LCPR03-220
1.1 M ............... moves to amend H.F. No. ....; S.F. No.
1.2 ...., as follows:
1.3 Delete everything after the enacting clause and insert:
1.4 "ARTICLE 1
1.5 PLAN MEMBERSHIP INCLUSIONS
1.6 Section 1. Minnesota Statutes 2002, section 352.01,
1.7 subdivision 2b, is amended to read:
1.8 Subd. 2b. EXCLUDED EMPLOYEES. "State employee" does not
1.9 include:
1.10 (1) students employed by the University of Minnesota, or
1.11 the state colleges and universities, unless approved for
1.12 coverage by the board of regents of the University of Minnesota
1.13 or the board of trustees of the Minnesota state colleges and
1.14 universities, as the case may be whichever is applicable;
1.15 (2) employees who are eligible for membership in the state
1.16 teachers retirement association, except employees of the
1.17 department of children, families, and learning who have chosen
1.18 or may choose to be covered by the general state employees
1.19 retirement plan of the Minnesota state retirement system instead
1.20 of the teachers retirement association;
1.21 (3) employees of the University of Minnesota who are
1.22 excluded from coverage by action of the board of regents;
1.23 (4) officers and enlisted personnel in the national guard
1.24 and the naval militia who are assigned to permanent peacetime
1.25 duty and who under federal law are or are required to be members
1.26 of a federal retirement system;
1.27 (5) election officers;
1.28 (6) persons who are engaged in public work for the state
1.29 but who are employed by contractors when the performance of the
1.30 contract is authorized by the legislature or other competent
1.31 authority;
1.32 (7) officers and employees of the senate, or of the house
1.33 of representatives, or of a legislative committee or commission
1.34 who are temporarily employed;
1.35 (8) receivers, jurors, notaries public, and court employees
1.36 who are not in the judicial branch as defined in section 43A.02,
2.1 subdivision 25, except referees and adjusters employed by the
2.2 department of labor and industry;
2.3 (9) patient and inmate help in state charitable, penal, and
2.4 correctional institutions including the Minnesota veterans home;
2.5 (10) persons who are employed for professional services
2.6 where the service is incidental to their regular professional
2.7 duties and whose compensation is paid on a per diem basis;
2.8 (11) employees of the Sibley House Association;
2.9 (12) the members of any state board or commission who serve
2.10 the state intermittently and are paid on a per diem basis; the
2.11 secretary, secretary-treasurer, and treasurer of those boards if
2.12 their compensation is $5,000 or less per year, or, if they are
2.13 legally prohibited from serving more than three years; and the
2.14 board of managers of the state agricultural society and its
2.15 treasurer unless the treasurer is also its full-time secretary;
2.16 (13) state troopers;
2.17 (14) temporary employees of the Minnesota state fair who
2.18 are employed on or after July 1 for a period not to extend
2.19 beyond October 15 of that year; and persons who are employed at
2.20 any time by the state fair administration for special events
2.21 held on the fairgrounds;
2.22 (15) emergency employees who are in the classified service;
2.23 except that if an emergency employee, within the same pay
2.24 period, becomes a provisional or probationary employee on other
2.25 than a temporary basis, the employee shall be considered a
2.26 "state employee" retroactively to the beginning of the pay
2.27 period;
2.28 (16) persons who are described in section 352B.01,
2.29 subdivision 2, clauses (2) to (6);
2.30 (17) temporary employees in the classified service, and
2.31 temporary employees in the unclassified service who are
2.32 appointed for a definite period of not more than six months and
2.33 who are employed less than six months in any one-year period;
2.34 (18) trainee employees, except those listed in subdivision
2.35 2a, clause (10);
2.36 (19) persons whose compensation is paid on a fee basis;
3.1 (20) state employees who are employed by the board of
3.2 trustees of the Minnesota state colleges and universities in
3.3 unclassified positions enumerated in section 43A.08, subdivision
3.4 1, clause (9);
3.5 (21) state employees who in any year have credit for 12
3.6 months service as teachers in the public schools of the state
