LCPR04-192 NOTE: this amendment was verbally amended, which is not indicated
1.1 ............... moves to amend S.F. No. 676, the first
1.2 engrossment (S0676-1), as follows:
1.3 Page 47, after line 15, insert:
1.4 "Sec. 6. Minnesota Statutes 2002, section 354.44,
1.5 subdivision 6, is amended to read:
1.6 Subd. 6. COMPUTATION OF FORMULA PROGRAM RETIREMENT
1.7 ANNUITY. (1) (a) The formula retirement annuity must be
1.8 computed in accordance with the applicable provisions of the
1.9 formulas stated in clause (2) or (4) paragraph (b) or (d) on the
1.10 basis of each member's average salary for the period of the
1.11 member's formula service credit.
1.12 For all years of formula service credit, "average salary,"
1.13 for the purpose of determining the member's retirement annuity,
1.14 means the average salary upon which contributions were made and
1.15 upon which payments were made to increase the salary limitation
1.16 provided in Minnesota Statutes 1971, section 354.511, for the
1.17 highest five successive years of formula service credit
1.18 provided, however, that such "average salary" shall not include
1.19 any more than the equivalent of 60 monthly salary payments.
1.20 Average salary must be based upon all years of formula service
1.21 credit if this service credit is less than five years.
1.22 (2) (b) This clause paragraph, in conjunction with clause
1.23 (3) paragraph (c), applies to a person who first became a member
1.24 of the association or a member of a pension fund listed in
1.25 section 356.30, subdivision 3, before July 1, 1989,
1.26 unless clause (4) paragraph (d), in conjunction with clause
1.27 (5) paragraph (e), produces a higher annuity amount, in which
1.28 case clause (4) paragraph (d) applies. The average salary as
1.29 defined in clause (1) paragraph (a), multiplied by the following
1.30 percentages per year of formula service credit shall determine
1.31 the amount of the annuity to which the member qualifying
1.32 therefor is entitled:
1.33 Coordinated Member Basic Member
1.34 Each year of service the percent the percent
1.35 during first ten specified in specified in
1.36 section 356.315, section 356.315,
2.1 subdivision 1, subdivision 3,
2.2 per year per year
2.3 Each year of service the percent the percent
2.4 thereafter specified in specified in
2.5 section 356.315, section 356.315,
2.6 subdivision 2, subdivision 4,
2.7 per year per year
2.8 (3) (c)(i) This clause paragraph applies only to a person
2.9 who first became a member of the association or a member of a
2.10 pension fund listed in section 356.30, subdivision 3, before
2.11 July 1, 1989, and whose annuity is higher when calculated
2.12 under clause (2) paragraph (b), in conjunction with this clause
2.13 than when calculated under clause (4) paragraph (d), in
2.14 conjunction with clause (5) paragraph (e).
2.15 (ii) Where any member retires prior to normal retirement
2.16 age under a formula annuity, the member shall be paid a
2.17 retirement annuity in an amount equal to the normal annuity
2.18 provided in clause (2) paragraph (b) reduced by one-quarter of
2.19 one percent for each month that the member is under normal
2.20 retirement age at the time of retirement except that for any
2.21 member who has 30 or more years of allowable service credit, the
2.22 reduction shall be applied only for each month that the member
2.23 is under age 62.
2.24 (iii) Any member whose attained age plus credited allowable
2.25 service totals 90 years is entitled, upon application, to a
2.26 retirement annuity in an amount equal to the normal annuity
2.27 provided in clause (2) paragraph (b), without any reduction by
2.28 reason of early retirement.
2.29 (4) (d) This clause paragraph applies to a member who has
2.30 become at least 55 years old and first became a member of the
2.31 association after June 30, 1989, and to any other member who has
2.32 become at least 55 years old and whose annuity amount when
2.33 calculated under this clause paragraph and in conjunction with
2.34 clause (5) paragraph (e), is higher than it is when calculated
2.35 under clause (2) paragraph (b), in conjunction with clause
2.36 (3) paragraph (c). The average salary, as defined in clause
3.1 (1) paragraph (a) multiplied by the percent specified by section
3.2 356.315, subdivision 4, for each year of service for a basic
3.3 member and by the percent specified in section 356.315,
3.4 subdivision 2, for each year of service for a coordinated member
3.5 shall determine the amount of the retirement annuity to which
3.6 the member is entitled.
3.7 (5) (e) This clause paragraph applies to a person who has
3.8 become at least 55 years old and first becomes a member of the
3.9 association after June 30, 1989, and to any other member who has
3.10 become at least 55 years old and whose annuity is higher when
3.11 calculated under clause (4) paragraph (d) in conjunction with
3.12 this clause than when calculated under clause (2) paragraph (b),
3.13 in conjunction with clause (3) paragraph (c). An employee who
3.14 retires under the formula annuity before the normal retirement
3.15 age shall be paid the normal annuity provided in clause
3.16 (4) paragraph (d) reduced so that the reduced annuity is the
3.17 actuarial equivalent of the annuity that would be payable to the
3.18 employee if the employee deferred receipt of the annuity and the
3.19 annuity amount were augmented at an annual rate of three percent
3.20 compounded annually from the day the annuity begins to accrue
3.21 until the normal retirement age.
3.22 (f) No retirement annuity is payable to a former
3.23 superintendent or to a former school district administrator
3.24 unless and until the salary figures used in computing the
3.25 highest five successive years average salary under paragraph (a)
3.26 have been audited by the Teachers Retirement Association and
3.27 determined by the executive director to comply with the
3.28 requirements and limitations of section 354.05, subdivisions 35
3.29 and 35a."
3.30 Page 47, after line 29, insert:
3.31 "Sec. 9. TRA; REPORT ON CERTAIN SALARY AUDITS.
3.32 (a) The executive director shall report to the chair of the
3.33 Legislative Commission on Pensions and Retirement, the chair of
3.34 the Committee on Governmental Operations and Veterans Affairs
3.35 Policy of the House of Representatives, and the chair of the
3.36 State and Local Governmental Operations Committee of the Senate
4.1 on the number of superintendents and other school district
4.2 administrators who retired during the most recent calendar year,
4.3 the number of superintendents and other school district
4.4 administrators where the preretirement salary audit under
4.5 Minnesota Statutes, section 354.44, subdivision 6, paragraph
4.6 (f), disclosed an impermissible salary inclusion amount, the
4.7 school district or districts in which impermissible salary
4.8 inclusions occurred, the average amount of the impermissible
4.9 salary inclusions where there were impermissible salary
4.10 inclusions, and the range of impermissible salary inclusions.
4.11 (b) When a report is due, the report must be filed on or
4.12 before February 15.
4.13 (c) Reports under this section must be made for calendar
4.14 years 2004 and 2005. A report under this section also must be
4.15 filed for calendar years 2006 and 2007 if the report for
4.16 calendar 2005 indicates that there were impermissible salary
4.17 inclusions that occurred during the calendar year."
4.18 Renumber the sections in sequence
4.19 Correct the internal references
4.20 Amend the title accordingly