1.1 ........ moves to amend S.F. No. 2239; H.F. No. 2362, as follows:
1.2 Delete everything after the enacting clause and insert:
1.3 ”ARTICLE 1
1.4 MINNESOTA STATE RETIREMENT SYSTEM
1.5 CONTRIBUTION INCREASES
1.6 Section 1. Minnesota Statutes 2004, section 352.04, subdivision 2, is amended to read:
1.7 Subd. 2. Employee contributions. The employee contribution to the fund must be
1.8 equal to 4.0 the following percent of salary.:
1.9 before July 1, 20074.00
1.10 from July 1, 2007, to June 30, 20084.25
1.11 from July 1, 2008, to June 30, 20094.50
1.12 from July 1, 2009, to June 30, 20104.75
1.13 from July 1, 2010, and thereafter5.00.
1.14 These contributions must be made by deduction from salary as provided in
1.15 subdivision 4.
1.16 Sec. 2. Minnesota Statutes 2004, section 352.04, subdivision 3, is amended to read:
1.17 Subd. 3. Employer contributions. The employer contribution to the fund must be
1.18 equal to 4.0 the following percent of salary.:
1.19 before July 1, 20074.00
1.20 from July 1, 2007, to June 30, 20084.25
1.21 from July 1, 2008, to June 30, 20094.50
1.22 from July 1, 2009, to June 30, 20104.75
1.23 from July 1, 2010, and thereafter5.00.
1.24 Sec. 3. [352.045] PROCEDURE FOR REVISING EMPLOYEE AND
1.25 EMPLOYER CONTRIBUTIONS IN CERTAIN INSTANCES.
1.26 Subdivision 1. Application. This section applies to the general state employees
1.27 retirement plan and the correctional state employees retirement plan under this chapter,
1.28 and to the state patrol retirement plan under chapter 352B.
2.1 Subd. 2. Determination. For purposes of this section, a contribution sufficiency
2.2 exists if, for purposes of the applicable plan, the total of the employee contributions,
2.3 the employer contributions, and any additional employer contributions, if applicable,
2.4 exceeds the total of the normal cost, the administrative expenses, and the amortization
2.5 contribution of the retirement plan as reported in the most recent actuarial valuation of the
2.6 retirement plan prepared by the actuary retained under section 356.214 and prepared under
2.7 section 356.215 and the standards for actuarial work of the Legislative Commission on
2.8 Pensions and Retirement. For purposes of this section, a contribution deficiency exists
2.9 if, for the applicable plan, the total employee contributions, employer contributions, and
2.10 any additional employer contributions are less than the total of the normal cost, the
2.11 administrative expenses, and the amortization contribution of the retirement plan as
2.12 reported in the most recent actuarial valuation of the retirement plan prepared by the
2.13 actuary retained under section 356.214 and prepared under section 356.215 and the
2.14 standards for actuarial work of the Legislative Commission on Pensions and Retirement.
2.15 Subd. 3. Contribution rate revision. Notwithstanding the contribution rate
2.16 provisions stated in plan law, the employee and employer contribution rates must be
2.17 adjusted:
2.18 (1) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under
2.19 section 356.215 indicate that there is a contribution sufficiency under subdivision 2 equal
2.20 to or greater than 0.5 percent of covered payroll for two consecutive years, the employee
2.21 and employer contribution rates for the applicable plan must be decreased as determined
2.22 under subdivision 4 to a level such that the sufficiency equals no more than 0.25 percent of
2.23 covered payroll based on the most recent actuarial valuation; or
2.24 (2) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under
2.25 section 356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of
2.26 covered payroll for two consecutive years, the employee and employer contribution rates
2.27 for the applicable plan must be increased as determined under subdivision 4 to a level such
2.28 that no deficiency exists based on the most recent actuarial valuation.
2.29 Subd. 4. Reporting, commission review. (a) The contribution rate increase or
2.30 decrease must be determined by the executive director of the Minnesota State Retirement
2.31 System, must be reported to the chair and the executive director of the Legislative
2.32 Commission on Pensions and Retirement on or before the next February 1, and, if the
2.33 Legislative Commission on Pensions and Retirement does not recommend against the
2.34 rate change or does not recommend a modification in the rate change, is effective on the
2.35 next July 1 following the determination by the executive director that a contribution
2.36 deficiency or sufficiency has existed for two consecutive fiscal years based on the most
3.1 recent actuarial valuations under section 356.215. If the actuarially required contribution
3.2 exceeds or is less than the total support provided by the combined employee and employer
3.3 contribution rates for the applicable plan by more than 0.5 percent of covered payroll, the
3.4 applicable plan employee and employer contribution rates must be adjusted incrementally
3.5 over one or more years to a level such that there remains a contribution sufficiency of no
3.6 more than 0.25 percent of covered payroll.
3.7 (b) No incremental adjustment may exceed 0.25 percent of payroll for either the
3.8 employee or employer contribution rates per year in which any adjustment is implemented.
3.9 For an applicable plan, a contribution rate adjustment under this section must not be
3.10 made until at least two years have passed since fully implementing a previous adjustment
3.11 under this section.
3.12 Sec. 4. Minnesota Statutes 2004, section 352.92, subdivision 1, is amended to read:
3.13 Subdivision 1. Employee contributions. Employee contributions of covered
3.14 correctional employees must be in an amount equal to 5.69 the following percent of salary.:
3.15 before July 1, 20075.69
3.16 from July 1, 2007, to June 30, 20086.40
3.17 from July 1, 2008, to June 30, 20097.00
3.18 from July 1, 2009, to June 30, 20107.70
3.19 from July 1, 2010, and thereafter8.60.
3.20 These contributions must be made by deduction from salary as provided in section
3.21 352.04, subdivision 4.
3.22 Sec. 5. Minnesota Statutes 2004, section 352.92, subdivision 2, is amended to read:
3.23 Subd. 2. Employer contributions. The employer shall contribute for covered
3.24 correctional employees an amount equal to 7.98 the following percent of salary.:
3.25 before July 1, 20077.98
3.26 from July 1, 2007, to June 30, 20089.10
3.27 from July 1, 2008, to June 30, 200910.10
3.28 from July 1, 2009, to June 30, 201011.10
3.29 from July 1, 2010, and thereafter12.10.
3.30 Sec. 6. Minnesota Statutes 2004, section 352B.02, subdivision 1a, is amended to read:
3.31 Subd. 1a. Member contributions. Each member shall pay a sum equal to 8.40 the
3.32 following percent of the member's salary, which shall constitute the member contribution
3.33 to the fund.:
3.34 before July 1, 20078.40
3.35 from July 1, 2007, to June 30, 20089.10
3.36 from July 1, 2008, to June 30, 20099.80
3.37 from July 1, 2009, and thereafter10.40.
4.1 These contributions must be made by deduction from salary as provided in section
4.2 352.04, subdivision 4.
4.3 Sec. 7. Minnesota Statutes 2004, section 352B.02, subdivision 1c, is amended to read:
4.4 Subd. 1c. Employer contributions. In addition to member contributions,
4.5 department heads shall pay a sum equal to 12.60 the following percent of the salary upon
4.6 which deductions were made, which shall constitute the employer contribution to the fund.:
4.7 before July 1, 200712.60
4.8 from July 1, 2007, to June 30, 200813.60
4.9 from July 1, 2008, to June 30, 200914.60
4.10 from July 1, 2009, and thereafter15.60.
4.11 Department contributions must be paid out of money appropriated to departments
4.12 for this purpose.
4.13 Sec. 8. Minnesota Statutes 2004, section 352D.04, subdivision 2, is amended to read:
4.14 Subd. 2. Contribution rates. (a) The money used to purchase shares under this
4.15 section is the employee and employer contributions provided in this subdivision.
4.16 (b) The employee contribution is an amount equal to the employee contribution
4.17 specified in section 352.04, subdivision 2 four percent of salary.
4.18 (c) The employer contribution is an amount equal to six percent of salary.
4.19 (d) These contributions must be made in the manner provided in section 352.04,
4.20 subdivisions 4, 5, and 6.
4.21 (e) For members of the legislature, the contributions under this subdivision also must
4.22 be made on per diem payments received during a regular or special legislative session, but
4.23 may not be made on per diem payments received outside of a regular or special legislative
4.24 session, on the additional compensation attributable to a leadership position under section
4.25 3.099, subdivision 3, living expense payments under section 3.101, or special session
4.26 living expense payments under section 3.103.
4.27 (f) For a judge who is a member of the unclassified plan under section 352D.02,
4.28 subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
4.29 of salary, and there is no employer contribution.
4.30 Sec. 9. EFFECTIVE DATE.
4.31 (a) Sections 1, 2, 3, and 8 are effective July 1, 2007.
4.32 (b) Sections 4, 5, 6, and 7 are effective July 1, 2006.
4.33 ARTICLE 2
4.34 MSRS-CORRECTIONAL RETIREMENT PLAN INCLUSIONS
4.35 Section 1. Minnesota Statutes 2004, section 352.90, is amended to read:
4.36 352.90 POLICY.
5.1 It is the policy of the legislature to provide special retirement benefits for and special
5.2 contributions for by certain correctional employees who may be required to retire at
5.3 an early age because they lose the mental or physical capacity required to maintain the
5.4 safety, security, discipline, and custody of inmates at state correctional facilities or of
5.5 patients at the Minnesota Security Hospital or at, of patients in the Minnesota Sexual
5.6 Psychopathic Personality Treatment Center Sex Offender Program, or of patients in the
5.7 Minnesota extended treatment options on-campus program at the Cambridge Regional
5.8 Human Services Center.
5.9 Sec. 2. Minnesota Statutes 2004, section 352.91, subdivision 1, is amended to read:
5.10 Subdivision 1. Qualifying jobs. "Covered correctional service" means service
5.11 performed by a state employee, as defined in section 352.01, employed at a state
5.12 correctional facility, the Minnesota Security Hospital, or the Minnesota Sexual
5.13 Psychopathic Personality Treatment Center Sex Offender Program as:
5.14 (1) a corrections officer 1;
5.15 (2) a corrections officer 2;
5.16 (3) a corrections officer 3;
5.17 (4) a corrections officer supervisor;
5.18 (5) a corrections officer 4 lieutenant;
5.19 (6) a corrections captain;
5.20 (7) a security counselor; or
5.21 (8) a security counselor lead; or
5.22 (9) a corrections canine officer.
5.23 Sec. 3. Minnesota Statutes 2004, section 352.91, subdivision 2, is amended to read:
5.24 Subd. 2. Maintenance, correctional industry, and trades. "Covered correctional
5.25 service" also means service rendered at any time by state employees as maintenance
5.26 personnel and, correctional industry personnel, or members of trades certified by the
5.27 commissioner of employee relations to the executive director as being regularly engaged
5.28 for at least 75 percent of the employee's working time in the rehabilitation, treatment,
5.29 custody, or supervision of inmates at a Minnesota correctional facility, or of patients at
5.30 the Minnesota Security Hospital or at the Minnesota Sexual Psychopathic Personality
5.31 Treatment Center Sex Offender Program.
5.32 Sec. 4. Minnesota Statutes 2004, section 352.91, subdivision 3c, is amended to read:
5.33 Subd. 3c. Nursing personnel. (a) "Covered correctional service" means service by
5.34 a state employee in one of the employment positions at a correctional facility or at the
5.35 Minnesota Security Hospital, or in the Minnesota Sex Offender Program that are specified
6.1 in paragraph (b), provided that if at least 75 percent of the employee's working time is
6.2 spent in direct contact with inmates or patients and the fact of this direct contact is certified
6.3 to the executive director by the appropriate commissioner, unless the person elects to
6.4 retain the current retirement coverage under Laws 1996, chapter 408, article 8, section 21.
