Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10629
subdivision 14;
256B.055, by adding a subdivision; 256B.056, subdivision 4; 256B.057,
subdivision 9; 256B.0625, subdivisions 8, 8a, 8b, 18a, 22, 31, by adding
subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as amended; 256B.0754,
by adding a subdivision; 256B.0915, subdivision 3b; 256B.19, subdivision 1c;
256B.69, subdivisions 20, as amended, 27, by adding subdivisions; 256B.692, subdivision
1; 256B.75; 256B.76, subdivisions 2, 4, by adding a subdivision; 256D.0515;
256J.20, subdivision 3; 256J.24, subdivision 10; 256J.37, subdivision 3a;
256L.02, subdivision 3; 256L.03, subdivision 3, by adding a subdivision;
256L.05, by adding a subdivision; 256L.07, by adding a subdivision; 256L.12,
subdivisions 5, 6, 9; 256L.15, subdivision 1; 626.556, subdivision 10i;
626.557, subdivision 9d; Minnesota Statutes 2009 Supplement, sections 62J.495,
subdivisions 1a, 3, by adding a subdivision; 144.0724, subdivision 11; 157.16,
subdivision 3; 245C.27, subdivision 1; 252.025, subdivision 7; 252.27,
subdivision 2a; 256.045, subdivision 3; 256.969, subdivision 3a; 256B.0625,
subdivisions 9, 13e; 256B.0653, subdivision 5; 256B.0911, subdivision 1a; 256B.0915,
subdivision 3a; 256B.69, subdivision 23; 256B.76, subdivision 1; 256B.766;
256D.03, subdivision 3, as amended; 256J.425, subdivision 3; 256L.03,
subdivision 5; 256L.11, subdivision 1; 327.15, subdivision 3; Laws 2005, First
Special Session chapter 4, article 8, section 66, as amended; Laws 2009,
chapter 79, article 3, section 18; article 5, sections 17; 18; 22; 75,
subdivision 1; 78, subdivision 5; article 13, sections 3, subdivisions 1, as
amended, 3, as amended, 4, as amended, 8, as amended; 5, subdivision 8, as
amended; Laws 2009, chapter 173, article 1, section 17; Laws 2010, chapter 200,
article 1, sections 12; 16; 21; article 2, section 2, subdivisions 1, 8;
proposing coding for new law in Minnesota Statutes, chapters 62A; 62D; 62E;
62J; 62Q; 144; 245; 254B; 256; 256B; repealing Minnesota Statutes 2008,
sections 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03,
subdivisions 3a, 3b, 5, 6, 7, 8; Minnesota Statutes 2009 Supplement, section
256D.03, subdivision 3; Laws 2009, chapter 79, article 7, section 26,
subdivision 3; Laws 2010, chapter 200, article 1, sections 12, subdivisions 1,
2, 3, 4, 5, 6, 7, 8, 9; 18; 19."
With the
recommendation that when so amended the bill pass and be re-referred to the
Committee on Ways and Means.
The report was adopted.
Lenczewski from the Committee on Taxes to which was referred:
H. F. No. 2849, A bill for an act relating to
business development; providing for a comparative study of state laws affecting
small business start-ups in Minnesota and Wisconsin.
Reported the same back with the following amendments:
Page 1, line 16, after "taxes" insert ",
including special tax provisions that affect the business' ability to start
operations"
With the recommendation that when so amended the bill pass.
The report was adopted.
Pelowski from the Committee on State and Local Government
Operations Reform, Technology and Elections to which was referred:
H. F. No. 2958, A bill for an act relating to
state government; making changes to the Open Meeting Law; amending Minnesota
Statutes 2008, sections 13D.01, subdivisions 1, 3, 4, 6, by adding a
subdivision; 13D.021, subdivision 1; 13D.04, subdivisions 2, 6.
Reported the same back with the following amendments:
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10630
Page 1, delete
section 1, and insert:
"Section 1.
Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to
read:
Subdivision 1. In executive branch, local government;
open meetings; definitions. (a)
All meetings, including executive sessions, of a public body
must be open to the public.
(a) of a state
(1) agency,
(2) board,
(3) commission, or
(4) department,
when
required or permitted by law to transact public business in a meeting;
(b) of the governing body of a
(1) school district however organized,
(2) unorganized territory,
(3) county,
(4) statutory or home rule charter city,
(5) town, or
(6) other public body;
(c) of any
(1) committee,
(2) subcommittee,
(3) board,
(4) department, or
(5) commission,
of a public
body; and
(d) of the governing body or a committee of:
(1) a statewide public pension plan defined in section
356A.01, subdivision 24; or
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10631
(2) a local
public pension plan governed by section 69.77, sections 69.771 to 69.775, or
chapter 354A, 422A, or 123B.
(b) "Governmental power" means the power to
regulate, license, enact ordinances, make public policy, or determine the use
of public resources or otherwise transact public business.
(c) "Meeting" means a quorum of the members of a
public body transacting public business.
(d) "Public body" means:
(1) a governmental multimember state, regional, or local
appointed or elected body with governmental powers; a committee, subcommittee,
board, commission, or other subset of the body with governmental powers;
(2) a multimember advisory group, however named, established
by a body or a subset of a body described in clause (1) for the purpose of
providing the body advice or recommendations on its exercise of governmental
powers on a matter that is or may be pending before the body or subset of the
body. This does not include an advisory
group comprised solely of the body's employees, students, or contractors. "Established" means the body or
subset of the body that (i) provides for the multimember advisory group to be
formed under resolution or ordinance or order and makes the appointments
directly, and (ii) provides any public resources for the group's work;
(3) a multimember advisory body established under section
15.014 or other state law; or
(4) the governing body of a statewide public pension plan as
defined by section 356A.01, subdivision 24, or the governing body of a local
public pension plan under section 69.77, sections 69.771 to 69.775, or chapter
354A, 422A, or 423B.
(e) Meetings of the legislature are governed by section 3.055."
Page 5, after line 5, insert:
"Sec. 9.
Minnesota Statutes 2008, section 13D.06, is amended by adding a
subdivision to read:
Subd. 5.
Advisory groups. A person serving on an advisory group,
as defined in section 13D.01, subdivision 1, paragraph (c), clause (2), is not
subject to this section."
Correct the title numbers accordingly
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Rules and Legislative Administration.
The report was adopted.
Solberg from the Committee on Ways and Means to which was
referred:
H. F. No. 3033, A bill for an act relating to
energy; modifying fee for storage of spent nuclear fuel; establishing rebate
program for solar photovoltaic modules; appropriating money; amending Minnesota
Statutes 2008, section 116C.779, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 116C.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10632
Carlson from the
Committee on Finance to which was referred:
H. F. No. 3281,
A bill for an act relating to retirement; various retirement plans; increasing
certain contribution rates; suspending certain post-retirement adjustments;
reducing certain postretirement adjustment increase rates; reducing interest
rates on refunds; reducing deferred annuity augmentation rates; eliminating
interest on reemployed annuitant earnings limitation deferred accounts;
increasing certain vesting requirements; increasing certain early retirement
reduction rates; reducing certain benefit accrual rates; extending certain
amortization periods; making changes of an administrative nature for retirement
plans administered by the Minnesota State Retirement Association; revising
insurance withholding for certain retired public employees; authorizing state
patrol plan service credit for leave procedures; addressing plan coverage
errors and omitted contributions; revising unlawful discharge annuity repayment
requirements; requiring employment unit accommodation of daily valuation of
investment accounts; eliminating administrative fee maximum for the
unclassified state employees retirement program; making changes of an
administrative nature in the general employees retirement plan of the Public
Employees Retirement Association, the public employees police and fire
retirement plan, and the defined contribution retirement plan; making various
administrative modifications in the voluntary statewide lump-sum volunteer
firefighter retirement plan of the Public Employees Retirement Association;
revising purchase of salary credit procedures in certain partial salary
situations; adding new partial salary credit purchase authority for partial
paid medical leaves and budgetary leaves; redefining TRA allowable service
credit; defining annual base salary; requiring base salary reporting by
TRA-covered employing units; making changes of an administrative nature in the
Minnesota State Colleges and Universities System individual retirement account
plan; setting deadline dates for actuarial reporting; extending and revising an
early retirement incentive program; permitting the court-ordered revocation of
an optional annuity election in certain marriage dissolutions; transfer of the
administrative functions of the Minneapolis Employees Retirement Fund to the
Public Employees Retirement Association; creation of MERF consolidation account
within the Public Employees Retirement Association; making various technical
corrections relating to volunteer fire relief associations; revising
break-in-service return to firefighting authorizations; authorizing Minnesota
deferred compensation plan service pension transfers; revising payout defaults
in survivor benefits; authorizing corrections of certain special fund deposits;
requiring a retirement fund investment authority study; authorizing certain
bylaw amendments; making technical changes; appropriating money; amending
Minnesota Statutes 2008, sections 3A.02, subdivision 4; 3A.07; 11A.04; 11A.23,
subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316,
subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41,
subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04,
subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12,
subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by
adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1;
352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1,
2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions
4, 9, by adding a subdivision; 352D.02, subdivisions 1, 1c, 2, 3; 352D.03;
352D.04, subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3;
352D.065, subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01,
subdivisions 2b, 2d, by adding subdivisions; 353.0161, subdivision 2; 353.03,
subdivision 1; 353.05; 353.27, as amended; 353.29, subdivision 1; 353.30,
subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6;
353.37, subdivisions 1, 2, 3, 3a, 4, 5; 353.46, subdivisions 2, 6; 353.64,
subdivision 7; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 353.71,
subdivisions 1, 2, 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2;
353.88; 353D.01, subdivision 2; 353D.03, subdivision 1; 353D.04, subdivisions
1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 353F.025,
subdivisions 1, 2; 353F.03; 354.05, by adding a subdivision; 354.07,
subdivision 5; 354.091; 354.42, subdivisions 3, 7, by adding subdivisions;
354.52, subdivision 6, by adding a subdivision; 354.66, subdivision 3; 354.71;
354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, by adding a subdivision;
354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1;
354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 354A.39; 354B.25,
subdivisions 1, 3; 354C.14; 355.095, subdivision 1; 356.214, subdivision 1;
356.215, subdivisions 3, 8; 356.24, subdivision 1; 356.30, subdivisions 1, 3;
356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions 2, 4; 356.315,
subdivision 5; 356.351, subdivision 1; 356.407, subdivision 2; 356.431, subdivision
1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50, subdivision 4;
356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2, 3, 7, 8;
356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511, subdivision
3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by adding a
subdivision;
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10633
518.58,
subdivisions 3, 4; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011,
subdivision 1; 69.031, subdivision 5; 69.772, subdivision 6; 69.773,
subdivision 6; 352.01, subdivision 2b; 352.75, subdivision 4; 352.95,
subdivision 2; 352B.011, subdivision 3; 353.01, subdivisions 2, 2a, 16; 353.06;
353.27, subdivisions 2, 3, 7; 353.33, subdivision 1; 353.371, subdivision 4;
353.65, subdivisions 2, 3; 353F.02, subdivision 4; 353G.05, subdivision 2;
353G.06, subdivision 1; 353G.08; 353G.09, subdivision 3; 353G.11, subdivision
1, by adding a subdivision; 354.42, subdivision 2; 354.47, subdivision 1;
354.49, subdivision 2; 354.52, subdivision 4b; 354.55, subdivision 11; 354A.12,
subdivision 2a; 356.20, subdivision 2; 356.215, subdivision 11; 356.32,
subdivision 2; 356.351, subdivision 2; 356.401, subdivision 3; 356.415,
subdivisions 1, 2, by adding subdivisions; 356.96, subdivisions 1, 5; 423A.02,
subdivision 3; 424A.01, subdivisions 1, 6; 424A.015, by adding a subdivision;
424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05, subdivision
3, by adding a subdivision; 424A.08; 480.181, subdivision 2; Laws 2009, chapter
169, article 4, section 49; article 5, section 2; proposing coding for new law
in Minnesota Statutes, chapters 352B; 353; 353G; 356; repealing Minnesota
Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 352.91,
subdivision 5; 353.01, subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03,
subdivision 2; 353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01,
subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02;
422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8;
422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09;
422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14,
subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1,
2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7;
422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23,
subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25;
Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08,
subdivision 5; 424A.001, subdivision 6; Laws 2009, chapter 169, article 10,
section 32.
Reported the
same back with the following amendments:
Delete
everything after the enacting clause and insert:
"ARTICLE
1
FINANCIAL
SUSTAINABILITY PROVISIONS
Section
1. Minnesota Statutes 2008, section
3A.02, subdivision 4, is amended to read:
Subd. 4. Deferred
annuities augmentation. (a) The
deferred retirement allowance of any former legislator must be augmented as
provided herein.
(b) The
required reserves applicable to the deferred retirement allowance, determined
as of the date the benefit begins to accrue using an appropriate mortality
table and an interest assumption of six percent, must be augmented from the
first of the month following the termination of active service, or July 1,
1973, whichever is later, to the first day of the month in which the allowance
begins to accrue, at the following annually compounded rate or rates:
(1) five
percent until January 1, 1981;
(2) three
percent from January 1, 1981, or from the first day of the month following the
termination of active service, whichever is later, until January 1 of the year
in which the former legislator attains age 55 or until January 1, 2012,
whichever is earlier; and
(3) five
percent from the period end date under clause (2) to until the
effective date of retirement or until January 1, 2012, whichever is
earlier; and
(4) two
percent after December 31, 2011.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10634
Sec. 2. Minnesota Statutes 2008, section 352.113,
subdivision 1, is amended to read:
Subdivision 1. Age
and service requirements. (a) An
employee covered by the system, who is less than normal retirement age and who
becomes totally and permanently disabled after three or more years of allowable
service if employed before July 1, 2010, or after five or more years of
allowable service if employed after June 30, 2010, is entitled to
a disability benefit in an amount provided in subdivision 3.
(b) If the disabled employee's
state service has terminated at any time, the employee must have at least two
years of allowable service after last becoming a state employee covered by the
system.
(c) Refunds may be repaid under
section 352.23 before the effective accrual date of the disability benefit
under subdivision 2.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 3. Minnesota Statutes 2008, section 352.115,
subdivision 1, is amended to read:
Subdivision 1. Age
and service requirements. After
separation from state service, any employee (1) who has attained the age of at
least 55 years and who is entitled to credit for at least three years allowable
service if employed before July 1, 2010, or after five or more years of
allowable service if employed after June 30, 2010, or (2) who has received
credit for at least 30 years allowable service regardless of age, is entitled
upon application to a retirement annuity.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 4. Minnesota Statutes 2008, section 352.12,
subdivision 2, is amended to read:
Subd. 2. Surviving
spouse benefit. (a) If an employee
or former employee has credit for at least three years allowable service if
the employee was employed before July 1, 2010, or for at least five years of
allowable service if the employee was employed after June 30, 2010, and
dies before an annuity or disability benefit has become payable,
notwithstanding any designation of beneficiary to the contrary, the surviving
spouse of the employee may elect to receive, in lieu of the refund with
interest under subdivision 1, an annuity equal to the joint and 100 percent
survivor annuity which the employee or former employee could have qualified for
on the date of death.
(b) If the employee was
under age 55 and has credit for at least 30 years of allowable service on the
date of death, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the employee and surviving spouse on
the date of death. The annuity is
payable using the full early retirement reduction under section 352.116,
subdivision 1, paragraph (a), to age 55 and one-half of the early retirement
reduction from age 55 to the age payment begins.
(c) If the employee was
under age 55 and has credit for at least three years of allowable service
credit on the date of death if the employee was employed before July 1,
2010, or for at least five years of allowable service if the employee was
employed after June 30, 2010, but did not yet qualify for retirement, the
surviving spouse may elect to receive a 100 percent joint and survivor annuity
based on the age of the employee and surviving spouse at the time of
death. The annuity is payable using the
full early retirement reduction under section 352.116, subdivision 1 or 1a, to
age 55 and one-half of the early retirement reduction from age 55 to the age
payment begins.
(d) The surviving spouse
eligible for benefits under paragraph (a) may apply for the annuity at any time
after the date on which the employee or former employee would have attained the
required age for retirement based on the allowable service earned. The surviving spouse eligible for surviving
spouse benefits under paragraph (b) or (c) may apply for the annuity at any
time after the employee's death. The annuity
must be computed under sections
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10635
352.115,
subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 1a, and 3. Sections 352.22, subdivision 3, and 352.72,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision. The annuity must
cease with the last payment received by the surviving spouse in the lifetime of
the surviving spouse, or upon expiration of a term certain benefit payment to a
surviving spouse under subdivision 2a.
An amount equal to the excess, if any, of the accumulated contributions
credited to the account of the deceased employee in excess of the total of the
benefits paid and payable to the surviving spouse must be paid to the deceased
employee's or former employee's last designated beneficiary or, if none, as
specified under subdivision 1.
(e) Any
employee or former employee may request in writing, with the signed consent of
the spouse, that this subdivision not apply and that payment be made only to a
designated beneficiary as otherwise provided by this chapter.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2008, section 352.22,
subdivision 2, is amended to read:
Subd. 2. Amount
of refund. Except as provided in
subdivision 3, the refund payable to a person who ceased to be a state employee
by reason of a termination of state service is an amount equal to employee
accumulated contributions plus interest at the rate of six percent per year
compounded daily from the date that the contribution was made until June 30,
2011, or until the date on which the refund is paid, whichever is
earlier, and at the rate of four percent per year compounded daily from the
date that the contribution was made or from July 1, 2011, whichever is later,
until the date on which the refund is paid.
Included with the refund is any interest paid as part of repayment of a
past refund, plus interest thereon from the date of repayment.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2008, section 352.22,
subdivision 3, is amended to read:
Subd. 3. Deferred
annuity. (a) An employee who has at
least three years of allowable service if employed before July 1, 2010, or
who has at least five years of allowable service if employed after June 30,
2010, when termination occurs may elect to leave the accumulated
contributions in the fund and thereby be entitled to a deferred retirement
annuity. The annuity must be computed
under the law in effect when state service terminated, on the basis of the
allowable service credited to the person before the termination of service.
(b) An
employee on layoff or on leave of absence without pay, except a leave of
absence for health reasons, and who does not return to state service must have
an annuity, deferred annuity, or other benefit to which the employee may become
entitled computed under the law in effect on the employee's last working day.
(c) No
application for a deferred annuity may be made more than 60 days before the
time the former employee reaches the required age for entitlement to the
payment of the annuity. The deferred
annuity begins to accrue no earlier than 60 days before the date the
application is filed in the office of the system, but not (1) before the date
on which the employee reaches the required age for entitlement to the annuity
nor (2) before the day following the termination of state service in a position
which is not covered by the retirement system.
(d)
Application for the accumulated contributions left on deposit with the fund may
be made at any time following the date of the termination of service.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10636
Sec. 7. Minnesota Statutes 2008, section 352.72,
subdivision 1, is amended to read:
Subdivision
1. Entitlement
to annuity. (a) Any person who has
been an employee covered by a retirement system listed in paragraph (b) is
entitled when qualified to an annuity from each fund if total allowable service
in all funds or in any two of these funds totals three or more years if
employed before July 1, 2010, or totals five or more years if employed after
June 30, 2010.
(b) This
section applies to the Minnesota State Retirement System, the Public Employees
Retirement Association including the Public Employees Retirement Association
police and fire fund, the Teachers Retirement Association, the State Patrol
Retirement Association, or any other public employee retirement system in the
state with a similar provision, except as noted in paragraph (c).
(c) This
section does not apply to other funds providing benefits for police officers or
firefighters.
(d) No
portion of the allowable service upon which the retirement annuity from one
fund is based shall be again used in the computation for benefits from another
fund. No refund may have been taken from
any one of these funds since service entitling the employee to coverage under
the system or the employee's membership in any of the associations last
terminated. The annuity from each fund
must be determined by the appropriate provisions of the law except that the
requirement that a person must have at least three a specific number
of years of allowable service in the respective system or
association does not apply for the purposes of this section if the combined
service in two or more of these funds equals three or more years at
least the longest period of allowable service of any of the applicable
retirement plans.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2008, section 352.72,
subdivision 2, is amended to read:
Subd. 2. Computation
of deferred annuity. (a) The deferred
annuity, if any, accruing under subdivision 1, or section 352.22, subdivision
3, must be computed as provided in section 352.22, subdivision 3, on the basis
of allowable service before termination of state service and augmented as
provided herein. The required reserves
applicable to a deferred annuity or to an annuity for which a former employee
was eligible but had not applied or to any deferred segment of an annuity must
be determined as of the date the benefit begins to accrue and augmented by interest
compounded annually from the first day of the month following the month in
which the employee ceased to be a state employee, or July 1, 1971, whichever is
later, to the first day of the month in which the annuity begins to accrue. The rates of interest used for this purpose
must be five percent compounded annually until January 1, 1981, and three
percent compounded annually thereafter until January 1 of the year following
the year in which the former employee attains age 55 or until January 1,
2012, whichever is earlier, and from that date the January 1 next
following the attainment of age 55 to the effective date of retirement
or until January 1, 2012, whichever is earlier, the rate is five
percent compounded annually if the employee became an employee before July 1,
2006, and at 2.5 percent compounded annually until January 1, 2012, if
the employee becomes an employee after June 30, 2006, and two percent
compounded annually after December 31, 2011, irrespective of when the employee
became a state employee. If a person
has more than one period of uninterrupted service, the required reserves
related to each period must be augmented by interest under this
subdivision. The sum of the augmented
required reserves so determined is the present value of the annuity. "Uninterrupted service" for the
purpose of this subdivision means periods of covered employment during which
the employee has not been separated from state service for more than two
years. If a person repays a refund, the
service restored by the repayment must be considered continuous with the next
period of service for which the employee has credit with this system. The formula percentages used for each period
of uninterrupted service must be those applicable to a new employee. The mortality table and interest assumption
used to compute the annuity must be those in effect when the employee files
application for annuity. This section
does not reduce the annuity otherwise payable under this chapter.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10637
(b) The retirement
annuity or disability benefit of, or the survivor benefit payable on behalf of,
a former state employee who terminated service before July 1, 1997, which is
not first payable until after June 30, 1997, must be increased on an actuarial
equivalent basis to reflect the change in the postretirement interest rate
actuarial assumption under section 356.215, subdivision 8, from five percent to
six percent under a calculation procedure and the tables adopted by the board
and approved by the actuary retained under section 356.214.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2009 Supplement, section
352.75, subdivision 4, is amended to read:
Subd. 4. Existing
deferred retirees. Any former member
of the former Metropolitan Transit Commission-Transit Operating Division
employees retirement fund is entitled to a retirement annuity from the
Minnesota State Retirement System if the employee:
(1) is not
an active employee of the Transit Operating Division of the former Metropolitan
Transit Commission on July 1, 1978; (2) has at least ten years of active
continuous service with the Transit Operating Division of the former
Metropolitan Transit Commission as defined by the former Metropolitan Transit
Commission-Transit Operating Division employees retirement plan document in
effect on December 31, 1977; (3) has not received a refund of contributions;
(4) has not retired or begun receiving an annuity or benefit from the former
Metropolitan Transit Commission-Transit Operating Division employees retirement
fund; (5) is at least 55 years old; and (6) submits a valid application for a
retirement annuity to the executive director of the Minnesota State Retirement
System.