3.7 and as teachers are members of the teachers retirement
3.8 association or a retirement system in St. Paul, Minneapolis, or
3.9 Duluth, except for incidental employment as a state employee not
3.10 covered by one of the teacher retirement associations or
3.11 systems;
3.12 (22) employees of the adjutant general who are employed on
3.13 an unlimited intermittent or temporary basis in the classified
3.14 or unclassified service for the support of army and air national
3.15 guard training facilities;
3.16 (23) chaplains and nuns who are excluded from coverage
3.17 under the federal Old Age, Survivors, Disability, and Health
3.18 Insurance Program for the performance of service as specified in
3.19 United States Code, title 42, section 410(a)(8)(A), as amended,
3.20 if no irrevocable election of coverage has been made under
3.21 section 3121(r) of the Internal Revenue Code of 1986, as amended
3.22 through December 31, 1992;
3.23 (24) examination monitors who are employed by departments,
3.24 agencies, commissions, and boards to conduct examinations
3.25 required by law;
3.26 (25) persons who are appointed to serve as members of
3.27 fact-finding commissions or adjustment panels, arbitrators, or
3.28 labor referees under chapter 179;
3.29 (26) temporary employees who are employed for limited
3.30 periods under any state or federal program for training or
3.31 rehabilitation, including persons who are employed for limited
3.32 periods from areas of economic distress, but not including
3.33 skilled and supervisory personnel and persons having civil
3.34 service status covered by the system;
3.35 (27) full-time students who are employed by the Minnesota
3.36 historical society intermittently during part of the year and
4.1 full-time during the summer months;
4.2 (28) temporary employees who are appointed for not more
4.3 than six months, of the metropolitan council and of any of its
4.4 statutory boards, if the board members are appointed by the
4.5 metropolitan council;
4.6 (29) persons who are employed in positions designated by
4.7 the department of employee relations as student workers;
4.8 (30) members of trades who are employed by the successor to
4.9 the metropolitan waste control commission, who have trade union
4.10 pension plan coverage under a collective bargaining agreement,
4.11 and who are first employed after June 1, 1977;
4.12 (31) persons who are employed in subsidized on-the-job
4.13 training, work experience, or public service employment as
4.14 enrollees under the federal Comprehensive Employment and
4.15 Training Act after March 30, 1978, unless the person has as of
4.16 the later of March 30, 1978, or the date of employment
4.17 sufficient service credit in the retirement system to meet the
4.18 minimum vesting requirements for a deferred annuity, or the
4.19 employer agrees in writing on forms prescribed by the director
4.20 to make the required employer contributions, including any
4.21 employer additional contributions, on account of that person
4.22 from revenue sources other than funds provided under the federal
4.23 Comprehensive Employment and Training Act, or the person agrees
4.24 in writing on forms prescribed by the director to make the
4.25 required employer contribution in addition to the required
4.26 employee contribution;
4.27 (32) off-duty peace officers while employed by the
4.28 metropolitan council;
4.29 (33) persons who are employed as full-time police officers
4.30 by the metropolitan council and as police officers are members
4.31 of the public employees police and fire fund;
4.32 (34) persons who are employed as full-time firefighters by
4.33 the department of military affairs and as firefighters are
4.34 members of the public employees police and fire fund;
4.35 (35) foreign citizens with a work permit of less than three
4.36 years, or an H-1b/JV visa valid for less than three years of
5.1 employment, unless notice of extension is supplied which allows
5.2 them to work for three or more years as of the date the
5.3 extension is granted, in which case they are eligible for
5.4 coverage from the date extended; and
5.5 (36) persons who are employed by the board of trustees of
5.6 the Minnesota state colleges and universities and who elect to
5.7 remain members of the public employees retirement association or
5.8 the Minneapolis employees retirement fund, whichever applies,
5.9 under section 136C.75.
