A03-0514
1.1 ............... moves to amend H. F. No. .... as follows:
1.2 Delete everything after the enacting clause and insert:
1.3 "ARTICLE 1
1.4 STATE BOARD OF INVESTMENT
1.5 CHANGES
1.6 Section 1. Minnesota Statutes 2002, section 11A.17,
1.7 subdivision 2, is amended to read:
1.8 Subd. 2. ASSETS. The assets of the supplemental
1.9 investment fund shall consist of the money certified and
1.10 transmitted to the state board from the participating public
1.11 retirement plans and funds or from the board of the Minnesota
1.12 state colleges and universities under section 136F.45. The
1.13 assets must be used to purchase investment shares in the
1.14 investment accounts specified by the plan or fund. These
1.15 accounts must be valued at least on a monthly basis, but may be
1.16 valued more frequently as determined by the state board of
1.17 investment.
1.18 Sec. 2. Minnesota Statutes 2002, section 352.96,
1.19 subdivision 2, is amended to read:
1.20 Subd. 2. PURCHASE OF SHARES. The amount of compensation
1.21 so deferred may be used to purchase:
1.22 (1) shares in the Minnesota supplemental investment fund
1.23 established in section 11A.17 that are selected to be offered
1.24 under the plan by the state board of investment;
2.1 (2) saving accounts in federally insured financial
2.2 institutions;
2.3 (3) life insurance contracts, fixed annuity and variable
2.4 annuity contracts from companies that are subject to regulation
2.5 by the commissioner of commerce;
2.6 (4) investment options from open-end investment companies
2.7 registered under the federal Investment Company Act of 1940,
2.8 United States Code, title 15, sections 80a-1 to 80a-64;
2.9 (5) investment options from a firm that is a registered
2.10 investment advisor under the Investment Advisers Act of 1940,
2.11 United States Code, title 15, section 80b-1 to 80b-21;
2.12 (6) investment options of a bank as defined in United
2.13 States Code, title 15, section 80b-2, subsection (a), paragraph
2.14 (2), or a bank holding company as defined in the Bank Holding
2.15 Company Act of 1956, United States Code, title 12, section 1841,
2.16 subsection (a), paragraph (1); or
2.17 (7) a combination of clause (1), (2), (3), (4), (5), or
2.18 (6), as provided by the plan as specified by the participant.
2.19 All amounts contributed to the deferred compensation plan
2.20 and all earnings on those amounts will be held for the exclusive
2.21 benefit of the plan participants and beneficiaries. These
2.22 amounts will be held in trust, in custodial accounts, or in
2.23 qualifying annuity contracts as required by federal law and in
2.24 accordance with section 356A.06, subdivision 1. This
2.25 subdivision does not authorize an employer contribution, except
2.26 as authorized in section 356.24, subdivision 1, paragraph (a),
2.27 clause (5). The state, political subdivision, or other
2.28 employing unit is not responsible for any loss that may result
2.29 from investment of the deferred compensation.
2.30 Sec. 3. EFFECTIVE DATE.
2.31 Sections 1 and 2 are effective July 1, 2003.
2.32 ARTICLE 2
2.33 EARLY RETIREMENT INCENTIVE PROGRAMS
2.34 Section 1. APPLICATION.
2.35 Unless otherwise specified, this act applies to
2.36 governmental subdivisions as specified in Minnesota Statutes,
3.1 section 353.01, subdivision 6, and public employees providing
3.2 service to the applicable employer and covered by the public
3.3 employees retirement association general plan or police and fire
3.4 plan under Minnesota Statutes, chapter 353, or the public
3.5 employees retirement association local government correctional
3.6 service retirement plan under Minnesota Statutes, chapter 353E.
3.7 Sec. 2. EMPLOYEE EXCLUSION.
3.8 This act does not apply to any employee who provides
3.9 service to more than one governmental subdivision, or who earns
3.10 service credit during the time period covered by this act in any
3.11 Minnesota public employee plan other than a volunteer fire plan.
3.12 Sec. 3. PHASED RETIREMENT.
3.13 (a) This section applies to a public employee who:
3.14 (1) on the effective date of this section is regularly
3.15 scheduled to work 1,040 or more hours a year in a position
3.16 covered by an applicable retirement plan;
3.17 (2) enters into an agreement with the governmental
3.18 subdivision to work a reduced schedule that is both:
3.19 (i) a reduction of at least 25 percent from the number of
3.20 regularly scheduled work hours; and
3.21 (ii) 1,040 hours or less in the covered position; and
3.22 (3) at the time of entering into the agreement under clause
3.23 (2), meets the age and service requirements necessary to receive
3.24 a retirement benefit from the applicable plan.
