LCPR05-207
1.1 M ............... moves to amend S.F. No. ....; H.F. No.
1.2 ...., as follows:
1.3 Page ..., after line ..., insert:
1.4 "Sec. ... . Minnesota Statutes 2004, section 352.01,
1.5 subdivision 13, is amended to read:
1.6 Subd. 13. SALARY. (a) Subject to the limitations of
1.7 section 356.611, "salary" means wages, or other periodic
1.8 compensation, paid to an employee before deductions for deferred
1.9 compensation, supplemental retirement plans, or other voluntary
1.10 salary reduction programs.
1.11 (b) "Salary" does not include:
1.12 (1) lump sum sick leave payments;
1.13 (2) severance payments;
1.14 (3) lump sum annual leave payments and overtime payments
1.15 made at the time of separation from state service;
1.16 (4) payments in lieu of any employer‑paid group insurance
1.17 coverage, including the difference between single and family
1.18 rates that may be paid to an employee with single coverage;
1.19 (5) payments made as an employer‑paid fringe benefit;
1.20 (6) workers' compensation payments;
1.21 (7) employer contributions to a deferred compensation or
1.22 tax sheltered annuity program; and
1.23 (8) amounts contributed under a benevolent vacation and
1.24 sick leave donation program.
1.25 (c) Amounts provided to an employee by the employer through
1.26 a grievance proceeding or a legal settlement are salary only if
1.27 the settlement is reviewed by the executive director and the
1.28 amounts are determined by the executive director to be
1.29 consistent with paragraph (a) and prior determinations.
1.30 Sec. ... . Minnesota Statutes 2004, section 352B.01,
1.31 subdivision 11, is amended to read:
1.32 Subd. 11. AVERAGE MONTHLY SALARY. (a) Subject to the
1.33 limitations of section 356.611, "average monthly salary" means
1.34 the average of the highest monthly salaries for five years of
1.35 service as a member upon which contributions were deducted from
1.36 pay under section 352B.02, or upon which appropriate
2.1 contributions or payments were made to the fund to receive
2.2 allowable service and salary credit as specified under the
2.3 applicable law. Average monthly salary must be based upon all
2.4 allowable service if this service is less than five years.
2.5 (b) "Average monthly salary" means the salary of the member
2.6 as defined in section 352.01, subdivision 13. "Average monthly
2.7 salary" does not include any lump‑sum annual leave payments and
2.8 overtime payments made at the time of separation from state
2.9 service, any amounts of severance pay, or any reduced salary
2.10 paid during the period the person is entitled to workers'
2.11 compensation benefit payments for temporary disability.
2.12 (c) A member on leave of absence receiving temporary
2.13 workers' compensation payments and a reduced salary or no salary
2.14 from the employer who is entitled to allowable service credit
2.15 for the period of absence may make payment to the fund for the
2.16 difference between salary received, if any, and the salary the
2.17 member would normally receive if not on leave of absence during
2.18 the period. The member shall pay an amount equal to the member
2.19 and employer contribution rate under section 352B.02,
2.20 subdivisions 1b and 1c, on the differential salary amount for
2.21 the period of the leave of absence. The employing department,
2.22 at its option, may pay the employer amount on behalf of the
2.23 member. Payment made under this subdivision must include
2.24 interest at the rate of 8.5 percent per year, and must be
2.25 completed within one year of the return from the leave of
2.26 absence.