5.10 Sec. 2. Minnesota Statutes 2002, section 354B.20,
5.11 subdivision 6, is amended to read:
5.12 Subd. 6. ELIGIBLE UNCLASSIFIED ADMINISTRATIVE POSITION.
5.13 "Eligible unclassified administrative position" means the
5.14 following:
5.15 (1) the chancellor of the board;
5.16 (2) a president of a state college or university; or
5.17 (3) an excluded administrator employed in a state
5.18 university or college, by the board, or by the higher education
5.19 services office; or
5.20 (4) other managers and professionals in academic and
5.21 academic support programs in the unclassified service employed
5.22 in a state university or college, by the board, or by the higher
5.23 education services office.
5.24 Sec. 3. Minnesota Statutes 2002, section 354C.11,
5.25 subdivision 2, is amended to read:
5.26 Subd. 2. ELIGIBILITY. (a) An individual must participate
5.27 in the supplemental retirement plan if the individual is
5.28 employed by the board of trustees in the unclassified service of
5.29 the state and has completed at least two years with a full-time
5.30 contract of applicable unclassified employment with the board or
5.31 an applicable predecessor board in any of the positions
5.32 specified in paragraph (b).
5.33 (b) Eligible positions or employment classifications are:
5.34 (1) an unclassified administrative position as defined in
5.35 section 354B.20, subdivision 6;
5.36 (2) an employment classification included in one of the
6.1 following collective bargaining units under section 179A.10,
6.2 subdivision 2:
6.3 (i) the state university instructional unit;
6.4 (ii) the state college instructional unit; and
6.5 (iii) the state university administrative unit; or
6.6 (3) an unclassified employee of the board:
6.7 (i) included in the general professional unit or
6.8 supervisory employees unit under section 179A.10, subdivision 2;
6.9 or
6.10 (ii) excluded from those units due to its confidential
6.11 status under section 179A.10, subdivision 1, clause (8).
6.12 Sec. 4. EFFECTIVE DATE.
6.13 Sections 1, 2, and 3 are effective on July 1, 2004.
6.14 ARTICLE 2
6.15 PLAN MEMBERSHIP EXCLUSIONS
6.16 Section 1. Minnesota Statutes 2002, section 353.01,
6.17 subdivision 2b, is amended to read:
6.18 Subd. 2b. EXCLUDED EMPLOYEES. The following public
6.19 employees are not eligible to participate as members of the
6.20 association with retirement coverage by the public employees
6.21 retirement plan, the local government correctional employees
6.22 retirement plan under chapter 353E, or the public employees
6.23 police and fire retirement plan:
6.24 (1) public officers, other than county sheriffs, who are
6.25 elected to a governing body, or persons who are appointed to
6.26 fill a vacancy in an elective office of a governing body, whose
6.27 term of office first commences on or after July 1, 2002, for the
6.28 service to be rendered in that elective position. Elected
6.29 governing body officials who were active members of the
6.30 association's coordinated or basic retirement plans as of June
6.31 30, 2002, continue participation throughout incumbency in office
6.32 until termination of public service occurs as defined in
6.33 subdivision 11a;
6.34 (2) election officers or election judges;
6.35 (3) patient and inmate personnel who perform services for a
6.36 governmental subdivision;
7.1 (4) except as otherwise specified in subdivision 12a,
7.2 employees who are hired for a temporary position as defined
7.3 under subdivision 12a, and employees who resign from a
7.4 nontemporary position and accept a temporary position within 30
7.5 days in the same governmental subdivision.; An employer must not
7.6 apply the definition of temporary position so as to exclude
7.7 employees who are hired to fill positions that are permanent or
7.8 that are for an unspecified period but who are serving a
7.9 probationary period at the start of the employment. If the
7.10 period of employment extends beyond six consecutive months and
7.11 the employee earns more than $425 from one governmental
7.12 subdivision in any calendar month, the department head shall
7.13 report the employee for membership and require employee
7.14 deductions be made on behalf of the employee under section
7.15 353.27, subdivision 4.
