STATE OF
MINNESOTA
EIGHTY-NINTH
SESSION - 2016
_____________________
ONE
HUNDREDTH DAY
Saint Paul, Minnesota, Monday, May
16, 2016
The House of Representatives convened at 4:00
p.m. and was called to order by Kurt Daudt, Speaker of the House.
Prayer was offered by the Reverend Ben
Lane, Northbrook Alliance Church, Brooklyn Center, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Albright
Allen
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Freiberg
Garofalo
Green
Gruenhagen
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Marquart
Masin
McDonald
McNamara
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
A quorum was present.
Atkins, Gunther, Hancock, Melin,
Schomacker and Sundin were excused.
Pinto was excused until 6:25 p.m. Davnie was excused until 6:30 p.m. Mariani was excused until 6:35 p.m. Mahoney was excused until 7:20 p.m.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
REPORTS OF CHIEF CLERK
S. F. No. 2649 and H. F. No. 3082, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.
Anderson, P., moved that S. F. No. 2649 be substituted for H. F. No. 3082 and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 2759 and H. F. No. 2845, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.
Hackbarth moved that S. F. No. 2759 be substituted for H. F. No. 2845 and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 2815 and H. F. No. 3478, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.
Scott moved that S. F. No. 2815 be substituted for H. F. No. 3478 and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 3208 and H. F. No. 3436, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.
Franson moved that S. F. No. 3208 be substituted for H. F. No. 3436 and that the House File be indefinitely postponed. The motion prevailed.
PETITIONS AND COMMUNICATIONS
The following communications were received:
STATE OF MINNESOTA
OFFICE OF THE GOVERNOR
SAINT PAUL 55155
May 12, 2016
The Honorable Kurt Daudt
Speaker of the House of Representatives
The State of Minnesota
Dear Speaker Daudt:
Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House Files:
H. F. No. 2718, relating to local government; permitting the city of Elk River to increase the membership of its public utilities commission.
H. F. No. 2927, relating to transportation; permitting specific service signs at two locations under certain circumstances.
H. F. No. 2954, relating to commerce; regulating unfair practices in motor vehicle distribution.
H. F. No. 2870, relating to corrections; authorizing counties to continue participation in the community corrections subsidy program.
H. F. No. 71, relating to public safety; creating an enhanced penalty for criminal vehicular homicide occurring within ten years of a qualified offense.
H. F. No. 2478, relating to workers' compensation; adopting recommendations of the Workers' Compensation Advisory Council.
Sincerely,
Mark
Dayton
Governor
STATE OF MINNESOTA
OFFICE OF THE SECRETARY OF STATE
ST. PAUL 55155
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
I have the honor to inform you that the following enrolled Acts of the 2016 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:
S. F. No. |
H. F. No. |
Session Laws Chapter No. |
Time and Date Approved 2016 |
Date Filed 2016 |
2718 97 1:21 p.m. May 12 May 12
2927 98 1:21 p.m. May 12 May 12
2539 99 1:22 p.m. May 12 May 12
2869 100 1:23 p.m. May 12 May 12
2896 101 1:23 p.m. May 12 May 12
2986 102 1:23 p.m. May 12 May 12
107 103 1:24 p.m. May 12 May 12
3272 104 1:24 p.m. May 12 May 12
2430 105 1:25 p.m. May 12 May 12
2498 106 1:25 p.m. May 12 May 12
2954 107 1:25 p.m. May 12 May 12
2870 108 1:26 p.m. May 12 May 12
71 109 1:26 p.m. May 12 May 12
2478 110 1:27 p.m. May 12 May 12
2555 111 1:27 p.m. May 12 May 12
2426 112 1:28 p.m. May 12 May 12
Sincerely,
Steve
Simon
Secretary of State
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Sanders from the Committee on Government Operations and Elections Policy to which was referred:
H. F. No. 659, A bill for an act relating to retirement; general state employees retirement plan of the Minnesota State Retirement System; modifying disability application deadlines in certain instances; amending Minnesota Statutes 2014, section 352.113, subdivisions 2, 4.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
MSRS, TRA, AND SPTRFA POST-RETIREMENT ADJUSTMENT REVISIONS
SPTRFA SUPPLEMENTAL EMPLOYER CONTRIBUTION
Section 1. Minnesota Statutes 2014, 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 the teachers retirement fund association:
(1) for any each coordinated
member of the St. Paul Teachers Retirement Fund Association, the employing
unit shall make a regular employer contribution to the retirement fund
association in an amount equal to the designated percentage of the salary of
the coordinated member as provided below:
|
after June 30, 2014 |
5.5 percent |
|
after June 30, 2015 |
6 percent |
|
after June 30, 2016 |
6.25 percent |
|
after June 30, 2017 |
6.5 percent |
|
after June 30, 2018 |
7.0 percent |
(2)
for any each 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 according to the
schedule below:
|
after June 30, 2014 |
9 percent of salary |
|
after June 30, 2015 |
9.5 percent of salary |
|
after June 30, 2016 |
9.75 percent of salary |
|
after June 30, 2017 |
10 percent of salary |
|
after June 30, 2018 |
10.5 percent of salary |
(3) for a each 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 each coordinated
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 3.84 percent of the coordinated member's salary.
(b) The regular and additional employer contributions must be remitted directly to the St. Paul 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, 2016.
Sec. 2. Minnesota Statutes 2015 Supplement, section 354A.29, subdivision 7, is amended to read:
Subd. 7. Eligibility
for payment and calculation of postretirement adjustments. (a) Annually, after June 30, the board of
trustees of the St. Paul Teachers Retirement Fund Association must
determine the amount of any postretirement adjustment using the procedures in
this subdivision and subdivision 8 or 9, whichever is applicable.
(b) On January 1, each person who has been
receiving an annuity or benefit under the articles of incorporation, the
bylaws, or this chapter, whose effective date of benefit commencement occurred
on or before July 1 of the immediately preceding calendar year immediately
before the adjustment, is eligible to receive a postretirement increase as
specified in subdivision 8 or 9 as determined under paragraph (c),
clause (1) or (2), whichever applies.
(c) The amount provided for under this
subdivision is the full postretirement increase to be applied as a permanent
increase to the regular payment of each eligible member.
(1) A one percent postretirement
increase shall apply for any eligible member whose effective date of benefit
commencement occurred on or before January 1 of the immediately preceding
calendar year.
(2) A one-half of one percent
postretirement increase shall apply for any eligible member whose effective
date of benefit commencement occurred after January 1 of the immediately
preceding calendar year.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 3. Minnesota Statutes 2015 Supplement, section 356.215, subdivision 8, is amended to read:
Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use the applicable following interest assumption:
(1) select and ultimate interest rate assumption
plan |
ultimate interest rate assumption |
|
teachers retirement plan |
8.5% |
|
The select preretirement interest rate assumption for the period through June 30, 2017, is eight percent.
(2) single rate interest rate assumption
plan |
interest rate assumption |
|
general state employees retirement plan |
8% |
|
correctional state employees retirement plan |
8 |
|
State Patrol retirement plan |
8 |
|
legislators retirement plan, and for the constitutional officers calculation of total plan liabilities |
0 |
|
judges retirement plan |
8 |
|
general public employees retirement plan |
8 |
|
public employees police and fire retirement plan |
8 |
|
local government correctional service retirement plan |
8 |
|
St. Paul teachers retirement plan |
8 |
|
Bloomington Fire Department Relief Association |
6 |
|
local monthly benefit volunteer firefighter relief associations |
5 |
|
monthly benefit retirement plans in the statewide volunteer firefighter retirement plan |
6 |
|
(b)(1) If funding stability has been
attained, the valuation of each public pension and retirement plan
enumerated in section 356.20, subdivision 2, clauses (2), (4), (8), (11), and
(13), must use a postretirement adjustment rate actuarial assumption equal
to the postretirement adjustment rate specified in section 354A.27,
subdivision 7; 354A.29, subdivision 9; or 356.415, subdivision 1 1b,
1c, 1e, or 1f, whichever applies.
(2) If funding stability has not been
attained, the valuation of each public pension and retirement plan
enumerated in section 356.20, subdivision 2, clauses (2), (4), (8), (11), and
(13), must use a select postretirement adjustment rate actuarial assumption
equal to the postretirement adjustment rate specified in section 354A.27,
subdivision 6a; 354A.29, subdivision 8; or 356.415, subdivision 1a, 1b,
1c, 1d, 1e, or 1f, whichever applies, for a period ending when the
approved actuary estimates that the plan will attain the defined funding
stability measure, and thereafter an ultimate postretirement adjustment rate
actuarial assumption equal to the postretirement adjustment rate under section 354A.27,
subdivision 7; 354A.29, subdivision 9; or 356.415, subdivision 1 1b,
1c, 1e, or 1f, for the applicable period or periods beginning when funding
stability is projected to be attained.
(3) The valuation of each public
pension and retirement plan enumerated in section 356.20, subdivision 2,
clauses (1), (3), (5), and (12), must use a postretirement adjustment rate
actuarial assumption equal to the postretirement adjustment rate specified in
section 354A.29 or 356.415, subdivision 1a or 1d, whichever applies.
(c) 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
plan |
future salary increase assumption |
|
legislators retirement plan |
|
5% |
judges retirement plan |
|
2.75 |
Bloomington Fire Department Relief Association |
|
4 |
(2) age-related future salary increase age-related select and ultimate future salary increase assumption or graded rate future salary increase assumption
plan |
future salary increase assumption |
local government correctional service retirement plan |
assumption B |
St. Paul teachers retirement plan |
assumption A |
For plans other than the St. Paul teachers retirement plan and the local government correctional service retirement plan, 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 ten years and the designated integer is ten for the local government correctional service retirement plan and 15 for the St. Paul Teachers Retirement Fund Association. The designated percentage rate is 0.2 percent for the St. Paul Teachers Retirement Fund Association.
The ultimate future salary increase assumption is:
(3) service-related ultimate future salary increase assumption
(d) 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:
plan |
payroll growth assumption |
general state employees retirement plan of the Minnesota State Retirement System |
3.5% |
correctional state employees retirement plan |
3.5 |
State Patrol retirement plan |
3.5 |
judges retirement plan |
2.75 |
general employees retirement plan
of the Public Employees Retirement Association |
3.5 |
public employees police and fire retirement plan |
3.5 |
local government correctional service retirement plan |
3.5 |
teachers retirement plan |
3.75 |
St. Paul teachers retirement plan |
4 |
(e) The assumptions set forth in paragraphs (c) and (d) 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 June 30, 2016.
Sec. 4. Minnesota Statutes 2015 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), but excluding the legislators retirement plan, 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 (d). For all other retirement plans and for the legislators retirement plan, the additional annual contribution must be calculated on a level annual dollar amount basis.
(b) For any retirement plan other than a retirement plan governed by paragraph (d), (e), (f), (g), (h), (i), or (j), 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.
(c) For any retirement plan, 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 general employees retirement plan of the Public Employees Retirement Association, the established date for full funding is June 30, 2031.
(e) For the Teachers Retirement Association,
the established date for full funding is June 30, 2037 2046.
(f) For the correctional state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2038.
(g) For the judges retirement plan, the established date for full funding is June 30, 2038.
(h) For the public employees police and fire retirement plan, the established date for full funding is June 30, 2038.
(i) For the St. Paul Teachers Retirement Fund Association, the established date for full funding is June 30, 2042. In addition to other requirements of this chapter, the annual actuarial valuation must 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.
(j) For the general state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2040.
(k) 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. 5. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1a, is amended to read:
Subd. 1a. Annual
postretirement adjustments; Minnesota State Retirement System plans other than the
State Patrol and judges retirement plan plans. (a) Retirement annuity, disability
benefit, or survivor benefit recipients of the legislators retirement plan,
including constitutional officers as specified in chapter 3A, the general state
employees retirement plan, the correctional state employees retirement plan,
and the unclassified state employees retirement program are entitled to a
postretirement adjustment annually on January 1, as follows:
(1) for each successive January 1, if
the definition of funding stability under paragraph (b) has not been met as of the prior July 1 for or with respect to the
applicable retirement plan, effective
January 1, 2017, through December 31, 2017, a postretirement
increase of two 1.75 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 12 full months as of the June 30 of the calendar year immediately before
the adjustment; and
(2) for each successive January 1, if
the definition of funding stability under paragraph (b) has not been met as of the prior July 1 for or with respect to the
applicable retirement plan, effective
January 1, 2017, through December 31, 2017, 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 June 30 of
the calendar year immediately before the adjustment, an annual postretirement
increase of 1/12 of two 1.75 percent for each month that the
person has been receiving an annuity or benefit must be applied.;
(3) effective January 1, 2018, a
postretirement increase of two percent must be applied 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 as of the June 30 of the
calendar year immediately before the adjustment; and
(4) effective January 1, 2018, 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 June 30 of
the calendar year immediately before the adjustment, 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.
(b) Increases under this subdivision
for the general state employees retirement plan or the correctional state
employees retirement plan terminate on December 31 of the calendar year in
which two prior consecutive actuarial valuations 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 indicate
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
established under chapter 3A, including the constitutional officers specified
in that chapter, and for the unclassified state employees retirement program,
terminate on December 31 of the calendar year in which two prior consecutive
actuarial valuations 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 indicate 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) After having met the definition of
funding stability under paragraph (b), the increase provided in paragraph (a),
clauses (1) and (2), rather than an increase under subdivision 1, for the
general state employees retirement plan or the correctional state employees
retirement plan, is again to be applied in a subsequent year or years if the
market value of assets of the applicable plan equals or is less than:
(1)
85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or
(2) 80 percent of the actuarial accrued
liabilities of the applicable plan for the most recent actuarial valuation.
(d)
After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an
increase under subdivision 1, for the legislators retirement plan, including
the constitutional officers, and for the unclassified state employees
retirement program, is again to be applied in a subsequent year or years if the market value of assets of the general
state employees retirement plan equals or is less than:
(1)
85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or
(2) 80 percent of the actuarial accrued
liabilities of the applicable plan for the most recent actuarial valuation.
(e) (b) 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 June 30, 2016.
Sec. 6. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1d, is amended 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 each January 1 until funding
stability is restored, effective January 1, 2017, through December 31,
2017, a postretirement increase of two 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 a benefit for at least 12 full months as of the June 30 of the
calendar year immediately before the adjustment;
(2) for each January 1 until funding
stability is restored effective January 1, 2017, through December 31,
2017, 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 June 30 of the calendar year immediately before the adjustment, an
annual postretirement increase of 1/12 of two 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 effective January 1, 2018, and
thereafter, a postretirement increase of 2.5 two 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 12 full months as of the June 30 of the
calendar year immediately before the adjustment; and
(4) for each January 1 following the
restoration of funding stability effective January 1, 2018, and
thereafter, 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 June 30 of the calendar year immediately before the
adjustment, an annual postretirement increase of 1/12 of 2.5 two
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 Teachers Retirement Association equals or
exceeds 90 percent of the actuarial accrued liabilities of the Teachers
Retirement Association in the two most recent prior actuarial valuations
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)
After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses
(1) and (2), rather than an increase under subdivision 1, or the increase under
paragraph (a), clauses (3) and (4), is again to be applied in a subsequent year
or years if the market value of assets of the plan equals or is less than:
(1) 85 percent of the actuarial accrued
liabilities of the plan for two consecutive actuarial valuations; or
(2) 80 percent of the actuarial accrued
liabilities of the plan for the most recent actuarial valuation.
(d) (b) 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.
(e) (c) 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. 7. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1e, is amended 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 if the definition of funding stability under paragraph (b) has not been met, as follows:
(1) a postretirement increase of one 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 12 full months as of the June 30 of the calendar year immediately before the adjustment; and
(2) 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 June 30 of the calendar year immediately before the adjustment, an annual postretirement increase of 1/12 of one percent for each month that the person has been receiving an annuity or benefit must be applied.
(b) Increases under paragraph (a) for the State Patrol retirement plan terminate on December 31 of the calendar year in which two prior consecutive actuarial valuations for the plan 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 85 percent of the actuarial accrued liability of the retirement plan. Thereafter, increases under paragraph (a) become effective again on the December 31 of the calendar year in which the actuarial valuation, or prior consecutive actuarial valuations for the plan 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 the assets of the retirement plan equals or is less than 80 percent of the actuarial accrued liability of the retirement plan for two years, or equals or is less than 75 percent of the actuarial accrued liability of the retirement plan for one year and increases under paragraph (c) commence after that date.
(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol retirement plan are entitled to a postretirement adjustment annually on January 1 if the definition of funding stability under paragraph (b) has been met, 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 12 full months as of the June 30 of the calendar year immediately before the adjustment; and
(2) 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 June 30 of the calendar year immediately before the adjustment, 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.
