LCPR05-231
1.1 M ............... moves to amend S.F. No. 427; H.F. No.
1.2 2092, as follows:
1.3 Delete everything after the enacting clause and insert:
1.4 "2005 OMNIBUS RETIREMENT BILL
1.5 ARTICLE 1
1.6 CLARIFICATION/RECODIFICATION OF
1.7 STATEWIDE SPECIALTY RETIREMENT PLANS
1.8 Section 1. Minnesota Statutes 2004, section 3A.01,
1.9 subdivision 1, is amended to read:
1.10 Subdivision 1. PURPOSES. Each of the terms defined in
1.11 this section, for the purposes of this chapter shall be
1.12 given has the meanings meaning ascribed to them.
1.13 Sec. 2. Minnesota Statutes 2004, section 3A.01, is amended
1.14 by adding a subdivision to read:
1.15 Subd. 1a. ACTUARIAL EQUIVALENT. "Actuarial equivalent"
1.16 means the condition of one allowance or benefit having an equal
1.17 actuarial present value to another allowance or benefit,
1.18 determined by the actuary retained under section 356.214 as of a
1.19 given date at a specified age with each actuarial present value
1.20 based on the mortality table applicable for the plan and
1.21 approved under section 356.215, subdivision 18, and using the
1.22 applicable preretirement or postretirement interest rate
1.23 assumption specified in section 356.215, subdivision 8.
1.24 Sec. 3. Minnesota Statutes 2004, section 3A.01, is amended
1.25 by adding a subdivision to read:
1.26 Subd. 1b. AVERAGE MONTHLY SALARY. "Average monthly
1.27 salary" means the average of the member's highest five
1.28 successive years of salary that was received as a member of the
1.29 legislature and upon which the member has made contributions
1.30 under section 3A.03, subdivision 1, or for which the member of
1.31 the legislature has made payments for past service under section
1.32 3A.02, subdivision 2, or has made, before July 1, 1994, payments
1.33 in lieu of contributions under Minnesota Statutes 1992, section
1.34 3A.031.
1.35 Sec. 4. Minnesota Statutes 2004, section 3A.01, is amended
1.36 by adding a subdivision to read:
2.1 Subd. 1c. CONSTITUTIONAL OFFICER. "Constitutional
2.2 officer" means a person who was duly elected, qualifies for, and
2.3 serves as the governor, the lieutenant governor, the attorney
2.4 general, the secretary of state, or the state auditor of the
2.5 state of Minnesota.
2.6 Sec. 5. Minnesota Statutes 2004, section 3A.01,
2.7 subdivision 2, is amended to read:
2.8 Subd. 2. DEPENDENT CHILD. (a) "Dependent child" means
2.9 any natural or adopted child of a deceased member of the
2.10 legislature or a former legislator who is under the age of 18,
2.11 or who is under the age of 22 and is a full‑time student, and
2.12 who, in either case, is unmarried and was actually dependent for
2.13 more than one‑half of support upon such the legislator for a
2.14 period of at least 90 days immediately prior to before the
2.15 legislator's death. It
2.16 (b) The term also includes any child of the member of the
2.17 legislature or former legislator who was conceived during the
2.18 lifetime of, and who was born after the death of, the member or
2.19 former legislator. This subdivision shall be retroactive as to
2.20 any dependent child under the age of 22 years as of April 1,
2.21 1975.
2.22 Sec. 6. Minnesota Statutes 2004, section 3A.01,
2.23 subdivision 6, is amended to read:
2.24 Subd. 6. DIRECTOR. "Director" means the executive
2.25 director of the Minnesota State Retirement System who was
2.26 appointed under section 352.03, subdivision 5.
2.27 Sec. 7. Minnesota Statutes 2004, section 3A.01, is amended
2.28 by adding a subdivision to read:
2.29 Subd. 6b. FORMER LEGISLATOR. "Former legislator" means a
2.30 legislator who has ceased to be a member of the legislature for
2.31 any reason, including, but not limited to, the expiration of the
2.32 term for which a member of the legislature was elected or the
2.33 death of the member.
2.34 Sec. 8. Minnesota Statutes 2004, section 3A.01, is amended
2.35 by adding a subdivision to read:
2.36 Subd. 6c. MEMBER OF THE LEGISLATURE. "Member of the
3.1 legislature" means a person who was a member of the House of
3.2 Representatives or of the Senate of the state of Minnesota who
3.3 has subscribed to the oath of office after July 1, 1965, and who
3.4 was first elected to a legislative office before July 1, 1997,
3.5 and retained coverage by the plan under Laws 1997, chapter 233,
3.6 article 2, section 15.
3.7 Sec. 9. Minnesota Statutes 2004, section 3A.01,
3.8 subdivision 8, is amended to read:
3.9 Subd. 8. NORMAL RETIREMENT AGE. "Normal retirement age"
3.10 means the age of 60 years with regard to any member of the
3.11 legislature whose service terminates prior to the beginning of
3.12 the 1981 legislative session, and the age of 62 years with
3.13 regard to any member of the legislature whose service terminates
3.14 after the beginning of the 1981 session.
3.15 Sec. 10. Minnesota Statutes 2004, section 3A.01, is
3.16 amended by adding a subdivision to read:
3.17 Subd. 9. RETIREMENT. "Retirement" means the period of
3.18 time after which a former legislator is entitled to a retirement
3.19 allowance.
3.20 Sec. 11. Minnesota Statutes 2004, section 3A.01, is
3.21 amended by adding a subdivision to read:
3.22 Subd. 10. SALARY. (a) "Salary" means the regular
3.23 compensation payable under law to a member of the legislature
3.24 and paid to the person for service as a legislator.
3.25 (b) The term includes the monthly compensation paid to the
3.26 member of the legislature and the per diem payments paid during
3.27 a regular or special session to the member of the legislature.
3.28 (c) The term does not include per diem payments paid to a
3.29 member of the legislature other than during the regular or
3.30 special session; additional compensation attributable to a
3.31 leadership position under section 3.099, subdivision 3; living
3.32 expense payments under section 3.101; and special session living
3.33 expense payments under section 3.103.
3.34 Sec. 12. Minnesota Statutes 2004, section 3A.011, is
3.35 amended to read:
3.36 3A.011 ADMINISTRATION OF PLAN.
4.1 The executive director and the board of directors of the
4.2 Minnesota State Retirement System shall administer the
4.3 legislators retirement plan in accordance with this chapter and
4.4 chapter 356A.
4.5 Sec. 13. Minnesota Statutes 2004, section 3A.02,
4.6 subdivision 1, is amended to read:
4.7 Subdivision 1. QUALIFICATIONS. (a) A former legislator
4.8 is entitled, upon written application to the director, to
4.9 receive a retirement allowance monthly, if the person:
4.10 (1) has either served at least six full years, without
4.11 regard to the application of section 3A.10, subdivision 2, or
4.12 has served during all or part of four regular sessions as a
4.13 member of the legislature, which service need not be continuous;
4.14 (2) has attained the normal retirement age;
4.15 (3) has retired as a member of the legislature; and
4.16 (4) has made all contributions provided for in section
4.17 3A.03, has made payments for past service under subdivision 2,
4.18 or has made payments in lieu of contributions under Minnesota
4.19 Statutes 1992, section 3A.031, prior to before July 1, 1994.
4.20 (b) This paragraph applies to members of the legislature
4.21 who terminate service as a legislator before July 1, 1997. For
4.22 service rendered before the beginning of the 1979 legislative
4.23 session, but not to exceed eight years of service, the
4.24 retirement allowance is an amount equal to five percent per year
4.25 of service of that member's average monthly salary. For service
4.26 in excess of eight years rendered before the beginning of the
4.27 1979 legislative session, and for service rendered after the
4.28 beginning of the 1979 legislative session, Unless the former
4.29 legislator has legislative service before January 1, 1979, the
4.30 retirement allowance is an amount equal to 2‑1/2 percent per
4.31 year of service of that member's average monthly salary.
4.32 (c) This paragraph applies to members of the legislature
4.33 who terminate service as a legislator after June 30, 1997. The
4.34 retirement allowance is an amount equal to the applicable rate
4.35 or rates under paragraph (b) per year of service of the member's
4.36 average monthly salary and adjusted for that person on an
5.1 actuarial equivalent basis to reflect the change in the
5.2 postretirement interest rate actuarial assumption under section
5.3 356.215, subdivision 8, from five percent to six percent. The
5.4 adjustment must be calculated by or, alternatively, the
5.5 adjustment procedure must be specified by, the actuary retained
5.6 by the Legislative Commission on Pensions and Retirement under
5.7 section 356.214. The purpose of this adjustment is to ensure
5.8 that the total amount of benefits that the actuary predicts an
5.9 individual member will receive over the member's lifetime under
5.10 this paragraph will be the same as the total amount of benefits
5.11 the actuary predicts the individual member would receive over
5.12 the member's lifetime under the law in effect before enactment
5.13 of this paragraph. If the former legislator has legislative
5.14 service before January 1, 1979, the person's benefit must
5.15 include the additional benefit amount in effect on January 1,
5.16 1979, and adjusted as otherwise provided in this paragraph.
5.17 (d) (c) The retirement allowance accrues beginning with the
5.18 first day of the month of receipt of the application, but not
5.19 before age 60, and for the remainder of the former legislator's
5.20 life, if the former legislator is not serving as a member of the
5.21 legislature or as a constitutional officer or commissioner as
5.22 defined in section 352C.021, subdivisions 2 and 3 subdivision 1b.
5.23 The annuity does not begin to accrue prior to before the
5.24 person's retirement as a legislator. No annuity payment may be
5.25 made retroactive for more than 180 days before the date that the
5.26 annuity application is filed with the director.
5.27 (e) (d) Any member who has served during all or part of
5.28 four regular sessions is considered to have served eight years
5.29 as a member of the legislature.
5.30 (f) (e) The retirement allowance ceases with the last
5.31 payment that accrued to the retired legislator during the
5.32 retired legislator's lifetime, except that the surviving spouse,
5.33 if any, is entitled to receive the retirement allowance of the
5.34 retired legislator for the calendar month in which the retired
5.35 legislator died.
5.36 Sec. 14. Minnesota Statutes 2004, section 3A.02,
6.1 subdivision 1b, is amended to read:
6.2 Subd. 1b. REDUCED RETIREMENT ALLOWANCE. (a) Upon
6.3 separation from service after the beginning of the 1981
6.4 legislative session, a former member of the legislature who has
6.5 attained the age set by the board of directors of the Minnesota
6.6 State Retirement System and who is otherwise qualified in
6.7 accordance with under subdivision 1 is entitled, upon making
6.8 written application on forms supplied a form prescribed by the
6.9 director, to a reduced retirement allowance in. The reduced
6.10 retirement allowance is an amount equal to the retirement
6.11 allowance specified in subdivision 1, paragraph (b), that is
6.12 reduced so that the reduced annuity allowance is the actuarial
6.13 equivalent of the annuity allowance that would be payable if the
6.14 former member of the legislature deferred receipt of the annuity
6.15 allowance and the annuity allowance amount were was augmented
6.16 at an annual rate of three percent compounded annually from the
6.17 date the annuity allowance begins to accrue until age 62.
6.18 (b) The age set by the board of directors under paragraph
6.19 (a) cannot be less an earlier age than the early retirement age
6.20 under section 352.116, subdivision 1a.
6.21 (c) If there is an actuarial cost to the plan of resetting
6.22 the early retirement age under paragraph (a), the retired
6.23 legislator is required to pay an additional amount to cover the
6.24 full actuarial value. The additional amount must be paid in a
6.25 lump sum within 30 days of the certification of the amount by
6.26 the executive director.
6.27 (d) The executive director of the Minnesota State
6.28 Retirement System shall report to the Legislative Commission on
6.29 Pensions and Retirement on the utilization of this
6.30 provision annually on or before September 1, 2000.
6.31 Sec. 15. Minnesota Statutes 2004, section 3A.02,
6.32 subdivision 3, is amended to read:
6.33 Subd. 3. APPROPRIATION. The amounts required for payment
6.34 of retirement allowances provided by this section are
6.35 appropriated annually to the director from the participation of
6.36 the legislators retirement plan in the Minnesota postretirement
7.1 investment fund and shall. The retirement allowance must be
7.2 paid monthly to the recipients entitled thereto to those
7.3 retirement allowances.
7.4 Sec. 16. Minnesota Statutes 2004, section 3A.02,
7.5 subdivision 4, is amended to read:
7.6 Subd. 4. DEFERRED ANNUITIES AUGMENTATION. (a) The
7.7 deferred annuity retirement allowance of any former legislator
7.8 must be augmented as provided herein.
7.9 (b) The required reserves applicable to the
7.10 deferred annuity retirement allowance, determined as of the date
7.11 the benefit begins to accrue using an appropriate mortality
7.12 table and an interest assumption of six percent, must be
7.13 augmented from the first of the month following the termination
7.14 of active service, or July 1, 1973, whichever is later, to the
7.15 first day of the month in which the annuity allowance begins to
7.16 accrue, at the following annually compounded rate of or rates:
7.17 five percent per annum compounded annually until January 1,
7.18 1981, and thereafter at the rate of three percent per annum
7.19 compounded annually until January 1 of the year in which the
7.20 former legislator attains age 55. From that date to the
7.21 effective date of retirement, the rate is five percent
7.22 compounded annually.
7.23 rate period
7.24 (1) five percent until January 1, 1981
7.25 (2) three percent from January 1, 1981, or from the
7.26 first day of the month following
7.27 the termination of active service,
7.28 whichever is later, until January 1
7.29 of the year in which the former
7.30 legislator attains age 55
7.32 (3) five percent from the period end date under
7.33 clause (2) to the effective date
7.34 of retirement.
7.35 (b) The retirement allowance of, or the survivor benefit
7.36 payable on behalf of, a former member of the legislature who
8.1 terminated service before July 1, 1997, which is not first
8.2 payable until after June 30, 1997, must be increased on an
8.3 actuarial equivalent basis to reflect the change in the
8.4 postretirement interest rate actuarial assumption under section
8.5 356.215, subdivision 8, from five percent to six percent under a
8.6 calculation procedure and tables adopted by the board of
8.7 directors of the Minnesota State Retirement System and approved
8.8 by the actuary retained by the Legislative Commission on
8.9 Pensions and Retirement.
8.10 Sec. 17. Minnesota Statutes 2004, section 3A.02,
8.11 subdivision 5, is amended to read:
8.12 Subd. 5. OPTIONAL ANNUITIES. (a) The board of directors
8.13 shall establish an optional retirement annuity in the form of a
8.14 joint and survivor annuity and an optional retirement annuity in
8.15 the form of a period certain and life thereafter. Except as
8.16 provided in paragraph (b), these optional annuity forms must be
8.17 actuarially equivalent to the normal annuity allowance computed
8.18 under this section, plus the actuarial value of any surviving
8.19 spouse benefit otherwise potentially payable at the time of
8.20 retirement under section 3A.04, subdivision 1. An individual
8.21 selecting an optional annuity under this subdivision waives and
8.22 the person's spouse waive any rights to surviving spouse
8.23 benefits under section 3A.04, subdivision 1.
8.24 (b) If a retired legislator selects the joint and survivor
8.25 annuity option, the retired legislator must receive a normal
8.26 single‑life annuity allowance if the designated optional annuity
8.27 beneficiary dies before the retired legislator and no reduction
8.28 may be made in the annuity to provide for restoration of the
8.29 normal single‑life annuity allowance in the event of the death
8.30 of the designated optional annuity beneficiary.
8.31 (c) The surviving spouse of a legislator who has attained
8.32 at least age 60 and who dies while a member of the legislature
8.33 may elect an optional joint and survivor annuity under paragraph
8.34 (a), in lieu of surviving spouse benefits under section 3A.04,
8.35 subdivision 1.
8.36 Sec. 18. Minnesota Statutes 2004, section 3A.03,
9.1 subdivision 1, is amended to read:
9.2 Subdivision 1. PERCENTAGE. (a) Every member of the
9.3 legislature shall contribute nine percent of total salary,.
9.4 (b) The contribution must be made by payroll deduction,
9.5 to and must be paid into the state treasury and deposited in the
9.6 general fund. It shall be the duty of
9.7 (c) The director to must record the periodic contributions
9.8 of each member of the legislature and must credit such each
9.9 contribution to the member's account.
9.10 Sec. 19. Minnesota Statutes 2004, section 3A.03,
9.11 subdivision 2, is amended to read:
9.12 Subd. 2. REFUND. (a) A former member who has made
9.13 contributions under subdivision 1 and who is no longer a member
9.14 of the legislature is entitled to receive, upon written
9.15 application to the executive director on a form prescribed by
9.16 the executive director, a refund from the general fund of all
9.17 contributions credited to the member's account with interest
9.18 computed as provided in section 352.22, subdivision 2.
9.19 (b) The refund of contributions as provided in paragraph (a)
9.20 terminates all rights of a former member of the legislature and
9.21 the survivors of the former member under this chapter.
9.22 (c) If the former member of the legislature again becomes a
9.23 member of the legislature after having taken a refund as
9.24 provided in paragraph (a), the member must be considered is a
9.25 new member of this plan the unclassified employees retirement
9.26 program of the Minnesota State Retirement System.
9.27 (d) However, the member may reinstate the rights and credit
9.28 for service previously forfeited under this chapter if the
9.29 member repays all refunds taken, plus interest at an annual rate
9.30 of 8.5 percent compounded annually from the date on which the
9.31 refund was taken to the date on which the refund is repaid.
9.32 (d) (e) No person may be required to apply for or to accept
9.33 a refund.
9.34 Sec. 20. Minnesota Statutes 2004, section 3A.04,
9.35 subdivision 1, is amended to read:
9.36 Subdivision 1. SURVIVING SPOUSE. (a) Upon the death of a
10.1 member of the legislature while serving as such a member after
10.2 June 30, 1973, or upon the death of a former member of the
10.3 legislature with at least the number of six full years of
10.4 service as required by section 3A.02, subdivision 1, clause
10.5 (1) or service in all or part of four regular legislative
10.6 sessions, the surviving spouse shall be paid is entitled to a
10.7 survivor benefit in the amount of.
10.8 (b) The surviving spouse benefit is one‑half of the
10.9 retirement allowance of the member of the legislature computed
10.10 as though the member were at least normal retirement age on the
10.11 date of death and based upon the member's allowable service
10.12 or upon eight years, whichever is greater. The augmentation
10.13 provided in section 3A.02, subdivision 4, if applicable, shall
10.14 must be applied for the period up to, and including, the month
10.15 of death.
10.16 (c) Upon the death of a former legislator receiving a
10.17 retirement allowance, the surviving spouse shall be is entitled
10.18 to one‑half of the amount of the retirement allowance being paid
10.19 to the legislator. Such
10.20 (d) The surviving spouse benefit shall be paid during is
10.21 payable for the lifetime of the surviving spouse.
10.22 Sec. 21. Minnesota Statutes 2004, section 3A.04,
10.23 subdivision 2, is amended to read:
10.24 Subd. 2. DEPENDENT CHILDREN. (a) Upon the death of a
10.25 member of the legislature while serving as a member, or upon the
10.26 death of a former member of the legislature who has rendered at
10.27 least the number of six full years of service as required by
10.28 section 3A.02, subdivision 1, clause (1) or service in all or
10.29 part of four regular legislative sessions and who was not
10.30 receiving a retirement allowance, each dependent child of the
10.31 member or former legislator shall be is entitled to receive a
10.32 survivor benefit in the following amount:
10.33 (1) for the first dependent child, a monthly allowance
10.34 which equals benefit equal to 25 percent of the monthly
10.35 retirement allowance of the member of the legislature or the
10.36 former legislator computed as though the member or the former
11.1 legislator had attained at least the normal retirement age on
11.2 the date of death and based upon the average monthly salary as
11.3 of the date of death or as of the date of termination, whichever
11.4 is applicable applies, and the member's allowable service or
11.5 eight years, whichever is greater;
11.6 (2) for each additional dependent child, a monthly
11.7 allowance which equals benefit equal to 12‑1/2 percent of the
11.8 monthly retirement allowance of the member or the former
11.9 legislator computed as provided in the case of the first child
11.10 clause (1); but and
11.11 (3) the total amount paid to the surviving spouse and to
11.12 the dependent child or children shall may not exceed, in any
11.13 one month, 100 percent of the monthly retirement allowance of
11.14 the member or of the former legislator computed as provided in
11.15 the case of the first child clause (1).
11.16 (b) The augmentation provided in section 3A.02, subdivision
11.17 4, if applicable, shall be applied applies from the first day of
11.18 the month next following the date of the termination of the
11.19 person from service as a member of the legislature to the month
11.20 of the death of the person.
11.21 (c) Upon the death of a former legislator who was receiving
11.22 a retirement allowance, the a surviving dependent child shall be
11.23 is entitled to the applicable percentage specified above in
11.24 paragraph (a), clause (1) or (2), whichever applies, of the
11.25 amount of the allowance which was paid to the former legislator
11.26 for the month immediately prior to before the date of death of
11.27 the former legislator.
11.28 (d) The payments for dependent children shall must be made
11.29 to the surviving spouse or to the guardian of the estate of the
11.30 dependent children, if there is one.
11.31 Sec. 22. Minnesota Statutes 2004, section 3A.04,
11.32 subdivision 3, is amended to read:
11.33 Subd. 3. PAYMENT. The surviving spouse's spouse and
11.34 dependent children's child or children survivor benefits payable
11.35 under this section shall be paid are payable by the director
11.36 monthly in the same manner as retirement allowances are
12.1 authorized to be paid by this chapter.
12.2 Sec. 23. Minnesota Statutes 2004, section 3A.04,
12.3 subdivision 4, is amended to read:
12.4 Subd. 4. DEATH REFUNDS. (a) Upon the death of a member
12.5 of the legislature or of a former legislator who was not
12.6 receiving a retirement allowance, without leaving either a
12.7 surviving spouse or a dependent child or dependent children, the
12.8 last designated beneficiary named on a form that was filed with
12.9 the director before the death of the legislator, or if no
12.10 designation is filed, the estate of the member or the former
12.11 legislator, upon application, shall be is entitled to a refund.
12.12 (b) The refund is the amount of contributions credited to
12.13 the person's account plus interest as provided in section 3A.03,
12.14 subdivision 2, clause (2) paragraph (a).
12.15 Sec. 24. Minnesota Statutes 2004, section 3A.04, is
12.16 amended by adding a subdivision to read:
12.17 Subd. 5. APPROPRIATION. The survivor benefits and the
12.18 death refunds authorized by this section are appropriated to the
12.19 director from the general fund when they are due and payable.
12.20 Sec. 25. Minnesota Statutes 2004, section 3A.05, is
12.21 amended to read:
12.22 3A.05 APPLICATION FOR SURVIVOR BENEFIT.