6.5 (b) The employment positions are as follows:
6.6 (1) registered nurse - senior;
6.7 (2) registered nurse;
6.8 (3) registered nurse - principal;
6.9 (4)
6.10 licensed practical nurse 2; and
6.11 (5) registered nurse practitioner advance practice.
6.12 Sec. 5. Minnesota Statutes 2004, section 352.91, subdivision 3d, is amended to read:
6.13 Subd. 3d. Other correctional personnel. (a) "Covered correctional service" means
6.14 service by a state employee in one of the employment positions at a correctional facility or
6.15 at the Minnesota Security Hospital specified in paragraph (b), provided that if at least 75
6.16 percent of the employee's working time is spent in direct contact with inmates or patients
6.17 and the fact of this direct contact is certified to the executive director by the appropriate
6.18 commissioner, unless the person elects to retain the current retirement coverage under
6.19 Laws 1996, chapter 408, article 8, section 21.
6.20 (b) The employment positions are as follows: baker,; central services administrative
6.21 specialist, intermediate; central services administrative specialist, principal; chaplain;
6.22 chemical dependency counselor supervisor,; chief cook,; cook,; cook coordinator,
6.23 corrections behavior therapist, corrections behavior therapist specialist, corrections parent
6.24 education coordinator,; corrections program therapist 1; corrections program therapist 2;
6.25 corrections program therapist 3; corrections inmate program coordinator; corrections
6.26 transitions program coordinator; corrections security caseworker,; corrections security
6.27 caseworker career,; corrections teaching assistant,; delivery van driver; dentist,; electrician
6.28 supervisor,; general maintenance worker; general repair worker,; laundry coordinator;
6.29 library/information research services specialist,; library/information research services
6.30 specialist senior,; library technician; plumber supervisor,; psychologist 1; psychologist
6.31 3,; recreation therapist,; recreation therapist coordinator,; recreation program assistant,;
6.32 recreation therapist senior, stores clerk senior,; sports medicine specialist; water treatment
6.33 plant operator, work therapy technician,; work therapy assistant,; work therapy program
6.34 coordinator; and work therapy technician.
7.1 (c) "Covered correctional service" also means service as the director or as an
7.2 assistant group supervisor of the Phoenix/Pomiga treatment/behavior change program of
7.3 the Department of Corrections.
7.4 Sec. 6. Minnesota Statutes 2004, section 352.91, subdivision 3e, is amended to read:
7.5 Subd. 3e. Minnesota extended treatment options program; Cambridge. (a)
7.6 "Covered correctional service" means service by a state employee in one of the following
7.7 employment positions with the Minnesota extended treatment options on-campus program
7.8 at the Cambridge Regional Human Services Center specified in paragraph (b) if at least 75
7.9 percent of the employee's working time is spent in direct contact with patients who are
7.10 in the Minnesota extended treatment options program and if service in such a position
7.11 is certified to the executive director by the commissioner of human services, unless the
7.12 person elects to retain current retirement coverage under section 6.
7.13 (b) The employment positions are:
7.14 (1) behavior analyst I 1;
7.15 (2) behavior analyst 2;
7.16 (3) behavior analyst 3;
7.17 (4) group supervisor;
7.18 (5) group supervisor assistant;
7.19 (6) human services support specialist;
7.20 (3) (7) mental retardation residential program lead;
7.21 (4) (8) psychologist 2;
7.22 (5) (9) recreation program assistant;
7.23 (6) (10) recreation therapist senior;
7.24 (7) registered nurse senior;(11)
7.25 (8) (12) skills development specialist; and
7.26 (9) (13) social worker senior;
7.27 (14) social worker specialist; and
7.28 (15) speech pathology specialist.
7.29 Sec. 7. Minnesota Statutes 2004, section 352.91, subdivision 3f, is amended to read:
7.30 Subd. 3f. Additional Department of Human Services personnel. (a) "Covered
7.31 correctional service" means service by a state employee in one of the employment
7.32 positions specified in paragraph (b) at the Minnesota Security Hospital or in the Minnesota
7.33 Sexual Psychopathic Personality Treatment Center, provided that Sex Offender Program if
7.34 at least 75 percent of the employee's working time is spent in direct contact with patients
7.35 and the fact determination of this direct contact is certified to the executive director by the
7.36 commissioner of human services.
8.1 (b) The employment positions are:
8.2 (1) behavior analyst 2;
8.3 (2) licensed practical nurse 1 behavior analyst 3;
8.4 (3) chemical dependency counselor senior;
8.5 (4) client advocate;
8.6 (5) dental assistant registered;
8.7 (6) group supervisor;
8.8 (7) group supervisor assistant;
8.9 (8) licensed practical nurse 1;
8.10 (9) occupational therapist;
8.11 (10) occupational therapist, senior;
8.12 (11) office and administrative specialist senior;
8.13 (4) (12) psychologist 1;
8.14 (13) psychologist 2;
8.15 (5) (14) psychologist 3;
8.16 (15) recreation program assistant;
8.17 (16) recreation therapist senior;
8.18 (17) rehabilitation counselor senior;
8.19 (18) skills development specialist;
8.20 (19) social worker senior;
8.21 (20) social worker specialist;
8.22 (6) behavior analyst 3 (21) social worker specialist, senior;
8.23 (22) speech pathology clinician;
8.24 (23) work therapy assistant; and
8.25 (7) social worker senior (24) work therapy program coordinator.
8.26 Sec. 8. Minnesota Statutes 2004, section 352.91, subdivision 3g, is amended to read:
8.27 Subd. 3g. Additional Corrections Department personnel. (a) "Covered
8.28 correctional service" means service by a state employee in one of the employment
8.29 positions at the designated Minnesota correctional facility specified in paragraph (b) if at
8.30 least 75 percent of the employee's working time is spent in direct contact with inmates
8.31 and the fact determination of this direct contact is certified to the executive director by
8.32 the commissioner of corrections.
8.33 (b) The qualifying employment positions and the designated correctional facilities
8.34 are:
8.35 (1) corrections discipline unit supervisor, at the Minnesota Correctional
8.36 Facility-Faribault, the Minnesota Correctional Facility-Lino Lakes, the Minnesota
9.1 Correctional Facility-Oak Park Heights, the Minnesota Correctional Facility-Rush City,
9.2 and the Minnesota Correctional Facility-St. Cloud;
9.3 (2) dental assistant registered, at the Minnesota Correctional Facility-Faribault, the
9.4 Minnesota Correctional Facility-Lino Lakes, the Minnesota Correctional Facility-Moose
9.5 Lake, the Minnesota Correctional Facility-Oak Park Heights, and the Minnesota
9.6 Correctional Facility-Red Wing;
9.7 (3) dental hygienist, at the Minnesota Correctional Facility-Shakopee and the
9.8 Minnesota Correctional Facility-Rush City;
9.9 (4) psychologist 2, at the Minnesota Correctional Facility-Faribault, the Minnesota
9.10 Correctional Facility-Lino Lakes, the Minnesota Correctional Facility-Moose Lake,
9.11 the Minnesota Correctional Facility-Oak Park Heights, the Minnesota Correctional
9.12 Facility-Red Wing, the Minnesota Correctional Facility-Rush City, the Minnesota
9.13 Correctional Facility-St. Cloud, the Minnesota Correctional Facility-Shakopee, and the
9.14 Minnesota Correctional Facility-Stillwater; orand
9.15 (5) sentencing to service crew leader involved with the inmate community work
9.16 crew program, at the Minnesota Correctional Facility-Faribault and the Minnesota
9.17 Correctional Facility-Lino Lakes.
9.18 Sec. 9. Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision
9.19 to read:
9.20 Subd. 3h. Employment occupation name changes. (a) If the occupational title of a
9.21 state employee covered by the Minnesota correctional employees retirement plan changes
9.22 from the applicable title listed in subdivision 1a, 2, 2a, 3c, 3d, 3e, 3f, or 3g, qualification
9.23 for coverage by the correctional state employees retirement plan continues until the July 1
9.24 next following the title change if the commissioner of employee relations certifies to the
9.25 executive director of the Minnesota State Retirement System and to the executive director
9.26 of the Legislative Commission on Pensions and Retirement that the duties, requirements,
9.27 and responsibilities of the new occupational title are substantially identical to the duties,
9.28 requirements, and responsibilities of the prior occupational title.
9.29 (b) If the commissioner of employee relations does not certify a new occupational
9.30 title under paragraph (a), eligibility for future correctional state employees retirement
9.31 coverage terminates as of the start of the first payroll period next following the effective
9.32 date of the occupational title change.
9.33 (c) For consideration by the Legislative Commission on Pensions and Retirement
9.34 during the legislative session next following an occupational title change involving a
9.35 state employee in covered correctional service, the commissioner of employee relations
10.1 shall submit the applicable draft proposed legislation accommodating the occupational
10.2 title change in this section.
10.3 Sec. 10. Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision
10.4 to read:
10.5 Subd. 3i. Lateral transfers to new correctional facilities. If a new correctional
10.6 facility is established, a state employee rendering covered correctional service immediately
10.7 before the transfer remains eligible for coverage by the correctional state employees
10.8 retirement plan for future state employment at the new facility if the person is employed in
10.9 the same occupational title at the new facility. The eligibility for future coverage continues
10.10 until the July 1 next following the effective date of the establishment of the new facility.
10.11 Sec. 11. Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision
10.12 to read:
10.13 Subd. 4b. Department of Corrections; procedure for coverage change
10.14 considerations. (a) The commissioner of corrections shall appoint a standing review
10.15 committee to review and determine positions that should be included in legislative
10.16 requests for correctional employees retirement plan coverage under subdivision 4a.
10.17 (b) The review committee must include relevant department employees and
10.18 employee representatives. Periodically, the Department of Corrections will convene
10.19 meetings of the review committee. The review committee must review all requests and
10.20 the supporting documentation for coverage by the correctional employees retirement
10.21 plan and must determine which classes or positions meet the statutory requirements for
10.22 coverage. The review committee also must determine if incumbents of and recent retirees
10.23 from classes or positions determined for inclusion in correctional employees retirement
10.24 plan coverage have prior Department of Corrections employment which also qualified as
10.25 correctional service and which should be transferred from the general state employees
10.26 retirement plan to the plan and the initial date for each potential service credit transfer.
10.27 (c) The department must provide a notice of each determination and of the
10.28 employee's right to appeal from the review committee to each employee who requested
10.29 inclusion. Appeals must be filed with the agency human resource manager within 30 days
10.30 of the date of the notice of determination.
10.31 (d) The commissioner of corrections shall appoint a standing appeals committee to
10.32 hear appeals of determinations for coverage. Appeal committee determinations are final.