The person
is entitled to a retirement annuity in an amount equal to the normal old age
retirement allowance calculated under the former Metropolitan Transit
Commission-Transit Operating Division employees retirement fund plan document
in effect on December 31, 1977, subject to an early retirement reduction or
adjustment in amount on account of retirement before the normal retirement age
specified in that former Metropolitan Transit Commission-Transit Operating
Division employees retirement fund plan document.
The deferred
retirement annuity of any person to whom this subdivision applies must be
augmented. The required reserves
applicable to the deferred retirement annuity, determined as of the date the
allowance begins to accrue using an appropriate mortality table and an interest
assumption of five percent, must be augmented by interest at the rate of five
percent per year compounded annually from January 1, 1978, to January 1, 1981, and
three percent per year compounded annually from January 1, 1981, until the
date that the annuity begins to accrue or June 30, 2011, whichever is earlier,
and two percent after June 30, 2011, to the first day of the month in which
the annuity begins to accrue. After the
commencement of the retirement annuity, the annuity is eligible for
postretirement adjustments under section 356.415. On applying for a retirement annuity under
this subdivision, the person is entitled to elect a joint and survivor optional
annuity under section 352.116, subdivision 3.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2008, section 352.93,
subdivision 1, is amended to read:
Subdivision
1. Basis
of annuity; when to apply. After
separation from state service, an employee covered under section 352.91 who has
reached age 55 years and has credit for at least three years of covered
correctional service or a combination of covered correctional service and
general state employees state retirement plan allowable service
if first employed as a state employee before July 1, 2010, or has credit for
at least ten years of covered correctional service or a combination of covered
correctional service and general state employees retirement plan allowable
service if first employed as a state employee after June 30, 2010, is
entitled upon application to a retirement annuity under this section, based
only on covered correctional employees' service. Application may be made no earlier than 60
days before the date the employee is eligible to retire by reason of both age
and service requirements.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10638
Sec. 11. Minnesota Statutes 2008, section 352.93,
subdivision 2a, is amended to read:
Subd. 2a. Early
retirement. Any covered correctional
employee who becomes at least 50 years old and who has at least three years of
allowable service if first employed as a correctional state employee before
July 1, 2010, or has credit for at least ten years of allowable service if
first employed as a correctional state employee after June 30, 2010, is
entitled upon application to a reduced retirement annuity equal to the annuity
calculated under subdivision 2, reduced by two-tenths of one percent for each
month that the correctional employee is under age 55 at the time of retirement
if first employed as a correctional state employee before July 1, 2010, and if
retired before July 1, 2015, or reduced by 0.417 percent for each month that
the correctional employee is under age 55 at the time of retirement if first
employed as a correctional state employee after June 30, 2010, or if first
employed as a correctional state employee before July 1, 2010, and if retired
after June 30, 2015.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2008, section 352.93,
subdivision 3a, is amended to read:
Subd. 3a. Optional
annuities. The board may establish
optional annuity forms to pay a higher amount from the date of retirement until
an employee is first eligible to draw Social Security benefits, reaches age
65, or up to reaches the age the employee is eligible to
receive unreduced Social Security benefits, at which time the monthly benefits
must be reduced. The optional annuity
forms must be actuarially equivalent to the normal single life annuity form
provided in subdivision 2. The optional
annuity forms must be approved certified as actuarially equivalent by
the actuary retained under section 356.214.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2008, section 352.931,
subdivision 1, is amended to read:
Subdivision
1. Surviving
spouse benefit. (a) If the
correctional employee was at least age 50, has credit for at least three years
of allowable service if first employed as a correctional state employee
before July 1, 2010, or has credit for at least ten years of allowable service
if first employed as a correctional state employee after
June 30, 2010, and dies before an annuity or disability benefit
has become payable, notwithstanding any designation of beneficiary to the
contrary, the surviving spouse of the employee may elect to receive, in lieu of
the refund under section 352.12, subdivision 1, an annuity for life equal to
the joint and 100 percent survivor annuity which the employee could have
qualified for had the employee terminated service on the date of death. The election may be made at any time after
the date of death of the employee. The
surviving spouse benefit begins to accrue as of the first of the month next
following the date on which the application for the benefit was filed.
(b) If the
employee was under age 50, dies, and had credit for at least three years of
allowable service credit on the date of death if first employed as a
correctional state employee before July 1, 2010, or had credit for at least ten
years of allowable service on the date of death if first employed as a
correctional state employee after June 30, 2010, but did not yet qualify
for retirement, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the employee and surviving spouse at
the time of death. The annuity is
payable using the early retirement reduction under section 352.93, subdivision
2a, to age 50, and one-half of the early retirement reduction from age 50 to
the age payment begins. The surviving
spouse eligible for surviving spouse benefits under this paragraph may apply
for the annuity at any time after the employee's death. Sections 352.22, subdivision 3, and 352.72,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision.
(c) The
annuity must cease with the last payment received by the surviving spouse in
the lifetime of the surviving spouse.
Any employee may request in writing, with the signed consent of the
spouse, that this subdivision not apply and that payment be made only to a
designated beneficiary as otherwise provided by this chapter.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10639
Sec. 14. Minnesota Statutes 2009 Supplement, section
352.95, subdivision 2, is amended to read:
Subd. 2. Regular
disability; computation of benefit. A
covered correctional employee who was hired before July 1, 2009, after
rendering at least one year of covered correctional service, or a covered
correctional employee who was first hired after June 30, 2009, after rendering
at least three years of covered correctional plan service if first employed
as a correctional state employee before July 1, 2010, or after rendering at
least ten years of covered correctional plan service if first employed as a
correctional state employee after June 30, 2010, and who is determined to
have a regular disability, physical or psychological, as defined under section
352.01, subdivision 17c, is entitled to a regular disability benefit. The regular disability benefit must be based
on covered correctional service only.
The regular disability benefit must be computed as provided in section
352.93, subdivisions 1 and 2. The
regular disability benefit of a covered correctional employee who was first
hired before July 1, 2009, and who is determined to have a regular disability,
physical or psychological, under this subdivision must be computed as though
the employee had at least 15 years of covered correctional service.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 15. Minnesota Statutes 2008, section 352B.02, as
amended by Laws 2009, chapter 101, article 2, section 109; and Laws 2009,
chapter 169, article 1, section 23; article 2, section 16; and article 4,
sections 3 and 4, is amended to read:
352B.02 STATE PATROL RETIREMENT FUND.
Subdivision 1. Fund
created; membership. A State Patrol
retirement fund is established. Its
membership consists of all persons defined in section 352B.011, subdivision
10.
Subd. 1a. Member
contributions. (a) The member
contribution is 10.40 percent the following percentage of the
member's salary.:
(1) before the first day of the first pay period
beginning after July 1, 2011 10.40
percent
(2) on or after the first day of the first pay period
beginning after July 1, 2011 12.40
percent
(b) These contributions must
be made by deduction from salary as provided in section 352.04, subdivision 4.
Subd. 1b. Salary
deductions. Member contribution
amounts must be deducted each pay period by the department head, who shall have
the total amount of the deductions paid to the commissioner of management and
budget for deposit in the State Patrol retirement fund, and have a detailed
report of all deductions made each pay period to the executive director of the
Minnesota State Retirement System.
Subd. 1c. Employer
contributions. (a) In addition to
member contributions, department heads shall pay a sum equal to 15.60 percent
the specified percentage of the salary upon which deductions were made,
which constitutes the employer contribution to the fund. as follows:
(1) before the first day of the first pay period
beginning after July 1, 2011 15.60
percent
(2) on or after the first day of the first pay period
beginning after July 1, 2011 18.60
percent
(b) Department contributions
must be paid out of money appropriated to departments for this purpose.
Subd. 1d. Fund
revenue and expenses. The amounts
provided for in this section must be credited to the State Patrol retirement
fund. All money received must be
deposited by the commissioner of management and budget in the State Patrol
retirement fund. The fund must be used
to pay the administrative expenses of the retirement fund, and the benefits and
annuities provided in this chapter.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10640
Subd. 1e. Audit;
actuarial valuation. (a) The
legislative auditor shall audit the fund.
(b) Any actuarial valuation of the
fund required under section 356.215 must be prepared by the actuary retained under
section 356.214.
(c) Any approved actuary retained by
the executive director under section 352.03, subdivision 6, may perform
actuarial valuations and experience studies to supplement those performed by
the actuary retained under section 356.214.
Any supplemental actuarial valuation or experience studies must be filed
with the executive director of the Legislative Commission on Pensions and
Retirement.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 16.
Minnesota Statutes 2008, section 352B.08, subdivision 1, is amended to
read:
Subdivision 1. Eligibility; when to apply; accrual. (a) Every member who is credited
with three or more years of allowable service if first employed before July
1, 2010, or with at least five years of allowable service if first employed
after June 30, 2010, is entitled to separate from state service and upon
becoming 50 years old, is entitled to receive a life annuity, upon separation
from state service.
(b) Members shall must apply
for an annuity in a form and manner prescribed by the executive director.
(c) No application may be made more
than 90 days before the date the member is eligible to retire by reason of both
age and service requirements.
(d) An annuity begins to accrue no earlier
than 180 days before the date the application is filed with the executive
director.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 17.
Minnesota Statutes 2008, section 352B.08, subdivision 2a, is amended to
read:
Subd. 2a. Early retirement. Any member who has become at least 50
years old and who has at least three years of allowable service if first
employed before July 1, 2010, or who has at least five years of allowable
service if first employed after June 30, 2010, is entitled upon application
to a reduced retirement annuity equal to the annuity calculated under
subdivision 2, reduced by one-tenth of one percent for each month that the
member is under age 55 at the time of retirement if first employed before
July 1, 2010, or reduced by two-tenths of one percent for each month that the
member is under age 55 at the time of retirement if first employed after June
30, 2010.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 18.
Minnesota Statutes 2008, section 352B.11, subdivision 2b, is amended to
read:
Subd. 2b. Surviving spouse benefit eligibility. (a) If an active member with three or
more years of allowable service if first employed before July 1, 2010, or
with at least five years of allowable service if first employed after June 30,
2010, dies before attaining age 55, the surviving spouse is entitled to the
benefit specified in subdivision 2c, paragraph (b).
(b) If an active member with less than three years of
allowable service if first employed before July 1, 2010, or with fewer than
five years of allowable service if first employed after June 30, 2010, dies
at any age, the surviving spouse is entitled to receive the benefit specified
in subdivision 2c, paragraph (c).
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10641
(c) If an active
member with three or more years of allowable service if first employed
before July 1, 2010, or with at least five years of allowable service if first
employed after June 30, 2010, dies on or after attaining exact age 55, the
surviving spouse is entitled to receive the benefits specified in subdivision
2c, paragraph (d).
(d) If a disabilitant dies while receiving a
disability benefit under section 352B.10 or before the benefit under that
section commenced, and an optional annuity was not elected under section
352B.10, subdivision 5, the surviving spouse is entitled to receive the benefit
specified in subdivision 2c, paragraph (b).
(e) If a former member with three or more years of
allowable service if first employed before July 1, 2010, or with at least
five years of allowable service if first employed after June 30, 2010, who
terminated from service and has not received a refund or commenced receipt of
any other benefit provided by this chapter, dies, the surviving spouse is
entitled to receive the benefit specified in subdivision 2c, paragraph (e).
(f) If a former member with less than three years of
allowable service if first employed before July 1, 2010, or with fewer than
five years of allowable service if first employed after June 30, 2010, who
terminated from service and has not received a refund or commenced receipt of
any other benefit, if applicable, provided by this chapter, dies, the surviving
spouse is entitled to receive the refund specified in subdivision 2c, paragraph
(f).
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 19.
Minnesota Statutes 2008, section 352B.30, subdivision 1, is amended to
read:
Subdivision 1. Entitlement to annuity. Any person who has been an employee
covered by the Minnesota State Retirement System, or a member of the Public
Employees Retirement Association including the Public Employees Retirement
Association Police and Fire Fund, or the Teachers Retirement Association, or
the State Patrol retirement fund, or any other public employee retirement
system in Minnesota having a like provision but excluding all other funds
providing benefits for police or firefighters is entitled when qualified to an
annuity from each fund if total allowable service in all funds or in any two of
these funds totals three or more the number of years of
allowable service required by the applicable retirement plan with the longest
vesting period for the person. No
part of the allowable service upon which the retirement annuity from one fund
is based may again be used in the computation for benefits from another
fund. The member must not have taken a
refund from any one of these funds since service entitling the member to
coverage under the system or membership in any of the associations last
terminated. The annuity from each fund
must be determined by the appropriate law except that the requirement that a
person must have at least three a specific number of years
allowable service in the respective system or association does not apply for
the purposes of this section if the combined service in two or more of these
funds equals three or more the number of years of allowable
service required by the applicable retirement plan with the longest vesting
period for the person.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 20.
Minnesota Statutes 2008, section 352B.30, subdivision 2, is amended to
read:
Subd. 2. Computation of deferred annuity. Deferred annuities must be computed
according to this chapter on the basis of allowable service before termination
of service and augmented as provided in this chapter. The required reserves applicable to a
deferred annuity must be augmented by interest compounded annually from the
first day of the month following the month in which the member terminated service,
or July 1, 1971, whichever is later, to the first day of the month in which the
annuity begins to accrue. The rates of
interest used for this purpose shall must be five percent per
year compounded annually until January 1, 1981, and after that date
three percent per year compounded annually after January 1, 1981, until
January 1, 2012, 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,
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10642
and two percent
per year compounded annually after December 31, 2011, irrespective of when the
employee was first employed. The mortality table and
interest assumption used to compute the annuity shall must be
those in effect when the member files application for annuity.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 21. Minnesota Statutes 2008, section 352F.07, is
amended to read:
352F.07 EFFECT ON REFUND.
Notwithstanding any
provision of chapter 352 to the contrary, terminated hospital employees may
receive a refund of employee accumulated contributions plus interest at the
rate of six percent per year compounded annually in accordance with Minnesota
Statutes 1994, section 352.22, subdivision 2, at any time after the
transfer of employment to Fairview, University of Minnesota Physicians, or
University Affiliated Family Physicians.
If a terminated hospital employee has received a refund from a pension
plan enumerated in section 356.30, subdivision 3, the person may not repay
that refund unless the person again becomes a member of one of those enumerated
plans and complies with section 356.30, subdivision 2.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 22. Minnesota Statutes 2008, section 353.01, is
amended by adding a subdivision to read:
Subd. 47. Vesting. (a) "Vesting" means
obtaining a nonforfeitable entitlement to an annuity or benefit from a
retirement plan administered by the Public Employees Retirement Association by
having credit for sufficient allowable service under paragraph (b) or (c),
whichever applies.
(b) For purposes of
qualifying for an annuity or benefit as a basic or coordinated plan member of
the general employees retirement plan of the Public Employees Retirement
Association:
(1) a member who first
became a public employee before July 1, 2010, is vested when the person has
accrued credit for not less than three years of allowable service as defined
under subdivision 16; and
(2) a member who first
becomes a public employee after June 30, 2010, is vested when the person has
accrued credit for not less than five years of allowable service as defined
under subdivision 16.
(c) For purposes of
qualifying for an annuity or benefit as a member of the police and fire plan or
a member of the local government correctional employees retirement plan:
(1) a member who first
became a public employee before July 1, 2010, is vested when the person has
accrued credit for not less than three years of allowable service as defined
under subdivision 16; and
(2) a member who first
becomes a public employee after June 30, 2010, is vested at the following
percentages when the person has accrued credited allowable service as defined
under subdivision 16, as follows:
(i) 50 percent after five
years;
(ii) 60 percent after six
years;
(iii) 70 percent after seven
years;
(iv) 80 percent after eight
years;
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10643
(v) 90 percent
after nine years; and
(vi) 100 percent after ten
years.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 23. Minnesota Statutes 2009 Supplement, section
353.27, subdivision 2, is amended to read:
Subd. 2. Employee
contribution. (a) For a basic
member, the employee contribution is 9.10 percent of salary. For a coordinated member, the employee
contribution is six percent the following percentage of salary
plus any contribution rate adjustment under subdivision 3b.:
Effective before January 1, 2011 6.00
Effective after December 31, 2010 6.25
(b) These contributions must
be made by deduction from salary as defined in section 353.01, subdivision 10,
in the manner provided in subdivision 4.
If any portion of a member's salary is paid from other than public
funds, the member's employee contribution must be based on the total salary
received by the member from all sources.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 24. Minnesota Statutes 2009 Supplement, section
353.27, subdivision 3, is amended to read:
Subd. 3. Employer
contribution. (a) For a basic
member, the employer contribution is 9.10 percent of salary. For a coordinated member, the employer
contribution is six percent the following percentage of salary
plus any contribution rate adjustment under subdivision 3b.:
Effective before January 1, 2011 6.00
Effective after December 31, 2010 6.25
(b) This contribution must
be made from funds available to the employing subdivision by the means and in
the manner provided in section 353.28.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 25. Minnesota Statutes 2008, section 353.27,
subdivision 3b, is amended to read:
Subd. 3b. Change
in employee and employer contributions in certain instances. (a) For purposes of this section,:
(1) a contribution sufficiency
exists if the total of the employee contribution under subdivision 2, the
employer contribution under subdivision 3, the additional employer contribution
under subdivision 3a, and any additional contribution previously imposed under
this subdivision exceeds the total of the normal cost, the administrative
expenses, and the amortization contribution of the retirement plan as reported
in the most recent actuarial valuation of the retirement plan prepared by the
actuary retained under section 356.214 and prepared under section 356.215 and
the standards for actuarial work of the Legislative Commission on Pensions and
Retirement. For purposes of this
section,; and
(2) a contribution deficiency
exists if the total of the employee contributions under subdivision 2, the
employer contributions under subdivision 3, the additional employer
contribution under subdivision 3a, and any additional contribution previously
imposed under this subdivision is less than the total of the normal cost, the
administrative
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10644
expenses, and the
amortization contribution of the retirement plan as reported in the most recent
actuarial valuation of the retirement plan prepared by the actuary retained
under section 356.214 and prepared under section 356.215 and the standards for
actuarial work of the Legislative Commission on Pensions and Retirement.
(b) Employee and employer contributions under
subdivisions 2 and 3 must be adjusted:
(1) if, on or after July 1, 2010, the regular
actuarial valuations valuation of the general employees
retirement plan of the Public Employees Retirement Association under section
356.215 indicate indicates that there is a contribution
sufficiency under paragraph (a) equal to or greater than 0.5 one
percent of covered payroll and that the sufficiency has existed for at
least two consecutive years, the coordinated program employee and employer
contribution rates must be decreased as determined under paragraph (c) to a
level such that the sufficiency equals is no more greater
than 0.25 one percent of covered payroll based on the most
recent actuarial valuation; or
(2) if, on or after July 1, 2010, the regular
actuarial valuations valuation of the general employees
retirement plan of the Public Employees Retirement Association under section
356.215 indicate indicates that there is a contribution deficiency
equal to or greater than 0.5 percent of covered payroll and that the
deficiency has existed for at least two consecutive years, the
coordinated program employee and employer contribution rates must be increased
as determined under paragraph (c) (d) to a level such that no
deficiency exists based on the most recent actuarial valuation.
(c) The contribution rate increase or decrease must
be determined by the executive director of the Public Employees Retirement
Association, must be reported to the chair and the executive director of the
Legislative Commission on Pensions and Retirement on or before the next
February 1, and, if the Legislative Commission on Pensions and Retirement does
not recommend against the rate change or does not recommend a modification in
the rate change, is effective on the next July 1 following the determination by
the executive director that a contribution deficiency or sufficiency has
existed for two consecutive fiscal years based on the most recent actuarial valuations
under section 356.215. If the
actuarially required contribution exceeds or is less than the total
support provided by the combined employee and employer contribution rates under
subdivisions 2, 3, and 3a, by more than 0.5 one percent of
covered payroll, the coordinated program employee and employer contribution
rates under subdivisions 2 and 3 must be adjusted decreased
incrementally over one or more years by no more than 0.25 percent of pay
each for employee and employer matching contribution rates to a level such
that there remains a contribution sufficiency of no more than 0.25 at
least one percent of covered payroll.
No contribution rate decrease may be made until at least two years
have elapsed since any adjustment under this subdivision has been fully
implemented.
(d) No If the actuarially required
contribution exceeds the total support provided by the combined employee and
employer contribution rates under subdivisions 2, 3, and 3a, the employee and
matching employer contribution rates must be increased equally to eliminate
that contribution deficiency. If the
contribution deficiency is:
(1) less than two percent, the incremental adjustment
increase may exceed be up to 0.25 percent for either
the coordinated program employee and matching employer
contribution rates per year in which any adjustment is implemented. A contribution rate adjustment under this
subdivision must not be made until at least two years have passed since fully
implementing a previous adjustment under this subdivision.;
(2) greater than 1.99 percent and less than 4.01
percent, the incremental increase may be up to 0.5 percent for the employee and
matching employer contribution rates; or
(3) greater than four percent, the incremental increase
may be up to 0.75 percent for the employee and matching employer contribution.
(e) Any recommended adjustment to the contribution
rates must be reported to the chair and the executive director of the
Legislative Commission on Pensions and Retirement by January 15 following
receipt of the most recent annual actuarial valuation prepared under section
356.215. If the Legislative Commission
on Pensions and
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10645
Retirement does
not recommend against the rate change or does not recommend a modification in
the rate change, the recommended adjustment becomes effective on the first day
of the first full payroll period in the fiscal year following receipt of the
most recent actuarial valuation that gave rise to the adjustment.
(f) A contribution sufficiency of up to one percent of
covered payroll must be held in reserve to be used to offset any future
actuarially required contributions that are more than the total combined
employee and employer contributions under subdivisions 2, 3, and 3a.