(d) Increases under paragraph (c) for the
State Patrol retirement plan terminate on December 31 of the calendar year in
which two prior consecutive actuarial valuations prepared by the approved
actuary under sections 356.214 and 356.215 and the standards for actuarial work
adopted 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 paragraph (e) commence after that date.
(e) Retirement annuity, disability
benefit, or survivor benefit recipients of the State Patrol retirement plan are
entitled to a postretirement adjustment annually on January 1 if the definition
of funding stability under paragraph (d) has been met, as follows:
(1) a postretirement increase of 2.5
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 12 full months as of the June 30
of the calendar year immediately before the adjustment; and
(2) 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 June 30 of the calendar year
immediately before the adjustment, 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.
(e) (f) 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 June 30, 2016.
Sec. 8. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1f, is amended to read:
Subd. 1f. Annual
postretirement adjustments; Minnesota State Retirement System judges retirement
plan. (a) The increases provided
under this subdivision are in lieu of increases under subdivision 1 or 1a for
retirement annuity, disability benefit, or survivor benefit recipients of the
judges retirement plan.
(b) (a) Retirement annuity,
disability benefit, or survivor benefit recipients of the judges retirement
plan are entitled to a postretirement adjustment annually on January 1 if
the definition of funding stability under paragraph (b) has not been met,
as follows:
(1) a postretirement increase of 1.75 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 12 full months as of the June 30 of the calendar year immediately before the adjustment; and
(2) 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 June 30 of the calendar year immediately before the adjustment, an annual postretirement increase of 1/12 of 1.75 percent for each month that the person has been receiving an annuity or benefit must be applied.
(c) (b) Increases under this
subdivision paragraph (a) terminate on December 31 of the calendar
year in which two prior consecutive actuarial valuations 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 judges retirement
plan equals or exceeds 70 percent of the actuarial accrued liability of the
retirement plan. and increases under subdivision 1 or 1a,
whichever is applicable, begin on the January 1 next following paragraph
(c) commence after that date.
(c) Retirement annuity, disability
benefit, or survivor benefit recipients of the judges retirement plan are
entitled to a postretirement adjustment annually on January 1 if the definition
of funding stability under paragraph (d) has not been met, 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 12 full months as of the June 30
of the calendar year immediately before the adjustment; and
(2) 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 June 30 of the calendar year
immediately before the adjustment, 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.
(d) Increases under paragraph (c)
terminate on December 31 of the calendar year in which two prior consecutive
actuarial valuations prepared by the approved actuary under sections 356.214
and 356.215 and the standards for actuarial work adopted by the Legislative
Commission on Pensions and Retirement indicates that the market value of assets
of the judges retirement plan equals or exceeds 90 percent of the actuarial
accrued liability of the retirement plan and increases under paragraph (e)
commence after that date.
(e) Retirement annuity, disability
benefit, or survivor benefit recipients of the judges retirement plan are
entitled to a postretirement adjustment annually on January 1 if the definition
of funding stability under paragraph (d) has been met, as follows:
(1) a postretirement increase of 2.5
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 12 full months as of the June 30
of the calendar year immediately before the adjustment; and
(2) 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 June 30 of the calendar year
immediately before the adjustment, 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.
(d) (f) 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 June 30, 2016.
Sec. 9. Minnesota Statutes 2014, section 490.121, subdivision 25, is amended to read:
Subd. 25. Tier I. "Tier I" is the benefit program
of the retirement plan with a membership specified by section 490.1221,
paragraph (b), and governed by sections 356.415, subdivisions 1 and subdivision
1f; and 490.121 to 490.133, except as modified in sections 490.121, subdivision
21f, paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph (b); and
490.124, subdivision 1, paragraphs (c) and (d).
EFFECTIVE
DATE. This section is
effective June 30, 2016.
Sec. 10. Minnesota Statutes 2014, section 490.121, subdivision 26, is amended to read:
Subd. 26. Tier
II. "Tier II" is the
benefit program of the retirement plan with a membership specified by section
490.1221, paragraph (c), and governed by sections 356.415, subdivisions 1
and subdivision 1f; 490.121 to 490.133, as modified in section
490.121, subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a,
paragraph (b); and 490.124, subdivision 1, paragraphs (c) and (d).
EFFECTIVE
DATE. This section is effective
June 30, 2016.
Sec. 11. REPEALER.
(a) Minnesota Statutes 2015 Supplement,
section 356.415, subdivision 1, is repealed.
(b) Minnesota Statutes 2015 Supplement,
section 354A.29, subdivisions 8 and 9, are repealed.
EFFECTIVE
DATE. Paragraph (a) is
effective June 30, 2016. Paragraph (b)
is effective July 1, 2016.
ARTICLE 2
MINNESOTA STATE RETIREMENT SYSTEM
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2015 Supplement, section 3A.03, subdivision 2, is amended to read:
Subd. 2. Refund. (a) A former member who has made contributions under subdivision 1 and who is no longer a member of the legislature is entitled to receive, upon written application to the executive director on a form prescribed by the executive director, a refund from the general fund of all contributions credited to the member's account with interest computed as provided in section 352.22, subdivision 2.
(b) The refund of contributions as provided in paragraph (a) terminates all rights of a former member of the legislature and the survivors of the former member under this chapter.
(c) If the former member of the legislature again becomes a member of the legislature after having taken a refund as provided in paragraph (a), the member is a member of the unclassified employees retirement program of the Minnesota State Retirement System.
(d) However, the member may reinstate the
rights and credit for service previously forfeited under this chapter if the
member repays all refunds taken, plus interest at the rate of 8.5 percent until
June 30, 2015, and eight percent thereafter compounded annually from the date
on which the refund was taken to the date on which the refund is repaid. Repayment must be made as provided in
section 352.23, paragraph (d).
(e) No person may be required to apply for or to accept a refund.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 2. Minnesota Statutes 2014, section 3A.03, subdivision 3, is amended to read:
Subd. 3. Legislators retirement fund. (a) The legislators retirement fund, a special retirement fund, is created within the state treasury. The legislators retirement fund must be credited with any investment proceeds on the assets of the retirement fund.
(b) The payment of annuities under section 3A.115, paragraph (b), is appropriated from the legislators retirement fund.
(c) The legislators retirement fund may
receive transfers of general fund proceeds.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 3. Minnesota Statutes 2014, section 16A.14, subdivision 2a, is amended to read:
Subd. 2a. Exceptions. The allotment and encumbrance system does not apply to:
(1) appropriations for the courts or the legislature;
(2) payment of unemployment benefits.;
and
(3) transactions within the defined contribution
funds administered by the Minnesota State Retirement System.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 4. Minnesota Statutes 2014, section 352.03, subdivision 5, is amended to read:
Subd. 5. Executive
director;, deputy director, and assistant director. (a) The board shall appoint an
executive director, in this chapter called the director, of the system must
be appointed by the board on the basis of fitness education,
experience in the retirement field, and leadership ability to manage
and lead system staff, and ability to assist the board in setting a vision for
the system. The director must have
had at least five years' experience on the administrative staff of a major
retirement system in either an executive level management position or in
a position with responsibility for the governance, management, or
administration of a retirement plan.
(b) The executive director, deputy director, and assistant director must be in the unclassified service but appointees may be selected from civil service lists if desired. The salary of the executive director must be as provided by section 15A.0815. The salary of the deputy director and assistant director must be set in accordance with section 43A.18, subdivision 3.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 5. Minnesota Statutes 2014, section 352.03, subdivision 6, is amended to read:
Subd. 6. Duties and powers of executive director. The management of the system is vested in the director, who is the executive and administrative head of the system. The director may appoint a deputy director and an assistant director with the approval of the board. The director shall be advisor to the board on matters pertaining to the system and shall also act as the secretary of the board. The director shall:
(1) attend meetings of the board;
(2) prepare and recommend to the board appropriate rules to carry out this chapter;
(3) establish and maintain an adequate system of records and accounts following recognized accounting principles and controls;
(4) designate an assistant director with
the approval of the board;
(5) (4) appoint any
employees, both permanent and temporary, that are necessary to carry out the
provisions of this chapter;
(6) (5) organize the work of
the system as the director deems necessary to fulfill the functions of the
system, and define the duties of its employees and delegate to them any powers
or duties, subject to the control of the director and under conditions the
director may prescribe. Appointments to
exercise delegated power must be by written order and shall be filed with the
secretary of state;
(7) (6) with the advice and
consent of the board, contract for the services of an approved actuary,
professional management services, and any other consulting services as
necessary and fix the compensation for those services. The contracts are not subject to competitive
bidding under chapter 16C. Any approved
actuary retained by the executive director shall function as the actuarial
advisor of the board and the executive director, and may perform actuarial
valuations and experience studies to supplement those performed by the actuary
retained under section 356.214. Any
supplemental actuarial valuations or experience studies shall be filed with the
executive director of the Legislative Commission on Pensions and Retirement. Professional management services may not be
contracted for more often than once in six years. Copies of professional management survey
reports must be transmitted to the secretary of the senate, the chief clerk of
the house of representatives, and the Legislative Reference Library as provided
by section 3.195, and to the executive director of the commission at the time
as reports are furnished to the board. Only
management firms experienced in conducting management surveys of federal,
state, or local public retirement systems are qualified to contract with the
director;
(8) (7) with the advice and
consent of the board provide in-service training for the employees of the
system;
(9) (8) make refunds of
accumulated contributions to former state employees and to the designated
beneficiary, surviving spouse, legal representative, or next of kin of deceased
state employees or deceased former state employees, as provided in this
chapter;
(10) (9) determine the amount
of the annuities and disability benefits of employees covered by the system and
authorize payment of the annuities and benefits beginning as of the dates on
which the annuities and benefits begin to accrue, in accordance with the
provisions of this chapter;
(11) (10) pay annuities,
refunds, survivor benefits, salaries, and necessary operating expenses of the
system;
(12) (11) certify funds
available for investment to the State Board of Investment;
(13) (12) with the advice and
approval of the board request the State Board of Investment to sell securities
when the director determines that funds are needed for the system;
(14) (13) prepare and submit
to the board and the legislature an annual financial report covering the
operation of the system, as required by section 356.20;
(15) (14) prepare and submit
biennial and annual budgets to the board and with the approval of the board submit
the budgets to the Department of Management and Budget; and
(16) (15) with the approval
of the board, perform other duties required to administer the retirement and
other provisions of this chapter and to do its business.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 6. Minnesota Statutes 2015 Supplement, section 352.23, is amended to read:
352.23
TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
(a) When any employee accepts a refund as provided in section 352.22, all existing allowable service credits and all rights and benefits to which the employee was entitled before accepting the refund terminate.
(b) Terminated service credits and rights
must not again be restored until the former employee acquires at least
six months of allowable service credit after taking the last refund. In that event, the employee may repay and
repays all refunds previously taken from the retirement fund with
interest as provided in paragraph (d).
(c) Repayment of refunds entitles the employee only to credit for service covered by (1) salary deductions; (2) payments previously made in lieu of salary deductions as permitted under law in effect when the payment in lieu of deductions was made; (3) payments made to obtain credit for service as permitted by laws in effect when payment was made; and (4) allowable service previously credited while receiving temporary workers' compensation as provided in section 352.01, subdivision 11, paragraph (a), clause (3).
(d) Payments under this section for
repayment of refunds are to be paid with interest at the rate of 8.5 percent
until June 30, 2015, and eight percent thereafter compounded annually from the
date the refund was taken until the date the refund is repaid. They Repayment may be paid
in a lump sum or by payroll deduction in the manner provided in section 352.04. Payment may be made in partial
payments consistent with section 356.44 during employment or in a lump sum
up to six months after termination from service.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 7. Minnesota Statutes 2015 Supplement, section 352B.11, subdivision 4, is amended to read:
Subd. 4. Reentry
into state service. When a former
member, who has become separated from state service that entitled the member to
membership and has received a refund of retirement payments, reenters the state
service in a position that entitles the member to membership, that member shall
receive credit for the period of prior allowable state service if the member
repays into the fund the amount of the refund, plus interest on it at the rate
of 8.5 percent until June 30, 2015, and eight percent thereafter compounded
annually, at any time before subsequent retirement. Repayment may be made in installments or in a
lump sum. Repayment must be made
as provided in section 352.23, paragraph (d).
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 8. Minnesota Statutes 2015 Supplement, 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 the rate of 8.5 percent until June 30, 2015, and eight percent thereafter 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. Repayment must be made as provided in
section 352.23, paragraph (d).
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 9. Minnesota Statutes 2015 Supplement, section 490.124, subdivision 12, is amended to read:
Subd. 12. Refund. (a) A person who ceases to be a judge is entitled to a refund in an amount that is equal to all of the member's employee contributions to the judges' retirement fund plus interest computed under section 352.22, subdivision 2.
(b) A refund of contributions under paragraph (a) terminates all service credits and all rights and benefits of the judge and the judge's survivors under this chapter.
(c) A person who becomes a judge again after
taking a refund under paragraph (a) may reinstate the previously terminated
allowable service credit, rights, and benefits by repaying the total amount of
the previously received refund. The
refund repayment must include interest on the total amount previously received
at the annual rate of 8.5 percent until June 30, 2015, and eight percent
thereafter, compounded annually, from the date on which the refund was received
until the date on which the refund is repaid.
Repayment must be made as provided in section 352.23, paragraph (d).
EFFECTIVE
DATE. This section is
effective July 1, 2016.
ARTICLE 3
TEACHERS RETIREMENT ASSOCIATION
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2014, section 354.05, subdivision 2, is amended to read:
Subd. 2. Teacher. (a) "Teacher" means:
(1) a person who renders service as a
teacher, supervisor, principal, superintendent, librarian, nurse, counselor,
social worker, therapist, or psychologist in:
(i) a public school of the state
other than in Independent School District No. 625 or in Independent
School District No. 709, or in any;
(ii) a charter school,
irrespective of the location of the school, or in any; or
(iii) a charitable, penal, or
correctional institutions institution of a governmental
subdivision, or;
(2) a person who is engaged in
educational administration in connection with the state public school system,
whether the position be a public office or an as employment;
(3) a person who renders service as a charter school director or chief administrative officer, provided, however, that if the charter school director or chief administrative officer is covered by the Public Employees Retirement Association general employees retirement plan on July 1, 2016, the charter school director or chief administrative officer shall continue to be covered by that plan and not by the Teachers Retirement Association;
(2) (4) an employee of the
Teachers Retirement Association;
(3) (5) a person who renders
teaching service on a part-time basis and who also renders other services for a
single employing unit where the teaching service comprises at least 50 percent
of the combined employment salary is a member of the association for all
services with the single employing unit or, if less than 50 percent of the
combined employment salary, the executive director determines all of the
combined service is covered by the association; or
(4) (6) a person who is not covered by the plans established under chapter 352D, 354A, or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges and Universities system in an unclassified position as:
(i) a president, vice-president, or dean;
(ii) a manager or a professional in an academic or an academic support program other than specified in item (i);
(iii) an administrative or a service support faculty position; or
(iv) a teacher or a research assistant.
(b) "Teacher" does not mean:
(1) a person who works for a school or institution as an independent contractor as defined by the Internal Revenue Service;
(2) a person who renders part-time
teaching service or who is a customized trainer as defined by the Minnesota
State Colleges and Universities system if (i) the service is incidental to the
regular nonteaching occupation of the person; and (ii) the employer stipulates
annually in advance that the part-time teaching service or customized training
service will not exceed 300 hours in a fiscal year and retains the stipulation
in its records; and (iii) the part‑time teaching service or customized
training service actually does not exceed 300 hours in a fiscal year;
(3) a person exempt from licensure
under section 122A.30;
(4) (2) annuitants of the
teachers retirement plan who are employed after retirement by an employing unit
that participates in the teachers retirement plan during the course of that
reemployment;
(5) (3) a person who is
employed by the University of Minnesota;
(6) (4) a member or an
officer of any general governing or managing board or body of an employing unit
that participates in the teachers retirement plan; or
(7) (5) a person employed by
Independent School District No. 625 or Independent School District No. 709
as a teacher as defined in section 354A.011, subdivision 27.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 2. Minnesota Statutes 2014, section 354.05, is amended by adding a subdivision to read:
Subd. 17a. Former
spouse. "Former spouse"
means a person who is no longer a spouse of a member due to dissolution of the
marriage, legal separation, or annulment.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 3. Minnesota Statutes 2014, section 354.06, subdivision 2, is amended to read:
Subd. 2. President;
executive director. The board shall
annually elect one of its members as president.
