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 pr