Please
note: This is a DRAFT of potential legislation for possible
inclusion in the Omnibus Retirement Bill
LCPR03-143
1.1 ............... moves to amend H.F. No. ....; S.F. No.
1.2 ...., as follows:
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;
1.25 (2) saving accounts in federally insured financial
1.26 institutions;
1.27 (3) life insurance contracts, fixed annuity and variable
1.28 annuity contracts from companies that are subject to regulation
1.29 by the commissioner of commerce;
1.30 (4) investment options from open-end investment companies
1.31 registered under the federal Investment Company Act of 1940,
1.32 United States Code, title 15, sections 80a-1 to 80a-64;
1.33 (5) investment options from a firm that is a registered
1.34 investment advisor under the Investment Advisers Act of 1940,
1.35 United States Code, title 15, section 80b-1 to 80b-21;
1.36 (6) investment options of a bank as defined in United
2.1 States Code, title 15, section 80b-2, subsection (a), paragraph
2.2 (2), or a bank holding company as defined in the Bank Holding
2.3 Company Act of 1956, United States Code, title 12, section 1841,
2.4 subsection (a), paragraph (1); or
2.5 (7) a combination of clause (1), (2), (3), (4), (5), or
2.6 (6), as provided by the plan as specified by the participant.
2.7 All amounts contributed to the deferred compensation plan
2.8 and all earnings on those amounts will be held for the exclusive
2.9 benefit of the plan participants and beneficiaries. These
2.10 amounts will be held in trust, in custodial accounts, or in
2.11 qualifying annuity contracts as required by federal law and in
2.12 accordance with section 356A.06, subdivision 1. This
2.13 subdivision does not authorize an employer contribution, except
2.14 as authorized in section 356.24, subdivision 1, paragraph (a),
2.15 clause (5). The state, political subdivision, or other
2.16 employing unit is not responsible for any loss that may result
2.17 from investment of the deferred compensation.
2.18 Sec. 3. EFFECTIVE DATE.
2.19 Sections 1 and 2 are effective on July 1, 2003.
2.20 ARTICLE 2
2.21 FIRE STATE AID
2.22 CHANGES
2.23 Section 1. Minnesota Statutes 2002, section 69.021,
2.24 subdivision 7, is amended to read:
2.25 Subd. 7. APPORTIONMENT OF FIRE STATE AID TO
2.26 MUNICIPALITIES AND RELIEF ASSOCIATIONS. (a) The commissioner
2.27 shall apportion the fire state aid relative to the premiums
2.28 reported on the Minnesota Firetown Premium Reports filed under
2.29 this chapter to each municipality and/or firefighters relief
2.30 association.
2.31 (b) The commissioner shall calculate an initial fire state
2.32 aid allocation amount for each municipality or fire department
2.33 under paragraph (c) and a minimum fire state aid allocation
2.34 amount for each municipality or fire department under paragraph
2.35 (d). The municipality or fire department must receive the
2.36 larger fire state aid amount.
3.1 (c) The initial fire state aid allocation amount is the
3.2 amount available for apportionment as fire state aid under
3.3 subdivision 5, without inclusion of any additional funding
3.4 amount to support a minimum fire state aid amount under section
3.5 423A.02, subdivision 3, allocated one-half in proportion to the
3.6 population as shown in the last official statewide federal
3.7 census defined in subdivision 8 for each fire town and one-half
3.8 in proportion to the market value of each fire town, including
3.9 (1) the market value of tax exempt property and (2) the market
3.10 value of natural resources lands receiving in lieu payments
3.11 under sections 477A.11 to 477A.14, but excluding the market
3.12 value of minerals. In the case of incorporated or municipal
3.13 fire departments furnishing fire protection to other cities,
3.14 towns, or townships as evidenced by valid fire service contracts
3.15 filed with the commissioner, the distribution must be adjusted
3.16 proportionately to take into consideration the crossover fire
3.17 protection service. Necessary adjustments shall be made to
3.18 subsequent apportionments. In the case of municipalities or
3.19 independent fire departments qualifying for the aid, the
3.20 commissioner shall calculate the state aid for the municipality
3.21 or relief association on the basis of the population and the
3.22 market value of the area furnished fire protection service by
3.23 the fire department as evidenced by duly executed and valid fire
3.24 service agreements filed with the commissioner. If one or more
3.25 fire departments are furnishing contracted fire service to a
3.26 city, town, or township, only the population and market value of
3.27 the area served by each fire department may be considered in
3.28 calculating the state aid and the fire departments furnishing
3.29 service shall enter into an agreement apportioning among
3.30 themselves the percent of the population and the market value of
3.31 each service area. The agreement must be in writing and must be
3.32 filed with the commissioner.
3.33 (d) The minimum fire state aid allocation amount is the
3.34 amount in addition to the initial fire state allocation amount
3.35 that is derived from any additional funding amount to support a
3.36 minimum fire state aid amount under section 423A.02, subdivision
4.1 3, and allocated to municipalities with volunteer firefighters
4.2 relief associations based on the number of active volunteer
4.3 firefighters who are members of the relief association as
4.4 reported in the annual financial reporting for the calendar year
4.5 1993 to the office of the state auditor, but not to exceed 30
4.6 active volunteer firefighters, so that all municipalities or
4.7 fire departments with volunteer firefighters relief associations
4.8 receive in total at least a minimum fire state aid amount per
4.9 1993 active volunteer firefighter to a maximum of 30
4.10 firefighters. If a relief association is established after
4.11 calendar year 1993 and before calendar year 2000, the number of
4.12 active volunteer firefighters who are members of the relief
4.13 association as reported in the annual financial reporting for
4.14 calendar year 1998 to the office of the state auditor, but not
4.15 to exceed 30 active volunteer firefighters, shall be used in
4.16 this determination. If a relief association is established
4.17 after calendar year 1999, the number of active volunteer
4.18 firefighters who are members of the relief association as
4.19 reported in the first annual financial reporting submitted to
4.20 the office of the state auditor, but not to exceed 20 active
4.21 volunteer firefighters, must be used in this determination.
4.22 (e) The fire state aid must be paid to the treasurer of the
4.23 municipality where the fire department is located and the
4.24 treasurer of the municipality shall, within 30 days of receipt
4.25 of the fire state aid, transmit the aid to the relief
4.26 association if the relief association has filed a financial
4.27 report with the treasurer of the municipality and has met all
4.28 other statutory provisions pertaining to the aid apportionment.
4.29 (f) The commissioner may make rules to permit the
4.30 administration of the provisions of this section.
4.31 (g) Any adjustments needed to correct prior misallocations
4.32 must be made to subsequent apportionments.
4.33 Sec. 2. Minnesota Statutes 2002, section 69.021,
4.34 subdivision 8, is amended to read:
4.35 Subd. 8. POPULATION AND MARKET VALUE. In computations
4.36 relating to fire state aid requiring the use of population
5.1 figures, only official statewide federal census figures are to
5.2 be used. Increases or decreases in population disclosed by
5.3 reason of any special census must not be taken into
5.4 consideration. "population" means the population established as
5.5 of July 1 in an aid calculation year by
5.6 (1) the most recent census,
5.7 (2) a special census conducted under contract with the
5.8 United States Bureau of the Census,
5.9 (3) a population estimate made by the metropolitan council,
5.10 or
5.11 (4) a population estimate of the state demographer made
5.12 pursuant to section 4A.02,
5.13 whichever is the most recent as to the stated date of the count
5.14 or estimate for the preceding calendar year.
5.15 In calculations relating to fire state aid requiring the
5.16 use of market value property figures, only the latest available
5.17 market value property figures may be used.
5.18 Sec. 3. EFFECTIVE DATE.
5.19 Sections 1 and 2 are effective for aids paid in 2003 and
5.20 thereafter.
5.21 ARTICLE 3
5.22 EARLY RETIREMENT INCENTIVES
5.23 Section 1. 136F.475 MNSCU; EARLY SEPARATION INCENTIVE
5.24 PROGRAM AUTHORIZATION.
5.25 (a) Notwithstanding any provision of law to the contrary,
5.26 the board of trustees of the Minnesota state colleges and
5.27 universities may offer a targeted early retirement incentive
5.28 program for its employees.
5.29 (b) The early separation incentive program may include one
5.30 or more of the following:
5.31 (1) employer-paid postseparation health, medical, and
5.32 dental insurance;
5.33 (2) cash incentives; and
5.34 (3) employer contributions to the postretirement health
5.35 care savings plan established under section 352.98. Any
5.36 postseparation health or medical insurance coverage for
6.1 incentive recipients who are age 65 or older must be coordinated
6.2 with federal Medicare benefits.
6.3 (c) The board of trustees of the Minnesota state colleges
6.4 and universities system shall establish the eligibility
6.5 requirements for system employees to receive an incentive. The
6.6 type and the amount of the incentive to be offered may vary by
6.7 employee classification, as specified by the board.
6.8 (d) The president of a college or university, or the
6.9 chancellor with respect to the office of the chancellor,
6.10 consistent with the board's program provisions under paragraph
6.11 (b) and with the board's eligibility requirements under
6.12 paragraph (c), may designate specific departments or programs at
6.13 the college or university whose employees are eligible to be
6.14 offered the incentive program.
6.15 (e) Acceptance of the offered incentive must be voluntary
6.16 on the part of the employee and must be in writing. The
6.17 incentive may only be offered at the sole discretion of the
6.18 president of the applicable college or university.
6.19 (f) A decision by the president of a college or university
6.20 or the chancellor with respect to the office of the chancellor,
6.21 not to offer an incentive may not be grieved.
6.22 (g) The cost of the incentive is payable solely by the
6.23 college or university or the office of the chancellor on whose
6.24 behalf the president or chancellor offered the incentive. If a
6.25 college or university is merged, the remaining cost of any early
6.26 retirement incentive must be borne by the successor
6.27 institution. If a college or university is closed, the
6.28 remaining cost of any early retirement incentive must be borne
6.29 by the board of trustees of the Minnesota state colleges and
6.30 universities system.
6.31 (h) A person must be at least 55 years of age to be
6.32 eligible to receive an early retirement incentive under this
6.33 section.
6.34 Sec. 2. 136F.476 APPLICATION OF OTHER LAWS.
6.35 (a) Unilateral implementation of section 136F.475 by the
6.36 board of trustees of the Minnesota state colleges and
7.1 universities system or by a president of a college or university
7.2 is not an unfair labor practice under chapter 179A.
7.3 (b) The authority in section 136F.475 for a college or
7.4 university to pay health, medical, and dental insurance premiums
7.5 for former employees granted an early retirement incentive is
7.6 not subject to the limits of section 179A.20, subdivision 2a.
7.7 Sec. 3. REPORTING.
7.8 Each college or university that offers early retirement
7.9 incentives under section 1 shall annually report to the
7.10 Minnesota colleges and universities board the types of early
7.11 retirement incentives offered, the number of individuals
7.12 receiving each type of incentive, and the cost or savings
7.13 resulting from the incentives. The Minnesota state colleges and
7.14 universities board shall report summary data on the incentives
7.15 offered under section 1 to the legislative commission on
7.16 pensions and retirement.
7.17 Sec. 4. SEPARATION FROM SERVICE.
7.18 Except in urgent situations approved by the board or for
7.19 employees who are covered by Minnesota Statutes, sections
7.20 136F.48 and 354.445, a person receiving an early retirement
7.21 incentive under section 1 shall not be reemployed by the
7.22 Minnesota state colleges and universities for at least three
7.23 years following retirement under section 1.
7.24 Sec. 5. EARLY RETIREMENT INCENTIVE.
7.25 Subdivision 1. ELIGIBILITY. An appointing authority in
7.26 the executive or legislative branch of state government may
7.27 offer the early retirement incentive in this section to an
7.28 employee who:
7.29 (1) has at least five years of allowable service in one or
7.30 more of the funds listed in Minnesota Statutes, section 356.30,
7.31 subdivision 3, and upon retirement is immediately eligible for a
7.32 retirement annuity from one or more of these funds; and
7.33 (2) terminates state service after the effective date of
7.34 this section and before September 1, 2003.
7.35 Subd. 2. INCENTIVE. (a) For an employee eligible under
7.36 subdivision 1, the employer may provide an amount up to $15,000,
8.1 to be used:
8.2 (1) for an employee who terminates state service after the
8.3 effective date of this section and on or before July 15, 2003,
8.4 for deposit in the employee's account in the health care savings
8.5 plan established by Minnesota Statutes, section 352.98; or
8.6 (2) for an employee who terminates state service after July
8.7 15, 2003, and before September 1, 2003:
8.8 (i) notwithstanding Minnesota Statutes, section 352.01,
8.9 subdivision 11, or 356.55, for purchase of service credit for
8.10 unperformed service sufficient to enable the employee to retire
8.11 under Minnesota Statutes, section 352.116, subdivision 1,
8.12 paragraph (b); or
8.13 (ii) for purchase of a lifetime annuity or annuity for a
8.14 specific number of years from the state unclassified retirement
8.15 program to provide additional benefits under Minnesota Statutes,
8.16 section 352D.06, subdivision 1.
8.17 (b) An employee is eligible for the payment under paragraph
8.18 (a), clause (2), item (i), if the employee uses money from a
8.19 deferred compensation account that, combined with the payment
8.20 under clause (2), item (i), would be sufficient to purchase
8.21 enough service credit to qualify for retirement under Minnesota
8.22 Statutes, section 352.116, subdivision 1, paragraph (b).
8.23 Subd. 3. DESIGNATION OF POSITIONS; EMPLOYER
8.24 DISCRETION. Before offering an incentive under this section, an
8.25 appointing authority must designate the job classifications or
8.26 positions within job classifications that qualify for the
8.27 incentive. The appointing authority may modify this designation
8.28 at any time. Designation of positions eligible for the
8.29 incentive under this section, participation of individual
8.30 employees, and the amount of the payment under this section are
8.31 at the sole discretion of the appointing authority. Unilateral
8.32 implementation of this section by the employer is not an unfair
8.33 labor practice under Minnesota Statutes, chapter 179A.
