit for at least 30 years of allowable
service on the date of death, the surviving spouse may elect to receive a 100
percent joint and survivor annuity based on the age of the member and
surviving spouse on the date of death.
The annuity is payable using computed using section 353.30,
subdivision 1b, except that the full early retirement reduction
under section 353.30, subdivisions 1b and 1c, to that provision will
be applied from age 62 back to age 55 and one-half of the early
retirement reduction from age 55 back to the age payment begins.
(c) If
the a member who was under age 55 and has credit for at
least three years of allowable service on the date of death dies, but
did not qualify for retirement on the date of death, the surviving
spouse may elect to receive the a 100 percent joint and survivor
annuity based on the age of the member and surviving spouse at the time of
death. The annuity is payable computed
using section 353.30, subdivision 1c or 5, as applicable, except that the
full early retirement reduction under section 353.30, subdivision 1,
1b, 1c, or 5, specified in the applicable subdivision will be applied to
age 55 and one-half of the early retirement reduction from age 55 back to
the age payment begins.
(d)
Notwithstanding the definition of surviving spouse in section 353.01,
subdivision 20, a former spouse of the member, if any, is entitled to a portion
of the monthly surviving spouse optional annuity if stipulated under the terms
of a marriage dissolution decree filed with the association. If there is no surviving spouse or child or
children, a former spouse may be entitled to a lump-sum refund payment under subdivision
1, if provided for in a marriage dissolution decree, but not a monthly
surviving spouse optional annuity, despite the terms of a marriage dissolution
decree filed with the association.
(e)
The surviving spouse eligible for surviving spouse benefits under paragraph (a)
may apply for the annuity at any time after the date on which the deceased
employee would have attained the required age for retirement based on the
employee's allowable service. The
surviving spouse eligible for surviving spouse benefits under paragraph (b) or
(c) may apply for an annuity any time after the member's death. The annuity must be computed under
sections 353.29, subdivisions 2 and 3; and 353.30, subdivisions 1, 1a, 1b, 1c,
and 5.
(f)
Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred
annuity or surviving spouse benefit payable under this subdivision. No payment may accrue beyond the end of
the month in which entitlement to the annuity has terminated or upon expiration
of the term certain benefit payment under subdivision 1b.
(g) An amount equal to any
excess of the accumulated contributions that were credited to the account of
the deceased employee over and above the total of the annuities paid and
payable to the surviving spouse must be paid to the surviving spouse's estate.
(g) (h) A member may
specify in writing that this subdivision does not apply and that payment may be
made only to the designated beneficiary as otherwise provided by this
chapter. The waiver of a surviving
spouse annuity under this section does not make a dependent child eligible for
benefits under subdivision 1c.
(i) If the deceased member or
former member first became a public employee or a member of a public pension
plan listed in section 356.30, subdivision 3, on or after July 1, 1989, a
survivor annuity computed under paragraph (a) or (c) must be computed as
specified in section 353.30, subdivision 5, except for the revised early
retirement reduction specified in paragraph (c), if paragraph (c) is the
applicable provision.
(j)
For any survivor annuity determined under this subdivision, the payment is to
be based on the total allowable service that the member had accrued as of the
date of death and the age of the member and surviving spouse on that date.
EFFECTIVE DATE. This section is effective for survivor benefits based on a
date of death occurring on or after July 1, 2007. This section is not intended to increase, modify, impair, or
diminish the benefit entitlements specified in the subdivision within the Minnesota
Statutes being amended. If the
executive director of the Public Employees Retirement Association determines
that any provision of this section does increase, modify, impair, or diminish
the benefit entitlements as reflected in applicable law just before the
effective date of this section, the executive director shall certify that
determination and a recommendation as to the required legislative correction to
the chairs of the Legislative Commission on Pensions and Retirement, the house
Governmental Operations, Reform, Technology and Elections Committee, the senate
State and Local Governmental Operations Committee, and to the executive
director of the Legislative Commission on Pensions and Retirement.
Sec.
29. Minnesota Statutes 2006, section
353.32, subdivision 1b, is amended to read:
Subd.
1b. Survivor coverage term certain.
(a) In lieu of the 100 percent optional annuity under subdivision 1a, or
a refund under subdivision 1, the surviving spouse of a deceased member may
elect to receive survivor coverage for a term certain period of ten, 15, or 20
years, but monthly payments must not exceed 75 percent of the average high-five
monthly salary of the deceased member. The
benefit terminates at the end of the specified term certain period. Except as otherwise specified in this
subdivision, the monthly term certain annuity must be actuarially
equivalent to the 100 percent optional annuity under subdivision 1a.
(b) If
a surviving spouse elects a term certain annuity and dies before the expiration
of the specified term certain period, the commuted value of the remaining
annuity payments must be paid in a lump sum to the survivor's estate.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
30. Minnesota Statutes 2006, section
353.34, subdivision 3, is amended to read:
Subd.
3. Deferred
annuity; eligibility; computation.
A member with at least three years of allowable service when termination
of public service or termination of membership occurs has the option of leaving
the accumulated deductions in the fund and being entitled to a deferred
retirement annuity commencing at normal retirement age or to a deferred early
retirement annuity under section 353.30, subdivision 1, 1a, 1b, 1c, or
5. The deferred annuity must be
computed under section 353.29, subdivisions 2 and subdivision 3,
on the basis of the law in effect on the date of termination of public service
or termination of membership, whichever is earlier, and must be
augmented as provided in section 353.71, subdivision 2. A former member qualified to apply for a
deferred retirement annuity may revoke this option at any time before the
commencement of deferred annuity payments by making application for a
refund. The person is entitled to a
refund of accumulated member contributions within 30 days following date of
receipt of the application by the executive director.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
31. Minnesota Statutes 2006, section
354.05, subdivision 13, is amended to read:
Subd.
13. Allowable service.
"Allowable service" means:
(1)
Any service rendered by a teacher for which on or before July 1, 1957, the
teacher's account in the retirement fund was credited by reason of employee
contributions in the form of salary deductions, payments in lieu of salary
deductions, or in any other manner authorized by Minnesota Statutes 1953,
sections 135.01 to 135.13, as amended by Laws 1955, chapters 361, 549, 550,
611, or
(2)
Any service rendered by a teacher for which on or before July 1, 1961, the
teacher elected to obtain credit for service by making payments to the fund
pursuant to Minnesota Statutes 1980, section 354.09 and section 354.51, or
(3)
Any service rendered by a teacher after July 1, 1957, for any calendar month
when the member receives salary from which deductions are made, deposited and
credited in the fund, or
(4)
Any service rendered by a person after July 1, 1957, for any calendar month
where payments in lieu of salary deductions are made, deposited and credited
into the fund as provided in Minnesota Statutes 1980, section 354.09,
subdivision 4, and section 354.53, or
(5)
Any service rendered by a teacher for which the teacher elected to obtain
credit for service by making payments to the fund pursuant to Minnesota
Statutes 1980, section 354.09, subdivisions 1 and 4, sections 354.50, 354.51,
Minnesota Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes
1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 Supplement,
section 354.09, subdivision 3, or
(6)
Both service during years of actual membership in the course of which
contributions were currently made and service in years during which the teacher
was not a member but for which the teacher later elected to obtain credit by
making payments to the fund as permitted by any law then in effect, or
(7)
Any service rendered where contributions were made and no allowable service
credit was established because of the limitations contained in Minnesota
Statutes 1957, section 135.09, subdivision 2, as determined by the ratio
between the amounts of money credited to the teacher's account in a fiscal year
and the maximum retirement contribution allowable for that year, or
(8) MS
2002 [Expired]
(9) A
period of time during which a teacher who is a state employee was on
strike without pay, not to exceed a period of one year, if the teacher makes
a payment in lieu of salary deductions or makes a prior service credit
purchase payment, whichever applies. If
the payment is made within 12 months, the payment by the teacher must be
an amount equal to the employee and employer contribution rates set forth in
section 354.42, subdivisions 2 and 3, applied to the teacher's rate of salary
in effect on 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 until the date of payment.
If the payment by the employee is not made within 12 months, the payment
must be in an amount equal to the payment amount determined under section 356.551
354.72, or
(10) A
period of service before July 1, 2006, that was properly credited as allowable
service by the Minneapolis Teachers Retirement Fund Association, and that was
rendered by a teacher as an employee of Special School District No. 1,
Minneapolis, or by an employee of the Minneapolis Teachers Retirement Fund
Association who was a member of the Minneapolis Teachers Retirement Fund
Association by virtue of that employment, who has not begun receiving an
annuity or other retirement benefit from the former Minneapolis Teachers
Retirement Fund Association
calculated in whole or in part on that service before July 1, 2006, and who has
not taken a refund of member contributions related to that service unless the
refund is repaid under section 354.50, subdivision 4. Service as an employee of Special School District No. 1,
Minneapolis, on or after July 1, 2006, is "allowable service" only as
provided by this chapter.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
authorized leaves of absence that commence on or after the effective date.
