LCPR03-167
1.1 ............... moves to amend the delete-everything
1.2 amendment LCPR03-143, as follows:
1.3 Page 12, after line 4, insert:
1.4 "Sec. 10. APPLICATION.
1.5 Unless otherwise specified, sections 10 to 18 apply to
1.6 governmental subdivisions as specified in Minnesota Statutes,
1.7 section 353.01, subdivision 6, and public employees providing
1.8 service to the applicable employer and covered by the public
1.9 employees retirement association general plan or police and fire
1.10 plan under Minnesota Statutes, chapter 353, or the public
1.11 employees retirement association local government correctional
1.12 service retirement plan under Minnesota Statutes, chapter 353E.
1.13 Sec. 11. EMPLOYEE EXCLUSION.
1.14 Sections 10 to 18 do not apply to any employee who provides
1.15 service to more than one governmental subdivision, or who earns
1.16 service credit during the time period covered by this act in any
1.17 Minnesota public employee plan other than a volunteer fire plan.
1.18 Sec. 12. PHASED RETIREMENT.
1.19 (a) This section applies to a public employee who:
1.20 (1) on the effective date of this section is regularly
1.21 scheduled to work 1,040 or more hours a year in a position
1.22 covered by an applicable retirement plan;
1.23 (2) enters into an agreement with the governmental
1.24 subdivision to work a reduced schedule that is both:
1.25 (i) a reduction of at least 25 percent from the number of
1.26 regularly scheduled work hours; and
1.27 (ii) 1,040 hours or less in the covered position; and
1.28 (3) at the time of entering into the agreement under clause
1.29 (2), meets the age and service requirements necessary to receive
1.30 a retirement benefit from the applicable plan.
1.31 (b) Notwithstanding any law to the contrary, for service
1.32 under an agreement entered into under paragraph (a), an employee
1.33 agrees to terminate public employment meeting requirements of
1.34 Minnesota Statutes, section 353.01, subdivision 11a, except that
1.35 the minimum 30-day break-in-service requirement under that
1.36 subdivision shall not apply, and agrees to reemployment with the
2.1 applicable governmental subdivision under terms and conditions
2.2 specified in this section. If an eligible public employee
2.3 commences receipt of an annuity from a plan specified in
2.4 paragraph (a), the provisions of Minnesota Statutes, section
2.5 353.37, governing annuities of reemployed annuitants shall not
2.6 apply for the duration of the agreement.
2.7 (c) The number of hours worked, the work schedule, and the
2.8 duration of the phased retirement employment must be mutually
2.9 agreed to by the employee and the governmental subdivision. The
2.10 governmental subdivision may not require a person to waive any
2.11 rights under a collective bargaining agreement as a condition of
2.12 participation in this section. The governmental subdivision has
2.13 sole discretion to determine if and the extent to which phased
2.14 retirement under this section is available to an employee.
2.15 (d) Notwithstanding any law to the contrary, a person may
2.16 not earn service credit in the public employees retirement
2.17 association for employment covered under this section, and
2.18 employer contributions and payroll deductions for the retirement
2.19 fund must not be made based on earnings of a person working
2.20 under this section. No change shall be made to a monthly
2.21 annuity or retirement allowance based on employment under this
2.22 section.
2.23 (e) A person who works under this section and meets the
2.24 definition of public employee under Minnesota Statutes, section
2.25 179A.03, subdivision 14, is a member of the appropriate
2.26 bargaining unit, is covered by the appropriate collective
2.27 bargaining contract or personnel policy, and is eligible for
2.28 health care coverage as provided in the collective bargaining
2.29 contract or personnel policy.
2.30 (f) An agreement under this section may apply only to work
2.31 through June 30, 2005.
2.32 Sec. 13. VOLUNTARY HOUR REDUCTION PLAN.
2.33 (a) This section applies to a public employee who:
2.34 (1) on the effective date of this section is regularly
2.35 scheduled to work 1,040 or more hours a year in a position
2.36 covered by a pension plan administered by the public employees
3.1 retirement association; and
3.2 (2) enters into an agreement with a governmental
3.3 subdivision to work a reduced schedule of 1,040 or less hours in
3.4 the covered position.
3.5 (b) Notwithstanding any law to the contrary, for service
3.6 under an agreement entered into under paragraph (a),
3.7 contributions may be made to the applicable plan of the public
3.8 employees retirement association as if the employee had not
3.9 reduced hours. The employee must pay the employee contributions
3.10 and the employer must pay employer and additional employer
3.11 contributions necessary to bring the service credit and salary
3.12 up to the level prior to the voluntary reduction in hours.
