Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10629
subdivision 14;
256B.055, by adding a subdivision; 256B.056, subdivision 4; 256B.057,
subdivision 9; 256B.0625, subdivisions 8, 8a, 8b, 18a, 22, 31, by adding
subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as amended; 256B.0754,
by adding a subdivision; 256B.0915, subdivision 3b; 256B.19, subdivision 1c;
256B.69, subdivisions 20, as amended, 27, by adding subdivisions; 256B.692, subdivision
1; 256B.75; 256B.76, subdivisions 2, 4, by adding a subdivision; 256D.0515;
256J.20, subdivision 3; 256J.24, subdivision 10; 256J.37, subdivision 3a;
256L.02, subdivision 3; 256L.03, subdivision 3, by adding a subdivision;
256L.05, by adding a subdivision; 256L.07, by adding a subdivision; 256L.12,
subdivisions 5, 6, 9; 256L.15, subdivision 1; 626.556, subdivision 10i;
626.557, subdivision 9d; Minnesota Statutes 2009 Supplement, sections 62J.495,
subdivisions 1a, 3, by adding a subdivision; 144.0724, subdivision 11; 157.16,
subdivision 3; 245C.27, subdivision 1; 252.025, subdivision 7; 252.27,
subdivision 2a; 256.045, subdivision 3; 256.969, subdivision 3a; 256B.0625,
subdivisions 9, 13e; 256B.0653, subdivision 5; 256B.0911, subdivision 1a; 256B.0915,
subdivision 3a; 256B.69, subdivision 23; 256B.76, subdivision 1; 256B.766;
256D.03, subdivision 3, as amended; 256J.425, subdivision 3; 256L.03,
subdivision 5; 256L.11, subdivision 1; 327.15, subdivision 3; Laws 2005, First
Special Session chapter 4, article 8, section 66, as amended; Laws 2009,
chapter 79, article 3, section 18; article 5, sections 17; 18; 22; 75,
subdivision 1; 78, subdivision 5; article 13, sections 3, subdivisions 1, as
amended, 3, as amended, 4, as amended, 8, as amended; 5, subdivision 8, as
amended; Laws 2009, chapter 173, article 1, section 17; Laws 2010, chapter 200,
article 1, sections 12; 16; 21; article 2, section 2, subdivisions 1, 8;
proposing coding for new law in Minnesota Statutes, chapters 62A; 62D; 62E;
62J; 62Q; 144; 245; 254B; 256; 256B; repealing Minnesota Statutes 2008,
sections 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03,
subdivisions 3a, 3b, 5, 6, 7, 8; Minnesota Statutes 2009 Supplement, section
256D.03, subdivision 3; Laws 2009, chapter 79, article 7, section 26,
subdivision 3; Laws 2010, chapter 200, article 1, sections 12, subdivisions 1,
2, 3, 4, 5, 6, 7, 8, 9; 18; 19."
With the
recommendation that when so amended the bill pass and be re-referred to the
Committee on Ways and Means.
The report was adopted.
Lenczewski from the Committee on Taxes to which was referred:
H. F. No. 2849, A bill for an act relating to
business development; providing for a comparative study of state laws affecting
small business start-ups in Minnesota and Wisconsin.
Reported the same back with the following amendments:
Page 1, line 16, after "taxes" insert ",
including special tax provisions that affect the business' ability to start
operations"
With the recommendation that when so amended the bill pass.
The report was adopted.
Pelowski from the Committee on State and Local Government
Operations Reform, Technology and Elections to which was referred:
H. F. No. 2958, A bill for an act relating to
state government; making changes to the Open Meeting Law; amending Minnesota
Statutes 2008, sections 13D.01, subdivisions 1, 3, 4, 6, by adding a
subdivision; 13D.021, subdivision 1; 13D.04, subdivisions 2, 6.
Reported the same back with the following amendments:
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10630
Page 1, delete
section 1, and insert:
"Section 1.
Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to
read:
Subdivision 1. In executive branch, local government;
open meetings; definitions. (a)
All meetings, including executive sessions, of a public body
must be open to the public.
(a) of a state
(1) agency,
(2) board,
(3) commission, or
(4) department,
when
required or permitted by law to transact public business in a meeting;
(b) of the governing body of a
(1) school district however organized,
(2) unorganized territory,
(3) county,
(4) statutory or home rule charter city,
(5) town, or
(6) other public body;
(c) of any
(1) committee,
(2) subcommittee,
(3) board,
(4) department, or
(5) commission,
of a public
body; and
(d) of the governing body or a committee of:
(1) a statewide public pension plan defined in section
356A.01, subdivision 24; or
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10631
(2) a local
public pension plan governed by section 69.77, sections 69.771 to 69.775, or
chapter 354A, 422A, or 123B.
(b) "Governmental power" means the power to
regulate, license, enact ordinances, make public policy, or determine the use
of public resources or otherwise transact public business.
(c) "Meeting" means a quorum of the members of a
public body transacting public business.
(d) "Public body" means:
(1) a governmental multimember state, regional, or local
appointed or elected body with governmental powers; a committee, subcommittee,
board, commission, or other subset of the body with governmental powers;
(2) a multimember advisory group, however named, established
by a body or a subset of a body described in clause (1) for the purpose of
providing the body advice or recommendations on its exercise of governmental
powers on a matter that is or may be pending before the body or subset of the
body. This does not include an advisory
group comprised solely of the body's employees, students, or contractors. "Established" means the body or
subset of the body that (i) provides for the multimember advisory group to be
formed under resolution or ordinance or order and makes the appointments
directly, and (ii) provides any public resources for the group's work;
(3) a multimember advisory body established under section
15.014 or other state law; or
(4) the governing body of a statewide public pension plan as
defined by section 356A.01, subdivision 24, or the governing body of a local
public pension plan under section 69.77, sections 69.771 to 69.775, or chapter
354A, 422A, or 423B.
(e) Meetings of the legislature are governed by section 3.055."
Page 5, after line 5, insert:
"Sec. 9.
Minnesota Statutes 2008, section 13D.06, is amended by adding a
subdivision to read:
Subd. 5.
Advisory groups. A person serving on an advisory group,
as defined in section 13D.01, subdivision 1, paragraph (c), clause (2), is not
subject to this section."
Correct the title numbers accordingly
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Rules and Legislative Administration.
The report was adopted.
Solberg from the Committee on Ways and Means to which was
referred:
H. F. No. 3033, A bill for an act relating to
energy; modifying fee for storage of spent nuclear fuel; establishing rebate
program for solar photovoltaic modules; appropriating money; amending Minnesota
Statutes 2008, section 116C.779, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 116C.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10632
Carlson from the
Committee on Finance to which was referred:
H. F. No. 3281,
A bill for an act relating to retirement; various retirement plans; increasing
certain contribution rates; suspending certain post-retirement adjustments;
reducing certain postretirement adjustment increase rates; reducing interest
rates on refunds; reducing deferred annuity augmentation rates; eliminating
interest on reemployed annuitant earnings limitation deferred accounts;
increasing certain vesting requirements; increasing certain early retirement
reduction rates; reducing certain benefit accrual rates; extending certain
amortization periods; making changes of an administrative nature for retirement
plans administered by the Minnesota State Retirement Association; revising
insurance withholding for certain retired public employees; authorizing state
patrol plan service credit for leave procedures; addressing plan coverage
errors and omitted contributions; revising unlawful discharge annuity repayment
requirements; requiring employment unit accommodation of daily valuation of
investment accounts; eliminating administrative fee maximum for the
unclassified state employees retirement program; making changes of an
administrative nature in the general employees retirement plan of the Public
Employees Retirement Association, the public employees police and fire
retirement plan, and the defined contribution retirement plan; making various
administrative modifications in the voluntary statewide lump-sum volunteer
firefighter retirement plan of the Public Employees Retirement Association;
revising purchase of salary credit procedures in certain partial salary
situations; adding new partial salary credit purchase authority for partial
paid medical leaves and budgetary leaves; redefining TRA allowable service
credit; defining annual base salary; requiring base salary reporting by
TRA-covered employing units; making changes of an administrative nature in the
Minnesota State Colleges and Universities System individual retirement account
plan; setting deadline dates for actuarial reporting; extending and revising an
early retirement incentive program; permitting the court-ordered revocation of
an optional annuity election in certain marriage dissolutions; transfer of the
administrative functions of the Minneapolis Employees Retirement Fund to the
Public Employees Retirement Association; creation of MERF consolidation account
within the Public Employees Retirement Association; making various technical
corrections relating to volunteer fire relief associations; revising
break-in-service return to firefighting authorizations; authorizing Minnesota
deferred compensation plan service pension transfers; revising payout defaults
in survivor benefits; authorizing corrections of certain special fund deposits;
requiring a retirement fund investment authority study; authorizing certain
bylaw amendments; making technical changes; appropriating money; amending
Minnesota Statutes 2008, sections 3A.02, subdivision 4; 3A.07; 11A.04; 11A.23,
subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316,
subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41,
subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04,
subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12,
subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by
adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1;
352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1,
2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions
4, 9, by adding a subdivision; 352D.02, subdivisions 1, 1c, 2, 3; 352D.03;
352D.04, subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3;
352D.065, subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01,
subdivisions 2b, 2d, by adding subdivisions; 353.0161, subdivision 2; 353.03,
subdivision 1; 353.05; 353.27, as amended; 353.29, subdivision 1; 353.30,
subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6;
353.37, subdivisions 1, 2, 3, 3a, 4, 5; 353.46, subdivisions 2, 6; 353.64,
subdivision 7; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 353.71,
subdivisions 1, 2, 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2;
353.88; 353D.01, subdivision 2; 353D.03, subdivision 1; 353D.04, subdivisions
1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 353F.025,
subdivisions 1, 2; 353F.03; 354.05, by adding a subdivision; 354.07,
subdivision 5; 354.091; 354.42, subdivisions 3, 7, by adding subdivisions;
354.52, subdivision 6, by adding a subdivision; 354.66, subdivision 3; 354.71;
354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, by adding a subdivision;
354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1;
354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 354A.39; 354B.25,
subdivisions 1, 3; 354C.14; 355.095, subdivision 1; 356.214, subdivision 1;
356.215, subdivisions 3, 8; 356.24, subdivision 1; 356.30, subdivisions 1, 3;
356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions 2, 4; 356.315,
subdivision 5; 356.351, subdivision 1; 356.407, subdivision 2; 356.431, subdivision
1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50, subdivision 4;
356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2, 3, 7, 8;
356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511, subdivision
3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by adding a
subdivision;
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10633
518.58,
subdivisions 3, 4; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011,
subdivision 1; 69.031, subdivision 5; 69.772, subdivision 6; 69.773,
subdivision 6; 352.01, subdivision 2b; 352.75, subdivision 4; 352.95,
subdivision 2; 352B.011, subdivision 3; 353.01, subdivisions 2, 2a, 16; 353.06;
353.27, subdivisions 2, 3, 7; 353.33, subdivision 1; 353.371, subdivision 4;
353.65, subdivisions 2, 3; 353F.02, subdivision 4; 353G.05, subdivision 2;
353G.06, subdivision 1; 353G.08; 353G.09, subdivision 3; 353G.11, subdivision
1, by adding a subdivision; 354.42, subdivision 2; 354.47, subdivision 1;
354.49, subdivision 2; 354.52, subdivision 4b; 354.55, subdivision 11; 354A.12,
subdivision 2a; 356.20, subdivision 2; 356.215, subdivision 11; 356.32,
subdivision 2; 356.351, subdivision 2; 356.401, subdivision 3; 356.415,
subdivisions 1, 2, by adding subdivisions; 356.96, subdivisions 1, 5; 423A.02,
subdivision 3; 424A.01, subdivisions 1, 6; 424A.015, by adding a subdivision;
424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05, subdivision
3, by adding a subdivision; 424A.08; 480.181, subdivision 2; Laws 2009, chapter
169, article 4, section 49; article 5, section 2; proposing coding for new law
in Minnesota Statutes, chapters 352B; 353; 353G; 356; repealing Minnesota
Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 352.91,
subdivision 5; 353.01, subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03,
subdivision 2; 353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01,
subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02;
422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8;
422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09;
422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14,
subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1,
2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7;
422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23,
subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25;
Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08,
subdivision 5; 424A.001, subdivision 6; Laws 2009, chapter 169, article 10,
section 32.
Reported the
same back with the following amendments:
Delete
everything after the enacting clause and insert:
"ARTICLE
1
FINANCIAL
SUSTAINABILITY PROVISIONS
Section
1. Minnesota Statutes 2008, section
3A.02, subdivision 4, is amended to read:
Subd. 4. Deferred
annuities augmentation. (a) The
deferred retirement allowance of any former legislator must be augmented as
provided herein.
(b) The
required reserves applicable to the deferred retirement allowance, determined
as of the date the benefit begins to accrue using an appropriate mortality
table and an interest assumption of six percent, must be augmented from the
first of the month following the termination of active service, or July 1,
1973, whichever is later, to the first day of the month in which the allowance
begins to accrue, at the following annually compounded rate or rates:
(1) five
percent until January 1, 1981;
(2) three
percent from January 1, 1981, or from the first day of the month following the
termination of active service, whichever is later, until January 1 of the year
in which the former legislator attains age 55 or until January 1, 2012,
whichever is earlier; and
(3) five
percent from the period end date under clause (2) to until the
effective date of retirement or until January 1, 2012, whichever is
earlier; and
(4) two
percent after December 31, 2011.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10634
Sec. 2. Minnesota Statutes 2008, section 352.113,
subdivision 1, is amended to read:
Subdivision 1. Age
and service requirements. (a) An
employee covered by the system, who is less than normal retirement age and who
becomes totally and permanently disabled after three or more years of allowable
service if employed before July 1, 2010, or after five or more years of
allowable service if employed after June 30, 2010, is entitled to
a disability benefit in an amount provided in subdivision 3.
(b) If the disabled employee's
state service has terminated at any time, the employee must have at least two
years of allowable service after last becoming a state employee covered by the
system.
(c) Refunds may be repaid under
section 352.23 before the effective accrual date of the disability benefit
under subdivision 2.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 3. Minnesota Statutes 2008, section 352.115,
subdivision 1, is amended to read:
Subdivision 1. Age
and service requirements. After
separation from state service, any employee (1) who has attained the age of at
least 55 years and who is entitled to credit for at least three years allowable
service if employed before July 1, 2010, or after five or more years of
allowable service if employed after June 30, 2010, or (2) who has received
credit for at least 30 years allowable service regardless of age, is entitled
upon application to a retirement annuity.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 4. Minnesota Statutes 2008, section 352.12,
subdivision 2, is amended to read:
Subd. 2. Surviving
spouse benefit. (a) If an employee
or former employee has credit for at least three years allowable service if
the employee was employed before July 1, 2010, or for at least five years of
allowable service if the employee was employed after June 30, 2010, and
dies before an annuity or disability benefit has become payable,
notwithstanding any designation of beneficiary to the contrary, the surviving
spouse of the employee may elect to receive, in lieu of the refund with
interest under subdivision 1, an annuity equal to the joint and 100 percent
survivor annuity which the employee or former employee could have qualified for
on the date of death.
(b) If the employee was
under age 55 and has credit for at least 30 years of allowable service on the
date of death, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the employee and surviving spouse on
the date of death. The annuity is
payable using the full early retirement reduction under section 352.116,
subdivision 1, paragraph (a), to age 55 and one-half of the early retirement
reduction from age 55 to the age payment begins.
(c) If the employee was
under age 55 and has credit for at least three years of allowable service
credit on the date of death if the employee was employed before July 1,
2010, or for at least five years of allowable service if the employee was
employed after June 30, 2010, but did not yet qualify for retirement, the
surviving spouse may elect to receive a 100 percent joint and survivor annuity
based on the age of the employee and surviving spouse at the time of
death. The annuity is payable using the
full early retirement reduction under section 352.116, subdivision 1 or 1a, to
age 55 and one-half of the early retirement reduction from age 55 to the age
payment begins.
(d) The surviving spouse
eligible for benefits under paragraph (a) may apply for the annuity at any time
after the date on which the employee or former employee would have attained the
required age for retirement based on the allowable service earned. The surviving spouse eligible for surviving
spouse benefits under paragraph (b) or (c) may apply for the annuity at any
time after the employee's death. The annuity
must be computed under sections
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10635
352.115,
subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 1a, and 3. Sections 352.22, subdivision 3, and 352.72,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision. The annuity must
cease with the last payment received by the surviving spouse in the lifetime of
the surviving spouse, or upon expiration of a term certain benefit payment to a
surviving spouse under subdivision 2a.
An amount equal to the excess, if any, of the accumulated contributions
credited to the account of the deceased employee in excess of the total of the
benefits paid and payable to the surviving spouse must be paid to the deceased
employee's or former employee's last designated beneficiary or, if none, as
specified under subdivision 1.
(e) Any
employee or former employee may request in writing, with the signed consent of
the spouse, that this subdivision not apply and that payment be made only to a
designated beneficiary as otherwise provided by this chapter.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2008, section 352.22,
subdivision 2, is amended to read:
Subd. 2. Amount
of refund. Except as provided in
subdivision 3, the refund payable to a person who ceased to be a state employee
by reason of a termination of state service is an amount equal to employee
accumulated contributions plus interest at the rate of six percent per year
compounded daily from the date that the contribution was made until June 30,
2011, or until the date on which the refund is paid, whichever is
earlier, and at the rate of four percent per year compounded daily from the
date that the contribution was made or from July 1, 2011, whichever is later,
until the date on which the refund is paid.
Included with the refund is any interest paid as part of repayment of a
past refund, plus interest thereon from the date of repayment.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2008, section 352.22,
subdivision 3, is amended to read:
Subd. 3. Deferred
annuity. (a) An employee who has at
least three years of allowable service if employed before July 1, 2010, or
who has at least five years of allowable service if employed after June 30,
2010, when termination occurs may elect to leave the accumulated
contributions in the fund and thereby be entitled to a deferred retirement
annuity. The annuity must be computed
under the law in effect when state service terminated, on the basis of the
allowable service credited to the person before the termination of service.
(b) An
employee on layoff or on leave of absence without pay, except a leave of
absence for health reasons, and who does not return to state service must have
an annuity, deferred annuity, or other benefit to which the employee may become
entitled computed under the law in effect on the employee's last working day.
(c) No
application for a deferred annuity may be made more than 60 days before the
time the former employee reaches the required age for entitlement to the
payment of the annuity. The deferred
annuity begins to accrue no earlier than 60 days before the date the
application is filed in the office of the system, but not (1) before the date
on which the employee reaches the required age for entitlement to the annuity
nor (2) before the day following the termination of state service in a position
which is not covered by the retirement system.
(d)
Application for the accumulated contributions left on deposit with the fund may
be made at any time following the date of the termination of service.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10636
Sec. 7. Minnesota Statutes 2008, section 352.72,
subdivision 1, is amended to read:
Subdivision
1. Entitlement
to annuity. (a) Any person who has
been an employee covered by a retirement system listed in paragraph (b) is
entitled when qualified to an annuity from each fund if total allowable service
in all funds or in any two of these funds totals three or more years if
employed before July 1, 2010, or totals five or more years if employed after
June 30, 2010.
(b) This
section applies to the Minnesota State Retirement System, the Public Employees
Retirement Association including the Public Employees Retirement Association
police and fire fund, the Teachers Retirement Association, the State Patrol
Retirement Association, or any other public employee retirement system in the
state with a similar provision, except as noted in paragraph (c).
(c) This
section does not apply to other funds providing benefits for police officers or
firefighters.
(d) No
portion of the allowable service upon which the retirement annuity from one
fund is based shall be again used in the computation for benefits from another
fund. No refund may have been taken from
any one of these funds since service entitling the employee to coverage under
the system or the employee's membership in any of the associations last
terminated. The annuity from each fund
must be determined by the appropriate provisions of the law except that the
requirement that a person must have at least three a specific number
of years of allowable service in the respective system or
association does not apply for the purposes of this section if the combined
service in two or more of these funds equals three or more years at
least the longest period of allowable service of any of the applicable
retirement plans.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2008, section 352.72,
subdivision 2, is amended to read:
Subd. 2. Computation
of deferred annuity. (a) The deferred
annuity, if any, accruing under subdivision 1, or section 352.22, subdivision
3, must be computed as provided in section 352.22, subdivision 3, on the basis
of allowable service before termination of state service and augmented as
provided herein. The required reserves
applicable to a deferred annuity or to an annuity for which a former employee
was eligible but had not applied or to any deferred segment of an annuity must
be determined as of the date the benefit begins to accrue and augmented by interest
compounded annually from the first day of the month following the month in
which the employee ceased to be a state employee, or July 1, 1971, whichever is
later, to the first day of the month in which the annuity begins to accrue. The rates of interest used for this purpose
must be five percent compounded annually until January 1, 1981, and three
percent compounded annually thereafter until January 1 of the year following
the year in which the former employee attains age 55 or until January 1,
2012, whichever is earlier, and from that date the January 1 next
following the attainment of age 55 to the effective date of retirement
or until January 1, 2012, whichever is earlier, the rate is five
percent compounded annually if the employee became an employee before July 1,
2006, and at 2.5 percent compounded annually until January 1, 2012, if
the employee becomes an employee after June 30, 2006, and two percent
compounded annually after December 31, 2011, irrespective of when the employee
became a state employee. If a person
has more than one period of uninterrupted service, the required reserves
related to each period must be augmented by interest under this
subdivision. The sum of the augmented
required reserves so determined is the present value of the annuity. "Uninterrupted service" for the
purpose of this subdivision means periods of covered employment during which
the employee has not been separated from state service for more than two
years. If a person repays a refund, the
service restored by the repayment must be considered continuous with the next
period of service for which the employee has credit with this system. The formula percentages used for each period
of uninterrupted service must be those applicable to a new employee. The mortality table and interest assumption
used to compute the annuity must be those in effect when the employee files
application for annuity. This section
does not reduce the annuity otherwise payable under this chapter.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10637
(b) The retirement
annuity or disability benefit of, or the survivor benefit payable on behalf of,
a former state employee who terminated service before July 1, 1997, which is
not first payable until after June 30, 1997, must be increased on an actuarial
equivalent basis to reflect the change in the postretirement interest rate
actuarial assumption under section 356.215, subdivision 8, from five percent to
six percent under a calculation procedure and the tables adopted by the board
and approved by the actuary retained under section 356.214.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2009 Supplement, section
352.75, subdivision 4, is amended to read:
Subd. 4. Existing
deferred retirees. Any former member
of the former Metropolitan Transit Commission-Transit Operating Division
employees retirement fund is entitled to a retirement annuity from the
Minnesota State Retirement System if the employee:
(1) is not
an active employee of the Transit Operating Division of the former Metropolitan
Transit Commission on July 1, 1978; (2) has at least ten years of active
continuous service with the Transit Operating Division of the former
Metropolitan Transit Commission as defined by the former Metropolitan Transit
Commission-Transit Operating Division employees retirement plan document in
effect on December 31, 1977; (3) has not received a refund of contributions;
(4) has not retired or begun receiving an annuity or benefit from the former
Metropolitan Transit Commission-Transit Operating Division employees retirement
fund; (5) is at least 55 years old; and (6) submits a valid application for a
retirement annuity to the executive director of the Minnesota State Retirement
System.
The person
is entitled to a retirement annuity in an amount equal to the normal old age
retirement allowance calculated under the former Metropolitan Transit
Commission-Transit Operating Division employees retirement fund plan document
in effect on December 31, 1977, subject to an early retirement reduction or
adjustment in amount on account of retirement before the normal retirement age
specified in that former Metropolitan Transit Commission-Transit Operating
Division employees retirement fund plan document.
The deferred
retirement annuity of any person to whom this subdivision applies must be
augmented. The required reserves
applicable to the deferred retirement annuity, determined as of the date the
allowance begins to accrue using an appropriate mortality table and an interest
assumption of five percent, must be augmented by interest at the rate of five
percent per year compounded annually from January 1, 1978, to January 1, 1981, and
three percent per year compounded annually from January 1, 1981, until the
date that the annuity begins to accrue or June 30, 2011, whichever is earlier,
and two percent after June 30, 2011, to the first day of the month in which
the annuity begins to accrue. After the
commencement of the retirement annuity, the annuity is eligible for
postretirement adjustments under section 356.415. On applying for a retirement annuity under
this subdivision, the person is entitled to elect a joint and survivor optional
annuity under section 352.116, subdivision 3.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2008, section 352.93,
subdivision 1, is amended to read:
Subdivision
1. Basis
of annuity; when to apply. After
separation from state service, an employee covered under section 352.91 who has
reached age 55 years and has credit for at least three years of covered
correctional service or a combination of covered correctional service and
general state employees state retirement plan allowable service
if first employed as a state employee before July 1, 2010, or has credit for
at least ten years of covered correctional service or a combination of covered
correctional service and general state employees retirement plan allowable
service if first employed as a state employee after June 30, 2010, is
entitled upon application to a retirement annuity under this section, based
only on covered correctional employees' service. Application may be made no earlier than 60
days before the date the employee is eligible to retire by reason of both age
and service requirements.
EFFECTIVE DATE. This section
is effective the day following final enactment.
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Sec. 11. Minnesota Statutes 2008, section 352.93,
subdivision 2a, is amended to read:
Subd. 2a. Early
retirement. Any covered correctional
employee who becomes at least 50 years old and who has at least three years of
allowable service if first employed as a correctional state employee before
July 1, 2010, or has credit for at least ten years of allowable service if
first employed as a correctional state employee after June 30, 2010, is
entitled upon application to a reduced retirement annuity equal to the annuity
calculated under subdivision 2, reduced by two-tenths of one percent for each
month that the correctional employee is under age 55 at the time of retirement
if first employed as a correctional state employee before July 1, 2010, and if
retired before July 1, 2015, or reduced by 0.417 percent for each month that
the correctional employee is under age 55 at the time of retirement if first
employed as a correctional state employee after June 30, 2010, or if first
employed as a correctional state employee before July 1, 2010, and if retired
after June 30, 2015.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2008, section 352.93,
subdivision 3a, is amended to read:
Subd. 3a. Optional
annuities. The board may establish
optional annuity forms to pay a higher amount from the date of retirement until
an employee is first eligible to draw Social Security benefits, reaches age
65, or up to reaches the age the employee is eligible to
receive unreduced Social Security benefits, at which time the monthly benefits
must be reduced. The optional annuity
forms must be actuarially equivalent to the normal single life annuity form
provided in subdivision 2. The optional
annuity forms must be approved certified as actuarially equivalent by
the actuary retained under section 356.214.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2008, section 352.931,
subdivision 1, is amended to read:
Subdivision
1. Surviving
spouse benefit. (a) If the
correctional employee was at least age 50, has credit for at least three years
of allowable service if first employed as a correctional state employee
before July 1, 2010, or has credit for at least ten years of allowable service
if first employed as a correctional state employee after
June 30, 2010, and dies before an annuity or disability benefit
has become payable, notwithstanding any designation of beneficiary to the
contrary, the surviving spouse of the employee may elect to receive, in lieu of
the refund under section 352.12, subdivision 1, an annuity for life equal to
the joint and 100 percent survivor annuity which the employee could have
qualified for had the employee terminated service on the date of death. The election may be made at any time after
the date of death of the employee. The
surviving spouse benefit begins to accrue as of the first of the month next
following the date on which the application for the benefit was filed.
(b) If the
employee was under age 50, dies, and had credit for at least three years of
allowable service credit on the date of death if first employed as a
correctional state employee before July 1, 2010, or had credit for at least ten
years of allowable service on the date of death if first employed as a
correctional state employee after June 30, 2010, but did not yet qualify
for retirement, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the employee and surviving spouse at
the time of death. The annuity is
payable using the early retirement reduction under section 352.93, subdivision
2a, to age 50, and one-half of the early retirement reduction from age 50 to
the age payment begins. The surviving
spouse eligible for surviving spouse benefits under this paragraph may apply
for the annuity at any time after the employee's death. Sections 352.22, subdivision 3, and 352.72,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision.
(c) The
annuity must cease with the last payment received by the surviving spouse in
the lifetime of the surviving spouse.
Any employee may request in writing, with the signed consent of the
spouse, that this subdivision not apply and that payment be made only to a
designated beneficiary as otherwise provided by this chapter.
EFFECTIVE DATE. This section
is effective the day following final enactment.
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Sec. 14. Minnesota Statutes 2009 Supplement, section
352.95, subdivision 2, is amended to read:
Subd. 2. Regular
disability; computation of benefit. A
covered correctional employee who was hired before July 1, 2009, after
rendering at least one year of covered correctional service, or a covered
correctional employee who was first hired after June 30, 2009, after rendering
at least three years of covered correctional plan service if first employed
as a correctional state employee before July 1, 2010, or after rendering at
least ten years of covered correctional plan service if first employed as a
correctional state employee after June 30, 2010, and who is determined to
have a regular disability, physical or psychological, as defined under section
352.01, subdivision 17c, is entitled to a regular disability benefit. The regular disability benefit must be based
on covered correctional service only.
The regular disability benefit must be computed as provided in section
352.93, subdivisions 1 and 2. The
regular disability benefit of a covered correctional employee who was first
hired before July 1, 2009, and who is determined to have a regular disability,
physical or psychological, under this subdivision must be computed as though
the employee had at least 15 years of covered correctional service.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 15. Minnesota Statutes 2008, section 352B.02, as
amended by Laws 2009, chapter 101, article 2, section 109; and Laws 2009,
chapter 169, article 1, section 23; article 2, section 16; and article 4,
sections 3 and 4, is amended to read:
352B.02 STATE PATROL RETIREMENT FUND.
Subdivision 1. Fund
created; membership. A State Patrol
retirement fund is established. Its
membership consists of all persons defined in section 352B.011, subdivision
10.
Subd. 1a. Member
contributions. (a) The member
contribution is 10.40 percent the following percentage of the
member's salary.:
(1) before the first day of the first pay period
beginning after July 1, 2011 10.40
percent
(2) on or after the first day of the first pay period
beginning after July 1, 2011 12.40
percent
(b) These contributions must
be made by deduction from salary as provided in section 352.04, subdivision 4.
Subd. 1b. Salary
deductions. Member contribution
amounts must be deducted each pay period by the department head, who shall have
the total amount of the deductions paid to the commissioner of management and
budget for deposit in the State Patrol retirement fund, and have a detailed
report of all deductions made each pay period to the executive director of the
Minnesota State Retirement System.
Subd. 1c. Employer
contributions. (a) In addition to
member contributions, department heads shall pay a sum equal to 15.60 percent
the specified percentage of the salary upon which deductions were made,
which constitutes the employer contribution to the fund. as follows:
(1) before the first day of the first pay period
beginning after July 1, 2011 15.60
percent
(2) on or after the first day of the first pay period
beginning after July 1, 2011 18.60
percent
(b) Department contributions
must be paid out of money appropriated to departments for this purpose.
Subd. 1d. Fund
revenue and expenses. The amounts
provided for in this section must be credited to the State Patrol retirement
fund. All money received must be
deposited by the commissioner of management and budget in the State Patrol
retirement fund. The fund must be used
to pay the administrative expenses of the retirement fund, and the benefits and
annuities provided in this chapter.
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Subd. 1e. Audit;
actuarial valuation. (a) The
legislative auditor shall audit the fund.
(b) Any actuarial valuation of the
fund required under section 356.215 must be prepared by the actuary retained under
section 356.214.
(c) Any approved actuary retained by
the executive director under section 352.03, subdivision 6, may perform
actuarial valuations and experience studies to supplement those performed by
the actuary retained under section 356.214.
Any supplemental actuarial valuation or experience studies must be filed
with the executive director of the Legislative Commission on Pensions and
Retirement.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 16.
Minnesota Statutes 2008, section 352B.08, subdivision 1, is amended to
read:
Subdivision 1. Eligibility; when to apply; accrual. (a) Every member who is credited
with three or more years of allowable service if first employed before July
1, 2010, or with at least five years of allowable service if first employed
after June 30, 2010, is entitled to separate from state service and upon
becoming 50 years old, is entitled to receive a life annuity, upon separation
from state service.
(b) Members shall must apply
for an annuity in a form and manner prescribed by the executive director.
(c) No application may be made more
than 90 days before the date the member is eligible to retire by reason of both
age and service requirements.
(d) An annuity begins to accrue no earlier
than 180 days before the date the application is filed with the executive
director.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 17.
Minnesota Statutes 2008, section 352B.08, subdivision 2a, is amended to
read:
Subd. 2a. Early retirement. Any member who has become at least 50
years old and who has at least three years of allowable service if first
employed before July 1, 2010, or who has at least five years of allowable
service if first employed after June 30, 2010, is entitled upon application
to a reduced retirement annuity equal to the annuity calculated under
subdivision 2, reduced by one-tenth of one percent for each month that the
member is under age 55 at the time of retirement if first employed before
July 1, 2010, or reduced by two-tenths of one percent for each month that the
member is under age 55 at the time of retirement if first employed after June
30, 2010.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 18.
Minnesota Statutes 2008, section 352B.11, subdivision 2b, is amended to
read:
Subd. 2b. Surviving spouse benefit eligibility. (a) If an active member with three or
more years of allowable service if first employed before July 1, 2010, or
with at least five years of allowable service if first employed after June 30,
2010, dies before attaining age 55, the surviving spouse is entitled to the
benefit specified in subdivision 2c, paragraph (b).
(b) If an active member with less than three years of
allowable service if first employed before July 1, 2010, or with fewer than
five years of allowable service if first employed after June 30, 2010, dies
at any age, the surviving spouse is entitled to receive the benefit specified
in subdivision 2c, paragraph (c).
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(c) If an active
member with three or more years of allowable service if first employed
before July 1, 2010, or with at least five years of allowable service if first
employed after June 30, 2010, dies on or after attaining exact age 55, the
surviving spouse is entitled to receive the benefits specified in subdivision
2c, paragraph (d).
(d) If a disabilitant dies while receiving a
disability benefit under section 352B.10 or before the benefit under that
section commenced, and an optional annuity was not elected under section
352B.10, subdivision 5, the surviving spouse is entitled to receive the benefit
specified in subdivision 2c, paragraph (b).
(e) If a former member with three or more years of
allowable service if first employed before July 1, 2010, or with at least
five years of allowable service if first employed after June 30, 2010, who
terminated from service and has not received a refund or commenced receipt of
any other benefit provided by this chapter, dies, the surviving spouse is
entitled to receive the benefit specified in subdivision 2c, paragraph (e).
(f) If a former member with less than three years of
allowable service if first employed before July 1, 2010, or with fewer than
five years of allowable service if first employed after June 30, 2010, who
terminated from service and has not received a refund or commenced receipt of
any other benefit, if applicable, provided by this chapter, dies, the surviving
spouse is entitled to receive the refund specified in subdivision 2c, paragraph
(f).
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 19.
Minnesota Statutes 2008, section 352B.30, subdivision 1, is amended to
read:
Subdivision 1. Entitlement to annuity. Any person who has been an employee
covered by the Minnesota State Retirement System, or a member of the Public
Employees Retirement Association including the Public Employees Retirement
Association Police and Fire Fund, or the Teachers Retirement Association, or
the State Patrol retirement fund, or any other public employee retirement
system in Minnesota having a like provision but excluding all other funds
providing benefits for police or firefighters is entitled when qualified to an
annuity from each fund if total allowable service in all funds or in any two of
these funds totals three or more the number of years of
allowable service required by the applicable retirement plan with the longest
vesting period for the person. No
part of the allowable service upon which the retirement annuity from one fund
is based may again be used in the computation for benefits from another
fund. The member must not have taken a
refund from any one of these funds since service entitling the member to
coverage under the system or membership in any of the associations last
terminated. The annuity from each fund
must be determined by the appropriate law except that the requirement that a
person must have at least three a specific number of years
allowable service in the respective system or association does not apply for
the purposes of this section if the combined service in two or more of these
funds equals three or more the number of years of allowable
service required by the applicable retirement plan with the longest vesting
period for the person.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 20.
Minnesota Statutes 2008, section 352B.30, subdivision 2, is amended to
read:
Subd. 2. Computation of deferred annuity. Deferred annuities must be computed
according to this chapter on the basis of allowable service before termination
of service and augmented as provided in this chapter. The required reserves applicable to a
deferred annuity must be augmented by interest compounded annually from the
first day of the month following the month in which the member terminated service,
or July 1, 1971, whichever is later, to the first day of the month in which the
annuity begins to accrue. The rates of
interest used for this purpose shall must be five percent per
year compounded annually until January 1, 1981, and after that date
three percent per year compounded annually after January 1, 1981, until
January 1, 2012, if the employee became an employee before July 1,
2006, and at 2.5 percent compounded annually if the employee becomes an
employee after June 30, 2006,
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Top of Page 10642
and two percent
per year compounded annually after December 31, 2011, irrespective of when the
employee was first employed. The mortality table and
interest assumption used to compute the annuity shall must be
those in effect when the member files application for annuity.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 21. Minnesota Statutes 2008, section 352F.07, is
amended to read:
352F.07 EFFECT ON REFUND.
Notwithstanding any
provision of chapter 352 to the contrary, terminated hospital employees may
receive a refund of employee accumulated contributions plus interest at the
rate of six percent per year compounded annually in accordance with Minnesota
Statutes 1994, section 352.22, subdivision 2, at any time after the
transfer of employment to Fairview, University of Minnesota Physicians, or
University Affiliated Family Physicians.
If a terminated hospital employee has received a refund from a pension
plan enumerated in section 356.30, subdivision 3, the person may not repay
that refund unless the person again becomes a member of one of those enumerated
plans and complies with section 356.30, subdivision 2.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 22. Minnesota Statutes 2008, section 353.01, is
amended by adding a subdivision to read:
Subd. 47. Vesting. (a) "Vesting" means
obtaining a nonforfeitable entitlement to an annuity or benefit from a
retirement plan administered by the Public Employees Retirement Association by
having credit for sufficient allowable service under paragraph (b) or (c),
whichever applies.
(b) For purposes of
qualifying for an annuity or benefit as a basic or coordinated plan member of
the general employees retirement plan of the Public Employees Retirement
Association:
(1) a member who first
became a public employee before July 1, 2010, is vested when the person has
accrued credit for not less than three years of allowable service as defined
under subdivision 16; and
(2) a member who first
becomes a public employee after June 30, 2010, is vested when the person has
accrued credit for not less than five years of allowable service as defined
under subdivision 16.
(c) For purposes of
qualifying for an annuity or benefit as a member of the police and fire plan or
a member of the local government correctional employees retirement plan:
(1) a member who first
became a public employee before July 1, 2010, is vested when the person has
accrued credit for not less than three years of allowable service as defined
under subdivision 16; and
(2) a member who first
becomes a public employee after June 30, 2010, is vested at the following
percentages when the person has accrued credited allowable service as defined
under subdivision 16, as follows:
(i) 50 percent after five
years;
(ii) 60 percent after six
years;
(iii) 70 percent after seven
years;
(iv) 80 percent after eight
years;
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(v) 90 percent
after nine years; and
(vi) 100 percent after ten
years.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 23. Minnesota Statutes 2009 Supplement, section
353.27, subdivision 2, is amended to read:
Subd. 2. Employee
contribution. (a) For a basic
member, the employee contribution is 9.10 percent of salary. For a coordinated member, the employee
contribution is six percent the following percentage of salary
plus any contribution rate adjustment under subdivision 3b.:
Effective before January 1, 2011 6.00
Effective after December 31, 2010 6.25
(b) These contributions must
be made by deduction from salary as defined in section 353.01, subdivision 10,
in the manner provided in subdivision 4.
If any portion of a member's salary is paid from other than public
funds, the member's employee contribution must be based on the total salary
received by the member from all sources.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 24. Minnesota Statutes 2009 Supplement, section
353.27, subdivision 3, is amended to read:
Subd. 3. Employer
contribution. (a) For a basic
member, the employer contribution is 9.10 percent of salary. For a coordinated member, the employer
contribution is six percent the following percentage of salary
plus any contribution rate adjustment under subdivision 3b.:
Effective before January 1, 2011 6.00
Effective after December 31, 2010 6.25
(b) This contribution must
be made from funds available to the employing subdivision by the means and in
the manner provided in section 353.28.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 25. Minnesota Statutes 2008, section 353.27,
subdivision 3b, is amended to read:
Subd. 3b. Change
in employee and employer contributions in certain instances. (a) For purposes of this section,:
(1) a contribution sufficiency
exists if the total of the employee contribution under subdivision 2, the
employer contribution under subdivision 3, the additional employer contribution
under subdivision 3a, and any additional contribution previously imposed under
this subdivision exceeds the total of the normal cost, the administrative
expenses, and the amortization contribution of the retirement plan as reported
in the most recent actuarial valuation of the retirement plan prepared by the
actuary retained under section 356.214 and prepared under section 356.215 and
the standards for actuarial work of the Legislative Commission on Pensions and
Retirement. For purposes of this
section,; and
(2) a contribution deficiency
exists if the total of the employee contributions under subdivision 2, the
employer contributions under subdivision 3, the additional employer
contribution under subdivision 3a, and any additional contribution previously
imposed under this subdivision is less than the total of the normal cost, the
administrative
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expenses, and the
amortization contribution of the retirement plan as reported in the most recent
actuarial valuation of the retirement plan prepared by the actuary retained
under section 356.214 and prepared under section 356.215 and the standards for
actuarial work of the Legislative Commission on Pensions and Retirement.
(b) Employee and employer contributions under
subdivisions 2 and 3 must be adjusted:
(1) if, on or after July 1, 2010, the regular
actuarial valuations valuation of the general employees
retirement plan of the Public Employees Retirement Association under section
356.215 indicate indicates that there is a contribution
sufficiency under paragraph (a) equal to or greater than 0.5 one
percent of covered payroll and that the sufficiency has existed for at
least two consecutive years, the coordinated program employee and employer
contribution rates must be decreased as determined under paragraph (c) to a
level such that the sufficiency equals is no more greater
than 0.25 one percent of covered payroll based on the most
recent actuarial valuation; or
(2) if, on or after July 1, 2010, the regular
actuarial valuations valuation of the general employees
retirement plan of the Public Employees Retirement Association under section
356.215 indicate indicates that there is a contribution deficiency
equal to or greater than 0.5 percent of covered payroll and that the
deficiency has existed for at least two consecutive years, the
coordinated program employee and employer contribution rates must be increased
as determined under paragraph (c) (d) to a level such that no
deficiency exists based on the most recent actuarial valuation.
(c) The contribution rate increase or decrease must
be determined by the executive director of the Public Employees Retirement
Association, must be reported to the chair and the executive director of the
Legislative Commission on Pensions and Retirement on or before the next
February 1, and, if the Legislative Commission on Pensions and Retirement does
not recommend against the rate change or does not recommend a modification in
the rate change, is effective on the next July 1 following the determination by
the executive director that a contribution deficiency or sufficiency has
existed for two consecutive fiscal years based on the most recent actuarial valuations
under section 356.215. If the
actuarially required contribution exceeds or is less than the total
support provided by the combined employee and employer contribution rates under
subdivisions 2, 3, and 3a, by more than 0.5 one percent of
covered payroll, the coordinated program employee and employer contribution
rates under subdivisions 2 and 3 must be adjusted decreased
incrementally over one or more years by no more than 0.25 percent of pay
each for employee and employer matching contribution rates to a level such
that there remains a contribution sufficiency of no more than 0.25 at
least one percent of covered payroll.
No contribution rate decrease may be made until at least two years
have elapsed since any adjustment under this subdivision has been fully
implemented.
(d) No If the actuarially required
contribution exceeds the total support provided by the combined employee and
employer contribution rates under subdivisions 2, 3, and 3a, the employee and
matching employer contribution rates must be increased equally to eliminate
that contribution deficiency. If the
contribution deficiency is:
(1) less than two percent, the incremental adjustment
increase may exceed be up to 0.25 percent for either
the coordinated program employee and matching employer
contribution rates per year in which any adjustment is implemented. A contribution rate adjustment under this
subdivision must not be made until at least two years have passed since fully
implementing a previous adjustment under this subdivision.;
(2) greater than 1.99 percent and less than 4.01
percent, the incremental increase may be up to 0.5 percent for the employee and
matching employer contribution rates; or
(3) greater than four percent, the incremental increase
may be up to 0.75 percent for the employee and matching employer contribution.
(e) Any recommended adjustment to the contribution
rates must be reported to the chair and the executive director of the
Legislative Commission on Pensions and Retirement by January 15 following
receipt of the most recent annual actuarial valuation prepared under section
356.215. If the Legislative Commission
on Pensions and
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Retirement does
not recommend against the rate change or does not recommend a modification in
the rate change, the recommended adjustment becomes effective on the first day
of the first full payroll period in the fiscal year following receipt of the
most recent actuarial valuation that gave rise to the adjustment.
(f) A contribution sufficiency of up to one percent of
covered payroll must be held in reserve to be used to offset any future
actuarially required contributions that are more than the total combined
employee and employer contributions under subdivisions 2, 3, and 3a.
(g) Before any reduction in contributions to eliminate
a sufficiency in excess of one percent of covered pay may be recommended, the
executive director must review any need for a change in actuarial assumptions,
as recommended by the actuary retained under section 356.214 in the most recent
experience study of the general employees retirement plan prepared under
section 356.215 and the standards for actuarial work promulgated by the
Legislative Commission on Pensions and Retirement that may result in an
increase in the actuarially required contribution and must report to the Legislative
Commission on Pensions and Retirement any recommendation by the board to use
the sufficiency exceeding one percent of covered payroll to offset the impact
of an actuarial assumption change recommended by the actuary retained under
section 356.214, subdivision 1, and reviewed by the actuary retained by the
commission under section 356.214, subdivision 4.
(h) No contribution sufficiency in excess of one
percent of covered pay may be proposed to be used to increase benefits, and no
benefit increase may be proposed that would initiate an automatic adjustment to
increase contributions under this subdivision.
Any proposed benefit improvement must include a recommendation, prepared
by the actuary retained under section 356.214, subdivision 1, and reviewed by
the actuary retained by the Legislative Commission on Pensions and Retirement
as provided under section 356.214, subdivision 4, on how the benefit
modification will be funded.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 26.
Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to
read:
Subdivision 1. Age and allowable service
requirements. Upon termination of
membership, a person who has attained normal retirement age and who received
credit for not less than three years of allowable service is vested
under section 353.01, subdivision 47, is entitled upon application to a
retirement annuity. The retirement
annuity is known as the "normal" retirement annuity.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 27.
Minnesota Statutes 2008, section 353.30, subdivision 1c, is amended to
read:
Subd. 1c. Pre-July 1, 1989, members: early retirement. Upon termination of public service, a person
who first became a public employee or a member of a pension fund listed in
section 356.30, subdivision 3, before July 1, 1989, who has become at
least 55 years old but not normal retirement age, and has received credit
for at least three years of allowable service is vested under section
353.01, subdivision 47, is entitled, upon application, to a
retirement annuity in an amount equal to the normal annuity provided in section
353.29, subdivision 3, paragraph (a), reduced by one-quarter of one percent for
each month that the member is under normal retirement age at the time of
retirement.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
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Sec. 28. Minnesota Statutes 2008, section 353.32,
subdivision 1, is amended to read:
Subdivision 1. Before retirement. If a member or former member who
terminated public service dies before retirement or before receiving any
retirement annuity and no other payment of any kind is or may become payable to
any person, a refund shall be paid is payable to the designated
beneficiary or, if there be none, to the surviving spouse, or, if none, to the
legal representative of the decedent's estate.
Such The refund shall must be in an amount
equal to accumulated deductions plus annual compound interest thereon at
the rate of six percent per annum compounded annually specified in
section 353.34, subdivision 2, and less the sum of any disability or
survivor benefits, if any, that may have been paid by the fund; provided that a
survivor who has a right to benefits pursuant to under section
353.31 may waive such benefits in writing, except such benefits for a dependent
child under the age of 18 years may only be waived pursuant to under an
order of the district court.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 29.
Minnesota Statutes 2008, section 353.32, subdivision 1a, is amended to
read:
Subd. 1a. Surviving spouse optional annuity. (a) If a member or former member who has
credit for not less than three years of allowable service is vested
under section 353.01, subdivision 47, and who dies before the
annuity or disability benefit begins to accrue under section 353.29,
subdivision 7, or 353.33, subdivision 2, notwithstanding any designation of
beneficiary to the contrary, the surviving spouse may elect to receive, instead
of a refund with interest under subdivision 1, or surviving spouse benefits
otherwise payable under section 353.31, an annuity equal to a 100 percent joint
and survivor annuity computed consistent with section 353.30, subdivision 1a,
1c, or 5, whichever is applicable.
(b) If a member first became a public employee or a
member of a pension fund listed in section 356.30, subdivision 3, before July
1, 1989, and has credit for at least 30 years of allowable service on the date
of death, the surviving spouse may elect to receive a 100 percent joint and
survivor annuity computed using section 353.30, subdivision 1b, except that the
early retirement reduction under that provision will be applied from age 62
back to age 55 and one-half of the early retirement reduction from age 55 back
to the age payment begins.
(c) If a member who was under age 55 and has credit
for at least three years of allowable service who is vested under
section 353.01, subdivision 47, dies, but did not qualify for retirement on
the date of death, the surviving spouse may elect to receive a 100 percent
joint and survivor annuity computed using section 353.30, subdivision 1c or 5,
as applicable, except that the early retirement reduction specified in the
applicable subdivision will be applied to age 55 and one-half of the early
retirement reduction from age 55 back to the age payment begins.
(d) Notwithstanding the definition of surviving spouse
in section 353.01, subdivision 20, a former spouse of the member, if any, is
entitled to a portion of the monthly surviving spouse optional annuity if
stipulated under the terms of a marriage dissolution decree filed with the
association. If there is no surviving
spouse or child or children, a former spouse may be entitled to a lump-sum
refund payment under subdivision 1, if provided for in a marriage dissolution
decree, but not a monthly surviving spouse optional annuity, despite the terms
of a marriage dissolution decree filed with the association.
(e) The surviving spouse eligible for surviving spouse
benefits under paragraph (a) may apply for the annuity at any time after the
date on which the deceased employee would have attained the required age for
retirement based on the employee's allowable service. The surviving spouse eligible for surviving
spouse benefits under paragraph (b) or (c) may apply for an annuity any time
after the member's death.
(f) Sections 353.34, subdivision 3, and 353.71,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision.
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(g) An amount equal
to any excess of the accumulated contributions that were credited to the
account of the deceased employee over and above the total of the annuities paid
and payable to the surviving spouse must be paid to the surviving spouse's
estate.
(h) A member may specify in writing, with the signed
consent of the spouse, that this subdivision does not apply and that payment
may be made only to the designated beneficiary as otherwise provided by this
chapter. The waiver of a surviving
spouse annuity under this section does not make a dependent child eligible for
benefits under subdivision 1c.
(i) If the deceased member or former member first
became a public employee or a member of a public pension plan listed in section
356.30, subdivision 3, on or after July 1, 1989, a survivor annuity computed
under paragraph (a) or (c) must be computed as specified in section 353.30,
subdivision 5, except for the revised early retirement reduction specified in
paragraph (c), if paragraph (c) is the applicable provision.
(j) For any survivor annuity determined under this
subdivision, the payment is to be based on the total allowable service that the
member had accrued as of the date of death and the age of the member and
surviving spouse on that date.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 30.
Minnesota Statutes 2009 Supplement, section 353.33, subdivision 1, is
amended to read:
Subdivision 1. Age, service, and salary requirements. (a) A coordinated or basic member
who has at least three years of allowable service is vested under
section 353.01, subdivision 47, and who becomes totally and
permanently disabled before normal retirement age, upon application as defined
under section 353.031, is entitled to a disability benefit in an amount
determined under subdivision 3.
(b) If the disabled person's public service has terminated
at any time, at least two of the required three years of allowable
service required to be vested under section 353.01, subdivision 47, must
have been rendered after last becoming an active member.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 31.
Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to
read:
Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to either
a refund of accumulated employee deductions under subdivision 2, or to a
deferred annuity under subdivision 3.
Application for a refund may not be made before the date of termination
of public service. Except as specified
in paragraph (b), a refund must be paid within 120 days following receipt of
the application unless the applicant has again become a public employee
required to be covered by the association.
(b) If an individual was placed on layoff under section
353.01, subdivision 12 or 12c, a refund is not payable before termination of
service under section 353.01, subdivision 11a.
(c) An individual who terminates public service covered
by the Public Employees Retirement Association general employees retirement
plan, the Public Employees Retirement Association police and fire retirement
plan, or the public employees local government corrections correctional
service retirement plan, and who is employed by a different employer and
who becomes an active member covered by one of the other two plans, may receive
a refund of employee contributions plus six percent annual compound interest
compounded annually from the plan from which the member terminated
service at the applicable rate specified in subdivision 2.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
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Sec. 32. Minnesota Statutes 2008, section 353.34,
subdivision 2, is amended to read:
Subd. 2. Refund with interest. (a) Except as provided in
subdivision 1, any person who ceases to be a public employee shall is
entitled to receive a refund in an amount equal to accumulated deductions
with annual compound interest to the first day of the month in which the
refund is processed at the rate of six percent compounded annually based on
fiscal year balances.
(b) For a person who ceases to be a public employee
before July 1, 2011, the refund interest is at the rate of six percent to June
30, 2011, and at the rate of four percent after June 30, 2011. For a person who ceases to be a public
employee after July 1, 2011, the refund interest is at the rate of four
percent.
(c) If a person repays a refund and subsequently applies
for another refund, the repayment amount, including interest, is added to the
fiscal year balance in which the repayment was made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 33.
Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to
read:
Subd. 3. Deferred annuity; eligibility;
computation. (a) A member with
at least three years of allowable service who is vested under section
353.01, subdivision 47, when termination of public service or termination
of membership occurs has the option of leaving the accumulated deductions in
the fund and being entitled to a deferred retirement annuity commencing at
normal retirement age or to a deferred early retirement annuity under section
353.30, subdivision 1a, 1b, 1c, or 5.
(b) The deferred annuity must be computed under section
353.29, subdivision 3, on the basis of the law in effect on the date of
termination of public service or termination of membership, whichever is
earlier, and must be augmented as provided in section 353.71, subdivision 2.
(c) A former member qualified to apply for a deferred
retirement annuity may revoke this option at any time before the commencement
of deferred annuity payments by making application for a refund. The person is entitled to a refund of
accumulated member contributions within 30 days following date of receipt of
the application by the executive director.
EFFECTIVE
DATE. This section is effective the day following
final enactment.
Sec. 34.
Minnesota Statutes 2009 Supplement, section 353.65, subdivision 2, is
amended to read:
Subd. 2. Employee contribution. The employee contribution is 9.4 percent
of the salary of the member in calendar year 2010 and is 9.6 percent of the
salary of the member in each calendar year after 2010. This contribution must be made by deduction
from salary in the manner provided in subdivision 4. Where any portion of a member's salary is
paid from other than public funds, the member's employee contribution is based
on the total salary received from all sources.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 35.
Minnesota Statutes 2009 Supplement, section 353.65, subdivision 3, is
amended to read:
Subd. 3. Employer contribution. The employer contribution is 14.1 percent
of the salary of the member in calendar year 2010 and is 14.4 percent of the
salary of the member in each calendar year after 2010. This contribution must be made from funds
available to the employing subdivision by the means and in the manner provided
in section 353.28.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
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Sec. 36. Minnesota Statutes 2008, section 353.651,
subdivision 1, is amended to read:
Subdivision 1. Age and allowable service
requirements. Upon separation from
public service, any police officer or firefighter member who has attained the
age of at least 55 years and who received credit for not less than three
years of allowable service is vested under section 353.01, subdivision
47, is entitled upon application to a retirement annuity. Such retirement annuity is, known
as the "normal" retirement annuity.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 37.