Sec.
32. Minnesota Statutes 2006, section
354.093, is amended to read:
354.093 PARENTAL LEAVE.
Upon
granting a parental leave for the birth or adoption of a child, the employing
unit granting the leave must certify the leave to the association on a form
specified by the executive director. A
member of the association granted parental leave of absence by the employing
unit is entitled to service credit not to exceed one year for the period of
leave upon payment to the association by the end of the fiscal year
following the fiscal year in which the leave of absence terminated. This payment must equal the total required
employee and employer contributions, and amortization contributions, if any,
for the period of leave prescribed in section 354.42. The payment must be based on the member's average full-time
monthly salary rate on the date the leave of absence commenced, and must be
without interest under section 354.72. Notwithstanding the provisions of any agreements to the contrary,
the contributions specified in this section may not be made to receive
allowable service credit under this section if the member does not retain the
right to full reinstatement at the end of the leave.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
authorized leaves of absence that commence on or after the effective date.
Sec.
33. Minnesota Statutes 2006, section
354.094, is amended to read:
354.094 EXTENDED LEAVES OF ABSENCE.
Subdivision
1. Service
credit contributions. (a) Upon
granting any extended leave of absence under section 122A.46 or 136F.43, the
employing unit granting the leave must certify the leave to the association on
a form specified by the executive director.
A member granted an extended leave of absence under section 122A.46 or
136F.43 may pay employee contributions and shall receive
allowable and formula service credit toward annuities and other benefits
under this chapter, for each year of the leave, provided that the member and
the employing board make the required employer contribution in any proportion
they may agree upon, during the period of the leave payment is made as
specified in paragraph (b). The
employer may enter into an agreement with the exclusive bargaining
representative of the teachers in the district under which, for an individual
teacher, all or a portion of the employee's contribution is paid by the
employer. Any such agreement must
include a sunset of eligibility to qualify for the payment and must not be a
part of the collective bargaining agreement.
The leave period must not exceed five years. A member may not receive more than five years of allowable or
formula service credit under this section.
The employee and employer contributions must be based upon the rates
of contribution prescribed by section 354.42 for the salary received during the
year immediately preceding the extended leave.
(b)
Employee contribution payments without interest for the years for which
a member is receiving service credit while on extended leave must be made on or
before June 30 of each fiscal year for which service credit is to be received,
or in instances of late reporting by the employer, within 30 days after the
association gives notification to the member of the amount due. If payment is to be made by a transfer of
pretax assets authorized under section 356.441, payment is authorized after
June 30 of the fiscal year providing that authorization for the asset transfer
has been received by the applicable third party administrator by June 30, and
the payment must include interest at a rate of .708 percent per month from June
30 through the end of the month in which payment is received. No payment is permitted after the following
September 30. Payment is authorized
after June 30 as specified in section 354.72.
(c)
Notwithstanding the provisions of any agreements to the contrary, employee
and employer contributions payments may not be made to receive
allowable and formula service credit if the member does not have full
reinstatement rights as provided in section 122A.46 or 136F.43, both during and
at the end of the extended leave.
(d)
Any school district paying the employee's retirement contributions or
payments under this section shall forward to the applicable Teachers
Retirement Association or retirement fund a copy of the agreement
executed by the school district and the employee.
Subd.
2. Membership;
retention. Notwithstanding section
354.49, subdivision 4, clause (3), a member on extended leave whose employee
and employer contributions are paid into the fund pursuant to under subdivision
1 shall retain membership in the association for as long as the
contributions are paid if payment under subdivision 1, paragraph (b), or
section 354.72, is made, under the same terms and conditions as if the
member had continued to teach in the district or the Minnesota State Colleges
and Universities system.
Subd.
3. Effect
of nonpayment. A member on extended
leave of absence pursuant to under section 122A.46 or 136F.43 who
does not pay employee contributions or whose employer contribution is not
paid into the fund in any fails to make payments under subdivision 1,
paragraph (b), or section 354.72, for any given year of the leave shall
be deemed to cease to render teaching services beginning in that year for
purposes of this chapter and may not pay employee or employer contributions
into make payment to the fund in for any subsequent
year of the leave until full payment is made for all prior years of the
leave. Nonpayment of
contributions into the fund shall Failure to make payment does not
affect the rights or obligations of the member or the member's employer under
section 122A.46 or 136F.43.
Subd.
4. Member
who does not resume teaching. A
member who pays employee contributions into makes the payments
specified in subdivision 1, paragraph (b), or section 354.72, to the fund
for the agreed maximum duration of an extended leave and who does not resume
teaching in the first school year after that maximum duration has elapsed shall
be is deemed to cease to render teaching services beginning in that
year for purposes of this chapter.
Subd.
5. Discharge;
layoff. The provisions of this
section shall do not apply to a member who is discharged or
placed on unrequested leave of absence or retrenchment or layoff or whose
contract is terminated while the member is on an extended leave of absence pursuant
to under section 122A.46 or 136F.43.
Subd.
6. Limits
on other service credit. A member
who pays employee contributions makes the payments required under
subdivision 1, paragraph (b), or section 354.72, and receives allowable and
formula service credit in the association pursuant to under this
section may not pay employee contributions or receive allowable or formula service
credit for the same fiscal year in any other Minnesota public employee pension
plan, except a volunteer firefighters' relief association governed by sections
69.771 to 69.776. This subdivision shall
must not be construed to prohibit a member who pays employee
contributions and receives allowable and formula service credit in
the association pursuant to under this section in any for
a given year from being employed as a substitute teacher by any school
district during that year.
Notwithstanding the provisions of sections 354.091 and 354.42, a teacher
may not pay retirement contributions or receive allowable or formula service
credit in the association for teaching service rendered for any part of any
year for which the teacher pays retirement contributions or receives allowable or
formula service credit pursuant to under this section or
section 354A.091 while on an extended leave of absence pursuant to under
section 122A.46.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to authorized
leaves of absence that commence on or after the effective date.
Sec.
34. Minnesota Statutes 2006, section
354.095, is amended to read:
354.095 MEDICAL LEAVE; PAYMENT PROCEDURES.
Upon
granting a medical leave, an employing unit must certify the leave to the
association on a form specified by the executive director. A member of the association who is on an
authorized medical leave of absence is entitled to receive allowable service
credit, not to exceed one year, for the period of leave, upon making the
prescribed payment to the fund under section 354.72. This payment must include the required
employee and employer contributions at the rates specified in section 354.42,
subdivisions 2, 3, and 5, as applied to the member's average full-time monthly
salary rate on the date the leave of absence commenced plus compound annual
interest at the rate of 8.5 percent from the end of the fiscal year during
which the leave terminates to the end of the month during which payment is
made. The member must pay the total
amount required unless the employing unit, at its option, pays the employer
contributions. The total amount
required must be paid before the effective date of retirement or by the end of
the fiscal year following the fiscal year in which the leave of absence
terminated, whichever is earlier. A
member may not receive more than one year of allowable service credit during
any fiscal year by making payment under this section. A member may not receive disability benefits under section 354.48
and receive allowable service credit under this section for the same period of
time. Notwithstanding the provisions of
any agreement to the contrary, employee and employer contributions may not be
made to receive allowable service credit under this section if the member does
not retain the right to full reinstatement both during and at the end of the
medical leave.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to authorized leaves of absence
that commence on or after the effective date.
Sec.
35. Minnesota Statutes 2006, section
354.096, subdivision 2, is amended to read:
Subd.
2. Payment. (a) Notwithstanding any laws to the
contrary, a member who is granted a family leave under United States Code,
title 42, section 12631, may receive allowable service credit for the leave by
making payment of the employee, employer, and additional employer contributions
at the rates under section 354.42, during the leave period as applied to the
member's average full-time monthly salary rate on the date the leave commenced.
(b) The
member may make If payment, without interest, to the association
by the end of the fiscal year following the fiscal year in which the leave
terminated or before the effective date of the member's retirement, whichever
is earlier is made after the leave terminates, section 354.72 applies.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
authorized leaves of absence that commence on or after the effective date.
Sec.
36. [354.105] PAYMENTS USING PRETAX TRANSFERS.