12.23 (a) Applications for survivor benefits pursuant to under
12.24 section 3A.04 shall must be filed with the director by the
12.25 surviving spouse and dependent child or children entitled to
12.26 benefits pursuant to under section 3A.04, or by the guardian of
12.27 the estate, if there is one, of the dependent child or children.
12.28 (b) Survivor benefits shall accrue as of the first day of
12.29 the month following the death of the member of the legislature
12.30 or former legislator and payments shall commence as of the first
12.31 of the month next following the filing of the application,
12.32 and shall be are retroactive to the date the benefit accrues;
12.33 provided, however, that no payment shall be retroactive for more
12.34 than or the first of the month occurring 12 months prior
12.35 to before the month in which the application is filed with the
12.36 director, whichever is earlier.
13.1 Sec. 26. Minnesota Statutes 2004, section 3A.07, is
13.2 amended to read:
13.3 3A.07 APPLICATION.
13.4 (a) Except as provided in paragraph (b), this chapter
13.5 applies to members of the legislature in service after July 1,
13.6 1965, who otherwise meet the requirements of this chapter.
13.7 (b) Members of the legislature who were elected for the
13.8 first time after June 30, 1997, or members of the legislature
13.9 who were elected before July 1, 1997, and who, after July 1,
13.10 1998, elect not to be members of the plan established by this
13.11 chapter are covered by the unclassified employees retirement
13.12 program governed by chapter 352D.
13.13 (c) The post‑July 1, 1998, coverage election under
13.14 paragraph (b) is irrevocable and must be made on a form
13.15 prescribed by the director. The second chance referendum
13.16 election under Laws 2002, chapter 392, article 15, also is
13.17 irrevocable.
13.18 Sec. 27. Minnesota Statutes 2004, section 3A.10,
13.19 subdivision 1, is amended to read:
13.20 Subdivision 1. SERVICE CREDIT FOR LEGISLATIVE TERM. (a)
13.21 In the case of a member of the house of representatives, one
13.22 full term of office shall must be considered two full years of
13.23 service, notwithstanding the fact that the oath of office may be
13.24 was taken on different days each biennium.
13.25 (b) In the case of a member of the senate, one full term of
13.26 office shall must be considered four full years of service,
13.27 notwithstanding the fact that the oath of office may be was
13.28 taken on different days at the start of each term.
13.29 (c) For purposes of this chapter, a legislative term shall
13.30 must be deemed to commence on January 1st 1 and to end on
13.31 December 31st 31.
13.32 Sec. 28. Minnesota Statutes 2004, section 3A.12, is
13.33 amended to read:
13.34 3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR
13.35 ASSOCIATION.
13.36 Subdivision 1. ENTITLEMENT TO ANNUITY. (a) Any
14.1 legislator who has been an employee covered by a member of a
14.2 retirement plan listed in paragraph (b) is entitled, when
14.3 otherwise qualified, to a retirement allowance or annuity from
14.4 each plan if the total allowable service in all plans or in any
14.5 two of these plans totals ten or more years.
14.6 (b) This section applies to any retirement plan or program
14.7 administered by the Minnesota State Retirement System, or a
14.8 member of any retirement plan administered by the Public
14.9 Employees Retirement Association, including the Public Employees
14.10 Retirement Association police and fire fund, or the Teachers
14.11 Retirement Association, or the Minneapolis employees
14.12 retirement Fund plan, or the State Patrol retirement fund plan,
14.13 or any other public employee retirement system in the state of
14.14 Minnesota having a like provision but excluding all.
14.15 (c) This section does not apply to other funds retirement
14.16 plans providing benefits for police or firefighters, shall be
14.17 entitled when qualified to an annuity from each fund if the
14.18 total allowable service for which the legislator has credit in
14.19 all funds or in any two of these funds totals ten or more years,
14.20 provided.
14.21 (d) No portion of the allowable service upon which the
14.22 retirement annuity from one fund plan is based is again used in
14.23 the computation for benefits from another fund plan. The
14.24 annuity from each fund shall plan must be determined by the
14.25 appropriate provisions of the law, except that the requirement
14.26 that a person must have at least ten a minimum number of years
14.27 of allowable service in the respective system or
14.28 association shall does not apply for the purposes of this
14.29 section provided if the combined service in two or more of these
14.30 funds plans equals ten or more years. The augmentation of
14.31 deferred annuities provided in section 3A.02, subdivision
14.32 4, shall apply applies to the annuities accruing hereunder under
14.33 this section.
14.34 Subd. 2. REFUND REPAYMENT. Any A former legislator who
14.35 has received a refund as provided in section 3A.03, subdivision
14.36 2, who is a currently contributing member of a retirement fund
15.1 plan specified in subdivision 1, paragraph (b), may repay the
15.2 refund as provided in section 3A.03, subdivision 2. Any A
15.3 member of the legislature who has received a refund from any of
15.4 the funds retirement plans specified in subdivision 1, may repay
15.5 the refund to the respective fund plan under such terms and
15.6 conditions consistent with the law governing such fund the
15.7 retirement plan if the law governing such fund the plan permits
15.8 the repayment of refunds. If the total amount to be repaid,
15.9 including principal and interest exceeds $2,000, repayment may
15.10 be made in three equal installments over a period of 18 months,
15.11 with the interest accrued during the period of the repayment
15.12 added to the final installment.
15.13 Sec. 29. Minnesota Statutes 2004, section 3A.13, is
15.14 amended to read:
15.15 3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
15.16 DEDUCTION.
15.17 (a) The provisions of section 352.15 shall apply to the
15.18 legislators retirement plan, chapter 3A.
15.19 (b) The executive director of the Minnesota State
15.20 Retirement System must, at the request of a retired legislator
15.21 who is enrolled in a health insurance plan covering state
15.22 employees, deduct the person's health insurance premiums from
15.23 the person's annuity and transfer the amount of the premium to a
15.24 health insurance carrier covering state employees.
15.25 Sec. 30. 352C.001 RETIREMENT PLAN; APPLICATION.
15.26 (a) The retirement plan applicable to a former
15.27 constitutional officer who was first elected to a constitutional
15.28 office after July 1, 1967, and before July 1, 1997, is the
15.29 applicable portions of this chapter and chapter 356 in effect on
15.30 the date on which the person terminated active service as a
15.31 constitutional officer.
15.32 (b) Nothing in this section or section 2 or 3 is intended
15.33 to reduce the benefits of former constitutional officers or to
15.34 adversely modify their eligibility for benefits in effect as of
15.35 the day before the effective date of this section.
15.36 Sec. 31. Minnesota Statutes 2004, section 352C.091,
16.1 subdivision 1, is amended to read:
16.2 Subdivision 1. ADMINISTRATIVE AGENCY AND STANDARDS. This
16.3 chapter (a) The elected officers retirement plan must be
16.4 administered by the board of directors and the executive
16.5 director of the Minnesota State Retirement System.
16.6 (b) The elected state officers retirement plan must be
16.7 administered consistent with this chapter the applicable
16.8 statutory provisions governing the plan and chapters 356 and
16.9 356A.
16.10 Sec. 32. Minnesota Statutes 2004, section 490.121,
16.11 subdivision 1, is amended to read:
16.12 Subdivision 1. SCOPE. For purposes of sections 490.121
16.13 to 490.132, unless the context clearly indicates otherwise, each
16.14 of the terms defined in this section have has the meanings
16.15 meaning given them unless the context clearly indicates
16.16 otherwise it.
16.17 Sec. 33. Minnesota Statutes 2004, section 490.121, is
16.18 amended by adding a subdivision to read:
16.19 Subd. 2a. ACTUARIAL EQUIVALENT. "Actuarial equivalent"
16.20 means the condition of one annuity or benefit having an equal
16.21 actuarial present value as another annuity or benefit,
16.22 determined as of a given date with each actuarial present value
16.23 based on the appropriate mortality table adopted by the board of
16.24 trustees based on the experience of the fund as recommended by
16.25 the actuary retained under section 356.214 and using the
16.26 applicable preretirement or postretirement interest rate
16.27 assumption specified in section 356.215, subdivision 8.
16.28 Sec. 34. Minnesota Statutes 2004, section 490.121,
16.29 subdivision 4, is amended to read:
16.30 Subd. 4. ALLOWABLE SERVICE. (a) "Allowable service"
16.31 means any calendar month, subject to the service credit limit in
16.32 subdivision 22, served as a judge at any time, or during which
16.33 the judge received compensation for that service from the state,
16.34 municipality, or county, whichever applies, and for which the
16.35 judge made any required member contribution. It also includes
16.36 any month served as a referee in probate for all referees in
17.1 probate who were in office prior to before January 1, 1974.
17.2 (b) "Allowable service" does not mean service as a retired
17.3 judge.
17.4 Sec. 35. Minnesota Statutes 2004, section 490.121,
17.5 subdivision 6, is amended to read:
17.6 Subd. 6. ANNUITY. "Annuity" means the payments that are
17.7 made each year to an annuitant from the judges' retirement fund,
17.8 pursuant to the provisions of under sections 490.121 to 490.132.
17.9 Sec. 36. Minnesota Statutes 2004, section 490.121,
17.10 subdivision 7, is amended to read:
17.11 Subd. 7. ANNUITANT. "Annuitant" means a former judge, a
17.12 surviving spouse, or a dependent child who is entitled to and is
17.13 receiving an annuity under the provisions of sections 490.121 to
17.14 490.132.
17.15 Sec. 37. Minnesota Statutes 2004, section 490.121, is
17.16 amended by adding a subdivision to read:
17.17 Subd. 7a. APPROVED ACTUARY. "Approved actuary" means an
17.18 actuary as defined in section 356.215, subdivision 1, paragraph
17.19 (c).
17.20 Sec. 38. Minnesota Statutes 2004, section 490.121, is
17.21 amended by adding a subdivision to read:
17.22 Subd. 7b. COURT. "Court" means any court of this state
17.23 that is established by the Minnesota Constitution.
17.24 Sec. 39. Minnesota Statutes 2004, section 490.121, is
17.25 amended by adding a subdivision to read:
17.26 Subd. 7c. DEPENDENT SURVIVING CHILD. "Dependent
17.27 surviving child" means any natural or adopted child of a
17.28 deceased judge who has not reached the age of 18 years, or
17.29 having reached the age of 18, is under age 22 and who is a
17.30 full‑time student throughout the normal school year, is
17.31 unmarried, and is actually dependent for more than one‑half of
17.32 the child's support upon the judge for a period of at least 90
17.33 days before the judge's death. It also includes any natural
17.34 child of the judge who was born after the death of the judge.
17.35 Sec. 40. Minnesota Statutes 2004, section 490.121,
17.36 subdivision 13, is amended to read:
18.1 Subd. 13. DISABILITY. "Disability" means the permanent
18.2 inability of a judge to continue to perform the functions of
18.3 judge by reason of a physical or mental impairment resulting
18.4 from a sickness or an injury.
18.5 Sec. 41. Minnesota Statutes 2004, section 490.121,
18.6 subdivision 14, is amended to read:
18.7 Subd. 14. DISABILITY RETIREMENT DATE. "Disability
18.8 retirement date" means the last day of the first month after the
18.9 date on which the governor determines, upon receipt of the
18.10 voluntary application by the judge or otherwise, that a judge
18.11 suffers from a disability.
18.12 Sec. 42. Minnesota Statutes 2004, section 490.121,
18.13 subdivision 15, is amended to read:
18.14 Subd. 15. DISABILITY RETIREMENT ANNUITY. "Disability
18.15 retirement annuity" means an annuity to which a judge is
18.16 entitled under section 490.124, subdivisions 1 and 4, after the
18.17 retirement for reason of the judge because of a disability.
18.18 Sec. 43. Minnesota Statutes 2004, section 490.121, is
18.19 amended by adding a subdivision to read:
18.20 Subd. 15a. EARLY RETIREMENT DATE. "Early retirement date"
18.21 means the last day of the month after a judge attains the age of
18.22 60 but before the judge reaches the normal retirement date.
18.23 Sec. 44. Minnesota Statutes 2004, section 490.121, is
18.24 amended by adding a subdivision to read:
18.25 Subd. 15b. EARLY RETIREMENT ANNUITY. "Early retirement
18.26 annuity" means an annuity to which a judge is entitled under
18.27 section 490.124, subdivisions 1 and 3, upon retirement by the
18.28 judge at an early retirement date.
18.29 Sec. 45. Minnesota Statutes 2004, section 490.121,
18.30 subdivision 21, is amended to read:
18.31 Subd. 21. FINAL AVERAGE COMPENSATION. "Final average
18.32 compensation" means the total amount of the salary payable to a
18.33 judge in the highest five years out of the last ten years prior
18.34 to before the event of maturity of benefits termination of
18.35 judicial service, divided by five; provided, however, that if
18.36 the number of years of service by the judge equals or exceeds
19.1 ten. If the number of years of service by the judge is less
19.2 than ten, but more than five, the highest five shall years of
19.3 salary must be counted , and. If the number of years of service
19.4 by the judge is less than five, the aggregate salary in such for
19.5 the period shall of service must be divided by the number of
19.6 months in such the period and multiplied by 12.
19.7 Sec. 46. Minnesota Statutes 2004, section 490.121, is
19.8 amended by adding a subdivision to read:
19.9 Subd. 21a. JUDGE. "Judge" means a judge or a justice of
19.10 any court as defined under subdivision 7b.
19.11 Sec. 47. Minnesota Statutes 2004, section 490.121, is
19.12 amended by adding a subdivision to read:
19.13 Subd. 21b. JUDGES' RETIREMENT FUND. "Judges' retirement
19.14 fund," "retirement fund," or "fund" means the fund created by
19.15 section 490.123.
19.16 Sec. 48. Minnesota Statutes 2004, section 490.121, is
19.17 amended by adding a subdivision to read:
19.18 Subd. 21c. MANDATORY RETIREMENT DATE. "Mandatory
19.19 retirement date" means the last day of the month in which a
19.20 judge has attained 70 years of age.
19.21 Sec. 49. Minnesota Statutes 2004, section 490.121, is
19.22 amended by adding a subdivision to read:
19.23 Subd. 21d. NORMAL RETIREMENT ANNUITY. Except as
19.24 otherwise provided in sections 490.121 to 490.132, "normal
19.25 retirement annuity" means an annuity to which a judge is
19.26 entitled under section 490.124, subdivision 1, upon retirement
19.27 on or after the normal retirement date of the judge.
19.28 Sec. 50. Minnesota Statutes 2004, section 490.121, is
19.29 amended by adding a subdivision to read:
19.30 Subd. 21e. NORMAL RETIREMENT DATE. "Normal retirement
19.31 date" means the last day of the month in which a judge attains
19.32 the age of 65.
19.33 Sec. 51. Minnesota Statutes 2004, section 490.121,
19.34 subdivision 22, is amended to read:
19.35 Subd. 22. SERVICE CREDIT LIMIT. "Service credit limit"
19.36 means the greater of: (1) 24 years of allowable service
20.1 under this chapter 490; or (2) for judges with allowable service
20.2 rendered prior to before July 1, 1980, the number of years of
20.3 allowable service under chapter 490, which, when multiplied by
20.4 the percentage listed in section 356.315, subdivision 7 or 8,
20.5 whichever is applicable to each year of service, equals 76.8.
20.6 Sec. 52. Minnesota Statutes 2004, section 490.121, is
20.7 amended by adding a subdivision to read:
20.8 Subd. 23. SURVIVING SPOUSE. "Surviving spouse" means the
20.9 surviving legally married spouse of a deceased judge.
20.10 Sec. 53. Minnesota Statutes 2004, section 490.121, is
20.11 amended by adding a subdivision to read:
20.12 Subd. 24. SURVIVOR'S ANNUITY. "Survivor's annuity" means
20.13 an annuity to which a surviving spouse or dependent child is
20.14 entitled under section 490.124, subdivision 9.
20.15 Sec. 54. Minnesota Statutes 2004, section 490.122, is
20.16 amended to read:
20.17 490.122 ADMINISTRATION OF JUDGES' RETIREMENT.
20.18 Subdivision 1. ADMINISTRATION. The policy‑making,
20.19 management, and administrative functions governing the operation
20.20 of the judges' retirement fund and the administration
20.21 of sections 490.121 to 490.132 this chapter are vested in the
20.22 board of directors and executive director of the Minnesota State
20.23 Retirement System with such. In administering the plan and
20.24 fund, the board and the director have the same duties,
20.25 authority, and responsibility as are provided in chapter 352.
20.26 Subd. 2. INAPPLICABILITY OF CERTAIN LAWS. Except as
20.27 otherwise specified, no provision of chapter 352 applies to the
20.28 judges' retirement fund or any judge.
20.29 Subd. 3. FIDUCIARY RESPONSIBILITY. Fiduciary
20.30 activities of relating to the uniform judges' retirement and
20.31 Survivors' Annuities for Judges plan must be undertaken in a
20.32 manner consistent with chapter 356A.
20.33 Sec. 55. Minnesota Statutes 2004, section 490.123,
20.34 subdivision 1, is amended to read:
20.35 Subdivision 1. FUND CREATION; REVENUE AND AUTHORIZED
20.36 DISBURSEMENTS. (a) There is created a special fund to be known
21.1 as the "judges' retirement fund".
21.2 (b) The judges' retirement fund must be credited with all
21.3 contributions,; all interest, dividends, and other investment
21.4 proceeds; and all other income authorized by this chapter or
21.5 other applicable law.
21.6 (c) From this fund there are appropriated the payments
21.7 authorized by sections 490.121 to 490.132, in the amounts and at
21.8 the times provided, including the necessary and reasonable
21.9 expenses of the Minnesota State Retirement System in
21.10 administering the fund and the transfers to the Minnesota
21.11 postretirement investment fund.
21.12 Sec. 56. Minnesota Statutes 2004, section 490.123,
21.13 subdivision 1a, is amended to read:
21.14 Subd. 1a. MEMBER CONTRIBUTION RATES. (a) A judge who is
21.15 covered by the federal Old Age, Survivors, Disability, and
21.16 Health Insurance Program and whose service does not exceed the
21.17 service credit limit in section 490.121, subdivision 22, shall
21.18 contribute to the fund from each salary payment a sum equal to
21.19 8.00 percent of salary.
21.20 (b) A judge not so covered whose service does not exceed
21.21 the service credit limit in section 490.121, subdivision 22,
21.22 shall contribute to the fund from each salary payment a sum
21.23 equal to 8.15 percent of salary.
21.24 (c) The contribution under this subdivision is payable by
21.25 salary deduction. The deduction must be made by the state court
21.26 administrator under section 352.04, subdivisions 4, 5, and 8.
21.27 Sec. 57. Minnesota Statutes 2004, section 490.123,
21.28 subdivision 1b, is amended to read:
21.29 Subd. 1b. EMPLOYER CONTRIBUTION RATE. (a) The employer
21.30 contribution rate to the fund on behalf of a judge is 20.5
21.31 percent of salary and. The employer obligation continues after
21.32 a judge exceeds the service credit limit in section 490.121,
21.33 subdivision 22.
21.34 (b) The employer contribution must be paid by the state
21.35 court administrator and. The employer contribution is payable
21.36 at the same time as member contributions are made under
22.1 subdivision 1a or as employee contributions are made to the
22.2 unclassified plan in program governed by chapter 352D for judges
22.3 whose service exceeds the limit in section 490.121, subdivision
22.4 22, are remitted.
22.5 Sec. 58. Minnesota Statutes 2004, section 490.123,
22.6 subdivision 1c, is amended to read:
22.7 Subd. 1c. ADDITIONAL EMPLOYER CONTRIBUTION. In the event
22.8 that If the employer contribution under subdivision 1b and the
22.9 assets of the judges retirement fund are insufficient to meet
22.10 reserve transfers to the Minnesota postretirement investment
22.11 fund or payments of survivor benefits before July 1, 1993 in a
22.12 month, the necessary amount is appropriated from the general
22.13 fund to the executive director of the Minnesota State Retirement
22.14 System, upon the certification of the required amount by the
22.15 executive director to the commissioner of finance.
22.16 Sec. 59. Minnesota Statutes 2004, section 490.123,
22.17 subdivision 2, is amended to read:
22.18 Subd. 2. COMMISSIONER OF FINANCE. The commissioner of
22.19 finance shall be is the ex officio treasurer of the judges'
22.20 retirement fund and the. The commissioner's general bond to the
22.21 state shall must be so conditioned as to cover all liability for
22.22 acting as the treasurer of this the fund. All moneys money
22.23 received by the commissioner pursuant to under this section
22.24 shall must be set aside in the state treasury to the credit of
22.25 the judges' retirement fund. The commissioner shall transmit
22.26 monthly to the executive director described in section 352.03,
22.27 subdivision 5, a detailed statement of all amounts so received
22.28 and credited to the fund. The commissioner shall pay out the
22.29 fund only upon vouchers signed by said executive director;
22.30 provided that vouchers for investment may be signed by the
22.31 secretary of the State Board of Investment.
22.32 Sec. 60. Minnesota Statutes 2004, section 490.123,
22.33 subdivision 3, is amended to read:
22.34 Subd. 3. INVESTMENT. (a) The executive director referred
22.35 to in subdivision 2 of the Minnesota State Retirement System
22.36 shall, from time to time, certify to the State Board of
23.1 Investment such portions of the judges' retirement fund as in
23.2 the director's judgment may not be required for immediate use.
23.3 (b) Assets from the judges' retirement fund shall must be
23.4 transferred to the Minnesota postretirement investment fund for
23.5 retirement and disability benefits as provided in sections
23.6 11A.18 and 352.119.
23.7 (c) The State Board of Investment shall thereupon invest
23.8 and reinvest sums so transferred, or certified, in such
23.9 securities as are duly authorized legal investments for such
23.10 purposes under section 11A.24 in compliance with sections
23.11 356A.04 and 356A.06.
23.12 Sec. 61. Minnesota Statutes 2004, section 490.124,
23.13 subdivision 1, is amended to read:
23.14 Subdivision 1. BASIC RETIREMENT ANNUITY. (a) Except as
23.15 qualified hereinafter from and after the mandatory retirement
23.16 date, the normal retirement date, the early retirement date, or
23.17 one year from the disability retirement date, as the case may
23.18 be, a retiring judge is eligible to receive a retirement annuity
23.19 shall be payable to a retiring judge from the judges' retirement
23.20 fund in.
23.21 (b) The retirement annuity is an amount equal to: (1) the
23.22 percent specified in section 356.315, subdivision 7, multiplied
23.23 by the judge's final average compensation with that result then
23.24 multiplied by the number of years and fractions of years of
23.25 allowable service rendered prior to before July 1, 1980; plus
23.26 (2) the percent specified in section 356.315, subdivision 8,
23.27 multiplied by the judge's final average compensation with that
23.28 result then multiplied by the number of years and fractions of
23.29 years of allowable service rendered after June 30, 1980.