7.16 The membership eligibility of an employee who resigns or is
7.17 dismissed from a temporary position and within 30 days accepts
7.18 another temporary position in the same governmental subdivision
7.19 is determined on the total length of employment rather than on
7.20 each separate position. Membership eligibility of an employee
7.21 who holds concurrent temporary and nontemporary positions in one
7.22 governmental subdivision is determined by the length of
7.23 employment and salary of each separate position;
7.24 (5) employees who are employed by reason of work emergency
7.25 caused by fire, flood, storm, or similar disaster;
7.26 (6) employees who by virtue of their employment in one
7.27 governmental subdivision are required by law to be a member of
7.28 and to contribute to any of the plans or funds administered by
7.29 the Minnesota state retirement system, the teachers retirement
7.30 association, the Duluth teachers retirement fund association,
7.31 the Minneapolis teachers retirement association, the St. Paul
7.32 teachers retirement fund association, the Minneapolis employees
7.33 retirement fund, or any police or firefighters relief
7.34 association governed by section 69.77 that has not consolidated
7.35 with the public employees retirement association, or any local
7.36 police or firefighters consolidation account but who have not
8.1 elected the type of benefit coverage provided by the public
8.2 employees police and fire fund under sections 353A.01 to
8.3 353A.10, or any persons covered by section 353.665, subdivision
8.4 4, 5, or 6, who have not elected public employees police and
8.5 fire plan benefit coverage. This clause must not be construed
8.6 to prevent a person from being a member of and contributing to
8.7 the public employees retirement association and also belonging
8.8 to and contributing to another public pension fund for other
8.9 service occurring during the same period of time. A person who
8.10 meets the definition of "public employee" in subdivision 2 by
8.11 virtue of other service occurring during the same period of time
8.12 becomes a member of the association unless contributions are
8.13 made to another public retirement fund on the salary based on
8.14 the other service or to the teachers retirement association by a
8.15 teacher as defined in section 354.05, subdivision 2;
8.16 (7) persons who are members of a religious order and are
8.17 excluded from coverage under the federal Old Age, Survivors,
8.18 Disability, and Health Insurance Program for the performance of
8.19 service as specified in United States Code, title 42, section
8.20 410(a)(8)(A), as amended through January 1, 1987, if no
8.21 irrevocable election of coverage has been made under section
8.22 3121(r) of the Internal Revenue Code of 1954, as amended;
8.23 (8) employees of a governmental subdivision who have not
8.24 reached the age of 23 and are enrolled on a full-time basis to
8.25 attend or are attending classes on a full-time basis at an
8.26 accredited school, college, or university in an undergraduate,
8.27 graduate, or professional-technical program, or a public or
8.28 charter high school;
8.29 (9) resident physicians, medical interns, and pharmacist
8.30 residents and pharmacist interns who are serving in a degree or
8.31 residency program in public hospitals;
8.32 (10) students who are serving in an internship or residency
8.33 program sponsored by an accredited educational institution;
8.34 (11) persons who hold a part-time adult supplementary
8.35 technical college license who render part-time teaching service
8.36 in a technical college;
9.1 (12) except for employees of Hennepin county, foreign
9.2 citizens working for a governmental subdivision with a work
9.3 permit of less than three years, or an H-1b visa valid for less
9.4 than three years of employment. Upon notice to the association
9.5 that the work permit or visa extends beyond the three-year
9.6 period, the foreign citizens are to be reported for membership
9.7 from the date of the extension;
9.8 (13) public hospital employees who elected not to
9.9 participate as members of the association before 1972 and who
9.10 did not elect to participate from July 1, 1988, to October 1,
9.11 1988;
9.12 (14) except as provided in section 353.86, volunteer
9.13 ambulance service personnel, as defined in subdivision 35, but