8.34 Sec. 6. PHASED RETIREMENT.
8.35 (a) This section applies to a state employee who:
8.36 (1) on the effective date of this section is regularly
9.1 scheduled to work 1,040 or more hours a year in a position
9.2 covered by the Minnesota state retirement system general
9.3 employees retirement plan, correctional plan, or unclassified
9.4 plan;
9.5 (2) enters into an agreement with the appointing authority
9.6 to work a reduced schedule that is both (i) a reduction of at
9.7 least 25 percent from the number of regularly scheduled work
9.8 hours; and (ii) 1,040 hours or less in the covered position; and
9.9 (3) at the time of entering into the agreement under clause
9.10 (2), meets the age and service requirements necessary to receive
9.11 an unreduced retirement benefit from the plan.
9.12 (b) Notwithstanding any law to the contrary, for service
9.13 under an agreement entered into under paragraph (a), an employee:
9.14 (1) may receive a retirement annuity from the plan without
9.15 separating from state service; and
9.16 (2) is not subject to the cessation of annuity provisions
9.17 in Minnesota Statutes, section 352.115, subdivision 10.
9.18 (c) The amount of hours worked, the work schedule, and the
9.19 duration of the phased retirement employment must be mutually
9.20 agreed to by the employee and the appointing authority. The
9.21 appointing authority may not require a person to waive any
9.22 rights under a collective bargaining agreement as a condition of
9.23 participation under this section. The appointing authority has
9.24 sole discretion to determine if and the extent to which phased
9.25 retirement under this section is available to an employee.
9.26 (d) Notwithstanding any law to the contrary, a person may
9.27 not earn service credit in the Minnesota state retirement system
9.28 for employment covered under this section, and employer
9.29 contributions and payroll deductions for the retirement fund
9.30 must not be made based on earnings of a person working under
9.31 this section. No change shall be made to a monthly annuity or
9.32 retirement allowance based on employment under this section.
9.33 (e) A person who works under this section is a member of
9.34 the appropriate bargaining unit; is covered by the appropriate
9.35 collective bargaining contract or compensation plan; and is
9.36 eligible for health care coverage as provided in the collective
10.1 bargaining contract or compensation plan.
10.2 (f) An agreement under this section may apply only to work
10.3 through June 30, 2005.
10.4 Sec. 7. VOLUNTARY HOUR REDUCTION PLAN.
10.5 (a) This section applies to a state employee who:
10.6 (1) on the effective date of this section is regularly
10.7 scheduled to work 1,040 or more hours a year in a position
10.8 covered by a pension plan administered by the Minnesota state
10.9 retirement system; and
10.10 (2) enters into an agreement with the appointing authority
10.11 to work a reduced schedule of 1,040 hours or less in the covered
10.12 position.
10.13 (b) Notwithstanding any law to the contrary, for service
10.14 under an agreement entered into under paragraph (a),
10.15 contributions may be made to the applicable plan of the
10.16 Minnesota state retirement system as if the employee had not
10.17 reduced hours. The employee must pay the additional employee
10.18 contributions and the employer must pay the additional employer
10.19 contributions necessary to bring the service credit and salary
10.20 up to the level prior to the voluntary reduction in hours.
10.21 Contributions must be made in a time and manner prescribed by
10.22 the executive director of the Minnesota state retirement system.
10.23 (c) The amount of hours worked, the work schedule, and the
10.24 duration of the voluntary hour reduction must be mutually agreed
10.25 to by the employee and the appointing authority. The appointing
10.26 authority may not require a person to waive any rights under a
10.27 collective bargaining agreement as a condition of participation
10.28 under this section. The appointing authority has sole
10.29 discretion to determine if and the extent to which voluntary
10.30 hour reduction under this section is available to an employee.
10.31 (d) A person who works under this section is a member of
10.32 the appropriate bargaining unit; is covered by the appropriate
10.33 collective bargaining contract or compensation plan; and is
10.34 eligible for health care coverage as provided in the collective
10.35 bargaining contract or compensation plan.
10.36 (e) An agreement under this section may apply only to work
11.1 through June 30, 2005.
11.2 Sec. 8. VOLUNTARY UNPAID LEAVE OF ABSENCE.
11.3 Appointing authorities in state government may allow each
11.4 employee to take unpaid leaves of absence for up to 1,040 hours
11.5 between June 1, 2003, and June 30, 2005. Each appointing
11.6 authority approving such a leave shall allow the employee to
11.7 continue accruing vacation and sick leave, be eligible for paid
11.8 holidays and insurance benefits, accrue seniority, and accrue
11.9 service credit and credited salary in the state retirement plans
11.10 as if the employee had actually been employed during the time of
11.11 leave. An employee covered by the unclassified plan may
11.12 voluntarily make both the employee and employer contributions to
11.13 the unclassified plan during the leave of absence. If the leave
11.14 of absence is for one full pay period or longer, any holiday pay
11.15 shall be included in the first payroll warrant after return from
11.16 the leave of absence. The appointing authority shall attempt to
11.17 grant requests for the unpaid leaves of absence consistent with
11.18 the need to continue efficient operation of the agency.
11.19 However, each appointing authority shall retain discretion to
11.20 grant or refuse to grant requests for leaves of absence and to
11.21 schedule and cancel leaves, subject to the applicable provisions
11.22 of collective bargaining agreements and compensation plans.
11.23 Sec. 9. RELATIONSHIP OF SECTIONS.
11.24 (a) An employee covered by a phased retirement agreement
11.25 under section 6 may not be covered by the voluntary hour
11.26 reduction provisions of section 7 or by a voluntary unpaid leave
11.27 of absence agreement under section 8 during the same time period
11.28 or any later time period.
11.29 (b) An employee covered by the voluntary hour reduction
11.30 provisions of section 7:
11.31 (1) may not be covered by a phased retirement agreement
11.32 under section 6 during the same time period, but may be covered
11.33 by a phased retirement agreement under section 6 during a later
11.34 time period; and
11.35 (2) may be covered by the voluntary leave of absence
11.36 provision of section 8 during an earlier or later time period.
12.1 (c) An employee may receive the early retirement incentive
12.2 in section 5 after being covered under section 6, 7, or 8. An
12.3 employee who receives an incentive under section 5 may not later
12.4 be covered by section 6, 7, or 8.
12.5 Sec. 10. EFFECTIVE DATE; EXPIRATION.
12.6 (a) Sections 1, 2, 3, and 4 are effective on the day
12.7 following final enactment and expire on June 30, 2008.
12.8 (b) Sections 5 to 9 are effective on the day following
12.9 final enactment.
12.10 ARTICLE 4
12.11 PUBLIC EMPLOYEES RETIREMENT
12.12 ASSOCIATION CHANGES
12.13 Section 1. Minnesota Statutes 2002, section 353.01,
12.14 subdivision 2d, is amended to read:
12.15 Subd. 2d. OPTIONAL MEMBERSHIP. (a) Membership in the
12.16 association is optional by action of the individual employee for
12.17 the following public employees who meet the conditions set forth
12.18 in subdivision 2a:
12.19 (1) members of the coordinated plan who are also employees
12.20 of labor organizations as defined in section 353.017,
12.21 subdivision 1, for their employment by the labor organization
12.22 only if they elect to have membership under section 353.017,
12.23 subdivision 2;
12.24 (2) persons who are elected or persons who are appointed to
12.25 elected positions other than local governing body elected
12.26 positions who elect to participate by filing a written election
12.27 for membership;
12.28 (3) members of the association who are appointed by the
12.29 governor to be a state department head and who elect not to be
12.30 covered by the general state employees retirement plan of the
12.31 Minnesota state retirement system under section 352.021; and
12.32 (4) city managers as defined in section 353.028,
12.33 subdivision 1, who do not elect to be excluded from membership
12.34 in the association under section 353.028, subdivision 2; and
12.35 (5) employees of the port authority of the city of St. Paul
12.36 who were at least age 45 on January 1, 2003, and who elect to
13.1 participate by filing a written election for membership.
13.2 (b) Membership in the association is optional by action of
13.3 the governmental subdivision for the employees of the following
13.4 governmental subdivisions under the conditions specified:
13.5 (1) the Minnesota association of townships if the board of
13.6 the association, at its option, certifies to the executive
13.7 director that its employees are to be included for purposes of
13.8 retirement coverage, in which case the status of the association
13.9 as a participating employer is permanent; and
13.10 (2) a county historical society if the county in which the
13.11 historical society is located, at its option, certifies to the
13.12 executive director that the employees of the historical society
13.13 are to be county employees for purposes of retirement coverage
13.14 under this chapter. The status as a county employee must be
13.15 accorded to all similarly situated county historical society
13.16 employees and, once established, must continue as long as a
13.17 person is an employee of the county historical society.
13.18 (c) For employees who are covered by paragraph (a), clause
13.19 (1), (2), or (3), or covered by paragraph (b), if the necessary
13.20 membership election is not made, the employee is excluded from
13.21 retirement coverage under this chapter. For employees who are
13.22 covered by paragraph (a), clause (4), if the necessary election
13.23 is not made, the employee must become a member and have
13.24 retirement coverage under this chapter. The option to become a
13.25 member, once exercised under this subdivision, may not be
13.26 withdrawn until termination of public service as defined under
13.27 subdivision 11a.
13.28 Sec. 2. Minnesota Statutes 2002, section 353.01,
13.29 subdivision 6, is amended to read:
13.30 Subd. 6. GOVERNMENTAL SUBDIVISION. (a) "Governmental
13.31 subdivision" means a county, city, town, school district within
13.32 this state, or a department or unit of state government, or any
13.33 public body whose revenues are derived from taxation, fees,
13.34 assessments or from other sources.
13.35 (b) Governmental subdivision also means the public
13.36 employees retirement association, the league of Minnesota
14.1 cities, the association of metropolitan municipalities, public
14.2 hospitals owned or operated by, or an integral part of, a
14.3 governmental subdivision or governmental subdivisions, the
14.4 association of Minnesota counties, the metropolitan intercounty
14.5 association, the Minnesota municipal utilities association, the
14.6 metropolitan airports commission, the Minneapolis employees
14.7 retirement fund for employment initially commenced after June
14.8 30, 1979, the range association of municipalities and schools,
14.9 soil and water conservation districts, economic development
14.10 authorities created or operating under sections 469.090 to
14.11 469.108, the port authority of the city of St. Paul, the Spring
14.12 Lake Park fire department, incorporated, the Red Wing
14.13 environmental learning center, and the Dakota county
14.14 agricultural society.
14.15 (c) Governmental subdivision does not mean any municipal
14.16 housing and redevelopment authority organized under the
14.17 provisions of sections 469.001 to 469.047; or any port authority
14.18 organized under sections 469.048 to 469.089 other than the port
14.19 authority of the city of St. Paul; or any hospital district
14.20 organized or reorganized prior to July 1, 1975, under sections
14.21 447.31 to 447.37 or the successor of the district, nor the
14.22 Minneapolis community development agency.
14.23 Sec. 3. Minnesota Statutes 2002, section 353.028,
14.24 subdivision 2, is amended to read:
14.25 Subd. 2. ELECTION. (a) A city manager may elect to be
14.26 excluded from membership in the association. The election of
14.27 exclusion must be made within six months following the
14.28 commencement of employment, in writing on a form prescribed by
14.29 the executive director, and must be approved by a resolution of
14.30 the governing body of the city. The election of exclusion is
14.31 not effective until it is filed with the executive director.
14.32 Membership of a city manager in the association ceases on the
14.33 date the written election is received by the executive director
14.34 or upon a later date specified. The election to be excluded
14.35 from membership must include a provision agreeing that the
14.36 person will not at any time in the future seek authorization to
15.1 purchase service credit for any period of excluded service and
15.2 is irrevocable. Employee and employer contributions made on
15.3 behalf of a person exercising the option to be excluded from
15.4 membership under this section must be refunded in accordance
15.5 with section 353.27, subdivision 7.
15.6 (b) A city manager who has elected exclusion under this
15.7 subdivision may elect to revoke that action by filing a written
15.8 notice with the executive director. The notice must be on a
15.9 form prescribed by the executive director and must be approved
15.10 by a resolution of the governing body of the city. Membership
15.11 of the city manager in the association resumes prospectively
15.12 from the date of the first day of the pay period for which
15.13 contributions were deducted or, if pay period coverage dates are
15.14 not provided, the date on which the notice of revocation or
15.15 contributions are received in the office of the association,
15.16 provided that the notice of revocation is received by the
15.17 association within 60 days of the receipt of contributions.
15.18 (c) An election under paragraph (b) is irrevocable. Any
15.19 election under paragraph (a) or (b) must include a statement
15.20 that the individual will not seek authorization to purchase
15.21 service credit for any period of excluded service.