23.30 (c) Service that exceeds the service credit limit in
23.31 section 490.121, subdivision 22, must be excluded in calculating
23.32 the retirement annuity, but the compensation earned by the judge
23.33 during this period of judicial service must be used in
23.34 determining a judge's final average compensation and calculating
23.35 the retirement annuity.
23.36 Sec. 62. Minnesota Statutes 2004, section 490.124,
24.1 subdivision 2, is amended to read:
24.2 Subd. 2. MINIMUM SERVICE REQUIREMENT; EXTENSION OF TERM.
24.3 No (a) Unless section 356.30 applies, a judge shall be is not
24.4 eligible for an annuity at the normal retirement date or the
24.5 early retirement date if the judge has less than five years of
24.6 allowable service.
24.7 (b) A judge who shall retire retires on or, as permitted
24.8 under sections 490.121 to 490.132, after the judge's mandatory
24.9 retirement date, shall be is entitled to a proportionate annuity
24.10 based upon the allowable service of the judge at the date of
24.11 retirement.
24.12 A judge who was in office on December 31, 1973, and
24.13 thereafter and who, by the date on which the current term
24.14 expires, would not be eligible to retire with full benefits
24.15 under statutes in effect on December 31, 1973, may apply to the
24.16 governor for an extension to serve up to three additional years,
24.17 stating the intention of the judge to retire upon attaining
24.18 eligibility to receive a retirement allowance. Notwithstanding
24.19 section 490.125, the governor shall forthwith make a written
24.20 order accepting the retirement application, and extending the
24.21 term of office of the judge for the period of time, not to
24.22 exceed three years, as may be necessary to make the judge
24.23 eligible for retirement, solely for purposes of computing
24.24 benefits hereunder.
24.25 Sec. 63. Minnesota Statutes 2004, section 490.124,
24.26 subdivision 3, is amended to read:
24.27 Subd. 3. EARLY REDUCED RETIREMENT. The retirement
24.28 annuity provided by under subdivision 1 of any judge electing
24.29 who elects to retire at an early retirement date shall must be
24.30 reduced by one‑half of one percent per month from the retirement
24.31 date to the normal retirement date.
24.32 Sec. 64. Minnesota Statutes 2004, section 490.124,
24.33 subdivision 4, is amended to read:
24.34 Subd. 4. DISABILITY RETIREMENT. (a) When the governor
24.35 determines that a judge is disabled under section 490.121,
24.36 subdivision 13, notice of the governor's determination must be
25.1 sent to the judge, to the chief justice of the Supreme Court, to
25.2 the state court administrator, and to the executive director of
25.3 the Minnesota State Retirement System.
25.4 (b) From and after disability retirement date, a disabled
25.5 judge shall be is entitled to continuation of the judge's full
25.6 salary payable by the judge's employer, as if the judge's office
25.7 were not vacated by retirement, for a period of up to one full
25.8 year, but in no event beyond the judge's mandatory retirement
25.9 date. During this year the judge will is entitled to earn
25.10 additional service credit in the judges' retirement plan. The
25.11 salary earned will be payable to a disabled judge is subject to
25.12 retirement deductions and will must be included in computing
25.13 final average compensation of the judge. Thereafter
25.14 (c) At the conclusion of the year of continued salary
25.15 following a disability or upon the judge's mandatory retirement
25.16 date, whichever is earlier, the disabled judge is entitled to a
25.17 disability retirement annuity computed as provided in
25.18 subdivision 1 shall be paid, provided that. If the computed
25.19 retirement annuity is a smaller amount, the judge shall is
25.20 entitled to receive a minimum annuity of 25 percent of the
25.21 judge's final average compensation.
25.22 Sec. 65. Minnesota Statutes 2004, section 490.124,
25.23 subdivision 5, is amended to read:
25.24 Subd. 5. DEFERRED BENEFITS. (a) Any A benefit to which a
25.25 judge is entitled under this section may be deferred until the
25.26 early or normal retirement date or later, notwithstanding the
25.27 termination of such the judge's service prior thereto.
25.28 (b) The retirement annuity of, or the survivor benefit
25.29 payable on behalf of, a former judge, who terminated service
25.30 before July 1, 1997, which is not first payable until after June
25.31 30, 1997, must be increased on an actuarial equivalent basis to
25.32 reflect the change in the postretirement interest rate actuarial
25.33 assumption under section 356.215, subdivision 8, from five
25.34 percent to six percent under a calculation procedure and tables
25.35 adopted by the board of directors of the Minnesota State
25.36 Retirement System and approved by the actuary retained by the
26.1 Legislative Commission on Pensions and Retirement under section
26.2 356.214.
26.3 Sec. 66. Minnesota Statutes 2004, section 490.124,
26.4 subdivision 8, is amended to read:
26.5 Subd. 8. EXCLUSIVE NORMAL RETIREMENT BENEFITS. Any (a)
26.6 Except as provided in paragraph (b), a judge who retires after
26.7 December 31, 1973, shall be is entitled to a retirement pension,
26.8 retirement compensation or other retirement payment under
26.9 statutes applicable solely to judges pursuant to under this
26.10 section only, except that any such.
26.11 (b) A judge who was in office prior to before January 1,
26.12 1974, who retires at or after normal retirement age may then
26.13 elect to receive during the judge's lifetime a normal retirement
26.14 annuity computed on the basis of retirement compensation
26.15 provided for such judge under statutes in effect on December 31,
26.16 1973, in lieu of the amount of normal retirement annuity
26.17 otherwise computed under sections 490.121 to 490.132.
26.18 For purposes of this subdivision, the Conciliation Court of
26.19 the city of Duluth shall be deemed to have been a court of
26.20 record by the statutes in effect on December 31, 1973.
26.21 Sec. 67. Minnesota Statutes 2004, section 490.124,
26.22 subdivision 9, is amended to read:
26.23 Subd. 9. SURVIVORS' ANNUITY. (a) Upon the death of a
26.24 judge prior to before retirement, or upon the death of a person
26.25 who has qualified for an annuity under this section but who
26.26 ceases to be a judge prior to before retirement and has who not
26.27 received a refund of contributions pursuant to under subdivision
26.28 12, a surviving spouse is entitled to, or, if there be no
26.29 surviving spouse, dependent children, shall are entitled to
26.30 receive an annuity, payable monthly, equal in total to 60
26.31 percent of the normal retirement annuity which would have been
26.32 payable to the judge or former judge had the date of death been
26.33 the normal retirement date, provided that the.
26.34 (b) The annuity payable to a surviving spouse or to
26.35 dependent children shall receive an annuity is an amount of not
26.36 less than 25 percent of the judge's or the former judge's final
27.1 average compensation.
27.2 If a judge, whose surviving spouse was not entitled to
27.3 survivors benefits provided solely for judges under statutes in
27.4 effect prior to January 1, 1974, shall have died prior to
27.5 retirement on or after May 23, 1973 and before January 1, 1974,
27.6 a surviving spouse and dependent children, if any, shall be
27.7 entitled to survivors benefits as provided hereunder as if such
27.8 judge had died on January 1, 1974.
27.9 Sec. 68. Minnesota Statutes 2004, section 490.124,
27.10 subdivision 10, is amended to read:
27.11 Subd. 10. PRIOR SURVIVORS' BENEFITS; LIMITATION. (a)
27.12 Benefits provided pursuant to under Minnesota Statutes 2004,
27.13 section 490.102, subdivision 6, or 490.1091, for a surviving
27.14 spouse of a retired judge, payable after the death of the judge,
27.15 shall be are limited to:
27.16 (a) spouses of judges who have retired prior to before
27.17 January 1, 1974; and .
27.18 (b) spouses of judges in office on December 31, 1973 and
27.19 thereafter who elect to continue contributions pursuant to
27.20 section 490.102, subdivision 6 or 490.109. The contributions
27.21 shall be in addition to contributions pursuant to section
27.22 490.123, and upon retirement the judge may not elect to receive
27.23 any optional annuity pursuant to subdivision 11 unless the judge
27.24 and the spouse shall waive any benefits pursuant to section
27.25 490.102, subdivision 6 or 490.1091.
27.26 (b) No other judge in office on or after January 1, 1974,
27.27 shall be is required to contribute pursuant to under Minnesota
27.28 Statutes 2004, section 490.102, subdivision 6, or 490.109.
27.29 Sec. 69. Minnesota Statutes 2004, section 490.124,
27.30 subdivision 11, is amended to read:
27.31 Subd. 11. LIMITATION ON SURVIVOR BENEFITS; OPTIONAL
27.32 ANNUITIES. (a) No survivor or death benefits may be paid in
27.33 connection with the death of a judge who retires after December
27.34 31, 1973, except as otherwise provided in sections 490.121 to
27.35 490.132.
27.36 (b) Except as provided in subdivision 10, a judge may elect
28.1 to receive, instead of the normal retirement annuity, an
28.2 optional retirement annuity in the form of either (1) an annuity
28.3 payable for a period certain and for life after that period, (2)
28.4 a joint and survivor annuity without reinstatement in the event
28.5 of if the designated beneficiary predeceasing predeceases the
28.6 retired judge, or (3) a joint and survivor annuity with
28.7 reinstatement in the event of if the designated beneficiary
28.8 predeceasing predeceases the retired judge.
28.9 (c) An optional retirement annuity must be actuarially
28.10 equivalent to a single‑life annuity with no term certain and
28.11 must be established by the board of directors of the Minnesota
28.12 State Retirement System. In establishing these optional
28.13 retirement annuity forms, the board shall obtain the written
28.14 recommendation of the actuary retained by the Legislative
28.15 Commission on Pensions and Retirement under section 356.214.
28.16 The recommendations must be retained as a part of the permanent
28.17 records of the board.
28.18 Sec. 70. Minnesota Statutes 2004, section 490.124,
28.19 subdivision 12, is amended to read:
28.20 Subd. 12. REFUND. (a) A person who ceases to be a
28.21 judge but who does not qualify for a retirement annuity or other
28.22 benefit under section 490.121 is entitled to a refund in an
28.23 amount that is equal to all of the member's employee
28.24 contributions to the judges' retirement fund plus interest
28.25 computed under section 352.22, subdivision 2.
28.26 (b) A refund of contributions under paragraph (a)
28.27 terminates all service credits and all rights and benefits of
28.28 the judge and the judge's survivors under this chapter.
28.29 (c) A person who becomes a judge again after taking a
28.30 refund under paragraph (a) may reinstate the previously
28.31 terminated allowable service credits credit, rights, and
28.32 benefits by repaying the total amount of the previously received
28.33 refund. The refund repayment must include interest on the total
28.34 amount previously received at an annual rate of 8.5 percent,
28.35 compounded annually, from the date on which the refund was
28.36 received until the date on which the refund is repaid.
29.1 Sec. 71. Minnesota Statutes 2004, section 490.124,
29.2 subdivision 13, is amended to read:
29.3 Subd. 13. DEATH REFUND. If a judge who has not received
29.4 other benefits under this chapter dies and there are no survivor
29.5 benefits payable under this chapter, a refund plus interest as
29.6 provided in subdivision 12 is payable to the last designated
29.7 beneficiary named on a form filed with the director before the
29.8 death of the judge, or, if no designation is on file, the refund
29.9 is payable to the estate of the deceased judge.
29.10 Sec. 72. Minnesota Statutes 2004, section 490.125,
29.11 subdivision 1, is amended to read:
29.12 Subdivision 1. MANDATORY RETIREMENT AGE. Except as
29.13 otherwise provided in sections 490.121 to 490.132, each a judge
29.14 shall retire terminate active service as a judge on the judge's
29.15 mandatory retirement date.
29.16 Sec. 73. Minnesota Statutes 2004, section 490.126, is
29.17 amended to read:
29.18 490.126 PROCEDURES.
29.19 Subdivision 1. COMPULSORY RETIREMENT. Proceedings for
29.20 compulsory retirement of a judge, if necessary, shall must be
29.21 conducted in accordance with rules issued by the Supreme Court
29.22 pursuant to under section 490.16.
29.23 Subd. 2. VACANCIES. Any judge may make written
29.24 application to the governor for retirement. The governor
29.25 thereupon shall direct the judge's retirement by written order
29.26 which, when filed in the Office of the Secretary of State, shall
29.27 effect effects a vacancy in the office to be filled as provided
29.28 by law.
29.29 Subd. 3. APPLICATION FOR ANNUITY OR REFUND. An
29.30 application for an annuity or a refund under sections 490.121 to
29.31 490.132 may be made by the potential annuitant or by someone
29.32 authorized to act for the potential annuitant. Every
29.33 application for an annuity or refund, with accompanied by a
29.34 proof of age and by a record of years of service when
29.35 required, shall must be submitted to the governing
29.36 body executive director of the Minnesota State Retirement System
30.1 in a form prescribed by it the director.
30.2 Subd. 4. MANNER OF PAYMENT. Unless otherwise
30.3 specifically provided by statute or agreed upon by the annuitant
30.4 and the governing body board of directors of the Minnesota State
30.5 Retirement System, annuities payable under sections 490.121 to
30.6 490.132 shall must be paid in the manner and at the intervals as
30.7 prescribed by the executive director of the Minnesota State
30.8 Retirement System. The annuity shall cease ceases with the last
30.9 payment received by the annuitant while living.
30.10 Subd. 5. EXEMPTION FROM PROCESS; NO ASSIGNMENT. None of
30.11 the money, annuities, or other benefits provided in this chapter
30.12 is assignable either in law or equity or is subject to state
30.13 estate tax, or to execution, levy, attachment, garnishment, or
30.14 other legal process, except as provided in section 518.58,
30.15 518.581, or 518.6111.
30.16 Sec. 74. Minnesota Statutes 2004, section 490.133, is
30.17 amended to read:
30.18 490.133 RETIREMENT; TRANSITION PROVISIONS; TRANSFER TO
30.19 COURT OF APPEALS.
30.20 (a) If a judge to whom or to whose survivors benefits would
30.21 be payable under Minnesota Statutes 2004, sections 490.101 to
30.22 490.12, is elected or appointed to the Court of Appeals, that
30.23 judge and the judge's survivors, shall continue to be eligible
30.24 for benefits under those sections and not under sections 490.121
30.25 to 490.132.
30.26 (b) In that the case of a judge to whom paragraph (a)
30.27 applies, the service of the judge in the Court of Appeals shall
30.28 must be added to the prior service as district judge, probate
30.29 judge, or judge of any other court of record in determining
30.30 eligibility and the compensation of a judge of the Court of
30.31 Appeals at the time of the judge's death, disability, or
30.32 retirement shall be is the "compensation allotted to the office"
30.33 for the purposes of calculating benefit amounts.
30.34 (c) All other judges of the Court of Appeals and their
30.35 survivors shall be are subject to the retirement and survivor's
30.36 annuity provisions of sections 490.121 to 490.132.
31.1 Sec. 75. 490A.01 BOARD OF JUDICIAL STANDARDS;
31.2 ESTABLISHMENT.
31.3 Subdivision 1. ESTABLISHMENT; COMPOSITION. The Board on
31.4 Judicial Standards is established. The board is a continuation
31.5 of the board established by Laws 1971, chapter 909, sections 1
31.6 and 2, as amended.
31.7 Subd. 2. COMPOSITION; APPOINTMENT. (a) The board
31.8 consists of one judge of the Court of Appeals, three trial court
31.9 judges, two lawyers who have practiced law in the state for at
31.10 least ten years, and four citizens who are not judges, retired
31.11 judges, or lawyers.
31.12 (b) All members must be appointed by the governor with the
31.13 advice and consent of the senate. Senate confirmation is not
31.14 required for judicial members.
31.15 Subd. 3. TERM MAXIMUM; MEMBERSHIP TERMINATION. No member
31.16 may serve more than two full four‑year terms or their equivalent.
31.17 Membership terminates if a member ceases to hold the position
31.18 that qualified the member for appointment.
31.19 Subd. 4. MEMBER TERMS; COMPENSATION; REMOVAL. The
31.20 membership terms, compensation, removal of members, and filling
31.21 of vacancies on the board are as provided in section 15.0575.
31.22 Subd. 5. EXECUTIVE SECRETARY APPOINTMENT; SALARY. (a)
31.23 The board shall appoint the executive secretary.
31.24 (b) The salary of the executive secretary of the board is
31.25 85 percent of the maximum salary provided for an administrative
31.26 law judge under section 15A.083, subdivision 6a.
31.27 Sec. 76. 490A.02 JUDICIAL STANDARDS BOARD; POWERS.
31.28 Subdivision 1. JUDICIAL DISQUALIFICATION. A judge is
31.29 disqualified from acting as a judge, without a loss of salary,
31.30 while there is pending an indictment or any information charging
31.31 the judge with a crime that is punishable as a felony under
31.32 either Minnesota law or federal law, or while there is pending a
31.33 recommendation to the Supreme Court by the Board on Judicial
31.34 Standards for the judge's removal or retirement.
31.35 Subd. 2. JUDICIAL SUSPENSION. On receipt of a
31.36 recommendation of the Board on Judicial Standards or on its own
32.1 motion, the Supreme Court may suspend a judge from office
32.2 without salary when the judge pleads guilty to or no contest to
32.3 or is found guilty of a crime that is punishable as a felony
32.4 under either Minnesota law or federal law or any other crime
32.5 that involves moral turpitude. If the conviction is reversed,
32.6 the suspension terminates and the judge must be paid a salary
32.7 for the period of suspension. If the judge is suspended and the
32.8 conviction becomes final, the Supreme Court shall remove the
32.9 judge from office.
32.10 Subd. 3. JUDICIAL DISABILITY. On receipt of a
32.11 recommendation of the Board on Judicial Standards, the Supreme
32.12 Court may retire a judge for a disability that the court
32.13 determines seriously interferes with the performance of the
32.14 judge's duties and is or is likely to become permanent, and
32.15 censure or remove a judge for an action or inaction that may
32.16 constitute persistent failure to perform the judge's duties,
32.17 incompetence in performing the judge's duties, habitual
32.18 intemperance, or conduct prejudicial to the administration of
32.19 justice that brings the judicial office into disrepute.
32.20 Subd. 4. AUTHORITY TO REOPEN MATTERS. The board is
32.21 specifically empowered to reopen any matter wherein any
32.22 information or evidence was previously precluded by a statute of
32.23 limitations or by a previously existing provision of time
32.24 limitation.
32.25 Subd. 5. RETIREMENT STATUS. (a) A judge who is retired
32.26 by the Supreme Court must be considered to have retired
32.27 voluntarily.
32.28 (b) This section and section 490A.01 must not affect the
32.29 right of a judge who is suspended, retired, or removed hereunder
32.30 from qualifying for any pension or other retirement benefits to
32.31 which the judge would otherwise be entitled by law to receive.
32.32 Subd. 6. ELIGIBILITY FOR JUDICIAL OFFICE; PRACTICE
32.33 LAW. A judge removed by the Supreme Court is ineligible for any
32.34 future service in a judicial office. The question of the right
32.35 of a removed judge to practice law in this state must be
32.36 referred to the proper authority for review.
33.1 Subd. 7. SUPREME COURT RULES. The Supreme Court shall
33.2 make rules to implement this section.
33.3 Sec. 77. REPEALER; EFFECT ON BENEFIT COVERAGE.
33.4 Subdivision 1. LEGISLATORS RETIREMENT PLAN; REPEALED AS
33.5 OBSOLETE. Minnesota Statutes 2004, sections 3A.01, subdivisions
33.6 3, 4, 6a, and 7; 3A.02, subdivision 2; 3A.04, subdivision 1; and
33.7 3A.09, are repealed.
33.8 Subd. 2. ELECTIVE STATE OFFICERS RETIREMENT PLAN;
33.9 REPEALED AS OBSOLETE. Minnesota Statutes 2004, sections
33.10 352C.01; 352C.011; 352C.021; 352C.031; 352C.033; 352C.04;
33.11 352C.051; 352C.09; and 352C.091, subdivisions 2 and 3, are
33.12 repealed.
33.13 Subd. 3. JUDICIAL RETIREMENT PLANS; REPEALED AS
33.14 OBSOLETE. Minnesota Statutes 2004, sections 490.021; 490.025,
33.15 subdivisions 1, 2, 3, 4, and 6; 490.101; 490.102; 490.103;
33.16 490.105; 490.106; 490.107; 490.108; 490.109; 490.1091; 490.12;
33.17 and 490.121, subdivisions 2, 3, 5, 8, 9, 10, 11, 12, 16, 17, 18,
33.18 19, and 20, are repealed.
33.19 Subd. 4. JUDICIAL STANDARDS BOARD; REPEALED FOR
33.20 RELOCATION AS MINNESOTA STATUTES, CHAPTER 490A. Minnesota
33.21 Statutes 2004, sections 490.021; 490.025, subdivisions 1, 2, 3,
33.22 4, and 6; 490.101; 490.102; 490.103; 490.105; 490.106; 490.107;
33.23 490.108; 490.109; 490.1091; 490.12; and 490.121, subdivisions 2,
33.24 3, 5, 8, 9, 10, 11, 12, 16, 17, 18, 19, and 20, are repealed.
33.25 Subd. 5. UNIFORM JUDICIAL RETIREMENT PLAN; NO BENEFIT
33.26 DIMINISHMENT INTENDED; PROCEDURE. Sections 32 to 76 are not
33.27 intended to reduce or increase the entitlement of active,
33.28 deferred, or retired judges to retirement annuities or benefits
33.29 as of July 1, 2005, as reflected in the records of the Minnesota
33.30 State Retirement System. If the executive director of the
33.31 Minnesota State Retirement System determines that any provisions
33.32 of sections 32 to 76 functions to modify, impair, or diminish
33.33 the retirement annuity or benefit entitlement of any judge that
33.34 had accrued or earned before July 1, 2005, the executive
33.35 director shall certify that determination and a recommendation
33.36 as to the required legislative correction to the chair of the
34.1 Legislative Commission on Pensions and Retirement, the chair of
34.2 the Senate State and Local Governmental Operations Committee,
34.3 the chair of the House Governmental Operations and Veterans
34.4 Affairs Policy Committee, and the executive director of the
34.5 Legislative Commission on Pensions and Retirement on or before
34.6 the October 1 next following that determination.
34.7 Sec. 78. EFFECTIVE DATE.
34.8 Sections 1 to 77 are effective on July 1, 2005.
34.9 ARTICLE 2
34.10 COVERED SALARY; AVERAGE SALARY
34.11 Section 1. Minnesota Statutes 2004, section 352.01, is
34.12 amended by adding a subdivision to read:
34.13 Subd. 14a. AVERAGE SALARY. (a) "Average salary" means
34.14 the average of the highest five successive years of salary upon
34.15 which the employee has made contributions to the retirement fund
34.16 by payroll deductions. Average salary must be based upon all
34.17 allowable service if this service is less than five years.