10.33 (e) All positions approved for inclusion must be forwarded to the commissioner
10.34 of corrections for the preparation of legislation to implement the coverage change and
10.35 submission. The commissioner will submit a written recommendation documenting
10.36 classes or positions that should or should not be covered by the correctional employees
11.1 retirement plan. Documentation of each request and the final determination must be
11.2 retained in the Department of Corrections' office of human resource management.
11.3 Sec. 12. COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN
11.4 PERSONS.
11.5 Subdivision 1. Election of prior state coverage. (a) An employee in the
11.6 occupational position of laundry coordinator or delivery van driver at the Minnesota
11.7 Correctional Facility-Faribault who has future retirement coverage transferred to the
11.8 correctional state employees retirement plan under section 5 is entitled to elect to obtain
11.9 prior service credit for eligible correctional state service performed after June 30, 1997,
11.10 and before July 1, 2006, with the Department of Corrections and an employee who had
11.11 future retirement coverage transferred to the correctional state employees retirement
11.12 plan under Laws 2004, chapter 267, article 1, section 1, is entitled to elect to obtain
11.13 prior service credit for eligible correctional state service performed at the Minnesota
11.14 Correctional Facility-Rush City before August 1, 2004. All prior service credit in either
11.15 instance must be purchased.
11.16 (b) Eligible correctional state service is either a prior period of continuous service
11.17 after June 30, 1997, at the Minnesota Correctional Facility-Faribault, or a prior period
11.18 of continuous service at the Minnesota Correctional Facility-Rush City before August 1,
11.19 2004, whichever applies, performed as an employee of the Department of Corrections that
11.20 would have been eligible for the correctional state employees retirement plan coverage
11.21 under section 1, if that prior service had been performed after August 1, 2004, or June 30,
11.22 2006, rather than before August 1, 2004, or July 1, 2006, whichever applies. Service is
11.23 continuous if there has been no period of discontinuation of eligible state service for a
11.24 period greater than 30 calendar days.
11.25 (c) The commissioner of corrections shall certify eligible correctional state service
11.26 to the commissioner of employee relations and to the executive director of the Minnesota
11.27 State Retirement System.
11.28 (d) A correctional employee covered under section 1 is entitled to purchase the past
11.29 service if the department certifies that the employee met the eligibility requirements for
11.30 coverage. The employee must make additional employee contributions. Payment for past
11.31 service must be completed by June 30, 2007.
11.32 Subd. 2. Payment for prior service. (a) An employee electing to obtain prior
11.33 service credit under subdivision 1 must pay an additional employee contribution for
11.34 that prior service. The additional member contribution is the contribution differential
11.35 percentage applied to the actual salary paid to the employee during the period of the
11.36 prior eligible correctional state service, plus interest at the rate of 8.5 percent per annum,
12.1 compounded annually. The contribution differential percentage is the difference between
12.2 5.69 percent of salary and the applicable employee contribution rate of the general state
12.3 employees retirement plan during the period of the prior eligible correctional state service.
12.4 (b) The additional member contribution may be paid only in a lump sum. Payment
12.5 must accompany the election to obtain prior service credit. No election or payment may
12.6 be made by the person or accepted by the executive director of the Minnesota State
12.7 Retirement System after June 30, 2007.
12.8 Subd. 3. Transfer of assets. (a) Assets must be transferred from the general state
12.9 employees retirement plan to the correctional state employees retirement plan in an
12.10 amount equal to the present value of benefits earned under the general state employees
12.11 retirement plan for each employee transferring to the correctional state employees
12.12 retirement plan under this section, as determined by the actuary retained under Minnesota
12.13 Statutes, section 356.214, in accordance with Minnesota Statutes, section 356.215,
12.14 multiplied by the accrued liability funding ratio of active members as derived from the
12.15 most recent actuarial valuation prepared by the actuary retained under Minnesota Statutes,
12.16 section 356.214.. The transfer of assets must be made within 30 days after the employee
12.17 elects to transfer the coverage to the correctional state employees retirement plan.
12.18 (b) The Department of Corrections shall pay the cost of the actuarial work performed
12.19 by the actuary retained under Minnesota Statutes, section 356.214, under paragraph (a)
12.20 upon receipt of a billing from the executive director of the Public Employees Retirement
12.21 Association.
12.22 Subd. 4. Effect of the asset transfer. Upon the transfer of assets in subdivision
12.23 3, service credit in the general state employees retirement plan of the Minnesota State
12.24 Retirement System is forfeited and may not be reinstated. The service credit and
12.25 transferred assets must be credited to the correctional state employees retirement plan.
12.26 Sec. 13. SERVICE CREDIT TRANSFER TO CORRECTIONAL PLAN.
12.27 Subdivision 1. Authorization. If the review of the corrections program director
12.28 position of the eligible individual under Minnesota Statutes 2005 Supplement, section
12.29 352.91, subdivision 4a, results in the inclusion of the corrections program director position
12.30 in the correctional state employees retirement plan of the Minnesota State Retirement
12.31 System by legislative enactment during the 2006 or 2007 legislative sessions, an eligible
12.32 individual specified in subdivision 2 is authorized to have service credit in the Minnesota
12.33 State Retirement System general state employees retirement plan for employment as
12.34 a corrections program director from June 17, 1995, to June 5, 2001, transferred from
12.35 the Minnesota State Retirement System general state employees retirement plan to the
13.1 Minnesota State Retirement System correctional state employees retirement plan, if all
13.2 conditions required by this section are met.
13.3 Subd. 2. Eligibility. An eligible individual is an individual who:
13.4 (1) was born on November 14, 1956;
13.5 (2) is currently employed as a corrections lieutenant;
13.6 (3) was covered by the Minnesota State Retirement System correctional state
13.7 employees retirement plan for service provided from November 1, 1980, to June 16, 1995;
13.8 (4) was covered by the Minnesota State Retirement System general state employees
13.9 retirement plan for employment as a corrections program director from June 17, 1995, to
13.10 June 5, 2001; and
13.11 (5) is covered by the Minnesota State Retirement System correctional state
13.12 employees retirement plan for employment as a corrections lieutenant beginning June
13.13 6, 2001.
13.14 Subd. 3. Employee equivalent contribution. To receive the transfer of service
13.15 credit specified in subdivision 1, the individual must pay to the executive director of the
13.16 Minnesota State Retirement System the difference between the employee contribution rate
13.17 for the general state employees retirement plan and the employee contribution rate for
13.18 the correctional state employees retirement plan in effect during the period eligible for
13.19 transfer applied to the eligible individual's salary at the time each additional contribution
13.20 would have been deducted from pay if coverage had been provided by the correctional
13.21 state employees retirement plan. These amounts shall be paid in a lump sum by September
13.22 1, 2005, or prior to termination of service, whichever is earlier, plus 8.5 percent annual
13.23 compound interest from the applicable payroll deduction date until paid.
13.24 Subd. 4. Employer equivalent. The eligible individual shall also pay to the
13.25 executive director of the Minnesota State Retirement System the difference between
13.26 the employer contribution rate for the general state employees retirement plan and the
13.27 employer contribution rate for the correctional state employees retirement plan in effect
13.28 during the period eligible for transfer applied to the eligible individual's salary at the
13.29 time each additional contribution would have been deducted from pay if coverage had
13.30 been provided by the correctional state employees retirement plan. These amounts shall
13.31 be paid in a lump sum at the same time as the amount under subdivision 3, with interest
13.32 as specified in that subdivision.
13.33 Subd. 5. Transfer of assets. If payments under subdivisions 3 and 4 are made,
13.34 assets must be transferred from the general state employees retirement plan fund to the
13.35 correctional state employees retirement plan fund in an amount equal to the present value
14.1 of benefits earned by the eligible individual under the general state employees retirement
14.2 plan, as determined by the actuary retained under section 356.214 in accordance with
14.3 Minnesota Statutes, section 356.215. The transfer of assets must be made within 45 days
14.4 after the receipt of payments under subdivisions 3 and 4.
14.5 Subd. 6. Effect of the asset transfer. Upon transfer of assets in subdivision 5,
14.6 service credit in the general state employees retirement plan of the Minnesota State
14.7 Retirement System is forfeited and may not be reinstated. The service credit and
14.8 transferred assets must be credited to the correctional state employees retirement plan.
14.9 Subd. 7. Payment of actuarial calculation costs. The expense for the calculations
14.10 by the actuary under subdivision 5 must be paid by the Department of Corrections.
14.11 Sec. 14. EFFECTIVE DATE.
14.12 (a) Sections 1 to 8, 12, and 13 are effective the first day of the first payroll period
14.13 next following the date of enactment.
14.14 (b) Sections 9, 10, and 11 are effective the day following final enactment.
14.15 (c) Section 13 is effective July 1, 2006, applies retroactively to permit a transfer
14.16 by an eligible individual of service credit before January 1, 2008, even if the eligible
14.17 individual has terminated active state employment before July 1, 2007, and, if the eligible
14.18 individual is in receipt of a retirement annuity from the correctional state employees
14.19 retirement plan of the Minnesota State Retirement System on or before July 1, 2007,
14.20 allows the eligible individual to have the retirement annuity recalculated on the basis
14.21 of any transferred service credit.
14.22 (d) The addition of the reference to "correctional industry" in section 3 is a
14.23 clarification of the existing provision and is not intended to be the basis for the addition of
14.24 any employment position to plan coverage beyond the employment positions included
14.25 on January 15, 2006, unless there is a change in the duties of an employment position
14.26 connected with correctional industries that increases the regularly occurring direct inmate
14.27 contact of the position to in excess of 75 percent and the inclusion of the position as
14.28 "correctional industry personnel" is approved by the commissioner of employee relations.
14.29 ARTICLE 3
14.30 RETIREMENT PLAN ADMINISTRATIVE PROVISIONS
14.31 Section 1. Minnesota Statutes 2004, section 136F.45, subdivision 1a, is amended to
14.32 read:
14.33 Subd. 1a. Subsequent vendor contracts. (a) The board may limit the number
14.34 of vendors under subdivision 1.
15.1 (b) In addition to any other tax-sheltered annuity program investment options, the
15.2 board may offer as an investment option the Minnesota supplemental investment fund
15.3 administered by the State Board of Investment under section 11A.17.
15.4 (c) For the tax-sheltered annuity program vendor contracts executed after July 1,
15.5 2000, The board shall actively solicit participation of and shall include as vendors lower
15.6 expense and "no-load" mutual funds or equivalent investment products as those terms are
15.7 defined by the federal Securities and Exchange Commission. To the extent possible, in
15.8 addition to a range of insurance annuity contract providers and other mutual fund provider
15.9 arrangements, the board must assure that no less than five insurance annuity providers
15.10 and no less than one nor more than three lower expense and "no-load" mutual funds or
15.11 equivalent investment products will be made available for direct-access by employee
15.12 participants. To the extent that offering a lower expense "no-load" product increases the
15.13 total necessary and reasonable expenses of the program and if the board is unable to
15.14 negotiate a rebate of fees from the mutual fund or equivalent investment product providers,
15.15 the board may charge the participants utilizing the lower expense "no-load" mutual fund
15.16 products a fee to cover those expenses. The participant fee may not exceed one percent
15.17 of the participant's annual contributions or $20 per participant per year, whichever is
15.18 greater. Any excess fee revenue generated under this subdivision must be reimbursed to
15.19 participant accounts in the manner provided in subdivision 3a.