15.22 Sec. 4. Minnesota Statutes 2002, section 353D.01,
15.23 subdivision 2, is amended to read:
15.24 Subd. 2. ELIGIBILITY. (a) Eligibility to participate in
15.25 the defined contribution plan is available to:
15.26 (1) elected local government officials of a governmental
15.27 subdivision who elect to participate in the plan under section
15.28 353D.02, subdivision 1, and who, for the elected service
15.29 rendered to a governmental subdivision, are not members of the
15.30 public employees retirement association within the meaning of
15.31 section 353.01, subdivision 7;
15.32 (2) physicians who, if they did not elect to participate in
15.33 the plan under section 353D.02, subdivision 2, would meet the
15.34 definition of member under section 353.01, subdivision 7;
15.35 (3) basic and advanced life support emergency medical
15.36 service personnel employed by or providing services for any
16.1 public ambulance service or privately operated ambulance service
16.2 that receives an operating subsidy from a governmental entity
16.3 that elects to participate under section 353D.02, subdivision 3;
16.4 and
16.5 (4) members of a municipal rescue squad associated with
16.6 Litchfield in Meeker county, or of a county rescue squad
16.7 associated with Kandiyohi county, if an independent nonprofit
16.8 rescue squad corporation, incorporated under chapter 317A,
16.9 performing emergency management services, and if not affiliated
16.10 with a fire department or ambulance service and if its members
16.11 are not eligible for membership in that fire department's or
16.12 ambulance service's relief association or comparable pension
16.13 plan; and
16.14 (5) employees of the port authority of the city of St. Paul
16.15 who elect to participate in the plan under section 353D.02,
16.16 subdivision 5, and who are not members of the public employees
16.17 retirement association under section 353.01, subdivision 7.
16.18 (b) For purposes of this chapter, an elected local
16.19 government official includes a person appointed to fill a
16.20 vacancy in an elective office. Service as an elected local
16.21 government official only includes service for the governmental
16.22 subdivision for which the official was elected by the
16.23 public-at-large. Service as an elected local government
16.24 official ceases and eligibility to participate terminates when
16.25 the person ceases to be an elected official. An elected local
16.26 government official does not include an elected county sheriff.
16.27 (c) Elected local government officials, physicians, first
16.28 response personnel and emergency medical service personnel, and
16.29 rescue squad personnel Individuals otherwise eligible to
16.30 participate in the plan under this subdivision who are currently
16.31 covered by a public or private pension plan because of their
16.32 employment or provision of services are not eligible to
16.33 participate in the public employees defined contribution plan.
16.34 (d) A former participant is a person who has terminated
16.35 eligible employment or service and has not withdrawn the value
16.36 of the person's individual account.
17.1 Sec. 5. Minnesota Statutes 2002, section 353D.02, is
17.2 amended by adding a subdivision to read:
17.3 Subd. 5. ST. PAUL PORT AUTHORITY PERSONNEL. Employees of
17.4 the port authority of the city of St. Paul who do not elect to
17.5 participate in the general employees retirement plan may elect
17.6 to participate in the plan by filing a membership application on
17.7 a form prescribed by the executive director of the association
17.8 authorizing contributions to be deducted from the employee's
17.9 salary. Participation begins on the first day of the pay period
17.10 for which the contributions were deducted or, if pay period
17.11 coverage dates are not provided, the date on which the
17.12 membership application or the contributions are received in the
17.13 office of the association, whichever is received first, if the
17.14 membership application is received by the association within 60
17.15 days of the receipt of the contributions. An election to
17.16 participate in the plan is irrevocable.
17.17 Sec. 6. RED WING ENVIRONMENTAL LEARNING CENTER.
17.18 (a) The legislature finds that the Red Wing learning center
17.19 has a long and very close relationship with independent school
17.20 district school district No. 256, Red Wing, that Red Wing
17.21 learning center employees have been treated as independent
17.22 school district No. 256, Red Wing, employees for retirement
17.23 coverage purposes for 33 years, and that the current learning
17.24 center employees would suffer a significant loss in their
17.25 pension benefit coverage if their membership in the general
17.26 employees retirement plan of the public employees retirement
17.27 association was disrupted.
17.28 (b) Notwithstanding the provisions of any other law to the
17.29 contrary, independent school district No. 256, Red Wing, may
17.30 certify to the executive director of the public employees
17.31 retirement association that employees of the Red Wing
17.32 environmental learning center are considered school district
17.33 employees solely for purposes of retirement coverage by the
17.34 general employees retirement plan under Minnesota Statutes,
17.35 chapter 353. This status must be accorded to all similarly
17.36 situated Red Wing environmental learning center employees.
18.1 Sec. 7. PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY
18.2 SERVICE CREDIT PURCHASE.
18.3 Subdivision 1. ELIGIBILITY. A full-time salaried
18.4 employee or a permanent part-time salaried employee of the port
18.5 authority of the city of St. Paul who was employed by the port
18.6 authority during all or part of the period from July 1, 1993, to
18.7 July 1, 2003, and who is a member of the general employees
18.8 retirement plan of the public employees retirement association
18.9 may purchase allowable service credit from the general employees
18.10 retirement plan.
18.11 Subd. 2. PURCHASABLE SERVICE; MAXIMUM. (a) The service
18.12 credit that is purchasable under subdivision 1 is a period or
18.13 periods of employment by the port authority of the city of St.
18.14 Paul that would have been eligible service for coverage by the
18.15 general employees retirement plan of the public employees
18.16 retirement association if the service had been rendered after
18.17 July 1, 2003.
18.18 (b) The maximum period of allowable service credit in the
18.19 general employees retirement plan of the public employees
18.20 retirement association for purchase under this section is ten
18.21 years.
18.22 Subd. 3. PURCHASE PAYMENT REQUIREMENT. (a) To purchase
18.23 the service credit, the payment amount must be calculated under
18.24 Minnesota Statutes, section 356.55.
18.25 (b) Notwithstanding any provision of Minnesota Statutes,
18.26 section 356.55, to the contrary, the prior service credit
18.27 purchase payment may be made in whole or in part on an
18.28 institution-to-institution basis from a plan qualified under the
18.29 federal Internal Revenue Code, sections 401(a), 401(k), or
18.30 414(h), or from an annuity qualified under the federal Internal
18.31 Revenue Code, section 403, or from a deferred compensation plan
18.32 under the federal Internal Revenue Code, section 457, to the
18.33 extent permitted by the applicable federal law. In no event may
18.34 a prior service credit purchase transfer be paid directly to the
18.35 person purchasing the service.
18.36 Subd. 4. DOCUMENTATION; SERVICE CREDIT GRANT. (a) An
19.1 eligible person described in subdivision 1 must provide any
19.2 documentation related to eligibility to make this service credit
19.3 purchase required by the executive director of the public
19.4 employees retirement association.
19.5 (b) Allowable service credit for the purchase period or
19.6 periods must be granted by the general employees retirement plan
19.7 of the public employees retirement association on behalf of the
19.8 eligible person upon receipt of the prior service credit
19.9 purchase payment amount.
19.10 Sec. 8. PRIOR SERVICE; VESTING.
19.11 For purposes of vesting under section 353.29, subdivision
19.12 1, only, a full-time salaried employee or a permanent part-time
19.13 salaried employee of the port authority of the city of St. Paul
19.14 who was employed by the port authority on July 1, 2003, and who
19.15 is a member of the general employees retirement plan of the
19.16 public employees retirement association may use months of
19.17 employment with the port authority before that date. This
19.18 service may not be used to calculate a retirement annuity or a
19.19 disability benefit provided for under Minnesota Statutes,
19.20 chapter 353.
19.21 Sec. 9. DEFINED CONTRIBUTION PLAN; ONE-TIME ELECTION.
19.22 Employees of the port authority of the city of St. Paul who
19.23 do not exercise the right to become members of the general
19.24 employees retirement plan of the public employees retirement
19.25 association under section 1 may, by one-time election, choose to
19.26 participate in the public employees retirement association's
19.27 defined contribution plan under Minnesota Statutes, sections
19.28 353D.01 through 353D.10. The election is irrevocable.
19.29 Sec. 10. EFFECTIVE DATE.
19.30 (a) Section 2 with respect to the Red Wing environmental
19.31 learning center and section 6 are effective the day after the
19.32 school board of independent school district No. 256, Red Wing,
19.33 and its chief clerical officer timely complete their compliance
19.34 with Minnesota Statutes, section 645.021, subdivisions 2 and 3,
19.35 and certification to the executive director of the public
19.36 employees retirement association.
20.1 (b) Sections 1, 3, 4, 5, 7, 8, and 9 are effective on the
20.2 day following final enactment.
20.3 (c) Section 2 with respect to the St. Paul port authority
20.4 is effective on the day following final enactment.
20.5 (d) Coverage by the general employees retirement plan of
20.6 the public employees retirement association under sections 1 and
20.7 2 commence on July 1, 2003.
20.8 ARTICLE 5
20.9 TEACHERS RETIREMENT ASSOCIATION
20.10 CHANGES
20.11 Section 1. Minnesota Statutes 2002, section 354.55, is
20.12 amended by adding a subdivision to read:
20.13 Subd. 20. AD HOC POSTRETIREMENT ADJUSTMENT FOR CERTAIN
20.14 PRE-1969 TEACHERS. (a) Eligible retired teachers as defined in
20.15 paragraph (c) are entitled to receive an ad hoc post retirement
20.16 adjustment in their retirement annuity, effective July 1, 2003,
20.17 unless the applicable person files a written notification with
20.18 the executive director of the teachers retirement association
20.19 that the additional benefit not be paid.
20.20 (b) The ad hoc post retirement adjustment percentage is 45
20.21 percent of the amount by which an eligible retired teacher's
20.22 single life retirement annuity amount calculated under section
20.23 354.44, subdivision 2, as in effect on the date of retirement
20.24 exceeds the eligible retired teacher's single life retirement
20.25 annuity amount as of the date of retirement. The ad hoc post
20.26 retirement adjustment percentage must be applied to the eligible
20.27 retired teacher's actual retirement annuity form amount, as of
20.28 the date of retirement, to determine the ad hoc post retirement
20.29 adjustment amount. The ad hoc post retirement adjustment is
20.30 subject to the same optional annuity form election as the base
20.31 retirement annuity.
20.32 (c) An eligible person for purposes of this subdivision is
20.33 a person who:
20.34 (1) was a teacher as defined in section 354.05, subdivision
20.35 2;
20.36 (2) rendered teaching service as defined in section 354.05,
21.1 subdivision 3, either during the 1968-1969 school year, but was
21.2 not covered by the improved money purchase program savings
21.3 clause, section 354.55, subdivision 17, or before the 1968-1969
21.4 school year, did not take a refund of member contributions upon
21.5 the termination of teacher service, and was eligible to make an
21.6 election under Minnesota Statutes 1971, section 354.55,
21.7 subdivision 8;
21.8 (3) retired after January 1, 1998; and
21.9 (4) receives a retirement annuity that, as a single life
21.10 retirement annuity amount as of the date of retirement, is less
21.11 than the person's single life retirement annuity amount under
21.12 section 354.44, subdivision 2, in effect on the date of
21.13 retirement.
21.14 Sec. 2. EFFECTIVE DATE.
21.15 Section 1 is effective July 1, 2003.
21.16 ARTICLE 6
21.17 LOCAL PENSION FUND CHANGES
21.18 Section 1. Minnesota Statutes 2002, section 383B.49, is
21.19 amended to read:
21.20 383B.49 SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF
21.21 SHARES.
21.22 When requested to do so, in writing, on forms provided by
21.23 the county, by a participant, surviving spouse, a guardian of a
21.24 surviving child or a personal representative, whichever is
21.25 applicable, the county of Hennepin shall redeem shares in the
21.26 accounts of the Minnesota supplemental investment fund standing
21.27 in a participant's share account record under the following
21.28 circumstances and in accordance with the laws and regulations
21.29 governing the Minnesota supplemental investment fund:
21.30 (1) A participant who is no longer employed by the county
21.31 of Hennepin is entitled to receive the cash realized on the
21.32 redemption of the shares to the credit of the participant's
21.33 share account record of the person. The participant may request
21.34 the redemption of all or a portion of the shares in the
21.35 participant's share account record of the person, but may not
21.36 request more than one redemption in any one calendar year. If
22.1 only a portion of the shares in the participant's share account
22.2 record is requested to be redeemed the person may request to
22.3 redeem not less than 20 percent of the shares in any one
22.4 calendar year and the redemption must be completed in no more
22.5 than five years. An election is irrevocable except that a
22.6 participant may request an amendment of the election to redeem
22.7 all of the person's remaining shares. All requests under this
22.8 paragraph are subject to application to and approval of the
22.9 Hennepin county board administrator, in its the sole
22.10 discretion of the administrator.
22.11 (2) In the event of the death of a participant leaving a
22.12 surviving spouse, the surviving spouse is entitled to receive
22.13 the cash realized on the redemption of all or a portion of the
22.14 shares in the participant's share account record of the deceased
22.15 spouse, but in no event may the spouse request more than one
22.16 redemption in each calendar year. If only a portion of the
22.17 shares in the participant's share account record is requested to
22.18 be redeemed, the surviving spouse may request the redemption of
22.19 not less than 20 percent of the shares in any one calendar
22.20 year. Redemption must be completed in no more than five years.
22.21 An election is irrevocable except that the surviving spouse may
22.22 request an amendment of the election to redeem all of the
22.23 participant's remaining shares. All requests under this
22.24 paragraph are subject to application to and approval of the
22.25 Hennepin county board administrator, in its the sole
22.26 discretion of the administrator. Upon the death of the
22.27 surviving spouse, any shares remaining in the participant's
22.28 share account record must be redeemed by the county of Hennepin
22.29 and the cash realized from the redemption distributed to the
22.30 estate of the surviving spouse.
22.31 (3) In the event of the death of a participant leaving no
22.32 surviving spouse, but leaving a minor surviving child or minor
22.33 surviving children, the guardianship estate of the minor child
22.34 is, or the guardianship estates of the minor children are,
22.35 entitled to receive the cash realized on the redemption of all
22.36 shares to the credit of the participant's share account record
23.1 of the deceased participant. In the event of minor surviving
23.2 children, the cash realized must be paid in equal shares to the
23.3 guardianship estates of the minor surviving children.