34.18 (b) "Average salary" does not include the payment of
34.19 accrued unused annual leave or overtime paid at time of final
34.20 separation from state service if paid in a lump sum nor does it
34.21 include the reduced salary, if any, paid during the period the
34.22 employee is entitled to workers' compensation benefit payments
34.23 for temporary disability.
34.24 (c) For an employee covered by the correctional state
34.25 employees retirement plan, "average salary" means the average of
34.26 the monthly salary during the employee's highest five successive
34.27 years of salary as an employee covered by the general state
34.28 employees retirement plan, or the correctional state employees
34.29 retirement plan, or by a combination of the two. If the total
34.30 of the covered service is less than five years, the
34.31 determination of average salary must be based on all allowable
34.32 service.
34.33 Sec. 2. Minnesota Statutes 2004, section 352.115,
34.34 subdivision 2, is amended to read:
34.35 Subd. 2. AVERAGE SALARY NORMAL RETIREMENT ANNUITY. The
34.36 retirement annuity hereunder payable at normal retirement age or
35.1 thereafter must be computed in accordance with the applicable
35.2 provisions of the formula stated in subdivision 3, on the basis
35.3 of the employee's average salary for the period of allowable
35.4 service. This retirement annuity is known as the "normal"
35.5 retirement annuity.
35.6 For each year of allowable service, "average salary" of an
35.7 employee in determining a retirement annuity means the average
35.8 of the highest five successive years of salary upon which the
35.9 employee has made contributions to the retirement fund by
35.10 payroll deductions. Average salary must be based upon all
35.11 allowable service if this service is less than five years.
35.12 "Average salary" does not include the payment of accrued
35.13 unused annual leave or overtime paid at time of final separation
35.14 from state service if paid in a lump sum nor does it include the
35.15 reduced salary, if any, paid during the period the employee is
35.16 entitled to workers' compensation benefit payments for temporary
35.17 disability.
35.18 Sec. 3. Minnesota Statutes 2004, section 352.115,
35.19 subdivision 3, is amended to read:
35.20 Subd. 3. RETIREMENT ANNUITY FORMULA. (a) This paragraph,
35.21 in conjunction with section 352.116, subdivision 1, applies to a
35.22 person who became a covered employee or a member of a pension
35.23 fund listed in section 356.30, subdivision 3, before July 1,
35.24 1989, unless paragraph (b), in conjunction with section 352.116,
35.25 subdivision 1a, produces a higher annuity amount, in which case
35.26 paragraph (b) will apply. The employee's average salary, as
35.27 defined in section 352.01, subdivision 2 14a, multiplied by the
35.28 percent specified in section 356.315, subdivision 1, per year of
35.29 allowable service for the first ten years and the percent
35.30 specified in section 356.315, subdivision 2, for each later year
35.31 of allowable service and pro rata for completed months less than
35.32 a full year shall determine the amount of the retirement annuity
35.33 to which the employee is entitled.
35.34 (b) This paragraph applies to a person who has become at
35.35 least 55 years old and first became a covered employee after
35.36 June 30, 1989, and to any other covered employee who has become
36.1 at least 55 years old and whose annuity amount, when calculated
36.2 under this paragraph and in conjunction with section 352.116,
36.3 subdivision 1a, is higher than it is when calculated under
36.4 paragraph (a), in conjunction with section 352.116, subdivision
36.5 1. The employee's average salary, as defined in section 352.01,
36.6 subdivision 2 14a, multiplied by the percent specified in
36.7 section 356.315, subdivision 2, for each year of allowable
36.8 service and pro rata for months less than a full year shall
36.9 determine the amount of the retirement annuity to which the
36.10 employee is entitled.
36.11 Sec. 4. Minnesota Statutes 2004, section 352.87,
36.12 subdivision 3, is amended to read:
36.13 Subd. 3. RETIREMENT ANNUITY FORMULA. A person specified
36.14 in subdivision 1 will have is entitled to receive a retirement
36.15 annuity applicable for allowable service credit under this
36.16 section calculated by multiplying the employee's average salary,
36.17 as defined in section 352.115 352.01, subdivision 2 14a, by the
36.18 percent specified in section 356.315, subdivision 2a, for each
36.19 year or portions of a year of allowable service credit. No
36.20 reduction for retirement prior to before the normal retirement
36.21 age, as specified in section 352.01, subdivision 25, applies to
36.22 service to which this section applies.
36.23 Sec. 5. Minnesota Statutes 2004, section 352.93,
36.24 subdivision 1, is amended to read:
36.25 Subdivision 1. BASIS OF ANNUITY; WHEN TO APPLY. After
36.26 separation from state service, an employee covered under section
36.27 352.91 who has reached age 55 years and has credit for at least
36.28 three years of covered correctional service or a combination of
36.29 covered correctional service and regular Minnesota general
36.30 employees state retirement System plan service is entitled upon
36.31 application to a retirement annuity under this section, based
36.32 only on covered correctional employees' service. Application
36.33 may be made no earlier than 60 days before the date the employee
36.34 is eligible to retire by reason of both age and service
36.35 requirements.
36.36 In this section, "average salary" means the average of the
37.1 monthly salary during the employee's highest five successive
37.2 years of salary as an employee covered by the Minnesota State
37.3 Retirement System. Average salary must be based upon all
37.4 allowable service if this service is less than five years.
37.5 Sec. 6. Minnesota Statutes 2004, section 352C.021, is
37.6 amended by adding a subdivision to read:
37.7 Subd. 1a. AVERAGE SALARY. "Average salary," for purposes
37.8 of calculating the normal retirement annuity under section
37.9 352C.031, subdivision 4, means the average of the highest five
37.10 successive years of salary upon which contributions have been
37.11 made under section 352C.09.
37.12 Sec. 7. Minnesota Statutes 2004, section 353.01,
37.13 subdivision 10, is amended to read:
37.14 Subd. 10. SALARY. (a) "Salary" means:
37.15 (1) the periodic compensation of a public employee, before
37.16 deductions for deferred compensation, supplemental retirement
37.17 plans, or other voluntary salary reduction programs, and also
37.18 means "wages" and includes net income from fees;
37.19 (2) for a public employee who is covered by a supplemental
37.20 retirement plan under section 356.24, subdivision 1, clause (8),
37.21 (9), or (10), which require all plan contributions be made by
37.22 the employer, the contribution to the applicable supplemental
37.23 retirement plan when the contribution is from mandatory
37.24 withholdings from employees' wages; and
37.25 (2) (3) for a public employee who has prior service covered
37.26 by a local police or firefighters relief association that has
37.27 consolidated with the Public Employees Retirement Association or
37.28 to which section 353.665 applies and who has elected coverage
37.29 either under the public employees police and fire fund benefit
37.30 plan under section 353A.08 following the consolidation or under
37.31 section 353.665, subdivision 4, the rate of salary upon which
37.32 member contributions to the special fund of the relief
37.33 association were made prior to the effective date of the
37.34 consolidation as specified by law and by bylaw provisions
37.35 governing the relief association on the date of the initiation
37.36 of the consolidation procedure and the actual periodic
38.1 compensation of the public employee after the effective date of
38.2 consolidation.
38.3 (b) Salary does not mean:
38.4 (1) the fees paid to district court reporters, unused
38.5 annual vacation or sick leave payments, in lump‑sum or periodic
38.6 payments, severance payments, reimbursement of expenses,
38.7 lump‑sum settlements not attached to a specific earnings period,
38.8 or workers' compensation payments;
38.9 (2) employer‑paid amounts used by an employee toward the
38.10 cost of insurance coverage, employer‑paid fringe benefits,
38.11 flexible spending accounts, cafeteria plans, health care expense
38.12 accounts, day care expenses, or any payments in lieu of any
38.13 employer‑paid group insurance coverage, including the difference
38.14 between single and family rates that may be paid to a member
38.15 with single coverage and certain amounts determined by the
38.16 executive director to be ineligible;
38.17 (3) the amount equal to that which the employing
38.18 governmental subdivision would otherwise pay toward single or
38.19 family insurance coverage for a covered employee when, through a
38.20 contract or agreement with some but not all employees, the
38.21 employer:
38.22 (i) discontinues, or for new hires does not provide,
38.23 payment toward the cost of the employee's selected insurance
38.24 coverages under a group plan offered by the employer;
38.25 (ii) makes the employee solely responsible for all
38.26 contributions toward the cost of the employee's selected
38.27 insurance coverages under a group plan offered by the employer,
38.28 including any amount the employer makes toward other employees'
38.29 selected insurance coverages under a group plan offered by the
38.30 employer; and
38.31 (iii) provides increased salary rates for employees who do
38.32 not have any employer‑paid group insurance coverages;
38.33 (4) except as provided in section 353.86 or 353.87,
38.34 compensation of any kind paid to volunteer ambulance service
38.35 personnel or volunteer firefighters, as defined in subdivision
38.36 35 or 36; and
39.1 (5) the amount of compensation that exceeds the limitation
39.2 provided in section 356.611.
39.3 (c) Amounts provided to an employee by the employer through
39.4 a grievance proceeding or a legal settlement are salary only if
39.5 the settlement is reviewed by the executive director and the
39.6 amounts are determined by the executive director to be
39.7 consistent with paragraph (a) and prior determinations.
39.8 Sec. 8. Minnesota Statutes 2004, section 353.01, is
39.9 amended by adding a subdivision to read:
39.10 Subd. 17a. AVERAGE SALARY. (a) "Average salary," for
39.11 purposes of calculating a retirement annuity under section
39.12 353.29, subdivision 3, means an amount equivalent to the average
39.13 of the highest salary of the member, police officer, or
39.14 firefighter, whichever applies, upon which employee
39.15 contributions were paid for any five successive years of
39.16 allowable service, based on dates of salary periods as listed on
39.17 salary deduction reports. Average salary must be based upon all
39.18 allowable service if this service is less than five years.
39.19 (b) "Average salary" may not include any reduced salary
39.20 paid during a period in which the employee is entitled to
39.21 benefit payments from workers' compensation for temporary
39.22 disability, unless the average salary is higher, including this
39.23 period.
39.24 Sec. 9. Minnesota Statutes 2004, section 353.29,
39.25 subdivision 3, is amended to read:
39.26 Subd. 3. RETIREMENT ANNUITY FORMULA. (a) This paragraph,
39.27 in conjunction with section 353.30, subdivisions 1, 1a, 1b, and
39.28 1c, applies to any member who first became a public employee or
39.29 a member of a pension fund listed in section 356.30, subdivision
39.30 3, before July 1, 1989, unless paragraph (b), in conjunction
39.31 with section 353.30, subdivision 5, produces a higher annuity
39.32 amount, in which case paragraph (b) will apply. The average
39.33 salary as defined in section 353.01, subdivision 2 17a,
39.34 multiplied by the percent specified in section 356.315,
39.35 subdivision 3, for each year of allowable service for the first
39.36 ten years and thereafter by the percent specified in section
40.1 356.315, subdivision 4, per year of allowable service and
40.2 completed months less than a full year for the "basic member,"
40.3 and the percent specified in section 356.315, subdivision 1, for
40.4 each year of allowable service for the first ten years and
40.5 thereafter by the percent specified in section 356.315,
40.6 subdivision 2, per year of allowable service and completed
40.7 months less than a full year for the "coordinated member," shall
40.8 determine the amount of the "normal" retirement annuity.
40.9 (b) This paragraph applies to a member who has become at
40.10 least 55 years old and first became a public employee after June
40.11 30, 1989, and to any other member whose annuity amount, when
40.12 calculated under this paragraph and in conjunction with section
40.13 353.30, subdivision 5, is higher than it is when calculated
40.14 under paragraph (a), in conjunction with section 353.30,
40.15 subdivisions 1, 1a, 1b, and 1c. The average salary, as defined
40.16 in section 353.01, subdivision 2 17a, multiplied by the percent
40.17 specified in section 356.315, subdivision 4, for each year of
40.18 allowable service and completed months less than a full year for
40.19 a basic member and the percent specified in section 356.315,
40.20 subdivision 2, per year of allowable service and completed
40.21 months less than a full year for a coordinated member, shall
40.22 determine the amount of the normal retirement annuity.
40.23 Sec. 10. Minnesota Statutes 2004, section 353.33,
40.24 subdivision 3, is amended to read:
40.25 Subd. 3. COMPUTATION OF BENEFITS. This disability
40.26 benefit is an amount equal to the normal annuity payable to a
40.27 member who has reached normal retirement age with the same
40.28 number of years of allowable service and the same average
40.29 salary, as provided in section 353.01, subdivision 17a, and
40.30 section 353.29, subdivisions 2 and subdivision 3.
40.31 A basic member shall receive a supplementary monthly
40.32 benefit of $25 to age 65 or the five‑year anniversary of the
40.33 effective date of the disability benefit, whichever is later.
40.34 If the disability benefits under this subdivision exceed
40.35 the average salary as defined in section 353.29 353.01,
40.36 subdivision 2 17a, the disability benefits must be reduced to an
41.1 amount equal to said the average salary.
41.2 Sec. 11. Minnesota Statutes 2004, section 353.651,
41.3 subdivision 3, is amended to read:
41.4 Subd. 3. RETIREMENT ANNUITY FORMULA. The average salary
41.5 as defined in section 353.01, subdivision 2 17a, multiplied by
41.6 the percent specified in section 356.315, subdivision 6, per
41.7 year of allowable service determines the amount of the normal
41.8 retirement annuity. If the member has earned allowable service
41.9 for performing services other than those of a police officer or
41.10 firefighter, the annuity representing such that service is must
41.11 be computed under sections 353.29 and 353.30.
41.12 Sec. 12. Minnesota Statutes 2004, section 353.656,
41.13 subdivision 1, is amended to read:
41.14 Subdivision 1. IN LINE OF DUTY; COMPUTATION OF BENEFITS.
41.15 A member of the police and fire plan who becomes disabled and
41.16 physically unfit to perform duties as a police officer,
41.17 firefighter, or paramedic as defined under section 353.64,
41.18 subdivision 10, as a direct result of an injury, sickness, or
41.19 other disability incurred in or arising out of any act of duty,
41.20 which has or is expected to render the member physically or
41.21 mentally unable to perform the duties as a police officer,
41.22 firefighter, or paramedic as defined under section 353.64,
41.23 subdivision 10, for a period of at least one year, shall receive
41.24 disability benefits during the period of such disability. The
41.25 benefits must be in an amount equal to 60 percent of the
41.26 "average salary" as defined in section 353.651 353.01,
41.27 subdivision 2 17a, plus an additional percent specified in
41.28 section 356.315, subdivision 6, of that average salary for each
41.29 year of service in excess of 20 years. If the disability under
41.30 this subdivision occurs before the member has at least five
41.31 years of allowable service credit in the police and fire plan,
41.32 the disability benefit must be computed on the "average salary"
41.33 from which deductions were made for contribution to the police
41.34 and fire fund.
41.35 Sec. 13. Minnesota Statutes 2004, section 354.05, is
41.36 amended by adding a subdivision to read:
42.1 Subd. 13a. AVERAGE SALARY. (a) "Average salary," for the
42.2 purpose of determining the member's retirement annuity, means
42.3 the average salary upon which contributions were made for the
42.4 highest five successive years of formula service credit.
42.5 (b) "Average salary" may not include any more than the
42.6 equivalent of 60 monthly salary payments.
42.7 (c) "Average salary" must be based upon all years of
42.8 formula service credit if this service credit is less than five
42.9 years.
42.10 Sec. 14. Minnesota Statutes 2004, section 354.44,
42.11 subdivision 6, is amended to read:
42.12 Subd. 6. COMPUTATION OF FORMULA PROGRAM RETIREMENT
42.13 ANNUITY. (a) The formula retirement annuity must be computed in
42.14 accordance with the applicable provisions of the formulas stated
42.15 in paragraph (b) or (d) on the basis of each member's average
42.16 salary under section 354.05, subdivision 13a, for the period of
42.17 the member's formula service credit.
42.18 For all years of formula service credit, "average salary,"
42.19 for the purpose of determining the member's retirement annuity,
42.20 means the average salary upon which contributions were made and
42.21 upon which payments were made to increase the salary limitation
42.22 provided in Minnesota Statutes 1971, section 354.511, for the
42.23 highest five successive years of formula service credit
42.24 provided, however, that such "average salary" shall not include
42.25 any more than the equivalent of 60 monthly salary payments.
42.26 Average salary must be based upon all years of formula service
42.27 credit if this service credit is less than five years.
42.28 (b) This paragraph, in conjunction with paragraph (c),
42.29 applies to a person who first became a member of the association
42.30 or a member of a pension fund listed in section 356.30,
42.31 subdivision 3, before July 1, 1989, unless paragraph (d), in
42.32 conjunction with paragraph (e), produces a higher annuity
42.33 amount, in which case paragraph (d) applies. The average salary
42.34 as defined in paragraph (a) section 354.05, subdivision 13a,
42.35 multiplied by the following percentages per year of formula
42.36 service credit shall determine the amount of the annuity to
43.1 which the member qualifying therefor is entitled:
43.2 Coordinated Member Basic Member
43.3 Each year of service the percent the percent
43.4 during first ten specified in specified in
43.5 section 356.315, section 356.315,
43.6 subdivision 1, subdivision 3,
43.7 per year per year
43.8 Each year of service the percent the percent
43.9 thereafter specified in specified in
43.10 section 356.315, section 356.315,
43.11 subdivision 2, subdivision 4,
43.12 per year per year
43.13 (c)(i) This paragraph applies only to a person who first
43.14 became a member of the association or a member of a pension fund
43.15 listed in section 356.30, subdivision 3, before July 1, 1989,
43.16 and whose annuity is higher when calculated under paragraph (b),
43.17 in conjunction with this paragraph than when calculated under
43.18 paragraph (d), in conjunction with paragraph (e).
43.19 (ii) Where any member retires prior to normal retirement
43.20 age under a formula annuity, the member shall be paid a
43.21 retirement annuity in an amount equal to the normal annuity
43.22 provided in paragraph (b) reduced by one‑quarter of one percent
43.23 for each month that the member is under normal retirement age at
43.24 the time of retirement except that for any member who has 30 or
43.25 more years of allowable service credit, the reduction shall be
43.26 applied only for each month that the member is under age 62.
43.27 (iii) Any member whose attained age plus credited allowable
43.28 service totals 90 years is entitled, upon application, to a
43.29 retirement annuity in an amount equal to the normal annuity
43.30 provided in paragraph (b), without any reduction by reason of
43.31 early retirement.
43.32 (d) This paragraph applies to a member who has become at
43.33 least 55 years old and first became a member of the association
43.34 after June 30, 1989, and to any other member who has become at
43.35 least 55 years old and whose annuity amount when calculated
43.36 under this paragraph and in conjunction with paragraph (e), is
44.1 higher than it is when calculated under paragraph (b), in
44.2 conjunction with paragraph (c). The average salary, as defined
44.3 in paragraph (a) section 354.05, subdivision 13a, multiplied by
44.4 the percent specified by section 356.315, subdivision 4, for
44.5 each year of service for a basic member and by the percent
44.6 specified in section 356.315, subdivision 2, for each year of
44.7 service for a coordinated member shall determine the amount of
44.8 the retirement annuity to which the member is entitled.
44.9 (e) This paragraph applies to a person who has become at
44.10 least 55 years old and first becomes a member of the association
44.11 after June 30, 1989, and to any other member who has become at
44.12 least 55 years old and whose annuity is higher when calculated
44.13 under paragraph (d) in conjunction with this paragraph than when
44.14 calculated under paragraph (b), in conjunction with paragraph
44.15 (c). An employee who retires under the formula annuity before
44.16 the normal retirement age shall be paid the normal annuity
44.17 provided in paragraph (d) reduced so that the reduced annuity is
44.18 the actuarial equivalent of the annuity that would be payable to
44.19 the employee if the employee deferred receipt of the annuity and
44.20 the annuity amount were augmented at an annual rate of three
44.21 percent compounded annually from the day the annuity begins to
44.22 accrue until the normal retirement age.
44.23 (f) No retirement annuity is payable to a former employee
44.24 with a salary that exceeds 95 percent of the governor's salary
44.25 unless and until the salary figures used in computing the
44.26 highest five successive years average salary under paragraph (a)
44.27 have been audited by the Teachers Retirement Association and
44.28 determined by the executive director to comply with the
44.29 requirements and limitations of section 354.05, subdivisions 35
44.30 and 35a.
44.31 Sec. 15. Minnesota Statutes 2004, section 354A.011, is
44.32 amended by adding a subdivision to read:
44.33 Subd. 7a. AVERAGE SALARY. "Average salary," for purposes
44.34 of computing a normal coordinated program retirement annuity
44.35 under section 354A.31, subdivision 4 or 4a, means an amount
44.36 equal to the average salary upon which contributions were made
45.1 for the highest five successive years of service credit but may
45.2 not in any event include any more than the equivalent of 60
45.3 monthly salary payments. Average salary must be based upon all
45.4 years of service credit if this service credit is less than five
45.5 years.
45.6 Sec. 16. Minnesota Statutes 2004, section 354A.31,
45.7 subdivision 4, is amended to read:
45.8 Subd. 4. COMPUTATION OF THE NORMAL COORDINATED RETIREMENT
45.9 ANNUITY; MINNEAPOLIS AND ST. PAUL FUNDS. (a) This subdivision
45.10 applies to the coordinated programs of the Minneapolis Teachers
45.11 Retirement Fund Association and the St. Paul Teachers Retirement
45.12 Fund Association.
45.13 (b) The normal coordinated retirement annuity shall be is
45.14 an amount equal to a retiring coordinated member's average
45.15 salary under section 354A.011, subdivision 7a, multiplied by the
45.16 retirement annuity formula percentage. Average salary for
45.17 purposes of this section shall mean an amount equal to the
45.18 average salary upon which contributions were made for the
45.19 highest five successive years of service credit, but which shall
45.20 not in any event include any more than the equivalent of 60
45.21 monthly salary payments. Average salary must be based upon all
45.22 years of service credit if this service credit is less than five
45.23 years.
45.24 (c) This paragraph, in conjunction with subdivision 6,
45.25 applies to a person who first became a member or a member in a
45.26 pension fund listed in section 356.30, subdivision 3, before
45.27 July 1, 1989, unless paragraph (d), in conjunction with
45.28 subdivision 7, produces a higher annuity amount, in which case
45.29 paragraph (d) will apply. The retirement annuity formula
45.30 percentage for purposes of this paragraph is the percent
45.31 specified in section 356.315, subdivision 1, per year for each
45.32 year of coordinated service for the first ten years and the
45.33 percent specified in section 356.315, subdivision 2, for each
45.34 year of coordinated service thereafter.
45.35 (d) This paragraph applies to a person who has become at
45.36 least 55 years old and who first becomes a member after June 30,
46.1 1989, and to any other member who has become at least 55 years
46.2 old and whose annuity amount, when calculated under this
46.3 paragraph and in conjunction with subdivision 7 is higher than
46.4 it is when calculated under paragraph (c), in conjunction with
46.5 the provisions of subdivision 6. The retirement annuity formula
46.6 percentage for purposes of this paragraph is the percent
46.7 specified in section 356.315, subdivision 2, for each year of
46.8 coordinated service.
