TO:

Representative Steve Smith

FROM:

Lawrence A. Martin, Executive Director

RE:

Potential Work Plan for Suggested Commission Subcommittee to Review Proposed Administrative Retirement Legislation

DATE:

July 3, 2003

Introduction

This memorandum is in response to your recent request for the preparation of a potential work plan for the suggested Commission Subcommittee to review the proposed administrative retirement legislation remaining from the 2003 Legislative Session.

Remaining Proposed Administrative Retirement Legislation

Six administrative retirement bills remain from the 2003 Legislative Session. The proposed administrative retirement bills suggested for referral for subcommittee review are:

Potential Work Plan

  1. Approach. Because the various retirement administrative bills remaining from the 2003 Legislative Session cover disparate provisions of retirement law and because there is some topical overlap in the proposed legislation, the Commission staff recommends that the administrative bills be considered by the subcommittee in its component parts, based on their substantive area of change, rather than as individual bills.

  2. Duration of Subcommittee Consideration. The Commission staff believes that the subcommittee can complete its consideration of the proposed retirement administrative legislation over three meetings. The Commission staff believes that the subcommittee should recommend or reject proposed administrative provisions on a provision-by-provision basis after the subcommittee hears the presentation on the provision and considers any Commission staff materials and other relevant information.

  3. Proposed Work Plan. The Commission staff recommends that the subcommittee organize its work as follows:

     

    4. Subcommittee Hearing #1

    Membership Inclusions:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 5, Section 1
    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Sections 8 and 11

    Membership Exclusions and Restrictions:

    H.F. 1086 (Smith); S.F. 806 (Betzold), Sections 2, 4, and 5
    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 8, Section 4
    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Sections 1 and 7

    Plan Coverage Elections:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 8, Section 2

    Covered Salary Definition and Limits

    H.F. 890 (Smith); S.F. 676 (Betzold), Section 3
    H.F. 1086 (Smith); S.F. 806 (Betzold), Sections 6 and 7
    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 2, Sections 2, 4 and 5
    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Section 2

    Allowable Service Credit:

    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Section 4

    Prior Military Service Credit Purchase:

    H.F. 1086 (Smith); S.F. 806 (Betzold), Sections 3 and 5

    Special Service Credit Purchase:

    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Section 5

    Leave Provisions:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 1, Section 2
    H.F. 1086 (Smith); S.F. 806 (Betzold), Sections 2 and 4

    Contribution Rates:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 8, Section 3
    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Section 9

    Employer Reporting to Plan:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 1, Sections 8 and 9
    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Section 6

    Retirement Information Transmitted:

    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Section 3

    Qualified Part-Time Teacher Requirements:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 2, Section 5

     

    Subcommittee Hearing #2

    Retirement Annuity Accrual Dates:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 1, Section 3

    Retirement Annuity Portability:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 1, Sections 1 and 2

    Reemployed Annuitant Limits:

    H.F. 890 (Smith); S.F. 676 (Betzold), Sections 11 and 12

    Early Retirement Eligibility:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 4, Sections 1 and 2

    Early Retirement Reduction:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 4, Section 3

    Disability Definitions:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 3, Sections 2, 3,
    and 4, Subdivisions 1 and 2

    Disability Evidence:

    H.F. 871 (Smith); S.F. 844 (Higgins), Sections 1-6
    H.F. 890 (Smith); S.F. 676 (Betzold), Sections 6, 8 and 19
    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 3, Section 4, Subd. 4

    Disability Benefit Amount:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 3, Section 6

    Disability Benefit Recomputed as Retirement Annuity:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 3, Section 5

    Coordination of Disability Benefits with Workers Comp:

    H.F. 890 (Smith); S.F. 676 (Betzold), Section 7

    Disability Temporary Employment:

    H.F. 890 (Smith); S.F. 676 (Betzold), Section 9

    Erroneous Deductions:

    H.F. 1086 (Smith); S.F. 806 (Betzold), Section 1

    Retirement Fund Transfers:

    H.F. 1474 (Erickson); S.F. 1420 (Pogemiller), Section 10

    Internal Revenue Compliance:

    H.F. 1086 (Smith); S.F. 806 (Betzold), Section 8

     

    Subcommittee Hearing #3

    Dependent Child Definition:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 2, Sections 1 and 2
    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 2, Sections 1 and 3

    Designated Beneficiary Definition:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 1, Section 1

    Dependent Child Benefit Entitlement:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 1, Section 4

    Survivor Benefit Applicability:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 1, Section 6
    H.F. 1086 (Smith); S.F. 806 (Betzold), Sections 1 and 3

    Surviving Spouse Benefit:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 1, Section 5

    Survivor Benefit Coverage
    and Amounts:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 7, Sections 2-10

    Death While Eligible
    Survivor Coverage:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 2, Section 3

    Term Certain Survivor Benefits:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 7, Section 1

    Beneficiary Survivor Coverage:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 2, Section 4

    Terminated Member Refunds:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 6, Sections 1 and 7;
    Article 8, Section 1

    Death Refunds:

    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 6, Sections 2, 3, 4, 5, 6, 7, 8, and 10

    Refund Repayments:

    H.F. 519 (Smith); S.F. 807 (Betzold), Article 2, Sections 6 and 10
    H.F. 1430 (Smith); S.F. 1460 (Betzold), Article 6, Section 9

  4. Commission Staff Support. In assisting the potential subcommittee in processing the proposed retirement administrative legislation, the Commission staff plans to prepare a document, in the form of a "delete everything" amendment, containing the applicable provisions from the retirement administrative proposed legislation related to the topical areas scheduled for review during that subcommittee hearing. The Commission staff will also prepare an issue memorandum providing background information on the applicable topics and raising policy issues with the relevant proposed changes and will include Commission staff-prepared amendments providing alternatives, clarifications, or augmentations.