23.4 (4) In the event of the death of a participant leaving no
23.5 surviving spouse and no minor surviving children, the estate of
23.6 the deceased participant is entitled to receive the cash
23.7 realized on the redemption of all shares to the credit of the
23.8 participant's share account record of the deceased participant.
23.9 Sec. 2. Minnesota Statutes 2002, section 383B.493, is
23.10 amended to read:
23.11 383B.493 WITHDRAWAL FROM PARTICIPATION.
23.12 Notwithstanding Laws 1982, chapter 450, or any other law to
23.13 the contrary, a Hennepin county employee participating in the
23.14 Hennepin county supplemental retirement program pursuant to Laws
23.15 1982, chapter 450 may, in the event of an unforeseeable
23.16 emergency, apply to the county to discontinue participation in
23.17 the program. Employees who are no longer participating in the
23.18 program may apply for the redemption of all shares credited to
23.19 their share account record. Applications are subject to
23.20 approval of the Hennepin county board of commissioners
23.21 administrator in its the sole discretion of the administrator.
23.22 For the purposes of this section, the term "unforeseeable
23.23 emergency" shall mean a severe financial hardship to the
23.24 participant resulting from a sudden and unexpected illness or
23.25 accident of the participant or a person dependent upon the
23.26 participant, loss of participant's property due to casualty, or
23.27 other similar extraordinary and unforeseeable circumstances
23.28 arising as a result of events beyond the control of the
23.29 participant. Applications based on foreseeable expenditures
23.30 normally budgetable shall not be approved. A participant
23.31 exercising the option provided by this section shall be
23.32 ineligible for further participation in the supplemental
23.33 retirement program.
23.34 Sec. 3. EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD
23.35 HOC POSTRETIREMENT ADJUSTMENT.
23.36 In addition to the current pensions and other retirement
24.1 benefits payable, the pensions and retirement benefits payable
24.2 to retired police officers and firefighters and their surviving
24.3 spouses by the Eveleth police and fire trust fund are increased
24.4 by $100 per month. Increases are retroactive to January 1, 2003.
24.5 Sec. 4. EFFECTIVE DATE.
24.6 (a) Sections 1 and 2 are effective upon approval by the
24.7 Hennepin county board of commissioners and compliance with
24.8 Minnesota Statutes, section 645.021.
24.9 (b) Section 3 is effective on the day after the date on
24.10 which the Eveleth city council and the chief clerical officer of
24.11 the city of Eveleth comply with Minnesota Statutes, section
24.12 645.021, subdivisions 2 and 3.
24.13 ARTICLE 7
24.14 GENERAL SERVICE CREDIT PURCHASES
24.15 Section 1. Minnesota Statutes 2002, section 353.01,
24.16 subdivision 16a, is amended to read:
24.17 Subd. 16a. UNCREDITED MILITARY SERVICE CREDIT PURCHASE.
24.18 (a) A public employee who has at least three years of allowable
24.19 service with the public employees retirement association or the
24.20 public employees police and fire plan and who performed service
24.21 in the United States armed forces before becoming a public
24.22 employee, or who failed to obtain service credit for a military
24.23 leave of absence under subdivision 16, paragraph (h), is
24.24 entitled to purchase allowable service credit for the initial
24.25 period of enlistment, induction, or call to active duty without
24.26 any voluntary extension by making payment under section 356.55
24.27 if the public employee is not entitled to receive a current or
24.28 deferred retirement annuity from a United States armed forces
24.29 pension plan and has not purchased service credit from any other
24.30 defined benefit public employee pension plan for the same period
24.31 of service.
24.32 (b) A public employee who desires to purchase service
24.33 credit under paragraph (a) must apply with the executive
24.34 director to make the purchase. The application must include all
24.35 necessary documentation of the public employee's qualifications
24.36 to make the purchase, signed written permission to allow the
25.1 executive director to request and receive necessary verification
25.2 of applicable facts and eligibility requirements, and any other
25.3 relevant information that the executive director may require.
25.4 (c) Allowable service credit for the purchase period must
25.5 be granted by the public employees association or the public
25.6 employees police and fire plan, whichever applies, to the
25.7 purchasing public employee upon receipt of the purchase payment
25.8 amount. Payment must be made before the effective date of
25.9 retirement of the public employee.
25.10 (d) Notwithstanding paragraph (a), a public employee who
25.11 has at least three years of allowable service with the public
25.12 employees retirement association or the public employees police
25.13 and fire plan and who is a Vietnam veteran who served after July
25.14 1, 1961, and before July 1, 1978, and who served in the active
25.15 military service in a branch of the armed forces of the United
25.16 States in conducting a foreign war and was discharged under
25.17 honorable conditions, is entitled to purchase allowable service
25.18 credit for the initial period of enlistment, induction, or call
25.19 to active duty without any voluntary extension by making payment
25.20 in the amount of $5,000 per year of service credit if the public
25.21 employee is not entitled to receive a current or deferred
25.22 retirement annuity from a United States armed forces pension
25.23 plan and has not purchased service credit from any other defined
25.24 benefit public employee pension plan for the same period of
25.25 service. Paragraphs (b) and (c) apply to any service credit
25.26 purchases made under this paragraph.
25.27 Sec. 2. Minnesota Statutes 2002, section 356.55,
25.28 subdivision 7, is amended to read:
25.29 Subd. 7. EXPIRATION OF PURCHASE PAYMENT DETERMINATION
25.30 PROCEDURE. (a) This section expires and is repealed on July
25.31 1, 2003 2004.
25.32 (b) Authority for any public pension plan to accept a prior
25.33 service credit payment that is calculated in a timely fashion
25.34 under this section expires on October 1, 2003 2004.
25.35 Sec. 3. Laws 1999, chapter 222, article 16, section 16, as
25.36 amended by Laws 2002, chapter 392, article 7, section 1, is
26.1 amended to read:
26.2 Sec. 16. REPEALER.
26.3 Sections 1 to 13 are repealed on May 16, 2003 2004.
26.4 Sec. 4. Laws 2000, chapter 461, article 4, section 4, is
26.5 amended to read:
26.6 Sec. 4. EFFECTIVE DATE; SUNSET REPEALER.
26.7 (a) Sections 1, 2, and 3 are effective on the day following
26.8 final enactment.
26.9 (b) Sections 1, 2, and 3 are repealed on May 16, 2003 2004.
26.10 Sec. 5. Laws 2000, chapter 461, article 12, section 20, as
26.11 amended by Laws 2002, chapter 392, article 7, section 2, is
26.12 amended to read:
26.13 Sec. 20. EFFECTIVE DATE.
26.14 (a) Sections 4, 5, and 11 to 20 are effective on the day
26.15 following final enactment.
26.16 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day
26.17 following final enactment and apply retroactively to a faculty
26.18 member of the Lake Superior College who was granted an extended
26.19 leave of absence under article 19, section 4, of the united
26.20 technical college educators master agreement for the 1999-2000
26.21 academic year prior to March 20, 2000.
26.22 (c) Sections 5, 11, and 14, paragraph (c), expire on May
26.23 16, 2003 2004.
26.24 Sec. 6. Laws 2001, first special session chapter 10,
26.25 article 6, section 21, as amended by Laws 2002, chapter 392,
26.26 article 7, section 3, is amended to read:
26.27 Sec. 21. EXPIRATION DATE.
26.28 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17,
26.29 18, 19, and 20 expire May 16, 2003 2004.
26.30 (b) Sections 9 and 15 expire May 16, 2003 2004.
26.31 Sec. 7. REPEALER.
26.32 Minnesota Statutes 2002, sections 354.541 and 354A.109, are
26.33 repealed on May 16, 2004.
26.34 Sec. 8. EFFECTIVE DATE.
26.35 Sections 2 to 7 are effective on the day following final
26.36 enactment.
27.1 ARTICLE 8
27.2 SUPPLEMENTAL PENSION PLANS
27.3 Section 1. Minnesota Statutes 2002, section 356.24,
27.4 subdivision 1, is amended to read:
27.5 Subdivision 1. RESTRICTION; EXCEPTIONS. It is unlawful
27.6 for a school district or other governmental subdivision or state
27.7 agency to levy taxes for, or to contribute public funds to a
27.8 supplemental pension or deferred compensation plan that is
27.9 established, maintained, and operated in addition to a primary
27.10 pension program for the benefit of the governmental subdivision
27.11 employees other than:
27.12 (1) to a supplemental pension plan that was established,
27.13 maintained, and operated before May 6, 1971;
27.14 (2) to a plan that provides solely for group health,
27.15 hospital, disability, or death benefits;
27.16 (3) to the individual retirement account plan established
27.17 by chapter 354B;
27.18 (4) to a plan that provides solely for severance pay under
27.19 section 465.72 to a retiring or terminating employee;
27.20 (5) for employees other than personnel employed by the
27.21 board of trustees of the Minnesota state colleges and
27.22 universities and covered under the higher education supplemental
27.23 retirement plan under chapter 354C, if the supplemental plan
27.24 coverage is provided for in a personnel policy of the public
27.25 employer or in the collective bargaining agreement between the
27.26 public employer and the exclusive representative of public
27.27 employees in an appropriate unit, in an amount matching employee
27.28 contributions on a dollar for dollar basis, but not to exceed an
27.29 employer contribution of $2,000 a year per employee;
27.30 (i) to the state of Minnesota deferred compensation plan
27.31 under section 352.96; or
27.32 (ii) in payment of the applicable portion of the
27.33 contribution made to any investment eligible under section
27.34 403(b) of the Internal Revenue Code, if the employing unit has
27.35 complied with any applicable pension plan provisions of the
27.36 Internal Revenue Code with respect to the tax-sheltered annuity
28.1 program during the preceding calendar year;
28.2 (6) for personnel employed by the board of trustees of the
28.3 Minnesota state colleges and universities and not covered by
28.4 clause (5), to the supplemental retirement plan under chapter
28.5 354C, if the supplemental plan coverage is provided for in a
28.6 personnel policy or in the collective bargaining agreement of
28.7 the public employer with the exclusive representative of the
28.8 covered employees in an appropriate unit, in an amount matching
28.9 employee contributions on a dollar for dollar basis, but not to
28.10 exceed an employer contribution of $2,700 a year for each
28.11 employee;
28.12 (7) to a supplemental plan or to a governmental trust to
28.13 save for postretirement health care expenses qualified for
28.14 tax-preferred treatment under the Internal Revenue Code, if the
28.15 supplemental plan coverage is provided for in a personnel policy
28.16 or in the collective bargaining agreement of a public employer
28.17 with the exclusive representative of the covered employees in an
28.18 appropriate unit;
28.19 (8) to the laborer's national industrial pension fund for
28.20 the employees of a governmental subdivision who are covered by a
28.21 collective bargaining agreement that provides for coverage by
28.22 that fund and that sets forth a fund contribution rate, but not
28.23 to exceed an employer contribution of $2,000 per year per
28.24 employee;
28.25 (9) to the plumbers' and pipefitters' national pension fund
28.26 or to a plumbers' and pipefitters' local pension fund for the
28.27 employees of a governmental subdivision who are covered by a
28.28 collective bargaining agreement that provides for coverage by
28.29 that fund and that sets forth a fund contribution rate, but not
28.30 to exceed an employer contribution of $2,000 per year per
28.31 employee;
28.32 (10) to the international union of operating engineers
28.33 pension fund for the employees of a governmental subdivision who
28.34 are covered by a collective bargaining agreement that provides
28.35 for coverage by that fund and that sets forth a fund
28.36 contribution rate, but not to exceed an employer contribution of
29.1 $2,000 per year per employee; or
29.2 (11) to a supplemental plan organized and operated under
29.3 the federal Internal Revenue Code, as amended, that is wholly
29.4 and solely funded by the employee's accumulated sick leave,
29.5 accumulated vacation leave, and accumulated severance pay.
29.6 Sec. 2. EFFECTIVE DATE.
29.7 Section 1 is effective the day after final enactment.
29.8 ARTICLE 9
29.9 VOLUNTEER FIREFIGHTER RELIEF
29.10 ASSOCIATION CHANGES
29.11 Section 1. Minnesota Statutes 2002, section 424A.02,
29.12 subdivision 3, is amended to read:
29.13 Subd. 3. FLEXIBLE SERVICE PENSION MAXIMUMS. (a) Annually
29.14 on or before August 1 of each year as part of the certification
29.15 of the financial requirements and minimum municipal
29.16 obligation made pursuant to determined under section 69.772,
29.17 subdivision 4, or 69.773, subdivision 5, as applicable, the
29.18 secretary or some other official of the relief association
29.19 designated in the bylaws of each relief association shall
29.20 calculate and certify to the governing body of the applicable
29.21 qualified municipality the average amount of available financing
29.22 per active covered firefighter for the most recent three-year
29.23 period. The amount of available financing shall include any
29.24 amounts of fire state aid received or receivable by the relief
29.25 association, any amounts of municipal contributions to the
29.26 relief association raised from levies on real estate or from
29.27 other available revenue sources exclusive of fire state aid, and
29.28 one-tenth of the amount of assets in excess of the accrued
29.29 liabilities of the relief association calculated pursuant to
29.30 sections under section 69.772, subdivision 2; 69.773,
29.31 subdivisions 2 and 4; or 69.774, subdivision 2, if any.
29.32 (b) The maximum service pension which the relief
29.33 association has authority to provide for in its bylaws for
29.34 payment to a member retiring after the calculation date when the
29.35 minimum age and service requirements specified in subdivision 1
29.36 are met must be determined using the table in paragraph (c) or
30.1 (d), whichever applies.