3.25 (b) Notwithstanding any law to the contrary, for service
3.26 under an agreement entered into under paragraph (a), an employee
3.27 agrees to terminate public employment meeting requirements of
3.28 Minnesota Statutes, section 353.01, subdivision 11a, except that
3.29 the minimum 30-day break-in-service requirement under that
3.30 subdivision shall not apply, and agrees to reemployment with the
3.31 applicable governmental subdivision under terms and conditions
3.32 specified in this section. If an eligible public employee
3.33 commences receipt of an annuity from a plan specified in
3.34 paragraph (a), the provisions of Minnesota Statutes, section
3.35 353.37, governing annuities of reemployed annuitants shall not
3.36 apply for the duration of the agreement.
4.1 (c) The number of hours worked, the work schedule, and the
4.2 duration of the phased retirement employment must be mutually
4.3 agreed to by the employee and the governmental subdivision. The
4.4 governmental subdivision may not require a person to waive any
4.5 rights under a collective bargaining agreement as a condition of
4.6 participation in this section. The governmental subdivision has
4.7 sole discretion to determine if and the extent to which phased
4.8 retirement under this section is available to an employee.
4.9 (d) Notwithstanding any law to the contrary, a person may
4.10 not earn service credit in the public employees retirement
4.11 association for employment covered under this section, and
4.12 employer contributions and payroll deductions for the retirement
4.13 fund must not be made based on earnings of a person working
4.14 under this section. No change shall be made to a monthly
4.15 annuity or retirement allowance based on employment under this
4.16 section.
4.17 (e) A person who works under this section and meets the
4.18 definition of public employee under Minnesota Statutes, section
4.19 179A.03, subdivision 14, is a member of the appropriate
4.20 bargaining unit, is covered by the appropriate collective
4.21 bargaining contract or personnel policy, and is eligible for
4.22 health care coverage as provided in the collective bargaining
4.23 contract or personnel policy.
4.24 (f) An agreement under this section may apply only to work
4.25 through June 30, 2005.
4.26 Sec. 4. VOLUNTARY HOUR REDUCTION PLAN.
4.27 (a) This section applies to a public employee who:
4.28 (1) on the effective date of this section is regularly
4.29 scheduled to work 1,040 or more hours a year in a position
4.30 covered by a pension plan administered by the public employees
4.31 retirement association; and
4.32 (2) enters into an agreement with a governmental
4.33 subdivision to work a reduced schedule of 1,040 or less hours in
4.34 the covered position.
4.35 (b) Notwithstanding any law to the contrary, for service
4.36 under an agreement entered into under paragraph (a),
5.1 contributions may be made to the applicable plan of the public
5.2 employees retirement association as if the employee had not
5.3 reduced hours. The employee must pay the employee contributions
5.4 and the employer must pay employer and additional employer
5.5 contributions necessary to bring the service credit and salary
5.6 up to the level prior to the voluntary reduction in hours.
5.7 Contributions must be made in a time and manner prescribed by
5.8 the executive director of the public employees retirement
5.9 association.
5.10 (c) The number of hours worked, the work schedule, and the
5.11 duration of the voluntary hour reduction must be mutually agreed
5.12 to by the employee and the governmental subdivision. The
5.13 governmental subdivision may not require a person to waive any
5.14 rights under a collective bargaining agreement as a condition of
5.15 participation under this section. The governmental subdivision
5.16 has sole discretion to determine if and the extent to which
5.17 voluntary hour reduction under this section is available to an
5.18 employee.
5.19 (d) A person who works under this section and meets the
5.20 definition of public employee under Minnesota Statutes, section
5.21 179A.03, subdivision 14, is a member of an appropriate
5.22 bargaining unit, is covered by an appropriate collective
5.23 bargaining contract or personnel policy, and is eligible for
5.24 health care coverage as provided in a collective bargaining
5.25 contract or personnel policy.
5.26 (e) An agreement under this section may apply only to work
5.27 through June 30, 2005.
5.28 Sec. 5. VOLUNTARY UNPAID LEAVE OF ABSENCE.
5.29 (a) Governmental subdivisions may allow employees to take
5.30 unpaid leaves of absence between June 1, 2003, and June 30,
5.31 2005. Each governmental subdivision approving a leave shall
5.32 allow the employee to continue accruing vacation and sick leave,
5.33 be eligible for paid holidays and insurance benefits, accrue
5.34 seniority, and accrue service credit and credited salary in the
5.35 public employees retirement association as if the employee had
5.36 actually been employed during the time of leave. If the leave
6.1 of absence is for one full pay period or longer, any holiday pay
6.2 shall be included in the first payroll warrant after return from
6.3 the leave of absence. The governmental subdivision shall
6.4 attempt to grant requests for the unpaid leaves of absence
6.5 consistent with the need to continue efficient operation of the
6.6 governmental subdivision. However, each governmental
6.7 subdivision shall retain discretion to grant or refuse to grant
6.8 requests for leaves of absence and to schedule and cancel
6.9 leaves, subject to the applicable provisions of collective
6.10 bargaining agreements and personnel policy.