If
a current or past member is making a payment to the Teachers Retirement
Association to receive service credit under a provision of this chapter,
chapter 356, or applicable special law, and this payment is to be made by a
transfer of pretax assets authorized under section 356.441, payment is
authorized after the due date, but not to exceed 90 days, provided that the
authorization for the asset transfer has been received by the applicable
third-party administrator by the due date, and the payment must include
interest at a rate of .708 percent per month from the due date through the end
of the month in which the Teachers Retirement Association receives the payment.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec. 37. Minnesota Statutes 2006, section 354.35, is
amended to read:
354.35 OPTIONAL ACCELERATED RETIREMENT
ANNUITY BEFORE NORMAL RETIREMENT AGE.
Subdivision
1. Normal
retirement age definition. For
purposes of this section, "normal retirement age" means normal
retirement age as defined in United States Code, title 42, section 416(1), as
amended.
Subd.
2. Election
of accelerated annuity. (a) Any
coordinated member who retires before normal retirement age 65
may elect to receive an optional accelerated retirement annuity from the
association which provides for different annuity amounts over different periods
of retirement. The optional accelerated
retirement annuity must take the form of an annuity payable for the period
before the member attains age 65, or normal retirement age, in a greater
amount than the amount of the annuity calculated under section 354.44 on the
basis of the age of the member at retirement, but the optional accelerated
retirement annuity must be the actuarial equivalent of the member's annuity
computed on the basis of the member's age at retirement. The greater amount must be paid until the
retiree reaches age 65, or normal retirement age, and at that time the
payment from the association must be reduced.
For each year the retiree is under age 65, or normal retirement age,
up to five percent of the total life annuity required reserves may be used to
accelerate the optional retirement annuity under this section. At retirement,
(b) Members who retire before
age 62 may elect to have the age specified in annuity under this section
be subdivision accelerated to age 62 instead of 65 rather
than normal retirement age or age 65.
(c) The method of computing the
optional accelerated retirement annuity provided in this section subdivision
is established by the board of trustees.
In establishing the method of computing the optional accelerated
retirement annuity or any modification of that procedure, the board of
trustees must obtain the written approval of the actuary retained under section
356.214. The written approval must be a
part of the permanent records of the board of trustees. The election of an optional accelerated
retirement annuity is exercised by making an application on a form provided by
the executive director.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
38. Minnesota Statutes 2006, section
354.45, subdivision 1a, is amended to read:
Subd.
1a. Bounce-back annuity. (a) If
a former member or disabilitant selects a joint and survivor annuity option
under subdivision 1 after June 30, 1989, the former member or
disabilitant must receive a normal single life annuity if the designated
optional annuity beneficiary dies before the former member or
disabilitant. Under this option, no
reduction may be made in the person's annuity to provide for restoration of the
normal single life annuity in the event of the death of the designated optional
annuity beneficiary.
(b) The
annuity adjustment specified in paragraph (a) also applies to joint and
survivor annuity options under subdivision 1 elected before July 1, 1989. The annuity adjustment under this paragraph
occurs on July 1, 1989, or on the first day of the first month following the
death of the designated optional annuity beneficiary, whichever is later. This paragraph may not be interpreted as
authorizing retroactive payments. The restoration of the normal single
life annuity under this subdivision will take effect on July 1, 1989, or the
first of the month following the date of death of the designated optional
annuity beneficiary, or on the first of the month following one year before the
date on which a certified copy of the death record of the designated optional
annuity beneficiary is received in the office of the Teachers Retirement
Association, whichever date is later.
(c)
Except as stated in paragraph (b), this subdivision may not be interpreted as
authorizing retroactive benefit payments.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec. 39. [354.471]
ACCOUNT TERMINATION; RESTORATION.
Subdivision
1. Account
termination. If an active or
deferred member dies and there is no surviving spouse or other beneficiaries,
or the spouse or beneficiaries cannot be located within five years of the date
of death of the member, the accumulated employee and employer contributions and
any other payments made to the Teachers Retirement Association fund by the
individual or on behalf of the individual, and all investment earnings on these
amounts, must be credited to and become part of the retirement fund.
Subd.
2. Restoration. Following a forfeiture under subdivision
1, if a surviving spouse or other beneficiary of the deceased contacts the
Teachers Retirement Association and, based on documentation determined by the
executive director to be valid and adequate, establishes a right to a survivor
annuity, death refund, or other benefit provided by this chapter, the account
forfeited under subdivision 1 must be fully or partially restored, as
necessary.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
40. Minnesota Statutes 2006, section
354.48, subdivision 3, is amended to read:
Subd.
3. Computation
of benefits. (1) (a) The
amount of the disability benefit granted to members covered under section
354.44, subdivision 2, clauses (1) and (2) paragraphs (b) and (c),
is an amount equal to double the annuity which could be purchased by the
member's accumulated deductions plus interest on the amount computed as though
the teacher were at normal retirement age at the time the benefit begins to
accrue and in accordance with the law in effect when the disability
application is received on the last day for which salary is received. Any member who applies for a disability
benefit after June 30, 1974, and who failed to make an election pursuant to
under Minnesota Statutes 1971, section 354.145, shall have the
disability benefit computed under this clause paragraph, as further
specified in paragraphs (b) and (c), or clause (2) paragraph (d),
whichever is larger.
(b)
The benefit
granted shall be determined by the following:
(a) (1) the amount of
the accumulated deductions;
(b) (2) interest
actually earned on these accumulated deductions to the date the benefit begins
to accrue;
(c) (3) interest for the
years from the date the benefit begins to accrue to the date the member attains
normal retirement age at the rate of three percent;
(d) (4) annuity purchase rates
based on an appropriate annuity table of mortality established by the board as
provided in section 354.07, subdivision 1, and using the applicable
postretirement interest rate assumption specified in section 356.215,
subdivision 8.
(c)
In
addition, 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, must be paid to basic members.
(2) (d) The disability benefit
granted to members covered under section 354.44, subdivision 6, shall be
computed in the same manner as the annuity provided in section 354.44,
subdivision 6. The disability benefit
shall be the formula annuity without the reduction for each month the member is
under normal retirement age when the benefit begins to accrue as defined by
the law in effect on the last day for which salary is paid.
(3) (e) For the purposes of
computing a retirement annuity when the member becomes eligible, the amounts
paid for disability benefits shall not be deducted from the individual member's
accumulated deductions. If the
disability benefits provided in this subdivision exceed the monthly average
salary of the disabled member, the disability benefits shall be reduced to an
amount equal to the disabled member's average salary.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec. 41. [354.72]
AUTHORIZED LEAVE OF ABSENCE AND STRIKE PERIOD SERVICE CREDIT PURCHASE PROCEDURE.
Subdivision
1. Application. This section applies to any strike period
under section 354.05, subdivision 13, clause (9), and to any period of
authorized leave of absence without pay under sections 354.093, 354.094,
354.095, and 354.096 for which the teacher obtains credit for allowable service
by making payment as specified in this section to the Teachers Retirement
Association fund. Each year of an
extended leave of absence under section 354.094 is considered to be a separate
leave for purposes of this section.
Subd.
2. Purchase
procedure. (a) A teacher may
purchase credit for allowable and formula service in the plan for a period
specified in subdivision 1 if the teacher makes a payment as specified in
paragraph (b) or (c), whichever applies.
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 executive director within one year from the end
of the strike period or authorized leave under section 354.093, 354.095, or
354.096, or after June 30 and before the following June 30 for an extended
leave of absence under section 354.094, the payment must equal the total
employee and employer contributions, including amortization contributions if
applicable, given the contribution rates in section 354.42, multiplied by the
member's average monthly salary rate on the commencement of the leave or period
of strike, multiplied by the months and portions of a month of the leave of
absence or period of strike for which the teacher seeks allowable service
credit. Payments made under this
paragraph must include compound interest at a monthly rate of 0.71 percent from
the last day of the leave period or strike period, or from June 30 for an
extended leave of absence under section 354.094, until the last day of the
month in which payment is received.
(c)
If payment is received by the executive director after the applicable last
permitted date under paragraph (b), the payment amount is the amount determined
under section 356.551.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
authorized leaves of absence that commence on or after the effective date.
Sec.
42. Minnesota Statutes 2006, section
356.195, subdivision 1, is amended to read:
Subdivision
1. Covered
plans. This section applies to all
defined benefit plans specified in section 356.30, subdivision 3, except
clause (10).
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
43. Minnesota Statutes 2006, section
356.405, is amended to read:
356.405 COMBINED PAYMENT OF RETIREMENT
ANNUITIES.
(a)
The Public Employees Retirement Association and the Minnesota State Retirement
System are permitted to combine payments to retirees if one of the payments
is less than $250 per month and if the individual elects the same joint and
survivor annuity form from both systems, or if the individual elects straight
life annuities from both systems.
The total payment must be equal to the amount that is payable if
payments were kept separate. The
retiree must agree, in writing, to have the payment combined.