(g) Before any reduction in contributions to eliminate
a sufficiency in excess of one percent of covered pay may be recommended, the
executive director must review any need for a change in actuarial assumptions,
as recommended by the actuary retained under section 356.214 in the most recent
experience study of the general employees retirement plan prepared under
section 356.215 and the standards for actuarial work promulgated by the
Legislative Commission on Pensions and Retirement that may result in an
increase in the actuarially required contribution and must report to the Legislative
Commission on Pensions and Retirement any recommendation by the board to use
the sufficiency exceeding one percent of covered payroll to offset the impact
of an actuarial assumption change recommended by the actuary retained under
section 356.214, subdivision 1, and reviewed by the actuary retained by the
commission under section 356.214, subdivision 4.
(h) No contribution sufficiency in excess of one
percent of covered pay may be proposed to be used to increase benefits, and no
benefit increase may be proposed that would initiate an automatic adjustment to
increase contributions under this subdivision.
Any proposed benefit improvement must include a recommendation, prepared
by the actuary retained under section 356.214, subdivision 1, and reviewed by
the actuary retained by the Legislative Commission on Pensions and Retirement
as provided under section 356.214, subdivision 4, on how the benefit
modification will be funded.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 26.
Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to
read:
Subdivision 1. Age and allowable service
requirements. Upon termination of
membership, a person who has attained normal retirement age and who received
credit for not less than three years of allowable service is vested
under section 353.01, subdivision 47, is entitled upon application to a
retirement annuity. The retirement
annuity is known as the "normal" retirement annuity.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 27.
Minnesota Statutes 2008, section 353.30, subdivision 1c, is amended to
read:
Subd. 1c. Pre-July 1, 1989, members: early retirement. 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, 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 vested under section
353.01, subdivision 47, is entitled, upon application, to a
retirement annuity in an amount equal to the normal annuity provided in section
353.29, 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.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10646
Sec. 28. Minnesota Statutes 2008, section 353.32,
subdivision 1, is amended to read:
Subdivision 1. Before retirement. If a member or former member who
terminated public service dies before retirement or before receiving any
retirement annuity and no other payment of any kind is or may become payable to
any person, a refund shall be paid is payable to the designated
beneficiary or, if there be none, to the surviving spouse, or, if none, to the
legal representative of the decedent's estate.
Such The refund shall must be in an amount
equal to accumulated deductions plus annual compound interest thereon at
the rate of six percent per annum compounded annually specified in
section 353.34, subdivision 2, and less the sum of any disability or
survivor benefits, if any, that may have been paid by the fund; provided that a
survivor who has a right to benefits pursuant to under section
353.31 may waive such benefits in writing, except such benefits for a dependent
child under the age of 18 years may only be waived pursuant to under an
order of the district court.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 29.
Minnesota Statutes 2008, 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 is vested
under section 353.01, subdivision 47, and who 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 a 100 percent joint
and survivor annuity computed consistent with section 353.30, subdivision 1a,
1c, or 5, whichever is applicable.
(b) If a member 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 computed using section 353.30, subdivision 1b, except that the
early retirement reduction under 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 a member who was under age 55 and has credit
for at least three years of allowable service who is vested under
section 353.01, subdivision 47, dies, but did not qualify for retirement on
the date of death, the surviving spouse may elect to receive a 100 percent
joint and survivor annuity computed using section 353.30, subdivision 1c or 5,
as applicable, except that the early retirement reduction 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.
(f) Sections 353.34, subdivision 3, and 353.71,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10647
(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.
(h) A member may specify in writing, with the signed
consent of the spouse, 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 the day
following final enactment.
Sec. 30.
Minnesota Statutes 2009 Supplement, section 353.33, subdivision 1, is
amended to read:
Subdivision 1. Age, service, and salary requirements. (a) A coordinated or basic member
who has at least three years of allowable service is vested under
section 353.01, subdivision 47, and who becomes totally and
permanently disabled before normal retirement age, upon application as defined
under section 353.031, is entitled to a disability benefit in an amount
determined under subdivision 3.
(b) If the disabled person's public service has terminated
at any time, at least two of the required three years of allowable
service required to be vested under section 353.01, subdivision 47, must
have been rendered after last becoming an active member.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 31.
Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to
read:
Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to either
a refund of accumulated employee deductions under subdivision 2, or to a
deferred annuity under subdivision 3.
Application for a refund may not be made before the date of termination
of public service. Except as specified
in paragraph (b), a refund must be paid within 120 days following receipt of
the application unless the applicant has again become a public employee
required to be covered by the association.
(b) If an individual was placed on layoff under section
353.01, subdivision 12 or 12c, a refund is not payable before termination of
service under section 353.01, subdivision 11a.
(c) An individual who terminates public service covered
by the Public Employees Retirement Association general employees retirement
plan, the Public Employees Retirement Association police and fire retirement
plan, or the public employees local government corrections correctional
service retirement plan, and who is employed by a different employer and
who becomes an active member covered by one of the other two plans, may receive
a refund of employee contributions plus six percent annual compound interest
compounded annually from the plan from which the member terminated
service at the applicable rate specified in subdivision 2.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10648
Sec. 32. Minnesota Statutes 2008, section 353.34,
subdivision 2, is amended to read:
Subd. 2. Refund with interest. (a) Except as provided in
subdivision 1, any person who ceases to be a public employee shall is
entitled to receive a refund in an amount equal to accumulated deductions
with annual compound interest to the first day of the month in which the
refund is processed at the rate of six percent compounded annually based on
fiscal year balances.
(b) For a person who ceases to be a public employee
before July 1, 2011, the refund interest is at the rate of six percent to June
30, 2011, and at the rate of four percent after June 30, 2011. For a person who ceases to be a public
employee after July 1, 2011, the refund interest is at the rate of four
percent.
(c) If a person repays a refund and subsequently applies
for another refund, the repayment amount, including interest, is added to the
fiscal year balance in which the repayment was made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 33.
Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to
read:
Subd. 3. Deferred annuity; eligibility;
computation. (a) A member with
at least three years of allowable service who is vested under section
353.01, subdivision 47, 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 1a, 1b, 1c, or 5.
(b) The deferred annuity must be computed under section
353.29, 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.
(c) 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 following
final enactment.
Sec. 34.
Minnesota Statutes 2009 Supplement, section 353.65, subdivision 2, is
amended to read:
Subd. 2. Employee contribution. The employee contribution is 9.4 percent
of the salary of the member in calendar year 2010 and is 9.6 percent of the
salary of the member in each calendar year after 2010. This contribution must be made by deduction
from salary in the manner provided in subdivision 4. Where any portion of a member's salary is
paid from other than public funds, the member's employee contribution is based
on the total salary received from all sources.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 35.
Minnesota Statutes 2009 Supplement, section 353.65, subdivision 3, is
amended to read:
Subd. 3. Employer contribution. The employer contribution is 14.1 percent
of the salary of the member in calendar year 2010 and is 14.4 percent of the
salary of the member in each calendar year after 2010. This contribution must be made from funds
available to the employing subdivision by the means and in the manner provided
in section 353.28.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10649
Sec. 36. Minnesota Statutes 2008, section 353.651,
subdivision 1, is amended to read:
Subdivision 1. Age and allowable service
requirements. Upon separation from
public service, any police officer or firefighter member who has attained the
age of at least 55 years and who received credit for not less than three
years of allowable service is vested under section 353.01, subdivision
47, is entitled upon application to a retirement annuity. Such retirement annuity is, known
as the "normal" retirement annuity.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 37.
Minnesota Statutes 2008, 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 and who is vested under section
353.01, subdivision 47, 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
and fire plan member not specified in paragraph (a), upon attaining at least 50
years 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 the day
following final enactment.
Sec. 38.
Minnesota Statutes 2008, section 353.657, subdivision 1, is amended to
read:
Subdivision 1. Generally.
(a) In the event that a member of the police and fire fund dies from
any cause before retirement or before becoming disabled and receiving
disability benefits, the association shall grant survivor benefits to a
surviving spouse, as defined in section 353.01, subdivision 20, and to a
dependent child or children, as defined in section 353.01, subdivision 15,
except that if the death is not a line of duty death, the member must have
accrued at least three years of credited service be vested under section
353.01, subdivision 47.
(b) Notwithstanding the definition of surviving
spouse, a former spouse of the member, if any, is entitled to a portion of the
monthly surviving spouse benefit 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 section 353.32, subdivision
1, if provided for in a marriage dissolution decree but not a monthly surviving
spouse benefit despite the terms of a marriage dissolution decree filed with
the association.
(c) The spouse and child or children are entitled to
monthly benefits as provided in subdivisions 2 to 4.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 39.
Minnesota Statutes 2008, section 353.657, subdivision 2a, is amended to
read:
Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member who has
attained the age of at least 50 years and has credit for not less than three
years allowable service either who is vested under section 353.01,
subdivision 47, or who has credit for at least 30 years of allowable
service, regardless of age attained, dies before the annuity or disability
benefit becomes payable, notwithstanding any designation of beneficiary to the
contrary, the surviving spouse may elect to receive a death while eligible
survivor benefit.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10650
(b) 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 death while
eligible survivor benefit 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 section 353.32, subdivision
1, if provided for in a marriage dissolution decree but not a death while
eligible survivor benefit despite the terms of a marriage dissolution decree
filed with the association.
(c) The benefit may be
elected instead of a refund with interest under section 353.32, subdivision 1,
or surviving spouse benefits otherwise payable under subdivisions 1 and 2. The benefit must be an annuity equal to the
100 percent joint and survivor annuity which the member could have qualified
for on the date of death, computed as provided in sections 353.651,
subdivisions 2 and 3, and 353.30, subdivision 3.
(d) The surviving spouse 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. Sections 353.34,
subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity payable
under this subdivision.
(e) No payment accrues
beyond the end of the month in which entitlement to such annuity has
terminated. An amount equal to the excess,
if any, of the accumulated contributions which were credited to the account of
the deceased employee over and above the total of the annuities paid and
payable to the surviving spouse must be paid to the deceased member's last
designated beneficiary or, if none, to the legal representative of the estate
of such deceased member.
(f) Any member may request
in writing, with the signed consent of the spouse, that this subdivision not
apply and that payment be made only to the designated beneficiary, as otherwise
provided by this chapter.
(g) For a member who is
employed as a full-time firefighter by the Department of Military Affairs of
the state of Minnesota, allowable service as a full-time state Military Affairs
Department firefighter credited by the Minnesota State Retirement System may be
used in meeting the minimum allowable service requirement of this subdivision.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 40. Minnesota Statutes 2008, section 353.71, subdivision
1, is amended to read:
Subdivision 1. Eligibility. Any person who has been a member of a
defined benefit retirement plan administered by the Public Employees
Retirement Association, or a retirement plan administered by the
Minnesota State Retirement System, or the Teachers Retirement Association, or
any other public retirement system in the state of Minnesota having a like
provision, except a fund retirement plan providing benefits for
police officers or firefighters governed by sections 69.77 or 69.771 to 69.776,
shall be is entitled, when qualified, to an annuity
from each fund retirement plan if the total allowable service in
all funds retirement plans or in any two of these funds retirement
plans totals three or more years the number of years of allowable
service required to receive a normal retirement annuity for that retirement
plan, provided that no portion of the allowable service upon which
the retirement annuity from one fund retirement plan is based is
again used in the computation for benefits from another fund retirement
plan and provided further that the person has not taken a refund from any
one of these funds retirement plans since the person's membership
in that association or system last terminated.
The annuity from each fund shall must be determined by the
appropriate provisions of the law except that the requirement that a person
must have at least three years a specific minimum period of
allowable service in the respective association or system shall does not
apply for the purposes of this section provided if the combined
service in two or more of these funds retirement plans equals three
or more the number of years of allowable service required to
receive a normal retirement annuity for that retirement plan.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10651
Sec. 41. Minnesota Statutes 2008, section 353.71,
subdivision 2, is amended to read:
Subd. 2. Deferred annuity computation;
augmentation. (a) The deferred
annuity accruing under subdivision 1, or under sections 353.34, subdivision 3,
and 353.68, subdivision 4, must be computed on the basis of allowable service
prior to the termination of public service and augmented as provided in this paragraph
subdivision. The required reserves
applicable to a deferred annuity, or to any deferred segment of an annuity must
be determined as of the first day of the month following the month in which the
former member ceased to be a public employee, or July 1, 1971, whichever is
later. These
(b) For a person who became a public employee before
July 1, 2006, whose period of deferral began after June 30, 1971, and who
terminated public employment before January 1, 2012, the required
reserves of the deferred annuity must be augmented at the following
applicable rate of or rates:
(1) five percent annually compounded
annually annual compound interest until January 1, 1981, and at
the rate of;
(2) three percent thereafter annual
compound interest after January 1, 1981, or until the earlier of
December 31, 2011, or after the date of the termination of public
service or the termination of membership, whichever is later, until January
1 of the year following the year in which the former member attains age 55 and;
(3) five percent annual compound interest from that
date to the effective date of retirement, the rate is five percent compounded
annually if the employee became an employee before July 1, 2006, and at 2.5
percent compounded annually if the employee becomes an January 1 of the
year following the year in which the former member attains age 55, or until
December 31, 2011, whichever is earlier; and
(4) one percent annual compound interest from January
1, 2012.
(c) For a person who became a public employee
after June 30, 2006, and who terminated public employment before January 1,
2012, the required reserves of the deferred annuity must be augmented at 2.5
percent annual compound interest from the date of termination of public service
or termination of membership, whichever is earlier, until December 31, 2011,
and one percent annual compound interest after December 31, 2011.
(d) For a person who terminates public employment after
December 31, 2011, the required reserves of the deferred annuity must not be
augmented.
(e) If a person has more than one period of uninterrupted
service, the required reserves related to each period must be augmented as
specified in this paragraph. The sum of
the augmented required reserves is the present value of the annuity. Uninterrupted service for the purpose of this
subdivision means periods of covered employment during which the employee has
not been separated from public service for more than two years. If a person repays a refund, the restored
service must be considered as continuous with the next period of service for
which the employee has credit with this association. This section must not reduce the annuity
otherwise payable under this chapter.
This paragraph applies to individuals who become deferred annuitants on
or after July 1, 1971. For a member who
became a deferred annuitant before July 1, 1971, the paragraph applies from
July 1, 1971, if the former active member applies for an annuity after July 1,
1973.
(b) (f) The retirement annuity or disability
benefit of, or the survivor benefit payable on behalf of, a former member who
terminated service before July 1, 1997, or the survivor benefit payable on
behalf of a basic or police and fire member who was receiving disability
benefits before July 1, 1997, which is first payable after
June 30, 1997, must be increased on an actuarial equivalent basis to
reflect the change in the postretirement interest rate actuarial assumption
under section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board and approved by the
actuary retained under section 356.214.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10652
Sec. 42. Minnesota Statutes 2008, section 353E.04,
subdivision 1, is amended to read:
Subdivision 1. Eligibility requirements. After termination of public employment,
an employee covered under section 353E.02 who has attained the age of at least
55 years and has credit for not less than three years of coverage who
is vested under section 353.01, subdivision 47, in the local government
correctional service plan is entitled, upon application, to a normal retirement
annuity. Instead of a normal retirement
annuity, a retiring employee may elect to receive the optional annuity provided
in section 353.30, subdivision 3.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 43.
Minnesota Statutes 2008, section 353E.04, subdivision 4, is amended to
read:
Subd. 4. Early retirement. An employee covered under section 353E.02
who has attained the age of at least 50 years and has credit for not less
than three years of coverage who is vested under section 353.01,
subdivision 47, in the local government correctional service plan is
entitled, upon application, to a reduced retirement annuity equal to the
annuity calculated under subdivision 3, reduced so that the reduced annuity is
the actuarial equivalent of the annuity that would be payable if the employee
deferred receipt of the annuity from the day the annuity begins to accrue until
age 55.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 44.
Minnesota Statutes 2008, section 353E.07, subdivision 1, is amended to
read:
Subdivision 1. Member at least age 50. If a member or former member of the local
government correctional service retirement plan who has attained the age of at
least 50 years and has credit for not less than three years of allowable service
who is vested under section 353.01, subdivision 47, dies before the
annuity or disability benefit has become payable, notwithstanding any
designation of beneficiary to the contrary, the surviving spouse may elect to
receive, in lieu of a refund with interest provided in section 353.32,
subdivision 1, a surviving spouse annuity equal to the 100 percent joint and
survivor annuity for which the member could have qualified had the member
terminated service on the date of death.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 45.
Minnesota Statutes 2008, section 353E.07, subdivision 2, is amended to
read:
Subd. 2. Member not yet age 50. If the member was under age 50, dies, and
had credit for not less than three years of allowable service was
vested under section 353.01, subdivision 47, on the date of death but did
not yet qualify for retirement, the surviving spouse may elect to receive a 100
percent joint and survivor annuity based on the age of the employee and the
surviving spouse at the time of death.
The annuity is payable using the early retirement reduction under
section 353E.04, subdivision 4, to age 50 and one-half the early retirement
reduction from age 50 to the age payment begins. Sections 353.34, subdivision 3, and 353.71,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 46.
Minnesota Statutes 2008, section 353F.03, is amended to read:
353F.03
VESTING RULE FOR CERTAIN EMPLOYEES.
Notwithstanding any provision of chapter 353 to the
contrary, a terminated medical facility or other public employing unit employee
is eligible to receive a retirement annuity under section 353.29 of the edition
of Minnesota Statutes published in the year before the year in which the
privatization occurred, without regard to the requirement for three years of
allowable service specified in section 353.01, subdivision 47.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10653
Sec. 47. Minnesota Statutes 2009 Supplement, section
354.42, subdivision 2, is amended to read:
Subd. 2. Employee
contribution. (a) For a basic
member, the employee contribution to the fund is 9.0 percent the
following percentage of the member's salary.:
before July 1, 2011 9.0
percent
from July 1, 2011, until June 30, 2012 9.5
percent
from July 1, 2012, until June 30, 2013 10.0
percent
from July 1, 2013, until June 30, 2014 10.5
percent
after June 30, 2014 11.0
percent
(b) For a coordinated member,
the employee contribution is 5.5 percent the following percentage of
the member's salary.:
before July 1, 2011 5.5
percent
from July 1, 2011, until June 30, 2012 6.0
percent
from July 1, 2012, until June 30, 2013 6.5
percent
from July 1, 2013, until June 30, 2014 7.0
percent
after June 30, 2014 7.5
percent
(c) When an employee
contribution rate changes for a fiscal year, the new contribution rate is
effective for the entire salary paid for each employer unit with the first payroll
cycle reported.
(d) After June 30, 2015, if
a contribution rate revision is required under subdivisions 4a, 4b, and 4c, the
employee contributions under paragraphs (a) and (b) must be adjusted
accordingly.
(b) (e) This
contribution must be made by deduction from salary. Where any portion of a member's salary is
paid from other than public funds, the member's employee contribution must be
based on the entire salary received.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 48. Minnesota Statutes 2008, section 354.42,
subdivision 3, is amended to read:
Subd. 3. Employer. (a) The regular employer contribution
to the fund by Special School District No. 1, Minneapolis, after July 1,
2006, and before July 1, 2007, is an amount equal to 5.0 percent of the salary
of each of its teachers who is a coordinated member and 9.0 percent of the
salary of each of its teachers who is a basic member. After July 1, 2007, the regular employer
contribution to the fund by Special School District No. 1, Minneapolis, is
an amount equal to 5.5 percent the applicable following percentage of
salary of each coordinated member and 9.5 percent the applicable
following percentage of salary of each basic member.:
Period Coordinated
Member Basic
Member
before July 1, 2011 5.5
percent 9.5
percent
from July 1, 2011, until
June 30, 2012 6.0
percent 10.0
percent
from July 1, 2012, until
June 30, 2013 6.5
percent 10.5
percent
from July 1, 2013, until
June 30, 2014 7.0
percent 11.0
percent
after June 30, 2014 7.5
percent 11.5
percent
The additional employer
contribution to the fund by Special School District No. 1, Minneapolis, after
July 1, 2006, is an amount equal to 3.64 percent of the salary of
each teacher who is a coordinated member or is a basic member.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10654
(b) The employer
contribution to the fund for every other employer is an amount equal to 5.0
percent the applicable following percentage of the salary of each
coordinated member and 9.0 percent the applicable following
percentage of the salary of each basic member before July 1, 2007, and
5.5 percent of the salary of each coordinated member and 9.5 percent of the
salary of each basic member after June 30, 2007.:
Period Coordinated
Member Basic
Member
before July 1, 2011 5.5
percent 9.5
percent
from July 1, 2011, until June 30, 2012 6.0
percent 10.0
percent
from July 1, 2012, until June 30, 2013 6.5
percent 10.5
percent
from July 1, 2013, until June 30, 2014 7.0
percent 11.0
percent
after June 30, 2014 7.5
percent 11.5
percent
(c) When an employer contribution
rate changes for a fiscal year, the new contribution rate is effective for the
entire salary paid for each employer unit with the first payroll cycle
reported.
(d) After June 30, 2015, if a
contribution rate revision is made under subdivisions 4a, 4b, and 4c, the
employer contributions under paragraphs (a) and (b) must be adjusted
accordingly.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 49. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4a. Determination. (a) For purposes of this section, a
contribution sufficiency exists if the total of the employee contributions, the
employer contributions, and any additional employer contributions, if
applicable, exceeds the total of the normal cost, the administrative expenses,
and the amortization contribution of the retirement plan as reported in the
most recent actuarial valuation of the retirement plan prepared by the approved
actuary retained under section 356.214 and prepared under section 356.215 and
the standards for actuarial work of the Legislative Commission on Pensions and
Retirement.
(b) For purposes of this section, a
contribution deficiency exists if the total of the employee contributions, the
employer contributions, and any additional employer contributions are less than
the total of the normal cost, the administrative expenses, and the amortization
contribution of the retirement plan as reported in the most recent actuarial
valuation of the retirement plan prepared by the approved actuary retained
under section 356.214 and prepared under section 356.215 and the standards for
actuarial work of the Legislative Commission on Pensions and Retirement.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 50. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4b. Contribution
rate revision. Notwithstanding
the contribution rate provisions under subdivisions 2 and 3, the employee and
employer contribution rates may be adjusted as follows:
(1) if, after June 30, 2015, the
regular actuarial valuation of the plan under section 356.215 indicates that
there is a contribution sufficiency under subdivision 4a equal to or greater
than one percent of covered payroll and the sufficiency has existed for at
least two consecutive years, the employee and employer contribution rates for
the plan may each be decreased to a level such that the sufficiency equals no
more than one percent of covered payroll based on the most recent actuarial valuation;
or
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10655
(2) if, after
June 30, 2015, the regular valuation of the plan under section 356.215 indicates
that there is a deficiency equal to or greater than 0.25 percent of covered
payroll and the deficiency has existed for at least two consecutive years, the
employee and employer contribution rates for the applicable plan may each be
increased by:
(i) 0.25 percent if the deficiency
is less than 2.00 percent of covered payroll;
(ii) 0.5 percent if the deficiency
is equal to or greater than 2.00 percent of covered payroll and less than or
equal to four percent; and
(iii) 0.75 percent if the deficiency
is greater than four percent.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 51. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4c. Contribution
sufficiency measures. (a) A
contribution sufficiency of up to one percent of covered payroll must be held
in reserve to be used to offset any future actuarially required contributions
that are more than the total combined employee and employer contributions being
collected.