30.2 (c) For a relief association where the governing bylaws
30.3 provide for a monthly service pension to a retiring member, the
30.4 maximum monthly service pension amount per month for each year
30.5 of service credited that may be provided for in the bylaws is
30.6 the maximum service pension figure corresponding to the average
30.7 amount of available financing per active covered firefighter:
30.8 Minimum Average Amount of Maximum Service Pension
30.9 Available Financing per Amount Payable per Month
30.10 Firefighter for Each Year of Service
30.11 $... $ .25
30.12 42 .50
30.13 84 1.00
30.14 126 1.50
30.15 168 2.00
30.16 209 2.50
30.17 252 3.00
30.18 294 3.50
30.19 335 4.00
30.20 378 4.50
30.21 420 5.00
30.22 503 6.00
30.23 587 7.00
30.24 672 8.00
30.25 755 9.00
30.26 839 10.00
30.27 923 11.00
30.28 1007 12.00
30.29 1090 13.00
30.30 1175 14.00
30.31 1259 15.00
30.32 1342 16.00
30.33 1427 17.00
30.34 1510 18.00
30.35 1594 19.00
30.36 1677 20.00
31.1 1762 21.00
31.2 1845 22.00
31.3 1888 22.50
31.4 1929 23.00
31.5 2014 24.00
31.6 2098 25.00
31.7 2183 26.00
31.8 2267 27.00
31.9 2351 28.00
31.10 2436 29.00
31.11 2520 30.00
31.12 2604 31.00
31.13 2689 32.00
31.14 2773 33.00
31.15 2857 34.00
31.16 2942 35.00
31.17 3026 36.00
31.18 3110 37.00
31.19 3963 3194 38.00
31.20 4047 3278 39.00
31.21 4137 3362 40.00
31.22 Effective beginning December 31, 2000:
31.23 4227 3446 41.00
31.24 4317 3530 42.00
31.25 4407 3614 43.00
31.26 4497 3698 44.00
31.27 Effective beginning December 31, 2001:
31.28 4587 3782 45.00
31.29 4677 3866 46.00
31.30 4767 3950 47.00
31.31 4857 4034 48.00
31.32 Effective beginning December 31, 2002:
31.33 4947 4118 49.00
31.34 5037 4202 50.00
31.35 5127 4286 51.00
31.36 5217 4370 52.00
32.1 Effective beginning December 31, 2003:
32.2 5307 4454 53.00
32.3 5397 4538 54.00
32.4 5487 4622 55.00
32.5 5577 4706 56.00
32.6 (d) For a relief association in which the governing bylaws
32.7 provide for a lump sum service pension to a retiring member, the
32.8 maximum lump sum service pension amount for each year of service
32.9 credited that may be provided for in the bylaws is the maximum
32.10 service pension figure corresponding to the average amount of
32.11 available financing per active covered firefighter for the
32.12 applicable specified period:
32.13 Minimum Average Amount Maximum Lump Sum Service
32.14 of Available Financing Pension Amount Payable
32.15 per Firefighter for Each Year of Service
32.16 $.. $10
32.17 11 20
32.18 16 30
32.19 23 40
32.20 27 50
32.21 32 60
32.22 43 80
32.23 54 100
32.24 65 120
32.25 77 140
32.26 86 160
32.27 97 180
32.28 108 200
32.29 131 240
32.30 151 280
32.31 173 320
32.32 194 360
32.33 216 400
32.34 239 440
32.35 259 480
32.36 281 520
33.1 302 560
33.2 324 600
33.3 347 640
33.4 367 680
33.5 389 720
33.6 410 760
33.7 432 800
33.8 486 900
33.9 540 1000
33.10 594 1100
33.11 648 1200
33.12 702 1300
33.13 756 1400
33.14 810 1500
33.15 864 1600
33.16 918 1700
33.17 972 1800
33.18 1026 1900
33.19 1080 2000
33.20 1134 2100
33.21 1188 2200
33.22 1242 2300
33.23 1296 2400
33.24 1350 2500
33.25 1404 2600
33.26 1458 2700
33.27 1512 2800
33.28 1566 2900
33.29 1620 3000
33.30 1672 3100
33.31 1726 3200
33.32 1753 3250
33.33 1780 3300
33.34 1820 3375
33.35 1834 3400
33.36 1888 3500
34.1 1942 3600
34.2 1996 3700
34.3 2023 3750
34.4 2050 3800
34.5 2104 3900
34.6 2158 4000
34.7 2212 4100
34.8 2265 4200
34.9 2319 4300
34.10 2373 4400
34.11 2427 4500
34.12 2481 4600
34.13 2535 4700
34.14 2589 4800
34.15 2643 4900
34.16 2697 5000
34.17 2751 5100
34.18 2805 5200
34.19 2859 5300
34.20 2913 5400
34.21 2967 5500
34.22 Effective beginning December 31, 2000:
34.23 3021 5600
34.24 3075 5700
34.25 3129 5800
34.26 3183 5900
34.27 3237 6000
34.28 Effective beginning December 31, 2001:
34.29 3291 6100
34.30 3345 6200
34.31 3399 6300
34.32 3453 6400
34.33 3507 6500
34.34 Effective beginning December 31, 2002:
34.35 3561 6600
34.36 3615 6700
35.1 3669 6800
35.2 3723 6900
35.3 3777 7000
35.4 Effective beginning December 31, 2003:
35.5 3831 7100
35.6 3885 7200
35.7 3939 7300
35.8 3993 7400
35.9 4047 7500
35.10 (e) For a relief association in which the governing bylaws
35.11 provide for a monthly benefit service pension as an alternative
35.12 form of service pension payment to a lump sum service pension,
35.13 the maximum service pension amount for each pension payment type
35.14 must be determined using the applicable table contained in this
35.15 subdivision.
35.16 (f) If a relief association establishes a service pension
35.17 in compliance with the applicable maximum contained in paragraph
35.18 (c) or (d) and the minimum average amount of available financing
35.19 per active covered firefighter is subsequently reduced because
35.20 of a reduction in fire state aid or because of an increase in
35.21 the number of active firefighters, the relief association may
35.22 continue to provide the prior service pension amount specified
35.23 in its bylaws, but may not increase the service pension amount
35.24 until the minimum average amount of available financing per
35.25 firefighter under the table in paragraph (c) or (d), whichever
35.26 applies, permits.
35.27 (g) No relief association is authorized to provide a
35.28 service pension in an amount greater than the largest applicable
35.29 flexible service pension maximum amount even if the amount of
35.30 available financing per firefighter is greater than the
35.31 financing amount associated with the largest applicable flexible
35.32 service pension maximum.
35.33 Sec. 2. Minnesota Statutes 2002, section 424A.02,
35.34 subdivision 7, is amended to read:
35.35 Subd. 7. DEFERRED SERVICE PENSIONS. (a) A member of a
35.36 relief association to which this section applies is entitled to
36.1 a deferred service pension if the member:
36.2 (1) has completed the lesser of the minimum period of
36.3 active service with the fire department specified in the bylaws
36.4 or 20 years of active service with the fire department;
36.5 (2) has completed at least five years of active membership
36.6 in the relief association; and
36.7 (3) separates from active service and membership before
36.8 reaching age 50 or the minimum age for retirement and
36.9 commencement of a service pension specified in the bylaws
36.10 governing the relief association if that age is greater than age
36.11 50.
36.12 (b) The deferred service pension starts when the former
36.13 member reaches age 50 or the minimum age specified in the bylaws
36.14 governing the relief association if that age is greater than age
36.15 50 and when the former member makes a valid written application.
36.16 (c) A relief association that provides a lump sum service
36.17 pension may, when its governing bylaws so provide, pay interest
36.18 on the deferred lump sum service pension during the period of
36.19 deferral. If interest on a deferred service pension is provided
36.20 for in the bylaws, interest must be paid accordingly, either:
36.21 (1) at the rate actually earned on that portion of the
36.22 assets if the deferred benefit amount is invested by the relief
36.23 association in a separate account established and maintained by
36.24 the relief association or in a separate investment vehicle held
36.25 by the relief association;
36.26 (2) at a rate determined annually by the board of trustees
36.27 based on the actual time weighted total rate of return
36.28 investment performance of the special fund as reported by the
36.29 office of the state auditor under section 356.219, up to five
36.30 percent, and applied consistently for all deferred service
36.31 pensioners; or, if not,
36.32 (3) at the interest rate of five percent, compounded
36.33 annually.
36.34 (d) For a deferred service pension that is transferred to a
36.35 separate account established and maintained by the relief
36.36 association or separate investment vehicle held by the relief
37.1 association under paragraph (c), clause (1), the deferred member
37.2 bears the full investment risk subsequent to transfer and in
37.3 calculating the accrued liability of the volunteer firefighters
37.4 relief association that pays a lump sum service pension, the
37.5 accrued liability for deferred service pensions is equal to the
37.6 separate relief association account balance or the fair market
37.7 value of the separate investment vehicle held by the relief
37.8 association.
37.9 (e) The deferred service pension is governed by and must be
37.10 calculated under the general statute, special law, relief
37.11 association articles of incorporation, and relief association
37.12 bylaw provisions applicable on the date on which the member
37.13 separated from active service with the fire department and
37.14 active membership in the relief association.
37.15 Sec. 3. Laws 1978, chapter 685, section 1, as amended by
37.16 Laws 1979, chapter 201, section 41, is amended to read:
37.17 Section 1. PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF
37.18 ASSOCIATION.
37.19 The bylaws of the Plymouth firefighter's relief association
37.20 may be amended to provide for payment of a disability pension in
37.21 an amount equal to $8.50 per month per year of service, to a
37.22 maximum of $255 per month consistent with the ancillary benefit
37.23 requirements specified in Minnesota Statutes, section 424A.02,
37.24 subdivision 9, to a firefighter qualified pursuant to determined
37.25 to be disabled, as defined in the bylaws of the association and
37.26 under procedures specified in those bylaws. No member shall be
37.27 entitled to draw both a disability pension and a service pension.
37.28 Sec. 4. Laws 1978, chapter 685, section 2, is amended to
37.29 read:
37.30 Sec. 2. The Plymouth firefighter's relief association may
37.31 provide for a benefit to the surviving spouse of a volunteer
37.32 firefighter who died, providing that the surviving spouse
37.33 qualifies under the terms of the bylaws, such benefit to be paid
37.34 as the bylaws of the association may provide, except that the
37.35 bylaws may not provide for a spouse's benefit of more than
37.36 $127.50 per month, and provided the benefit shall cease as of
38.1 the date of the spouse's remarriage and the benefit is
38.2 consistent with ancillary benefit requirements specified in
38.3 Minnesota Statutes, section 424A.02, subdivision 9.
38.4 Sec. 5. Laws 1978, chapter 685, section 3, is amended to
38.5 read:
38.6 Sec. 3. The Plymouth firefighter's relief association may
38.7 pay a pension for the children of deceased members, as the
38.8 association's bylaws may provide, consistent with ancillary
38.9 benefit requirements specified in Minnesota Statutes, section
38.10 424A.02, subdivision 9.
38.11 Sec. 6. Laws 1978, chapter 685, section 6, is amended to
38.12 read:
38.13 Sec. 6. (a) The bylaws of the Plymouth firefighter's
38.14 relief association may further provide that when any active or
38.15 deferred member of the association or any pensioner who is a
38.16 former member disabilitant or service pension recipient dies,
38.17 there may be paid a death or funeral benefit to defray or assist
38.18 the family of the deceased with funeral expenses.
38.19 (b) A benefit paid under this section due to the death of
38.20 an active or deferred member must conform to Minnesota Statutes,
38.21 section 424A.02, subdivision 9.
38.22 (c) A death or funeral benefit may be paid under this
38.23 section to the family of a deceased disabilitant or service
38.24 pensioner notwithstanding Minnesota Statutes, section 424A.02,
38.25 subdivision 9, providing that liabilities relating to this
38.26 benefit are recognized in determinations of actuarial condition
38.27 and funding costs, as determined under section 69.772 or 69.773,
38.28 whichever is applicable. Notwithstanding any law to the
38.29 contrary, the association is authorized to use a load factor or
38.30 factors to recognize liabilities relating to funeral or death
38.31 benefits paid to the family of a deceased disabilitant or
38.32 service pensioner. Benefits are not payable under this
38.33 paragraph if the city council does not approve the load factor
38.34 or factors used in determinations of actuarial conditions and
38.35 funding costs.
38.36 Sec. 7. STUDY OF STATEWIDE LUMP SUM VOLUNTEER FIREFIGHTER
39.1 RETIREMENT PLAN; CREATION OF TASK FORCE.
39.2 Subdivision 1. TASK FORCE MEMBERSHIP. (a) A statewide
39.3 volunteer firefighter retirement plan study task force is
39.4 created.
39.5 (b) The task force members are:
39.6 (1) four members appointed by the president of the
39.7 Minnesota area relief association coalition;
39.8 (2) four members appointed by the president of the
39.9 Minnesota state fire department association;
39.10 (3) four members appointed by the president of the
39.11 Minnesota state fire chiefs association;
39.12 (4) four members appointed by the board of directors of the
39.13 League of Minnesota Cities;
39.14 (5) two members appointed by the board of directors of the
39.15 Insurance Federation of Minnesota;
39.16 (6) two members appointed by the board of directors of the
39.17 Minnesota Association of Farm Mutual Insurance Companies;
39.18 (7) two members appointed by the board of directors of the
39.19 Minnesota Association of Townships; and
39.20 (8) the Minnesota state auditor or the auditor's designee.
39.21 (c) Appointments must be made on or before July 1, 2003.
39.22 If the appointment is not made in a timely way, or if there is a
39.23 vacancy, the Minnesota state auditor shall appoint the task
39.24 force member or the replacement member.
39.25 (d) The chair of the task force will be selected by the
39.26 task force.
39.27 (e) Staffing services for the task force must be provided
39.28 by the management analysis division.
39.29 Subd. 2. TASK FORCE DUTIES. (a) The task force shall
39.30 conduct fact finding regarding the creation of a voluntary
39.31 statewide firefighter retirement plan.