(b)
Each plan must calculate the benefit amounts under the laws governing the plan
and the required reserves and future mortality losses or gains must be paid
or accrued to the plan making the combined payment from which
the plan where the service was earned.
Each plan must account for its portion of the payment separately, and
there may be no additional actuarial liabilities realized by either plan.
(c) The plan making the payment
would be responsible for issuing one payment and making address changes, tax
withholding changes, and other administrative functions needed to process the
payment.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
44. Minnesota Statutes 2006, section
356.46, subdivision 3, is amended to read:
Subd.
3. Requirement
of notice to member's spouse. (a) Except
as specified in paragraph (c), if a public pension plan provides optional
retirement annuity forms which include a joint and survivor optional retirement
annuity form potentially applicable to the surviving spouse of a member, the
executive director of the public pension plan shall send a copy of the written
statement required by subdivision 2 to the spouse of the member before the
member's election of an optional a retirement annuity.
(b)
Following the election of a retirement annuity by the member, a copy of the
completed retirement annuity application and retirement annuity beneficiary
form, if applicable, must be sent by the executive director of the public
pension plan to the spouse of the retiring member. A signed acknowledgment must be required from the spouse
confirming receipt of a copy of the completed retirement annuity application
and retirement annuity beneficiary form, unless the spouse's signature
confirming the receipt is on the annuity application form. If the required signed acknowledgment is not
received from the spouse within 30 days, the executive director of the public
pension plan must send another copy of the completed retirement annuity
application and retirement annuity beneficiary form, if applicable, to the
spouse by certified mail with restricted delivery.
(c)
For the Teachers Retirement Association, the statement to the spouse that is required
under paragraph (a) must be sent before or upon the member's election of an
annuity.
EFFECTIVE DATE. This section is effective July 1, 2007.
COMPREHENSIVE EMPLOYMENT TRAINING ACT
SERVICE CREDIT PURCHASE
Sec.
45. [356.95] PURCHASE OF PRIOR COMPREHENSIVE EMPLOYMENT TRAINING ACT
SERVICE.
Subdivision
1. Eligibility. An eligible person is a person who:
(1) is currently an active plan member in a plan included
under section 356.30, subdivision 3, other than clause (3);
(2)
was excluded from pension coverage under the provisions of Laws 1978, chapter
720; and
(3)
subsequently became employed in unsubsidized public employment covered by a
pension plan included under section 356.30, subdivision 3, other than clause
(3), with the same public employer which provided the subsidized employment or
other public employer.
Subd.
2. Authorization. An eligible person under subdivision 1 is
authorized to purchase service credit for that period of uncovered prior
subsidized public employment, other than a period of prior subsidized public
employment for which a repayment of a refund was made, with a public pension
plan specified in subdivision 1, clause (3), which, except for the exclusion
provided by Laws 1978, chapter 720, would have provided pension coverage for
the subsidized employment.
Subd. 3.
Subd.
4. Restriction. (a) Pre-July 1, 1989, service credit
purchased under this section does not extend eligibility to plan benefits
applicable to individuals who became members prior to July 1, 1989, of a plan
listed in section 356.30, subdivision 3.
(b)
Service credit may not be purchased for any period for which the individual has
service credit in a covered pension plan, as defined in section 356A.01,
subdivision 8, other than a volunteer firefighter plan.
Subd.
5. Expiration. This section expires on June 30, 2009.
EFFECTIVE DATE. This section is effective the day after final enactment.
RECEIVABLES
Sec.
46. [356.98] ALLOCATION OF RECEIVABLES.
If
an employing unit is dissolved or closed and amounts are owed to more than one
Minnesota public pension plan, any amounts available to cover payments to the
plans must be applied first to the employee contributions owed to the
applicable plans, and next to the unpaid employer contributions, including any
applicable employer additional contributions, and finally to the interest due
on the employee and employer amounts.
If, at any stage in this allocation process, the available amount is
insufficient to fully cover the amount required, the remaining available
payment amount must be prorated among the applicable plans based on each plan's
share of combined covered payroll.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
47. Minnesota Statutes 2006, section
490.121, subdivision 15a, is amended to read:
Subd.
15a. Early retirement date.
"Early retirement date" means the last day of the month
any date after a judge attains the age of 60 but before the judge
reaches the normal retirement date.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
48. Minnesota Statutes 2006, section
490.121, subdivision 21f, is amended to read:
Subd.
21f. Normal retirement date.
"Normal retirement date" means the last day of the month in
which date a judge attains the age of 65.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
49. REVISOR INSTRUCTION.
The
revisor of statutes shall replace references to section 356.55, which was
repealed in 2002, with references to section 356.551, wherever they appear in
Minnesota Statutes or Minnesota Rules.
The revisor shall also make related grammatical changes.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
50. REPEALER.
Minnesota
Statutes 2006, sections 353.30, subdivision 1; 353.34, subdivision 7; 353.69;
354.49, subdivision 5; and 356.90, are repealed.
EFFECTIVE DATE. This section is effective the day after final enactment.
ARTICLE
3
MSRS-CORRECTIONAL
PLAN MEMBERSHIP PROVISIONS
Section
1. Minnesota Statutes 2006, section
352.91, subdivision 3d, is amended to read:
Subd.
3d. Other correctional personnel.
(a) "Covered correctional service" means service by a state
employee in one of the employment positions at a correctional facility or at
the Minnesota Security Hospital specified in paragraph (b) if at least 75
percent of the employee's working time is spent in direct contact with inmates
or patients and the fact of this direct contact is certified to the executive
director by the appropriate commissioner.
(b)
The employment positions are as follows: baker; central services administrative
specialist, intermediate; central services administrative specialist,
principal; chaplain; chemical dependency counselor supervisor; chief
cook; cook; cook coordinator; corrections program therapist 1; corrections
program therapist 2; corrections program therapist 3; corrections program
therapist 4; corrections inmate program coordinator; corrections
transitions program coordinator; corrections security caseworker; corrections
security caseworker career; corrections teaching assistant; delivery van
driver; dentist; electrician supervisor; general maintenance worker;
general repair worker; laundry coordinator; library/information research
services specialist; library/information research services specialist senior;
library technician; plant maintenance engineer lead; plumber supervisor;
psychologist 1; psychologist 3; recreation therapist; recreation therapist
coordinator; recreation program assistant; recreation therapist senior; sports
medicine specialist; water treatment plant operator; work therapy
assistant; work therapy program coordinator; and work therapy technician.
EFFECTIVE DATE. This section is effective the first day of the first payroll
period next following June 15, 2007.
Sec.
2. Minnesota Statutes 2006, section
352.91, subdivision 3e, is amended to read:
Subd.
3e. Minnesota extended treatment options program. (a) "Covered correctional service"
means service by a state employee in one of the employment positions with the
Minnesota extended treatment options program specified in paragraph (b) if at
least 75 percent of the employee's working time is spent in direct contact with
patients who are in the Minnesota extended treatment options program and if
service in such a position is certified to the executive director by the
commissioner of human services.
(b)
The employment positions are:
(1)
behavior analyst 1;
(2)
behavior analyst 2;
(3)
behavior analyst 3;
(4)
group supervisor;
(5)
group supervisor assistant;
(6)
human services support specialist;
(7) developmental
disability residential program lead;
(8)
psychologist 2;
(9)
recreation program assistant;
(10)
recreation therapist senior;
(11)
registered nurse senior;
(12)
skills development specialist;
(13)
social worker senior;
(14)
social worker specialist; and
(15)
speech pathology specialist.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
3. Minnesota Statutes 2006, section
352.91, subdivision 3f, is amended to read:
Subd.
3f. Additional Department of Human Services personnel. (a) "Covered correctional service"
means service by a state employee in one of the employment positions specified
in paragraph (b) at the Minnesota Security Hospital or in the Minnesota sex
offender program if at least 75 percent of the employee's working time is spent
in direct contact with patients and the determination of this direct contact is
certified to the executive director by the commissioner of human services.
(b)
The employment positions are:
(1)
behavior analyst 2;
(2)
behavior analyst 3;
(3) certified
occupational therapy assistant 1;
(4)
certified occupational therapy assistant 2;
(5)
chemical
dependency counselor senior;
(4) (6) client advocate;
(5) (7) customer services
specialist principal;
(8)
dental
assistant registered;
(6) (9) group
supervisor;
(7) (10) group
supervisor assistant;
(8) (11) human services
support specialist;
(12)
licensed alcohol and drug counselor;
(13)
licensed
practical nurse 1;
(9) (14) management analyst
3;
(15)
occupational
therapist;
(10) (16) occupational
therapist, senior;
(11)
office and administrative specialist senior;
(12) (17) psychologist 1;
(13) (18) psychologist 2;
(14) (19) psychologist 3;
(15) (20) recreation
program assistant;
(16) (21) recreation
therapist lead;
(22)
recreation
therapist senior;
(17) (23) rehabilitation
counselor senior;
(18) (24) security
supervisor;
(25)
skills
development specialist;
(19) (26) social worker
senior;
(20) (27) social worker
specialist;
(21) (28) social worker
specialist, senior;
(22) (29) special education
program assistant;
(30)
speech
pathology clinician;
(23) (31) work therapy
assistant; and
(24) (32) work therapy
program coordinator.