2.27 Sec. ... . Minnesota Statutes 2004, section 353.01,
2.28 subdivision 10, is amended to read:
2.29 Subd. 10. SALARY. (a) Subject to the limitations of
2.30 section 356.611, "salary" means:
2.31 (1) the periodic compensation of a public employee, before
2.32 deductions for deferred compensation, supplemental retirement
2.33 plans, or other voluntary salary reduction programs, and also
2.34 means "wages" and includes net income from fees; and
2.35 (2) for a public employee who has prior service covered by
2.36 a local police or firefighters relief association that has
3.1 consolidated with the Public Employees Retirement Association or
3.2 to which section 353.665 applies and who has elected coverage
3.3 either under the public employees police and fire fund benefit
3.4 plan under section 353A.08 following the consolidation or under
3.5 section 353.665, subdivision 4, the rate of salary upon which
3.6 member contributions to the special fund of the relief
3.7 association were made prior to the effective date of the
3.8 consolidation as specified by law and by bylaw provisions
3.9 governing the relief association on the date of the initiation
3.10 of the consolidation procedure and the actual periodic
3.11 compensation of the public employee after the effective date of
3.12 consolidation.
3.13 (b) Salary does not mean:
3.14 (1) the fees paid to district court reporters, unused
3.15 annual vacation or sick leave payments, in lump‑sum or periodic
3.16 payments, severance payments, reimbursement of expenses,
3.17 lump‑sum settlements not attached to a specific earnings period,
3.18 or workers' compensation payments;
3.19 (2) employer‑paid amounts used by an employee toward the
3.20 cost of insurance coverage, employer‑paid fringe benefits,
3.21 flexible spending accounts, cafeteria plans, health care expense
3.22 accounts, day care expenses, or any payments in lieu of any
3.23 employer‑paid group insurance coverage, including the difference
3.24 between single and family rates that may be paid to a member
3.25 with single coverage and certain amounts determined by the
3.26 executive director to be ineligible;
3.27 (3) the amount equal to that which the employing
3.28 governmental subdivision would otherwise pay toward single or
3.29 family insurance coverage for a covered employee when, through a
3.30 contract or agreement with some but not all employees, the
3.31 employer:
3.32 (i) discontinues, or for new hires does not provide,
3.33 payment toward the cost of the employee's selected insurance
3.34 coverages under a group plan offered by the employer;
3.35 (ii) makes the employee solely responsible for all
3.36 contributions toward the cost of the employee's selected
4.1 insurance coverages under a group plan offered by the employer,
4.2 including any amount the employer makes toward other employees'
4.3 selected insurance coverages under a group plan offered by the
4.4 employer; and
4.5 (iii) provides increased salary rates for employees who do
4.6 not have any employer‑paid group insurance coverages;
4.7 (4) except as provided in section 353.86 or 353.87,
4.8 compensation of any kind paid to volunteer ambulance service
4.9 personnel or volunteer firefighters, as defined in subdivision
4.10 35 or 36; and
4.11 (5) the amount of compensation that exceeds the limitation
4.12 provided in section 356.611.
4.13 (c) Amounts provided to an employee by the employer through
4.14 a grievance proceeding or a legal settlement are salary only if
4.15 the settlement is reviewed by the executive director and the
4.16 amounts are determined by the executive director to be
4.17 consistent with paragraph (a) and prior determinations.
4.18 Sec. ... . Minnesota Statutes 2004, section 353B.02,
4.19 subdivision 10, is amended to read:
4.20 Subd. 10. SALARY. (a) "Salary" under this chapter is
4.21 subject to the limitations of section 356.611.
4.22 (b) "Salary" for benefit computation and contribution
4.23 purposes means the salary of a first class or first grade
4.24 firefighter or patrol officer, whichever applies, for the former
4.25 members of the following consolidating relief associations:
4.26 (1) Anoka Police Relief Association;
4.27 (2) Austin Firefighters Relief Association;
4.28 (3) Austin Police Relief Association;
4.29 (4) Columbia Heights Fire Department Relief Association,
4.30 Paid Division;
4.31 (5) Fairmont Police Benefit Association;
4.32 (6) Faribault Fire Department Relief Association;
4.33 (7) Mankato Fire Department Relief Association;
4.34 (8) Minneapolis Fire Department Relief Association;
4.35 (9) Minneapolis Police Relief Association;
4.36 (10) Richfield Fire Department Relief Association;
5.1 (11) Rochester Fire Department Relief Association;
5.2 (12) Rochester Police Relief Association;
5.3 (13) St. Cloud Fire Department Relief Association;
5.4 (14) St. Cloud Police Relief Association;
5.5 (15) St. Paul Fire Department Relief Association;
5.6 (16) South St. Paul Firefighters Relief Association;
5.7 (17) West St. Paul Firefighters Relief Association;
5.8 (18) West St. Paul Police Relief Association; and
5.9 (19) Winona Fire Department Relief Association.