15.20 Sec. 2. Minnesota Statutes 2004, section 352.113, subdivision 7a, is amended to read:
15.21 Subd. 7a. Temporary reemployment benefit reduction waiver. (a) A reduction in
15.22 benefits under subdivision 7, or a termination of benefits due to the disabled employee
15.23 resuming a gainful occupation from which earnings are equal to or more than the
15.24 employee's salary at the date of disability or the salary currently paid for similar positions
15.25 does not apply until six months after the individual returns to a gainful occupation.
15.26 (b) No deductions for the retirement fund may be taken from the salary of a disabled
15.27 person who is attempting to return to work under this provision unless the member waives
15.28 further disability benefits.
15.29 (c) A member may return to employment and continue disability benefit payments
15.30 under this subdivision only once while receiving disability benefits from a plan
15.31 administered by the Minnesota State Retirement System.
15.32 Sec. 3. Minnesota Statutes 2004, section 352.116, subdivision 3a, is amended to read:
15.33 Subd. 3a. Bounce-back annuity. (a) If a retired employee or disabilitant selects
15.34 a joint and survivor annuity option under subdivision 3 after June 30, 1989, the retired
15.35 employee or disabilitant must receive a normal single-life annuity if the designated
15.36 optional annuity beneficiary dies before the retired employee or disabilitant. Under this
16.1 option, no reduction may be made in the annuity to provide for restoration of the normal
16.2 single-life annuity in the event of the death of the designated optional annuity beneficiary.
16.3 (b) A retired employee or disabilitant who selected an optional joint and survivor
16.4 annuity before July 1, 1989, but did not choose an option that provides that the normal
16.5 single-life annuity is payable to the retired employee or the disabilitant if the designated
16.6 optional annuity beneficiary dies first, is eligible for restoration of the normal single-life
16.7 annuity if the designated optional annuity beneficiary dies first, without further actuarial
16.8 reduction of the person's annuity. A retired employee or disabilitant who selected an
16.9 optional joint and survivor annuity, but whose designated optional annuity beneficiary died
16.10 before July 1, 1989, shall receive a normal single-life annuity after that date, but shall not
16.11 receive retroactive payments for periods before that date The annuity adjustment specified
16.12 in paragraph (a) also applies to joint and survivor annuity options under subdivision
16.13 3 elected prior to July 1, 1989. The annuity adjustment under this paragraph occurs on
16.14 July 1, 1989, or on the first day of the first month following the death of the designated
16.15 optional annuity beneficiary, whichever is later. This paragraph should not be interpreted
16.16 as authorizing retroactive payments.
16.17 (c) A retired employee or disabilitant who took a further actuarial reduction to elect
16.18 an optional joint and survivor annuity that provides that the normal annuity is payable
16.19 to the retired employee or disabilitant if the designated optional beneficiary died before
16.20 July 1, 1989, shall have the annuity increased as of July 1, 1989, to the amount the person
16.21 would have received if, at the time of retirement or disability, the person had selected only
16.22 optional survivor coverage that would not have provided for restoration of the normal
16.23 annuity upon the death of the designated optional annuity beneficiary. Any annuity or
16.24 benefit increase under this paragraph is effective only for payments made after June 30,
16.25 1989, and is not retroactive for payments made before July 1, 1989.
16.26 Sec. 4. Minnesota Statutes 2004, section 352.116, subdivision 3b, is amended to read:
16.27 Subd. 3b. Bounce-back annuity. (a) The board of directors must provide a joint
16.28 and survivor annuity option to members of the correctional employees and State Patrol
16.29 retirement funds. Under this option, if a former member or disabilitant selects a joint
16.30 and survivor annuity option after June 30, 1989, the former member or disabilitant must
16.31 receive a normal single life annuity if the designated optional annuity beneficiary dies
16.32 before the former member or disabilitant. Under this option, no reduction may be made
16.33 in the person's annuity to provide for restoration of the normal single life annuity in the
16.34 event of the death of the designated optional annuity beneficiary.
16.35 (b) A former member or disabilitant of the correctional or State Patrol fund who
16.36 selected an optional joint and survivor annuity before July 1, 1989, but did not choose an
17.1 option that provides that the normal single life annuity is payable to the former member
17.2 or the disabilitant if the designated optional annuity beneficiary dies first, is eligible for
17.3 restoration of the normal single life annuity if the designated optional annuity beneficiary
17.4 dies first, without further actuarial reduction of the person's annuity. A former member
17.5 or disabilitant who selected an optional joint and survivor annuity, but whose designated
17.6 optional annuity beneficiary died before July 1, 1989, shall receive a normal single life
17.7 annuity after that date, but shall not receive retroactive payments for periods before that
17.8 date The annuity adjustment specified in paragraph (a) also applies to joint and survivor
17.9 annuity options elected prior to July 1, 1989. The annuity adjustment under this paragraph
17.10 occurs on July 1, 1989, or on the first day of the first month following the death of the
17.11 designated optional annuity beneficiary, whichever is later. This paragraph should not be
17.12 interpreted as authorizing retroactive payments.
17.13 (c) A former member or disabilitant who took a further actuarial reduction to elect
17.14 an optional joint and survivor annuity that provides that the normal annuity is payable to
17.15 the former member or disabilitant if the designated optional beneficiary died before July
17.16 1, 1989, shall have their annuity increased as of July 1, 1989, to the amount the person
17.17 would have received if, at the time of retirement or disability, the person had selected only
17.18 optional survivor coverage that would not have provided for restoration of the normal
17.19 annuity upon the death of the designated optional annuity beneficiary. Any annuity or
17.20 benefit increase under this paragraph is effective only for payments made after June 30,
17.21 1989, and is not retroactive for payments made before July 1, 1989.
17.22 Sec. 5. Minnesota Statutes 2004, section 353.01, subdivision 2a, is amended to read:
17.23 Subd. 2a. Included employees. (a) Public employees whose salary from one
17.24 governmental subdivision exceeds $425 in any month shall participate as members of the
17.25 association. If the salary is less than $425 in a subsequent month, the employee retains
17.26 membership eligibility. Eligible public employees shall participate as members of the
17.27 association with retirement coverage by the public employees retirement plan or the public
17.28 employees police and fire retirement plan under this chapter, or the local government
17.29 correctional employees retirement plan under chapter 353E, whichever applies, as a
17.30 condition of their employment on the first day of employment unless they:
17.31 (1) are specifically excluded under subdivision 2b;
17.32 (2) do not exercise their option to elect retirement coverage in the association as
17.33 provided in subdivision 2d, paragraph (a); or
17.34 (3) are employees of the governmental subdivisions listed in subdivision 2d,
17.35 paragraph (b), where the governmental subdivision has not elected to participate as a
17.36 governmental subdivision covered by the association.
18.1 (b) A public employee who was a member of the association on June 30, 2002,
18.2 based on employment that qualified for membership coverage by the public employees
18.3 retirement plan or the public employees police and fire plan under this chapter, or the local
18.4 government correctional employees retirement plan under chapter 353E as of June 30,
18.5 2002, retains that membership until the employee terminates public employment under
18.6 subdivision 11a or terminates membership under subdivision 11b.
18.7 (c) Public employees under paragraph (a) includes physicians under section
18.8 353D.01, subdivision 2, who do not elect public employees defined contribution plan
18.9 coverage under section 353D.02, subdivision 2.
18.10 Sec. 6. Minnesota Statutes 2005 Supplement, section 353.01, subdivision 2d, is
18.11 amended to read:
18.12 Subd. 2d. Optional membership. (a) Membership in the association is optional
18.13 by action of the individual employee for the following public employees who meet the
18.14 conditions set forth in subdivision 2a:
18.15 (1) members of the coordinated plan who are also employees of labor organizations
18.16 as defined in section 353.017, subdivision 1, for their employment by the labor
18.17 organization only if they elect to have membership under section 353.017, subdivision 2;
18.18 (2) persons who are elected or persons who are appointed to elected positions other
18.19 than local governing body elected positions who elect to participate by filing a written
18.20 election for membership;
18.21 (3) members of the association who are appointed by the governor to be a state
18.22 department head and who elect not to be covered by the general state employees retirement
18.23 plan of the Minnesota State Retirement System under section 352.021;
18.24 (4) city managers as defined in section 353.028, subdivision 1, who do not elect to be
18.25 excluded from membership in the association under section 353.028, subdivision 2; and
18.26 (5) employees of the Port Authority of the city of St. Paul who were at least age 45
18.27 on January 1, 2003, who were at least age 45 on that date, and who elect to participate by
18.28 filing a written election for membership.
18.29 (b) Membership in the association is optional by action of the governmental
18.30 subdivision for the employees of the following governmental subdivisions under the
18.31 conditions specified:
18.32 (1) the Minnesota Association of Townships if the board of the association, at its
18.33 option, certifies to the executive director that its employees are to be included for purposes
18.34 of retirement coverage, in which case the status of the association as a participating
18.35 employer is permanent;
19.1 (2) a county historical society if the county in which the historical society is located,
19.2 at its option, certifies to the executive director that the employees of the historical society
19.3 are to be county employees for purposes of retirement coverage under this chapter. The
19.4 status as a county employee must be accorded to all similarly situated county historical
19.5 society employees and, once established, must continue as long as a person is an employee
19.6 of the county historical society; and
19.7 (3) Hennepin Healthcare System, Inc., a public corporation, with respect to
19.8 employees other than paramedics, emergency medical technicians, and protection officers,
19.9 if the corporate board establishes alternative retirement plans for certain classes of
19.10 employees of the corporation and certifies the employees to be excluded from future
19.11 retirement coverage.
19.12 (c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or
19.13 covered by paragraph (b), clause (1) or (2), if the necessary membership election is
19.14 not made, the employee is excluded from retirement coverage under this chapter. For
19.15 employees who are covered by paragraph (a), clause (4), if the necessary election is not
19.16 made, the employee must become a member and have retirement coverage under this
19.17 chapter. For employees specified in paragraph (b), clause (3), membership continues until
19.18 the exclusion option is exercised for the designated class of employee. The option to
19.19 become a member, once exercised under this subdivision, may not be withdrawn until
19.20 termination of public service as defined under subdivision 11a.
19.21 Sec. 7. Minnesota Statutes 2004, section 353.01, subdivision 11a, is amended to read:
19.22 Subd. 11a. Termination of public service. (a) "Termination of public service"
19.23 occurs when a member resigns or is dismissed from public service by the employing
19.24 governmental subdivision or when a position ends and the member who held the position
19.25 is not considered by the governmental subdivision to be on a temporary layoff, and
19.26 the employee does not, within 30 days of the date the employment relationship ended,
19.27 return to an employment position in the same governmental subdivision or when the
19.28 employer-employee relationship is severed due to the expiration of a layoff under
19.29 subdivision 12 or 12c.
19.30 (b) The termination of public service must be recorded in the association records
19.31 upon receipt of an appropriate notice from the governmental subdivision.