EFFECTIVE DATE. This section is effective the first day of the first payroll
period next following June 15, 2007.
Sec.
4. Minnesota Statutes 2006, section
352.91, subdivision 4b, is amended to read:
Subd.
4b. Department of Corrections; procedure for coverage change considerations. (a) The commissioner of corrections shall
appoint a standing review committee to review and determine positions that
should be included in legislative requests for correctional employees
retirement plan coverage under subdivision 4a.
(b)
Periodically, the Department of Corrections will convene meetings of the review
committee. The review committee must
review all requests and the supporting documentation for coverage by the
correctional employees retirement plan and must determine which classes or
positions meet the statutory requirements for coverage. The review committee also must determine if
incumbents of and recent retirees from classes or positions determined for
inclusion in correctional employees retirement plan coverage have prior Department
of Corrections employment which also qualified as correctional service and
which should be transferred from the general state employees retirement plan to
the plan and the initial date for each potential service credit transfer.
(c) The
review committee must evaluate and determine the eligibility date for initial
plan participation and all periods of eligibility in the correctional employees
retirement plan.
(d)
The
department must provide a notice of each determination and of the employee's
right to appeal from the review committee to each employee who requested
inclusion. Appeals must be filed with
the agency human resource manager within 30 days of the date of the notice of
determination.
(d) (e) The commissioner
of corrections shall appoint a standing appeals committee to hear appeals of
determinations for coverage. The appeal
committee must include relevant department employees and employee
representatives. Appeal committee
determinations are final.
(e) (f) All positions
approved for inclusion must be forwarded to the commissioner of corrections for
the preparation of legislation to implement the coverage change and
submission. The commissioner will
submit a written recommendation documenting classes or positions that should or
should not be covered by the correctional employees retirement plan. Documentation of each request and the final
determination must be retained in the Department of Corrections' Office of
Human Resource Management.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
5. [352.955]
TRANSFER OF PRIOR MSRS-GENERAL SERVICE CREDIT FOR CERTAIN EMPLOYEES WITH
TRANSFERRED RETIREMENT COVERAGE.
Subdivision
1. Election
to transfer prior MSRS-general service credit. (a) An eligible employee described in
paragraph (b) may elect to transfer service credit in the general state
employees retirement plan of the Minnesota State Retirement System to the
correctional state employees retirement plan for eligible prior correctional
employment.
(b)
An eligible employee is a person who is covered by section 6 or who became
eligible for retirement coverage by the correctional state employees retirement
plan of the Minnesota State Retirement System under Laws 2006, chapter 271,
article 2, this article, or legislation implementing the recommendations under
section 352.91, subdivision 4a.
(c)
Eligible prior correctional employment is covered correctional service defined
in section 6 or is employment by the Department of Corrections or by the
Department of Human Services that preceded the effective date of the retirement
coverage transfer under this article, Laws 2006, chapter 271, article 2, or
legislation implementing the recommendations under section 352.91, subdivision
4a, is continuous service, and is certified by the commissioner of corrections
and the commissioner of human services, whichever applies, and by the
commissioner of employee relations to the executive
director of the Minnesota State Retirement System as service that would qualify
for correctional state employees retirement plan coverage under Minnesota
Statutes, section 352.91, if the service was rendered after the date of
coverage transfer.
(d)
The election to transfer past service credit under this section must be made in
writing by the applicable person on a form prescribed by the executive director
of the Minnesota State Retirement System and must be filed with the executive
director of the Minnesota State Retirement System on or before (1) January 1,
2008, or the one year anniversary of the coverage transfer, whichever is later,
or (2) the date of the eligible employee's termination of state employment,
whichever is earlier.
Subd.
2. Payment
of additional equivalent contributions; pre-July 1, 2007, coverage transfers. (a) An eligible employee who was
transferred to plan coverage before July 1, 2007, and who elects to transfer
past service credit under this section must pay an additional member
contribution for that prior service period.
The additional member contribution is the difference between the member
contribution rate or rates for the general state employees retirement plan of
the Minnesota State Retirement System for the period of employment covered by
the service credit to be transferred and the member contribution rate or rates
for the correctional state employees retirement plan for the period of
employment covered by the service credit to be transferred, plus annual
compound interest at the rate of 8.5 percent.
(b)
The additional equivalent member contribution under this subdivision must be
paid in a lump sum. Payment must
accompany the election to transfer the prior service credit. No transfer election or additional
equivalent member contribution payment may be made by a person or accepted by
the executive director after January 1, 2008, or the date on which the eligible
employee terminates state employment, whichever is earlier.
(c)
If an eligible employee elects to transfer past service credit under this
section and pays the additional equivalent member contribution amount under
paragraphs (a) and (b), the applicable department shall pay an additional
equivalent employer contribution amount.
The additional employer contribution is the difference between the
employer contribution rate or rates for the general state employees retirement
plan for the period of employment covered by the service credit to be
transferred and the employer contribution rate or rates for the correctional
state employees retirement plan for the period of employment covered by the
service credit to be transferred, plus annual compound interest at the rate of
8.5 percent.
(d)
The additional equivalent employer contribution under this subdivision must be
paid in a lump sum and must be paid within 30 days of the date on which the
executive director of the Minnesota State Retirement System certifies to the
applicable department that the employee paid the additional equivalent member
contribution.
Subd.
3. Payment
of additional equivalent contributions; post-June 30, 2007, coverage transfers. (a) An eligible employee who was
transferred to plan coverage after June 30, 2007, and who elects to transfer
past service credit under this section must pay an additional member
contribution for that prior service period.
The additional member contribution is (1) the difference between the
member contribution rate or rates for the general state employees retirement
plan of the Minnesota State Retirement System for the period of employment
covered by the service credit to be transferred and the member contribution
rate or rates for the correctional state employees retirement plan for the most
recent 12-month period of employment covered by the service credit to be
transferred, plus annual compound interest at the rate of 8.5 percent, and (2)
40 percent of the unfunded actuarial accrued liability attributable to the past
service credit transfer. The unfunded
actuarial accrued liability attributable to the past service credit transfer is
the present value of the benefit obtained by the transfer of the service credit
to the correctional state employees retirement plan reduced by the amount of
the asset transfer under subdivision 4, by the amount of the member
contribution equivalent payment under clause (1), and by the amount of the
employer contribution equivalent payment under paragraph (c), clause (1).
(b) The additional equivalent
member contribution under this subdivision must be paid in a lump sum. Payment must accompany the election to
transfer the prior service credit. No
transfer election or additional equivalent member contribution payment may be
made by a person or accepted by the executive director after the one-year
anniversary date of the effective date of the retirement coverage transfer, or
the date on which the eligible employee terminates state employment, whichever
is earlier.
(c)
If an eligible employee elects to transfer past service credit under this
section and pays the additional equivalent member contribution amount under
subdivision 2, the applicable department shall pay an additional equivalent
employer contribution amount. The
additional employer contribution is (1) the difference between the employer
contribution rate or rates for the general state employees retirement plan for
the period of employment covered by the service credit to be transferred and
the employer contribution rate or rates for the correctional state employees
retirement plan for the period of employment covered by the service credit to
be transferred, plus annual compound interest at the rate of 8.5 percent, and
(2) 60 percent of the unfunded actuarial accrued liability attributable to the
past service credit transfer calculated as provided in paragraph (a), clause
(2).
(d)
The additional equivalent employer contribution under this subdivision must be
paid in a lump sum and must be paid within 30 days of the date on which the
executive director of the Minnesota State Retirement System certifies to the
applicable department that the employee paid the additional equivalent member
contribution.
Subd.
4. Transfer
of assets. Assets related to
the transferred service credit of an eligible employee must be transferred from
the general state employees retirement fund to the correctional state employees
retirement fund in an amount equal to the present value of benefits earned
under the general state employees retirement plan by the eligible employee
transferring past service to the correctional state employees retirement plan,
as determined by the actuary retained under section 356.214, multiplied by the
accrued liability funding ratio of the active members of the general state
employees retirement plan as derived from the most recent actuarial valuation
prepared under section 356.215. The
transfer of assets must be made within 45 days after the coverage transfer
election is made.
Subd.
5. Effect
of the asset transfer. Upon
the transfer of assets under subdivision 4, the service credit in the general
state employees retirement plan of the Minnesota State Retirement System is
forfeited and may not be reinstated.