(b) Before any reduction in
contributions to eliminate a sufficiency in excess of one percent of covered
pay may be recommended, the executive director must review any need for a
change in actuarial assumptions, as recommended by the actuary retained under
section 356.214 in the most recent experience study of the retirement plan,
that may result in an increase in the actuarially required contribution and
must report to the Legislative Commission on Pensions and Retirement any
recommendation by the board to use the sufficiency exceeding one percent of
covered payroll to offset the impact of an actuarial assumption change
recommended by the actuary retained under section 356.214, subdivision 1, and
reviewed by the actuary retained by the commission under section 356.214,
subdivision 4.
(c) A contribution sufficiency in
excess of one percent of covered pay must not be used to increase benefits, and
a benefit increase must not be proposed that would initiate an automatic
adjustment under this section to increase contributions. A proposed benefit improvement must include a
recommendation, prepared by the actuary retained under section 356.214,
subdivision 1, and reviewed by the actuary retained by the Legislative Commission
on Pensions and Retirement, as provided under section 356.214, subdivision 4,
on the manner in which the benefit modification is to be funded.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 52. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4d. Reporting;
commission review. A
contribution rate increase or decrease under subdivision 4b, as determined by
the executive director of the Teachers Retirement Association, must be reported
to the chair and the executive director of the Legislative Commission on
Pensions and Retirement on or before the next February 1 and, if the
Legislative Commission on Pensions and Retirement does not recommend against
the rate change or does not recommend a modification in the rate change, is
effective on the next July 1 following the determination by the executive
director that a contribution deficiency or sufficiency exists based on the most
recent actuarial valuation under section 356.215.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10656
Sec. 53. Minnesota Statutes 2009 Supplement, section
354.47, subdivision 1, is amended to read:
Subdivision 1. Death
before retirement. (a) If a member
dies before retirement and is covered under section 354.44, subdivision 2, and
neither an optional annuity, nor a reversionary annuity, nor a benefit under section
354.46, subdivision 1, is payable to the survivors if the member was a basic
member, then the surviving spouse, or if there is no surviving spouse, the
designated beneficiary is entitled to an amount equal to the member's
accumulated deductions with interest credited to the account of the member to
the date of death of the member. If the
designated beneficiary is a minor, interest must be credited to the date the
beneficiary reaches legal age, or the date of receipt, whichever is
earlier.
(b) If a member dies before
retirement and is covered under section 354.44, subdivision 6, and neither an
optional annuity, nor reversionary annuity, nor the benefit described in
section 354.46, subdivision 1, is payable to the survivors if the member was a
basic member, then the surviving spouse, or if there is no surviving spouse,
then the designated beneficiary is entitled to an amount equal to the
member's accumulated deductions credited to the account of the member as of
June 30, 1957, and from July 1, 1957, to the date of death of the member, the
member's accumulated deductions plus six percent interest compounded
annually. a refund equal to the
accumulated deductions credited to the member's account plus interest
compounded annually until the member's date of death using the following
interest rates:
(1) before July 1, 1957, no
interest accrues;
(2) July 1, 1957, to June 30, 2011,
six percent; and
(3) after June 30, 2011, four
percent.
(c) If the designated beneficiary
under paragraph (b) is a minor, any interest credited under that paragraph must
be credited to the date the beneficiary reaches legal age, or the date of
receipt, whichever is earlier.
(d) The amount of any refund
payable under this subdivision must be reduced by any permanent disability
payment under section 354.48 received by the member.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 54. Minnesota Statutes 2009 Supplement, section
354.49, subdivision 2, is amended to read:
Subd. 2. Calculation. (a) Except as provided in section 354.44,
subdivision 1, any person who ceases to be a member by reason of termination of
teaching service, is entitled to receive a refund in an amount equal to the
accumulated deductions credited to the account as of June 30, 1957, and
after July 1, 1957, the accumulated deductions with interest at the rate of six
percent per annum compounded annually. plus
interest compounded annually using the following interest rates:
(1) before July 1, 1957, no interest
accrues;
(2) July 1, 1957, to June 30, 2011,
six percent; and
(3) after June 30, 2011, four
percent.
For the purpose of this
subdivision, interest must be computed on fiscal year end balances to the first
day of the month in which the refund is issued.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10657
(b) If the person
has received permanent disability payments under section 354.48, the refund
amount must be reduced by the amount of those payments.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 55. Minnesota Statutes 2009 Supplement, section
354.55, subdivision 11, is amended to read:
Subd. 11. Deferred
annuity; augmentation. (a) Any
person covered under section 354.44, subdivision 6, who ceases to render
teaching service, may leave the person's accumulated deductions in the fund for
the purpose of receiving a deferred annuity at retirement.
(b) The amount of the deferred
retirement annuity is determined by section 354.44, subdivision 6, and
augmented as provided in this subdivision.
The required reserves for the annuity which had accrued when the member
ceased to render teaching service must be augmented, as further specified in
this subdivision, by the applicable interest rate compounded
annually from the first day of the month following the month during which the
member ceased to render teaching service to the effective date of retirement.
(c) No augmentation is not
creditable if the deferral period is less than three months or if deferral
commenced before July 1, 1971.
(d) For persons who became covered
employees before July 1, 2006, with a deferral period commencing after June 30,
1971, the annuity must be augmented using as follows:
(1) five
percent interest compounded annually until January 1, 1981, and;
(2) three
percent interest compounded annually thereafter from January 1, 1981,
until January 1 of the year following the year in which the deferred annuitant
attains age 55.;
From that date (3)
five percent interest compounded annually from the date established in clause
(2) to the effective date of retirement, the rate is five percent
compounded annually. or until
June 30, 2012, whichever is earlier; and
(4) two percent interest compounded
annually after June 30, 2012.
(e) For persons who become covered
employees after June 30, 2006, the interest rate used to augment the deferred
annuity is 2.5 percent interest compounded annually until June 30, 2012, or
until the effective date of retirement, whichever is earlier, and two percent
interest compounded annually after June 30, 2012.
(f) If a person has more than one
period of uninterrupted service, a separate average salary determined under
section 354.44, subdivision 6, must be used for each period and the required
reserves related to each period must be augmented as specified in this
subdivision. The sum of the augmented
required reserves is the present value of the annuity. For the purposes of this subdivision,
"period of uninterrupted service" means a period of covered teaching
service during which the member has not been separated from active service for
more than one fiscal year.
(g) If a person repays a refund,
the service restored by the repayment must be considered as continuous with the
next period of service for which the person has allowable service credit in the
Teachers Retirement Association.
(h) If a person does not render
teaching service in any one fiscal year or more consecutive fiscal years and
then resumes teaching service, the formula percentages used from the date of
the resumption of teaching service must be those applicable to new members.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10658
(i) The mortality
table and interest rate actuarial assumption used to compute the annuity
must be the applicable mortality table established by the board under section
354.07, subdivision 1, and the interest rate actuarial assumption under
section 356.215 in effect when the member retires.
(j) In no case may the annuity
payable under this subdivision be less than the amount of annuity payable under
section 354.44, subdivision 6.
(k) The requirements and provisions
for retirement before normal retirement age contained in section 354.44,
subdivision 6, also apply to an employee fulfilling the requirements with a
combination of service as provided in section 354.60.
(l) The augmentation provided by
this subdivision applies to the benefit provided in section 354.46,
subdivision 2.
(m) The augmentation provided by
this subdivision does not apply to any period in which a person is on an
approved leave of absence from an employer unit covered by the provisions of
this chapter.
(n) The retirement annuity or
disability benefit of, or the survivor benefit payable on behalf of, a former teacher
who terminated service before July 1, 1997, which is not first payable until
after June 30, 1997, must be increased on an actuarial equivalent basis to
reflect the change in the postretirement interest rate actuarial assumption
under section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board as recommended by an
approved actuary and approved by the actuary retained under section 356.214.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 56. Minnesota Statutes 2008, section 354A.12,
subdivision 1, is amended to read:
Subdivision 1. Employee
contributions. (a) The
contribution required to be paid by each member of a teachers retirement fund
association shall not be less than is the percentage of total
salary specified below for the applicable association and program:
Association
and Program Percentage
of Total Salary
Duluth Teachers Retirement Fund Association
old law and
new law
coordinated
programs 5.5
percent
before July
1, 2011 5.5
percent
effective
July 1, 2011 6.0
percent
effective
July 1, 2012 6.5
percent
St. Paul Teachers Retirement Fund Association
basic program before
July 1, 2010 8
percent
basic
program after June 30, 2010 8.5
percent
basic
program after June 30, 2011 9.0
percent
coordinated
program before July 1, 2010 5.5
percent
coordinated
program after June 30, 2010 6.0
percent
coordinated
program after June 30, 2011 6.5
percent
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10659
(b) Contributions shall be made
by deduction from salary and must be remitted directly to the respective
teachers retirement fund association at least once each month.
(c) When an employee
contribution rate changes for a fiscal year, the new contribution rate is
effective for the entire salary paid by the employer with the first payroll
cycle reported.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 57. Minnesota Statutes 2009 Supplement, section
354A.12, subdivision 2a, is amended to read:
Subd. 2a. Employer
regular and additional contributions. (a)
The employing units shall make the following employer contributions to teachers
retirement fund associations:
(1) for any coordinated
member of one of the following teachers retirement fund associations in a city
of the first class, the employing unit shall make a regular employer contribution
to the respective retirement fund association in an amount equal to the
designated percentage of the salary of the coordinated member as provided
below:
Duluth Teachers Retirement Fund Association 4.50
percent
before July 1, 2011 5.79
percent
effective July 1, 2011 6.29
percent
effective July 1, 2012 6.79
percent
St. Paul Teachers Retirement Fund Association
before July 1, 2010 4.50
percent
after June 30, 2010 5.0
percent
after June 30, 2011 5.5
percent
after June 30, 2013 6.5
percent
(2) for any basic member of
the St. Paul Teachers Retirement Fund Association, the employing unit
shall make a regular employer contribution to the respective retirement fund in
an amount equal to 8.00 percent of the salary of the basic member; according
to the schedule below:
before July 1, 2010 8.0
percent of the salary of the basic member
before July 1, 2011 8.5
percent of the salary of the basic member
before July 1, 2012 9.0
percent of the salary of the basic member
before July 1, 2013 9.5
percent of the salary of the basic member
before July 1, 2014 10.0
percent of the salary of the basic member
(3) for a basic member of
the St. Paul Teachers Retirement Fund Association, the employing unit
shall make an additional employer contribution to the respective fund in an
amount equal to 3.64 percent of the salary of the basic member;
(4) for a coordinated member
of a teachers retirement fund association in a city of the first class
the St. Paul Teachers Retirement Fund Association, the employing unit
shall make an additional employer contribution to the respective fund in an
amount equal to the applicable percentage of the coordinated member's salary,
as provided below:
Duluth Teachers Retirement Fund Association 1.29
percent
St. Paul Teachers Retirement Fund Association 3.84
percent
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10660
(b) The regular and
additional employer contributions must be remitted directly to the respective
teachers retirement fund association at least once each month. Delinquent amounts are payable with interest
under the procedure in subdivision 1a.
(c) Payments of regular and additional employer
contributions for school district or technical college employees who are paid
from normal operating funds must be made from the appropriate fund of the
district or technical college.
(d) When an employer contribution rate changes for a
fiscal year, the new contribution rate is effective for the entire salary paid
by the employer with the first payroll cycle reported.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 58.
Minnesota Statutes 2008, 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, must be paid to the Teachers
Retirement Association and must continue until the current assets of the fund
equal or exceed the actuarial accrued liability of the fund as determined in
the most recent actuarial report for the fund by the actuary retained under
section 356.214, or 2037, whichever occurs earlier. 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
aid 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. must continue until the
current assets of the fund equal or exceed the actuarial accrued liability of
the fund as determined in the most recent actuarial report for the fund by the
actuary retained under section 356.214 or until 2037, whichever occurs
earlier.
(b) If the St. Paul Teachers Retirement Fund
Association is funded at an amount equal to or greater than the funding ratio
applicable to the Teachers Retirement Association, then any future state aid
under subdivision 3a is payable to the Teachers Retirement Association.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 59.
Minnesota Statutes 2008, section 354A.27, subdivision 5, is amended to
read:
Subd. 5. Calculation Eligibility for and
payment of postretirement adjustments.
(a) Annually, after June 30, the board of trustees of the
Duluth Teachers Retirement Fund Association determines the amount of any
postretirement adjustment using the procedures in this subdivision and
subdivision 6 or 7, whichever is applicable.
(b) Each person who has been receiving an annuity or
benefit under the articles of incorporation, bylaws, or under this section for
at least 12 months as of the date of the postretirement adjustment shall be eligible
for a postretirement adjustment. The
postretirement adjustment shall be payable each January 1. The postretirement adjustment shall be equal
to two percent of a permanent percentage increase as specified under
subdivision 6 or 7, whichever is applicable, applied to the annuity or
benefit to which the person is entitled one month prior to the payment of the
postretirement adjustment.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10661
Sec. 60. Minnesota Statutes 2008, section 354A.27,
subdivision 6, is amended to read:
Subd. 6. Additional
increase Calculation of postretirement adjustments; transitional
provision. (a) In addition to
the postretirement increases granted under subdivision 5, an additional
percentage increase must be computed and paid under this subdivision.
(b) The board of trustees
shall determine the number of annuitants or benefit recipients who have been
receiving an annuity or benefit for at least 12 months as of the current June
30. These recipients are entitled to
receive the surplus investment earnings additional postretirement increase.
(c) Annually, as of each
June 30, the board shall determine the five-year annualized rate of return
attributable to the assets of the Duluth Teachers Retirement Fund Association
under the formula or formulas specified in section 11A.04, clause (11).
(d) The board shall
determine the amount of excess five-year annualized rate of return over the
preretirement interest assumption as specified in section 356.215.
(e) The additional
percentage increase must be determined by multiplying the quantity one minus
the rate of contribution deficiency, as specified in the most recent actuarial
report of the actuary retained under section 356.214, times the rate of return
excess as determined in paragraph (d).
(f) The additional increase
is payable to all eligible annuitants or benefit recipients on the following
January 1.
(a) For purposes of
computing postretirement adjustments after the effective date of this section
for eligible benefit recipients of the Duluth Teachers Retirement Fund
Association, the funding ratio of the plan, as determined by dividing the
market value of assets by the actuarial accrued liability as reported in the
most recent actuarial valuation prepared under sections 356.214 and 356.215,
determines the postretirement increase as follows:
Funding Ratio Postretirement
Increase
less than 80 percent 0
percent
at least 80 percent but less than 90 percent 1
percent
at least 90 percent 2
percent
(b) If the funding ratio of
the plan based on actuarial value, rather than market value, is at least 90
percent as reported in the most recent actuarial valuation prepared under
sections 356.214 and 356.215, this subdivision expires and subsequent
postretirement increases must be paid as specified under subdivision 7.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 61. Minnesota Statutes 2008, section 354A.27, is
amended by adding a subdivision to read:
Subd. 7. Calculation
of postretirement adjustments. (a)
This subdivision applies if subdivision 6 has expired.
(b) A percentage adjustment
must be computed and paid under this subdivision to eligible persons under
subdivision 5. This adjustment is
determined by reference to the Consumer Price Index for urban wage earners and
clerical workers all items index as reported by the Bureau of Labor Statistics
within the United States Department of Labor each year as part of the
determination of annual cost-of-living adjustments to recipients of federal
old-age, survivors, and disability insurance.
For calculations of cost-of-living adjustments under paragraph (c), the
term "average third quarter Consumer Price Index value" means the sum
of the monthly index values as initially reported by the Bureau of Labor
Statistics for the months of July, August, and September, divided by 3.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10662
(c) Before
January 1 of each year, the executive director must calculate the amount of the
cost-of-living adjustment by dividing the most recent average third quarter
index value by the same average third quarter index value from the previous
year, subtract one from the resulting quotient, and express the result as a percentage
amount, which must be rounded to the nearest one-tenth of one percent.
(d) The amount calculated under paragraph (c) is the
full cost-of-living adjustment to be applied as a permanent increase to the
regular payment of each eligible member on January 1 of the next calendar
year. For any eligible member whose
effective date of benefit commencement occurred during the calendar year before
the cost-of-living adjustment is applied, the full increase amount must be
prorated on the basis of whole calendar quarters in benefit payment status in
the calendar year prior to the January 1 on which the cost-of-living adjustment
is applied, calculated to the third decimal place.
(e) The adjustment must not be less than zero nor
greater than five percent.
(f) If the funding ratio of the plan as determined in
the most recent actuarial valuation using the actuarial value of assets is less
than 80 percent there will be no postretirement adjustment the following
January 1.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 62.
Minnesota Statutes 2008, section 354A.31, subdivision 1, is amended to
read:
Subdivision 1. Age and service requirements. Any coordinated member or former
coordinated member of the St. Paul Teachers Retirement Fund Association
who has ceased to render teaching service for the school district in which
the teachers retirement fund association exists and who has either attained the
age of at least 55 years with not less than three years of allowable service
credit or received credit for not less than 30 years of allowable service
regardless of age, shall be entitled upon written application to a retirement
annuity. Any coordinated member or
former coordinated member of the Duluth Teachers Retirement Fund Association
who has ceased to render teaching service for the school district in which the
teacher retirement fund association exists and who has either attained the age
of at least 55 years with not less than three years of allowable service credit
if the member became an employee before July 1, 2010, or not less than five
years of allowable service credit if the member became an employee after June
30, 2010, or received service credit for not less than 30 years of allowable
service regardless of age, shall be entitled upon written application to a
retirement annuity.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 63.
Minnesota Statutes 2008, section 354A.35, subdivision 1, is amended to
read:
Subdivision 1. Death before retirement; refund. If a coordinated member or former
coordinated member dies prior to retirement or prior to the receipt of any
retirement annuity or other benefit payment which is or may be payable and a
surviving spouse optional annuity is not payable pursuant to subdivision 2, a
refund shall be paid to the person's surviving spouse, or if there is none, to
the person's designated beneficiary, or if there is none, to the legal
representative of the person's estate. For
a coordinated member or former coordinated member of the St. Paul Teachers
Retirement Fund Association, the refund shall be in an amount equal to the
person's accumulated employee contributions plus interest at the rate of
six percent per annum compounded annually.
For a coordinated member or former coordinated member of the Duluth
Teachers Retirement Fund Association, the refund shall be in an amount equal to
the person's accumulated employee contributions plus interest at the rate of
six percent per annum compounded annually to July 1, 2010, and four percent per
annum compounded annually thereafter.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10663
Sec. 64. Minnesota Statutes 2008, section 354A.37,
subdivision 2, is amended to read:
Subd. 2. Eligibility for deferred retirement
annuity. (a) Any coordinated member
who ceases to render teaching services for the school district in which the
teachers retirement fund association is located, with sufficient allowable
service credit to meet the minimum service requirements specified in section
354A.31, subdivision 1, shall be entitled to a deferred retirement annuity in
lieu of a refund pursuant to subdivision 1.
The deferred retirement annuity shall be computed pursuant to section
354A.31 and shall be augmented as provided in this subdivision. The deferred annuity shall commence upon
application after the person on deferred status attains at least the minimum
age specified in section 354A.31, subdivision 1.
(b) The monthly annuity amount that had accrued when
the member ceased to render teaching service must be augmented from the first day
of the month following the month during which the member ceased to render
teaching service to the effective date of retirement. There is no augmentation if this period is
less than three months. For a member
of the St. Paul Teachers Retirement Fund Association, the rate of
augmentation is three percent compounded annually until January 1 of the year
following the year in which the former member attains age 55, and five percent
compounded annually after that date to the effective date of retirement 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. For a member of the Duluth Teachers
Retirement Fund Association, the rate of augmentation is three percent
compounded annually until January 1 of the year following the year in which the
former member attains age 55, five percent compounded annually after that date
to July 1, 2012, and two percent compounded annually after that date to the
effective date of retirement if the employee became an employee before July 1,
2006, and at 2.5 percent compounded annually to July 1, 2012, and two
percent compounded annually after that date to the effective date of retirement
if the employee becomes an employee after June 30, 2006. If a person has more than one period of
uninterrupted service, a separate average salary determined under section
354A.31 must be used for each period, and the monthly annuity amount related to
each period must be augmented as provided in this subdivision. The sum of the augmented monthly annuity
amounts determines the total deferred annuity payable. If a person repays a refund, the service
restored by the repayment must be considered as continuous with the next period
of service for which the person has credit with the fund. If a person does not render teaching services
in any one fiscal year or more consecutive fiscal years and then resumes
teaching service, the formula percentages used from the date of resumption of
teaching service are those applicable to new members. The mortality table and interest assumption
used to compute the annuity are the table established by the fund to compute
other annuities, and the interest assumption under section 356.215 in effect
when the member retires. A period of
uninterrupted service for the purpose of this subdivision means a period of
covered teaching service during which the member has not been separated from
active service for more than one fiscal year.
(c) The augmentation provided by this subdivision
applies to the benefit provided in section 354A.35, subdivision 2. The augmentation provided by this subdivision
does not apply to any period in which a person is on an approved leave of
absence from an employer unit.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 65.
Minnesota Statutes 2008, section 354A.37, subdivision 3, is amended to
read:
Subd. 3. Computation of refund amount. A former coordinated member of the
St. Paul Teachers Retirement Fund Association who qualifies for a
refund pursuant to under subdivision 1 shall receive a refund
equal to the amount of the former coordinated member's accumulated employee contributions
with interest at the rate of six percent per annum compounded annually. A former coordinated member of the Duluth
Teachers Retirement Fund Association who qualifies for a refund under
subdivision 1 shall receive a refund equal to the amount of the former
coordinated member's accumulated employee contributions with interest at the
rate of six percent per annum compounded annually to July 1, 2010, and four
percent per annum compounded annually thereafter.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10664
Sec. 66. Minnesota Statutes 2008, section 354A.37,
subdivision 4, is amended to read:
Subd. 4. Certain refunds at normal retirement
age. Any coordinated member who has
attained the normal retirement age with less than ten years of allowable
service credit and has terminated active teaching service shall be entitled to
a refund in lieu of a proportionate annuity pursuant to section 356.32. The refund for a member of the
St. Paul Teachers Retirement Fund Association shall be equal to the
coordinated member's accumulated employee contributions plus interest at the
rate of six percent compounded annually.