39.32 (b) To determine the design and components of the potential
39.33 statewide plan, the task force shall contract with the
39.34 management analysis division of the department of administration
39.35 to conduct a statewide survey of current volunteer firefighter
39.36 relief associations on the topic and shall conduct a series of
40.1 public meetings throughout the state in which comments from
40.2 volunteer firefighter relief association members would be
40.3 obtained.
40.4 (c) The task force shall retain an actuary to study and
40.5 recommend a benefit level or levels of a potential statewide
40.6 volunteer firefighter retirement plan and the funding
40.7 requirements for the plan.
40.8 (d) The task force shall recommend the investment vehicle
40.9 or vehicles to be utilized by the plan, the administration and
40.10 corporate governance structure of the plan, the incentives
40.11 needed to formulate the plan, the limitations applicable to the
40.12 plan, and the state resources needed to be dedicated to the plan.
40.13 Subd. 3. REPORT. The task force shall prepare a report
40.14 detailing its findings about a potential statewide volunteer
40.15 firefighter retirement plan. The report is due on January 15,
40.16 2005, and must be filed with the legislative reference library;
40.17 the chair of the legislative commission on pensions and
40.18 retirement; the chair of the state and local governmental
40.19 operations committee of the senate; the chair of the state
40.20 government, economic development, and the judiciary budget
40.21 division of the senate finance committee; the chair of the
40.22 governmental operations and veterans affairs policy committee of
40.23 the house of representatives; and the chair of the state
40.24 government finance committee of the house of representatives.
40.25 Subd. 4. DATA DISCLOSURE. In performing their duties
40.26 under this section, the task force, the management analysis
40.27 division of the state department of administration, and the
40.28 consulting actuary retained by the task force shall have access
40.29 to relevant data on volunteer firefighter relief associations
40.30 held by the office of the state auditor and must comply with the
40.31 relevant provisions of Minnesota Statutes, chapter 13.
40.32 Subd. 5. APPROPRIATION. (a) $300,000 is appropriated
40.33 from the general fund.
40.34 (b) Of the total amount in paragraph (a), $100,000 is
40.35 appropriated to the management analysis division of the
40.36 department of administration for conducting the statewide survey
41.1 under subdivision 2, paragraph (b). $15,000 is appropriated to
41.2 the state auditor's office for providing staff support to the
41.3 task force. $120,000 is appropriated to the commissioner of
41.4 administration to retain a consulting actuary to undertake work
41.5 described in subdivision 2. The balance of the total amount in
41.6 paragraph (a) is appropriated to the commissioner of
41.7 administration to pay any other costs related to the volunteer
41.8 firefighter retirement plan task force for conducting the study,
41.9 to assist the task force in completing its report, the retention
41.10 of any professionals the task force deems necessary to the
41.11 completion of its tasks, and the preparation of its final report.
41.12 (c) Upon the completion of the study and the filing of the
41.13 final report, any balance of the appropriation cancels to the
41.14 fire state aid program for distribution as part of the October
41.15 2004 fire state aid amounts.
41.16 Sec. 8. BENEFIT RATIFICATION; WHITE BEAR LAKE.
41.17 Notwithstanding Minnesota Statutes, section 424A.02,
41.18 subdivisions 3 and 3a, to the contrary, the service pension
41.19 amounts specified in the bylaws of the White Bear Lake fire
41.20 department relief association following bylaw amendments in
41.21 January 1999 and prior to the effective date of this section are
41.22 ratified.
41.23 Sec. 9. REPEALER.
41.24 Laws 1978, chapter 685, section 5, is repealed.
41.25 Sec. 10. EFFECTIVE DATE.
41.26 (a) Sections 1, 7, and 8 are effective on the day following
41.27 final enactment.
41.28 (b) Section 2 is effective on July 1, 2003.
41.29 (c) Sections 3, 4, 5, 6, and 9 are effective on the day
41.30 after the date on which the Plymouth city council and the chief
41.31 clerical officer of the city of Plymouth complete in a timely
41.32 manner their compliance with Minnesota Statutes, section
41.33 645.021, subdivisions 2 and 3.
41.34 (d) Sections 3, 4, 5, 6, and 9 should not be interpreted as
41.35 reducing or otherwise diminishing benefits provided by the
41.36 Plymouth firefighter's relief association plan.
42.1 ARTICLE 10
42.2 MINNEAPOLIS FIREFIGHTERS RELIEF
42.3 ASSOCIATION CHANGES
42.4 Section 1. Minnesota Statutes 2002, section 423C.03,
42.5 subdivision 3, is amended to read:
42.6 Subd. 3. COMPENSATION OF OFFICERS AND BOARD MEMBERS.
42.7 Notwithstanding any other law to the contrary, the association
42.8 may provide for payment of the following salaries to its
42.9 officers and board members:
42.10 (1) the executive secretary may receive a salary not
42.11 exceeding 30 50 percent of the maximum salary of a first grade
42.12 firefighter;
42.13 (2) the president may receive a salary not exceeding ten
42.14 percent of the maximum salary of a first grade firefighter; and
42.15 (3) all other elected members of the board may receive a
42.16 salary not exceeding 2.5 percent of the maximum salary of a
42.17 first grade firefighter.
42.18 Sec. 2. Minnesota Statutes 2002, section 423C.08, is
42.19 amended to read:
42.20 423C.08 MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON
42.21 DEATH.
42.22 If an active, deferred, or retired member of the
42.23 association dies and no survivor benefit is payable, the
42.24 designated beneficiary of the decedent or, if none, the legal
42.25 representative of the estate of the decedent is entitled, upon
42.26 application, to a refund. The refund shall be an amount equal
42.27 to the member contributions to the credit of the decedent, plus
42.28 interest on those contributions at an annual compounded rate of
42.29 five percent from the first day of the month following the date
42.30 of the contribution to the first day of the month following the
42.31 date of death of the decedent, reduced by the sum of any service
42.32 pension or disability benefit previously paid by the fund to the
42.33 decedent.
42.34 Sec. 3. INTENT.
42.35 Section 2 is intended to bring the Minneapolis firefighters
42.36 relief association's statutory provision which provides for a
43.1 refund of member contributions where the decedent does not leave
43.2 a surviving spouse or children in conformance with Minnesota
43.3 Statutes 2002, section 423A.18.
43.4 Sec. 4. EFFECTIVE DATE.
43.5 (a) The board of the Minneapolis firefighters relief
43.6 association may increase the salary of the executive secretary
43.7 subject to the maximum set forth in section 1.
43.8 (b) Any salary increase under paragraph (a) may be
43.9 effective on September 1, 2002, or any time thereafter as
43.10 designated by the relief association board.
43.11 (c) Section 2 is effective retroactive to September 25,
43.12 2001. Section 3 is effective on the day following final
43.13 enactment.
43.14 ARTICLE 11
43.15 INDIVIDUAL SERVICE CREDIT PURCHASES
43.16 Section 1. GENERAL STATE EMPLOYEE RETIREMENT PLAN;
43.17 SERVICE CREDIT PURCHASE AUTHORIZED.
43.18 (a) Notwithstanding any provision of law to the contrary,
43.19 an eligible person described in paragraph (b) is authorized to
43.20 purchase allowable service credit from the general state
43.21 employees retirement plan of the Minnesota state retirement
43.22 system for the period described in paragraph (c) by making the
43.23 prior service credit purchase payment required under Minnesota
43.24 Statutes, section 356.55 or 356.551, whichever applies.
43.25 (b) An eligible person is a person who:
43.26 (1) is a current employee of the Minnesota department of
43.27 transportation and is a current member of the general state
43.28 employees retirement plan of the Minnesota state retirement
43.29 system;
43.30 (2) was born on April 3, 1957;
43.31 (3) was employed on a part-time basis by the Minnesota
43.32 department of transportation on September 11, 1984; and
43.33 (4) first became a member of the general state employees
43.34 retirement plan of the Minnesota state retirement system on
43.35 September 26, 1989.
43.36 (c) The allowable service credit purchase period is two
44.1 years and 11 months.
44.2 (d) The eligible person must provide all relevant
44.3 documentation of the applicability of the requirements set forth
44.4 in paragraph (b) and any other applicable information that the
44.5 executive director of the Minnesota state retirement system may
44.6 request.
44.7 (e) Allowable service credit for the purchase period must
44.8 be granted by the general state employees retirement plan to the
44.9 eligible person upon receipt of the prior service credit
44.10 purchase payment amount.
44.11 (f) Notwithstanding Minnesota Statutes, section 356.55,
44.12 subdivision 5, or 356.551, subdivision 2, the Minnesota
44.13 department of transportation is not permitted to pay any portion
44.14 of the service credit purchase payment amount.
44.15 (g) The prior service credit purchase authority expires on
44.16 July 1, 2004, or on the date of the termination of active state
44.17 service by the eligible person, whichever occurs earlier.
44.18 Sec. 2. PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY
44.19 EMPLOYMENT PERIOD.
44.20 (a) An eligible person described in paragraph (b) is
44.21 entitled to purchase allowable service credit from the public
44.22 employees retirement association general plan for the period or
44.23 periods of temporary employment specified in paragraph (c) by
44.24 making the payment required under Minnesota Statutes, section
44.25 356.55 or 356.551, whichever is applicable.
44.26 (b) An eligible person is a person who:
44.27 (1) was born on November 27, 1954;
44.28 (2) was hired by the city of Minneapolis as a permanent
44.29 intermittent employee in June 1976 and was not covered by the
44.30 public employees retirement association general plan for that
44.31 employment; and
44.32 (3) is currently employed by the city of Minneapolis,
44.33 covered by the public employees retirement association.
44.34 (c) The periods for allowable service credit purchase are
44.35 periods during 1976, 1977, and 1978 during which the eligible
44.36 person was employed by the city of Minneapolis as a permanent
45.1 intermittent employee.
45.2 (d) An eligible person must provide any relevant
45.3 documentation related to eligibility to make this service credit
45.4 purchase required by the executive director of the public
45.5 employees retirement association.
45.6 (e) Allowable service credit for the purchase periods must
45.7 be granted by the public employees retirement association to the
45.8 account of the eligible person upon receipt of documentation
45.9 showing that the individual would have otherwise been eligible
45.10 for coverage by general employees retirement plan of the public
45.11 employees retirement association if the service had been
45.12 rendered after July 1, 1979, and the prior service credit
45.13 purchase payment amount. To receive the service credit, the
45.14 service credit purchase must be received by the public employees
45.15 retirement association by October 1, 2003, or prior to
45.16 retirement, whichever is earlier.
45.17 Sec. 3. Laws 2000, chapter 461, article 19, section 6, is
45.18 amended to read:
45.19 Sec. 6. MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR
45.20 UNCREDITED TEACHING SERVICE PERIODS.
45.21 (a) An eligible person described in paragraph (b) is
45.22 entitled to purchase allowable service credit from the
45.23 Minneapolis teachers retirement fund association basic program
45.24 for the periods of teaching employment specified in paragraph
45.25 (c) by making the payment required under Minnesota Statutes,
45.26 section 356.55.
45.27 (b) An eligible person is a person who:
45.28 (1) was employed by special school district No. 1
45.29 (Minneapolis) as a long call reserve teacher from October 1972
45.30 to June 1973 and was covered by the Minneapolis employees
45.31 retirement fund;
45.32 (2) was employed by special school district No. 1
45.33 (Minneapolis) as a school social worker at Franklin junior high
45.34 school from August 28, 1973, through June 12, 1974, and from
45.35 August 29, 1974, through June 11, 1975, without retirement
45.36 coverage;
46.1 (3) was employed by special school district No. 1
46.2 (Minneapolis) as a school social worker at North high school
46.3 from August 29, 1975, through December 19, 1975, covered by the
46.4 Minneapolis teachers retirement fund association;
46.5 (4) was retained by special school district No. 1
46.6 (Minneapolis) in the capacity of a school social worker at North
46.7 high school as an hourly wage social worker from August 1976
46.8 through June 1983 without retirement coverage; and
46.9 (5) is currently employed by Hennepin county covered by the
46.10 public employees retirement association.
46.11 (c) The periods for allowable service credit purchase are
46.12 August 28, 1973, through June 12, 1974; and August 29, 1974,
46.13 through June 11, 1975.
46.14 (d) An eligible person must provide any relevant
46.15 documentation related to eligibility to make this service credit
46.16 purchase required by the executive director of the Minneapolis
46.17 teachers retirement fund association.
46.18 (e) Allowable service credit for the purchase periods must
46.19 be granted by the Minneapolis teachers retirement fund
46.20 association to the account of the eligible person upon receipt
46.21 of the prior service credit purchase payment amount. Authority
46.22 provided by this section is voided if payment is not made before
46.23 July 1, 2003, or before commencing receipt of an annuity from
46.24 the Minneapolis teachers retirement fund association, whichever
46.25 is earlier.
46.26 (f) The prior service credit purchase payment amount shall
46.27 be computed by the actuary retained by the legislative
46.28 commission on pensions and retirement. That computation must
46.29 give recognition, in applying the process stated in Minnesota
46.30 Statutes, section 356.55, give recognition to the liabilities
46.31 that would be created in the Minneapolis teachers retirement
46.32 fund association and other Minnesota public pension funds due to
46.33 the service credit purchase.
46.34 (g) Following receipt of that purchase payment amount, the
46.35 executive director of the Minneapolis teachers retirement fund
46.36 association shall allocate and transmit that amount to the
47.1 applicable pension administrations, as determined under
47.2 paragraph (f).