19.32 Sec. 8. Minnesota Statutes 2004, section 353.01, subdivision 11b, is amended to read:
19.33 Subd. 11b. Termination of membership. (a) "Termination of membership" means
19.34 the conclusion of membership in the association for a person who has not terminated
19.35 public service under subdivision 11a and occurs:
19.36 (1) upon termination of public service under subdivision 11a;
20.1 (2) when a member does not return to work within 30 days of the expiration of
20.2 an authorized temporary layoff under subdivision 12 or an authorized leave of absence
20.3 under subdivision 31 as evidenced by the appropriate record filed by the governmental
20.4 subdivision; or
20.5 (3) when a person files a written election with the association to discontinue
20.6 employee deductions under section 353.27, subdivision 7, paragraph (a), clause (1);
20.7 (2) when a city manager files a written election with the association to discontinue
20.8 employee deductions under section 353.028, subdivision 2; or
20.9 (3) when a member transfers to a temporary position and becomes excluded from
20.10 membership under subdivision 2b, clause (4).
20.11 (b) The termination of membership under clause (3) must be reported to the
20.12 association by the governmental subdivision.
20.13 (c) If the employee subsequently returns to a position in the same governmental
20.14 subdivision, the employee shall not again be required to earn a salary in excess of $425 per
20.15 month to qualify for membership, unless the employee has taken a refund of accumulated
20.16 employee deduction plus interest under section 353.34, subdivision 1.
20.17 Sec. 9. Minnesota Statutes 2004, section 353.01, subdivision 12, is amended to read:
20.18 Subd. 12. Authorized temporary or seasonal layoff. "Authorized temporary
20.19 or seasonal layoff," including seasonal leave of absence, means a suspension of public
20.20 service for a limited period during a year authorized by the employing governmental
20.21 subdivision for a period not exceeding three months in any calendar year, as evidenced by
20.22 appropriate record of the employer and promptly transmitted to the association member
20.23 who is expected to return to the same position at the end of the layoff period and for which
20.24 there has been no termination of public service under subdivision 11a.
20.25 Sec. 10. Minnesota Statutes 2004, section 353.01, is amended by adding a subdivision
20.26 to read:
20.27 Subd. 12c. Indefinite layoff. "Indefinite layoff" occurs when a member is placed on
20.28 a layoff that is not a temporary or seasonal layoff under subdivision 12, for which no date
20.29 has been specified by the employing governmental subdivision for the employee's return
20.30 to work, and there has been no termination of public service under subdivision 11a.
20.31 Sec. 11. Minnesota Statutes 2004, section 353.01, subdivision 16, is amended to read:
20.32 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
20.33 means:
21.1 (1) service during years of actual membership in the course of which employee
21.2 contributions were made, periods covered by payments in lieu of salary deductions under
21.3 section 353.35;
21.4 (2) service in years during which the public employee was not a member but for
21.5 which the member later elected, while a member, to obtain credit by making payments to
21.6 the fund as permitted by any law then in effect;
21.7 (3) a period of authorized leave of absence with pay from which deductions for
21.8 employee contributions are made, deposited, and credited to the fund;
21.9 (4) a period of authorized personal, parental, or medical leave of absence without
21.10 pay, including a leave of absence covered under the federal Family Medical Leave Act,
21.11 that does not exceed one year, and during or for which a member obtained service credit
21.12 for each month in the leave period by payments to the fund made in place of salary
21.13 deductions. The payments must be made in an amount or amounts based on the member's
21.14 average salary on which deductions were paid for the last six months of public service, or
21.15 for that portion of the last six months while the member was in public service, to apply to
21.16 the period in either case that immediately precedes the commencement of the leave of
21.17 absence. If the employee elects to pay the employee contributions for the period of any
21.18 authorized personal, parental, or medical leave of absence without pay, or for any portion
21.19 of the leave, the employee shall also, as a condition to the exercise of the election, pay
21.20 to the fund an amount equivalent to the required employer and the additional employer
21.21 contributions, if any, for the employee. The payment must be made within one year from
21.22 the expiration of the leave of absence or within 20 days after termination of public service
21.23 under subdivision 11a, whichever is earlier. The employer, by appropriate action of its
21.24 governing body which is made a part of its official records and which is adopted before the
21.25 date of the first payment of the employee contribution, may certify to the association in
21.26 writing its commitment to pay the employer and additional employer contributions from
21.27 the proceeds of a tax levy made under section 353.28. Payments under this paragraph must
21.28 include interest at an annual rate of 8.5 percent compounded annually from the date of the
21.29 termination of the leave of absence to the date payment is made. An employee shall return
21.30 to public service and render a minimum of three months of allowable service in order to
21.31 be eligible to pay employee and employer contributions for a subsequent authorized leave
21.32 of absence without pay. Upon payment, the employee must be granted allowable service
21.33 credit for the purchased period;
21.34 (5) a periodic, repetitive leave that is offered to all employees of a governmental
21.35 subdivision. The leave program may not exceed 208 hours per annual normal work
21.36 cycle as certified to the association by the employer. A participating member obtains
22.1 service credit by making employee contributions in an amount or amounts based on the
22.2 member's average salary that would have been paid if the leave had not been taken. The
22.3 employer shall pay the employer and additional employer contributions on behalf of the
22.4 participating member. The employee and the employer are responsible to pay interest on
22.5 their respective shares at the rate of 8.5 percent a year, compounded annually, from the
22.6 end of the normal cycle until full payment is made. An employer shall also make the
22.7 employer and additional employer contributions, plus 8.5 percent interest, compounded
22.8 annually, on behalf of an employee who makes employee contributions but terminates
22.9 public service. The employee contributions must be made within one year after the end of
22.10 the annual normal working cycle or within 20 days after termination of public service,
22.11 whichever is sooner. The association shall prescribe the manner and forms to be used by a
22.12 governmental subdivision in administering a periodic, repetitive leave. Upon payment, the
22.13 member must be granted allowable service credit for the purchased period;
22.14 (6) an authorized temporary or seasonal layoff under subdivision 12, limited to three
22.15 months allowable service per authorized temporary or seasonal layoff in one calendar year.
22.16 An employee who has received the maximum service credit allowed for an authorized
22.17 temporary or seasonal layoff must return to public service and must obtain a minimum of
22.18 three months of allowable service subsequent to the layoff in order to receive allowable
22.19 service for a subsequent authorized temporary or seasonal layoff; or
22.20 (7) a period during which a member is absent from employment by a governmental
22.21 subdivision by reason of service in the uniformed services, as defined in United States
22.22 Code, title 38, section 4303(13), if the member returns to public service upon discharge
22.23 from service in the uniformed service within the time frames required under United
22.24 States Code, title 38, section 4312(e), provided that the member did not separate from
22.25 uniformed service with a dishonorable or bad conduct discharge or under other than
22.26 honorable conditions. The service is credited if the member pays into the fund equivalent
22.27 employee contributions based upon the contribution rate or rates in effect at the time
22.28 that the uniformed service was performed multiplied by the full and fractional years
22.29 being purchased and applied to the annual salary rate. The annual salary rate is the
22.30 average annual salary during the purchase period that the member would have received
22.31 if the member had continued to be employed in covered employment rather than to
22.32 provide uniformed service, or, if the determination of that rate is not reasonably certain,
22.33 the annual salary rate is the member's average salary rate during the 12-month period of
22.34 covered employment rendered immediately preceding the period of the uniformed service.
22.35 Payment of the member equivalent contributions must be made during a period which
22.36 begins with the date on which the individual returns to public employment and that is three
23.1 times the length of the military leave period, or within five years of the date of discharge
23.2 from the military service, whichever is less. If the determined payment period is less than
23.3 one year, the contributions required under this clause to receive service credit may be
23.4 made within one year of the discharge date. Payment may not be accepted following 20
23.5 days after termination of public service under subdivision 11a. If the member equivalent
23.6 contributions provided for in this clause are not paid in full, the member's allowable
23.7 service credit must be prorated by multiplying the full and fractional number of years of
23.8 uniformed service eligible for purchase by the ratio obtained by dividing the total member
23.9 contributions received by the total member contributions otherwise required under this
23.10 clause. The equivalent employer contribution, and, if applicable, the equivalent additional
23.11 employer contribution must be paid by the governmental subdivision employing the
23.12 member if the member makes the equivalent employee contributions. The employer
23.13 payments must be made from funds available to the employing unit, using the employer
23.14 and additional employer contribution rate or rates in effect at the time that the uniformed
23.15 service was performed, applied to the same annual salary rate or rates used to compute the
23.16 equivalent member contribution. The governmental subdivision involved may appropriate
23.17 money for those payments. The amount of service credit obtainable under this section may
23.18 not exceed five years unless a longer purchase period is required under United States Code,
23.19 title 38, section 4312. The employing unit shall pay interest on all equivalent member and
23.20 employer contribution amounts payable under this clause. Interest must be computed at
23.21 a rate of 8.5 percent compounded annually from the end of each fiscal year of the leave
23.22 or the break in service to the end of the month in which the payment is received. Upon
23.23 payment, the employee must be granted allowable service credit for the purchased period.
23.24 (b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for
23.25 state officers and employees displaced by the Community Corrections Act, chapter 401,
23.26 and transferred into county service under section 401.04, "allowable service" means the
23.27 combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
23.28 section 352.01, subdivision 11.
23.29 (c) For a public employee who has prior service covered by a local police or
23.30 firefighters relief association that has consolidated with the Public Employees Retirement
23.31 Association or to which section 353.665 applies, and who has elected the type of benefit
23.32 coverage provided by the public employees police and fire fund either under section
23.33 353A.08 following the consolidation or under section 353.665, subdivision 4, "applicable
23.34 service" is a period of service credited by the local police or firefighters relief association
23.35 as of the effective date of the consolidation based on law and on bylaw provisions
23.36 governing the relief association on the date of the initiation of the consolidation procedure.
24.1 (d) No member may receive more than 12 months of allowable service credit in a
24.2 year either for vesting purposes or for benefit calculation purposes.
24.3 (e) MS 2002 (Expired)
24.4 Sec. 12. Minnesota Statutes 2004, section 353.03, subdivision 1, is amended to read:
24.5 Subdivision 1. Management; composition; election. (a) The management of the
24.6 public employees retirement fund is vested in an 11-member board of trustees consisting
24.7 of ten members and the state auditor who. The state auditor may designate a deputy
24.8 auditor with expertise in pension matters as the auditor's representative on the board. The
24.9 governor shall appoint five trustees to four-year terms, one of whom shall be designated to
24.10 represent school boards, one to represent cities, one to represent counties, one who is a
24.11 retired annuitant, and one who is a public member knowledgeable in pension matters. The
24.12 membership of the association, including recipients of retirement annuities and disability
24.13 and survivor benefits, shall elect five trustees for terms of four years, one of whom must
24.14 be a member of the police and fire fund and one of whom must be a former member
24.15 who met the definition of public employee under section 353.01, subdivisions 2 and
24.16 2a, for at least five years prior to terminating membership or a member who receives a
24.17 disability benefit, for terms of four years. Terms expire on January 31 of the fourth year,
24.18 and positions are vacant until newly elected members are seated. Except as provided in
24.19 this subdivision, trustees elected by the membership of the association must be public
24.20 employees and members of the association.