6.11 (b) To receive eligible service credit, the member shall
6.12 pay an amount equal to the applicable employee contribution
6.13 rates. If an employee pays the employee contribution for the
6.14 period of the leave under this section, the governmental
6.15 subdivision must pay the employer contribution and the
6.16 additional employer contribution. The governmental subdivision
6.17 may, at its discretion, pay employee, employer, and additional
6.18 employer contributions to the public employees retirement
6.19 association for the period of leave under this section.
6.20 Contributions must be made in a time and manner prescribed by
6.21 the executive director of the public employees retirement
6.22 association.
6.23 Sec. 6. DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.
6.24 Before agreeing to an option under this act, a governmental
6.25 subdivision must designate the job classifications or positions
6.26 within job classifications that qualify for each option. The
6.27 governmental subdivision may modify this designation at any
6.28 time. Designation of positions eligible for the options and
6.29 participation of individual employees under this act are at the
6.30 sole discretion of the governmental subdivision. Implementation
6.31 of this act by the employer is not an unfair labor practice
6.32 under Minnesota Statutes, chapter 179A, or an unfair
6.33 discriminatory practice under Minnesota Statutes, chapter 363.
6.34 Sec. 7. PROGRAM APPLICATION REQUIREMENTS.
6.35 (a) No agreement between an eligible public employee and a
6.36 governmental subdivision under this act is effective unless the
7.1 employee acknowledges acceptance of the terms of the agreement
7.2 in writing on a form prescribed by the public employees
7.3 retirement association executive director.
7.4 (b) A copy of the signed agreement must be transmitted to
7.5 the public employees retirement association executive director
7.6 within 30 days after the agreement is executed.
7.7 Sec. 8. RELATIONSHIP OF SECTIONS.
7.8 (a) An employee covered by a phased retirement agreement
7.9 under section 1 may not be covered by the voluntary hour
7.10 reduction provisions of section 2 or by a voluntary unpaid leave
7.11 of absence agreement under section 3 during the same time period
7.12 or any later time period.
7.13 (b) An employee covered by the voluntary hour reduction
7.14 provisions of section 2:
7.15 (1) may not be covered by a phased retirement agreement
7.16 under section 1 during the same time period, but may be covered
7.17 by a phased retirement agreement under section 1 during a later
7.18 time period; and
7.19 (2) may be covered by the voluntary leave of absence
7.20 provision of section 3 during an earlier or later time period.
7.21 Sec. 9. GOVERNMENTAL SUBDIVISION LIMITATION.
7.22 Notwithstanding Minnesota Statutes, section 353.01,
7.23 subdivision 6, paragraph (b), to the contrary, for purposes of
7.24 this act the public employees retirement association is not a
7.25 governmental subdivision.
7.26 Sec. 10. EFFECTIVE DATE.
7.27 Sections 1 to 9 are effective the day following final
7.28 enactment.
7.29 ARTICLE 3
7.30 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION CHANGES
7.31 Section 1. Minnesota Statutes 2002, section 353.01,
7.32 subdivision 6, is amended to read:
7.33 Subd. 6. GOVERNMENTAL SUBDIVISION. (a) "Governmental
7.34 subdivision" means a county, city, town, school district within
7.35 this state, or a department or unit of state government, or any
7.36 public body whose revenues are derived from taxation, fees,
8.1 assessments or from other sources.
8.2 (b) Governmental subdivision also means the public
8.3 employees retirement association, the league of Minnesota
8.4 cities, the association of metropolitan municipalities, public
8.5 hospitals owned or operated by, or an integral part of, a
8.6 governmental subdivision or governmental subdivisions, the
8.7 association of Minnesota counties, the metropolitan intercounty
8.8 association, the Minnesota municipal utilities association, the
8.9 metropolitan airports commission, the Minneapolis employees
8.10 retirement fund for employment initially commenced after June
8.11 30, 1979, the range association of municipalities and schools,
8.12 soil and water conservation districts, economic development
8.13 authorities created or operating under sections 469.090 to
8.14 469.108, the Spring Lake Park fire department, incorporated, the
8.15 Red Wing environmental learning center, and the Dakota county
8.16 agricultural society.