Minnesota Statutes 2008, section 353.651, subdivision 4, is amended to
read:
Subd. 4. Early retirement. (a) A person who becomes a police and
fire plan member after June 30, 2007, or a former member who is reinstated as a
member of the plan after that date, who is at least 50 years of age with at
least three years of allowable service and who is vested under section
353.01, subdivision 47, upon the termination of public service is entitled
upon application to a retirement annuity equal to the normal annuity calculated
under subdivision 3, reduced by two-tenths of one percent for each month that
the member is under age 55 at the time of retirement.
(b) Upon the termination of public service, any police
and fire plan member not specified in paragraph (a), upon attaining at least 50
years of age with at least three years of allowable service is entitled upon
application to a retirement annuity equal to the normal annuity calculated
under subdivision 3, reduced by one-tenth of one percent for each month that
the member is under age 55 at the time of retirement.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 38.
Minnesota Statutes 2008, section 353.657, subdivision 1, is amended to
read:
Subdivision 1. Generally.
(a) In the event that a member of the police and fire fund dies from
any cause before retirement or before becoming disabled and receiving
disability benefits, the association shall grant survivor benefits to a
surviving spouse, as defined in section 353.01, subdivision 20, and to a
dependent child or children, as defined in section 353.01, subdivision 15,
except that if the death is not a line of duty death, the member must have
accrued at least three years of credited service be vested under section
353.01, subdivision 47.
(b) Notwithstanding the definition of surviving
spouse, a former spouse of the member, if any, is entitled to a portion of the
monthly surviving spouse benefit if stipulated under the terms of a marriage
dissolution decree filed with the association.
If there is no surviving spouse or child or children, a former spouse
may be entitled to a lump-sum refund payment under section 353.32, subdivision
1, if provided for in a marriage dissolution decree but not a monthly surviving
spouse benefit despite the terms of a marriage dissolution decree filed with
the association.
(c) The spouse and child or children are entitled to
monthly benefits as provided in subdivisions 2 to 4.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 39.
Minnesota Statutes 2008, section 353.657, subdivision 2a, is amended to
read:
Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member who has
attained the age of at least 50 years and has credit for not less than three
years allowable service either who is vested under section 353.01,
subdivision 47, or who has credit for at least 30 years of allowable
service, regardless of age attained, dies before the annuity or disability
benefit becomes payable, notwithstanding any designation of beneficiary to the
contrary, the surviving spouse may elect to receive a death while eligible
survivor benefit.
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(b) Notwithstanding
the definition of surviving spouse in section 353.01, subdivision 20, a former
spouse of the member, if any, is entitled to a portion of the death while
eligible survivor benefit if stipulated under the terms of a marriage
dissolution decree filed with the association.
If there is no surviving spouse or child or children, a former spouse
may be entitled to a lump-sum refund payment under section 353.32, subdivision
1, if provided for in a marriage dissolution decree but not a death while
eligible survivor benefit despite the terms of a marriage dissolution decree
filed with the association.
(c) The benefit may be
elected instead of a refund with interest under section 353.32, subdivision 1,
or surviving spouse benefits otherwise payable under subdivisions 1 and 2. The benefit must be an annuity equal to the
100 percent joint and survivor annuity which the member could have qualified
for on the date of death, computed as provided in sections 353.651,
subdivisions 2 and 3, and 353.30, subdivision 3.
(d) The surviving spouse may
apply for the annuity at any time after the date on which the deceased employee
would have attained the required age for retirement based on the employee's
allowable service. Sections 353.34,
subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity payable
under this subdivision.
(e) No payment accrues
beyond the end of the month in which entitlement to such annuity has
terminated. An amount equal to the excess,
if any, of the accumulated contributions which were credited to the account of
the deceased employee over and above the total of the annuities paid and
payable to the surviving spouse must be paid to the deceased member's last
designated beneficiary or, if none, to the legal representative of the estate
of such deceased member.
(f) Any member may request
in writing, with the signed consent of the spouse, that this subdivision not
apply and that payment be made only to the designated beneficiary, as otherwise
provided by this chapter.
(g) For a member who is
employed as a full-time firefighter by the Department of Military Affairs of
the state of Minnesota, allowable service as a full-time state Military Affairs
Department firefighter credited by the Minnesota State Retirement System may be
used in meeting the minimum allowable service requirement of this subdivision.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 40. Minnesota Statutes 2008, section 353.71, subdivision
1, is amended to read:
Subdivision 1. Eligibility. Any person who has been a member of a
defined benefit retirement plan administered by the Public Employees
Retirement Association, or a retirement plan administered by the
Minnesota State Retirement System, or the Teachers Retirement Association, or
any other public retirement system in the state of Minnesota having a like
provision, except a fund retirement plan providing benefits for
police officers or firefighters governed by sections 69.77 or 69.771 to 69.776,
shall be is entitled, when qualified, to an annuity
from each fund retirement plan if the total allowable service in
all funds retirement plans or in any two of these funds retirement
plans totals three or more years the number of years of allowable
service required to receive a normal retirement annuity for that retirement
plan, provided that no portion of the allowable service upon which
the retirement annuity from one fund retirement plan is based is
again used in the computation for benefits from another fund retirement
plan and provided further that the person has not taken a refund from any
one of these funds retirement plans since the person's membership
in that association or system last terminated.
The annuity from each fund shall must be determined by the
appropriate provisions of the law except that the requirement that a person
must have at least three years a specific minimum period of
allowable service in the respective association or system shall does not
apply for the purposes of this section provided if the combined
service in two or more of these funds retirement plans equals three
or more the number of years of allowable service required to
receive a normal retirement annuity for that retirement plan.
EFFECTIVE DATE. This section is effective the day following final
enactment.
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Sec. 41. Minnesota Statutes 2008, section 353.71,
subdivision 2, is amended to read:
Subd. 2. Deferred annuity computation;
augmentation. (a) The deferred
annuity accruing under subdivision 1, or under sections 353.34, subdivision 3,
and 353.68, subdivision 4, must be computed on the basis of allowable service
prior to the termination of public service and augmented as provided in this paragraph
subdivision. The required reserves
applicable to a deferred annuity, or to any deferred segment of an annuity must
be determined as of the first day of the month following the month in which the
former member ceased to be a public employee, or July 1, 1971, whichever is
later. These
(b) For a person who became a public employee before
July 1, 2006, whose period of deferral began after June 30, 1971, and who
terminated public employment before January 1, 2012, the required
reserves of the deferred annuity must be augmented at the following
applicable rate of or rates:
(1) five percent annually compounded
annually annual compound interest until January 1, 1981, and at
the rate of;
(2) three percent thereafter annual
compound interest after January 1, 1981, or until the earlier of
December 31, 2011, or after the date of the termination of public
service or the termination of membership, whichever is later, until January
1 of the year following the year in which the former member attains age 55 and;
(3) five percent annual compound interest from that
date to the effective date of retirement, the rate is five percent compounded
annually if the employee became an employee before July 1, 2006, and at 2.5
percent compounded annually if the employee becomes an January 1 of the
year following the year in which the former member attains age 55, or until
December 31, 2011, whichever is earlier; and
(4) one percent annual compound interest from January
1, 2012.
(c) For a person who became a public employee
after June 30, 2006, and who terminated public employment before January 1,
2012, the required reserves of the deferred annuity must be augmented at 2.5
percent annual compound interest from the date of termination of public service
or termination of membership, whichever is earlier, until December 31, 2011,
and one percent annual compound interest after December 31, 2011.
(d) For a person who terminates public employment after
December 31, 2011, the required reserves of the deferred annuity must not be
augmented.
(e) If a person has more than one period of uninterrupted
service, the required reserves related to each period must be augmented as
specified in this paragraph. The sum of
the augmented required reserves is the present value of the annuity. Uninterrupted service for the purpose of this
subdivision means periods of covered employment during which the employee has
not been separated from public service for more than two years. If a person repays a refund, the restored
service must be considered as continuous with the next period of service for
which the employee has credit with this association. This section must not reduce the annuity
otherwise payable under this chapter.
This paragraph applies to individuals who become deferred annuitants on
or after July 1, 1971. For a member who
became a deferred annuitant before July 1, 1971, the paragraph applies from
July 1, 1971, if the former active member applies for an annuity after July 1,
1973.
(b) (f) The retirement annuity or disability
benefit of, or the survivor benefit payable on behalf of, a former member who
terminated service before July 1, 1997, or the survivor benefit payable on
behalf of a basic or police and fire member who was receiving disability
benefits before July 1, 1997, which is first payable after
June 30, 1997, must be increased on an actuarial equivalent basis to
reflect the change in the postretirement interest rate actuarial assumption
under section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board and approved by the
actuary retained under section 356.214.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
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Sec. 42. Minnesota Statutes 2008, section 353E.04,
subdivision 1, is amended to read:
Subdivision 1. Eligibility requirements. After termination of public employment,
an employee covered under section 353E.02 who has attained the age of at least
55 years and has credit for not less than three years of coverage who
is vested under section 353.01, subdivision 47, in the local government
correctional service plan is entitled, upon application, to a normal retirement
annuity. Instead of a normal retirement
annuity, a retiring employee may elect to receive the optional annuity provided
in section 353.30, subdivision 3.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 43.
Minnesota Statutes 2008, section 353E.04, subdivision 4, is amended to
read:
Subd. 4. Early retirement. An employee covered under section 353E.02
who has attained the age of at least 50 years and has credit for not less
than three years of coverage who is vested under section 353.01,
subdivision 47, in the local government correctional service plan is
entitled, upon application, to a reduced retirement annuity equal to the
annuity calculated under subdivision 3, reduced so that the reduced annuity is
the actuarial equivalent of the annuity that would be payable if the employee
deferred receipt of the annuity from the day the annuity begins to accrue until
age 55.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 44.
Minnesota Statutes 2008, section 353E.07, subdivision 1, is amended to
read:
Subdivision 1. Member at least age 50. If a member or former member of the local
government correctional service retirement plan who has attained the age of at
least 50 years and has credit for not less than three years of allowable service
who is vested under section 353.01, subdivision 47, dies before the
annuity or disability benefit has become payable, notwithstanding any
designation of beneficiary to the contrary, the surviving spouse may elect to
receive, in lieu of a refund with interest provided in section 353.32,
subdivision 1, a surviving spouse annuity equal to the 100 percent joint and
survivor annuity for which the member could have qualified had the member
terminated service on the date of death.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 45.
Minnesota Statutes 2008, section 353E.07, subdivision 2, is amended to
read:
Subd. 2. Member not yet age 50. If the member was under age 50, dies, and
had credit for not less than three years of allowable service was
vested under section 353.01, subdivision 47, on the date of death but did
not yet qualify for retirement, the surviving spouse may elect to receive a 100
percent joint and survivor annuity based on the age of the employee and the
surviving spouse at the time of death.
The annuity is payable using the early retirement reduction under
section 353E.04, subdivision 4, to age 50 and one-half the early retirement
reduction from age 50 to the age payment begins. Sections 353.34, subdivision 3, and 353.71,
subdivision 2, apply to a deferred annuity or surviving spouse benefit payable
under this subdivision.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 46.
Minnesota Statutes 2008, section 353F.03, is amended to read:
353F.03
VESTING RULE FOR CERTAIN EMPLOYEES.
Notwithstanding any provision of chapter 353 to the
contrary, a terminated medical facility or other public employing unit employee
is eligible to receive a retirement annuity under section 353.29 of the edition
of Minnesota Statutes published in the year before the year in which the
privatization occurred, without regard to the requirement for three years of
allowable service specified in section 353.01, subdivision 47.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
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Sec. 47. Minnesota Statutes 2009 Supplement, section
354.42, subdivision 2, is amended to read:
Subd. 2. Employee
contribution. (a) For a basic
member, the employee contribution to the fund is 9.0 percent the
following percentage of the member's salary.:
before July 1, 2011 9.0
percent
from July 1, 2011, until June 30, 2012 9.5
percent
from July 1, 2012, until June 30, 2013 10.0
percent
from July 1, 2013, until June 30, 2014 10.5
percent
after June 30, 2014 11.0
percent
(b) For a coordinated member,
the employee contribution is 5.5 percent the following percentage of
the member's salary.:
before July 1, 2011 5.5
percent
from July 1, 2011, until June 30, 2012 6.0
percent
from July 1, 2012, until June 30, 2013 6.5
percent
from July 1, 2013, until June 30, 2014 7.0
percent
after June 30, 2014 7.5
percent
(c) When an employee
contribution rate changes for a fiscal year, the new contribution rate is
effective for the entire salary paid for each employer unit with the first payroll
cycle reported.
(d) After June 30, 2015, if
a contribution rate revision is required under subdivisions 4a, 4b, and 4c, the
employee contributions under paragraphs (a) and (b) must be adjusted
accordingly.
(b) (e) This
contribution must be made by deduction from salary. Where any portion of a member's salary is
paid from other than public funds, the member's employee contribution must be
based on the entire salary received.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 48. Minnesota Statutes 2008, section 354.42,
subdivision 3, is amended to read:
Subd. 3. Employer. (a) The regular employer contribution
to the fund by Special School District No. 1, Minneapolis, after July 1,
2006, and before July 1, 2007, is an amount equal to 5.0 percent of the salary
of each of its teachers who is a coordinated member and 9.0 percent of the
salary of each of its teachers who is a basic member. After July 1, 2007, the regular employer
contribution to the fund by Special School District No. 1, Minneapolis, is
an amount equal to 5.5 percent the applicable following percentage of
salary of each coordinated member and 9.5 percent the applicable
following percentage of salary of each basic member.:
Period Coordinated
Member Basic
Member
before July 1, 2011 5.5
percent 9.5
percent
from July 1, 2011, until
June 30, 2012 6.0
percent 10.0
percent
from July 1, 2012, until
June 30, 2013 6.5
percent 10.5
percent
from July 1, 2013, until
June 30, 2014 7.0
percent 11.0
percent
after June 30, 2014 7.5
percent 11.5
percent
The additional employer
contribution to the fund by Special School District No. 1, Minneapolis, after
July 1, 2006, is an amount equal to 3.64 percent of the salary of
each teacher who is a coordinated member or is a basic member.
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(b) The employer
contribution to the fund for every other employer is an amount equal to 5.0
percent the applicable following percentage of the salary of each
coordinated member and 9.0 percent the applicable following
percentage of the salary of each basic member before July 1, 2007, and
5.5 percent of the salary of each coordinated member and 9.5 percent of the
salary of each basic member after June 30, 2007.:
Period Coordinated
Member Basic
Member
before July 1, 2011 5.5
percent 9.5
percent
from July 1, 2011, until June 30, 2012 6.0
percent 10.0
percent
from July 1, 2012, until June 30, 2013 6.5
percent 10.5
percent
from July 1, 2013, until June 30, 2014 7.0
percent 11.0
percent
after June 30, 2014 7.5
percent 11.5
percent
(c) When an employer contribution
rate changes for a fiscal year, the new contribution rate is effective for the
entire salary paid for each employer unit with the first payroll cycle
reported.
(d) After June 30, 2015, if a
contribution rate revision is made under subdivisions 4a, 4b, and 4c, the
employer contributions under paragraphs (a) and (b) must be adjusted
accordingly.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 49. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4a. Determination. (a) For purposes of this section, a
contribution sufficiency exists if the total of the employee contributions, the
employer contributions, and any additional employer contributions, if
applicable, exceeds the total of the normal cost, the administrative expenses,
and the amortization contribution of the retirement plan as reported in the
most recent actuarial valuation of the retirement plan prepared by the approved
actuary retained under section 356.214 and prepared under section 356.215 and
the standards for actuarial work of the Legislative Commission on Pensions and
Retirement.
(b) For purposes of this section, a
contribution deficiency exists if the total of the employee contributions, the
employer contributions, and any additional employer contributions are less than
the total of the normal cost, the administrative expenses, and the amortization
contribution of the retirement plan as reported in the most recent actuarial
valuation of the retirement plan prepared by the approved actuary retained
under section 356.214 and prepared under section 356.215 and the standards for
actuarial work of the Legislative Commission on Pensions and Retirement.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 50. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4b. Contribution
rate revision. Notwithstanding
the contribution rate provisions under subdivisions 2 and 3, the employee and
employer contribution rates may be adjusted as follows:
(1) if, after June 30, 2015, the
regular actuarial valuation of the plan under section 356.215 indicates that
there is a contribution sufficiency under subdivision 4a equal to or greater
than one percent of covered payroll and the sufficiency has existed for at
least two consecutive years, the employee and employer contribution rates for
the plan may each be decreased to a level such that the sufficiency equals no
more than one percent of covered payroll based on the most recent actuarial valuation;
or
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(2) if, after
June 30, 2015, the regular valuation of the plan under section 356.215 indicates
that there is a deficiency equal to or greater than 0.25 percent of covered
payroll and the deficiency has existed for at least two consecutive years, the
employee and employer contribution rates for the applicable plan may each be
increased by:
(i) 0.25 percent if the deficiency
is less than 2.00 percent of covered payroll;
(ii) 0.5 percent if the deficiency
is equal to or greater than 2.00 percent of covered payroll and less than or
equal to four percent; and
(iii) 0.75 percent if the deficiency
is greater than four percent.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 51. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4c. Contribution
sufficiency measures. (a) A
contribution sufficiency of up to one percent of covered payroll must be held
in reserve to be used to offset any future actuarially required contributions
that are more than the total combined employee and employer contributions being
collected.
(b) Before any reduction in
contributions to eliminate a sufficiency in excess of one percent of covered
pay may be recommended, the executive director must review any need for a
change in actuarial assumptions, as recommended by the actuary retained under
section 356.214 in the most recent experience study of the retirement plan,
that may result in an increase in the actuarially required contribution and
must report to the Legislative Commission on Pensions and Retirement any
recommendation by the board to use the sufficiency exceeding one percent of
covered payroll to offset the impact of an actuarial assumption change
recommended by the actuary retained under section 356.214, subdivision 1, and
reviewed by the actuary retained by the commission under section 356.214,
subdivision 4.
(c) A contribution sufficiency in
excess of one percent of covered pay must not be used to increase benefits, and
a benefit increase must not be proposed that would initiate an automatic
adjustment under this section to increase contributions. A proposed benefit improvement must include a
recommendation, prepared by the actuary retained under section 356.214,
subdivision 1, and reviewed by the actuary retained by the Legislative Commission
on Pensions and Retirement, as provided under section 356.214, subdivision 4,
on the manner in which the benefit modification is to be funded.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 52. Minnesota Statutes 2008, section 354.42, is
amended by adding a subdivision to read:
Subd. 4d. Reporting;
commission review. A
contribution rate increase or decrease under subdivision 4b, as determined by
the executive director of the Teachers Retirement Association, must be reported
to the chair and the executive director of the Legislative Commission on
Pensions and Retirement on or before the next February 1 and, if the
Legislative Commission on Pensions and Retirement does not recommend against
the rate change or does not recommend a modification in the rate change, is
effective on the next July 1 following the determination by the executive
director that a contribution deficiency or sufficiency exists based on the most
recent actuarial valuation under section 356.215.
EFFECTIVE DATE. This section is effective the day
following final enactment.
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Sec. 53. Minnesota Statutes 2009 Supplement, section
354.47, subdivision 1, is amended to read:
Subdivision 1. Death
before retirement. (a) If a member
dies before retirement and is covered under section 354.44, subdivision 2, and
neither an optional annuity, nor a reversionary annuity, nor a benefit under section
354.46, subdivision 1, is payable to the survivors if the member was a basic
member, then the surviving spouse, or if there is no surviving spouse, the
designated beneficiary is entitled to an amount equal to the member's
accumulated deductions with interest credited to the account of the member to
the date of death of the member. If the
designated beneficiary is a minor, interest must be credited to the date the
beneficiary reaches legal age, or the date of receipt, whichever is
earlier.
(b) If a member dies before
retirement and is covered under section 354.44, subdivision 6, and neither an
optional annuity, nor reversionary annuity, nor the benefit described in
section 354.46, subdivision 1, is payable to the survivors if the member was a
basic member, then the surviving spouse, or if there is no surviving spouse,
then the designated beneficiary is entitled to an amount equal to the
member's accumulated deductions credited to the account of the member as of
June 30, 1957, and from July 1, 1957, to the date of death of the member, the
member's accumulated deductions plus six percent interest compounded
annually. a refund equal to the
accumulated deductions credited to the member's account plus interest
compounded annually until the member's date of death using the following
interest rates:
(1) before July 1, 1957, no
interest accrues;
(2) July 1, 1957, to June 30, 2011,
six percent; and
(3) after June 30, 2011, four
percent.
(c) If the designated beneficiary
under paragraph (b) is a minor, any interest credited under that paragraph must
be credited to the date the beneficiary reaches legal age, or the date of
receipt, whichever is earlier.
(d) The amount of any refund
payable under this subdivision must be reduced by any permanent disability
payment under section 354.48 received by the member.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 54. Minnesota Statutes 2009 Supplement, section
354.49, subdivision 2, is amended to read:
Subd. 2. Calculation. (a) Except as provided in section 354.44,
subdivision 1, any person who ceases to be a member by reason of termination of
teaching service, is entitled to receive a refund in an amount equal to the
accumulated deductions credited to the account as of June 30, 1957, and
after July 1, 1957, the accumulated deductions with interest at the rate of six
percent per annum compounded annually. plus
interest compounded annually using the following interest rates:
(1) before July 1, 1957, no interest
accrues;
(2) July 1, 1957, to June 30, 2011,
six percent; and
(3) after June 30, 2011, four
percent.
For the purpose of this
subdivision, interest must be computed on fiscal year end balances to the first
day of the month in which the refund is issued.
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(b) If the person
has received permanent disability payments under section 354.48, the refund
amount must be reduced by the amount of those payments.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 55. Minnesota Statutes 2009 Supplement, section
354.55, subdivision 11, is amended to read:
Subd. 11. Deferred
annuity; augmentation. (a) Any
person covered under section 354.44, subdivision 6, who ceases to render
teaching service, may leave the person's accumulated deductions in the fund for
the purpose of receiving a deferred annuity at retirement.
(b) The amount of the deferred
retirement annuity is determined by section 354.44, subdivision 6, and
augmented as provided in this subdivision.
The required reserves for the annuity which had accrued when the member
ceased to render teaching service must be augmented, as further specified in
this subdivision, by the applicable interest rate compounded
annually from the first day of the month following the month during which the
member ceased to render teaching service to the effective date of retirement.
(c) No augmentation is not
creditable if the deferral period is less than three months or if deferral
commenced before July 1, 1971.
(d) For persons who became covered
employees before July 1, 2006, with a deferral period commencing after June 30,
1971, the annuity must be augmented using as follows:
(1) five
percent interest compounded annually until January 1, 1981, and;
(2) three
percent interest compounded annually thereafter from January 1, 1981,
until January 1 of the year following the year in which the deferred annuitant
attains age 55.;
From that date (3)
five percent interest compounded annually from the date established in clause
(2) to the effective date of retirement, the rate is five percent
compounded annually. or until
June 30, 2012, whichever is earlier; and
(4) two percent interest compounded
annually after June 30, 2012.
(e) For persons who become covered
employees after June 30, 2006, the interest rate used to augment the deferred
annuity is 2.5 percent interest compounded annually until June 30, 2012, or
until the effective date of retirement, whichever is earlier, and two percent
interest compounded annually after June 30, 2012.
(f) If a person has more than one
period of uninterrupted service, a separate average salary determined under
section 354.44, subdivision 6, must be used for each period and the required
reserves related to each period must be augmented as specified in this
subdivision. The sum of the augmented
required reserves is the present value of the annuity. For the purposes of this subdivision,
"period of uninterrupted service" means a period of covered teaching
service during which the member has not been separated from active service for
more than one fiscal year.
(g) If a person repays a refund,
the service restored by the repayment must be considered as continuous with the
next period of service for which the person has allowable service credit in the
Teachers Retirement Association.
(h) If a person does not render
teaching service in any one fiscal year or more consecutive fiscal years and
then resumes teaching service, the formula percentages used from the date of
the resumption of teaching service must be those applicable to new members.
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(i) The mortality
table and interest rate actuarial assumption used to compute the annuity
must be the applicable mortality table established by the board under section
354.07, subdivision 1, and the interest rate actuarial assumption under
section 356.215 in effect when the member retires.
(j) In no case may the annuity
payable under this subdivision be less than the amount of annuity payable under
section 354.44, subdivision 6.
(k) The requirements and provisions
for retirement before normal retirement age contained in section 354.44,
subdivision 6, also apply to an employee fulfilling the requirements with a
combination of service as provided in section 354.60.
(l) The augmentation provided by
this subdivision applies to the benefit provided in section 354.46,
subdivision 2.
(m) The augmentation provided by
this subdivision does not apply to any period in which a person is on an
approved leave of absence from an employer unit covered by the provisions of
this chapter.
(n) The retirement annuity or
disability benefit of, or the survivor benefit payable on behalf of, a former teacher
who terminated service before July 1, 1997, which is not first payable until
after June 30, 1997, must be increased on an actuarial equivalent basis to
reflect the change in the postretirement interest rate actuarial assumption
under section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board as recommended by an
approved actuary and approved by the actuary retained under section 356.214.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 56. Minnesota Statutes 2008, section 354A.12,
subdivision 1, is amended to read:
Subdivision 1. Employee
contributions. (a) The
contribution required to be paid by each member of a teachers retirement fund
association shall not be less than is the percentage of total
salary specified below for the applicable association and program:
Association
and Program Percentage
of Total Salary
Duluth Teachers Retirement Fund Association
old law and
new law
coordinated
programs 5.5
percent
before July
1, 2011 5.5
percent
effective
July 1, 2011 6.0
percent
effective
July 1, 2012 6.5
percent
St. Paul Teachers Retirement Fund Association
basic program before
July 1, 2010 8
percent
basic
program after June 30, 2010 8.5
percent
basic
program after June 30, 2011 9.0
percent
coordinated
program before July 1, 2010 5.5
percent
coordinated
program after June 30, 2010 6.0
percent
coordinated
program after June 30, 2011 6.5
percent
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(b) Contributions shall be made
by deduction from salary and must be remitted directly to the respective
teachers retirement fund association at least once each month.
(c) When an employee
contribution rate changes for a fiscal year, the new contribution rate is
effective for the entire salary paid by the employer with the first payroll
cycle reported.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 57. Minnesota Statutes 2009 Supplement, section
354A.12, subdivision 2a, is amended to read:
Subd. 2a. Employer
regular and additional contributions. (a)
The employing units shall make the following employer contributions to teachers
retirement fund associations:
(1) for any coordinated
member of one of the following teachers retirement fund associations in a city
of the first class, the employing unit shall make a regular employer contribution
to the respective retirement fund association in an amount equal to the
designated percentage of the salary of the coordinated member as provided
below:
Duluth Teachers Retirement Fund Association 4.50
percent
before July 1, 2011 5.79
percent
effective July 1, 2011 6.29
percent
effective July 1, 2012 6.79
percent
St. Paul Teachers Retirement Fund Association
before July 1, 2010 4.50
percent
after June 30, 2010 5.0
percent
after June 30, 2011 5.5
percent
after June 30, 2013 6.5
percent
(2) for any basic member of
the St. Paul Teachers Retirement Fund Association, the employing unit
shall make a regular employer contribution to the respective retirement fund in
an amount equal to 8.00 percent of the salary of the basic member; according
to the schedule below:
before July 1, 2010 8.0
percent of the salary of the basic member
before July 1, 2011 8.5
percent of the salary of the basic member
before July 1, 2012 9.0
percent of the salary of the basic member
before July 1, 2013 9.5
percent of the salary of the basic member
before July 1, 2014 10.0
percent of the salary of the basic member
(3) for a basic member of
the St. Paul Teachers Retirement Fund Association, the employing unit
shall make an additional employer contribution to the respective fund in an
amount equal to 3.64 percent of the salary of the basic member;
(4) for a coordinated member
of a teachers retirement fund association in a city of the first class
the St. Paul Teachers Retirement Fund Association, the employing unit
shall make an additional employer contribution to the respective fund in an
amount equal to the applicable percentage of the coordinated member's salary,
as provided below:
Duluth Teachers Retirement Fund Association 1.29
percent
St. Paul Teachers Retirement Fund Association 3.84
percent
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Top of Page 10660
(b) The regular and
additional employer contributions must be remitted directly to the respective
teachers retirement fund association at least once each month. Delinquent amounts are payable with interest
under the procedure in subdivision 1a.
(c) Payments of regular and additional employer
contributions for school district or technical college employees who are paid
from normal operating funds must be made from the appropriate fund of the
district or technical college.
(d) When an employer contribution rate changes for a
fiscal year, the new contribution rate is effective for the entire salary paid
by the employer with the first payroll cycle reported.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 58.
Minnesota Statutes 2008, section 354A.12, subdivision 3c, is amended to
read:
Subd. 3c. Termination of supplemental contributions
and direct matching and state aid. (a)
The supplemental contributions payable to the Minneapolis Teachers Retirement
Fund Association by Special School District No. 1 and the city of
Minneapolis under section 423A.02, subdivision 3, must be paid to the Teachers
Retirement Association and must continue until the current assets of the fund
equal or exceed the actuarial accrued liability of the fund as determined in
the most recent actuarial report for the fund by the actuary retained under
section 356.214, or 2037, whichever occurs earlier. The supplemental contributions payable to the
St. Paul Teachers Retirement Fund Association by Independent School
District No. 625 under section 423A.02, subdivision 3, or the direct state
aid under subdivision 3a to the St. Paul Teachers Retirement Fund
Association terminate at the end of the fiscal year in which the accrued
liability funding ratio for that fund, as determined in the most recent
actuarial report for that fund by the actuary retained under section 356.214,
equals or exceeds the accrued liability funding ratio for the Teachers
Retirement Association, as determined in the most recent actuarial report for
the Teachers Retirement Association by the actuary retained under section
356.214. must continue until the
current assets of the fund equal or exceed the actuarial accrued liability of
the fund as determined in the most recent actuarial report for the fund by the
actuary retained under section 356.214 or until 2037, whichever occurs
earlier.
(b) If the St. Paul Teachers Retirement Fund
Association is funded at an amount equal to or greater than the funding ratio
applicable to the Teachers Retirement Association, then any future state aid
under subdivision 3a is payable to the Teachers Retirement Association.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 59.
Minnesota Statutes 2008, section 354A.27, subdivision 5, is amended to
read:
Subd. 5. Calculation Eligibility for and
payment of postretirement adjustments.
(a) Annually, after June 30, the board of trustees of the
Duluth Teachers Retirement Fund Association determines the amount of any
postretirement adjustment using the procedures in this subdivision and
subdivision 6 or 7, whichever is applicable.
(b) Each person who has been receiving an annuity or
benefit under the articles of incorporation, bylaws, or under this section for
at least 12 months as of the date of the postretirement adjustment shall be eligible
for a postretirement adjustment. The
postretirement adjustment shall be payable each January 1. The postretirement adjustment shall be equal
to two percent of a permanent percentage increase as specified under
subdivision 6 or 7, whichever is applicable, applied to the annuity or
benefit to which the person is entitled one month prior to the payment of the
postretirement adjustment.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10661
Sec. 60. Minnesota Statutes 2008, section 354A.27,
subdivision 6, is amended to read:
Subd. 6. Additional
increase Calculation of postretirement adjustments; transitional
provision. (a) In addition to
the postretirement increases granted under subdivision 5, an additional
percentage increase must be computed and paid under this subdivision.
(b) The board of trustees
shall determine the number of annuitants or benefit recipients who have been
receiving an annuity or benefit for at least 12 months as of the current June
30. These recipients are entitled to
receive the surplus investment earnings additional postretirement increase.
(c) Annually, as of each
June 30, the board shall determine the five-year annualized rate of return
attributable to the assets of the Duluth Teachers Retirement Fund Association
under the formula or formulas specified in section 11A.04, clause (11).
(d) The board shall
determine the amount of excess five-year annualized rate of return over the
preretirement interest assumption as specified in section 356.215.
(e) The additional
percentage increase must be determined by multiplying the quantity one minus
the rate of contribution deficiency, as specified in the most recent actuarial
report of the actuary retained under section 356.214, times the rate of return
excess as determined in paragraph (d).
(f) The additional increase
is payable to all eligible annuitants or benefit recipients on the following
January 1.
(a) For purposes of
computing postretirement adjustments after the effective date of this section
for eligible benefit recipients of the Duluth Teachers Retirement Fund
Association, the funding ratio of the plan, as determined by dividing the
market value of assets by the actuarial accrued liability as reported in the
most recent actuarial valuation prepared under sections 356.214 and 356.215,
determines the postretirement increase as follows:
Funding Ratio Postretirement
Increase
less than 80 percent 0
percent
at least 80 percent but less than 90 percent 1
percent
at least 90 percent 2
percent
(b) If the funding ratio of
the plan based on actuarial value, rather than market value, is at least 90
percent as reported in the most recent actuarial valuation prepared under
sections 356.214 and 356.215, this subdivision expires and subsequent
postretirement increases must be paid as specified under subdivision 7.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 61. Minnesota Statutes 2008, section 354A.27, is
amended by adding a subdivision to read:
Subd. 7. Calculation
of postretirement adjustments. (a)
This subdivision applies if subdivision 6 has expired.
(b) A percentage adjustment
must be computed and paid under this subdivision to eligible persons under
subdivision 5. This adjustment is
determined by reference to the Consumer Price Index for urban wage earners and
clerical workers all items index as reported by the Bureau of Labor Statistics
within the United States Department of Labor each year as part of the
determination of annual cost-of-living adjustments to recipients of federal
old-age, survivors, and disability insurance.
For calculations of cost-of-living adjustments under paragraph (c), the
term "average third quarter Consumer Price Index value" means the sum
of the monthly index values as initially reported by the Bureau of Labor
Statistics for the months of July, August, and September, divided by 3.
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(c) Before
January 1 of each year, the executive director must calculate the amount of the
cost-of-living adjustment by dividing the most recent average third quarter
index value by the same average third quarter index value from the previous
year, subtract one from the resulting quotient, and express the result as a percentage
amount, which must be rounded to the nearest one-tenth of one percent.
(d) The amount calculated under paragraph (c) is the
full cost-of-living adjustment to be applied as a permanent increase to the
regular payment of each eligible member on January 1 of the next calendar
year. For any eligible member whose
effective date of benefit commencement occurred during the calendar year before
the cost-of-living adjustment is applied, the full increase amount must be
prorated on the basis of whole calendar quarters in benefit payment status in
the calendar year prior to the January 1 on which the cost-of-living adjustment
is applied, calculated to the third decimal place.
(e) The adjustment must not be less than zero nor
greater than five percent.
(f) If the funding ratio of the plan as determined in
the most recent actuarial valuation using the actuarial value of assets is less
than 80 percent there will be no postretirement adjustment the following
January 1.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 62.
Minnesota Statutes 2008, section 354A.31, subdivision 1, is amended to
read:
Subdivision 1. Age and service requirements. Any coordinated member or former
coordinated member of the St. Paul Teachers Retirement Fund Association
who has ceased to render teaching service for the school district in which
the teachers retirement fund association exists and who has either attained the
age of at least 55 years with not less than three years of allowable service
credit or received credit for not less than 30 years of allowable service
regardless of age, shall be entitled upon written application to a retirement
annuity. Any coordinated member or
former coordinated member of the Duluth Teachers Retirement Fund Association
who has ceased to render teaching service for the school district in which the
teacher retirement fund association exists and who has either attained the age
of at least 55 years with not less than three years of allowable service credit
if the member became an employee before July 1, 2010, or not less than five
years of allowable service credit if the member became an employee after June
30, 2010, or received service credit for not less than 30 years of allowable
service regardless of age, shall be entitled upon written application to a
retirement annuity.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 63.
Minnesota Statutes 2008, section 354A.35, subdivision 1, is amended to
read:
Subdivision 1. Death before retirement; refund. If a coordinated member or former
coordinated member dies prior to retirement or prior to the receipt of any
retirement annuity or other benefit payment which is or may be payable and a
surviving spouse optional annuity is not payable pursuant to subdivision 2, a
refund shall be paid to the person's surviving spouse, or if there is none, to
the person's designated beneficiary, or if there is none, to the legal
representative of the person's estate. For
a coordinated member or former coordinated member of the St. Paul Teachers
Retirement Fund Association, the refund shall be in an amount equal to the
person's accumulated employee contributions plus interest at the rate of
six percent per annum compounded annually.
For a coordinated member or former coordinated member of the Duluth
Teachers Retirement Fund Association, the refund shall be in an amount equal to
the person's accumulated employee contributions plus interest at the rate of
six percent per annum compounded annually to July 1, 2010, and four percent per
annum compounded annually thereafter.
EFFECTIVE
DATE. This section is effective July 1,
2010.
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Sec. 64. Minnesota Statutes 2008, section 354A.37,
subdivision 2, is amended to read:
Subd. 2. Eligibility for deferred retirement
annuity. (a) Any coordinated member
who ceases to render teaching services for the school district in which the
teachers retirement fund association is located, with sufficient allowable
service credit to meet the minimum service requirements specified in section
354A.31, subdivision 1, shall be entitled to a deferred retirement annuity in
lieu of a refund pursuant to subdivision 1.
The deferred retirement annuity shall be computed pursuant to section
354A.31 and shall be augmented as provided in this subdivision. The deferred annuity shall commence upon
application after the person on deferred status attains at least the minimum
age specified in section 354A.31, subdivision 1.
(b) The monthly annuity amount that had accrued when
the member ceased to render teaching service must be augmented from the first day
of the month following the month during which the member ceased to render
teaching service to the effective date of retirement. There is no augmentation if this period is
less than three months. For a member
of the St. Paul Teachers Retirement Fund Association, the rate of
augmentation is three percent compounded annually until January 1 of the year
following the year in which the former member attains age 55, and five percent
compounded annually after that date to the effective date of retirement if the
employee became an employee before July 1, 2006, and at 2.5 percent compounded
annually if the employee becomes an employee after June 30, 2006. For a member of the Duluth Teachers
Retirement Fund Association, the rate of augmentation is three percent
compounded annually until January 1 of the year following the year in which the
former member attains age 55, five percent compounded annually after that date
to July 1, 2012, and two percent compounded annually after that date to the
effective date of retirement if the employee became an employee before July 1,
2006, and at 2.5 percent compounded annually to July 1, 2012, and two
percent compounded annually after that date to the effective date of retirement
if the employee becomes an employee after June 30, 2006. If a person has more than one period of
uninterrupted service, a separate average salary determined under section
354A.31 must be used for each period, and the monthly annuity amount related to
each period must be augmented as provided in this subdivision. The sum of the augmented monthly annuity
amounts determines the total deferred annuity payable. If a person repays a refund, the service
restored by the repayment must be considered as continuous with the next period
of service for which the person has credit with the fund. If a person does not render teaching services
in any one fiscal year or more consecutive fiscal years and then resumes
teaching service, the formula percentages used from the date of resumption of
teaching service are those applicable to new members. The mortality table and interest assumption
used to compute the annuity are the table established by the fund to compute
other annuities, and the interest assumption under section 356.215 in effect
when the member retires. A period of
uninterrupted service for the purpose of this subdivision means a period of
covered teaching service during which the member has not been separated from
active service for more than one fiscal year.
(c) The augmentation provided by this subdivision
applies to the benefit provided in section 354A.35, subdivision 2. The augmentation provided by this subdivision
does not apply to any period in which a person is on an approved leave of
absence from an employer unit.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 65.
Minnesota Statutes 2008, section 354A.37, subdivision 3, is amended to
read:
Subd. 3. Computation of refund amount. A former coordinated member of the
St. Paul Teachers Retirement Fund Association who qualifies for a
refund pursuant to under subdivision 1 shall receive a refund
equal to the amount of the former coordinated member's accumulated employee contributions
with interest at the rate of six percent per annum compounded annually. A former coordinated member of the Duluth
Teachers Retirement Fund Association who qualifies for a refund under
subdivision 1 shall receive a refund equal to the amount of the former
coordinated member's accumulated employee contributions with interest at the
rate of six percent per annum compounded annually to July 1, 2010, and four
percent per annum compounded annually thereafter.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
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Sec. 66. Minnesota Statutes 2008, section 354A.37,
subdivision 4, is amended to read:
Subd. 4. Certain refunds at normal retirement
age. Any coordinated member who has
attained the normal retirement age with less than ten years of allowable
service credit and has terminated active teaching service shall be entitled to
a refund in lieu of a proportionate annuity pursuant to section 356.32. The refund for a member of the
St. Paul Teachers Retirement Fund Association shall be equal to the
coordinated member's accumulated employee contributions plus interest at the
rate of six percent compounded annually.
The refund for a member of the Duluth Teachers Retirement Fund
Association shall be equal to the coordinated member's accumulated employee
contributions plus interest at the rate of six percent compounded annually to
July 1, 2010, and four percent per annum compounded annually thereafter.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 67.
Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to
read:
Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use the
applicable following preretirement interest assumption and the applicable
following postretirement interest assumption:
preretirement postretirement
interest
rate interest
rate
plan assumption assumption
general state employees retirement plan 8.5% 6.0%
correctional state employees retirement plan 8.5 6.0
State Patrol retirement plan 8.5 6.0
legislators retirement plan 8.5 6.0
elective state officers retirement plan 8.5 6.0
judges retirement plan 8.5 6.0
general public employees retirement plan 8.5 6.0
public employees police and fire retirement plan 8.5 6.0
local government correctional service retirement plan 8.5 6.0
teachers retirement plan 8.5 6.0
Minneapolis employees retirement plan 6.0 5.0
Duluth teachers retirement plan 8.5 8.5
St. Paul teachers retirement plan 8.5 8.5
Minneapolis Police Relief Association 6.0 6.0
Fairmont Police Relief Association 5.0 5.0
Minneapolis Fire Department Relief Association 6.0 6.0
Virginia Fire Department Relief Association 5.0 5.0
Bloomington Fire Department Relief Association 6.0 6.0
local monthly benefit volunteer firefighters relief
associations 5.0 5.0
(b) Before July 1, 2010, the actuarial valuation must
use the applicable following single rate future salary increase assumption, the
applicable following modified single rate future salary increase assumption, or
the applicable following graded rate future salary increase assumption:
(1)
single rate future salary increase assumption
future
salary
plan increase
assumption
legislators retirement plan 5.0%
judges retirement plan 4.0
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10665
Minneapolis Police
Relief Association 4.0
Fairmont Police Relief Association 3.5
Minneapolis Fire Department Relief Association 4.0
Virginia Fire Department Relief Association 3.5
Bloomington Fire Department Relief Association 4.0
(2)
modified single rate future salary increase assumption
future
salary
plan increase
assumption
Minneapolis employees retirement plan the prior calendar year
amount increased
first
by 1.0198 percent to prior fiscal year
date
and then increased by 4.0 percent
annually
for each future year
(3) age-related
select and ultimate future salary increase assumption or graded rate future
salary increase assumption
future
salary
plan increase
assumption
general state employees retirement plan select
calculation and assumption A
correctional state employees retirement plan assumption
H G
State Patrol retirement plan assumption
G F
general public employees retirement plan select
calculation and assumption B
public employees police and fire fund retirement plan assumption
C B
local government correctional service retirement plan assumption
G F
teachers retirement plan assumption
D C
Duluth teachers retirement plan assumption
E D
St. Paul teachers retirement plan assumption
F E
The select calculation is: during the designated select period, a
designated percentage rate is multiplied by the result of the designated
integer minus T, where T is the number of completed years of service, and is
added to the applicable future salary increase assumption. The designated select period is five years
and the designated integer is five for the general state employees retirement
plan and the general public employees retirement plan. The designated select period is ten years and
the designated integer is ten for all other retirement plans covered by this
clause. The designated percentage rate
is: (1) 0.2 percent for the correctional
state employees retirement plan, the State Patrol retirement plan, the public
employees police and fire plan, and the local government correctional service
plan; (2) 0.6 percent for the general state employees retirement plan and
the general public employees retirement plan; and (3) 0.3 percent for the
teachers retirement plan, the Duluth Teachers Retirement Fund Association, and
the St. Paul Teachers Retirement Fund Association. The select calculation for the Duluth
Teachers Retirement Fund Association is 8.00 percent per year for service years
one through seven, 7.25 percent per year for service years seven and eight, and
6.50 percent per year for service years eight and nine.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
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The ultimate future
salary increase assumption is:
age A B C B D C E D F E G F H G
16 5.95% 5.95% 11.00% 7.70% 8.00% 6.90% 7.7500% 7.2500%
17 5.90 5.90 11.00 7.65 8.00 6.90 7.7500 7.2500
18 5.85 5.85 11.00 7.60 8.00 6.90 7.7500 7.2500
19 5.80 5.80 11.00 7.55 8.00 6.90 7.7500 7.2500
20 5.75 5.40 11.00 5.50 6.90 6.90 7.7500 7.2500
21 5.75 5.40 11.00 5.50 6.90 6.90 7.1454 6.6454
22 5.75 5.40 10.50 5.50 6.90 6.90 7.0725 6.5725
23 5.75 5.40 10.00 5.50 6.85 6.85 7.0544 6.5544
24 5.75 5.40 9.50 5.50 6.80 6.80 7.0363 6.5363
25 5.75 5.40 9.00 5.50 6.75 6.75 7.0000 6.5000
26 5.75 5.36 8.70 5.50 6.70 6.70 7.0000 6.5000
27 5.75 5.32 8.40 5.50 6.65 6.65 7.0000 6.5000
28 5.75 5.28 8.10 5.50 6.60 6.60 7.0000 6.5000
29 5.75 5.24 7.80 5.50 6.55 6.55 7.0000 6.5000
30 5.75 5.20 7.50 5.50 6.50 6.50 7.0000 6.5000
31 5.75 5.16 7.30 5.50 6.45 6.45 7.0000 6.5000
32 5.75 5.12 7.10 5.50 6.40 6.40 7.0000 6.5000
33 5.75 5.08 6.90 5.50 6.35 6.35 7.0000 6.5000
34 5.75 5.04 6.70 5.50 6.30 6.30 7.0000 6.5000
35 5.75 5.00 6.50 5.50 6.25 6.25 7.0000 6.5000
36 5.75 4.96 6.30 5.50 6.20 6.20 6.9019 6.4019
37 5.75 4.92 6.10 5.50 6.15 6.15 6.8074 6.3074
38 5.75 4.88 5.90 5.40 6.10 6.10 6.7125 6.2125
39 5.75 4.84 5.70 5.30 6.05 6.05 6.6054 6.1054
40 5.75 4.80 5.50 5.20 6.00 6.00 6.5000 6.0000
41 5.75 4.76 5.40 5.10 5.90 5.95 6.3540 5.8540
42 5.75 4.72 5.30 5.00 5.80 5.90 6.2087 5.7087
43 5.65 4.68 5.20 4.90 5.70 5.85 6.0622 5.5622
44 5.55 4.64 5.10 4.80 5.60 5.80 5.9048 5.4078
45 5.45 4.60 5.00 4.70 5.50 5.75 5.7500 5.2500
46 5.35 4.56 4.95 4.60 5.40 5.70 5.6940 5.1940
47 5.25 4.52 4.90 4.50 5.30 5.65 5.6375 5.1375
48 5.15 4.48 4.85 4.50 5.20 5.60 5.5822 5.0822
49 5.05 4.44 4.80 4.50 5.10 5.55 5.5404 5.0404
50 4.95 4.40 4.75 4.50 5.00 5.50 5.5000 5.0000
51 4.85 4.36 4.75 4.50 4.90 5.45 5.4384 4.9384
52 4.75 4.32 4.75 4.50 4.80 5.40 5.3776 4.8776
53 4.65 4.28 4.75 4.50 4.70 5.35 5.3167 4.8167
54 4.55 4.24 4.75 4.50 4.60 5.30 5.2826 4.7826
55 4.45 4.20 4.75 4.50 4.50 5.25 5.2500 4.7500
56 4.35 4.16 4.75 4.50 4.40 5.20 5.2500 4.7500
57 4.25 4.12 4.75 4.50 4.30 5.15 5.2500 4.7500
58 4.25 4.08 4.75 4.60 4.20 5.10 5.2500 4.7500
59 4.25 4.04 4.75 4.70 4.10 5.05 5.2500 4.7500
60 4.25 4.00 4.75 4.80 4.00 5.00 5.2500 4.7500
61 4.25 4.00 4.75 4.90 3.90 5.00 5.2500 4.7500
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Day - Wednesday, April 28, 2010 - Top of Page 10667
62 4.25 4.00 4.75 5.00 3.80 5.00 5.2500 4.7500
63 4.25 4.00 4.75 5.10 3.70 5.00 5.2500 4.7500
64 4.25 4.00 4.75 5.20 3.60 5.00 5.2500 4.7500
65 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
66 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
67 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
68 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
69 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
70 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
71 4.25 4.00 5.20
(4) service-related ultimate future
salary increase assumption
service
length general
employees retirement plan of the
Public
Employees Retirement Association
1 12.03%
2 8.90
3 7.46
4 6.58
5 5.97
6 5.52
7 5.16
8 4.87
9 4.63
10 4.42
11 4.24
12 4.08
13 3.94
14 3.82
15 3.70
16 3.60
17 3.51
18 3.50
19 3.50
20 3.50
21 3.50
22 3.50
23 3.50
24 3.50
25 3.50
26 3.50
27 3.50
28 3.50
29 3.50
30
or more 3.50
(c) Before July 2, 2010, the actuarial valuation must use
the applicable following payroll growth assumption for calculating the
amortization requirement for the unfunded actuarial accrued liability where the
amortization retirement is calculated as a level percentage of an increasing
payroll:
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Top of Page 10668
Plan payroll growth
assumption
general state employees retirement plan 4.50%
correctional state employees retirement plan 4.50
State Patrol retirement plan 4.50
legislators retirement plan 4.50
judges retirement plan 4.00
general public employees retirement plan of
the
Public Employees Retirement
Association 4.50
4.00
public employees police and fire retirement plan 4.50
local government correctional service retirement plan 4.50
teachers retirement plan 4.50
Duluth teachers retirement plan 4.50
St. Paul teachers retirement plan 5.00
(d) After July 1, 2010, the assumptions set forth in
paragraphs (b) and (c) continue to apply, unless a different salary assumption
or a different payroll increase assumption:
(1) has been proposed by the governing board of the
applicable retirement plan;
(2) is accompanied by the concurring recommendation of
the actuary retained under section 356.214, subdivision 1, if applicable, or by
the approved actuary preparing the most recent actuarial valuation report if
section 356.214 does not apply; and
(3) has been approved or deemed approved under
subdivision 18.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 68.
Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, is
amended to read:
Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating
the level normal cost, the actuarial valuation of the retirement plan must
contain an exhibit for financial reporting purposes indicating the additional
annual contribution sufficient to amortize the unfunded actuarial accrued
liability and must contain an exhibit for contribution determination purposes
indicating the additional contribution sufficient to amortize the unfunded
actuarial accrued liability. For the
retirement plans listed in subdivision 8, paragraph (c), the additional
contribution must be calculated on a level percentage of covered payroll basis
by the established date for full funding in effect when the valuation is
prepared, assuming annual payroll growth at the applicable percentage rate set
forth in subdivision 8, paragraph (c).
For all other retirement plans, the additional annual contribution must
be calculated on a level annual dollar amount basis.
(b) For any retirement plan other than the Minneapolis
Employees Retirement Fund, the general employees retirement plan of the Public
Employees Retirement Association, the general state employees retirement
plan of the Minnesota State Retirement System, and the St. Paul
Teachers Retirement Fund Association, if there has not been a change in the
actuarial assumptions used for calculating the actuarial accrued liability of
the fund, a change in the benefit plan governing annuities and benefits payable
from the fund, a change in the actuarial cost method used in calculating the
actuarial accrued liability of all or a portion of the fund, or a combination
of the three, which change or changes by itself or by themselves without
inclusion of any other items of increase or decrease produce a net increase in
the unfunded actuarial accrued liability of the fund, the established date for
full funding is the first actuarial valuation date occurring after June 1,
2020.
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(c) For any
retirement plan other than the Minneapolis Employees Retirement Fund and the
general employees retirement plan of the Public Employees Retirement
Association, if there has been a change in any or all of the actuarial
assumptions used for calculating the actuarial accrued liability of the fund, a
change in the benefit plan governing annuities and benefits payable from the
fund, a change in the actuarial cost method used in calculating the actuarial
accrued liability of all or a portion of the fund, or a combination of the
three, and the change or changes, by itself or by themselves and without
inclusion of any other items of increase or decrease, produce a net increase in
the unfunded actuarial accrued liability in the fund, the established date for
full funding must be determined using the following procedure:
(i) the unfunded actuarial accrued liability of the
fund must be determined in accordance with the plan provisions governing
annuities and retirement benefits and the actuarial assumptions in effect
before an applicable change;
(ii) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the unfunded actuarial
accrued liability amount determined under item (i) by the established date for
full funding in effect before the change must be calculated using the interest
assumption specified in subdivision 8 in effect before the change;
(iii) the unfunded actuarial accrued liability of the
fund must be determined in accordance with any new plan provisions governing
annuities and benefits payable from the fund and any new actuarial assumptions
and the remaining plan provisions governing annuities and benefits payable from
the fund and actuarial assumptions in effect before the change;
(iv) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the difference between
the unfunded actuarial accrued liability amount calculated under item (i) and
the unfunded actuarial accrued liability amount calculated under item (iii)
over a period of 30 years from the end of the plan year in which the applicable
change is effective must be calculated using the applicable interest assumption
specified in subdivision 8 in effect after any applicable change;
(v) the level annual dollar or level percentage
amortization contribution under item (iv) must be added to the level annual
dollar amortization contribution or level percentage calculated under item
(ii);
(vi) the period in which the unfunded actuarial
accrued liability amount determined in item (iii) is amortized by the total
level annual dollar or level percentage amortization contribution computed
under item (v) must be calculated using the interest assumption specified in
subdivision 8 in effect after any applicable change, rounded to the nearest
integral number of years, but not to exceed 30 years from the end of the plan
year in which the determination of the established date for full funding using
the procedure set forth in this clause is made and not to be less than the
period of years beginning in the plan year in which the determination of the
established date for full funding using the procedure set forth in this clause
is made and ending by the date for full funding in effect before the change;
and
(vii) the period determined under item (vi) must be
added to the date as of which the actuarial valuation was prepared and the date
obtained is the new established date for full funding.
(d) For the Minneapolis Employees Retirement Fund, the
established date for full funding is June 30, 2020.
(e) For the general employees retirement plan of the
Public Employees Retirement Association, the established date for full funding
is June 30, 2031.
(f) For the Teachers Retirement Association, the
established date for full funding is June 30, 2037.
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(g) For the
correctional state employees retirement plan of the Minnesota State Retirement
System, the established date for full funding is June 30, 2038.
(h) For the judges
retirement plan, the established date for full funding is June 30, 2038.
(i) For the public employees
police and fire retirement plan, the established date for full funding is
June 30, 2038.
(j) For the St. Paul
Teachers Retirement Fund Association, the established date for full funding is
June 30 of the 25th year from the valuation date. In addition to other requirements of this
chapter, the annual actuarial valuation shall contain an exhibit indicating the
funded ratio and the deficiency or sufficiency in annual contributions when
comparing liabilities to the market value of the assets of the fund as of the
close of the most recent fiscal year.
(k) For the general state
employees retirement plan of the Minnesota State Retirement System, the
established date for full funding is June 30, 2040.
(l) For the retirement plans for
which the annual actuarial valuation indicates an excess of valuation assets
over the actuarial accrued liability, the valuation assets in excess of the
actuarial accrued liability must be recognized as a reduction in the current
contribution requirements by an amount equal to the amortization of the excess
expressed as a level percentage of pay over a 30-year period beginning anew
with each annual actuarial valuation of the plan.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 69. Minnesota Statutes 2008, section 356.30,
subdivision 1, is amended to read:
Subdivision 1. Eligibility;
computation of annuity. (a)
Notwithstanding any provisions of the laws governing the retirement plans enumerated
in subdivision 3, a person who has met the qualifications of paragraph (b) may
elect to receive a retirement annuity from each enumerated retirement plan in
which the person has at least one-half year of allowable service, based on the
allowable service in each plan, subject to the provisions of paragraph
(c).