9.14 persons who serve as volunteer ambulance service personnel may
9.15 still qualify as public employees under subdivision 2 and may be
9.16 members of the public employees retirement association and
9.17 participants in the public employees retirement fund or the
9.18 public employees police and fire fund, whichever applies, on the
9.19 basis of compensation received from public employment service
9.20 other than service as volunteer ambulance service personnel;
9.21 (15) except as provided in section 353.87, volunteer
9.22 firefighters, as defined in subdivision 36, engaging in
9.23 activities undertaken as part of volunteer firefighter duties;
9.24 provided that a person who is a volunteer firefighter may still
9.25 qualify as a public employee under subdivision 2 and may be a
9.26 member of the public employees retirement association and a
9.27 participant in the public employees retirement fund or the
9.28 public employees police and fire fund, whichever applies, on the
9.29 basis of compensation received from public employment activities
9.30 other than those as a volunteer firefighter;
9.31 (16) pipefitters and associated trades personnel employed
9.32 by independent school district No. 625, St. Paul, with coverage
9.33 under a collective bargaining agreement by the pipefitters local
9.34 455 pension plan who were either first employed after May 1,
9.35 1997, or, if first employed before May 2, 1997, elected to be
9.36 excluded under Laws 1997, chapter 241, article 2, section 12;
10.1 (17) electrical workers, plumbers, carpenters, and
10.2 associated trades personnel employed by independent school
10.3 district No. 625, St. Paul, or the city of St. Paul, who have
10.4 retirement coverage under a collective bargaining agreement by
10.5 the electrical workers local 110 pension plan, the united
10.6 association plumbers local 34 pension plan, or the carpenters
10.7 local 87 pension plan who were either first employed after May
10.8 1, 2000, or, if first employed before May 2, 2000, elected to be
10.9 excluded under Laws 2000, chapter 461, article 7, section 5;
10.10 (18) bricklayers, allied craftworkers, cement masons,
10.11 glaziers, glassworkers, painters, allied tradesworkers, and
10.12 plasterers employed by the city of St. Paul or independent
10.13 school district No. 625, St. Paul, with coverage under a
10.14 collective bargaining agreement by the bricklayers and allied
10.15 craftworkers local 1 pension plan, the cement masons local 633
10.16 pension plan, the glaziers and glassworkers local L-1324 pension
10.17 plan, the painters and allied trades local 61 pension plan, or
10.18 the Twin Cities plasterers local 265 pension plan who were
10.19 either first employed after May 1, 2001, or if first employed
10.20 before May 2, 2001, elected to be excluded under Laws 2001,
10.21 First Special Session chapter 10, article 10, section 6;
10.22 (19) plumbers employed by the metropolitan airports
10.23 commission, with coverage under a collective bargaining
10.24 agreement by the plumbers local 34 pension plan, who either were
10.25 first employed after May 1, 2001, or if first employed before
10.26 May 2, 2001, elected to be excluded under Laws 2001, First
10.27 Special Session chapter 10, article 10, section 6;
10.28 (20) employees who are hired after June 30, 2002, to fill
10.29 seasonal positions under subdivision 12b which are limited in
10.30 duration by the employer to 185 consecutive calendar days or
10.31 less in each year of employment with the governmental
10.32 subdivision;
10.33 (21) persons who are provided supported employment or
10.34 work-study positions by a governmental subdivision and who
10.35 participate in an employment or industries program maintained
10.36 for the benefit of these persons where the governmental
11.1 subdivision limits the position's duration to three years or
11.2 less, including persons participating in a federal or state
11.3 subsidized on-the-job training, work experience, senior citizen,
11.4 youth, or unemployment relief program where the training or work
11.5 experience is not provided as a part of, or for, future
11.6 permanent public employment;
11.7 (22) independent contractors and the employees of
11.8 independent contractors; and
11.9 (23) reemployed annuitants of the association during the
11.10 course of that reemployment.
