LCPR07-042 Summary

TO:	Members of the Legislative Commission on Pensions and Retirement
FROM:	Lawrence A. Martin, Executive Director
RE:	Initial Compilation of the 2007 Omnibus Retirement Legislation Delete-Everything Amendment (LCPR07-042)
DATE:	April 16, 2007

Introduction

The attached document, LCPR07-042, contains the proposed retirement legislation, recommended by the Legislative Commission on Pensions and Retirement at the March 28, 2007, Commission meeting.

Source Legislation for the 2007 Omnibus Retirement Bill

The following bills were recommended by the Legislative Commission on Pensions and Retirement on March 28, 2007, for inclusion in the 2007 Omnibus Retirement bill:

H.F. 31 (Mullery); S.F. 31 (Metzen): Conform to federal tax rules for public safety pensions; authorize pension funds to withhold and pay insurance premiums.
H.F. 876 (Swails); S.F. 2016 (Saltzman): PERA-General; Service credit purchase, St. Paul Department of Public Works employee.
H.F. 1010 (Hilstrom); S.F. 1042 (Neuville): State Patrol; Coverage for Gang and Drug Oversight Council coordinator.
H.F. 1329 (Thissen); S.F. 929 (Betzold): PERA-P&F; Reemployed annuitant exemption for former Midwest Pathology, Inc., employees hired as field investigators by Anoka County.
H.F. 1667 (Shimanski); S.F. 1299 (Dille): PERA; Hutchinson Area Health Care privatization; clarify effective date.
H.F. 1779 (Sailer); S.F. 1626 (Skoe): MSRS/PERA; Annuity back payments, combined service annuity annuitant.
H.F. 1783 (Faust); S.F. 948 (Lourey): TRA; Purchase of salary credit for reduced salary year after a sabbatical leave.
H.F. 1878 (Welti); S.F. 1853/1854 (Senjem): PERA; Service credit purchase for community education employment.
H.F. 2078 (Murphy, M.); S.F. 1457 (Frederickson): MSRS-General: Coverage for Middle Management Association employees
H.F. 2098 (Morrow); S.F. 1773 (Sheran): PERA; Lakeview Nursing Home in Gaylord privatization.
H.F. 2130 (Peterson, A.); S.F. 1779 (Kubly): PERA; Late disability benefit application; former Benson school district employee.
H.F. xxxx; S.F. 1762 (Betzold): Legislators plan; Partial benefit option to alternative payees under marriage dissolution.
Betzold Amendment MS/HRD: Legislators plan; Death while eligible optional annuity election for former legislator who died March 5, 2007.

General Summary of LCPR07-042

Article 1: Various Retirement Law Changes. Permits survivors of former legislators who die before age 55 to elect optional annuity form when the former legislator would have reached age 55, including the surviving spouse of a former legislator who died March 5, 2007. Permits the early division with ex-spouse of a Legislators Retirement Plan retirement allowance. Includes in the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General) employees of the Middle Management association who are not on-leave state employees. Includes in the State Patrol Retirement Plan the Gang and Drug Oversight Council Coordinator. Permits annuity withholding for health, accident, and long-term care insurance premiums for retired public safety employees.

Article 2: Health Care Facility Privatizations. Includes employees of the Lakeview Nursing Home in Gaylord, Minnesota, in the special privatization provisions of the Public Employees Retirement Association (PERA). Extends to January 2008 the time deadline for the Hutchinson Area Health Care to privatize and avail itself of the enhanced deferred annuity augmentation rate.

Article 3: Small Group/Single Person Provisions. Authorizes various individuals to purchase prior service credit or prior salary credit, file a delayed disability benefit application, or receive back annuity payments where a Combined Service Annuity was delayed by pension plan error. Exempts certain Anoka County medical examiner employees acquired from a former private sector contractor to be exempt from reemployed annuitant earnings limitations.

Section-by-Section Summary of LCPR07-042

Sec.	Pg.Ln – Pg.Ln	Source Bill(s)	Retirement Plan	Stat. Provision	Summary
Article 1: Various Retirement Law Changes
1	1.5 – 1.26	Betzold Amendment	Legislators Plan	3A.02, Subd. 5	Allows surviving spouse of a former legislator who dies before age 55 to elect optional annuity form when former legislator would have reached age 55, effective to include former legislator who died on March 5, 2007 .
2	2.1 – 2.26	HF xxxx; SF 1762 (Betzold)	Legislators Plan	New Section 3A.021	Permits early optional division of retirement allowance to former spouse of a former legislator under a marriage dissolution property settlement.
3	2.27 – 4.7	HF 2078 (Murphy, M.); SF 1457 (Frederickson)	MSRS-General	352.01, Subd. 2a	Permits Middle Management Association employees who are employed after July 1, 2007 , and are not former state employees to be plan members.
4	4.8 – 5.7	HF 1010 (Hilstrom); SF 1042 (Neuville)	State Patrol Plan	352B.01, Subd. 2	Includes the statewide coordinator of the Gang and Drug Oversight Council in plan coverage if the person is a licensed peace officer.
5	5.8 – 6.17	HF 31 (Mullery); SF 31 (Metzen)	Public Safety Plans	356.87	Permits public safety employee plans to withhold health, accident, and long-term care insurance premiums from public safety employee annuities.
6	6.18 – 7.24	HF 1010 (Hilstrom); SF 1042 (Neuville)	Peace officer definition	626.84, Subd. 1	Adds statewide coordinator of the Gang and Drug Oversight Council to definition of “peace officer.”
Article 2: Health Care Facility Privatizations
1	7.27 – 8.21	HF 2098 (Morrow); SF 1773 (Sheran)	PERA Privatization	353F.02, Subd. 4	Adds Lakeview Nursing Home in Gaylord , Minnesota , to definition of “medical facility” covered by special benefit provisions.
2	8.22 – 9.5	HF 1667 (Shimanski); SF 1299 (Dille)	PERA Privatization	353F.04, Subd. 1	Extends Hutchinson Area Health Care higher enhanced deferred annuity augmentation rate privatization effective date from January 2007 to January 2008.
Article 3: Small Group/Single Person Provisions
1	9.9 – 10.22	HF 876 (Swails); SF 2016 (Saltzman)	PERA-General	Uncoded	Permits St. Paul Public Works Department employee to purchase service credit.
2	10.23 – 10.34	HF 1329 (Thissen); SF 929 (Betzold)	PERA-P&F	Uncoded	Exempts pre-2007 employees of the former Midwest Pathology, Inc., employees from reemployed annuitant earnings limitations.
3	11.1 – 11.26	HF 1779 (Sailer); SF 1626 (Skoe)	MSRS-General	Uncoded	Permits back annuity payments for delayed Combined Service Annuity annuitant.
4	11.27 – 12.27	HF 1783 (Faust); SF 948 (Lourey)	TRA	Uncoded	Permits sabbatical leave service credit purchase for Minneapolis teacher.
5	12.28 – 13.27	HF 1878 (Welti); SF 1853 (Senjem)	PERA-General	Uncoded	Permits Rochester School District Community Education Program teacher to purchase service credit.
6	13.28 – 14.30	HF 2130 (Peterson, A.); SF 1779 (Kubly)	PERA-General	Uncoded	Permits former Benson School District employee to file late disability benefit application.