(b) A person may receive,
upon retirement, a retirement annuity from each enumerated retirement plan in
which the person has at least one-half year of allowable service, and
augmentation of a deferred annuity calculated at the appropriate rate under the
laws governing each public pension plan or fund named in subdivision 3, based
on the date of the person's initial entry into public employment from the date
the person terminated all public service if:
(1) the person has allowable
service totaling an amount that allows the person to receive an annuity
in any two or more of the enumerated plans;
(2) the person has
sufficient allowable service in total that equals or exceeds the applicable service
credit vesting requirement of the retirement plan with the longest applicable
service credit vesting requirement; and
(2) (3) the person has
not begun to receive an annuity from any enumerated plan or the person has made
application for benefits from each applicable plan and the effective dates of
the retirement annuity with each plan under which the person chooses to receive
an annuity are within a one-year period.
(c) The retirement annuity
from each plan must be based upon the allowable service, accrual rates, and
average salary in the applicable plan except as further specified or modified
in the following clauses:
(1) the laws governing
annuities must be the law in effect on the date of termination from the last
period of public service under a covered retirement plan with which the person
earned a minimum of one-half year of allowable service credit during that
employment;
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Day - Wednesday, April 28, 2010 - Top of Page 10671
(2) the
"average salary" on which the annuity from each covered plan in which
the employee has credit in a formula plan must be based on the employee's
highest five successive years of covered salary during the entire service in
covered plans;
(3) the accrual rates to be
used by each plan must be those percentages prescribed by each plan's formula
as continued for the respective years of allowable service from one plan to the
next, recognizing all previous allowable service with the other covered plans;
(4) the allowable service in
all the plans must be combined in determining eligibility for and the
application of each plan's provisions in respect to reduction in the annuity
amount for retirement prior to normal retirement age; and
(5) the annuity amount
payable for any allowable service under a nonformula plan of a covered plan
must not be affected, but such service and covered salary must be used in the
above calculation.
(d) This section does not
apply to any person whose final termination from the last public service under
a covered plan was before May 1, 1975.
(e) For the purpose of
computing annuities under this section, the accrual rates used by any covered
plan, except the public employees police and fire plan, the judges retirement
fund, and the State Patrol retirement plan, must not exceed the percent
specified in section 356.315, subdivision 4, per year of service for any year
of service or fraction thereof. The
formula percentage used by the judges retirement fund must not exceed the
percentage rate specified in section 356.315, subdivision 8, per year of
service for any year of service or fraction thereof. The accrual rate used by the public employees
police and fire plan and the State Patrol retirement plan must not exceed the
percentage rate specified in section 356.315, subdivision 6, per year of
service for any year of service or fraction thereof. The accrual rate or rates used by the
legislators retirement plan must not exceed 2.5 percent, but this limit does
not apply to the adjustment provided under section 3A.02, subdivision 1,
paragraph (c).
(f) Any period of time for
which a person has credit in more than one of the covered plans must be used
only once for the purpose of determining total allowable service.
(g) If the period of
duplicated service credit is more than one-half year, or the person has credit
for more than one-half year, with each of the plans, each plan must apply its
formula to a prorated service credit for the period of duplicated service based
on a fraction of the salary on which deductions were paid to that fund for the
period divided by the total salary on which deductions were paid to all plans
for the period.
(h) If the period of duplicated
service credit is less than one-half year, or when added to other service
credit with that plan is less than one-half year, the service credit must be
ignored and a refund of contributions made to the person in accord with that
plan's refund provisions.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 70. Minnesota Statutes 2008, section 356.302,
subdivision 3, is amended to read:
Subd. 3. General
employee plan eligibility requirements. A
disabled member of a covered retirement plan who has credit for allowable
service in a combination of general employee retirement plans is entitled to a
combined service disability benefit if the member:
(1) is less than the normal
retirement age on the date of the application for the disability benefit;
(2) has become totally and
permanently disabled;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10672
(3) has credit for
allowable service in any combination of general employee retirement plans
totaling at least three years the number of years required by the
applicable retirement plan with the longest service credit requirement for
disability benefit receipt;
(4) has credit for at least one-half year of allowable
service with the current general employee retirement plan before the
commencement of the disability;
(5) has at least three continuous years of allowable
service credit by the general employee retirement plan or has at least a total
of three years of allowable service credit by a combination of general employee
retirement plans in a 72-month period during which no interruption of allowable
service credit from a termination of employment exceeded 29 days; and
(6) was not receiving a retirement annuity or
disability benefit from any covered general employee retirement plan at the
time of the commencement of the disability.
EFFECTIVE
DATE. This section is effective the day following
final enactment.
Sec. 71.
Minnesota Statutes 2008, section 356.302, subdivision 4, is amended to
read:
Subd. 4. Public safety plan eligibility
requirements. A disabled member of a
covered retirement plan who has credit for allowable service in a combination
of public safety employee retirement plans is entitled to a combined service
disability benefit if the member:
(1) has become occupationally disabled;
(2) has credit for allowable service in any combination
of public safety employee retirement plans totaling at least one year the
minimum period of service credit required by the applicable retirement plan
with the longest service credit eligibility requirement for the receipt of a
duty-related disability benefit if the disability is duty-related or
totaling at least three years the minimum period of service credit
required by the applicable retirement plan with the longest service credit
eligibility requirement for a disability benefit that is not duty-related if
the disability is not duty-related;
(3) has credit for at least one-half year of allowable
service with the current public safety employee retirement plan before the
commencement of the disability; and
(4) was not receiving a retirement annuity or
disability benefit from any covered public safety employee retirement plan at
the time of the commencement of the disability.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 72.
Minnesota Statutes 2008, section 356.302, subdivision 5, is amended to
read:
Subd. 5. General and public safety plan eligibility
requirements. A disabled member of a
covered retirement plan who has credit for allowable service in a combination
of both a public safety employee retirement plan and general employee
retirement plan must meet the qualifying requirements in subdivisions 3 and 4
to receive a combined service disability benefit from the applicable general
employee and public safety employee retirement plans, except that the person
need only be a member of a covered retirement plan at the time of the
commencement of the disability, that the person must have allowable service
credit for the applicable retirement plan with the longest service credit
eligibility requirement for the receipt of a disability benefit, and that
the minimum allowable service requirements of subdivisions 3, clauses (3) and
(5), and 4, clauses (3) and (4), may be met in any combination of covered
retirement plans.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
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Day - Wednesday, April 28, 2010 - Top of Page 10673
Sec. 73. Minnesota Statutes 2008, section 356.303,
subdivision 2, is amended to read:
Subd. 2. Entitlement;
eligibility. Notwithstanding any
provision of law to the contrary governing a covered retirement plan, a person
who is the survivor of a deceased member of a covered retirement plan may
receive a combined service survivor benefit from each covered retirement plan
in which the deceased member had credit for at least one-half year of allowable
service if the deceased member:
(1) had credit for
sufficient allowable service in any combination of covered retirement plans to
meet any the minimum allowable service credit requirement of the applicable
covered retirement fund with the longest allowable service credit
requirement for qualification for a survivor benefit or annuity;
(2) had credit for at least
one-half year of allowable service with the most recent covered retirement plan
before the date of death and was an active member of that covered retirement
plan on the date of death; and
(3) was not receiving a
retirement annuity from any covered retirement plan on the date of death.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 74. Minnesota Statutes 2008, section 356.315,
subdivision 5, is amended to read:
Subd. 5. Correctional
plan members. The applicable benefit
accrual rate is 2.4 percent if employed as a correctional state employee
before July 1, 2010, or 2.2 percent if employed as a correctional state
employee after June 30, 2010.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 75. Minnesota Statutes 2009 Supplement, section
356.415, subdivision 1, is amended to read:
Subdivision 1. Annual
postretirement adjustments; generally.
(a) Except as otherwise provided in subdivision 1a, 1b, 1c, 1d,
or 1e, retirement annuity, disability benefit, or survivor benefit
recipients of a covered retirement plan are entitled to a postretirement
adjustment annually on January 1, as follows:
(1) a postretirement
increase of 2.5 percent must be applied each year, effective January 1, to the
monthly annuity or benefit of each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least 12 full months prior to the
January 1 increase; and
(2) for each annuitant or
benefit recipient who has been receiving an annuity or a benefit amount for
at least one full month, an annual postretirement increase of 1/12 of 2.5
percent for each month that the person has been receiving an annuity or
benefit must be applied, effective on January 1 following the calendar
year in which the person has been retired for less than 12 months.
(b) The increases provided
by this section subdivision commence on January 1, 2010.
(c) An increase in annuity
or benefit payments under this section must be made automatically unless
written notice is filed by the annuitant or benefit recipient with the
executive director of the covered retirement plan requesting that the increase
not be made.
(d) The retirement annuity
payable to a person who retires before becoming eligible for Social Security
benefits and who has elected the optional payment as provided in section
353.29, subdivision 6, or 354.35 must be treated as the sum of a period
certain retirement annuity and a life retirement annuity for the purposes of
any postretirement adjustment. The
period certain retirement annuity plus the life retirement annuity must be the
annuity amount
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payable until age
62 for section 353.29, subdivision 6, or age 62, 65, or normal retirement
age, as selected by the member at retirement, for an annuity amount payable
under section 354.35. A
postretirement adjustment granted on the period certain retirement annuity must
terminate when the period certain retirement annuity terminates.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 76.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1a.
Annual postretirement
adjustments; Minnesota State Retirement System plans other than State Patrol
retirement plan. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
legislators retirement plan, the general state employees retirement plan, the
correctional state employees retirement plan, the elected state officers
retirement plan, the unclassified state employees retirement program, and the
judges retirement plan are entitled to a postretirement adjustment annually on
January 1, as follows:
(1) a postretirement increase of two percent must be
applied each year, effective on January 1, to the monthly annuity or benefit of
each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least 18 full months before the January 1 increase; and
(2) for each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least six full months, an annual
postretirement increase of 1/12 of two percent for each month that the person
has been receiving an annuity or benefit must be applied, effective January 1, following
the calendar year in which the person has been retired for at least six months,
but has been retired for less than 18 months.
(b) The increases provided by this subdivision commence
on January 1, 2011. Increases under this
subdivision for the general state employees retirement plan, the correctional
state employees retirement plan, or the judges retirement plan terminate on
December 31 of the calendar year in which the actuarial valuation prepared by
the approved actuary under sections 356.214 and 356.215 and the standards for
actuarial work promulgated by the Legislative Commission on Pensions and
Retirement indicates that the market value of assets of the retirement plan
equals or exceeds 90 percent of the actuarial accrued liability of the retirement
plan and increases under subdivision 1 recommence after that date. Increases under this subdivision for the
legislators retirement plan or the elected state officers retirement plan
terminate on December 31 of the calendar year in which the actuarial valuation
prepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on
Pensions and Retirement indicates that the market value of assets of the
general state employees retirement plan equals or exceeds 90 percent of the
actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.
(c) An increase in annuity or benefit payments under
this subdivision must be made automatically unless written notice is filed by
the annuitant or benefit recipient with the executive director of the
applicable covered retirement plan requesting that the increase not be made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 77.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1b.
Annual postretirement
adjustments; PERA; general employees retirement plan and local government
correctional retirement plan. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
general employees retirement plan of the Public Employees Retirement
Association and the local government correctional service retirement plan are
entitled to a postretirement adjustment annually on January 1, as follows:
(1) for January 1, 2011, and each successive January 1
until funding stability is restored for the applicable retirement plan, a postretirement
increase of one percent must be applied each year, effective on January 1, to
the monthly annuity or benefit amount of each annuitant or benefit recipient
who has been receiving an annuity or benefit for at least 12 full months as of
the current June 30;
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(2) for January
1, 2011, and each successive January 1 until funding stability is restored for
the applicable retirement plan, for each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least one full month, but less
than 12 full months as of the current June 30, an annual postretirement
increase of 1/12 of one percent for each month the person has been receiving an
annuity or benefit must be applied;
(3) for each January 1 following the restoration of
funding stability for the applicable retirement plan, a postretirement increase
of 2.5 percent must be applied each year, effective January 1, to the monthly
annuity or benefit amount of each annuitant or benefit recipient who has been
receiving an annuity or benefit for at least 12 full months as of the current
June 30; and
(4) for each January 1 following restoration of funding
stability for the applicable retirement plan, for each annuity or benefit
recipient who has been receiving an annuity or a benefit for at least one full
month, but less than 12 full months as of the current June 30, an annual
postretirement increase of 1/12 of 2.5 percent for each month the person has
been receiving an annuity or benefit must be applied.
(b) Funding stability is restored when the market value
of assets of the applicable retirement plan equals or exceeds 90 percent of the
actuarial accrued liabilities of the applicable plan in the most recent prior
actuarial valuation prepared under section 356.215 and the standards for
actuarial work by the approved actuary retained by the Public Employees
Retirement Association under section 356.214.
(c) If, after applying the increase as provided for in
paragraph (a), clauses (3) and (4), the market value of the applicable
retirement plan is determined in the next subsequent actuarial valuation
prepared under section 356.215 to be less than 90 percent of the actuarial
accrued liability of any of the applicable Public Employees Retirement
Association plans, the increase provided in paragraph (a), clauses (1) and (2),
are to be applied as of the next successive January until funding stability is
again restored.
(d) An increase in annuity or benefit payments under
this section must be made automatically unless written notice is filed by the
annuitant or benefit recipient with the executive director of the Public
Employees Retirement Association requesting that the increase not be made.
(e) The retirement annuity payable to a person who
retires before becoming eligible for Social Security benefits and who has
elected the optional payment, as provided in section 353.29, subdivision 6,
must be treated as the sum of a period-certain retirement annuity and a life
retirement annuity for the purposes of any postretirement adjustment. The period-certain retirement annuity plus
the life retirement annuity must be the annuity amount payable until age 62 for
section 353.29, subdivision 6. A
postretirement adjustment granted on the period-certain retirement annuity must
terminate when the period-certain retirement annuity terminates.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 78.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1c.
Annual postretirement
adjustments; PERA-P&F. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
public employees police and fire retirement plan are entitled to a
postretirement adjustment annually on January 1, as follows:
(1) for January 1, 2011, and for January 1, 2012, for
each annuitant or benefit recipient who has been receiving the annuity or
benefit for at least 12 full months as of the immediate preceding June 30, an
amount equal to one percent in each year;
(2) for January 1, 2011, and for January 1, 2012, for
each annuitant or benefit recipient who has been receiving the annuity or
benefit for at least one full month as of the immediate preceding June 30, an
amount equal to 1/12 of one percent in each year;
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(3) for January
1, 2013, and each successive January 1 that follows the loss of funding
stability as defined under paragraph (b) until funding stability as defined
under paragraph (b) is again restored, for each annuitant or benefit recipient
who has been receiving the annuity or benefit for at least 12 full months as of
the immediate preceding June 30, an amount equal to the percentage increase in
the Consumer Price Index for urban wage earners and clerical workers all items
index published by the Bureau of Labor Statistics of the United States
Department of Labor between the immediate preceding June 30 and the June 30
occurring 12 months previous, but not to exceed 1.5 percent;
(4) for January 1, 2013, and each successive January 1
that follows the loss of funding stability as defined under paragraph (b) until
funding stability as defined under paragraph (b) is again restored, for each
annuitant or benefit recipient who has been receiving the annuity or benefit
for at least one full month as of the immediate preceding June 30, an amount
equal to 1/12 of the percentage increase in the Consumer Price Index for urban
wage earners and clerical workers all items index published by the Bureau of
Labor Statistics of the United States Department of Labor between the immediate
preceding June 30 and the June 30 occurring 12 months previous for each full
month of annuity or benefit receipt, but not to exceed 1/12 of 1.5 percent for
each full month of annuity or benefit receipt;
(5) for each January 1 following the restoration of
funding stability as defined under paragraph (b) and during the continuation of
funding stability as defined under paragraph (b), for each annuitant or benefit
recipient who has been receiving the annuity or benefit for at least 12 full
months as of the immediate preceding June 30, an amount equal to the percentage
increase in the Consumer Price Index for urban wage earners and clerical
workers all items index published by the Bureau of Labor Statistics of the
United States Department of Labor between the immediate preceding June 30 and
the June 30 occurring 12 months previous, but not to exceed 2.5 percent; and
(6) for each January 1 following the restoration of
funding stability as defined under paragraph (b) and during the continuation of
funding stability as defined under paragraph (b), for each annuitant or benefit
recipient who has been receiving the annuity or benefit for at least one full
month as of the immediate preceding June 30, an amount equal to 1/12 of the
percentage increase in the Consumer Price Index for urban wage earners and
clerical workers all items index published by the Bureau of Labor Statistics of
the United States Department of Labor between the immediate preceding June 30
and the June 30 occurring 12 months previous for each full month of annuity or
benefit receipt, but not to exceed 1/12 of 2.5 percent for each full month of annuity
or benefit receipt.
(b) Funding stability is restored when the market
value of assets of the public employees police and fire retirement plan equals
or exceeds 90 percent of the actuarial accrued liabilities of the applicable
plan in the most recent prior actuarial valuation prepared under section
356.215 and under the standards for actuarial work of the Legislative
Commission on Pensions and Retirement by the approved actuary retained by the
Public Employees Retirement Association under section 356.214.
(c) An increase in annuity or benefit payments under
this section must be made automatically unless written notice is filed by the
annuitant or benefit recipient with the executive director of the Public
Employees Retirement Association requesting that the increase not be made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 79.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1d.
Teachers Retirement Association
annual postretirement adjustments. (a)
Retirement annuity, disability benefit, or survivor benefit recipients of the
Teachers Retirement Association are entitled to a postretirement adjustment
annually on January 1, as follows:
(1) for January 1, 2011, and January 1, 2012, no
postretirement increase is payable;
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(2) for January
1, 2013, and each successive January 1 until funding stability is restored, a
postretirement increase of two percent must be applied each year, effective on
January 1, to the monthly annuity or benefit amount of each annuitant or
benefit recipient who has been receiving an annuity or a benefit for at least
18 full months prior to the January 1 increase;
(3) for January 1, 2013, and each successive January 1
until funding stability is restored, for each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least six full months, an
annual postretirement increase of 1/12 of two percent for each month the person
has been receiving an annuity or benefit must be applied, effective January 1,
following the year in which the person has been retired for less than 12
months;
(4) for each January 1 following the restoration of
funding stability, a postretirement increase of 2.5 percent must be applied
each year, effective January 1, to the monthly annuity or benefit amount of
each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least 18 full months prior to the January 1 increase; and
(5) for each January 1 following the restoration of
funding stability, for each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least six full months, an annual
postretirement increase of 1/12 of 2.5 percent for each month the person has
been receiving an annuity or benefit must be applied, effective January 1,
following the year in which the person has been retired for less than 12
months.
(b) Funding stability is restored when the market value
of assets of the Teachers Retirement Association equals or exceeds 90 percent
of the actuarial accrued liabilities of the Teachers Retirement Association in the
most recent prior actuarial valuation prepared under section 356.215 and the
standards for actuarial work by the approved actuary retained by the Teachers
Retirement Association under section 356.214.
(c) An increase in annuity or benefit payments under
this section must be made automatically unless written notice is filed by the
annuitant or benefit recipient with the executive director of the Teachers
Retirement Association requesting that the increase not be made.
(d) The retirement annuity payable to a person who
retires before becoming eligible for Social Security benefits and who has
elected the optional payment as provided in section 354.35 must be treated as
the sum of a period-certain retirement annuity and a life retirement annuity
for the purposes of any postretirement adjustment. The period-certain retirement annuity plus
the life retirement annuity must be the annuity amount payable until age 62,
65, or normal retirement age, as selected by the member at retirement, for an
annuity amount payable under section 354.35.
A postretirement adjustment granted on the period-certain retirement
annuity must terminate when the period-certain retirement annuity terminates.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 80.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 1e.
Annual postretirement
adjustments; State Patrol retirement plan.
(a) Retirement annuity, disability benefit, or survivor benefit recipients
of the State Patrol retirement plan are entitled to a postretirement adjustment
annually on January 1, as follows:
(1) a postretirement increase of 1.5 percent must be
applied each year, effective on January 1, to the monthly annuity or benefit of
each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least 18 full months before the January 1 increase; and
(2) for each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least six full months, an annual
postretirement increase of 1/12 of 1.5 percent for each month that the person
has been receiving an annuity or benefit must be applied, effective January 1,
following the calendar year in which the person has been retired for at least
six months, but has been retired for less than 18 months.
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(b) The
increases provided by this subdivision commence on January 1, 2011. Increases under this subdivision for the
State Patrol retirement plan terminate on December 31 of the calendar year in
which the actuarial valuation prepared by the approved actuary under sections
356.214 and 356.215 and the standards for actuarial work promulgated by the
Legislative Commission on Pensions and Retirement indicates that the market
value of assets of the retirement plan equals or exceeds 90 percent of the
actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.
(c) An increase in annuity or benefit payments under
this subdivision must be made automatically unless written notice is filed by
the annuitant or benefit recipient with the executive director of the
applicable covered retirement plan requesting that the increase not be made.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 81.
Minnesota Statutes 2009 Supplement, section 356.415, is amended by
adding a subdivision to read:
Subd. 3.
Actuarial valuation reports
until funding is stabilized. Notwithstanding
any provision of section 356.215, subdivision 8, to the contrary, until the
actuarial valuations, prepared annually by the approved actuary under sections
356.214 and 356.215 and the standards for actuarial work promulgated by the
Legislative Commission on Pensions and Retirement, indicate that the market
value of assets of the applicable covered plans equals or exceeds 90 percent of
the actuarial accrued liabilities, the actuarial valuation reports must utilize
a postretirement interest rate assumption that is equal to the difference
between the preretirement interest rate assumption provided in section 356.215,
subdivision 8, and the stated annual postretirement adjustment rate provided
under this section, as applicable to each covered plan.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 82.
Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to
read:
Subd. 3. Payment.
(a) Beginning one year after the reemployment withholding period
ends relating to the reemployment that gave rise to the limitation, and the filing
of a written application, the retired member is entitled to the payment, in a
lump sum, of the value of the person's amount under subdivision 2, plus annual
compound interest at. For
the general state employees retirement plan, the correctional state employees
retirement plan, the general employees retirement plan of the Public Employees
Retirement Association, the public employees police and fire retirement plan,
the local government correctional employees retirement plan, and the teachers
retirement plan, the annual interest rate is six percent from the date on which
the amount was deducted from the retirement annuity to the date of payment or
until January 1, 2011, whichever is earlier, and no interest after January 1,
2011. For the Duluth Teachers Retirement
Fund Association, the annual interest is six percent from the date on which the
amount was deducted from the retirement annuity to the date of payment or until
June 30, 2010, whichever is earlier, and no interest after June 30, 2010. For the St. Paul Teachers Retirement
Fund Association, the annual interest is the compound annual rate of
six percent from the date that the amount was deducted from the retirement
annuity to the date of payment.
(b) The written application must be on a form prescribed
by the chief administrative officer of the applicable retirement plan.
(c) If the retired member dies before the payment
provided for in paragraph (a) is made, the amount is payable, upon written
application, to the deceased person's surviving spouse, or if none, to the
deceased person's designated beneficiary, or if none, to the deceased person's
estate.
(d) In lieu of the direct payment of the person's
amount under subdivision 2, on or after the payment date under paragraph (a),
if the federal Internal Revenue Code so permits, the retired member may elect
to have all or any portion of the payment amount under this section paid in the
form of a direct rollover to an eligible retirement plan
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as defined in
section 402(c) of the federal Internal Revenue Code that is specified by the
retired member. If the retired member
dies with a balance remaining payable under this section, the surviving spouse
of the retired member, or if none, the deceased person's designated
beneficiary, or if none, the administrator of the deceased person's estate may
elect a direct rollover under this paragraph.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 83.
Minnesota Statutes 2009 Supplement, section 423A.02, subdivision 3, is
amended to read:
Subd. 3. Reallocation of amortization or
supplementary amortization state aid. (a)
Seventy percent of the difference between $5,720,000 and the current year
amortization aid and supplemental amortization aid distributed under
subdivisions 1 and 1a that is not distributed for any reason to a municipality
for use by a local police or salaried fire relief association must be
distributed by the commissioner of revenue according to this paragraph. The commissioner shall distribute 50 percent
of the amounts derived under this paragraph to the Teachers Retirement
Association, ten percent to the Duluth Teachers Retirement Fund Association,
and 40 percent to the St. Paul Teachers Retirement Fund Association to
fund the unfunded actuarial accrued liabilities of the respective funds. These payments shall be made on or before
June 30 each fiscal year. If the
St. Paul Teachers Retirement Fund Association becomes fully funded, its
eligibility for this aid ceases. Amounts
remaining in the undistributed balance account at the end of the biennium if
aid eligibility ceases cancel to the general fund.
(b) In order to receive amortization and supplementary
amortization aid under paragraph (a), Independent School District No. 625,
St. Paul, must make contributions to the St. Paul Teachers Retirement
Fund Association in accordance with the following schedule:
Fiscal
Year Amount
1996 $0
1997 $0
1998 $200,000
1999 $400,000
2000 $600,000
2001
and thereafter $800,000
(c) Special School District No. 1, Minneapolis, and the
city of Minneapolis must each make contributions to the Teachers Retirement Association
in accordance with the following schedule:
Fiscal
Year City
amount School
district amount
1996 $0 $0
1997 $0 $0
1998 $250,000 $250,000
1999 $400,000 $400,000
2000 $550,000 $550,000
2001 $700,000 $700,000
2002 $850,000 $850,000
2003 and
thereafter $1,000,000 $1,000,000
(d) Money contributed under paragraph (a) and either
paragraph (b) or (c), as applicable, must be credited to a separate account in
the applicable teachers retirement fund and may not be used in determining any
benefit increases. The separate account
terminates for a fund when the aid payments to the fund under paragraph (a)
cease.
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(e) (d) Thirty percent
of the difference between $5,720,000 and the current year amortization aid and
supplemental amortization aid under subdivisions 1 and 1a that is not
distributed for any reason to a municipality for use by a local police or
salaried firefighter relief association must be distributed under section
69.021, subdivision 7, paragraph (d), as additional funding to support a
minimum fire state aid amount for volunteer firefighter relief associations.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 84. LOCAL
RETIREMENT FUND INVESTMENT AUTHORITIES STUDY.
A study
group consisting of representatives from pension plans subject to Minnesota
Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the state
auditor to study investment-related provisions, authorities, and limitations
under Minnesota Statutes, chapter 356A, and related sections of other
chapters. Administrative support for the
study group shall be provided by the state auditor. The study group shall prepare a report to
include an assessment of the effectiveness of current statutory prescriptions,
options for change, and recommendations for consideration by the governor and
the legislature during the 2011 legislative session. The report will be provided no later than
January 15, 2011, to the executive director of the Legislative Commission on
Pensions and Retirement, the chair and ranking minority caucus member of the
senate State and Local Government Operations and Oversight Committee, and the
chair and ranking minority caucus member of the house State and Local
Government Operations Reform, Technology and Elections Committee.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 85. BYLAW
AUTHORIZATION.
Consistent
with the requirements of Minnesota Statutes, section 354A.12, subdivision 4,
the board of the Duluth Teachers Retirement Fund Association is authorized to
revise the bylaws or articles of incorporation so that the requirements of this
act apply to the old law coordinated program.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 86. REPEALER.
Minnesota
Statutes 2008, section 354A.27, subdivision 1, is repealed.
EFFECTIVE DATE. This section
is effective July 1, 2010.
ARTICLE 2
MSRS
ADMINISTRATIVE PROVISIONS
Section
1. Minnesota Statutes 2008, section
352.01, subdivision 2a, is amended to read:
Subd. 2a. Included
employees. (a) "State
employee" includes:
(1)
employees of the Minnesota Historical Society;
(2)
employees of the State Horticultural Society;
(3)
employees of the Minnesota Crop Improvement Association;
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(4) employees of
the adjutant general who whose salaries are paid from federal
funds and who are not covered by any federal civilian employees retirement
system;
(5)
employees of the Minnesota State Colleges and Universities who are
employed under the university or college activities program;
(6)
currently contributing employees covered by the system who are temporarily
employed by the legislature during a legislative session or any currently
contributing employee employed for any special service as defined in
subdivision 2b, clause (8);
(7)
employees of the legislature who are appointed without a limit on the
duration of their employment and persons employed or designated by the
legislature or by a legislative committee or commission or other competent
authority to conduct a special inquiry, investigation, examination, or
installation;
(8)
trainees who are employed on a full-time established training program
performing the duties of the classified position for which they will be
eligible to receive immediate appointment at the completion of the training
period;
(9)
employees of the Minnesota Safety Council;
(10) any
employees who are on authorized leave of absence from the Transit
Operating Division of the former Metropolitan Transit Commission and who
are employed by the labor organization which is the exclusive bargaining agent
representing employees of the Transit Operating Division;
(11)
employees of the Metropolitan Council, Metropolitan Parks and Open Space
Commission, Metropolitan Sports Facilities Commission, or Metropolitan
Mosquito Control Commission, or Metropolitan Radio Board unless excluded
under subdivision 2b or are covered by another public pension
fund or plan under section 473.415, subdivision 3;
(12) judges
of the Tax Court;
(13)
personnel who were employed on June 30, 1992, by the University of Minnesota
in the management, operation, or maintenance of its heating plant facilities,
whose employment transfers to an employer assuming operation of the heating
plant facilities, so long as the person is employed at the University of
Minnesota heating plant by that employer or by its successor organization;
(14) personnel
who are employed as seasonal help employees in the classified
or unclassified service employed by the Department of Revenue;
(15)
persons who are employed by the Department of Commerce as a peace
officer in the Insurance Fraud Prevention Division under section 45.0135 who
have attained the mandatory retirement age specified in section 43A.34,
subdivision 4;
(16)
employees of the University of Minnesota unless excluded under subdivision 2b,
clause (3);
(17)
employees of the Middle Management Association whose employment began after
July 1, 2007, and to whom section 352.029 does not apply; and
(18)
employees of the Minnesota Government Engineers Council to whom section 352.029
does not apply.
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(b) Employees
specified in paragraph (a), clause (13), are included employees under paragraph
(a) if employer and employee contributions are made in a timely manner in the
amounts required by section 352.04.
Employee contributions must be deducted from salary. Employer contributions are the sole
obligation of the employer assuming operation of the University of Minnesota
heating plant facilities or any successor organizations to that employer.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2008, section 352.03,
subdivision 4, is amended to read:
Subd. 4. Duties
and powers of board of directors. (a)
The board shall:
(1) elect a
chair;
(2) appoint
an executive director;
(3)
establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, and
490 and transact the business of the system, subject to the limitations of law;
(4)
consider and dispose of, or take any other action the board of directors deems
appropriate concerning, denials of applications for annuities or
disability benefits under this chapter, chapter 3A, 352B, 352C, 352D, or
490, and complaints of employees and others pertaining to the retirement of
employees and the operation of the system;
(5) oversee
the administration of the state deferred compensation plan established
in section 352.965; and
(6) oversee
the administration of the health care savings plan established in section
352.98.
(b) The
board shall advise the director on any matters relating to the system and
carrying out functions and purposes of this chapter. The board's advice shall control.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2008, section 352.04,
subdivision 9, is amended to read:
Subd. 9. Erroneous
deductions, canceled warrants. (a) Deductions
taken from the salary of an employee for the retirement fund in error excess
of required amounts must, upon discovery and verification by the department
making the deduction, be refunded to the employee.
(b) If a
deduction for the retirement fund is taken from a salary warrant or check, and
the check is canceled or the amount of the warrant or check returned to the
funds of the department making the payment, the sum deducted, or the part of it
required to adjust the deductions, must be refunded to the department or
institution if the department applies for the refund on a form furnished by the
director. The department's payments must
likewise be refunded to the department.
(c) Employee
deductions and employer contributions taken in error may be directly
transferred, without interest, to another Minnesota public employee retirement
plan by which the employee is actually covered.
For purposes
of this subdivision, a Minnesota public pension plan means a plan specified in
section 356.30, subdivision 3, or the plan governed by chapter 354B.
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(c) If erroneous
employee deductions and employer contributions are caused by an error in plan
coverage involving the plan and any other plans specified in section 356.99,
that section applies. If the employee
should have been covered by the plan governed by chapter 352D, 353D, 354B, or
354D, the employee deductions and employer contributions taken in error must be
directly transferred to the applicable employee's account in the correct
retirement plan, with interest at the rate of 0.71 percent per month,
compounded annually, from the first day of the month following the month in
which coverage should have commenced in the correct defined contribution plan
until the end of the month in which the transfer occurs.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 4. Minnesota Statutes 2008, section 352.115,
subdivision 10, is amended to read:
Subd. 10. Reemployment
of annuitant. (a) Except for
salary or wages received as a temporary employee of the legislature during a
legislative session, if any retired employee again becomes entitled to
receive salary or wages from the state, or any employer who employs
state employees as that term is defined in section 352.01, subdivision 2, other
than salary or wages received as a temporary employee of the legislature during
a legislative session in a position covered by this chapter, the
annuity or retirement allowance shall must cease when the retired
employee has earned an amount equal to the annual maximum earnings allowable
for that age for the continued receipt of full benefit amounts monthly under
the federal old age, survivors, and disability insurance program as set by the
secretary of health and human services under United States Code, title 42,
section 403, in any calendar year. If
the retired employee has not yet reached the minimum age for the receipt of
Social Security benefits, the maximum earnings for the retired employee shall
be are equal to the annual maximum earnings allowable for the
minimum age for the receipt of Social Security benefits.
(b) The
balance of the annual retirement annuity after cessation must be handled or
disposed of as provided in section 356.47.
(c) The
annuity must be resumed when state service ends, or, if the retired employee is
still employed at the beginning of the next calendar year, at the beginning of
that calendar year, and payment must again end when the retired employee has
earned the applicable reemployment earnings maximum specified in this subdivision. If the retired employee is granted a sick
leave without pay, but not otherwise, the annuity or retirement allowance must
be resumed during the period of sick leave.
(d) No
payroll deductions for the retirement fund may be made from the earnings of a
reemployed retired employee.
(e) No
change shall may be made in the monthly amount of an annuity or
retirement allowance because of the reemployment of an annuitant.
(f) If a
reemployed annuitant whose annuity is suspended under paragraph (a) is having
insurance premium amounts withheld under section 356.87, subdivision 2,
insurance premium amounts must continue to be withheld and transferred from the
suspended portion of the annuity. The
balance of the annual retirement annuity after cessation, after deduction of
the insurance premium amounts, must be treated as specified in paragraph (b).
EFFECTIVE DATE. This section
is effective January 1, 2010.
Sec. 5. Minnesota Statutes 2008, section 352.91, is
amended by adding a subdivision to read:
Subd. 6. Correction
of plan coverage errors. If
erroneous employee deductions and employer contributions are caused by an error
in plan coverage involving the correctional state employees retirement plan and
any other plan specified in section 356.99, that section applies.
EFFECTIVE DATE. This section
is effective July 1, 2010.
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Sec. 6. Minnesota Statutes 2008, section 352.965,
subdivision 1, is amended to read:
Subdivision 1. Establishment. (a) The Minnesota state deferred
compensation plan is established. For
purposes of this section, "plan" means the Minnesota state
deferred compensation plan, unless the context clearly indicates
otherwise. The Minnesota State
Retirement System shall administer the plan.
(b) The purpose of the plan
is to provide a means for a public employee to contribute a portion of the
employee's compensation to a tax-deferred investment account. The plan is an eligible tax-deferred
compensation plan under section 457(b) of the Internal Revenue Code, United
States Code, title 26, section 457(b), and the applicable regulations under
Code of Federal Regulations, title 26, parts 1.457-3 to 1.457-10.
(c) The board of directors
of the Minnesota State Retirement System is the plan trustee and plan
sponsor. The board's executive
director is the plan administrator.
Fiduciary activities of the plan must be undertaken in a manner
consistent with chapter 356A.
(d) The executive director,
with the approval of the board of directors, shall adopt and amend, as required
to maintain tax-qualified status, a written plan document specifying the
material terms and conditions for eligibility, benefits, applicable
limitations, and the time and form under which benefit distributions can be
made. With the approval of the board of
directors, the executive director may also establish policies and procedures
necessary for the administration of the deferred compensation plan.
(e) The plan document shall
must include provisions that are necessary to cause the plan to be an
eligible deferred compensation plan within the meaning of section 457(b) of the
Internal Revenue Code. The plan document
may provide additional administrative and substantive provisions consistent
with state law, provided that those provisions will do not
cause the plan to fail to be an eligible deferred compensation plan within the
meaning of section 457(b) of the Internal Revenue Code and may include
provisions for certain optional features and services.
(f) The board of directors
may authorize the executive director to establish and administer a Roth 457
plan if authorized by the Internal Revenue Code or a Roth individual retirement
account as defined under section 408A of the Internal Revenue Code.
(g) All amounts contributed
to the deferred compensation plan and all earnings on those amounts must be
held in trust, in custodial accounts, or in qualifying annuity contracts for
the exclusive benefit of the plan participants and beneficiaries, as required
by section 457(g) of the Internal Revenue Code and in accordance with sections
356.001 and 356A.06, subdivision 1.
(h) The information and data
maintained in the accounts of the participants and beneficiaries are private
data and shall must not be disclosed to anyone other than the
participant or beneficiary pursuant to a court order or pursuant to
under section 356.49.
(i) The plan document is not
subject to the rule adoption process under the Administrative Procedures Act,
including section 14.386, but must conform with applicable federal and state
laws.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 7. Minnesota Statutes 2008, section 352.965,
subdivision 2, is amended to read:
Subd. 2. Right
to participate in deferred compensation plan.
(a) At the request of an officer or employee of the state, an
officer or employee of a political subdivision, or an employee covered by a
retirement fund in section 356.20, subdivision 2, the appointing authority
shall defer the payment of part of the compensation of the public officer or
employee through payroll deduction.
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(b) The amount to be deferred
must be as provided in a written an agreement between the officer
or employee and the public employer plan sponsor. The agreement must be in a form specified by
the executive director of the Minnesota State Retirement System and must be
consistent with the requirements for an eligible plan under federal and state
tax laws, regulations, and rulings.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 8. Minnesota Statutes 2009 Supplement, section
352B.011, subdivision 3, is amended to read:
Subd. 3. Allowable
service. (a) "Allowable
service" means:
(1) service in a month
during which a member is paid a salary from which a member contribution is
deducted, deposited, and credited in the State Patrol retirement fund;
(2) for members defined in
subdivision 10, clause (1), service in any month for which payments have been
made to the State Patrol retirement fund under law; and
(3) for members defined in
subdivision 10, clauses (2) and (3), service for which payments have been made
to the State Patrol retirement fund under law, service for which payments were
made to the State Police officers retirement fund under law after June 30,
1961, and all prior service which was credited to a member for service on or
before June 30, 1961.;
(4) any period of authorized
leave of absence without pay that does not exceed one year and for which the
employee obtains credit by payment to the fund under section 352B.013; and
(5) eligible periods of
uniformed service for which the member obtained service credit by payment under
section 352B.086 to the fund.
(b) Allowable service also
includes any period of absence from duty by a member who, by reason of injury
incurred in the performance of duty, is temporarily disabled and for which
disability the state is liable under the workers' compensation law, until the
date authorized by the executive director for commencement of payment of a
disability benefit or until the date of a return to employment.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 9. [352B.013]
AUTHORIZED LEAVE OF ABSENCE SERVICE CREDIT PURCHASE PROCEDURE.
Subdivision 1. Application. This section specifies the procedure
for purchasing service credit in the State Patrol retirement plan for authorized
leaves of absence under section 352B.011, subdivision 3, unless an alternative
payment procedure is specified in law for a particular form of leave or break
in service.
Subd. 2. Purchase
procedure. (a) An employee
covered by the plan specified in this chapter may purchase credit for allowable
service in the plan for a period specified in subdivision 1 if the employee
makes a payment as specified in paragraph (b) or (c), whichever applies. The employing unit, at its option, may pay
the employer portion of the amount specified in paragraph (b) on behalf of its
employees.
(b) If payment is received
by the executive director within one year from the date the employee returned
to work following the authorized leave, the payment amount is equal to the employee
and employer contribution rates specified in section 352B.02 at the end of the
leave period multiplied by the employee's hourly rate of salary on the date of
return from the leave of absence and by the days and months of the leave of
absence for which the employee
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is eligible for
allowable service credit. The payment
must include compound interest at a monthly rate of 0.71 percent from the
last day of the leave period until the last day of the month in which payment
is received. If payment is received
by the executive director after one year from the date the employee returned to
work following the authorized leave, the payment amount is the amount
determined under section 356.551.
Payment under this paragraph must be made before the date of termination
from public employment covered under this chapter.
(c) If the employee
terminates employment covered by this chapter during the leave or following the
leave rather than returning to covered employment, payment must be received by
the executive director within 30 days after the termination date. The payment amount is equal to the employee
and employer contribution rates specified in section 352B.02 on the day prior
to the termination date, multiplied by the employee's hourly rate of salary on
that date and by the days and months of the leave of absence prior to termination.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2008, section 352B.02, is
amended by adding a subdivision to read:
Subd. 3. Correction
of plan coverage errors. If
erroneous employee deductions and employer contributions are caused by an error
in plan coverage involving the State Patrol retirement plan and any other plan
specified in section 356.99, that section applies.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 11.
Minnesota Statutes 2008, section 353.27,
subdivision 7a, is amended to read:
Subd. 7a. Deductions
or contributions transmitted by error. (a)
If employee deductions and employer contributions were erroneously transmitted
to the association, but should have been transmitted to another Minnesota
public pension a plan covered by chapter 352D, 353D, 354B, or
354D, the executive director shall transfer the erroneous employee
deductions and employer contributions to the appropriate retirement fund or
individual account, as applicable, without interest. The time limitations specified in
subdivisions 7 and 12 do not apply. The
transfer to the applicable defined contribution plan account must include
interest at the rate of 0.71 percent per month, compounded annually, from
the first day of the month following the month in which coverage should have
commenced in the defined contribution plan until the end of the month in which
the transfer occurs.
(b) For
purposes of this subdivision, a Minnesota public pension plan means a plan
specified in section 356.30, subdivision 3, or the plans governed by chapters
353D and 354B.
(c) (b) A
potential transfer under paragraph (a) that is reasonably determined to cause
the plan to fail to be a qualified plan under section 401(a) of the federal
Internal Revenue Code, as amended, must not be made by the executive director
of the association. Within 30 days after
being notified by the Public Employees Retirement Association of an unmade potential
transfer under this paragraph, the employer of the affected person must
transmit an amount representing the applicable salary deductions and employer
contributions, without interest, to the retirement fund of the appropriate
Minnesota public pension plan, or to the applicable individual account if the
proper coverage is by a defined contribution plan. The association must provide the employing
unit a credit for the amount of the erroneous salary deductions and employer
contributions against future contributions from the employer. If the employing unit receives a credit under
this paragraph, the employing unit is responsible for refunding to the
applicable employee any amount that had been erroneously deducted from the
person's salary.
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(c) If erroneous
employee deductions and employer contributions reflect a plan coverage error
involving any Public Employees Retirement Association plan specified in section
356.99 and any other plan specified in that section, section 356.99 applies.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 12. Minnesota Statutes 2008, section 353.37,
subdivision 3a, is amended to read:
Subd. 3a. Disposition
of suspension or reduction amount. (a)
The balance of the annual retirement annuity after suspension or the amount
of the retirement annuity reduction must be handled or disposed of as provided
in section 356.47.
(b) If a
reemployed annuitant whose annuity is suspended is having insurance premium
amounts withheld under section 356.87, subdivision 2, insurance premium amounts
must continue to be withheld and transferred from the suspended portion of the
annuity. The balance of the annual retirement
annuity after cessation, after deduction of the insurance premium amounts, must
be treated as specified in paragraph (a).
EFFECTIVE DATE. This
section is effective January 1, 2010.
Sec. 13. Minnesota Statutes 2008, section 354.42,
subdivision 7, is amended to read:
Subd. 7. Erroneous
salary deductions or direct payments. (a)
Any deductions taken from the salary of an employee for the retirement
fund in error excess of amounts required must be refunded to the
employee upon the discovery of the error and after the verification of the
error by the employing unit making the deduction. The corresponding excess employer
contribution and excess additional employer contribution amounts
attributable to the erroneous salary deduction must be refunded to the
employing unit.
(b) If
salary deductions and employer contributions were erroneously transmitted to
the retirement fund and should have been transmitted to another Minnesota
public pension the plan covered by chapter 352D, 353D, 354B, or
354D, the executive director must transfer these salary deductions and
employer contributions to the account of the appropriate public
pension fund without interest. For
purposes of this paragraph, a Minnesota public pension plan means a plan
specified in section 356.30, subdivision 3, or the plan governed by chapter
354B. person under the applicable
plan. The transfer to the applicable
defined contribution plan account must include interest at the rate of 0.71
percent per month, compounded annually, from the first day of the month
following the month in which coverage should have commenced in the defined
contribution plan until the end of the month in which the
transfer occurs.
(c) A
potential transfer under paragraph (b) that would cause the plan to fail to be a
qualified plan under section 401(a) of the Internal Revenue Code, as amended,
must not be made by the executive director.
Within 30 days after being notified by the Teachers Retirement
Association of an unmade potential transfer under this paragraph, the employer
of the affected person must transmit an amount representing the applicable
salary deductions and employer contributions, without interest, to the retirement
fund of the appropriate Minnesota public pension plan fund account of
the applicable person under the appropriate plan. The retirement association must provide a
credit for the amount of the erroneous salary deductions and employer
contributions against future contributions from the employer.
(d) If a
salary warrant or check from which a deduction for the retirement fund was
taken has been canceled or the amount of the warrant or if a check has been
returned to the funds of the employing unit making the payment, a refund of the
amount deducted, or any portion of it that is required to adjust the salary
deductions, must be made to the employing unit.
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(e) Erroneous
direct payments of member-paid contributions or erroneous salary deductions
that were not refunded during the regular payroll cycle processing must be
refunded to the member, plus interest computed using the rate and method
specified in section 354.49, subdivision 2.
(f) Any refund under this
subdivision that would cause the plan to fail to be a qualified plan under
section 401(a) of the Internal Revenue Code, as amended, may not be refunded
and instead must be credited against future contributions payable by the
employer. The employer is responsible
for refunding to the applicable employee any amount that was erroneously
deducted from the salary of the employee, with interest as specified in
paragraph (e).
(g) If erroneous employee
deductions and employer contributions are caused by an error in plan coverage
involving the plan and any other plan specified in section 356.99, that section
applies.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 14. Minnesota Statutes 2008, section 354A.12, is
amended by adding a subdivision to read:
Subd. 6a. Erroneous
salary deductions or direct payments.
If erroneous employee deductions and employer contributions
reflect a plan coverage error involving any plan covered by this chapter and
any plan specified in section 356.99, that section applies.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 15. Minnesota Statutes 2008, section 356.24,
subdivision 1, is amended to read:
Subdivision 1. Restriction;
exceptions. (a) It is
unlawful for a school district or other governmental subdivision or state
agency to levy taxes for, or to contribute public funds to a
supplemental pension or deferred compensation plan that is established,
maintained, and operated in addition to a primary pension program for the
benefit of the governmental subdivision employees other than:
(1) to a supplemental
pension plan that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides
solely for group health, hospital, disability, or death benefits;
(3) to the individual
retirement account plan established by chapter 354B;
(4) to a plan that provides
solely for severance pay under section 465.72 to a retiring or terminating
employee;
(5) for employees other than
personnel employed by the Board of Trustees of the Minnesota State Colleges and
Universities and covered under the Higher Education Supplemental Retirement
Plan under chapter 354C, but including city managers covered by an alternative
retirement arrangement under section 353.028, subdivision 3, paragraph (a), or
by the defined contribution plan of the Public Employees Retirement Association
under section 353.028, subdivision 3, paragraph (b), if the supplemental plan
coverage is provided for in a personnel policy of the public employer or in the
collective bargaining agreement between the public employer and the exclusive
representative of public employees in an appropriate unit or in the individual
employment contract between a city and a city manager, and if for each
available investment all fees and historic rates of return for the prior one-,
three-, five-, and ten-year periods, or since inception, are disclosed in an
easily comprehended document not to exceed two pages, in an amount matching
employee contributions on a dollar for dollar basis, but not to exceed an
employer contribution of one-half of the available elective deferral permitted
per year per employee, under the Internal Revenue Code:
(i) to the state of
Minnesota deferred compensation plan under section 352.965;
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(ii) in payment of
the applicable portion of the contribution made to any investment eligible
under section 403(b) of the Internal Revenue Code, if the employing unit has
complied with any applicable pension plan provisions of the Internal Revenue
Code with respect to the tax-sheltered annuity program during the preceding
calendar year; or
(iii) any
other deferred compensation plan offered by the employer under section 457 of
the Internal Revenue Code;
(6) for
personnel employed by the Board of Trustees of the Minnesota State Colleges and
Universities and not covered by clause (5), to the supplemental retirement plan
under chapter 354C, if the supplemental plan coverage is provided for in a
personnel policy or in the collective bargaining agreement of the public
employer with the exclusive representative of the covered employees in an
appropriate unit, in an amount matching employee contributions on a dollar for
dollar basis, but not to exceed an employer contribution of $2,700 a year for
each employee;
(7) to a
supplemental plan or to a governmental trust to save for postretirement health
care expenses qualified for tax-preferred treatment under the Internal Revenue
Code, if the supplemental plan coverage is provided for in a personnel policy
or in the collective bargaining agreement of a public employer with the
exclusive representative of the covered employees in an appropriate unit;
(8) to the
laborers national industrial pension fund or to a laborers local pension fund
for the employees of a governmental subdivision who are covered by a collective
bargaining agreement that provides for coverage by that fund and that sets
forth a fund contribution rate, but not to exceed an employer contribution of
$5,000 per year per employee;
(9) to the
plumbers and pipefitters national pension fund or to a plumbers and pipefitters
local pension fund for the employees of a governmental subdivision who are
covered by a collective bargaining agreement that provides for coverage by that
fund and that sets forth a fund contribution rate, but not to exceed an
employer contribution of $5,000 per year per employee;
(10) to the
international union of operating engineers pension fund for the employees of a
governmental subdivision who are covered by a collective bargaining agreement
that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $5,000 per year per
employee;
(11) to a
supplemental plan organized and operated under the federal Internal Revenue
Code, as amended, that is wholly and solely funded by the employee's
accumulated sick leave, accumulated vacation leave, and accumulated severance
pay;
(12) to the
International Association of Machinists national pension fund for the employees
of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund
contribution rate, but not to exceed an employer contribution of $5,000 per
year per employee; or
(13) for
employees of United Hospital District, Blue Earth, to the state of Minnesota
deferred compensation program, if the employee makes a contribution, in an
amount that does not exceed the total percentage of covered salary under
section 353.27, subdivisions 3 and 3a.
(b) No
governmental subdivision may make a contribution to a deferred compensation plan
operating under section 457 of the Internal Revenue Code for volunteer or
emergency on-call firefighters in lieu of providing retirement coverage under
the federal Old Age, Survivors, and Disability Insurance Program.
EFFECTIVE DATE. This
section is effective the day following final enactment.
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Sec. 16. Minnesota Statutes 2008, section 356.50,
subdivision 4, is amended to read:
Subd. 4. Annuity
repayment. Notwithstanding
subdivisions 1 and 2, if after being discharged, the person commences receipt
of an annuity from the applicable plan, and it is later determined that the
person was wrongfully discharged, the person shall repay the annuity received
in a lump sum within 60 days of receipt of the back pay award. If the annuity is not repaid, the person
is not entitled to reinstatement in the applicable plan as an active member,
the person is not authorized to make payments under subdivision 2, paragraph
(a), and, for subsequent employment with the employer, the person shall be
treated as a reemployed annuitant.
EFFECTIVE DATE. This section
is effective the day following final enactment.
CORRECTION OF
PLAN COVERAGE ERRORS
Sec. 17. [356.99]
CORRECTION OF ERRONEOUS DEFINED BENEFIT PLAN COVERAGE.
Subdivision
1. Definitions. (a)
For purposes of this section, the terms in paragraphs (b) to (e) have the
meanings given them.
(b) "Chief
administrative officer" means the person selected or elected by the
governing board of a covered pension plan with primary responsibility to
administer the covered pension plan, or that person's designee or
representative.
(c)
"Covered pension plan" means a plan enumerated in section 356.30,
subdivision 3, except clauses (3), (5), (6), and (11).
(d)
"Governing board" means the governing board of the Minnesota State
Retirement System, the Public Employees Retirement Association, the Teachers Retirement
Association, the Duluth Teachers Retirement Fund Association, or the
St. Paul Teachers Retirement Fund Association.
(e)
"Member" means an active plan member in a covered pension plan.
Subd. 2. Treatment
of terminated employee coverage error. Any person who terminated the
erroneously covered service before a chief administrative officer determined
the covered pension plan coverage was in error retains the coverage with the
plan that originally credited the service.
Subd. 3. Active
employee correction of prospective service coverage. Upon determination by a chief
administrative officer that a member is covered by the wrong pension plan, the
employer must stop remitting the erroneous employee deductions and employer
contributions and report the employee to the correct covered pension plan for
all subsequent service.
Subd. 4. Active
employee treatment of past service. Any
plan member, with past service credited in an erroneous plan, retains the
coverage for that past service with the plan that originally credited that
service if the reporting error began earlier than two fiscal years prior to the
current fiscal year in which the error was determined by the chief
administrative officer. If the reporting
error began within two fiscal years prior to the current fiscal year, the
pension plan coverage for that past service must be corrected as provided in
subdivision 5.
Subd. 5. Past
service transfer procedure. (a)
For cases under subdivision 4 requiring correction of prior service coverage,
on behalf of the applicable member the chief administrative officer of the
covered pension plan fund that has received erroneous employee deductions and
employer contributions must transfer to the appropriate covered retirement plan
fund an amount which is the lesser of all contributions made by or on behalf of
the member for the period of erroneous membership, or the specific amount
requested by the chief administrative officer of the other covered pension plan
which represents the employee deductions and employer contributions that would
have been made had the member been properly reported.
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(b) If excess
employee deductions remain in the member's account after the transfer of funds,
the remaining erroneous amount must be refunded to the person with interest at
the rate provided under the general refund law of the applicable covered
pension plan. The chief administrative
officer must also return any remaining excess employer contributions by
providing to the employer a credit against future contributions payable by that
employer.
(c) If the contributions
transferred to the correct covered pension plan fund are less than the amounts
required for the period being corrected, the chief administrative officer of
the correct covered pension plan fund must collect the remaining employee
deductions and employer contributions from the employer under laws for
recovering deficient contributions applicable to the correct covered pension
plan, except that no interest is chargeable if the additional amounts due under
this paragraph are received by the chief administrative officer within 30 days
of notifying the employer of the amount due.
(d) A
potential transfer under this section that would cause a plan to fail to be a
qualified plan under section 401(a) of the Internal Revenue Code, as amended,
must not be made. Within 30 days after
being notified by a chief administrative officer of an unmade potential
transfer under this section, the employer of the member must transmit an amount
representing the applicable salary deductions and employer contributions,
without interest, to the fund of the appropriate covered pension plan. The chief administrative officer of the
covered pension plan which erroneously provided coverage must provide to the
employer a credit for the amount of the erroneous salary deductions and
employer contributions against future contributions from that employer.
(e) Upon
transfer of the required assets, or payment from the employer under paragraph
(d), whichever is applicable, allowable service and salary credit for the
period being transferred is forfeited in the erroneous plan and is granted in
the correct plan.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 18. Minnesota Statutes 2008, section 490.123, is
amended by adding a subdivision to read:
Subd. 4. Correction
of contribution errors. (a)
If erroneous employee deductions and employer contributions are caused by an
error in plan coverage involving the judges retirement plan and any other plan
specified in section 356.99, that section applies.