3.13 Contributions must be made in a time and manner prescribed by
3.14 the executive director of the public employees retirement
3.15 association.
3.16 (c) The number of hours worked, the work schedule, and the
3.17 duration of the voluntary hour reduction must be mutually agreed
3.18 to by the employee and the governmental subdivision. The
3.19 governmental subdivision may not require a person to waive any
3.20 rights under a collective bargaining agreement as a condition of
3.21 participation under this section. The governmental subdivision
3.22 has sole discretion to determine if and the extent to which
3.23 voluntary hour reduction under this section is available to an
3.24 employee.
3.25 (d) A person who works under this section and meets the
3.26 definition of public employee under Minnesota Statutes, section
3.27 179A.03, subdivision 14, is a member of an appropriate
3.28 bargaining unit, is covered by an appropriate collective
3.29 bargaining contract or personnel policy, and is eligible for
3.30 health care coverage as provided in a collective bargaining
3.31 contract or personnel policy.
3.32 (e) An agreement under this section may apply only to work
3.33 through June 30, 2005.
3.34 Sec. 14. VOLUNTARY UNPAID LEAVE OF ABSENCE.
3.35 (a) Governmental subdivisions may allow employees to take
3.36 unpaid leaves of absence between June 1, 2003, and June 30,
4.1 2005. Each governmental subdivision approving a leave shall
4.2 allow the employee to continue accruing vacation and sick leave,
4.3 be eligible for paid holidays and insurance benefits, accrue
4.4 seniority, and accrue service credit and credited salary in the
4.5 public employees retirement association as if the employee had
4.6 actually been employed during the time of leave. If the leave
4.7 of absence is for one full pay period or longer, any holiday pay
4.8 shall be included in the first payroll warrant after return from
4.9 the leave of absence. The governmental subdivision shall
4.10 attempt to grant requests for the unpaid leaves of absence
4.11 consistent with the need to continue efficient operation of the
4.12 governmental subdivision. However, each governmental
4.13 subdivision shall retain discretion to grant or refuse to grant
4.14 requests for leaves of absence and to schedule and cancel
4.15 leaves, subject to the applicable provisions of collective
4.16 bargaining agreements and personnel policy.
4.17 (b) To receive eligible service credit, the member shall
4.18 pay an amount equal to the applicable employee contribution
4.19 rates. If an employee pays the employee contribution for the
4.20 period of the leave under this section, the governmental
4.21 subdivision must pay the employer contribution and the
4.22 additional employer contribution. The governmental subdivision
4.23 may, at its discretion, pay employee, employer, and additional
4.24 employer contributions to the public employees retirement
4.25 association for the period of leave under this section.
4.26 Contributions must be made in a time and manner prescribed by
4.27 the executive director of the public employees retirement
4.28 association.
4.29 Sec. 15. DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.
4.30 Before agreeing to an option under sections 10 to 18, a
4.31 governmental subdivision must designate the job classifications
4.32 or positions within job classifications that qualify for each
4.33 option. The governmental subdivision may modify this
4.34 designation at any time. Designation of positions eligible for
4.35 the options and participation of individual employees under this
4.36 act are at the sole discretion of the governmental subdivision.
5.1 Implementation of this act by the employer is not an unfair
5.2 labor practice under Minnesota Statutes, chapter 179A, or an
5.3 unfair discriminatory practice under Minnesota Statutes, chapter
5.4 363.
5.5 Sec. 16. PROGRAM APPLICATION REQUIREMENTS.
5.6 (a) No agreement between an eligible public employee and a
5.7 governmental subdivision under sections 10 to 18 are effective
5.8 unless the employee acknowledges acceptance of the terms of the
5.9 agreement in writing on a form prescribed by the public
5.10 employees retirement association executive director.
5.11 (b) A copy of the signed agreement must be transmitted to
5.12 the public employees retirement association executive director
5.13 within 30 days after the agreement is executed.
5.14 Sec. 17. RELATIONSHIP OF SECTIONS.
5.15 (a) An employee covered by a phased retirement agreement
5.16 under section 1 may not be covered by the voluntary hour
5.17 reduction provisions of section 2 or by a voluntary unpaid leave
5.18 of absence agreement under section 3 during the same time period
5.19 or any later time period.