5.10 (b) (c) "Salary" for benefit computation purposes means the
5.11 salary of a first grade patrol officer for the second month of
5.12 the previous fiscal year and for contribution purposes means the
5.13 current salary of a first grade patrol officer, for the former
5.14 members of the following consolidating relief associations:
5.15 (1) Bloomington Police Relief Association;
5.16 (2) Crystal Police Relief Association;
5.17 (3) Fridley Police Pension Association;
5.18 (4) Richfield Police Relief Association;
5.19 (5) St. Louis Park Police Relief Association; and
5.20 (6) Winona Police Relief Association.
5.21 (c) (d) "Salary" for benefit computation purposes means the
5.22 final salary and for contribution purposes means the current
5.23 salary for the former members of the following consolidating
5.24 relief associations:
5.25 (1) Albert Lea Firefighters Relief Association;
5.26 (2) Albert Lea Police Relief Association;
5.27 (3) Buhl Police Relief Association;
5.28 (4) Chisholm Firefighters Relief Association;
5.29 (5) Crookston Fire Department Relief Association;
5.30 (6) Crookston Police Relief Association;
5.31 (7) Faribault Police Benefit Association;
5.32 (8) Red Wing Police Relief Association; and
5.33 (9) Virginia Fire Department Relief Association.
5.34 (d) (e) "Salary" for benefit computation purposes means the
5.35 average earnings or salary for the final six months of
5.36 employment before retirement and for contribution purposes means
6.1 the current salary for the former members of the following
6.2 consolidating relief associations:
6.3 (1) Chisholm Police Relief Association;
6.4 (2) Hibbing Firefighters Relief Association; and
6.5 (3) Hibbing Police Relief Association.
6.6 (e) (f) "Salary" for benefit computation purposes means the
6.7 greater of the final salary at retirement or the highest salary
6.8 of a patrol officer and for contribution purposes means the
6.9 greater of the current salary or the current highest salary of a
6.10 patrol officer for the former members of the following
6.11 consolidating relief associations:
6.12 (1) Brainerd Police Benefit Association; and
6.13 (2) New Ulm Police Relief Association.
6.14 (f) (g) "Salary" for benefit computation and contribution
6.15 purposes means the following for the former members of the
6.16 consolidating relief associations as indicated:
6.17 (1) salary of a top grade patrol officer, including
6.18 longevity pay and education incentive pay in an amount not to
6.19 exceed $235 per month, Columbia Heights Police Relief
6.20 Association;
6.21 (2) maximum pay of a firefighter, including overtime
6.22 payments for a regular workweek of a firefighter mandated by the
6.23 federal Fair Labor Standards Act of 1938, as amended, Duluth
6.24 Firefighters Relief Association;
6.25 (3) salary of a first class patrol officer with 16 years of
6.26 service, Duluth Police Pension Association;
6.27 (4) base salary for the rank currently held, plus longevity
6.28 pay, pay for eligibility for next higher rank and pay for first
6.29 aid care, Mankato Police Benefit Association;
6.30 (5) average annual salary for highest three paid years for
6.31 benefit computation purposes and current salary for contribution
6.32 purposes, Red Wing Fire Department Relief Association;
6.33 (6) pay of the highest grade full‑time firefighter, St.