(b) The
provisions of section 352.04, subdivisions 8 and 9, apply to the judges'
retirement plan, except that if employee deductions or contributions are
erroneously transmitted to the judges' retirement fund for service rendered
after the service credit limit under section 490.121, subdivision 22, has been
attained, consistent with section 352D.04, subdivision 2, no employer
contributions may be transferred.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 19. REPEALER.
Minnesota
Statutes 2008, sections 352.91, subdivision 5; and 353.88, are repealed.
EFFECTIVE DATE. This
section is effective July 1, 2010.
ARTICLE 3
MINNESOTA
STATE DEFERRED COMPENSATION PLAN AMENDMENTS
Section
1. Minnesota Statutes 2008, section
352.965, subdivision 6, is amended to read:
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Subd. 6. Plan
administrative expenses. (a) The reasonable
and necessary administrative expenses of the deferred compensation plan may be
charged to plan participants in the form of an annual fee, an asset-based fee,
a percentage of the contributions to the plan, or a combination thereof, as set
forth in the plan document. The
executive director of the system at the direction of the board of directors
shall establish procedures to carry out this section including allocation of
administrative costs of the plan to participants. Processes and procedures shall be set forth
in the plan document. Fees cannot be
charged on contributions and investment returns attributable to contributions
made to the Minnesota supplemental investment funds before July 1, 1992.
(b) The
plan document must conform to federal and state tax laws, regulations, and
rulings, and is not subject to the Administrative Procedure Act.
(c) The
executive director may contract with a third party to perform administrative
and record keeping functions. The
executive director may solicit bids and negotiate such contracts. Participating employers must provide the
necessary data to the third-party record keeper as determined by the executive
director. The third-party record keeper
and the Minnesota State Retirement System shall follow the data privacy
provisions under chapter 13. The
third-party record keeper may not solicit participants for any product or
services not related to the deferred compensation plan.
(d) The
board of directors may authorize a third-party investment consultant to provide
investment information and advice, provided that if the offering
of such information and advice is consistent with the investment advice
requirements applicable to private plans under Title VI, subtitle A, of the
Pension Protection Act of 2006, Public Law 109-280, section 601.
EFFECTIVE DATE. This
section is effective July 1, 2010.
ARTICLE 4
MSRS
UNCLASSIFIED STATE EMPLOYEES RETIREMENT PROGRAM AMENDMENTS
Section
1. Minnesota Statutes 2008, section
3A.07, is amended to read:
3A.07 APPLICATION.
(a) Except
as provided in paragraph (b) or (d), this chapter applies to members of
the legislature in service after July 1, 1965, who otherwise meet the
requirements of this chapter.
(b) Members
of the legislature who were elected for the first time after June 30, 1997, or
members of the legislature who were elected before July 1, 1997, and who, after
July 1, 1998, elect not to be members of the plan established by this chapter are covered by the unclassified employees
retirement program governed by chapter 352D.
(c) The
post-July 1, 1998, coverage election under paragraph (b) is irrevocable and
must be made on a form prescribed by the director. The second chance referendum election under
Laws 2002, chapter 392, article 15, also is irrevocable.
(d) Members
of the legislature who are covered by the retirement plan governed by this
chapter on July 1, 2010, may, on or before the end of the member's seventh year
of legislative service or January 1, 2011, whichever is later, elect to have
future retirement coverage by either the general state employees retirement
plan governed by chapter 352 or the unclassified state employees
retirement program governed by chapter 352D.
The election must be made on a form prescribed by the director and is
irrevocable.
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Sec. 2. Minnesota Statutes 2009 Supplement, section
352.01, subdivision 2b, is amended to read:
Subd. 2b. Excluded
employees. "State
employee" does not include:
(1) students who are employed
by the University of Minnesota, or the state colleges and universities, unless
approved for coverage by the Board of Regents of the University of Minnesota or
the Board of Trustees of the Minnesota State Colleges and Universities,
whichever is applicable;
(2) employees who are
eligible for membership in the state Teachers Retirement Association, except
employees of the Department of Education who have chosen or may choose to be
covered by the general state employees retirement plan of the Minnesota State
Retirement System instead of the Teachers Retirement Association;
(3) employees of the
University of Minnesota who are excluded from coverage by action of the Board
of Regents;
(4) officers and enlisted
personnel in the National Guard and the naval militia who are assigned to
permanent peacetime duty and who under federal law are or are required to be
members of a federal retirement system;
(5) election officers;
(6) persons who are engaged
in public work for the state but who are employed by contractors when the
performance of the contract is authorized by the legislature or other competent
authority;
(7) officers and employees
of the senate, or of the house of representatives, or of a legislative
committee or commission who are temporarily employed;
(8) receivers, jurors,
notaries public, and court employees who are not in the judicial branch as
defined in section 43A.02, subdivision 25, except referees and adjusters
employed by the Department of Labor and Industry;
(9) patient and inmate help who
perform services in state charitable, penal, and correctional institutions
including the Minnesota Veterans Home;
(10) persons who are
employed for professional services where the service is incidental to their
regular professional duties and whose compensation is paid on a per diem basis;
(11) employees of the Sibley
House Association;
(12) the members of any
state board or commission who serve the state intermittently and are paid on a
per diem basis; the secretary, secretary-treasurer, and treasurer of those
boards if their compensation is $5,000 or less per year, or, if they are
legally prohibited from serving more than three years; and the board of managers
of the State Agricultural Society and its treasurer unless the treasurer is
also its full-time secretary;
(13) state troopers and
persons who are described in section 352B.011, subdivision 10, clauses (2) to
(8);
(14) temporary employees of
the Minnesota State Fair who are employed on or after July 1 for a period not
to extend beyond October 15 of that year; and persons who are employed at any
time by the state fair administration for special events held on the fairgrounds;
(15) emergency employees who
are in the classified service; except that if an emergency employee, within the
same pay period, becomes a provisional or probationary employee on other than a
temporary basis, the employee must be considered a "state employee"
retroactively to the beginning of the pay period;
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(16) temporary
employees in the classified service, and temporary employees in the
unclassified service who are appointed for a definite period of not more than
six months and who are employed less than six months in any one-year period;
(17)
interns who are hired for six months or less and trainee employees,
except those listed in subdivision 2a, clause (8);
(18)
persons whose compensation is paid on a fee basis or as an independent
contractor;
(19) state
employees who are employed by the Board of Trustees of the Minnesota State
Colleges and Universities in unclassified positions enumerated in section
43A.08, subdivision 1, clause (9);
(20) state
employees who in any year have credit for 12 months service as teachers in the
public schools of the state and as teachers are members of the Teachers
Retirement Association or a retirement system in St. Paul, Minneapolis, or
Duluth, except for incidental employment as a state employee that is not
covered by one of the teacher retirement associations or systems;
(21)
employees of the adjutant general who are employed on an unlimited intermittent
or temporary basis in the classified or unclassified service for the support of
Army and Air National Guard training facilities;
(22)
chaplains and nuns who are excluded from coverage under the federal Old Age,
Survivors, Disability, and Health Insurance Program for the performance of
service as specified in United States Code, title 42, section 410(a)(8)(A), as
amended, if no irrevocable election of coverage has been made under section
3121(r) of the Internal Revenue Code of 1986, as amended through December 31,
1992;
(23)
examination monitors who are employed by departments, agencies, commissions,
and boards to conduct examinations required by law;
(24) persons
who are appointed to serve as members of fact-finding commissions or adjustment
panels, arbitrators, or labor referees under chapter 179;
(25)
temporary employees who are employed for limited periods under any state or
federal program for training or rehabilitation, including persons who are
employed for limited periods from areas of economic distress, but not including
skilled and supervisory personnel and persons having civil service status
covered by the system;
(26)
full-time students who are employed by the Minnesota Historical Society
intermittently during part of the year and full-time during the summer months;
(27)
temporary employees who are appointed for not more than six months, of the
Metropolitan Council and of any of its statutory boards, if the board members
are appointed by the Metropolitan Council;
(28)
persons who are employed in positions designated by the Department of
Management and Budget as student workers;
(29)
members of trades who are employed by the successor to the Metropolitan Waste
Control Commission, who have trade union pension plan coverage under a
collective bargaining agreement, and who are first employed after June 1, 1977;
(30)
off-duty peace officers while employed by the Metropolitan Council;
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(31) persons who
are employed as full-time police officers by the Metropolitan Council and as
police officers are members of the public employees police and fire fund;
(32) persons who are
employed as full-time firefighters by the Department of Military Affairs and as
firefighters are members of the public employees police and fire fund;
(33) foreign citizens with
who are employed under a work permit of less than three years, or an
H-1b/JV visa valid for less than three years of employment, unless notice of
extension is supplied which allows them to work for three or more years as of
the date that the extension is granted, in which case they are eligible
for coverage from the date extended; and
(34) persons who are
employed by the Board of Trustees of the Minnesota State Colleges and
Universities and who elected to remain members of the Public Employees
Retirement Association or the Minneapolis Employees Retirement Fund, whichever
applies, under Minnesota Statutes 1994, section 136C.75.; and
(35) employees who have
elected to transfer service to the unclassified program under section 352D.02, subdivision
1d.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 3. Minnesota Statutes 2008, section 352D.015,
subdivision 4, is amended to read:
Subd. 4. General
fund. "General fund" means
the general state employees retirement fund except the moneys for the
unclassified program under chapter 352.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 4. Minnesota Statutes 2008, section 352D.015, is
amended by adding a subdivision to read:
Subd. 4a. General
employees retirement plan. "General
employees retirement plan" means the general state employees retirement
plan under chapter 352.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 5. Minnesota Statutes 2008, section 352D.015,
subdivision 9, is amended to read:
Subd. 9. Value. "Value" means cash value at
the end of the month following receipt of an application. If no application is required,
"value" means the cash value at the end of the month in which the
event necessitating the transfer occurs the market value of the account
at the end of the United States investment market day.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 6. Minnesota Statutes 2008, section 352D.02,
subdivision 1, is amended to read:
Subdivision 1. Coverage.
(a) Employees enumerated in
paragraph (b), clause (1), are participants in the unclassified program under
this chapter. Persons referenced in
paragraph (b), clause (15), are participants in the unclassified program under
this chapter for judicial employment in excess of the service credit limit in
section 490.121, subdivision 22. Employees
enumerated in paragraph (c) (b), clauses (2), (3), (4), (6) to
(14), and (16) to (18), clauses (2) to (14) and (16) to (18), if
they are in the unclassified service of the state or Metropolitan Council and
are eligible for coverage under the general state employees retirement plan
under chapter 352, are participants in the unclassified program under this
chapter unless the employee gives notice to the executive director of the
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Minnesota State
Retirement System within one year following the commencement of employment in the
unclassified service that the employee desires coverage under the general state
employees retirement plan. For the
purposes of this chapter, an employee who does not file notice with the
executive director is deemed to have exercised the option to participate in the
unclassified program.
(b) Persons
referenced in paragraph (c), clause (5), are participants in the unclassified
program under this chapter unless the person was eligible to elect different
coverage under section 3A.07 and elected retirement coverage by the applicable
alternative retirement plan. Persons
referenced in paragraph (c), clause (15), are participants in the unclassified
program under this chapter for judicial employment in excess of the service
credit limit in section 490.121, subdivision 22.
(c) (b) Enumerated
employees and referenced persons are:
(1) the
governor, the lieutenant governor, the secretary of state, the state auditor,
and the attorney general;
(2) an
employee in the Office of the Governor, Lieutenant Governor, Secretary of
State, State Auditor, Attorney General;
(3) an
employee of the State Board of Investment;
(4) the
head of a department, division, or agency created by statute in the
unclassified service, an acting department head subsequently appointed to the
position, or an employee enumerated in section 15A.0815 or 15A.083, subdivision
4;
(5) a
member of the legislature;
(6) a
full-time unclassified employee of the legislature or a commission or agency of
the legislature who is appointed without a limit on the duration of the
employment or a temporary legislative employee having shares in the
supplemental retirement fund as a result of former employment covered by this
chapter, whether or not eligible for coverage under the Minnesota State
Retirement System;
(7) a
person who is employed in a position established under section 43A.08,
subdivision 1, clause (3), or in a position authorized under a statute creating
or establishing a department or agency of the state, which is at the deputy or assistant
head of department or agency or director level;
(8) the
regional administrator, or executive director of the Metropolitan Council,
general counsel, division directors, operations managers, and other positions
as designated by the council, all of which may not exceed 27 positions at the
council and the chair;
(9) the
executive director, associate executive director, and not to exceed nine
positions of the Minnesota Office of Higher Education in the unclassified
service, as designated by the Minnesota Office of Higher Education before
January 1, 1992, or subsequently redesignated with the approval of the board of
directors of the Minnesota State Retirement System, unless the person has
elected coverage by the individual retirement account plan under
chapter 354B;
(10) the
clerk of the appellate courts appointed under article VI, section 2, of the
Constitution of the state of Minnesota, the state court administrator and
judicial district administrators;
(11) the
chief executive officers of correctional facilities operated by the Department
of Corrections and of hospitals and nursing homes operated by the Department of
Human Services;
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(12) an employee
whose principal employment is at the state ceremonial house;
(13) an
employee of the Agricultural Utilization Research Institute;
(14) an
employee of the State Lottery who is covered by the managerial plan established
under section 43A.18, subdivision 3;
(15) a judge
who has exceeded the service credit limit in section 490.121, subdivision 22;
(16) an
employee of Enterprise Minnesota, Inc.;
(17) a person
employed by the Minnesota State Colleges and Universities as faculty or in an
eligible unclassified administrative position as defined in section 354B.20,
subdivision 6, who was employed by the former state university or the former
community college system before May 1, 1995, and elected unclassified program
coverage prior to May 1, 1995; and
(18) a
person employed by the Minnesota State Colleges and Universities who was
employed in state service before July 1, 1995, who subsequently is employed in an
eligible unclassified administrative position as defined in section 354B.20,
subdivision 6, and who elects coverage by the unclassified program.
Sec. 7. Minnesota Statutes 2008, section 352D.02,
subdivision 1c, is amended to read:
Subd. 1c. Transfer
of contributions. An employee
covered by the regular general employees retirement plan who is
subsequently employed as a full-time unclassified employee of the legislature
or any commission or agency of the legislature without a limit on the duration
of the employment may elect to transfer accumulated employee and matching
employer contributions, as provided in section 352D.03.
EFFECTIVE DATE. This section
is effective June 30, 2010.
Sec. 8. Minnesota Statutes 2008, section 352D.02,
subdivision 2, is amended to read:
Subd. 2. Coverage
upon employment change. A person
becoming a participant in the unclassified program prior to July 1, 2010,
by virtue of employment in a position specified in subdivision 1, clause (4),
and remaining in the unclassified service shall remain a participant in the
program even though the position the person occupies is deleted from any of the
sections referenced in subdivision 1, clause (4), by subsequent amendment,
except that a person shall is not be eligible to elect the
unclassified program after separation from unclassified service if on the
return of the person to service, that position is not specified in subdivision
1, clause (4). Any person employed in a position
specified in subdivision 1 shall cease to participate in the unclassified
program in the event that the position is placed in the classified
service.
EFFECTIVE DATE. This section
is effective June 30, 2010.
Sec. 9. Minnesota Statutes 2008, section 352D.02,
subdivision 3, is amended to read:
Subd. 3. Transfer
to general employees retirement plan.
(a) An employee referred to in subdivision 1, paragraph (b),
clauses (2) to (4), (6) to (14), and (16) to (18), who is credited with employee
shares in the unclassified program, after acquiring and who has credit
for ten years of allowable service and, not later than one
month following the termination of covered employment, may elect to terminate
participation in the unclassified program and be covered by the general employees
retirement plan by filing a written election with the executive director. if the employee was employed before
July 1, 2010, and has at least ten years of allowable service as of the date of
the election or if the employee was employed after June 30, 2010, and has no more
than seven years of allowable service as of the date of the election.
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(b) A person
referred to in subdivision 1, paragraph (b), clause (5), who is credited with
employee shares in the unclassified program, and who has credit for allowable
service, prior to the termination of service, may elect to terminate
participation in the unclassified program and be covered by the general
employees retirement plan by filing a written election with the executive
director if the person first became covered by the unclassified program after
June 30, 2010, and has no more than seven years of allowable service or if the
person first became covered by the unclassified program before July 1, 2010,
and makes the election to transfer on or before January 1, 2011.
(c) If the transfer election
is made, the
executive director shall then redeem the employee's total shares and shall
credit to the employee's account in the general employees retirement plan
the amount of contributions that would have been so credited had the employee
been covered by the general employees retirement plan during the employee's
entire covered employment or elective state service. The balance of money so redeemed and not
credited to the employee's account shall must be transferred to
the general employees retirement plan retirement fund, except
that (1) the employee contribution paid to the unclassified program must be
compared to (2) the employee contributions that would have been paid to the
general employees retirement plan for the comparable period, if the
individual had been covered by that plan.
If clause (1) is greater than clause (2), the difference must be
refunded to the employee as provided in section 352.22. If clause (2) is greater than clause (1), the
difference must be paid by the employee within six months of electing general employees
retirement plan coverage or before the effective date of the annuity,
whichever is sooner.
(b) (d) An election
under paragraph (a) or (b) to transfer coverage to the general employees
retirement plan is irrevocable during any period of covered employment.
(e) A person referenced in
subdivision 1, paragraph (b), clause (1) or (15), who is credited with employee
shares in the unclassified program is not permitted to terminate participation
in the unclassified program and be covered by the general employees retirement
plan.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 10. Minnesota Statutes 2008, section 352D.03, is
amended to read:
352D.03 TRANSFER OF ASSETS.
Unless an eligible employee
enumerated in section 352D.02, subdivision 1, has elected coverage under the
individual retirement account plan under chapter 354B, a sum of money
representing the assets credited to each employee exercising the option
contained in section 352D.02, plus an equal employer contribution together with
interest for an employee exercising an option under section 352D.02, an
amount equal to the employee and employer contributions for the employment
period at the applicable preretirement interest actuarial assumption rate
during this period plus six percent interest, compounded annually,
must be used for the purchase of shares on behalf of each employee in the
accounts of the supplemental retirement fund established by section 11A.17.
EFFECTIVE DATE. This section is effective June 30, 2010.
Sec. 11. Minnesota Statutes 2008, section 352D.04,
subdivision 1, is amended to read:
Subdivision 1. Investment
options. (a) A person exercising an
option to participate in the retirement program provided by this chapter may
elect to purchase shares in one or a combination of the income share account,
the growth share account, the international share account, the money market
account, the bond market account, the fixed interest account, or the common
stock index account established in section 11A.17. The person may elect to participate in one or
more of the investment accounts in the fund by specifying, on a form
provided in a manner prescribed by the executive director, the
percentage of the person's contributions provided in subdivision 2 to be used
to purchase shares in each of the accounts.
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(b) A participant
may indicate in writing on forms provided, in a manner prescribed by
the Minnesota State Retirement System a choice of options executive
director, choose their investment allocation for subsequent purchases of
shares. Until a different written
indication is made by the participant, the executive director shall purchase shares
in the supplemental fund as selected by the participant. If no initial option is chosen, 100 percent
income shares must be purchased for a participant. A change in choice of investment option is
effective no later than the first pay date first occurring after 30 days
following the receipt of the request for a change at the end of the most
recent United States investment market day.
(c) Shares
in the fixed interest account attributable to any guaranteed investment contract
as of July 1, 1994, may not be withdrawn from the fund or transferred to
another account until the guaranteed investment contract has expired, unless
the participant qualifies for withdrawal under section 352D.05 or for benefit
payments under sections 352D.06 to 352D.075.
(d) (c) A
participant or former participant may also change the investment options
selected for all or a portion of the participant's shares previously purchased
in accounts, subject to the provisions of paragraph (c) concerning the fixed
interest account. Changes in investment
options for the participant's shares must be effected as soon as cash flow to
an account practically permits, but not later than six months after the
requested change trading restrictions imposed on the investment option.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 12. Minnesota Statutes 2008, section 352D.04,
subdivision 2, is amended to read:
Subd. 2. Contribution
rates. (a) The money used to
purchase shares under this section is the employee and employer contributions
provided in this subdivision.
(b) The
employee contribution is an amount equal to four the percent of
salary specified in section 352.04, subdivision 2, or 352.045, subdivision 3.
(c) The
employer contribution is an amount equal to six percent of salary.
(d) For
members of the legislature, the contributions under this subdivision also must
be made on per diem payments received during a regular or special legislative
session, but may not be made on per diem payments received outside of a regular
or special legislative session, on the additional compensation attributable to
a leadership position under section 3.099, subdivision 3, living expense
payments under section 3.101, or special session living expense payments under
section 3.103.
(e) For a
judge who is a member of the unclassified plan under section 352D.02,
subdivision 1, paragraph (c), clause (16), the employee contribution rate is
eight percent of salary, and there is no employer contribution.
(f) These contributions
must be made in the manner provided in section 352.04, subdivisions 4, 5, and
6.
EFFECTIVE DATE. This
section is effective the first day of the first full pay period beginning after
July 1, 2010.
Sec. 13. Minnesota Statutes 2008, section 352D.05,
subdivision 3, is amended to read:
Subd. 3. Full
or partial withdrawal. After
termination of covered employment or at any time thereafter, a participant is
entitled, upon application, to withdraw the cash value of the participant's
total shares or leave such shares on deposit with the supplemental retirement
fund. The account is valued at the end
of the month in which
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most recent
United States investment market day following receipt of the application for withdrawal
is made. Shares not withdrawn remain on
deposit with the supplemental retirement fund until the former participant becomes
at least 55 years old, and applies for an annuity under section 352D.06,
subdivision 1.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 14. Minnesota Statutes 2008, section 352D.05,
subdivision 4, is amended to read:
Subd. 4. Repayment
of refund. (a) A participant in the
unclassified program may repay regular refunds taken under section 352.22, as
provided in section 352.23.
(b) A
participant in the unclassified program or an employee covered by the general employees
retirement plan who has withdrawn the value of the total shares may repay
the refund taken and thereupon restore the service credit, rights and benefits
forfeited by paying into the fund the amount refunded plus interest at an
annual rate of 8.5 percent compounded annually from the date that the refund
was taken until the date that the refund is repaid. If the participant had withdrawn only the
employee shares as permitted under prior laws, repayment must be pro rata.
(c) Except
as provided in section 356.441, the repayment of a refund under this section
must be made in a lump sum.
EFFECTIVE DATE. This section
is effective June 30, 2010.
Sec. 15. Minnesota Statutes 2008, section 352D.06,
subdivision 3, is amended to read:
Subd. 3. Accrual
date. An annuity under this section
accrues the first day of the first full month after an application is
received or the day following termination of state service, whichever is
later. The account must be valued and
redeemed on the later of the end of the month of termination of covered
employment, or the end of the month of receipt of the annuity application for
the purpose of computing the annuity day following receipt of the
application or the day following termination, whichever is later. The benefit must be based on the value of the
account the day following receipt of the application or the date of
termination, whichever is later, plus any contributions and interest received
after that date.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 16. Minnesota Statutes 2008, section 352D.065,
subdivision 3, is amended to read:
Subd. 3. Annuity
payment. The annuity payable under
this section shall begin begins to accrue the first day of
the month following the date of disability receipt of the application
or the day after termination, whichever is later, plus any contributions and
interest received after that date, and shall must be based on
the participant's age when the annuity begins to accrue. The shares shall must be valued
as of the end of the month following authorization of payments day on
which the benefit accrues.
EFFECTIVE DATE. This section
is effective July 1, 2010.
Sec. 17. Minnesota Statutes 2008, section 352D.09,
subdivision 3, is amended to read:
Subd. 3. Prospectus. (a) The executive director shall
annually distribute make available by electronic means to each
participant the prospectus prepared by the supplemental fund, by July 1 or
when received from such fund, whichever is later, to each participant in
covered employment.
(b) Any
participant may contact the Minnesota State Retirement System and request a
copy of the prospectus.
EFFECTIVE DATE. This section
is effective July 1, 2010.
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Sec. 18. Minnesota Statutes 2008, section 352D.09,
subdivision 7, is amended to read:
Subd. 7. Administrative
fees. The board of directors shall
establish a budget and charge participants a reasonable fee to pay the
administrative expenses of the unclassified program. Fees cannot may not be charged
on contributions and investment returns attributable to contributions made
before July 1, 1992. Annual total
fees charged for plan administration cannot exceed 10/100 of one percent of the
contributions and investment returns attributable to contributions made on or
after July 1, 1992.
EFFECTIVE DATE. This section is effective July 1, 2010.
ARTICLE 5
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2009 Supplement, section
353.01, subdivision 2, is amended to read:
Subd. 2. Public
employee. "Public
employee" means a governmental employee or a public officer performing
personal services for a governmental subdivision defined in subdivision 6,
whose salary is paid, in whole or in part, from revenue derived from taxation,
fees, assessments, or from other sources.
For purposes of membership in the association, the term includes
the classes of persons described or listed in subdivision 2a and
excludes the classes of persons listed in subdivision 2b. The term also includes persons who elect
association membership under subdivision 2d, paragraph (a), and persons for whom
the applicable governmental subdivision had elected association membership
under subdivision 2d, paragraph (b). The
term excludes the classes of persons listed in subdivision 2b for purposes of
membership in the association.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 2. Minnesota Statutes 2009 Supplement, section
353.01, subdivision 2a, is amended to read:
Subd. 2a. Included
employees; mandatory membership. (a)
Public employees whose salary from employment in one or more positions
within one governmental subdivision exceeds $425 in any month shall participate
as members of the association. If the
salary is less than $425 in a subsequent month, the employee retains membership
eligibility. Eligible Public employees
shall whose salary exceeds $425 in any month and who are not
specifically excluded under subdivision 2b or who have not been provided an
option to participate under subdivision 2d, whether individually or by action
of the governmental subdivision, must participate as members of the
association with retirement coverage by the public employees retirement plan or
the public employees police and fire retirement plan under this chapter, or the
local government correctional employees retirement plan under chapter 353E, whichever
applies,. Membership commences
as a condition of their employment on the first day of their employment unless
they or on the first day that the eligibility criteria are met,
whichever is later. Public employees
include but are not limited to:
(1) are specifically
excluded under subdivision 2b;
(2) do not exercise their
option to elect retirement coverage in the association as provided in
subdivision 2d, paragraph (a); or
(3) are employees of the
governmental subdivisions listed in subdivision 2d, paragraph (b), where the
governmental subdivision has not elected to participate as a governmental
subdivision covered by the association.
(1) persons whose salary
meets the threshold in this paragraph from employment in one or more positions
within one governmental subdivision;
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(2) elected
county sheriffs;
(3) persons
who are appointed, employed, or contracted to perform governmental functions
that by law or local ordinance are required of a public officer, including, but
not limited to:
(i) town
and city clerk or treasurer;
(ii) county
auditor, treasurer, or recorder;
(iii) city
manager as defined in section 353.028 who does not exercise the option provided
under subdivision 2d; or
(iv)
emergency management director, as provided under section 12.25;
(4)
physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision
2;
(5)
full-time employees of the Dakota County Agricultural Society; and
(6) employees
of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief
Association who are not excluded employees under subdivision 2b due to coverage
by the relief association pension plan and who elected general employee
retirement plan coverage before August 20, 2009.
(b) A
public employee or elected official who was a member of the association
on June 30, 2002, based on employment that qualified for membership coverage by
the public employees retirement plan or the public employees police and fire
plan under this chapter, or the local government correctional employees
retirement plan under chapter 353E as of June 30, 2002, retains that membership
for the duration of the person's employment in that position or incumbency in
elected office. Except as provided in
subdivision 28, the person shall participate as a member until the employee or
elected official terminates public employment under subdivision 11a or
terminates membership under subdivision 11b.
(c) Public
employees under paragraph (a) include:
(1)
physicians under section 353D.01, subdivision 2, who do not elect public
employees defined contribution plan coverage under section 353D.02, subdivision
2;
(2)
full-time employees of the Dakota County Agricultural Society; and
(3) employees
of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief
Association who are not excluded employees under subdivision 2b due to coverage
by the relief association pension plan and who elect Public Employee Retirement
Association general plan coverage under Laws 2009, chapter 169, article 12,
section 10.
(c) If the
salary of an included public employee is less than $425 in any subsequent
month, the member retains membership eligibility.
EFFECTIVE DATE. This
section is effective July 1, 2010, except that the amendment to paragraph (a),
clause (3), applies to any person first appointed, elected, or contracted
after June 30, 2010.
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Sec. 3. Minnesota Statutes 2008, section 353.01,
subdivision 2b, is amended to read:
Subd. 2b. Excluded
employees. (a) The following public
employees are not eligible to participate as members of the association with
retirement coverage by the public general employees retirement
plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire retirement plan:
(1)
persons whose salary from one governmental subdivision never exceeds $425 in a
month;
(2) public
officers, other than county sheriffs, who are elected to a governing
body, city mayors, or persons who are appointed to fill a vacancy in an
elective office of a governing body, whose term of office commences on or after
July 1, 2002, for the service to be rendered in that elective position;
(2) (3) election
officers or election judges;
(3) (4) patient
and inmate personnel who perform services for a governmental subdivision;
(4) (5) except
as otherwise specified in subdivision 12a, employees who are hired for a
temporary position as defined under subdivision 12a, and employees who resign
from a nontemporary position and accept a temporary position within 30 days in
the same governmental subdivision;
(5) (6) employees
who are employed by reason of work emergency caused by fire, flood, storm, or
similar disaster;
(6) (7) employees
who by virtue of their employment in one governmental subdivision are required
by law to be a member of and to contribute to any of the plans or funds
administered by the Minnesota State Retirement System, the Teachers Retirement
Association, the Duluth Teachers Retirement Fund Association, the St. Paul
Teachers Retirement Fund Association, the Minneapolis Employees Retirement
Fund, or any police or firefighters relief association governed by section
69.77 that has not consolidated with the Public Employees Retirement Association,
or any local police or firefighters consolidation account who have not elected
the type of benefit coverage provided by the public employees police and fire
fund under sections 353A.01 to 353A.10, or any persons covered by section
353.665, subdivision 4, 5, or 6, who have not elected public employees police
and fire plan benefit coverage. This
clause must not be construed to prevent a person from being a member of and
contributing to the Public Employees Retirement Association and also belonging
to and contributing to another public pension plan or fund for other service
occurring during the same period of time.
A person who meets the definition of "public employee" in
subdivision 2 by virtue of other service occurring during the same period of
time becomes a member of the association unless contributions are made to
another public retirement fund on the salary based on the other service or to
the Teachers Retirement Association by a teacher as defined in section 354.05,
subdivision 2;
(7) (8) persons
who are members of a religious order and are excluded from coverage under the
federal Old Age, Survivors, Disability, and Health Insurance Program for the
performance of service as specified in United States Code, title 42, section
410(a)(8)(A), as amended through January 1, 1987, if no irrevocable election of
coverage has been made under section 3121(r) of the Internal Revenue Code of
1954, as amended;
(8) (9) employees
of a governmental subdivision who have not reached the age of 23 and are
enrolled on a full-time basis to attend or are attending classes on a full-time
basis at an accredited school, college, or university in an undergraduate,
graduate, or professional-technical program, or a public or charter high
school;
(9) (10) resident
physicians, medical interns, and pharmacist residents and pharmacist interns
who are serving in a degree or residency program in public hospitals or
clinics;
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(10) (11) students who
are serving in an internship or residency program sponsored by an accredited
educational institution;
(11) (12) persons
who hold a part-time adult supplementary technical college license who render
part-time teaching service in a technical college;
(12) (13) except
for employees of Hennepin County or Hennepin Healthcare System, Inc., foreign
citizens working for who are employed by a governmental
subdivision with under a work permit of less than three years,
or an H-1b visa valid initially issued or extended for a
combined period less than three years of employment. Upon notice to the association that the
work permit or visa extends extension of the employment beyond the three-year
period, the foreign citizens must be reported for membership from the date
of the extension beginning the first of the month thereafter provided
the monthly earnings threshold as provided under subdivision 2a is met;
(13) (14) public
hospital employees who elected not to participate as members of the association
before 1972 and who did not elect to participate from July 1, 1988, to October
1, 1988;
(14) (15) except
as provided in section 353.86, volunteer ambulance service personnel, as defined
in subdivision 35, but persons who serve as volunteer ambulance service
personnel may still qualify as public employees under subdivision 2 and may be
members of the Public Employees Retirement Association and participants in the public
general employees retirement fund plan or the public
employees police and fire fund plan, whichever applies, on the
basis of compensation received from public employment service other than
service as volunteer ambulance service personnel;
(15) (16) except
as provided in section 353.87, volunteer firefighters, as defined in
subdivision 36, engaging in activities undertaken as part of volunteer
firefighter duties; provided that, but a person who is a
volunteer firefighter may still qualify as a public employee under subdivision
2 and may be a member of the Public Employees Retirement Association and a
participant in the public general employees retirement fund
plan or the public employees police and fire fund plan,
whichever applies, on the basis of compensation received from public employment
activities other than those as a volunteer firefighter;
(16) (17) pipefitters
and associated trades personnel employed by Independent School District
No. 625, St. Paul, with coverage under a collective bargaining
agreement by the pipefitters local 455 pension plan who were either first
employed after May 1, 1997, or, if first employed before May 2, 1997, elected
to be excluded under Laws 1997, chapter 241, article 2, section 12;
(17) (18) electrical
workers, plumbers, carpenters, and associated trades personnel who are
employed by Independent School District No. 625, St. Paul, or the
city of St. Paul, who have retirement coverage under a collective
bargaining agreement by the Electrical Workers Local 110 pension plan, the
United Association Plumbers Local 34 pension plan, or the pension plan
applicable to Carpenters Local 87 pension plan who were either first
employed after May 1, 2000, or, if first employed before May 2, 2000, elected
to be excluded under Laws 2000, chapter 461, article 7, section 5;
(18) (19) bricklayers,
allied craftworkers, cement masons, glaziers, glassworkers, painters, allied
tradesworkers, and plasterers who are employed by the city of
St. Paul or Independent School District No. 625, St. Paul, with
coverage under a collective bargaining agreement by the Bricklayers and Allied
Craftworkers Local 1 pension plan, the Cement Masons Local 633 pension plan,
the Glaziers and Glassworkers Local L-1324 pension plan, the Painters and
Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265
pension plan who were either first employed after May 1, 2001, or if first
employed before May 2, 2001, elected to be excluded under Laws 2001,
First Special Session chapter 10, article 10, section 6;
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(19) (20) plumbers who
are employed by the Metropolitan Airports Commission, with coverage under a
collective bargaining agreement by the Plumbers Local 34 pension plan, who
either were first employed after May 1, 2001, or if first employed before
May 2, 2001, elected to be excluded under Laws 2001, First Special Session
chapter 10, article 10, section 6;
(20) (21) employees
who are hired after June 30, 2002, to fill seasonal positions under subdivision
12b which are limited in duration by the employer to 185 consecutive calendar
days or less in each year of employment with the governmental subdivision;
(21) (22) persons
who are provided supported employment or work-study positions by a governmental
subdivision and who participate in an employment or industries program
maintained for the benefit of these persons where the governmental subdivision
limits the position's duration to three years or less, including persons
participating in a federal or state subsidized on-the-job training, work
experience, senior citizen, youth, or unemployment relief program where the
training or work experience is not provided as a part of, or for, future
permanent public employment;
(22) (23) independent
contractors and the employees of independent contractors; and
(23) (24) reemployed
annuitants of the association during the course of that reemployment.;
and
(25) persons
appointed to serve on a board or commission of a governmental subdivision or an
instrumentality thereof.
(b) Any
person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and
is not an employee of an independent contractor.
EFFECTIVE DATE. This
section is effective July 1, 2010, except that clause (25) is effective for
persons first appointed after June 30, 2010.
Sec. 4. Minnesota Statutes 2008, section 353.01,
subdivision 2d, is amended to read:
Subd. 2d. Optional
membership. (a) Membership in the
association is optional by action of the individual employee for the following
public employees who meet the conditions set forth in subdivision 2a:
(1) members
of the coordinated plan who are also employees of labor organizations as
defined in section 353.017, subdivision 1, for their employment by the labor
organization only, if they elect to have membership under section 353.017,
subdivision 2;
(2) persons
who are elected or persons who are appointed to elected positions other than
local governing body elected positions who elect to participate by filing a
written election for membership;
(3) members
of the association who are appointed by the governor to be a state department
head and who elect not to be covered by the general state employees retirement
plan of the Minnesota State Retirement System under section 352.021;
(4) city
managers as defined in section 353.028, subdivision 1, who do not elect to be
excluded from membership in the association under section 353.028, subdivision
2; and
(5)
employees of the Port Authority of the city of St. Paul on January 1,
2003, who were at least age 45 on that date, and who elected to participate by
filing a written election for membership.
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(b) Membership in
the association is optional by action of the governmental subdivision for the
employees of the following governmental subdivisions under the conditions
specified:
(1) the Minnesota
Association of Townships if the board of that association, at its option,
certifies to the executive director that its employees who meet the conditions
set forth in subdivision 2a are to be included for purposes of retirement
coverage, in which case the status of the association as a participating
employer is permanent;
(2) a county historical
society if the county in which the historical society is located, at its
option, certifies to the executive director that the employees of the
historical society who meet the conditions set forth in subdivision 2a are to
be considered county employees for purposes of retirement coverage under this
chapter. The status as a county employee
must be accorded to all similarly situated county historical society employees
and, once established, must continue as long as a person is an employee of the
county historical society; and
(3) Hennepin Healthcare
System, Inc., a public corporation, with respect to employees other than
paramedics, emergency medical technicians, and protection officers, if the
corporate board establishes alternative retirement plans for certain classes of
employees of the corporation and certifies to the association the applicable
employees to be excluded from future retirement coverage.
(c) For employees who are
covered by paragraph (a), clause (1), (2), or (3), or covered by paragraph (b),
clause (1) or (2), if the necessary membership election is not made, the
employee is excluded from retirement coverage under this chapter. For employees who are covered by paragraph
(a), clause (4), if the necessary election is not made, the employee must
become a member and have retirement coverage under the applicable provisions
of this chapter. For employees
specified in paragraph (b), clause (3), membership continues until the
exclusion option is exercised for the designated class of employee.
(d) The option to become a
member, once exercised under this subdivision, may not be withdrawn until the
termination of public service as defined under subdivision 11a.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 5. Minnesota Statutes 2009 Supplement, section
353.01, subdivision 16, is amended to read:
Subd. 16. Allowable
service; limits and computation. (a)
"Allowable service" means:
(1) service during years of
actual membership in the course of which employee deductions were withheld from
salary and contributions were made at the applicable rates under section
353.27, 353.65, or 353E.03;
(2) periods of service
covered by payments in lieu of salary deductions under sections 353.27,
subdivision 12, and 353.35;
(3) service in years during
which the public employee was not a member but for which the member later
elected, while a member, to obtain credit by making payments to the fund as
permitted by any law then in effect;
(4) a period of authorized
leave of absence with pay from which deductions for employee contributions are
made, deposited, and credited to the fund;
(5) a period of authorized
personal, parental, or medical leave of absence without pay, including a leave
of absence covered under the federal Family Medical Leave Act, that does not
exceed one year, and for which a member obtained service credit for each month
in the leave period by payment under section 353.0161 to the fund made in place
of salary deductions. An employee must
return to public service and render a minimum of three
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months of allowable
service in order to be eligible to make payment under section 353.0161 for a
subsequent authorized leave of absence without pay. Upon payment, the employee must be granted
allowable service credit for the purchased period;
(6) a periodic, repetitive
leave that is offered to all employees of a governmental subdivision. The leave program may not exceed 208 hours
per annual normal work cycle as certified to the association by the employer. A participating member obtains service credit
by making employee contributions in an amount or amounts based on the member's
average salary, excluding overtime pay, that would have been paid if the
leave had not been taken. The employer
shall pay the employer and additional employer contributions on behalf of the
participating member. The employee and
the employer are responsible to pay interest on their respective shares at the
rate of 8.5 percent a year, compounded annually, from the end of the normal
cycle until full payment is made. An
employer shall also make the employer and additional employer contributions,
plus 8.5 percent interest, compounded annually, on behalf of an employee who
makes employee contributions but terminates public service. The employee contributions must be made
within one year after the end of the annual normal working cycle or within 30
days after termination of public service, whichever is sooner. The executive director shall prescribe the
manner and forms to be used by a governmental subdivision in administering a
periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased
period;
(7) an authorized temporary
or seasonal layoff under subdivision 12, limited to three months allowable
service per authorized temporary or seasonal layoff in one calendar year. An employee who has received the maximum
service credit allowed for an authorized temporary or seasonal layoff must
return to public service and must obtain a minimum of three months of allowable
service subsequent to the layoff in order to receive allowable service for a
subsequent authorized temporary or seasonal layoff;
(8) a period during which a
member is absent from employment by a governmental subdivision by reason of
service in the uniformed services, as defined in United States Code, title 38,
section 4303(13), if the member returns to public service with the same
governmental subdivision upon discharge from service in the uniformed service
within the time frames required under United States Code, title 38, section
4312(e), provided that the member did not separate from uniformed service with
a dishonorable or bad conduct discharge or under other than honorable
conditions. The service is
must be credited if the member pays into the fund equivalent employee
contributions based upon the contribution rate or rates in effect at the time
that the uniformed service was performed multiplied by the full and fractional
years being purchased and applied to the annual salary rate. The annual salary rate is the average annual
salary, excluding overtime pay, during the purchase period that the
member would have received if the member had continued to be employed in
covered employment rather than to provide uniformed service, or, if the determination
of that rate is not reasonably certain, the annual salary rate is the member's
average salary rate, excluding overtime pay, during the 12-month period
of covered employment rendered immediately preceding the period of the
uniformed service. Payment of the member
equivalent contributions must be made during a period that begins with the date
on which the individual returns to public employment and that is three times
the length of the military leave period, or within five years of the date of discharge
from the military service, whichever is less.
If the determined payment period is less than one year, the
contributions required under this clause to receive service credit may be made
within one year of the discharge date.
Payment may not be accepted following 30 days after termination of
public service under subdivision 11a. If
the member equivalent contributions provided for in this clause are not paid in
full, the member's allowable service credit must be prorated by multiplying the
full and fractional number of years of uniformed service eligible for purchase
by the ratio obtained by dividing the total member contributions received by
the total member contributions otherwise required under this clause. The equivalent employer contribution, and, if
applicable, the equivalent additional employer contribution must be paid by the
governmental subdivision employing the member if the member makes the
equivalent employee contributions. The
employer payments must be made from funds available to the employing unit,
using the employer and additional employer contribution rate or rates in effect
at the time that the uniformed service was performed, applied to the same
annual salary rate or rates used to compute the equivalent member contribution. The governmental subdivision involved may
appropriate money for those payments.
The amount of service credit
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obtainable under
this section may not exceed five years unless a longer purchase period is
required under United States Code, title 38, section 4312. The employing unit shall pay interest on all
equivalent member and employer contribution amounts payable under this
clause. Interest must be computed at a
rate of 8.5 percent compounded annually from the end of each fiscal year of the
leave or the break in service to the end of the month in which the payment is
received. Upon payment, the employee
must be granted allowable service credit for the purchased period; or
(9) a period specified under
subdivision 40.
(b) For calculating benefits
under sections 353.30, 353.31, 353.32, and 353.33 for state officers and
employees displaced by the Community Corrections Act, chapter 401, and
transferred into county service under section 401.04, "allowable
service" means the combined years of allowable service as defined in
paragraph (a), clauses (1) to (6), and section 352.01, subdivision 11.
(c) For a public employee
who has prior service covered by a local police or firefighters relief
association that has consolidated with the Public Employees Retirement
Association or to which section 353.665 applies, and who has elected the type
of benefit coverage provided by the public employees police and fire fund
either under section 353A.08 following the consolidation or under section
353.665, subdivision 4, "applicable service" is a period of service
credited by the local police or firefighters relief association as of the
effective date of the consolidation based on law and on bylaw provisions
governing the relief association on the date of the initiation of the
consolidation procedure.
(d) No member may receive
more than 12 months of allowable service credit in a year either for vesting
purposes or for benefit calculation purposes.
(e) MS 2002 [Expired]
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 6. Minnesota Statutes 2008, section 353.0161, subdivision
2, is amended to read:
Subd. 2. Purchase
procedure. (a) An employee covered
by a plan specified in subdivision 1 may purchase credit for allowable service
in that plan for a period specified in subdivision 1 if the employee makes a
payment as specified in paragraph (b) or (c), whichever applies. The employing unit, at its option, may pay
the employer portion of the amount specified in paragraph (b) on behalf of its
employees.
(b) If payment is received
by the executive director within one year from the date the member returned to
work following the authorized leave, or within 30 days after the date of
termination of public service if the member did not return to work, the payment
amount is equal to the employee and employer contribution rates specified in
law for the applicable plan at the end of the leave period, or at termination
of public service, whichever is earlier, multiplied by the employee's average
monthly salary, excluding overtime, upon which deductions were paid
during the six months, or portion thereof, before the commencement of the leave
of absence and by the number of months of the leave of absence for which the
employee wants allowable service credit.
Payments made under this paragraph must include compound interest at a
monthly rate of 0.71 percent from the last day of the leave period until the
last day of the month in which payment is received.
(c) If payment is received
by the executive director after one year, the payment amount is the amount
determined under section 356.551.
Payment under this paragraph must be made before the date the person
terminates public service under section 353.01, subdivision 11a.
EFFECTIVE DATE. This section is effective the day following final
enactment.
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Sec. 7. [353.0162]
REDUCED SALARY PERIODS SALARY CREDIT PURCHASE.
(a) A
member may purchase additional salary credit for a period specified in this
section.
(b) The
applicable period is a period during which the member is receiving a reduced
salary from the employer while the member is:
(1)
receiving temporary workers' compensation payments related to the member's
service to the public employer;
(2) on an
authorized medical leave of absence; or
(3) on an
authorized partial paid leave of absence as a result of a budgetary or salary
savings program offered or mandated by a governmental subdivision.
(c) The
differential salary amount is the difference between the average monthly salary
received by the member during the period of reduced salary under this section
and the average monthly salary of the member, excluding overtime, on which
contributions to the applicable plan were made during the period of the last
six months of covered employment occurring immediately before the period of
reduced salary, applied to the member's normal employment period, measured in
hours or otherwise, as applicable.
(d) To
receive eligible salary credit, the member shall pay an amount equal to:
(1) the
applicable employee contribution rate under section 353.27, subdivision 2;
353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by
the differential salary amount;
(2) plus an
employer equivalent payment equal to the applicable employer contribution rate
in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
subdivision 2, as applicable, multiplied by the differential salary amount;
(3) plus,
if applicable, an equivalent employer additional amount equal to the additional
employer contribution rate in section 353.27, subdivision 3a, multiplied by the
differential salary amount.
(e) The
employer, by appropriate action of its governing body and documented in its
official records, may pay the employer equivalent contributions and, as
applicable, the equivalent employer additional contributions on behalf of the
member.
(f) Payment
under this section must include interest on the contribution amount or amounts,
whichever applies, at an 8.5 percent annual rate, prorated for applicable
months from the date on which the period of reduced salary specified under this
section terminates to the date on which the payment or payments are received by
the executive director. Payment under
this section must be completed within the earlier of 30 days from termination
of public service by the employee under section 353.01, subdivision 11a, or one
year after the termination of the period specified in paragraph (b), as further
restricted under this section.
(g) The
period for which additional allowable salary credit may be purchased is limited
to the period during which the person receives temporary workers' compensation
payments or for those business years in which the governmental subdivision
offers or mandates a budget or salary savings program, as certified to the
executive director by a resolution of the governing body of the governmental
subdivision. For an authorized medical
leave of absence, the period for which allowable salary credit may be purchased
may not exceed 12 consecutive months of authorized medical leave.
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(h) To purchase
salary credit for a subsequent period of temporary workers' compensation
benefits or subsequent authorized medical leave of absence, the member must
return to public service and render a minimum of three months of allowable service.
EFFECTIVE DATE. This section is effective July 1, 2010. Purchase of reduced salary credit may be made
for a period mandated or offered by a governmental subdivision for purposes of
budget or salary savings on or after July 1, 2009.
Sec. 8. Minnesota Statutes 2008, section 353.03,
subdivision 1, is amended to read:
Subdivision 1. Management;
composition; election. (a) The
management of the public employees retirement fund is vested in an 11-member
board of trustees consisting of ten members and the state auditor. The state auditor may designate a deputy
auditor with expertise in pension matters as the auditor's representative on
the board. The governor shall appoint
five trustees to four-year terms, one of whom shall be designated to represent
school boards, one to represent cities, one to represent counties, one who is a
retired annuitant, and one who is a public member knowledgeable in pension
matters. The membership of the
association, including recipients of retirement annuities and disability and
survivor benefits, shall elect five trustees for terms of four years, one of
whom must be a member of the police and fire fund and one of whom must be a
former member who met the definition of public employee under section 353.01,
subdivisions 2 and 2a, for at least five years prior to terminating membership and
who is receiving a retirement annuity or a member who receives a disability
benefit. Terms expire on January 31 of
the fourth year, and positions are vacant until newly elected members are
seated. Except as provided in this
subdivision, trustees elected by the membership of the association must be
public employees and members of the association.
(b) For seven days beginning
October 1 of each year preceding a year in which an election is held, the
association shall accept at its office filings in person or by mail
of candidates for the board of trustees.
A candidate shall submit at the time of filing a nominating petition
signed by 25 or more members of the association. No name may be withdrawn from nomination by
the nominee after October 15. At the
request of a candidate for an elected position on the board of trustees, the
board shall mail provide a statement of up to 300 words prepared
by the candidate to all persons eligible to vote in the election of the
candidate. The board may adopt policies,
subject to review and approval by the secretary of state under paragraph (e),
and procedures to govern the form and length of these statements,
and the timing of mailings, and deadlines for submitting
materials to be mailed. The secretary
of state shall resolve disputes between the board and a candidate concerning
application of these policies to a particular statement distributed to
the eligible voters.
(c) By January 10 of each
year in which elections are to be held, the board shall distribute by mail
to the members ballots listing eligible voters the instructions and
materials necessary to vote for the candidates seeking terms on the
board of trustees. Eligible voters are
the members, retirees, and other benefit recipients. No member voter may vote for
more than one candidate for each board position to be filled. A ballot indicating a vote for more
than one person for any position is void.
No special marking may be used on the ballot to indicate
incumbents. Ballots Votes cast
by using paper ballots mailed to the association must be postmarked no
later than January 31. Votes cast by
using telephone or other electronic means authorized under the board's procedures
must be entered by the end of the day on January 31. The ballot envelopes must be so
designated and the ballots must be counted in a manner that ensures
design of the voting response media must ensure that each voter's vote
is secret.
(d) A candidate who receives
contributions or, who makes expenditures in excess of $100, or who
has given implicit or explicit consent for any other person to receive
contributions or make expenditures in excess of $100 for the purpose of
bringing about the candidate's election, shall file a report with the
campaign finance and public disclosure board disclosing the source and amount
of all contributions to the candidate's campaign. The campaign finance and public disclosure
board shall prescribe forms governing these disclosures. Expenditures and contributions have the
meaning defined in section 10A.01. These
terms do not include the mailing any distribution made by the
association board on behalf of the candidate.
A candidate shall file a report within 30 days from the
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day that the
results of the election are announced.
The Campaign Finance and Public Disclosure Board shall maintain these
reports and make them available for public inspection in the same manner as the
board maintains and makes available other reports filed with it.
(e) The
secretary of state shall review and approve comment on the
procedures defined by the board of trustees for conducting the elections
specified in this subdivision, including board policies adopted under paragraph
(b).
(f) The
board of trustees and the executive director shall undertake their activities
consistent with chapter 356A.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2008, section 353.27,
subdivision 4, is amended to read:
Subd. 4. Employer
reporting requirements; contributions; member status. (a) A representative authorized by the
head of each department shall deduct employee contributions from the salary of
each public employee who qualifies for membership under this chapter and
or chapter 353D or 353E at the rate under section 353.27, 353.65, 353D.03,
or 353E.03, whichever is applicable, that is in effect on the date the salary
is paid. The employer representative
must also remit payment in a manner prescribed by the executive director
for the aggregate amount of the employee contributions, and the required
employer contributions and the additional employer contributions to
be received by the association within 14 calendar days after each pay
date. If the payment is less than the
amount required, the employer must pay the shortage amount to the association
and collect reimbursement of any employee contribution shortage paid on behalf
of a member through subsequent payroll withholdings from the wages of the
employee. Payment of shortages in
employee contributions and associated employer contributions, if applicable,
must include interest at the rate specified in section 353.28, subdivision 5,
if not received within 30 days following the date the amount was initially due
under this section.
(b) The head of
each department or the person's designee shall submit for each pay
period submit to the association a salary deduction report in the format
prescribed by the executive director. The
report must be received by the association within 14 calendar days after each
pay date or the employer may be assessed a fine of $5 per calendar day until
the association receives the required data.
Data required to be submitted as part of salary deduction
reporting must include, but are not limited to:
(1) the legal
names and Social Security numbers of employees who are members;
(2) the
amount of each employee's salary deduction;
(3) the
amount of salary defined in section 353.01, subdivision 10, earned in the
pay period from which each deduction was made and the salary amount
earned by a reemployed annuitant under section 353.37, subdivision 1, or
353.371, subdivision 1, or by a disabled member under section 353.33,
subdivision 7 or 7a;
(4) the
beginning and ending dates of the payroll period covered and the date of actual
payment; and
(5)
adjustments or corrections covering past pay periods as authorized by the
executive director.
(b) (c) Employers
must furnish the data required for enrollment for each new or reinstated employee
who qualifies for membership in the format prescribed by the executive
director. The required enrollment data
on new employees members must be submitted to the association
prior to or concurrent with the submission of the initial employee salary
deduction. Also, the employer
shall also report to the association all member employment status
changes, such as leaves of absence, terminations, and death, and shall report
the effective dates of those changes, on an ongoing basis for the payroll cycle
in which they occur. If an employer fails
to comply with the reporting requirements under this paragraph, the executive
director may assess a fine of $25 for each failure if the association staff has
notified the employer of the noncompliance and attempted to obtain the missing
data or form from the employer for a period of more than three months.
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(d) The employer shall furnish
data, forms, and reports as may be required by the executive director for
proper administration of the retirement system.
Before implementing new or different computerized reporting
requirements, the executive director shall give appropriate advance notice to
governmental subdivisions to allow time for system modifications.
(c) (e) Notwithstanding
paragraph (a), the association may provide for less frequent reporting and
payments for small employers.
(f) The executive
director may establish reporting procedures and methods as required to review
compliance by employers with the salary and contribution reporting requirements
in this chapter. A review of the payroll
records of a participating employer may be conducted by the association on a
periodic basis or as a result of concerns known to exist within a governmental
subdivision. An employer under review
must extract requested data and provide records to the association after
receiving reasonable advanced notice.
Failure to provide requested information or materials will result in the
employer being liable to the association for any expenses associated with a
field audit, which may include staff salaries, administrative expenses, and
travel expenses.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2009 Supplement, section
353.27, subdivision 7, is amended to read:
Subd. 7. Adjustment
for erroneous receipts or disbursements.
(a) Except as provided in paragraph (b), erroneous employee
deductions and erroneous employer contributions and additional employer
contributions for a person, who otherwise does not qualify for
membership under this chapter, are considered:
(1) valid if
the initial erroneous deduction began before January 1, 1990. Upon determination of the error by the
association, the person may continue membership in the association while
employed in the same position for which erroneous deductions were taken, or
file a written election to terminate membership and apply for a refund upon
termination of public service or defer an annuity under section 353.34; or
(2) invalid,
if the initial erroneous employee deduction began on or after January 1,
1990. Upon determination of the error,
the association shall refund all erroneous employee deductions and all
erroneous employer contributions as specified in paragraph (e). No person may claim a right to continued or
past membership in the association based on erroneous deductions which began on
or after January 1, 1990.