11.11 Sec. 2. Minnesota Statutes 2002, section 354.05,
11.12 subdivision 2, is amended to read:
11.13 Subd. 2. TEACHER. (a) "Teacher" means:
11.14 (1) a person who renders service as a teacher, supervisor,
11.15 principal, superintendent, librarian, nurse, counselor, social
11.16 worker, therapist, or psychologist in a public school of the
11.17 state located outside of the corporate limits of a city of the
11.18 first class, or in any charter school, irrespective of the
11.19 location of the school, or in any charitable, penal, or
11.20 correctional institutions of a governmental subdivision, or who
11.21 is engaged in educational administration in connection with the
11.22 state public school system, but excluding the University of
11.23 Minnesota, whether the position be a public office or an
11.24 employment, not including members or officers of any general
11.25 governing or managing board or body;
11.26 (2) an employee of the teachers retirement association;
11.27 (3) a person who renders teaching service on a part-time
11.28 basis and who also renders other services for a single employing
11.29 unit. A person whose teaching service comprises at least 50
11.30 percent of the combined employment salary is a member of the
11.31 association for all services with the single employing unit. If
11.32 the person's teaching service comprises less than 50 percent of
11.33 the combined employment salary, the executive director must
11.34 determine whether all or none of the combined service is covered
11.35 by the association; or
11.36 (4) a person who is not covered by the plans established
12.1 under chapter 352D, 354A, or 354B and who is employed by the
12.2 board of trustees of the Minnesota state colleges and
12.3 universities system in an unclassified position as:
12.4 (i) a president, vice-president, or dean;
12.5 (ii) a manager or a professional in an academic or an
12.6 academic support program other than specified in item (i);
12.7 (iii) an administrative or a service support faculty
12.8 position; or
12.9 (iv) a teacher or a research assistant.
12.10 (b) "Teacher" does not mean:
12.11 (1) a person who works for a school or institution as an
12.12 independent contractor as defined by the Internal Revenue
12.13 Service;
12.14 (2) a person employed in subsidized on-the-job training,
12.15 work experience or public service employment as an enrollee
12.16 under the federal Comprehensive Employment and Training Act from
12.17 and after March 30, 1978, unless the person has, as of the later
12.18 of March 30, 1978, or the date of employment, sufficient service
12.19 credit in the retirement association to meet the minimum vesting
12.20 requirements for a deferred retirement annuity, or the employer
12.21 agrees in writing on forms prescribed by the executive director
12.22 to make the required employer contributions, including any
12.23 employer additional contributions, on account of that person
12.24 from revenue sources other than funds provided under the federal
12.25 Comprehensive Training and Employment Act, or the person agrees
12.26 in writing on forms prescribed by the executive director to make
12.27 the required employer contribution in addition to the required
12.28 employee contribution;
12.29 (3) a person holding a part-time adult supplementary
12.30 technical college license who renders part-time teaching service
12.31 or a customized trainer as defined by the Minnesota state
12.32 colleges and universities system in a technical college if (i)
12.33 the service is incidental to the regular nonteaching occupation
12.34 of the person; and (ii) the applicable technical college
12.35 employer stipulates annually in advance that the part-time
12.36 teaching service or customized training service will not exceed
13.1 300 hours in a fiscal year and retains the stipulation in its
13.2 records; and (iii) the part-time teaching service or customized
13.3 training service actually does not exceed 300 hours in a fiscal
13.4 year; or
13.5 (4) a person exempt from licensure under section 122A.30.
13.6 Sec. 3. Minnesota Statutes 2002, section 354B.20,
13.7 subdivision 4, is amended to read:
13.8 Subd. 4. COVERED EMPLOYMENT. (a) "Covered employment"
13.9 means employment by a person eligible for coverage by this
13.10 retirement program under section 354B.21 in a faculty position
13.11 or in an eligible unclassified administrative position.
13.12 (b) "Covered employment" does not mean employment specified
13.13 in paragraph (a) by a faculty member employed in a state
13.14 university or a community college the Minnesota state colleges
13.15 and universities system if the person's initial appointment is
13.16 specified as constituting less than 25 percent of a full
13.17 academic year, exclusive of summer session, for the applicable
13.18 institution.
13.19 Sec. 4. REPEALER.
13.20 Minnesota Statutes 2002, section 352D.02, subdivision 5, is
13.21 repealed.