24.21 (b) For seven days beginning October 1 of each year preceding a year in which
24.22 an election is held, the association shall accept at its office filings in person or by mail
24.23 of candidates for the board of trustees. A candidate shall submit at the time of filing a
24.24 nominating petition signed by 25 or more members of the fund association. No name may
24.25 be withdrawn from nomination by the nominee after October 15. At the request of a
24.26 candidate for an elected position on the board of trustees, the board shall mail a statement
24.27 of up to 300 words prepared by the candidate to all persons eligible to vote in the election
24.28 of the candidate. The board may adopt policies, subject to review and approval by the
24.29 secretary of state under paragraph (e), to govern the form and length of these statements,
24.30 timing of mailings, and deadlines for submitting materials to be mailed. These policies
24.31 must be approved by the secretary of state. The secretary of state shall resolve disputes
24.32 between the board and a candidate concerning application of these policies to a particular
24.33 statement.
24.34 (c) By January 10 of each year in which elections are to be held, the board shall
24.35 distribute by mail to the members ballots listing the candidates. No member may vote for
24.36 more than one candidate for each board position to be filled. A ballot indicating a vote for
25.1 more than one person for any position is void. No special marking may be used on the
25.2 ballot to indicate incumbents. Ballots mailed to the association must be postmarked no
25.3 later than January 31. The ballot envelopes must be so designated and the ballots counted
25.4 in a manner that ensures that each vote is secret.
25.5 (d) A candidate who:
25.6 (1) receives contributions or makes expenditures in excess of $100;, or
25.7 (2) has given implicit or explicit consent for any other person to receive contributions
25.8 or make expenditures in excess of $100 for the purpose of bringing about the candidate's
25.9 election, shall file a report with the campaign finance and public disclosure board
25.10 disclosing the source and amount of all contributions to the candidate's campaign. The
25.11 campaign finance and public disclosure board shall prescribe forms governing these
25.12 disclosures. Expenditures and contributions have the meaning defined in section 10A.01.
25.13 These terms do not include the mailing made by the association board on behalf of the
25.14 candidate. A candidate shall file a report within 30 days from the day that the results of
25.15 the election are announced. The Campaign Finance and Public Disclosure Board shall
25.16 maintain these reports and make them available for public inspection in the same manner
25.17 as the board maintains and makes available other reports filed with it. By January 10
25.18 of each year in which elections are to be held the board shall distribute by mail to the
25.19 members ballots listing the candidates. No member may vote for more than one candidate
25.20 for each board position to be filled. A ballot indicating a vote for more than one person for
25.21 any position is void. No special marking may be used on the ballot to indicate incumbents.
25.22 The last day for mailing ballots to the fund is January 31. Terms expire on January 31 of
25.23 the fourth year, and positions are vacant until newly elected members are qualified. The
25.24 ballot envelopes must be so designed and the ballots counted in a manner that ensures
25.25 that each vote is secret.
25.26 (e) The secretary of state shall supervise review and approve the procedures defined
25.27 by the board of trustees for conducting the elections specified in this subdivision, including
25.28 board policies adopted under paragraph (b).
25.29 (f) The board of trustees and the executive director shall undertake their activities
25.30 consistent with chapter 356A.
25.31 Sec. 13. Minnesota Statutes 2004, section 353.03, subdivision 1a, is amended to read:
25.32 Subd. 1a. Vacancy, how filled. Any vacancy on the board caused by death,
25.33 resignation, or removal of any trustee, or occurring because an elected trustee ceases to be
25.34 a public employee and an active member of the association, must be filled by the board
25.35 for trustees elected by members, and by the governor for other trustees, for the unexpired
26.1 portion of the term in which the vacancy occurs. The board shall adopt policies and
26.2 procedures governing how the vacancy of an elected trustee is to be filled.
26.3 Sec. 14. Minnesota Statutes 2004, section 353.03, is amended by adding a subdivision
26.4 to read:
26.5 Subd. 2b. Board legal authority. The board is authorized to take legal action when
26.6 necessary to effectively administer the various plans administered by the association,
26.7 consistent with applicable articles of incorporation, bylaws, law, and rules, as applicable,
26.8 and including but not limited to the recapture of overpaid annuities, benefits, or refunds,
26.9 and the correction of omitted or deficient deductions.
26.10 Sec. 15. Minnesota Statutes 2004, section 353.27, subdivision 7, is amended to read:
26.11 Subd. 7. Adjustment for erroneous receipts or disbursements. (a) Except
26.12 as provided in paragraph (b), erroneous employee deductions and erroneous employer
26.13 contributions and additional employer contributions for a person, who otherwise does not
26.14 qualify for membership under this chapter, are considered:
26.15 (1) valid if the initial erroneous deduction began before January 1, 1990. Upon
26.16 determination of the error by the association, the person may continue membership in the
26.17 association while employed in the same position for which erroneous deductions were
26.18 taken, or file a written election to terminate membership and apply for a refund upon
26.19 termination of public service or defer an annuity under section 353.34; or
26.20 (2) invalid, if the initial erroneous employee deduction began on or after January
26.21 1, 1990. Upon determination of the error, the association shall require the employer
26.22 to discontinue erroneous employee deductions and erroneous employer contributions
26.23 and additional employer contributions. Upon discontinuance, the association shall
26.24 refund all erroneous employee deductions to the person, with interest, under section
26.25 353.34, subdivision 2, and all erroneous employer contributions and additional employer
26.26 contributions to the employer as specified in paragraph (d). No person may claim a right
26.27 to continued or past membership in the association based on erroneous deductions which
26.28 began on or after January 1, 1990.
26.29 (b) Erroneous deductions taken from the salary of a person who did not qualify
26.30 for membership in the association by virtue of concurrent employment before July 1,
26.31 1978, which required contributions to another retirement fund or relief association
26.32 established for the benefit of officers and employees of a governmental subdivision, are
26.33 invalid. Upon discovery of the error, the association shall remove all invalid service and
26.34 upon termination of public service, the association shall refund all erroneous employee
26.35 deductions to the person, with interest under section 353.34, subdivision 2, and all
27.1 erroneous employer contributions to the employer. This paragraph has both retroactive
27.2 and prospective application.
27.3 (c) Employer contributions and employee deductions taken in error from amounts
27.4 which are not salary under section 353.01, subdivision 10, are invalid upon discovery by
27.5 the association and may must be refunded at any time as specified in paragraph (d).
27.6 (d) Upon discovery of the receipt of erroneous deductions and contributions under
27.7 paragraph (a), clause (2), or paragraph (c), the association must require the employer to
27.8 discontinue the erroneous employee deductions and erroneous employer contributions.
27.9 Upon discontinuation, the association must refund the invalid employee deductions to the
27.10 person without interest and invalid employer contributions to the employer or provide a
27.11 credit against future contributions payable by the employer for the amount of all erroneous
27.12 deductions and contributions. In the event a retirement annuity or disability benefit had
27.13 been computed using invalid service or salary, the association must adjust the annuity or
27.14 benefit and recover the overpayment under subdivision 7b.
27.15 (e) In the event a salary warrant or check from which a deduction for the retirement
27.16 fund was taken has been canceled or the amount of the warrant or check returned to the
27.17 funds of the department making the payment, a refund of the sum deducted, or a portion of
27.18 it that is required to adjust the deductions, must be made to the department or institution.
27.19 (f) Any refund to a member under this subdivision that would cause the plan to fail
27.20 to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, may
27.21 not be refunded and instead must be credited against future contributions payable by the
27.22 employer. The employer receiving the credit is responsible for refunding to the applicable
27.23 employee any amount that had been erroneously deducted from the person's salary.
27.24 Sec. 16. Minnesota Statutes 2004, section 353.27, subdivision 7a, is amended to read:
27.25 Subd. 7a. Deductions or contributions transmitted by error. (a) If employee
27.26 deductions and employer contributions were erroneously transmitted to the association,
27.27 but should have been transmitted to another Minnesota public pension plan, the
27.28 association shall transfer the erroneous employee deductions and employer contributions
27.29 to the appropriate retirement fund or individual account, as applicable, without interest.
27.30 The time limitations in subdivisions 7 and 12 do not apply.
27.31 (b) For purposes of this subdivision, a Minnesota public pension plan means a
27.32 plan specified in section 356.30, subdivision 3, or the plan plans governed by chapter
27.33 chapters 353D and 354B.
27.34 (c) A potential transfer under paragraph (a) that would cause the plan to fail to be a
27.35 qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be
27.36 made by the executive director of the association. Within 30 days after being notified by
28.1 the Public Employees Retirement Association of an unmade potential transfer under this
28.2 paragraph, the employer of the affected person must transmit an amount representing the
28.3 applicable salary deductions and employer contributions, without interest, to the retirement
28.4 fund of the appropriate Minnesota public pension plan, or to the individual account if the
28.5 proper coverage is by a defined contribution plan. The association must provide a credit
28.6 for the amount of the erroneous salary deductions and employer contributions against
28.7 future contributions from the employer.
28.8 Sec. 17. Minnesota Statutes 2004, section 353.27, subdivision 7b, is amended to read:
28.9 Subd. 7b. Overpayments to members. In the event of an overpayment to a
28.10 member, retiree, beneficiary, or other person, the executive director shall recover the
28.11 overpayment by suspending or reducing the payment of a retirement annuity, refund,
28.12 disability benefit, survivor benefit, or optional annuity under this chapter until all
28.13 outstanding money has been recovered.
28.14 Sec. 18. Minnesota Statutes 2005 Supplement, section 353.28, subdivision 6, is
28.15 amended to read:
28.16 Subd. 6. Collection of unpaid amounts. (a) If a governmental subdivision which
28.17 receives the direct proceeds of property taxation fails to pay an amount due under chapter
28.18 353, 353A, 353B, 353C, or 353D, the executive director shall certify the amount to the
28.19 governmental subdivision for payment. If the governmental subdivision fails to remit the
28.20 sum so due in a timely fashion, the executive director shall certify the amount to the
28.21 applicable county auditor for collection. The county auditor shall collect the amount
28.22 out of the revenue of the governmental subdivision, or shall add the amount to the levy
28.23 of the governmental subdivision and make payment directly to the association. This
28.24 tax must be levied, collected, and apportioned in the manner that other taxes are levied,
28.25 collected, and apportioned.
28.26 (b) If a governmental subdivision which is not funded directly from the proceeds
28.27 of property taxation fails to pay an amount due under this chapter, the executive director
28.28 shall certify the amount to the governmental subdivision for payment. If the governmental
28.29 subdivision fails to pay the amount for a period of 60 days after certification, the executive
28.30 director shall certify the amount to the commissioner of finance, who shall deduct the
28.31 amount from any subsequent state-aid payment or state appropriation amount applicable
28.32 to the governmental subdivision and make payment directly to the association.