(b)
Erroneous deductions taken from the salary of a person who did not qualify for
membership in the association by virtue of concurrent employment before July 1,
1978, which required contributions to another retirement fund or relief
association established for the benefit of officers and employees of a
governmental subdivision, are invalid.
Upon discovery of the error, the association shall remove
allowable service credit for all invalid service if forfeited and,
upon termination of public service, the association shall refund all erroneous
employee deductions to the person, with interest as determined under section
353.34, subdivision 2, and all erroneous employer contributions without
interest to the employer. This paragraph
has both retroactive and prospective application.
(c)
Adjustments to correct employer contributions and employee deductions taken in
error from amounts which are not salary under section 353.01, subdivision 10,
must be made as specified in paragraph (e).
The period of adjustment must be limited to the fiscal year in which the
error is discovered by the association and the immediate two preceding fiscal
years.
(d) If there
is evidence of fraud or other misconduct on the part of the employee or the employer,
the board of trustees may authorize adjustments to the account of a member or
former member to correct erroneous employee deductions and employer
contributions on invalid salary and the recovery of any overpayments for a
period longer than provided for under paragraph (c).
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(e) Upon discovery
of the receipt of erroneous employee deductions and employer contributions
under paragraph (a), clause (2), or paragraph (c), the association must
require the employer to discontinue the erroneous employee deductions and
erroneous employer contributions reported on behalf of a member. Upon discontinuation, the association must:
(1) for a member, provide a
refund or credit to the employer in the amount of the invalid employee
deductions with interest on the invalid employee deductions at the rate
specified under section 353.34, subdivision 2, from the received date of each
invalid salary transaction through the date the credit or refund is made;
and the employer must pay the refunded employee deductions plus interest to the
member;
(2) for a former member who:
(i) is not receiving a
retirement annuity or benefit, return the erroneous employee deductions to the
former member through a refund with interest at the rate specified under
section 353.34, subdivision 2, from the received date of each invalid salary
transaction through the date the credit or refund is made; or
(ii) is receiving a
retirement annuity or disability benefit, or a person who is receiving an
optional annuity or survivor benefit, for whom it has been determined an overpayment
must be recovered, adjust the payment amount and recover the overpayments as
provided under this section; and
(3) return the invalid
employer contributions reported on behalf of a member or former member to the
employer by providing a credit against future contributions payable by the
employer.
(f) In the event that a
salary warrant or check from which a deduction for the retirement fund was
taken has been canceled or the amount of the warrant or check returned to the
funds of the department making the payment, a refund of the sum deducted, or
any portion of it that is required to adjust the deductions, must be made to
the department or institution.
(g) If the accrual date of
any retirement annuity, survivor benefit, or disability benefit is within the
limitation period specified in paragraph (c), and an overpayment has resulted
by using invalid service or salary, or due to any erroneous calculation
procedure, the association must recalculate the annuity or benefit payable and
recover any overpayment as provided under subdivision 7b.
(h) Notwithstanding the
provisions of this subdivision, the association may apply the Revenue
Procedures defined in the federal Internal Revenue Service Employee Plans
Compliance Resolution System and not issue a refund of erroneous employee
deductions and employer contributions or not recover a small overpayment of
benefits if the cost to correct the error would exceed the amount of the member
refund or overpayment.
(i) Any fees or penalties
assessed by the federal Internal Revenue Service for any failure by an employer
to follow the statutory requirements for reporting eligible members and salary
must be paid by the employer.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 11. Minnesota Statutes 2008, section 353.27,
subdivision 10, is amended to read:
Subd. 10. Employer
exclusion reports. (a) The
head of a department shall annually furnish the executive director with an
exclusion report listing only those employees in potentially PERA-eligible
positions who were not reported as members of the association and who worked
during the school year for school employees and calendar year for nonschool
employees. The department head must
certify the accuracy and completeness of the exclusion report to the
association. The executive director
shall prescribe the manner and forms, including standardized exclusion codes,
to be used by a governmental subdivision in preparing and filing exclusion
reports. Also, the
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executive director
shall also check the exclusion report to ascertain whether any omissions
have been made by a department head in the reporting of new public employees
for membership. The executive director
may delegate an association employee under section 353.03, subdivision 3a,
paragraph (b), clause (5), to conduct a field audit to review the payroll
records of a governmental subdivision.
(b) If an
employer fails to comply with the reporting requirements under this
subdivision, the executive director may assess a fine of $25 for each failure
if the association staff has notified the employer of the noncompliance and
attempted to obtain the missing data or form from the employer for a period of
more than three months.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2009 Supplement, section
353.371, subdivision 4, is amended to read:
Subd. 4. Duration. Postretirement option employment shall
may be for an initial period not to exceed one year. At the end of the initial period, the
governing body has sole discretion to determine if the offer of a
postretirement option position will be renewed, renewed with modifications, or
terminated. Postretirement option
employment may be renewed annually, but may not be renewed after the
individual attains retirement age as defined in United States Code, title 42,
section 416(l) no more than four renewals may occur.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2008, section 353D.01,
subdivision 2, is amended to read:
Subd. 2. Eligibility. (a) Eligibility to participate in the
defined contribution plan is available to:
(1) elected
local government officials of a governmental subdivision who elect to
participate in the plan under section 353D.02, subdivision 1, and who, for the
elected service rendered to a governmental subdivision, are not members of the
Public Employees Retirement Association within the meaning of section 353.01,
subdivision 7;
(2)
physicians who, if they did not elect to participate in the plan under section
353D.02, subdivision 2, would meet the definition of member under section
353.01, subdivision 7;
(3) basic
and advanced life-support emergency medical service personnel who are
employed by any public ambulance service that elects to participate under
section 353D.02, subdivision 3;
(4) members
of a municipal rescue squad associated with the city of Litchfield in
Meeker County, or of a county rescue squad associated with Kandiyohi County, if
an independent nonprofit rescue squad corporation, incorporated under chapter
317A, performing emergency management services, and if not affiliated with a fire
department or ambulance service and if its members are not eligible for
membership in that fire department's or ambulance service's relief association
or comparable pension plan;
(5)
employees of the Port Authority of the city of St. Paul who elect to
participate in the plan under section 353D.02, subdivision 5, and who are not
members of the Public Employees Retirement Association under section 353.01,
subdivision 7;
(6) city managers
who elected to be excluded from the general employees retirement plan of the
Public Employees Retirement Association under section 353.028 and who elected
to participate in the public employees defined contribution plan under section
353.028, subdivision 3, paragraph (b); and
(7)
volunteer or emergency on-call firefighters serving in a municipal fire
department or an independent nonprofit firefighting corporation who are not
covered by the public employees police and fire retirement plan and who are not
covered by a volunteer firefighters relief association and who elect to
participate in the public employees defined contribution plan.;
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Top of Page 10715
(8) elected
county sheriffs who are former members of the police and fire plan and who are
receiving a retirement annuity as provided under section 353.651; and
(9) persons
who are excluded from membership under section 353.01, subdivision 2b,
paragraph (a), clause (25).
(b) For
purposes of this chapter, an elected local government official includes a
person appointed to fill a vacancy in an elective office. Service as an elected local government
official only includes service for the governmental subdivision for which the
official was elected by the public at large.
Service as an elected local government official ceases and eligibility
to participate terminates when the person ceases to be an elected
official. An elected local government
official does not include an elected county sheriff who must be a member of
the police and fire plan as provided under chapter 353.
(c)
Individuals otherwise eligible to participate in the plan under this
subdivision who are currently covered by a public or private pension plan
because of their employment or provision of services are not eligible to
participate in the public employees defined contribution plan.
(d) A
former participant is a person who has terminated eligible employment or
service and has not withdrawn the value of the person's individual account.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 14. Minnesota Statutes 2008, section 353D.03,
subdivision 1, is amended to read:
Subdivision
1. Local
government official contribution Contributions for eligible participants. An (a) The following classes of
eligible elected local government official participants who elects
elect to participate in the public employees defined contribution plan under
section 353D.02 shall contribute an amount equal to five percent of salary
as defined in section 353.01, subdivision 10. A participating:
(1) elected
local government official's officials;
(2)
physicians; and
(3) persons
who are excluded from membership under section 353.01, subdivision 2b, clause
(25).
(b) A
participant's governmental subdivision shall contribute a matching
amount.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 15. Minnesota Statutes 2008, section 353D.04,
subdivision 1, is amended to read:
Subdivision
1. Crediting
of account contributions to participant accounts. (a) Contributions made by or on
behalf of a participating elected local government official or physician
participant under section 353D.03, subdivisions 1, 5, and 6, paragraph (a), must
be remitted to the Public Employees Retirement Association and credited to the
individual account established for the participant. Ambulance service
(b) Contributions
as provided under section 353D.03, subdivisions 3, and 6, paragraph (b), must
be remitted on a regular basis to the association together with any member
contributions paid or withheld. Those
contributions must be credited to the individual account of each participating
member.
EFFECTIVE DATE. This
section is effective July 1, 2010.
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Sec. 16. Minnesota Statutes 2008, section 353D.04,
subdivision 2, is amended to read:
Subd. 2. Authority
to adopt policies correcting erroneous contributions. The executive director may adopt policies
and procedures regarding deductions taken totally or partially in error by the
employer from the salary of an elected official.
EFFECTIVE DATE. This
section is effective July 1, 2010.
Sec. 17. Minnesota Statutes 2009 Supplement, section
353F.02, subdivision 4, is amended to read:
Subd. 4. Medical
facility. "Medical
facility" means:
(1) Bridges
Medical Services;
(2) the
City of Cannon Falls Hospital;
(3) the
Chris Jenson Health and Rehabilitation Center in St. Louis County;
(4) Clearwater
County Memorial Hospital doing business as Clearwater Health Services in
Bagley;
(4) (5) the
Dassel Lakeside Community Home;
(6) the
Douglas County Hospital, with respect to the Mental Health Unit;
(5) (7) the
Fair Oaks Lodge, Wadena;
(6) (8) the
Glencoe Area Health Center;
(7) (9) Hutchinson
Area Health Care;
(8) (10) the
Lakefield Nursing Home;
(9) (11) the
Lakeview Nursing Home in Gaylord;
(10) (12) the
Luverne Public Hospital;
(11) (13) the
Oakland Park Nursing Home;
(12) (14) the
RenVilla Nursing Home;
(13) (15) the
Rice Memorial Hospital in Willmar, with respect to the Department of Radiology
and the Department of Radiation/Oncology;
(14) (16) the
St. Peter Community Health Care Center;
(15) (17) the
Waconia-Ridgeview Medical Center;
(16) (18) the
Weiner Memorial Medical Center, Inc.; and
(19) the
Wheaton Community Hospital; and
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(17) (20) the Worthington
Regional Hospital.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 18. Minnesota Statutes 2008, section 353F.025,
subdivision 1, is amended to read:
Subdivision
1. Eligibility
determination. (a) The chief clerical
officer of a governmental subdivision may submit a resolution from the
governing body to the executive director of the Public Employees Retirement
Association which supports providing coverage under this chapter for employees
of that governmental subdivision who are privatized, and which states that the
governing body will pay for actuarial calculations, as further specified in
paragraph (c).
(b) The
governing body must also provide a copy of any applicable purchase or lease
agreement and any other information requested by the executive director to
allow the executive director to verify that under the proposed employer change,
the new employer does not qualify as a governmental subdivision under section
353.01, subdivision 6, making the employees ineligible for continued coverage
as active members of the general employees retirement plan of the Public
Employees Retirement Association.
(c)
Following receipt of a resolution and a determination by the executive director
that the new employer is not a governmental subdivision, the executive director
shall direct the consulting actuary retained under section 356.214 to determine
whether the general employees retirement plan of the Public Employees
Retirement Association, if coverage under this chapter is provided, is
expected to receive a net gain or a net loss if privatization occurs,
by determining whether. A net
gain is expected if the actuarial liability of the special benefit coverage
provided under this chapter, if extended to the applicable employees under the
privatization, is less than the actuarial gain otherwise to accrue to the
plan. A net loss is expected if the
actuarial accrued liability of the special benefit coverage provided under this
chapter, if extended to the applicable employees under the privatization, is
more than the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations
used to make this determination must be within one year of the effective date,
as defined in section 353F.02, subdivision 3.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Sec. 19. Minnesota Statutes 2008, section 353F.025,
subdivision 2, is amended to read:
Subd. 2. Recommendation
to legislature. (a) If the actuarial
calculations under subdivision 1, paragraph (c), indicate that a net gain to
the general employees retirement plan of the Public Employees Retirement
Association is expected due to the privatization, or if paragraph (c)
applies, the executive director shall forward a recommendation and
supporting documentation to the chair of the Legislative Commission on Pensions
and Retirement, the chair of the Governmental Operations, Reform, Technology
and Elections Committee of the house of representatives, the chair of the State
and Local Government Operations and Oversight Committee of the senate, and the
executive director of the Legislative Commission on Pensions and
Retirement. The recommendation must be
in the form of an addition to the definition of "medical facility"
under section 353F.02, subdivision 4, or to "other public employing
unit" under section 353F.02, subdivision 5, whichever is applicable. The recommendation must be forwarded to the
legislature before January 15 for the recommendation to be considered in that
year's legislative session. The
recommendation may be included as part of public pension administrative
legislation under section 356B.05.
(b) If a
medical facility or other public employing unit listed under section 353F.02,
subdivision 4 or 5, fails to privatize within one year of the final enactment
date of the legislation adding the entity to the applicable definition, its
inclusion under this chapter is voided, and the executive director shall
include in the subsequent proposed legislation under paragraph (a) a recommendation
that the applicable entity be stricken from the definition.
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(c) If the
calculations under subdivision 1, paragraph (c), indicate a net loss, the
executive director shall forward a recommendation that the privatization be
included as an addition under paragraph (a) if the chief clerical officer of
the applicable governmental subdivision submits a resolution from the governing
body specifying that a lump sum payment will be made to the executive director
equal to the net loss, plus interest. The
interest must be computed using the applicable preretirement interest rate
assumption under section 356.215, subdivision 8, expressed as a monthly rate,
from the date of the actuarial valuation from which the actuarial accrued
liability data was used to determine the net loss in the actuarial study under
subdivision 1, to the date of payment, with annual compounding. Payment must be made on or after the
effective date defined under section 353F.02.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 20. Minnesota Statutes 2008, section 356.96,
subdivision 2, is amended to read:
Subd. 2. Right
to review. A determination made by
the administration chief administrative officer of a covered
pension plan regarding a person's eligibility, benefits, or other rights under
the plan with which the person does not agree is subject to review under this
section.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 21. Minnesota Statutes 2008, section 356.96,
subdivision 3, is amended to read:
Subd. 3. Notice
of determination. If the applicable
chief administrative officer denies an application or a written request,
modifies a benefit, or terminates a benefit of a person claiming a right or
potential rights under a covered pension plan, the chief administrative officer
shall notify that person through a written notice containing:
(1) a statement of the
reasons for the determination;
(2) a notice that the person
may petition the governing board of the covered pension plan for a review of
the determination and that a person's petition for review must be filed in the
administrative office of the covered pension plan within 60 days of the receipt
of the written notice of the determination;
(3) a statement indicating
that a failure to petition for review within 60 days precludes the person from
contesting in any other administrative review or court procedure the issues
determined by the chief administrative officer;
(4) a statement indicating
that all relevant materials, documents, affidavits, and other records that the
person wishes to be reviewed in support of the petition must be filed with and
received in the administrative office of the covered pension plan at least 30
15 days before the date of the hearing under subdivision 10; and
(5) a copy summary
of this section, including all filing requirements and deadlines.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 22. Minnesota Statutes 2009 Supplement, section
356.96, subdivision 5, is amended to read:
Subd. 5. Petition
for review. (a) A person who claims
a right under subdivision 2 may petition for a review of that decision by the
governing board of the covered pension plan.
(b) A petition under this
section must be sent to the chief administrative officer by mail and must be
postmarked no later than 60 days after the person received the notice required
by subdivision 3. The petition must include
the person's statement of the reason or reasons that the person believes the
decision of the chief administrative officer
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should be reversed
or modified. The petition may include
all documentation and written materials that the petitioner deems to be
relevant. In developing a record for
review by the board when a decision is appealed, the executive director chief
administrative officer may direct that the applicant participate in a
fact-finding session conducted by an administrative law judge assigned by the
Office of Administrative Hearings and, as applicable, participate in a
vocational assessment conducted by a qualified rehabilitation counselor on
contract with the applicable retirement system.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 23. Minnesota Statutes 2008, section 356.96,
subdivision 7, is amended to read:
Subd. 7. Notice
of hearing. (a) After receiving a
petition, and not less than 30 calendar days from the date of the next
regular board meeting, the chief administrative officer must schedule a
timely review of the petition before the governing board of the covered pension
plan. The review must be scheduled to
take into consideration any necessary accommodations to allow the petitioner to
participate in the governing board's review.
(b) Not less than 15 30
calendar days before the scheduled hearing date, the chief administrative
officer must provide by mail to the petitioner an acknowledgment of the receipt
of the person's petition and a follow-up notice of the time and place of the
meeting at which the governing board is scheduled to consider the petition and
must provide a copy of all relevant documents, evidence, summaries, and
recommendations assembled by or on behalf of the plan administration to be
considered by the governing board.
(c) Except as provided in
subdivision 8, paragraph (c), All documents and materials that the petitioner
wishes to be part of the record for review must be filed with the chief
administrative officer and must be received in the offices of the covered
pension plan at least 30 15 days before the date of the meeting
at which the petition is scheduled to be heard.
(d) A petitioner, may
request a continuance of a scheduled hearing if the request is received by the
chief administrative officer within ten calendar days of the scheduled date
of the applicable board meeting, may request a continuance on a scheduled
petition. The chief administrative
officer must reschedule the review within 60 days of the date of the
continuance request a reasonable time. Only one continuance may be granted to any
petitioner.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 24. Minnesota Statutes 2008, section 356.96,
subdivision 8, is amended to read:
Subd. 8. Record
for review. (a) All evidence,
including all records, documents, and affidavits in the possession of the
covered pension plan of which the covered pension plan desires to avail itself
and be considered by the governing board, and all evidence which the petitioner
wishes to present to the governing board, including any evidence which would
otherwise be classified by law as "private," must be made part of the
hearing record.
(b) Not later than The
chief administrative officer must provide a copy of the record to each member
of the governing board at least seven days before the scheduled hearing
date, the chief administrative officer must provide a copy of the record to
each member of the governing board.
(c) At least five days
before the hearing, the petitioner may submit to the chief administrative
officer, for submission to the governing board, Any additional document,
affidavit, or other relevant information that was not initially submitted
with the petition the petitioner requests be part of the record may be
admitted with the consent of the governing board.
EFFECTIVE DATE. This section is effective the day following final
enactment.
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Sec. 25. Laws 2009, chapter 169, article 4, section
49, is amended to read:
Sec. 49. CITY
OF DULUTH AND DULUTH AIRPORT AUTHORITY AND CITY OF VIRGINIA; CORRECTING
ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER CONTRIBUTIONS AND ADJUSTING OVERPAID
BENEFITS.
Subdivision
1. Application. Notwithstanding any provisions of Minnesota
Statutes, section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2008,
chapters 353 and 356, to the contrary, this section establishes the procedures
by which the executive director of the Public Employees Retirement Association
shall adjust erroneous employee deductions and employer contributions paid on
behalf of active employees and former members by the city of Duluth and,
by the Duluth Airport Authority, and by the city of Virginia on amounts
determined by the executive director to be invalid salary under Minnesota
Statutes, section 353.01, subdivision 10, reported between January 1, 1997, and
October 23, 2008, and for adjusting benefits that were paid to former members
and their beneficiaries based upon invalid salary amounts.
Subd. 2.
Refunds
of employee deductions. (a) The
executive director shall refund to active employees or former members who are
not receiving retirement annuities or benefits all erroneous employee
deductions identified by the city of Duluth or, by the Duluth
Airport Authority, or by the city of Virginia as deductions taken from
amounts determined to be invalid salary.
The refunds must include interest at the rate specified in Minnesota
Statutes, section 353.34, subdivision 2, from the date each invalid employee deduction
was received through the date each refund is paid.
(b) The
refund payment for active employees must be sent to the applicable
governmental subdivision which must pay the refunded employee deductions plus
interest to the active home addresses of the members who are
employees of the city of Duluth or, who are employees of the
Duluth Airport Authority, or who are employees of the city of Virginia, as
applicable.
(c) Refunds
to former members must be mailed by the executive director of the Public Employees
Retirement Association to the former member's last known address.
Subd. 3. Benefit
adjustments. (a) For a former member
who is receiving a retirement annuity or disability benefit, or for a person
receiving an optional annuity or survivor benefit, the executive director must:
(1) adjust
the annuity or benefit payment to the correct monthly benefit amount payable by
reducing the average salary under Minnesota Statutes, section 353.01,
subdivision 17a, by the invalid salary amounts;
(2) determine
the amount of the overpaid benefits paid from the effective date of the annuity
or benefit payment to the first of the month in which the monthly benefit
amount is corrected;
(3)
calculate the amount of employee deductions taken in error on invalid salary,
including interest at the rate specified in Minnesota Statutes, section 353.34,
subdivision 2, from the date each invalid employee deduction was received
through the date the annuity or benefit is adjusted as provided under clause
(1); and
(4)
determine the net amount of overpaid benefits by reducing the amount of the
overpaid annuity or benefit as determined in clause (2) by the amount of the
erroneous employee deductions with interest as determined in
clause (3).
(b) If a
former member's erroneous employee deductions plus interest determined under
this section exceeds the amount of the person's overpaid benefits, the balance
must be refunded to the person to whom the annuity or benefit is being paid.
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(c) The executive
director shall recover the net amount of all overpaid annuities or benefits as
provided under subdivision 4.
Subd. 4. Employer
credits and obligations. (a) The
executive director shall provide a credit without interest to the city of
Duluth and, to the Duluth Airport Authority, and to the city
of Virginia, as applicable, for the amount of that governmental
subdivision's erroneous employer contributions.
The credit must first be used to offset the net amount of the overpaid
retirement annuities and the disability and survivor benefits that remains
after applying the amount of erroneous employee deductions with interest as
provided under subdivision 3, paragraph (a), clause (4). The remaining erroneous employer
contributions, if any, must be credited against future employer contributions
required to be paid by the applicable governmental subdivision. If the overpaid benefits exceed the employer
contribution credit, the balance of the overpaid benefits is the obligation of
the city of Duluth or, the Duluth Airport Authority, or the
city of Virginia, whichever is applicable.
(b) The Public
Employees Retirement Association board of trustees shall determine the period
of time and manner for the collection of overpaid retirement annuities and
benefits, if any, from the city of Duluth and, the Duluth Airport
Authority, and the city of Virginia.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 26. Laws 2009, chapter 169, article 4, section
49, the effective date, is amended to read:
EFFECTIVE DATE. (a) This section
is effective for the city of Duluth the day after the Duluth city council and
the chief clerical officer of the city of Duluth timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for
members who are, and former members who were, employees of the city
of Duluth.
(b) This
section is effective for the Duluth Airport Authority the day after the Duluth
Airport Authority and the chief clerical officer of the Duluth Airport
Authority timely complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3, for members who are, and former members who
were, employees of the Duluth Airport Authority.
(c) This
section is effective for the city of Virginia the day after the Virginia city
council and the chief clerical officer of the city of Virginia timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and
3, for members who are, and former members who were, employees of the city of
Virginia. If this section becomes
effective for the city of Virginia, it applies retroactively from June 23,
2009.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 27. Laws 2009, chapter 169, article 5, section 2,
the effective date, is amended to read:
EFFECTIVE DATE. This section
is effective the day following final enactment and expires on June 30, 2011
2014. Individuals must not be
appointed to a postretirement option position after that date.
EFFECTIVE DATE. This section
is effective the day following final enactment.
Sec. 28. REPEALER.
(a)
Minnesota Statutes 2008, section 353.01, subdivision 40, is repealed effective
July 1, 2010.
(b)
Minnesota Statutes 2008, sections 353.46, subdivision 1a; and 353D.03,
subdivision 2, are repealed the day following final enactment.
(c)
Minnesota Statutes 2008, section 353D.12, is repealed effective July 1, 2011.
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ARTICLE 6
VOLUNTARY
STATEWIDE LUMP-SUM VOLUNTEER FIREFIGHTER RETIREMENT PLAN
Section
1. Minnesota Statutes 2008, section
69.051, subdivision 3, is amended to read:
Subd. 3. Report
by certain municipalities. (a) Each
municipality which has an organized fire department but which does not have a
firefighters' relief association governed by section 69.77 or sections
69.771 to 69.775 and which is not exempted under paragraph (b) shall
annually prepare a detailed financial report of the receipts and disbursements
by the municipality for fire protection service during the preceding calendar
year, on a form prescribed by the state auditor. The financial report shall must contain
any information which the state auditor deems necessary to disclose the sources
of receipts and the purpose of disbursements for fire protection service. The financial report shall must be
signed by the municipal clerk or clerk-treasurer of the municipality. The financial report shall must be
filed by the municipal clerk or clerk-treasurer with the state auditor on or
before July 1 annually. The state
auditor shall forward one copy to the county auditor of the county wherein the
municipality is located. The
municipality shall not qualify initially to receive, or be entitled
subsequently to retain, state aid pursuant to under this chapter
if the financial reporting requirement or the applicable requirements of this
chapter or any other statute or special law have not been complied with or are
not fulfilled.
(b) Each
municipality that has an organized fire department and provides retirement
coverage to its firefighters through the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G qualifies to have fire state aid
transmitted to and retained in the statewide lump-sum volunteer firefighter
retirement fund without filing a detailed financial report if the executive
director of the Public Employees Retirement Association certifies compliance by
the municipality with the requirements of sections 353G.04 and 353G.08,
paragraph (e), and by the applicable fire chief with the requirements of
section 353G.07.
EFFECTIVE DATE. This section
is effective retroactively from January 1, 2010.
Sec. 2. Minnesota Statutes 2009 Supplement, section
353G.05, subdivision 2, is amended to read:
Subd. 2. Election
of coverage. (a) The process for
electing coverage of volunteer firefighters by the retirement plan is initiated
by a request to the executive director for a cost analysis of the prospective
retirement coverage.
(b) If the
volunteer firefighters are currently covered by a volunteer firefighters'
relief association governed by chapter 424A, the cost analysis of the
prospective retirement coverage must be requested jointly by the secretary of
the volunteer firefighters' relief association, following approval of the
request by the board of the volunteer firefighters' relief association, and the
chief administrative officer of the entity associated with the relief
association, following approval of the request by the governing body of the
entity associated with the relief association.
If the relief association is associated with more than one entity, the
chief administrative officer of each associated entity must execute the
request. If the volunteer firefighters
are not currently covered by a volunteer firefighters' relief association, the
cost analysis of the prospective retirement coverage must be requested by the
chief administrative officer of the entity operating the fire department. The request must be made in writing and must
be made on a form prescribed by the executive director.
(c) The cost
analysis of the prospective retirement coverage by the statewide retirement
plan must be based on the service pension amount under section 353G.11 closest
to the service pension amount provided by the volunteer firefighters' relief
association, if there is one the relief association is a
lump-sum defined benefit plan, or the amount equal to 95 percent of the most
current average account balance per relief association member if the relief
association is a defined contribution plan, or to the lowest service
pension amount under section 353G.11 if there is no volunteer firefighters'
relief association, rounded up, and any other service pension amount designated
by the requester or requesters. The cost
analysis must be prepared using a mathematical procedure certified as accurate
by an approved actuary retained by the Public Employees Retirement Association.
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(d) If a cost
analysis is requested and a volunteer firefighters' relief association exists
that has filed the information required under section 69.051 in a timely
fashion, upon request by the executive director, the state auditor shall
provide the most recent data available on the financial condition of the
volunteer firefighters' relief association, the most recent firefighter
demographic data available, and a copy of the current relief association
bylaws. If a cost analysis is requested,
but no volunteer firefighters' relief association exists, the chief
administrative officer of the entity operating the fire department shall
provide the demographic information on the volunteer firefighters serving as
members of the fire department requested by the executive director.
(e) If a
cost analysis is requested, the executive director of the State Board of
Investment shall review the investment portfolio of the relief association, if applicable,
for compliance with the applicable provisions of chapter 11A and for
appropriateness for retention under the established investment objectives and
investment policies of the State Board of Investment. If the prospective retirement coverage change
is approved under paragraph (f), the State Board of Investment may require that
the relief association liquidate any investment security or other asset which
the executive director of the State Board of Investment has determined to be an
ineligible or inappropriate investment for retention by the State Board of
Investment. The security or asset
liquidation must occur before the effective date of the transfer of retirement
plan coverage. If requested to do so by
the chief administrative officer of the relief association, the executive
director of the State Board of Investment shall provide advice about the best
means to conduct the liquidation.
(f) Upon
receipt of the cost analysis, the governing body of the municipality or
independent nonprofit firefighting corporation associated with the fire
department shall either approve or disapprove the retirement coverage
change within 90 days. If the retirement
coverage change is not acted upon within 90 days, it is deemed to be
disapproved. If the retirement coverage
change is approved by the applicable governing body, coverage by the voluntary
statewide lump-sum volunteer firefighter retirement plan is effective on the
next following January 1.
EFFECTIVE DATE. This section
is effective retroactively from January 1, 2010.
Sec. 3. Minnesota Statutes 2009 Supplement, section
353G.06, subdivision 1, is amended to read:
Subdivision
1. Special
fund disestablishment. (a) On
the date immediately prior to the effective date of the coverage change, the
special fund of the applicable volunteer firefighters' relief association, if
one exists, ceases to exist as a pension fund of the association and legal
title to the assets of the special fund transfers to the State Board of
Investment, with the beneficial title to the assets of the special fund
remaining in the applicable volunteer firefighters.
(b) If the
market value of the special fund of the volunteer firefighters' relief
association for which retirement coverage changed under this chapter declines
in the interval between the date of the most recent financial report or
statement, and the special fund disestablishment date, the applicable
municipality shall transfer an additional amount to the State Board of
Investment equal to that decline. If
more than one municipality is responsible for the direct management of the fire
department, the municipalities shall allocate the additional transfer amount
among the various applicable municipalities one-half in proportion to the
population of each municipality and one-half in proportion to the market value
of each municipality.
EFFECTIVE DATE. This section
is effective retroactively from January 1, 2010.
Sec. 4. Minnesota Statutes 2009 Supplement, section
353G.08, is amended to read:
353G.08 RETIREMENT PLAN FUNDING; DISBURSEMENTS.
Subdivision
1. Annual funding requirements.
(a) Annually, the executive director shall determine the funding
requirements of each account in the voluntary statewide lump-sum volunteer
firefighter retirement plan on or before August 1. The funding requirements as directed under
this section, must be determined using a mathematical
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procedure developed
and certified as accurate by an approved actuary retained by the Public
Employees Retirement Association and based on present value factors using a six
percent interest rate, without any decrement assumptions. The funding requirements must be certified to
the entity or entities associated with the fire department whose active
firefighters are covered by the retirement plan.
(b) The overall funding
balance of each account for the current calendar year must be determined in the
following manner:
(1) The total accrued
liability for all active and deferred members of the account as of December 31
of the current year must be calculated based on the good time service credit of
active and deferred members as of that date.
(2) The total present assets
of the account projected to December 31 of the current year, including receipts
by and disbursements from the account anticipated to occur on or before
December 31, must be calculated. To the
extent possible, the market value of assets must be utilized in making this
calculation.
(3) The amount of the total
present assets calculated under clause (2) must be subtracted from the amount
of the total accrued liability calculated under clause (1). If the amount of total present assets exceeds
the amount of the total accrued liability, then the account is considered to
have a surplus over full funding. If the
amount of the total present assets is less than the amount of the total accrued
liability, then the account is considered to have a deficit from full
funding. If the amount of total present
assets is equal to the amount of the total accrued liability, then the special
fund is considered to be fully funded.
(c) The financial
requirements of each account for the following calendar year must be determined
in the following manner:
(1) The total accrued
liability for all active and deferred members of the account as of December 31
of the calendar year next following the current calendar year must be
calculated based on the good time service used in the calculation under
paragraph (b), clause (1), increased by one year.
(2) The increase in the
total accrued liability of the account for the following calendar year over the
total accrued liability of the account for the current year must be calculated.
(3) The amount of
anticipated future administrative expenses of the account must be calculated by
multiplying the dollar amount of the administrative expenses for the most
recent prior calendar year by the factor of 1.035.
(4) If the account is fully
funded, the financial requirement of the account for the following calendar
year is the total of the amounts calculated under clauses (2) and (3).
(5) If the account has a
deficit from full funding, the financial requirement of the account for the
following calendar year is the total of the amounts calculated under clauses
(2) and (3) plus an amount equal to one-tenth of the amount of the deficit from
full funding of the account.
(6) If the account has a
surplus over full funding, the financial requirement of the account for the
following calendar year is the financial requirement of the account calculated
as though the account was fully funded under clause (4) and, if the account has
also had a surplus over full funding during the prior two years, additionally
reduced by an amount equal to one-tenth of the amount of the surplus over full
funding of the account.
(d) The required
contribution of the entity or entities associated with the fire department
whose active firefighters are covered by the retirement plan is the annual
financial requirements of the account of the retirement plan under paragraph
(c) reduced by the amount of any fire state aid payable under sections 69.011
to 69.051 reasonably anticipated to be received by the retirement plan
attributable to the entity or entities during the following
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calendar year, and
an amount of interest on the assets projected to be received during the
following calendar year calculated at the rate of six percent per annum. The required contribution must be allocated
between the entities if more than one entity is involved. A reasonable amount of anticipated fire state
aid is an amount that does not exceed the fire state aid actually received in
the prior year multiplied by the factor 1.035.
(e) The
required contribution calculated in paragraph (d) must be paid to the
retirement plan on or before December 31 of the year for which it was
calculated. If the contribution is not
received by the retirement plan by December 31, it is payable with interest at
an annual compound rate of six percent from the date due until the date payment
is received by the retirement plan. If
the entity does not pay the full amount of the required contribution, the
executive director shall collect the unpaid amount under section 353.28,
subdivision 6.
Subd. 2. Cash
flow funding requirement. If
the executive director determines that an account in the voluntary statewide
lump-sum volunteer firefighter retirement plan has insufficient assets to meet
the service pensions determined payable from the account, the executive
director shall certify the amount of the potential service pension shortfall to
the municipality or municipalities and the municipality or municipalities shall
make an additional employer contribution to the account within ten days of the
certification. If more than one
municipality is associated with the account, unless the municipalities agree to
a different allocation, the municipalities shall allocate the additional
employer contribution one-half in proportion to the population of each
municipality and one-half in proportion to the market value of the property of
each municipality.
Subd. 3. Authorized
account disbursements. (f)
The assets of the retirement fund may only be disbursed for:
(1) the
administrative expenses of the retirement plan;
(2) the
investment expenses of the retirement fund;
(3) the
service pensions payable under section 353G.10, 353G.11, 353G.14, or 353G.15; and
(4) the
survivor benefits payable under section 353G.12; and
(5) the
disability benefit coverage insurance premiums under section 353G.115.
EFFECTIVE DATE. This
section is effective retroactively from January 1, 2010.
Sec. 5. Minnesota Statutes 2009 Supplement, section
353G.09, subdivision 3, is amended to read:
Subd. 3. Alternative
pension eligibility and computation. (a)
An active member of the retirement plan is entitled to an alternative lump-sum
service pension from the retirement plan if the person:
(1) has
separated from active service with the fire department for at least 30 days;
(2) has
attained the age of at least 50 years or the age for receipt of a service
pension under the benefit plan of the applicable former volunteer firefighters'
relief association as of the date immediately prior to the election of the
retirement coverage change, whichever is later;
(3) has
completed at least five years of active service with the fire department and at
least five years in total as a member of the applicable former volunteer
firefighters' relief association or of the retirement plan, but has not
rendered at least five years of good time service credit as a member of the
retirement plan; and
(4) applies
in a manner prescribed by the executive director for the service pension.
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(b) If
retirement coverage prior to statewide retirement plan coverage was provided by
a defined benefit plan volunteer firefighters relief association, the
alternative lump-sum service pension is the service pension amount specified in
the bylaws of the applicable former volunteer firefighters' relief association
either as of the date immediately prior to the election of the retirement
coverage change or as of the date immediately before the termination of
firefighting services, whichever is earlier, multiplied by the total number of
years of service as a member of that volunteer firefighters' relief association
and as a member of the retirement plan. If
retirement coverage prior to statewide retirement plan coverage was provided by
a defined contribution plan volunteer firefighters relief association, the
alternative lump-sum service pension is an amount equal to the person's account
balance as of the date immediately prior to the date on which statewide
retirement plan coverage was first provided to the person plus six percent
annual compound interest from that date until the date immediately prior to the
date of retirement.
EFFECTIVE DATE. This section is effective retroactively from January
1, 2010.
Sec. 6. Minnesota Statutes 2009 Supplement, section
353G.11, subdivision 1, is amended to read:
Subdivision 1. Levels. The retirement plan provides the
following levels of service pension amounts to be selected at the election of
coverage, or, if fully funded, thereafter:
Level A $500
per year of good time service credit
Level B $750
$600 per year of good time service credit
Level C $700
per year of good time service credit
Level D $800
per year of good time service credit
Level E $900
per year of good time service credit
Level C F $1,000
per year of good time service credit
Level G $1,250
per year of good time service credit
Level D H $1,500
per year of good time service credit
Level E I $2,000
per year of good time service credit
Level F J $2,500
per year of good time service credit
Level G K $3,000
per year of good time service credit
Level H L $3,500
per year of good time service credit
Level I M $4,000
per year of good time service credit
Level J N $4,500
per year of good time service credit
Level K O $5,000
per year of good time service credit
Level L P $5,500
per year of good time service credit
Level M Q $6,000
per year of good time service credit
Level N R $6,500
per year of good time service credit
Level O S $7,000
per year of good time service credit
Level P T $7,500
per year of good time service credit
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 7. Minnesota Statutes 2009 Supplement, section
353G.11, is amended by adding a subdivision to read:
Subd. 1a. Continuation
of prior service pension levels. If
a municipality or independent nonprofit firefighting corporation elects to be
covered by the retirement plan prior to January 1, 2010, and selects the $750
per year of good time service credit service pension amount effective for
January 1, 2010, that level continues for the volunteer firefighters of that
municipality or independent nonprofit firefighting corporation until a
different service pension amount is selected under subdivision 2 after January
1, 2010.
EFFECTIVE DATE. This section is effective July 1, 2010.
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Sec. 8. [353G.115]
DISABILITY BENEFIT COVERAGE; AUTHORITY FOR CASUALTY INSURANCE.
(a) Except as provided in paragraph (b), no disability
benefit is payable from the statewide retirement plan.
(b) If the board approves the arrangement, disability
coverage for statewide retirement plan members may be provided through a group
disability insurance policy obtained from an insurance company licensed to do
business in this state. The voluntary
statewide lump-sum volunteer retirement plan is authorized to pay the premium
for the disability insurance authorized by this paragraph. The proportional amount of the total annual
disability insurance premium must be added to the required contribution amount
determined under section 353G.08.
EFFECTIVE
DATE. This section is effective
retroactively from January 1, 2010.
Sec. 9.
Minnesota Statutes 2009 Supplement, section 424A.08, is amended to read:
424A.08
MUNICIPALITY WITHOUT RELIEF ASSOCIATION; AUTHORIZED DISBURSEMENTS.
(a) Any qualified municipality which is entitled to
receive fire state aid but which has no volunteer firefighters' relief
association directly associated with its fire department and which has no
full-time firefighters with retirement coverage by the public employees police
and fire retirement plan shall deposit the fire state aid in a special account
established for that purpose in the municipal treasury. Disbursement from the special account may not
be made for any purpose except:
(1) payment of the fees, dues and assessments to the
Minnesota State Fire Department Association and to the state Volunteer
Firefighters' Benefit Association in order to entitle its firefighters to
membership in and the benefits of these state associations;
(2) payment of the cost of purchasing and maintaining
needed equipment for the fire department; and
(3) payment of the cost of construction, acquisition,
repair, or maintenance of buildings or other premises to house the equipment of
the fire department.
(b) A qualified municipality which is entitled to
receive fire state aid, which has no volunteer firefighters' relief association
directly associated with its fire department, which does not participate in
the voluntary statewide lump-sum volunteer firefighter retirement plan under
chapter 353G, and which has full-time firefighters with retirement coverage
by the public employees police and fire retirement plan may disburse the fire
state aid as provided in paragraph (a), for the payment of the employer
contribution requirement with respect to firefighters covered by the public
employees police and fire retirement plan under section 353.65, subdivision 3,
or for a combination of the two types of disbursements.
(c) A municipality that has no volunteer firefighters'
relief association directly associated with it and that participates in the
voluntary statewide lump-sum volunteer firefighter retirement plan under
chapter 353G shall transmit any fire state aid that it receives to the
voluntary statewide lump-sum volunteer firefighter retirement fund.
EFFECTIVE
DATE. This section is effective
retroactively from January 1, 2010.
ARTICLE 7
TEACHERS RETIREMENT ASSOCIATION SERVICE CREDIT
PROCEDURE REVISIONS
Section 1.
Minnesota Statutes 2008, section 354.05, is amended by adding a
subdivision to read:
Subd. 41.
Annual base salary. (a) "Annual base salary"
means:
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(1) for an
independent school district or educational cooperative, the lowest full-time
Bachelor of Arts (BA) base contract salary for the previous fiscal year for
that employing unit;
(2) for a charter school, the lowest starting annual
salary for a full-time licensed teacher employed during the previous fiscal
year for that employing unit; and
(3) for a state agency or professional organization,
the lowest starting annual salary for a full-time Teachers Retirement
Association covered position for the previous fiscal year for that employing
unit.
(b) If there is no previous fiscal year data because
an employer unit is new and paragraph (c) does not apply, the annual base
salary for the first year of operation will be as provided in paragraph (a),
except that the base contract salary for the current fiscal year, rather than
the previous fiscal year, must be used.
(c) For a new employer unit created as a result of a merger
or consolidation, the annual base salary must be the lowest annual base salary
as specified in paragraph (a) for any of the employer units involved in the
merger or consolidation.
EFFECTIVE
DATE. This section is effective July 1,
2012.
Sec. 2. Minnesota
Statutes 2008, section 354.07, subdivision 5, is amended to read:
Subd. 5. Records; accounts; interest. The board shall keep a record of the
receipts and disbursements of the fund and a separate account with each member
of the association. The board shall also
keep separate accounts for annuity payments, for employer contributions and all
other necessary accounts and reserves.
It shall determine annually the annual interest earnings of the fund
which shall include realized capital gains and losses. Any amount in the capital reserve account on
July 1, 1973, shall be transferred to the employer contribution's
account. The annual interest earnings
shall be apportioned and credited to the separate members' accounts except
those covered under the provisions of section 354.44, subdivision 6 or 7. The rate to be used in this distribution
computed to the last full quarter percent shall be determined by dividing the
interest earnings by the total invested assets of the fund. The excess of the annual interest earnings in
the excess earnings reserve which was not credited to the various accounts
shall be credited to the gross interest earnings for the next succeeding
year.
Sec. 3.
Minnesota Statutes 2008, section 354.091, is amended to read:
354.091
SERVICE CREDIT.
Subdivision 1.
Definition; monthly base
salary. For purposes of this
section, "monthly base salary" means the annual base salary, as
defined in section 354.05, subdivision 41, divided by 12.
Subd. 2.
Service credit annual limit. (a) In computing service credit,
No teacher may receive credit for more than one year of teaching service for
any fiscal year. Additionally, in
crediting allowable service:
(1) if a teacher teaches less than five hours in a
day, service credit must be given for the fractional part of the day as the
term of service performed bears to five hours;
(2) if a teacher teaches five or more hours in a day,
service credit must be given for only one day;
(3) if a teacher teaches at least 170 full days in any
fiscal year, service credit must be given for a full year of teaching service;
and
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(4) if a teacher
teaches for only a fractional part of the year, service credit must be given
for such fractional part of the year in the same relationship as the period of
service performed bears to 170 days.
(b) A teacher must receive a
full year of service credit based on the number of days in the employer's full
school year if that school year is less than 170 days. Teaching service performed before July 1,
1961, must be computed under the law in effect at the time it was performed.
(c) A teacher must not lose
or gain retirement service credit as a result of the employer converting to a
flexible or alternate work schedule. If
the employer converts to a flexible or alternate work schedule, the forms for
reporting teaching service and the procedures for determining service credit
must be determined by the executive director with the approval of the board of
trustees.
Subd. 3. Service
credit calculation. (a)
Except as specified in subdivisions 4 and 5, service credit must be calculated
monthly by dividing the teacher's monthly salary by the monthly base salary for
the teacher's employing unit and multiplying the result by 11.1 percent.
(b) For purposes of
computing service credit, salary must be allocated to each calendar month based
on the pay period begin and end dates.
If the pay period covers more than one calendar month, the salary must
be allocated based on the number of days in each calendar month.
(c) A teacher may not
receive more than 11.1 percent of a year's service credit in a calendar month.
(d) Annual service credit
must be calculated by adding the allowable monthly service credit for all 12
months of the fiscal year, with the result rounded to two decimal places,
subject to the annual limit specified in subdivision 2.
Subd. 4. Service
credit determination for Minnesota State Colleges and Universities system
teachers. (d) For all
services rendered on or after July 1, 2003, service credit for all members
employed by the Minnesota State Colleges and Universities system must be
determined:
(1) for full-time employees,
by the definition of full-time employment contained in the collective
bargaining agreement for those units listed in section 179A.10, subdivision 2,
or contained in the applicable personnel or salary plan for those positions
designated in section 179A.10, subdivision 1; and
(2) for part-time employees,
by the appropriate proration of full-time equivalency based on the provisions
contained in the collective bargaining agreement for those units listed in
section 179A.10, subdivision 2, or contained in the applicable personnel or
salary plan for those positions designated in section 179A.10, subdivision 1,
and the applicable procedures of the Minnesota State Colleges and Universities
system; and.
(3) in no case may a member
receive more than one year of service credit for any fiscal year.
Subd. 5. Service
credit procedure, nontraditional schedules.
For employer units that have nontraditional work schedules or pay
schedules, the procedure for determining service credit must be specified by
the executive director with the approval of the board of trustees.
EFFECTIVE DATE. This section is effective for teaching service
performed after June 30, 2012.
Sec. 4. Minnesota Statutes 2009 Supplement, section
354.52, subdivision 4b, is amended to read:
Subd. 4b. Payroll
cycle reporting requirements. An
employing unit shall provide the following data to the association for payroll
warrants on an ongoing basis within 14 calendar days after the date of the
payroll warrant in a format prescribed by the executive director:
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(1) association
member number;
(2) employer-assigned employee number;
(3) Social Security number;
(4) amount of each salary deduction;
(5) amount of salary as defined in section 354.05,
subdivision 35, from which each deduction was made;
(6) reason for payment;
(7) service credit;
(8) (7) the beginning and
ending dates of the payroll period covered and the date of actual payment;
(9) (8) fiscal year of salary
earnings;
(10) (9) total remittance amount
including employee, employer, and additional employer contributions;
(11) (10) reemployed annuitant
salary under section 354.44, subdivision 5; and
(12) (11) other information as
may be required by the executive director.
EFFECTIVE
DATE. This section is effective July 1,
2012.
Sec. 5. Minnesota
Statutes 2008, section 354.52, is amended by adding a subdivision to read:
Subd. 4d.
Annual base salary reporting. An employing unit must provide the
following data to the association on or before June 30 of each fiscal year:
(1) annual base salary, as defined in section 354.05,
subdivision 41; and
(2) beginning and ending dates for the regular school
work year.
EFFECTIVE
DATE. This section is effective July 1,
2011.
Sec. 6.
Minnesota Statutes 2008, section 354.52, subdivision 6, is amended to
read:
Subd. 6. Noncompliance consequences. (a) An employing unit that does
not comply with the reporting requirements under subdivision 2a, 4a, or
4b, or 4d, must pay a fine of $5 per calendar day until the association
receives the required data.
(b) If the annual base salary required to be reported
under subdivision 4d has not been settled or determined as of June 16, the fine
commences if the annual base salary has not been reported to the association
within 14 days following the settlement date.
EFFECTIVE
DATE. This section is effective July 1,
2011.
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Sec. 7. Minnesota Statutes 2008, section 354.66,
subdivision 3, is amended to read:
Subd. 3. Part-time teaching position, defined. (a) For purposes of this section, the
term "part-time teaching position" means a teaching position within
the district in which the teacher is employed for at least 50 full days or a
fractional equivalent thereof as prescribed in section 354.091, and for which
the teacher is compensated in for an amount of at least 30
percent, but not exceeding 80 percent of the compensation established by
the board for a full-time teacher with identical education and experience with
the employing unit.
(b) For a teacher to which subdivision 1c, paragraph
(b), applies, the term "part-time teaching position" means a teaching
position within the district in which the teacher is employed for at least
25 full days or a fractional equivalent thereof as prescribed in section
354.091, and for which the teacher is compensated in for an
amount of at least 15 percent, but not exceeding 40 percent of the
compensation established by the board for a full-time teacher, with identical
education and experience with the employing unit.
EFFECTIVE
DATE. This section is effective for
service provided after June 30, 2012.
ARTICLE 8
MNSCU IRAP ADMINISTRATIVE PROVISIONS
Section 1.
Minnesota Statutes 2008, section 11A.04, is amended to read:
11A.04
DUTIES AND POWERS.
The state board shall:
(1) Act as trustees for each fund for which it invests
or manages money in accordance with the standard of care set forth in section
11A.09 if state assets are involved and in accordance with chapter 356A if
pension assets are involved.
(2) Formulate policies and procedures deemed necessary
and appropriate to carry out its functions.
Procedures adopted by the board must allow fund beneficiaries and
members of the public to become informed of proposed board actions. Procedures and policies of the board are not
subject to the Administrative Procedure Act.
(3) Employ an executive director as provided in
section 11A.07.
(4) Employ investment advisors and consultants as it
deems necessary.
(5) Prescribe policies concerning personal investments
of all employees of the board to prevent conflicts of interest.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory
committees subject to section 15.059 to assist the board in carrying out its
duties.
(8) Not permit state funds to be used for the
underwriting or direct purchase of municipal securities from the issuer or the
issuer's agent.
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(9) Direct the
commissioner of management and budget to sell property other than money that
has escheated to the state when the board determines that sale of the property
is in the best interest of the state.
Escheated property must be sold to the highest bidder in the manner and
upon terms and conditions prescribed by the board.
(10) Undertake any other
activities necessary to implement the duties and powers set forth in this
section.
(11) Establish a formula or
formulas to measure management performance and return on investment. Public pension funds in the state shall
utilize the formula or formulas developed by the state board.
(12) Except as otherwise
provided in article XI, section 8, of the Constitution of the state of
Minnesota, employ, at its discretion, qualified private firms to invest and
manage the assets of funds over which the state board has investment management
responsibility. There is annually
appropriated to the state board, from the assets of the funds for which the
state board utilizes a private investment manager, sums sufficient to pay the
costs of employing private firms. Each
year, by January 15, the board shall report to the governor and legislature on
the cost and the investment performance of each investment manager employed by
the board.
(13) Adopt an investment
policy statement that includes investment objectives, asset allocation, and the
investment management structure for the retirement fund assets under its
control. The statement may be revised at
the discretion of the state board. The
state board shall seek the advice of the council regarding its investment
policy statement. Adoption of the
statement is not subject to chapter 14.
(14) Adopt a compensation
plan setting the terms and conditions of employment for unclassified board
employees who are not covered by a collective bargaining agreement.
(15) Contract, as necessary,
with the board of trustees of the Minnesota State Universities and Colleges
System for the provision of investment review and selection services under
section 354B.25, subdivision 3, and arrange for the receipt of payment for
those services.
There is annually
appropriated to the state board, from the assets of the funds for which the
state board provides investment services, sums sufficient to pay the costs of
all necessary expenses for the administration of the board. These sums will be deposited in the State
Board of Investment operating account, which must be established by the
commissioner of management and budget.
Sec. 2. Minnesota Statutes 2008, section 354B.25,
subdivision 1, is amended to read:
Subdivision 1. General
governance. The individual
retirement account plan is the administrative responsibility of the Board of
Trustees of the Minnesota State Colleges and Universities. The Board of Trustees of the Minnesota State
Colleges and Universities may administer the plan directly or may contract out
for administrative services with a qualified third-party plan administrative
entity and may contract out for investment review and selection service.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 3. Minnesota Statutes 2008, section 354B.25,
subdivision 3, is amended to read:
Subd. 3. Selection
of financial institutions. (a) The
investment options provided under subdivision 2 must be selected by the
board. The board may contract with the
State Board of Investment or with a third party to provide the investment
review and selection services. The board
must not contract with a third party to provide the investment option review
and selection services if the third party markets, offers, or has other
material interest in investment products.
The board must require any third party contracted to provide investment
review and selection services to disclose to the board any contracts for
services and any financial relationships it has with vendors under
consideration to provide investment products under the plan.
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In making its
selection, at a minimum, the State board of Investment shall
consider the following:
(1) the experience and ability of the financial
institution to provide benefits and products that are suited to meet the needs
of plan participants;
(2) the relationship of those benefits and products
provided by the financial institution to their cost;
(3) the financial strength and stability of the
financial institution; and
(4) the fees and expenses associated with the investment
products in comparison to other products of similar risk and rates of return.
(b) After selecting a financial institution, the State
board of Investment must periodically review each financial institution
and the offered products. The periodic
review must occur at least every three years.
In making its review, the State board of Investment may
retain appropriate consulting services to assist it in its periodic review,
establish a budget for the cost of the periodic review process, and charge a
proportional share of these costs to the reviewed financial institution.
(c) Contracts with financial institutions under this
section must be executed by the board and must be approved by the State
Board of Investment before execution.
(d) The State Board of Investment shall also establish
policies and procedures under section 11A.04, clause (2), to carry out the
provisions of this subdivision.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 4.
Minnesota Statutes 2008, section 354C.14, is amended to read:
354C.14
INVESTMENT OF DEDUCTIONS AND CONTRIBUTIONS.
(a) The Board of Trustees of the Minnesota State
Colleges and Universities shall invest the deductions and contributions under
section 354C.12, after deduction of administrative expenses under section
354C.12, subdivision 4, in annuity contracts or custodial accounts from
financial institutions selected by the State Board of Investment under
section 354B.25, subdivision 3.
(b) The retirement contributions and death benefits
provided by annuity contracts or custodial accounts purchased by the Board of
Trustees of the Minnesota State Colleges and Universities are owned by the
supplemental retirement plan and must be paid in accordance with those annuity
contracts or custodial account agreements.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 5. REPEALER.
Minnesota Statutes 2008, section 354C.15, is repealed.
EFFECTIVE
DATE. This section is effective the day following
final enactment.
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ARTICLE 9
ACTUARIAL VALUATION REPORTING DEADLINE DATES
Section 1.
Minnesota Statutes 2008, section 356.215, subdivision 3, is amended to
read:
Subd. 3. Reports.
(a) The actuarial valuations required annually must be made as of
the beginning of each fiscal year.
(b) Two copies of the completed valuation must be
delivered to the executive director of the Legislative Commission on Pensions
and Retirement, to the commissioner of management and budget, and to the
Legislative Reference Library. The
copies of the actuarial valuation must be filed with the executive director of
the Legislative Commission on Pensions and Retirement, the commissioner of
management and budget, and the Legislative Reference Library no later than the
last day of the sixth month occurring after the end of the previous fiscal
year.
(c) Two copies of a quadrennial experience study must
be filed with the executive director of the Legislative Commission on Pensions
and Retirement, with the commissioner of management and budget, and with the
Legislative Reference Library, not later than the first last day
of the 11th 12th month occurring after the end of the last fiscal
year of the four-year period which the experience study covers.
(d) For actuarial valuations and experience studies
prepared at the direction of the Legislative Commission on Pensions and Retirement,
two copies one copy of the document must be delivered to the
governing or managing board or administrative officials of the applicable
public pension and retirement fund or plan.