The transferred service credit and the transferred assets must be
credited to the correctional state employees retirement plan and fund,
respectively.
Subd.
6. Cost
of actuarial calculations. The
applicable department shall pay the cost of the actuarial calculations required
by this section as billed by the executive director of the Minnesota State
Retirement System.
EFFECTIVE DATE. This section is effective the day after final enactment.
Sec.
6. COVERAGE
FOR PRIOR STATE SERVICE FOR CERTAIN PERSONS.
(a)
An employee who has retirement coverage for past correctional service
transferred to the correctional state employees retirement plan under paragraph
(b) is entitled to elect to obtain prior service credit for eligible state
service performed as a stores clerk after April 24, 1990, and before September
8, 1994, with the Department of Corrections.
All eligible prior service credit must be purchased.
(b)
"Covered correction service" means service between April 25, 1990,
through September 7, 1994, as a stores clerk at the Minnesota Correctional
Facility-St. Cloud.
(c)
The commissioner of corrections shall certify the eligible state service as a
stores clerk rendered by the employee to the executive director of the
Minnesota State Retirement System.
(d) The covered correctional
plan employee who has past service is entitled to purchase the past service
under Minnesota Statutes, section 352.955, if the department certifies that the
employee met the eligibility requirements for coverage.
EFFECTIVE DATE. This section is effective the day after final enactment.
ARTICLE
4
DISABILITY
BENEFIT CHANGES
Section
1. Minnesota Statutes 2006, section
353.01, subdivision 37, is amended to read:
Subd.
37. Normal retirement age. (a)
"Normal retirement age" means age 65 for a person who first
became a public employee or a member of a pension fund listed in section
356.30, subdivision 3, clause (7), before July 1, 1989. For a person who first becomes a public
employee after June 30, 1989, "normal retirement age" means the
higher of age 65 or "retirement age," as defined in United States
Code, title 42, section 416(l), as amended, but not to exceed age 66.
(b)
"Normal retirement age" means age 55 for a person who is a member of
a pension fund listed in section 356.30, subdivision 3, clauses (8) and (9).
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
2. Minnesota Statutes 2006, section
353.01, is amended by adding a subdivision to read:
Subd.
41. Duty
disability. "Duty
disability," physical or psychological, means a condition that is expected
to prevent a member, for a period of not less than 12 months, from performing
the normal duties of the position held by a person who is a member of the
public employees police and fire plan, and that is the direct result of an injury
incurred during, or a disease arising out of, the performance of normal duties
or the actual performance of less frequent duties, either of which are specific
to protecting the property and personal safety of others and that present
inherent dangers that are specific to the positions covered by the public
employees police and fire plan.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
disability benefit applicants whose last day of public employment was after
June 30, 2007.
Sec. 3. Minnesota Statutes 2006, section 353.01, is
amended by adding a subdivision to read:
Subd.
42. Less
frequent duties. "Less
frequent duties" means tasks which are designated in the applicant's job
description as either required from time to time or as assigned, but which are
not carried out as part of the normal routine of the applicant's job.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
disability benefit applicants whose last day of public employment was after
June 30, 2007.
Sec.
4. Minnesota Statutes 2006, section
353.01, is amended by adding a subdivision to read:
Subd.
43. Line
of duty death. "Line of
duty death" means a death that occurs while performing or as a direct
result of performing normal or less frequent duties which are specific to
protecting the property and personal safety of others and that present inherent
dangers that are specific to the positions covered by the public employees
police and fire plan.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
disability benefit applicants whose last day of public employment was after
June 30, 2007.
Sec. 5. Minnesota Statutes 2006, section 353.01, is
amended by adding a subdivision to read:
Subd.
44. Normal
duties. "Normal
duties" means specific tasks which are designated in the applicant's job
description and which the applicant performs on a day-to-day basis, but do not
include less frequent duties which may be requested to be done by the employer
from time to time.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
disability benefit applicants whose last day of public employment was after
June 30, 2007.
Sec.
6. Minnesota Statutes 2006, section
353.01, is amended by adding a subdivision to read:
Subd.
45. Not
line of duty death. For
purposes of survivor benefits under the public employees police and fire plan,
a "not line of duty death" is any death not specified under
subdivision 43.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to disability
benefit applicants whose last day of public employment was after June 30, 2007.
Sec.
7. Minnesota Statutes 2006, section
353.01, is amended by adding a subdivision to read:
Subd.
46. Regular
disability. "Regular
disability," physical or psychological, means a condition that is expected
to prevent a member, for a period of not less than 12 months, from performing
the normal duties of the position held by a person who is a member of the
public employees police and fire plan, and which results from a disease or an
injury that arises from any activities while not at work, or while at work and
performing those normal or less frequent duties that do not present inherent
dangers that are specific to the occupations covered by the public employees police
and fire plan.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
disability benefit applicants whose last day of public employment was after
June 30, 2007.
Sec.
8. [353.031]
DISABILITY DETERMINATION PROCEDURES.
Subdivision
1. Application. This section applies to all disability
determinations for the public employees general fund, the public employees
police and fire fund, and the local government correctional service retirement
plan and any other disability determination subject to approval by the board,
except as otherwise specified in section 353.33, 353.656, or 353E.05. These requirements and the requirements of
section 353.03, subdivision 3, are in addition to the specific requirements of
each plan and govern in the event there is any conflict between these sections
and the procedures specific to any of those plans under section 353.33,
353.656, or 353E.06.
Subd.
2. Plan
document policy statement. Disability
determinations for the public employees general fund must be made subject to
section 353.01, subdivision 19; and for the police and fire plan and the local
government correctional service retirement plan must be made consistent with
the legislative policy and intent set forth in section 353.63.
Subd.
3. Procedure
to determine eligibility; generally.
(a) Every claim for a disability benefit must be initiated in writing
on an application form and in the manner prescribed by the executive director
and filed with the executive director.
An application for disability benefits must be made within 18 months
next following termination of public service as defined under section 353.01,
subdivision 11a.
(b)
All medical reports must support a finding that disability arose before the
employee was placed on any paid or unpaid leave of absence or terminated public
service, as defined under section 353.01, subdivision 11a.
(c) An applicant for disability
shall provide a detailed report signed by a licensed medical doctor and at
least one additional report signed by a medical doctor, psychologist, or
chiropractor. The applicant shall
authorize the release of all medical and health care evidence, including all
medical records and relevant information from any source, to support the
application for initial, or the continuing payment of, disability benefits.
(d)
All reports must contain an opinion regarding the claimant's prognosis, the
duration of the disability, and the expectations for improvement. Any report that does not contain and support
a finding that the disability will last for at least one year may not be relied
upon to support eligibility for benefits.
(e)
Where the medical evidence supports the expectation that at some point in time
the claimant will no longer be disabled, any decision granting disability may
provide for a termination date upon which disability can be expected to no
longer exist. In the event a
termination date is made part of the decision granting benefits, prior to the
actual termination of benefits, the claimant shall have the opportunity to show
that the disabling condition for which benefits were initially granted
continues. In the event the benefits
terminate in accordance with the original decision, the claimant may petition
for a review by the board of trustees under section 353.03, subdivision 3, or
may reapply for disability in accordance with these procedures and section
353.33, 353.656, or 353E.06, as applicable.
(f)
Any claim to disability must be supported by a report from the employer
indicating that there is no available work that the employee can perform in the
employee's disabled condition and that all reasonable accommodations have been
considered. Upon request of the
executive director, an employer shall provide evidence of the steps the employer
has taken to attempt to provide reasonable accommodations and continued
employment to the claimant. The
employer shall also provide a certification of the member's past public
service; the dates of any paid sick leave, vacation, or any other employer-paid
salary continuation plan beyond the last working day; and whether or not any
sick or annual leave has been allowed.
(g)
An employee who is placed on leave of absence without compensation because of a
disability is not barred from receiving a disability benefit.
(h)
An applicant for disability benefits may file a retirement annuity application
under section 353.29, subdivision 4, simultaneously with an application for
disability benefits. If the application
for disability benefits is approved, the retirement annuity application is
cancelled. If disability benefits are
denied, the retirement annuity application must be processed upon the request
of the applicant. No member of the
public employees general plan, the public employees police and fire plan, or
the local government correctional service retirement plan may receive a
disability benefit and a retirement annuity simultaneously from the same plan.
Subd.
4. Additional
requirements to determine eligibility for police and fire or local government
correctional service plan disability benefits. (a) If an application for disability
benefits is filed within two years of the date of the injury or the onset of
the illness that gave rise to the disability application, the application must
be supported by evidence that the applicant is unable to perform the duties of
the position held by the applicant on the date of the injury or the onset of
the illness causing the disability. The
employer must provide evidence indicating whether the applicant is able or
unable to perform the duties of the position held on the date of the injury or
onset of the illness causing the disability and the specifications of any
duties that the individual can or cannot perform.