The refund for a member of the Duluth Teachers Retirement Fund
Association shall be equal to the coordinated member's accumulated employee
contributions plus interest at the rate of six percent compounded annually to
July 1, 2010, and four percent per annum compounded annually thereafter.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 67.
Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to
read:
Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use the
applicable following preretirement interest assumption and the applicable
following postretirement interest assumption:
preretirement postretirement
interest
rate interest
rate
plan assumption assumption
general state employees retirement plan 8.5% 6.0%
correctional state employees retirement plan 8.5 6.0
State Patrol retirement plan 8.5 6.0
legislators retirement plan 8.5 6.0
elective state officers retirement plan 8.5 6.0
judges retirement plan 8.5 6.0
general public employees retirement plan 8.5 6.0
public employees police and fire retirement plan 8.5 6.0
local government correctional service retirement plan 8.5 6.0
teachers retirement plan 8.5 6.0
Minneapolis employees retirement plan 6.0 5.0
Duluth teachers retirement plan 8.5 8.5
St. Paul teachers retirement plan 8.5 8.5
Minneapolis Police Relief Association 6.0 6.0
Fairmont Police Relief Association 5.0 5.0
Minneapolis Fire Department Relief Association 6.0 6.0
Virginia Fire Department Relief Association 5.0 5.0
Bloomington Fire Department Relief Association 6.0 6.0
local monthly benefit volunteer firefighters relief
associations 5.0 5.0
(b) Before July 1, 2010, the actuarial valuation must
use the applicable following single rate future salary increase assumption, the
applicable following modified single rate future salary increase assumption, or
the applicable following graded rate future salary increase assumption:
(1)
single rate future salary increase assumption
future
salary
plan increase
assumption
legislators retirement plan 5.0%
judges retirement plan 4.0
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10665
Minneapolis Police
Relief Association 4.0
Fairmont Police Relief Association 3.5
Minneapolis Fire Department Relief Association 4.0
Virginia Fire Department Relief Association 3.5
Bloomington Fire Department Relief Association 4.0
(2)
modified single rate future salary increase assumption
future
salary
plan increase
assumption
Minneapolis employees retirement plan the prior calendar year
amount increased
first
by 1.0198 percent to prior fiscal year
date
and then increased by 4.0 percent
annually
for each future year
(3) age-related
select and ultimate future salary increase assumption or graded rate future
salary increase assumption
future
salary
plan increase
assumption
general state employees retirement plan select
calculation and assumption A
correctional state employees retirement plan assumption
H G
State Patrol retirement plan assumption
G F
general public employees retirement plan select
calculation and assumption B
public employees police and fire fund retirement plan assumption
C B
local government correctional service retirement plan assumption
G F
teachers retirement plan assumption
D C
Duluth teachers retirement plan assumption
E D
St. Paul teachers retirement plan assumption
F E
The select calculation is: during the designated select period, a
designated percentage rate is multiplied by the result of the designated
integer minus T, where T is the number of completed years of service, and is
added to the applicable future salary increase assumption. The designated select period is five years
and the designated integer is five for the general state employees retirement
plan and the general public employees retirement plan. The designated select period is ten years and
the designated integer is ten for all other retirement plans covered by this
clause. The designated percentage rate
is: (1) 0.2 percent for the correctional
state employees retirement plan, the State Patrol retirement plan, the public
employees police and fire plan, and the local government correctional service
plan; (2) 0.6 percent for the general state employees retirement plan and
the general public employees retirement plan; and (3) 0.3 percent for the
teachers retirement plan, the Duluth Teachers Retirement Fund Association, and
the St. Paul Teachers Retirement Fund Association. The select calculation for the Duluth
Teachers Retirement Fund Association is 8.00 percent per year for service years
one through seven, 7.25 percent per year for service years seven and eight, and
6.50 percent per year for service years eight and nine.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10666
The ultimate future
salary increase assumption is:
age A B C B D C E D F E G F H G
16 5.95% 5.95% 11.00% 7.70% 8.00% 6.90% 7.7500% 7.2500%
17 5.90 5.90 11.00 7.65 8.00 6.90 7.7500 7.2500
18 5.85 5.85 11.00 7.60 8.00 6.90 7.7500 7.2500
19 5.80 5.80 11.00 7.55 8.00 6.90 7.7500 7.2500
20 5.75 5.40 11.00 5.50 6.90 6.90 7.7500 7.2500
21 5.75 5.40 11.00 5.50 6.90 6.90 7.1454 6.6454
22 5.75 5.40 10.50 5.50 6.90 6.90 7.0725 6.5725
23 5.75 5.40 10.00 5.50 6.85 6.85 7.0544 6.5544
24 5.75 5.40 9.50 5.50 6.80 6.80 7.0363 6.5363
25 5.75 5.40 9.00 5.50 6.75 6.75 7.0000 6.5000
26 5.75 5.36 8.70 5.50 6.70 6.70 7.0000 6.5000
27 5.75 5.32 8.40 5.50 6.65 6.65 7.0000 6.5000
28 5.75 5.28 8.10 5.50 6.60 6.60 7.0000 6.5000
29 5.75 5.24 7.80 5.50 6.55 6.55 7.0000 6.5000
30 5.75 5.20 7.50 5.50 6.50 6.50 7.0000 6.5000
31 5.75 5.16 7.30 5.50 6.45 6.45 7.0000 6.5000
32 5.75 5.12 7.10 5.50 6.40 6.40 7.0000 6.5000
33 5.75 5.08 6.90 5.50 6.35 6.35 7.0000 6.5000
34 5.75 5.04 6.70 5.50 6.30 6.30 7.0000 6.5000
35 5.75 5.00 6.50 5.50 6.25 6.25 7.0000 6.5000
36 5.75 4.96 6.30 5.50 6.20 6.20 6.9019 6.4019
37 5.75 4.92 6.10 5.50 6.15 6.15 6.8074 6.3074
38 5.75 4.88 5.90 5.40 6.10 6.10 6.7125 6.2125
39 5.75 4.84 5.70 5.30 6.05 6.05 6.6054 6.1054
40 5.75 4.80 5.50 5.20 6.00 6.00 6.5000 6.0000
41 5.75 4.76 5.40 5.10 5.90 5.95 6.3540 5.8540
42 5.75 4.72 5.30 5.00 5.80 5.90 6.2087 5.7087
43 5.65 4.68 5.20 4.90 5.70 5.85 6.0622 5.5622
44 5.55 4.64 5.10 4.80 5.60 5.80 5.9048 5.4078
45 5.45 4.60 5.00 4.70 5.50 5.75 5.7500 5.2500
46 5.35 4.56 4.95 4.60 5.40 5.70 5.6940 5.1940
47 5.25 4.52 4.90 4.50 5.30 5.65 5.6375 5.1375
48 5.15 4.48 4.85 4.50 5.20 5.60 5.5822 5.0822
49 5.05 4.44 4.80 4.50 5.10 5.55 5.5404 5.0404
50 4.95 4.40 4.75 4.50 5.00 5.50 5.5000 5.0000
51 4.85 4.36 4.75 4.50 4.90 5.45 5.4384 4.9384
52 4.75 4.32 4.75 4.50 4.80 5.40 5.3776 4.8776
53 4.65 4.28 4.75 4.50 4.70 5.35 5.3167 4.8167
54 4.55 4.24 4.75 4.50 4.60 5.30 5.2826 4.7826
55 4.45 4.20 4.75 4.50 4.50 5.25 5.2500 4.7500
56 4.35 4.16 4.75 4.50 4.40 5.20 5.2500 4.7500
57 4.25 4.12 4.75 4.50 4.30 5.15 5.2500 4.7500
58 4.25 4.08 4.75 4.60 4.20 5.10 5.2500 4.7500
59 4.25 4.04 4.75 4.70 4.10 5.05 5.2500 4.7500
60 4.25 4.00 4.75 4.80 4.00 5.00 5.2500 4.7500
61 4.25 4.00 4.75 4.90 3.90 5.00 5.2500 4.7500
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10667
62 4.25 4.00 4.75 5.00 3.80 5.00 5.2500 4.7500
63 4.25 4.00 4.75 5.10 3.70 5.00 5.2500 4.7500
64 4.25 4.00 4.75 5.20 3.60 5.00 5.2500 4.7500
65 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
66 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
67 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
68 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
69 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
70 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
71 4.25 4.00 5.20
(4) service-related ultimate future
salary increase assumption
service
length general
employees retirement plan of the
Public
Employees Retirement Association
1 12.03%
2 8.90
3 7.46
4 6.58
5 5.97
6 5.52
7 5.16
8 4.87
9 4.63
10 4.42
11 4.24
12 4.08
13 3.94
14 3.82
15 3.70
16 3.60
17 3.51
18 3.50
19 3.50
20 3.50
21 3.50
22 3.50
23 3.50
24 3.50
25 3.50
26 3.50
27 3.50
28 3.50
29 3.50
30
or more 3.50
(c) Before July 2, 2010, the actuarial valuation must use
the applicable following payroll growth assumption for calculating the
amortization requirement for the unfunded actuarial accrued liability where the
amortization retirement is calculated as a level percentage of an increasing
payroll:
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10668
Plan payroll growth
assumption
general state employees retirement plan 4.50%
correctional state employees retirement plan 4.50
State Patrol retirement plan 4.50
legislators retirement plan 4.50
judges retirement plan 4.00
general public employees retirement plan of
the
Public Employees Retirement
Association 4.50
4.00
public employees police and fire retirement plan 4.50
local government correctional service retirement plan 4.50
teachers retirement plan 4.50
Duluth teachers retirement plan 4.50
St. Paul teachers retirement plan 5.00
(d) After July 1, 2010, the assumptions set forth in
paragraphs (b) and (c) continue to apply, unless a different salary assumption
or a different payroll increase assumption:
(1) has been proposed by the governing board of the
applicable retirement plan;
(2) is accompanied by the concurring recommendation of
the actuary retained under section 356.214, subdivision 1, if applicable, or by
the approved actuary preparing the most recent actuarial valuation report if
section 356.214 does not apply; and
(3) has been approved or deemed approved under
subdivision 18.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 68.
Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, is
amended to read:
Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating
the level normal cost, the actuarial valuation of the retirement plan must
contain an exhibit for financial reporting purposes indicating the additional
annual contribution sufficient to amortize the unfunded actuarial accrued
liability and must contain an exhibit for contribution determination purposes
indicating the additional contribution sufficient to amortize the unfunded
actuarial accrued liability. For the
retirement plans listed in subdivision 8, paragraph (c), the additional
contribution must be calculated on a level percentage of covered payroll basis
by the established date for full funding in effect when the valuation is
prepared, assuming annual payroll growth at the applicable percentage rate set
forth in subdivision 8, paragraph (c).
For all other retirement plans, the additional annual contribution must
be calculated on a level annual dollar amount basis.
(b) For any retirement plan other than the Minneapolis
Employees Retirement Fund, the general employees retirement plan of the Public
Employees Retirement Association, the general state employees retirement
plan of the Minnesota State Retirement System, and the St. Paul
Teachers Retirement Fund Association, if there has not been a change in the
actuarial assumptions used for calculating the actuarial accrued liability of
the fund, a change in the benefit plan governing annuities and benefits payable
from the fund, a change in the actuarial cost method used in calculating the
actuarial accrued liability of all or a portion of the fund, or a combination
of the three, which change or changes by itself or by themselves without
inclusion of any other items of increase or decrease produce a net increase in
the unfunded actuarial accrued liability of the fund, the established date for
full funding is the first actuarial valuation date occurring after June 1,
2020.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10669
(c) For any
retirement plan other than the Minneapolis Employees Retirement Fund and the
general employees retirement plan of the Public Employees Retirement
Association, if there has been a change in any or all of the actuarial
assumptions used for calculating the actuarial accrued liability of the fund, a
change in the benefit plan governing annuities and benefits payable from the
fund, a change in the actuarial cost method used in calculating the actuarial
accrued liability of all or a portion of the fund, or a combination of the
three, and the change or changes, by itself or by themselves and without
inclusion of any other items of increase or decrease, produce a net increase in
the unfunded actuarial accrued liability in the fund, the established date for
full funding must be determined using the following procedure:
(i) the unfunded actuarial accrued liability of the
fund must be determined in accordance with the plan provisions governing
annuities and retirement benefits and the actuarial assumptions in effect
before an applicable change;
(ii) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the unfunded actuarial
accrued liability amount determined under item (i) by the established date for
full funding in effect before the change must be calculated using the interest
assumption specified in subdivision 8 in effect before the change;
(iii) the unfunded actuarial accrued liability of the
fund must be determined in accordance with any new plan provisions governing
annuities and benefits payable from the fund and any new actuarial assumptions
and the remaining plan provisions governing annuities and benefits payable from
the fund and actuarial assumptions in effect before the change;
(iv) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the difference between
the unfunded actuarial accrued liability amount calculated under item (i) and
the unfunded actuarial accrued liability amount calculated under item (iii)
over a period of 30 years from the end of the plan year in which the applicable
change is effective must be calculated using the applicable interest assumption
specified in subdivision 8 in effect after any applicable change;
(v) the level annual dollar or level percentage
amortization contribution under item (iv) must be added to the level annual
dollar amortization contribution or level percentage calculated under item
(ii);
(vi) the period in which the unfunded actuarial
accrued liability amount determined in item (iii) is amortized by the total
level annual dollar or level percentage amortization contribution computed
under item (v) must be calculated using the interest assumption specified in
subdivision 8 in effect after any applicable change, rounded to the nearest
integral number of years, but not to exceed 30 years from the end of the plan
year in which the determination of the established date for full funding using
the procedure set forth in this clause is made and not to be less than the
period of years beginning in the plan year in which the determination of the
established date for full funding using the procedure set forth in this clause
is made and ending by the date for full funding in effect before the change;
and
(vii) the period determined under item (vi) must be
added to the date as of which the actuarial valuation was prepared and the date
obtained is the new established date for full funding.
(d) For the Minneapolis Employees Retirement Fund, the
established date for full funding is June 30, 2020.
(e) For the general employees retirement plan of the
Public Employees Retirement Association, the established date for full funding
is June 30, 2031.
(f) For the Teachers Retirement Association, the
established date for full funding is June 30, 2037.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10670
(g) For the
correctional state employees retirement plan of the Minnesota State Retirement
System, the established date for full funding is June 30, 2038.
(h) For the judges
retirement plan, the established date for full funding is June 30, 2038.
(i) For the public employees
police and fire retirement plan, the established date for full funding is
June 30, 2038.
(j) For the St. Paul
Teachers Retirement Fund Association, the established date for full funding is
June 30 of the 25th year from the valuation date. In addition to other requirements of this
chapter, the annual actuarial valuation shall contain an exhibit indicating the
funded ratio and the deficiency or sufficiency in annual contributions when
comparing liabilities to the market value of the assets of the fund as of the
close of the most recent fiscal year.
(k) For the general state
employees retirement plan of the Minnesota State Retirement System, the
established date for full funding is June 30, 2040.
(l) For the retirement plans for
which the annual actuarial valuation indicates an excess of valuation assets
over the actuarial accrued liability, the valuation assets in excess of the
actuarial accrued liability must be recognized as a reduction in the current
contribution requirements by an amount equal to the amortization of the excess
expressed as a level percentage of pay over a 30-year period beginning anew
with each annual actuarial valuation of the plan.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 69. Minnesota Statutes 2008, section 356.30,
subdivision 1, is amended to read:
Subdivision 1. Eligibility;
computation of annuity. (a)
Notwithstanding any provisions of the laws governing the retirement plans enumerated
in subdivision 3, a person who has met the qualifications of paragraph (b) may
elect to receive a retirement annuity from each enumerated retirement plan in
which the person has at least one-half year of allowable service, based on the
allowable service in each plan, subject to the provisions of paragraph
(c).
(b) A person may receive,
upon retirement, a retirement annuity from each enumerated retirement plan in
which the person has at least one-half year of allowable service, and
augmentation of a deferred annuity calculated at the appropriate rate under the
laws governing each public pension plan or fund named in subdivision 3, based
on the date of the person's initial entry into public employment from the date
the person terminated all public service if:
(1) the person has allowable
service totaling an amount that allows the person to receive an annuity
in any two or more of the enumerated plans;
(2) the person has
sufficient allowable service in total that equals or exceeds the applicable service
credit vesting requirement of the retirement plan with the longest applicable
service credit vesting requirement; and
(2) (3) the person has
not begun to receive an annuity from any enumerated plan or the person has made
application for benefits from each applicable plan and the effective dates of
the retirement annuity with each plan under which the person chooses to receive
an annuity are within a one-year period.
(c) The retirement annuity
from each plan must be based upon the allowable service, accrual rates, and
average salary in the applicable plan except as further specified or modified
in the following clauses:
(1) the laws governing
annuities must be the law in effect on the date of termination from the last
period of public service under a covered retirement plan with which the person
earned a minimum of one-half year of allowable service credit during that
employment;
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10671
(2) the
"average salary" on which the annuity from each covered plan in which
the employee has credit in a formula plan must be based on the employee's
highest five successive years of covered salary during the entire service in
covered plans;
(3) the accrual rates to be
used by each plan must be those percentages prescribed by each plan's formula
as continued for the respective years of allowable service from one plan to the
next, recognizing all previous allowable service with the other covered plans;
(4) the allowable service in
all the plans must be combined in determining eligibility for and the
application of each plan's provisions in respect to reduction in the annuity
amount for retirement prior to normal retirement age; and
(5) the annuity amount
payable for any allowable service under a nonformula plan of a covered plan
must not be affected, but such service and covered salary must be used in the
above calculation.
(d) This section does not
apply to any person whose final termination from the last public service under
a covered plan was before May 1, 1975.
(e) For the purpose of
computing annuities under this section, the accrual rates used by any covered
plan, except the public employees police and fire plan, the judges retirement
fund, and the State Patrol retirement plan, must not exceed the percent
specified in section 356.315, subdivision 4, per year of service for any year
of service or fraction thereof. The
formula percentage used by the judges retirement fund must not exceed the
percentage rate specified in section 356.315, subdivision 8, per year of
service for any year of service or fraction thereof. The accrual rate used by the public employees
police and fire plan and the State Patrol retirement plan must not exceed the
percentage rate specified in section 356.315, subdivision 6, per year of
service for any year of service or fraction thereof. The accrual rate or rates used by the
legislators retirement plan must not exceed 2.5 percent, but this limit does
not apply to the adjustment provided under section 3A.02, subdivision 1,
paragraph (c).
(f) Any period of time for
which a person has credit in more than one of the covered plans must be used
only once for the purpose of determining total allowable service.
(g) If the period of
duplicated service credit is more than one-half year, or the person has credit
for more than one-half year, with each of the plans, each plan must apply its
formula to a prorated service credit for the period of duplicated service based
on a fraction of the salary on which deductions were paid to that fund for the
period divided by the total salary on which deductions were paid to all plans
for the period.
(h) If the period of duplicated
service credit is less than one-half year, or when added to other service
credit with that plan is less than one-half year, the service credit must be
ignored and a refund of contributions made to the person in accord with that
plan's refund provisions.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 70. Minnesota Statutes 2008, section 356.302,
subdivision 3, is amended to read:
Subd. 3. General
employee plan eligibility requirements. A
disabled member of a covered retirement plan who has credit for allowable
service in a combination of general employee retirement plans is entitled to a
combined service disability benefit if the member:
(1) is less than the normal
retirement age on the date of the application for the disability benefit;
(2) has become totally and
permanently disabled;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10672
(3) has credit for
allowable service in any combination of general employee retirement plans
totaling at least three years the number of years required by the
applicable retirement plan with the longest service credit requirement for
disability benefit receipt;
(4) has credit for at least one-half year of allowable
service with the current general employee retirement plan before the
commencement of the disability;
(5) has at least three continuous years of allowable
service credit by the general employee retirement plan or has at least a total
of three years of allowable service credit by a combination of general employee
retirement plans in a 72-month period during which no interruption of allowable
service credit from a termination of employment exceeded 29 days; and
(6) was not receiving a retirement annuity or
disability benefit from any covered general employee retirement plan at the
time of the commencement of the disability.
EFFECTIVE
DATE. This section is effective the day following
final enactment.
Sec. 71.
Minnesota Statutes 2008, section 356.302, subdivision 4, is amended to
read:
Subd. 4. Public safety plan eligibility
requirements. A disabled member of a
covered retirement plan who has credit for allowable service in a combination
of public safety employee retirement plans is entitled to a combined service
disability benefit if the member:
(1) has become occupationally disabled;
(2) has credit for allowable service in any combination
of public safety employee retirement plans totaling at least one year the
minimum period of service credit required by the applicable retirement plan
with the longest service credit eligibility requirement for the receipt of a
duty-related disability benefit if the disability is duty-related or
totaling at least three years the minimum period of service credit
required by the applicable retirement plan with the longest service credit
eligibility requirement for a disability benefit that is not duty-related if
the disability is not duty-related;
(3) has credit for at least one-half year of allowable
service with the current public safety employee retirement plan before the
commencement of the disability; and
(4) was not receiving a retirement annuity or
disability benefit from any covered public safety employee retirement plan at
the time of the commencement of the disability.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 72.
Minnesota Statutes 2008, section 356.302, subdivision 5, is amended to
read:
Subd. 5. General and public safety plan eligibility
requirements. A disabled member of a
covered retirement plan who has credit for allowable service in a combination
of both a public safety employee retirement plan and general employee
retirement plan must meet the qualifying requirements in subdivisions 3 and 4
to receive a combined service disability benefit from the applicable general
employee and public safety employee retirement plans, except that the person
need only be a member of a covered retirement plan at the time of the
commencement of the disability, that the person must have allowable service
credit for the applicable retirement plan with the longest service credit
eligibility requirement for the receipt of a disability benefit, and that
the minimum allowable service requirements of subdivisions 3, clauses (3) and
(5), and 4, clauses (3) and (4), may be met in any combination of covered
retirement plans.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10673
Sec. 73. Minnesota Statutes 2008, section 356.303,
subdivision 2, is amended to read:
Subd. 2. Entitlement;
eligibility. Notwithstanding any
provision of law to the contrary governing a covered retirement plan, a person
who is the survivor of a deceased member of a covered retirement plan may
receive a combined service survivor benefit from each covered retirement plan
in which the deceased member had credit for at least one-half year of allowable
service if the deceased member:
(1) had credit for
sufficient allowable service in any combination of covered retirement plans to
meet any the minimum allowable service credit requirement of the applicable
covered retirement fund with the longest allowable service credit
requirement for qualification for a survivor benefit or annuity;
(2) had credit for at least
one-half year of allowable service with the most recent covered retirement plan
before the date of death and was an active member of that covered retirement
plan on the date of death; and
(3) was not receiving a
retirement annuity from any covered retirement plan on the date of death.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 74. Minnesota Statutes 2008, section 356.315,
subdivision 5, is amended to read:
Subd. 5. Correctional
plan members. The applicable benefit
accrual rate is 2.4 percent if employed as a correctional state employee
before July 1, 2010, or 2.2 percent if employed as a correctional state
employee after June 30, 2010.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 75. Minnesota Statutes 2009 Supplement, section
356.415, subdivision 1, is amended to read:
Subdivision 1. Annual
postretirement adjustments; generally.