EFFECTIVE
DATE. This section is effective July 1,
2010.
ARTICLE 10
EARLY RETIREMENT INCENTIVE MODIFICATIONS
Section 1.
Minnesota Statutes 2008, section 356.351, subdivision 1, is amended to
read:
Subdivision 1. Eligibility. (a) An eligible appointing authority may
offer the early retirement incentive in this section to an employee who:
(1) has at least 15 years of allowable service in
one or more of the funds listed in section 356.30, subdivision 3, or has at
least 15 years of coverage by the individual retirement account plan governed
by chapter 354B employment as indicated in the personnel records of the
applicable employing unit and upon retirement is immediately eligible for a
retirement annuity or benefit from one or more of these funds
retirement plan governed by chapter 354B, or section 356.30;
(2) terminates service after the effective date of
this section, and before July 15, 2009 October 1, 2012; and
(3) is not in receipt of a public retirement plan
retirement annuity, retirement allowance, or service pension during the month
preceding the termination of qualified employment.; and
(4) has not been eligible to receive a retirement
annuity for a period longer than ten years.
(b) An eligible appointing authority is any Minnesota
governmental employing unit which employs one or more employees with retirement
coverage by a retirement plan listed in section 356.30 by virtue of that
employment.
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(c) An elected
official is not eligible to receive an incentive under this section.
(d) Employees of the Minnesota State Colleges and
Universities System who participate in the incentive program under section
136F.481 are not eligible for the incentive under this section.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 2.
Minnesota Statutes 2009 Supplement, section 356.351, subdivision 2, is
amended to read:
Subd. 2. Incentive.
(a) For an employee who is eligible under subdivision 1, if
for whom an early retirement incentive is approved under paragraph (b), and
who terminates employment as provided for in the agreement, the employer
may provide an amount up to $17,000, to an employee who terminates service,
to:
(1) a severance amount in lieu of and not to exceed the
maximum amount of regular state-provided unemployment compensation for that
particular person if the person had been laid off; and
(2) an additional severance amount not to exceed the
amount of the employer's contribution for health insurance, dental insurance,
and basic life insurance that would have been payable to the particular person
under the applicable collective bargaining agreement or personnel policy at the
time of termination.
(b) The severance amounts under paragraph (a) must be
used:
(1) unless the appointing authority has designated the
use under clause (2) or the use under clause (3) for the initial retirement
incentive applicable to that employing entity under Laws 2007, chapter 134,
after May 26, 2007, for deposit in the employee's account in the health care
savings plan established by section 352.98;
(2) notwithstanding section 352.01, subdivision 11, or
354.05, subdivision 13, whichever applies, if the appointing authority has
designated the use under this clause for the initial retirement incentive
applicable to that employing entity under Laws 2007, chapter 134, after May 26,
2007, for purchase of service credit for unperformed service sufficient to
enable the employee to retire under section 352.116, subdivision 1, paragraph
(b); 353.30; 354.44, subdivision 6, paragraph (b), or 354A.31, subdivision 6,
paragraph (b), whichever applies; or
(3) if the appointing authority has designated the use under
this clause for the initial retirement incentive applicable to the employing
entity under Laws 2007, chapter 134, after May 26, 2007, for purchase of a
lifetime annuity or an annuity for a specific number of years from the
applicable retirement plan to provide additional benefits, as provided in
paragraph (d).
(b) (c) Approval to provide the incentive must be
obtained from the commissioner of finance if the eligible employee is a state
employee and must be obtained from the applicable governing board with respect
to any other employing entity. An
employee is eligible for the payment under paragraph (a) (b),
clause (2), if the employee uses money from a deferred compensation account
that, combined with the payment under paragraph (a) (b), clause
(2), would be sufficient to purchase enough service credit to qualify for
retirement under section 352.116, subdivision 1, paragraph (b); 353.30,
subdivision 1a; 354.44, subdivision 6, paragraph (b), or 354A.31, subdivision
6, paragraph (b), whichever applies.
(c) (d) The cost to purchase service credit under
paragraph (a) (b), clause (2), must be made in accordance with
section 356.551.
(d) The (e) An annuity purchase
under paragraph (a) (b), clause (3), must be made using annuity
factors, as determined by the actuary retained under section 356.214, derived
from the applicable factors used by the applicable retirement plan to calculate
optional annuity forms. The purchased
annuity must be the actuarial equivalent of the incentive amount.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
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Sec. 3. Laws 2006, chapter 271, article 3, section
43, as amended by Laws 2007, chapter 134, article 11, section 11, the
effective date, is amended to read:
EFFECTIVE
DATE. (a) This
section is effective the day following final enactment.
(b) This section expires on July 15, 2009.
EFFECTIVE DATE. This section
is effective retroactively from July 2, 2009.
ARTICLE 11
OPTIONAL ANNUITY REVOCATION FOLLOWING CERTAIN MARRIAGE
DISSOLUTIONS
Section 1. [356.48] REVOCATION OF OPTIONAL ANNUITY
DUE TO MARRIAGE DISSOLUTION OR ANNULMENT.
Subdivision 1.
Covered plans. This section applies to the following
retirement plans:
(1) the general state employees retirement plan of the
Minnesota State Retirement System established under chapter 352;
(2) the correctional state employees retirement plan of
the Minnesota State Retirement System established under chapter 352;
(3) the State Patrol retirement plan established under
chapter 352B;
(4) the unclassified state employees retirement program
of the Minnesota State Retirement System established under chapter 352D;
(5) the general employee retirement plan of the Public
Employees Retirement Association established under chapter 353;
(6) the public employees police and fire retirement
plan established under chapter 353;
(7) the local government correctional employees
retirement plan of the Public Employees Retirement Association established
under chapter 353E;
(8) the Teachers Retirement Association established
under chapter 354; and
(9) the uniform judicial retirement plan established
under chapter 490.
Subd. 2.
Treatment. (a) The treatment specified in this
section applies if, after the accrual date of an annuity or benefit from an
applicable plan or plans, a marriage dissolution decree or annulment decree is
rendered that specifies that the designation of an optional annuity must be
revoked and if the other requirements specified in this section
are satisfied.
(b) Notwithstanding any law to the contrary, if the
applicable pension plan or plans have provisions of law that revise the monthly
benefit amount payable to the primary annuitant upon the death of the
individual named as the optional joint annuitant, the monthly benefit amount
must be recomputed as though the individual that had been named as the optional
joint annuitant died on the date a certified copy of the marriage dissolution
or annulment decree is received by the chief administrative officer. Payment of any benefit adjustment under this
section is prospective only.
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Subd. 3. Restrictions. (a) This section does not apply if the
marriage dissolution decree or annulment decree is not consistent with the requirements
under section 518.58.
(b) The pension plan benefit recipient must not
designate, and the court may not require that the member designate, a
subsequent optional annuity beneficiary.
(c) This section does not apply if more than one surviving
individual was named as an optional joint annuitant.
Subd. 4.
Submission of documentation. To receive the treatment provided in
this section, an eligible retiree or disabilitant must provide, to the chief
administrative officer of the applicable pension plan, a certified copy of the
marriage dissolution or annulment decree.
The retiree or disabilitant and the joint annuitant must also submit a
form, prescribed by the chief administrative officer of the applicable pension
plan and signed by both individuals, requesting the annuity bounce back as
provided in subdivision 2. The
individuals must also provide any other documentation the chief administrative
officer may request.
EFFECTIVE
DATE. This section is effective the day
following final enactment and applies retroactively to any marriage dissolution
decree or annulment decree requiring the revocation of an optional annuity form
granted at any time prior to the date of enactment.
Sec. 2.
Minnesota Statutes 2008, section 518.58, subdivision 3, is amended to
read:
Subd. 3. Sale or distribution while proceeding
pending. (a) If the court finds that
it is necessary to preserve the marital assets of the parties, the court may
order the sale of the homestead of the parties or the sale of other marital
assets, as the individual circumstances may require, during the pendency of a
proceeding for a dissolution of marriage or an annulment. If the court orders a sale, it may further
provide for the disposition of the funds received from the sale during the
pendency of the proceeding. If liquid
or readily liquidated marital property other than property representing vested
pension benefits or rights is available, the court, so far as possible, shall
divide the property representing vested pension benefits or rights by the
disposition of an equivalent amount of the liquid or readily liquidated
property.
(b) The court may order a partial distribution of
marital assets during the pendency of a proceeding for a dissolution of
marriage or an annulment for good cause shown or upon the request of both
parties, provided that the court shall fully protect the interests of the other
party.
EFFECTIVE
DATE. This section is effective the day
following final enactment.
Sec. 3.
Minnesota Statutes 2008, section 518.58, subdivision 4, is amended to
read:
Subd. 4. Pension plans. (a) The division of marital property that
represents pension plan benefits or rights in the form of future pension plan
payments:
(1) is payable only to the extent of the amount of the
pension plan benefit payable under the terms of the plan;
(2) is not payable for a period that exceeds the time
that pension plan benefits are payable to the pension plan benefit recipient;
(3) is not payable in a lump-sum amount from defined
benefit pension plan assets attributable in any fashion to a spouse with the
status of an active member, deferred retiree, or benefit recipient of a pension
plan;
(4) if the former spouse to whom the payments are to be
made dies prior to the end of the specified payment period with the right to
any remaining payments accruing to an estate or to more than one survivor, is
payable only to a trustee on behalf of the estate or the group of survivors for
subsequent apportionment by the trustee; and
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(5) in the case of
defined benefit public pension plan benefits or rights, may not commence until
the public plan member submits a valid application for a public pension plan
benefit and the benefit becomes payable.
(b) The individual retirement account plans established
under chapter 354B may provide in its plan document, if published and made
generally available, for an alternative marital property division or
distribution of individual retirement account plan assets. If an alternative division or distribution
procedure is provided, it applies in place of paragraph (a), clause (5).
(c) If liquid or readily liquidated marital property
other than property representing vested pension benefits or rights is
available, the court, so far as possible, shall divide the property
representing vested pension benefits or rights by the disposition of an
equivalent amount of the liquid or readily liquidated property.
(d) If sufficient liquid or readily liquidated marital
property other than property representing vested pension benefits or rights is
not available, the court may order the revocation of the designation of an
optional annuity beneficiary in pension plans specified in section 356.48 or in
any other pension plan in which plan-governing law or governing documents allow
revocation of an optional annuity in marital dissolution or annulment
situations.
EFFECTIVE
DATE. (a) This section is effective the
day following final enactment.
(b) This section applies retroactively, for plans
specified in section 365.48, to any marriage dissolution decree or annulment
decree requiring the revocation of an optional annuity form granted at any time
prior to the date of enactment.
ARTICLE 12
ADMINISTRATIVE CONSOLIDATION OF THE MINNEAPOLIS
EMPLOYEES
RETIREMENT FUND INTO THE PUBLIC EMPLOYEES RETIREMENT
ASSOCIATION
Section 1.
Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, is
amended to read:
Subd. 2a. Included employees. (a) Public employees whose salary from
employment in one or more positions within one governmental subdivision exceeds
$425 in any month shall participate as members of the association. If the salary is less than $425 in a
subsequent month, the employee retains membership eligibility. Eligible public employees shall participate
as members of the association with retirement coverage by the public general
employees retirement plan or under this chapter, the public
employees police and fire retirement plan under this chapter, or the local
government correctional employees retirement plan under chapter 353E, whichever
applies, as a condition of their employment on the first day of employment
unless they:
(1) are specifically excluded under subdivision 2b;
(2) do not exercise their option to elect retirement
coverage in the association as provided in subdivision 2d, paragraph (a); or
(3) are employees of the governmental subdivisions
listed in subdivision 2d, paragraph (b), where the governmental subdivision has
not elected to participate as a governmental subdivision covered by the
association.
(b) A public employee who was a member of the association
on June 30, 2002, based on employment that qualified for membership coverage by
the public employees retirement plan or the public employees police and fire
plan under this chapter, or the local government correctional employees
retirement plan under chapter 353E as of June 30, 2002, retains that membership
for the duration of the person's employment in that position or incumbency in
elected office. Except as provided in
subdivision 28, the person shall participate as a member until the employee or
elected official terminates public employment under subdivision 11a or
terminates membership under subdivision 11b.
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(c) Public
employees under paragraph (a) include:
(1) physicians under section 353D.01, subdivision 2,
who do not elect public employees defined contribution plan coverage under
section 353D.02, subdivision 2;
(2) full-time employees of the Dakota County
Agricultural Society; and
(3) employees of the Minneapolis Firefighters Relief
Association or Minneapolis Police Relief Association who are not excluded
employees under subdivision 2b due to coverage by the relief association pension
plan and who elect Public Employee Retirement Association general plan coverage
under Laws 2009, chapter 169, article 12, section 10.
(d) For the purpose of participation in the MERF
division of the general employees retirement plan, public employees include
employees who were members of the former Minneapolis Employees Retirement Fund
on June 29, 2010, and who participate as members of the MERF division of the
association.
Sec. 2.
Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to
read:
Subd. 2b. Excluded employees. The following public employees are not
eligible to participate as members of the association with retirement coverage
by the public general employees retirement plan, the local
government correctional employees retirement plan under chapter 353E, or the
public employees police and fire retirement plan:
(1) public officers, other than county sheriffs, who
are elected to a governing body, or persons who are appointed to fill a vacancy
in an elective office of a governing body, whose term of office commences on or
after July 1, 2002, for the service to be rendered in that elective position;
(2) election officers or election judges;
(3) patient and inmate personnel who perform services
for a governmental subdivision;
(4) except as otherwise specified in subdivision 12a,
employees who are hired for a temporary position as defined under subdivision
12a, and employees who resign from a nontemporary position and accept a
temporary position within 30 days in the same governmental subdivision;
(5) employees who are employed by reason of work
emergency caused by fire, flood, storm, or similar disaster;
(6) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of and to
contribute to any of the plans or funds administered by the Minnesota State
Retirement System, the Teachers Retirement Association, the Duluth Teachers
Retirement Fund Association, the St. Paul Teachers Retirement Fund
Association, the Minneapolis Employees Retirement Fund, or any police or
firefighters relief association governed by section 69.77 that has not
consolidated with the Public Employees Retirement Association, or any local
police or firefighters consolidation account who have not elected the type of
benefit coverage provided by the public employees police and fire fund under
sections 353A.01 to 353A.10, or any persons covered by section 353.665,
subdivision 4, 5, or 6, who have not elected public employees police and fire
plan benefit coverage. This clause must
not be construed to prevent a person from being a member of and contributing to
the Public Employees Retirement Association and also belonging to and
contributing to another public pension plan or fund for other service occurring
during the same period of time. A person
who meets the definition of "public employee" in subdivision 2 by
virtue of other service occurring during the same period of time becomes a
member of the association unless contributions are made to another public retirement
fund on the salary based on the other service or to the Teachers Retirement
Association by a teacher as defined in section 354.05, subdivision 2;
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(7) persons who are
members of a religious order and are excluded from coverage under the federal
Old Age, Survivors, Disability, and Health Insurance Program for the
performance of service as specified in United States Code, title 42, section
410(a)(8)(A), as amended through January 1, 1987, if no irrevocable election of
coverage has been made under section 3121(r) of the Internal Revenue Code of
1954, as amended;
(8) employees of a governmental subdivision who have
not reached the age of 23 and are enrolled on a full-time basis to attend or
are attending classes on a full-time basis at an accredited school, college, or
university in an undergraduate, graduate, or professional-technical program, or
a public or charter high school;
(9) resident physicians, medical interns, and
pharmacist residents and pharmacist interns who are serving in a degree or
residency program in public hospitals or clinics;
(10) students who are serving in an internship or
residency program sponsored by an accredited educational institution;
(11) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service in a technical
college;
(12) except for employees of Hennepin County or
Hennepin Healthcare System, Inc., foreign citizens working for a governmental
subdivision with a work permit of less than three years, or an H-1b visa valid
for less than three years of employment.
Upon notice to the association that the work permit or visa extends
beyond the three-year period, the foreign citizens must be reported for
membership from the date of the extension;
(13) public hospital employees who elected not to
participate as members of the association before 1972 and who did not elect to
participate from July 1, 1988, to October 1, 1988;
(14) except as provided in section 353.86, volunteer
ambulance service personnel, as defined in subdivision 35, but persons who
serve as volunteer ambulance service personnel may still qualify as public
employees under subdivision 2 and may be members of the Public Employees
Retirement Association and participants in the public general
employees retirement fund or the public employees police and fire fund,
whichever applies, on the basis of compensation received from public employment
service other than service as volunteer ambulance service personnel;
(15) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in activities undertaken
as part of volunteer firefighter duties; provided that a person who is a
volunteer firefighter may still qualify as a public employee under subdivision
2 and may be a member of the Public Employees Retirement Association and a
participant in the public general employees retirement fund or
the public employees police and fire fund, whichever applies, on the basis of
compensation received from public employment activities other than those as a
volunteer firefighter;
(16) pipefitters and associated trades personnel
employed by Independent School District No. 625, St. Paul, with
coverage under a collective bargaining agreement by the pipefitters local 455
pension plan who were either first employed after May 1, 1997, or, if first
employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
241, article 2, section 12;
(17) electrical workers, plumbers, carpenters, and
associated trades personnel employed by Independent School District
No. 625, St. Paul, or the city of St. Paul, who have retirement
coverage under a collective bargaining agreement by the Electrical Workers
Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
or the Carpenters Local 87 pension plan who were either first employed after
May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded
under Laws 2000, chapter 461, article 7, section 5;
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(18) bricklayers,
allied craftworkers, cement masons, glaziers, glassworkers, painters, allied
tradesworkers, and plasterers employed by the city of St. Paul or
Independent School District No. 625, St. Paul, with coverage under a
collective bargaining agreement by the Bricklayers and Allied Craftworkers
Local 1 pension plan, the Cement Masons Local 633 pension plan, the Glaziers
and Glassworkers Local L-1324 pension plan, the Painters and Allied Trades
Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension plan who
were either first employed after May 1, 2001, or if first employed before May
2, 2001, elected to be excluded under Laws 2001, First Special Session chapter
10, article 10, section 6;
(19) plumbers employed by
the Metropolitan Airports Commission, with coverage under a collective
bargaining agreement by the Plumbers Local 34 pension plan, who either were
first employed after May 1, 2001, or if first employed before May 2, 2001,
elected to be excluded under Laws 2001, First Special Session chapter 10,
article 10, section 6;
(20) employees who are hired
after June 30, 2002, to fill seasonal positions under subdivision 12b which are
limited in duration by the employer to 185 consecutive calendar days or less in
each year of employment with the governmental subdivision;
(21) persons who are
provided supported employment or work-study positions by a governmental
subdivision and who participate in an employment or industries program
maintained for the benefit of these persons where the governmental subdivision
limits the position's duration to three years or less, including persons
participating in a federal or state subsidized on-the-job training, work
experience, senior citizen, youth, or unemployment relief program where the
training or work experience is not provided as a part of, or for, future
permanent public employment;
(22) independent contractors
and the employees of independent contractors; and
(23) reemployed annuitants
of the association during the course of that reemployment.
Sec. 3. Minnesota Statutes 2008, section 353.01, is
amended by adding a subdivision to read:
Subd. 47. MERF
division. "MERF
division" means the separate retirement plan within the general employees
retirement plan of the Public Employees Retirement Association containing the
applicable provisions of Minnesota Statutes 2008, chapter 422A.
Sec. 4. Minnesota Statutes 2008, section 353.01, is
amended by adding a subdivision to read:
Subd. 48. MERF
division account. "MERF
division account" means the separate account within the retirement fund of
the general employees retirement fund of the Public Employees Retirement
Association in which the actuarial liabilities of the former Minneapolis
Employees Retirement Fund are held, and in which the assets of the former
Minneapolis Employees Retirement Fund are credited.
Sec. 5. Minnesota Statutes 2008, section 353.05, is
amended to read:
353.05 CUSTODIAN OF FUNDS.
The commissioner of
management and budget shall be ex officio treasurer of the retirement funds of
the association, including the MERF division, and the general bond of
the commissioner of management and budget to the state shall must
be so conditioned as to cover all liability for acts as treasurer of these
funds. All moneys money of
the association received by the commissioner of management and budget shall
must be set aside in the state treasury to the credit of the proper fund
or account. The commissioner of
management and budget shall transmit monthly to the executive director a
detailed statement of all amounts so received and credited to the fund
funds,
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including the
MERF division. Payments out of the fund shall funds,
including the MERF division, may only be made only on warrants
issued by the commissioner of management and budget, upon abstracts signed by
the executive director; provided that abstracts for investment may be signed by
the secretary executive director of the State Board of
Investment.
Sec. 6. Minnesota Statutes 2009 Supplement, section
353.06, is amended to read:
353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.
The executive director shall
from time to time certify to the State Board of Investment for investment such
portions of the retirement fund funds of the association, including
the MERF division, as in its the director's judgment may not
be required for immediate use. The State
Board of Investment shall thereupon invest and reinvest the sum so certified,
or transferred, in such securities as are duly authorized as legal investments for
state employees retirement fund under section 11A.24 and shall
have has authority to sell, convey, and exchange such securities and
invest and reinvest the securities when it deems it desirable to do so and
shall sell securities upon request of the board of trustees executive
director when such funds are needed for its purposes. All of the provisions regarding accounting
procedures and restrictions and conditions for the purchase and sale of
securities under chapter 11A must apply to the accounting, purchase and sale of
securities for the funds of the Public Employees Retirement fund
Association, including the MERF division.
Sec. 7. Minnesota Statutes 2008, section 353.27, as
amended by Laws 2009, chapter 169, article 1, section 32, and article 4,
sections 9, 10, 11, and 12, is amended to read:
353.27 PUBLIC GENERAL EMPLOYEES RETIREMENT FUND.
Subdivision 1. Income;
disbursements. There is a special
fund known as the "public general employees retirement
fund," the "retirement fund," or the "fund," which
must include all the assets of the general employees retirement plan of the association. This fund must be credited with all
contributions, all interest and all other income of the general employees
retirement plan of the Public Employees Retirement Association that are authorized
by law. From this fund there is
appropriated the payments authorized by this chapter sections 353.01
to 353.46 in the amounts and at such time provided herein, including the
expenses of administering the general employees retirement plan and fund.
Subd. 1a. MERF
division account established; revenue and disbursements. The MERF division account is
established as a special account. The
MERF division account includes all of the assets of the former Minneapolis
Employees Retirement Fund that were transferred to the administration of the
Public Employees Retirement Association under section 353.50. The special account is credited with the
contributions under section 353.50, subdivision 7, state aid under sections
356.43 and 422A.101, subdivision 3, investment performance on the special
account assets, and all other income of the MERF division authorized by
law. The payments of annuities and
benefits authorized by Minnesota Statutes 2008, chapter 422A, in the amounts
and at the times provided in that chapter, and the administrative expenses of
the MERF division are appropriated from the special account.
Subd. 2. General
employees retirement plan; employee contribution. (a) For a basic member of the general
employees retirement plan of the Public Employees Retirement Association,
the employee contribution is 9.10 percent of salary. For a coordinated member of the general
employees retirement plan of the Public Employees Retirement Association,
the employee contribution is six percent of salary plus any contribution rate
adjustment under subdivision 3b.
(b) These contributions must
be made by deduction from salary as defined in section 353.01, subdivision 10,
in the manner provided in subdivision 4.
If any portion of a member's salary is paid from other than public
funds, the member's employee contribution must be based on the total salary
received by the member from all sources.
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Subd. 3. General
employees retirement plan; employer contribution. (a) For a basic member of the general
employees retirement plan of the Public Employees Retirement Association,
the employer contribution is 9.10 percent of salary. For a coordinated member of the general
employees retirement plan of the Public Employees Retirement Association,
the employer contribution is six percent of salary plus any contribution rate
adjustment under subdivision 3b.
(b) This contribution must
be made from funds available to the employing subdivision by the means and in
the manner provided in section 353.28.
Subd. 3a. Additional
employer contribution. (a) An
additional employer contribution to the general employees retirement fund of
the Public Employees Retirement Association must be made equal to the
following applicable percentage of the total salary amount for "basic
members" and for "coordinated members":
Basic
Program Coordinated
Program
Effective before January 1,
2006 2.68 .43
Effective January 1, 2006 2.68 .50
Effective January 1, 2009 2.68 .75
Effective January 1, 2010 2.68 1.00
These contributions must be
made from funds available to the employing subdivision by the means and in the
manner provided in section 353.28.
(b) The coordinated program
contribution rates set forth in paragraph (a) effective for January 1, 2009,
or January 1, 2010, must not be implemented if, following receipt of the July
1, 2008, or July 1, 2009, annual actuarial valuation reports report
under section 356.215, respectively, the actuarially required contributions
are equal to or less than the total rates under this section in effect as of
January 1, 2008.
(c) This subdivision is
repealed once the actuarial value of the assets of the general employees
retirement plan of the Public Employees Retirement Association equal
or exceed the actuarial accrued liability of the plan as determined by the
actuary retained under sections 356.214 and 356.215. The repeal is effective on the first day of
the first full pay period occurring after March 31 of the calendar year
following the issuance of the actuarial valuation upon which the repeal is
based.
Subd. 3b. Change
in employee and employer contributions in certain instances. (a) For purposes of this section, a
contribution sufficiency exists if the total of the employee contribution under
subdivision 2, the employer contribution under subdivision 3, the additional
employer contribution under subdivision 3a, and any additional contribution
previously imposed under this subdivision exceeds the total of the normal cost,
the administrative expenses, and the amortization contribution of the general
employees retirement plan as reported in the most recent actuarial
valuation of the retirement plan prepared by the actuary retained under section
356.214 and prepared under section 356.215 and the standards for actuarial work
of the Legislative Commission on Pensions and Retirement. For purposes of this section, a contribution
deficiency exists if the total of the employee contributions under subdivision
2, the employer contributions under subdivision 3, the additional employer
contribution under subdivision 3a, and any additional contribution previously
imposed under this subdivision is less than the total of the normal cost, the
administrative expenses, and the amortization contribution of the general
employees retirement plan as reported in the most recent actuarial
valuation of the retirement plan prepared by the actuary retained under section
356.214 and prepared under section 356.215 and the standards for actuarial work
of the Legislative Commission on Pensions and Retirement.
(b) Employee and employer
contributions to the general employees retirement plan under
subdivisions 2 and 3 must be adjusted:
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(1) if, after July
1, 2010, the regular actuarial valuations of the general employees retirement
plan of the Public Employees Retirement Association under section 356.215
indicate that there is a contribution sufficiency under paragraph (a) equal to
or greater than 0.5 percent of covered payroll for two consecutive years, the
coordinated program employee and employer contribution rates must be decreased
as determined under paragraph (c) to a level such that the sufficiency equals
no more than 0.25 percent of covered payroll based on the most recent actuarial
valuation; or
(2) if, after July 1, 2010,
the regular actuarial valuations of the general employees retirement plan of
the Public Employees Retirement Association under section 356.215 indicate that
there is a deficiency equal to or greater than 0.5 percent of covered payroll
for two consecutive years, the coordinated program employee and employer
contribution rates must be increased as determined under paragraph (c) to a
level such that no deficiency exists based on the most recent actuarial valuation.
(c) The general employees
retirement plan contribution rate increase or decrease must be determined
by the executive director of the Public Employees Retirement Association, must
be reported to the chair and the executive director of the Legislative Commission
on Pensions and Retirement on or before the next February 1, and, if the
Legislative Commission on Pensions and Retirement does not recommend against
the rate change or does not recommend a modification in the rate change, is
effective on the next July 1 following the determination by the executive
director that a contribution deficiency or sufficiency has existed for two
consecutive fiscal years based on the most recent actuarial valuations under
section 356.215. If the actuarially
required contribution of the general employees retirement plan exceeds
or is less than the total support provided by the combined employee and
employer contribution rates by more than 0.5 percent of covered payroll, the general
employees retirement plan coordinated program employee and employer
contribution rates must be adjusted incrementally over one or more years to a
level such that there remains a contribution sufficiency of no more than 0.25
percent of covered payroll.
(d) No incremental
adjustment may exceed 0.25 percent for either the general employees
retirement plan coordinated program employee and employer contribution
rates per year in which any adjustment is implemented. A general employees retirement plan contribution
rate adjustment under this subdivision must not be made until at least two
years have passed since fully implementing a previous adjustment under this
subdivision.
(e) The general employees
retirement plan contribution sufficiency or deficiency determination under
paragraphs (a) to (d) must be made without the inclusion of the contributions
to, the funded condition of, or the actuarial funding requirements of the MERF
division.
Subd. 4. Employer
reporting requirements; contributions; member status. (a) A representative authorized by the
head of each department shall deduct employee contributions from the salary of
each employee who qualifies for membership in the general employees
retirement plan of the Public Employees Retirement Association or in the public
employees police and fire retirement plan under this chapter and remit
payment in a manner prescribed by the executive director for the aggregate
amount of the employee contributions, the employer contributions and the
additional employer contributions to be received within 14 calendar days. The head of each department or the person's
designee shall for each pay period submit to the association a salary deduction
report in the format prescribed by the executive director. Data required to be submitted as part of
salary deduction reporting must include, but are not limited to:
(1) the legal names and
Social Security numbers of employees who are members;
(2) the amount of each
employee's salary deduction;
(3) the amount of salary
from which each deduction was made;
(4) the beginning and ending
dates of the payroll period covered and the date of actual payment; and
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(5) adjustments or
corrections covering past pay periods.
(b)
Employers must furnish the data required for enrollment for each new employee
who qualifies for membership in the general employees retirement plan of the
Public Employees Retirement Association or in the public employees police and
fire retirement plan in the format prescribed by the executive
director. The required enrollment data
on new employees must be submitted to the association prior to or concurrent
with the submission of the initial employee salary deduction. The employer shall also report to the
association all member employment status changes, such as leaves of absence,
terminations, and death, and shall report the effective dates of those changes,
on an ongoing basis for the payroll cycle in which they occur. The employer shall furnish data, forms, and
reports as may be required by the executive director for proper administration
of the retirement system. Before
implementing new or different computerized reporting requirements, the
executive director shall give appropriate advance notice to governmental
subdivisions to allow time for system modifications.
(c)
Notwithstanding paragraph (a), the association executive director may
provide for less frequent reporting and payments for small employers.
Subd. 7. Adjustment
for erroneous receipts or disbursements.
(a) Except as provided in paragraph (b), erroneous employee
deductions and erroneous employer contributions and additional employer contributions
to the general employees retirement plan of the Public Employees Retirement
Association or to the public employees police and fire retirement plan for
a person, who otherwise does not qualify for membership under this chapter, are
considered:
(1) valid
if the initial erroneous deduction began before January 1, 1990. Upon determination of the error by the
association, the person may continue membership in the association while
employed in the same position for which erroneous deductions were taken, or
file a written election to terminate membership and apply for a refund upon
termination of public service or defer an annuity under section 353.34; or
(2)
invalid, if the initial erroneous employee deduction began on or after January
1, 1990. Upon determination of the
error, the association shall refund all erroneous employee deductions and all
erroneous employer contributions as specified in paragraph (e). No person may claim a right to continued or
past membership in the association based on erroneous deductions which began on
or after January 1, 1990.
(b)
Erroneous deductions taken from the salary of a person who did not qualify for
membership in the general employees retirement plan of the Public Employees
Retirement Association or in the public employees police and fire
retirement plan by virtue of concurrent employment before July 1, 1978,
which required contributions to another retirement fund or relief association
established for the benefit of officers and employees of a governmental subdivision,
are invalid. Upon discovery of the
error, the association shall remove all invalid service and, upon termination
of public service, the association shall refund all erroneous employee
deductions to the person, with interest as determined under section 353.34,
subdivision 2, and all erroneous employer contributions without interest to the
employer. This paragraph has both
retroactive and prospective application.
(c)
Adjustments to correct employer contributions and employee deductions taken in error
from amounts which are not salary under section 353.01, subdivision 10, must be
made as specified in paragraph (e). The
period of adjustment must be limited to the fiscal year in which the error is
discovered by the association and the immediate two preceding fiscal
years.
(d) If
there is evidence of fraud or other misconduct on the part of the employee or
the employer, the board of trustees may authorize adjustments to the account of
a member or former member to correct erroneous employee deductions and employer
contributions on invalid salary and the recovery of any overpayments for a
period longer than provided for under paragraph (c).
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(e) Upon discovery
of the receipt of erroneous employee deductions and employer contributions
under paragraph (a), clause (2), or paragraph (c), the association must require
the employer to discontinue the erroneous employee deductions and erroneous
employer contributions reported on behalf of a member. Upon discontinuation, the association must:
(1) for a
member, provide a refund or credit to the employer in the amount of the invalid
employee deductions with interest on the invalid employee deductions at the
rate specified under section 353.34, subdivision 2, from the received date of
each invalid salary transaction through the date the credit or refund is made;
and the employer must pay the refunded employee deductions plus interest to the
member;
(2) for a
former member who:
(i) is not
receiving a retirement annuity or benefit, return the erroneous employee
deductions to the former member through a refund with interest at the rate specified
under section 353.34, subdivision 2, from the received date of each invalid
salary transaction through the date the credit or refund is made; or
(ii) is
receiving a retirement annuity or disability benefit, or a person who is
receiving an optional annuity or survivor benefit, for whom it has been
determined an overpayment must be recovered, adjust the payment amount and
recover the overpayments as provided under this section; and
(3) return
the invalid employer contributions reported on behalf of a member or former
member to the employer by providing a credit against future contributions
payable by the employer.
(f) In the
event that a salary warrant or check from which a deduction for the retirement
fund was taken has been canceled or the amount of the warrant or check returned
to the funds of the department making the payment, a refund of the sum
deducted, or any portion of it that is required to adjust the deductions, must
be made to the department or institution.
(g) If the
accrual date of any retirement annuity, survivor benefit, or disability benefit
is within the limitation period specified in paragraph (c), and an overpayment
has resulted by using invalid service or salary, or due to any erroneous
calculation procedure, the association must recalculate the annuity or benefit
payable and recover any overpayment as provided under subdivision 7b.
(h)
Notwithstanding the provisions of this subdivision, the association may apply
the Revenue Procedures defined in the federal Internal Revenue Service Employee
Plans Compliance Resolution System and not issue a refund of erroneous employee
deductions and employer contributions or not recover a small overpayment of
benefits if the cost to correct the error would exceed the amount of the member
refund or overpayment.
(i) Any
fees or penalties assessed by the federal Internal Revenue Service for any
failure by an employer to follow the statutory requirements for reporting
eligible members and salary must be paid by the employer.
Subd. 7a. Deductions
or contributions transmitted by error. (a)
If employee deductions and employer contributions under this section,
section 353.50, 353.65, or 353E.03 were erroneously transmitted to the
association, but should have been transmitted to another Minnesota public
pension plan, the executive director shall transfer the erroneous employee
deductions and employer contributions to the appropriate retirement fund or
individual account, as applicable, without interest. The time limitations specified in
subdivisions 7 and 12 do not apply.
(b) For
purposes of this subdivision, a Minnesota public pension plan means a plan
specified in section 356.30, subdivision 3, or the plans governed by chapters
353D and 354B.
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(c) A potential
transfer under paragraph (a) that is reasonably determined to cause the plan to
fail to be a qualified plan under section 401(a) of the federal Internal
Revenue Code, as amended, must not be made by the executive director of the
association. Within 30 days after being
notified by the Public Employees Retirement Association of an unmade potential
transfer under this paragraph, the employer of the affected person must
transmit an amount representing the applicable salary deductions and employer
contributions, without interest, to the retirement fund of the appropriate
Minnesota public pension plan, or to the applicable individual account if the proper
coverage is by a defined contribution plan.
The association must provide the employing unit a credit for the amount
of the erroneous salary deductions and employer contributions against future
contributions from the employer. If the
employing unit receives a credit under this paragraph, the employing unit is
responsible for refunding to the applicable employee any amount that had been
erroneously deducted from the person's salary.
Subd. 7b. Recovery
of overpayments. (a) In the event the
executive director determines that an overpaid annuity or benefit that from
the general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, or the local
government correctional employees retirement plan is the result of invalid
salary included in the average salary used to calculate the payment amount must
be recovered, the association must determine the amount of the employee
deductions taken in error on the invalid salary, with interest determined in
the manner provided for a former member under subdivision 7, paragraph (e),
clause (2), item (i), and must subtract that amount from the total annuity or
benefit overpayment, and the remaining balance of the overpaid annuity or benefit,
if any, must be recovered.
(b) If the invalid employee
deductions plus interest exceed the amount of the overpaid benefits, the
balance must be refunded to the person to whom the benefit or annuity is being
paid.
(c) Any invalid employer
contributions reported on the invalid salary must be credited to the employer
as provided in subdivision 7, paragraph (e).
(d) If a member or former
member, who is receiving a retirement annuity or disability benefit for which
an overpayment is being recovered, dies before recovery of the overpayment is
completed and a joint and survivor optional annuity is payable, the remaining
balance of the overpaid annuity or benefit must continue to be recovered from
the payment to the optional annuity beneficiary.
(e) If the association finds
that a refund has been overpaid to a former member, beneficiary or other
person, the amount of the overpayment must be recovered for the benefit of
the respective retirement fund or account.
(f) The board of trustees
shall adopt policies directing the period of time and manner for the collection
of any overpaid retirement or optional annuity, and survivor or disability
benefit, or a refund that the executive director determines must be recovered
as provided under this section.
Subd. 7c. Limitation
on additional plan coverage. No
deductions for any plan under this chapter or chapter 353E may be taken from
the salary of a person who is employed by a governmental subdivision under
section 353.01, subdivision 6, and who is receiving disability benefit payments
from any plan under this chapter or chapter 353E unless the person waives the
right to further disability benefit payments.
Subd. 8. District
court reporters; salary deductions. Deductions
from the salary of a district court reporter in a judicial district consisting
of two or more counties shall must be made by the auditor of the
county in which the bond and official oath of such district court reporter are
filed, from the portion of salary paid by such county.
Subd. 9. Fee
officers; contributions; obligations of employers. Any appointed or elected officer of a
governmental subdivision who was or is a "public employee" within the
meaning of section 353.01 and was or is a member of the fund general
employees retirement plan of the Public Employees Retirement Association and
whose salary was or is paid in whole or in part from revenue derived by fees
and assessments, shall pay employee
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contribution in the
amount, at the time, and in the manner provided in subdivisions 2 and 4. This subdivision shall does not
apply to district court reporters. The
employer contribution as provided in subdivision 3, and the additional employer
contribution as provided in subdivision 3a, with respect to such service shall
must be paid by the governmental subdivision. This subdivision shall have has both
retroactive and prospective application as to all such members; and every
employing governmental subdivision is deemed liable, retroactively and
prospectively, for all employer and additional employer contributions for every
such member of the general employees retirement plan in its employ. Delinquencies under this section shall be
are governed in all respects by section 353.28.
Subd. 10. Employer
exclusion reports. The head of a
department shall annually furnish the executive director with an exclusion
report listing only those employees in potentially PERA-eligible PERA
general employees retirement plan-eligible positions who were not reported
as members of the association general employees retirement plan and
who worked during the school year for school employees and calendar year for
nonschool employees. The department head
must certify the accuracy and completeness of the exclusion report to the
association. The executive director
shall prescribe the manner and forms, including standardized exclusion codes,
to be used by a governmental subdivision in preparing and filing exclusion
reports. The executive director shall
also check the exclusion report to ascertain whether any omissions have been
made by a department head in the reporting of new public employees for
membership. The executive director may
delegate an association employee under section 353.03, subdivision 3a,
paragraph (b), clause (5), to conduct a field audit to review the payroll
records of a governmental subdivision.
Subd. 11.
Employers;
required to furnish requested information.
(a) All governmental subdivisions shall furnish promptly such other
information relative to the employment status of all employees or former
employees, including, but not limited to, payroll abstracts pertaining to all
past and present employees, as may be requested by the executive director,
including schedules of salaries applicable to various categories of employment.
(b) In the
event payroll abstract records have been lost or destroyed, for whatever reason
or in whatever manner, so that such schedules of salaries cannot be furnished
therefrom, the employing governmental subdivision, in lieu thereof, shall
furnish to the association an estimate of the earnings of any employee or
former employee for any period as may be requested by the executive
director. If the association is provided
a schedule of estimated earnings, the executive director is authorized to use
the same as a basis for making whatever computations might be necessary for
determining obligations of the employee and employer to the general
employees retirement fund plan, the public employees police and
fire retirement plan, or the local government correctional employees retirement
plan. If estimates are not furnished
by the employer at the request of the executive director, the executive
director may estimate the obligations of the employee and employer to the general
employees retirement fund, the public employees police and fire
retirement plan, or the local government correctional employees retirement plan
based upon those records that are in its possession.
Subd. 12. Omitted
salary deductions; obligations. (a)
In the case of omission of required deductions for the general employees
retirement plan, the public employees police and fire retirement plan, or the
local government correctional employees retirement plan from the salary of
an employee, the department head or designee shall immediately, upon discovery,
report the employee for membership and deduct the employee deductions under
subdivision 4 during the current pay period or during the pay period
immediately following the discovery of the omission. Payment for the omitted obligations may only
be made in accordance with reporting procedures and methods established by the
executive director.
(b) When the
entire omission period of an employee does not exceed 60 days, the governmental
subdivision may report and submit payment of the omitted employee deductions
and the omitted employer contributions through the reporting processes under
subdivision 4.
(c) When the
omission period of an employee exceeds 60 days, the governmental subdivision
shall furnish to the association sufficient data and documentation upon which
the obligation for omitted employee and employer contributions can be
calculated. The omitted employee
deductions must be deducted from the employee's
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subsequent salary
payment or payments and remitted to the association for deposit in the
applicable retirement fund. The
employee shall pay omitted employee deductions due for the 60 days prior to the
end of the last pay period in the omission period during which salary was
earned. The employer shall pay any
remaining omitted employee deductions and any omitted employer contributions,
plus cumulative interest at an annual rate of 8.5 percent compounded annually,
from the date or dates each omitted employee contribution was first payable.
(d) An
employer shall not hold an employee liable for omitted employee deductions
beyond the pay period dates under paragraph (c), nor attempt to recover from
the employee those employee deductions paid by the employer on behalf of the employee. Omitted deductions due under paragraph (c)
which are not paid by the employee constitute a liability of the employer that
failed to deduct the omitted deductions from the employee's salary. The employer shall make payment with interest
at an annual rate of 8.5 percent compounded annually. Omitted employee deductions are no longer due
if an employee terminates public service before making payment of omitted
employee deductions to the association, but the employer remains liable to pay
omitted employer contributions plus interest at an annual rate of 8.5 percent
compounded annually from the date the contributions were first payable.
(e) The
association may not commence action for the recovery of omitted employee
deductions and employer contributions after the expiration of three calendar
years after the calendar year in which the contributions and deductions were
omitted. Except as provided under
paragraph (b), no payment may be made or accepted unless the association has
already commenced action for recovery of omitted deductions. An action for recovery commences on the date
of the mailing of any written correspondence from the association requesting
information from the governmental subdivision upon which to determine whether
or not omitted deductions occurred.
Subd. 12a. Terminated
employees: omitted deductions. A terminated employee who was a member
of the general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, or the local
government correctional employees retirement plan and who has a period of
employment in which previously omitted employer contributions were made under
subdivision 12 but for whom no, or only partial, omitted employee contributions
have been made, or a member who had prior coverage in the association for which
previously omitted employer contributions were made under subdivision 12 but
who terminated service before required omitted employee deductions could be
withheld from salary, may pay the omitted employee deductions for the period on
which omitted employer contributions were previously paid plus interest at an
annual rate of 8.5 percent compounded annually.
A terminated employee may pay the omitted employee deductions plus
interest within six months of an initial notification from the association of
eligibility to pay those omitted deductions.
If a terminated employee is reemployed in a position covered under a
public pension fund under section 356.30, subdivision 3, and elects to pay omitted
employee deductions, payment must be made no later than six months after a
subsequent termination of public service.
Subd. 12b. Terminated
employees: immediate eligibility. If deductions were omitted from salary
adjustments or final salary of a terminated employee who was a member of the
general employees retirement plan, the public employees police and fire
retirement plan, or the local government correctional employees retirement plan
and who is immediately eligible to draw a monthly benefit, the employer
shall pay the omitted employer and employer additional contributions plus
interest on both the employer and employee amounts due at an annual rate of 8.5
percent compounded annually. The
employee shall pay the employee deductions within six months of an initial
notification from the association of eligibility to pay omitted deductions or
the employee forfeits the right to make the payment.
Subd. 13. Certain
warrants canceled. A warrant payable
from the general employees retirement fund, the public employees
police and fire retirement fund, or the local government correctional
retirement fund remaining unpaid for a period of six months must be
canceled into the applicable retirement fund and not canceled into
the state's general fund.
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Subd. 14. Periods
before initial coverage date. (a) If
an entity is determined to be a governmental subdivision due to receipt of a
written notice of eligibility from the association with respect to the
general employees retirement plan, the public employees police and fire
retirement plan, or the local government correctional retirement plan, that
employer and its employees are subject to the requirements of subdivision 12,
effective retroactively to the date that the executive director of the
association determines that the entity first met the definition of a
governmental subdivision, if that date predates the notice of eligibility.
(b) If the retroactive time
period under paragraph (a) exceeds three years, an employee is authorized to
purchase service credit in the applicable Public Employees Retirement
Association plan for the portion of the period in excess of three years, by
making payment under section 356.551.
Notwithstanding any provision of section 356.551, subdivision 2, to
the contrary, regarding time limits on purchases, payment of a service
credit purchase amount may be made anytime before the termination of
public service.
(c) This subdivision does
not apply if the applicable employment under paragraph (a) included coverage by
any public or private defined benefit or defined contribution retirement plan,
other than a volunteer firefighters relief association. If this paragraph applies, an individual is
prohibited from purchasing service credit from a Public Employees Retirement
Association plan for any period or periods specified in paragraph (a).
Sec. 8. Minnesota Statutes 2008, section 353.34,
subdivision 1, is amended to read:
Subdivision 1. Refund
or deferred annuity. (a) A former
member is entitled to a refund of accumulated employee deductions under
subdivision 2, or to a deferred annuity under subdivision 3. Application for a refund may not be made
before the date of termination of public service. Except as specified in paragraph (b), a
refund must be paid within 120 days following receipt of the application unless
the applicant has again become a public employee required to be covered by the
association.
(b) If an individual was
placed on layoff under section 353.01, subdivision 12 or 12c, a refund is not
payable before termination of service under section 353.01, subdivision
11a.
(c) An individual who
terminates public service covered by the Public Employees Retirement
Association general employees retirement plan, the MERF division, the
Public Employees Retirement Association police and fire retirement plan, or the
public employees local government corrections service retirement plan, and who
is employed by a different employer and who becomes an active member covered by
one of the other two plans, may receive a refund of employee contributions plus
six percent interest compounded annually from the plan from which the member terminated
service.
Sec. 9. Minnesota Statutes 2008, section 353.34,
subdivision 6, is amended to read:
Subd. 6. Additions
to fund. The board of trustees may
credit to the general employees retirement fund any moneys money
received in the form of contributions, donations, gifts, appropriations,
bequests, or otherwise.
Sec. 10. Minnesota Statutes 2008, section 353.37,
subdivision 1, is amended to read:
Subdivision 1. Salary
maximums. (a) The annuity of
a person otherwise eligible for an annuity under this chapter from
the general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, or the local
government correctional employees retirement plan must be suspended under
subdivision 2 or reduced under subdivision 3, whichever results in the higher
annual annuity amount, if the person reenters public service as a nonelective
employee of a governmental subdivision in a position covered by this chapter or
returns to work as an employee of a labor organization that represents public
employees who are association members under this chapter and salary for the
reemployment service exceeds the annual maximum earnings allowable for that age
for the continued receipt of full benefit amounts monthly under the federal
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Old Age, Survivors
and Disability Insurance Program as set by the secretary of health and human
services under United States Code, title 42, section 403, in any calendar
year. If the person has not yet reached
the minimum age for the receipt of Social Security benefits, the maximum salary
for the person is equal to the annual maximum earnings allowable for the
minimum age for the receipt of Social Security benefits.
(b) The provisions of
paragraph (a) do not apply to the members of the MERF division.
Sec. 11. Minnesota Statutes 2008, section 353.37,
subdivision 2, is amended to read:
Subd. 2. Suspension
of annuity. (a) The
association shall suspend the annuity on the first of the month after the month
in which the salary of the reemployed annuitant described in subdivision 1,
paragraph (a), exceeds the maximums set in subdivision 1, paragraph (a),
based only on those months in which the annuitant is actually employed in
nonelective public service in a position covered under this chapter or
employment with a labor organization that represents public employees who are association
members of a retirement plan under this chapter or chapter 353E.
(b) An annuitant who is elected
to public office after retirement may hold that office and receive an
annuity otherwise payable from a retirement plan administered by the
association.
Sec. 12. Minnesota Statutes 2008, section 353.37,
subdivision 3, is amended to read:
Subd. 3. Reduction
of annuity. (a) The
association shall reduce the amount of the annuity of a person who has not
reached the retirement age by one-half of the amount in excess of the
applicable reemployment income maximum under subdivision 1, paragraph (a).
(b) There is no reduction upon
reemployment, regardless of income, for a person who has reached the
retirement age.
Sec. 13. Minnesota Statutes 2008, section 353.37,
subdivision 4, is amended to read:
Subd. 4. Resumption
of annuity. The association shall
resume paying a full annuity to the reemployed annuitant described in
subdivision 1, paragraph (a), at the start of each calendar year until the
salary exceeds the maximums under subdivision 1, paragraph (a), or on
the first of the month following the termination of the employment
which resulted in the suspension of the annuity. The executive director may adopt policies
regarding the suspension and reduction of annuities under this section.
Sec. 14. Minnesota Statutes 2008, section 353.37,
subdivision 5, is amended to read:
Subd. 5. Effect
on annuity. Except as provided under
this section, public service performed by an annuitant described in subdivision
1, paragraph (a), subsequent to retirement under this chapter from
the general employees retirement plan, the public employees police and fire
retirement plan, or the local government correctional employees retirement plan
does not increase or decrease the amount of an annuity. The annuitant shall not make any further
contributions to the association's a defined benefit plan administered
by the association by reason of this subsequent public service.
Sec. 15. Minnesota Statutes 2008, section 353.46,
subdivision 2, is amended to read:
Subd. 2. Rights
of deferred annuitant. The right
entitlement of a deferred annuitant or other former member of the
general employees retirement plan of the Public Employees Retirement Association,
the Minneapolis Employees Retirement Fund division, the public employees police
and fire retirement plan, or the local government correctional employees
retirement plan to receive an annuity under the law in effect at the time such
the person
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terminated public
service is herein preserved; provided, however,. The provisions of section 353.71, subdivision
2, as amended by Laws 1973, chapter 753 shall, apply to a
deferred annuitant or other former member who first begins receiving an annuity
after July 1, 1973.
Sec. 16. Minnesota Statutes 2008, section 353.46,
subdivision 6, is amended to read:
Subd. 6. Computation
of benefits for certain coordinated members.
Any coordinated member of the general employees retirement plan
of the Public Employees Retirement Association who prior to,
before July 1, 1979, was a member of the former coordinated
program of the former Minneapolis Municipal Employees Retirement Fund
and who prior to, before July 1, 1978, was a member of the
basic program of the Minneapolis Municipal Employees Retirement Fund shall:
(1) be is entitled
to receive a retirement annuity when otherwise qualified, the calculation of
which shall must utilize the formula accrual rates specified in
section 422A.15, subdivision 1, for that portion of credited service which was
rendered prior to before July 1, 1978, and the formula accrual
rates specified in section 353.29, subdivision 3, for the remainder of credited
service, both applied to the average salary as specified in section 353.29,
subdivision 2 353.01, subdivision 17a. The formula accrual rates to be used in
calculating the retirement annuity shall must recognize the
service after July 1, 1978, as a member of the former coordinated
program of the former Minneapolis Municipal Employees Retirement Fund
and after July 1, 1979, as a member of the general employees
retirement plan of the Public Employees Retirement Association as a
continuation of service rendered prior to before July 1,
1978. The annuity amount attributable to
service as a member of the basic program of the former Minneapolis
Municipal Employees Retirement Fund shall be is payable by
from the Minneapolis Employees Retirement Fund MERF division and
the annuity amount attributable to all other service shall be is payable
by from the general employees retirement fund of the Public
Employees Retirement Association; .
(2) retain
eligibility when otherwise qualified for a disability benefit from the
Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding
coverage by the Public Employees Retirement Association, if the member has or
would, without the transfer of retirement coverage from the basic program of
the Minneapolis Municipal Employees Retirement Fund to the coordinated program
of the Minneapolis Municipal Employees Retirement Fund or from the coordinated
program of the Minneapolis Municipal Employees Retirement Fund to the public
employees retirement fund, have sufficient credited service prior to January 1,
1983, to meet the minimum service requirements for a disability benefit
pursuant to section 422A.18. The
disability benefit amount attributable to service as a member of the basic
program of the Minneapolis Municipal Employees Retirement Fund shall be payable
by the Minneapolis Employees Retirement Fund and the disability benefit amount
attributable to all other service shall be payable by the Public Employees
Retirement Association.
Sec. 17. [353.50]
MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT AND OPERATION.
Subdivision
1. Administrative consolidation.
(a) Notwithstanding any provision of this chapter or chapter 422A
to the contrary, the administration of the Minneapolis Employees Retirement
Fund as the MERF division is transferred to the Public Employees Retirement
Association board of trustees. The
assets, service credit, and benefit liabilities of the Minneapolis Employees
Retirement Fund transfer to the MERF division account within the general
employees retirement plan of the Public Employees Retirement Association
established by section 353.27, subdivision 1a, on July 1, 2010.
(b) The creation
of the MERF division must not be construed to alter the Social Security or
Medicare coverage of any member of the former Minneapolis Employees Retirement
Fund on June 29, 2010, while the person is employed in a position covered under
the MERF division of the Public Employees Retirement Association.
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Subd. 2. Membership
transfer. Effective June 30,
2010, the active, inactive, and retired members of the Minneapolis Employees
Retirement Fund are transferred to the MERF division administered by the Public
Employees Retirement Association and are no longer members of the Minneapolis
Employees Retirement Fund.
Subd. 3. Service
credit and benefit liability transfer.
(a) All allowable service credit and salary credit of the members
of the Minneapolis Employees Retirement Fund as specified in the records of the
Minneapolis Employees Retirement Fund through June 30, 2010, are transferred to
the MERF division of the Public Employees Retirement Association and are
credited by the MERF division. Annuities
or benefits of persons who are active members of the former Minneapolis
Employees Retirement Fund on June 30, 2010, must be calculated under Minnesota
Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151;
422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23,
but are only eligible for automatic postretirement adjustments after December
31, 2010, under section 356.415.
(b) The
liability for the payment of annuities and benefits of the Minneapolis
Employees Retirement Fund retirees and benefit recipients as specified in the
records of the Minneapolis Employees Retirement Fund on
June 29, 2010, is transferred to the MERF division of the Public
Employees Retirement Association on June 30, 2010.
Subd. 4. Records
transfer. On June 30, 2010,
the executive director of the Minneapolis Employees Retirement Fund shall transfer
all records and documents relating to the Minneapolis Employees Retirement Fund
and its benefit plan to the executive director of the Public Employees
Retirement Association. To the extent
possible, original copies of all records and documents must be transferred.