5.20 (b) An employee covered by the voluntary hour reduction
5.21 provisions of section 2:
5.22 (1) may not be covered by a phased retirement agreement
5.23 under section 1 during the same time period, but may be covered
5.24 by a phased retirement agreement under section 1 during a later
5.25 time period; and
5.26 (2) may be covered by the voluntary leave of absence
5.27 provision of section 3 during an earlier or later time period.
5.28 Sec. 18. GOVERNMENTAL SUBDIVISION LIMITATION.
5.29 Notwithstanding Minnesota Statutes, section 353.01,
5.30 subdivision 6, paragraph (b), to the contrary, for purposes of
5.31 sections 19 to 18 the public employees retirement association is
5.32 not a governmental subdivision.
5.33 Sec. 19. TEACHERS RETIREMENT ASSOCIATION; RULE OF 85.
5.34 Notwithstanding any other law to the contrary, a member of
5.35 the teachers retirement association as defined in Minnesota
5.36 Statutes, section 354.05, subdivision 5, whose attained age plus
6.1 credited allowable service totals 85 years is entitled, upon
6.2 application, to a retirement annuity in an amount equal to the
6.3 normal annuity provided in Minnesota Statutes, section 354.44,
6.4 subdivision 6, clause (2), without any reduction by reason of
6.5 early retirement."
6.6 Page 12, after line 9, insert:
6.7 "(c) Sections 10 to 18 are effective on the day following
6.8 final enactment.
6.9 (d) Section 19 is effective on July 1, 2003, and expires on
6.10 July 15, 2003."
6.11 Page 20, after line 10, insert:
6.12 "Section 1. Minnesota Statutes 2002, section 122A.46,
6.13 subdivision 9, is amended to read:
6.14 Subd. 9. BENEFITS. A teacher on an extended leave of
6.15 absence shall receive all of the health, accident, medical,
6.16 surgical and hospitalization insurance or benefits, for both the
6.17 teacher and the teacher's dependents, for which the teacher
6.18 would otherwise be eligible if not on an extended leave. A
6.19 teacher shall receive the coverage if such coverage is available
6.20 from the school district's insurer, if the teacher requests the
6.21 coverage, and if the teacher either (a) reimburses the district
6.22 for the full amount of the premium necessary to maintain the
6.23 coverage within one month following preceding the district's
6.24 payment of the premium, or (b) if the district is wholly or
6.25 partially self-insured, pays the district, according to a
6.26 schedule agreed upon by the teacher and the school board, an
6.27 amount determined by the school board to be the amount that
6.28 would be charged for the coverage chosen by the teacher if the
6.29 school board purchased all health, accident, medical, surgical
6.30 and hospitalization coverage for its teachers from an
6.31 insurer. A school district may enter into an agreement with the
6.32 exclusive bargaining representative of teachers in the district
6.33 where the district agrees to pay all or a portion of the premium
6.34 for such coverage. Any such agreement must include a sunset of
6.35 eligibility to qualify for the payment and must not be a
6.36 continuing part of the collective bargaining agreement.
7.1 EFFECTIVE DATE. This section is effective the day
7.2 following final enactment and applies to agreements in effect or
7.3 entered into after that date.
7.4 Sec. 2. Minnesota Statutes 2002, section 354.094,
7.5 subdivision 1, is amended to read:
7.6 Subdivision 1. SERVICE CREDIT CONTRIBUTIONS. Upon
7.7 granting any extended leave of absence under section 122A.46 or
7.8 136F.43, the employing unit granting the leave must certify the
7.9 leave to the association on a form specified by the executive
7.10 director. A member granted an extended leave of absence under
7.11 section 122A.46 or 136F.43 may pay employee contributions and
7.12 receive allowable service credit toward annuities and other
7.13 benefits under this chapter, for each year of the leave,
7.14 provided that the member and the employing board make the
7.15 required employer contribution in any proportion they may agree
7.16 upon, during the period of the leave. The employer may enter
7.17 into an agreement with the exclusive bargaining representative
7.18 of teachers in the district under which all or a portion of the
7.19 employee's contribution is paid by the employer. Any such
7.20 agreement must include a sunset of eligibility to qualify for
7.21 the payment and must not be a continuing part of the collective
7.22 bargaining agreement. The leave period must not exceed five
7.23 years. A member may not receive more than five years of
7.24 allowable service credit under this section. The employee and
7.25 employer contributions must be based upon the rates of
7.26 contribution prescribed by section 354.42 for the salary
7.27 received during the year immediately preceding the extended
7.28 leave. Payments for the years for which a member is receiving
7.29 service credit while on extended leave must be made on or before
7.30 the later of June 30 of each fiscal year for which service
7.31 credit is received or within 30 days after first notification of
7.32 the amount due, if requested by the member, is given by the
7.33 association. No payment is permitted after the following
7.34 September 30. Payments received after June 30 must include
7.35 interest at an annual rate of 8.5 percent from June 30 through
7.36 the end of the month in which payment is received.