46.9 Sec. 17. Minnesota Statutes 2004, section 354A.31,
46.10 subdivision 4a, is amended to read:
46.11 Subd. 4a. COMPUTATION OF THE NORMAL COORDINATED
46.12 RETIREMENT ANNUITY; DULUTH FUND. (a) This subdivision applies
46.13 to the new law coordinated program of the Duluth Teachers
46.14 Retirement Fund Association.
46.15 (b) The normal coordinated retirement annuity is an amount
46.16 equal to a retiring coordinated member's average salary under
46.17 section 354A.011, subdivision 7a, multiplied by the retirement
46.18 annuity formula percentage. Average salary for purposes of this
46.19 section means an amount equal to the average salary upon which
46.20 contributions were made for the highest five successive years of
46.21 service credit, but may not in any event include any more than
46.22 the equivalent of 60 monthly salary payments. Average salary
46.23 must be based upon all years of service credit if this service
46.24 credit is less than five years.
46.25 (c) This paragraph, in conjunction with subdivision 6,
46.26 applies to a person who first became a member or a member in a
46.27 pension fund listed in section 356.30, subdivision 3, before
46.28 July 1, 1989, unless paragraph (d), in conjunction with
46.29 subdivision 7, produces a higher annuity amount, in which case
46.30 paragraph (d) applies. The retirement annuity formula
46.31 percentage for purposes of this paragraph is the percent
46.32 specified in section 356.315, subdivision 1, per year for each
46.33 year of coordinated service for the first ten years and the
46.34 percent specified in section 356.315, subdivision 2, for each
46.35 subsequent year of coordinated service.
46.36 (d) This paragraph applies to a person who is at least 55
47.1 years old and who first becomes a member after June 30, 1989,
47.2 and to any other member who is at least 55 years old and whose
47.3 annuity amount, when calculated under this paragraph and in
47.4 conjunction with subdivision 7, is higher than it is when
47.5 calculated under paragraph (c) in conjunction with subdivision
47.6 6. The retirement annuity formula percentage for purposes of
47.7 this paragraph is the percent specified in section 356.315,
47.8 subdivision 2, for each year of coordinated service.
47.9 Sec. 18. Minnesota Statutes 2004, section 422A.01, is
47.10 amended by adding a subdivision to read:
47.11 Subd. 4a. AVERAGE SALARY. (a) "Average salary" means the
47.12 arithmetic average annual salary, wages or compensation of the
47.13 member from the city for any five calendar years out of the last
47.14 ten calendar years of service, except as provided for in section
47.15 422A.16, which may include the year in which the employee
47.16 retires, as selected by the employee.
47.17 (b) A member with more than five calendar years of service
47.18 but less than ten calendar years may select any five calendar
47.19 years of service to determine the average salary. A member with
47.20 less than five years of service with the city shall use all
47.21 earnings to determine the average salary.
47.22 Sec. 19. Minnesota Statutes 2004, section 422A.15,
47.23 subdivision 1, is amended to read:
47.24 Subdivision 1. FORMULA PENSION AND ANNUITY. Except as
47.25 otherwise provided in subdivision 3, each contributing member
47.26 who, at the time of retirement, fulfills the conditions
47.27 necessary to enable the member to retire, shall is entitled to
47.28 receive what shall be known as a "formula pension and annuity"
47.29 equal to two percent for each year of allowable service for the
47.30 first ten years and thereafter 2.5 percent per year of allowable
47.31 service of the arithmetic average annual salary, wages or
47.32 compensation of the member from the city for any five calendar
47.33 years out of the last ten calendar years of service except as
47.34 provided for in section 422A.16, which may include the year in
47.35 which the employee retires, as selected by the employee,
47.36 multiplied by the years of service credited by the retirement
48.1 fund. The formula pension and annuity shall must be computed on
48.2 the single life plan but subject to the option selections
48.3 provided for in section 422A.17.
48.4 In order to be entitled to the formula pension and annuity
48.5 herein provided for, the retiring employee at the time of
48.6 cessation of employment and of actual retirement shall must have
48.7 attained the age of 60 years or have been employed by the city
48.8 not less than 30 years, or meet the qualifications provided for
48.9 in section 422A.16, and in addition thereto have contributed to
48.10 the retirement fund at the percentage rate prescribed by the
48.11 retirement law applicable when the salary, wages or compensation
48.12 was paid on all salaries, wages, or compensation received from
48.13 the city or from an applicable employing unit. The years of
48.14 service to be applied in the formula pension and annuity shall
48.15 must be found and determined by the retirement board, except
48.16 that no credit shall may be allowed for any year in which a back
48.17 charge is owing at time of retirement and the earnings from any
48.18 year in which a back charge is owing shall may not be used in
48.19 determining the average annual salary.
48.20 Sec. 20. Minnesota Statutes 2004, section 422A.16,
48.21 subdivision 9, is amended to read:
48.22 Subd. 9. INCOMPETENCY OR DEATH OF MEMBER. Any member of
48.23 the contributing class who becomes permanently separated from
48.24 the service of the city under subdivision 8, may, by an
48.25 instrument in writing, filed with the municipal employees
48.26 retirement board within 30 days after such the separation
48.27 becomes permanent, elect to allow the member contributions
48.28 to such the fund to the date of separation to remain on deposit
48.29 in such the fund, and in such the event the member shall be
48.30 is entitled to receive a retirement allowance at age 65,
48.31 provided the member, or someone acting in the member's behalf if
48.32 the member be incompetent, shall must make a written application
48.33 for such the retirement allowance in the same manner provided
48.34 for in section 422A.17 and in accordance with the provisions of
48.35 section 422A.15, subdivision 1, except for determining
48.36 average annual salary. A member with more than five calendar
49.1 years of service but less than ten calendar years may select any
49.2 five calendar years of service to determine the average annual
49.3 salary. A member with less than five years of service with the
49.4 city shall use all earnings to determine the average annual
49.5 salary.
49.6 If the contributing member dies before reaching the age of
49.7 65 years, or having attained the age of 65 years without having
49.8 made the election provided for herein, the net accumulated
49.9 amount of deductions from the member's salary, pay or
49.10 compensation, plus interest, to the member's credit on date of
49.11 death shall be paid is payable to such the person or persons as
49.12 have been nominated by written designation filed with the
49.13 retirement board, in such the form as that the retirement board
49.14 shall require requires.
49.15 If the employee fails to make a designation, or if the
49.16 person or persons designated by such the employee predeceases
49.17 such the employee, the net accumulated credit to such the
49.18 employee's account on date of death shall be paid is payable to
49.19 such the employee's estate.
49.20 The provisions of subdivisions 4, 5, and 6 shall also apply
49.21 to any member qualifying for benefits under this subdivision,
49.22 except for purposes of this subdivision the age referred to in
49.23 subdivision 4 shall be is 65 years.
49.24 Sec. 21. Minnesota Statutes 2004, section 490.121,
49.25 subdivision 21, is amended to read:
49.26 Subd. 21. FINAL AVERAGE COMPENSATION. "Final average
49.27 compensation" means the total amount of salary payable paid to a
49.28 judge in the highest five years of the last ten years prior to
49.29 before the event of maturity of benefits, divided by five;
49.30 provided, however, that. If the number of years of service is
49.31 less than ten, the highest five shall years of salary must be
49.32 counted, and. If the number of years of service is less than
49.33 five, the aggregate salary in such during the period shall must
49.34 be divided by the number of months in such the period and
49.35 multiplied by 12.
49.36 Sec. 22. REPEALER.
50.1 Minnesota Statutes 2004, sections 352C.031, subdivision 3;
50.2 353.29, subdivision 2; and 353.651, subdivision 2, are repealed.
50.3 Sec. 23. EFFECTIVE DATE.
50.4 Sections 1 to 22 are effective July 1, 2005.
50.5 ARTICLE 3
50.6 ALLOWABLE SERVICE CREDIT
50.7 Section 1. 356.095 SERVICE CREDIT PURCHASE PROCEDURES
50.8 FOR STRIKE PERIODS.
50.9 Subdivision 1. COVERED PLANS. This section applies to
50.10 all defined benefit plans specified in section 356.30,
50.11 subdivision 3.
50.12 Subd. 2 PURCHASE PROCEDURE FOR STRIKE PERIODS. (a) An
50.13 employee covered by a plan specified in subdivision 1 may
50.14 purchase allowable service credit in the applicable plan for any
50.15 period of time during which the employee was on a public
50.16 employee strike without pay, not to exceed a period of one year,
50.17 if the employee makes a payment in lieu of salary deductions as
50.18 specified in paragraphs (b) and (c), whichever is applicable.
50.19 The employing unit, at its option, may pay the employer portion
50.20 of the amount specified in paragraph (b) on behalf of its
50.21 employees.
50.22 (b) If payment is received by the applicable pension plan
50.23 executive director within one year from the end of the strike,
50.24 the payment amount is equal to the applicable employee and
50.25 employer contribution rates specified in law for the applicable
50.26 plan during the strike period, applied to the employee's rate of
50.27 salary in effect at the conclusion of the strike for the period
50.28 of the strike without pay, plus compound interest at a monthly
50.29 rate of 0.71 percent from the last day of the strike period
50.30 until the date payment is received.
50.31 (c) If payment is received by the applicable pension fund
50.32 director after one year and before five years from the end of
50.33 the strike, the payment amount is the amount determined under
50.34 section 356.551.
50.35 (d) Payments may not be made more than five years after the
50.36 end of the strike.
51.1 Sec. 2. Minnesota Statutes 2004, section 490.121,
51.2 subdivision 4, is amended to read:
51.3 Subd. 4. ALLOWABLE SERVICE. (a) "Allowable service"
51.4 means any calendar month, subject to the service credit limit in
51.5 subdivision 22, served as a judge at any time, or served as a
51.6 referee in probate for all referees in probate who were in
51.7 office prior to January 1, 1974.
51.8 (b) "Allowable service" also means a period of authorized
51.9 leave of absence for which the judge has made a payment in lieu
51.10 of contributions, not in an amount in excess of the service
51.11 credit limit under subdivision 22. To obtain the service
51.12 credit, the judge shall pay an amount equal to the member and
51.13 employer contribution rates under section 490.123, subdivisions
51.14 1a and 1b, applied to the judge's average monthly salary rate
51.15 during the authorized leave of absence and multiplied by the
51.16 number of months of the authorized leave of absence, plus annual
51.17 compound interest at the rate of 8.5 percent from the date of
51.18 the termination of the leave to the date on which payment is
51.19 made. The payment must be made within one year of the date on
51.20 which the authorized leave of absence terminated. Service
51.21 credit for an authorized leave of absence is in addition to a
51.22 uniformed service leave under section 490.1211.
51.23 Sec. 3. METRO TRANSIT STRIKE PROVISION.
51.24 Notwithstanding the payment deadline specified in section
51.25 1, subdivision 2, paragraph (b), a Metro Transit employee
51.26 covered by the general state employees retirement plan of the
51.27 Minnesota State Retirement System who was on strike on or after
51.28 January 1, 2004, and before the effective date of this section,
51.29 is authorized to make a payment under that paragraph on or
51.30 before one year after the effective date of this section.
51.31 Sec. 4. EFFECTIVE DATE.
51.32 (a) Sections 1 and 3 are effective on the day following
51.33 final enactment.
51.34 (b) Section 2 is effective retroactively to January 1,
51.35 2005, and applies to any person who was in active service as a
51.36 judge on or after that date and applies to an authorized leave
52.1 of absence that occurred before or after that date.
52.2 ARTICLE 4
52.3 ACTUARIAL AND FINANCIAL
52.4 REPORTING CHANGES
52.5 Section 1. Minnesota Statutes 2004, section 352.01,
52.6 subdivision 12, is amended to read:
52.7 Subd. 12. ACTUARIAL EQUIVALENT. "Actuarial equivalent"
52.8 means the condition of one annuity or benefit having an equal
52.9 actuarial present value as another annuity or benefit,
52.10 determined as of a given date at a specified age with each
52.11 actuarial present value based on the appropriate mortality table
52.12 adopted by the board of directors based on the experience of the
52.13 fund as recommended by the actuary retained by the Legislative
52.14 Commission on Pensions and Retirement under section 356.214, and
52.15 approved under section 356.215, subdivision 18, and using the
52.16 applicable preretirement or postretirement interest rate
52.17 assumption specified in section 356.215, subdivision 8.
52.18 Sec. 2. Minnesota Statutes 2004, section 353.01,
52.19 subdivision 14, is amended to read:
52.20 Subd. 14. ACTUARIAL EQUIVALENT. "Actuarial equivalent"
52.21 means the condition of one annuity or benefit having an equal
52.22 actuarial present value as another annuity or benefit,
52.23 determined as of a given date with each actuarial present value
52.24 based on the appropriate mortality table adopted by the board of
52.25 trustees based on the experience of the fund as recommended by
52.26 the actuary retained by the Legislative Commission on Pensions
52.27 and Retirement under section 356.214, and approved under section
52.28 356.215, subdivision 18, and using the applicable preretirement
52.29 or postretirement interest rate assumption specified in section
52.30 356.215, subdivision 8.
52.31 Sec. 3. Minnesota Statutes 2004, section 354.05,
52.32 subdivision 7, is amended to read:
52.33 Subd. 7. ACTUARIAL EQUIVALENT. "Actuarial equivalent"
52.34 means the condition of one annuity or benefit having an equal
52.35 actuarial present value as another annuity or benefit,
52.36 determined as of a given date with each actuarial present value
53.1 based on the appropriate mortality table adopted by the board of
53.2 trustees based on the experience of the association as
53.3 recommended by the actuary retained by the Legislative
53.4 Commission on Pensions and Retirement under section 356.214, and
53.5 approved under section 356.215, subdivision 18, and using the
53.6 applicable preretirement or postretirement interest rate
53.7 assumption specified in section 356.215, subdivision 8.
53.8 Sec. 4. Minnesota Statutes 2004, section 354A.011,
53.9 subdivision 3a, is amended to read:
53.10 Subd. 3a. ACTUARIAL EQUIVALENT. "Actuarial equivalent"
53.11 means the condition of one annuity or benefit having an equal
53.12 actuarial present value as another annuity or benefit,
53.13 determined as of a given date with each actuarial present value
53.14 based on the appropriate mortality table adopted by the
53.15 appropriate board of trustees based on the experience of that
53.16 retirement fund association as recommended by the actuary
53.17 retained by the Legislative Commission on Pensions and
53.18 Retirement under section 356.214, and approved under section
53.19 356.215, subdivision 18, and using the applicable preretirement
53.20 or postretirement interest rate assumption specified in section
53.21 356.215, subdivision 8.
53.22 Sec. 5. Minnesota Statutes 2004, section 356.20,
53.23 subdivision 4, is amended to read:
53.24 Subd. 4. CONTENTS OF FINANCIAL REPORT. (a) The financial
53.25 report required by this section must contain financial
53.26 statements and disclosures that indicate the financial
53.27 operations and position of the retirement plan and fund. The
53.28 report must conform with generally accepted governmental
53.29 accounting principles, applied on a consistent basis. The
53.30 report must be audited. The report must include, as part of its
53.31 exhibits or its footnotes, an actuarial disclosure item based on
53.32 the actuarial valuation calculations prepared by the
53.33 commission‑retained actuary retained under section 356.214 or by
53.34 the actuary retained by the retirement fund or plan, if
53.35 applicable whichever applies, according to applicable actuarial
53.36 requirements enumerated in section 356.215, and specified in the
54.1 most recent standards for actuarial work adopted by the
54.2 Legislative Commission on Pensions and Retirement. The accrued
54.3 assets, the accrued liabilities, including accrued reserves, and
54.4 the unfunded actuarial accrued liability of the fund or plan
54.5 must be disclosed. The disclosure item must contain a
54.6 declaration by the actuary retained by the Legislative
54.7 Commission on Pensions and Retirement under section 356.214 or
54.8 the actuary retained by the fund or plan, whichever applies,
54.9 specifying that the required reserves for any retirement,
54.10 disability, or survivor benefits provided under a benefit
54.11 formula are computed in accordance with the entry age actuarial
54.12 cost method and in accordance with the most recent applicable
54.13 standards for actuarial work adopted by the Legislative
54.14 Commission on Pensions and Retirement.
54.15 (b) Assets of the fund or plan contained in the disclosure
54.16 item must include the following statement of the actuarial value
54.17 of current assets as defined in section 356.215, subdivision 1:
54.18 Value Value
54.19 at cost at market
54.20 Cash, cash equivalents, and
54.21 short‑term securities ......... .........
54.22 Accounts receivable ......... .........
54.23 Accrued investment income ......... .........
54.24 Fixed income investments ......... .........
54.25 Equity investments other
54.26 than real estate ......... .........
54.27 Real estate investments ......... .........
54.28 Equipment ......... .........
54.29 Equity Participation in the Minnesota
54.30 postretirement investment
54.31 fund or the retirement
54.32 benefit fund ......... .........
54.33 Other ......... .........
54.34
54.35 Total assets
54.36 Value at cost .........
55.1 Value at market .........
55.2 Actuarial value of current assets .........
55.3 (c) The unfunded actuarial accrued liability of the fund or
55.4 plan contained in the disclosure item must include the following
55.5 measures of unfunded actuarial accrued liability, using
55.6 the actuarial value of current assets:
55.7 (1) the unfunded actuarial accrued liability, determined by
55.8 subtracting the current assets and the present value of future
55.9 normal costs from the total current and expected future benefit
55.10 obligations; and
55.11 (2) the unfunded pension benefit obligation, determined by
55.12 subtracting the current assets from the actuarial present value
55.13 of credited projected benefits.
55.14 If the current assets of the fund or plan exceed the
55.15 actuarial accrued liabilities, the excess must be disclosed and
55.16 indicated as a surplus.
55.17 (d) The pension benefit obligations schedule included in
55.18 the disclosure must contain the following information on the
55.19 benefit obligations:
55.20 (1) the pension benefit obligation, determined as the
55.21 actuarial present value of credited projected benefits on
55.22 account of service rendered to date, separately identified as
55.23 follows:
55.24 (i) for annuitants;
55.25 retirement annuities;
55.26 disability benefits;
55.27 surviving spouse and child benefits;
55.28 (ii) for former members without vested rights;
55.29 (iii) for deferred annuitants' benefits, including
55.30 any augmentation;
55.31 (iv) for active employees;
55.32 accumulated employee contributions,
55.33 including allocated investment income;
55.34 employer‑financed benefits vested;
55.35 employer‑financed benefits nonvested;
55.36 total pension benefit obligation; and
56.1 (2) if there are additional benefits not appropriately
56.2 covered by the foregoing items of benefit obligations, a
56.3 separate identification of the obligation.
56.4 (e) The report must contain an itemized exhibit describing
56.5 the administrative expenses of the plan, including, but not
56.6 limited to, the following items, classified on a consistent
56.7 basis from year to year, and with any further meaningful detail:
56.8 (1) personnel expenses;
56.9 (2) communication‑related expenses;
56.10 (3) office building and maintenance expenses;
56.11 (4) professional services fees; and
56.12 (5) other expenses.
56.13 (f) The report must contain an itemized exhibit describing
56.14 the investment expenses of the plan, including, but not limited
56.15 to, the following items, classified on a consistent basis from
56.16 year to year, and with any further meaningful detail:
56.17 (1) internal investment‑related expenses; and
56.18 (2) external investment‑related expenses.
56.19 (g) Any additional statements or exhibits or more detailed
56.20 or subdivided itemization of a disclosure item that will enable
56.21 the management of the fund to portray a true interpretation of
56.22 the fund's financial condition must be included in the
56.23 additional statements or exhibits.
56.24 Sec. 6. Minnesota Statutes 2004, section 422A.01,
56.25 subdivision 6, is amended to read:
56.26 Subd. 6. PRESENT WORTH OR PRESENT VALUE. "Present worth"
56.27 or "present value" means that the present amount of money if
56.28 increased at the applicable postretirement or preretirement
56.29 interest rate assumption specified in section 356.215,
56.30 subdivision 8, and based on the mortality table adopted by the
56.31 board of trustees based on the experience of the fund as
56.32 recommended by the actuary retained by the Legislative
56.33 Commission on Pensions and Retirement under section 356.214, and
56.34 approved under section 356.215, subdivision 18, will at
56.35 retirement equal the actuarial accrued liability of the annuity
56.36 already earned.
57.1 Sec. 7. Minnesota Statutes 2004, section 490.121,
57.2 subdivision 20, is amended to read:
57.3 Subd. 20. ACTUARIAL EQUIVALENT. "Actuarial equivalent"
57.4 means the condition of one annuity or benefit having an equal
57.5 actuarial present value as another annuity or benefit,
57.6 determined as of a given date with each actuarial present value
57.7 based on the appropriate mortality table adopted by the board of
57.8 trustees directors of the Minnesota State Retirement System
57.9 based on the experience of the fund as recommended by
57.10 the commission‑retained actuary retained under section 356.214,
57.11 and approved under section 356.215, subdivision 18, and using
57.12 the applicable preretirement or postretirement interest rate
57.13 assumption specified in section 356.215, subdivision 8.
57.14 Sec. 8. EFFECTIVE DATE.
57.15 (a) Sections 1 to 4, 6, and 7 are effective on July 1, 2005.
57.16 (b) Section 5 is effective the day following final
57.17 enactment and applies to annual financial reporting occurring on
57.18 or after June 30, 2005.
57.19 ARTICLE 5
57.20 MEMBERSHIP INCLUSIONS
57.21 AND EXCLUSIONS
57.22 Section 1. Minnesota Statutes 2004, section 69.011, is
57.23 amended by adding a subdivision to read:
57.24 Subd. 2c. INELIGIBILITY OF CERTAIN POLICE OFFICERS. A
57.25 police officer employed by the University of Minnesota who is
57.26 required by the Board of Regents to the University of Minnesota
57.27 faculty retirement plan is not eligible to be included in any
57.28 police state aid certification under this section.