13.22 Sec. 5. EFFECTIVE DATE.
13.23 Sections 1, 2, 3, and 4 are effective on July 1, 2004.
13.24 ARTICLE 3
13.25 PLAN COVERAGE ELECTIONS
13.26 Section 1. Minnesota Statutes 2002, section 352D.02,
13.27 subdivision 3, is amended to read:
13.28 Subd. 3. ELECTION IRREVOCABLE REVISION TO GENERAL PLAN.
13.29 An election to not participate is irrevocable during any period
13.30 of covered employment. An employee credited with employee
13.31 shares in the unclassified program, after acquiring credit for
13.32 ten years of allowable service but prior to and within one month
13.33 following termination of covered employment, may,
13.34 notwithstanding other provisions of this subdivision, elect to
13.35 terminate participation in the unclassified plan and be covered
13.36 by the regular general plan by filing such a written election
14.1 with the executive director. The executive director
14.2 shall thereupon then redeem the employee's total shares and
14.3 shall credit to the employee's account in the regular general
14.4 plan the amount of contributions that would have been so
14.5 credited had the employee been covered by the regular general
14.6 plan during the employee's entire covered employment. The
14.7 balance of money so redeemed and not credited to the employee's
14.8 account shall be transferred to the state contribution reserve
14.9 of the state employees retirement fund, except that (1) the
14.10 employee contribution paid to the unclassified plan must be
14.11 compared to (2) the employee contributions that would have been
14.12 paid to the general plan for the comparable period, if the
14.13 individual had been covered by that plan. If clause (1) is
14.14 greater than clause (2), the difference must be refunded to the
14.15 employee as provided in section 352.22. If clause (2) is
14.16 greater than clause (1), the difference must be paid by the
14.17 employee within six months of electing general plan coverage or
14.18 before the effective date of the annuity, whichever is sooner.
14.19 Sec. 2. EFFECTIVE DATE.
14.20 Section 1 is effective on July 1, 2004.
14.21 ARTICLE 4
14.22 COVERED SALARY DEFINITION AND LIMITS
14.23 Section 1. Minnesota Statutes 2002, section 352.01,
14.24 subdivision 13, is amended to read:
14.25 Subd. 13. SALARY. (a) "Salary" means wages, or other
14.26 periodic compensation, paid to an employee before deductions for
14.27 deferred compensation, supplemental retirement plans, or other
14.28 voluntary salary reduction programs.
14.29 (b) Salary does not include:
14.30 (1) lump sum sick leave payments,;
14.31 (2) severance payments,;
14.32 (3) lump sum annual leave payments and overtime payments
14.33 made at the time of separation from state service,;
14.34 (4) payments in lieu of any employer-paid group insurance
14.35 coverage, including the difference between single and family
14.36 rates that may be paid to an employee with single coverage, and;
15.1 (5) payments made as an employer-paid fringe benefit,;
15.2 (6) workers' compensation payments,;
15.3 (7) employer contributions to a deferred compensation or
15.4 tax sheltered annuity program,; and
15.5 (8) amounts contributed under a benevolent vacation and
15.6 sick leave donation program are not salary.
15.7 (c) Amounts provided to an employee by the employer through
15.8 a grievance proceeding or a legal settlement are salary only if
15.9 the settlement is reviewed by the executive director and the
15.10 amounts are determined by the executive director to be
15.11 consistent with paragraph (a).
15.12 Sec. 2. Minnesota Statutes 2002, section 352B.01,
15.13 subdivision 11, is amended to read:
15.14 Subd. 11. AVERAGE MONTHLY SALARY. "Average monthly
15.15 salary" means the average of the highest monthly salaries for
15.16 five years of service as a member upon which contributions were
15.17 deducted from pay under section 352B.02, or upon which
15.18 appropriate contributions or payments were made to the fund to
15.19 receive allowable service and salary credit as specified under
15.20 applicable law. Average monthly salary must be based upon all
15.21 allowable service if this service is less than five years. It
15.22 does not include any lump-sum annual leave payments and overtime
15.23 payments made at the time of separation from state service, any
15.24 amounts of severance pay, or any reduced salary paid during the
15.25 period the person is entitled to workers' compensation benefit
15.26 payments for temporary disability. A member on leave of absence
15.27 receiving temporary workers' compensation payments and a reduced
15.28 salary or no salary from the employer who is entitled to
15.29 allowable service credit for the period of absence may make
15.30 payment to the fund for the difference between salary received,
15.31 if any, and the salary the member would normally receive if not
15.32 on leave of absence during the period. The member shall pay an
15.33 amount equal to the member and employer contribution rate under
15.