28.33 Sec. 19. Minnesota Statutes 2004, section 353.29, subdivision 8, is amended to read:
28.34 Subd. 8. Annuities; payment; evidence of receipt. Payment of any annuity or
28.35 benefit for a given month shall be mailed by the association to the annuitant, recipient
29.1 of a disability benefit, or survivor, or automatically deposited under section 356.401,
29.2 subdivision 2, during the first week of that month. Evidence of receipt of warrants issued
29.3 by the association in payment of an annuity or benefit shall be submitted by the payee
29.4 thereof to the association periodically at times specified by the board of trustees, together
29.5 with a written declaration that the annuitant or recipient of a disability benefit has or
29.6 has not returned to public service; that the surviving dependent spouse has or has not
29.7 remarried; and shall be furnished on forms provided by the executive director thereof,
29.8 before the association shall pay to the disability recipient or survivor for the next ensuing
29.9 month, the benefit to which the person otherwise may be entitled. In lieu of the evidence
29.10 of receipt of warrants for recipients of an annuity or a benefit, The board may contract
29.11 for professional services to identify deceased annuitants and benefit recipients through a
29.12 review of nationally maintained death records.
29.13 Sec. 20. Minnesota Statutes 2004, section 353.30, subdivision 3a, is amended to read:
29.14 Subd. 3a. Bounce-back annuity. (a) If a former member or disabilitant selects a
29.15 joint and survivor annuity option under subdivision 3 after June 30, 1989, the former
29.16 member or disabilitant must receive a normal single life annuity if the designated optional
29.17 annuity beneficiary dies before the former member or disabilitant. Under this option, no
29.18 reduction may be made in the person's annuity to provide for restoration of the normal
29.19 single life annuity in the event of the death of the designated optional annuity beneficiary.
29.20 (b) A former member or disabilitant who selected an optional joint and survivor
29.21 annuity before July 1, 1989, but did not choose an option that provides that the normal
29.22 single life annuity is payable to the former member or the disabilitant if the designated
29.23 optional annuity beneficiary dies first, is eligible for restoration of the normal single life
29.24 annuity if the designated optional annuity beneficiary dies first, without further actuarial
29.25 reduction of the person's annuity. A former member or disabilitant who selected an
29.26 optional joint and survivor annuity, but whose designated optional annuity beneficiary died
29.27 before July 1, 1989, shall receive a normal single life annuity after that date, but shall not
29.28 receive retroactive payments for periods before that date The annuity adjustment specified
29.29 in paragraph (a) also applies to joint and survivor annuity options under subdivision
29.30 3 elected prior to July 1, 1989. The annuity adjustment under this paragraph occurs on
29.31 July 1, 1989, or on the first day of the first month following the death of the designated
29.32 optional annuity beneficiary, whichever is later. This paragraph should not be interpreted
29.33 as authorizing retroactive payments.
29.34 (c) A former member or disabilitant who took a further actuarial reduction to elect
29.35 an optional joint and survivor annuity that provides that the normal annuity is payable to
29.36 the former member or disabilitant if the designated optional beneficiary dies first but has
30.1 not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the
30.2 amount the person would have received if, at the time of retirement or disability, the person
30.3 had selected only optional survivor coverage that would not have provided for restoration
30.4 of the normal annuity upon the death of the designated optional annuity beneficiary. Any
30.5 annuity or benefit increase under this paragraph is effective only for payments made after
30.6 June 30, 1989, and is not retroactive for payments made before July 1, 1989.
30.7 Sec. 21. Minnesota Statutes 2004, section 353.30, subdivision 3b, is amended to read:
30.8 Subd. 3b. Bounce-back annuity. (a) The board of trustees must provide a joint
30.9 and survivor annuity option to members of the police and fire fund. Under this option, a
30.10 If a joint and survivor annuity is elected on or after July 1, 1989, the former member or
30.11 disabilitant must receive a normal single life annuity if the designated optional annuity
30.12 beneficiary dies before the former member or disabilitant. Under this option, no reduction
30.13 may be made in the person's annuity to provide for restoration of the normal single life
30.14 annuity in the event of the death of the designated optional annuity beneficiary.
30.15 (b) A former member or disabilitant of the police and fire fund who selected an
30.16 optional joint and survivor annuity before July 1, 1989, but did not choose an option
30.17 that provides that the normal single life annuity is payable to the former member or
30.18 the disabilitant if the designated optional annuity beneficiary dies first, is eligible for
30.19 restoration of the normal single life annuity if the designated optional annuity beneficiary
30.20 dies first, without further actuarial reduction of the person's annuity. A former member
30.21 or disabilitant who selected an optional joint and survivor annuity, but whose designated
30.22 optional annuity beneficiary died before July 1, 1989, shall receive a normal single life
30.23 annuity after that date, but shall not receive retroactive payments for periods before that
30.24 date The annuity adjustment specified in paragraph (a) also applies to joint and survivor
30.25 annuity options under subdivision 3 elected prior to July 1, 1989. The annuity adjustment
30.26 under this paragraph occurs on July 1, 1989, or on the first day of the first month following
30.27 the death of the designated optional annuity beneficiary, whichever is later. This paragraph
30.28 should not be interpreted as authorizing retroactive payments.
30.29 (c) A former member or disabilitant who took a further actuarial reduction to elect
30.30 an optional joint and survivor annuity that provides that the normal annuity is payable to
30.31 the former member or disabilitant if the designated optional beneficiary dies first but has
30.32 not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the
30.33 amount the person would have received if, at the time of retirement or disability, the person
30.34 had selected only optional survivor coverage that would not have provided for restoration
30.35 of the normal annuity upon the death of the designated optional annuity beneficiary. Any
31.1 annuity or benefit increase under this paragraph is effective only for payments made after
31.2 June 30, 1989, and is not retroactive for payments made before July 1, 1989.
31.3 Sec. 22. Minnesota Statutes 2004, section 353.32, subdivision 1a, is amended to read:
31.4 Subd. 1a. Surviving spouse optional annuity. (a) If a member or former member
31.5 who has credit for not less than three years of allowable service and dies before the
31.6 annuity or disability benefit begins to accrue under section 353.29, subdivision 7, or
31.7 353.33, subdivision 2, notwithstanding any designation of beneficiary to the contrary, the
31.8 surviving spouse may elect to receive, instead of a refund with interest under subdivision
31.9 1, or surviving spouse benefits otherwise payable under section 353.31, an annuity equal
31.10 to the 100 percent joint and survivor annuity that the member could have qualified for
31.11 had the member terminated service on the date of death.
31.12 (b) If the member was under age 55 and has credit for at least 30 years of allowable
31.13 service on the date of death, the surviving spouse may elect to receive a 100 percent joint
31.14 and survivor annuity based on the age of the member and surviving spouse on the date
31.15 of death. The annuity is payable using the full early retirement reduction under section
31.16 353.30, subdivisions 1b and 1c, to age 55 and one-half of the early retirement reduction
31.17 from age 55 to the age payment begins.
31.18 (c) If the member was under age 55 and has credit for at least three years of
31.19 allowable service on the date of death but did not qualify for retirement, the surviving
31.20 spouse may elect to receive the 100 percent joint and survivor annuity based on the age of
31.21 the member and surviving spouse at the time of death. The annuity is payable using the
31.22 full early retirement reduction under section 353.30, subdivision 1, 1b, 1c, or 5, to age 55
31.23 and one-half of the early retirement reduction from age 55 to the age payment begins.
31.24 (d) Notwithstanding the definition of surviving spouse in section 353.01, subdivision
31.25 20, a former spouse of the member, if any, is entitled to a portion of the monthly surviving
31.26 spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed
31.27 with the association. If there is no surviving spouse or child or children, a former spouse
31.28 may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a
31.29 marriage dissolution decree but not a monthly surviving spouse optional annuity despite
31.30 the terms of a marriage dissolution decree filed with the association.
31.31 (e) The surviving spouse eligible for surviving spouse benefits under paragraph (a)
31.32 may apply for the annuity at any time after the date on which the deceased employee
31.33 would have attained the required age for retirement based on the employee's allowable
31.34 service. The surviving spouse eligible for surviving spouse benefits under paragraph (b)
31.35 or (c) may apply for an annuity any time after the member's death. The annuity must be
32.1 computed under sections 353.29, subdivisions 2 and 3; and 353.30, subdivisions 1, 1a,
32.2 1b, 1c, and 5; and 353.31, subdivision 3.
32.3 (f) Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred
32.4 annuity or surviving spouse benefit payable under this subdivision. No payment may
32.5 accrue beyond the end of the month in which entitlement to the annuity has terminated
32.6 or upon expiration of the term certain benefit payment under subdivision 1b. An amount
32.7 equal to any excess of the accumulated contributions that were credited to the account of
32.8 the deceased employee over and above the total of the annuities paid and payable to the
32.9 surviving spouse must be paid to the deceased member's last designated beneficiary or, if
32.10 none, as specified under subdivision 1 surviving spouse's estate.
32.11 (g) A member may specify in writing that this subdivision does not apply and that
32.12 payment may be made only to the designated beneficiary as otherwise provided by this
32.13 chapter. The waiver of a surviving spouse annuity under this section does not make a
32.14 dependent child eligible for benefits under subdivision 1c.
32.15 Sec. 23. Minnesota Statutes 2004, section 353.32, subdivision 1b, is amended to read:
32.16 Subd. 1b. Survivor coverage term certain. (a) In lieu of the 100 percent optional
32.17 annuity under subdivision 1a, or a refund under subdivision 1, the surviving spouse of
32.18 a deceased member may elect to receive survivor coverage for a term certain of five,
32.19 ten, 15, or 20 years, but monthly payments must not exceed 75 percent of the average
32.20 high-five monthly salary of the deceased member. The monthly term certain annuity must
32.21 be actuarially equivalent to the 100 percent optional annuity under subdivision 1a.
32.22 (b) If a surviving spouse elects a term certain annuity and dies before the expiration
32.23 of the specified term certain period, the commuted value of the remaining annuity
32.24 payments must be paid in a lump sum to the survivor's estate.
32.25 Sec. 24. Minnesota Statutes 2004, section 353.33, subdivision 1, is amended to read:
32.26 Subdivision 1. Age, service, and salary requirements. A coordinated member
32.27 who has at least three years of allowable service and becomes totally and permanently
32.28 disabled before normal retirement age, and a basic member who has at least three years
32.29 of allowable service and who becomes totally and permanently disabled is entitled to a
32.30 disability benefit in an amount determined under subdivision 3. If the disabled person's
32.31 public service has terminated at any time, at least two of the required three years of
32.32 allowable service must have been rendered after last becoming a an active member. A
32.33 repayment of a refund must be made within six months after the effective date of disability
32.34 benefits under subdivision 2 or within six months after the date of the filing of the
32.35 disability application, whichever is later. No purchase of prior service or payment made
32.36 in lieu of salary deductions otherwise authorized under section 353.01, subdivision 16,
33.1 353.017, subdivision 4, or 353.36, subdivision 2, may be made after the occurrence of the
33.2 disability for which an application under this section is filed.
33.3 Sec. 25. Minnesota Statutes 2004, section 353.33, subdivision 9, is amended to read:
33.4 Subd. 9. Return to public service employment. (a) Any person receiving a
33.5 disability benefit under this section who is restored to active public service except persons
33.6 receiving benefits as provided in employment not covered by subdivision 7, or 7a shall
33.7 have the disability benefit discontinued on the first day of the month following the return
33.8 to employment.