(b)
If an application for disability benefits is filed more than two years after
the date of injury or the onset of an illness causing the disability, the
application must be supported by evidence that the applicant is unable to
perform the most recent duties that are expected to be performed by the
applicant during the 90 days before the filing of the application. The employer must provide evidence of the
duties that are expected to be performed by the applicant during the 90 days
before the filing of the application, whether the applicant can or cannot
perform those duties overall, and the specifications of any duties that the
applicant can or cannot perform.
(c)
Any report supporting a claim to disability benefits under section 353.656 or
353E.06 must specifically relate the disability to its cause; and for any claim
to duty disability from an injury or illness arising out of an act of duty, the
report must relate the cause of disability to specific tasks or functions
required to be performed by the employee in fulfilling the employee's
duty-related acts which must be specific to the inherent dangers of the
positions eligible for membership in the police and fire fund and the local
government correctional service retirement plan. Any report that does not relate the cause of disability to
specific acts or functions performed by the employee may not be relied upon as
evidence to support eligibility for benefits and may be disregarded in the
executive director's decision-making process.
(d)
Any application for duty disability must be supported by a first report of
injury as defined in section 176.231.
(e)
If a member who has applied for and been approved for disability benefits
before the termination of service does not terminate service or is not placed
on an authorized leave of absence as certified by the governmental subdivision
within 45 days following the date on which the application is approved, the
application shall be canceled. If an
approved application for disability benefits has been canceled, a subsequent
application for disability benefits may not be filed on the basis of the same medical
condition for a minimum of one year from the date on which the previous
application was canceled.
Subd.
5. Medical
adviser. The executive
director may contract with licensed physicians or physicians on the staff of
the state commissioner of health, as designated by the commissioner, to be the
medical adviser of the association. The
medical adviser shall review all medical reports submitted to the association,
including the findings of an independent medical examination requested under
this section, and shall advise the executive director.
Subd.
6. Independent
medical examination. Any
individual applying for or receiving disability benefits must submit to an
independent medical examination if requested by the executive director. The medical examination must be paid for by
the association.
Subd.
7. Refusal
of examination or medical evidence.
If a person applying for or receiving a disability benefit refuses to
submit to a medical examination under subdivision 6, or fails to provide or to
authorize the release of medical evidence under subdivision 3, the association
shall cease the application process or shall discontinue the payment of a
disability benefit, whichever is applicable.
Upon the receipt of the requested medical evidence, the association
shall resume the application process or the payment of a disability benefit
upon approval for the continuation, whichever is applicable.
Subd.
8. Proof
of continuing disability. (a)
A disability benefit payment must not be made except upon adequate proof
furnished to the executive director of the association that the person remains
disabled.
(b)
During the time when disability benefits are being paid, the executive director
of the association has the right, at reasonable times, to require the disabled
member to submit proof of the continuance of the disability claimed.
(c)
Adequate proof of a disability must include a written expert report by a
licensed physician, a licensed chiropractor, or, with respect to a mental
impairment, a licensed psychologist.
Subd.
9. Application
approval or denial; decision of executive director. Any decision of the executive director is
final, except that a member whose application for disability benefits or whose
continuation of disability benefits is denied may appeal the executive
director's decision to the board of trustees within 60 days of receipt of a
certified letter notifying the member of the decision to deny the application
or continuation of benefits. In
developing the record for review by the board when a decision is appealed, the
executive director may direct that the applicant participate in a fact-finding
session conducted by an administrative law judge assigned by the Office of
Administrative Hearings, and, as applicable, a vocational assessment conducted
by the qualified rehabilitation counselor on contract with the Public Employees
Retirement Association.
Subd.
10.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
9. Minnesota Statutes 2006, section
353.33, subdivision 1, is amended to read:
Subdivision
1. Age,
service, and salary requirements. A
coordinated member who has at least three years of allowable service and
becomes totally and permanently disabled before normal retirement age, and a
basic member who has at least three years of allowable service and who becomes
totally and permanently disabled, upon application as defined under section
353.031, is entitled to a disability benefit in an amount determined under
subdivision 3. If the disabled person's
public service has terminated at any time, at least two of the required three
years of allowable service must have been rendered after last becoming an
active member. A repayment of a
refund must be made within six months after the effective date of disability
benefits under subdivision 2 or within six months after the date of the filing
of the disability application, whichever is later. No purchase of prior service and no payment made in lieu of
salary deductions otherwise authorized under section 353.01, subdivision 16,
may be made after the occurrence of the disability for which an application
under this section is filed.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
10. Minnesota Statutes 2006, section
353.33, subdivision 2, is amended to read:
Subd.
2. Applications;
Accrual of benefits. Every claim
or demand for a total and permanent disability benefit must be initiated by
written application in the manner and form prescribed by the executive director
showing compliance with the statutory conditions qualifying the applicant for a
total and permanent disability benefit and filed with the executive
director. A member or former member who
became totally and permanently disabled during a period of membership shall
file application for total and permanent disability benefits within three years
next following termination of public service. (a) This benefit begins to accrue the day following the
commencement of disability, when the applicant is no longer receiving
any form of compensation, whether salary or paid leave; 90 days preceding
the filing of the application, or, if annual or sick leave or any other
employer-paid salary continuation plan is paid for more than the 90-day
period, from the date salary ceased, whichever is later. No member is entitled to receive a
disability benefit payment when there remains to the member's credit any unused
annual leave or, sick leave, or any other employer-paid salary
continuation plan, or under any other circumstances when, during the period
of disability, there has been no impairment of the person's salary.
(b)
Payment
must not accrue beyond the end of the month in which entitlement has
terminated. If the disabilitant dies
prior to negotiating the check for the month in which death occurs, payment is
made to the surviving spouse, or if none, to the designated beneficiary, or if
none, to the estate. An applicant
for total and permanent disability benefits may file a retirement annuity
application under section 353.29, subdivision 4, simultaneously with an
application for total and permanent disability benefits. The retirement annuity application is void
upon the determination of the entitlement for disability benefits by the
executive director. If disability benefits
are denied, the retirement annuity application must be initiated and processed.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
11. Minnesota Statutes 2006, section
353.33, subdivision 4, is amended to read:
Subd.
4. Procedure
to determine eligibility. (a) The
applicant shall provide an expert report signed by a licensed physician,
psychologist, or chiropractor and the applicant must authorize the release of
medical and health care evidence, including all medical records and relevant
information from any source, to support the application for total and permanent
disability benefits. Eligibility for disability benefits must be
determined following the procedures defined in section 353.031.
(b)
The medical adviser shall verify the medical evidence and, if necessary for
disability determination, suggest the referral of the applicant to specialized
medical consultants.
(c)
The association shall also obtain from the employer a certification of the
member's past public service, the dates of any paid sick leave and vacation
beyond the last working day and whether or not any sick leave or annual leave
has been allowed.
(d) (b) If, after following the
procedures for determining eligibility for benefits under section 353.031, and upon
consideration of the medical evidence received and the recommendations of the
medical adviser, it is determined by the executive director that the applicant
is totally and permanently disabled within the meaning of the law, the
association shall grant the person a disability benefit.
(e)
An employee who is placed on leave of absence without compensation because of a
disability is not barred from receiving a disability benefit.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
12. Minnesota Statutes 2006, section
353.33, subdivision 6, is amended to read:
Subd.
6. Continuing
eligibility for benefits. The
association shall determine eligibility for continuation of disability benefits
and require periodic examinations and evaluations of disabled members as
frequently as deemed necessary. The
association shall require the disabled member to provide an expert report
signed by a licensed physician, psychologist, or chiropractor and the disabled
member shall authorize the release of medical and health care evidence,
including all medical and health care records and information from any source,
relating to an application for continuation of disability benefits. Disability benefits are contingent upon
a disabled person's participation in a vocational rehabilitation evaluation if
the executive director determines that the disabled person may be able to
return to a gainful occupation. If,
after a review by the executive director under section 353.031, subdivision 8,
a member is found to be no longer totally and permanently disabled, payments
must cease the first of the month following the expiration of a 30-day period
after the member receives a certified letter notifying the member that payments
will cease.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
13. Minnesota Statutes 2006, section
353.33, subdivision 7a, is amended to read:
Subd.
7a. Trial work period. (a) This
subdivision applies only to the Public Employees Retirement Association general
employees retirement plan.