57.29 Sec. 2. Minnesota Statutes 2004, section 352.01,
57.30 subdivision 2a, is amended to read:
57.31 Subd. 2a. INCLUDED EMPLOYEES. (a) "State employee"
57.32 includes:
57.33 (1) employees of the Minnesota Historical Society;
57.34 (2) employees of the State Horticultural Society;
57.35 (3) employees of the Disabled American Veterans, Department
57.36 of Minnesota, Veterans of Foreign Wars, Department of Minnesota,
58.1 if employed before July 1, 1963;
58.2 (4) employees of the Minnesota Crop Improvement
58.3 Association;
58.4 (5) employees of the adjutant general who are paid from
58.5 federal funds and who are not covered by any federal civilian
58.6 employees retirement system;
58.7 (6) employees of the Minnesota State Colleges and
58.8 Universities employed under the university or college activities
58.9 program;
58.10 (7) currently contributing employees covered by the system
58.11 who are temporarily employed by the legislature during a
58.12 legislative session or any currently contributing employee
58.13 employed for any special service as defined in subdivision 2b,
58.14 clause (8);
58.15 (8) employees of the Armory Building Commission;
58.16 (9) employees of the legislature appointed without a limit
58.17 on the duration of their employment and persons employed or
58.18 designated by the legislature or by a legislative committee or
58.19 commission or other competent authority to conduct a special
58.20 inquiry, investigation, examination, or installation;
58.21 (10) trainees who are employed on a full‑time established
58.22 training program performing the duties of the classified
58.23 position for which they will be eligible to receive immediate
58.24 appointment at the completion of the training period;
58.25 (11) employees of the Minnesota Safety Council;
58.26 (12) any employees on authorized leave of absence from the
58.27 Transit Operating Division of the former Metropolitan Transit
58.28 Commission who are employed by the labor organization which is
58.29 the exclusive bargaining agent representing employees of the
58.30 Transit Operating Division;
58.31 (13) employees of the Metropolitan Council, Metropolitan
58.32 Parks and Open Space Commission, Metropolitan Sports Facilities
58.33 Commission, Metropolitan Mosquito Control Commission, or
58.34 Metropolitan Radio Board unless excluded or covered by another
58.35 public pension fund or plan under section 473.415, subdivision
58.36 3;
59.1 (14) judges of the Tax Court;
59.2 (15) personnel employed on June 30, 1992, by the University
59.3 of Minnesota in the management, operation, or maintenance of its
59.4 heating plant facilities, whose employment transfers to an
59.5 employer assuming operation of the heating plant facilities, so
59.6 long as the person is employed at the University of Minnesota
59.7 heating plant by that employer or by its successor organization;
59.8 and
59.9 (16) seasonal help in the classified service employed by
59.10 the Department of Revenue; and
59.11 (17) persons employed by the Department of Commerce in the
59.12 Insurance Fraud Prevention under section 45.0135 who have
59.13 attained the mandatory retirement age specified in section
59.14 43A.34, subdivision 4.
59.15 (b) Employees specified in paragraph (a), clause (15), are
59.16 included employees under paragraph (a) if employer and employee
59.17 contributions are made in a timely manner in the amounts
59.18 required by section 352.04. Employee contributions must be
59.19 deducted from salary. Employer contributions are the sole
59.20 obligation of the employer assuming operation of the University
59.21 of Minnesota heating plant facilities or any successor
59.22 organizations to that employer.
59.23 Sec. 3. Minnesota Statutes 2004, section 352.91, is
59.24 amended by adding a subdivision to read:
59.25 Subd. 4a. PROCESS FOR EVALUATING AND RECOMMENDING
59.26 POTENTIAL EMPLOYMENT POSITIONS FOR MEMBERSHIP INCLUSION. (a)
59.27 The Department of Corrections and the Department of Human
59.28 Services must establish a procedure for evaluating periodic
59.29 requests by department employees for qualification for
59.30 recommendation by the commissioner for inclusion of the
59.31 employment position in the correctional facility or human
59.32 services facility in the correctional retirement plan and for
59.33 periodically determining employment positions that no longer
59.34 qualify for continued correctional retirement plan coverage.
59.35 (b) The procedure must provide for an evaluation of the
59.36 extent of the employee's working time spent in direct contact
60.1 with patients or inmates, the extent of the physical hazard that
60.2 the employee is routinely subjected to in the course of
60.3 employment, and the extent of intervention routinely expected of
60.4 the employee in the event of a facility incident. The
60.5 percentage of routine direct contact with inmates or patients
60.6 may not be less than 75 percent.
60.7 (c) The applicable commissioner shall notify the employee
60.8 of the determination of the appropriateness of recommending the
60.9 employment position for inclusion in the correctional retirement
60.10 plan, if the evaluation procedure results in a finding that the
60.11 employee:
60.12 (1) routinely spends 75 percent of the employee's time in
60.13 direct contact with inmates or patients; and
60.14 (2) is regularly engaged in the rehabilitation, treatment,
60.15 custody, or supervision of inmates or patients.
60.16 (d) After providing the affected employee an opportunity to
60.17 dispute or clarify any evaluation determinations, if the
60.18 commissioner determines that the employment position is
60.19 appropriate for inclusion in the correctional retirement plan,
60.20 the commissioner shall forward that recommendation and
60.21 supporting documentation to the chair of the Legislative
60.22 Commission on Pensions and Retirement, the chair of the State
60.23 and Local Governmental Operations Committee of the senate, the
60.24 chair of the Governmental Operations and Veterans Affairs Policy
60.25 Committee of the house of representatives, and the executive
60.26 director of the Legislative Commission on Pensions and
60.27 Retirement in the form of the appropriate proposed legislation.
60.28 The recommendation must be forwarded to the legislature before
60.29 January 15 for the recommendation to be considered in that
60.30 year's legislative session.
60.31 Sec. 4. Minnesota Statutes 2004, section 352B.01,
60.32 subdivision 2, is amended to read:
60.33 Subd. 2. MEMBER. "Member" means:
60.34 (1) a State Patrol member currently employed after June 30,
60.35 1943, under section 299D.03 by the state, who is a peace officer
60.36 under section 626.84, and whose salary or compensation is paid
61.1 out of state funds;
61.2 (2) a conservation officer employed under section 97A.201,
61.3 currently employed by the state, whose salary or compensation is
61.4 paid out of state funds;
61.5 (3) a crime bureau officer who was employed by the crime
61.6 bureau and was a member of the Highway Patrolmen's retirement
61.7 fund on July 1, 1978, whether or not that person has the power
61.8 of arrest by warrant after that date, or who is employed as
61.9 police personnel, with powers of arrest by warrant under section
61.10 299C.04, and who is currently employed by the state, and whose
61.11 salary or compensation is paid out of state funds;
61.12 (4) a person who is employed by the state in the Department
61.13 of Public Safety in a data processing management position with
61.14 salary or compensation paid from state funds, who was a crime
61.15 bureau officer covered by the State Patrol retirement plan on
61.16 August 15, 1987, and who was initially hired in the data
61.17 processing management position within the department during
61.18 September 1987, or January 1988, with membership continuing for
61.19 the duration of the person's employment in that position,
61.20 whether or not the person has the power of arrest by warrant
61.21 after August 15, 1987;
61.22 (5) a public safety employee defined as a peace officer in
61.23 section 626.84, subdivision 1, paragraph (c), and employed with
61.24 the Division of Alcohol and Gambling Enforcement under section
61.25 299L.01; and
61.26 (6) a Fugitive Apprehension Unit officer after October 31,
61.27 2000, employed by the Office of Special Investigations of the
61.28 Department of Corrections who is a peace officer under section
61.29 626.84; and
61.30 (7) a commerce employee defined as a peace officer in
61.31 section 626.84, subdivision 1, paragraph (c), employed with the
61.32 Division of Insurance Fraud Prevention under section 45.0135
61.33 after January 1, 2005, and who has not attained the mandatory
61.34 retirement age specified in section 43A.34, subdivision 4.
61.35 Sec. 5. Minnesota Statutes 2004, section 353.01,
61.36 subdivision 6, is amended to read:
62.1 Subd. 6. GOVERNMENTAL SUBDIVISION. (a) "Governmental
62.2 subdivision" means a county, city, town, school district within
62.3 this state, or a department or unit of state government, or any
62.4 public body whose revenues are derived from taxation, fees,
62.5 assessments or from other sources.
62.6 (b) Governmental subdivision also means the Public
62.7 Employees Retirement Association, the League of Minnesota
62.8 Cities, the Association of Metropolitan Municipalities, public
62.9 hospitals owned or operated by, or an integral part of, a
62.10 governmental subdivision or governmental subdivisions, the
62.11 Association of Minnesota Counties, the Metropolitan Intercounty
62.12 Association, the Minnesota Municipal Utilities Association, the
62.13 Metropolitan Airports Commission, the University of Minnesota
62.14 with respect to police officers covered by the public employees
62.15 police and fire retirement plan, the Minneapolis Employees
62.16 Retirement Fund for employment initially commenced after June
62.17 30, 1979, the Range Association of Municipalities and Schools,
62.18 soil and water conservation districts, economic development
62.19 authorities created or operating under sections 469.090 to
62.20 469.108, the Port Authority of the city of St. Paul, the Spring
62.21 Lake Park Fire Department, incorporated, the Lake Johanna
62.22 Volunteer Fire Department, incorporated, the Red Wing
62.23 Environmental Learning Center, and the Dakota County
62.24 Agricultural Society.
62.25 (c) Governmental subdivision does not mean any municipal
62.26 housing and redevelopment authority organized under the
62.27 provisions of sections 469.001 to 469.047; or any port authority
62.28 organized under sections 469.048 to 469.089 other than the Port
62.29 Authority of the city of St. Paul; or any hospital district
62.30 organized or reorganized prior to July 1, 1975, under sections
62.31 447.31 to 447.37 or the successor of the district, nor the
62.32 Minneapolis Community Development Agency.
62.33 Sec. 6. Minnesota Statutes 2004, section 353.64, is
62.34 amended by adding a subdivision to read:
62.35 Subd. 6a. UNIVERSITY OF MINNESOTA POLICE OFFICERS;
62.36 EXCLUSION. (a) Unless paragraph (b) applies, a person who is
63.1 employed as a peace officer by the University of Minnesota at
63.2 any campus or facility of the university, who is required by the
63.3 university to be and is licensed as a peace officer by the
63.4 Minnesota Peace Officer Standards and Training Board under
63.5 section 626.84 to 626.863, and who has the full power of arrest
63.6 is a member of the police and fire retirement plan.
63.7 (b) A police officer employed by the University of
63.8 Minnesota who is required by the Board of Regents to contribute
63.9 to the University of Minnesota faculty retirement plan is not
63.10 eligible to be a member of the public employees police and fire
63.11 fund.
63.12 Sec. 7. EFFECTIVE DATE.
63.13 (a) Sections 1, 3, 5, and 6 are effective on July 1, 2005.
63.14 (b) Sections 2 and 4 are effective retroactively to January
63.15 1, 2005.
63.16 ARTICLE 6
63.17 RETIREMENT CONTRIBUTIONS
63.18 Section 1. Minnesota Statutes 2004, section 353.28,
63.19 subdivision 5, is amended to read:
63.20 Subd. 5. INTEREST CHARGES CHARGEABLE ON AMOUNTS DUE. Any
63.21 amount due under this section or section 353.27, subdivision 4,
63.22 is payable with interest at an annual compound rate of 8.5
63.23 percent compounded annually from the date due until the date
63.24 payment is received by the association, with a minimum interest
63.25 charge of $10. Interest for past due payments of excess police
63.26 state aid under section 69.031, subdivision 5, must be charged
63.27 at an annual rate of 8.5 percent compounded annually.
63.28 Sec. 2. Minnesota Statutes 2004, section 353.28,
63.29 subdivision 6, is amended to read:
63.30 Subd. 6. FAILURE TO PAY COLLECTION OF UNPAID AMOUNTS. (a)
63.31 If the a governmental subdivision which receives the direct
63.32 proceeds of property taxation fails to pay amounts an amount due
63.33 under chapters chapter 353, 353A, 353B, 353C, and or 353D or
63.34 fails to make payments of excess police state aid to the public
63.35 employees police and fire fund under section 69.031, subdivision
63.36 5, the executive director shall certify those amounts the amount
64.1 to the governmental subdivision for payment. If the
64.2 governmental subdivision fails to remit the sum so due in a
64.3 timely fashion, the executive director shall certify amounts the
64.4 amount to the applicable county auditor for collection. The
64.5 county auditor shall collect such amounts the amount out of the
64.6 revenue of the governmental subdivision, or shall add them the
64.7 amount to the levy of the governmental subdivision and make
64.8 payment directly to the association. This tax shall must be
64.9 levied, collected, and apportioned in the manner that other
64.10 taxes are levied, collected, and apportioned.
64.11 (b) If a governmental subdivision which is not funded
64.12 directly from the proceeds of property taxation fails to pay an
64.13 amount due under this chapter, the executive director shall
64.14 certify the amount to the governmental subdivision for payment.
64.15 If the governmental subdivision fails to pay the amount for a
64.16 period of 60 days after certification, the executive director
64.17 shall certify the amount to the commissioner of finance, who
64.18 shall deduct the amount from any subsequent state‑aid payment or
64.19 state appropriation amount applicable to the governmental
64.20 subdivision.
64.21 Sec. 3. EFFECTIVE DATE.
64.22 Sections 1 and 2 are effective July 1, 2005.
64.23 ARTICLE 7
64.24 PENSION BENEFITS UPON PRIVATIZATION
64.25 Section 1. Minnesota Statutes 2004, section 353F.02,
64.26 subdivision 4, is amended to read:
64.27 Subd. 4. MEDICAL FACILITY. "Medical facility" means:
64.28 (1) Bridges Medical Services;
64.29 (2) the Fair Oaks Lodge, Wadena;
64.30 (2) (3) the Glencoe Area Health Center;
64.31 (3) (4) the Hutchinson Area Health Care;
64.32 (5) the Kanabec Hospital;
64.33 (4) (6) the Luverne Public Hospital;
64.34 (7) the Northfield Hospital;
64.35 (5) (8) the RenVilla Nursing Home;
64.36 (6) (9) the Renville County Hospital in Olivia;
65.1 (7) (10) the St. Peter Community Healthcare Center; and
65.2 (8) (11) the Waconia‑Ridgeview Medical Center.
65.3 Sec. 2. Laws 2004, chapter 267, article 12, section 4, is
65.4 amended to read:
65.5 Sec. 4. EFFECTIVE DATE.
65.6 (a) Section 1, relating to the Fair Oaks Lodge, Wadena, is
65.7 effective upon the latter of:
65.8 (1) the day after the governing body of Todd County and its
65.9 chief clerical officer timely complete their compliance with
65.10 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
65.11 (2) the day after the governing body of Wadena County and
65.12 its chief clerical officer timely complete their compliance with
65.13 Minnesota Statutes, section 645.021, subdivisions 2 and 3.
65.14 (b) Section 1, relating to the RenVilla Nursing Home, is
65.15 effective upon the latter of:
65.16 (1) the day after the governing body of the city of
65.17 Renville and its chief clerical officer timely complete their
65.18 compliance with Minnesota Statutes, section 645.021,
65.19 subdivisions 2 and 3, except that the certificate of approval
65.20 must be filed before January 1, 2006; and
65.21 (2) the first day of the month next following certification
65.22 to the governing body of the city of Renville by the executive
65.23 director of the Public Employees Retirement Association that the
65.24 actuarial accrued liability of the special benefit coverage
65.25 proposed for extension to the privatized RenVilla Nursing Home
65.26 employees under section 1 does not exceed the actuarial gain
65.27 otherwise to be accrued by the Public Employees Retirement
65.28 Association, as calculated by the consulting actuary retained by
65.29 the Legislative Commission on Pensions and Retirement, or the
65.30 actuary retained under Minnesota Statutes, section 356.214,
65.31 whichever is applicable.
65.32 (c) The cost of the actuarial calculations must be borne by
65.33 the city of Renville or the purchaser of the RenVilla Nursing
65.34 Home.
65.35 (d) Section 1, relating to the St. Peter Community
65.36 Healthcare Center, is effective upon the latter of:
66.1 (1) the day after the governing body of the city of St.
66.2 Peter and its chief clerical officer timely complete their
66.3 compliance with Minnesota Statutes, section 645.021,
66.4 subdivisions 2 and 3; and
66.5 (2) the first day of the month next following certification
66.6 to the governing body of the city of St. Peter by the executive
66.7 director of the Public Employees Retirement Association that the
66.8 actuarial accrued liability of the special benefit coverage
66.9 proposed for extension to the privatized St. Peter Community
66.10 Healthcare Center employees under section 1 does not exceed the
66.11 actuarial gain otherwise to be accrued by the Public Employees
66.12 Retirement Association, as calculated by the consulting actuary
66.13 retained by the Legislative Commission on Pensions and
66.14 Retirement, or the actuary retained under Minnesota Statutes,
66.15 section 356.214, whichever is applicable.
66.16 (e) The cost of the actuarial calculations must be borne by
66.17 the city of St. Peter or the purchaser of the St. Peter
66.18 Community Healthcare Center.
66.19 (f) If the required actions under paragraphs (b) and (c)
66.20 occur, section 1 applies retroactively to the RenVilla Nursing
66.21 Home as of the date of privatization.
66.22 (g) If the required actions under paragraph (a) occur,
66.23 section 1 applies retroactively to Fair Oaks Lodge, Wadena, as
66.24 of January 1, 2004.
66.25 (h) Sections 2 and 3 are effective on the day following
66.26 final enactment. of January 1, 2004.
66.27 Sec. 3. EFFECTIVE DATE.
66.28 (a) Section 1, relating to Bridges Medical Services, is
66.29 effective upon the later of:
66.30 (1) the day after the governing body of the city of Ada and
66.31 its chief clerical officer timely complete their compliance with
66.32 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
66.33 (2) the first day of the month next following certification
66.34 to the governing body of the city of Ada by the executive
66.35 director of the Public Employees Retirement Association that the
66.36 actuarial accrued liability of the special benefit coverage
67.1 proposed for extension to the privatized Bridges Medical
67.2 Services employees under section 1 does not exceed the actuarial
67.3 gain otherwise to be accrued by the Public Employees Retirement
67.4 Association, as calculated by the consulting actuary retained
67.5 under Minnesota Statutes, section 356.214.
67.6 (b) Section 1, relating to the Hutchinson Area Health Care,
67.7 is effective upon the later of:
67.8 (1) the day after the governing body of the city of
67.9 Hutchinson and its chief clerical officer timely complete their
67.10 compliance with Minnesota Statutes, section 645.021,
67.11 subdivisions 2 and 3; and
67.12 (2) the first day of the month next following certification
67.13 to the governing body of the city of Hutchinson by the executive
67.14 director of the Public Employees Retirement Association that the
67.15 actuarial accrued liability of the special benefit coverage
67.16 proposed for extension to the privatized Hutchinson Area Health
67.17 Care employees under section 1 does not exceed the actuarial
67.18 gain otherwise to be accrued by the Public Employees Retirement
67.19 Association, as calculated by the consulting actuary retained by
67.20 the Legislative Commission on Pensions and Retirement.
67.21 (c) Section 1, relating to the Northfield Hospital, is
67.22 effective upon the later of:
67.23 (1) the day after the governing body of the city of
67.24 Hutchinson and its chief clerical officer timely complete their
67.25 compliance with Minnesota Statutes, section 645.021,
67.26 subdivisions 2 and 3; and
67.27 (2) the first day of the month next following certification
67.28 to the governing body of the city of Hutchinson by the executive
67.29 director of the Public Employees Retirement Association that the
67.30 actuarial accrued liability of the special benefit coverage
67.31 proposed for extension to the privatized Hutchinson Area Health
67.32 Care employees under section 1 does not exceed the actuarial
67.33 gain otherwise to be accrued by the Public Employees Retirement
67.34 Association, as calculated by the consulting actuary retained by
67.35 the Legislative Commission on Pensions and Retirement.
67.36 (d) The cost of the actuarial calculations must be borne by
68.1 the facility, the city in which the facility is located, or the
68.2 purchaser of the facility.
68.3 (e) If the required actions in paragraphs (a), (b), or (c)
68.4 and (d) occur, section 1 applies retroactively to the date of
68.5 privatization.
68.6 (f) Section 2 is effective on the day following final
68.7 enactment.
68.8 ARTICLE 8
68.9 FIRST CLASS CITY TEACHER
68.10 RETIREMENT FUND ASSOCIATIONS
68.11 Section 1. Minnesota Statutes 2004, section 354A.021, is
68.12 amended by adding a subdivision to read:
68.13 Subd. 9. UPDATED ARTICLES OF INCORPORATION AND BYLAWS;
68.14 FILING. (a) On or before July 1, 2006, and within six months of
68.15 the date of the approval of any amendment to the articles of
68.16 incorporation or bylaws, the chief administrative officer of
68.17 each first class city teacher retirement fund association shall
68.18 prepare and publish an updated compilation of the articles of
68.19 incorporation and the bylaws of the association.
68.20 (b) The chief administrative officer of the first class
68.21 city teacher retirement fund association must certify the
68.22 accuracy and the completeness of the compilation.
68.23 (c) The compilation of the articles of incorporation and
68.24 bylaws of a first class city teacher retirement fund association
68.25 must contain an index.
68.26 (d) The compilation must be made available to association
68.27 members and other interested parties. The association may
68.28 charge a fee for a copy that reflects the price of printing or
68.29 otherwise producing the copy. Two copies of the compilation
68.30 must be filed, without charge, by each retirement fund
68.31 association with the Legislation Commission on Pensions and
68.32 Retirement, the Legislative Reference Library, the state
68.33 auditor, the commissioner of education, the chancellor of the
68.34 Minnesota State Colleges and Universities System, and the
68.35 superintendent of the applicable school district.
68.36 (e) A first class city teacher retirement fund association
69.1 may contract with the revisor of statutes for the preparation of
69.2 the compilation.
69.3 (f) If a first class city teacher retirement fund
69.4 association makes an updated copy of its articles of
69.5 incorporation and bylaws available on its Web site, the
69.6 retirement fund association is not obligated to file a hard copy
69.7 of the documents under paragraph (d) for the applicable filing
69.8 period.
69.9 Sec. 2. EFFECTIVE DATE.
69.10 Section 1 is effective July 1, 2005.
69.11 ARTICLE 9
69.12 MNSCU IRAP CHANGES
69.13 Section 1. Minnesota Statutes 2004, section 354B.25,
69.14 subdivision 2, is amended to read:
69.15 Subd. 2. INVESTMENT OPTIONS. (a) The plan administrator
69.16 shall arrange for the purchase of investment products.
69.17 (b) The investment products must be purchased with
69.18 contributions under section 354B.23 or with money or assets
69.19 otherwise provided by law by authority of the board.