It shall elect an executive director, whose salary shall be as provided
by section 15A.0815. The salary of
the assistant executive director who shall be in the unclassified service,
shall be set in accordance with section 43A.18, subdivision 3. The executive director shall serve during the
pleasure of the board and be the executive officer of the
board,
with such duties as the board shall prescribe.
The board shall employ all other clerks and employees necessary to
properly administer the association. The
cost and expense of administering the provisions of this chapter shall be paid
by the association. The board shall
appoint an executive director shall be appointed by the board on the
basis of fitness education, experience in the retirement field and
leadership, ability to manage and lead system staff, and ability
to assist the board in setting a vision for the system. The executive director shall have had at
least five years of experience on the administrative staff of a major
retirement system in either an executive-level management position or in
a position with responsibility for the governance, management, or administration
of a retirement plan.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 4. Minnesota Statutes 2014, section 354.06, subdivision 2a, is amended to read:
Subd. 2a. Duties of executive director. The management of the association is vested in the executive director who shall be the executive and administrative head of the association. The executive director shall act as advisor to the board on all matters pertaining to the association and shall also act as the secretary of the board. The executive director shall:
(1) attend all meetings of the board;
(2) prepare and recommend to the board appropriate rules to carry out the provisions of this chapter;
(3) establish and maintain an adequate system of records and accounts following recognized accounting principles and controls;
(4) designate, as necessary, a deputy executive director and an assistant executive director in the unclassified service, as defined in section 43A.08, whose salaries shall be set in accordance with section 43A.18, subdivision 3, and two assistant executive directors in the classified service, as defined in section 43A.07, with the approval of the board, and appoint such employees, both permanent and temporary, as are necessary to carry out the provisions of this chapter;
(5) organize the work of the association as the director deems necessary to fulfill the functions of the association, and define the duties of its employees and delegate to them any powers or duties, subject to the director's control and under such conditions as the director may prescribe;
(6) with the approval of the board, contract and set the compensation for the services of an approved actuary, professional management services, and any other consulting services. These contracts are not subject to the competitive bidding procedure prescribed by chapter 16C. An approved actuary retained by the executive director shall function as the actuarial advisor of the board and the executive director and may perform actuarial valuations and experience studies to supplement those performed by the actuary retained under section 356.214. Any supplemental actuarial valuations or experience studies shall be filed with the executive director of the Legislative Commission on Pensions and Retirement. Copies of professional management survey reports must be transmitted to the secretary of the senate, the chief clerk of the house of representatives, and the Legislative Reference Library as provided by section 3.195, and to the executive director of the commission at the same time as reports are furnished to the board. Only management firms experienced in conducting management surveys of federal, state, or local public retirement systems are qualified to contract with the executive director;
(7) with the approval of the board, provide in-service training for the employees of the association;
(8) make refunds of accumulated contributions to former members and to the designated beneficiary, surviving spouse, legal representative, or next of kin of deceased members or deceased former members, under this chapter;
(9) determine the amount of the annuities and disability benefits of members covered by the association and authorize payment of the annuities and benefits beginning as of the dates on which the annuities and benefits begin to accrue, under this chapter;
(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating expenses of the association;
(11) prepare and submit to the board and the legislature an annual financial report covering the operation of the association, as required by section 356.20;
(12) certify funds available for investment to the State Board of Investment;
(13) with the advice and approval of the board, request the State Board of Investment to sell securities on determining that funds are needed for the purposes of the association;
(14) prepare and submit biennial and annual budgets to the board and with the approval of the board submit those budgets to the Department of Management and Budget; and
(15) with the approval of the board, perform such other duties as may be required for the administration of the association and the other provisions of this chapter and for the transaction of its business. The executive director may:
(i) reduce all or part of the accrued interest and fines payable by an employing unit for reporting requirements under section 354.52, based on an evaluation of any extenuating circumstances of the employing unit;
(ii) assign association employees to conduct field audits of an employing unit to ensure compliance with the provisions of this chapter; and
(iii) recover overpayments, if not repaid to the association, by suspending or reducing the payment of a retirement annuity, refund, disability benefit, survivor benefit, or optional annuity under this chapter until the overpayment, plus interest, has been recovered.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 5. Minnesota Statutes 2014, section 354.095, is amended to read:
354.095
MEDICAL LEAVE.
(a) Upon granting a medical leave, an
employing unit must certify the leave to the association on a form specified by
the executive director. A member of the
association who is on an authorized medical leave of absence is entitled to
receive allowable service credit, not to exceed one year five years,
for the period of leave, upon making the prescribed payment to the fund under
section 354.72. A member may not receive
more than one year of allowable service
credit during any fiscal year by making payment under this section. A member may not receive disability benefits
under section 354.48 and receive allowable service credit under this section
for the same period of time.
(b) The executive director shall reject an application for disability benefits under section 354.48 if the member is applying only because an employer-sponsored provider of private disability insurance benefits requires such an application and the member would not have applied for disability benefits in the absence of such requirement. The member shall submit a copy of the disability insurance policy that requires an application for disability benefits from the plan if the member wishes to assert that the application is only being submitted because of the disability insurance policy requirement.
(c) Notwithstanding the provisions of any agreement to the contrary, employee and employer contributions may not be made to receive allowable service credit under this section if the member does not retain the right to full reinstatement both during and at the end of the medical leave.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 6. Minnesota Statutes 2015 Supplement, section 354.44, subdivision 9, is amended to read:
Subd. 9. Determining
applicable law. A former teacher who
returns to covered service following a termination and who is not receiving a
retirement annuity under this section must have earned at least 85 days one‑half
year of credited service following the return to covered service to be
eligible for improved benefits resulting from any law change enacted subsequent
to that termination.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 7. Minnesota Statutes 2014, section 354.45, is amended by adding a subdivision to read:
Subd. 3. Payment
upon death of former spouse. Upon
the death of the former spouse to whom payments are to be made before the end
of the specified payment period, payments shall be made according to the terms
of a beneficiary form completed by the former spouse or, if no beneficiary
form, to the estate of the former spouse.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 8. Minnesota Statutes 2014, section 354.46, subdivision 6, is amended to read:
Subd. 6. Application. (a) A beneficiary designation and an application for benefits under this section must be in writing on a form prescribed by the executive director.
(b) Sections 354.55, subdivision 11, and 354.60 apply to a deferred annuity payable under this section.
(c) Unless otherwise specified, the annuity must be computed under section 354.44, subdivision 2 or 6, whichever is applicable.
(d) Each designated beneficiary
eligible for a lifetime benefit under this subdivision may apply for an annuity
any time after the member's death. The
benefit may not begin to accrue more than six months before the date the
application is filed with the executive director and may not accrue before the
member's death.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 9. Minnesota Statutes 2014, section 354.48, subdivision 1, is amended to read:
Subdivision 1. Age,
service and salary requirements. A
member who is totally and permanently disabled, who has not reached the
normal retirement age as defined in section 354.05, subdivision 38, and who
has at least three years of credited allowable service at the time that the
total and permanent disability begins is entitled to a disability benefit based
on this allowable service in an amount provided in subdivision 3. If the disabled member's teaching service has
terminated at any time, at least two of the required three years of allowable
service must have been rendered after last becoming a member. Any member whose average salary is less
than $75 per month is not entitled to disability benefits.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 10. Minnesota Statutes 2014, section 354.52, subdivision 4, is amended to read:
Subd. 4. Reporting
and remittance requirements. An
employer shall remit all amounts due to the association and furnish a statement
indicating the amount due and transmitted with any other information required
by the executive director. If an amount
due is not received by the association within 14 calendar days of the payroll
warrant, the amount accrues interest at an annual rate of 8.5 percent
compounded annually from the due date until the amount is received by the
association. All amounts due and other
employer obligations not remitted within 60 days of notification by the
association must may be certified to the commissioner of management
and budget who shall deduct the amount from any state aid or appropriation
amount applicable to the employing unit.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 11. Minnesota Statutes 2014, section 354.52, subdivision 6, is amended to read:
Subd. 6. Noncompliance consequences. (a) An employing unit that does not comply with the reporting requirements under subdivision 2a, 4a, 4b, or 4d, clause (1), must pay a fine of $5 per calendar day until the association receives the required data.
(b) If the annual base salary required to be reported under subdivision 4d has not been settled or determined as of June 16, the fine commences if the annual base salary has not been reported to the association within 14 days following the settlement date.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 12. Minnesota Statutes 2014, section 423A.02, subdivision 3, is amended to read:
Subd. 3. Reallocation
of amortization state aid. (a)
Seventy percent of the difference between $5,720,000 and the current year
amortization aid distributed under subdivision 1 that is not distributed for
any reason to a municipality must be distributed by the commissioner of revenue
according to this paragraph. The
commissioner shall distribute 60 percent of the amounts derived under this
paragraph to the Teachers Retirement 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 must be made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund
Association or the Duluth Teachers Retirement Fund Association becomes
fully funded, the association's eligibility for its portion of 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 aid under paragraph (a), before June 30 annually Independent School District No. 625, St. Paul, must make an additional contribution of $800,000 each year to the St. Paul Teachers Retirement Fund Association.
(c) Thirty percent of the difference between $5,720,000 and the current year amortization aid under subdivision 1 that is not distributed for any reason to a municipality 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 July 1, 2016.
ARTICLE 4
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2015 Supplement, section 353.0162, is amended to read:
353.0162
REDUCED SALARY PERIODS SALARY CREDIT PURCHASE FOR PERIODS OF REDUCED
SALARY.
(a) A member may purchase additional
differential salary credit, as described in paragraph (c), for a
period specified in this section paragraph (b).
(b) The applicable period is a period
during which the member is receiving a no or reduced salary from
the employer while the member is:
(1) receiving temporary workers'
compensation payments related to the member's service to the public employer;
(2) on an authorized leave of absence, except that if the authorized leave of absence exceeds 12 months, the period of leave for which differential salary credit may be purchased is limited to 12 months; or
(3) on an authorized partial paid
leave of absence as a result of a budgetary or salary savings program offered
or mandated by a governmental subdivision, if certified to the executive
director by the governmental subdivision.
(c) The Differential salary amount
credit is the difference between the average monthly salary
received by the member during the a period of reduced salary under
this section specified in paragraph (b) and the average monthly
salary of the member, excluding overtime, on which contributions to the
applicable plan were would have been made during the period of
the last six months of covered employment occurring immediately before the
period of reduced salary, applied to based on the member's normal
employment period, measured in hours or otherwise, as applicable, and rate
of pay.
(d) To receive eligible differential
salary credit, the member shall pay the plan, by delivering payment to the
executive director, an amount equal to:
(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary amount;
(2) plus an employer equivalent payment equal to the applicable employer contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as applicable, multiplied by the differential salary amount;
(3) plus, if applicable, an equivalent employer additional amount equal to the additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential salary amount.
(e) The employer, by appropriate action of its governing body and documented in its official records, may pay the employer equivalent contributions and, as applicable, the equivalent employer additional contributions on behalf of the member.
(f)
Payment under this section must include interest on the contribution amount or
amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015,
and at an eight percent annual rate thereafter, prorated for applicable months
from the date on which the period of reduced salary specified under this
section in paragraph (b) terminates to the date on which the payment
or payments are received by the executive director. Payment under this section must be completed within
by the earlier earliest of:
(1) 30 days from after
termination of public service by the employee under section 353.01, subdivision
11a, or;
(2) one year after the termination of the period
specified in paragraph (b), as further restricted under this section;
or
(3) 30 days after the commencement of a disability benefit.
(g) The period for which additional
allowable salary credit may be purchased is limited to the period during which
the person receives temporary workers' compensation payments or for those
business years in which the governmental subdivision offers or mandates a
budget or salary savings program, as certified to the executive director by a
resolution of the governing body of the governmental subdivision. For an authorized leave of absence, the
period for which allowable salary credit may be purchased may not exceed 12
months of authorized leave.
(h) To purchase (g) If the
member has purchased 12 months of differential salary credit for a
subsequent period of temporary workers' compensation benefits or subsequent
authorized medical leave of absence, the member must return to public
service and render a minimum of three months of allowable service to
purchase differential salary credit for a subsequent leave of absence.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 2. Minnesota Statutes 2014, 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 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.
The refund must be in an amount equal to accumulated deductions, less
the sum of any disability or survivor benefits that have been paid by the fund,
plus annual compound interest thereon at the rate 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 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 under an order of the district court.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 3. Minnesota Statutes 2014, 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 is
entitled to receive a refund in an amount equal to accumulated deductions with,
less the sum of any disability benefits that have been paid by the fund, plus
annual compound interest to the first day of the month in which the refund is
processed.
(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.
(d) If the refund payable to a member is based on employee deductions that are determined to be invalid under section 353.27, subdivision 7, the interest payable on the invalid employee deductions is four percent.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 4. Minnesota Statutes 2015 Supplement, section 353.64, subdivision 10, is amended to read:
Subd. 10. Pension coverage for Hennepin Healthcare System, Inc.; paramedics and emergency medical technicians. An employee of Hennepin Healthcare System, Inc. is a member of the public employees police and fire retirement plan under sections 353.63 to 353.68 if the person is:
(1) certified as a paramedic or emergency medical technician by the state under section 144E.28, subdivision 4;
(2) employed full time by Hennepin
County as:
(i) a paramedic or;
(ii) an emergency medical
technician by Hennepin County; or
(iii) a supervisor or manager of paramedics or emergency medical technicians; and
(3) not eligible for coverage under the agreement signed between the state and the secretary of the federal Department of Health and Human Services making the provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to paramedics and emergency medical technicians because the person's position is excluded after that date from application under United States Code, title 42, sections 418(d)(5)(A) and 418(d)(8)(D), and section 355.07.
Hennepin Healthcare System, Inc. shall deduct the employee contribution from the salary of each full-time paramedic and emergency medical technician it employs as required by section 353.65, subdivision 2, shall make the employer contribution for each full-time paramedic and emergency medical technician it employs as required by section 353.65, subdivision 3, and shall meet the employer recording and reporting requirements in section 353.65, subdivision 4.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 5. REPEALER.
(a) Minnesota Statutes 2014, section
353.0161, subdivision 1, is repealed.
(b) Minnesota Statutes 2015 Supplement,
section 353.0161, subdivisions 2 and 3, are repealed.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
ARTICLE 5
ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2014, section 354A.093, subdivision 4, is amended to read:
Subd. 4. Eligible
payment period. (a) To receive
service credit under this section, the contributions specified in this section
must be transmitted to the applicable first class city St. Paul
Teachers Retirement Fund Association during the period which begins with the
date the individual returns to teaching service and which has a duration of
three times the length of the uniformed service period, but not to exceed five
years.
(b) Notwithstanding paragraph (a), if the payment period determined under paragraph (a) is less than one year, the contributions required under this section to receive service credit may be made within one year from the discharge date.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 2. Minnesota Statutes 2015 Supplement, section 354A.093, subdivision 6, is amended to read:
Subd. 6. Interest
requirements. The employer shall pay
interest on all equivalent employee and employer contribution amounts payable
under this section. Interest must be
computed at the rate of 8.5 percent until June 30, 2015, and eight percent
thereafter compounded annually from the end of each fiscal year of the
leave or break in service to the end of the month in which payment is received at
the annual compound rate of 8.5 percent for any period, or portion thereof,
through June 30, 2015, and eight percent thereafter.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 3. Minnesota Statutes 2015 Supplement, section 354A.096, is amended to read:
354A.096
MEDICAL LEAVE.
Any teacher in the coordinated program of
the St. Paul Teachers Retirement Fund Association who is on an authorized
medical leave of absence and subsequently returns to teaching service is
entitled to receive allowable service credit, not to exceed one year, for the
period of leave, upon making the prescribed payment to the fund. This payment must include the required
employee and employer contributions at the rates specified in section 354A.12,
subdivisions 1 and 2a, as applied to the member's average full-time monthly
salary rate on the date the leave of absence commenced plus annual
interest compounded annually from the end of the fiscal year during which
the leave terminates to the end of the month during which payment is made
at the rate of 8.5 percent until for any period, or portion thereof, through
June 30, 2015, and eight percent thereafter per year from the end of the
fiscal year during which the leave terminates to the end of the month during
which payment is made. The member
must pay the total amount required unless the employing unit, at its option,
pays the employer contributions. The
total amount required must be paid by the end of the fiscal year following the
fiscal year in which the leave of absence terminated or before the member
retires, whichever is earlier. Payment
must be accompanied by a copy of the resolution or action of the employing
authority granting the leave and the employing authority, upon granting the
leave, must certify the leave to the association in a manner specified by the
executive director. A member may not
receive more than one year of allowable service credit during any fiscal year
by making payment under this section. A
member may not receive disability benefits under section 354A.36 and receive
allowable service credit under this section for the same period of time.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 4. Minnesota Statutes 2014, section 354A.38, as amended by Laws 2015, chapter 68, article 2, section 15, is amended to read:
354A.38
EFFECT OF REFUND; REPAYMENT OF REFUND.