(a) Except as otherwise provided in subdivision 1a, 1b, 1c, 1d,
or 1e, retirement annuity, disability benefit, or survivor benefit
recipients of a covered retirement plan are entitled to a postretirement
adjustment annually on January 1, as follows:
(1) a postretirement
increase of 2.5 percent must be applied each year, effective January 1, to the
monthly annuity or benefit of each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least 12 full months prior to the
January 1 increase; and
(2) for each annuitant or
benefit recipient who has been receiving an annuity or a benefit amount for
at least one full month, an annual postretirement increase of 1/12 of 2.5
percent for each month that the person has been receiving an annuity or
benefit must be applied, effective on January 1 following the calendar
year in which the person has been retired for less than 12 months.
(b) The increases provided
by this section subdivision commence on January 1, 2010.
(c) An increase in annuity
or benefit payments under this section must be made automatically unless
written notice is filed by the annuitant or benefit recipient with the
executive director of the covered retirement plan requesting that the increase
not be made.
(d) The retirement annuity
payable to a person who retires before becoming eligible for Social Security
benefits and who has elected the optional payment as provided in section
353.29, subdivision 6, or 354.35 must be treated as the sum of a period
certain retirement annuity and a life retirement annuity for the purposes of
any postretirement adjustment. The
period certain retirement annuity plus the life retirement annuity must be the
annuity amount
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10674
payable until age
62 for section 353.29, subdivision 6, or age 62, 65, or normal retirement
age, as selected by the member at retirement, for an annuity amount payable
under section 354.35. A
postretirement adjustment granted on the period certain retirement annuity must
terminate when the period certain retirement annuity terminates.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 76.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1a.
Annual postretirement
adjustments; Minnesota State Retirement System plans other than State Patrol
retirement plan. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
legislators retirement plan, the general state employees retirement plan, the
correctional state employees retirement plan, the elected state officers
retirement plan, the unclassified state employees retirement program, and the
judges retirement plan are entitled to a postretirement adjustment annually on
January 1, as follows:
(1) a postretirement increase of two percent must be
applied each year, effective on January 1, to the monthly annuity or benefit of
each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least 18 full months before the January 1 increase; and
(2) for each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least six full months, an annual
postretirement increase of 1/12 of two percent for each month that the person
has been receiving an annuity or benefit must be applied, effective January 1, following
the calendar year in which the person has been retired for at least six months,
but has been retired for less than 18 months.
(b) The increases provided by this subdivision commence
on January 1, 2011. Increases under this
subdivision for the general state employees retirement plan, the correctional
state employees retirement plan, or the judges retirement plan terminate on
December 31 of the calendar year in which the actuarial valuation prepared by
the approved actuary under sections 356.214 and 356.215 and the standards for
actuarial work promulgated by the Legislative Commission on Pensions and
Retirement indicates that the market value of assets of the retirement plan
equals or exceeds 90 percent of the actuarial accrued liability of the retirement
plan and increases under subdivision 1 recommence after that date. Increases under this subdivision for the
legislators retirement plan or the elected state officers retirement plan
terminate on December 31 of the calendar year in which the actuarial valuation
prepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on
Pensions and Retirement indicates that the market value of assets of the
general state employees retirement plan equals or exceeds 90 percent of the
actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.
(c) An increase in annuity or benefit payments under
this subdivision must be made automatically unless written notice is filed by
the annuitant or benefit recipient with the executive director of the
applicable covered retirement plan requesting that the increase not be made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 77.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1b.
Annual postretirement
adjustments; PERA; general employees retirement plan and local government
correctional retirement plan. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
general employees retirement plan of the Public Employees Retirement
Association and the local government correctional service retirement plan are
entitled to a postretirement adjustment annually on January 1, as follows:
(1) for January 1, 2011, and each successive January 1
until funding stability is restored for the applicable retirement plan, a postretirement
increase of one percent must be applied each year, effective on January 1, to
the monthly annuity or benefit amount of each annuitant or benefit recipient
who has been receiving an annuity or benefit for at least 12 full months as of
the current June 30;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10675
(2) for January
1, 2011, and each successive January 1 until funding stability is restored for
the applicable retirement plan, for each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least one full month, but less
than 12 full months as of the current June 30, an annual postretirement
increase of 1/12 of one percent for each month the person has been receiving an
annuity or benefit must be applied;
(3) for each January 1 following the restoration of
funding stability for the applicable retirement plan, a postretirement increase
of 2.5 percent must be applied each year, effective January 1, to the monthly
annuity or benefit amount of each annuitant or benefit recipient who has been
receiving an annuity or benefit for at least 12 full months as of the current
June 30; and
(4) for each January 1 following restoration of funding
stability for the applicable retirement plan, for each annuity or benefit
recipient who has been receiving an annuity or a benefit for at least one full
month, but less than 12 full months as of the current June 30, an annual
postretirement increase of 1/12 of 2.5 percent for each month the person has
been receiving an annuity or benefit must be applied.
(b) Funding stability is restored when the market value
of assets of the applicable retirement plan equals or exceeds 90 percent of the
actuarial accrued liabilities of the applicable plan in the most recent prior
actuarial valuation prepared under section 356.215 and the standards for
actuarial work by the approved actuary retained by the Public Employees
Retirement Association under section 356.214.
(c) If, after applying the increase as provided for in
paragraph (a), clauses (3) and (4), the market value of the applicable
retirement plan is determined in the next subsequent actuarial valuation
prepared under section 356.215 to be less than 90 percent of the actuarial
accrued liability of any of the applicable Public Employees Retirement
Association plans, the increase provided in paragraph (a), clauses (1) and (2),
are to be applied as of the next successive January until funding stability is
again restored.
(d) An increase in annuity or benefit payments under
this section must be made automatically unless written notice is filed by the
annuitant or benefit recipient with the executive director of the Public
Employees Retirement Association requesting that the increase not be made.
(e) The retirement annuity payable to a person who
retires before becoming eligible for Social Security benefits and who has
elected the optional payment, as provided in section 353.29, subdivision 6,
must be treated as the sum of a period-certain retirement annuity and a life
retirement annuity for the purposes of any postretirement adjustment. The period-certain retirement annuity plus
the life retirement annuity must be the annuity amount payable until age 62 for
section 353.29, subdivision 6. A
postretirement adjustment granted on the period-certain retirement annuity must
terminate when the period-certain retirement annuity terminates.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 78.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1c.
Annual postretirement
adjustments; PERA-P&F. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
public employees police and fire retirement plan are entitled to a
postretirement adjustment annually on January 1, as follows:
(1) for January 1, 2011, and for January 1, 2012, for
each annuitant or benefit recipient who has been receiving the annuity or
benefit for at least 12 full months as of the immediate preceding June 30, an
amount equal to one percent in each year;
(2) for January 1, 2011, and for January 1, 2012, for
each annuitant or benefit recipient who has been receiving the annuity or
benefit for at least one full month as of the immediate preceding June 30, an
amount equal to 1/12 of one percent in each year;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10676
(3) for January
1, 2013, and each successive January 1 that follows the loss of funding
stability as defined under paragraph (b) until funding stability as defined
under paragraph (b) is again restored, for each annuitant or benefit recipient
who has been receiving the annuity or benefit for at least 12 full months as of
the immediate preceding June 30, an amount equal to 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 between the immediate preceding June 30 and the June 30
occurring 12 months previous, but not to exceed 1.5 percent;
(4) for January 1, 2013, and each successive January 1
that follows the loss of funding stability as defined under paragraph (b) until
funding stability as defined under paragraph (b) is again restored, for each
annuitant or benefit recipient who has been receiving the annuity or benefit
for at least one full month as of the immediate preceding June 30, an amount
equal to 1/12 of 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 between the immediate
preceding June 30 and the June 30 occurring 12 months previous for each full
month of annuity or benefit receipt, but not to exceed 1/12 of 1.5 percent for
each full month of annuity or benefit receipt;
(5) for each January 1 following the restoration of
funding stability as defined under paragraph (b) and during the continuation of
funding stability as defined under paragraph (b), for each annuitant or benefit
recipient who has been receiving the annuity or benefit for at least 12 full
months as of the immediate preceding June 30, an amount equal to 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 between the immediate preceding June 30 and
the June 30 occurring 12 months previous, but not to exceed 2.5 percent; and
(6) for each January 1 following the restoration of
funding stability as defined under paragraph (b) and during the continuation of
funding stability as defined under paragraph (b), for each annuitant or benefit
recipient who has been receiving the annuity or benefit for at least one full
month as of the immediate preceding June 30, an amount equal to 1/12 of 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 between the immediate preceding June 30
and the June 30 occurring 12 months previous for each full month of annuity or
benefit receipt, but not to exceed 1/12 of 2.5 percent for each full month of annuity
or benefit receipt.
(b) Funding stability is restored when the market
value of assets of the public employees police and fire retirement plan equals
or exceeds 90 percent of the actuarial accrued liabilities of the applicable
plan in the most recent prior actuarial valuation prepared under section
356.215 and under the standards for actuarial work of the Legislative
Commission on Pensions and Retirement by the approved actuary retained by the
Public Employees Retirement Association under section 356.214.
(c) An increase in annuity or benefit payments under
this section must be made automatically unless written notice is filed by the
annuitant or benefit recipient with the executive director of the Public
Employees Retirement Association requesting that the increase not be made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 79.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1d.
Teachers Retirement Association
annual postretirement adjustments. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
Teachers Retirement Association are entitled to a postretirement adjustment
annually on January 1, as follows:
(1) for January 1, 2011, and January 1, 2012, no
postretirement increase is payable;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10677
(2) for January
1, 2013, and each successive January 1 until funding stability is restored, a
postretirement increase of two percent must be applied each year, effective on
January 1, to the monthly annuity or benefit amount of each annuitant or
benefit recipient who has been receiving an annuity or a benefit for at least
18 full months prior to the January 1 increase;
(3) for January 1, 2013, and each successive January 1
until funding stability is restored, for each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least six full months, an
annual postretirement increase of 1/12 of two percent for each month the person
has been receiving an annuity or benefit must be applied, effective January 1,
following the year in which the person has been retired for less than 12
months;
(4) for each January 1 following the restoration of
funding stability, a postretirement increase of 2.5 percent must be applied
each year, effective January 1, to the monthly annuity or benefit amount of
each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least 18 full months prior to the January 1 increase; and
(5) for each January 1 following the restoration of
funding stability, for each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least six full months, an annual
postretirement increase of 1/12 of 2.5 percent for each month the person has
been receiving an annuity or benefit must be applied, effective January 1,
following the year in which the person has been retired for less than 12
months.
(b) Funding stability is restored when the market value
of assets of the Teachers Retirement Association equals or exceeds 90 percent
of the actuarial accrued liabilities of the Teachers Retirement Association in the
most recent prior actuarial valuation prepared under section 356.215 and the
standards for actuarial work by the approved actuary retained by the Teachers
Retirement Association under section 356.214.
(c) An increase in annuity or benefit payments under
this section must be made automatically unless written notice is filed by the
annuitant or benefit recipient with the executive director of the Teachers
Retirement Association requesting that the increase not be made.
(d) The retirement annuity payable to a person who
retires before becoming eligible for Social Security benefits and who has
elected the optional payment as provided in section 354.35 must be treated as
the sum of a period-certain retirement annuity and a life retirement annuity
for the purposes of any postretirement adjustment. The period-certain retirement annuity plus
the life retirement annuity must be the annuity amount payable until age 62,
65, or normal retirement age, as selected by the member at retirement, for an
annuity amount payable under section 354.35.
A postretirement adjustment granted on the period-certain retirement
annuity must terminate when the period-certain retirement annuity terminates.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 80.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1e.
Annual postretirement
adjustments; State Patrol retirement plan.
(a) Retirement annuity, disability benefit, or survivor benefit recipients
of the State Patrol retirement plan are entitled to a postretirement adjustment
annually on January 1, as follows:
(1) a postretirement increase of 1.5 percent must be
applied each year, effective on January 1, to the monthly annuity or benefit of
each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least 18 full months before the January 1 increase; and
(2) for each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least six full months, an annual
postretirement increase of 1/12 of 1.5 percent for each month that the person
has been receiving an annuity or benefit must be applied, effective January 1,
following the calendar year in which the person has been retired for at least
six months, but has been retired for less than 18 months.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10678
(b) The
increases provided by this subdivision commence on January 1, 2011. Increases under this subdivision for the
State Patrol retirement plan terminate on December 31 of the calendar year in
which the actuarial valuation prepared by the approved actuary under sections
356.214 and 356.215 and the standards for actuarial work promulgated by the
Legislative Commission on Pensions and Retirement indicates that the market
value of assets of the retirement plan equals or exceeds 90 percent of the
actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.
(c) An increase in annuity or benefit payments under
this subdivision must be made automatically unless written notice is filed by
the annuitant or benefit recipient with the executive director of the
applicable covered retirement plan requesting that the increase not be made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 81.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 3.
Actuarial valuation reports
until funding is stabilized. Notwithstanding
any provision of section 356.215, subdivision 8, to the contrary, until the
actuarial valuations, prepared annually by the approved actuary under sections
356.214 and 356.215 and the standards for actuarial work promulgated by the
Legislative Commission on Pensions and Retirement, indicate that the market
value of assets of the applicable covered plans equals or exceeds 90 percent of
the actuarial accrued liabilities, the actuarial valuation reports must utilize
a postretirement interest rate assumption that is equal to the difference
between the preretirement interest rate assumption provided in section 356.215,
subdivision 8, and the stated annual postretirement adjustment rate provided
under this section, as applicable to each covered plan.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 82.
Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to
read:
Subd. 3. Payment.
(a) Beginning one year after the reemployment withholding period
ends relating to the reemployment that gave rise to the limitation, and the filing
of a written application, the retired member is entitled to the payment, in a
lump sum, of the value of the person's amount under subdivision 2, plus annual
compound interest at. For
the general state employees retirement plan, the correctional state employees
retirement plan, the general employees retirement plan of the Public Employees
Retirement Association, the public employees police and fire retirement plan,
the local government correctional employees retirement plan, and the teachers
retirement plan, the annual interest rate is six percent from the date on which
the amount was deducted from the retirement annuity to the date of payment or
until January 1, 2011, whichever is earlier, and no interest after January 1,
2011. For the Duluth Teachers Retirement
Fund Association, the annual interest is six percent from the date on which the
amount was deducted from the retirement annuity to the date of payment or until
June 30, 2010, whichever is earlier, and no interest after June 30, 2010. For the St. Paul Teachers Retirement
Fund Association, the annual interest is the compound annual rate of
six percent from the date that the amount was deducted from the retirement
annuity to the date of payment.
(b) The written application must be on a form prescribed
by the chief administrative officer of the applicable retirement plan.
(c) If the retired member dies before the payment
provided for in paragraph (a) is made, the amount is payable, upon written
application, to the deceased person's surviving spouse, or if none, to the
deceased person's designated beneficiary, or if none, to the deceased person's
estate.
(d) In lieu of the direct payment of the person's
amount under subdivision 2, on or after the payment date under paragraph (a),
if the federal Internal Revenue Code so permits, the retired member may elect
to have all or any portion of the payment amount under this section paid in the
form of a direct rollover to an eligible retirement plan
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10679
as defined in
section 402(c) of the federal Internal Revenue Code that is specified by the
retired member. If the retired member
dies with a balance remaining payable under this section, the surviving spouse
of the retired member, or if none, the deceased person's designated
beneficiary, or if none, the administrator of the deceased person's estate may
elect a direct rollover under this paragraph.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 83.
Minnesota Statutes 2009 Supplement, 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 and 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 50 percent
of the amounts derived under this paragraph to the Teachers Retirement
Association, ten percent to the Duluth Teachers Retirement Fund Association,
and 40 percent to the St. Paul Teachers Retirement Fund Association to
fund the unfunded actuarial accrued liabilities of the respective funds. These payments shall be made on or before
June 30 each fiscal year. If the
St. Paul Teachers Retirement Fund Association becomes 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) Special School District No. 1, Minneapolis, and the
city of Minneapolis must each make contributions to the 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.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10680
(e) (d) Thirty percent
of the difference between $5,720,000 and the current year amortization aid and
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.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 84. LOCAL
RETIREMENT FUND INVESTMENT AUTHORITIES STUDY.
A study
group consisting of representatives from pension plans subject to Minnesota
Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the state
auditor to study investment-related provisions, authorities, and limitations
under Minnesota Statutes, chapter 356A, and related sections of other
chapters. Administrative support for the
study group shall be provided by the state auditor. The study group shall prepare a report to
include an assessment of the effectiveness of current statutory prescriptions,
options for change, and recommendations for consideration by the governor and
the legislature during the 2011 legislative session. The report will be provided no later than
January 15, 2011, to the executive director of the Legislative Commission on
Pensions and Retirement, the chair and ranking minority caucus member of the
senate State and Local Government Operations and Oversight Committee, and the
chair and ranking minority caucus member of the house State and Local
Government Operations Reform, Technology and Elections Committee.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 85. BYLAW
AUTHORIZATION.
Consistent
with the requirements of Minnesota Statutes, section 354A.12, subdivision 4,
the board of the Duluth Teachers Retirement Fund Association is authorized to
revise the bylaws or articles of incorporation so that the requirements of this
act apply to the old law coordinated program.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 86. REPEALER.
Minnesota
Statutes 2008, section 354A.27, subdivision 1, is repealed.
EFFECTIVE DATE. This section
is effective July 1, 2010.
ARTICLE 2
MSRS
ADMINISTRATIVE PROVISIONS
Section
1. Minnesota Statutes 2008, 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 Minnesota Crop Improvement Association;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10681
(4) employees of
the adjutant general who whose salaries are paid from federal
funds and who are not covered by any federal civilian employees retirement
system;
(5)
employees of the Minnesota State Colleges and Universities who are
employed under the university or college activities program;
(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);
(7)
employees of the legislature who are 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;
(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;
(9)
employees of the Minnesota Safety Council;
(10) any
employees who are on authorized leave of absence from the Transit
Operating Division of the former Metropolitan Transit Commission and who
are employed by the labor organization which is the exclusive bargaining agent
representing employees of the Transit Operating Division;
(11)
employees of the Metropolitan Council, Metropolitan Parks and Open Space
Commission, Metropolitan Sports Facilities Commission, or Metropolitan
Mosquito Control Commission, or Metropolitan Radio Board unless excluded
under subdivision 2b or are covered by another public pension
fund or plan under section 473.415, subdivision 3;
(12) judges
of the Tax Court;
(13)
personnel who were 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;
(14) personnel
who are employed as seasonal help employees in the classified
or unclassified service employed by the Department of Revenue;
(15)
persons who are 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;
(16)
employees of the University of Minnesota unless excluded under subdivision 2b,
clause (3);
(17)
employees of the Middle Management Association whose employment began after
July 1, 2007, and to whom section 352.029 does not apply; and
(18)
employees of the Minnesota Government Engineers Council to whom section 352.029
does not apply.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10682
(b) Employees
specified in paragraph (a), clause (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 following final enactment.
Sec. 2. Minnesota Statutes 2008, section 352.03,
subdivision 4, is amended to read:
Subd. 4. Duties
and powers of board of directors. (a)
The board shall:
(1) elect a
chair;
(2) appoint
an executive director;
(3)
establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, and
490 and transact the business of the system, subject to the limitations of law;
(4)
consider and dispose of, or take any other action the board of directors deems
appropriate concerning, denials of applications for annuities or
disability benefits under this chapter, chapter 3A, 352B, 352C, 352D, or
490, and complaints of employees and others pertaining to the retirement of
employees and the operation of the system;
(5) oversee
the administration of the state deferred compensation plan established
in section 352.965; and
(6) oversee
the administration of the health care savings plan established in section
352.98.
(b) The
board shall advise the director on any matters relating to the system and
carrying out functions and purposes of this chapter. The board's advice shall control.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2008, section 352.04,
subdivision 9, is amended to read:
Subd. 9. Erroneous
deductions, canceled warrants. (a) Deductions
taken from the salary of an employee for the retirement fund in error excess
of required amounts must, upon discovery and verification by the department
making the deduction, be refunded to the employee.
(b) If a
deduction for the retirement fund is taken from a salary warrant or check, and
the check is canceled or the amount of the warrant or check returned to the
funds of the department making the payment, the sum deducted, or the part of it
required to adjust the deductions, must be refunded to the department or
institution if the department applies for the refund on a form furnished by the
director. The department's payments must
likewise be refunded to the department.
(c) Employee
deductions and employer contributions taken in error may be directly
transferred, without interest, to another Minnesota public employee retirement
plan by which the employee is actually covered.
For purposes
of this subdivision, a Minnesota public pension plan means a plan specified in
section 356.30, subdivision 3, or the plan governed by chapter 354B.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10683
(c) If erroneous
employee deductions and employer contributions are caused by an error in plan
coverage involving the plan and any other plans specified in section 356.99,
that section applies. If the employee
should have been covered by the plan governed by chapter 352D, 353D, 354B, or
354D, the employee deductions and employer contributions taken in error must be
directly transferred to the applicable employee's account in the correct
retirement plan, with interest at the rate of 0.71 percent per month,
compounded annually, from the first day of the month following the month in
which coverage should have commenced in the correct defined contribution plan
until the end of the month in which the transfer occurs.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 4. Minnesota Statutes 2008, section 352.115,
subdivision 10, is amended to read:
Subd. 10. Reemployment
of annuitant. (a) Except for
salary or wages received as a temporary employee of the legislature during a
legislative session, if any retired employee again becomes entitled to
receive salary or wages from the state, or any employer who employs
state employees as that term is defined in section 352.01, subdivision 2, other
than salary or wages received as a temporary employee of the legislature during
a legislative session in a position covered by this chapter, the
annuity or retirement allowance shall must cease when the retired
employee has earned an amount equal to the annual maximum earnings allowable
for that age for the continued receipt of full benefit amounts monthly under
the federal old age, survivors, and disability insurance program as set by the
secretary of health and human services under United States Code, title 42,
section 403, in any calendar year. If
the retired employee has not yet reached the minimum age for the receipt of
Social Security benefits, the maximum earnings for the retired employee shall
be are equal to the annual maximum earnings allowable for the
minimum age for the receipt of Social Security benefits.