Subd. 5. Transfer
of title to assets. On June
30, 2010, legal title to the assets of the Minneapolis Employees Retirement
Fund transfers to the State Board of Investment and the assets must be invested
under section 11A.14, as assets of the MERF division of the Public Employees
Retirement Association. The MERF
division is the successor in interest to all claims that the former Minneapolis
Employees Retirement Fund may have or may assert against any person and is the
successor in interest to all claims which could have been asserted against the
former Minneapolis Employees Retirement Fund, but the MERF division is not
liable for any claim against the former Minneapolis Employees Retirement Fund,
its former governing board, or its former administrative staff acting in a
fiduciary capacity under chapter 356A or under common law, which is founded
upon a claim of breach of fiduciary duty, but where the act or acts
constituting the claimed breach were not undertaken in good faith, the Public Employees
Retirement Association may assert any applicable defense to any claim in any
judicial or administrative proceeding that the former Minneapolis Employees
Retirement Fund, its former board, or its former administrative staff would
otherwise have been entitled to assert, and the Public Employees Retirement
Association may assert any applicable defense that it has in its capacity as a
statewide agency.
Subd. 6. Benefits. (a) The annuities and benefits of, or
attributable to, retired, disabled, deferred, or inactive Minneapolis Employees
Retirement Fund members with that status as of June 30, 2010, with the
exception of post-December 31, 2010, postretirement adjustments, which are
governed by paragraph (b), as calculated under Minnesota Statutes 2008, sections
422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156;
422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, continue in force
after the administrative consolidation under this article.
(b) After
December 31, 2010, annuities and benefits from the MERF division are eligible
for annual automatic postretirement adjustments solely under section 356.415.
Subd. 7. MERF
division account contributions. (a)
After June 30, 2010, the member and employer contributions to the MERF division
account are governed by this subdivision.
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(b) An active
member covered by the MERF division must make an employee contribution of 9.75
percent of the total salary of the member as defined in section 353.01,
subdivision 10. The employee
contribution must be made by payroll deduction by the member's employing unit
under section 353.27, subdivision 4, and is subject to the provisions of
section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.
(c) The employer regular
contribution to the MERF division account with respect to an active MERF
division member is 9.75 percent of the total salary of the member as defined in
section 353.01, subdivision 10.
(d) The employer additional
contribution to the MERF division account with respect to an active member of
the MERF division is 2.68 percent of the total salary of the member as defined
in section 353.01, subdivision 10, plus the employing unit's share of
$3,900,000 that the employing unit paid or is payable to the former Minneapolis
Employees Retirement Fund under Minnesota Statutes 2008, section 422A.101,
subdivision 1a, 2, or 2a, during calendar year 2009, as was certified by the
former executive director of the former Minneapolis Employees Retirement Fund.
(e) Annually after June 30,
2012, the employer supplemental contribution to the MERF division account by
the city of Minneapolis, Special School District No. 1, Minneapolis, a
Minneapolis-owned public utility, improvement, or municipal activity, Hennepin
county, the Metropolitan Council, the Metropolitan Airports Commission, and the
Minnesota State Colleges and Universities system is the larger of the
following:
(1) the amount by which the
total actuarial required contribution determined under section 356.215 by the
approved actuary retained by the Public Employees Retirement Association in the
most recent actuarial valuation of the MERF division and based on a June 30,
2031, amortization date, after subtracting the contributions under paragraphs
(b), (c), and (d), exceeds $24,000,000; or
(2) the amount of $27,000,000. Each employing unit's share of the total
employer supplemental contribution amount is equal to the applicable portion
specified in paragraph (g). The initial
total actuarial required contribution after June 30, 2012, must be calculated
using the mortality assumption change recommended on
September 30, 2009, for the Minneapolis Employees Retirement Fund by
the approved consulting actuary retained by the Minneapolis Employees
Retirement Fund board.
(f) Notwithstanding any
provision of paragraph (c), (d), or (e) to the contrary, as of August 1
annually, if the amount of the retirement annuities and benefits paid from the
MERF division account during the preceding fiscal year, multiplied by the
factor of 1.035, exceeds the market value of the assets of the MERF division
account on the preceding June 30, plus state aid of $9,000,000 or $24,000,000,
whichever applies, plus the amounts payable under paragraphs (b), (c), (d), and
(e) during the preceding fiscal year, multiplied by the factor of 1.035, the balance
calculated is a special additional employer contribution. The special additional employer contribution
under this paragraph is payable in addition to any employer contribution
required under paragraphs (c), (d), and (e), and is payable on or before the
following June 30. The special
additional employer contribution under this paragraph must be allocated as
specified in paragraph (g).
(g) The employer
supplemental contribution under paragraph (e) or the special additional
employer contribution under paragraph (f) must be allocated between the city of
Minneapolis, Special School District No. 1, Minneapolis, any
Minneapolis-owned public utility, improvement, or municipal activity, the
Minnesota State Colleges and Universities system, Hennepin County, the
Metropolitan Council, and the Metropolitan Airports Commission in proportion to
their share of the actuarial accrued liability of the former Minneapolis
Employees Retirement Fund as of July 1, 2009, as calculated by the approved
actuary retained under section 356.214 as part of the actuarial valuation
prepared as of July 1, 2009, under section 356.215 and the Standards for
Actuarial Work adopted by the Legislative Commission on Pensions and
Retirement.
(h) The employer
contributions under paragraphs (c), (d), and (e) must be paid as provided in
section 353.28.
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(i)
Contributions under this subdivision are subject to the provisions of section
353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.
Subd. 7a. Minneapolis
Municipal Retirement Association dues.
If authorized by an annuitant or retirement benefit recipient in
writing on a form prescribed by the executive director of the Public Employees
Retirement Association, the executive director shall deduct the dues for the
Minneapolis Municipal Retirement Association from the person's annuity or
retirement benefit. This dues deduction
authority expires upon the eventual full consolidation of the MERF account
under subdivision 8.
Subd. 8. Eventual
full consolidation. (a) Once
the fiscal year end market value of assets of the MERF division account equals
or exceeds 80 percent of the actuarial accrued liability of the MERF division
as calculated by the approved actuary retained by the Public Employees
Retirement Association under section 356.215 and the Standards for Actuarial
Work adopted by the Legislative Commission on Pensions and Retirement, the MERF
division must be merged with the general employees retirement plan of the
Public Employees Retirement Association and the MERF division account ceases as
a separate account within the general employees retirement fund of the Public
Employees Retirement Association.
(b) If the market value of
the MERF division account is less than 100 percent of the actuarial accrued
liability of the MERF division under paragraph (a), the total employer
contribution of employing units referenced in subdivision 7, paragraph (e), for
the period after the full consolidation and June 30, 2031, to amortize on a
level annual dollar payment the remaining unfunded actuarial accrued liability
of the former MERF division account on the full consolidation date by June 30,
2031, shall be calculated by the consulting actuary retained under section
356.214 using the applicable postretirement interest rate actuarial assumption
for the general employees retirement plan under section 356.215. The actuarial accrued liability of the MERF
division must be calculated using the healthy retired life mortality assumption
applicable to the general employees retirement plan.
(c) The merger shall occur
as of the first day of the first month after the date on which the triggering
actuarial valuation report is filed with the executive director of the
Legislative Commission on Pensions and Retirement.
(d) The executive director
of the Public Employees Retirement Association shall prepare proposed
legislation fully implementing the merger and updating the applicable
provisions of chapters 353 and 356 and transmit the proposed legislation to the
executive director of the Legislative Commission on Pensions and Retirement by
the following February 15.
Subd. 9. Merger
of former MERF membership groups into PERA-general. If provided for in an agreement
between the board of trustees of the Public Employees Retirement Association
and the governing board of an employing unit formerly with retirement coverage
provided for its employees by the former Minneapolis Employees Retirement Fund,
an employing unit may transfer sufficient assets to the general employees
retirement fund to cover the anticipated actuarial accrued liability for its current
or former employees that is in excess of MERF division account assets
attributable to those employees, have those employees be considered full
members of the general employees retirement plan, and be relieved of any
further contribution obligation to the general employees retirement plan for
those employees under this section. Any
agreement under this subdivision and any actuarial valuation report related to
a merger under this subdivision must be submitted to the executive director of
the Legislative Commission on Pensions and Retirement for comment prior to the
final execution.
Sec. 18. Minnesota Statutes 2008, section 353.64,
subdivision 7, is amended to read:
Subd. 7. Pension
coverage for certain public safety employees of the Metropolitan
Airports Commission. Any person
first employed as either a full-time firefighter or a full-time police officer
by the Metropolitan Airports Commission after June 30, 1978, who is not
eligible for coverage under the agreement signed between the state and the
secretary of the federal Department of Health and Human Services making the
provisions of the federal Old Age,
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Survivors, and
Disability Insurance Act applicable to municipal employees because that
position is excluded from application pursuant to under Title 42,
United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section
355.07, shall not be a member of the Minneapolis Employees Retirement Fund
but shall be is a member of the public employees police and fire
fund and shall be is deemed to be a firefighter or a police
officer within the meaning of this section.
The Metropolitan Airports Commission shall make the employer
contribution required pursuant to under section 353.65,
subdivision 3, with respect to each of its firefighters or police officers
covered by the public employees police and fire fund and shall meet the
employers recording and reporting requirements set forth in section 353.65,
subdivision 4.
Sec. 19. Minnesota Statutes 2008, section 356.215,
subdivision 8, is amended to read:
Subd. 8. Interest
and salary assumptions. (a) The
actuarial valuation must use the applicable following preretirement interest
assumption and the applicable following postretirement interest assumption:
preretirement postretirement
interest
rate interest
rate
plan assumption assumption
general state employees
retirement plan 8.5% 6.0%
correctional state employees
retirement plan 8.5 6.0
State Patrol retirement plan 8.5 6.0
legislators retirement plan 8.5 6.0
elective state officers
retirement plan 8.5 6.0
judges retirement plan 8.5 6.0
general public employees
retirement plan 8.5 6.0
public employees police and
fire retirement plan 8.5 6.0
local government
correctional service retirement plan 8.5 6.0
teachers retirement plan 8.5 6.0
Minneapolis employees
retirement plan 6.0 5.0
Duluth teachers retirement
plan 8.5 8.5
St. Paul teachers
retirement plan 8.5 8.5
Minneapolis Police Relief
Association 6.0 6.0
Fairmont Police Relief
Association 5.0 5.0
Minneapolis Fire Department
Relief Association 6.0 6.0
Virginia Fire Department
Relief Association 5.0 5.0
Bloomington Fire Department
Relief Association 6.0 6.0
local monthly benefit
volunteer firefighters relief associations 5.0 5.0
(b) Before July 1, 2010, the
actuarial valuation must use the applicable following single rate future salary
increase assumption, the applicable following modified single rate future
salary increase assumption, or the applicable following graded rate future
salary increase assumption:
(1) single rate future
salary increase assumption
future
salary
Plan increase
assumption
legislators retirement plan 5.0%
judges retirement plan 4.0
Minneapolis Police Relief
Association 4.0
Fairmont Police Relief
Association 3.5
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Minneapolis Fire
Department Relief Association 4.0
Virginia Fire Department Relief Association 3.5
Bloomington Fire Department Relief Association 4.0
(2) modified single rate future salary increase assumption
future
salary
plan increase
assumption
Minneapolis employees retirement plan the
prior calendar year amount increased
first
by 1.0198 percent to prior fiscal year
date
and then increased by 4.0 percent
annually
for each future year
(3) (2) select and ultimate
future salary increase assumption or graded rate future salary increase
assumption
future
salary
plan increase
assumption
general state employees retirement plan select
calculation and assumption A
correctional state employees retirement plan assumption
H
State Patrol retirement plan assumption
G
general public employees retirement plan select
calculation and assumption B
public employees police and fire fund retirement plan assumption
C
local government correctional service retirement plan assumption
G
teachers retirement plan assumption
D
Duluth teachers retirement plan assumption
E
St. Paul teachers retirement plan assumption
F
The select calculation is: during the designated select period, a
designated percentage rate is multiplied by the result of the designated
integer minus T, where T is the number of completed years of service, and is
added to the applicable future salary increase assumption. The designated select period is five years
and the designated integer is five for the general state employees retirement
plan and the general public employees retirement plan. The designated select period is ten years and
the designated integer is ten for all other retirement plans covered by this
clause. The designated percentage rate
is: (1) 0.2 percent for the correctional
state employees retirement plan, the State Patrol retirement plan, the public
employees police and fire plan, and the local government correctional service
plan; (2) 0.6 percent for the general state employees retirement plan and the
general public employees retirement plan; and (3) 0.3 percent for the teachers
retirement plan, the Duluth Teachers Retirement Fund Association, and the
St. Paul Teachers Retirement Fund Association. The select calculation for the Duluth
Teachers Retirement Fund Association is 8.00 percent per year for service years
one through seven, 7.25 percent per year for service years seven and eight, and
6.50 percent per year for service years eight and nine.
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Day - Wednesday, April 28, 2010 - Top of Page 10758
The ultimate future
salary increase assumption is:
age A B C D E F G H
16 5.95% 5.95% 11.00% 7.70% 8.00% 6.90% 7.7500% 7.2500%
17 5.90 5.90 11.00 7.65 8.00 6.90 7.7500 7.2500
18 5.85 5.85 11.00 7.60 8.00 6.90 7.7500 7.2500
19 5.80 5.80 11.00 7.55 8.00 6.90 7.7500 7.2500
20 5.75 5.40 11.00 5.50 6.90 6.90 7.7500 7.2500
21 5.75 5.40 11.00 5.50 6.90 6.90 7.1454 6.6454
22 5.75 5.40 10.50 5.50 6.90 6.90 7.0725 6.5725
23 5.75 5.40 10.00 5.50 6.85 6.85 7.0544 6.5544
24 5.75 5.40 9.50 5.50 6.80 6.80 7.0363 6.5363
25 5.75 5.40 9.00 5.50 6.75 6.75 7.0000 6.5000
26 5.75 5.36 8.70 5.50 6.70 6.70 7.0000 6.5000
27 5.75 5.32 8.40 5.50 6.65 6.65 7.0000 6.5000
28 5.75 5.28 8.10 5.50 6.60 6.60 7.0000 6.5000
29 5.75 5.24 7.80 5.50 6.55 6.55 7.0000 6.5000
30 5.75 5.20 7.50 5.50 6.50 6.50 7.0000 6.5000
31 5.75 5.16 7.30 5.50 6.45 6.45 7.0000 6.5000
32 5.75 5.12 7.10 5.50 6.40 6.40 7.0000 6.5000
33 5.75 5.08 6.90 5.50 6.35 6.35 7.0000 6.5000
34 5.75 5.04 6.70 5.50 6.30 6.30 7.0000 6.5000
35 5.75 5.00 6.50 5.50 6.25 6.25 7.0000 6.5000
36 5.75 4.96 6.30 5.50 6.20 6.20 6.9019 6.4019
37 5.75 4.92 6.10 5.50 6.15 6.15 6.8074 6.3074
38 5.75 4.88 5.90 5.40 6.10 6.10 6.7125 6.2125
39 5.75 4.84 5.70 5.30 6.05 6.05 6.6054 6.1054
40 5.75 4.80 5.50 5.20 6.00 6.00 6.5000 6.0000
41 5.75 4.76 5.40 5.10 5.90 5.95 6.3540 5.8540
42 5.75 4.72 5.30 5.00 5.80 5.90 6.2087 5.7087
43 5.65 4.68 5.20 4.90 5.70 5.85 6.0622 5.5622
44 5.55 4.64 5.10 4.80 5.60 5.80 5.9048 5.4078
45 5.45 4.60 5.00 4.70 5.50 5.75 5.7500 5.2500
46 5.35 4.56 4.95 4.60 5.40 5.70 5.6940 5.1940
47 5.25 4.52 4.90 4.50 5.30 5.65 5.6375 5.1375
48 5.15 4.48 4.85 4.50 5.20 5.60 5.5822 5.0822
49 5.05 4.44 4.80 4.50 5.10 5.55 5.5404 5.0404
50 4.95 4.40 4.75 4.50 5.00 5.50 5.5000 5.0000
51 4.85 4.36 4.75 4.50 4.90 5.45 5.4384 4.9384
52 4.75 4.32 4.75 4.50 4.80 5.40 5.3776 4.8776
53 4.65 4.28 4.75 4.50 4.70 5.35 5.3167 4.8167
54 4.55 4.24 4.75 4.50 4.60 5.30 5.2826 4.7826
55 4.45 4.20 4.75 4.50 4.50 5.25 5.2500 4.7500
56 4.35 4.16 4.75 4.50 4.40 5.20 5.2500 4.7500
57 4.25 4.12 4.75 4.50 4.30 5.15 5.2500 4.7500
58 4.25 4.08 4.75 4.60 4.20 5.10 5.2500 4.7500
59 4.25 4.04 4.75 4.70 4.10 5.05 5.2500 4.7500
60 4.25 4.00 4.75 4.80 4.00 5.00 5.2500 4.7500
61 4.25 4.00 4.75 4.90 3.90 5.00 5.2500 4.7500
62 4.25 4.00 4.75 5.00 3.80 5.00 5.2500 4.7500
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63 4.25 4.00 4.75 5.10 3.70 5.00 5.2500 4.7500
64 4.25 4.00 4.75 5.20 3.60 5.00 5.2500 4.7500
65 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
66 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
67 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
68 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
69 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
70 4.25 4.00 4.75 5.20 3.50 5.00 5.2500 4.7500
71 4.25 4.00 5.20
(c) Before
July 2, 2010, the actuarial valuation must use the applicable following payroll
growth assumption for calculating the amortization requirement for the unfunded
actuarial accrued liability where the amortization retirement is calculated as
a level percentage of an increasing payroll:
payroll
growth assumption
plan
general state employees retirement plan 4.50%
correctional state employees retirement plan 4.50
State Patrol retirement plan 4.50
legislators retirement plan 4.50
judges retirement plan 4.00
general public employees retirement plan 4.50
public employees police and fire retirement plan 4.50
local government correctional service retirement plan 4.50
teachers retirement plan 4.50
Duluth teachers retirement plan 4.50
St. Paul teachers retirement plan 5.00
(d) After July 1, 2010, the assumptions set forth in
paragraphs (b) and (c) continue to apply, unless a different salary assumption
or a different payroll increase assumption:
(1) has been proposed by the governing board of the
applicable retirement plan;
(2) is accompanied by the concurring recommendation of
the actuary retained under section 356.214, subdivision 1, if applicable, or by
the approved actuary preparing the most recent actuarial valuation report if
section 356.214 does not apply; and
(3) has been approved or deemed approved under
subdivision 18.
Sec. 20.
Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, is
amended to read:
Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating
the level normal cost, the actuarial valuation of the retirement plan must
contain an exhibit for financial reporting purposes indicating the additional
annual contribution sufficient to amortize the unfunded actuarial accrued
liability and must contain an exhibit for contribution determination purposes
indicating the additional contribution sufficient to amortize the unfunded
actuarial accrued liability. For the
retirement plans listed in subdivision 8, paragraph (c), but excluding the
MERF division of the Public Employees Retirement Association, the
additional contribution must be calculated on a level percentage of covered
payroll basis by the established date for full funding in effect when the
valuation is prepared, assuming annual payroll growth at the applicable percentage
rate set forth in subdivision 8, paragraph (c).
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For all other
retirement plans and for the MERF division of the Public Employees
Retirement Association, the additional annual contribution must be
calculated on a level annual dollar amount basis.
(b) For any retirement plan other than the Minneapolis
Employees Retirement Fund, the general employees a retirement plan of
the Public Employees Retirement Association, and the St. Paul Teachers
Retirement Fund Association governed by paragraph (d), (e), (f), (g),
(h), (i), or (j), if there has not been a change in the actuarial
assumptions used for calculating the actuarial accrued liability of the fund, a
change in the benefit plan governing annuities and benefits payable from the
fund, a change in the actuarial cost method used in calculating the actuarial
accrued liability of all or a portion of the fund, or a combination of the
three, which change or changes by itself or by themselves without inclusion of
any other items of increase or decrease produce a net increase in the unfunded
actuarial accrued liability of the fund, the established date for full funding
is the first actuarial valuation date occurring after June 1, 2020.
(c) For any retirement plan other than the Minneapolis
Employees Retirement Fund and the general employees retirement plan of the
Public Employees Retirement Association, if there has been a change in any or
all of the actuarial assumptions used for calculating the actuarial accrued
liability of the fund, a change in the benefit plan governing annuities and
benefits payable from the fund, a change in the actuarial cost method used in
calculating the actuarial accrued liability of all or a portion of the fund, or
a combination of the three, and the change or changes, by itself or by
themselves and without inclusion of any other items of increase or decrease,
produce a net increase in the unfunded actuarial accrued liability in the fund,
the established date for full funding must be determined using the following
procedure:
(i) the unfunded actuarial accrued liability of the fund
must be determined in accordance with the plan provisions governing annuities
and retirement benefits and the actuarial assumptions in effect before an
applicable change;
(ii) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the unfunded actuarial
accrued liability amount determined under item (i) by the established date for
full funding in effect before the change must be calculated using the interest
assumption specified in subdivision 8 in effect before the change;
(iii) the unfunded actuarial accrued liability of the
fund must be determined in accordance with any new plan provisions governing
annuities and benefits payable from the fund and any new actuarial assumptions
and the remaining plan provisions governing annuities and benefits payable from
the fund and actuarial assumptions in effect before the change;
(iv) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the difference between
the unfunded actuarial accrued liability amount calculated under item (i) and
the unfunded actuarial accrued liability amount calculated under item (iii)
over a period of 30 years from the end of the plan year in which the applicable
change is effective must be calculated using the applicable interest assumption
specified in subdivision 8 in effect after any applicable change;
(v) the level annual dollar or level percentage
amortization contribution under item (iv) must be added to the level annual
dollar amortization contribution or level percentage calculated under item
(ii);
(vi) the period in which the unfunded actuarial accrued
liability amount determined in item (iii) is amortized by the total level
annual dollar or level percentage amortization contribution computed under item
(v) must be calculated using the interest assumption specified in subdivision 8
in effect after any applicable change, rounded to the nearest integral number
of years, but not to exceed 30 years from the end of the plan year in which the
determination of the established date for full funding using the procedure set
forth in this clause is made and not to be less than the period of years
beginning in the plan year in which the determination of the established date
for full funding using the procedure set forth in this clause is made and
ending by the date for full funding in effect before the change; and
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(vii) the period
determined under item (vi) must be added to the date as of which the actuarial
valuation was prepared and the date obtained is the new established date for
full funding.
(d) For the Minneapolis Employees Retirement Fund
MERF division of the Public Employees Retirement Association, the
established date for full funding is June 30, 2020 2031.
(e) For the general employees retirement plan of the
Public Employees Retirement Association, the established date for full funding is
June 30, 2031.
(f) For the Teachers Retirement Association, the
established date for full funding is June 30, 2037.
(g) For the correctional state employees retirement
plan of the Minnesota State Retirement System, the established date for full funding
is June 30, 2038.
(h) For the judges retirement plan, the established
date for full funding is June 30, 2038.
(i) For the public employees police and fire retirement
plan, the established date for full funding is June 30, 2038.
(j) For the St. Paul Teachers Retirement Fund
Association, the established date for full funding is June 30 of the 25th year
from the valuation date. In addition to
other requirements of this chapter, the annual actuarial valuation shall
must contain an exhibit indicating the funded ratio and the deficiency or
sufficiency in annual contributions when comparing liabilities to the market
value of the assets of the fund as of the close of the most recent fiscal year.
(k) For the retirement plans for which the annual
actuarial valuation indicates an excess of valuation assets over the actuarial
accrued liability, the valuation assets in excess of the actuarial accrued
liability must be recognized as a reduction in the current contribution
requirements by an amount equal to the amortization of the excess expressed as
a level percentage of pay over a 30-year period beginning anew with each annual
actuarial valuation of the plan.
Sec. 21.
Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to
read:
Subd. 3. State contributions. (a) Subject to the limitation set
forth in paragraph (c), the state shall pay to the MERF division account
of the Public Employees Retirement Association with respect to the former Minneapolis
Employees Retirement Fund annually an amount equal to the amount calculated
under paragraph (b).
(b) The payment amount is an amount equal to the
financial requirements of the Minneapolis Employees Retirement Fund MERF
division of the Public Employees Retirement Association reported in the
actuarial valuation of the fund general employees retirement plan of
the Public Employees Retirement Association prepared by the actuary
retained under section 356.214 consistent with section 356.215 for the most
recent year but based on a target date for full amortization of the unfunded
actuarial accrued liabilities by June 30, 2020 2031, less the
amount of employee contributions required under section 422A.10
353.50, subdivision 7, paragraph (b), and the amount of employer
contributions required under subdivisions 1a, 2, and 2a section
353.50, subdivision 7, paragraphs (c) and (d). Payments shall must be made
September 15 annually.
(c) The annual state contribution under this
subdivision may not exceed $9,000,000, plus the cost of the annual supplemental
benefit determined under Minnesota Statutes 2008, section 356.43,
through June 30, 2012, and may not exceed $9,000,000, plus the cost of the
annual supplemental benefit determined under Minnesota Statutes 2008, section
356.43, plus $15,000,000 annually after June 30, 2012, and until June 30, 2031.
(d) Annually and after June 30, 2012, if the
amount determined under paragraph (b) exceeds $9,000,000 the
applicable maximum amount specified in paragraph (c), the excess must be allocated
to and paid to the fund by the employers identified in Minnesota Statutes
2008, section 422A.101, subdivisions 1a and, 2, other than
units of
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
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metropolitan
government
and 2a. Each employer's share of the excess is
proportionate to the employer's share of the fund's unfunded actuarial accrued
liability as disclosed in the annual actuarial valuation prepared by the
actuary retained under section 356.214 compared to the total unfunded actuarial
accrued liability as of July 1, 2009, attributed to all employers
identified in Minnesota Statutes 2008, section 422A.101, subdivisions 1a
and 2, other than units of metropolitan government. Payments must be made in equal
installments as set forth in paragraph (b).
(e) State contributions under this section end on
September 15, 2031, or on September 1 following the first date on which the current
assets of the MERF division of the Public Employees Retirement Association
equal or exceed the actuarial accrued liability of the MERF division of the
Public Employees Retirement Association, whichever occurs earlier.
Sec. 22.
Minnesota Statutes 2008, section 422A.26, is amended to read:
422A.26
COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.
Notwithstanding section 422A.09, or any other
law to the contrary, any person whose employment by, or assumption of a
position as an appointed or elected officer of, the city of Minneapolis, any of
the boards, departments, or commissions operated as a department of the city of
Minneapolis or independently if financed in whole or in part by funds of the
city of Minneapolis, the Metropolitan Airports Commission, the former Minneapolis
Employees Retirement Fund, or Special School District Number 1 if the person is
not a member of the Minneapolis Teachers Retirement Fund
Association by virtue of that employment or position, initially commences on or
after July 1, 1979 shall be, is a member of the general
employees retirement plan of the Public Employees Retirement Association
unless excluded from membership pursuant to under section 353.01,
subdivision 2b. In no event shall
there be any new members of the contributing class of the Minneapolis employees
fund on or after July 1, 1979.
Sec. 23. JULY 1, 2010, MERF DIVISION ACTUARIAL
VALUATION ASSUMPTIONS.
The approved actuary retained by the Minneapolis
Employees Retirement Fund shall compare the actuarial assumptions to be used
for the July 1, 2010, actuarial valuation of the general employees retirement
plan of the Public Employees Retirement Association with the actuarial
assumptions used to prepare the July 1, 2009, actuarial valuation of the Minneapolis
Employees Retirement Fund and, on or before July 1, 2010, shall recommend to
the approved actuary retained by the Public Employees Retirement Association
and to the Legislative Commission on Pensions and Retirement the actuarial
assumptions that the actuary believes would be appropriate for the MERF
division portion of the actuarial valuation of the general employees retirement
plan of the Public Employees Retirement Association. Any actuarial assumption changes related to
the MERF division must be approved under Minnesota Statutes, section 356.215,
subdivision 18.
Sec. 24. MINNEAPOLIS MUNICIPAL RETIREMENT
ASSOCIATION.
(a) The administrative consolidation of the former
Minneapolis Employees Retirement Fund into the general employees retirement plan
of the Public Employees Retirement Association and the merger of the MERF
division of the Public Employees Retirement Association into the general
employees retirement plan of the Public Employees Retirement Association does
not affect the function of the Minneapolis Municipal Retirement Association, a
nonprofit corporation, to monitor the administration of the retirement coverage
for former members of the former Minneapolis Employees Retirement Fund.
(b) Nothing in this article entitles the Minneapolis
Municipal Retirement Association to receive any revenue derived from taxes or
obligates the Public Employees Retirement Association to undertake any special
duties with respect to the corporation.
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Sec. 25. TRANSFER
OF MERF EMPLOYEES.
(a) Unless the employee elects the severance pay
option under paragraph (c), full-time employees of the Minneapolis Employees
Retirement Fund first employed before June 30, 2008, and employed full time by
the Minneapolis Employees Retirement Fund on June 29, 2010, with the employment
title of benefits coordinator, are transferred to employment by the city of
Minneapolis on July 1, 2010. The chief
human relations official of the city of Minneapolis shall place the transferred
employee in an appropriate employment position based on the employee's
education and employment experience.
Transferred employees must have their accumulated, but unused, vacation
and sick leave balances as of June 30, 2010, posted to the individual accounts
with the new employer. The transferred
employees must receive length of service credit for time served with the
Minneapolis Employees Retirement Fund.
The transferred employee must be given the opportunity as of the date of
transfer to be covered for all health and other insurance benefits offered by
the new employer. Upon the transfer of
the employee, the Minneapolis Employees Retirement Fund shall transfer assets
to the city of Minneapolis equal to the present value of any accumulated unused
vacation or sick leave balances as of the date of transfer.
(b) Unless the employee elects the severance pay option
under paragraph (c), full-time employees of the Minneapolis Employees
Retirement Fund first employed before June 30, 2008, and employed full time by
the Minneapolis Employees Retirement Fund on June 29, 2010, with the employment
title of accounting manager or accountant II are transferred to employment by
the Public Employees Retirement Association on July 1, 2010. The chief human relations official of the
Public Employees Retirement Association shall place the transferred employee in
an appropriate employment position based on the employee's education and
employment experience. Transferred
employees must have their accumulated, but unused, vacation and sick leave
balances as of June 30, 2010, posted to the individual accounts with the new
employer. The transferred employees must
receive length of service credit for time served with the Minneapolis Employees
Retirement Fund. The transferred
employee must be given the opportunity as of the date of transfer to be covered
for all health and other insurance benefits offered by the new employer. Upon the transfer of the employee, the
executive director of the Public Employees Retirement Association shall deduct
from any assets transferred under section 353.50 an amount equal to the present
value of any accumulated unused vacation or sick leave balances as of the date
of transfer.
(c) An employee covered by paragraph (a) or (b) who
elects not to transfer to the new employer unit is granted severance pay in an amount
equivalent to one year of salary based on the last annual salary rate received
by the employee. The election must be
made prior to June 30, 2010, and is irrevocable. The severance pay is payable from the
Minneapolis Employees Retirement Fund on June 30, 2010.
Sec. 26. MINNEAPOLIS EMPLOYEES RETIREMENT FUND.
$10,000,000 in fiscal year 2010 is appropriated to the
Minneapolis employees retirement fund, and is payable to the Minneapolis
employees retirement fund on or before June 29, 2010. This is a onetime appropriation, and is in
addition to the amounts paid by the state in fiscal year 2010 under Minnesota
Statutes, section 422A.101, subdivision 2.
Sec. 27. REVISOR'S INSTRUCTION.
In the next and future editions of Minnesota Statutes,
the revisor of statutes shall renumber Minnesota Statutes, section 422A.101,
subdivision 3, as Minnesota Statutes, section 353.505, and shall renumber
Minnesota Statutes, section 422A.26, as Minnesota Statutes, section
353.855. The revisor of statutes shall
make conforming changes in Minnesota Statutes and Minnesota Rules consistent
with the renumbering.
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Sec. 28. REPEALER.
Minnesota Statutes 2008,
sections 13.63, subdivision 1; 69.011, subdivision 2a; 356.43; 422A.01,
subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18;
422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5,
6, and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1;
422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12;
422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156;
422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18,
subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; 422A.20; 422A.21; 422A.22,
subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11,
and 12; 422A.231; 422A.24; and 422A.25, are repealed.
Minnesota Statutes 2009
Supplement, sections 422A.06, subdivision 8; and 422A.08, subdivision 5, are
repealed.
Sec. 29. EFFECTIVE
DATE.
(a) Sections 1 to 25, 27,
and 28 are effective June 30, 2010.
(b) Section 26 is effective
the day following final enactment.
ARTICLE 13
CONFORMING CHANGES RELATED
TO THE MERF ADMINISTRATIVE CONSOLIDATION
Section 1. Minnesota Statutes 2009 Supplement, section
6.67, is amended to read:
6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
Whenever a public accountant
in the course of auditing the books and affairs of a political subdivision or a
local public pension plan governed by section 69.77, sections 69.771 to 69.775,
or chapter 354A, 422A, 423B, 423C, or 424A, discovers evidence pointing
to nonfeasance, misfeasance, or malfeasance, on the part of an officer or
employee in the conduct of duties and affairs, the public accountant shall
promptly make a report of such discovery to the state auditor and the county
attorney of the county in which the governmental unit is situated and the
public accountant shall also furnish a copy of the report of audit upon
completion to said officers. The county
attorney shall act on such report in the same manner as required by law for
reports made to the county attorney by the state auditor.
Sec. 2. Minnesota Statutes 2008, section 11A.23,
subdivision 4, is amended to read:
Subd. 4. Covered
retirement funds and plans. The
provisions of this section shall apply to the following retirement funds
and plans:
(1) Board of Trustees of the
Minnesota State Colleges and Universities supplemental retirement plan
established under chapter 354C;
(2) state employees
retirement fund established pursuant to chapter 352;
(3) correctional employees
retirement plan established pursuant to chapter 352;
(4) State Patrol retirement
fund established pursuant to chapter 352B;
(5) unclassified employees
retirement plan established pursuant to chapter 352D;
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(6) public
general employees retirement fund established pursuant to chapter 353;
(7) public employees police and fire fund established
pursuant to chapter 353;
(8) teachers' retirement fund established pursuant to
chapter 354;
(9) judges' retirement fund established pursuant to
chapter 490; and
(10) any other funds required by law to be invested by
the board.
Sec. 3.
Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to
read:
Subdivision 1. In executive branch, local government. All meetings, including executive
sessions, must be open to the public
(a) of a state
(1) agency,
(2) board,
(3) commission, or
(4) department,
when
required or permitted by law to transact public business in a meeting;
(b) of the governing body of a
(1) school district however organized,
(2) unorganized territory,
(3) county,
(4) statutory or home rule charter city,
(5) town, or
(6) other public body;
(c) of any
(1) committee,
(2) subcommittee,
(3) board,
(4) department, or
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(5) commission,
of a public body; and
(d) of the governing body or
a committee of:
(1) a statewide public
pension plan defined in section 356A.01, subdivision 24; or
(2) a local public pension
plan governed by section 69.77, sections 69.771 to 69.775, or chapter 354A, 422A,
or 423B.
Sec. 4. Minnesota Statutes 2008, section 43A.17,
subdivision 9, is amended to read:
Subd. 9. Political
subdivision compensation limit. (a)
The salary and the value of all other forms of compensation of a person
employed by a political subdivision of this state, excluding a school district,
or employed under section 422A.03 may not exceed 110 percent of the
salary of the governor as set under section 15A.082, except as provided in this
subdivision. For purposes of this
subdivision, "political subdivision of this state" includes a
statutory or home rule charter city, county, town, metropolitan or regional
agency, or other political subdivision, but does not include a hospital,
clinic, or health maintenance organization owned by such a governmental unit.
(b) Beginning in 2006, the
limit in paragraph (a) shall must be adjusted annually in
January. The limit shall must
equal the limit for the prior year increased by the percentage increase, if
any, in the Consumer Price Index for all-urban consumers from October of the
second prior year to October of the immediately prior year.
(c) Deferred compensation
and payroll allocations to purchase an individual annuity contract for an
employee are included in determining the employee's salary. Other forms of compensation which shall
must be included to determine an employee's total compensation are all
other direct and indirect items of compensation which are not specifically
excluded by this subdivision. Other
forms of compensation which shall must not be included in a
determination of an employee's total compensation for the purposes of this
subdivision are:
(1) employee benefits that
are also provided for the majority of all other full-time employees of the
political subdivision, vacation and sick leave allowances, health and dental
insurance, disability insurance, term life insurance, and pension benefits or
like benefits the cost of which is borne by the employee or which is not
subject to tax as income under the Internal Revenue Code of 1986;
(2) dues paid to
organizations that are of a civic, professional, educational, or governmental
nature; and
(3) reimbursement for actual
expenses incurred by the employee which the governing body determines to be
directly related to the performance of job responsibilities, including any
relocation expenses paid during the initial year of employment.
The value of other forms of
compensation shall be is the annual cost to the political
subdivision for the provision of the compensation.
(d) The salary of a medical
doctor or doctor of osteopathy occupying a position that the governing body of
the political subdivision has determined requires an M.D. or D.O.
degree is excluded from the limitation in this subdivision.
(e) The commissioner may
increase the limitation in this subdivision for a position that the
commissioner has determined requires special expertise necessitating a higher
salary to attract or retain a qualified person.
The commissioner shall review each proposed increase giving due
consideration to salary rates paid to other persons
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with similar
responsibilities in the state and nation.
The commissioner may not increase the limitation until the commissioner has
presented the proposed increase to the Legislative Coordinating Commission and
received the commission's recommendation on it.
The recommendation is advisory only.
If the commission does not give its recommendation on a proposed
increase within 30 days from its receipt of the proposal, the commission is
deemed to have made no recommendation.
If the commissioner grants or granted an increase under this paragraph,
the new limitation shall must be adjusted beginning in August
2005 and in each subsequent calendar year in January by the percentage increase
equal to the percentage increase, if any, in the Consumer Price Index for
all-urban consumers from October of the second prior year to October of the
immediately prior year.
Sec. 5. Minnesota Statutes 2008, section 43A.316,
subdivision 8, is amended to read:
Subd. 8. Continuation
of coverage. (a) A former employee
of an employer participating in the program who is receiving a public pension
disability benefit or an annuity or has met the age and service requirements
necessary to receive an annuity under chapter 353, 353C, 354, 354A, 356, 422A,
423, 423A, or 424, or Minnesota Statutes 2008, chapter 422A, and
the former employee's dependents, are eligible to participate in the
program. This participation is at the
person's expense unless a collective bargaining agreement or personnel policy
provides otherwise. Premiums for these
participants must be established by the commissioner.
The commissioner may provide
policy exclusions for preexisting conditions only when there is a break in
coverage between a participant's coverage under the employment-based group
insurance program and the participant's coverage under this section. An employer shall notify an employee of the
option to participate under this paragraph no later than the effective date of
retirement. The retired employee or the
employer of a participating group on behalf of a current or retired employee
shall notify the commissioner within 30 days of the effective date of
retirement of intent to participate in the program according to the rules
established by the commissioner.
(b) The spouse of a deceased
employee or former employee may purchase the benefits provided at premiums
established by the commissioner if the spouse was a dependent under the
employee's or former employee's coverage under this section at the time of the
death. The spouse remains eligible to
participate in the program as long as the group that included the deceased
employee or former employee participates in the program. Coverage under this clause must be coordinated
with relevant insurance benefits provided through the federally sponsored
Medicare program.
(c) The program benefits
must continue in the event of strike permitted by section 179A.18, if the
exclusive representative chooses to have coverage continue and the employee
pays the total monthly premiums when due.
(d) A participant who
discontinues coverage may not reenroll.
Persons participating under these
paragraphs shall make appropriate premium payments in the time and manner
established by the commissioner.
Sec. 6. Minnesota Statutes 2009 Supplement, section
69.011, subdivision 1, is amended to read:
Subdivision 1. Definitions. Unless the language or context clearly
indicates that a different meaning is intended, the following words and terms,
for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the
meanings ascribed to them:
(a) "Commissioner"
means the commissioner of revenue.
(b) "Municipality"
means:
(1) a home rule charter or
statutory city;
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(2) an organized
town;
(3) a park district subject to chapter 398;
(4) the University of Minnesota;
(5) for purposes of the fire state aid program only,
an American Indian tribal government entity located within a federally
recognized American Indian reservation;
(6) for purposes of the police state aid program only,
an American Indian tribal government with a tribal police department which
exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
(7) for purposes of the police state aid program only,
the Metropolitan Airports Commission with respect to peace officers covered
under chapter 422A; and
(8) for purposes of the police state aid program only,
the Department of Natural Resources and the Department of Public Safety with
respect to peace officers covered under chapter 352B.
(c) "Minnesota Firetown Premium Report"
means a form prescribed by the commissioner containing space for reporting by
insurers of fire, lightning, sprinkler leakage and extended coverage premiums
received upon risks located or to be performed in this state less return
premiums and dividends.
(d) "Firetown" means the area serviced by
any municipality having a qualified fire department or a qualified incorporated
fire department having a subsidiary volunteer firefighters' relief association.
(e) "Market value" means latest available
market value of all property in a taxing jurisdiction, whether the property is
subject to taxation, or exempt from ad valorem taxation obtained from
information which appears on abstracts filed with the commissioner of revenue
or equalized by the State Board of Equalization.
(f) "Minnesota Aid to Police Premium Report"
means a form prescribed by the commissioner for reporting by each fire and
casualty insurer of all premiums received upon direct business received by it
in this state, or by its agents for it, in cash or otherwise, during the
preceding calendar year, with reference to insurance written for insuring
against the perils contained in auto insurance coverages as reported in the Minnesota
business schedule of the annual financial statement which each insurer is
required to file with the commissioner in accordance with the governing laws or
rules less return premiums and dividends.
(g) "Peace officer" means any person:
(1) whose primary source of income derived from wages
is from direct employment by a municipality or county as a law enforcement
officer on a full-time basis of not less than 30 hours per week;
(2) who has been employed for a minimum of six months
prior to December 31 preceding the date of the current year's certification
under subdivision 2, clause (b);
(3) who is sworn to enforce the general criminal laws
of the state and local ordinances;
(4) who is licensed by the Peace Officers Standards
and Training Board and is authorized to arrest with a warrant; and
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(5) who is a member
of a local police relief association to which section 69.77 applies
the Minneapolis Police Relief Association, the State Patrol retirement
plan, or the public employees police and fire fund, or the
Minneapolis Employees Retirement Fund.
(h) "Full-time equivalent number of peace officers
providing contract service" means the integral or fractional number of
peace officers which would be necessary to provide the contract service if all
peace officers providing service were employed on a full-time basis as defined
by the employing unit and the municipality receiving the contract service.
(i) "Retirement benefits other than a service
pension" means any disbursement authorized under section 424A.05,
subdivision 3, clauses (2) and (3).
(j) "Municipal clerk, municipal clerk-treasurer,
or county auditor" means the person who was elected or appointed to the
specified position or, in the absence of the person, another person who is
designated by the applicable governing body.
In a park district, the clerk is the secretary of the board of park
district commissioners. In the case of
the University of Minnesota, the clerk is that official designated by the Board
of Regents. For the Metropolitan
Airports Commission, the clerk is the person designated by the commission. For the Department of Natural Resources or
the Department of Public Safety, the clerk is the respective commissioner. For a tribal police department which
exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93,
the clerk is the person designated by the applicable American Indian tribal
government.
(k) "Voluntary statewide lump-sum volunteer
firefighter retirement plan" means the retirement plan established by
chapter 353G.
Sec. 7.
Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to
read:
Subd. 10. Reduction in police state aid apportionment. (a) The commissioner of revenue shall
reduce the apportionment of police state aid under subdivisions 5, paragraph
(b), 6, and 7a, for eligible employer units by any excess police state aid.
(b) "Excess police state aid" is:
(1) for counties and for municipalities in which police
retirement coverage is provided wholly by the public employees police and fire
fund and all police officers are members of the plan governed by sections
353.63 to 353.657, the amount in excess of the employer's total prior calendar
year obligation as defined in paragraph (c), as certified by the executive
director of the Public Employees Retirement Association;
(2) for municipalities in which police retirement
coverage is provided in part by the public employees police and fire fund
governed by sections 353.63 to 353.657 and in part by a local police
consolidation account governed by chapter 353A, and established before March 2,
1999, for which the municipality declined merger under section 353.665,
subdivision 1, or established after March 1, 1999, the amount in excess of the
employer's total prior calendar year obligation as defined in paragraph (c),
plus the amount of the employer's total prior calendar year obligation under
section 353A.09, subdivision 5, paragraphs (a) and (b), as certified by the
executive director of the Public Employees Retirement Association;
(3) for municipalities in which police retirement
coverage is provided by the public employees police and fire plan governed by sections
353.63 to 353.657, in which police retirement coverage was provided by a police
consolidation account under chapter 353A before July 1, 1999, and for which the
municipality has an additional municipal contribution under section 353.665,
subdivision 8, paragraph (b), the amount in excess of the employer's total
prior calendar year obligation as defined in paragraph (c), plus the amount of
any additional municipal contribution under section 353.665, subdivision 8,
paragraph (b), until the year 2010, as certified by the executive director of
the Public Employees Retirement Association;
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(4) for
municipalities in which police retirement coverage is provided in part by the
public employees police and fire fund governed by sections 353.63 to 353.657
and in part by a local police relief association governed by sections 69.77 and
423A.01, the amount in excess of the employer's total prior calendar year
obligation as defined in paragraph (c), as certified by the executive director
of the public employees retirement association, plus the amount of the
financial requirements of the relief association certified to the applicable
municipality during the prior calendar year under section 69.77, subdivisions 4
and 5, reduced by the amount of member contributions deducted from the covered
salary of the relief association during the prior calendar year under section
69.77, subdivision 3, as certified by the chief administrative officer of the
applicable municipality;
(5) for the Metropolitan
Airports Commission, if there are police officers hired before July 1, 1978,
with retirement coverage by the Minneapolis Employees Retirement Fund
remaining, the amount in excess of the commission's total prior calendar
year obligation as defined in paragraph (c), as certified by the executive
director of the Public Employees Retirement Association, plus the amount determined
by expressing the commission's total prior calendar year contribution to the
Minneapolis Employees Retirement Fund under section 422A.101, subdivisions 2
and 2a, as a percentage of the commission's total prior calendar year covered
payroll for commission employees covered by the Minneapolis Employees
Retirement Fund and applying that percentage to the commission's total prior
calendar year covered payroll for commission police officers covered by the
Minneapolis Employees Retirement Fund, as certified by the chief administrative
officer of the Metropolitan Airports Commission; and
(6) for the Department of
Natural Resources and for the Department of Public Safety, the amount in excess
of the employer's total prior calendar year obligation under section 352B.02,
subdivision 1c, for plan members who are peace officers under section 69.011,
subdivision 1, clause (g), as certified by the executive director of the
Minnesota State Retirement System.
(c) The employer's total
prior calendar year obligation with respect to the public employees police and
fire plan is the total prior calendar year obligation under section 353.65,
subdivision 3, for police officers as defined in section 353.64, subdivision 2,
and the actual total prior calendar year obligation under section 353.65,
subdivision 3, for firefighters, as defined in section 353.64, subdivision 3,
but not to exceed for those firefighters the applicable following amounts:
Municipality Maximum
Amount
Albert Lea $54,157.01
Anoka 10,399.31
Apple Valley 5,442.44
Austin 49,864.73
Bemidji 27,671.38
Brooklyn Center 6,605.92
Brooklyn Park 24,002.26
Burnsville 15,956.00
Cloquet 4,260.49
Coon Rapids 39,920.00
Cottage Grove 8,588.48
Crystal 5,855.00
East Grand Forks 51,009.88
Edina 32,251.00
Elk River 5,216.55
Ely 13,584.16
Eveleth 16,288.27
Fergus Falls 6,742.00
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Fridley 33,420.64
Golden Valley 11,744.61
Hastings 16,561.00
Hopkins 4,324.23
International Falls 14,400.69
Lakeville 782.35
Lino Lakes 5,324.00
Little Falls 7,889.41
Maple Grove 6,707.54
Maplewood 8,476.69
Minnetonka 10,403.00
Montevideo 1,307.66
Moorhead 68,069.26
New Hope 6,739.72
North St. Paul 4,241.14
Northfield 770.63
Owatonna 37,292.67
Plymouth 6,754.71
Red Wing 3,504.01
Richfield 53,757.96
Rosemont Rosemount 1,712.55
Roseville 9,854.51
St. Anthony 33,055.00
St. Louis Park 53,643.11
Thief River Falls 28,365.04
Virginia 31,164.46
Waseca 11,135.17
West St. Paul 15,707.20
White Bear Lake 6,521.04
Woodbury 3,613.00
any other municipality 0.00
(d) The total amount of excess
police state aid must be deposited in the excess police state-aid account in
the general fund, administered and distributed as provided in subdivision 11.
Sec. 8. Minnesota Statutes 2009 Supplement, section
69.031, subdivision 5, is amended to read:
Subd. 5. Deposit
of state aid. (a) If the
municipality or the independent nonprofit firefighting corporation is covered by
the voluntary statewide lump-sum volunteer firefighter retirement plan under
chapter 353G, the executive director shall credit the fire state aid against
future municipal contribution requirements under section 353G.08 and shall
notify the municipality or independent nonprofit firefighting corporation of
the fire state aid so credited at least annually. If the municipality or the independent
nonprofit firefighting corporation is not covered by the voluntary statewide
lump-sum volunteer firefighter retirement plan, the municipal treasurer shall,
within 30 days after receipt, transmit the fire state aid to the treasurer of
the duly incorporated firefighters' relief association if there is one
organized and the association has filed a financial report with the
municipality. If the relief association
has not filed a financial report with the municipality, the municipal treasurer
shall delay transmission of the fire state aid to the relief association until
the complete financial report is filed.
If the municipality or independent nonprofit firefighting corporation is
not covered by the voluntary statewide lump-sum volunteer firefighter
retirement plan, if there is no relief association organized, or if the
association has dissolved or has been removed as trustees of state aid, then
the treasurer of the municipality shall deposit the money in the municipal
treasury and the money may be disbursed only for the purposes and in the manner
set forth in section 424A.08 or for the payment of the employer contribution
requirement with respect to firefighters covered by the public employees police
and fire retirement plan under section 353.65, subdivision 3.
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(b) The municipal
treasurer, upon receipt of the police state aid, shall disburse the police
state aid in the following manner:
(1) For a municipality in
which a local police relief association exists and all peace officers are
members of the association, the total state aid must be transmitted to the
treasurer of the relief association within 30 days of the date of receipt, and
the treasurer of the relief association shall immediately deposit the total
state aid in the special fund of the relief association;
(2) For a municipality in
which police retirement coverage is provided by the public employees police and
fire fund and all peace officers are members of the fund, including
municipalities covered by section 353.665, the total state aid must be applied
toward the municipality's employer contribution to the public employees police
and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8,
paragraph (b), if applicable; or
(3) For a municipality other
than a city of the first class with a population of more than 300,000 in which
both a police relief association exists and police retirement coverage is
provided in part by the public employees police and fire fund, the municipality
may elect at its option to transmit the total state aid to the treasurer of the
relief association as provided in clause (1), to use the total state aid to
apply toward the municipality's employer contribution to the public employees
police and fire fund subject to all the provisions set forth in clause (2), or
to allot the total state aid proportionately to be transmitted to the police
relief association as provided in this subdivision and to apply toward the
municipality's employer contribution to the public employees police and fire
fund subject to the provisions of clause (2) on the basis of the respective
number of active full-time peace officers, as defined in section 69.011,
subdivision 1, clause (g).
For a city of the first
class with a population of more than 300,000, in addition, the city may elect
to allot the appropriate portion of the total police state aid to apply toward
the employer contribution of the city to the public employees police and fire
fund based on the covered salary of police officers covered by the fund each
payroll period and to transmit the balance to the police relief association; or
(4) For a municipality in
which police retirement coverage is provided in part by the public employees
police and fire fund and in part by a local police consolidation account
governed by chapter 353A and established before March 2, 1999, for which the
municipality declined merger under section 353.665, subdivision 1, or
established after March 1, 1999, the total police state aid must be applied
towards the municipality's total employer contribution to the public employees
police and fire fund and to the local police consolidation account under
sections 353.65, subdivision 3, and 353A.09, subdivision 5.
(c) The county treasurer,
upon receipt of the police state aid for the county, shall apply the total
state aid toward the county's employer contribution to the public employees
police and fire fund under section 353.65, subdivision 3.
(d) The designated
Metropolitan Airports Commission official, upon receipt of the police state aid
for the Metropolitan Airports Commission, shall apply the total police state
aid first toward the commission's employer contribution for police
officers to the Minneapolis Employees Retirement Fund under section
422A.101, subdivision 2a, and, if there is any amount of police state aid
remaining, shall apply that remainder toward the commission's employer
contribution for police officers to the public employees police and fire
plan under section 353.65, subdivision 3.
(e) The police state aid
apportioned to the Departments of Public Safety and Natural Resources under
section 69.021, subdivision 7a, is appropriated to the commissioner of
management and budget for transfer to the funds and accounts from which the
salaries of peace officers certified under section 69.011, subdivision 2a
2b, are paid. The commissioner of
revenue shall certify to the commissioners of public safety, natural resources,
and management and budget the amounts to be transferred from the appropriation
for police state aid. The commissioners
of public safety and natural resources shall certify to the commissioner of
management and budget the amounts to be credited to
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each of the funds
and accounts from which the peace officers employed by their respective
departments are paid. Each commissioner
shall allocate the police state aid first for employer contributions for
employees funded from the general fund and then for employer contributions for
employees funded from other funds. For
peace officers whose salaries are paid from the general fund, the amounts
transferred from the appropriation for police state aid must be canceled to the
general fund.
Sec. 9. Minnesota Statutes 2008, section 126C.41,
subdivision 3, is amended to read:
Subd. 3. Retirement
levies. (a) In 1991 and each year
thereafter, a district to which this subdivision applies may levy an additional
amount required for contributions to the general employees retirement plan
of the Public Employees Retirement Association as the successor of the Minneapolis
Employees Retirement Fund as a result of the maximum dollar amount limitation
on state contributions to the fund that plan imposed under
section 422A.101, subdivision 3. The
additional levy must not exceed the most recent amount certified by the board
of the Minneapolis Employees Retirement Fund executive director of the
Public Employees Retirement Association as the district's share of the
contribution requirement in excess of the maximum state contribution under
section 422A.101, subdivision 3.
(b) For taxes payable in 1994 and
thereafter, Special School District No. 1, Minneapolis, and Independent
School District No. 625, St. Paul, may levy for the increase in the
employer retirement fund contributions, under Laws 1992, chapter 598, article
5, section 1.
(c) If the employer retirement fund
contributions under section 354A.12, subdivision 2a, are increased for fiscal
year 1994 or later fiscal years, Special School District No. 1,
Minneapolis, and Independent School District No. 625, St. Paul, may
levy in payable 1994 or later an amount equal to the amount derived by applying
the net increase in the employer retirement fund contribution rate of the
respective teacher retirement fund association between fiscal year 1993 and the
fiscal year beginning in the year after the levy is certified to the total
covered payroll of the applicable teacher retirement fund association. If an applicable school district levies under
this paragraph, they may not levy under paragraph (b).
(d) In addition to the levy authorized
under paragraph (c), Special School District No. 1, Minneapolis, may also
levy payable in 1997 or later an amount equal to the contributions under
section 423A.02, subdivision 3, and may also levy in payable 1994 or later an
amount equal to the state aid contribution under section 354A.12, subdivision
3b. Independent School District
No. 625, St. Paul, may levy payable in 1997 or later an amount equal
to the supplemental contributions under section 423A.02, subdivision 3.
Sec. 10. Minnesota Statutes 2008, section 256D.21, is
amended to read:
256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS EMPLOYEES.
Subdivision 1. Continuation
of benefits. Each employee of the
city of Minneapolis who is transferred to and employed by the county under the
provisions of section 256D.20 and who is a contributing member of a retirement
system organized under the provisions of Minnesota Statutes 2008, chapter
422A, shall continue to be is a member of that system the
MERF division of the Public Employees Retirement Association and is entitled
to all of the applicable benefits conferred thereby by and
subject to all the restrictions of chapter 422A, unless the member applies
to cancel membership within six months after January 1, 1974 section
353.50.