Subdivision 1. Effect
of refund; termination of service credit.
If a coordinated member or former coordinated member applies for and
accepts is issued a refund pursuant to section 354A.37, all
allowable service which was credited to the member or former member shall be
terminated.
Subd. 2. Repayment
of refund. A coordinated member with
at least two years of allowable service credited subsequent to the member's
last application for and acceptance payment of a refund pursuant
to section 354A.37 shall be entitled to repay the refund. The amount of the refund repayment shall be
calculated pursuant to subdivision 3. If
the member has previously applied for and accepted taken more
than one refund, and the previous refund or all refunds have
not been must be repaid pro rata, then the member shall be
entitled only to repay all outstanding refunds and shall not be entitled to
repay only the most recent refund.
Subd. 3. Computation
of refund repayment amount. If the
coordinated member elects to repay a refund under subdivision 2, the repayment
to the fund must be in an amount equal to the refunds the member has accepted
been issued plus interest at the rate of 8.5 percent until June 30,
2015, and eight percent thereafter compounded annually from the date that
the refund was accepted issued to the date that the refund is
repaid at a rate of 8.5 percent for any period, or portion thereof, through
June 30, 2015, and eight percent thereafter.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
ARTICLE 6
RETIREMENT SYSTEMS, GENERALLY, ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2014, 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:
(1) 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, and
subject to the provisions of paragraph (c).; and
(2) augmentation of a deferred annuity
calculated at the appropriate rate under the laws governing the applicable
enumerated retirement plan.
(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 annuities as
described in paragraph (a), clause (1), and augmentation of a any
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 as described in paragraph (a), clause (2),
if:
(1) the person has allowable service 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
(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 before
terminating all public service; and
(4) 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;
(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 2.7 percent per year of service for any year of service or fraction thereof. The formula percentage used by the judges retirement fund must not exceed 3.2 percent 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 3.0 percent 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 July 1, 2016.
Sec. 2. Minnesota Statutes 2015 Supplement, section 356.50, subdivision 2, is amended to read:
Subd. 2. Service credit procedure. (a) To obtain the public pension plan allowable service credit, the eligible person under subdivision 1 shall pay the required member contribution amount. The required member contribution amount is the member contribution rate or rates in effect for the pension plan during the period of service covered by the back pay award, applied to the unpaid gross salary amounts of the back pay award including unemployment insurance, workers' compensation, or wages from other sources which reduced the back award. No contributions may be made under this clause for compensation covered by a public pension plan listed in section 356.30, subdivision 3, for employment during the removal period. The person shall pay the required member contribution amount within 60 days of the date of receipt of the back pay award or within 60 days of a billing from the retirement fund, whichever is later.
(b) The public employer who wrongfully
discharged the public employee must pay an employer contribution on the back
pay award. The employer contribution
must be based on the employer contribution rate or rates in effect for the
pension plan during the period of service covered by the back pay award,
applied to the salary amount on which the member contribution amount was
determined under paragraph (a). The
employer must pay the interest on both the required member and employer
contribution amount must be paid by the employer amounts from the
date the contribution amount would have been paid to the date of actual payment
at the annual compound rate of 8.5 percent for any period for the Teachers
Retirement Association and 8.5 percent until for any period, or
portion thereof, through June 30, 2015, and eight percent thereafter, for
any other retirement plan listed in section 356.30, subdivision 3, per year,
expressed monthly, between the date the contribution amount would have been
paid to the date of actual payment. The
employer payment must be made within 30 days of the payment under paragraph
(a).
EFFECTIVE
DATE. This section is effective
July 1, 2016.
Sec. 3. Minnesota Statutes 2015 Supplement, section 356.551, subdivision 2, is amended to read:
Subd. 2. Determination. (a) Unless the minimum purchase amount set forth in paragraph (c) applies, the prior service credit purchase amount is an amount equal to the actuarial present value, on the date of payment, as calculated by the chief administrative officer of the pension plan and reviewed by the actuary retained under section 356.214, of the amount of the additional retirement annuity obtained by the acquisition of the additional service credit in this section.
(b) Calculation of this amount must be made
using the preretirement interest rate applicable to the public pension plan
specified in section 356.215, subdivision 8, and the mortality table adopted
for the public pension plan. The
calculation must assume continuous future service in the public pension plan
until, and retirement at, the age at which the minimum requirements of the fund
for normal retirement or retirement with an annuity unreduced for retirement at
an early age, including section 356.30, are met with the additional service
credit purchased. The calculation must
also assume a full-time equivalent salary, or actual salary, whichever is
greater, and a future salary history that includes annual salary increases at
the applicable salary increase rate for the plan specified in section 356.215,
subdivision 4d 8.
(c) The prior service credit purchase amount
may not be less than the amount determined by applying, for each year or
fraction of a year being purchased, the sum of the employee contribution rate,
the employer contribution rate, and the additional employer contribution rate,
if any, applicable during that period, to the person's annual salary during
that period, or fractional portion of a year's salary, if applicable, plus
interest at the annual rate of 8.5 percent until June 30, 2015, and
eight percent thereafter compounded annually from the end of the year in
which contributions would otherwise have been
made to the date on which the payment is received at the rate of 8.5
percent for any period for the Teachers Retirement Association and 8.5 percent
for any period, or portion thereof, through June 30, 2015, and eight percent
thereafter, for any other retirement plan listed in section 356.30, subdivision
3.
(d) Unless otherwise provided by statutes governing a specific plan, payment must be made in one lump sum within one year of the prior service credit authorization or prior to the member's effective date of retirement, whichever is earlier. Payment of the amount calculated under this section must be made by the applicable eligible person.
(e) However, the current employer or the
prior employer may, at its discretion, pay all or any portion of the payment
amount that exceeds an amount equal to the employee contribution rates in
effect during the period or periods of prior service applied to the actual
salary rates in effect during the period or periods of prior service, plus
interest at the rate of 8.5 percent a year compounded annually from the
date on which the contributions would otherwise have been made to the date on
which the payment is made at the rate of 8.5 percent for any period for the
Teachers Retirement Association and 8.5 percent for any period, or portion
thereof, through June 30, 2015, and eight percent thereafter, for any other
retirement plan listed in section 356.30, subdivision 3. If the employer agrees to payments under this
subdivision, the purchaser must make the employee payments required under this
subdivision within 90 days of the prior service credit authorization. If that employee payment is made, the
employer payment under this subdivision must be remitted to the chief
administrative officer of the public pension plan within 60 days of receipt by
the chief administrative officer of the employee payments specified under this
subdivision.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 4. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision to read:
Subd. 9a. Definitions. (a) The following definitions apply
for purposes of this subdivision and subdivisions 10 to 12.
(b) "Annual addition" means
the sum for the limitation year of all pretax and after-tax contributions made
by the member or the member's employer and credited to an account in the name
of the member in any defined contribution plan maintained by the employer.
(c) "Compensation" means the
compensation actually paid or made available to a member for any limitation
year, including all items of remuneration described in Code of Federal
Regulations, title 26, section 1.415(c)-2(b), and excluding all items of
remuneration described in Code of Federal Regulations, title 26, section
1.415(c)-2(c). Compensation for pension
plan purposes for any limitation year shall not exceed the applicable federal
compensation limit described in section 356.611, subdivision 2.
(d)
"Limitation year" means the calendar year or fiscal year, whichever
is applicable to the particular pension plan.
(e) "Maximum permissible
benefit" means an annual benefit of $160,000, automatically adjusted under
section 415(d) of the Internal Revenue Code for each limitation year ending
after December 31, 2001, payable in the form of a single life annuity. The new limitation shall apply to limitation
years ending with or within the calendar year of the date of the adjustment,
but a member's benefits shall not reflect the adjusted limit prior to January 1
of that calendar year. The maximum
permissible benefit amount shall be further adjusted as follows:
(1) if the member has less than ten
years of participation, the maximum permissible benefit shall be multiplied by
a fraction, the numerator of which is the number of years (or part thereof, but
not less than one year) of participation in the plan, and the denominator of
which is ten;
(2) if the annual benefit begins before
the member has attained age 62, the determination as to whether the maximum
permissible benefit limit has been satisfied shall be made, in accordance with
regulations prescribed by the United States secretary of the treasury, by
reducing the limit so that the limit, as so reduced, equals an annual benefit,
beginning when the annual benefit actually begins, which is equivalent to a
$160,000, as adjusted, annual benefit beginning at age 62; and
(3)
if the annual benefit begins after the member has attained age 65, the
determination as to whether the maximum permissible benefit limit has been
satisfied shall be made, in accordance with regulations prescribed by the
United States secretary of the treasury, by increasing the limit so that the
limit, as so increased, equals an annual benefit, beginning when the annual
benefit actually begins, which is equivalent to a $160,000, as adjusted, annual
benefit beginning at age 65.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 5. Minnesota Statutes 2015 Supplement, section 356.635, subdivision 10, is amended to read:
Subd. 10. Annual
benefit limitations; defined benefit plans. (a) The annual benefit payable to a
member shall not exceed the maximum permissible benefit. If the benefit the member would otherwise
receive for a limitation year would result in the payment of an annual benefit
in excess of the maximum permissible benefit, the benefit shall be reduced to
the extent necessary so the benefit does not exceed the maximum permissible
benefit.
(b) For purposes of applying the limits
of section 415(b) of the Internal Revenue Code, a retirement limitation
in paragraph (a), an annual benefit that is payable in any form other than
a single life annuity and that is subject to section 417(e)(3) of the
Internal Revenue Code must shall be adjusted to an actuarially
equivalent single life annuity that equals, if the annuity starting date is in
a plan year beginning after 2005, the annual amount of the single life annuity
commencing at the same annuity starting date that has the same actuarial
present value as the participant's member's form of benefit,
using whichever of the following produces the greatest annual amount:
(1) the interest rate and the mortality table or other tabular factor specified in the plan for adjusting benefits in the same form;
(2) a 5.5 percent interest rate assumption and the applicable mortality table; or
(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code and the applicable mortality table, divided by 1.05.
(c) If a member participated in more
than one pension plan in which the employer participates, the benefits under
each plan must be reduced proportionately to satisfy the limitation in
paragraph (a).
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 6. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision to read:
Subd. 11. Annual
addition limitation; defined contribution plans. The annual additions by or on behalf
of a member to a defined contribution plan for any limitation year shall not
exceed the lesser of (1) 100 percent of the member's compensation for the
limitation year or (2) the dollar limit in effect for the limitation year under
section 415(c)(1)(A) of the Internal Revenue Code, as adjusted by the United
States secretary of the treasury under section 415(d)(1)(C) of the Internal
Revenue Code.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 7. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision to read:
Subd. 12. Incorporation
by reference. Any
requirements of section 415(b) and (c) of the Internal Revenue Code and related
regulations and agency guidance not addressed by subdivisions 10 and 11 shall
be considered incorporated by reference, including provisions applicable to
qualified police and firefighters and to survivor and disability benefits. Subdivisions 10 to 12 shall be interpreted in
a manner that is consistent with the requirements of section 415(b) and (c) of
the Internal Revenue Code and the related regulations.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 8. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision to read:
Subd. 13. Correction
of errors. The executive
director of each plan may correct an operational, demographic, employer
eligibility, or plan document error as the executive director deems necessary
or appropriate to preserve and protect the plan's tax qualification under
section 401(a) of the Internal Revenue Code, including as provided in the
Internal Revenue Service's Employee Plans Compliance Resolution System (EPCRS)
or any successor thereto. To the extent
deemed necessary by the executive director to implement correction, the
executive director may:
(1) make distributions;
(2) transfer assets; or
(3) recover an overpayment by reducing
future benefit payments or designating appropriate revenue or source of funding
that will restore to the plan the amount of the overpayment.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 9. Minnesota Statutes 2014, section 356.96, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) Unless the language or context
clearly indicates that a different meaning is intended,
for the purpose of this section, the terms in paragraphs (b) to (e) this
subdivision have the meanings given them.
(b) "Chief administrative
officer" "Executive director" means the executive
director of a covered pension plan or the executive director's designee or
representative.
(c) "Covered pension plan" means a
plan enumerated in section 356.20, subdivision 2, clauses (1) to (4), (8), and
(11) to (14), but does not mean the deferred compensation plan administered
under sections 352.965 and 352.97 or to the postretirement health care
savings plan administered under section 352.98.
(d) "Governing board" means the Board of Trustees of the Public Employees Retirement Association, the Board of Trustees of the Teachers Retirement Association, or the Board of Directors of the Minnesota State Retirement System.
(e) "Person" includes means
an active, retired, deferred, or nonvested inactive participant in a covered
pension plan or a beneficiary of a participant, or an individual who has
applied to be a participant or who is or may be a survivor of a participant, or
the representative of a state agency or other governmental unit that
employs active participants in a covered pension plan.
(f)
"Petitioner" means a person who has filed a petition for review of an
executive director's determination under this section.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 10. Minnesota Statutes 2014, section 356.96, subdivision 2, is amended to read:
Subd. 2. Right
to review appeal to executive director; determination. A determination made by the chief
administrative officer person may appeal a decision by the staff of
a covered pension plan regarding a the person's eligibility,
benefits, or other rights under the plan with which the person does not
agree to the executive director of the plan. The appeal must be in writing and be
delivered to the executive director. The
executive director may overturn, modify, or affirm the staff's decision. The executive director's determination is
subject to review under this section.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 11. Minnesota Statutes 2014, section 356.96, subdivision 3, is amended to read:
Subd. 3. Notice
of determination. If the
applicable chief administrative officer denies an application or a written
request, modifies a benefit, or terminates a benefit of a person claiming a
right or potential rights under a covered pension plan, the chief
administrative officer shall notify that person through a written notice
containing: The executive
director shall issue a written notice of determination to the person who files
an appeal under subdivision 2. The
notice of determination must be delivered by certified mail to the address to
which the most recent benefit payment was sent or, if that address is that of a
financial institution, to the last known address of the person. The notice of determination shall include the
following:
(1) a statement of the reasons for the determination;
(2) a notice statement that
the person may petition the governing board of the covered pension plan for a
review of the determination and that a person's petition for review must be
filed in the administrative office of the covered pension plan within no
later than 60 days of the receipt after the date of the
written notice of the determination;
(3) a statement indicating that a failure to
petition for review within 60 days precludes the person from contesting in
any other further administrative or judicial review or
court procedure the issues determined by the chief administrative officer of
the executive director's determination;
(4) a statement indicating that all relevant
materials, documents, affidavits, and other records that the person wishes to
be reviewed in support of the petition and a list of any witnesses who will
testify before the governing board, along with a summary of their testimony,
must be filed with and received in the administrative office of the
covered pension plan at least 15 days before the date of the hearing under
subdivision 10 or as directed by the administrative law judge who conducts a
fact-finding conference under subdivision 7, paragraph (b), or a contested case
hearing under subdivision 12, paragraph (b); and
(5) a summary of this section, including all
filing requirements and deadlines.; and
(6) the statement required under
subdivision 4, paragraph (a), if applicable.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 12. Minnesota Statutes 2014, section 356.96, subdivision 4, is amended to read:
Subd. 4. Termination
of benefits. (a) If a covered
pension plan decides to the executive director's determination will
terminate a benefit that is being paid to a person, before terminating the
benefit, the chief administrative officer must, in addition to the other
procedures prescribed in this section, provide the individual with written
notice of the pending benefit termination by certified mail. The notice must explain the reason for the
pending benefit termination. The person
must be given an the notice of determination must also state that the
person has the opportunity to explain, in writing, in person, by telephone,
or by email, the reasons that the benefit should not be terminated.
(b) If the chief administrative officer
is unable to contact the person and notice of determination is returned
as undeliverable, and the person cannot be reached by any other reasonable
means of communication, and the executive director determines that a
failure to terminate the benefit will result in unauthorized payment by a
covered pension plan, the chief administrative officer executive
director may terminate the benefit immediately upon mailing a written
notice containing the information required by subdivision 3 to the address to
which the most recent benefit payment was sent and, if that address is that of
a financial institution, to the last known address of the person.
EFFECTIVE
DATE. This section is effective
July 1, 2016.
Sec. 13. Minnesota Statutes 2014, section 356.96, subdivision 5, is amended to read:
Subd. 5. Petition
for review. (a) Upon receipt of
the notice of determination required in subdivision 3, a person who
claims a right under subdivision 2 may petition the governing board of
the covered pension plan for a review of that decision by the governing
board of the covered pension plan the executive director's determination.