69.20 (c) Various investment accounts offered through the
69.21 Minnesota supplemental investment fund established under section
69.22 11A.17 and administered by the State Board of Investment is one
69.23 of the may be included as investment products for the individual
69.24 retirement account plan. Direct access must also be provided to
69.25 lower expense and no‑load mutual funds, as those terms are
69.26 defined by the federal Securities and Exchange Commission,
69.27 including stock funds, bond funds, and balanced funds. Other
69.28 investment products or combination of investment products which
69.29 may be included are:
69.30 (1) savings accounts at federally insured financial
69.31 institutions;
69.32 (2) life insurance contracts, fixed and variable annuity
69.33 contracts from companies that are subject to regulation by the
69.34 commerce commissioner;
69.35 (3) investment options from open‑ended investment companies
69.36 registered under the federal Investment Company Act of 1940,
70.1 United States Code, title 15, sections 80a‑1 to 80a‑64;
70.2 (4) investment options from a firm that is a registered
70.3 investment advisor under the federal Investment Advisers Act of
70.4 1940, United States Code, title 15, sections 80b‑1 to 80b‑21;
70.5 and
70.6 (5) investment options of a bank as defined in United
70.7 States Code, title 15, section 80b‑2, subsection (a), paragraph
70.8 2, or a bank holding company as defined in the Bank Holding
70.9 Company Act of 1956, United States Code, title 12, section 1841,
70.10 subsection (a), paragraph (1).
70.11 Sec. 2. EFFECTIVE DATE.
70.12 Section 1 is effective the day following final enactment.
70.13 ARTICLE 10
70.14 SUPPLEMENTAL RETIREMENT PLANS
70.15 Section 1. Minnesota Statutes 2004, section 356.24,
70.16 subdivision 1, is amended to read:
70.17 Subdivision 1. RESTRICTION; EXCEPTIONS. It is unlawful
70.18 for a school district or other governmental subdivision or state
70.19 agency to levy taxes for, or to contribute public funds to a
70.20 supplemental pension or deferred compensation plan that is
70.21 established, maintained, and operated in addition to a primary
70.22 pension program for the benefit of the governmental subdivision
70.23 employees other than:
70.24 (1) to a supplemental pension plan that was established,
70.25 maintained, and operated before May 6, 1971;
70.26 (2) to a plan that provides solely for group health,
70.27 hospital, disability, or death benefits;
70.28 (3) to the individual retirement account plan established
70.29 by chapter 354B;
70.30 (4) to a plan that provides solely for severance pay under
70.31 section 465.72 to a retiring or terminating employee;
70.32 (5) for employees other than personnel employed by the
70.33 Board of Trustees of the Minnesota State Colleges and
70.34 Universities and covered under the Higher Education Supplemental
70.35 Retirement Plan under chapter 354C, if the supplemental plan
70.36 coverage is provided for in a personnel policy of the public
71.1 employer or in the collective bargaining agreement between the
71.2 public employer and the exclusive representative of public
71.3 employees in an appropriate unit, in an amount matching employee
71.4 contributions on a dollar for dollar basis, but not to exceed an
71.5 employer contribution of $2,000 a year per employee;
71.6 (i) to the state of Minnesota deferred compensation plan
71.7 under section 352.96; or
71.8 (ii) in payment of the applicable portion of the
71.9 contribution made to any investment eligible under section
71.10 403(b) of the Internal Revenue Code, if the employing unit has
71.11 complied with any applicable pension plan provisions of the
71.12 Internal Revenue Code with respect to the tax‑sheltered annuity
71.13 program during the preceding calendar year;
71.14 (6) for personnel employed by the Board of Trustees of the
71.15 Minnesota State Colleges and Universities and not covered by
71.16 clause (5), to the supplemental retirement plan under chapter
71.17 354C, if the supplemental plan coverage is provided for in a
71.18 personnel policy or in the collective bargaining agreement of
71.19 the public employer with the exclusive representative of the
71.20 covered employees in an appropriate unit, in an amount matching
71.21 employee contributions on a dollar for dollar basis, but not to
71.22 exceed an employer contribution of $2,700 a year for each
71.23 employee;
71.24 (7) to a supplemental plan or to a governmental trust to
71.25 save for postretirement health care expenses qualified for
71.26 tax‑preferred treatment under the Internal Revenue Code, if the
71.27 supplemental plan coverage is provided for in a personnel policy
71.28 or in the collective bargaining agreement of a public employer
71.29 with the exclusive representative of the covered employees in an
71.30 appropriate unit;
71.31 (8) to the laborer's national industrial pension fund or to
71.32 a laborer's local pension fund for the employees of a
71.33 governmental subdivision who are covered by a collective
71.34 bargaining agreement that provides for coverage by that fund and
71.35 that sets forth a fund contribution rate, but not to exceed an
71.36 employer contribution of $2,000 $5,000 per year per employee;
72.1 (9) to the plumbers' and pipefitters' national pension fund
72.2 or to a plumbers' and pipefitters' local pension fund for the
72.3 employees of a governmental subdivision who are covered by a
72.4 collective bargaining agreement that provides for coverage by
72.5 that fund and that sets forth a fund contribution rate, but not
72.6 to exceed an employer contribution of $2,000 $5,000 per year per
72.7 employee;
72.8 (10) to the international union of operating engineers
72.9 pension fund for the employees of a governmental subdivision who
72.10 are covered by a collective bargaining agreement that provides
72.11 for coverage by that fund and that sets forth a fund
72.12 contribution rate, but not to exceed an employer contribution of
72.13 $2,000 $5,000 per year per employee; or
72.14 (11) to a supplemental plan organized and operated under
72.15 the federal Internal Revenue Code, as amended, that is wholly
72.16 and solely funded by the employee's accumulated sick leave,
72.17 accumulated vacation leave, and accumulated severance pay at the
72.18 date of retirement or the termination of active employment.
72.19 Sec. 2. EFFECTIVE DATE.
72.20 Section 1 is effective on the day following final enactment.
72.21 ARTICLE 11
72.22 VOLUNTEER FIREFIGHTER RELIEF
72.23 ASSOCIATION CHANGES
72.24 Section 1. Minnesota Statutes 2004, section 69.051,
72.25 subdivision 1, is amended to read:
72.26 Subdivision 1. FINANCIAL REPORT AND AUDIT. The board of
72.27 each salaried firefighters' relief association, police relief
72.28 association, and volunteer firefighters' relief association as
72.29 defined in section 424A.001, subdivision 4, with assets of at
72.30 least $200,000 or liabilities of at least $200,000 in the prior
72.31 year or in any previous year, according to the most recent
72.32 applicable actuarial valuation or financial report if no
72.33 valuation is required, shall:
72.34 (1) prepare a financial report covering the special and
72.35 general funds of the relief association for the preceding fiscal
72.36 year on a form prescribed by the state auditor. The financial
73.1 report shall must contain financial statements and disclosures
73.2 which present the true financial condition of the relief
73.3 association and the results of relief association operations in
73.4 conformity with generally accepted accounting principles and in
73.5 compliance with the regulatory, financing and funding provisions
73.6 of this chapter and any other applicable laws. The financial
73.7 report shall must be countersigned by the municipal clerk or
73.8 clerk‑treasurer of the municipality in which the relief
73.9 association is located if the relief association is a
73.10 firefighters' relief association which is directly associated
73.11 with a municipal fire department or is a police relief
73.12 association, or countersigned by the secretary of the
73.13 independent nonprofit firefighting corporation and by the
73.14 municipal clerk or clerk‑treasurer of the largest municipality
73.15 in population which contracts with the independent nonprofit
73.16 firefighting corporation if the Volunteer Firefighter Relief
73.17 Association is a subsidiary of an independent nonprofit
73.18 firefighting corporation;
73.19 (2) file the financial report in its office for public
73.20 inspection and present it to the city council after the close of
73.21 the fiscal year. One copy of the financial report shall must be
73.22 furnished to the state auditor after the close of the fiscal
73.23 year; and
73.24 (3) submit to the state auditor audited financial
73.25 statements which have been attested to by a certified public
73.26 accountant, public accountant, or the state auditor within 180
73.27 days after the close of the fiscal year. The state auditor may
73.28 accept this report in lieu of the report required in clause (2).
73.29 Sec. 2. Minnesota Statutes 2004, section 69.051,
73.30 subdivision 1a, is amended to read:
73.31 Subd. 1a. FINANCIAL STATEMENT. (a) The board of each
73.32 volunteer firefighters' relief association, as defined in
73.33 section 424A.001, subdivision 4, with assets of less than
73.34 $200,000 and liabilities less than $200,000, according to the
73.35 most recent financial report, shall that is not required to file
73.36 a financial report and audit under subdivision 1 must prepare a
74.1 detailed statement of the financial affairs for the preceding
74.2 fiscal year of the relief association's special and general
74.3 funds in the style and form prescribed by the state auditor.
74.4 The detailed statement must show the sources and amounts of all
74.5 money received; all disbursements, accounts payable and accounts
74.6 receivable; the amount of money remaining in the treasury; total
74.7 assets including a listing of all investments; the accrued
74.8 liabilities; and all items necessary to show accurately the
74.9 revenues and expenditures and financial position of the relief
74.10 association.
74.11 (b) The detailed financial statement required under
74.12 paragraph (a) must be certified by an independent public
74.13 accountant or auditor or by the auditor or accountant who
74.14 regularly examines or audits the financial transactions of the
74.15 municipality. In addition to certifying the financial condition
74.16 of the special and general funds of the relief association, the
74.17 accountant or auditor conducting the examination shall give an
74.18 opinion as to the condition of the special and general funds of
74.19 the relief association, and shall comment upon any exceptions to
74.20 the report. The independent accountant or auditor shall must
74.21 have at least five years of public accounting, auditing, or
74.22 similar experience, and shall must not be an active, inactive,
74.23 or retired member of the relief association or the fire or
74.24 police department.
74.25 (c) The detailed statement required under paragraph (a)
74.26 must be countersigned by the municipal clerk or clerk‑treasurer
74.27 of the municipality, or, where applicable, by the secretary of
74.28 the independent nonprofit firefighting corporation and by the
74.29 municipal clerk or clerk‑treasurer of the largest municipality
74.30 in population which contracts with the independent nonprofit
74.31 firefighting corporation if the relief association is a
74.32 subsidiary of an independent nonprofit firefighting corporation.
74.33 (d) The volunteer firefighters' relief association board
74.34 must file the detailed statement required under paragraph (a) in
74.35 the relief association office for public inspection and present
74.36 it to the city council within 45 days after the close of the
75.1 fiscal year, and must submit a copy of the detailed statement to
75.2 the state auditor within 90 days of the close of the fiscal year.
75.3 Sec. 3. Minnesota Statutes 2004, section 69.771, is
75.4 amended to read:
75.5 69.771 VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION
75.6 FINANCING GUIDELINES ACT; APPLICATION.
75.7 Subdivision 1. COVERED RELIEF ASSOCIATIONS. The
75.8 applicable provisions of sections 69.771 to 69.776 shall apply
75.9 to any firefighters' relief association other than a relief
75.10 association enumerated in section 69.77, subdivision 1a, which
75.11 is organized under any laws of this state, which is composed of
75.12 volunteer firefighters or is composed partially of volunteer
75.13 firefighters and partially of salaried firefighters with
75.14 retirement coverage provided by the public employees police and
75.15 fire fund and which, in either case, operates subject to the
75.16 service pension minimum requirements for entitlement and
75.17 maximums contained in section 424A.02, or subject to a special
75.18 law modifying those requirements or maximums.
75.19 Subd. 2. AUTHORIZED EMPLOYER SUPPORT FOR A RELIEF
75.20 ASSOCIATION. Notwithstanding any law to the contrary, a
75.21 municipality may lawfully contribute public funds, including the
75.22 transfer of any applicable fire state aid, or may levy property
75.23 taxes for the support of a firefighters' relief association
75.24 specified in subdivision 1, however organized, which provides
75.25 retirement coverage or pays a service pension to retired
75.26 firefighter or a retirement benefit to a disabled firefighter or
75.27 a surviving dependent of either an active or retired firefighter
75.28 for the operation and maintenance of the relief association only
75.29 if the municipality and the relief association both comply with
75.30 the applicable provisions of sections 69.771 to 69.776.
75.31 Subd. 3. REMEDY FOR NONCOMPLIANCE; DETERMINATION.
75.32 Any (a) A municipality in which there exists a firefighters'
75.33 relief association as specified in subdivision 1 which does not
75.34 comply with the applicable provisions of sections 69.771 to
75.35 69.776 or the provisions of any applicable special law relating
75.36 to the funding or financing of the association shall does not
76.1 qualify initially to receive, or be and is not entitled
76.2 subsequently to retain, fire state aid pursuant to under
76.3 sections 69.011 to 69.051 until the reason for the
76.4 disqualification specified by the state auditor is remedied,
76.5 whereupon the municipality or relief association, if otherwise
76.6 qualified, shall be is entitled to again receive fire state aid
76.7 for the year occurring immediately subsequent to the year in
76.8 which the disqualification is remedied.
76.9 (b) The state auditor shall determine if a municipality to
76.10 which a firefighters' relief association is directly associated
76.11 or a firefighters' relief association fails to comply with the
76.12 provisions of sections 69.771 to 69.776 or the funding or
76.13 financing provisions of any applicable special law based upon
76.14 the information contained in the annual financial report of the
76.15 firefighters' relief association required pursuant to under
76.16 section 69.051., the actuarial valuation of the relief
76.17 association, if applicable, the relief association officers'
76.18 financial requirements of the relief association and minimum
76.19 municipal obligation determination documentation under section
76.20 69.772, subdivisions 3 and 4; 69.773, subdivisions 4 and 5; or
76.21 69.774, subdivision 2, if requested to be filed by the state
76.22 auditor, the applicable municipal or nonprofit firefighting
76.23 corporation budget, if requested to be filed by the state
76.24 auditor, and any other relevant documents or reports obtained by
76.25 the state auditor.
76.26 (c) The municipality or nonprofit firefighting corporation
76.27 and the associated relief association are not eligible to
76.28 receive or to retain fire state aid if:
76.29 (1) the relief association fails to prepare or to file the
76.30 financial report or financial statement under section 69.051;
76.31 (2) the relief association treasurer is not bonded in the
76.32 manner and in the amount required by section 69.051, subdivision
76.33 2;
76.34 (3) the relief association officers fail to determine or
76.35 improperly determine the accrued liability and the annual
76.36 accruing liability of the relief association under section
77.1 69.772, subdivisions 2, 2a, and 3, paragraph (c), clause (2), if
77.2 applicable;
77.3 (4) if applicable, the relief association officers fail to
77.4 obtain and file a required actuarial valuation or the officers
77.5 file an actuarial valuation that does not contain the special
77.6 fund actuarial liability calculated under the entry age normal
77.7 actuarial cost method, the special fund current assets, the
77.8 special fund unfunded actuarial accrued liability, the special
77.9 fund normal cost under the entry age normal actuarial cost
77.10 method, the amortization requirement for the special fund
77.11 unfunded actuarial accrued liability by the applicable target
77.12 date, a summary of the applicable benefit plan, a summary of the
77.13 membership of the relief association, a summary of the actuarial
77.14 assumptions used in preparing the valuation, and a signed
77.15 statement by the actuary attesting to its results and certifying
77.16 to the qualifications of the actuary as an approved actuary
77.17 under section 356.215, subdivision 1, paragraph (c);
77.18 (5) the municipality failed to provide a municipal
77.19 contribution, or the nonprofit firefighting corporation failed
77.20 to provide a corporate contribution, in the amount equal to the
77.21 minimum municipal obligation if the relief association is
77.22 governed under section 69.772, or the amount necessary, when
77.23 added to the fire state aid actually received in the plan year
77.24 in question, to at least equal in total the calculated annual
77.25 financial requirements of the special fund of the relief
77.26 association if the relief association is governed under section
77.27 69.773, and, if the municipal or corporate contribution is
77.28 deficient, the municipality failed to include the minimum
77.29 municipal obligation certified under section 69.772, subdivision
77.30 3, or 69.773, subdivision 5, in its budget and tax levy or the
77.31 nonprofit firefighting corporation failed to include the minimum
77.32 corporate obligation certified under section 69.774, subdivision
77.33 2, in the corporate budget;
77.34 (6) the relief association did not receive municipal
77.35 ratification for the most recent plan amendment when municipal
77.36 ratification was required under section 69.772, subdivision 6;
78.1 69.773, subdivision 6; or 424A.02, subdivision 10;
78.2 (7) the relief association invested special fund assets in
78.3 an investment security that is not authorized under section
78.4 69.775;
78.5 (8) the relief association had an administrative expense
78.6 that is not authorized under section 69.80 or 424A.05,
78.7 subdivision 3, or the municipality had an expenditure that is
78.8 not authorized under section 424A.08;
78.9 (9) the relief association officers fail to provide a
78.10 complete and accurate public pension plan investment portfolio
78.11 and performance disclosure under section 356.219;
78.12 (10) the relief association fails to obtain the
78.13 acknowledgment from a broker of the statement of investment
78.14 restrictions under section 356A.06, subdivision 8b;
78.15 (11) the relief association officers permitted to occur a
78.16 prohibited transaction under section 356A.06, subdivision 9, or
78.17 424A.001, subdivision 7, or failed to undertake correction of a
78.18 prohibited transaction that did occur; or
78.19 (12) the relief association pays a defined benefit service
78.20 pension in an amount that is in excess of the applicable service
78.21 pension maximum under section 424A.02, subdivision 3.
78.22 Sec. 4. Minnesota Statutes 2004, section 69.772,
78.23 subdivision 3, is amended to read:
78.24 Subd. 3. FINANCIAL REQUIREMENTS OF RELIEF ASSOCIATION;
78.25 MINIMUM OBLIGATION OF MUNICIPALITY. (a) During the month of
78.26 July, the officers of the relief association shall determine the
78.27 overall funding balance of the special fund for the current
78.28 calendar year, the financial requirements of the special fund
78.29 for the following calendar year and the minimum obligation of
78.30 the municipality with respect to the special fund for the
78.31 following calendar year in accordance with the requirements of
78.32 this subdivision.
78.33 (1) (b) The overall funding balance of the special fund for
78.34 the current calendar year shall must be determined in the
78.35 following manner:
78.36 (a) (1) The total accrued liability of the special fund for
79.1 all active and deferred members of the relief association as of
79.2 December 31 of the current year shall must be calculated
79.3 pursuant to under subdivisions 2 and 2a, if applicable.
79.4 (b) (2) The total present assets of the special fund
79.5 projected to December 31 of the current year, including receipts
79.6 by and disbursements from the special fund anticipated to occur
79.7 on or before December 31 shall, must be calculated. To the
79.8 extent possible, for those assets for which a market value is
79.9 readily ascertainable, the current market value as of the date
79.10 of the calculation for those assets shall must be utilized in
79.11 making this calculation. For any asset for which no market
79.12 value is readily ascertainable, the cost value or the book
79.13 value, whichever is applicable, shall must be utilized in making
79.14 this calculation.
79.15 (c) (3) The amount of the total present assets of the
79.16 special fund calculated pursuant to under clause (b) shall (2)
79.17 must be subtracted from the amount of the total accrued
79.18 liability of the special fund calculated pursuant to under
79.19 clause (a) (1). If the amount of total present assets exceeds
79.20 the amount of the total accrued liability, then the special fund
79.21 shall be is considered to have a surplus over full funding. If
79.22 the amount of the total present assets is less than the amount
79.23 of the total accrued liability, then the special fund shall be
79.24 is considered to have a deficit from full funding. If the
79.25 amount of total present assets is equal to the amount of the
79.26 total accrued liability, then the special fund shall be is
79.27 considered to be fully funded.
79.28 (2) (c) The financial requirements of the special fund for
79.29 the following calendar year shall must be determined in the
79.30 following manner:
79.31 (a) (1) The total accrued liability of the special fund for
79.32 all active and deferred members of the relief association as of
79.33 December 31 of the calendar year next following the current
79.34 calendar year shall must be calculated pursuant to under
79.35 subdivisions 2 and 2a, if applicable.
79.36 (b) (2) The increase in the total accrued liability of the
80.1 special fund for the following calendar year over the total
80.2 accrued liability of the special fund for the current year shall
80.3 must be calculated.
80.4 (c) (3) The amount of anticipated future administrative
80.5 expenses of the special fund shall must be calculated by
80.6 multiplying the dollar amount of the administrative expenses of
80.7 the special fund for the most recent prior calendar year by the
80.8 factor of 1.035.
80.9 (d) (4) If the special fund is fully funded, the financial
80.10 requirement requirements of the special fund for the following
80.11 calendar year shall be are the figure which represents the
80.12 increase in the total accrued liability of the special fund as
80.13 amounts calculated pursuant to subclause (b) under clauses (2)
80.14 and (3).
80.15 (e) (5) If the special fund has a deficit from full
80.16 funding, the financial requirements of the special fund for the
80.17 following calendar year shall be are the financial requirements
80.18 of the special fund calculated as though the special fund were
80.19 fully funded pursuant to subclause (d) under clause (4) plus an
80.20 amount equal to one‑tenth of the original amount of the deficit
80.21 from full funding of the special fund as determined pursuant to
80.22 this section for the calendar year 1971 until that deficit from
80.23 full funding is fully retired, and plus an amount equal to
80.24 one‑tenth of the increase in the deficit from full funding of
80.25 the special fund under clause (2) resulting either from an
80.26 increase in the amount of the service pension accruing after
80.27 December 31, 1971 occurring in the last ten years or from a net
80.28 annual investment loss occurring during the last ten years until
80.29 each increase in the deficit from full funding is fully
80.30 retired. The annual amortization contribution under this clause
80.31 may not exceed the amount of the deficit from full funding.
80.32 (f) (6) If the special fund has a surplus over full
80.33 funding, the financial requirements of the special fund for the
80.34 following calendar year shall be are the financial requirements
80.35 of the special fund calculated as though the special fund were
80.36 fully funded pursuant to subclause (d) under clause (4) reduced
81.1 by an amount equal to one‑tenth of the amount of the surplus
81.2 over full funding of the special fund.
81.3 (3) (d) The minimum obligation of the municipality with
81.4 respect to the special fund shall be is the financial
81.5 requirements of the special fund reduced by the amount of any
81.6 fire state aid payable pursuant to under sections 69.011 to
81.7 69.051 reasonably anticipated to be received by the municipality
81.8 for transmittal to the special fund during the following
81.9 calendar year, an amount of interest on the assets of the
81.10 special fund projected to the beginning of the following
81.11 calendar year calculated at the rate of five percent per annum,
81.12 and the amount of any anticipated contributions to the special
81.13 fund required by the relief association bylaws from the active
81.14 members of the relief association reasonably anticipated to be
81.15 received during the following calendar year. A reasonable
81.16 amount of anticipated fire state aid is an amount that does not
81.17 exceed the fire state aid actually received in the prior year
81.18 multiplied by the factor 1.035.
81.19 Sec. 5. Minnesota Statutes 2004, section 69.772,
81.20 subdivision 4, is amended to read:
81.21 Subd. 4. CERTIFICATION OF FINANCIAL REQUIREMENTS AND
81.22 MINIMUM MUNICIPAL OBLIGATION; LEVY. (a) The officers of the
81.23 relief association shall certify the financial requirements of
81.24 the special fund of the relief association and the minimum
81.25 obligation of the municipality with respect to the special fund
81.26 of the relief association as determined pursuant to under
81.27 subdivision 3 to the governing body of the municipality on or
81.28 before August 1 of each year. The financial requirements of the
81.29 relief association and the minimum municipal obligation must be
81.30 included in the financial report or financial statement under
81.31 section 69.051.