47.3 Sec. 4. MERF; PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY
47.4 EMPLOYMENT PERIOD.
47.5 (a) An eligible person described in paragraph (b) is
47.6 entitled to purchase allowable service credit from the
47.7 Minneapolis employees retirement fund for the period or periods
47.8 of temporary employment specified in paragraph (c) by making the
47.9 payment required under Minnesota Statutes, section 356.55 or
47.10 356.551, whichever is applicable.
47.11 (b) An eligible person is a person who:
47.12 (1) was born on June 13, 1953;
47.13 (2) was hired by the city of Minneapolis as a permanent
47.14 seasonal intermittent employee in June 1977 and was covered by
47.15 the Minneapolis employees retirement fund for that employment;
47.16 and
47.17 (3) is currently employed by the city of Minneapolis,
47.18 covered by the Minneapolis employees retirement association.
47.19 (c) The periods for allowable service credit purchase are
47.20 periods during 1975 and 1976 during which the eligible person
47.21 was employed by the city of Minneapolis as a temporary employee.
47.22 (d) An eligible person must provide any relevant
47.23 documentation related to eligibility to make this service credit
47.24 purchase required by the executive director of the Minneapolis
47.25 employees retirement fund.
47.26 (e) Allowable service credit for the purchase periods must
47.27 be granted by the Minneapolis employees retirement fund to the
47.28 account of the eligible person upon receipt of documentation
47.29 showing that the individual would have otherwise been eligible
47.30 for coverage by the Minneapolis employees retirement fund and
47.31 the prior service credit purchase payment amount. To receive
47.32 the service credit, the service credit purchase must be received
47.33 by the Minneapolis employees retirement fund by October 1, 2003,
47.34 or prior to retirement, whichever is earlier.
47.35 Sec. 5. PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE
47.36 OF PRIOR SERVICE CREDIT.
48.1 Subdivision 1. AUTHORIZATION. (a) A member of the public
48.2 employees police and fire retirement plan who was initially
48.3 employed as a police officer by the city of St. Louis Park, who
48.4 was subsequently employed as the public safety director by the
48.5 metropolitan airports commission, who is currently on a leave of
48.6 absence from the metropolitan airports commission, and who has
48.7 at least three years of allowable service credit with the public
48.8 employees police and fire retirement plan is entitled to
48.9 purchase up to 11.333 years of allowable service credit for
48.10 employment as a full time police officer by the city of St.
48.11 Louis Park if the employment was covered by a local relief
48.12 association governed by Minnesota Statutes, section 69.77.
48.13 (b) The authorization under paragraph (a) applies
48.14 notwithstanding any contrary provision of Minnesota Statutes,
48.15 section 353A.10. To purchase the service credit, the amount of
48.16 $183,329.38 must be paid. The purchase payment may be a
48.17 combination of the following:
48.18 (1) amounts transferred from the person's federal Internal
48.19 Revenue Code section 457 deferred compensation plan on an
48.20 institution-to-institution basis;
48.21 (2) any amount accrued by and potentially payable to the
48.22 person by the metropolitan airports commission under the
48.23 applicable employment benefit plan as accumulated sick leave,
48.24 transferred on an institution-to-institution basis; and
48.25 (3) the balance paid by the eligible person under paragraph
48.26 (a).
48.27 (c) The authorization under paragraph (a) applies only if
48.28 the person and the person's spouse waive any right to receive a
48.29 current or deferred service pension or retirement annuity or a
48.30 current disability benefit under the former St. Louis Park
48.31 police relief association benefit plan for that service.
48.32 (d) Authority to make the payment under this section
48.33 expires on September 15, 2003.
48.34 Subd. 2. APPLICATION AND DOCUMENTATION. A person who
48.35 desires to purchase service credit under subdivision 1 must
48.36 apply in writing with the executive director of the public
49.1 employees retirement association to make the purchase. The
49.2 application must include all necessary documentation of the
49.3 person's qualifications to make the purchase, signed written
49.4 permission to allow the executive director to request and
49.5 receive necessary verification of applicable facts and
49.6 eligibility requirements, and any other relevant information
49.7 that the executive director may require.
49.8 Subd. 3. SERVICE CREDIT GRANT. Allowable service credit
49.9 for the purchase period must be granted by the public employees
49.10 police and fire retirement plan to the purchasing person only
49.11 upon receipt of the purchase payment amount. Payment must be
49.12 made before the person's effective date of retirement.
49.13 Sec. 6. TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT
49.14 PURCHASE FOR SABBATICAL LEAVES.
49.15 (a) Notwithstanding Minnesota Statutes, section 354.092, or
49.16 any other law to the contrary, an eligible person described in
49.17 paragraph (b) is entitled to purchase not more than three years
49.18 of allowable service credit from the teachers retirement
49.19 association for sabbatical leave as defined in Minnesota
49.20 Statutes, section 122A.49.
49.21 (b) An eligible person is a person who:
49.22 (1) worked as a teacher for independent school district No.
49.23 191, Burnsville-Eagan-Savage;
49.24 (2) was on sabbatical leave at some time between January 1,
49.25 1982, and December 31, 1989; and
49.26 (3) did not receive service credit for time on sabbatical
49.27 leave because the leave was not properly reported to the
49.28 teachers retirement association.
49.29 (c) An eligible person described in paragraph (b) must
49.30 apply with the executive director of the teachers retirement
49.31 association to make a service credit purchase under this
49.32 section. The application must be in writing and must include
49.33 all necessary documentation of the applicability of this section
49.34 and any other relevant information that the executive director
49.35 may require.
49.36 (d) Allowable service credit for the purchase periods must
50.1 be granted by the teachers retirement association to the account
50.2 of an eligible person upon receipt of the portion of the prior
50.3 service credit purchase payment amount payable under paragraph
50.4 (e) in a lump sum by the applicable eligible person.
50.5 (e) Notwithstanding Minnesota Statutes, section 356.55 or
50.6 356.551, whichever is applicable, an eligible person may pay
50.7 before September 1, 2003, or the date of termination from
50.8 service, whichever is earlier, an amount equal to the employee
50.9 contribution rate or rates in effect during the applicable
50.10 sabbatical leave period or periods specified in paragraph (b)
50.11 applied to the actual salary rate or rates in effect during that
50.12 period or periods, plus annual compound interest at the rate of
50.13 8.5 percent from the midpoint of each applicable sabbatical
50.14 leave period, to the date on which the payment is actually
50.15 made. Independent school district No. 191 must pay the
50.16 remaining balance of the prior service credit purchase payment
50.17 amount calculated under Minnesota Statutes, section 356.55 or
50.18 356.551, whichever is applicable, within 30 days of the payment
50.19 by an eligible person. The executive director of the teachers
50.20 retirement association must notify the superintendent of
50.21 independent school district No. 191 of its payment amount and
50.22 payment due date if an eligible person makes the required
50.23 payment.
50.24 (f) If independent school district No. 191 fails to pay its
50.25 portion of the required prior service credit purchase payment
50.26 amount, the executive director of the teachers retirement
50.27 association must notify the commissioner of finance of that fact
50.28 and the commissioner of finance must order that the required
50.29 employer payment be deducted from the next subsequent payment or
50.30 payments of state education aid to the school district and be
50.31 transmitted to the teachers retirement association.
50.32 Sec. 7. EFFECTIVE DATE.
50.33 Sections 1, 2, 3, 4, 5, and 6 are effective on the day
50.34 following final enactment.
50.35 ARTICLE 12
50.36 VARIOUS ONE PERSON AND SMALL
51.1 GROUP RETIREMENT CHANGES
51.2 Section 1. MSRS-GENERAL; REFUND ELIGIBILITY IN CERTAIN
51.3 INSTANCES.
51.4 Notwithstanding any provision of Minnesota Statutes,
51.5 section 352.22, subdivision 1, to the contrary, a person who
51.6 previously has been employed as a state employee, who was placed
51.7 on a medical leave of absence before April 1, 2002, and who was
51.8 still on the medical leave on April 1, 2003, is eligible to
51.9 receive a refund under Minnesota Statutes, section 352.22, if
51.10 the person has not again become a state employee covered by the
51.11 system on the refund application date.
51.12 Sec. 2. PERA-GENERAL; AUTHORITY TO REVOKE RETIREMENT
51.13 ANNUITY APPLICATION.
51.14 (a) Notwithstanding any provision of Minnesota Statutes,
51.15 sections 353.29 and 353.33 to the contrary, an eligible person
51.16 defined in paragraph (b) is entitled to revoke a prior
51.17 retirement annuity application, to apply for a disability
51.18 benefit, and, if totally and permanently disabled, to receive
51.19 retroactive disability benefits as provided in paragraph (d).
51.20 (b) An eligible person is a person who:
51.21 (1) was born on June 1, 1939;
51.22 (2) was employed on an intermittent basis by Hennepin
51.23 county;
51.24 (3) applied for a disability benefit from the general
51.25 employees retirement plan of the public employees retirement
51.26 association on April 23, 2001, which application was denied on
51.27 July 6, 2001, and which application was withdrawn on October 16,
51.28 2001;
51.29 (4) terminated employment from Hennepin county on June 15,
51.30 2001;
51.31 (5) retired effective July 1, 2001; and
51.32 (6) was subsequently determined eligible for disability
51.33 benefits from the federal old age, survivors and disability
51.34 insurance program.
51.35 (c) An eligible person may revoke any prior retirement
51.36 annuity application. The revocation must be in writing. If the
52.1 subsequent disability benefit application is not finally
52.2 approved, the retirement annuity must be reinstated.
52.3 (d) An eligible person may apply for a disability benefit
52.4 from the general employees retirement plan of the public
52.5 employees retirement association, notwithstanding any time
52.6 limitation or other procedural impediment. If the eligible
52.7 person is determined to be totally and permanently disabled
52.8 under Minnesota Statutes, section 353.01, subdivision 19, the
52.9 person must receive an additional payment representing the
52.10 difference between the retirement annuity amounts paid between
52.11 July 1, 2001, and the date of the initial payment of the
52.12 disability benefit and the disability benefit amounts that would
52.13 have been payable during the period, plus compound interest at
52.14 the monthly rate of 0.71 percent on the differential amounts.
52.15 (e) The authority to revoke the current retirement annuity
52.16 application and to apply for a disability benefit expires on
52.17 December 31, 2003.
52.18 Sec. 3. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE
52.19 TERMINATION.
52.20 Subdivision 1. ELIGIBILITY. (a) An eligible individual
52.21 specified in paragraph (b) is authorized to apply for a
52.22 retirement annuity, provided necessary age and service
52.23 requirements are met, under Minnesota Statutes, section 353.29
52.24 or 353.30, as applicable, as further specified under subdivision
52.25 2.
52.26 (b) an eligible individual is an individual who:
52.27 (1) was employed as a Beltrami county employee and became a
52.28 member of the public employees retirement association general
52.29 plan due to that service on June 1, 1991;
52.30 (2) was elected to the Bemidji city council and took office
52.31 in January 2001;
52.32 (3) elected under law then applicable to have public
52.33 employees retirement association general plan coverage for the
52.34 city council elected service; and
52.35 (4) terminated Beltrami county employment but is unable to
52.36 commence receipt of a public employees retirement association
53.1 general plan annuity because of the continuing public employees
53.2 retirement association general plan coverage for the elected
53.3 city council service.
53.4 Subd. 2. RETIREMENT ANNUITY. (a) Notwithstanding an
53.5 irrevocable election to participate in the public employees
53.6 retirement association general plan as an elected official and
53.7 continuation of elected service, an eligible individual under
53.8 subdivision 1, paragraph (b), is deemed to have terminated
53.9 membership under Minnesota Statutes, section 353.01, subdivision
53.10 11b, following the termination of the Beltrami county employment.
53.11 (b) If the requirements of paragraph (a) are satisfied, the
53.12 eligible individual may apply for a retirement annuity under
53.13 Minnesota Statutes, section 353.29 or 353.30, as applicable. In
53.14 computing the annuity, the public employees retirement
53.15 association must exclude salary due to the elected Bemidji city
53.16 council service. Deferred annuity augmentation under Minnesota
53.17 Statutes, section 353.71, applies to this annuity.
53.18 Subd. 3. TREATMENT OF BEMIDJI CITY COUNCIL CONTRIBUTIONS
53.19 TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION. (a) All
53.20 employee contributions to the public employees retirement
53.21 association coordinated plan by an eligible individual in
53.22 subdivision 1, paragraph (b), due to the elected Bemidji city
53.23 council service, and all corresponding employer contributions,
53.24 must be determined.
53.25 (b) An eligible individual under subdivision 1, paragraph
53.26 (b), must elect, within one year of the effective date of this
53.27 section or upon termination of elective service, whichever is
53.28 earlier, a refund under Minnesota Statutes, section 353.34,
53.29 subdivision 2, of employee contributions determined under
53.30 paragraph (a), or coverage by the public employees defined
53.31 contribution plan under chapter 353D, as further specified in
53.32 paragraph (c).
53.33 (c) If public employee defined contribution plan coverage
53.34 is elected under paragraph (b), contributions to that plan
53.35 commence as of the first day of the pay period following this
53.36 election, and accumulated employee and employer contributions
54.1 determined under paragraph (a) must be transferred with six
54.2 percent annual interest to an account for the eligible
54.3 individual in the public employees defined contribution plan.
54.4 (d) If no election is made by an eligible individual by the
54.5 required date in paragraph (b), the individual is assumed to
54.6 have elected the refund indicated in paragraph (b).
54.7 (e) Upon an election under paragraph (b), or a mandatory
54.8 refund under paragraph (d), all rights in the public employees
54.9 retirement association coordinated plan due to elected Bemidji
54.10 city council service are forfeited and may not be reestablished.
