LCPR05-327
1.1 M ............... moves to amend S.F. No. 427; as amended
1.2 by the House of Representatives through May 10, 2005, UES0427‑1,
1.3 as follows:
1.4 Page 75, after line 2, insert:
1.5 "Section 1. Minnesota Statutes 2004, section 353.27,
1.6 subdivision 2, is amended to read:
1.7 Subd. 2. EMPLOYEE CONTRIBUTION. (a) The employee
1.8 contribution is the following applicable percentage of the total
1.9 salary amount for a "basic member" and for a "coordinated
1.10 member":
1.11 Basic Coordinated
1.12 Program Program
1.13 Before January 1, 2002 8.75 4.75
1.14 Effective January 1, 2002
1.15 Effective before January 1, 2006 9.10 5.10
1.16 Effective January 1, 2006 9.10 5.50
1.17 Effective January 1, 2007 9.10 5.75
1.18 Effective January 1, 2008 9.10 6.00 plus any
1.19 contribution
1.20 rate adjustment
1.21 under
1.22 subdivision 3b
1.23 (b) These contributions must be made by deduction from
1.24 salary as defined in section 353.01, subdivision 10, in the
2.1 manner provided in subdivision 4. Where If any portion of a
2.2 member's salary is paid from other than public funds, such the
2.3 member's employee contribution must be based on the total salary
2.4 received by the member from all sources.
2.5 Sec. 2. Minnesota Statutes 2004, section 353.27,
2.6 subdivision 3, is amended to read:
2.7 Subd. 3. EMPLOYER CONTRIBUTION. (a) The employer
2.8 contribution is the following applicable percentage of the total
2.9 salary amount for "basic members" and for "coordinated members":
2.10 Basic Coordinated
2.11 Program Program
2.12 Before January 1, 2002 8.75 4.75
2.13 Effective January 1, 2002
2.14 Effective before January 1, 2006 9.10 5.10
2.15 Effective January 1, 2006 9.10 5.50
2.16 Effective January 1, 2007 9.10 5.75
2.17 Effective January 1, 2008 9.10 6.00 plus any
2.18 contribution
2.19 rate adjustment
2.20 under
2.21 subdivision 3b
2.22 (b) This contribution must be made from funds available to
2.23 the employing subdivision by the means and in the manner
2.24 provided in section 353.28.
2.25 Sec. 3. Minnesota Statutes 2004, section 353.27,
2.26 subdivision 3a, is amended to read:
2.27 Subd. 3a. ADDITIONAL EMPLOYER CONTRIBUTION. (a) An
2.28 additional employer contribution must be made equal to (1) 2.68
2.29 percent of the following applicable percentage of the total
2.30 salary of each amount for "basic member members"; and (2)
2.31 .43 percent of the total salary of each for "coordinated member.
2.32 members":
2.33 Basic Coordinated
2.34 Program Program
2.35 Effective before January 1, 2006 2.68 .43
2.36 Effective January 1, 2006 2.68 .50
3.1 Effective January 1, 2009 2.68 .75
3.2 Effective January 1, 2010 2.68 1.00
3.3 These contributions must be made from funds available to
3.4 the employing subdivision by the means and in the manner
3.5 provided in section 353.28.
3.6 (b) The coordinated program contribution rates set forth in
3.7 paragraph (a) effective for January 1, 2009, or January 1, 2010,
3.8 must not be implemented if, following receipt of the July 1,
3.9 2008, or July 1, 2009, annual actuarial valuation reports under
3.10 section 356.215, respectively, the actuarially required
3.11 contributions are equal to or less than the total rates under
3.12 this section in effect as of January 1, 2008.
3.13 (c) This subdivision is repealed once the actuarial value
3.14 of the assets of the plan equal or exceed the actuarial accrued
3.15 liability of the plan as determined by the actuary retained by
3.16 the Legislative Commission on Pensions and Retirement under
3.17 section 356.215. The repeal is effective on the first day of
3.18 the first full pay period occurring after March 31 of the
3.19 calendar year following the issuance of the actuarial valuation
3.20 upon which the repeal is based.
3.21 Sec. 4. Minnesota Statutes 2004, section 353.27, is
3.22 amended by adding a subdivision to read:
3.23 Subd. 3b. CHANGE IN EMPLOYEE AND EMPLOYER CONTRIBUTIONS
3.24 IN CERTAIN INSTANCES. (a) For purposes of this section, a
3.25 contribution sufficiency exists if the total of the employee
3.26 contribution under subdivision 2, the employer contribution
3.27 under subdivision 3, the additional employer contribution under
3.28 subdivision 3a, and any additional contribution previously
3.29 imposed under this subdivision exceeds the total of the normal
3.30 cost, the administrative expenses, and the amortization
3.31 contribution of the retirement plan as reported in the most
3.32 recent actuarial valuation of the retirement plan prepared by
3.33 the actuary retained under section 356.214 and prepared under
3.34 section 356.215 and the standards for actuarial work of the
3.35 Legislative Commission on Pensions and Retirement. For purposes
3.36 of this section, a contribution deficiency exists if the total
4.1 of the employee contributions under subdivision 2, the employer
4.2 contributions under subdivision 3, the additional employer
4.3 contribution under subdivision 3a, and any additional
4.4 contribution previously imposed under this subdivision is less
4.5 than the total of the normal cost, the administrative expenses,
4.6 and the amortization contribution of the retirement plan as
4.7 reported in the most recent actuarial valuation of the
4.8 retirement plan prepared by the actuary retained under section
4.9 356.214 and prepared under section 356.215 and the standards for
4.10 actuarial work of the Legislative Commission on Pensions and
4.11 Retirement.
4.12 (b) Employee and employer contributions under subdivisions
4.13 2 and 3 must be adjusted:
4.14 (1) if, after July 1, 2010, the regular actuarial
4.15 valuations of the general employees retirement plan of the
4.16 Public Employees Retirement Association under section 356.215
4.17 indicate that there is a contribution sufficiency under
4.18 paragraph (a) equal to or greater than 0.5 percent of covered
4.19 payroll for two consecutive years, the coordinated program
4.20 employee and employer contribution rates must be decreased as
4.21 determined under paragraph (c) to a level such that the
4.22 sufficiency equals no more than 0.25 percent of covered payroll
4.23 based on the most recent actuarial valuation; or
4.24 (2) if, after July 1, 2010, the regular actuarial
4.25 valuations of the general employees retirement plan of the
4.26 Public Employees Retirement Association under section 356.215
4.27 indicate that there is a deficiency equal to or greater than 0.5
4.28 percent of covered payroll for two consecutive years, the
4.29 coordinated program employee and employer contribution rates
4.30 must be increased as determined under paragraph (c) to a level
4.31 such that no deficiency exists based on the most recent
4.32 actuarial valuation.
4.33 (c) The contribution rate increase or decrease must be
4.34 determined by the executive director of the Public Employees
4.35 Retirement Association, must be reported to the chair and the
4.36 executive director of the Legislative Commission on Pensions and
5.1 Retirement on or before the next February 1, and, if the
5.2 Legislative Commission on Pensions and Retirement does not
5.3 recommend against the rate change or does not recommend a
5.4 modification in the rate change, is effective on the next July 1
5.5 following the determination by the executive director that a
5.6 contribution deficiency or sufficiency has existed for two
5.7 consecutive fiscal years based on the most recent actuarial
5.8 valuations under section 356.215. If the actuarially required
5.9 contribution exceeds or is less than the total support provided
5.10 by the combined employee and employer contribution rates by more
5.11 than 0.5 percent of covered payroll, the coordinated program
5.12 employee and employer contribution rates must be adjusted
5.13 incrementally over one or more years to a level such that there
5.14 remains a contribution sufficiency of no more than 0.25 percent
5.15 of covered payroll.
5.16 (d) No incremental adjustment may exceed 0.25 percent for
5.17 either the coordinated program employee and employer
5.18 contribution rates per year in which any adjustment is
5.19 implemented. A contribution rate adjustment under this
5.20 subdivision must not be made until at least two years have
5.21 passed since fully implementing a previous adjustment under this
5.22 subdivision."
5.23 Page 76, after line 5, insert:
5.24 "Sec. 7. Minnesota Statutes 2004, section 353.65,
5.25 subdivision 2, is amended to read:
5.26 Subd. 2. EMPLOYEE CONTRIBUTION RATE. (a) The employee
5.27 contribution is an amount equal to 6.2 the percent of the total
5.28 salary of the member specified in paragraph (b). This
5.29 contribution must be made by deduction from salary in the manner
5.30 provided in subdivision 4. Where any portion of a member's
5.31 salary is paid from other than public funds, the member's
5.32 employee contribution is based on the total salary received from
5.33 all sources.
5.34 (b) For calendar year 2006, the employee contribution rate
5.35 is 7.0 percent. For calendar year 2007, the employee
5.36 contribution rate is 7.8 percent. For calendar year 2008, the
6.1 employee contribution rate is 8.6 percent. For calendar year
6.2 2009 and thereafter, the employee contribution rate is 9.4
6.3 percent.
6.4 Sec. 8. Minnesota Statutes 2004, section 353.65,
6.5 subdivision 3, is amended to read:
6.6 Subd. 3. EMPLOYER CONTRIBUTION RATE. (a) The employer
6.7 contribution shall be an amount equal to 9.3 the percent of the
6.8 total salary of every member as specified in paragraph (b).
6.9 This contribution shall be made from funds available to the
6.10 employing subdivision by the means and in the manner provided in
6.11 section 353.28.
6.12 (b) For calendar year 2006, the employer contribution rate
6.13 is 10.5 percent. For calendar year 2007, the employer
6.14 contribution rate is 11.7 percent. For calendar year 2008, the
6.15 employer contribution rate is 12.9 percent. For calendar year
6.16 2009 and thereafter, the employer contribution rate is 14.1
6.17 percent."
6.18 Page 76, line 35, delete "1 and 2" and insert "5 and 6"
6.19 Page 76, line 36, delete "3 and 4" and insert "9 and 10"
6.20 Page 77, line 2, after "(c)" insert "Sections 1 to 4 and 7
6.21 and 8 are effective on January 1, 2006.
6.22 (d)"
6.23 Renumber the sections in sequence
6.24 Amend the title accordingly