(b) The
balance of the annual retirement annuity after cessation must be handled or
disposed of as provided in section 356.47.
(c) The
annuity must be resumed when state service ends, or, if the retired employee is
still employed at the beginning of the next calendar year, at the beginning of
that calendar year, and payment must again end when the retired employee has
earned the applicable reemployment earnings maximum specified in this subdivision. If the retired employee is granted a sick
leave without pay, but not otherwise, the annuity or retirement allowance must
be resumed during the period of sick leave.
(d) No
payroll deductions for the retirement fund may be made from the earnings of a
reemployed retired employee.
(e) No
change shall may be made in the monthly amount of an annuity or
retirement allowance because of the reemployment of an annuitant.
(f) If a
reemployed annuitant whose annuity is suspended under paragraph (a) is having
insurance premium amounts withheld under section 356.87, subdivision 2,
insurance premium amounts must continue to be withheld and transferred from the
suspended portion of the annuity. The
balance of the annual retirement annuity after cessation, after deduction of
the insurance premium amounts, must be treated as specified in paragraph (b).
EFFECTIVE DATE. This section
is effective January 1, 2010.
Sec. 5. Minnesota Statutes 2008, section 352.91, is
amended by adding a subdivision to read:
Subd. 6. Correction
of plan coverage errors. If
erroneous employee deductions and employer contributions are caused by an error
in plan coverage involving the correctional state employees retirement plan and
any other plan specified in section 356.99, that section applies.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10684
Sec. 6. Minnesota Statutes 2008, section 352.965,
subdivision 1, is amended to read:
Subdivision 1. Establishment. (a) The Minnesota state deferred
compensation plan is established. For
purposes of this section, "plan" means the Minnesota state
deferred compensation plan, unless the context clearly indicates
otherwise. The Minnesota State
Retirement System shall administer the plan.
(b) The purpose of the plan
is to provide a means for a public employee to contribute a portion of the
employee's compensation to a tax-deferred investment account. The plan is an eligible tax-deferred
compensation plan under section 457(b) of the Internal Revenue Code, United
States Code, title 26, section 457(b), and the applicable regulations under
Code of Federal Regulations, title 26, parts 1.457-3 to 1.457-10.
(c) The board of directors
of the Minnesota State Retirement System is the plan trustee and plan
sponsor. The board's executive
director is the plan administrator.
Fiduciary activities of the plan must be undertaken in a manner
consistent with chapter 356A.
(d) The executive director,
with the approval of the board of directors, shall adopt and amend, as required
to maintain tax-qualified status, a written plan document specifying the
material terms and conditions for eligibility, benefits, applicable
limitations, and the time and form under which benefit distributions can be
made. With the approval of the board of
directors, the executive director may also establish policies and procedures
necessary for the administration of the deferred compensation plan.
(e) The plan document shall
must include provisions that are necessary to cause the plan to be an
eligible deferred compensation plan within the meaning of section 457(b) of the
Internal Revenue Code. The plan document
may provide additional administrative and substantive provisions consistent
with state law, provided that those provisions will do not
cause the plan to fail to be an eligible deferred compensation plan within the
meaning of section 457(b) of the Internal Revenue Code and may include
provisions for certain optional features and services.
(f) The board of directors
may authorize the executive director to establish and administer a Roth 457
plan if authorized by the Internal Revenue Code or a Roth individual retirement
account as defined under section 408A of the Internal Revenue Code.
(g) All amounts contributed
to the deferred compensation plan and all earnings on those amounts must be
held in trust, in custodial accounts, or in qualifying annuity contracts for
the exclusive benefit of the plan participants and beneficiaries, as required
by section 457(g) of the Internal Revenue Code and in accordance with sections
356.001 and 356A.06, subdivision 1.
(h) The information and data
maintained in the accounts of the participants and beneficiaries are private
data and shall must not be disclosed to anyone other than the
participant or beneficiary pursuant to a court order or pursuant to
under section 356.49.
(i) The plan document is not
subject to the rule adoption process under the Administrative Procedures Act,
including section 14.386, but must conform with applicable federal and state
laws.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 7. Minnesota Statutes 2008, section 352.965,
subdivision 2, is amended to read:
Subd. 2. Right
to participate in deferred compensation plan.
(a) At the request of an officer or employee of the state, an
officer or employee of a political subdivision, or an employee covered by a
retirement fund in section 356.20, subdivision 2, the appointing authority
shall defer the payment of part of the compensation of the public officer or
employee through payroll deduction.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10685
(b) The amount to be deferred
must be as provided in a written an agreement between the officer
or employee and the public employer plan sponsor. The agreement must be in a form specified by
the executive director of the Minnesota State Retirement System and must be
consistent with the requirements for an eligible plan under federal and state
tax laws, regulations, and rulings.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 8. Minnesota Statutes 2009 Supplement, section
352B.011, subdivision 3, is amended to read:
Subd. 3. Allowable
service. (a) "Allowable
service" means:
(1) service in a month
during which a member is paid a salary from which a member contribution is
deducted, deposited, and credited in the State Patrol retirement fund;
(2) for members defined in
subdivision 10, clause (1), service in any month for which payments have been
made to the State Patrol retirement fund under law; and
(3) for members defined in
subdivision 10, clauses (2) and (3), service for which payments have been made
to the State Patrol retirement fund under law, service for which payments were
made to the State Police officers retirement fund under law after June 30,
1961, and all prior service which was credited to a member for service on or
before June 30, 1961.;
(4) any period of authorized
leave of absence without pay that does not exceed one year and for which the
employee obtains credit by payment to the fund under section 352B.013; and
(5) eligible periods of
uniformed service for which the member obtained service credit by payment under
section 352B.086 to the fund.
(b) Allowable service also
includes any period of absence from duty by a member who, by reason of injury
incurred in the performance of duty, is temporarily disabled and for which
disability the state is liable under the workers' compensation law, until the
date authorized by the executive director for commencement of payment of a
disability benefit or until the date of a return to employment.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 9. [352B.013]
AUTHORIZED LEAVE OF ABSENCE SERVICE CREDIT PURCHASE PROCEDURE.
Subdivision 1. Application. This section specifies the procedure
for purchasing service credit in the State Patrol retirement plan for authorized
leaves of absence under section 352B.011, subdivision 3, unless an alternative
payment procedure is specified in law for a particular form of leave or break
in service.
Subd. 2. Purchase
procedure. (a) An employee
covered by the plan specified in this chapter may purchase credit for allowable
service in the 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 date the employee returned
to work following the authorized leave, the payment amount is equal to the employee
and employer contribution rates specified in section 352B.02 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
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10686
is eligible for
allowable service credit. The payment
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. If payment is received
by the executive director after one year from the date the employee returned to
work following the authorized leave, the payment amount is the amount
determined under section 356.551.
Payment under this paragraph must be made before the date of termination
from public employment covered under this chapter.
(c) If the employee
terminates employment covered by this chapter during the leave or following the
leave rather than returning to covered employment, payment must be received by
the executive director within 30 days after the termination date. The payment amount is equal to the employee
and employer contribution rates specified in section 352B.02 on the day prior
to the termination date, multiplied by the employee's hourly rate of salary on
that date and by the days and months of the leave of absence prior to termination.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2008, section 352B.02, is
amended by adding a subdivision to read:
Subd. 3. Correction
of plan coverage errors. If
erroneous employee deductions and employer contributions are caused by an error
in plan coverage involving the State Patrol retirement plan and any other plan
specified in section 356.99, that section applies.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 11.
Minnesota Statutes 2008, section 353.27,
subdivision 7a, is amended to read:
Subd. 7a. Deductions
or contributions transmitted by error. (a)
If employee deductions and employer contributions were erroneously transmitted
to the association, but should have been transmitted to another Minnesota
public pension a plan covered by chapter 352D, 353D, 354B, or
354D, the executive director shall transfer the erroneous employee
deductions and employer contributions to the appropriate retirement fund or
individual account, as applicable, without interest. The time limitations specified in
subdivisions 7 and 12 do not apply. The
transfer to the applicable defined contribution plan account must include
interest at the rate of 0.71 percent per month, compounded annually, from
the first day of the month following the month in which coverage should have
commenced in the defined contribution plan until the end of the month in which
the transfer occurs.
(b) For
purposes of this subdivision, a Minnesota public pension plan means a plan
specified in section 356.30, subdivision 3, or the plans governed by chapters
353D and 354B.
(c) (b) A
potential transfer under paragraph (a) that is reasonably determined to cause
the plan to fail to be a qualified plan under section 401(a) of the federal
Internal Revenue Code, as amended, must not be made by the executive director
of the association. Within 30 days after
being notified by the Public Employees Retirement Association of an unmade potential
transfer under this paragraph, the employer of the affected person must
transmit an amount representing the applicable salary deductions and employer
contributions, without interest, to the retirement fund of the appropriate
Minnesota public pension plan, or to the applicable individual account if the
proper coverage is by a defined contribution plan. The association must provide the employing
unit a credit for the amount of the erroneous salary deductions and employer
contributions against future contributions from the employer. If the employing unit receives a credit under
this paragraph, the employing unit is responsible for refunding to the
applicable employee any amount that had been erroneously deducted from the
person's salary.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10687
(c) If erroneous
employee deductions and employer contributions reflect a plan coverage error
involving any Public Employees Retirement Association plan specified in section
356.99 and any other plan specified in that section, section 356.99 applies.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 12. Minnesota Statutes 2008, section 353.37,
subdivision 3a, is amended to read:
Subd. 3a. Disposition
of suspension or reduction amount. (a)
The balance of the annual retirement annuity after suspension or the amount
of the retirement annuity reduction must be handled or disposed of as provided
in section 356.47.
(b) If a
reemployed annuitant whose annuity is suspended is having insurance premium
amounts withheld under section 356.87, subdivision 2, insurance premium amounts
must continue to be withheld and transferred from the suspended portion of the
annuity. The balance of the annual retirement
annuity after cessation, after deduction of the insurance premium amounts, must
be treated as specified in paragraph (a).
EFFECTIVE DATE. This
section is effective January 1, 2010.
Sec. 13. Minnesota Statutes 2008, section 354.42,
subdivision 7, is amended to read:
Subd. 7. Erroneous
salary deductions or direct payments. (a)
Any deductions taken from the salary of an employee for the retirement
fund in error excess of amounts required must be refunded to the
employee upon the discovery of the error and after the verification of the
error by the employing unit making the deduction. The corresponding excess employer
contribution and excess additional employer contribution amounts
attributable to the erroneous salary deduction must be refunded to the
employing unit.
(b) If
salary deductions and employer contributions were erroneously transmitted to
the retirement fund and should have been transmitted to another Minnesota
public pension the plan covered by chapter 352D, 353D, 354B, or
354D, the executive director must transfer these salary deductions and
employer contributions to the account of the appropriate public
pension fund without interest. For
purposes of this paragraph, a Minnesota public pension plan means a plan
specified in section 356.30, subdivision 3, or the plan governed by chapter
354B. person under the applicable
plan. The transfer to the applicable
defined contribution plan account must include interest at the rate of 0.71
percent per month, compounded annually, from the first day of the month
following the month in which coverage should have commenced in the defined
contribution plan until the end of the month in which the
transfer occurs.
(c) A
potential transfer under paragraph (b) that would cause the plan to fail to be a
qualified plan under section 401(a) of the Internal Revenue Code, as amended,
must not be made by the executive director.
Within 30 days after being notified by the Teachers Retirement
Association of an unmade potential transfer under this paragraph, the employer
of the affected person must transmit an amount representing the applicable
salary deductions and employer contributions, without interest, to the retirement
fund of the appropriate Minnesota public pension plan fund account of
the applicable person under the appropriate plan. The retirement association must provide a
credit for the amount of the erroneous salary deductions and employer
contributions against future contributions from the employer.
(d) If a
salary warrant or check from which a deduction for the retirement fund was
taken has been canceled or the amount of the warrant or if a check has been
returned to the funds of the employing unit making the payment, a refund of the
amount deducted, or any portion of it that is required to adjust the salary
deductions, must be made to the employing unit.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10688
(e) Erroneous
direct payments of member-paid contributions or erroneous salary deductions
that were not refunded during the regular payroll cycle processing must be
refunded to the member, plus interest computed using the rate and method
specified in section 354.49, subdivision 2.
(f) Any refund under this
subdivision that would cause the plan to fail to be a qualified plan under
section 401(a) of the Internal Revenue Code, as amended, may not be refunded
and instead must be credited against future contributions payable by the
employer. The employer is responsible
for refunding to the applicable employee any amount that was erroneously
deducted from the salary of the employee, with interest as specified in
paragraph (e).
(g) If erroneous employee
deductions and employer contributions are caused by an error in plan coverage
involving the plan and any other plan specified in section 356.99, that section
applies.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 14. Minnesota Statutes 2008, section 354A.12, is
amended by adding a subdivision to read:
Subd. 6a. Erroneous
salary deductions or direct payments.
If erroneous employee deductions and employer contributions
reflect a plan coverage error involving any plan covered by this chapter and
any plan specified in section 356.99, that section applies.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 15. Minnesota Statutes 2008, section 356.24,
subdivision 1, is amended to read:
Subdivision 1. Restriction;
exceptions. (a) It is
unlawful for a school district or other governmental subdivision or state
agency to levy taxes for, or to contribute public funds to a
supplemental pension or deferred compensation plan that is established,
maintained, and operated in addition to a primary pension program for the
benefit of the governmental subdivision employees other than:
(1) to a supplemental
pension plan that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides
solely for group health, hospital, disability, or death benefits;
(3) to the individual
retirement account plan established by chapter 354B;
(4) to a plan that provides
solely for severance pay under section 465.72 to a retiring or terminating
employee;
(5) for employees other than
personnel employed by the Board of Trustees of the Minnesota State Colleges and
Universities and covered under the Higher Education Supplemental Retirement
Plan under chapter 354C, but including city managers covered by an alternative
retirement arrangement under section 353.028, subdivision 3, paragraph (a), or
by the defined contribution plan of the Public Employees Retirement Association
under section 353.028, subdivision 3, paragraph (b), if the supplemental plan
coverage is provided for in a personnel policy of the public employer or in the
collective bargaining agreement between the public employer and the exclusive
representative of public employees in an appropriate unit or in the individual
employment contract between a city and a city manager, and if for each
available investment all fees and historic rates of return for the prior one-,
three-, five-, and ten-year periods, or since inception, are disclosed in an
easily comprehended document not to exceed two pages, in an amount matching
employee contributions on a dollar for dollar basis, but not to exceed an
employer contribution of one-half of the available elective deferral permitted
per year per employee, under the Internal Revenue Code:
(i) to the state of
Minnesota deferred compensation plan under section 352.965;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10689
(ii) in payment of
the applicable portion of the contribution made to any investment eligible
under section 403(b) of the Internal Revenue Code, if the employing unit has
complied with any applicable pension plan provisions of the Internal Revenue
Code with respect to the tax-sheltered annuity program during the preceding
calendar year; or
(iii) any
other deferred compensation plan offered by the employer under section 457 of
the Internal Revenue Code;
(6) for
personnel employed by the Board of Trustees of the Minnesota State Colleges and
Universities and not covered by clause (5), to the supplemental retirement plan
under chapter 354C, if the supplemental plan coverage is provided for in a
personnel policy or in the collective bargaining agreement of the public
employer with the exclusive representative of the covered employees in an
appropriate unit, in an amount matching employee contributions on a dollar for
dollar basis, but not to exceed an employer contribution of $2,700 a year for
each employee;
(7) to a
supplemental plan or to a governmental trust to save for postretirement health
care expenses qualified for tax-preferred treatment under the Internal Revenue
Code, if the supplemental plan coverage is provided for in a personnel policy
or in the collective bargaining agreement of a public employer with the
exclusive representative of the covered employees in an appropriate unit;
(8) to the
laborers national industrial pension fund or to a laborers local pension fund
for the employees of a governmental subdivision who are covered by a collective
bargaining agreement that provides for coverage by that fund and that sets
forth a fund contribution rate, but not to exceed an employer contribution of
$5,000 per year per employee;
(9) to the
plumbers and pipefitters national pension fund or to a plumbers and pipefitters
local pension fund for the employees of a governmental subdivision who are
covered by a collective bargaining agreement that provides for coverage by that
fund and that sets forth a fund contribution rate, but not to exceed an
employer contribution of $5,000 per year per employee;
(10) to the
international union of operating engineers pension fund for the employees of a
governmental subdivision who are covered by a collective bargaining agreement
that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $5,000 per year per
employee;
(11) to a
supplemental plan organized and operated under the federal Internal Revenue
Code, as amended, that is wholly and solely funded by the employee's
accumulated sick leave, accumulated vacation leave, and accumulated severance
pay;
(12) to the
International Association of Machinists national pension fund for the employees
of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund
contribution rate, but not to exceed an employer contribution of $5,000 per
year per employee; or
(13) for
employees of United Hospital District, Blue Earth, to the state of Minnesota
deferred compensation program, if the employee makes a contribution, in an
amount that does not exceed the total percentage of covered salary under
section 353.27, subdivisions 3 and 3a.
(b) No
governmental subdivision may make a contribution to a deferred compensation plan
operating under section 457 of the Internal Revenue Code for volunteer or
emergency on-call firefighters in lieu of providing retirement coverage under
the federal Old Age, Survivors, and Disability Insurance Program.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10690
Sec. 16. Minnesota Statutes 2008, section 356.50,
subdivision 4, is amended to read:
Subd. 4. Annuity
repayment. Notwithstanding
subdivisions 1 and 2, if after being discharged, the person commences receipt
of an annuity from the applicable plan, and it is later determined that the
person was wrongfully discharged, the person shall repay the annuity received
in a lump sum within 60 days of receipt of the back pay award. If the annuity is not repaid, the person
is not entitled to reinstatement in the applicable plan as an active member,
the person is not authorized to make payments under subdivision 2, paragraph
(a), and, for subsequent employment with the employer, the person shall be
treated as a reemployed annuitant.
EFFECTIVE DATE. This section
is effective the day following final enactment.
CORRECTION OF
PLAN COVERAGE ERRORS
Sec. 17. [356.99]
CORRECTION OF ERRONEOUS DEFINED BENEFIT PLAN COVERAGE.
Subdivision
1. Definitions. (a)
For purposes of this section, the terms in paragraphs (b) to (e) have the
meanings given them.
(b) "Chief
administrative officer" means the person selected or elected by the
governing board of a covered pension plan with primary responsibility to
administer the covered pension plan, or that person's designee or
representative.
(c)
"Covered pension plan" means a plan enumerated in section 356.30,
subdivision 3, except clauses (3), (5), (6), and (11).
(d)
"Governing board" means the governing board of the Minnesota State
Retirement System, the Public Employees Retirement Association, the Teachers Retirement
Association, the Duluth Teachers Retirement Fund Association, or the
St. Paul Teachers Retirement Fund Association.
(e)
"Member" means an active plan member in a covered pension plan.
Subd. 2. Treatment
of terminated employee coverage error. Any person who terminated the
erroneously covered service before a chief administrative officer determined
the covered pension plan coverage was in error retains the coverage with the
plan that originally credited the service.
Subd. 3. Active
employee correction of prospective service coverage. Upon determination by a chief
administrative officer that a member is covered by the wrong pension plan, the
employer must stop remitting the erroneous employee deductions and employer
contributions and report the employee to the correct covered pension plan for
all subsequent service.
Subd. 4. Active
employee treatment of past service. Any
plan member, with past service credited in an erroneous plan, retains the
coverage for that past service with the plan that originally credited that
service if the reporting error began earlier than two fiscal years prior to the
current fiscal year in which the error was determined by the chief
administrative officer. If the reporting
error began within two fiscal years prior to the current fiscal year, the
pension plan coverage for that past service must be corrected as provided in
subdivision 5.
Subd. 5. Past
service transfer procedure. (a)
For cases under subdivision 4 requiring correction of prior service coverage,
on behalf of the applicable member the chief administrative officer of the
covered pension plan fund that has received erroneous employee deductions and
employer contributions must transfer to the appropriate covered retirement plan
fund an amount which is the lesser of all contributions made by or on behalf of
the member for the period of erroneous membership, or the specific amount
requested by the chief administrative officer of the other covered pension plan
which represents the employee deductions and employer contributions that would
have been made had the member been properly reported.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10691
(b) If excess
employee deductions remain in the member's account after the transfer of funds,
the remaining erroneous amount must be refunded to the person with interest at
the rate provided under the general refund law of the applicable covered
pension plan. The chief administrative
officer must also return any remaining excess employer contributions by
providing to the employer a credit against future contributions payable by that
employer.
(c) If the contributions
transferred to the correct covered pension plan fund are less than the amounts
required for the period being corrected, the chief administrative officer of
the correct covered pension plan fund must collect the remaining employee
deductions and employer contributions from the employer under laws for
recovering deficient contributions applicable to the correct covered pension
plan, except that no interest is chargeable if the additional amounts due under
this paragraph are received by the chief administrative officer within 30 days
of notifying the employer of the amount due.
(d) A
potential transfer under this section that would cause a plan to fail to be a
qualified plan under section 401(a) of the Internal Revenue Code, as amended,
must not be made. Within 30 days after
being notified by a chief administrative officer of an unmade potential
transfer under this section, the employer of the member must transmit an amount
representing the applicable salary deductions and employer contributions,
without interest, to the fund of the appropriate covered pension plan. The chief administrative officer of the
covered pension plan which erroneously provided coverage must provide to the
employer a credit for the amount of the erroneous salary deductions and
employer contributions against future contributions from that employer.
(e) Upon
transfer of the required assets, or payment from the employer under paragraph
(d), whichever is applicable, allowable service and salary credit for the
period being transferred is forfeited in the erroneous plan and is granted in
the correct plan.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 18. Minnesota Statutes 2008, section 490.123, is
amended by adding a subdivision to read:
Subd. 4. Correction
of contribution errors. (a)
If erroneous employee deductions and employer contributions are caused by an
error in plan coverage involving the judges retirement plan and any other plan
specified in section 356.99, that section applies.
(b) The
provisions of section 352.04, subdivisions 8 and 9, apply to the judges'
retirement plan, except that if employee deductions or contributions are
erroneously transmitted to the judges' retirement fund for service rendered
after the service credit limit under section 490.121, subdivision 22, has been
attained, consistent with section 352D.04, subdivision 2, no employer
contributions may be transferred.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 19. REPEALER.