54.11 Sec. 4. TEACHERS RETIREMENT ASSOCIATION; COVERAGE
54.12 ELECTION OPTION DEADLINE EXTENSION.
54.13 (a) Notwithstanding any provision of Minnesota Statutes,
54.14 section 354B.21, subdivision 2 or 3 to the contrary, an eligible
54.15 person described in paragraph (b) is entitled to elect to
54.16 continue retirement coverage by the teachers retirement
54.17 association.
54.18 (b) An eligible person is a person who:
54.19 (1) was born on May 5, 1960;
54.20 (2) was first employed as a teacher for the 1982-1983
54.21 school year;
54.22 (3) was employed as a teacher by independent school
54.23 district No. 345, New London-Spicer, from the 1984-1985 school
54.24 year until the 1994-1995 school year;
54.25 (4) was employed as a teacher by independent school
54.26 district No. 858, St. Charles, from the 1995-1996 school year
54.27 through the 2001-2002 school year;
54.28 (5) was employed by the Riverland community college on
54.29 August 22, 2002; and
54.30 (6) received a Minnesota state colleges and universities
54.31 system retirement plan election form on August 27, 2002, but did
54.32 not file the form by December 4, 2002, and received individual
54.33 retirement account retirement plan coverage by default.
54.34 (c) The election of teachers retirement coverage must be
54.35 made in writing by the eligible person and must be made on or
54.36 before September 1, 2003.
55.1 (d) If an election of teachers retirement association
55.2 coverage is made under this section, the Minnesota state
55.3 colleges and universities system shall transfer from the
55.4 individual retirement account plan member and employer
55.5 contributions equal to ten percent of the eligible person's
55.6 covered salary as an employee of the system from August 22,
55.7 2002, to the date of the coverage election under this section,
55.8 plus annual interest at the rate of 8.5 percent. Upon the
55.9 contribution transfer, the teachers retirement association shall
55.10 credit the eligible person with allowable and formula service
55.11 credit for the period August 22, 2002, to the date of the
55.12 coverage election.
55.13 Sec. 5. MINNEAPOLIS FIRE RELIEF ASSOCIATION SURVIVOR
55.14 BENEFIT.
55.15 (a) Notwithstanding the eligibility requirements in
55.16 Minnesota Statutes, section 423C.05, subdivision 7, or other law
55.17 to the contrary, an eligible individual specified in paragraph
55.18 (b) is entitled to receive an annuity as specified in paragraph
55.19 (c).
55.20 (b) An eligible individual is an individual who:
55.21 (1) married an active member of the Minneapolis fire relief
55.22 association on September 17, 2000; and
55.23 (2) remained married to that firefighter on October 3,
55.24 2000, when that active member of the relief association
55.25 terminated service with the fire department and began drawing a
55.26 service annuity from the Minneapolis fire department relief
55.27 association, and on September 26, 2001, the date of death of
55.28 that service pensioner.
55.29 (c) The eligible individual in paragraph (b) is entitled to
55.30 a surviving spouse benefit under Minnesota Statutes, section
55.31 423C.05, subdivision 7, payable to a surviving spouse under
55.32 clause (2) of that subdivision.
55.33 (d) The annuity payable under paragraph (c) accrues as of
55.34 the first day of the first month after the effective date of
55.35 this section.
55.36 Sec. 6. SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED
56.1 PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.
56.2 (a) Notwithstanding any provision of Minnesota Statutes,
56.3 section 354A.094, to the contrary, the Minneapolis teachers
56.4 retirement fund association must accept the application for
56.5 full-time retirement coverage filed by special school district
56.6 No. 1, for the 2001-2002 school year, for a teacher who:
56.7 (1) was born on March 10, 1950;
56.8 (2) is a basic plan member of the Minneapolis teachers
56.9 retirement fund association;
56.10 (3) first became a Minneapolis teachers retirement fund
56.11 association member in August 1972; and
56.12 (4) entered into a job sharing arrangement with another
56.13 Minneapolis teachers retirement fund association member for the
56.14 2001-2002 school year but failed to enter into a qualified
56.15 part-time teacher agreement for that school year due to employer
56.16 error.
56.17 (b) A person described in paragraph (a) is authorized to
56.18 receive full-time salary and service credit in the Minneapolis
56.19 teachers retirement fund association basic program for service
56.20 under Minnesota Statutes, section 354A.094, for the 2001-2002
56.21 school year, if all conditions required by this section are met.
56.22 (c) To receive the full-time equivalent service and salary
56.23 credit for the 2001-2002 school year provided by this section,
56.24 an eligible individual described in paragraph (a) must pay the
56.25 applicable employee contribution under Minnesota Statutes,
56.26 section 354A.12, subdivision 1, on the difference between the
56.27 amount of the person's compensation from which employee
56.28 contributions were actually deducted and the amount of the
56.29 person's full-time equivalent salary under Minnesota Statutes,
56.30 section 354A.094, subdivision 4.
56.31 (d) If payment is made under paragraph (c), following
56.32 notification by the Minneapolis teachers retirement fund
56.33 association, special school district No. 1, Minneapolis, may
56.34 make payment under Minnesota Statutes, section 356.55 or
56.35 356.551, whichever is applicable, reflecting the increased
56.36 annuity value that would occur if the eligible individual were
57.1 included in the qualified part-time teacher program under
57.2 Minnesota Statutes, section 354A.094, during the 2001-2002
57.3 school year, after deducting amounts paid under paragraph (c).
57.4 If special school district No. 1, Minneapolis, does not pay the
57.5 balance within 30 days of notification by the executive director
57.6 of the Minneapolis teachers retirement fund association of the
57.7 payment of the member contribution payment by the eligible
57.8 person under paragraph (c), the executive director shall notify
57.9 the commissioner of finance of that fact and the commissioner
57.10 shall deduct from any state aid payable to the school district
57.11 that amount, plus interest on that amount of 1.5 percent per
57.12 month for each month or portion of a month that has elapsed from
57.13 the effective date of this section.
57.14 (e) Payments under this section must be made in a lump sum
57.15 to the Minneapolis teachers retirement fund association.
57.16 Payment under paragraph (c) must occur on or before June 30,
57.17 2003, or the effective date of retirement, whichever is
57.18 earlier. Payment by the employer under paragraph (d) must be
57.19 made within 30 days following payment by the eligible employee.
57.20 (f) A person described in paragraph (a) and the employer
57.21 must execute a qualified part-time teacher agreement and
57.22 transmit it to the Minneapolis teachers retirement fund
57.23 association on or before June 15, 2003.
57.24 (g) The eligible person must provide any relevant
57.25 documentation that the Minneapolis teachers retirement fund
57.26 association may request.
57.27 Sec. 7. DULUTH TEACHERS RETIREMENT FUND ASSOCIATION;
57.28 AUTHORIZATION TO MAKE PAYMENT OF EMPLOYEE AND EMPLOYER
57.29 CONTRIBUTIONS.
57.30 (a) Notwithstanding any provision of law to the contrary,
57.31 an eligible person described in paragraph (b) is authorized to
57.32 pay employee and employer contributions to the Duluth teachers
57.33 retirement fund association for the period described in
57.34 paragraph (c).
57.35 (b) An eligible person is a person who:
57.36 (1) was born on October 13, 1949;
58.1 (2) was initially employed by independent school district
58.2 No. 709, Duluth, on December 4, 1972;
58.3 (3) is a current employee of independent school district
58.4 No. 709, Duluth, and is a current member of the Duluth teachers
58.5 retirement fund association;
58.6 (4) was employed on a part-time basis by independent school
58.7 district No. 709, Duluth, for the 2001-2002 school year; and
58.8 (5) was not notified of the right to pay employee and
58.9 employer contributions to the Duluth teachers retirement fund
58.10 association under Minnesota Statutes, section 354A.094, while
58.11 employed on a part-time basis for the 2001-2002 school year.
58.12 (c) The purchase period is September 4, 2001, to June 7,
58.13 2002.
58.14 (d) The payment amount shall be the product of the
58.15 following:
58.16 (1) the total of the employee and employer contribution
58.17 rates of the Duluth teachers retirement fund association
58.18 prescribed in Minnesota Statutes, section 354A.12; and
58.19 (2) the salary amount equal to the difference between the
58.20 salary the eligible person would have earned from independent
58.21 school district No. 709, Duluth, had the eligible person worked
58.22 on a full-time basis during the 2001-2002 school year and the
58.23 total salary the eligible person actually earned from
58.24 independent school district No. 709, Duluth, during the
58.25 2001-2002 school year.
58.26 (e) Interest is payable on the payment amount in paragraph
58.27 (d) using the preretirement interest rate assumption specified
58.28 in Minnesota Statutes, section 356.215, subdivision 8,
58.29 compounded annually, accruing from June 30, 2002, to the date
58.30 the payment is received in the office of the Duluth teachers
58.31 retirement fund association.
58.32 (f) Credit for the higher salary for the purchase period
58.33 must be granted by the Duluth teachers retirement fund
58.34 association to the eligible person upon receipt of payment of
58.35 the employee and employer contribution amount.
58.36 (g) Notwithstanding Minnesota Statutes, section 354A.094,
59.1 subdivision 4, independent school district No. 709, Duluth, is
59.2 not permitted to pay any portion of the payment amount.
59.3 (h) The authority to make payment of employee and employer
59.4 contributions expires 60 days after enactment or on the date of
59.5 the termination of active service by the eligible person,
59.6 whichever occurs earlier.
59.7 Sec. 8. EFFECTIVE DATE.
59.8 (a) Sections 1, 2, 3, 4, 6, and 7 are effective on the day
59.9 following final enactment.
59.10 (b) Section 5 is effective on the day after the date on
59.11 which the Minneapolis city council and the chief clerical
59.12 officer of the city complete in a timely manner their compliance
59.13 with Minnesota Statutes, section 645.021, subdivisions 2 and 3."
59.14 Delete the title and insert:
59.15 "A bill for an act
59.16 relating to retirement; various retirement plans;
59.17 allowing the Hennepin county administrator to approve
59.18 certain Hennepin county supplemental retirement
59.19 participant requests; providing for an increase in the
59.20 compensation for the executive secretary of the
59.21 Minneapolis firefighters relief association; providing
59.22 an ad hoc post retirement adjustment to Eveleth police
59.23 and fire trust fund retirees and survivors; providing
59.24 for continued retirement coverage for the Red Wing
59.25 learning center staff; allowing city managers to
59.26 revoke certain prior coverage exclusion elections;
59.27 modifying the Minneapolis firefighters relief
59.28 association death refund provision; authorizing a
59.29 coverage election change by certain Bemidji city
59.30 council members; allowing a coverage election deadline
59.31 extension for certain Riverview technical college
59.32 faculty members; providing retroactive coverage under
59.33 the qualified part-time teacher program for certain
59.34 Minneapolis and Duluth teachers; including St. Paul
59.35 port authority employees in PERA-general coverage;
59.36 allowing prior service credit purchases by certain St.
59.37 Paul port authority employees; providing a subsidized
59.38 military service credit purchase for certain
59.39 PERA-general and PERA-P&F members; extending the
59.40 sunset of various service credit purchase provisions
59.41 to 2003; providing an expiration date for a prior
59.42 MTRFA service credit purchase; allowing service credit
59.43 purchases by department of transportation employees
59.44 and city of Minneapolis employees; permitting a
59.45 PERA-general annuitant to apply for a disability
59.46 benefit; authorizing a Minneapolis fire relief
59.47 association survivor benefit for a certain ineligible
59.48 survivor; modifying valuation periods for the
59.49 Minnesota supplemental investment fund; modifying
59.50 population determinations used in calculating fire
59.51 state aid; authorizing the Minnesota state colleges
59.52 and universities system to formulate an early
59.53 retirement incentive program; providing various state
59.54 government executive and legislative branch early
59.55 retirement incentives; providing an ad hoc
59.56 postretirement adjustment for certain pre-1969
60.1 teachers; extending supplemental benefit plan status
60.2 to local plumbers' and pipefitters' union pension
60.3 plans; correcting a mistake in the flexible service
60.4 pension maximum financial requirements for monthly
60.5 benefit volunteer firefighter relief associations;
60.6 providing an additional deferred volunteer firefighter
60.7 service pensioner interest payment option; revising
60.8 the Plymouth volunteer firefighter relief association
60.9 ancillary benefits; creating a volunteer firefighter
60.10 task force to study a statewide volunteer firefighter
60.11 retirement plan; ratifying monthly benefit service
60.12 pension amounts fo the White Bear Lake fire department
60.13 relief association; authorizing a former St. Louis
60.14 Park police officer to purchase service credit covered
60.15 by a local police relief association; authorizing a
60.16 state employee on an extended medical leave to qualify
60.17 for a refund; authorizing purchases of service credit
60.18 for unreported sabbatical leaves; appropriating money;
60.19 amending Minnesota Statutes 2002, sections 11A.17,
60.20 subdivision 2; 69.021, subdivisions 7 and 8; 352.96,
60.21 subdivision 2; 353.01, subdivisions 2d, 6, and 16a;
60.22 353.028, subdivision 2; 353D.01, subdivision 2;
60.23 353D.02, by adding a subdivision; 354.55, by adding a
60.24 subdivision; 356.24, subdivision 1; 356.55,
60.25 subdivision 7; 383B.49; 383B.493; 423C.03, subdivision
60.26 3; and 423C.08; 424A.02, subdivisions 3 and 7; Laws
60.27 1978, chapter 685, sections 1, as amended, 2, 3, and
60.28 6; proposing coding for new law in Minnesota Statutes,
60.29 chapter 136F; and Laws 1999, chapter 222, article 16,
60.30 section 16, as amended; Laws 2000, chapter 461,
60.31 articles 4, section 4; 12, section 20, as amended, and
60.32 19 section 6; and Laws 2001, first special session,
60.33 chapter 10, article 6, section 21, as amended;
60.34 repealing Minnesota Statutes, sections 354.541; and
60.35 354A.109."