(b)
If,
following a work or non-work-related injury or illness, a disabled member
attempts to return to work for their previous public employer or attempts to
return to a similar position with another public employer, on a full-time or
less than full-time basis, the Public Employees Retirement Association shall
continue paying the disability benefit for a period not to exceed six
months. The disability benefit must
continue in an amount that, when added to the subsequent employment earnings
and workers' compensation benefit, does not exceed the salary at the date of
disability or the salary currently paid for similar positions, whichever is
higher.
(b) (c) No deductions for the general
employees retirement fund plan may be taken from the salary
of a disabled person who is attempting to return to work under this provision
unless the member waives further disability benefits.
(c) (d) A member only may return to
employment and continue disability benefit payments once while receiving
disability benefits from a the general employees retirement plan
administered by the Public Employees Retirement Association.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
14. Minnesota Statutes 2006, section
353.651, subdivision 4, is amended to read:
Subd.
4. Early
retirement. (a) A person who
becomes a police and fire plan member after June 30, 2007, or a former member
who is reinstated as a member of the plan after that date, who is at least 50
years of age with at least three years of allowable service, upon the
termination of public service is entitled upon application to a retirement
annuity equal to the normal annuity calculated under subdivision 3, reduced by
two-tenths of one percent for each month that the member is under age 55 at the
time of retirement.
(b)
Upon the termination of public service, any police officer or firefighter and fire
plan member who has become not specified in paragraph (a), upon
attaining at least 50 years old and who has of age with at
least three years of allowable service is entitled upon application to a
retirement annuity equal to the normal annuity calculated under subdivision 3,
reduced by one-tenth of one percent for each month that the member is under age
55 at the time of retirement.
EFFECTIVE DATE. This section is effective July 1, 2007.
Sec.
15. Minnesota Statutes 2006, section
353.656, subdivision 1, is amended to read:
Subdivision
1. In
line of Duty disability; computation of benefits. (a) A member of the police and fire plan who:
(1)
has not met the requirements for a retirement annuity under section 353.651,
subdivision 1, or
(2)
has met the requirements for a retirement annuity under section 353.651,
subdivision 1, but who does not have 20 years of credited service; and who
becomes disabled and physically unfit to perform duties as a police officer,
firefighter, or paramedic as defined under section 353.64, subdivision 10, as a
direct result of an injury, sickness, or other disability incurred in or
arising out of any act of duty, which has or is expected to render the member
physically or mentally unable to perform the duties as a police officer,
firefighter, or paramedic as defined under section 353.64, subdivision 10, for
a period of at least one year is determined to qualify for duty disability as
defined in section 353.01, subdivision 41, shall receive disability benefits during
the period of such disability.
(b)
The benefits must be in an amount equal to 60 percent of the "average salary"
as defined in section 353.01, subdivision 17a, plus an additional percent
specified in section 356.315, subdivision 6, of that average salary for each
year of service in excess of 20 years.
(b)
To be eligible for a benefit under paragraph (a), the member must have:
(1)
not met the requirements for a retirement annuity under section 353.651,
subdivision 1; or
(2)
met the requirements under that subdivision, but not have at least 20 years of
allowable service credit.
(c) If paragraph (b), clause
(2), applies, the disability benefit must be paid for a period of 60 months
from the disability benefit accrual date and at the end of that period is
subject to provisions of subdivision 5a.
(d)
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.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
disability benefit applicants whose last day of public employment was after
June 30, 2007.
Sec.
16. Minnesota Statutes 2006, section
353.656, is amended by adding a subdivision to read:
Subd.
1a. Total
and permanent duty disability; computation of benefits. (a) A member of the police and fire plan
whose disabling condition is determined to be a duty disability that is also a
permanent and total disability as defined in section 353.01, subdivision 19, is
entitled to receive, for life, disability benefits in an amount equal to 60
percent of the average salary as defined in section 353.01, subdivision 17a,
plus an additional percent specified in section 356.315, subdivision 6, of that
average salary for each year of service in excess of 20 years.
(b)
A disability benefit payable under paragraph (a) is subject to eligibility
review under section 353.33, subdivision 6, but the review may be waived if the
executive director receives a written statement from the association's medical
advisor that no improvement can be expected in the member's disabling condition
that was the basis for payment of the benefit under paragraph (a). A member receiving a disability benefit
under this subdivision who is found to no longer be permanently and totally
disabled as defined under section 353.01, subdivision 19, but continues to meet
the definition for receipt of a duty disability under section 353.01,
subdivision 41, is subject to subdivision 1 under this section upon written
notice from the association's medical advisor that the person is no longer
considered permanently and totally disabled.
(c) If a member approved for disability benefits
under this subdivision dies before attaining normal retirement age as defined
in section 353.01, subdivision 37, paragraph (b), or within 60 months of the
effective date of the disability, whichever is later, the surviving spouse is
entitled to receive a survivor benefit under section 353.657, subdivision 2,
paragraph (a), clause (1), if the death is the direct result of the disabling
condition for which disability benefits were approved, or section 353.657,
subdivision 2, paragraph (a), clause (2), if the death is not directly related
to the disabling condition for which benefits were approved under this
subdivision.
(d)
If the election of an actuarial equivalent optional annuity is not made at the
time the permanent and total disability benefit accrues, an election must be
made within 90 days before the member attains normal retirement age as defined
under section 353.01, subdivision 37, paragraph (b), or having collected total
and permanent disability benefits for 60 months, whichever is later. If a member receiving disability benefits
who has dependent children dies, subdivision 6a, paragraph (c), applies.
EFFECTIVE DATE. This section is effective July 1, 2007, and applies to
disability benefit applicants whose last day of public employment was after
June 30, 2007.
Sec.
17. Minnesota Statutes 2006, section
353.656, subdivision 1a, is amended to read:
Subd. 1a
1b. Optional annuity election. (a)
A disabled member of the police and fire fund may elect to receive the
normal disability benefit or an actuarial equivalent optional annuity as
provided in section 353.30, subdivision 3.
If the election of an actuarial equivalent optional
annuity may be is made prior to before the
commencement of payment of the disability benefit or as specified under
subdivision 6a., the optional annuity shall must begin
to accrue on the same date as provided for the disability benefit
covering only the disabilitant would have accrued.
(b) If an election of an
optional annuity is not made before the commencement of the disability benefit,
the disabilitant may elect an optional annuity:
(1) within
90 days before normal retirement age;
(2)
upon the filing of an application to convert to an early retirement annuity, if
electing to convert to an early retirement annuity before the normal retirement
age; or
(3)
within 90 days before the expiration of the 60-month period for which a
disability benefit is paid, if the disability benefit is payable because the
disabled member did not have at least 20 years of allowable service at normal
retirement age.
(c)
If the
person a disabled member who is not the spouse of the member is
has named as beneficiary of the a joint and survivor
optional annuity, beneficiary dies before the disability benefit
ceases and is recalculated under subdivision 5a, the person is beneficiary
eligible to receive the joint and survivor annuity only if the
spouse, on may elect to have the disability application form
prescribed by annuity converted at the executive director,
permanently waives times designated in paragraph (b), clause (1), (2),
or (3), whichever allows for the surviving spouse benefits under section
353.657, subdivisions 2 and 2a earliest payment of a higher joint and
survivor annuity option resulting from recalculation under subdivision 5a,
paragraph (e).
(d)
A disabled member may name a person other than the spouse as beneficiary of a
joint and survivor annuity only if the spouse of the disabled member refuses
to permanently waive the waives surviving spouse coverage,
the selection of a person other than the spouse of the member as a joint
annuitant is invalid on the disability application form prescribed by
the executive director.
(2) (e) If the spouse of
the member permanently waives survivor coverage, the dependent child or children,
if any, continue to be eligible for survivor dependent child benefits,
including the minimum benefit under section 353.657, subdivision 3.,
and the designated optional annuity beneficiary may draw the monthly
benefit; however, the amount payable to the dependent child or children and
joint annuitant must not exceed the 70 percent maximum family benefit under
section 353.657, subdivision 3. If the
maximum is exceeded, the benefit of the joint annuitant must be reduced to the
amount necessary so that the total family benefit does not exceed the 70
percent maximum family benefit amount.
(3)
If the spouse is named as the beneficiary of the joint and survivor optional
annuity, the spouse may draw the monthly benefit; however, the amount payable
to the dependent child or children and the joint annuitant must not exceed the
70 percent maximum family benefit under section 353.657, subdivision 3. If the maximum is exceeded, each dependent
child will receive ten percent of the member's specified average monthly
salary, and the benefit to the joint annuitant must be reduced to the amount
necessary so that the total family benefit does not exceed the 70 percent
maximum family benefit amount. The
joint and survivor optional annuity must be restored to the surviving spouse,
plus applicable postretirement adjustments under section 356.41, as the
dependent child or children become no longer dependent under section 353.01,
subdi