(b) A petition under this section must be
sent to the chief administrative officer by mail and must be postmarked The
petitioner must file the petition for review with the administrative office of
the covered pension plan no later than 60 days after the person received
date of the notice of determination required by subdivision 3. Filing of the petition is effective upon
mailing or personal delivery. The
petition must include the person's petitioner's statement of the
reason or reasons that the person believes the decision of the chief
administrative officer determination of the executive director
should be reversed or modified. The
petition may include all documentation and written materials that the
petitioner deems to be relevant. In
developing a record for review by the board when a decision is appealed, the
chief administrative officer may direct that the applicant participate in a
fact-finding session conducted by an administrative law judge assigned by the
Office of Administrative Hearings and, as applicable, participate in a
vocational assessment conducted by a qualified rehabilitation counselor on
contract with the applicable retirement system.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 14. Minnesota Statutes 2014, section 356.96, subdivision 6, is amended to read:
Subd. 6. Failure
to petition. If a timely petition
for review under subdivision 5 is not filed with the chief
administrative officer, office of the covered pension plan's
plan, the executive director's determination is final and is not subject
to further administrative or judicial review.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 15. Minnesota Statutes 2014, section 356.96, subdivision 7, is amended to read:
Subd. 7. Notice
of hearing; fact-finding; filing and timing requirements. (a) After receiving a petition, the chief
administrative officer executive director must schedule a timely
hearing to review of the petition before the governing board of
the covered pension plan or the executive director may defer the scheduling
of a hearing until after a fact-finding conference under paragraph (b). The review must be scheduled to take into
consideration any necessary accommodations to allow the petitioner to
participate in the governing board's review.
(b) The executive director may direct the
petitioner to participate in a fact-finding conference conducted by an
administrative law judge assigned by the Office of Administrative Hearings. The fact-finding conference is an informal
proceeding not subject to the provisions of Minnesota Rules, chapter 1400, except
that part 1400.7300 shall govern the admissibility of evidence and part
1400.8603 shall govern how the fact-finding conference is conducted. The administrative law judge must issue a
report and a recommendation to the governing board.
(c) If the petitioner's claim relates to
disability benefits, the executive director may direct the petitioner to
participate in a vocational assessment conducted by a qualified rehabilitation
counselor under contract with the covered pension plan. The counselor must issue a report regarding
the assessment to the governing board.
(b) (d) Not less than 30
calendar days before the date scheduled for the hearing date
before the governing board, the chief administrative officer executive
director must provide by mail to notify the petitioner an
acknowledgment of the receipt of the person's petition and a follow-up notice
of the time and place of the meeting at which the governing board is scheduled
to consider the petition and conduct the hearing. If there has been no fact-finding conference
under paragraph (b), not less than 15 days before the date scheduled for the
hearing, the petitioner and the executive director must provide a copy
to the governing board and the other party copies of all relevant
documents, documentary evidence, summaries, and recommendations
assembled by or on behalf of the plan administration to be considered by the
governing board that will be presented and a list of witnesses who will
testify, along with a summary of their testimony.
(c) all documents and materials that the
petitioner wishes to be part of the record for review must be filed with the
chief administrative officer and must be received in the offices of the covered
pension plan at least 15 days before the date of the meeting at which the
petition is scheduled to be heard.
(d) A (e) The petitioner may
request a continuance postponement of a the date
scheduled for the hearing if the request is received by the chief
administrative officer within before the governing board within a reasonable
time, but no later than ten calendar days of before the
scheduled hearing date of the applicable board meeting. The chief administrative officer must
reschedule the review within a reasonable time.
only one continuance may be granted to any petitioner. A petitioner shall be granted only one
postponement unless the applicable covered pension plan agrees to additional
postponements.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 16. Minnesota Statutes 2014, section 356.96, subdivision 8, is amended to read:
Subd. 8. Record for review. (a) All evidence, including all records, documents, and affidavits in the possession of the covered pension plan of which the covered pension plan desires to avail itself and be considered by the governing board, and all evidence which the petitioner wishes to present to the governing board, including any evidence which would otherwise be classified by law as "private," must be made part of the hearing record.
(b)
The chief administrative officer executive director must provide
a copy of the record to each member of the governing board at least seven
five days before the scheduled hearing date.
(c) Any additional document, affidavit,
or other relevant information that the petitioner requests be part of the
record may be admitted with the consent of the governing board. If a fact-finding conference under
subdivision 7, paragraph (b), is not conducted, the record is limited to those
materials provided to the petitioner in accordance with subdivision 7,
paragraph (d), those filed by the petitioner with the covered pension plan in a
timely manner in accordance with subdivision 7, paragraph (e), any vocational
assessment report under subdivision 7, paragraph (c), and any testimony at the
hearing before the governing board. Any
additional evidence may be placed in the record pursuant to subdivision 10,
paragraph (b).
(d)
If a fact-finding conference under subdivision 7, paragraph (b), or a contested
case hearing under subdivision 12, paragraph (b), is conducted, the
record before the governing board must be limited to the following:
(1) the record from the Office of
Administrative Hearings;
(2) seven-page submissions by the
petitioner and a representative of the covered pension plan commenting on the
administrative law judge's recommendation; and
(3) any vocational assessment report
under subdivision 7, paragraph (c).
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 17. Minnesota Statutes 2014, section 356.96, subdivision 9, is amended to read:
Subd. 9. Amended
determination. At any time before
the hearing before the governing board, for good cause shown and made part of
the records of the plan, the chief administrative officer executive
director may reverse, alter, amend, or modify the prior decision which is
subject to review under this section by issuing an amended decision determination
to the petitioner. Upon doing so,
the chief administrative officer executive director may cancel
the governing board's scheduled review of the person's petition and shall so
notify the petitioner.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 18. Minnesota Statutes 2014, section 356.96, subdivision 10, is amended to read:
Subd. 10. Board hearing. (a) The governing board shall hold a timely hearing on a petition for review as part of a regularly scheduled board meeting, or as part of a special meeting if so scheduled. All governing board members who participate in the decision-making process must be familiar with the record. The governing board shall make its decision on a petition solely on the record as submitted and on the proceedings of the hearing.
(b) At the hearing, the petitioner,
the petitioner's attorney representative, if any, and the chief
administrative officer executive director and a representative of the
covered pension plan who does not also serve as the governing board's legal
advisor during the board's decision-making process, may state and discuss with
the governing board their positions with respect to the petition. If no fact-finding conference under
subdivision 7, paragraph (b), or contested case hearing under subdivision 12,
paragraph (b), was conducted, additional evidence may be received in the form
of testimony from previously disclosed witnesses. The governing board may allow further
documentation to be placed in the record at the board meeting only with the
agreement of both the chief administrative officer executive director
and the petitioner. The chief
administrative officer executive director may not otherwise
participate in the board's decision-making process.
(b)
When a petition presents a contested issue of law, an assistant attorney
general may participate and may argue on behalf of the legal position taken by
the chief administrative officer if that assistant attorney general does not
also serve as the governing board's legal advisor during the board's
decision-making process.
(c) A motion by a board member, supported
by a summary of the relevant facts, conclusions and reasons, as properly
amended and approved by a majority of the governing board, constitutes the
board's final decision. A verbatim
statement of the board's final decision must be served upon the petitioner. If the decision is contrary to the
petitioner's desired outcome, the notice shall inform the petitioner of the
appeal rights set forth in subdivision 13.
(d) (c) If a petitioner who
received timely notice of a scheduled hearing fails to appear, the governing
board may nevertheless hear the petition and issue a decision.
(d) The governing board's decision shall
be made upon a motion by a board member and approval by a majority of the
governing board. The governing board
must issue its decision as a written order containing findings of fact,
conclusions of law, and the board's decision no later than 30 days after the
hearing. If the decision is contrary to
the petitioner's desired outcome, the notice must inform the petitioner of the
appeal rights set forth in subdivision 13.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 19. Minnesota Statutes 2014, section 356.96, subdivision 11, is amended to read:
Subd. 11. Disability
medical issues. (a) If a
person petitions the governing board the petitioner seeks to reverse
or modify a determination which found by the executive director
that there exists no was insufficient medical data supporting
to support an application for disability benefits, the governing
board may reverse that determination only if there is in fact medical
evidence supporting the application. The
governing board has the discretion to resubmit a disability benefit
application at any time to a medical advisor for reconsideration, and the
resubmission may include an instruction that further medical examinations be
obtained.
(b) The governing board may make a
determination contrary to the recommendation of the medical advisor only if
there is expert medical evidence in the record to support its contrary decision. If there is no medical evidence contrary to
the opinion of the medical advisor in the record and the medical advisor
attests that the decision was made in accordance with the applicable disability
standard, the board must follow the decision of the medical advisor regarding the
cause of the disability.
(c) The obligation of the governing board
to follow the decision of the medical advisor under paragraph (b) does not
apply to instances when the governing board makes a determination different
from the recommendation of the medical advisor on issues that do not involve
medical issues.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 20. Minnesota Statutes 2014, section 356.96, subdivision 12, is amended to read:
Subd. 12. Referral
for administrative hearing. (a) Notwithstanding
any provision of sections 14.03, 14.06, and 14.57 to 14.69 to the contrary, a
challenge to a determination of the chief administrative officer of a covered
pension plan A fact-finding conference under subdivision 7, paragraph
(b), must be conducted exclusively under the procedures set forth in this
section and is not as a contested case under chapter 14.
(b) Notwithstanding the provisions of
paragraph (a), A governing board, in its sole discretion, may refer a
petition brought under this section to the Office of Administrative Hearings
for a contested case hearing under sections 14.57 to 14.69.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 21. Minnesota Statutes 2014, section 356.96, subdivision 13, is amended to read:
Subd. 13. Appeal
of the governing board's decision; judicial review. Within No later than 60
days of after the date of the mailing of the notice of the
governing board's decision, the petitioner may appeal the decision by filing a
writ of certiorari with the Court of Appeals under section 606.01 and Rule 115
of the Minnesota Rules of Civil Appellate Procedure. Failure by a person to appeal to the Court of
Appeals within the 60-day period precludes the person from later raising, in
any subsequent administrative hearing or court proceeding, those
substantive and procedural issues that reasonably should have been raised upon
a timely appeal.
Sec. 22. REPEALER.
Minnesota Statutes 2014, sections
356.611, subdivisions 3, 3a, 4, and 5; and 356.96, subdivisions 14 and 15, are
repealed.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
ARTICLE 7
ACTUARIAL ASSUMPTION CHANGES
Section 1. Minnesota Statutes 2015 Supplement, section 356.215, subdivision 8, is amended to read:
Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use the applicable following interest assumption:
(1) select and ultimate interest rate
assumption
|
|
|
|
|
|
The select preretirement interest rate
assumption for the period through June 30, 2017, is eight percent.
(2) single rate interest rate
assumption
plan |
interest rate assumption |
|
general state employees retirement plan |
8% |
|
correctional state employees retirement plan |
8 |
|
State Patrol retirement plan |
8 |
|
legislators retirement plan, and for the constitutional officers calculation of total plan liabilities |
0 |
|
judges retirement plan |
8 |
|
general public employees retirement plan |
8 |
|
public employees police and fire retirement plan |
8 |
|
local government correctional service retirement plan |
8 |
|
teachers retirement plan |
8
|
|
St. Paul teachers retirement plan |
8 |
|
Bloomington Fire Department Relief Association |
6 |
|
local monthly benefit volunteer firefighter relief associations |
5 |
|
monthly benefit retirement plans in the statewide volunteer firefighter retirement plan |
6 |
|
(b)(1)
If funding stability has been attained, the valuation must use a postretirement
adjustment rate actuarial assumption equal to the postretirement adjustment
rate specified in section 354A.27, subdivision 7; 354A.29, subdivision 9;,
or 356.415, subdivision 1, whichever applies.
(2) If funding stability has not been
attained, the valuation must use a select postretirement adjustment rate
actuarial assumption equal to the postretirement adjustment rate specified in
section 354A.27, subdivision 6a; 354A.29, subdivision 8;, or
356.415, subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a period
ending when the approved actuary estimates that the plan will attain the
defined funding stability measure, and thereafter an ultimate postretirement
adjustment rate actuarial assumption equal to the postretirement adjustment
rate under section 354A.27, subdivision 7; 354A.29, subdivision 9;,
or 356.415, subdivision 1, for the applicable period or periods beginning when
funding stability is projected to be attained.
(c) 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
plan |
future salary increase assumption |
|
legislators retirement plan |
|
5% |
judges retirement plan |
|
2.75 |
Bloomington Fire Department Relief Association |
|
4 |
(2) age-related future salary increase age-related
select and ultimate future salary increase assumption or graded rate future
salary increase assumption
plan |
future salary increase assumption |
local government correctional service retirement plan |
assumption B |
St. Paul teachers retirement plan |
assumption A |
For plans other than the St. Paul
Teachers Retirement plan and the local government correctional service
retirement plan, the select calculation is:
Fund Association, during the a designated select
period of 15 years, in addition to the age-based rates shown below, a
designated percentage rate of 0.2 percent is multiplied by the result of
the designated integer 15 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 ten years and the designated integer is ten for the local
government correctional service retirement plan and 15 for the St. Paul
Teachers Retirement Fund Association. The
designated percentage rate is 0.2 percent for the St. Paul Teachers
Retirement Fund Association.
The ultimate future salary increase assumption is:
(3) service-related ultimate future
salary increase assumption
general state employees retirement plan of the Minnesota State Retirement System |
assumption A |
general employees retirement plan of the Public Employees Retirement Association |
assumption B |
Teachers Retirement Association |
assumption C |
public employees police and fire retirement plan |
assumption D |
State Patrol retirement plan |
assumption E |
correctional state employees retirement plan of the Minnesota State Retirement System |
assumption F |
service length |
A |
B |
C |
D |
E |
F |
1 |
|
|
|
12.75% |
7.75% |
5.75% |
2 |
|
|
|
10.75 |
7.25 |
5.6 |
3 |
|
|
|
8.75 |
6.75 |
5.45 |
4 |
|
|
|
7.75 |
6.5 |
5.3 |
5 |
|
|
|
6.25 |
6.25 |
5.15 |
6 |
|
|
7 |
5.85 |
6 |
5 |
7 |
|
|
6.85 |
5.55 |
5.75 |
4.85 |
8 |
|
|
6.7 |
5.35 |
5.6 |
4.7 |
9 |
|
|
6.55 |
5.15 |
5.45 |
4.55 |
10 |
|
|
6.4 |
5.05 |
5.3 |
4.4 |
11 |
|
|
6.25 |
4.95 |
5.15 |
4.3 |
12 |
|
|
6 |
4.85 |
5 |
4.2 |
13 |
|
|
5.75 |
4.75 |
4.85 |
4.1 |
14 |
|
|
5.5 |
4.65 |
4.7 |
4 |
15 |
|
|
5.25 |
4.55 |
4.55 |
3.9 |
16 |
|
|
5 |
4.55 |
4.4 |
3.8 |
17 |
|
|
4.75 |
4.55 |
4.25 |
3.7 |
18 |
|
|
4.5 |
4.55 |
4.1 |
3.6 |
19 |
|
|
|
4.55 |
3.95 |
3.5 |
20 |
|
|
|
4.55 |
3.8 |
3.5 |
21 |
|
|
|
4.45 |
3.75 |
3.5 |
22 |
|
|
|
4.35 |
3.75 |
3.5 |
23 |
|
|
|
4.25 |
3.75 |
3.5 |
24 |
|
|
|
4.25 |
3.75 |
3.5 |
25 |
|
|
|
4.25 |
3.75 |
3.5 |
26 |
|
|
|
4.25 |
3.75 |
3.5 |
27 |
|
|
3.5 |
4.25 |
3.75 |
3.5 |
28 |
|
|
3.5 |
4.25 |
3.75 |
3.5 |
29 |
|
|
3.5 |
4.25 |
3.75 |
3.5 |
30 or more |
|
|
3.5 |
4.25 |
3.75 |
3.5 |
(d) 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:
plan |
payroll growth assumption |
general state employees retirement plan of the Minnesota State Retirement System |
3.5% |
correctional state employees retirement plan |
3.5 |
State Patrol retirement plan |
3.5 |
judges retirement plan |
2.75 |
general employees retirement plan of the Public Employees Retirement Association |
3.5 |
public employees police and fire retirement plan |
3.5 |
local government correctional service retirement plan |
3.5 |
teachers retirement plan |
|
St. Paul teachers retirement plan |
4 |
(e) The assumptions set forth in paragraphs (c) and (d) 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 July 1, 2016, and applies to actuarial valuations prepared on or
after that date.