Minnesota
Statutes 2008, sections 352.91, subdivision 5; and 353.88, are repealed.
EFFECTIVE DATE. This
section is effective July 1, 2010.
ARTICLE 3
MINNESOTA
STATE DEFERRED COMPENSATION PLAN AMENDMENTS
Section
1. Minnesota Statutes 2008, section
352.965, subdivision 6, is amended to read:
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10692
Subd. 6. Plan
administrative expenses. (a) The reasonable
and necessary administrative expenses of the deferred compensation plan may be
charged to plan participants in the form of an annual fee, an asset-based fee,
a percentage of the contributions to the plan, or a combination thereof, as set
forth in the plan document. The
executive director of the system at the direction of the board of directors
shall establish procedures to carry out this section including allocation of
administrative costs of the plan to participants. Processes and procedures shall be set forth
in the plan document. Fees cannot be
charged on contributions and investment returns attributable to contributions
made to the Minnesota supplemental investment funds before July 1, 1992.
(b) The
plan document must conform to federal and state tax laws, regulations, and
rulings, and is not subject to the Administrative Procedure Act.
(c) The
executive director may contract with a third party to perform administrative
and record keeping functions. The
executive director may solicit bids and negotiate such contracts. Participating employers must provide the
necessary data to the third-party record keeper as determined by the executive
director. The third-party record keeper
and the Minnesota State Retirement System shall follow the data privacy
provisions under chapter 13. The
third-party record keeper may not solicit participants for any product or
services not related to the deferred compensation plan.
(d) The
board of directors may authorize a third-party investment consultant to provide
investment information and advice, provided that if the offering
of such information and advice is consistent with the investment advice
requirements applicable to private plans under Title VI, subtitle A, of the
Pension Protection Act of 2006, Public Law 109-280, section 601.
EFFECTIVE DATE. This
section is effective July 1, 2010.
ARTICLE 4
MSRS
UNCLASSIFIED STATE EMPLOYEES RETIREMENT PROGRAM AMENDMENTS
Section
1. Minnesota Statutes 2008, section
3A.07, is amended to read:
3A.07 APPLICATION.
(a) Except
as provided in paragraph (b) or (d), this chapter applies to members of
the legislature in service after July 1, 1965, who otherwise meet the
requirements of this chapter.
(b) Members
of the legislature who were elected for the first time after June 30, 1997, or
members of the legislature who were elected before July 1, 1997, and who, after
July 1, 1998, elect not to be members of the plan established by this chapter are covered by the unclassified employees
retirement program governed by chapter 352D.
(c) The
post-July 1, 1998, coverage election under paragraph (b) is irrevocable and
must be made on a form prescribed by the director. The second chance referendum election under
Laws 2002, chapter 392, article 15, also is irrevocable.
(d) Members
of the legislature who are covered by the retirement plan governed by this
chapter on July 1, 2010, may, on or before the end of the member's seventh year
of legislative service or January 1, 2011, whichever is later, elect to have
future retirement coverage by either the general state employees retirement
plan governed by chapter 352 or the unclassified state employees
retirement program governed by chapter 352D.
The election must be made on a form prescribed by the director and is
irrevocable.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10693
Sec. 2. Minnesota Statutes 2009 Supplement, section
352.01, subdivision 2b, is amended to read:
Subd. 2b. Excluded
employees. "State
employee" does not include:
(1) students who are 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,
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 who
perform services 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.011, subdivision 10, clauses (2) to
(8);
(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 must be considered a "state employee"
retroactively to the beginning of the pay period;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10694
(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;
(17)
interns who are hired for six months or less and trainee employees,
except those listed in subdivision 2a, clause (8);
(18)
persons whose compensation is paid on a fee basis or as an independent
contractor;
(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);
(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;
(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;
(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;
(23)
examination monitors who are employed by departments, agencies, commissions,
and boards to conduct examinations required by law;
(24) persons
who are appointed to serve as members of fact-finding commissions or adjustment
panels, arbitrators, or labor referees under chapter 179;
(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;
(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;
(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;
(28)
persons who are employed in positions designated by the Department of
Management and Budget as student workers;
(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;
(30)
off-duty peace officers while employed by the Metropolitan Council;
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10695
(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;
(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;
(33) foreign citizens with
who are employed under 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 that the extension is granted, in which case they are eligible
for coverage from the date extended; and
(34) persons who are
employed by the Board of Trustees of the Minnesota State Colleges and
Universities and who elected to remain members of the Public Employees
Retirement Association or the Minneapolis Employees Retirement Fund, whichever
applies, under Minnesota Statutes 1994, section 136C.75.; and
(35) employees who have
elected to transfer service to the unclassified program under section 352D.02, subdivision
1d.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 3. Minnesota Statutes 2008, section 352D.015,
subdivision 4, is amended to read:
Subd. 4. General
fund. "General fund" means
the general state employees retirement fund except the moneys for the
unclassified program under chapter 352.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 4. Minnesota Statutes 2008, section 352D.015, is
amended by adding a subdivision to read:
Subd. 4a. General
employees retirement plan. "General
employees retirement plan" means the general state employees retirement
plan under chapter 352.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 5. Minnesota Statutes 2008, section 352D.015,
subdivision 9, is amended to read:
Subd. 9. Value. "Value" means cash value at
the end of the month following receipt of an application. If no application is required,
"value" means the cash value at the end of the month in which the
event necessitating the transfer occurs the market value of the account
at the end of the United States investment market day.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 6. Minnesota Statutes 2008, section 352D.02,
subdivision 1, is amended to read:
Subdivision 1. Coverage.
(a) Employees enumerated in
paragraph (b), clause (1), are participants in the unclassified program under
this chapter. Persons referenced in
paragraph (b), 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. Employees
enumerated in paragraph (c) (b), clauses (2), (3), (4), (6) to
(14), and (16) to (18), clauses (2) 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 program under this
chapter unless the employee gives notice to the executive director of the
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10696
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 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) (b) 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, the state court administrator and
judicial district administrators;
(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;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10697
(12) an employee
whose principal employment is at the state ceremonial house;
(13) an
employee of the 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;
(15) a judge
who has exceeded the service credit limit in section 490.121, subdivision 22;
(16) an
employee of Enterprise Minnesota, Inc.;
(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.
Sec. 7. Minnesota Statutes 2008, section 352D.02,
subdivision 1c, is amended to read:
Subd. 1c. Transfer
of contributions. An employee
covered by the regular general employees retirement plan who is
subsequently employed as a full-time unclassified employee of the legislature
or any commission or agency of the legislature without a limit on the duration
of the employment may elect to transfer accumulated employee and matching
employer contributions, as provided in section 352D.03.
EFFECTIVE DATE. This section
is effective June 30, 2010.
Sec. 8. Minnesota Statutes 2008, section 352D.02,
subdivision 2, is amended to read:
Subd. 2. Coverage
upon employment change. A person
becoming a participant in the unclassified program prior to July 1, 2010,
by virtue of employment in a position specified in subdivision 1, clause (4),
and remaining in the unclassified service shall remain a participant in the
program even though the position the person occupies is deleted from any of the
sections referenced in subdivision 1, clause (4), by subsequent amendment,
except that a person shall is not be eligible to elect the
unclassified program after separation from unclassified service if on the
return of the person to service, that position is not specified in subdivision
1, clause (4). Any person employed in a position
specified in subdivision 1 shall cease to participate in the unclassified
program in the event that the position is placed in the classified
service.
EFFECTIVE DATE. This section
is effective June 30, 2010.
Sec. 9. Minnesota Statutes 2008, section 352D.02,
subdivision 3, is amended to read:
Subd. 3. Transfer
to general employees retirement plan.
(a) An employee referred to in subdivision 1, paragraph (b),
clauses (2) to (4), (6) to (14), and (16) to (18), who is credited with employee
shares in the unclassified program, after acquiring and who has credit
for ten years of allowable service and, not later than one
month following the termination of covered employment, may elect to terminate
participation in the unclassified program and be covered by the general employees
retirement plan by filing a written election with the executive director. if the employee was employed before
July 1, 2010, and has at least ten years of allowable service as of the date of
the election or if the employee was employed after June 30, 2010, and has no more
than seven years of allowable service as of the date of the election.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10698
(b) A person
referred to in subdivision 1, paragraph (b), clause (5), who is credited with
employee shares in the unclassified program, and who has credit for allowable
service, prior to the termination of service, may elect to terminate
participation in the unclassified program and be covered by the general
employees retirement plan by filing a written election with the executive
director if the person first became covered by the unclassified program after
June 30, 2010, and has no more than seven years of allowable service or if the
person first became covered by the unclassified program before July 1, 2010,
and makes the election to transfer on or before January 1, 2011.
(c) If the transfer election
is made, the
executive director shall then redeem the employee's total shares and shall
credit to the employee's account in the general employees retirement plan
the amount of contributions that would have been so credited had the employee
been covered by the general employees retirement plan during the employee's
entire covered employment or elective state service. The balance of money so redeemed and not
credited to the employee's account shall must be transferred to
the general employees retirement plan retirement fund, except
that (1) the employee contribution paid to the unclassified program must be
compared to (2) the employee contributions that would have been paid to the
general employees retirement 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 employees
retirement plan coverage or before the effective date of the annuity,
whichever is sooner.
(b) (d) An election
under paragraph (a) or (b) to transfer coverage to the general employees
retirement plan is irrevocable during any period of covered employment.
(e) A person referenced in
subdivision 1, paragraph (b), clause (1) or (15), who is credited with employee
shares in the unclassified program is not permitted to terminate participation
in the unclassified program and be covered by the general employees retirement
plan.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 10. Minnesota Statutes 2008, section 352D.03, is
amended to read:
352D.03 TRANSFER OF ASSETS.
Unless an eligible employee
enumerated in section 352D.02, subdivision 1, has elected coverage under the
individual retirement account plan under chapter 354B, a sum of money
representing the assets credited to each employee exercising the option
contained in section 352D.02, plus an equal employer contribution together with
interest for an employee exercising an option under section 352D.02, an
amount equal to the employee and employer contributions for the employment
period at the applicable preretirement interest actuarial assumption rate
during this period plus six percent interest, compounded annually,
must be used for the purchase of shares on behalf of each employee in the
accounts of the supplemental retirement fund established by section 11A.17.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 11. Minnesota Statutes 2008, section 352D.04,
subdivision 1, is amended to read:
Subdivision 1. Investment
options. (a) A person exercising an
option to participate in the retirement program provided by this chapter may
elect to purchase shares in one or a combination of the income share account,
the growth share account, the international share account, the money market
account, the bond market account, the fixed interest account, or the common
stock index account established in section 11A.17. The person may elect to participate in one or
more of the investment accounts in the fund by specifying, on a form
provided in a manner prescribed by the executive director, the
percentage of the person's contributions provided in subdivision 2 to be used
to purchase shares in each of the accounts.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10699
(b) A participant
may indicate in writing on forms provided, in a manner prescribed by
the Minnesota State Retirement System a choice of options executive
director, choose their investment allocation for subsequent purchases of
shares. Until a different written
indication is made by the participant, the executive director shall purchase shares
in the supplemental fund as selected by the participant. If no initial option is chosen, 100 percent
income shares must be purchased for a participant. A change in choice of investment option is
effective no later than the first pay date first occurring after 30 days
following the receipt of the request for a change at the end of the most
recent United States investment market day.
(c) Shares
in the fixed interest account attributable to any guaranteed investment contract
as of July 1, 1994, may not be withdrawn from the fund or transferred to
another account until the guaranteed investment contract has expired, unless
the participant qualifies for withdrawal under section 352D.05 or for benefit
payments under sections 352D.06 to 352D.075.
(d) (c) A
participant or former participant may also change the investment options
selected for all or a portion of the participant's shares previously purchased
in accounts, subject to the provisions of paragraph (c) concerning the fixed
interest account. Changes in investment
options for the participant's shares must be effected as soon as cash flow to
an account practically permits, but not later than six months after the
requested change trading restrictions imposed on the investment option.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 12. Minnesota Statutes 2008, section 352D.04,
subdivision 2, is amended to read:
Subd. 2. Contribution
rates. (a) The money used to
purchase shares under this section is the employee and employer contributions
provided in this subdivision.
(b) The
employee contribution is an amount equal to four the percent of
salary specified in section 352.04, subdivision 2, or 352.045, subdivision 3.
(c) The
employer contribution is an amount equal to six percent of salary.
(d) For
members of the legislature, the contributions under this subdivision also must
be made on per diem payments received during a regular or special legislative
session, but may not be made on per diem payments received outside of a regular
or special legislative session, on the additional compensation attributable to
a leadership position under section 3.099, subdivision 3, living expense
payments under section 3.101, or special session living expense payments under
section 3.103.
(e) For a
judge who is a member of the unclassified plan under section 352D.02,
subdivision 1, paragraph (c), clause (16), the employee contribution rate is
eight percent of salary, and there is no employer contribution.
(f) These contributions
must be made in the manner provided in section 352.04, subdivisions 4, 5, and
6.
EFFECTIVE DATE. This
section is effective the first day of the first full pay period beginning after
July 1, 2010.
Sec. 13. Minnesota Statutes 2008, section 352D.05,
subdivision 3, is amended to read:
Subd. 3. Full
or partial withdrawal. After
termination of covered employment or at any time thereafter, a participant is
entitled, upon application, to withdraw the cash value of the participant's
total shares or leave such shares on deposit with the supplemental retirement
fund. The account is valued at the end
of the month in which
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10700
most recent
United States investment market day following receipt of the application for withdrawal
is made. Shares not withdrawn remain on
deposit with the supplemental retirement fund until the former participant becomes
at least 55 years old, and applies for an annuity under section 352D.06,
subdivision 1.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 14. Minnesota Statutes 2008, section 352D.05,
subdivision 4, is amended to read:
Subd. 4. Repayment
of refund. (a) A participant in the
unclassified program may repay regular refunds taken under section 352.22, as
provided in section 352.23.
(b) A
participant in the unclassified program or an employee covered by the general employees
retirement plan who has withdrawn the value of the total shares may repay
the refund taken and thereupon restore the service credit, rights and benefits
forfeited by paying into the fund the amount refunded plus interest at an
annual rate of 8.5 percent compounded annually from the date that the refund
was taken until the date that the refund is repaid. If the participant had withdrawn only the
employee shares as permitted under prior laws, repayment must be pro rata.
(c) Except
as provided in section 356.441, the repayment of a refund under this section
must be made in a lump sum.
EFFECTIVE DATE. This section
is effective June 30, 2010.
Sec. 15. Minnesota Statutes 2008, 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 the day following termination of state service, whichever is
later. 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 day following receipt of the
application or the day following termination, whichever is later. The benefit must be based on the value of the
account the day following receipt of the application or the date of
termination, whichever is later, plus any contributions and interest received
after that date.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 16. Minnesota Statutes 2008, section 352D.065,
subdivision 3, is amended to read:
Subd. 3. Annuity
payment. The annuity payable under
this section shall begin begins to accrue the first day of
the month following the date of disability receipt of the application
or the day after termination, whichever is later, plus any contributions and
interest received after that date, and shall must be based on
the participant's age when the annuity begins to accrue. The shares shall must be valued
as of the end of the month following authorization of payments day on
which the benefit accrues.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 17. Minnesota Statutes 2008, section 352D.09,
subdivision 3, is amended to read:
Subd. 3. Prospectus. (a) The executive director shall
annually distribute make available by electronic means to each
participant the prospectus prepared by the supplemental fund, by July 1 or
when received from such fund, whichever is later, to each participant in
covered employment.
(b) Any
participant may contact the Minnesota State Retirement System and request a
copy of the prospectus.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10701
Sec. 18. Minnesota Statutes 2008, section 352D.09,
subdivision 7, is amended to read:
Subd. 7. Administrative
fees. The board of directors shall
establish a budget and charge participants a reasonable fee to pay the
administrative expenses of the unclassified program. Fees cannot may not be charged
on contributions and investment returns attributable to contributions made
before July 1, 1992. Annual total
fees charged for plan administration cannot exceed 10/100 of one percent of the
contributions and investment returns attributable to contributions made on or
after July 1, 1992.
EFFECTIVE DATE. This section is effective July 1, 2010.
ARTICLE 5
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2009 Supplement, section
353.01, subdivision 2, is amended to read:
Subd. 2. Public
employee. "Public
employee" means a governmental employee or a public officer performing
personal services for a governmental subdivision defined in subdivision 6,
whose salary is paid, in whole or in part, from revenue derived from taxation,
fees, assessments, or from other sources.
For purposes of membership in the association, the term includes
the classes of persons described or listed in subdivision 2a and
excludes the classes of persons listed in subdivision 2b. The term also includes persons who elect
association membership under subdivision 2d, paragraph (a), and persons for whom
the applicable governmental subdivision had elected association membership
under subdivision 2d, paragraph (b). The
term excludes the classes of persons listed in subdivision 2b for purposes of
membership in the association.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 2. Minnesota Statutes 2009 Supplement, section
353.01, subdivision 2a, is amended to read:
Subd. 2a. Included
employees; mandatory membership. (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 whose salary exceeds $425 in any month and who are not
specifically excluded under subdivision 2b or who have not been provided an
option to participate under subdivision 2d, whether individually or by action
of the governmental subdivision, must 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,. Membership commences
as a condition of their employment on the first day of their employment unless
they or on the first day that the eligibility criteria are met,
whichever is later. Public employees
include but are not limited to:
(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.
(1) persons whose salary
meets the threshold in this paragraph from employment in one or more positions
within one governmental subdivision;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10702
(2) elected
county sheriffs;
(3) persons
who are appointed, employed, or contracted to perform governmental functions
that by law or local ordinance are required of a public officer, including, but
not limited to:
(i) town
and city clerk or treasurer;
(ii) county
auditor, treasurer, or recorder;
(iii) city
manager as defined in section 353.028 who does not exercise the option provided
under subdivision 2d; or
(iv)
emergency management director, as provided under section 12.25;
(4)
physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision
2;
(5)
full-time employees of the Dakota County Agricultural Society; and
(6) employees
of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief
Association who are not excluded employees under subdivision 2b due to coverage
by the relief association pension plan and who elected general employee
retirement plan coverage before August 20, 2009.
(b) A
public employee or elected official 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:
(1)
physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision
2;
(2)
full-time employees of the Dakota County Agricultural Society; and
(3) employees
of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief
Association who are not excluded employees under subdivision 2b due to coverage
by the relief association pension plan and who elect Public Employee Retirement
Association general plan coverage under Laws 2009, chapter 169, article 12,
section 10.
(c) If the
salary of an included public employee is less than $425 in any subsequent
month, the member retains membership eligibility.
EFFECTIVE DATE. This
section is effective July 1, 2010, except that the amendment to paragraph (a),
clause (3), applies to any person first appointed, elected, or contracted
after June 30, 2010.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10703
Sec. 3. Minnesota Statutes 2008, section 353.01,
subdivision 2b, is amended to read:
Subd. 2b. Excluded
employees. (a) The following public
employees are not eligible to participate as members of the association with
retirement coverage by the public general employees retirement
plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire retirement plan:
(1)
persons whose salary from one governmental subdivision never exceeds $425 in a
month;
(2) public
officers, other than county sheriffs, who are elected to a governing
body, city mayors, 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;
(2) (3) election
officers or election judges;
(3) (4) patient
and inmate personnel who perform services for a governmental subdivision;
(4) (5) 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) (6) employees
who are employed by reason of work emergency caused by fire, flood, storm, or
similar disaster;
(6) (7) 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 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) (8) 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) (9) 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) (10) resident
physicians, medical interns, and pharmacist residents and pharmacist interns
who are serving in a degree or residency program in public hospitals or
clinics;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10704
(10) (11) students who
are serving in an internship or residency program sponsored by an accredited
educational institution;
(11) (12) persons
who hold a part-time adult supplementary technical college license who render
part-time teaching service in a technical college;
(12) (13) except
for employees of Hennepin County or Hennepin Healthcare System, Inc., foreign
citizens working for who are employed by a governmental
subdivision with under a work permit of less than three years,
or an H-1b visa valid initially issued or extended for a
combined period less than three years of employment. Upon notice to the association that the
work permit or visa extends extension of the employment beyond the three-year
period, the foreign citizens must be reported for membership from the date
of the extension beginning the first of the month thereafter provided
the monthly earnings threshold as provided under subdivision 2a is met;
(13) (14) 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) (15) 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
general employees retirement fund plan or the public
employees police and fire fund plan, whichever applies, on the
basis of compensation received from public employment service other than
service as volunteer ambulance service personnel;
(15) (16) 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, but 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 general employees retirement fund
plan or the public employees police and fire fund plan,
whichever applies, on the basis of compensation received from public employment
activities other than those as a volunteer firefighter;
(16) (17) 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) (18) electrical
workers, plumbers, carpenters, and associated trades personnel who are
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 pension plan
applicable to 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) (19) bricklayers,
allied craftworkers, cement masons, glaziers, glassworkers, painters, allied
tradesworkers, and plasterers who are 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;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10705
(19) (20) plumbers who
are 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) (21) 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) (22) 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) (23) independent
contractors and the employees of independent contractors; and
(23) (24) reemployed
annuitants of the association during the course of that reemployment.;
and
(25) persons
appointed to serve on a board or commission of a governmental subdivision or an
instrumentality thereof.
(b) Any
person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and
is not an employee of an independent contractor.
EFFECTIVE DATE. This
section is effective July 1, 2010, except that clause (25) is effective for
persons first appointed after June 30, 2010.
Sec. 4. Minnesota Statutes 2008, section 353.01,
subdivision 2d, is amended to read:
Subd. 2d. Optional
membership. (a) Membership in the
association is optional by action of the individual employee for the following
public employees who meet the conditions set forth in subdivision 2a:
(1) members
of the coordinated plan who are also employees of labor organizations as
defined in section 353.017, subdivision 1, for their employment by the labor
organization only, if they elect to have membership under section 353.017,
subdivision 2;
(2) persons
who are elected or persons who are appointed to elected positions other than
local governing body elected positions who elect to participate by filing a
written election for membership;
(3) members
of the association who are appointed by the governor to be a state department
head and who elect not to be covered by the general state employees retirement
plan of the Minnesota State Retirement System under section 352.021;
(4) city
managers as defined in section 353.028, subdivision 1, who do not elect to be
excluded from membership in the association under section 353.028, subdivision
2; and
(5)
employees of the Port Authority of the city of St. Paul on January 1,
2003, who were at least age 45 on that date, and who elected to participate by
filing a written election for membership.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10706
(b) Membership in
the association is optional by action of the governmental subdivision for the
employees of the following governmental subdivisions under the conditions
specified: