1.1 ............... 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 MEMBERSHIP ISSUES
1.6 Section 1. Minnesota Statutes 2002, section 353.01,
1.7 subdivision 2b, is amended to read:
1.8 Subd. 2b. EXCLUDED EMPLOYEES. The following public
1.9 employees are not eligible to participate as members of the
1.10 association with retirement coverage by the public employees
1.11 retirement plan, the local government correctional employees
1.12 retirement plan under chapter 353E, or the public employees
1.13 police and fire retirement plan:
1.14 (1) public officers, other than county sheriffs, who are
1.15 elected to a governing body, or persons who are appointed to
1.16 fill a vacancy in an elective office of a governing body, whose
1.17 term of office first commences on or after July 1, 2002, for the
1.18 service to be rendered in that elective position. Elected
1.19 governing body officials who were active members of the
1.20 association's coordinated or basic retirement plans as of June
1.21 30, 2002, continue participation throughout incumbency in office
1.22 until termination of public service occurs as defined in
1.23 subdivision 11a;
1.24 (2) election officers or election judges;
1.25 (3) patient and inmate personnel who perform services for a
1.26 governmental subdivision;
1.27 (4) except as otherwise specified in subdivision 12a,
1.28 employees who are hired for a temporary position as defined
1.29 under subdivision 12a, and employees who resign from a
1.30 nontemporary position and accept a temporary position within 30
1.31 days in the same governmental subdivision.; An employer must not
1.32 apply the definition of temporary position so as to exclude
1.33 employees who are hired to fill positions that are permanent or
1.34 that are for an unspecified period but who are serving a
1.35 probationary period at the start of the employment. If the
1.36 period of employment extends beyond six consecutive months and
2.1 the employee earns more than $425 from one governmental
2.2 subdivision in any calendar month, the department head shall
2.3 report the employee for membership and require employee
2.4 deductions be made on behalf of the employee under section
2.5 353.27, subdivision 4.
2.6 The membership eligibility of an employee who resigns or is
2.7 dismissed from a temporary position and within 30 days accepts
2.8 another temporary position in the same governmental subdivision
2.9 is determined on the total length of employment rather than on
2.10 each separate position. Membership eligibility of an employee
2.11 who holds concurrent temporary and nontemporary positions in one
2.12 governmental subdivision is determined by the length of
2.13 employment and salary of each separate position;
2.14 (5) employees who are employed by reason of work emergency
2.15 caused by fire, flood, storm, or similar disaster;
2.16 (6) employees who by virtue of their employment in one
2.17 governmental subdivision are required by law to be a member of
2.18 and to contribute to any of the plans or funds administered by
2.19 the Minnesota state retirement system, the teachers retirement
2.20 association, the Duluth teachers retirement fund association,
2.21 the Minneapolis teachers retirement fund association, the St.
2.22 Paul teachers retirement fund association, the Minneapolis
2.23 employees retirement fund, or any police or firefighters relief
2.24 association governed by section 69.77 that has not consolidated
2.25 with the public employees retirement association, or any local
2.26 police or firefighters consolidation account but who have not
2.27 elected the type of benefit coverage provided by the public
2.28 employees police and fire fund under sections 353A.01 to
2.29 353A.10, or any persons covered by section 353.665, subdivision
2.30 4, 5, or 6, who have not elected public employees police and
2.31 fire plan benefit coverage. This clause must not be construed
2.32 to prevent a person from being a member of and contributing to
2.33 the public employees retirement association and also belonging
2.34 to and contributing to another public pension plan or fund for
2.35 other service occurring during the same period of time. A
2.36 person who meets the definition of "public employee" in
3.1 subdivision 2 by virtue of other service occurring during the
3.2 same period of time becomes a member of the association unless
3.3 contributions are made to another public retirement fund on the
3.4 salary based on the other service or to the teachers retirement
3.5 association by a teacher as defined in section 354.05,
3.6 subdivision 2;
3.7 (7) persons who are members of a religious order and are
3.8 excluded from coverage under the federal Old Age, Survivors,
3.9 Disability, and Health Insurance Program for the performance of
3.10 service as specified in United States Code, title 42, section
3.11 410(a)(8)(A), as amended through January 1, 1987, if no
3.12 irrevocable election of coverage has been made under section
3.13 3121(r) of the Internal Revenue Code of 1954, as amended;
3.14 (8) employees of a governmental subdivision who have not
3.15 reached the age of 23 and are enrolled on a full-time basis to
3.16 attend or are attending classes on a full-time basis at an
3.17 accredited school, college, or university in an undergraduate,
3.18 graduate, or professional-technical program, or a public or
3.19 charter high school;
3.20 (9) resident physicians, medical interns, and pharmacist
3.21 residents and pharmacist interns who are serving in a degree or
3.22 residency program in public hospitals;
3.23 (10) students who are serving in an internship or residency
3.24 program sponsored by an accredited educational institution;
3.25 (11) persons who hold a part-time adult supplementary
3.26 technical college license who render part-time teaching service
3.27 in a technical college;
3.28 (12) except for employees of Hennepin county, foreign
3.29 citizens working for a governmental subdivision with a work
3.30 permit of less than three years, or an H-1b visa valid for less
3.31 than three years of employment. Upon notice to the association
3.32 that the work permit or visa extends beyond the three-year
3.33 period, the foreign citizens are to must be reported for
3.34 membership from the date of the extension;
3.35 (13) public hospital employees who elected not to
3.36 participate as members of the association before 1972 and who
4.1 did not elect to participate from July 1, 1988, to October 1,
4.2 1988;
4.3 (14) except as provided in section 353.86, volunteer
4.4 ambulance service personnel, as defined in subdivision 35, but
4.5 persons who serve as volunteer ambulance service personnel may
4.6 still qualify as public employees under subdivision 2 and may be
4.7 members of the public employees retirement association and
4.8 participants in the public employees retirement fund or the
4.9 public employees police and fire fund, whichever applies, on the
4.10 basis of compensation received from public employment service
4.11 other than service as volunteer ambulance service personnel;
4.12 (15) except as provided in section 353.87, volunteer
4.13 firefighters, as defined in subdivision 36, engaging in
4.14 activities undertaken as part of volunteer firefighter duties;
4.15 provided that a person who is a volunteer firefighter may still
4.16 qualify as a public employee under subdivision 2 and may be a
4.17 member of the public employees retirement association and a
4.18 participant in the public employees retirement fund or the
4.19 public employees police and fire fund, whichever applies, on the
4.20 basis of compensation received from public employment activities
4.21 other than those as a volunteer firefighter;
4.22 (16) pipefitters and associated trades personnel employed
4.23 by independent school district No. 625, St. Paul, with coverage
4.24 under a collective bargaining agreement by the pipefitters local
4.25 455 pension plan who were either first employed after May 1,
4.26 1997, or, if first employed before May 2, 1997, elected to be
4.27 excluded under Laws 1997, chapter 241, article 2, section 12;
4.28 (17) electrical workers, plumbers, carpenters, and
4.29 associated trades personnel employed by independent school
4.30 district No. 625, St. Paul, or the city of St. Paul, who have
4.31 retirement coverage under a collective bargaining agreement by
4.32 the electrical workers local 110 pension plan, the united
4.33 association plumbers local 34 pension plan, or the carpenters
4.34 local 87 pension plan who were either first employed after May
4.35 1, 2000, or, if first employed before May 2, 2000, elected to be
4.36 excluded under Laws 2000, chapter 461, article 7, section 5;
5.1 (18) bricklayers, allied craftworkers, cement masons,
5.2 glaziers, glassworkers, painters, allied tradesworkers, and
5.3 plasterers employed by the city of St. Paul or independent
5.4 school district No. 625, St. Paul, with coverage under a
5.5 collective bargaining agreement by the bricklayers and allied
5.6 craftworkers local 1 pension plan, the cement masons local 633
5.7 pension plan, the glaziers and glassworkers local L-1324 pension
5.8 plan, the painters and allied trades local 61 pension plan, or
5.9 the Twin Cities plasterers local 265 pension plan who were
5.10 either first employed after May 1, 2001, or if first employed
5.11 before May 2, 2001, elected to be excluded under Laws 2001,
5.12 First Special Session chapter 10, article 10, section 6;
5.13 (19) plumbers employed by the metropolitan airports
5.14 commission, with coverage under a collective bargaining
5.15 agreement by the plumbers local 34 pension plan, who either were
5.16 first employed after May 1, 2001, or if first employed before
5.17 May 2, 2001, elected to be excluded under Laws 2001, First
5.18 Special Session chapter 10, article 10, section 6;
5.19 (20) employees who are hired after June 30, 2002, to fill
5.20 seasonal positions under subdivision 12b which are limited in
5.21 duration by the employer to 185 consecutive calendar days or
5.22 less in each year of employment with the governmental
5.23 subdivision;
5.24 (21) persons who are provided supported employment or
5.25 work-study positions by a governmental subdivision and who
5.26 participate in an employment or industries program maintained
5.27 for the benefit of these persons where the governmental
5.28 subdivision limits the position's duration to three years or
5.29 less, including persons participating in a federal or state
5.30 subsidized on-the-job training, work experience, senior citizen,
5.31 youth, or unemployment relief program where the training or work
5.32 experience is not provided as a part of, or for, future
5.33 permanent public employment;
5.34 (22) independent contractors and the employees of
5.35 independent contractors; and
5.36 (23) reemployed annuitants of the association during the
6.1 course of that reemployment.
6.2 Sec. 2. Minnesota Statutes 2002, section 353.01,
6.3 subdivision 12a, is amended to read:
6.4 Subd. 12a. TEMPORARY POSITION. (1) (a) "Temporary
6.5 position" means an employment position predetermined by the
6.6 employer at the time of hiring to be a period of six months or
6.7 less. Temporary position also means an employment position
6.8 occupied by a person hired by the employer as a temporary
6.9 replacement who is employed for a predetermined period of six
6.10 months or less.
6.11 (2) (b) "Temporary position" does not mean an employment
6.12 position for a specified or unspecified term in which a person
6.13 serves a probationary period as a requirement for subsequent
6.14 employment on a permanent or unlimited basis.
6.15 (c) If employment in a temporary position extends beyond
6.16 six consecutive months, the head of the department shall report
6.17 the employee for membership if salary in any month exceeds the
6.18 salary threshold specified in subdivision 2a. The membership
6.19 eligibility of an employee who resigns or is dismissed from a
6.20 temporary position and accepts another temporary position in the
6.21 same governmental subdivision within 30 days is determined on
6.22 the total length of employment rather than on each separate
6.23 position.
6.24 Sec. 3. Minnesota Statutes 2002, section 353.01,
6.25 subdivision 12b, is amended to read:
6.26 Subd. 12b. SEASONAL POSITION. "Seasonal position" means
6.27 a position where the nature of the work or its duration are
6.28 related to a specific season or seasons of the year, regardless
6.29 of whether or not the employing agency anticipates that the same
6.30 employee will return to the position each season in which it
6.31 becomes available. The entire period of employment in a
6.32 business year must be used to determine whether or not a
6.33 position may be excluded as seasonal when there is less than a
6.34 30-day break between one seasonal position and a subsequent
6.35 seasonal position for employment with the same governmental
6.36 employer. Seasonal positions include, but are not limited to,
7.1 coaching athletic activities or employment to plow snow or to
7.2 maintain roads or parks, or to operate skating rinks, ski
7.3 lodges, golf courses, or swimming pools.
7.4 Sec. 4. Minnesota Statutes 2002, section 354.05,
7.5 subdivision 2, is amended to read:
7.6 Subd. 2. TEACHER. (a) "Teacher" means:
7.7 (1) a person who renders service as a teacher, supervisor,
7.8 principal, superintendent, librarian, nurse, counselor, social
7.9 worker, therapist, or psychologist in a public school of the
7.10 state located outside of the corporate limits of a city of the
7.11 first class, or in any charter school, irrespective of the
7.12 location of the school, or in any charitable, penal, or
7.13 correctional institutions of a governmental subdivision, or who
7.14 is engaged in educational administration in connection with the
7.15 state public school system, but excluding the University of
7.16 Minnesota, whether the position be a public office or an
7.17 employment, not including the members or officers of any general
7.18 governing or managing board or body;
7.19 (2) an employee of the teachers retirement association;
7.20 (3) a person who renders teaching service on a part-time
7.21 basis and who also renders other services for a single employing
7.22 unit. A person whose teaching service comprises at least 50
7.23 percent of the combined employment salary is a member of the
7.24 association for all services with the single employing unit. If
7.25 the person's teaching service comprises less than 50 percent of
7.26 the combined employment salary, the executive director must
7.27 determine whether all or none of the combined service is covered
7.28 by the association; or
7.29 (4) a person who is not covered by the plans established
7.30 under chapter 352D, 354A, or 354B and who is employed by the
7.31 board of trustees of the Minnesota state colleges and
7.32 universities system in an unclassified position as:
7.33 (i) a president, vice-president, or dean;
7.34 (ii) a manager or a professional in an academic or an
7.35 academic support program other than specified in item (i);
7.36 (iii) an administrative or a service support faculty
8.1 position; or
8.2 (iv) a teacher or a research assistant.
8.3 (b) "Teacher" does not mean:
8.4 (1) a person who works for a school or institution as an
8.5 independent contractor as defined by the Internal Revenue
8.6 Service;
8.7 (2) a person employed in subsidized on-the-job training,
8.8 work experience or public service employment as an enrollee
8.9 under the federal Comprehensive Employment and Training Act from
8.10 and after March 30, 1978, unless the person has, as of the later
8.11 of March 30, 1978, or the date of employment, sufficient service
8.12 credit in the retirement association to meet the minimum vesting
8.13 requirements for a deferred retirement annuity, or the employer
8.14 agrees in writing on forms prescribed by the executive director
8.15 to make the required employer contributions, including any
8.16 employer additional contributions, on account of that person
8.17 from revenue sources other than funds provided under the federal
8.18 Comprehensive Training and Employment Act, or the person agrees
8.19 in writing on forms prescribed by the executive director to make
8.20 the required employer contribution in addition to the required
8.21 employee contribution;
8.22 (3) a person holding a part-time adult supplementary
8.23 technical college license who renders part-time teaching service
8.24 or a customized trainer as defined by the Minnesota state
8.25 colleges and universities system in a technical college if (i)
8.26 the service is incidental to the regular nonteaching occupation
8.27 of the person; and (ii) the applicable technical college
8.28 employer stipulates annually in advance that the part-time
8.29 teaching service or customized training service will not exceed
8.30 300 hours in a fiscal year and retains the stipulation in its
8.31 records; and (iii) the part-time teaching service or customized
8.32 training service actually does not exceed 300 hours in a fiscal
8.33 year; or
8.34 (4) (3) a person exempt from licensure under section
8.35 122A.30.
8.36 Sec. 5. Minnesota Statutes 2002, section 354B.20,
9.1 subdivision 4, is amended to read:
9.2 Subd. 4. COVERED EMPLOYMENT. (a) "Covered employment"
9.3 means employment by a person eligible for coverage by this
9.4 retirement program under section 354B.21 in a faculty position
9.5 or in an eligible unclassified administrative position.
9.6 (b) "Covered employment" does not mean employment specified
9.7 in paragraph (a) by a faculty member employed in a state
9.8 university or a community college the Minnesota state colleges
9.9 and universities system if the person's initial appointment is
9.10 specified as constituting less than 25 percent of a full
9.11 academic year, exclusive of summer session, for the applicable
9.12 institution.
9.13 Sec. 6. Minnesota Statutes 2002, section 354B.20,
9.14 subdivision 6, is amended to read:
9.15 Subd. 6. ELIGIBLE UNCLASSIFIED ADMINISTRATIVE POSITION.
9.16 "Eligible unclassified administrative position" means the
9.17 following:
9.18 (1) the chancellor of the board;
9.19 (2) a president of a state college or university; or
9.20 (3) an excluded administrator employed in a state
9.21 university or college, by the board, or by the higher education
9.22 services office; or
9.23 (4) other managers and professionals in academic and
9.24 academic support programs in the unclassified service employed
9.25 in a state university or college, by the board, or by the higher
9.26 education services office.
9.27 Sec. 7. Minnesota Statutes 2002, section 354C.11,
9.28 subdivision 2, is amended to read:
9.29 Subd. 2. ELIGIBILITY. (a) An individual must participate
9.30 in the supplemental retirement plan if the individual is
9.31 employed by the board of trustees in the unclassified service of
9.32 the state and has completed at least two years with a full-time
9.33 contract of applicable unclassified employment with the board or
9.34 an applicable predecessor board in any of the positions
9.35 specified in paragraph (b).
9.36 (b) Eligible positions or employment classifications are:
10.1 (1) an unclassified administrative position as defined in
10.2 section 354B.20, subdivision 6;
10.3 (2) an employment classification included in one of the
10.4 following collective bargaining units under section 179A.10,
10.5 subdivision 2:
10.6 (i) the state university instructional unit;
10.7 (ii) the state college instructional unit; and
10.8 (iii) the state university administrative unit; or
10.9 (3) an unclassified employee of the board:
10.10 (i) included in the general professional unit or
10.11 supervisory employees unit under section 179A.10, subdivision 2;
10.12 or
10.13 (ii) excluded from those units due to the employee's
10.14 confidential status under section 179A.10, subdivision 1, clause
10.15 (8).
10.16 Sec. 8. REPEALER.
10.17 Minnesota Statutes 2002, section 352D.02, subdivision 5, is
10.18 repealed.
10.19 Sec. 9. EFFECTIVE DATE.
10.20 (a) Sections 1 to 5 and 8 are effective on July 1, 2004.
10.21 (b) Section 6 is effective on July 1, 2004, and applies
10.22 retroactively to the date of hire of the applicable person in
10.23 the affected position.
10.24 (c) Section 7 is effective retroactively to July 1, 2001.
10.25 ARTICLE 2
10.26 COVERED SALARY DEFINITION
10.27 Section 1. Minnesota Statutes 2002, section 352.01,
10.28 subdivision 13, is amended to read:
10.29 Subd. 13. SALARY. (a) "Salary" means wages, or other
10.30 periodic compensation, paid to an employee before deductions for
10.31 deferred compensation, supplemental retirement plans, or other
10.32 voluntary salary reduction programs.
10.33 (b) "Salary" does not include:
10.34 (1) lump sum sick leave payments,;
10.35 (2) severance payments,;
10.36 (3) lump sum annual leave payments and overtime payments
11.1 made at the time of separation from state service,;
11.2 (4) payments in lieu of any employer-paid group insurance
11.3 coverage, including the difference between single and family
11.4 rates that may be paid to an employee with single coverage, and;
11.5 (5) payments made as an employer-paid fringe benefit,;
11.6 (6) workers' compensation payments,;
11.7 (7) employer contributions to a deferred compensation or
11.8 tax sheltered annuity program,; and
11.9 (8) amounts contributed under a benevolent vacation and
11.10 sick leave donation program are not salary.
11.11 (c) Amounts provided to an employee by the employer through
11.12 a grievance proceeding or a legal settlement are salary only if
11.13 the settlement is reviewed by the executive director and the
11.14 amounts are determined by the executive director to be
11.15 consistent with paragraph (a) and prior determinations.
11.16 Sec. 2. Minnesota Statutes 2002, section 352B.01,
11.17 subdivision 11, is amended to read:
11.18 Subd. 11. AVERAGE MONTHLY SALARY. (a) "Average monthly
11.19 salary" means the average of the highest monthly salaries for
11.20 five years of service as a member upon which contributions were
11.21 deducted from pay under section 352B.02, or upon which
11.22 appropriate contributions or payments were made to the fund to
11.23 receive allowable service and salary credit as specified under
11.24 the applicable law. Average monthly salary must be based upon
11.25 all allowable service if this service is less than five
11.26 years. It
11.27 (b) "Average monthly salary" means the salary of the member
11.28 as defined in section 352.01, subdivision 13. "Average monthly
11.29 salary" does not include any lump-sum annual leave payments and
11.30 overtime payments made at the time of separation from state
11.31 service, any amounts of severance pay, or any reduced salary
11.32 paid during the period the person is entitled to workers'
11.33 compensation benefit payments for temporary disability.
11.34 (c) A member on leave of absence receiving temporary
11.35 workers' compensation payments and a reduced salary or no salary
11.36 from the employer who is entitled to allowable service credit
12.1 for the period of absence may make payment to the fund for the
12.2 difference between salary received, if any, and the salary the
12.3 member would normally receive if not on leave of absence during
12.4 the period. The member shall pay an amount equal to the member
12.5 and employer contribution rate under section 352B.02,
12.6 subdivisions 1b and 1c, on the differential salary amount for
12.7 the period of the leave of absence. The employing department,
12.8 at its option, may pay the employer amount on behalf of the
12.9 member. Payment made under this subdivision must include
12.10 interest at the rate of 8.5 percent per year, and must be
12.11 completed within one year of the return from the leave of
12.12 absence.
12.13 Sec. 3. Minnesota Statutes 2002, section 353.01,
12.14 subdivision 10, is amended to read:
12.15 Subd. 10. SALARY. (a) "Salary" means:
12.16 (1) periodic compensation of a public employee, before
12.17 deductions for deferred compensation, supplemental retirement
12.18 plans, or other voluntary salary reduction programs, and also
12.19 means "wages" and includes net income from fees; and
12.20 (2) for a public employee who has prior service covered by
12.21 a local police or firefighters relief association that has
12.22 consolidated with the public employees retirement association or
12.23 to which section 353.665 applies and who has elected coverage
12.24 either under the public employees police and fire fund benefit
12.25 plan under section 353A.08 following the consolidation or under
12.26 section 353.665, subdivision 4, "salary" means the rate of
12.27 salary upon which member contributions to the special fund of
12.28 the relief association were made prior to the effective date of
12.29 the consolidation as specified by law and by bylaw provisions
12.30 governing the relief association on the date of the initiation
12.31 of the consolidation procedure and the actual periodic
12.32 compensation of the public employee after the effective date of
12.33 consolidation.
12.34 (b) Salary does not mean:
12.35 (1) fees paid to district court reporters, unused annual
12.36 vacation or sick leave payments, in lump-sum or periodic
13.1 payments, severance payments, reimbursement of expenses,
13.2 lump-sum settlements not attached to a specific earnings period,
13.3 or workers' compensation payments;
13.4 (2) employer-paid amounts used by an employee toward the
13.5 cost of insurance coverage, employer-paid fringe benefits,
13.6 flexible spending accounts, cafeteria plans, health care expense
13.7 accounts, day care expenses, or any payments in lieu of any
13.8 employer-paid group insurance coverage, including the difference
13.9 between single and family rates that may be paid to a member
13.10 with single coverage and certain amounts determined by the
13.11 executive director to be ineligible;
13.12 (3) the amount equal to that which the employing
13.13 governmental subdivision would otherwise pay toward single or
13.14 family insurance coverage for a covered employee when, through a
13.15 contract or agreement with some but not all employees, the
13.16 employer:
13.17 (i) discontinues, or for new hires does not provide,
13.18 payment toward the cost of the employee's selected insurance
13.19 coverages under a group plan offered by the employer;
13.20 (ii) makes the employee solely responsible for all
13.21 contributions toward the cost of the employee's selected
13.22 insurance coverages under a group plan offered by the employer,
13.23 including any amount the employer makes toward other employees'
13.24 selected insurance coverages under a group plan offered by the
13.25 employer; and
13.26 (iii) provides increased salary rates for employees who do
13.27 not have any employer-paid group insurance coverages; and
13.28 (4) except as provided in section 353.86 or 353.87,
13.29 compensation of any kind paid to volunteer ambulance service
13.30 personnel or volunteer firefighters, as defined in subdivision
13.31 35 or 36; and
13.32 (5) compensation that exceeds the limitation provided in
13.33 section 356.611.
13.34 (c) Amounts provided to an employee by the employer through
13.35 a grievance proceeding or a legal settlement are salary only if
13.36 the settlement is reviewed by the executive director and the
14.1 amounts are determined by the executive director to be
14.2 consistent with paragraph (a) and prior determinations.
14.3 Sec. 4. Minnesota Statutes 2002, section 354.05,
14.4 subdivision 35, is amended to read:
14.5 Subd. 35. SALARY. (a) "Salary" means the periodic
14.6 compensation, upon which member contributions are required
14.7 before deductions for deferred compensation, supplemental
14.8 retirement plans, or other voluntary salary reduction programs.
14.9 (b) "Salary" does not mean:
14.10 (1) lump sum annual leave payments;
14.11 (2) lump sum wellness and sick leave payments;
14.12 (3) employer-paid amounts used by an employee toward the
14.13 cost of insurance coverage, employer-paid fringe benefits,
14.14 flexible spending accounts, cafeteria plans, health care expense
14.15 accounts, day care expenses, or any payments in lieu of any
14.16 employer-paid group insurance coverage, including the difference
14.17 between single and family rates that may be paid to a member
14.18 with single coverage and certain amounts determined by the
14.19 executive director to be ineligible;
14.20 (4) any form of payment made in lieu of any other
14.21 employer-paid fringe benefit or expense;
14.22 (5) any form of severance payments;
14.23 (6) workers' compensation payments;
14.24 (7) disability insurance payments including self-insured
14.25 disability payments;
14.26 (8) payments to school principals and all other
14.27 administrators for services in addition to the normal work year
14.28 contract if these additional services are performed on an
14.29 extended duty day, Saturday, Sunday, holiday, annual leave day,
14.30 sick leave day, or any other nonduty day;
14.31 (9) payments under section 356.24, subdivision 1, clause
14.32 (4); and
14.33 (10) payments made under section 122A.40, subdivision 12,
14.34 except for payments for sick leave accumulated under the
14.35 provisions of a uniform school district policy that applies
14.36 equally to all similarly situated persons in the district.
15.1 (c) Amounts provided to an employee by the employer through
15.2 a grievance proceeding or a legal settlement are salary only if
15.3 the settlement is reviewed by the executive director and the
15.4 amounts are determined by the executive director to be
15.5 consistent with paragraph (a) and prior determinations.
15.6 Sec. 5. Minnesota Statutes 2002, section 354A.011,
15.7 subdivision 24, is amended to read:
15.8 Subd. 24. SALARY; COVERED SALARY. (a) "Salary" or
15.9 "covered salary" means the entire compensation, upon which
15.10 member contributions are required and made, that is paid to a
15.11 teacher before deductions for deferred compensation,
15.12 supplemental retirement plans, or other voluntary salary
15.13 reduction programs.
15.14 (b) "Salary" does not mean:
15.15 (1) lump sum annual leave payments;
15.16 (2) lump sum wellness and sick leave payments;
15.17 (3) employer-paid amounts used by an employee toward the
15.18 cost of insurance coverage, employer-paid fringe benefits,
15.19 flexible spending accounts, cafeteria plans, health care expense
15.20 accounts, day care expenses, or any payments in lieu of any
15.21 employer-paid group insurance coverage, including the difference
15.22 between single and family rates that may be paid to a member
15.23 with single coverage, and certain amounts determined by the
15.24 executive secretary or director to be ineligible;
15.25 (4) any form of payment made in lieu of any other
15.26 employer-paid fringe benefit or expense;
15.27 (5) any form of severance payments;
15.28 (6) workers' compensation payments;
15.29 (7) disability insurance payments, including self-insured
15.30 disability payments;
15.31 (8) payments to school principals and all other
15.32 administrators for services in addition to the normal work year
15.33 contract if these additional services are performed on an
15.34 extended duty day, Saturday, Sunday, holiday, annual leave day,
15.35 sick leave day, or any other nonduty day;
15.36 (9) payments under section 356.24, subdivision 1, clause
16.1 (4)(ii); and
16.2 (10) payments made under section 122A.40, subdivision 12,
16.3 except for payments for sick leave accumulated under the
16.4 provisions of a uniform school district policy that applies
16.5 equally to all similarly situated persons in the district.
16.6 (c) Amounts provided to an employee by the employer through
16.7 a grievance proceeding or a legal settlement are salary only if
16.8 the settlement is reviewed by the executive director and the
16.9 amounts are determined by the executive director to be
16.10 consistent with paragraph (a) and prior determinations.
16.11 Sec. 6. Minnesota Statutes 2002, section 356.611,
16.12 subdivision 2, is amended to read:
16.13 Subd. 2. FEDERAL COMPENSATION LIMITS. (a) For members
16.14 first contributing to of a covered pension plan enumerated in
16.15 section 356.30, subdivision 3, on or after July 1, 1995,
16.16 compensation in excess of the limitation set forth specified in
16.17 section 401(a)(17) of the Internal Revenue Code, as amended, for
16.18 changes in the cost of living under section 401(a)(17)(B) of the
16.19 Internal Revenue Code, may not be included for contribution and
16.20 benefit computation purposes.
16.21 (b) Notwithstanding paragraph (a), for members specified in
16.22 paragraph (a) who first contributed to a covered plan before
16.23 July 1, 1995, the annual compensation limit set forth specified
16.24 in Internal Revenue Code 401(a)(17) on June 30, 1993, applies to
16.25 members first contributing before July 1, 1995 if that provides
16.26 a greater allowable annual compensation.
16.27 Sec. 7. Minnesota Statutes 2002, section 356.611, is
16.28 amended by adding a subdivision to read:
16.29 Subd. 3. MAXIMUM BENEFIT LIMITATIONS. A member's annual
16.30 benefit must, if necessary, be reduced to the extent required by
16.31 section 415(b) of the Internal Revenue Code, as adjusted by the
16.32 United States Secretary of the Treasury under section 415(d) of
16.33 the Internal Revenue Code. For purposes of section 415 of the
16.34 Internal Revenue Code, the limitation year of a pension plan
16.35 covered by this section must be the fiscal year or calendar year
16.36 of that plan, whichever is applicable. The accrued benefit
17.1 limitation described in section 415(e) of the Internal Revenue
17.2 Code must cease to be effective for limitation years beginning
17.3 after December 31, 1999.
17.4 Sec. 8. EFFECTIVE DATE.
17.5 Sections 1 to 7 are effective on July 1, 2004.
17.6 ARTICLE 3
17.7 ALLOWABLE SERVICE CREDIT
17.8 Section 1. Minnesota Statutes 2002, section 352.27, is
17.9 amended to read:
17.10 352.27 CREDIT FOR MILITARY BREAK IN SERVICE TO PROVIDE
17.11 UNIFORMED SERVICE.
17.12 Any (a) An employee given a leave of absence to enter
17.13 military service who is absent from employment by reason of
17.14 service in the uniformed services, as defined in United States
17.15 Code, title 38, section 4303(13), and who returns to state
17.16 service upon discharge from military service as provided in the
17.17 uniformed service within the time frames required in United
17.18 States Code, title 38, section 192.262 4312(e), may obtain
17.19 service credit for the period of military the uniformed service.
17.20 The employee is not entitled to credit for any voluntary
17.21 extension of military service at the instance of the employee
17.22 beyond the initial period of enlistment, induction, or call to
17.23 active duty, nor to credit for any period of service following a
17.24 voluntary return to military service as further specified in
17.25 this section, provided that the employee did not separate from
17.26 uniformed service with a dishonorable or bad conduct discharge
17.27 or under other than honorable conditions. An
17.28 (b) The employee may obtain credit by paying into the fund
17.29 an equivalent employee contribution based upon the contribution
17.30 rate or rates in effect at the time that the uniformed service
17.31 was performed multiplied by the full and fractional years being
17.32 purchased and applied to the annual salary received at the date
17.33 of return from military service. The amount of this contribution
17.34 must be the applicable amounts required in section 352.04,
17.35 subdivision 2, plus interest at an annual rate of 8.5 percent
17.36 compounded annually rate. The annual salary rate is the average
18.1 annual salary during the purchase period that the employee would
18.2 have received if the employee had continued to be employed in
18.3 covered employment rather than to provide uniformed service, or,
18.4 if the determination of that rate is not reasonably certain, the
18.5 annual salary rate is the employee's average salary rate during
18.6 the 12-month period of covered employment immediately preceding
18.7 the period of the uniformed service.
18.8 (c) The matching equivalent employer contribution and, if
18.9 applicable, the equivalent additional employer contribution
18.10 provided in section 352.04 must be paid by the department
18.11 employing the employee upon return to state service from funds
18.12 available to the department at the time and in the manner
18.13 provided in section 352.04, using the employer and additional
18.14 employer contribution rate or rates in effect at the time that
18.15 the uniformed service was performed, applied to the same annual
18.16 salary rate or rates used to compute the equivalent employee
18.17 contribution.
18.18 (d) If the employee equivalent contributions provided in
18.19 this section are not paid in full, the employee's allowable
18.20 service credit must be prorated by multiplying the full and
18.21 fractional number of years of uniformed service eligible for
18.22 purchase by the ratio obtained by dividing the total employee
18.23 contribution received by the total employee contribution
18.24 otherwise required under this section.
18.25 (e) To receive service credit under this section, the
18.26 contributions specified in this section must be transmitted to
18.27 the Minnesota State Retirement System during the period which
18.28 begins with the date on which the individual returns to state
18.29 service and which has a duration of three times the length of
18.30 the uniformed service period, but not to exceed five years. If
18.31 the determined payment period is less than one year, the
18.32 contributions required under this section to receive service
18.33 credit may be made within one year of the discharge date.
18.34 (f) The amount of service credit obtainable under this
18.35 section may not exceed five years unless a longer purchase
18.36 period is required under United States Code, title 38, section
19.1 4312.
19.2 (g) The employing unit shall pay interest on all equivalent
19.3 employee and employer contribution amounts payable under this
19.4 section. Interest must be computed at a rate of 8.5 percent
19.5 compounded annually from the end of each fiscal year of the
19.6 leave or the break in service to the end of the month in which
19.7 the payment is received.
19.8 Sec. 2. Minnesota Statutes 2002, section 352B.01, is
19.9 amended by adding a subdivision to read:
19.10 Subd. 3b. CREDIT FOR BREAK IN SERVICE TO PROVIDE
19.11 UNIFORMED SERVICE. (a) A member who is absent from employment
19.12 by reason of service in the uniformed services, as defined in
19.13 United States Code, title 38, section 4303(13), and who returns
19.14 to state employment in a position covered by the plan upon
19.15 discharge from service in the uniformed service within the time
19.16 frame required in United States Code, title 38, section 4312(e),
19.17 may obtain service credit for the period of the uniformed
19.18 service, provided that the member did not separate from
19.19 uniformed service with a dishonorable or bad conduct discharge
19.20 or under other than honorable conditions.
19.21 (b) The member may obtain credit by paying into the fund an
19.22 equivalent member contribution based on the contribution rate or
19.23 rates in effect at the time that the uniformed service was
19.24 performed multiplied by the full and fractional years being
19.25 purchased and applied to the annual salary rate. The annual
19.26 salary rate is the average annual salary during the purchase
19.27 period that the member would have received if the member had
19.28 continued to provide employment services to the state rather
19.29 than to provide uniformed service, or if the determination of
19.30 that rate is not reasonably certain, the annual salary rate is
19.31 the member's average salary rate during the 12-month period
19.32 immediately preceding the purchase period.
19.33 (c) The equivalent employer contribution and, if
19.34 applicable, the equivalent employer additional contribution,
19.35 must be paid by the employing unit, using the employer and
19.36 employer additional contribution rate or rates in effect at the
20.1 time that the uniformed service was performed, applied to the
20.2 same annual salary rate or rates used to compute the equivalent
20.3 member contribution.
20.4 (d) If the member equivalent contributions provided for in
20.5 this subdivision are not paid in full, the member's allowable
20.6 service credit must be prorated by multiplying the full and
20.7 fractional number of years of uniformed service eligible for
20.8 purchase by the ratio obtained by dividing the total member
20.9 contributions received by the total member contributions
20.10 otherwise required under this subdivision.
20.11 (e) To receive allowable service credit under this
20.12 subdivision, the contributions specified in this section must be
20.13 transmitted to the fund during the period which begins with the
20.14 date on which the individual returns to state employment covered
20.15 by the plan and which has a duration of three times the length
20.16 of the uniformed service period, but not to exceed five years.
20.17 If the determined payment period is calculated to be less than
20.18 one year, the contributions required under this subdivision to
20.19 receive service credit may be within one year from the discharge
20.20 date.
20.21 (f) The amount of allowable service credit obtainable under
20.22 this section may not exceed five years, unless a longer purchase
20.23 period is required under United States Code, title 38, section
20.24 4312.
20.25 (g) The employing unit shall pay interest on all equivalent
20.26 member and employer contribution amounts payable under this
20.27 subdivision. Interest must be computed at a rate of 8.5 percent
20.28 compounded annually from the end of each fiscal year of the
20.29 leave or break in service to the end of the month in which
20.30 payment is received.
20.31 Sec. 3. Minnesota Statutes 2002, section 353.01,
20.32 subdivision 16, is amended to read:
20.33 Subd. 16. ALLOWABLE SERVICE; LIMITS AND COMPUTATION. (a)
20.34 "Allowable service" means:
20.35 (1) service during years of actual membership in the course
20.36 of which employee contributions were made, periods covered by
21.1 payments in lieu of salary deductions under section 353.35;
21.2 (2) service in years during which the public employee was
21.3 not a member but for which the member later elected, while a
21.4 member, to obtain credit by making payments to the fund as
21.5 permitted by any law then in effect;
21.6 (3) a period of authorized leave of absence with pay from
21.7 which deductions for employee contributions are made, deposited,
21.8 and credited to the fund;
21.9 (4) a period of authorized personal, parental, or medical
21.10 leave of absence without pay, including a leave of absence
21.11 covered under the federal Family Medical Leave Act, that does
21.12 not exceed one year, and during or for which a member obtained
21.13 service credit for each month in the leave period by payments to
21.14 the fund made in place of salary deductions. The payments must
21.15 be made in an amount or amounts based on the member's average
21.16 salary on which deductions were paid for the last six months of
21.17 public service, or for that portion of the last six months while
21.18 the member was in public service, to apply to the period in
21.19 either case that immediately precedes the commencement of the
21.20 leave of absence. If the employee elects to pay the employee
21.21 contributions for the period of any authorized personal,
21.22 parental, or medical leave of absence without pay, or for any
21.23 portion of the leave, the employee shall also, as a condition to
21.24 the exercise of the election, pay to the fund an amount
21.25 equivalent to the required employer and the additional employer
21.26 contributions, if any, for the employee. The payment must be
21.27 made within one year from the expiration of the leave of absence
21.28 or within 20 days after termination of public service under
21.29 subdivision 11a, whichever is earlier. The employer, by
21.30 appropriate action of its governing body which is made a part of
21.31 its official records and which is adopted before the date of the
21.32 first payment of the employee contribution, may certify to the
21.33 association in writing its commitment to pay the employer and
21.34 additional employer contributions from the proceeds of a tax
21.35 levy made under section 353.28. Payments under this paragraph
21.36 must include interest at an annual rate of 8.5 percent
22.1 compounded annually from the date of the termination of the
22.2 leave of absence to the date payment is made. An employee shall
22.3 return to public service and render a minimum of three months of
22.4 allowable service in order to be eligible to pay employee and
22.5 employer contributions for a subsequent authorized leave of
22.6 absence without pay. Upon payment, the employee must be granted
22.7 allowable service credit for the purchased period;
22.8 (5) a periodic, repetitive leave that is offered to all
22.9 employees of a governmental subdivision. The leave program may
22.10 not exceed 208 hours per annual normal work cycle as certified
22.11 to the association by the employer. A participating member
22.12 obtains service credit by making employee contributions in an
22.13 amount or amounts based on the member's average salary that
22.14 would have been paid if the leave had not been taken. The
22.15 employer shall pay the employer and additional employer
22.16 contributions on behalf of the participating member. The
22.17 employee and the employer are responsible to pay interest on
22.18 their respective shares at the rate of 8.5 percent a year,
22.19 compounded annually, from the end of the normal cycle until full
22.20 payment is made. An employer shall also make the employer and
22.21 additional employer contributions, plus 8.5 percent interest,
22.22 compounded annually, on behalf of an employee who makes employee
22.23 contributions but terminates public service. The employee
22.24 contributions must be made within one year after the end of the
22.25 annual normal working cycle or within 20 days after termination
22.26 of public service, whichever is sooner. The association shall
22.27 prescribe the manner and forms to be used by a governmental
22.28 subdivision in administering a periodic, repetitive leave. Upon
22.29 payment, the member must be granted allowable service credit for
22.30 the purchased period;
22.31 (6) an authorized temporary layoff under subdivision 12,
22.32 limited to three months allowable service per authorized
22.33 temporary layoff in one calendar year. An employee who has
22.34 received the maximum service credit allowed for an authorized
22.35 temporary layoff must return to public service and must obtain a
22.36 minimum of three months of allowable service subsequent to the
23.1 layoff in order to receive allowable service for a subsequent
23.2 authorized temporary layoff; or
23.3 (7) a period during which a member is on an authorized
23.4 leave of absence to enter military absent from employment by a
23.5 governmental subdivision by reason of service in the armed
23.6 forces of the United States in the uniformed services, as
23.7 defined in United States Code, title 38, section 4303(13), if
23.8 the member returns to public service upon discharge
23.9 from military service in the uniformed service within the time
23.10 frames required under United States Code, title 38, section
23.11 192.262 and 4312(e), provided that the member did not separate
23.12 from uniformed service with a dishonorable or bad conduct
23.13 discharge or under other than honorable conditions. The service
23.14 is credited if the member pays into the fund equivalent employee
23.15 contributions based upon the employee's contribution rate or
23.16 rates in effect at the time that the uniformed service was
23.17 performed multiplied by the full and fractional years being
23.18 purchased and applied to the annual salary at the date of return
23.19 from military service rate. The annual salary rate is the
23.20 average annual salary during the purchase period that the member
23.21 would have received if the member had continued to be employed
23.22 in covered employment rather than to provide uniformed service,
23.23 or, if the determination of that rate is not reasonably certain,
23.24 the annual salary rate is the member's average salary rate
23.25 during the 12-month period of covered employment immediately
23.26 preceding the period of the uniformed service. Payment of the
23.27 member equivalent contributions must be made within during a
23.28 period which begins with the date on which the individual
23.29 returns to public employment and that is three times the length
23.30 of the military leave period, or within five years of the date
23.31 of discharge from the military service, whichever is less. If
23.32 the determined payment period is less than one year, the
23.33 contributions required under this clause to receive service
23.34 credit may be made within one year of the discharge date.
23.35 Payment may not be accepted following 20 days after termination
23.36 of public service under subdivision 11a. The amount of these
24.1 contributions must be in accord with the contribution rates and
24.2 salary limitations, if any, in effect during the leave, plus
24.3 interest at an annual rate of 8.5 percent compounded annually
24.4 from the date of return to public service to the date payment is
24.5 made. If the member equivalent contributions provided for in
24.6 this clause are not paid in full, the member's allowable service
24.7 credit must be prorated by multiplying the full and fractional
24.8 number of years of uniformed service eligible for purchase by
24.9 the ratio obtained by dividing the total member contributions
24.10 received by the total member contributions otherwise required
24.11 under this clause. The corresponding equivalent employer
24.12 contribution, and, if applicable, the equivalent additional
24.13 employer contribution, if applicable, must be paid by the
24.14 governmental subdivision employing the member upon the person's
24.15 return to public service if the member makes the equivalent
24.16 employee contributions. The employer payments must be made from
24.17 funds available to the employing unit, using the employer and
24.18 additional employer contribution rate or rates in effect at the
24.19 time that the uniformed service was performed, applied to the
24.20 same annual salary rate or rates used to compute the equivalent
24.21 member contribution. The governmental subdivision involved may
24.22 appropriate money for those payments. A member may not receive
24.23 credit for a voluntary extension of military service at the
24.24 instance of the member beyond the initial period of enlistment,
24.25 induction, or call to active duty. The amount of service credit
24.26 obtainable under this section may not exceed five years unless a
24.27 longer purchase period is required under United States Code,
24.28 title 38, section 4312. The employing unit shall pay interest
24.29 on all equivalent member and employer contribution amounts
24.30 payable under this clause. Interest must be computed at a rate
24.31 of 8.5 percent compounded annually from the end of each fiscal
24.32 year of the leave or the break in service to the end of the
24.33 month in which the payment is received. Upon payment, the
24.34 employee must be granted allowable service credit for the
24.35 purchased period.
24.36 (b) For calculating benefits under sections 353.30, 353.31,
25.1 353.32, and 353.33 for state officers and employees displaced by
25.2 the Community Corrections Act, chapter 401, and transferred into
25.3 county service under section 401.04, "allowable service" means
25.4 the combined years of allowable service as defined in paragraph
25.5 (a), clauses (1) to (6), and section 352.01, subdivision 11.
25.6 (c) For a public employee who has prior service covered by
25.7 a local police or firefighters relief association that has
25.8 consolidated with the Public Employees Retirement Association or
25.9 to which section 353.665 applies, and who has elected the type
25.10 of benefit coverage provided by the public employees police and
25.11 fire fund either under section 353A.08 following the
25.12 consolidation or under section 353.665, subdivision 4,
25.13 "applicable service" is a period of service credited by the
25.14 local police or firefighters relief association as of the
25.15 effective date of the consolidation based on law and on bylaw
25.16 provisions governing the relief association on the date of the
25.17 initiation of the consolidation procedure.
25.18 (d) No member may receive more than 12 months of allowable
25.19 service credit in a year either for vesting purposes or for
25.20 benefit calculation purposes.
25.21 (e) "Allowable service" also means a period purchased under
25.22 section 356.555.
25.23 Sec. 4. Minnesota Statutes 2002, section 354.091, is
25.24 amended to read:
25.25 354.091 SERVICE CREDIT.
25.26 (a) In computing service credit, no teacher shall receive
25.27 credit for more than one year of teaching service for any fiscal
25.28 year. Commencing July 1, 1961:
25.29 (1) if a teacher teaches less than five hours in a day,
25.30 service credit must be given for the fractional part of the day
25.31 as the term of service performed bears to five hours;
25.32 (2) if a teacher teaches five or more hours in a day,
25.33 service credit must be given for only one day;
25.34 (3) if a teacher teaches at least 170 full days in any
25.35 fiscal year, service credit must be given for a full year of
25.36 teaching service; and
26.1 (4) if a teacher teaches for only a fractional part of the
26.2 year, service credit must be given for such fractional part of
26.3 the year as the period of service performed bears to 170 days.
26.4 (b) A teacher shall receive a full year of service credit
26.5 based on the number of days in the employer's full school year
26.6 if it is less than 170 days. Teaching service performed before
26.7 July 1, 1961, must be computed under the law in effect at the
26.8 time it was performed.
26.9 (c) A teacher does not lose or gain retirement service
26.10 credit as a result of the employer converting to a flexible or
26.11 alternate work schedule. If the employer converts to a flexible
26.12 or alternate work schedule, the forms for reporting and the
26.13 procedures for determining service credit must be determined by
26.14 the executive director with the approval of the board of
26.15 trustees.
26.16 (d) For all services rendered on or after July 1, 2003,
26.17 service credit for all members employed by the Minnesota state
26.18 colleges and universities system must be determined:
26.19 (1) for full-time employees, by the definition of full time
26.20 employment contained in the collective bargaining agreement for
26.21 those units listed in section 179A.10, subdivision 2, or
26.22 contained in the applicable personnel or salary plan for those
26.23 positions designated in section 179A.10, subdivision 1;
26.24 (2) for part-time employees, by the appropriate proration
26.25 of full-time equivalency based on the provisions contained in
26.26 the collective bargaining agreement for those units listed in
26.27 section 179A.10, subdivision 2, or contained in the applicable
26.28 personnel or salary plan for those positions designated in
26.29 section 179A.10, subdivision 1, and the applicable procedures of
26.30 the Minnesota state colleges and universities system; and
26.31 (3) in no case may a member receive more than one year of
26.32 service credit for any fiscal year.
26.33 Sec. 5. Minnesota Statutes 2002, section 354.096,
26.34 subdivision 1, is amended to read:
26.35 Subdivision 1. CERTIFICATION. Upon granting a family
26.36 leave to a member, an employing unit must certify the leave to
27.1 the association on a form specified by the executive director
27.2 before the end of the fiscal year during which the leave was
27.3 granted.
27.4 Sec. 6. Minnesota Statutes 2002, section 354.53, is
27.5 amended to read:
27.6 354.53 CREDIT FOR MILITARY BREAK IN SERVICE LEAVE OF
27.7 ABSENCE TO PROVIDE UNIFORMED SERVICE.
27.8 Subdivision 1. ELIGIBILITY; EMPLOYEE AND EMPLOYER
27.9 CONTRIBUTIONS. (a) Any employee given a leave of absence to
27.10 enter military service teacher who is absent from employment by
27.11 reason of service in the uniformed services, as defined in
27.12 United States Code, title 38, section 4303(13), and who returns
27.13 to the employer providing teaching service upon discharge from
27.14 military service as provided in the uniformed service within the
27.15 time frames required in United States Code, title 38, section
27.16 192.262 4312(e), may obtain service credit for the period of
27.17 military the uniformed service but shall not receive credit for
27.18 any voluntary extension of military service at the instance of
27.19 the member beyond the initial period of enlistment, induction or
27.20 call to active duty as further specified in this section,
27.21 provided that the teacher did not separate from uniformed
27.22 service with a dishonorable or bad conduct discharge or under
27.23 other than honorable conditions.
27.24 (b) The member shall may obtain credit by paying into the
27.25 fund an equivalent employee contribution based upon the
27.26 contribution rate or rates in effect at the time that
27.27 the military uniformed service was performed multiplied by the
27.28 full and fractional years being purchased and applied to the
27.29 annual salary rate of the member for the year beginning with the
27.30 date of return from military service and the number of years of
27.31 military service together with interest thereon at an annual
27.32 rate of 8.5 percent compounded annually from the time the
27.33 military service was rendered to the first date of payment. The
27.34 annual salary rate is the average annual salary during the
27.35 purchase period that the teacher would have received if the
27.36 teacher had continued to provide teaching service to the
28.1 employer rather than provide uniformed service or if the
28.2 determination of that rate is not reasonably certain, the annual
28.3 salary rate is the teacher's average salary rate during the
28.4 12-month period immediately preceding the period, or, if the
28.5 preceding period is less than 12 months, the annualized rate
28.6 derived from the teacher's average salary rate during the period
28.7 of teacher employment immediately preceding the period of the
28.8 uniformed service.
28.9 (c) The equivalent employer contribution and, if
28.10 applicable, the equivalent additional contribution provided in
28.11 section 354.42 must be paid by the employing unit at as provided
28.12 in section 354.52, subdivision 4, using the employer and
28.13 employer additional contribution rate or rates in effect at the
28.14 time that the military uniformed service was performed, applied
28.15 to the same annual salary rate of or rates used to compute the
28.16 member for the year beginning with the date of return from
28.17 military service, in the manner provided in section 354.52,
28.18 subdivision 4 equivalent employee contribution.
28.19 Subd. 2. CALCULATION OF CREDIT. (a) For purposes of
28.20 computing a money purchase annuity under section 354.44,
28.21 subdivision 2 money purchase annuity, all payments into the fund
28.22 pursuant to under this section shall must be considered
28.23 accumulations after July 1, 1957 for the purpose of computing
28.24 any annuity in accordance with section 354.44, subdivision 2.
28.25 (b) For purposes of computing a formula annuity under
28.26 section 354.44, subdivision 6, if the employee equivalent
28.27 contributions and interest thereon provided in this section are
28.28 not paid in full, the member's formula service credit shall must
28.29 be calculated prorated by multiplying the full and fractional
28.30 number of years of military uniformed service eligible for
28.31 purchase by the ratio obtained by dividing the total amount paid
28.32 and employee contribution received by the maximum amount payable
28.33 provided herein total employee contribution otherwise required
28.34 under this section.
28.35 Subd. 3. PAYMENTS ELIGIBLE PAYMENT PERIOD. Payments
28.36 pursuant to this (a) To receive service credit under this
29.1 section, the contributions specified in this section shall must
29.2 be made within transmitted to the teachers retirement
29.3 association during the period which begins with the date on
29.4 which the individual returns to teaching service and which has a
29.5 duration of three times the length of the uniformed service
29.6 period, but not to exceed five years from the date of discharge.
29.7 (b) Notwithstanding paragraph (a), if the payment period
29.8 determined under paragraph (a) is less than one year, the
29.9 contributions required under this section to receive service
29.10 credit may be made within one year from the discharge date.
29.11 Subd. 4. LIMITS ON SERVICE CREDIT. The amount of service
29.12 credit obtainable under this section may not exceed five years,
29.13 unless a longer purchase period is required under United States
29.14 Code, title 38, section 4312.
29.15 Subd. 5. INTEREST REQUIREMENTS. The employer shall pay
29.16 interest on all equivalent employee and employer contribution
29.17 amounts payable under this section. Interest must be computed
29.18 at a rate of 8.5 percent compounded annually from the end of
29.19 each fiscal year of the leave or the break in service to the end
29.20 of the month in which the payment is received.
29.21 Sec. 7. Minnesota Statutes 2002, section 354A.093, is
29.22 amended to read:
29.23 354A.093 MILITARY BREAK IN SERVICE CREDIT TO PROVIDE
29.24 UNIFORMED SERVICE.
29.25 Subdivision 1. ELIGIBILITY. Any teacher in the
29.26 coordinated program of either the Minneapolis teachers
29.27 retirement fund association or the St. Paul teachers retirement
29.28 fund association or any teacher in the new law coordinated
29.29 program of the Duluth teachers retirement fund association who
29.30 is granted a leave absent from employment by reason of absence
29.31 to enter military service in the uniformed services as defined
29.32 in United States Code, title 38, section 4303(13) and who
29.33 returns to the employer providing active teaching service upon
29.34 discharge from military uniformed service as provided in within
29.35 the time frames required under United States Code, title 38,
29.36 section 192.262 4312(e), shall be entitled to may receive
30.1 allowable service credit in the applicable association for all
30.2 or a portion of the period of military uniformed service but,
30.3 provided that the teacher did not for any voluntary extension of
30.4 military separate from uniformed service beyond the initial
30.5 period of enlistment, induction with a dishonorable or call to
30.6 active duty which occurred at the instance of the teacher bad
30.7 conduct discharge or under other than honorable conditions.
30.8 Subd. 2. CONTRIBUTIONS. If the teacher granted the
30.9 military service leave of absence makes the equivalent employee
30.10 contribution for a period of military service leave of absence
30.11 pursuant to service provided to the uniformed services under
30.12 this section, the employing unit shall make an equivalent
30.13 employer contribution on behalf of the teacher to the applicable
30.14 association for the period of the military service leave of
30.15 absence being purchased in the manner described in section
30.16 354A.12, subdivision 2a. The equivalent employee and employer
30.17 contributions shall must be in an amount equal to the employee
30.18 and employer contribution rates in effect for other active
30.19 members of the association covered by the same program applied
30.20 to a salary figure equal to the teacher's average annual salary
30.21 rate at the date of return from military service that the
30.22 teacher would have received if the leave or break in service had
30.23 not occurred, or if the determination of that average salary
30.24 rate is not reasonably certain, on the basis of the teacher's
30.25 average salary rate during the 12-month period immediately
30.26 preceding the period, or, if the preceding period is less than
30.27 12 months, the annualized rate derived from the teacher's
30.28 average salary rate during the period of teacher employment
30.29 immediately preceding the period of uniformed service, with the
30.30 result multiplied by the number of full and fractional years
30.31 constituting the period of service provided to the military
30.32 uniformed service leave of absence which the teacher seeks is
30.33 authorized to purchase under this section. Payment shall
30.34 include interest on the amount payable pursuant to this section
30.35 at the rate of six percent compounded annually from the year the
30.36 military service was rendered to the date of payment.
31.1 Subd. 3. PRORATING. If the payments made by a
31.2 teacher pursuant to under this section are less than an the full
31.3 amount equal to the applicable contribution rate applied to a
31.4 salary figure equal to the teacher's annual salary rate at the
31.5 date of return from military service, multiplied by the number
31.6 of years constituting the period of the military service leave
31.7 of absence determined under subdivision 2, the service credit
31.8 shall must be prorated. The prorated service credit shall must
31.9 be determined by the ratio between the amount of the
31.10 actual equivalent employee payment which was made and the full
31.11 contribution amount payable pursuant to equivalent employee
31.12 payment required under this section. In order to be entitled to
31.13 receive service credit under this section, payment shall be made
31.14 within five years from the date of discharge from military
31.15 service.
31.16 Subd. 4. ELIGIBLE PAYMENT PERIOD. (a) To receive service
31.17 credit under this section, the contributions specified in this
31.18 section must be transmitted to the applicable first class city
31.19 teachers retirement fund association during the period which
31.20 begins with the date the individual returns to teaching service
31.21 and which has a duration of three times the length of the
31.22 uniformed service period, but not to exceed five years.
31.23 (b) Notwithstanding paragraph (a), if the payment period
31.24 determined under paragraph (a) is less than one year, the
31.25 contributions required under this section to receive service
31.26 credit may be made within one year from the discharge date.
31.27 Subd. 5. LIMITS ON SERVICE CREDIT. The amount of service
31.28 credit obtainable under this section may not exceed five years,
31.29 unless a longer purchase period is required under United States
31.30 Code, title 38, section 4312.
31.31 Subd. 6. INTEREST REQUIREMENTS. The employer shall pay
31.32 interest on all equivalent employee and employer contribution
31.33 amounts payable under this section. Interest must be computed
31.34 at a rate of 8.5 percent compounded annually from the end of
31.35 each fiscal year of the leave or break in service to the end of
31.36 the month in which payment is received.
32.1 Sec. 8. Minnesota Statutes 2002, section 490.121, is
32.2 amended by adding a subdivision to read:
32.3 Subd. 4b. CREDIT FOR BREAK IN SERVICE TO PROVIDE
32.4 UNIFORMED SERVICE. (a) A judge who is absent from employment by
32.5 reason of service in the uniformed services, as defined in
32.6 United States Code, title 38, section 4303(13), and who returns
32.7 to state employment as a judge upon discharge from service in
32.8 the uniformed service within the time frame required in United
32.9 States Code, title 38, section 4312(e) may obtain service credit
32.10 for the period of the uniformed service, provided that the judge
32.11 did not separate from uniformed service with a dishonorable or
32.12 bad conduct discharge or under other than honorable conditions.
32.13 (b) The judge may obtain credit by paying into the fund
32.14 equivalent member contribution based on the contribution rate
32.15 rates in effect at the time that the uniformed service was
32.16 performed multiplied by the full and fractional years being
32.17 purchased and applied to the annual salary rate. The annual
32.18 salary rate is the average annual salary during the purchase
32.19 period that the judge would have received if the judge had
32.20 continued to provide employment services to the state rather
32.21 than to provide uniformed service, or if the determination of
32.22 that rate is not reasonably certain, the annual salary rate is
32.23 the judge's average salary rate during the 12-month period
32.24 immediately preceding the purchase period.
32.25 (c) The equivalent employer contribution and, if
32.26 applicable, the equivalent employer additional contribution,
32.27 must be paid by the employing unit, using the employer and
32.28 employer additional contribution rate or rates in effect at the
32.29 time that the uniformed service was performed, applied to the
32.30 same annual salary rate or rates used to compute the equivalent
32.31 member contribution.
32.32 (d) If the member equivalent contributions provided for in
32.33 this subdivision are not paid in full, the judge's allowable
32.34 service credit must be prorated by multiplying the full and
32.35 fractional number of years of uniformed service eligible for
32.36 purchase by the ratio obtained by dividing the total member
33.1 contributions received by the total member contributions
33.2 otherwise required under this subdivision.
33.3 (e) To receive allowable service credit under this
33.4 subdivision, the contributions specified in this section must be
33.5 transmitted to the fund during the period which begins with the
33.6 date on which the individual returns to judicial employment and
33.7 which has a duration of three times the length of the uniformed
33.8 service period, but not to exceed five years. If the determined
33.9 payment period is calculated to be less than one year, the
33.10 contributions required under this subdivision to receive service
33.11 credit may be within one year from the discharge date.
33.12 (f) The amount of allowable service credit obtainable under
33.13 this section may not exceed five years, unless a longer purchase
33.14 period is required under United States Code, title 38, section
33.15 4312.
33.16 (g) The state court administrator shall pay interest on all
33.17 equivalent member and employer contribution amounts payable
33.18 under this subdivision. Interest must be computed at a rate of
33.19 8.5 percent compounded annually from the end of each fiscal year
33.20 of the leave or break in service to the end of the month in
33.21 which payment is received.
33.22 Sec. 9. EFFECTIVE DATE.
33.23 Sections 1 to 8 are effective on July 1, 2004.
33.24 ARTICLE 4
33.25 QUALIFIED PART-TIME TEACHER PROVISIONS
33.26 Section 1. Minnesota Statutes 2002, section 354.66,
33.27 subdivision 2, is amended to read:
33.28 Subd. 2. QUALIFIED PART-TIME TEACHER PROGRAM
33.29 PARTICIPATION REQUIREMENTS. (a) A teacher in a Minnesota public
33.30 elementary school, a Minnesota secondary school, or the
33.31 Minnesota state colleges and universities system who has three
33.32 years or more of allowable service in the association or three
33.33 years or more of full-time teaching service in Minnesota public
33.34 elementary schools, Minnesota secondary schools, or the
33.35 Minnesota state colleges and universities system, by agreement
33.36 with the board of the employing district or with the authorized
34.1 representative of the board, may be assigned to teaching service
34.2 in a part-time teaching position under subdivision 3. The
34.3 agreement must be executed before October 1 of the school year
34.4 for which the teacher requests to make retirement contributions
34.5 under subdivision 4. A copy of the executed agreement must be
34.6 filed with the executive director of the association. If the
34.7 copy of the executed agreement is filed with the association
34.8 after October 1 of the school year for which the teacher
34.9 requests to make retirement contributions under subdivision 4,
34.10 the employing unit shall pay the fine specified in section
34.11 354.52, subdivision 6, for each calendar day that elapsed since
34.12 the October 1 due date. The association may not accept an
34.13 executed agreement that is received by the association more than
34.14 15 months late. The association may not waive the fine required
34.15 by this section.
34.16 (b) Notwithstanding paragraph (a), if the teacher is also a
34.17 legislator:
34.18 (1) the agreement in paragraph (a) must be executed before
34.19 March 1 of the school year for which the teacher requests to
34.20 make retirement contributions under subdivision 4; and
34.21 (2) fines specified in paragraph (a) apply if the employing
34.22 unit does not file the executed agreement with the executive
34.23 director of the association by March 1.
34.24 Sec. 2. Minnesota Statutes 2002, section 354A.094,
34.25 subdivision 3, is amended to read:
34.26 Subd. 3. QUALIFIED PART-TIME TEACHER PROGRAM
34.27 PARTICIPATION REQUIREMENTS. (a) A teacher in the public schools
34.28 of a city of the first class who has three years or more
34.29 allowable service in the applicable retirement fund association
34.30 or three years or more of full-time teaching service in
34.31 Minnesota public elementary schools, Minnesota secondary
34.32 schools, and Minnesota State Colleges and Universities system
34.33 may, by agreement with the board of the employing district, be
34.34 assigned to teaching service within the district in a part-time
34.35 teaching position. The agreement must be executed before
34.36 October 1 of the year for which the teacher requests to make
35.1 retirement contributions under subdivision 4. A copy of the
35.2 executed agreement must be filed with the executive director of
35.3 the retirement fund association. If the copy of the executed
35.4 agreement is filed with the association after October 1 of the
35.5 year for which the teacher requests to make retirement
35.6 contributions under subdivision 4, the employing school district
35.7 shall pay a fine of $5 for each calendar day that elapsed since
35.8 the October 1 due date. The association may not accept an
35.9 executed agreement that is received by the association more than
35.10 15 months late. The association may not waive the fine required
35.11 by this section.
35.12 (b) Notwithstanding paragraph (a), if the teacher is also a
35.13 legislator:
35.14 (1) the agreement in paragraph (a) must be executed before
35.15 March 1 of the school year for which the teacher requests to
35.16 make retirement contributions under subdivision 4; and
35.17 (2) fines specified in paragraph (a) apply if the employing
35.18 unit does not file the executed agreement with the executive
35.19 director of the Teachers Retirement Fund Association by March 1.
35.20 Sec. 3. EFFECTIVE DATE.
35.21 Sections 1 and 2 are effective on July 1, 2004.
35.22 ARTICLE 5
35.23 RETIREMENT PLAN CONTRIBUTIONS AND TRANSFERS
35.24 Section 1. Minnesota Statutes 2002, section 354.42,
35.25 subdivision 7, is amended to read:
35.26 Subd. 7. ERRONEOUS SALARY DEDUCTIONS OR DIRECT PAYMENTS.
35.27 (a) Any deductions taken from the salary of an employee for the
35.28 retirement fund in error shall must be refunded to the employee
35.29 upon the discovery of the error and after the verification of
35.30 the error by the employing unit making the deduction, and. The
35.31 corresponding employer contribution and additional employer
35.32 contribution amounts attributable to the erroneous salary
35.33 deduction must be refunded to the employing unit.
35.34 (b) If salary deductions and employer contributions were
35.35 erroneously transmitted to the retirement fund and should have
35.36 been transmitted to another Minnesota public pension plan, the
36.1 retirement association executive director must transfer these
36.2 salary deductions and employer contributions to the appropriate
36.3 public pension fund without interest. For purposes of this
36.4 paragraph, a Minnesota public pension plan means a plan
36.5 specified in section 356.30, subdivision 3, or the plan governed
36.6 by chapter 354B.
36.7 (c) A potential transfer under paragraph (b) that would
36.8 cause the plan to fail to be a qualified plan under section
36.9 401(a) of the Internal Revenue Code, as amended, must not be
36.10 made by the executive director. Within 30 days after being
36.11 notified by the teachers retirement association of an unmade
36.12 potential transfer under this paragraph, the employer of the
36.13 affected person must transmit an amount representing the
36.14 applicable salary deductions and employer contributions, without
36.15 interest, to the retirement fund of the appropriate Minnesota
36.16 public pension plan fund. The retirement association must
36.17 provide a credit for the amount of the erroneous salary
36.18 deductions and employer contributions against future
36.19 contributions from the employer.
36.20 (d) If a salary warrant or check from which a deduction for
36.21 the retirement fund was taken has been canceled or the amount of
36.22 the warrant or if a check has been returned to the funds of the
36.23 employing unit making the payment, a refund of the amount
36.24 deducted, or any portion of it that is required to adjust the
36.25 salary deductions, shall must be made to the employing unit.
36.26 (d) (e) Any erroneous direct payments of member-paid
36.27 contributions or erroneous salary deductions that were not
36.28 refunded in during the regular payroll cycle processing of an
36.29 employing unit's annual summary report shall must be refunded to
36.30 the member with , plus interest computed using the rate and
36.31 method specified in section 354.49, subdivision 2.
36.32 (f) Any refund under this subdivision that would cause the
36.33 plan to fail to be a qualified plan under section 401(a) of the
36.34 Internal Revenue Code, as amended, may not be refunded and
36.35 instead must be credited against future contributions payable by
36.36 the employer. The employer is responsible for refunding to the
37.1 applicable employee any amount that was erroneously deducted
37.2 from the salary of the employee, with interest as specified in
37.3 paragraph (e).
37.4 Sec. 2. Minnesota Statutes 2002, section 354.51,
37.5 subdivision 5, is amended to read:
37.6 Subd. 5. PAYMENT OF SHORTAGES. (a) Except as provided in
37.7 paragraph (b), in the event that full required member
37.8 contributions are not deducted from the salary of a teacher,
37.9 payment shall must be made as follows:
37.10 (a) (1) Payment of shortages in member deductions on salary
37.11 earned after June 30, 1957, and prior to before July 1, 1981,
37.12 may be made any time prior to before retirement. Payment shall
37.13 must include interest at an annual rate of 8.5 percent
37.14 compounded annually from the end of the fiscal year in which the
37.15 shortage occurred to the end of the month in which payment is
37.16 made and the interest shall must be credited to the fund. If
37.17 payment of a shortage in deductions is not made, the formula
37.18 service credit of the member shall must be prorated pursuant to
37.19 under section 354.05, subdivision 25, clause (3).
37.20 (b) (2) Payment of shortages in member deductions on salary
37.21 earned after June 30, 1981, shall be are the sole obligation of
37.22 the employing unit and shall be are payable by the employing
37.23 unit upon notification by the executive director of the shortage
37.24 with interest at an annual rate of 8.5 percent compounded
37.25 annually from the end of the fiscal year in which the shortage
37.26 occurred to the end of the month in which payment is made and
37.27 the interest shall must be credited to the fund. Effective July
37.28 1, 1986, the employing unit shall also pay the employer
37.29 contributions as specified in section 354.42, subdivisions 3 and
37.30 5 for such the shortages. If the shortage payment is not paid
37.31 by the employing unit within 60 days of notification, the
37.32 executive director shall certify the amount of the shortage
37.33 payment to the applicable county auditor, who shall spread a
37.34 levy in the amount of the shortage payment over the taxable
37.35 property of the taxing district of the employing unit if the
37.36 employing unit is supported by property taxes, or to the
38.1 commissioner of finance, who shall deduct the amount from any
38.2 state aid or appropriation amount applicable to the employing
38.3 unit if the employing unit is not supported by property taxes.
38.4 (c) (3) Payment may not be made for shortages in member
38.5 deductions on salary earned prior to before July 1, 1957, for
38.6 shortages in member deductions on salary paid or payable under
38.7 paragraph (b), or for shortages in member deductions for persons
38.8 employed by the Minnesota state colleges and universities system
38.9 in a faculty position or in an eligible unclassified
38.10 administrative position and whose employment was less than 25
38.11 percent of a full academic year, exclusive of the summer
38.12 session, for the applicable institution that exceeds the most
38.13 recent 36 months.
38.14 (b) For a person who is employed by the Minnesota state
38.15 colleges and universities system in a faculty position or in an
38.16 eligible unclassified administrative position and whose
38.17 employment was less than 25 percent of a full academic year,
38.18 exclusive of the summer session, for the applicable institution,
38.19 upon the person's election under section 354B.21 of retirement
38.20 coverage under this chapter, the shortage in member deductions
38.21 on the salary for employment by the Minnesota state colleges and
38.22 universities system institution of less than 25 percent of a
38.23 full academic year, exclusive of the summer session, for the
38.24 applicable institution for the most recent 36 months and the
38.25 associated employer contributions must be paid by the Minnesota
38.26 state colleges and universities system institution, plus annual
38.27 compound interest at the rate of 8.5 percent from the end of the
38.28 fiscal year in which the shortage occurred to the end of the
38.29 month in which the teachers retirement association coverage
38.30 election is made. If the shortage payment is not made by the
38.31 institution within 60 days of notification, the executive
38.32 director shall certify the amount of the shortage payment to the
38.33 commissioner of finance, who shall deduct the amount from any
38.34 state appropriation to the system. An individual electing
38.35 coverage under this paragraph shall repay the amount of the
38.36 shortage in member deductions, plus interest, through deduction
39.1 from salary or compensation payments within the first year of
39.2 employment after the election under section 354B.21, subject to
39.3 the limitations in section 16D.16. The Minnesota state colleges
39.4 and universities system may use any means available to recover
39.5 amounts which were not recovered through deductions from salary
39.6 or compensation payments. No payment of the shortage in member
39.7 deductions under this paragraph may be made for a period longer
39.8 than the most recent 36 months.
39.9 Sec. 3. Minnesota Statutes 2002, section 354B.23,
39.10 subdivision 1, is amended to read:
39.11 Subdivision 1. MEMBER CONTRIBUTION RATE. (a) Except as
39.12 provided in paragraph (b), The member contribution rate for
39.13 participants in the individual retirement account plan is 4.5
39.14 percent of salary.
39.15 (b) For participants in the individual retirement account
39.16 plan who were otherwise eligible to elect retirement coverage in
39.17 the state unclassified employees retirement program, the member
39.18 contribution rate is the rate specified in section 352D.04,
39.19 subdivision 2, paragraph (a).
39.20 Sec. 4. Minnesota Statutes 2002, section 354B.32, is
39.21 amended to read:
39.22 354B.32 TRANSFER OF FUNDS TO IRAP.
39.23 A participant in the individual retirement account plan
39.24 established in this chapter who has less than ten years of
39.25 allowable service under the teachers retirement association or
39.26 the a teachers retirement fund association, whichever applies,
39.27 may elect to transfer an amount equal to the participant's
39.28 accumulated member contributions to the teachers retirement
39.29 association or the applicable teachers retirement fund
39.30 association, plus compound interest at the rate of six percent
39.31 per annum, to the individual retirement account plan. The
39.32 transfers are irrevocable fund to fund fund-to-fund transfers,
39.33 and, in no event, may the participant receive direct payment of
39.34 the money transferred prior to retirement before the termination
39.35 of employment. If a participant elects the contribution
39.36 transfer, all of the participant's allowable and formula service
40.1 credit in the teachers retirement association or the teachers
40.2 retirement fund association associated with the transferred
40.3 amount is forfeited.
40.4 The executive director of the teachers retirement
40.5 association and the chief administrative officers of the
40.6 teachers retirement fund associations, in cooperation with the
40.7 chancellor of the Minnesota state colleges and universities
40.8 system, shall notify participants who are eligible to transfer
40.9 of their right to transfer and the amount that they are eligible
40.10 to transfer, and shall, upon request, provide forms to implement
40.11 the transfer. The chancellor of the Minnesota state colleges
40.12 and universities system shall assist the teachers retirement
40.13 association and the teachers retirement fund associations in
40.14 developing transfer forms and in implementing the transfers.
40.15 Authority to elect a transfer under this section expires on
40.16 July 1, 2004.
40.17 Sec. 5. EFFECTIVE DATE; RETROACTIVE APPLICATION.
40.18 (a) Section 2 is effective on July 1, 2004.
40.19 (b) Section 2 applies to shortages in member deductions
40.20 that occurred before the effective date of the section.
40.21 (c) Sections 1, 3, and 4 are effective on July 1, 2004.
40.22 ARTICLE 6
40.23 REPORTING AND INFORMATION PROVISION
40.24 Section 1. Minnesota Statutes 2002, section 354.07,
40.25 subdivision 9, is amended to read:
40.26 Subd. 9. INFORMATION DISTRIBUTION. All school districts,
40.27 the Minnesota state colleges and universities, community
40.28 colleges and other employers of members of the association are
40.29 obligated to distribute to their employees ballots for the
40.30 election of members to the board of trustees, pamphlets,
40.31 brochures, documents or any other material containing
40.32 association information which are prepared by the executive
40.33 director or the board and are delivered to the employers for
40.34 distribution.
40.35 Sec. 2. Minnesota Statutes 2002, section 354.52,
40.36 subdivision 4a, is amended to read:
41.1 Subd. 4a. MEMBER DATA REPORTING REQUIREMENTS. (a) An
41.2 employing unit must initially provide the member data specified
41.3 in paragraph (b) or any of that data not previously provided to
41.4 the association for payroll warrants dated after June 30, 1995,
41.5 in a format prescribed by the executive director. An employing
41.6 unit must provide the member data specified in paragraph (b) in
41.7 a format prescribed by the executive director. Data changes and
41.8 the dates of those changes under this subdivision must be
41.9 reported to the association in a format prescribed by the
41.10 executive director on an ongoing basis within 14 calendar days
41.11 after the date of the end of the payroll cycle in which they
41.12 occur. These data changes must be reported with the payroll
41.13 cycle data under subdivision 4b.
41.14 (b) Data on the member includes:
41.15 (1) legal name, address, date of birth, association member
41.16 number, employer-assigned employee number, and social security
41.17 number;
41.18 (2) association status, including, but not limited to,
41.19 basic, coordinated, exempt annuitant, exempt technical college
41.20 teacher, and exempt independent contractor or consultant;
41.21 (3) employment status, including, but not limited to, full
41.22 time, part time, intermittent, substitute, or part-time
41.23 mobility;
41.24 (4) employment position, including, but not limited to,
41.25 teacher, superintendent, principal, administrator, or other;
41.26 (5) employment activity, including, but not limited to,
41.27 hire, termination, resumption of employment, disability, or
41.28 death;
41.29 (6) leaves of absence;
41.30 (7) county district number assigned by the association for
41.31 the employing unit;
41.32 (8) data center identification number, if applicable; and
41.33 (9) gender;
41.34 (10) position code; and
41.35 (11) other information as may be required by the executive
41.36 director.
42.1 Sec. 3. Minnesota Statutes 2002, section 354.52, is
42.2 amended by adding a subdivision to read:
42.3 Subd. 4c. MNSCU SERVICE CREDIT REPORTING. For all
42.4 part-time service rendered on or after July 1, 200, the service
42.5 credit reporting requirement in subdivision 4b for all part-time
42.6 employees of the Minnesota state colleges and universities
42.7 system must be met by the Minnesota state colleges and
42.8 universities system reporting to the association on or before
42.9 July 31 of each year the final calculation of each part-time
42.10 member's service credit for the immediately preceding fiscal
42.11 year based on the employee's assignments for the fiscal year.
42.12 Sec. 4. Minnesota Statutes 2002, section 354.52,
42.13 subdivision 6, is amended to read:
42.14 Subd. 6. NONCOMPLIANCE CONSEQUENCES. An employing unit
42.15 that does not comply with the reporting requirements under this
42.16 section shall subdivision 2a, 4a, or 4b must pay a fine of $5
42.17 per calendar day until the association receives the required
42.18 data.
42.19 Sec. 5. EFFECTIVE DATE.
42.20 Sections 1 to 4 are effective on July 1, 2004.
42.21 ARTICLE 7
42.22 RETIREMENT ANNUITY PROVISIONS
42.23 Section 1. Minnesota Statutes 2002, section 353.37, is
42.24 amended by adding a subdivision to read:
42.25 Subd. 1b. RETIREMENT AGE. For purposes of this section,
42.26 "retirement age" means retirement age as defined in United
42.27 States Code, title 42, section 416(l).
42.28 Sec. 2. Minnesota Statutes 2002, section 353.37,
42.29 subdivision 3, is amended to read:
42.30 Subd. 3. REDUCTION OF ANNUITY. The association shall
42.31 reduce the amount of the annuity as follows:
42.32 (a) for of a person who has not reached normal the
42.33 retirement age, by one-half of the amount in excess of the
42.34 applicable reemployment income maximum under subdivision 1;.
42.35 (b) for a person who has reached normal retirement age, but
42.36 has not reached age 70, one-third of the amount in excess of the
43.1 applicable reemployment income maximum under subdivision 1;
43.2 (c) for a person who has reached age 70, or for salary
43.3 earned through service in an elected office, there is no
43.4 reduction upon reemployment, regardless of income.
43.5 There is no reduction upon reemployment, regardless of income,
43.6 for a person who has reached the retirement age.
43.7 Sec. 3. Minnesota Statutes 2002, section 354.44,
43.8 subdivision 4, is amended to read:
43.9 Subd. 4. RETIREMENT ANNUITY ACCRUAL DATE. (a) An annuity
43.10 payment begins to accrue, providing that the age and service
43.11 requirements under subdivision 1 are satisfied, after the
43.12 termination of teaching service, or after the application for
43.13 retirement has been filed with the board, whichever is later, as
43.14 follows:
43.15 (1) on the 16th day of the month of termination or filing
43.16 if the termination or filing occurs on or before the 15th day of
43.17 the month;
43.18 (2) on the first day of the month following the month of
43.19 termination or filing if the termination or filing occurs on or
43.20 after the 16th day of the month;
43.21 (3) on July 1 for all school principals and other
43.22 administrators who receive a full annual contract salary during
43.23 the fiscal year for performance of a full year's contract
43.24 duties; or
43.25 (4) a later date to be either the first or the 16th day of
43.26 a month occurring within the six-month period immediately
43.27 following the termination of teaching service as specified under
43.28 paragraph (b) by the member.
43.29 (b) If an application for retirement is filed with the
43.30 board during the six-month period that occurs immediately
43.31 following the termination of teaching service, the annuity may
43.32 begin to accrue as if the application for retirement had been
43.33 filed with the board on the date teaching service terminated or
43.34 a later date under paragraph (a), clause (4). An annuity must
43.35 not begin to accrue more than one month before the date of final
43.36 salary receipt.
44.1 Sec. 4. EFFECTIVE DATE.
44.2 Sections 1, 2, and 3 are effective on July 1, 2004.
44.3 ARTICLE 8
44.4 DISABILITY BENEFIT PROVISIONS
44.5 Section 1. Minnesota Statutes 2002, section 352.113, is
44.6 amended by adding a subdivision to read:
44.7 Subd. 7a. TEMPORARY REEMPLOYMENT BENEFIT REDUCTION
44.8 WAIVER. A reduction in benefits under subdivision 7, or a
44.9 termination of benefits due to the disabled employee resuming a
44.10 gainful occupation from which earnings are equal to or more than
44.11 the employee's salary at the date of disability or the salary
44.12 currently paid for similar positions does not apply until six
44.13 months after the individual returns to a gainful occupation.
44.14 Sec. 2. Minnesota Statutes 2002, section 352.95,
44.15 subdivision 1, is amended to read:
44.16 Subdivision 1. JOB-RELATED DISABILITY. A covered
44.17 correctional employee who becomes disabled and who is expected
44.18 to be physically or mentally unfit to perform the duties of the
44.19 position for at least one year as a direct result of an injury,
44.20 sickness, or other disability that incurred in or arising arose
44.21 out of any act of duty that makes the employee physically or
44.22 mentally unable to perform the duties, is entitled to a
44.23 disability benefit. The disability benefit may be based on
44.24 covered correctional service only. The benefit amount must
44.25 equal is 50 percent of the average salary defined in section
44.26 352.93, plus an additional percent equal to that specified in
44.27 section 356.315, subdivision 5, for each year of covered
44.28 correctional service in excess of 20 years, ten months, prorated
44.29 for completed months.
44.30 Sec. 3. Minnesota Statutes 2002, section 352.95,
44.31 subdivision 2, is amended to read:
44.32 Subd. 2. NON-JOB-RELATED DISABILITY. Any A covered
44.33 correctional employee who, after rendering at least one year of
44.34 covered correctional service, becomes disabled and who is
44.35 expected to be physically or mentally unfit to perform the
44.36 duties of the position for at least one year because of sickness
45.1 or injury occurring that occurred while not engaged in covered
45.2 employment, is entitled to a disability benefit based on covered
45.3 correctional service only. The disability benefit must be
45.4 computed as provided in section 352.93, subdivisions 1 and 2,
45.5 and must be computed as though the employee had at least 15
45.6 years of covered correctional service.
45.7 Sec. 4. Minnesota Statutes 2002, section 352.95,
45.8 subdivision 4, is amended to read:
45.9 Subd. 4. MEDICAL OR PSYCHOLOGICAL EVIDENCE. (a) An
45.10 applicant shall provide medical or psychological evidence to
45.11 support an application for disability benefits. The director
45.12 shall have the employee examined by at least one additional
45.13 licensed physician or psychologist who is designated by the
45.14 medical adviser. The physicians, or psychologists with respect
45.15 to a mental impairment, shall make written reports to the
45.16 director concerning the question of the employee's disability,
45.17 including medical their expert opinions as to whether the
45.18 employee is disabled within the meaning of this section. The
45.19 director shall also obtain written certification from the
45.20 employer stating whether or not the employee is on sick leave of
45.21 absence because of a disability that will prevent further
45.22 service to the employer, and as a consequence, the employee is
45.23 not entitled to compensation from the employer.
45.24 (b) If, on considering the physicians' or psychologists'
45.25 reports and any other evidence supplied by the employee or
45.26 others, the medical adviser finds the employee disabled within
45.27 the meaning of this section, the advisor shall make appropriate
45.28 recommendation to the director, in writing, together with the
45.29 date from which the employee has been disabled. The director
45.30 shall then determine the propriety of authorizing payment of a
45.31 disability benefit as provided in this section.
45.32 (c) Unless the payment of a disability benefit has
45.33 terminated because the employee is no longer disabled, or
45.34 because the employee has reached either age 65 or the five-year
45.35 anniversary of the effective date of the disability benefit,
45.36 whichever is later, the disability benefit shall must cease with
46.1 the last payment received by the disabled employee or which had
46.2 accrued during the employee's lifetime. While disability
46.3 benefits are paid, the director has the right, at reasonable
46.4 times, to require the disabled employee to submit proof of the
46.5 continuance of the disability claimed. If any examination
46.6 indicates to the medical adviser that the employee is no longer
46.7 disabled, the disability payment must be discontinued upon the
46.8 reinstatement to state service or within 60 days of the finding,
46.9 whichever is sooner.
46.10 Sec. 5. Minnesota Statutes 2002, section 352B.10,
46.11 subdivision 1, is amended to read:
46.12 Subdivision 1. INJURIES,; PAYMENT AMOUNTS. Any A member
46.13 who becomes disabled and who is expected to be physically or
46.14 mentally unfit to perform duties for at least one year as a
46.15 direct result of an injury, sickness, or other disability that
46.16 incurred in or arising arose out of any act of duty, shall is
46.17 entitled to receive disability benefits while disabled. The
46.18 benefits must be paid in monthly installments. The benefit is
46.19 an amount equal to the member's average monthly salary
46.20 multiplied by 60 percent, plus an additional percent equal to
46.21 that specified in section 356.315, subdivision 6, for each year
46.22 and pro rata for completed months of service in excess of 20
46.23 years, if any.
46.24 Sec. 6. Minnesota Statutes 2002, section 352B.10,
46.25 subdivision 2, is amended to read:
46.26 Subd. 2. DISABLED WHILE NOT ON DUTY. If a member
46.27 terminates employment after with at least one year of service
46.28 because of sickness or injury occurring while not on duty and
46.29 not engaged in state work entitling the member to membership,
46.30 and the member becomes disabled and is expected to be physically
46.31 or mentally unfit to perform the duties of the position for at
46.32 least one year because of sickness or injury occurring that
46.33 occurred while not engaged in covered employment, the member
46.34 individual is entitled to disability benefits. The benefit must
46.35 be in the same amount and computed in the same way as if the
46.36 member individual were 55 years old at the date of disability
47.1 and the annuity were paid was payable under section 352B.08. If
47.2 a disability under this clause subdivision occurs after one year
47.3 of service but before 15 years of service, the disability
47.4 benefit must be computed as though the member individual had 15
47.5 years of service.
47.6 Sec. 7. Minnesota Statutes 2002, section 352B.10,
47.7 subdivision 3, is amended to read:
47.8 Subd. 3. ANNUAL AND SICK LEAVE; WORK AT LOWER PAY. No
47.9 member shall is entitled to receive any a disability benefit
47.10 payment when the member has unused annual leave or sick leave,
47.11 or under any other circumstances, when, during the period of
47.12 disability, there has been no impairment of salary. Should If
47.13 the member or former member resume disabilitant resumes gainful
47.14 work employment, the disability benefit must be continued in an
47.15 amount which, when added to current earnings, does not exceed
47.16 the salary rate received of by the person at the date of
47.17 disability as, which must be adjusted over time by the same
47.18 percentage increase in United States average wages used by the
47.19 social security administration in calculating average indexed
47.20 monthly earnings for the old age, survivors, and disability
47.21 insurance programs for the same period.
47.22 Sec. 8. Minnesota Statutes 2002, section 352B.10,
47.23 subdivision 4, is amended to read:
47.24 Subd. 4. PROOF OF DISABILITY. (a) No disability benefit
47.25 payment shall benefits may be made except upon paid unless
47.26 adequate proof is furnished to the executive director of the
47.27 existence of the disability. While disability benefits are
47.28 being paid
47.29 (b) Adequate proof of a disability must include a written
47.30 expert report by a licensed physician, or with respect to a
47.31 mental impairment, by a licensed psychologist.
47.32 (c) Following the commencement of benefit payments,
47.33 the executive director has the right, at reasonable times, to
47.34 require the disabled former member disabilitant to submit proof
47.35 of the continuance of the disability claimed.
47.36 Sec. 9. Minnesota Statutes 2002, section 352B.10,
48.1 subdivision 5, is amended to read:
48.2 Subd. 5. OPTIONAL ANNUITY. A disabled member
48.3 disabilitant may, in lieu of survivorship coverage under section
48.4 352B.11, subdivision 2, choose the normal disability benefit or
48.5 an optional annuity as provided in section 352B.08, subdivision
48.6 3. The choice of an optional annuity must be made in writing,
48.7 on a form prescribed by the executive director, and must be made
48.8 before the commencement of the payment of the disability
48.9 benefit, or within 90 days of attaining before reaching age 65
48.10 or before reaching the five-year anniversary of the effective
48.11 date of the disability benefit, whichever is later. It The
48.12 optional annuity is effective on the date on which the
48.13 disability benefit begins to accrue, or the month following the
48.14 attainment of age 65 or following the five-year anniversary of
48.15 the effective date of the disability benefit, whichever is later.
48.16 Sec. 10. Minnesota Statutes 2002, section 352B.105, is
48.17 amended to read:
48.18 352B.105 TERMINATION OF DISABILITY BENEFITS.
48.19 Disability benefits payable under section 352B.10 shall
48.20 must terminate at on the transfer date, which is the end of the
48.21 month in which the beneficiary disabilitant becomes 65 years old
48.22 or the five-year anniversary of the effective date of the
48.23 disability benefit, whichever is later. If the beneficiary
48.24 disabilitant is still disabled when on the beneficiary becomes
48.25 65 years old transfer date, the beneficiary shall disabilitant
48.26 must be deemed to be a retired member and, if the beneficiary
48.27 disabilitant had chosen an optional annuity under section
48.28 352B.10, subdivision 5, shall must receive an annuity in
48.29 accordance with under the terms of the optional annuity
48.30 previously chosen. If the beneficiary disabilitant had not
48.31 chosen an optional annuity under section 352B.10, subdivision 5,
48.32 the beneficiary disabilitant may then choose to receive either a
48.33 normal retirement annuity computed under section 352B.08,
48.34 subdivision 2, or an optional annuity as provided in section
48.35 352B.08, subdivision 3. An optional annuity must be chosen
48.36 within 90 days of attaining age 65 or reaching the five-year
49.1 anniversary of the effective date of the disability benefit,
49.2 whichever is later transfer date. If an optional annuity is
49.3 chosen, the optional annuity shall begin to accrue accrues on
49.4 the first of the month next following attainment of age 65 or
49.5 the five-year anniversary of the effective transfer date of the
49.6 disability benefit, whichever is later.
49.7 Sec. 11. Minnesota Statutes 2002, section 352D.065,
49.8 subdivision 2, is amended to read:
49.9 Subd. 2. DISABILITY BENEFIT AMOUNT. A participant who
49.10 becomes totally and permanently disabled has the option, even if
49.11 on leave of absence without pay, to receive:
49.12 (1) the value of the participant's total shares;
49.13 (2) the value of one-half of a portion of the total shares
49.14 and an annuity based on the value of one-half remainder of the
49.15 total shares; or
49.16 (3) an annuity based on the value of the participant's
49.17 total shares.
49.18 Sec. 12. Minnesota Statutes 2002, section 353.33,
49.19 subdivision 4, is amended to read:
49.20 Subd. 4. PROCEDURE TO DETERMINE ELIGIBILITY. (a) The
49.21 applicant shall provide an expert report signed by a licensed
49.22 physician, psychologist, or chiropractor and the applicant must
49.23 authorize the release of medical and health care evidence,
49.24 including all medical records and relevant information from any
49.25 source, to support the application for total and permanent
49.26 disability benefits.
49.27 (b) The expert report signed by a licensed chiropractor
49.28 augments the report of another expert and may not be the sole
49.29 basis for the granting of a disability benefit.
49.30 (c) The medical adviser shall verify the medical evidence
49.31 and, if necessary for disability determination, suggest the
49.32 referral of the applicant to specialized medical consultants.
49.33 (d) The association shall also obtain from the employer,
49.34 certification of the member's past public service, dates of paid
49.35 sick leave and vacation beyond the last working day and whether
49.36 or not sick leave or annual leave has been allowed.
50.1 (e) If, upon consideration of the medical evidence received
50.2 and the recommendations of the medical adviser, it is determined
50.3 by the executive director that the applicant is totally and
50.4 permanently disabled within the meaning of the law, the
50.5 association shall grant the person a disability benefit. The
50.6 fact that
50.7 (f) An employee who is placed on leave of absence without
50.8 compensation because of disability does is not bar the person
50.9 barred from receiving a disability benefit.
50.10 Sec. 13. Minnesota Statutes 2002, section 353.33,
50.11 subdivision 6, is amended to read:
50.12 Subd. 6. CONTINUING ELIGIBILITY FOR BENEFITS. The
50.13 association shall determine eligibility for continuation of
50.14 disability benefits and require periodic examinations and
50.15 evaluations of disabled members as frequently as deemed
50.16 necessary. The association shall require the disabled member to
50.17 provide an expert report signed by a licensed physician,
50.18 psychologist, or chiropractor and the disabled member shall
50.19 authorize the release of medical and health care evidence,
50.20 including all medical and health care records and information
50.21 from any source, relating to an application for continuation of
50.22 disability benefits. The expert report signed by a licensed
50.23 chiropractor augments the report of another expert and may not
50.24 be the sole basis for continuing a disability benefit.
50.25 Disability benefits are contingent upon a disabled person's
50.26 participation in a vocational rehabilitation program evaluation
50.27 if the executive director determines that the disabled person
50.28 may be able to return to a gainful occupation. If a member is
50.29 found to be no longer totally and permanently disabled, payments
50.30 must cease the first of the month following the expiration of a
50.31 30-day period after the member receives a certified letter
50.32 notifying the member that payments will cease.
50.33 Sec. 14. Minnesota Statutes 2002, section 353.33,
50.34 subdivision 6b, is amended to read:
50.35 Subd. 6b. DUTIES OF THE MEDICAL ADVISER. At the request
50.36 of the executive director, the medical adviser shall designate
51.1 licensed physicians, psychologists, or chiropractors to examine
51.2 applicants for disability benefits and review the medical expert
51.3 reports based upon these examinations to determine whether an
51.4 applicant is totally and permanently disabled as defined in
51.5 section 353.01, subdivision 19, disabled as defined in section
51.6 353.656, or eligible for continuation of disability benefits
51.7 under subdivision 6. The medical examiner shall also review, at
51.8 the request of the executive director, all medical and health
51.9 care statements on behalf of an applicant for disability
51.10 benefits, and shall report in writing to the executive
51.11 director the conclusions and recommendations of the examiner on
51.12 those matters referred for advice.
51.13 Sec. 15. Minnesota Statutes 2002, section 353.33,
51.14 subdivision 7, is amended to read:
51.15 Subd. 7. PARTIAL REEMPLOYMENT. If, following a work or
51.16 non-work-related injury or illness, a disabled person resumes a
51.17 gainful occupation from which who remains totally and
51.18 permanently disabled as defined in section 353.01, subdivision
51.19 19, has income from employment that is not substantial gainful
51.20 activity and the rate of earnings from that employment are less
51.21 than the salary rate at the date of disability or the
51.22 salary rate currently paid for similar positions similar to the
51.23 employment position held by the disabled person immediately
51.24 before becoming disabled, whichever is greater, the board
51.25 executive director shall continue the disability benefit in an
51.26 amount that, when added to the earnings and any workers'
51.27 compensation benefit, does not exceed the salary rate at the
51.28 date of disability or the salary currently paid for similar
51.29 positions similar to the employment position held by the
51.30 disabled person immediately before becoming disabled, whichever
51.31 is higher, provided. The disability benefit does under this
51.32 subdivision may not exceed the disability benefit originally
51.33 allowed, plus any postretirement adjustments payable after
51.34 December 31, 1988, in accordance with section 11A.18,
51.35 subdivision 10. No deductions for the retirement fund may be
51.36 taken from the salary of a disabled person who is receiving a
52.1 disability benefit as provided in this subdivision.
52.2 Sec. 16. Minnesota Statutes 2002, section 353.33, is
52.3 amended by adding a subdivision to read:
52.4 Subd. 7a. TRIAL WORK PERIOD. (a) If, following a work or
52.5 non-work related injury or illness, a disabled member attempts
52.6 to return to work for their previous public employer or attempts
52.7 to return to a similar position with another public employer, on
52.8 a full-time or less than full-time basis, the Public Employees
52.9 Retirement Association shall continue paying the disability
52.10 benefit for a period not to exceed six months. The disability
52.11 benefit must continue in an amount that, when added to the
52.12 subsequent employment earnings and workers' compensation
52.13 benefit, does not exceed the salary at the date of disability or
52.14 the salary currently paid for similar positions, whichever is
52.15 higher.
52.16 (b) No deductions for the retirement fund may be taken from
52.17 the salary of a disabled person who is attempting to return to
52.18 work under this provision unless the member waives further
52.19 disability benefits.
52.20 (c) A member only may return to employment and continue
52.21 disability benefit payments once while receiving disability
52.22 benefits from a plan administered by the Public Employees
52.23 Retirement Association.
52.24 Sec. 17. Minnesota Statutes 2002, section 353.656,
52.25 subdivision 5, is amended to read:
52.26 Subd. 5. PROOF OF DISABILITY. (a) A disability benefit
52.27 payment must not be made except upon adequate proof furnished to
52.28 the executive director of the association of the existence of
52.29 such disability, and during the time when disability benefits
52.30 are being paid, the executive director of the association has
52.31 the right, at reasonable times, to require the disabled member
52.32 to submit proof of the continuance of the disability claimed.
52.33 (b) Adequate proof of a disability must include a written
52.34 expert report by a licensed physician, or with respect to a
52.35 mental impairment, by a licensed psychologist.
52.36 (c) A person applying for or receiving a disability benefit
53.1 shall provide or authorize release of medical evidence,
53.2 including all medical records and information from any source,
53.3 relating to an application for disability benefits.
53.4 Sec. 18. Minnesota Statutes 2002, section 354.48,
53.5 subdivision 2, is amended to read:
53.6 Subd. 2. APPLICATIONS; ACCRUAL. (a) A person described
53.7 in subdivision 1, or another person authorized to act on behalf
53.8 of the person, may make written application on a form prescribed
53.9 by the executive director for a total and permanent disability
53.10 benefit only within the 18-month period following the
53.11 termination of teaching service. This
53.12 (b) The benefit accrues from the day following the
53.13 commencement of the disability or the day following the last day
53.14 for which salary is paid, whichever is later, but does not begin
53.15 to accrue more than six months before the date on which the
53.16 written application is filed with the executive director. If
53.17 salary is being received for either annual or sick leave during
53.18 the disability period, payments accrue the disability benefit
53.19 accrues from the day following the last day for which this
53.20 salary is paid.
53.21 Sec. 19. Minnesota Statutes 2002, section 354.48,
53.22 subdivision 4, is amended to read:
53.23 Subd. 4. DETERMINATION BY THE EXECUTIVE DIRECTOR. The
53.24 executive director shall have the member examined by at least
53.25 two licensed physicians or licensed psychologists selected by
53.26 the medical adviser. These physicians, or psychologists with
53.27 respect to a mental impairment, shall make written reports to
53.28 the executive director concerning the member's disability,
53.29 including medical expert opinions as to whether or not the
53.30 member is permanently and totally disabled within the meaning of
53.31 section 354.05, subdivision 14. The executive director shall
53.32 also obtain written certification from the last employer stating
53.33 whether or not the member was separated from service because of
53.34 a disability which would reasonably prevent further service to
53.35 the employer and as a consequence the member is not entitled to
53.36 compensation from the employer. If, upon the consideration of
54.1 the reports of the physicians or psychologists and any other
54.2 evidence presented by the member or by others interested
54.3 therein, the executive director finds that the member is totally
54.4 and permanently disabled, the executive director shall grant the
54.5 member a disability benefit. The fact that An employee who is
54.6 placed on leave of absence without compensation because of
54.7 disability shall is not bar the member barred from receiving a
54.8 disability benefit.
54.9 Sec. 20. Minnesota Statutes 2002, section 354.48,
54.10 subdivision 6, is amended to read:
54.11 Subd. 6. REGULAR PHYSICAL EXAMINATIONS. At least once
54.12 each year during the first five years following the allowance of
54.13 a disability benefit to any member, and at least once in every
54.14 three-year period thereafter, the executive director shall
54.15 require the disability beneficiary to undergo a medical
54.16 examination by a physician or physicians, or by one or more
54.17 psychologists with respect to a mental impairment, engaged by
54.18 the executive director. If any an examination indicates that
54.19 the member is no longer permanently and totally disabled or that
54.20 the member is engaged or is able to engage in a substantial
54.21 gainful occupation, payments of the disability benefit by the
54.22 association shall must be discontinued. The payments shall
54.23 discontinue must be discontinued as soon as the member is
54.24 reinstated to the payroll following sick leave, but payment may
54.25 not be made for more than 60 days after the physicians or
54.26 psychologists engaged by the executive director find that the
54.27 person is no longer permanently and totally disabled.
54.28 Sec. 21. Minnesota Statutes 2002, section 354.48,
54.29 subdivision 6a, is amended to read:
54.30 Subd. 6a. MEDICAL ADVISER; DUTIES. The state
54.31 commissioner of health or a licensed physician on the staff of
54.32 the department of health who is designated by the commissioner
54.33 shall be the medical adviser of the executive director. The
54.34 medical adviser shall designate licensed physicians, or licensed
54.35 psychologists with respect to a mental impairment, who shall
54.36 examine applicants for disability benefits. The medical adviser
55.1 shall pass upon all medical expert reports based on any
55.2 examinations performed in order to determine whether a teacher
55.3 is totally and permanently disabled as defined in section
55.4 354.05, subdivision 14. The medical adviser shall also
55.5 investigate all health and medical statements and certificates
55.6 by or on behalf of a teacher in connection with a disability
55.7 benefit, and shall report in writing to the director setting
55.8 forth any conclusions and recommendations on all matters
55.9 referred to the medical adviser.
55.10 Sec. 22. Minnesota Statutes 2002, section 354A.36,
55.11 subdivision 4, is amended to read:
55.12 Subd. 4. DETERMINATION OF DISABILITY. The board of the
55.13 teachers retirement fund association shall make the final
55.14 determination of the existence of a permanent and total
55.15 disability. The board shall have the coordinated member
55.16 examined by at least two licensed physicians or licensed
55.17 psychologists who shall be are selected by the board. After
55.18 making any required examinations, each physician, or
55.19 psychologist with respect to a mental impairment, shall make a
55.20 written report to the board concerning the coordinated member,
55.21 which shall include a statement of the physician's or
55.22 psychologist's medical expert opinion as to whether or not the
55.23 member is permanently and totally disabled within the meaning of
55.24 section 354A.011, subdivision 14. The board shall also obtain a
55.25 written statement from the school district employer as to
55.26 whether or not the coordinated member was terminated or
55.27 separated from active employment due to a disability which is
55.28 deemed by the district employer to reasonably prevent further
55.29 service by the member to the district employer and which caused
55.30 the coordinated member not to be entitled to further
55.31 compensation from the district employer for services rendered by
55.32 the member. If, after consideration of the reports of the
55.33 physicians, or psychologists with respect to a mental
55.34 impairment, and any evidence presented by the member or by any
55.35 other interested parties, the board determines that the
55.36 coordinated member is totally and permanently disabled within
56.1 the meaning of section 354A.011, subdivision 14, it shall grant
56.2 the coordinated member a disability benefit. The fact that A
56.3 member has been who is placed on a leave of absence without
56.4 compensation as a result of the disability shall is not operate
56.5 to bar barred a coordinated member from receiving a disability
56.6 benefit under this section.
56.7 Sec. 23. Minnesota Statutes 2002, section 354A.36,
56.8 subdivision 6, is amended to read:
56.9 Subd. 6. REQUIREMENT FOR REGULAR PHYSICAL EXAMINATIONS.
56.10 At least once each year during the first five years following
56.11 the granting of a disability benefit to a coordinated member by
56.12 the board and at least once in every three year period
56.13 thereafter, the board shall require the disability benefit
56.14 recipient to undergo a medical expert examination as a condition
56.15 for continued entitlement of the benefit recipient to receive a
56.16 disability benefit. The medical expert examination shall must
56.17 be made at the place of residence of the disability benefit
56.18 recipient or at any other place mutually agreeable to the
56.19 disability benefit recipient and the board. The medical expert
56.20 examination shall must be made by a physician or physicians or
56.21 by one or more psychologists engaged by the board. The
56.22 physician or physicians, or the psychologist or psychologists
56.23 with respect to a mental impairment, conducting the medical
56.24 expert examination shall make a written report to the board
56.25 concerning the disability benefit recipient and the recipient's
56.26 disability, including a statement of the physician's or
56.27 psychologist's medical expert opinion as to whether or not the
56.28 member remains permanently and totally disabled within the
56.29 meaning of section 354A.011, subdivision 14. If the board
56.30 determines from consideration of the physician's written medical
56.31 expert examination report of the physician or of the
56.32 psychologist with respect to a mental impairment that the
56.33 disability benefit recipient is no longer permanently and
56.34 totally disabled or if the board determines that the benefit
56.35 recipient is engaged or is able to engage in a gainful
56.36 occupation, unless the disability benefit recipient is partially
57.1 employed pursuant to under subdivision 7, then further
57.2 disability benefit payments from the fund shall must be
57.3 discontinued. The discontinuation of disability benefits shall
57.4 must occur immediately if the disability recipient is reinstated
57.5 to the district payroll following sick leave and within 60 days
57.6 of the determination by the board following the medical expert
57.7 examination and report of the physician or physicians or
57.8 psychologist or psychologists engaged by the board that the
57.9 disability benefit recipient is no longer permanently and
57.10 totally disabled within the meaning of section 354A.011,
57.11 subdivision 14.
57.12 Sec. 24. Minnesota Statutes 2002, section 422A.18,
57.13 subdivision 1, is amended to read:
57.14 Subdivision 1. MEDICAL EXPERT EXAMINATION. (a) Upon the
57.15 application of the head of the department in which a
57.16 contributing employee is employed, or upon the application of
57.17 the contributing employee or of one acting in the employee's
57.18 behalf, the retirement board shall place the contributor on
57.19 disability, provided and pay the person a disability allowance
57.20 under this section if the medical board, after a medical an
57.21 expert examination of the contributor made at the place of
57.22 residence of the contributor or at a place mutually agreed upon,
57.23 shall certify to the retirement board that the contributor is
57.24 physically or mentally incapacitated for the performance of
57.25 further service to the city and recommend that the contributor
57.26 be placed on disability.
57.27 (b) The medical board shall consist of the city physician,
57.28 a physician or licensed psychologist to be selected by the
57.29 retirement board, and a physician or licensed psychologist to be
57.30 selected by the employee.
57.31 (c) Disability of an employee resulting from injury or
57.32 illness received in the performance of the duties of the city
57.33 service shall be defined as duty disability.
57.34 (d) Disability incurred as a result of injury or illness
57.35 not connected with the performance of such service shall be
57.36 defined as nonduty disability. In order to be entitled to a
58.1 retirement allowance for a nonduty disability an employee shall
58.2 have rendered five or more years of service to the city.
58.3 Sec. 25. Minnesota Statutes 2002, section 422A.18,
58.4 subdivision 4, is amended to read:
58.5 Subd. 4. ADDITIONAL MEDICAL EXAMINATIONS. (a) Once each
58.6 year, the retirement board may require any disability
58.7 beneficiary while still under the established age for retirement
58.8 to undergo medical an expert examination by a physician or one
58.9 or more physicians or one or more licensed psychologists
58.10 designated by the retirement board,. The examination to must be
58.11 made at the place of residence of the beneficiary or other place
58.12 mutually agreed upon. Should
58.13 (b) If the medical board report and certify certifies to
58.14 the retirement board that such the disability beneficiary is no
58.15 longer physically or mentally incapacitated for the performance
58.16 of duty, the beneficiary's allowance shall must be discontinued
58.17 and the head of the department in which the beneficiary was
58.18 employed at the time of retirement shall, upon notification by
58.19 the retirement board of the report of the medical board,
58.20 reemploy the beneficiary at a rate of salary not less than the
58.21 amount of the disability allowance, but.
58.22 (c) After the expiration of five years subsequent to the
58.23 retirement of such the beneficiary, the restoration to duty,
58.24 notwithstanding the recommendation of the medical board, shall
58.25 be is optional with the head of the department. Should If any
58.26 disability beneficiary while under the established age for
58.27 retirement refuse refuses to submit to at least one
58.28 medical expert examination in any year by a physician or one or
58.29 more physicians or one or more licensed psychologists designated
58.30 by the medical board, the allowance shall must be discontinued
58.31 until the withdrawal of such refusal, and should such refusal
58.32 continue for one year, all the beneficiary's rights in and to
58.33 any retirement or disability allowance shall be are forfeited.
58.34 Sec. 26. Minnesota Statutes 2002, section 423B.09,
58.35 subdivision 4, is amended to read:
58.36 Subd. 4. CERTIFICATE OF PHYSICIANS REQUIRED. (a) No
59.1 member is entitled to a pension under subdivision 1, paragraph
59.2 (b) or (c), except upon the certificate of two or more
59.3 physicians or, surgeons, licensed psychologists, or a
59.4 combination of experts chosen by the governing board. This
59.5 certificate must set forth the cause, nature, and extent of the
59.6 disability, disease, or injury of the member.
59.7 (b) No active member may be awarded, granted, or paid a
59.8 disability pension under subdivision 1, paragraph (c), unless
59.9 the certificate states that the disability, disease, or injury
59.10 was incurred or sustained by the member while in the service of
59.11 the police department of the city. The certificate must be
59.12 filed with the secretary of the association.
59.13 Sec. 27. Minnesota Statutes 2002, section 423C.05,
59.14 subdivision 4, is amended to read:
59.15 Subd. 4. TEMPORARY DISABILITY PENSION. (a) An active
59.16 member who, by sickness or accident, becomes temporarily
59.17 disabled from performing firefighter duties for the fire
59.18 department shall be is entitled to a temporary disability
59.19 pension.
59.20 (b) No allowance for disability shall may be made unless
59.21 notice of the disability and an application for benefits is made
59.22 by or on behalf of the disabled member within 90 days after the
59.23 beginning of the disability. This application shall must
59.24 include a certificate from a qualified medical professional
59.25 expert setting forth the cause, nature, and extent of the
59.26 disability. This certificate must also conclude that the
59.27 disability was incurred or sustained while the member was in the
59.28 service of the fire department.
59.29 (c) The board shall utilize the board of examiners
59.30 established pursuant to under section 423C.03, subdivision 6, to
59.31 investigate and report on an application for benefits pursuant
59.32 to under this section and to make recommendations as to
59.33 eligibility and the benefit amount to be paid.
59.34 (d) A member entitled to a disability pension shall must
59.35 receive benefits in the amount and manner determined by the
59.36 board.
60.1 Sec. 28. Minnesota Statutes 2002, section 423C.05,
60.2 subdivision 5, is amended to read:
60.3 Subd. 5. SERVICE-RELATED PERMANENT DISABILITY PENSION.
60.4 An active member who becomes permanently disabled as the result
60.5 of a service-related disease or injury shall is, upon
60.6 application and approval of the board, be entitled to a pension
60.7 of 41 units or in the amount determined under subdivision 8.
60.8 The application for service-related permanent disability shall
60.9 must include a certificate from a qualified medical professional
60.10 expert setting forth the permanent nature of the disability or
60.11 disease and that it was service related.
60.12 Sec. 29. Minnesota Statutes 2002, section 423C.05,
60.13 subdivision 6, is amended to read:
60.14 Subd. 6. NON-SERVICE-RELATED PERMANENT DISABILITY
60.15 PENSION. An active member who, by sickness or accident, becomes
60.16 permanently disabled and unable to perform firefighter duties
60.17 for the fire department due to non-service-related disease or
60.18 injury shall be is entitled to a permanent disability pension.
60.19 No allowance for disability shall may be made unless notice of
60.20 the disability and an application for benefits is made by or on
60.21 behalf of the disabled member within 90 days after the beginning
60.22 of the disability. This application shall must include a
60.23 certificate from a qualified medical professional setting forth
60.24 the cause, nature, and extent of the disability. A member
60.25 entitled to a disability pension under this subdivision shall
60.26 must receive benefits in the amount and manner determined by the
60.27 board, not to exceed 41 units.
60.28 Sec. 30. Minnesota Statutes 2002, section 423C.05, is
60.29 amended by adding a subdivision to read:
60.30 Subd. 6a. QUALIFIED EXPERT. A qualified expert includes
60.31 a licensed physician, or in the case of mental impairment,
60.32 includes a licensed psychologist.
60.33 Sec. 31. REPEALER.
60.34 (a) Minnesota Statutes 2002, sections 353.33, subdivision
60.35 5b; and 490.11, are repealed on July 1, 2004.
60.36 (b) Sections 1 and 16 are repealed on July 1, 2006.
61.1 Sec. 32. EFFECTIVE DATE.
61.2 Sections 1 to 31 are effective on July 1, 2004.
61.3 ARTICLE 9
61.4 DEATH AND SURVIVOR BENEFITS AND REFUNDS
61.5 Section 1. Minnesota Statutes 2002, section 3A.03,
61.6 subdivision 2, is amended to read:
61.7 Subd. 2. REFUND. (a) Any A former member who has made
61.8 contributions under subdivision 1 and who is no longer a member
61.9 of the legislature is entitled to receive, upon written
61.10 application to the executive director on a form prescribed by
61.11 the executive director, a refund of all contributions credited
61.12 to the member's account with interest at an annual rate of six
61.13 percent compounded annually computed as provided in section
61.14 352.22, subdivision 2.
61.15 (b) The refund of contributions as provided in paragraph (a)
61.16 terminates all rights of a former member of the legislature or
61.17 and the survivors of the former member under this chapter.
61.18 (c) If the former member of the legislature again becomes a
61.19 member of the legislature after having taken a refund as
61.20 provided in paragraph (a), the member must be considered a new
61.21 member of this plan. However, a new the member may reinstate
61.22 the rights and credit for service previously forfeited if the
61.23 new member repays all refunds taken plus interest at an annual
61.24 rate of 8.5 percent compounded annually from the date on which
61.25 the refund was taken to the date on which the refund is repaid.
61.26 (c) (d) No person may be required to apply for or to accept
61.27 a refund.
61.28 Sec. 2. Minnesota Statutes 2002, section 352.12,
61.29 subdivision 1, is amended to read:
61.30 Subdivision 1. DEATH BEFORE TERMINATION OF SERVICE. If
61.31 an employee dies before state service has terminated and neither
61.32 a survivor annuity nor a reversionary annuity is payable on
61.33 behalf of the employee, or if a former employee who has
61.34 sufficient service credit to be entitled to an annuity dies
61.35 before the benefit annuity has become payable, the director
61.36 shall make a refund with interest is payable upon filing a
62.1 written application on a form prescribed by the executive
62.2 director. The refund is payable to the last designated
62.3 beneficiary or, if there is none, to the surviving spouse or, if
62.4 none, to the employee's surviving children in equal shares or,
62.5 if none, to the employee's surviving parents in equal shares or,
62.6 if none, to the representative of the estate in an amount equal
62.7 to the accumulated employee contributions plus interest at the
62.8 rate of six percent per annum compounded annually. Interest
62.9 must be computed as provided in section 352.22, subdivision 2,
62.10 to the first day of the month in which the refund is processed.
62.11 Upon the death of an employee who has received a refund that was
62.12 later repaid in full, interest must be paid on the repaid refund
62.13 only from the date of the repayment. If the repayment was made
62.14 in installments, interest must be paid only from the date on
62.15 which the installment payments began. The designated
62.16 beneficiary, the surviving spouse, or the representative of the
62.17 estate of an employee who had received a disability benefit is
62.18 not entitled to the payment of interest upon any balance
62.19 remaining to the decedent's credit in the fund at the time of
62.20 death, unless the death occurred before any payment could be
62.21 negotiated.
62.22 Sec. 3. Minnesota Statutes 2002, section 352.12,
62.23 subdivision 6, is amended to read:
62.24 Subd. 6. DEATH AFTER SERVICE TERMINATION. Except as
62.25 provided in subdivision 1, if a former employee covered by the
62.26 system dies and who has not received an annuity, a retirement
62.27 allowance, or a disability benefit dies, a refund must be made
62.28 is payable to the last designated beneficiary or, if there is
62.29 none, to the surviving spouse or, if none, to the employee's
62.30 surviving children in equal shares or, if none, to the
62.31 employee's surviving parents in equal shares or, if none, to the
62.32 representative of the estate in an amount equal to accumulated
62.33 employee contributions plus interest. The refund must include
62.34 interest at the rate of six percent per year compounded
62.35 annually. The interest on the refund must be computed as
62.36 provided in section 352.22, subdivision 2.
63.1 Sec. 4. Minnesota Statutes 2002, section 352.22,
63.2 subdivision 2, is amended to read:
63.3 Subd. 2. AMOUNT OF REFUND. Except as provided in
63.4 subdivision 3, the refund payable to a person who ceased to be a
63.5 state employee by reason of a termination of state service is in
63.6 an amount equal to employee accumulated contributions plus
63.7 interest at the rate of six percent per year compounded annually
63.8 daily from the date that the contribution was made until the
63.9 date on which the refund is paid. Included with the refund is
63.10 any interest paid as part of repayment of a past refund, plus
63.11 interest thereon from the date of repayment. Interest must be
63.12 computed to the first day of the month in which the refund is
63.13 processed and must be based on fiscal year or monthly balances,
63.14 whichever applies.
63.15 Sec. 5. Minnesota Statutes 2002, section 352.22,
63.16 subdivision 3, is amended to read:
63.17 Subd. 3. DEFERRED ANNUITY. (a) An employee who has at
63.18 least three years of allowable service when termination occurs
63.19 may elect to leave the accumulated contributions in the fund and
63.20 thereby be entitled to a deferred retirement annuity. The
63.21 annuity must be computed under the law in effect when state
63.22 service terminated, on the basis of the allowable service
63.23 credited to the person before the termination of service.
63.24 (b) An employee on layoff or on leave of absence without
63.25 pay, except a leave of absence for health reasons, and who does
63.26 not return to state service shall must have an annuity, deferred
63.27 annuity, or other benefit to which the employee may become
63.28 entitled computed under the law in effect on the employee's last
63.29 working day.
63.30 (c) No application for a deferred annuity may be made more
63.31 than 60 days before the time the former employee reaches the
63.32 required age for entitlement to the payment of the annuity. The
63.33 deferred annuity begins to accrue no earlier than 60 days before
63.34 the date the application is filed in the office of the system,
63.35 but not (1) before the date on which the employee reaches the
63.36 required age for entitlement to the annuity nor (2) before the
64.1 day following the termination of state service in a
64.2 position which is not covered by the retirement system.
64.3 (d) Application for the accumulated contributions left on
64.4 deposit with the fund may be made at any time after 30 days
64.5 following the date of the termination of service.
64.6 Sec. 6. Minnesota Statutes 2002, section 352B.10,
64.7 subdivision 5, is amended to read:
64.8 Subd. 5. OPTIONAL ANNUITY. A disabled member
64.9 disabilitant may elect, in lieu of spousal survivorship coverage
64.10 under section 352B.11, subdivision 2 subdivisions 2b and
64.11 2c, choose the normal disability benefit or an optional annuity
64.12 as provided in section 352B.08, subdivision 3. The choice of an
64.13 optional annuity must be made before the commencement of the
64.14 payment of the disability benefit, or within 90 days of
64.15 attaining before reaching age 65 or reaching the five-year
64.16 anniversary of the effective date of the disability benefit,
64.17 whichever is later. It The optional annuity is effective on the
64.18 date on which the disability benefit begins to accrue, or the
64.19 month following attainment of age 65 or the five-year
64.20 anniversary of the effective date of the disability benefit,
64.21 whichever is later.
64.22 Sec. 7. Minnesota Statutes 2002, section 352B.11,
64.23 subdivision 1, is amended to read:
64.24 Subdivision 1. REFUND OF PAYMENTS. (a) A member who has
64.25 not received other benefits under this chapter is entitled to a
64.26 refund of payments made by salary deduction, plus interest, if
64.27 the member is separated, either voluntarily or involuntarily,
64.28 from the state service that entitled the member to membership.
64.29 (b) In the event of the member's death, if there are no
64.30 survivor benefits payable under this chapter, a refund plus
64.31 interest is payable to the last designated beneficiary on a form
64.32 filed with the director before death, or if no designation is
64.33 filed, the refund is payable to the member's estate. Interest
64.34 under this subdivision must be computed at the rate of six
64.35 percent a year, compounded annually calculated as provided in
64.36 section 352.22, subdivision 2. To receive a refund, the
65.1 application must be made on a form prescribed by the executive
65.2 director.
65.3 Sec. 8. Minnesota Statutes 2002, section 352B.11,
65.4 subdivision 2, is amended to read:
65.5 Subd. 2. DEATH; PAYMENT TO SPOUSE AND DEPENDENT CHILDREN;
65.6 FAMILY MAXIMUMS. If a member serving actively as a member, or a
65.7 member or former member receiving the disability benefit before
65.8 attaining age 65 or reaching the five-year anniversary of the
65.9 effective date of the disability benefit, whichever is later,
65.10 provided by section 352B.10, subdivisions 1 and 2, dies from any
65.11 cause before attaining age 65 or reaching the five-year
65.12 anniversary of the effective date of the disability benefit,
65.13 whichever is later, the surviving spouse and dependent children
65.14 are entitled to benefit payments as follows:
65.15 (a) A member with at least three years of allowable service
65.16 is deemed to have elected a 100 percent joint and survivor
65.17 annuity payable to a surviving spouse only on or after the date
65.18 the member or former member became or would have become 55.
65.19 (b) The surviving spouse of a member who had credit for
65.20 less than three years of service shall receive, for life, a
65.21 monthly annuity equal to 50 percent of that part of the average
65.22 monthly salary of the member from which deductions were made for
65.23 retirement.
65.24 (c) The surviving spouse of a member who had credit for at
65.25 least three years service and who died after becoming 55 years
65.26 old, may elect to receive a 100 percent joint and survivor
65.27 annuity, for life, notwithstanding a subsequent remarriage, in
65.28 lieu of the annuity prescribed in paragraph (b).
65.29 (d) The surviving spouse of any member who had credit for
65.30 three years or more and who was not 55 years old at death, shall
65.31 receive the benefit equal to 50 percent of the average monthly
65.32 salary as described in clause (b) until the deceased member
65.33 would have become 55 years old, and beginning the first of the
65.34 month following that date, may elect to receive the 100 percent
65.35 joint and survivor annuity.
65.36 (e) Each dependent child, as defined in section 352B.01,
66.1 subdivision 10, shall is entitled to receive a monthly annuity
66.2 equal to ten percent of that part of the average monthly salary
66.3 of the former deceased member from which deductions were made
66.4 for retirement. A dependent child over 18 and under 23 years of
66.5 age also may receive the monthly benefit provided in this
66.6 section, if the child is continuously attending an accredited
66.7 school as a full-time student during the normal school year as
66.8 determined by the director. If the child does not continuously
66.9 attend school, but separates from full-time attendance during
66.10 any part of a school year, the annuity shall must cease at the
66.11 end of the month of separation. In addition, a payment of $20
66.12 per month shall must be prorated equally to surviving dependent
66.13 children when the former member is survived by one or more
66.14 dependent children. Payments for the benefit of any qualified
66.15 dependent child must be made to the surviving spouse, or if
66.16 there is none, to the legal guardian of the child. The maximum
66.17 monthly benefit for any one family, including a surviving spouse
66.18 benefit, if applicable, must not be less than 50 percent nor
66.19 exceed 70 percent of the average monthly salary for any number
66.20 of children of the deceased member.
66.21 (f) If the member dies under circumstances that entitle the
66.22 surviving spouse and dependent children to receive benefits
66.23 under the workers' compensation law, the workers' compensation
66.24 benefits received by them must not be deducted from the benefits
66.25 payable under this section.
66.26 (g) The surviving spouse of a deceased former member who
66.27 had credit for three or more years of allowable service, but not
66.28 the spouse of a former member receiving a disability benefit
66.29 under section 352B.10, subdivision 2, is entitled to receive the
66.30 100 percent joint and survivor annuity at the time the deceased
66.31 member would have become 55 years old. If a former member dies
66.32 who does not qualify for other benefits under this chapter, the
66.33 surviving spouse or, if none, the children or heirs are entitled
66.34 to a refund of the accumulated deductions left in the fund plus
66.35 interest at the rate of six percent per year compounded annually.
66.36 Sec. 9. Minnesota Statutes 2002, section 352B.11, is
67.1 amended by adding a subdivision to read:
67.2 Subd. 2b. SURVIVING SPOUSE BENEFIT ELIGIBILITY. (a) If
67.3 an active member with three or more years of allowable service
67.4 dies before attaining age 55, the surviving spouse is entitled
67.5 to the benefit specified in subdivision 2c, paragraph (b).
67.6 (b) If an active member with less than three years of
67.7 allowable service dies at any age, the surviving spouse is
67.8 entitled to receive the benefit specified in subdivision 2c,
67.9 paragraph (c).
67.10 (c) If an active member with three or more years of
67.11 allowable service dies on or after attaining exact age 55, the
67.12 surviving spouse is entitled to receive the benefits specified
67.13 in subdivision 2c, paragraph (d).
67.14 (d) If a disabilitant dies while receiving a disability
67.15 benefit under section 352B.10 or before the benefit under that
67.16 section commenced, and an optional annuity was not elected under
67.17 section 352B.10, subdivision 5, the surviving spouse is entitled
67.18 to receive the benefit specified in subdivision 2c, paragraph
67.19 (b).
67.20 (e) If a former member with three or more years of
67.21 allowable service, who terminated from service and has not
67.22 received a refund or commenced receipt of any other benefit
67.23 provided by this chapter, dies, the surviving spouse is entitled
67.24 to receive the benefit specified in subdivision 2c, paragraph
67.25 (e).
67.26 (f) If a former member with less than three years of
67.27 allowable service, who terminated from service and has not
67.28 received a refund or commenced receipt of any other benefit, if
67.29 applicable, provided by this chapter, dies, the surviving spouse
67.30 is entitled to receive the refund specified in subdivision 2c,
67.31 paragraph (f).
67.32 Sec. 10. Minnesota Statutes 2002, section 352B.11, is
67.33 amended by adding a subdivision to read:
67.34 Subd. 2c. SURVIVING SPOUSE BENEFIT ENTITLEMENTS. (a) A
67.35 surviving spouse specified in subdivision 2b is eligible to
67.36 receive, following the filing of a valid application and
68.1 consistent with any other applicable requirements, a benefit as
68.2 specified in this subdivision. A 100 percent joint and survivor
68.3 annuity under paragraph (b) must be computed assuming the exact
68.4 age 55 for the deceased and the age of the surviving spouse on
68.5 the date of death. A 100 percent joint and survivor annuity
68.6 under paragraph (d) or (e) must be computed using the age of the
68.7 deceased on the date of death and the age of the surviving
68.8 spouse on that same date.
68.9 (b) For a surviving spouse specified in subdivision 2b,
68.10 paragraph (a) or (d), the surviving spouse benefit is a benefit
68.11 for life equal to 50 percent of the average monthly salary of
68.12 the deceased member. On the first of the month next following
68.13 the date on which the deceased member would have attained exact
68.14 age 55, in lieu of continued receipt of the prior benefit, the
68.15 surviving spouse is eligible to commence receipt of the second
68.16 half of a 100 percent joint and survivor annuity, if this
68.17 provides a larger benefit.
68.18 (c) For a surviving spouse specified in subdivision 2b,
68.19 paragraph (b), the surviving spouse benefit is a benefit for
68.20 life equal to 50 percent of the average monthly salary of the
68.21 deceased member.
68.22 (d) For a surviving spouse specified in subdivision 2b,
68.23 paragraph (c), the surviving spouse benefit is a benefit for
68.24 life equal to 50 percent of the average monthly salary of the
68.25 deceased member, or the second half of a 100 percent joint and
68.26 survivor annuity, whichever is larger.
68.27 (e) For a surviving spouse specified in subdivision 2b,
68.28 paragraph (e), the surviving spouse benefit is the second half
68.29 of a 100 percent joint and survivor annuity, commencing on the
68.30 first of the month next following the deceased member's date of
68.31 death, or the first of the month next following the date on
68.32 which the deceased member would have attained age 55, whichever
68.33 is later.
68.34 (f) For a surviving spouse specified in subdivision 2b,
68.35 paragraph (f), the surviving spouse or, if none, the children
68.36 or, if none, the deceased member's estate, is entitled to a
69.1 refund of the employee contributions plus interest computed as
69.2 specified in subdivision 1.
69.3 Sec. 11. Minnesota Statutes 2002, section 352B.11, is
69.4 amended by adding a subdivision to read:
69.5 Subd. 2d. COORDINATION WITH WORKERS' COMPENSATION
69.6 BENEFITS. If the deceased member died under circumstances that
69.7 entitle the surviving spouse and the dependent child or children
69.8 to receive benefits under workers' compensation law, the
69.9 workers' compensation benefits received by the deceased member's
69.10 survivor or survivors must not be deducted from the benefits
69.11 payable under this section.
69.12 Sec. 12. Minnesota Statutes 2002, section 352D.075,
69.13 subdivision 2, is amended to read:
69.14 Subd. 2. SURVIVING SPOUSE BENEFIT. (a) Notwithstanding
69.15 any designation of a beneficiary to the contrary, if a
69.16 participant or a former participant dies leaving a spouse and
69.17 there is no named beneficiary who survives to receive payment or
69.18 the spouse is named beneficiary before an annuity or a
69.19 disability benefit becomes payable, the surviving spouse may is
69.20 entitled to receive:
69.21 (1) a lump sum payment of the value of the participant's
69.22 total shares;
69.23 (2) The a lump sum payment of a portion of the value of
69.24 one-half of the total shares and beginning at age 55 or
69.25 thereafter, at any time after the participant's death, receive
69.26 an annuity based on the remaining value of one-half of the total
69.27 shares, provided that. If the spouse dies before receiving any
69.28 annuity payments, the remaining value of said the shares shall
69.29 be paid is payable to the spouse's children in equal shares, but
69.30 and if no such children survive, then to the parents of the
69.31 spouse in equal shares, but and if no such children or parents
69.32 survive, then to the estate of the spouse; or
69.33 (3) Beginning at age 55 or thereafter at any time after the
69.34 participant's death, receive an annuity based on the value of
69.35 the total shares, provided that. If the spouse dies before
69.36 receiving any annuity payments, the value of said the shares
70.1 shall be paid is payable to the spouse's children in equal
70.2 shares, but and if no such children survive, then to the parents
70.3 of the spouse in equal shares, but and if no such children or
70.4 parents survive, then to the estate of the spouse; and further
70.5 provided, if said the spouse dies after receiving annuity
70.6 payments but before receiving payments equal to the value of the
70.7 employee shares, the value of the employee shares
70.8 remaining shall be paid is payable to the spouse's children in
70.9 equal shares, but and if no such children survive, then to the
70.10 parents of the spouse in equal shares, but and if no such
70.11 children or parents survive, then to the estate of the spouse.
70.12 (b) A participant or a former participant and the person's
70.13 spouse may make a joint specification, in writing, on a form
70.14 prescribed by the executive director, that the benefits provided
70.15 in this section must be paid only to the designated beneficiary.
70.16 Sec. 13. Minnesota Statutes 2002, section 352D.075, is
70.17 amended by adding a subdivision to read:
70.18 Subd. 2a. SURVIVING SPOUSE COVERAGE TERM CERTAIN. In
70.19 lieu of the annuity under subdivision 2, clause (2) or (3), or
70.20 in lieu of a distribution under subdivision 2, clause (1), the
70.21 surviving spouse of a deceased participant may elect to receive
70.22 survivor coverage in the form of a term certain annuity of five,
70.23 six, 15, or 20 years, based on the value of the remaining
70.24 shares. The monthly term certain annuity must be calculated
70.25 under section 352D.06, subdivision 1.
70.26 Sec. 14. Minnesota Statutes 2002, section 352D.075,
70.27 subdivision 3, is amended to read:
70.28 Subd. 3. REFUND TO BENEFICIARY. If a participant dies
70.29 and has named a beneficiary no surviving spouse, the value of
70.30 the total shares shall be paid is payable to such a designated
70.31 beneficiary, but if such the beneficiary dies before receiving
70.32 payment, or if no beneficiary has been named and there is no
70.33 spouse, the value of said the shares shall be paid is payable
70.34 to the children of the participant in equal shares, but or if no
70.35 such children survive, then in equal shares to the parents of
70.36 the participant, but or if no such children or parents survive,
71.1 then to the estate of the participant.
71.2 Sec. 15. 352F.052 APPLICATION OF SURVIVING SPOUSE,
71.3 DEPENDENT CHILD PROVISION.
71.4 Notwithstanding any provisions of law to the contrary,
71.5 subdivisions within section 352.12 of the edition of Minnesota
71.6 Statutes published in the year before the year in which a
71.7 privatization occurred, applicable to the surviving spouse or
71.8 dependent children of a former member, apply to the survivors of
71.9 a terminated hospital employee of Fairview, University of
71.10 Minnesota Physicians, or University Affiliated Family Physicians.
71.11 Sec. 16. 353F.052 APPLICATION OF SURVIVING SPOUSE,
71.12 DEPENDENT CHILD PROVISION.
71.13 Notwithstanding any provisions of law to the contrary,
71.14 subdivisions within section 353.32 of the edition of Minnesota
71.15 Statutes published in the year before the year in which a
71.16 privatization occurred, applicable to the surviving spouse or
71.17 dependent children of a former member as defined in section
71.18 353.01, subdivision 7a, apply to the survivors of a terminated
71.19 medical facility or other public employing unit employee.
71.20 Sec. 17. Minnesota Statutes 2002, section 354.05,
71.21 subdivision 22, is amended to read:
71.22 Subd. 22. DESIGNATED BENEFICIARY. "Designated
71.23 beneficiary" means the person, trust, or organization designated
71.24 by a retiree or member to receive the benefits to which a
71.25 beneficiary is entitled under this chapter. A beneficiary
71.26 designation is valid only if it is made on an appropriate form
71.27 provided by the executive director that is signed by the member
71.28 and two witnesses to the member's signature. The properly
71.29 completed form must be received by the association on or before
71.30 the date of death of the retiree or member. If a retiree or a
71.31 member does not designate a person, trust, or organization, or
71.32 if the person who was designated predeceases the retiree or the
71.33 member, or if the trust or organization ceases to exist before
71.34 the death of the retiree or the member, the designated
71.35 beneficiary means is the estate of the deceased retiree or
71.36 member.
72.1 Sec. 18. Minnesota Statutes 2002, section 354.46,
72.2 subdivision 2, is amended to read:
72.3 Subd. 2. DEATH WHILE ELIGIBLE DESIGNATED BENEFICIARY
72.4 BENEFIT SURVIVING SPOUSE SURVIVOR COVERAGE. (a) The surviving
72.5 spouse of any member or former member who has If the active or
72.6 deferred member was at least age 55 and had credit for at least
72.7 three years of allowable service on the date of death, the
72.8 surviving spouse is entitled to the second portion of a 100
72.9 percent joint and survivor annuity coverage in the event of
72.10 death of the member prior to retirement. If the surviving
72.11 spouse does not elect to receive a surviving spouse benefit
72.12 under subdivision 1, if applicable, or does not elect to receive
72.13 a refund of accumulated member contributions under section
72.14 354.47, subdivision 1, the surviving spouse is entitled to
72.15 receive, upon written application on a form prescribed by the
72.16 executive director, a benefit equal to the second portion of a
72.17 100 percent joint and survivor annuity specified under section
72.18 354.45, based on the age of the active or deferred member and
72.19 surviving spouse at the time of death of the member, and
72.20 computed under section 354.44, subdivision 2 or 6, whichever is
72.21 applicable the age of the surviving spouse at the time the
72.22 benefit accrues.
72.23 (b) If the active or deferred member was under age 55 and
72.24 has had credit for at least 30 years of allowable service on the
72.25 date of death, the surviving spouse may elect to receive the
72.26 second portion of a 100 percent joint and survivor annuity based
72.27 on the age of the active or deferred member and surviving spouse
72.28 on the date of death and the age of the surviving spouse at the
72.29 time the benefit accrues. If section 354.44, subdivision 6,
72.30 applies, the annuity is payable using the full early retirement
72.31 reduction under section 354.44, subdivision 6, paragraph
72.32 clause (3)(ii), to age 55 and one-half of the early retirement
72.33 reduction from age 55 to the age payment begins.
72.34 (c) If the active or deferred member was under age 55 and
72.35 has had credit for at least three years of allowable service on
72.36 the date of death, but did not yet qualify for retirement, the
73.1 surviving spouse may elect to receive the second portion of a
73.2 100 percent joint and survivor annuity based on the age of
73.3 the active or deferred member and the surviving spouse at the
73.4 time of death and the age of the surviving spouse at the time
73.5 the benefit accrues. If section 354.44, subdivision 6, applies,
73.6 the annuity is calculated using the full early retirement
73.7 reduction under section 354.44, subdivision 6, to age 55 and
73.8 one-half of the early retirement reduction from age 55 to the
73.9 age the annuity begins. The surviving spouse eligible for a
73.10 surviving spouse benefit under paragraph (a) may apply for the
73.11 annuity at any time after the date on which the deceased
73.12 employee would have attained the required age for retirement
73.13 based on the employee's allowable service.
73.14 (d) The surviving spouse eligible for surviving spouse
73.15 benefits under paragraph (b) or (c) this subdivision may apply
73.16 for the annuity any time after the member's death. This The
73.17 benefit accrues from the day following the date of the member's
73.18 death but may not begin to accrue more than six months before
73.19 the date the application is filed with the executive
73.20 director and may not accrue before the member's death. Sections
73.21 354.55, subdivision 11, and 354.60 apply to a deferred annuity
73.22 payable under this section. The benefit is payable for life.
73.23 Any benefit under this subdivision is in lieu of benefits under
73.24 subdivision 1, if applicable, and in lieu of a refund of
73.25 accumulated member contributions under section 354.47,
73.26 subdivision 1.
73.27 Sec. 19. Minnesota Statutes 2002, section 354.46,
73.28 subdivision 2b, is amended to read:
73.29 Subd. 2b. DEPENDENT CHILD SURVIVOR COVERAGE. If there is
73.30 no surviving spouse eligible for benefits under subdivision 2, a
73.31 each dependent child or children as defined in section 354.05,
73.32 subdivision 8a, is eligible for monthly payments surviving child
73.33 benefits. Payments Surviving child benefits to a dependent
73.34 child must be paid from the date of the member's death to the
73.35 date the dependent child attains age 20 if the child is under
73.36 age 15 on the date of the member's death. If the child is 15
74.1 years or older on the date of the member's death, payment must
74.2 be made the surviving child benefit is payable for five years.
74.3 The payment to a dependent surviving child benefit is an amount
74.4 actuarially equivalent to the value of a 100 percent optional
74.5 annuity under subdivision 2 calculated using the age of the
74.6 member and age of the dependent child at as of the date of death
74.7 in lieu of the age of the member and the spouse. If there is
74.8 more than one dependent child, each dependent child shall is
74.9 entitled to receive a proportionate share of the actuarial value
74.10 of the member's account.
74.11 Sec. 20. Minnesota Statutes 2002, section 354.46,
74.12 subdivision 5, is amended to read:
74.13 Subd. 5. PAYMENT SURVIVING SPOUSE SURVIVOR BENEFIT TO
74.14 DESIGNATED BENEFICIARY. A member and the spouse of the member
74.15 may make a joint specification in writing on a form prescribed
74.16 by the executive director that the benefits provided in
74.17 subdivision 2, or in section 354.47, subdivision 1, must be paid
74.18 only to a designated beneficiary or to designated beneficiaries.
74.19 For purposes of subdivision 2, A designated beneficiary may only
74.20 must be either a former spouse or a biological or adopted child
74.21 of the member.
74.22 Sec. 21. Minnesota Statutes 2002, section 354.46, is
74.23 amended by adding a subdivision to read:
74.24 Subd. 6. APPLICATION. (a) A beneficiary designation and
74.25 an application for benefits under this section must be in
74.26 writing on a form prescribed by the executive director.
74.27 (b) Sections 354.55, subdivision 11, and 354.60 apply to a
74.28 deferred annuity payable under this section.
74.29 (c) Unless otherwise specified, the annuity must be
74.30 computed under section 354.44, subdivision 2 or 6, whichever is
74.31 applicable.
74.32 Sec. 22. Minnesota Statutes 2002, section 356.441, is
74.33 amended to read:
74.34 356.441 REPAYMENT OF REFUNDS PAYMENT ACCEPTANCE ALLOWED.
74.35 Subdivision 1. PAYMENT AUTHORIZATION. The repayment of a
74.36 refund and interest on that refund or the payment of equivalent
75.1 contributions and interest for an eligible leave of absence, as
75.2 permitted under laws governing any public pension plan in
75.3 Minnesota, may be made:
75.4 (1) with funds distributed or transferred from a plan
75.5 qualified under the federal Internal Revenue Code of 1986,
75.6 section 401, subsection (a) or (k); 403; 408; or 457, subsection
75.7 (b), as amended through December 31, 1988, or an annuity
75.8 qualified under the federal Internal Revenue Code of 1986,
75.9 section 403(a). Repayment may also be made from time to time;
75.10 or
75.11 (2) with funds distributed from an individual retirement
75.12 account used solely to receive a or individual retirement
75.13 annuity, if done solely in a manner that is eligible for
75.14 treatment as a nontaxable rollover from that type of a plan or
75.15 annuity or transfer under the applicable federal law. The
75.16 repaid refund
75.17 Subd. 2. SEPARATE ACCOUNTING REQUIREMENT. Nontaxable
75.18 rollovers or transfer amounts under subdivision 1 received by a
75.19 public pension fund must be separately accounted for as member
75.20 contributions not previously taxed. Before accepting
75.21 any rollovers or transfers to which this section applies, the
75.22 executive director must shall require the member to provide
75.23 written documentation to demonstrate that the amounts to
75.24 be rolled over or transferred are eligible for a tax-free
75.25 rollover or transfer and qualify for that treatment under the
75.26 federal Internal Revenue Code of 1986, as amended.
75.27 Sec. 23. Minnesota Statutes 2002, section 490.124,
75.28 subdivision 12, is amended to read:
75.29 Subd. 12. REFUND. (a) Any A person who ceases to be a
75.30 judge but who does not qualify for a retirement annuity or other
75.31 benefit under section 490.121 shall be is entitled to a refund
75.32 in an amount equal to all the person's member's employee
75.33 contributions to the judges' retirement fund plus interest
75.34 computed to the first day of the month in which the refund is
75.35 processed based on fiscal year balances at an annual rate of
75.36 five percent compounded annually under section 352.22,
76.1 subdivision 2.
76.2 (b) A refund of contributions under paragraph (a)
76.3 terminates all service credits and all rights and benefits of
76.4 the judge and the judge's survivors. A person who becomes a
76.5 judge again after taking a refund under paragraph (a) may
76.6 reinstate the previously terminated service credits, rights, and
76.7 benefits by repaying all refunds the total amount of the
76.8 previously received refund. A The refund repayment must include
76.9 interest on the total amount previously received at an annual
76.10 rate of 8.5 percent compounded annually from the date on which
76.11 the refund was received until the date on which the refund is
76.12 repaid.
76.13 Sec. 24. REPEALER.
76.14 Minnesota Statutes 2002, section 354A.107, is repealed.
76.15 Sec. 25. EFFECTIVE DATE.
76.16 (a) Sections 1 to 24 are effective on July 1, 2004.
76.17 (b) Sections 8 to 11 are not intended to increase, modify,
76.18 impair, or diminish the benefit entitlements specified in
76.19 Minnesota Statutes, chapter 352B. If the Minnesota state
76.20 retirement system executive director determines that any
76.21 provision of those sections does increase, modify, impair, or
76.22 diminish the benefit entitlements as reflected in applicable law
76.23 just prior to the effective date of this section, the executive
76.24 director shall certify that determination and a recommendation
76.25 as to the required legislative correction to the chairs of the
76.26 legislative commission on pensions and retirement, the house
76.27 governmental operations committee, the senate governmental
76.28 operations committee, and the executive director of the
76.29 legislative commission on pensions and retirement.
76.30 (c) Consistent with Minnesota Statutes, section 645.21, and
76.31 public pension policy in general, the increased interest rate
76.32 provided on a refund under section 23 applies only to judges
76.33 whose termination of service occurs on or after July 1, 2004.
76.34 ARTICLE 10
76.35 FEDERAL INTERNAL REVENUE
76.36 CODE COMPLIANCE
77.1 Section 1. Minnesota Statutes 2002, section 356.611, is
77.2 amended by adding a subdivision to read:
77.3 Subd. 4. COMPENSATION. (a) For purposes of this section,
77.4 compensation means a member's compensation actually paid or made
77.5 available for any limitation year determined as provided by
77.6 Treasury Regulation Section 1.415-2(d)(10).
77.7 (b) Compensation for any period includes:
77.8 (1) any elective deferral as defined in section 402(g)(3)
77.9 of the Internal Revenue Code;
77.10 (2) any elective amounts that are not includable in a
77.11 member's gross income by reason of sections 125 or 457 of the
77.12 Internal Revenue Code; and
77.13 (3) any elective amounts that are not includable in a
77.14 member's gross income by reason of section 132(f)(4) of the
77.15 Internal Revenue Code.
77.16 Sec. 2. 356.635 INTERNAL REVENUE CODE COMPLIANCE.
77.17 Subdivision 1. RETIREMENT BENEFIT COMMENCEMENT. The
77.18 retirement benefit of a member who has terminated employment
77.19 must begin no later than the later of April 1 of the calendar
77.20 year following the calendar year that the member attains the
77.21 federal minimum distribution age under section 401(a)(9) of the
77.22 Internal Revenue Code or April 1 of the calendar year following
77.23 the calendar year in which the member terminated employment.
77.24 Subd. 2. DISTRIBUTIONS. Distributions shall be made as
77.25 required under section 401(a)(9) of the Internal Revenue Code
77.26 and the treasury regulations adopted under that section,
77.27 including, but not limited to, the incidental death benefit
77.28 provisions of section 401(a)(9)(G) of the Internal Revenue Code.
77.29 Subd. 3. DIRECT ROLLOVERS. A distributee may elect, at
77.30 the time and in the manner prescribed by the plan administrator,
77.31 to have all or any portion of an eligible rollover distribution
77.32 paid directly to an eligible retirement plan as specified by the
77.33 distributee.
77.34 Subd. 4. ELIGIBLE ROLLOVER DISTRIBUTION. An "eligible
77.35 rollover distribution" is any distribution of all or any portion
77.36 of the balance to the credit of the distributee.
78.1 Subd. 5. INELIGIBLE AMOUNTS. An eligible rollover
78.2 distribution does not include:
78.3 (1) a distribution that is one of a series of substantially
78.4 equal periodic payments, receivable annually or more frequently,
78.5 that is made for the life or life expectancy of the distributee,
78.6 the joint lives or joint life expectancies of the distributee
78.7 and the distributee's designated beneficiary, or for a specified
78.8 period of ten years or more;
78.9 (2) a distribution that is required under section 401(a)(9)
78.10 of the Internal Revenue Code; or
78.11 (3) any other exception required by law or the Internal
78.12 Revenue Code.
78.13 Subd. 6. ELIGIBLE RETIREMENT PLAN. (a) An "eligible
78.14 retirement plan" is:
78.15 (1) an individual retirement account under section 408(a)
78.16 of the Internal Revenue Code;
78.17 (2) an individual retirement annuity plan under section
78.18 408(b) of the Internal Revenue Code;
78.19 (3) an annuity plan under section 403(a) of the Internal
78.20 Revenue Code;
78.21 (4) a qualified trust plan under section 401(a) of the
78.22 Internal Revenue Code that accepts the distributee's eligible
78.23 rollover distribution;
78.24 (5) an annuity contract under section 403(b) of the
78.25 Internal Revenue Code; or
78.26 (6) an eligible deferred compensation plan under section
78.27 457(b) of the Internal Revenue Code, which is maintained by a
78.28 state or local government and which agrees to separately account
78.29 for the amounts transferred into the plan.
78.30 (b) For distributions of after-tax contributions which are
78.31 not includable in gross income, the after-tax portion may be
78.32 transferred only to an individual retirement account or annuity
78.33 described in section 408(a) or (b) of the Internal Revenue Code,
78.34 or to a qualified defined contribution plan described in either
78.35 section 401(a), or section 403(a), of the Internal Revenue Code,
78.36 that agrees to separately account for the amounts transferred,
79.1 including separately accounting for the portion of the
79.2 distribution which is includable in gross income and the portion
79.3 of the distribution which is not includable.
79.4 Subd. 7. DISTRIBUTEE. A "distributee" is:
79.5 (1) an employee or a former employee;
79.6 (2) the surviving spouse of an employee or former employee;
79.7 or
79.8 (3) the former spouse of the employee or former employee
79.9 who is the alternate payee under a qualified domestic relations
79.10 order as defined in section 414(p) of the Internal Revenue Code,
79.11 or who is a recipient of a court-ordered equitable distribution
79.12 of marital property, as provided in section 518.58.
79.13 Subd. 8. FORFEITURES. For defined benefit plans, unless
79.14 otherwise permitted by section 401(a)(8) of the Internal Revenue
79.15 Code, forfeitures may not be applied to increase the benefits
79.16 that any employee would otherwise receive under the plan.
79.17 Subd. 9. MILITARY SERVICE. Contributions, benefits, and
79.18 service credit with respect to qualified military service must
79.19 be provided according to section 414(u) of the Internal Revenue
79.20 Code.
79.21 Sec. 3. TRANSITIONAL PROVISION.
79.22 (a) An eligible rollover distribution under Minnesota
79.23 Statutes, section 356.635, does not include the portion of a
79.24 distribution that is not included in gross income.
79.25 (b) For eligible rollover distributions to a surviving
79.26 spouse, an eligible retirement plan under Minnesota Statutes,
79.27 section 356.635, is limited to an individual retirement account
79.28 under section 408(a) of the Internal Revenue Code or an
79.29 individual retirement annuity plan under section 408(b) of the
79.30 Internal Revenue Code.
79.31 Sec. 4. EFFECTIVE DATE.
79.32 (a) Section 1 is effective on July 1, 2004. Section 1 is
79.33 effective retroactively as follows:
79.34 subdivision effective
79.35 4, paragraph (b), for limitation years
79.36 clauses (1) and (2) beginning on and after
79.37 January 1, 1998; and
80.1 4, paragraph (b), for limitation years
80.2 clause (3) beginning on and after
80.3 January 1, 2001
80.4 (b) Sections 2 and 3 are effective on the day following
80.5 final enactment.
80.6 (c) Section 2 is effective retroactively as follows:
80.7 subdivision effective
80.8 1 on and after January 1, 1989
80.9 2 for distributions on and after
80.10 December 31, 1989
80.11 3 for distributions on and after
80.12 January 1, 1993
80.13 6, paragraph (a), for distributions made after
80.14 clauses (5) and (6) December 31, 2001
80.15 6, paragraph (b) for distributions after
80.16 December 31, 2001
80.17 9 on December 12, 1994
80.18 (d) Section 3 is effective only for distributions made
80.19 before January 1, 2002.
80.20 ARTICLE 11
80.21 ADDITIONAL TEACHERS RETIREMENT
80.22 ASSOCIATION ADMINISTRATIVE CHANGES
80.23 Section 1. Minnesota Statutes 2002, section 354.44,
80.24 subdivision 5, is amended to read:
80.25 Subd. 5. RESUMPTION OF TEACHING SERVICE AFTER
80.26 RETIREMENT. (a) Any person who retired under the provisions of
80.27 this chapter and has thereafter resumed teaching in any employer
80.28 unit to which this chapter applies is eligible to continue to
80.29 receive payments in accordance with the annuity except that
80.30 annuity payments must be reduced during the calendar year
80.31 immediately following any calendar year in which the person's
80.32 income from the teaching service is in an amount greater than
80.33 the annual maximum earnings allowable for that age for the
80.34 continued receipt of full benefit amounts monthly under the
80.35 federal old age, survivors and disability insurance program as
80.36 set by the secretary of health and human services under United
80.37 States Code, title 42, section 403. The amount of the reduction
80.38 must be one-half of the amount in excess of the applicable
80.39 reemployment income maximum specified in this subdivision and
80.40 must be deducted from the annuity payable for the calendar year
80.41 immediately following the calendar year in which the excess
81.1 amount was earned. If the person has not yet reached the
81.2 minimum age for the receipt of social security benefits, the
81.3 maximum earnings for the person must be equal to the annual
81.4 maximum earnings allowable for the minimum age for the receipt
81.5 of social security benefits.
81.6 (b) If the person is retired for only a fractional part of
81.7 the calendar year during the initial year of retirement, the
81.8 maximum reemployment income specified in this subdivision must
81.9 be prorated for that calendar year.
81.10 (c) After a person has reached the social security full
81.11 retirement age of 70, no reemployment income maximum is
81.12 applicable regardless of the amount of income.
81.13 (d) The amount of the retirement annuity reduction must be
81.14 handled or disposed of as provided in section 356.47.
81.15 (e) For the purpose of this subdivision, income from
81.16 teaching service includes, but is not limited to:
81.17 (1) all income for services performed as a consultant or an
81.18 independent contractor for an employer unit covered by the
81.19 provisions of this chapter; and
81.20 (2) the greater of either the income received or an amount
81.21 based on the rate paid with respect to an administrative
81.22 position, consultant, or independent contractor in an employer
81.23 unit with approximately the same number of pupils and at the
81.24 same level as the position occupied by the person who resumes
81.25 teaching service.
81.26 Sec. 2. Minnesota Statutes 2002, section 354.48,
81.27 subdivision 10, is amended to read:
81.28 Subd. 10. RETIREMENT STATUS AT NORMAL RETIREMENT AGE.
81.29 (a) No person shall be is entitled to receive both a disability
81.30 benefit and a retirement annuity provided by this chapter.
81.31 (b) The disability benefit paid to a person hereunder shall
81.32 must terminate at the end of the month in which the person
81.33 attains the normal retirement age. If the person is still
81.34 totally and permanently disabled at the beginning of the month
81.35 next following the month in which the person attains the normal
81.36 retirement age, the person shall must be deemed to be on
82.1 retirement status and, if the person had elected an optional
82.2 annuity pursuant to under subdivision 3a, shall must receive an
82.3 annuity in accordance with the terms of the optional annuity
82.4 previously elected, or, if the person had not elected an
82.5 optional annuity pursuant to under subdivision 3a, may elect to
82.6 receive a straight life retirement annuity equal to the
82.7 disability benefit paid prior to before the date on which the
82.8 person attains age 65 or reaches the five-year anniversary of
82.9 the effective date of the disability benefit, whichever is
82.10 later, or may elect to receive an optional annuity as provided
82.11 in section 354.45, subdivision 1.
82.12 (c) Election of an optional annuity must be made within 90
82.13 days of the normal retirement age 65 or the five-year
82.14 anniversary of the effective date of the disability benefit,
82.15 whichever is later.
82.16 (d) If an optional annuity is elected, the election shall
82.17 be is effective on the date on which the person attains the
82.18 normal retirement age 65 or reaches the five-year anniversary of
82.19 the effective date of the disability benefit, whichever is
82.20 later. The optional annuity shall begin begins to accrue on the
82.21 first day of the month next following the month in which the
82.22 person attains the normal retirement age 65 or reaches the
82.23 five-year anniversary of the effective date of the disability
82.24 benefit, whichever is later.
82.25 Sec. 3. Minnesota Statutes 2002, section 356.302,
82.26 subdivision 3, is amended to read:
82.27 Subd. 3. GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.
82.28 A disabled member of a covered retirement plan who has credit
82.29 for allowable service in a combination of general employee
82.30 retirement plans is entitled to a combined service disability
82.31 benefit if the member:
82.32 (1) is less than 65 years of the normal retirement age on
82.33 the date of the application for the disability benefit;
82.34 (2) has become totally and permanently disabled;
82.35 (3) has credit for allowable service in any combination of
82.36 general employee retirement plans totaling at least three years;
83.1 (4) has credit for at least one-half year of allowable
83.2 service with the current general employee retirement plan before
83.3 the commencement of the disability;
83.4 (5) has at least three continuous years of allowable
83.5 service credit by the general employee retirement plan or has at
83.6 least a total of three years of allowable service credit by a
83.7 combination of general employee retirement plans in a 72-month
83.8 period during which no interruption of allowable service credit
83.9 from a termination of employment exceeded 29 days; and
83.10 (6) was not receiving a retirement annuity or disability
83.11 benefit from any covered general employee retirement plan at the
83.12 time of the commencement of the disability.
83.13 Sec. 4. EFFECTIVE DATE.
83.14 Sections 1, 2, and 3 are effective on July 1, 2004."
83.15 Delete the title and insert:
83.16 "A bill for an act
83.17 relating to retirement; statewide and major local
83.18 public pension plans; making various changes of an
83.19 administrative nature; amending Minnesota Statutes
83.20 2002, sections 3A.03, subdivision 2; 352.01,
83.21 subdivision 13; 352.113, by adding a subdivision;
83.22 352.12, subdivisions 1 and 6; 352.22, subdivisions 2
83.23 and 3; 352.27; 352.95, subdivisions 1, 2, and 4;
83.24 352B.01, subdivision 11, and by adding a subdivision;
83.25 352B.10, subdivisions 1, 2, 3, 4, and 5; 352B.105;
83.26 352B.11, subdivisions 1 and 2, and by adding
83.27 subdivisions; 352D.065, subdivision 2; 352D.075,
83.28 subdivisions 2 and 3, and by adding a subdivision;
83.29 353.01, subdivisions 2b, 10, 12a, 12b, and 16; 353.33,
83.30 subdivisions 4, 6, 6b, and 7, and by adding a
83.31 subdivision; 353.37, subdivision 3, by adding a
83.32 subdivision; 353.656, subdivision 5; 354.05,
83.33 subdivisions 2, 22, and 35; 354.07, subdivision 9;
83.34 354.091; 354.096, subdivision 1; 354.42, subdivision
83.35 7; 354.44, subdivisions 4 and 5; 354.46, subdivisions
83.36 2, 2b, and 5, and by adding a subdivision; 354.48,
83.37 subdivisions 2, 4, 6, 6a, and 10; 354.51, subdivision
83.38 5; 354.52, subdivisions 4a and 6, and by adding a
83.39 subdivision; 354.53; 354.66, subdivision 2; 354A.011,
83.40 subdivision 24; 354A.093; 354A.094, subdivision 3;
83.41 354A.36, subdivisions 4 and 6; 354B.20, subdivisions 4
83.42 and 6; 354B.23, subdivision 1; 354B.32; 354C.11,
83.43 subdivision 2; 356.302, subdivision 3; 356.441;
83.44 356.611, subdivision 2, and by adding subdivisions;
83.45 422A.18, subdivisions 1 and 4; 423B.09, subdivision 4;
83.46 423C.05, subdivisions 4, 5, and 6, and by adding a
83.47 subdivision; 490.121, by adding a subdivision;
83.48 490.124, subdivision 12; proposing coding for new law
83.49 in/as Minnesota Statutes, chapters 352F; 353F; 356;
83.50 repealing Minnesota Statutes 2002, sections 352D.02,
83.51 subdivision 5; 353.33, subdivision 5b; 354A.107; and
83.52 490.11."