ARTICLE 8
VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS MODIFICATIONS
Section 1. Minnesota Statutes 2015 Supplement, section 353G.02, subdivision 6, is amended to read:
Subd. 6. Initial administrative expenses of the monthly benefit retirement division; allocation of reimbursement. (a) The administration expenses incurred by the Public Employees Retirement Association in the establishment of the monthly benefit retirement division of the voluntary statewide volunteer firefighter retirement plan, including any computer programming expenses and any actuarial consultant expenses, are payable from the assets of the initial monthly benefit volunteer firefighter relief association that elects to transfer its administration to the voluntary statewide volunteer firefighter retirement plan, following the transfer of assets.
(b) The administrative expenses in
excess of $33,600 paid under paragraph (a) must be reimbursed by the next nine
monthly benefit volunteer firefighter relief associations that transfer plan
administration to the voluntary statewide volunteer firefighter retirement plan. The reimbursement charge for each of the nine
is three-tenths of one percent of the market value of assets of the volunteer
firefighter relief association as of December 31, 2012. The reimbursement amounts, up to the amount
of administrative expenses actually incurred under paragraph (a) in excess of $33,600, must be credited to the account
of the fire department associated with the former monthly benefit volunteer
firefighter relief association that first transferred plan administration to
the volunteer firefighter retirement plan.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. [424A.003]
CERTIFICATION OF SERVICE CREDIT.
(a) When a municipal fire department, a
joint powers fire department, or an independent nonprofit firefighting
corporation is directly associated with the volunteer firefighters relief
association, the fire chief shall certify annually by March 31 the service
credit for the previous calendar year of each volunteer firefighter rendering
active service with the fire department.
(b) The certification shall be made to
an officer of the relief association's board of trustees and to the municipal
clerk or clerk-treasurer of the largest municipality in population served by
the associated fire department.
(c) The fire chief shall notify each
volunteer firefighter rendering active service with the fire department of the
amount of service credit rendered by the firefighter for the previous calendar
year. The service credit notification
and a description of the process and deadlines for the firefighter to challenge
the fire chief's determination of service credit must be provided to the firefighter
60 days prior to its certification to the relief association and municipality. If the service credit amount is challenged,
the fire chief shall accept and consider any additional pertinent information
and shall make a final determination of service credit.
(d) The service credit certification
must be expressed as the number of completed months of the previous year during
which an active volunteer firefighter rendered at least the minimum level of
duties as specified and required by the fire department under the rules,
regulations, and policies applicable to the fire department. No more than one year of service credit may
be certified for a calendar year.
(e) If a volunteer firefighter who is a
member of the relief association leaves active firefighting service to render
active military service that is required to be governed by the federal
Uniformed Services Employment and Reemployment Rights Act, as amended, the
firefighter must be certified as providing service credit for the period of the
military service, up to the applicable limit of the federal Uniformed Services
Employment and Reemployment Rights Act. If
the volunteer firefighter does not return from the military service in
compliance with the federal Uniformed Services Employment and Reemployment
Rights Act, the service credits applicable to that military service credit
period are forfeited and canceled at the end of the calendar year in which the
time limit set by federal law occurs.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 3. Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision to read:
Subd. 4a. Prohibition
on receipt of concurrent service credit.
No firefighter may be credited with service credit in a volunteer
firefighters relief association for the same hours of service for which
coverage is already provided in a fund operated pursuant to chapter 353.
EFFECTIVE DATE. This section is effective January 1, 2017, and
applies to service rendered on or after that date.
Sec. 4. Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision to read:
Subd. 5a. Volunteer
emergency medical personnel. Volunteer
emergency medical personnel are eligible to be members of the applicable
volunteer firefighters relief association and to qualify for service pension or
other benefit coverage of the relief association on the same basis as fire
department personnel who perform or supervise fire suppression or fire
prevention duties, if:
(1) the fire department employs or
otherwise uses the services of persons solely as volunteer emergency medical
personnel to perform emergency medical response duties or supervise emergency
medical response activities;
(2)
the bylaws of the relief association authorize the eligibility; and
(3) the eligibility is approved by:
(i) the municipality, if the fire
department is a municipal department;
(ii) the joint powers board, if the
fire department is a joint powers entity; or
(iii) the contracting municipality or
municipalities, if the fire department is an independent nonprofit firefighting
corporation.
EFFECTIVE DATE. This section is effective January 1, 2017, and
applies to service rendered on or after that date.
Sec. 5. Minnesota Statutes 2014, section 424A.015, is amended by adding a subdivision to read:
Subd. 7. Combined
service pensions. (a) A
volunteer firefighter with credit for service as an active firefighter in more
than one volunteer firefighters relief association is entitled to a prorated
service pension from each relief association if:
(1) the articles of incorporation or
bylaws of the relief associations provide;
(2) the applicable requirements of
paragraphs (b) and (c) are met; and
(3) the volunteer firefighter otherwise
qualifies.
(b) A volunteer firefighter receiving a
prorated service pension under this subdivision must have a total combined
amount of service credit from the two or more relief associations of ten years
or more, unless the bylaws of every affected relief association specify less
than a ten-year service vesting requirement, in which case, the total amount of
required service credit is the longest service vesting requirement of the
relief associations. The member must have one year or more of service credit in
each relief association. The prorated service
pension must be based on:
(1) for defined benefit relief
associations, the service pension amount in effect for the relief association
on the date on which active volunteer firefighting services covered by that
relief association terminate; and
(2) for defined contribution relief
associations, the member's individual account balance on the date on which
active volunteer firefighting services covered by that relief association
terminate.
(c) To receive a prorated service
pension under this subdivision, the firefighter must become a member of the
second or succeeding association and must give notice of membership to the
prior association within two years of the date of termination of active service
with the prior association. The second
or subsequent relief association secretary must certify the notice.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 6. Minnesota Statutes 2015 Supplement, section 424A.02, subdivision 3, is amended to read:
Subd. 3. Flexible service pension maximums. (a) Annually on or before August 1 as part of the certification of the financial requirements and minimum municipal obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable, the secretary or some other official of the relief association designated in the bylaws of each defined benefit relief association shall calculate and certify to the governing body of the applicable municipality the average amount of available financing per active covered firefighter for the most recent three-year
period. The amount of available financing includes any amounts of fire state aid and police and firefighter retirement supplemental state aid received or receivable by the relief association, any amounts of municipal contributions to the relief association raised from levies on real estate or from other available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.
(b) The maximum service pension which the defined benefit relief association has authority to provide for in its bylaws for payment to a member retiring after the calculation date when the minimum age and service requirements specified in subdivision 1 are met must be determined using the table in paragraph (c) or (d), whichever applies.
(c) For a defined benefit relief association where the governing bylaws provide for a monthly service pension to a retiring member, the maximum monthly service pension amount per month for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter:
(d) For a defined benefit relief association in which the governing bylaws provide for a lump-sum service pension to a retiring member, the maximum lump-sum service pension amount for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter for the applicable specified period:
(e) For a defined benefit relief association in which the governing bylaws provide for a monthly benefit service pension as an alternative form of service pension payment to a lump-sum service pension, the maximum service pension amount for each pension payment type must be determined using the applicable table contained in this subdivision.
(f) If a defined benefit relief association establishes a service pension in compliance with the applicable maximum contained in paragraph (c) or (d) and the minimum average amount of available financing per active covered firefighter is subsequently reduced because of a reduction in fire state aid or because of an increase in the number of active firefighters, the relief association may continue to provide the prior service pension amount specified in its bylaws, but may not increase the service pension amount until the minimum average amount of available financing per firefighter under the table in paragraph (c) or (d), whichever applies, permits.
(g) No defined benefit relief association is authorized to provide a service pension in an amount greater than the largest applicable flexible service pension maximum amount even if the amount of available financing per firefighter is greater than the financing amount associated with the largest applicable flexible service pension maximum.
(h) The method of calculating service pensions must be applied uniformly for all years of active service. Credit must be given for all years of active service except for caps on service credit if so provided in the bylaws of the relief association.
EFFECTIVE
DATE; LOCAL APPROVAL. (a) For
relief associations other than the Eden Prairie volunteer firefighters relief
association, this section is effective January 1, 2017.
(b) For the Eden Prairie volunteer
firefighters relief association, this section is effective the day after the
city council of Eden Prairie and its chief clerical officer timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and
3, or January 1, 2017, whichever is earlier.
Sec. 7. Minnesota Statutes 2014, section 424B.20, subdivision 4, is amended to read:
Subd. 4. Benefit trust fund establishment. (a) After the settlement of nonbenefit legal obligations of the special fund of the volunteer firefighters relief association under subdivision 3, the board of the relief association shall transfer the remaining assets of the special fund, as securities or in cash, as applicable, to the chief financial official of the municipality in which the associated fire department was located if the fire department was a municipal fire department or to the chief financial official of the municipality with the largest population served by the fire department if the fire department was an independent nonprofit firefighting corporation. If the fire department was a joint powers entity, the remaining assets of the special fund shall be transferred to the chief financial official of the municipality designated as the fiscal agent in the joint powers agreement or, if the agreement does not designate a municipality as the fiscal agent, the remaining assets of the special fund shall be transferred to the chief financial official of the municipality with the largest population served by the joint powers fire department. The board shall also compile a schedule of the relief association members to whom a service pension is or will be
owed, any beneficiary to whom a benefit is owed, the amount of the service pension or benefit payable based on the applicable bylaws and state law and the service rendered to the date of the dissolution, and the date on which the pension or benefit would first be payable under the bylaws of the relief association and state law.
(b) The municipality in which is
located receiving the remaining assets of the special fund of a
volunteer firefighters relief association that is dissolving under this section
shall establish a separate account in the municipal treasury which must
function as a trust fund for members of the volunteer firefighters relief
association and their beneficiaries to whom the volunteer firefighters relief
association owes a service pension or other benefit under the bylaws of the
relief association and state law. Upon
proper application, on or after the initial date on which the service pension
or benefit is payable, the municipal treasurer shall pay the pension or benefit
due, based on the schedule prepared under paragraph (a) and the other records
of the dissolved relief association. The
trust fund under this section must be invested and managed consistent with
chapter 356A and section 424A.095. Upon
payment of the last service pension or benefit due and owing, any remaining
assets in the trust fund cancel to the general fund of the municipality.
or, if the fire department was a joint powers entity, any remaining assets
in the trust fund cancel to the general fund of each municipality that was a
contracting party to the joint powers agreement as specified in the joint
powers agreement. If the joint powers
agreement does not specify how the remaining assets are to be distributed among
the contracting parties, each of the contracting parties shall receive a pro
rata share of the remaining assets based on the proportion of total operating
contributions each contracting municipality made to the joint powers entity
over the most recent ten calendar years.
If the special fund of the volunteer firefighters relief association had
an unfunded actuarial accrued liability upon dissolution, the municipality is
liable for that unfunded actuarial accrued liability. If the fire department was a joint powers
entity, the contracting municipalities are liable for their share of the
unfunded actuarial accrued liability as specified in the joint powers agreement. If the joint powers agreement does not
specify liability for any unfunded actuarial accrued liability, the contracting
municipalities are liable for their pro rata share of the unfunded actuarial
accrued liability based on the proportion of total operating contributions each
contracting municipality made to the joint powers entity over the most recent
ten calendar years.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 8. EDEN
PRAIRIE VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION SERVICE PENSIONS; RETURN TO
ACTIVE SERVICE.
(a) Notwithstanding any provision of
Minnesota Statutes, section 424A.01, subdivision 6, section 424A.02, subdivision
2, or any other provision of law to the contrary, if the bylaws of the Eden
Prairie volunteer firefighters relief association so provide, a former
firefighter who has received a lump-sum service pension or is receiving a
monthly benefit service pension and returns to active relief association
membership under Minnesota Statutes, section 424A.01, subdivision 6, paragraph
(b), is entitled to receive an unreduced lump-sum service pension for the
resumption service period if the firefighter completes at least three years of
active service as an active member of the fire department during the resumption
service period and completes at least three years of active membership with the
relief association during the resumption service period.
(b) A lump-sum service pension must be
calculated by applying the service pension amount in effect on the date of the
firefighter's termination of the resumption service for all years of the
resumption service. No firefighter may
be paid a service pension more than once for the same period of service. Payment of a lump-sum service pension shall
have no effect on the firefighter's previous service pension.
EFFECTIVE
DATE. This section is
effective the day after the Eden Prairie City Council and its chief clerical
officer timely complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
Sec. 9. COLERAINE
AND BOVEY VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATIONS; CONSOLIDATION.
Subdivision 1. Consolidation. Notwithstanding any provision of Minnesota
Statutes, section 424B.02, subdivision 2, paragraph (c), to the contrary, the
Coleraine and Bovey volunteer firefighters relief associations are consolidated
effective September 1, 2016, if all other consolidation requirements are
satisfied pursuant to Minnesota Statutes, chapter 424B.
Subd. 2. Reporting. The consolidated relief association
created under subdivision 1 shall report the number of active firefighter
members of the relief association as of September 1, 2016, to the state auditor
and to the commissioner of revenue no later than September 7, 2016. The commissioner may use this information to
determine and calculate any minimum fire state aid payable under Minnesota
Statutes, section 69.021, beginning with aid payable in 2016.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. REPEALER.
Minnesota Statutes 2014, section
424A.02, subdivision 13, is repealed.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
ARTICLE 9
MSRS-ADMINISTERED RETIREMENT PLAN MODIFICATIONS
Section 1. Minnesota Statutes 2014, section 352.113, subdivision 2, is amended to read:
Subd. 2. Application; accrual of benefits. (a) An employee making claim for a total and permanent disability benefit, or someone acting on behalf of the employee upon proof of authority satisfactory to the director, shall file a written application for benefits in the office of the system on or before the deadline specified in subdivision 4, paragraph (g).
(b) The application must be in a form and manner prescribed by the executive director.
(c) The benefit shall begin to accrue the day following the start of disability or the day following the last day paid, whichever is later, but not earlier than 180 days before the date the application is filed with the director.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 2. Minnesota Statutes 2014, section 352.113, subdivision 4, is amended to read:
Subd. 4. Medical or psychological examinations; authorization for payment of benefit. (a) Any physician, psychologist, chiropractor, or physician assistant providing any service specified in this section must be licensed.
(b) An applicant shall provide a detailed
report signed by a physician, and at least one additional report signed by a
physician, chiropractor, psychologist, or physician assistant with evidence to
support an application for total and permanent disability. The reports must include an expert opinion
regarding whether the employee is permanently and totally disabled within the
meaning of section 352.01, subdivision 17, and that the disability arose before
the employee was placed on any paid or unpaid leave of absence or
terminated public service.
(c) If there is medical evidence that supports the expectation that at some point the person applying for the disability benefit will no longer be disabled, the decision granting the disability benefit may provide for a termination date upon which the total and permanent disability can be expected to no longer exist. When a termination date is part of the decision granting benefits, prior to the benefit termination the executive director shall review any evidence provided by the disabled employee to show that the disabling condition for which benefits were initially granted continues. If the benefits cease, the disabled employee may follow the appeal procedures described in section 356.96 or may reapply for disability benefits using the process described in this subdivision.
(d) Any claim to disability must be supported by a report from the employer indicating that there is no available work that the employee can perform with the disabling condition and that all reasonable accommodations have been considered. Upon request of the executive director, an employer shall provide evidence of the steps the employer has taken to attempt to provide reasonable accommodations and continued employment to the claimant.
(e) The director shall also obtain written certification from the employer stating whether the employment has ceased or whether the employee is on sick leave of absence because of a disability that will prevent further service to the employer and that the employee is not entitled to compensation from the employer.
(f) The medical adviser shall consider the
reports of the physicians, physician assistants, psychologists, and
chiropractors and any other evidence supplied by the employee or other
interested parties. If the medical
adviser finds the employee totally and permanently disabled, the adviser shall
make appropriate recommendation to the director in writing together with the
date from which the employee has been totally disabled. The director shall then determine if the
disability occurred within 18 months of filing the application, while
still in the employment of the state, and the propriety of authorizing
payment of a disability benefit as provided in this section and
constitutes a total and permanent disability as defined in section 353.01,
subdivision 19.
(g) A terminated employee may apply for a disability benefit within 18 months of termination as long as the disability occurred while in the employment of the state. The fact that an employee is placed on leave of absence without compensation because of disability does not bar that employee from receiving a disability benefit.
(h) Upon appeal, the board of directors
may extend the disability benefit application deadline in paragraph (g) by an
additional 18 months if the terminated employee is determined by the board of
directors to have a cognitive impairment that made it unlikely that the
terminated employee understood that there was an application deadline or that
the terminated employee was able to meet the application deadline.