8.17 (c) Governmental subdivision does not mean any municipal
8.18 housing and redevelopment authority organized under the
8.19 provisions of sections 469.001 to 469.047; or any port authority
8.20 organized under sections 469.048 to 469.089; or any hospital
8.21 district organized or reorganized prior to July 1, 1975, under
8.22 sections 447.31 to 447.37 or the successor of the district, nor
8.23 the Minneapolis community development agency.
8.24 Sec. 2. RED WING ENVIRONMENTAL LEARNING CENTER.
8.25 (a) The legislature finds that the Red Wing environmental
8.26 learning center has a long and very close relationship with
8.27 independent school district No. 256, Red Wing, that Red Wing
8.28 environmental learning center employees have been treated as
8.29 independent school district No. 256, Red Wing, employees for
8.30 retirement coverage purposes for 33 years, and that the current
8.31 learning center employees would suffer a significant loss in
8.32 their pension benefit coverage if their membership in the
8.33 general employees retirement plan of the public employees
8.34 retirement association was disrupted.
8.35 (b) Notwithstanding the provisions of any other law to the
8.36 contrary, independent school district No. 256, Red Wing, may
9.1 certify to the executive director of the public employees
9.2 retirement association that employees of the Red Wing
9.3 environmental learning center are considered school district
9.4 employees solely for purposes of retirement coverage by the
9.5 general employees retirement plan under Minnesota Statutes,
9.6 chapter 353. This status must be accorded to all similarly
9.7 situated Red Wing environmental learning center employees.
9.8 Sec. 3. EFFECTIVE DATE.
9.9 Section 1 is effective the day after the school board of
9.10 independent school district No. 256, Red Wing, and its chief
9.11 clerical officer timely complete their compliance with Minnesota
9.12 Statutes, section 645.021, subdivisions 2 and 3, and
9.13 certification to the executive director of the public employees
9.14 retirement association.
9.15 ARTICLE 4
9.16 GENERAL RETIREMENT CHANGES
9.17 Section 1. Minnesota Statutes 2002, section 356B.05, is
9.18 amended to read:
9.19 356B.05 PUBLIC PENSION ADMINISTRATION LEGISLATION.
9.20 (a) Proposed administrative legislation recommended by or
9.21 on behalf of the Minnesota state retirement system, the public
9.22 employees retirement association, the teachers retirement
9.23 association, the Minneapolis employees retirement fund, or a
9.24 first class city teachers retirement fund association, or the
9.25 Minnesota state colleges and universities system must be
9.26 presented to the legislative commission on pensions and
9.27 retirement, the state and local governmental operations
9.28 committee of the senate, and the governmental operations and
9.29 veterans affairs policy committee of the house of
9.30 representatives on or before October 1 of each year in order for
9.31 the proposed administrative legislation to be acted upon during
9.32 the upcoming legislative session. The executive director or the
9.33 deputy executive director of the legislative commission on
9.34 pensions and retirement shall provide written comments on the
9.35 proposed administrative provisions to the public pension plans
9.36 by November 15 of each year.
10.1 (b) Proposed administrative legislation recommended by or
10.2 on behalf of a public employee pension plan or system under
10.3 paragraph (a) must address provisions:
10.4 (1) authorizing allowable service credit for leaves of
10.5 absence and related circumstances;
10.6 (2) governing offsets or deductions from the amount of
10.7 disability benefits;
10.8 (3) authorizing the purchase of allowable service credit
10.9 for prior uncredited periods;
10.10 (4) governing subsequent employment earnings by reemployed
10.11 annuitants; and
10.12 (5) authorizing retroactive effect for retirement annuity
10.13 or benefit applications.
10.14 (c) Where possible and desirable, taking into account the
10.15 differences among the public pension plans in existing law and
10.16 the unique characteristics of the individual public pension fund
10.17 memberships, uniform provisions relating to paragraph (b) for
10.18 all applicable public pension plans must be presented for
10.19 consideration during the legislative session. Supporting
10.20 documentation setting forth the policy rationale for each set of
10.21 uniform provisions must accompany the proposed administrative
10.22 legislation.
10.23 Sec. 2. EFFECTIVE DATE.
10.24 Section 1 is effective the day following final enactment."
10.25 Delete the title and insert:
10.26 "A bill for an act
10.27 relating to retirement; various retirement plans;
10.28 providing for continued retirement coverage for the
10.29 Red Wing learning center staff; modifying valuation
10.30 periods for the Minnesota supplemental investment
10.31 fund; authorizing phased retirement or voluntary
10.32 leaves of absence for local governmental employees;
10.33 structuring the submission of retirement-related
10.34 administration legislation by the Minnesota state
10.35 colleges and universities system; amending Minnesota
10.36 Statutes 2002, sections 11A.17, subdivision 2; 352.96,
10.37 subdivision 2; 353.01, subdivision 6; 356B.05."