33.9 (b) If the person is employed by a governmental subdivision as defined under
33.10 section 353.01, subdivision 6, deductions must be taken for the retirement fund and upon
33.11 subsequent retirement have the retirement annuity payable based upon all allowable
33.12 service including that upon which the disability benefits were based.
33.13 (c) If the employment is not through public service covered under this chapter, the
33.14 account may be placed on a deferred status and the subsequent retirement annuity must
33.15 be calculated as provided in section 353.34, subdivision 3, if the person meets the length
33.16 of allowable service requirement stated in that subdivision; or the person may request a
33.17 refund of any remaining employee deductions. The refund shall be in an amount equal
33.18 to the accumulated employee deductions plus six percent interest compounded annually
33.19 less the sum of the disability benefits paid to the member.
33.20 Sec. 26. [353.335] DISABILITANT EARNINGS REPORTS.
33.21 Disability benefit recipients must report all earnings from reemployment and from
33.22 income from workers' compensation to the association annually by May 15 in a format
33.23 prescribed by the executive director. If the form is not submitted by May 15, benefits will
33.24 be suspended effective June 1. Upon receipt of the form, if the disability benefit recipient
33.25 is deemed to be eligible for continued payment, benefits will be reinstated retroactive
33.26 to June 1.
33.27 Sec. 27. Minnesota Statutes 2004, section 353.34, subdivision 1, is amended to read:
33.28 Subdivision 1. Refund or deferred annuity. (a) A former member is entitled
33.29 to a refund of accumulated employee deductions under subdivision 2, or to a deferred
33.30 annuity under subdivision 3. Application for a refund may not be made prior to the date
33.31 of termination of public service or the termination of membership, whichever is sooner.
33.32 Except as specified in paragraph (b), a refund must be paid within 120 days following
33.33 receipt of the application unless the applicant has again become a public employee
33.34 required to be covered by the association.
34.1 (b) If an individual was granted an authorized temporary placed on layoff under
34.2 subdivision 12 or 12c, a refund is not payable before termination of membership service
34.3 under section 353.01, subdivision 11b, clause (3) 11a.
34.4 (c) An individual who terminates public service covered by the Public Employees
34.5 Retirement Association general plan, the Public Employees Retirement Association police
34.6 and fire plan, or the public employees local government corrections service retirement
34.7 plan, and who is employed by a different employer and becomes an active member
34.8 covered by one of the other two plans, may receive a refund of employee contributions
34.9 plus six percent interest compounded annually from the plan in which the member
34.10 terminated service.
34.11 Sec. 28. Minnesota Statutes 2004, section 353.656, subdivision 4, is amended to read:
34.12 Subd. 4. Limitation on disability benefit payments. (a) No member is entitled to
34.13 receive a disability benefit payment when there remains to the member's credit unused
34.14 annual leave or sick leave or under any other circumstances when, during the period of
34.15 disability, there has been no impairment of the person's salary as a police officer or, a
34.16 firefighter, or a paramedic as defined in section 353.64, subdivision 10, whichever applies.
34.17 (b) If a disabled member resumes a gainful occupation with earnings less than,
34.18 that when added to the normal disability benefit, and workers' compensation benefit
34.19 if applicable, exceed the disabilitant reemployment earnings limit, the amount of the
34.20 disability benefit must be reduced as provided in this paragraph. The disabilitant
34.21 reemployment earnings limit is the greater of:
34.22 (1) the salary earned at the date of disability; or
34.23 (2) 125 percent of the base salary currently paid by the employing governmental
34.24 subdivision for similar positions.
34.25 The disability benefit must be reduced by one dollar for each three dollars by which
34.26 the total amount of the current disability benefit, any workers' compensation benefits if
34.27 applicable, and actual earnings exceed the greater disabilitant reemployment earnings
34.28 limit. In no event may the disability benefit as adjusted under this subdivision exceed
34.29 the disability benefit originally allowed.
34.30 Sec. 29. Minnesota Statutes 2004, section 353D.01, subdivision 2, is amended to read:
34.31 Subd. 2. Eligibility. (a) Eligibility to participate in the defined contribution plan
34.32 is available to:
34.33 (1) elected local government officials of a governmental subdivision who elect to
34.34 participate in the plan under section 353D.02, subdivision 1, and who, for the elected
34.35 service rendered to a governmental subdivision, are not members of the Public Employees
34.36 Retirement Association within the meaning of section 353.01, subdivision 7;
35.1 (2) physicians who, if they did not elect to participate in the plan under section
35.2 353D.02, subdivision 2, would meet the definition of member under section 353.01,
35.3 subdivision 7;
35.4 (3) basic and advanced life support emergency medical service personnel employed
35.5 by or providing services for any public ambulance service or privately operated ambulance
35.6 service that receives an operating subsidy from a governmental entity that elects to
35.7 participate under section 353D.02, subdivision 3;
35.8 (4) members of a municipal rescue squad associated with Litchfield in Meeker
35.9 County, or of a county rescue squad associated with Kandiyohi County, if an independent
35.10 nonprofit rescue squad corporation, incorporated under chapter 317A, performing
35.11 emergency management services, and if not affiliated with a fire department or ambulance
35.12 service and if its members are not eligible for membership in that fire department's or
35.13 ambulance service's relief association or comparable pension plan; and
35.14 (5) employees of the Port Authority of the city of St. Paul who elect to participate in
35.15 the plan under section 353D.02, subdivision 5, and who are not members of the Public
35.16 Employees Retirement Association under section 353.01, subdivision 7.
35.17 (b) For purposes of this chapter, an elected local government official includes
35.18 a person appointed to fill a vacancy in an elective office. Service as an elected local
35.19 government official only includes service for the governmental subdivision for which the
35.20 official was elected by the public-at-large. Service as an elected local government official
35.21 ceases and eligibility to participate terminates when the person ceases to be an elected
35.22 official. An elected local government official does not include an elected county sheriff.
35.23 (c) Individuals otherwise eligible to participate in the plan under this subdivision
35.24 who are currently covered by a public or private pension plan because of their employment
35.25 or provision of services are not eligible to participate in the public employees defined
35.26 contribution plan.
35.27 (d) A former participant is a person who has terminated eligible employment or
35.28 service and has not withdrawn the value of the person's individual account.
35.29 Sec. 30. Minnesota Statutes 2004, section 353D.02, subdivision 3, is amended to read:
35.30 Subd. 3. Eligible ambulance service personnel. Each public ambulance service
35.31 or privately operated ambulance service with eligible personnel that receives an operating
35.32 subsidy from a governmental entity may elect to participate in the plan. If a service elects
35.33 to participate, its eligible personnel may elect to participate or to decline to participate. An
35.34 individual's election must be made within 30 days of the service's election to participate
35.35 or 30 days of the date on which the individual was employed by the service or began to
36.1 provide service for it, whichever date is later. An election by a service or an individual is
36.2 revocable.
36.3 Sec. 31. Minnesota Statutes 2004, section 353E.02, subdivision 3, is amended to read:
36.4 Subd. 3. County correctional institution. A county correctional institution is:
36.5 (1) a jail administered by a county;
36.6 (2) a correctional facility administered by a county; or
36.7 (3) a regional correctional facility administered by or on behalf of multiple counties;
36.8 or
36.9 (4) a juvenile correctional facility administered by a county or on behalf of multiple
36.10 counties.
36.11 Sec. 32. Minnesota Statutes 2004, section 354.45, subdivision 1a, is amended to read:
36.12 Subd. 1a. Bounce-back annuity. (a) If a former member or disabilitant selects a
36.13 joint and survivor annuity option under subdivision 1 after June 30, 1989, the former
36.14 member or disabilitant must receive a normal single life annuity if the designated optional
36.15 annuity beneficiary dies before the former member or disabilitant. Under this option, no
36.16 reduction may be made in the person's annuity to provide for restoration of the normal
36.17 single life annuity in the event of the death of the designated optional annuity beneficiary.
36.18 (b) A former member or disabilitant who selected an optional joint and survivor
36.19 annuity before July 1, 1989, but did not choose an option that provides that the normal
36.20 single life annuity is payable to the former member or the disabilitant if the designated
36.21 optional annuity beneficiary dies first, is eligible for restoration of the normal single life
36.22 annuity if the designated optional annuity beneficiary dies first, without further actuarial
36.23 reduction of the person's annuity. A former member or disabilitant who selected an
36.24 optional joint and survivor annuity, but whose designated optional annuity beneficiary died
36.25 before July 1, 1989, shall receive a normal single life annuity after that date, but shall not
36.26 receive retroactive payments for periods before that dateThe annuity adjustment specified
36.27 in paragraph (a) also applies to joint and survivor annuity options under subdivision
36.28 1 elected prior to July 1, 1989. The annuity adjustment under this paragraph occurs on
36.29 July 1, 1989, or on the first day of the first month following the death of the designated
36.30 optional annuity beneficiary, whichever is later. This paragraph should not be interpreted
36.31 as authorizing retroactive payments.
36.32 (c) The restoration of the normal single life annuity under this subdivision will take
36.33 effect on the first of the month following the date of death of the designated optional
36.34 annuity beneficiary or on the first of the month following one year before the date on
36.35 which a certified copy of the death record of the designated optional annuity beneficiary is
36.36 received in the office of the Teachers Retirement Association, whichever date is later.
37.1 Sec. 33. Minnesota Statutes 2004, section 354A.32, subdivision 1a, is amended to read:
37.2 Subd. 1a. Bounce-back annuity. (a) If a former coordinated member or disabilitant
37.3 has selected a joint and survivor annuity option under subdivision 1 after June 30,
37.4 1989, the former member or disabilitant must receive a normal single life annuity if the
37.5 designated optional annuity beneficiary dies before the former member or disabilitant.
37.6 Under this option, no reduction may be made in the person's annuity to provide for
37.7 restoration of the normal single life annuity in the event of the death of the designated
37.8 optional annuity beneficiary.
37.9 (b) A former coordinated member or disabilitant who selected an optional joint
37.10 and survivor annuity before July 1, 1989, but did not choose an option that provides
37.11 that the normal single life annuity is payable to the former member or the disabilitant if
37.12 the designated optional annuity beneficiary dies first, is eligible for restoration of the
37.13 normal single life annuity if the designated optional annuity beneficiary dies first, without
37.14 further actuarial reduction of the person's annuity. A former member or disabilitant who
37.15 selected an optional joint and survivor annuity, but whose designated optional annuity
37.16 beneficiary died before July 1, 1989, shall receive a normal single life annuity after that
37.17 date, but shall not receive retroactive payments for periods before that dateThe annuity
37.18 adjustment specified in paragraph (a) also applies to joint and survivor annuity options
37.19 under subdivision 3 elected prior to July 1, 1989. The annuity adjustment under this
37.20 paragraph occurs on July 1, 1989, or on the first day of the first month following the death
37.21 of the designated optional annuity beneficiary, whichever is later. This paragraph should
37.22 not be interpreted as authorizing retroactive payments.
37.23 (c) A former coordinated member or disabilitant who took a further actuarial
37.24 reduction to elect an optional joint and survivor annuity that provides that the normal
37.25 annuity is payable to the former member or disabilitant if the designated optional