(i) Unless the payment of a disability benefit has terminated because the employee is no longer totally disabled, or because the employee has reached normal retirement age as provided in this section, the disability benefit must cease with the last payment received by the disabled employee or which had accrued during the lifetime of the employee unless there is a spouse surviving. In that event, the surviving spouse is entitled to the disability benefit for the calendar month in which the disabled employee died.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
ARTICLE 10
PERA-ADMINISTERED RETIREMENT PLAN MODIFICATIONS
Section 1. Minnesota Statutes 2014, section 353.01, subdivision 43, is amended to read:
Subd. 43. Line
of duty death. "Line of duty
death" means:
(1)
a death that occurs while performing or as a direct result of performing normal
or less frequent duties which are specific to protecting the property and
personal safety of others and that present inherent dangers that are specific
to the positions covered by the public employees police and fire plan.;
or
(2) a death that is determined by the
commissioner of public safety to meet the requirements of section 299A.41,
subdivision 3.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
ARTICLE 11
GENERALLY APPLICABLE RETIREMENT CHANGES
Section 1. Minnesota Statutes 2014, section 356.24, subdivision 1, is amended to read:
Subdivision 1. Restriction; exceptions. It is unlawful for a school district or other governmental subdivision or state agency to levy taxes for or to contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees other than:
(1) to a supplemental pension plan that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
(3) to the individual retirement account plan established by chapter 354B;
(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or terminating employee;
(5) for employees other than personnel employed by the Board of Trustees of the Minnesota State Colleges and Universities and covered under the Higher Education Supplemental Retirement Plan under chapter 354C, 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;
(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 $7,000
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;
(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;
(14) to the alternative retirement plans established by the Hennepin County Medical Center under section 383B.914, subdivision 5; or
(15) to the International Brotherhood of Teamsters Central States pension plan for fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 by virtue of that employment.
Sec. 2. [356.631]
ADDITIONAL SOURCES OF FUNDING.
Notwithstanding any other provision of
law to the contrary, in addition to all sources of funding described in
Minnesota Statutes, section 356.63, paragraphs (a) and (b), any public retirement
plan described in Minnesota Statutes, section 356.63, paragraph (b), is
authorized to accept, at its discretion, for deposit in its fund the following:
(1) gifts;
(2) donations;
(3)
bequests; and
(4) life insurance death benefits.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. REPEALER.
Minnesota Statutes 2014, sections
352.04, subdivision 11; and 353.34, subdivision 6, are repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 12
SMALL GROUP RETIREMENT CHANGES
Section 1.
MSRS-GENERAL RETIREMENT
ELIGIBILITY CLARIFICATION; SERVICE CREDIT PURCHASE IN CERTAIN INSTANCES.
(a) Notwithstanding any provision of
law to the contrary, an eligible person described in paragraph (b) is entitled
to purchase prior uncredited service credit under paragraph (c) and, if the
service credit purchase is made, to have an effective start date for active
retirement plan membership of June 1, 1989, and to retire under Minnesota Statutes,
section 352.116, subdivision 1.
(b) An eligible person is a person who:
(1) was born on the dates as follows:
|
employee |
birth date |
|
A |
October 2, 1968 |
|
B |
June 12, 1965 |
|
C |
August 10, 1958 |
|
D |
April 29, 1963 |
|
E |
April 11, 1955 |
|
F |
August 13, 1966 |
|
G |
April 22, 1961 |
|
H |
December 31, 1958 |
|
I |
October 10, 1966 |
|
J |
February 4, 1961 |
|
K |
August 21, 1963 |
|
L |
January 23, 1960 |
|
M |
September 19, 1966 |
|
N |
November 3, 1961 |
|
O |
June 13, 1958 |
|
P |
June 23, 1954 |
|
Q |
October 20, 1956 |
|
R |
July 28, 1955 |
|
S |
May 6, 1960 |
|
T |
March 19, 1966 |
|
U |
August 19, 1966 |
|
V |
March 14, 1959 |
(2) became an employee of the Minnesota Department of Transportation prior to July 1, 1989, in a position which was not covered by the general state employees retirement plan of the Minnesota State Retirement System;
(3) was eventually employed as a
permanent employee after June 30, 1989, and covered by the general state
employees retirement plan of the Minnesota State Retirement System on the dates
as follows:
|
employee |
membership record date |
|
A |
September 27, 1989 |
|
B |
September 27, 1989 |
|
C |
September 26, 1989 |
|
D |
September 27, 1989 |
|
E |
September 26, 1989 |
|
F |
September 13, 1989 |
|
G |
September 1, 1989 |
|
H |
September 27, 1989 |
|
I |
September 27, 1989 |
|
J |
September 13, 1989 |
|
K |
September 13, 1989 |
|
L |
September 26, 1989 |
|
M |
August 30, 1989 |
|
N |
September 26, 1989 |
|
O |
September 13, 1989 |
|
P |
September 27, 1989 |
|
Q |
September 27, 1989 |
|
R |
September 27, 1989 |
|
S |
September 13, 1989 |
|
T |
September 13, 1989 |
|
U |
September 27, 1989 |
|
V |
September 26, 1989 |
(4) was sent annual statements by the
Minnesota State Retirement System between July 1, 2005, and July 1, 2015,
indicating eligibility for a retirement benefit under Minnesota Statutes,
section 352.116, subdivision 1; and
(5) was sent notification from the
Minnesota State Retirement System revising the start date for general state
employees retirement plan membership from a date before July 1, 1989, to a date
after June 30, 1989, and indicating consequent inapplicability of Minnesota
Statutes, section 352.116, subdivision 1.
(c) An eligible person may purchase
allowable service credit in the general state employees retirement plan of the
Minnesota State Retirement System by paying an amount equal to the employer
contributions and employee contributions that would have been paid from June 1,
1989, to the end of the month prior to the date the employee entered covered
service plus interest at the rate of 8.5 percent until June 30, 2015, and eight
percent thereafter compounded annually on the combined employer and employee
contribution amount from the date the contributions would have been paid to the
date the Minnesota State Retirement System receives payment for this service
credit purchase. The payment must be
made in a lump sum.
(d) An eligible person who purchases
allowable service credit under paragraph (c) has a June 1, 1989, start date for
the purpose of allowable service credited by the general state employees
retirement plan of the Minnesota State Retirement System and is eligible for a
retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.
(e) Authority to purchase prior
uncredited service credit under this section expires on July 1, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. PERA-GENERAL;
PURCHASE OF SERVICE CREDIT FOR ST. CLOUD STATE UNIVERSITY EMPLOYEE.
(a) Notwithstanding any provision of
law to the contrary, an eligible person described in paragraph (b) is entitled
to purchase from the general employees retirement plan of the Public Employees
Retirement Association allowable service credit under Minnesota Statutes,
section 353.01, subdivision 16, for the period of service described in
paragraph (c).
(b) An eligible person is a person who:
(1) was born on September 1, 1960;
(2) was an employee of St. Cloud
State University on March 14, 2016;
(3) was a member of the general
employees retirement plan of the Public Employees Retirement Association on
March 14, 2016;
(4) was employed by St. Cloud
Technical College on April 1, 1993, and was a member of the general employees
retirement plan of the Public Employees Retirement Association; and
(5) changed employment within St. Cloud
State University on February 22, 2006, and was erroneously placed into the
higher education individual retirement account plan from February 22, 2006,
until May 10, 2011, by the Minnesota State Colleges and Universities system.
(c) The period of uncredited service
authorized for purchase is the period of February 22, 2006, until May 10, 2011,
during which time the eligible person was erroneously placed into and
contributed to the higher education individual retirement account plan.
(d) The eligible person's member
contributions to the higher education individual retirement account plan must
be transferred to the Public Employees Retirement Association with any earned
investment returns on those contributions.
The eligible person must pay the member contributions that the eligible
person would have made to the Public Employees Retirement Association on the
eligible person's compensation from the Minnesota State Colleges and
Universities system for the period of service described in paragraph (c) as if
the person had been covered by the Public Employees Retirement Association
during the period, plus annual compound interest on that amount at the rate of
8.5 percent from February 22, 2006, until June 30, 2015, and eight percent from
July 1, 2015, until the date on which payment is made to the Public Employees
Retirement Association, less the transferred member contributions and
investment earnings.
(e) Upon transfer of the equivalent
member contribution amount and any additional payments under paragraph (d), the
balance of the eligible person's higher education individual retirement account
plan account must be transferred to the Public Employees Retirement Association
within 60 days following the receipt of the eligible person's payment under
paragraph (d).
(f) Upon the transfer of the amounts
under paragraphs (d) and (e), the Minnesota State Colleges and Universities
system shall pay the prior service credit purchase payment amount calculated
under Minnesota Statutes, section 356.551, less any amounts received under
paragraphs (d) and (e), within 60 days following the receipt of the eligible
person's payment under paragraph (d).
(g) Upon the transfers and payments
under paragraph (f), the eligible person must be credited by the Public
Employees Retirement Association with allowable service credit for Minnesota
State Colleges and Universities System employment from February 22, 2006, until
May 10, 2011.
(h)
Authority to make a service credit purchase under this section expires January
1, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. TRA
COVERAGE ELECTION AND PERA REFUND REPAYMENT AUTHORITY FOR CERTAIN MNSCU
EMPLOYEE.
(a) Notwithstanding any provision of
Minnesota Statutes, chapter 353 or 354B, to the contrary, an eligible person
described in paragraph (b) is eligible to become a coordinated member of the
Teachers Retirement Association and to purchase service and salary credit in
the Teachers Retirement Association coordinated plan retroactively from July 1,
2001, upon repaying a member contribution refund taken from the general
employees retirement plan of the Public Employees Retirement Association under
paragraph (c), upon making an election under paragraph (e), and upon making all
required payments under paragraphs (f) and (g).
(b) An eligible person is a person who:
(1) was born April 4, 1956;
(2) was employed by a governmental
subdivision in 1995, with retirement coverage in the general employees
retirement plan of the Public Employees Retirement Association, for which a
refund of member contributions and interest was taken before 2001;
(3) was employed by St. Cloud
State University in the late 1990s, with retirement coverage in the general
state employees retirement plan of the Minnesota State Retirement System;
(4) was hired as an academic advisor by
St. Cloud State University on July 1, 2001, with retirement coverage in
the higher education individual retirement account plan; and
(5) was not informed of the option to
elect Teachers Retirement Association coverage in the coverage election
authorized by Minnesota Statutes 2001, section 354B.21, so remained in the
higher education individual retirement account plan.
(c) The refund repayment required by
Minnesota Statutes, section 356.551, subdivision 1, paragraph (c), must be
calculated under Minnesota Statutes, section 353.35, subdivision 1, paragraph
(c).
(d) Authority to repay a refund under
this section expires January 1, 2017.
(e) To be eligible for coverage by the
Teachers Retirement Association, an eligible person must submit a written
application to the executive director of the Teachers Retirement Association on
a form provided by the Teachers Retirement Association. The application must include all
documentation of the applicability of this section and any other relevant
information that the executive director may require. Teachers Retirement Association plan
membership commences after the date of the retirement coverage election under
this section and past salary and service credit is granted for past Minnesota
State Colleges and Universities system employment from July 1, 2001, until the
executive director receives the written application specified in this paragraph
and receipts of the payments specified in paragraphs (c), (f), and (g). Coverage by the Teachers Retirement
Association is in lieu of coverage by the individual retirement account plan.
(f) If the eligible person makes the
retirement coverage election under paragraph (e), the eligible person's member
contributions to the higher education individual retirement account plan must
be transferred to the Teachers Retirement Association with any earned
investment returns on those contributions.
If the transferred member contributions and investment earnings are less
than the calculated amount of the member contributions that the
eligible
person would have made to the Teachers Retirement Association on the eligible
person's compensation from the Minnesota State Colleges and Universities system
for the period from July 1, 2001, to the date of the retirement coverage
election if the person had been covered by the Teachers Retirement Association
during the period, plus annual compound interest at the rate of 8.5 percent,
then the eligible person shall pay the balance of that calculated member
contribution obligation within 30 days of the retirement coverage election.
(g) Upon the transfer of the equivalent
member contribution amount and any additional payment under paragraph (f), the
balance of the eligible person's higher education individual retirement account
plan account must be transferred to the Teachers Retirement Association. If the amounts under paragraph (f) and the
individual retirement account plan balance under this paragraph are less than
the prior service credit purchase payment amount calculated under Minnesota
Statutes, section 356.551, the Minnesota State Colleges and Universities system
shall pay the difference within 60 days of the retirement election date.
(h) The authority to make a retirement
coverage election under this section expires January 1, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. TRA
COVERAGE FOR CERTAIN MESABI RANGE COMMUNITY AND TECHNICAL COLLEGE FACULTY
MEMBERS.
(a) Notwithstanding any provision of law
to the contrary, an eligible person described in paragraph (b) is authorized to
become a coordinated member of the Teachers Retirement Association and to
purchase service and salary credit in the
Teachers Retirement Association coordinated plan retroactive from July 19,
2000, or September 15, 2000, whichever is applicable, upon making an
election under paragraph (c) and upon making all required payments under
paragraphs (d) and (e).
(b) An eligible person is a person who:
(1) either:
(i) was born on September 25, 1964, and
has been employed at Mesabi Range Community and Technical College and a contributing member of the higher
education individual retirement account plan since July 19, 2000; or
(ii) was born on October 15, 1963, and
has been employed at Mesabi Range Community and Technical College and a
contributing member of the higher education individual retirement account plan
since September 15, 2000;
(2) was classified in the unlimited
full-time category on August 21, 2012;
(3) became eligible for an election of
Teachers Retirement Association coverage under Laws 2009, chapter 169, article
6, section 1; and
(4) was not offered an election of
Teachers Retirement Association coverage by the Minnesota State Colleges and
Universities system.
(c) To be eligible for coverage by the
Teachers Retirement Association, an eligible person must submit a written
application to the executive director of the Teachers Retirement Association on
a form provided by the Teachers Retirement Association. The application must include all
documentation of the applicability of this section and any other relevant
information that the executive director may require. Teachers Retirement Association plan
membership commences after the date of the retirement coverage election under
this section and past salary and service credit is granted for past Minnesota
State Colleges and Universities system employment from July 19, 2000, or
September 15, 2000, whichever is applicable, until the executive director
receives the written application specified in this paragraph and receipts of
the payments specified in paragraphs (d) and (e). Coverage by the Teachers Retirement
Association is in lieu of coverage by the individual retirement account plan.
(d)
If the eligible person makes the retirement coverage election under paragraph
(c), the eligible person shall make a contribution to the Teachers Retirement
Association equal to the excess, if any, of the employee contributions that the
eligible person would have made if the Teachers Retirement Association had
provided coverage from July 19, 2000, or September 15, 2000, whichever is
applicable, rather than the individual retirement account plan. These additional contribution amounts shall
include 8.5 percent annual compound interest computed from the date the
contribution would have been made if deducted from salary until paid. The total amount to be paid under this
paragraph shall be determined by the executive director of the Teachers
Retirement Association and written notification of the amount required under
this paragraph must be transmitted to the eligible person.
(e) If payment is made under paragraph
(d), the value of the applicable eligible person's higher education individual
retirement account plan account shall be transferred to the Teachers Retirement
Association.
(f) The Teachers Retirement Association
shall determine the required purchase payment amount calculated under Minnesota
Statutes, section 356.551, imposed upon the Teachers Retirement Association
under this section due to the salary and service credit purchase.
(g) From the total amount computed
under paragraph (f), the executive director of the Teachers Retirement
Association shall subtract the amounts received under paragraphs (d) and (e). The Minnesota State Colleges and Universities
system must transmit the remaining amount, if any, to the executive director of
the Teachers Retirement Association within 60 days following the receipt of the
payments under paragraphs (d) and (e).