6.34 Louis Park Fire Department Relief Association;
6.35 (7) maximum monthly pay of a patrol officer, St. Paul
6.36 Police Relief Association;
7.1 (8) prevailing base pay of rank held at retirement for
7.2 benefit computation purposes and current salary for contribution
7.3 purposes, South St. Paul Police Relief Association; and
7.4 (9) prevailing pay for rank held for at least six months
7.5 before retirement for benefit computation purposes and current
7.6 salary for contribution purposes, Virginia Police Relief
7.7 Association.
7.8 Sec. ... . Minnesota Statutes 2004, section 354.05,
7.9 subdivision 35, is amended to read:
7.10 Subd. 35. SALARY. (a) Subject to the limitations of
7.11 section 356.611, "salary" means the periodic compensation, upon
7.12 which member contributions are required before deductions for
7.13 deferred compensation, supplemental retirement plans, or other
7.14 voluntary salary reduction programs.
7.15 (b) "Salary" does not mean:
7.16 (1) lump sum annual leave payments;
7.17 (2) lump sum wellness and sick leave payments;
7.18 (3) employer‑paid amounts used by an employee toward the
7.19 cost of insurance coverage, employer‑paid fringe benefits,
7.20 flexible spending accounts, cafeteria plans, health care expense
7.21 accounts, day care expenses, or any payments in lieu of any
7.22 employer‑paid group insurance coverage, including the difference
7.23 between single and family rates that may be paid to a member
7.24 with single coverage and certain amounts determined by the
7.25 executive director to be ineligible;
7.26 (4) any form of payment made in lieu of any other
7.27 employer‑paid fringe benefit or expense;
7.28 (5) any form of severance payments;
7.29 (6) workers' compensation payments;
7.30 (7) disability insurance payments, including self‑insured
7.31 disability payments;
7.32 (8) payments to school principals and all other
7.33 administrators for services that are in addition to the normal
7.34 work year contract if these additional services are performed on
7.35 an extended duty day, Saturday, Sunday, holiday, annual leave
7.36 day, sick leave day, or any other nonduty day;
8.1 (9) payments under section 356.24, subdivision 1, clause
8.2 (4); and
8.3 (10) payments made under section 122A.40, subdivision 12,
8.4 except for payments for sick leave that are accumulated under
8.5 the provisions of a uniform school district policy that applies
8.6 equally to all similarly situated persons in the district.
8.7 (c) Amounts provided to an employee by the employer through
8.8 a grievance proceeding or a legal settlement are salary only if
8.9 the settlement is reviewed by the executive director and the
8.10 amounts are determined by the executive director to be
8.11 consistent with paragraph (a) and prior determinations.
8.12 Sec. ... . Minnesota Statutes 2004, section 354A.011,
8.13 subdivision 24, is amended to read:
8.14 Subd. 24. SALARY; COVERED SALARY. (a) Subject to the
8.15 limitations of section 356.611, "salary" or "covered salary"
8.16 means the entire compensation, upon which member contributions
8.17 are required and made, that is paid to a teacher before
8.18 deductions for deferred compensation, supplemental retirement
8.19 plans, or other voluntary salary reduction programs.
8.20 (b) "Salary" does not mean:
8.21 (1) lump sum annual leave payments;
8.22 (2) lump sum wellness and sick leave payments;
8.23 (3) employer‑paid amounts used by an employee toward the
8.24 cost of insurance coverage, employer‑paid fringe benefits,
8.25 flexible spending accounts, cafeteria plans, health care expense
8.26 accounts, day care expenses, or any payments in lieu of any
8.27 employer‑paid group insurance coverage, including the difference
8.28 between single and family rates that may be paid to a member
8.29 with single coverage, and certain amounts determined by the
8.30 executive secretary or director to be ineligible;
8.31 (4) any form of payment that is made in lieu of any other
8.32 employer‑paid fringe benefit or expense;
8.33 (5) any form of severance payments;
8.34 (6) workers' compensation payments;
8.35 (7) disability insurance payments, including self‑insured
8.36 disability payments;
9.1 (8) payments to school principals and all other
9.2 administrators for services that are in addition to the normal
9.3 work year contract if these additional services are performed on
9.4 an extended duty day, Saturday, Sunday, holiday, annual leave
9.5 day, sick leave day, or any other nonduty day;
9.6 (9) payments under section 356.24, subdivision 1, clause
9.7 (4)(ii); and
9.8 (10) payments made under section 122A.40, subdivision 12,
9.9 except for payments for sick leave that are accumulated under
9.10 the provisions of a uniform school district policy that applies
9.11 equally to all similarly situated persons in the district.