81.32 (b) The municipality shall provide for at least the minimum
81.33 obligation of the municipality with respect to the special fund
81.34 of the relief association by tax levy or from any other source
81.35 of public revenue.
81.36 (c) The municipality may levy taxes for the payment of the
82.1 minimum municipal obligation without any limitation as to rate
82.2 or amount and irrespective of any limitations imposed by other
82.3 provisions of law upon the rate or amount of taxation until the
82.4 balance of the special fund or any fund of the relief
82.5 association has attained a specified level. In addition, any
82.6 taxes levied pursuant to under this section shall must not cause
82.7 the amount or rate of any other taxes levied in that year or to
82.8 be levied in a subsequent year by the municipality which are
82.9 subject to a limitation as to rate or amount to be reduced.
82.10 (d) If the municipality does not include the full amount of
82.11 the minimum municipal obligations in its levy for any year, the
82.12 officers of the relief association shall certify that amount to
82.13 the county auditor, who shall spread a levy in the amount of the
82.14 certified minimum municipal obligation on the taxable property
82.15 of the municipality.
82.16 (e) If the state auditor determines that a municipal
82.17 contribution actually made in a plan year was insufficient under
82.18 section 69.771, subdivision 3, paragraph (c), clause (5), the
82.19 state auditor may request a copy of the certifications under
82.20 this subdivision from the relief association or from the city.
82.21 The relief association or the city, whichever applies, must
82.22 provide the certifications within 14 days of the date of the
82.23 request from the state auditor.
82.24 Sec. 6. Minnesota Statutes 2004, section 69.773,
82.25 subdivision 4, is amended to read:
82.26 Subd. 4. FINANCIAL REQUIREMENTS OF SPECIAL FUND. Prior
82.27 to (a) On or before August 1 of each year, the officers of the
82.28 relief association shall determine the financial requirements of
82.29 the special fund of the relief association in accordance with
82.30 the requirements of this subdivision.
82.31 (b) The financial requirements of the relief
82.32 association shall must be based on the most recent actuarial
82.33 valuation of the special fund prepared in accordance with
82.34 subdivision 2. If the relief association has an unfunded
82.35 actuarial accrued liability as reported in the most recent
82.36 actuarial valuation, the financial requirements shall must be
83.1 determined by adding the figures calculated pursuant to under
83.2 paragraph (d), clauses (a) (1), (b) (2), and (c) (3). If
83.3 the relief association does not have an unfunded actuarial
83.4 accrued liability as reported in the most recent actuarial
83.5 valuation, the financial requirements shall must be an amount
83.6 equal to the figure calculated pursuant to under paragraph (d),
83.7 clauses (a) (1) and (b) (2), reduced by an amount equal to
83.8 one‑tenth of the amount of any assets in excess of the actuarial
83.9 accrued liability of the relief association.
83.10 (c) The determination of whether or not the relief
83.11 association has an unfunded actuarial accrued liability
83.12 shall must be based on the current market value of assets for
83.13 which a market value is readily ascertainable and the cost or
83.14 book value, whichever is applicable, for assets for which no
83.15 market value is readily ascertainable.
83.16 (a) (d) The components of the financial requirements of the
83.17 relief association are the following:
83.18 (1) The normal level cost requirement for the following
83.19 year, expressed as a dollar amount, shall be is the figure for
83.20 the normal level cost of the relief association as reported in
83.21 the actuarial valuation.
83.22 (b) (2) The amount of anticipated future administrative
83.23 expenses of the special fund shall must be calculated by
83.24 multiplying the dollar amount of the administrative expenses of
83.25 the special fund for the most recent prior calendar year by the
83.26 factor of 1.035.
83.27 (c) (3) The amortization contribution requirement to retire
83.28 the current unfunded actuarial accrued liability by the
83.29 established date for full funding shall be is the figure for the
83.30 amortization contribution as reported in the actuarial
83.31 valuation. If there has not been a change in the actuarial
83.32 assumptions used for calculating the actuarial accrued liability
83.33 of the special fund, a change in the bylaws of the relief
83.34 association governing the service pensions, retirement benefits,
83.35 or both, payable from the special fund, or a change in the
83.36 actuarial cost method used to value all or a portion of the
84.1 special fund which change or changes, which by themselves,
84.2 without inclusion of any other items of increase or decrease,
84.3 produce a net increase in the unfunded actuarial accrued
84.4 liability of the special fund since December 31, 1970, the
84.5 established date for full funding shall be is the December 31,
84.6 1990 occurring ten years later. If there has been a change in
84.7 the actuarial assumptions used for calculating the actuarial
84.8 accrued liability of the special fund, a change in the bylaws of
84.9 the relief association governing the service pensions,
84.10 retirement benefits, or both payable from the special fund or a
84.11 change in the actuarial cost method used to value all or a
84.12 portion of the special fund and the change or changes, by
84.13 themselves and without inclusion of any other items of increase
84.14 or decrease, produce a net increase in the unfunded actuarial
84.15 accrued liability of the special fund since December 31, 1970,
84.16 but prior to January 1, 1979 within the past 20 years, the
84.17 established date for full funding shall be December 31, 1998,
84.18 and if there has been a change since December 31, 1978, the
84.19 established date for full funding shall must be determined using
84.20 the following procedure:
84.21 (i) the unfunded actuarial accrued liability of the special
84.22 fund attributable to experience losses that have occurred since
84.23 the most recent prior actuarial valuation must be determined and
84.24 the level annual dollar contribution needed to amortize the
84.25 experience loss over a period of ten years ending on the
84.26 December 31 occurring ten years later must be calculated;
84.27 (ii) the unfunded actuarial accrued liability of the
84.28 special fund shall must be determined in accordance with the
84.29 provisions governing service pensions, retirement benefits, and
84.30 actuarial assumptions in effect before an applicable change;
84.31 (ii) (iii) the level annual dollar contribution needed to
84.32 amortize this unfunded actuarial accrued liability amount by the
84.33 date for full funding in effect prior to before the change shall
84.34 must be calculated using the interest assumption specified in
84.35 section 356.215, subdivision 8, in effect before any applicable
84.36 change;
85.1 (iii) (iv) the unfunded actuarial accrued liability of the
85.2 special fund shall must be determined in accordance with any new
85.3 provisions governing service pensions, retirement benefits, and
85.4 actuarial assumptions and the remaining provisions governing
85.5 service pensions, retirement benefits, and actuarial assumptions
85.6 in effect before an applicable change;
85.7 (iv) (v) the level annual dollar contribution needed to
85.8 amortize the difference between the unfunded actuarial accrued
85.9 liability amount calculated pursuant to subclause (i) under item
85.10 (ii) and the unfunded actuarial accrued liability amount
85.11 calculated pursuant to subclause (iii) under item (iv) over a
85.12 period of 20 years starting December 31 of the year in which the
85.13 change is effective shall must be calculated using the interest
85.14 assumption specified in section 356.215, subdivision 8, in
85.15 effect after any applicable change;
85.16 (v) (vi) the annual amortization contribution calculated
85.17 pursuant to subclause (iv) shall under item (v) must be added to
85.18 the annual amortization contribution calculated pursuant to
85.19 subclause (ii) under items (i) and (iii);
85.20 (vi) (vii) the period in which the unfunded actuarial
85.21 accrued liability amount determined in subclause (iii) item (iv)
85.22 will be amortized by the total annual amortization contribution
85.23 computed pursuant to subclause (v) shall under item (vi) must be
85.24 calculated using the interest assumption specified in section
85.25 356.215, subdivision 8, in effect after any applicable change,
85.26 rounded to the nearest integral number of years, but which shall
85.27 must not exceed a period of 20 years from the end of the year in
85.28 which the determination of the date for full funding using this
85.29 procedure is made and which shall must not be less than the
85.30 period of years beginning in the year in which the determination
85.31 of the date for full funding using this procedure is made and
85.32 ending by the date for full funding in effect before the change;
85.33 (vii) (viii) the period determined pursuant to subclause
85.34 (vi) shall under item (vii) must be added to the date as of
85.35 which the actuarial valuation was prepared and the resulting
85.36 date shall be is the new date for full funding.
86.1 Sec. 7. Minnesota Statutes 2004, section 69.773,
86.2 subdivision 5, is amended to read:
86.3 Subd. 5. MINIMUM MUNICIPAL OBLIGATION. (a) The officers
86.4 of the relief association shall determine the minimum obligation
86.5 of the municipality with respect to the special fund of the
86.6 relief association for the following calendar year prior to on
86.7 or before August 1 of each year in accordance with the
86.8 requirements of this subdivision.
86.9 (b) The minimum obligation of the municipality with respect
86.10 to the special fund shall be is an amount equal to the financial
86.11 requirements of the special fund of the relief association
86.12 determined pursuant to under subdivision 4, reduced by the
86.13 estimated amount of any fire state aid payable pursuant to under
86.14 sections 69.011 to 69.051 reasonably anticipated to be received
86.15 by the municipality for transmittal to the special fund of the
86.16 relief association during the following year and the amount of
86.17 any anticipated contributions to the special fund required by
86.18 the relief association bylaws from the active members of the
86.19 relief association reasonably anticipated to be received during
86.20 the following calendar year. A reasonable amount of anticipated
86.21 fire state aid is an amount that does not exceed the fire state
86.22 aid actually received in the prior year multiplied by the factor
86.23 1.035.
86.24 (c) The officers of the relief association shall certify
86.25 the financial requirements of the special fund of the relief
86.26 association and the minimum obligation of the municipality with
86.27 respect to the special fund of the relief association as
86.28 determined pursuant to under subdivision 4 and this subdivision
86.29 to the governing body of the municipality by August 1 of each
86.30 year. The financial requirements of the relief association and
86.31 the minimum municipal obligation must be included in the
86.32 financial report or financial statement under section 69.051.
86.33 (d) The municipality shall provide for at least the minimum
86.34 obligation of the municipality with respect to the special fund
86.35 of the relief association by tax levy or from any other source
86.36 of public revenue. The municipality may levy taxes for the
87.1 payment of the minimum municipal obligation without any
87.2 limitation as to rate or amount and irrespective of any
87.3 limitations imposed by other provisions of law or charter upon
87.4 the rate or amount of taxation until the balance of the special
87.5 fund or any fund of the relief association has attained a
87.6 specified level. In addition, any taxes levied pursuant to
87.7 under this section shall must not cause the amount or rate of
87.8 any other taxes levied in that year or to be levied in a
87.9 subsequent year by the municipality which are subject to a
87.10 limitation as to rate or amount to be reduced.
87.11 (e) If the municipality does not include the full amount of
87.12 the minimum municipal obligation in its levy for any year, the
87.13 officers of the relief association shall certify that amount to
87.14 the county auditor, who shall spread a levy in the amount of the
87.15 minimum municipal obligation on the taxable property of the
87.16 municipality.
87.17 (f) If the state auditor determines that a municipal
87.18 contribution actually made in a plan year was insufficient under
87.19 section 69.771, subdivision 3, paragraph (c), clause (5), the
87.20 state auditor may request from the relief association or from
87.21 the city a copy of the certifications under this subdivision.
87.22 The relief association or the city, whichever applies, must
87.23 provide the certifications within 14 days of the date of the
87.24 request from the state auditor.
87.25 Sec. 8. Minnesota Statutes 2004, section 69.775, is
87.26 amended to read:
87.27 69.775 INVESTMENTS.
87.28 (a) The special fund assets of the a relief associations
87.29 association governed by sections 69.771 to 69.776 must be
87.30 invested in securities that are authorized investments under
87.31 section 356A.06, subdivision 6 or 7.
87.32 (b) Notwithstanding the foregoing, up to 75 percent of the
87.33 market value of the assets of the special fund, not including
87.34 any money market mutual funds, may be invested in open‑end
87.35 investment companies registered under the federal Investment
87.36 Company Act of 1940, if the portfolio investments of the
88.1 investment companies comply with the type of securities
88.2 authorized for investment under section 356A.06, subdivision 7.
88.3 (c) Securities held by the associations before June 2,
88.4 1989, that do not meet the requirements of this section may be
88.5 retained after that date if they were proper investments for the
88.6 association on that date.
88.7 (d) The governing board of the association may select and
88.8 appoint investment agencies to act for and in its behalf or may
88.9 certify special fund assets for investment by the State Board of
88.10 Investment under section 11A.17.
88.11 (e) The governing board of the association may certify
88.12 general fund assets of the relief association for investment by
88.13 the State Board of Investment in fixed income pools or in a
88.14 separately managed account at the discretion of the State Board
88.15 of Investment as provided in section 11A.14.
88.16 (f) The governing board of the association may select and
88.17 appoint a qualified private firm to measure management
88.18 performance and return on investment, and the firm shall use the
88.19 formula or formulas developed by the state board under section
88.20 11A.04, clause (11).
88.21 Sec. 9. Minnesota Statutes 2004, section 356A.06,
88.22 subdivision 7, is amended to read:
88.23 Subd. 7. EXPANDED LIST OF AUTHORIZED INVESTMENT
88.24 SECURITIES. (a) AUTHORITY. Except to the extent otherwise
88.25 authorized by law or bylaws, a covered pension plan not
88.26 described by subdivision 6, paragraph (a), may invest its assets
88.27 only in accordance with this subdivision.
88.28 (b) SECURITIES GENERALLY. The covered pension plan has
88.29 the authority to purchase, sell, lend, or exchange the
88.30 securities specified in paragraphs (c) to (g) (h), including
88.31 puts and call options and future contracts traded on a contract
88.32 market regulated by a governmental agency or by a financial
88.33 institution regulated by a governmental agency. These
88.34 securities may be owned as units in commingled trusts that own
88.35 the securities described in paragraphs (c) to (g) (h).
88.36 (c) GOVERNMENT OBLIGATIONS. The covered pension plan may
89.1 invest funds in governmental bonds, notes, bills, mortgages, and
89.2 other evidences of indebtedness provided the issue is backed by
89.3 the full faith and credit of the issuer or the issue is rated
89.4 among the top four quality rating categories by a nationally
89.5 recognized rating agency. The obligations in which funds may be
89.6 invested under this paragraph include guaranteed or insured
89.7 issues of (1) the United States, its agencies, its
89.8 instrumentalities, or organizations created and regulated by an
89.9 act of Congress; (2) Canada and its provinces, provided the
89.10 principal and interest is payable in United States dollars; (3)
89.11 the states and their municipalities, political subdivisions,
89.12 agencies, or instrumentalities; (4) the International Bank for
89.13 Reconstruction and Development, the Inter‑American Development
89.14 Bank, the Asian Development Bank, the African Development Bank,
89.15 or any other United States government sponsored organization of
89.16 which the United States is a member, provided the principal and
89.17 interest is payable in United States dollars.
89.18 (d) CORPORATE OBLIGATIONS. The covered pension plan may
89.19 invest funds in bonds, notes, debentures, transportation
89.20 equipment obligations, or any other longer term evidences of
89.21 indebtedness issued or guaranteed by a corporation organized
89.22 under the laws of the United States or any state thereof, or the
89.23 Dominion of Canada or any province thereof if they conform to
89.24 the following provisions:
89.25 (1) the principal and interest of obligations of
89.26 corporations incorporated or organized under the laws of the
89.27 Dominion of Canada or any province thereof must be payable in
89.28 United States dollars; and
89.29 (2) obligations must be rated among the top four quality
89.30 categories by a nationally recognized rating agency.
89.31 (e) OTHER OBLIGATIONS. (1) The covered pension plan may
89.32 invest funds in bankers acceptances, certificates of deposit,
89.33 deposit notes, commercial paper, mortgage participation
89.34 certificates and pools, asset backed securities, repurchase
89.35 agreements and reverse repurchase agreements, guaranteed
89.36 investment contracts, savings accounts, and guaranty fund
90.1 certificates, surplus notes, or debentures of domestic mutual
90.2 insurance companies if they conform to the following provisions:
90.3 (i) bankers acceptances and deposit notes of United States
90.4 banks are limited to those issued by banks rated in the highest
90.5 four quality categories by a nationally recognized rating
90.6 agency;
90.7 (ii) certificates of deposit are limited to those issued by
90.8 (A) United States banks and savings institutions that are rated
90.9 in the highest four quality categories by a nationally
90.10 recognized rating agency or whose certificates of deposit are
90.11 fully insured by federal agencies; or (B) credit unions in
90.12 amounts up to the limit of insurance coverage provided by the
90.13 National Credit Union Administration;
90.14 (iii) commercial paper is limited to those issued by United
90.15 States corporations or their Canadian subsidiaries and rated in
90.16 the highest two quality categories by a nationally recognized
90.17 rating agency;
90.18 (iv) mortgage participation or pass through certificates
90.19 evidencing interests in pools of first mortgages or trust deeds
90.20 on improved real estate located in the United States where the
90.21 loan to value ratio for each loan as calculated in accordance
90.22 with section 61A.28, subdivision 3, does not exceed 80 percent
90.23 for fully amortizable residential properties and in all other
90.24 respects meets the requirements of section 61A.28, subdivision
90.25 3;
90.26 (v) collateral for repurchase agreements and reverse
90.27 repurchase agreements is limited to letters of credit and
90.28 securities authorized in this section;
90.29 (vi) guaranteed investment contracts are limited to those
90.30 issued by insurance companies or banks rated in the top four
90.31 quality categories by a nationally recognized rating agency or
90.32 to alternative guaranteed investment contracts where the
90.33 underlying assets comply with the requirements of this
90.34 subdivision;
90.35 (vii) savings accounts are limited to those fully insured
90.36 by federal agencies; and
91.1 (viii) asset backed securities must be rated in the top
91.2 four quality categories by a nationally recognized rating agency.
91.3 (2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do
91.4 not apply to certificates of deposit and collateralization
91.5 agreements executed by the covered pension plan under clause
91.6 (1), item (ii).
91.7 (3) In addition to investments authorized by clause (1),
91.8 item (iv), the covered pension plan may purchase from the
91.9 Minnesota Housing Finance Agency all or any part of a pool of
91.10 residential mortgages, not in default, that has previously been
91.11 financed by the issuance of bonds or notes of the agency. The
91.12 covered pension plan may also enter into a commitment with the
91.13 agency, at the time of any issue of bonds or notes, to purchase
91.14 at a specified future date, not exceeding 12 years from the date
91.15 of the issue, the amount of mortgage loans then outstanding and
91.16 not in default that have been made or purchased from the
91.17 proceeds of the bonds or notes. The covered pension plan may
91.18 charge reasonable fees for any such commitment and may agree to
91.19 purchase the mortgage loans at a price sufficient to produce a
91.20 yield to the covered pension plan comparable, in its judgment,
91.21 to the yield available on similar mortgage loans at the date of
91.22 the bonds or notes. The covered pension plan may also enter
91.23 into agreements with the agency for the investment of any
91.24 portion of the funds of the agency. The agreement must cover
91.25 the period of the investment, withdrawal privileges, and any
91.26 guaranteed rate of return.
91.27 (f) CORPORATE STOCKS. The covered pension plan may
91.28 invest funds in stocks or convertible issues of any corporation
91.29 organized under the laws of the United States or the states
91.30 thereof, any corporation organized under the laws of the
91.31 Dominion of Canada or its provinces, or any corporation listed
91.32 on the New York Stock Exchange or the American Stock Exchange an
91.33 exchange regulated by an agency of the United States or of the
91.34 Canadian national government, if they conform to the following
91.35 provisions:
91.36 (1) the aggregate value of corporate stock investments, as
92.1 adjusted for realized profits and losses, must not exceed 85
92.2 percent of the market or book value, whichever is less, of a
92.3 fund, less the aggregate value of investments according to
92.4 subdivision 6 paragraph (h);
92.5 (2) investments must not exceed five percent of the total
92.6 outstanding shares of any one corporation.
92.7 (g) EXCHANGE TRADED FUNDS. The covered pension plan may
92.8 invest funds in exchange traded funds, subject to the maximums,
92.9 the requirements, and the limitations set forth in paragraph
92.10 (d), (e), (f), or (h), whichever applies.
92.11 (h) OTHER INVESTMENTS. (1) In addition to the
92.12 investments authorized in paragraphs (b) to (f) (g), and subject
92.13 to the provisions in clause (2), the covered pension plan may
92.14 invest funds in:
92.15 (i) venture capital investment businesses through
92.16 participation in limited partnerships and corporations;
92.17 (ii) real estate ownership interests or loans secured by
92.18 mortgages or deeds of trust through investment in limited
92.19 partnerships, bank sponsored collective funds, trusts, and
92.20 insurance company commingled accounts, including separate
92.21 accounts;
92.22 (iii) regional and mutual funds through bank sponsored
92.23 collective funds and open‑end investment companies registered
92.24 under the Federal Investment Company Act of 1940;
92.25 (iv) resource investments through limited partnerships,
92.26 private placements, and corporations; and
92.27 (v) international securities.
92.28 (2) The investments authorized in clause (1) must conform
92.29 to the following provisions:
92.30 (i) the aggregate value of all investments made according
92.31 to clause (1) may not exceed 35 percent of the market value of
92.32 the fund for which the covered pension plan is investing;
92.33 (ii) there must be at least four unrelated owners of the
92.34 investment other than the state board for investments made under
92.35 clause (1), item (i), (ii), (iii), or (iv);
92.36 (iii) covered pension plan participation in an investment
93.1 vehicle is limited to 20 percent thereof for investments made
93.2 under clause (1), item (i), (ii), (iii), or (iv); and
93.3 (iv) covered pension plan participation in a limited
93.4 partnership does not include a general partnership interest or
93.5 other interest involving general liability. The covered pension
93.6 plan may not engage in any activity as a limited partner which
93.7 creates general liability.
93.8 Sec. 10. Minnesota Statutes 2004, section 424A.02,
93.9 subdivision 3, is amended to read:
93.10 Subd. 3. FLEXIBLE SERVICE PENSION MAXIMUMS. (a) Annually
93.11 on or before August 1 as part of the certification of the
93.12 financial requirements and minimum municipal obligation
93.13 determined under section 69.772, subdivision 4, or 69.773,
93.14 subdivision 5, as applicable, the secretary or some other
93.15 official of the relief association designated in the bylaws of
93.16 each relief association shall calculate and certify to the
93.17 governing body of the applicable qualified municipality the
93.18 average amount of available financing per active covered
93.19 firefighter for the most recent three‑year period. The amount
93.20 of available financing shall include any amounts of fire state
93.21 aid received or receivable by the relief association, any
93.22 amounts of municipal contributions to the relief association
93.23 raised from levies on real estate or from other available
93.24 revenue sources exclusive of fire state aid, and one‑tenth of
93.25 the amount of assets in excess of the accrued liabilities of the