(h) The authority to make a retirement
coverage election under this section expires on January 1, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 13
TECHNICAL CORRECTIONS
Section 1. Minnesota Statutes 2015 Supplement, section 353.01, subdivision 16, is amended to read:
Subd. 16. Allowable service; limits and computation. (a) "Allowable service" means:
(1) service during years of actual membership in the course of which employee deductions were withheld from salary and contributions were made at the applicable rates under section 353.27, 353.65, or 353E.03;
(2) periods of service covered by payments in lieu of salary deductions under sections 353.27, subdivisions 12 and 12a, and 353.35;
(3) service in years during which the public employee was not a member but for which the member later elected, while a member, to obtain credit by making payments to the fund as permitted by any law then in effect;
(4) a period of authorized leave of absence during which the employee receives pay as specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for employee contributions are made, deposited, and credited to the fund;
(5) a period of authorized leave of absence
without pay, or with pay that is not included in the definition of salary under
subdivision 10, paragraph (a), clause (4) or (5), for which salary deductions
are not authorized, and for which a member obtained service credit for up to 12
months of the authorized leave period by payment under section 353.0161 or
353.0162, to the fund made in place of salary deductions;
(6) a periodic, repetitive leave that is offered to all employees of a governmental subdivision. The leave program may not exceed 208 hours per annual normal work cycle as certified to the association by the employer. A participating member obtains service credit by making employee contributions in an amount or amounts based on the member's average salary, excluding overtime pay, that would have been paid if the leave had not been taken. The employer shall pay the employer and additional employer contributions on behalf of the participating member. The employee and the employer are responsible to pay interest on their respective shares at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter, compounded annually, from the end of the normal cycle until full payment is made. An employer shall also make the employer and additional employer contributions, plus 8.5 percent interest until June 30, 2015, and eight percent interest thereafter, compounded annually, on behalf of an employee who makes employee contributions but terminates public service. The employee contributions must be made within one year after the end of the annual normal working cycle or within 30 days after termination of public service, whichever is sooner. The executive director shall prescribe the manner and forms to be used by a governmental subdivision in administering a periodic, repetitive leave. Upon payment, the member must be granted allowable service credit for the purchased period;
(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three months allowable service per authorized temporary or seasonal layoff in one calendar year. An employee who has received the maximum service credit allowed for an authorized temporary or seasonal layoff must return to public service and must obtain a minimum of three months of allowable service subsequent to the layoff in order to receive allowable service for a subsequent authorized temporary or seasonal layoff;
(8) a period during which a member is absent from employment by a governmental subdivision by reason of service in the uniformed services, as defined in United States Code, title 38, section 4303(13), if the member returns to public service with the same governmental subdivision upon discharge from service in the uniformed service within the time frames required under United States Code, title 38, section 4312(e), provided that the member did not separate from uniformed service with a dishonorable or bad conduct discharge or under other than honorable conditions. The service must be credited if the member pays into the fund equivalent employee contributions based upon the contribution rate or rates in effect at the time that the uniformed service was performed multiplied by the full and fractional years being purchased and applied to the annual salary rate. The annual salary rate is the average annual salary during the purchase period that the member would have received if the member had continued to be employed in covered employment rather than to provide uniformed service, or, if the determination of that rate is not reasonably certain, the annual salary rate is the member's average salary rate during the 12-month period of covered employment rendered immediately preceding the period of the uniformed service. Payment of the member equivalent contributions must be made during a period that begins with the date on which the individual returns to public employment and that is three times the length of the military leave period, or within five years of the date of discharge from the military service, whichever is less. If the determined payment period is less than one year, the contributions required under this clause to receive service credit may be made within one year of the discharge date. Payment may not be accepted following 30 days after termination of public service under subdivision 11a. If the member equivalent contributions provided for in this clause are not paid in full, the member's allowable service credit must be prorated by multiplying the full and fractional number of years of uniformed service eligible for purchase by the ratio obtained by dividing the total member contributions received by the total member contributions otherwise required under this clause. The equivalent employer contribution, and, if applicable, the equivalent additional employer contribution must be paid by the governmental subdivision employing the member if the member makes the equivalent employee contributions. The employer payments must be made from funds available to the employing unit, using the employer and additional employer contribution rate or rates in effect at the time that the uniformed service was performed, applied to the same annual salary rate or rates used to compute the equivalent member contribution. The governmental subdivision involved may appropriate money for those payments. The amount of service credit obtainable under this section may not exceed five years unless a longer purchase period is required under United States Code, title 38, section 4312. The employing unit shall pay interest on all equivalent member and employer contribution amounts payable under this clause. Interest must be computed
at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter, compounded annually, from the end of each fiscal year of the leave or the break in service to the end of the month in which the payment is received. Upon payment, the employee must be granted allowable service credit for the purchased period; or
(9) a period specified under section 353.0162.
(b) No member may receive more than 12 months of allowable service credit in a year either for vesting purposes or for benefit calculation purposes.
(c) For an active member who was an active member of the former Minneapolis Firefighters Relief Association on December 29, 2011, "allowable service" is the period of service credited by the Minneapolis Firefighters Relief Association as reflected in the transferred records of the association up to December 30, 2011, and the period of service credited under paragraph (a), clause (1), after December 30, 2011. For an active member who was an active member of the former Minneapolis Police Relief Association on December 29, 2011, "allowable service" is the period of service credited by the Minneapolis Police Relief Association as reflected in the transferred records of the association up to December 30, 2011, and the period of service credited under paragraph (a), clause (1), after December 30, 2011.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 353.012, is amended to read:
353.012
UNIVERSITY OF MINNESOTA EMPLOYEES; FURLOUGH SERVICE AND SALARY CREDIT.
A furloughed employee of the University of
Minnesota who is a member of the public employees police and fire plan may
obtain allowable service and salary credit for the furlough period. The allowable service and salary credit
authorization is a leave of absence authorization for purposes of section 353.0161
and the purchase payment procedure of section 353.0161, subdivision 2, applies
353.0162.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 353.32, subdivision 4, is amended to read:
Subd. 4. Lack,
or death, of beneficiary. If a
member or former member dies without having designated a beneficiary or if the
beneficiary should die before making application for refund, and if there is no
surviving spouse, and if the legal representative of such member or former
member does not apply for refund within five years from the date of death of
the member or former member, the accumulated deductions to the member or former
member's credit at the time of death shall be disposed of in the manner
provided in section 353.34, subdivision 6 356.631.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 354A.011, subdivision 29, is amended to read:
Subd. 29. Vesting;
vested. (a) "Vesting"
or "vested" means having entitlement to a nonforfeitable annuity or
benefit from a the St. Paul Teachers Retirement Fund Association
coordinated member program administered by a teachers retirement fund
association by having credit for sufficient allowable service under paragraph
(b) or (c), whichever applies when the teacher has accrued credit for at
least three years of allowable service.
(b)
For purposes of qualifying for an annuity or a benefit as a coordinated plan
member of the St. Paul Teachers Retirement Fund Association, the teacher
is vested when the teacher has accrued credit for at least three years of
service.
(c) For purposes of qualifying for an
annuity or a benefit as a coordinated plan member of the Duluth Teachers
Retirement Fund Association:
(1) a teacher who first became a member
of the plan before July 1, 2010, is vested when the teacher has accrued at
least three years of service; and
(2) a teacher who first became a member
of the plan after June 30, 2010, is vested when the teacher has accrued at
least five years of service.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2014, section 354A.095, is amended to read:
354A.095
PARENTAL AND MATERNITY LEAVE.
Basic or coordinated members of the St. Paul
Teachers Retirement Fund Association and new coordinated members of the
Duluth Teachers Retirement Fund Association, who are granted parental or
maternity leave of absence by the employing authority, are entitled to obtain
service credit not to exceed one year for the period of leave upon payment to
the applicable fund by the end of the fiscal year following the fiscal
year in which the leave of absence terminated.
The amount of the payment must include the total required employee and
employer contributions for the period of leave prescribed in section 354A.12. Payment must be based on the member's average
monthly salary rate upon return to teaching service, and is payable without
interest. Payment must be accompanied by
a certified or otherwise adequate copy of the resolution or action of the
employing authority granting or approving the leave.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2014, section 354A.35, subdivision 2, is amended to read:
Subd. 2. Death while eligible to retire; surviving spouse optional annuity. (a) The surviving spouse of a vested coordinated member who dies prior to retirement may elect to receive, instead of a refund with interest under subdivision 1, an annuity equal to the 100 percent joint and survivor annuity the member could have qualified for had the member terminated service on the date of death. The surviving spouse eligible for a surviving spouse benefit under this paragraph 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. A surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) may apply for an annuity at any time after the member's death. The member's surviving spouse shall be paid a joint and survivor annuity under section 354A.32 and computed under section 354A.31.
(b) If the member was under age 55 and has credit for at least 30 years of allowable service on the date of death, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the member and surviving spouse on the date of death. The annuity is payable using the full early retirement reduction under section 354A.31, subdivision 6, paragraph (a), to age 55 and one-half of the early retirement reduction from age 55 to the age payment begins.
(c)
If a vested member of the Duluth Teachers Retirement Fund Association was under
age 55 on the date of death but did not yet qualify for retirement, the
surviving spouse may elect to receive the 100 percent joint and survivor
annuity based on the age of the member and the survivor at the time of death. The annuity is payable using the full early
retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
one-half of the early retirement reduction from age 55 to the date payment
begins.
(d) (c) If a vested member of
the St. Paul Teachers Retirement Fund Association was under age 55 on the
date of death but did not yet qualify for retirement, the surviving spouse may
elect to receive the 100 percent joint and survivor annuity based on the age of
the member and the survivor at the time of death. The annuity is payable using the full early
retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
one-half of the actuarial equivalent reduction from age 55 to the date payment
begins. The actuarial equivalent
reduction is calculated so that the reduced annuity is the actuarial equivalent
of the annuity that would be payable to the member if the member deferred
receipt of the annuity and the annuity amount were augmented at an annual rate
of 2.5 percent compounded annually from the day the annuity begins to accrue
until the normal retirement age.
(e) (d) Sections 354A.37,
subdivision 2, and 354A.39 apply to a deferred annuity or surviving spouse
benefit payable under this section. The
benefits are payable for the life of the surviving spouse, or upon expiration
of the term certain benefit payment under subdivision 2b.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. REPEALER.
(a)
Minnesota Statutes 2014, sections 354A.12, subdivision 2c; 354A.31, subdivision
3; and 356.47, subdivision 1, are repealed.
(b) Minnesota Statutes 2015 Supplement,
section 354A.12, subdivision 3c, is repealed.
EFFECTIVE DATE. This section is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to retirement; modifying cost of living adjustments; eliminating cost of living adjustment triggers; increasing St. Paul Teachers Retirement Fund Association employer contributions; making administrative changes to the Minnesota State Retirement System, Teachers Retirement Association, Public Employees Retirement Association, and St. Paul Teachers Retirement Fund Association; clarifying refund repayment procedures; modifying executive director credentials; clarifying combined service annuity augmentation rates and service requirements; revising appeal procedures; clarifying coverage for charter school administrators; modifying service credit purchase procedures; establishing new procedures for disability applications due to private disability insurance requirements; clarifying death and disability benefit payment provisions; modifying annual benefit limitations for federal tax code compliance; authorizing use of IRS correction procedures; clarifying benefit offsets for certain refund payments; clarifying police and fire plan coverage for certain Hennepin Healthcare System supervisors; modifying various economic actuarial assumptions; adopting recommendations of the Volunteer Firefighter Relief Association Working Group; increasing relief association lump-sum service pension maximums; lowering certain vesting requirements for Eden Prairie Volunteer Firefighters Relief Association; providing for the consolidation of the Coleraine and Bovey Volunteer Firefighters Relief Associations; modifying the MSRS disability application deadlines in certain instances; adopting definition of the Hometown Heroes Act related to public safety officer death benefits; allowing service credit purchase and Rule of 90-eligibility for certain Minnesota Department of Transportation employees; authorizing MnSCU employees to elect retroactive and prospective TRA coverage; authorizing MnSCU employee to transfer past service from IRAP to PERA; increasing maximum employer contribution to a supplemental laborers pension fund; authorizing certain additional sources of retirement
plan funding; making technical and conforming changes; amending Minnesota Statutes 2014, sections 3A.03, subdivision 3; 16A.14, subdivision 2a; 352.03, subdivisions 5, 6; 352.113, subdivisions 2, 4; 353.01, subdivision 43; 353.012; 353.32, subdivisions 1, 4; 353.34, subdivision 2; 354.05, subdivision 2, by adding a subdivision; 354.06, subdivisions 2, 2a; 354.095; 354.45, by adding a subdivision; 354.46, subdivision 6; 354.48, subdivision 1; 354.52, subdivisions 4, 6; 354A.011, subdivision 29; 354A.093, subdivision 4; 354A.095; 354A.12, subdivision 2a; 354A.35, subdivision 2; 354A.38, as amended; 356.24, subdivision 1; 356.30, subdivision 1; 356.635, by adding subdivisions; 356.96, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 423A.02, subdivision 3; 424A.01, by adding subdivisions; 424A.015, by adding a subdivision; 424B.20, subdivision 4; 490.121, subdivisions 25, 26; Minnesota Statutes 2015 Supplement, sections 3A.03, subdivision 2; 352.23; 352B.11, subdivision 4; 352D.05, subdivision 4; 353.01, subdivision 16; 353.0162; 353.64, subdivision 10; 353G.02, subdivision 6; 354.44, subdivision 9; 354A.093, subdivision 6; 354A.096; 354A.29, subdivision 7; 356.215, subdivisions 8, 11; 356.415, subdivisions 1a, 1d, 1e, 1f; 356.50, subdivision 2; 356.551, subdivision 2; 356.635, subdivision 10; 424A.02, subdivision 3; 490.124, subdivision 12; proposing coding for new law in Minnesota Statutes, chapters 356; 424A; repealing Minnesota Statutes 2014, sections 352.04, subdivision 11; 353.0161, subdivision 1; 353.34, subdivision 6; 354A.12, subdivision 2c; 354A.31, subdivision 3; 356.47, subdivision 1; 356.611, subdivisions 3, 3a, 4, 5; 356.96, subdivisions 14, 15; 424A.02, subdivision 13; Minnesota Statutes 2015 Supplement, sections 353.0161, subdivisions 2, 3; 354A.12, subdivision 3c; 354A.29, subdivisions 8, 9; 356.415, subdivision 1."
With the recommendation that when so amended the bill be re-referred to the Committee on State Government Finance.
The report was adopted.
Pursuant to Joint Rule 2.03 and in accordance with Senate Concurrent Resolution No. 8, H. F. No. 659 was re‑referred to the Committee on Rules and Legislative Administration.
Knoblach from the Committee on Ways and Means to which was referred:
H. F. No. 2991, A bill for an act relating to real estate appraisers; regulating appraiser fees, investigation costs, and appraisal management companies; amending Minnesota Statutes 2014, sections 45.027, subdivision 1; 82C.02, subdivisions 3, 4, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 82C.
Reported the same back with the recommendation that the bill be placed on the General Register.
The report was adopted.
Knoblach from the Committee on Ways and Means to which was referred:
H. F. No. 3255, A bill for an act relating to state government; ratifying labor agreements; approving a compensation plan.
Reported the same back with the recommendation that the bill be placed on the General Register.
The report was adopted.
SECOND
READING OF HOUSE BILLS
H. F. Nos. 2991 and 3255 were read for the second time.
SECOND READING OF SENATE BILLS
S. F. Nos. 2649, 2759, 2815 and 3208 were read for the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Barrett, Quam, Miller, Gruenhagen, Hertaus, Vogel, Davids, Swedzinski and Johnson, B., introduced:
H. F. No. 4011, A bill for an act relating to transportation; providing for a mass transit and road capital expenses appropriations subsidy match.
The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.
Persell introduced:
H. F. No. 4012, A bill for an act relating to environment; modifying implementation goals of the Clean Water Legacy Act; amending Minnesota Statutes 2014, section 114D.20, subdivision 2.
The bill was read for the first time and referred to the Committee on Legacy Funding Finance.
Kahn; Hausman; Dehn, R.; Loeffler and Erhardt introduced:
H. F. No. 4013, A bill for an act relating to environment; establishing advisory task force on green roofs; requiring a report; appropriating money.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.
Zerwas introduced:
H. F. No. 4014, A bill for an act relating to human services; providing coverage for certain investigational drugs, biological products, or devices under the early periodic screening, diagnosis, and treatment program; amending Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 64.
The bill was read for the first time and referred to the Committee on Health and Human Services Reform.
MESSAGES
FROM THE SENATE
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
H. F. No. 1036, A bill for an act relating to health care; modifying provisions related to physician assistants; amending Minnesota Statutes 2014, sections 147A.01, subdivisions 17a, 23; 147A.20, subdivisions 1, 2; repealing Minnesota Statutes 2014, section 147A.01, subdivision 5.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:
S. F. Nos. 2772, 2985 and 3572.
JoAnne M. Zoff, Secretary of the Senate
FIRST READING OF SENATE BILLS
S. F. No. 2772, A bill for an act relating to local government; making technical changes to Ramsey County human resources statutes; amending Minnesota Statutes 2014, section 383A.289, subdivision 3; repealing Minnesota Statutes 2014, section 383A.295, subdivision 3.