8.1 Notwithstanding the provisions of any agreements to the
8.2 contrary, employee and employer contributions may not be made to
8.3 receive allowable service credit if the member does not have
8.4 full reinstatement rights as provided in section 122A.46 or
8.5 136F.43, both during and at the end of the extended leave.
8.6 EFFECTIVE DATE. This section is effective the day
8.7 following final enactment and applies to agreements in effect or
8.8 entered into after that date."
8.9 Page 29, after line 7, insert:
8.10 "ARTICLE 9
8.11 MISCELLANEOUS PROVISIONS
8.12 Section 1. ACTUARIAL STUDY OF COSTS TO RESTRUCTURE
8.13 TEACHER PLANS.
8.14 Subdivision 1. STUDY MANDATED. The actuary retained by
8.15 the legislative commission on pensions and retirement shall
8.16 prepare an additional actuarial valuation report, using the
8.17 results of the 2003 actuarial valuation reports prepared under
8.18 Minnesota Statutes, section 356.215, that considers the
8.19 feasibility of restructuring the Minnesota teachers retirement
8.20 association, the Minneapolis teachers retirement fund
8.21 association, the St. Paul teachers retirement fund association,
8.22 and the Duluth teachers retirement plan and fund association
8.23 into a new restructured fund.
8.24 Subd. 2. CONTENTS OF STUDY. The actuarial valuation
8.25 report must be based on the proposals put forth in the report
8.26 mandated by the legislature in Laws 2001, First Special Session
8.27 chapter 10, article 11, section 20, and filed February 15, 2002,
8.28 including changes to the postretirement adjustment, benefits,
8.29 and restructuring administrative costs and including asset
8.30 transfers.
8.31 Subd. 3. INFORMATION PROVIDED. The executive director of
8.32 the teachers retirement association, the executive secretary of
8.33 the Duluth teachers retirement fund association, the executive
8.34 director of the St. Paul teachers retirement fund association,
8.35 and the executive director of the Minneapolis teachers
8.36 retirement fund association must consult with the task force
9.1 established under laws 2001, first special session, chapter 10,
9.2 article 11, section 20 and must provide the commission-retained
9.3 actuary with all necessary information requested for the
9.4 preparation of this report.
9.5 Subd. 4. COSTS. The cost of the actuarial valuation
9.6 report mandated in this section will be paid by the pension
9.7 funds named in this legislation. The cost must be allocated
9.8 equally between the four pension funds. The executive director
9.9 of the Minneapolis teachers retirement fund association shall
9.10 serve as the fiscal agent for this study, shall pay its cost,
9.11 and shall be reimbursed by the other three retirement funds for
9.12 their appropriate share.
9.13 Subd. 5. FILING DATE. The report must be filed by
9.14 January 15, 2004, with the chair of the legislative commission
9.15 on pensions and retirement, the chair of the senate committee on
9.16 state and local government operations, and the chair of the
9.17 house committee on government operations and veterans affairs
9.18 policy."
9.19 Page 55, after line 35, insert:
9.20 "Sec. 6. SURVIVOR BENEFITS.
9.21 Notwithstanding any provision of Minnesota Statutes,
9.22 section 353.657, subdivision 1, requiring a specified period of
9.23 marriage to obtain survivor benefits, the surviving spouse of a
9.24 firefighter who was born on March 11, 1969, and who died in an
9.25 accident on February 6, 2000, is entitled to survivor benefits
9.26 provided in Minnesota Statutes, section 353.657."
9.27 Page 59, after line 13, insert:
9.28 "(c) Section 6 is effective the day following final
9.29 enactment and applies retroactively to the surviving spouse of a
9.30 person who died on or after February 1, 2000."
9.31 Renumber the articles and sections in sequence
9.32 Correct internal cross-references
9.33 Amend the title accordingly