9.12 (c) Amounts provided to an employee by the employer through
9.13 a grievance proceeding or a legal settlement are salary only if
9.14 the settlement is reviewed by the executive director and the
9.15 amounts are determined by the executive director to be
9.16 consistent with paragraph (a) and prior determinations.
9.17 Sec. ... . Minnesota Statutes 2004, section 356.611,
9.18 subdivision 1, is amended to read:
9.19 Subdivision 1. STATE SALARY LIMITATIONS. (a)
9.20 Notwithstanding any provision of law, bylaws, articles of
9.21 incorporation, retirement and disability allowance plan
9.22 agreements, or retirement plan contracts to the contrary, the
9.23 covered salary for pension purposes for a plan participant of a
9.24 covered retirement fund enumerated in section 356.30,
9.25 subdivision 3, may not exceed 95 percent of the salary
9.26 established for the governor under section 15A.082 at the time
9.27 the person received the salary.
9.28 (b) This section does not apply to a salary paid:
9.29 (1) to the governor or to a judge;
9.30 (2) to an employee or an elected official who is not
9.31 subject to the limit as specified under section 43A.17,
9.32 subdivision 9;
9.33 (3) to an employee of a political subdivision in a position
9.34 that is excluded from the limit as specified under section
9.35 43A.17, subdivision 9;
9.36 (3) (4) to a state employee as defined under section
10.1 43A.02, subdivision 21;
10.2 (4) (5) to an employee of Gillette Hospital who is covered
10.3 by the general state employees retirement plan of the Minnesota
10.4 State Retirement System;
10.5 (5) (6) to an employee of the Minnesota Crop Improvement
10.6 Council; or
10.7 (6) (7) to an employee of the Minnesota Historical Society;
10.8 or
10.9 (8) to the director of the Duluth Port Authority.
10.10 (c) The limited covered salary determined under this
10.11 section must be used in determining employee and employer
10.12 contributions and in determining retirement annuities and other
10.13 benefits under the respective covered retirement fund and under
10.14 this chapter.
10.15 Sec. ... . Minnesota Statutes 2002, section 422A.01, is
10.16 amended by adding a subdivision to read:
10.17 Subd. 13a. COVERED SALARY. "Salary" is subject to the
10.18 limitations of section 356.611.
10.19 Sec. ... . Minnesota Statutes 2002, section 423B.01, is
10.20 amended by adding a subdivision to read:
10.21 Subd. 22. COVERED SALARY. "Salary" is subject to the
10.22 limitations of section 356.611.
10.23 Sec. ... . Minnesota Statutes 2002, section 423C.01, is
10.24 amended by adding a subdivision to read:
10.25 Subd. 29. COVERED SALARY. "Salary" is subject to the
10.26 limitations of section 356.611.
10.27 Sec. ... . Minnesota Statutes 2002, section 490.121, is
10.28 amended by adding a subdivision to read:
10.29 Subd. 21a. COVERED SALARY LIMITATION. "Final average
10.30 compensation" is subject to the limitations of section 356.611.
10.31 Sec. ... . EFFECTIVE DATE.
10.32 (a) Sections ... to ... are effective on the day following
10.33 final enactment.
10.34 (b) Sections ... to ... ratify the application of the prior
10.35 law and do not represent a benefit reduction.
10.36 (c) Section ... (amendment to Minnesota Statutes, section
11.1 356.611, subdivision 1) applies retroactively to April 28, 1994."
11.2 Renumber the sections in sequence
11.3 Correct the internal references
11.4 Amend the title accordingly