Subd. 2. City
obligation. The cost to the public
of that portion of the retirement allowances or other benefits accrued while
any such employee was in the service of the city of Minneapolis shall
must remain an obligation of the city and a tax shall must be
levied and collected by it to discharge its obligation as provided by
chapter 422A in section 353.50, subdivision 7.
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Subd. 3. County
obligation. The cost to the public
of the retirement allowances or other benefits accruing to employees so
transferred to and employed by the county shall be is the
obligation of and paid by the county at such time as the retirement board shall fix and determine in accordance with
chapter 422A in section
353.50, subdivision 7. The
county shall pay to the municipal general employees retirement
fund an amount certified to the county auditor of the county by the
retirement board as the cost of the retirement allowances and other benefits
accruing and owing to such county employees of the Public Employees
Retirement Association those amounts.
The cost to the public of the retirement allowances as herein provided
shall coverage under this section must be paid from the county
revenue fund by the county auditor upon receipt of certification from the
retirement board as herein provided, and the county board is authorized to
levy and collect such taxes as may be necessary to pay such costs.
Sec. 11. Minnesota Statutes 2009 Supplement, section
352.01, subdivision 2b, is amended to read:
Subd. 2b. Excluded
employees. "State
employee" does not include:
(1) students employed by the
University of Minnesota, or the state colleges and universities, unless
approved for coverage by the Board of Regents of the University of Minnesota or
the Board of Trustees of the Minnesota State Colleges and Universities,
whichever is applicable;
(2) employees who are
eligible for membership in the state Teachers Retirement Association, except
employees of the Department of Education who have chosen or may choose to be
covered by the general state employees retirement plan of the Minnesota State
Retirement System instead of the Teachers Retirement Association;
(3) employees of the
University of Minnesota who are excluded from coverage by action of the Board
of Regents;
(4) officers and enlisted
personnel in the National Guard and the naval militia who are assigned to
permanent peacetime duty and who under federal law are or are required to be
members of a federal retirement system;
(5) election officers;
(6) persons who are engaged
in public work for the state but who are employed by contractors when the
performance of the contract is authorized by the legislature or other competent
authority;
(7) officers and employees
of the senate, or of the house of representatives, or of a legislative
committee or commission who are temporarily employed;
(8) receivers, jurors,
notaries public, and court employees who are not in the judicial branch as
defined in section 43A.02, subdivision 25, except referees and adjusters
employed by the Department of Labor and Industry;
(9) patient and inmate help
in state charitable, penal, and correctional institutions including the
Minnesota Veterans Home;
(10) persons who are
employed for professional services where the service is incidental to their
regular professional duties and whose compensation is paid on a per diem basis;
(11) employees of the Sibley
House Association;
(12) the members of any
state board or commission who serve the state intermittently and are paid on a
per diem basis; the secretary, secretary-treasurer, and treasurer of those
boards if their compensation is $5,000 or less per year, or, if they are
legally prohibited from serving more than three years; and the board of
managers of the State Agricultural Society and its treasurer unless the
treasurer is also its full-time secretary;
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(13) state troopers
and persons who are described in section 352B.011, subdivision 10, clauses (2)
to (8);
(14) temporary employees of the
Minnesota State Fair who are employed on or after July 1 for a period not to
extend beyond October 15 of that year; and persons who are employed at any time
by the state fair administration for special events held on the fairgrounds;
(15) emergency employees who are in
the classified service; except that if an emergency employee, within the same
pay period, becomes a provisional or probationary employee on other than a
temporary basis, the employee must be considered a "state employee"
retroactively to the beginning of the pay period;
(16) temporary employees in the
classified service, and temporary employees in the unclassified service who are
appointed for a definite period of not more than six months and who are
employed less than six months in any one-year period;
(17) interns hired for six months
or less and trainee employees, except those listed in subdivision 2a, clause
(8);
(18) persons whose compensation is
paid on a fee basis or as an independent contractor;
(19) state employees who are
employed by the Board of Trustees of the Minnesota State Colleges and
Universities in unclassified positions enumerated in section 43A.08,
subdivision 1, clause (9);
(20) state employees who in any
year have credit for 12 months service as teachers in the public schools of the
state and as teachers are members of the Teachers Retirement Association or a
retirement system in St. Paul, Minneapolis, or Duluth, except for
incidental employment as a state employee that is not covered by one of the
teacher retirement associations or systems;
(21) employees of the adjutant
general who are employed on an unlimited intermittent or temporary basis in the
classified or unclassified service for the support of Army and Air National Guard
training facilities;
(22) chaplains and nuns who are
excluded from coverage under the federal Old Age, Survivors, Disability, and
Health Insurance Program for the performance of service as specified in United
States Code, title 42, section 410(a)(8)(A), as amended, if no irrevocable
election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1986, as amended through December 31, 1992;
(23) examination monitors who are
employed by departments, agencies, commissions, and boards to conduct
examinations required by law;
(24) persons who are appointed to
serve as members of fact-finding commissions or adjustment panels, arbitrators,
or labor referees under chapter 179;
(25) temporary employees who are
employed for limited periods under any state or federal program for training or
rehabilitation, including persons who are employed for limited periods from
areas of economic distress, but not including skilled and supervisory personnel
and persons having civil service status covered by the system;
(26) full-time students who are
employed by the Minnesota Historical Society intermittently during part of the
year and full-time during the summer months;
(27) temporary employees who are
appointed for not more than six months, of the Metropolitan Council and of any
of its statutory boards, if the board members are appointed by the Metropolitan
Council;
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(28) persons who
are employed in positions designated by the Department of Management and Budget
as student workers;
(29) members of trades who are
employed by the successor to the Metropolitan Waste Control Commission, who
have trade union pension plan coverage under a collective bargaining agreement,
and who are first employed after June 1, 1977;
(30) off-duty peace officers while
employed by the Metropolitan Council;
(31) persons who are employed as
full-time police officers by the Metropolitan Council and as police officers
are members of the public employees police and fire fund;
(32) persons who are employed as
full-time firefighters by the Department of Military Affairs and as firefighters
are members of the public employees police and fire fund;
(33) foreign citizens with a work
permit of less than three years, or an H-1b/JV visa valid for less than three
years of employment, unless notice of extension is supplied which allows them
to work for three or more years as of the date the extension is granted, in
which case they are eligible for coverage from the date extended; and
(34) persons who are employed by the
Board of Trustees of the Minnesota State Colleges and Universities and who
elected to remain members of the Public Employees Retirement Association or of
the MERF division of the Public Employees Retirement Association as the
successor of the Minneapolis Employees Retirement Fund, whichever applies, under
Minnesota Statutes 1994, section 136C.75.
Sec. 12. Minnesota Statutes 2008, section 353.03,
subdivision 1, is amended to read:
Subdivision 1. Management;
composition; election. (a) The
management of the Public Employees Retirement fund Association is
vested in an 11-member board of trustees consisting of ten members and the
state auditor. The state auditor may
designate a deputy auditor with expertise in pension matters as the auditor's
representative on the board. The
governor shall appoint five trustees to four-year terms, one of whom shall be
designated to represent school boards, one to represent cities, one to
represent counties, one who is a retired annuitant, and one who is a public
member knowledgeable in pension matters.
The membership of the association, including recipients of retirement
annuities and disability and survivor benefits, shall elect five trustees for
terms of four years, one of whom must be a member of the police and fire fund
and one of whom must be a former member who met the definition of public
employee under section 353.01, subdivisions 2 and 2a, for at least five years
prior to terminating membership or a member who receives a disability
benefit. Terms expire on January 31 of
the fourth year, and positions are vacant until newly elected members are
seated. Except as provided in this
subdivision, trustees elected by the membership of the association must be
public employees and members of the association.
(b) For seven days beginning October
1 of each year preceding a year in which an election is held, the association
shall accept at its office filings in person or by mail of candidates for the
board of trustees. A candidate shall
submit at the time of filing a nominating petition signed by 25 or more members
of the association. No name may be
withdrawn from nomination by the nominee after October 15. At the request of a candidate for an elected
position on the board of trustees, the board shall mail a statement of up to
300 words prepared by the candidate to all persons eligible to vote in the
election of the candidate. The board may
adopt policies, subject to review and approval by the secretary of state under
paragraph (e), to govern the form and length of these statements, timing of
mailings, and deadlines for submitting materials to be mailed. The secretary of state shall resolve disputes
between the board and a candidate concerning application of these policies to a
particular statement.
(c) By January 10 of each year in
which elections are to be held, the board shall distribute by mail to the
members ballots listing the candidates.
No member may vote for more than one candidate for each board position
to be filled. A ballot indicating a vote
for more than one person for any position is void. No special marking may be
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used on the ballot
to indicate incumbents. Ballots mailed
to the association must be postmarked no later than January 31. The ballot envelopes must be so designated
and the ballots must be counted in a manner that ensures that each vote is
secret.
(d) A candidate who receives
contributions or makes expenditures in excess of $100, or has given implicit or
explicit consent for any other person to receive contributions or make
expenditures in excess of $100 for the purpose of bringing about the
candidate's election, shall file a report with the campaign finance and public
disclosure board disclosing the source and amount of all contributions to the
candidate's campaign. The campaign
finance and public disclosure board shall prescribe forms governing these
disclosures. Expenditures and
contributions have the meaning defined in section 10A.01. These terms do not include the mailing made
by the association board on behalf of the candidate. A candidate shall file a report within 30
days from the day that the results of the election are announced. The Campaign Finance and Public Disclosure
Board shall maintain these reports and make them available for public
inspection in the same manner as the board maintains and makes available other
reports filed with it.
(e) The secretary of state
shall review and approve the procedures defined by the board of trustees for
conducting the elections specified in this subdivision, including board
policies adopted under paragraph (b).
(f) The board of trustees
and the executive director shall undertake their activities consistent with
chapter 356A.
Sec. 13. Minnesota Statutes 2008, section 353.71,
subdivision 4, is amended to read:
Subd. 4. Repayment
of refund. Any person who has
received a refund from the Public Employees Retirement fund Association
and who is a member of any public retirement system referred to in
subdivision 1, may repay such refund to the Public Employees Retirement fund
Association as provided in section 353.35.
Sec. 14. Minnesota Statutes 2008, section 353.86,
subdivision 1, is amended to read:
Subdivision
1. Participation. Volunteer ambulance service personnel, as
defined in section 353.01, subdivision 35, who are or become members of and participants in
the public general employees retirement fund or the public
employees police and fire fund before July 1, 2002, and make contributions to
either of those funds based on compensation for service other than volunteer
ambulance service may elect to participate in that same fund with respect to
compensation received for volunteer ambulance service, provided that the volunteer
ambulance service is not credited to another public or private pension plan
including the public employees retirement plan established by chapter 353D and
provided further that the volunteer ambulance service is rendered for the same
governmental unit for which the nonvolunteer ambulance service is
rendered.
Sec. 15. Minnesota Statutes 2008, section 353.86,
subdivision 2, is amended to read:
Subd. 2. Election. Volunteer ambulance service personnel to
whom subdivision 1 applies may exercise the election authorized under
subdivision 1 within the earlier of the one-year period beginning on July 1,
1989, and extending through June 30, 1990, or the one-year period commencing on
the first day of the first month following the start of employment in a position
covered by the public general employees retirement fund or the
public employees police and fire fund.
The election must be exercised by filing a written notice on a form
prescribed by the executive director of the association.
Sec. 16. Minnesota Statutes 2008, section 353.87,
subdivision 1, is amended to read:
Subdivision 1. Participation. Except as provided in subdivision 2, a
volunteer firefighter, as defined in section 353.01, subdivision 36, who, on
June 30, 1989, was a member of, and a participant in, the public
general employees retirement fund or the public employees police and fire
fund and was making contributions to either of those funds
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based, at least in
part, on compensation for services performed as a volunteer firefighter shall
continue as a member of, and a participant in, the public general
employees retirement fund or the public employees police and fire fund and
compensation for services performed as a volunteer firefighter shall
must be considered salary.
Sec. 17. Minnesota Statutes 2008, section 353.87,
subdivision 2, is amended to read:
Subd. 2. Option. A volunteer firefighter to whom
subdivision 1 applies has the option to terminate membership and future
participation in the public general employees retirement fund or
the public employees police and fire fund upon filing of a written notice of
intention to terminate participation.
Notice must be given on a form prescribed by the executive director of
the association and must be filed in the offices of the association not later
than June 30, 1990.
Sec. 18. Minnesota Statutes 2008, section 353.88, is
amended to read:
353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND CERTIFICATION
FAILURES.
(a) If the board of trustees
of the Public Employees Retirement Association, upon the recommendation of the
executive director, determines that a governmental subdivision has certified a
public employee for membership in the public employees police and fire
retirement plan when the public employee was not eligible for that retirement
plan coverage, the public employee must be covered by the correct retirement
plan for subsequent service, the public employee retains the coverage for the
period of the misclassification, and the governmental subdivision shall pay in
a lump sum the difference in the actuarial present value of the retirement
annuities to which the public employee would have been entitled if the public
employee was properly classified. The
governmental subdivision payment is payable within 30 days of the board's
determination. If unpaid, it must be
collected under section 353.28. The
lump-sum payment must be deposited in the public general
employees retirement fund.
(b) If the executive
director of the Public Employees Retirement Association determines that a
governmental subdivision has failed to certify a person for retirement plan
membership and coverage under this chapter, in addition to the procedures under
section 353.27, subdivision 4, 9, 10, 11, 12, 12a, or 12b, the director shall
charge a fine of $25 for each membership certification failure.
Sec. 19. Minnesota Statutes 2008, section 354.71, is
amended to read:
354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID
REDEDICATED.
Subdivision 1. Appropriation. The positive difference, if any, between
the actual state aid paid payable to the MERF division account
of the Public Employees Retirement Association with respect to the former Minneapolis
Employees Retirement Fund under section 422A.101, subdivision 3, and $8,065,000
annually is appropriated from the general fund to the commissioner of
management and budget for deposit in the Teachers Retirement Association to
offset all or a portion of the current and future unfunded actuarial
accrued liability of the former Minneapolis Teachers Retirement Fund
Association.
Subd. 2. Financial
requirements. The appropriation in subdivision
1 is available to the extent that financial requirements of with
respect to the MERF division of the Public Employees Retirement
Association as the successor of the former Minneapolis Employees Retirement
Fund under section 422A.101, subdivision 3, 353.50 have
been satisfied.
Sec. 20. Minnesota Statutes 2008, section 354A.011,
subdivision 27, is amended to read:
Subd. 27. Teacher. (a) "Teacher" means any person
who renders service for a public school district, other than a charter school,
located in the corporate limits of Duluth or St. Paul, as any of the
following:
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(1) a full-time
employee in a position for which a valid license from the state Department of
Education is required;
(2) an employee of the
teachers retirement fund association located in the city of the first class unless
the employee has exercised the option pursuant to Laws 1955, chapter 10,
section 1, to retain membership in the Minneapolis Employees Retirement Fund
established pursuant to chapter 422A;
(3) a part-time employee in
a position for which a valid license from the state Department of Education is
required; or
(4) a part-time employee in
a position for which a valid license from the state Department of Education is
required who also renders other nonteaching services for the school district,
unless the board of trustees of the teachers retirement fund association
determines that the combined employment is on the whole so substantially
dissimilar to teaching service that the service may not be covered by the
association.
(b) The term does not mean
any person who renders service in the school district as any of the following:
(1) an independent
contractor or the employee of an independent contractor;
(2) an employee who is a
full-time teacher covered by the Teachers Retirement Association or by another
teachers retirement fund association established pursuant to this chapter or
chapter 354;
(3) an employee who is
exempt from licensure pursuant to section 122A.30;
(4) an employee who is a
teacher in a technical college located in a city of the first class unless the
person elects coverage by the applicable first class city teacher retirement
fund association under section 354B.21, subdivision 2;
(5) a teacher employed by a
charter school, irrespective of the location of the school; or
(6) an employee who is a
part-time teacher in a technical college in a city of the first class and who
has elected coverage by the applicable first class city teacher retirement fund
association under section 354B.21, subdivision 2, but (i) the teaching service
is incidental to the regular nonteaching occupation of the person; (ii) the
applicable technical college stipulates annually in advance that the part-time
teaching service will not exceed 300 hours in a fiscal year; and (iii) the
part-time teaching actually does not exceed 300 hours in the fiscal year to
which the certification applies.
Sec. 21. Minnesota Statutes 2008, section 354A.39, is
amended to read:
354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
Any person who has been a
member of the Minnesota State Retirement System, the Public Employees Retirement
Association including the Public Employees Retirement Association Police and
Fire Fund, the Teachers Retirement Association, the Minnesota State Patrol
Retirement Association, the legislators retirement plan, the constitutional
officers retirement plan, the Minneapolis Employees Retirement Fund, the
Duluth Teachers Retirement Fund Association new law coordinated program, the
St. Paul Teachers Retirement Fund Association coordinated program, or any
other public employee retirement system in the state of Minnesota having a like
provision, but excluding all other funds providing retirement benefits
for police officers or firefighters shall be, is entitled,
when qualified, to an annuity from each fund if the person's total
allowable service in all of the funds or in any two or more of the funds totals
three or more years, provided that no portion of the allowable service upon
which the retirement annuity from one fund is based is used again in the
computation for a retirement annuity from another fund and provided further
that the person has not taken a refund from any of funds or associations since
the
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person's membership
in the fund or association has terminated.
The annuity from each fund or association shall must be
determined by the appropriate provisions of the law governing each fund or
association, except that the requirement that a person must have at least three
years of allowable service in the respective fund or association shall
does not apply for the purposes of this section, provided that the
aggregate service in two or more of these funds equals three or more years.
Sec. 22. Minnesota Statutes 2008, section 355.095,
subdivision 1, is amended to read:
Subdivision 1. Agreement. (a) The director, on behalf of the state,
its political subdivisions, and its other governmental employers, is authorized
to enter into an agreement with the Secretary of Health and Human Services to
extend the provisions of United States Code, title 42, section 426, 426-1, and
1395c, to the employees in paragraph (b) who meet the requirements of United
States Code, title 42, section 418(v)(2) and who do not have coverage by the
federal old age, survivors, and disability insurance program for that
employment under any previous modification of the agreement or previous
Medicare referendum.
(b) The applicable employees are:
(1) employees who are members of
one of the retirement plans in Minnesota Statutes 2008, section 356.30,
subdivision 3, except clauses (4) and (8), based on continuous employment since
March 31, 1986; and
(2) employees of a special
authority or district who have been continuously employed by the special
authority or district since March 31, 1986.
Sec. 23. Minnesota Statutes 2009 Supplement, section
356.20, subdivision 2, is amended to read:
Subd. 2. Covered
public pension plans and funds. This
section applies to the following public pension plans:
(1) the general state employees
retirement plan of the Minnesota State Retirement System;
(2) the general employees
retirement plan of the Public Employees Retirement Association;
(3) the Teachers Retirement
Association;
(4) the State Patrol retirement
plan;
(5) the St. Paul Teachers
Retirement Fund Association;
(6) the Duluth Teachers Retirement
Fund Association;
(7) the Minneapolis Employees
Retirement Fund;
(8) (7) the
University of Minnesota faculty retirement plan;
(9) (8) the
University of Minnesota faculty supplemental retirement plan;
(10) (9) the
judges retirement fund;
(11) (10) a
police or firefighter's relief association specified or described in section
69.77, subdivision 1a;
(12) (11) a
volunteer firefighter relief association governed by section 69.771,
subdivision 1;
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(13) (12) the public
employees police and fire plan of the Public Employees Retirement Association;
(14) (13) the
correctional state employees retirement plan of the Minnesota State Retirement
System;
(15) (14) the
local government correctional service retirement plan of the Public Employees
Retirement Association; and
(16) (15) the
voluntary statewide lump-sum volunteer firefighter retirement plan.
Sec. 24. Minnesota Statutes 2008, section 356.214,
subdivision 1, is amended to read:
Subdivision 1. Actuary
retention. (a) The governing board
or managing or administrative official of each public pension plan and
retirement fund or plan enumerated in paragraph (b) shall contract with an
established actuarial consulting firm to conduct annual actuarial valuations
and related services. The principal from
the actuarial consulting firm on the contract must be an approved actuary under
section 356.215, subdivision 1, paragraph (c).
(b) Actuarial services must include
the preparation of actuarial valuations and related actuarial work for the
following retirement plans:
(1) the teachers retirement plan,
Teachers Retirement Association;
(2) the general state employees
retirement plan, Minnesota State Retirement System;
(3) the correctional employees
retirement plan, Minnesota State Retirement System;
(4) the State Patrol retirement
plan, Minnesota State Retirement System;
(5) the judges retirement plan,
Minnesota State Retirement System;
(6) the Minneapolis employees
retirement plan, Minneapolis Employees Retirement Fund;
(7) (6) the
public general employees retirement plan, Public Employees
Retirement Association, including the MERF division;
(8) (7) the
public employees police and fire plan, Public Employees Retirement Association;
(9) (8) the
Duluth teachers retirement plan, Duluth Teachers Retirement Fund Association;
(10) (9) the
St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
Association;
(11) (10) the
legislators retirement plan, Minnesota State Retirement System;
(12) (11) the
elective state officers retirement plan, Minnesota State Retirement System; and
(13) (12) local
government correctional service retirement plan, Public Employees Retirement
Association.
(c) The contracts must require
completion of the annual actuarial valuation calculations on a fiscal year
basis, with the contents of the actuarial valuation calculations as specified
in section 356.215, and in conformity with the standards for actuarial work
adopted by the Legislative Commission on Pensions and Retirement.
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The contracts must
require completion of annual experience data collection and processing and a
quadrennial published experience study for the plans listed in paragraph (b),
clauses (1), (2), and (7) (6), as provided for in the standards
for actuarial work adopted by the commission.
The experience data collection, processing, and analysis must evaluate the
following:
(1) individual salary
progression;
(2) the rate of return on
investments based on the current asset value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
(d) The actuary shall
annually prepare a report to the governing or managing board or administrative
official and the legislature, summarizing the results of the actuarial
valuation calculations. The actuary
shall include with the report any recommendations concerning the appropriateness
of the support rates to achieve proper funding of the retirement plans by the
required funding dates. The actuary
shall, as part of the quadrennial experience study, include recommendations on
the appropriateness of the actuarial valuation assumptions required for
evaluation in the study.
(e) If the actuarial gain
and loss analysis in the actuarial valuation calculations indicates a
persistent pattern of sizable gains or losses, the governing or managing board
or administrative official shall direct the actuary to prepare a special
experience study for a plan listed in paragraph (b), clause (3), (4), (5), (6)
(7), (8), (9), (10), (11), or (12), or (13), in the manner
provided for in the standards for actuarial work adopted by the commission.
Sec. 25. Minnesota Statutes 2008, section 356.30,
subdivision 3, is amended to read:
Subd. 3. Covered
plans. This section applies to the
following retirement plans:
(1) the general state
employees retirement plan of the Minnesota State Retirement System, established
under chapter 352;
(2) the correctional state
employees retirement plan of the Minnesota State Retirement System, established
under chapter 352;
(3) the unclassified
employees retirement program, established under chapter 352D;
(4) the State Patrol
retirement plan, established under chapter 352B;
(5) the legislators
retirement plan, established under chapter 3A;
(6) the elective state
officers retirement plan, established under chapter 352C;
(7) the general employees
retirement plan of the Public Employees Retirement Association, established
under chapter 353, including the MERF division of the Public Employees
Retirement Association;
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(8) the public
employees police and fire retirement plan of the Public Employees Retirement
Association, established under chapter 353;
(9) the local government correctional
service retirement plan of the Public Employees Retirement Association,
established under chapter 353E;
(10) the Teachers Retirement
Association, established under chapter 354;
(11) the Minneapolis Employees
Retirement Fund, established under chapter 422A;
(12) (11) the
St. Paul Teachers Retirement Fund Association, established under chapter
354A;
(13) (12) the
Duluth Teachers Retirement Fund Association, established under chapter 354A;
and
(14) (13) the
judges retirement fund, established by chapter 490.
Sec. 26. Minnesota Statutes 2008, section 356.302,
subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) The terms used in this section are
defined in this subdivision.
(b) "Average salary"
means the highest average of covered salary for the appropriate period of
credited service that is required for the calculation of a disability benefit
by the covered retirement plan and that is drawn from any period of credited
service and successive years of covered salary in a covered retirement plan.
(c) "Covered retirement
plan" or "plan" means a retirement plan listed in subdivision 7.
(d) "Duty-related" means
a disabling illness or injury that occurred while the person was actively
engaged in employment duties or that arose out of the person's active
employment duties.
(e) "General employee
retirement plan" means a covered retirement plan listed in subdivision 7,
clauses (1) to (8) (6) and (13) (12).
(f) "Occupationally
disabled" means the condition of having a medically determinable physical
or mental impairment that makes a person unable to satisfactorily perform the
minimum requirements of the person's employment position or a substantially
similar employment position.
(g) "Public safety employee
retirement plan" means a covered retirement plan listed in subdivision 7,
clauses (9) (7) to (12) (11).
(h) "Totally and permanently
disabled" means the condition of having a medically determinable physical or
mental impairment that makes a person unable to engage in any substantial
gainful activity and that is expected to continue or has continued for a period
of at least one year or that is expected to result directly in the person's
death.
Sec. 27. Minnesota Statutes 2008, section 356.302,
subdivision 7, is amended to read:
Subd. 7. Covered
retirement plans. This section
applies to the following retirement plans:
(1) the general state employees
retirement plan of the Minnesota State Retirement System, established by
chapter 352;
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(2) the
unclassified state employees retirement program of the Minnesota State
Retirement System, established by chapter 352D;
(3) the general employees
retirement plan of the Public Employees Retirement Association, established by
chapter 353, including the MERF division of the Public Employees Retirement
Association;
(4) the Teachers Retirement
Association, established by chapter 354;
(5) the Duluth Teachers Retirement
Fund Association, established by chapter 354A;
(6) the St. Paul Teachers
Retirement Fund Association, established by chapter 354A;
(7) the Minneapolis Employees
Retirement Fund, established by chapter 422A;
(8) (7) the
state correctional employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(9) (8) the
State Patrol retirement plan, established by chapter 352B;
(10) (9) the
public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;
(11) (10) the
local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E; and
(12) (11) the
judges retirement plan, established by chapter 490.
Sec. 28. Minnesota Statutes 2008, section 356.303,
subdivision 4, is amended to read:
Subd. 4. Covered
retirement plans. This section applies
to the following retirement plans:
(1) the legislators retirement
plan, established by chapter 3A;
(2) the general state employees
retirement plan of the Minnesota State Retirement System, established by
chapter 352;
(3) the correctional state employees
retirement plan of the Minnesota State Retirement System, established by
chapter 352;
(4) the State Patrol retirement
plan, established by chapter 352B;
(5) the elective state officers
retirement plan, established by chapter 352C;
(6) the unclassified state
employees retirement program, established by chapter 352D;
(7) the general employees
retirement plan of the Public Employees Retirement Association, established by
chapter 353, including the MERF division of the Public Employees Retirement
Association;
(8) the public employees police and
fire plan of the Public Employees Retirement Association, established by
chapter 353;
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(9) the local
government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E;
(10) the Teachers Retirement
Association, established by chapter 354;
(11) the Duluth Teachers Retirement
Fund Association, established by chapter 354A;
(12) the St. Paul Teachers
Retirement Fund Association, established by chapter 354A; and
(13) the Minneapolis Employees
Retirement Fund, established by chapter 422A; and
(14) (13) the
judges retirement fund, established by chapter 490.
Sec. 29. Minnesota Statutes 2009 Supplement, section
356.32, subdivision 2, is amended to read:
Subd. 2. Covered
retirement plans. The provisions of
this section apply to the following retirement plans:
(1) the general state employees
retirement plan of the Minnesota State Retirement System, established under
chapter 352;
(2) the correctional state
employees retirement plan of the Minnesota State Retirement System, established
under chapter 352;
(3) the State Patrol retirement
plan, established under chapter 352B;
(4) the general employees retirement
plan of the Public Employees Retirement Association, established under chapter
353, including the MERF division of the Public Employees Retirement
Association;
(5) the public employees police and
fire plan of the Public Employees Retirement Association, established under
chapter 353;
(6) the Teachers Retirement
Association, established under chapter 354;
(7) the Minneapolis Employees
Retirement Fund, established under chapter 422A;
(8) (7) the
Duluth Teachers Retirement Fund Association, established under chapter 354A;
and
(9) (8) the
St. Paul Teachers Retirement Fund Association, established under chapter
354A.
Sec. 30. Minnesota Statutes 2009 Supplement, section
356.401, subdivision 3, is amended to read:
Subd. 3. Covered
retirement plans. The provisions of
this section apply to the following retirement plans:
(1) the legislators retirement
plan, established by chapter 3A;
(2) the general state employees
retirement plan of the Minnesota State Retirement System, established by
chapter 352;
(3) the correctional state
employees retirement plan of the Minnesota State Retirement System, established
by chapter 352;
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(4) the State
Patrol retirement plan, established by chapter 352B;
(5) the elective state officers
retirement plan, established by chapter 352C;
(6) the unclassified state
employees retirement program, established by chapter 352D;
(7) the general employees
retirement plan of the Public Employees Retirement Association, established by
chapter 353, including the MERF division of the Public Employees Retirement
Association;
(8) the public employees police and
fire plan of the Public Employees Retirement Association, established by
chapter 353;
(9) the public employees defined
contribution plan, established by chapter 353D;
(10) the local government
correctional service retirement plan of the Public Employees Retirement Association,
established by chapter 353E;
(11) the voluntary statewide
lump-sum volunteer firefighter retirement plan, established by chapter 353G;
(12) the Teachers Retirement
Association, established by chapter 354;
(13) the Duluth Teachers Retirement
Fund Association, established by chapter 354A;
(14) the St. Paul Teachers
Retirement Fund Association, established by chapter 354A;
(15) the individual retirement
account plan, established by chapter 354B;
(16) the higher education supplemental
retirement plan, established by chapter 354C;
(17) the Minneapolis Employees
Retirement Fund, established by chapter 422A;
(18) (17) the
Minneapolis Police Relief Association, established by chapter 423B;
(19) (18) the
Minneapolis Firefighters Relief Association, established by chapter 423C; and
(20) (19) the
judges retirement fund, established by chapter 490.
Sec. 31. Minnesota Statutes 2008, section 356.407,
subdivision 2, is amended to read:
Subd. 2. Covered
funds. The provisions of this
section apply to the following retirement funds:
(1) the general employees
retirement plan of the Public Employees Retirement Association established
under chapter 353, including the MERF division of the Public Employees
Retirement Association;
(2) the public employees police and
fire plan of the Public Employees Retirement Association established under
chapter 353;
(3) the State Patrol retirement
plan established under chapter 352B;
(4) the legislators retirement plan
established under chapter 3A;
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(5) the elective
state officers retirement plan established under chapter 352C; and
(6) the Teachers Retirement
Association established under chapter 354; and.
(7) the Minneapolis Employees
Retirement Fund established under chapter 422A.
Sec. 32. Minnesota Statutes 2009 Supplement, section
356.415, subdivision 2, is amended to read:
Subd. 2. Covered
retirement plans. The provisions of
this section apply to the following retirement plans:
(1) the legislators retirement plan
established under chapter 3A;
(2) the correctional state
employees retirement plan of the Minnesota State Retirement System established
under chapter 352;
(3) the general state employees
retirement plan of the Minnesota State Retirement System established under
chapter 352;
(4) the State Patrol retirement
plan established under chapter 352B;
(5) the elective state officers
retirement plan established under chapter 352C;
(6) the general employees
retirement plan of the Public Employees Retirement Association established
under chapter 353, including the MERF division of the Public Employees
Retirement Association;
(7) the public employees police and
fire retirement plan of the Public Employees Retirement Association established
under chapter 353;
(8) the local government
correctional employees retirement plan of the Public Employees Retirement
Association established under chapter 353E;
(9) the teachers retirement plan
established under chapter 354; and
(10) the judges retirement plan
established under chapter 490.
Sec. 33. Minnesota Statutes 2008, section 356.431,
subdivision 1, is amended to read:
Subdivision 1. Lump-sum
postretirement payment conversion. For
benefits paid after December 31, 2001, to eligible persons under sections
section 356.42 and 356.43, the amount of the most recent lump-sum
benefit payable to an eligible recipient under sections section 356.42
and 356.43 must be divided by 12.
The result must be added to the monthly annuity or benefit otherwise
payable to an eligible recipient, must become a permanent part of the benefit
recipient's pension, and must be included in any pension benefit subject to
future increases.
Sec. 34. Minnesota Statutes 2008, section 356.465,
subdivision 3, is amended to read:
Subd. 3. Covered
retirement plans. The provisions of
this section apply to the following retirement plans:
(1) the general state employees
retirement plan of the Minnesota State Retirement System established under
chapter 352;
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(2) the
correctional state employees retirement plan of the Minnesota State Retirement
System established under chapter 352;
(3) the State Patrol retirement plan
established under chapter 352B;
(4) the legislators retirement plan
established under chapter 3A;
(5) the judges retirement plan
established under chapter 490;
(6) the general employees retirement
plan of the Public Employees Retirement Association established under chapter
353, including the MERF division of the Public Employees Retirement Association;
(7) the public employees police and
fire plan of the Public Employees Retirement Association established under
chapter 353;
(8) the teachers retirement plan
established under chapter 354;
(9) the Duluth Teachers Retirement Fund
Association established under chapter 354A;
(10) the St. Paul Teachers
Retirement Fund Association established under chapter 354A;
(11) the Minneapolis Employees
Retirement Fund established under chapter 422A;
(12) (11) the
Minneapolis Firefighters Relief Association established under chapter 423C;
(13) (12) the
Minneapolis Police Relief Association established under chapter 423B; and
(14) (13) the
local government correctional service retirement plan of the Public Employees
Retirement Association established under chapter 353E.
Sec. 35. Minnesota Statutes 2008, section 356.64, is
amended to read:
356.64 REAL ESTATE INVESTMENTS.
(a) Notwithstanding any law to the
contrary, any public pension plan whose assets are not invested by the State
Board of Investment may invest its funds in Minnesota situs nonfarm real estate
ownership interests or loans secured by mortgages or deeds of trust if the
investment is consistent with section 356A.04.
(b) Except to the extent
authorized in the case of the Minneapolis Employees Retirement Fund under
section 422A.05, subdivision 2c, paragraph (a), An investment otherwise
authorized by this section must also comply with the requirements and
limitations of section 11A.24, subdivision 6.
Sec. 36. Minnesota Statutes 2008, section 356.65,
subdivision 2, is amended to read:
Subd. 2. Disposition
of abandoned amounts. Any unclaimed
public pension fund amounts existing in any public pension fund are presumed to
be abandoned, but are not subject to the provisions of sections 345.31 to
345.60. Unless the benefit plan of the
public pension fund specifically provides for a different disposition of
unclaimed or abandoned funds or amounts, any unclaimed public pension fund
amounts cancel and must be credited to the public pension fund. If the unclaimed public pension fund amount
exceeds $25 and the inactive or former member again becomes a member of the
applicable public pension plan or applies for a retirement annuity under
section 3A.12, 352.72, 352B.30, 353.71, 354.60, or 356.30, or
422A.16, subdivision 8, whichever applies, the canceled amount must be
restored to the credit of the person.
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Sec. 37. Minnesota Statutes 2008, section 356.91, is
amended to read:
356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
(a) Upon written
authorization of a person receiving an annuity from a public pension fund
administered by the Minnesota State Retirement System, or the
Public Employees Retirement Association, or the Minneapolis Employees
Retirement Fund, the executive director of the public pension fund may
deduct from the retirement annuity an amount requested by the annuitant to be
paid as dues to any labor organization that is an exclusive bargaining agent
representing public employees or an organization representing retired public
employees of which the annuitant is a member and shall pay the amount to the
organization so designated by the annuitant.
(b) A pension fund and the
plan fiduciaries which authorize or administer deductions of dues payments
under paragraph (a) are not liable for failure to properly deduct or transmit
the dues amounts, provided that the fund and the fiduciaries have acted in good
faith.
(c) The deductions under
paragraph (a) may occur no more frequently than two times per year and may not
be used for political purposes.
(d) Any labor organization
specified in paragraph (a) shall reimburse the public pension fund for the
administrative expense of withholding premium amounts.
Sec. 38. Minnesota Statutes 2009 Supplement, section
356.96, subdivision 1, is amended to read:
Subdivision 1. Definitions.
(a) Unless the language or context
clearly indicates that a different meaning is intended, for the purpose of this
section, the terms in paragraphs (b) to (e) have the meanings given them.
(b) "Chief
administrative officer" means the executive director of a covered pension
plan or the executive director's designee or representative.
(c) "Covered pension
plan" means a plan enumerated in section 356.20, subdivision 2, clauses
(1) to (4), (10) (9), and (13) (12) to (16)
(15), but does not mean the deferred compensation plan administered under
sections 352.965 and 352.97 or to the postretirement health care savings plan
administered under section 352.98.
(d) "Governing
board" means the Board of Trustees of the Public Employees Retirement
Association, the Board of Trustees of the Teachers Retirement Association, or
the Board of Directors of the Minnesota State Retirement System.
(e) "Person"
includes an active, retired, deferred, or nonvested inactive participant in a
covered pension plan or a beneficiary of a participant, or an individual who
has applied to be a participant or who is or may be a survivor of a
participant, or a state agency or other governmental unit that employs active
participants in a covered pension plan.
Sec. 39. Minnesota Statutes 2008, section 473.511,
subdivision 3, is amended to read:
Subd. 3. Existing
sanitary districts, joint sewer boards. Effective
January 1, 1971, the corporate existence of the Minneapolis-St. Paul
Sanitary District, the North Suburban Sanitary Sewer District, and any joint
board created by agreement among local government units pursuant to
under section 471.59, to provide interceptors and treatment works for such
local government units, shall terminate.
All persons regularly employed by such sanitary districts and joint
boards on that date or on any earlier date on which the former waste control
commission pursuant to subdivisions 1 and 2 assumed ownership and control of
any interceptors or treatment works owned or operated by such sanitary
districts and joint boards, and who are employees of the commission on July 1,
1994, shall be are employees of the council, and may at their
option become members of the Minnesota State Retirement System or
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may continue as
members of a public retirement association under chapter 422A or any other law,
to which they belonged before such date, and shall retain all pension rights
which they may have under such latter laws, and all other rights to which they
are entitled by contract or law. Members of
trades who are employed by the former Metropolitan Waste Control Commission,
who have trade union pension coverage pursuant to under a
collective bargaining agreement, and who elected exclusion from coverage pursuant
to under section 473.512, or who are first employed after July 1,
1977, shall may not be covered by the Minnesota State Retirement
System. The council shall make the
employer's contributions to pension funds of its employees. Such employees shall perform such duties as
may be prescribed by the council. All
funds of such sanitary districts and joint boards then on hand, and all
subsequent collections of taxes, special assessments or service charges levied
or imposed by or for such sanitary districts or joint boards shall
must be transferred to the council.
The local government units otherwise entitled to such cash, taxes,
assessments or service charges shall must be credited with such
amounts, and such credits shall must be offset against any
amounts to be paid by them to the council as provided in section 473.517. The former Metropolitan Waste Control
Commission, and on July 1, 1994, the council shall succeed to and become vested
by action of law with all right, title and interest in and to any property,
real or personal, owned or operated by such sanitary districts and joint
boards. Prior to that date the proper
officers of such sanitary districts and joint boards, or the former
Metropolitan Waste Control Commission, shall execute and deliver to the council
all deeds, conveyances, bills of sale, and other documents or instruments required
to vest in the council good and marketable title to all such real or personal
property; provided that vesting of the title shall must occur by
operation of law and failure to execute and deliver the documents shall
does not affect the vesting of title in the former Metropolitan Waste
Control Commission or the council on the dates indicated in this
subdivision. The council shall become
obligated to pay or assume all bonded or other debt and contract obligations
incurred by the former Metropolitan Waste Control Commission, or by such
sanitary districts and joint boards, or incurred by local government units for
the acquisition or betterment of any interceptors or treatment works owned or
operated by such sanitary districts or joint boards.
Sec. 40. Minnesota Statutes 2008, section 473.606,
subdivision 5, is amended to read:
Subd. 5. Employees,
others, affirmative action; prevailing wage.
The corporation shall have the power to appoint engineers and other
consultants, attorneys, and such other officers, agents, and employees as it
may see fit, who shall perform such duties and receive such compensation as the
corporation may determine, and be removable at the pleasure of the
corporation. The corporation shall
must adopt an affirmative action plan, which shall be submitted to the
appropriate agency or office of the state for review and approval. The plan shall must include a
yearly progress report to the agency or office.
Officers and employees of the corporation who cannot qualify and
participate in the municipal employees retirement fund under chapter 422A,
shall be separated from service at the retirement age applicable to officers or
employees of the state of Minnesota in the classified service of the state
civil service as provided in section 43A.34, or as the same may from time to
time be amended, regardless of the provisions of the Veteran's Preference
Act. Whenever the corporation
performs any work within the limits of a city of the first class, or
establishes a minimum wage for skilled or unskilled labor in the specifications
or any contract for work within one of the cities, the rate of pay to such
skilled and unskilled labor shall must be the prevailing rate of
wage for such labor in that city.
Sec. 41. Minnesota Statutes 2008, section 475.52,
subdivision 6, is amended to read:
Subd. 6. Certain
purposes. Any municipality may issue
bonds for paying judgments against it; for refunding outstanding bonds; for
funding floating indebtedness; for funding actuarial liabilities to pay
postemployment benefits to employees or officers after their termination of
service; or for funding all or part of the municipality's current and future
unfunded liability for a pension or retirement fund or plan referred to in
section 356.20, subdivision 2, as those liabilities are most recently computed pursuant
to under sections 356.215 and 356.216. The board of trustees or directors of a pension
fund or relief association referred to in section 69.77 or chapter 422A
must consent and must be a party to any contract made under this section with
respect to the fund held by it for the benefit of and in trust for its
members. For purposes of this section,
the term "postemployment benefits" means benefits giving rise to a
liability under Statement No. 45 of the Governmental Accounting Standards
Board.
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Sec. 42. Minnesota Statutes 2009 Supplement, section
480.181, subdivision 2, is amended to read:
Subd. 2. Election
to retain insurance and benefits; retirement.
(a) Before a person is transferred to state employment under this
section, the person may elect to do either or both of the following:
(1) keep life insurance;
hospital, medical, and dental insurance; and vacation and sick leave benefits
and accumulated time provided by the county instead of receiving benefits from
the state under the judicial branch personnel rules; or
(2) remain a member of the general
employees retirement plan of the Public Employees Retirement Association or
the Minneapolis employees retirement fund MERF division of the Public
Employees Retirement Association instead of joining the Minnesota State
Retirement System.
Employees who make an
election under clause (1) remain on the county payroll, but the state shall
reimburse the county on a quarterly basis for the salary and cost of the
benefits provided by the county. The
state shall make the employer contribution to the general employees
retirement plan of the Public Employees Retirement Association or the
employer contribution under section 422A.101 353.50, subdivision 1a
7, paragraphs (c) and (d), to the Minneapolis Employees Retirement Fund
MERF division of the Public Employees Retirement Association on behalf
of employees who make an election under clause (2).
(b) An employee who makes an
election under paragraph (a), clause (1), may revoke the election, once, at any
time, but if the employee revokes the election, the employee cannot make
another election. An employee who makes
an election under paragraph (a), clause (2), may revoke the election at any
time within six months after the person becomes a state employee. Once an employee revokes this election, the
employee cannot make another election.
(c) The Supreme Court, after
consultation with the Judicial Council, the commissioner of management and
budget, and the executive directors of the Public Employees Retirement
Association and the Minnesota State Retirement Association, shall adopt
procedures for making elections under this section.
(d) The Supreme Court shall
notify all affected employees of the options available under this section. The executive directors of the Public
Employees Retirement Association and the Minnesota State Retirement System
shall provide counseling to affected employees on the effect of making an
election to remain a member of the Public Employees Retirement Association.
Sec. 43. EFFECTIVE
DATE.
Sections 1 to 42 are
effective June 30, 2010.
ARTICLE 14
VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATION MODIFICATIONS
Section 1. Minnesota Statutes 2009 Supplement, section
69.772, subdivision 6, is amended to read:
Subd. 6. Municipal
ratification for plan amendments. If
the special fund of the relief association does not have a surplus over full
funding pursuant to under subdivision 3, clause (2), subclause
(e), or and if the municipality is required to provide financial
support to the special fund of the relief association pursuant to
under this section, the adoption of or any amendment to the articles of
incorporation or bylaws of a relief association which increases or otherwise
affects the retirement coverage provided by or the service pensions or
retirement benefits payable from the special fund of any relief association to
which this section applies is not effective until it is ratified by the
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governing body of
the municipality in which the relief association is located and the officers of
a relief association shall not seek municipal ratification prior to preparing
and certifying an estimate of the expected increase in the accrued liability
and annual accruing liability of the relief association attributable to the
amendment. If the special fund of the
relief association has a surplus over full funding pursuant to under
subdivision 3, clause (2), subclause (e), and if the municipality is not
required to provide financial support to the special fund of the relief
association pursuant to under this section, the relief
association may adopt or amend its articles of incorporation or bylaws which
increase or otherwise affect the retirement coverage provided by or the service
pensions or retirement benefits payable from the special fund of the relief
association which are effective without municipal ratification so long as this
does not cause the amount of the resulting increase in the accrued liability of
the special fund of the relief association to exceed 90 percent of the amount
of the surplus over full funding reported in the prior year and this does not
result in the financial requirements of the special fund of the relief
association exceeding the expected amount of the future fire state aid to be
received by the relief association as determined by the board of trustees
following the preparation of an estimate of the expected increase in the
accrued liability and annual accruing liability of the relief association
attributable to the change. If a relief
association adopts or amends its articles of incorporation or bylaws without
municipal ratification pursuant to under this subdivision, and,
subsequent to the amendment or adoption, the financial requirements of the
special fund of the relief association pursuant to under this
section are such so as to require financial support from the municipality, the
provision which was implemented without municipal ratification is no longer
effective without municipal ratification and any service pensions or retirement
benefits payable after that date may be paid only in accordance with the
articles of incorporation or bylaws as amended or adopted with municipal
ratification.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 2. Minnesota Statutes 2009 Supplement, section
69.773, subdivision 6, is amended to read:
Subd. 6. Municipal
ratification for plan amendments. If
the special fund of the relief association does not have a surplus over full
funding pursuant to under subdivision 4, or and if
the municipality is required to provide financial support to the special fund
of the relief association pursuant to under this section, the
adoption of or any amendment to the articles of incorporation or bylaws of a
relief association which increases or otherwise affects the retirement coverage
provided by or the service pensions or retirement benefits payable from the
special fund of any relief association to which this section applies is not
effective until it is ratified by the governing body of the municipality in
which the relief association is located.
If the special fund of the relief association has a surplus over full
funding pursuant to under subdivision 4, and if the municipality
is not required to provide financial support to the special fund of the relief
association pursuant to under this section, the relief
association may adopt or amend its articles of incorporation or bylaws which
increase or otherwise affect the retirement coverage provided by or the service
pensions or retirement benefits payable from the special fund of the relief
association which are effective without municipal ratification so long as this
does not cause the amount of the resulting increase in the accrued liability of
the special fund of the relief association to exceed 90 percent of the amount
of the surplus over full funding reported in the prior year and this does not
result in the financial requirements of the special fund of the relief
association exceeding the expected amount of the future fire state aid to be
received by the relief association as determined by the board of trustees
following the preparation of an updated actuarial valuation including the
proposed change or an estimate of the expected actuarial impact of the proposed
change prepared by the actuary of the relief association. If a relief association adopts or amends its
articles of incorporation or bylaws without municipal ratification pursuant to
this subdivision, and, subsequent to the amendment or adoption, the financial
requirements of the special fund of the relief association pursuant to
under this section are such so as to require financial support from the
municipality, the provision which was implemented without municipal
ratification is no longer effective without municipal ratification and any
service pensions or retirement benefits payable after that date may be paid
only in accordance with the articles of incorporation or bylaws as amended or
adopted with municipal ratification.
EFFECTIVE DATE. This section is effective the day following final
enactment.
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Sec. 3. Minnesota Statutes 2008, section 356A.06,
subdivision 8, is amended to read:
Subd. 8. Minimum
liquidity requirements. A covered
pension plan described by subdivision 6, paragraph (a) or 7, in
order to pay benefits as they come due, shall invest a portion of its assets in
authorized short-term debt obligations that can be immediately liquidated
without accrual of a substantial determinable penalty or loss and that have an
average maturity of no more than 90 days.
The chief administrative officer of the plan shall determine the minimum
liquidity requirement of the plan and shall retain appropriate documentation of
that determination for three years from the date of determination.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 4. Minnesota Statutes 2009 Supplement, section
424A.01, subdivision 1, is amended to read:
Subdivision 1. Minors. (a) No volunteer firefighters' relief association
associated with a municipality or an independent nonprofit firefighting
corporation may include as a relief association member a minor serving as a
firefighter, except for members of a youth, civic, or educational organization
or program who participate with uninterrupted adult supervision, as allowed by
federal law and by section 181A.04. Such
organizations or programs include, but are not limited to, Boy Scout Explorer
programs or firefighting degree programs.
(b) No
volunteer firefighters' relief association associated with a municipality or an
independent nonprofit firefighting corporation may include as a relief
association member a minor serving as a volunteer firefighter.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 5. Minnesota Statutes 2009 Supplement, section
424A.01, subdivision 6, is amended to read:
Subd. 6. Return
to active firefighting after break in service.
(a) The requirements of this section apply to all breaks in
service, except breaks in service mandated by federal or state law.
(b)(1) If a former
active firefighter who has ceased to perform or supervise fire suppression
and fire prevention duties for at least 60 days resumes performing active
firefighting with the fire department associated with the relief association,
if the bylaws of the relief association so permit, the person firefighter
may again become an active member of the relief association. A firefighter who returns to active
service and membership is subject to the service pension calculation
requirements under this section.
(2) A firefighter who has been
granted an approved leave of absence not exceeding one year by the fire
department or by the relief association is exempt from the minimum period of
resumption service requirement of this section.
(3) A person who has a break in
service not exceeding one year but has not been granted an approved leave of
absence and who has not received a service pension or disability benefit may be
made exempt from the minimum period of resumption service requirement of this
section by the relief association bylaws.
(4) If the bylaws so provide, a
firefighter who returns to active relief association membership under this
paragraph may continue to collect a monthly service pension, notwithstanding
the service pension eligibility requirements under chapter 424A.
(b) (c) If a
former firefighter who has received a service pension or disability
benefit returns to active relief association membership under paragraph (a)
(b), the firefighter may qualify for the receipt of a service pension
from the relief association for the resumption service period if the
firefighter meets a minimum period of resumption service specified in the
relief association bylaws the service requirements of section 424A.016,
subdivision 3, or 424A.02, subdivision 2.
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(d) If a former
firefighter who has not received a service pension or disability benefit
returns to active relief association membership under paragraph (b), the
firefighter may qualify for the receipt of a service pension from the relief
association for the resumption service period if the firefighter meets the
minimum period of resumption service specified in the relief association bylaws
and the service requirements of section 424A.016, subdivision 3, or 424A.02,
subdivision 2.
(c) (e) A
firefighter who returns to active lump-sum relief association membership and
who qualifies for a service pension under paragraph (b) (c) or (d) must
have, upon a subsequent cessation of duties, any service pension for the resumption
service period calculated as a separate benefit. If a lump-sum service pension had been paid
to the firefighter upon the firefighter's previous cessation of duties, a
second lump-sum service pension for the resumption service period must be calculated
to apply the service pension amount in effect on the date of the firefighter's
termination of the resumption service for all years of the resumption
service. No firefighter may be paid a
service pension twice for the same period of service. If a lump-sum service pension had not been
paid to the firefighter upon the firefighter's previous cessation of duties and
the firefighter meets the minimum service requirement of section 424A.016,
subdivision 3, or 424A.02, subdivision 2, a service pension must be
calculated to apply the service pension amount in effect on the date of the
firefighter's termination of the resumption service for all years of service
credit.
(d) (f) A
firefighter who had not been paid a lump-sum service pension returns to active relief
association membership under paragraph (a) (b), who does not
qualify for a service pension under paragraph (b) (d), but who
does meet the minimum service requirement of section 424A.016, subdivision
3, or 424A.02, subdivision 2, based on the firefighter's previous years of
active service, must have, upon a subsequent cessation of duties, a service
pension calculated for the previous years of service based on the service
pension amount in effect on the date of the firefighter's termination of the resumption
service, or, if the bylaws so provide, based on the service pension amount in
effect on the date of the firefighter's previous cessation of duties.
(e) (g) If
a firefighter receiving a monthly benefit service pension returns to active
monthly benefit relief association membership under paragraph (a) (b),
and if the relief association bylaws do not allow for the firefighter to
continue collecting a monthly service pension, any monthly benefit service
pension payable to the firefighter is suspended as of the first day of the
month next following the date on which the firefighter returns to active
membership. If the firefighter was
receiving a monthly benefit service pension, and qualifies for a service
pension under paragraph (b) (c), the firefighter is entitled to
an additional monthly benefit service pension upon a subsequent cessation of
duties calculated based on the resumption service credit and the service
pension accrual amount in effect on the date of the termination of the
resumption service. The A suspended
initial service pension resumes as of the first of the month next following the
termination of the resumption service.
If the firefighter was not receiving a monthly benefit service pension
and meets the minimum service requirement of section 424A.02, subdivision 2, a
service pension must be calculated to apply the service pension amount in
effect on the date of the firefighter's termination of the resumption service
for all years of service credit.
(f) (h) A
firefighter who was not receiving a monthly benefit service pension returns to
active relief association membership under paragraph (a) (b), who
does not qualify for a service pension under paragraph (b) (d),
but who does meet the minimum service requirement of section 424A.02, subdivision
2, based on the firefighter's previous years of active service, must have, upon
a subsequent cessation of duties, a service pension calculated for the previous
years of service based on the service pension amount in effect on the date of
the firefighter's termination of the resumption service, or, if the bylaws so
provide, based on the service pension amount in effect on the date of the
firefighter's previous cessation of duties.
EFFECTIVE DATE. This section is effective the day
following final enactment.
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Sec. 6. Minnesota Statutes 2009 Supplement, section
424A.015, is amended by adding a subdivision to read:
Subd. 5. Minnesota
deferred compensation plan transfers.
A relief association may directly transfer on an
institution-to-institution basis the eligible member's lump-sum pension amount
to the requesting member's account in the Minnesota deferred compensation plan,
if:
(1) the governing articles of
incorporation or bylaws so provide;
(2) the volunteer firefighter
participates in the Minnesota deferred compensation plan at the time of
retirement; and
(3) the applicable retiring
firefighter requests in writing that the relief association do so.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 7. Minnesota Statutes 2009 Supplement, section
424A.016, subdivision 4, is amended to read:
Subd. 4. Individual
accounts. (a) An individual account
must be established for each firefighter who is a member of the relief
association.
(b) To each individual active
member account must be credited an equal share of:
(1) any amounts of fire state aid
received by the relief association;
(2) any amounts of municipal
contributions to the relief association raised from levies on real estate or
from other available municipal revenue sources exclusive of fire state aid; and
(3) any amounts equal to the share
of the assets of the special fund to the credit of:
(i) any former member who
terminated active service with the fire department to which the relief
association is associated before meeting the minimum service requirement
provided for in subdivision 2, paragraph (b), and has not returned to active
service with the fire department for a period no shorter than five years; or
(ii) any retired member who retired
before obtaining a full nonforfeitable interest in the amounts credited to the
individual member account under subdivision 2, paragraph (b), and any
applicable provision of the bylaws of the relief association. In addition, any investment return on the
assets of the special fund must be credited in proportion to the share of the
assets of the special fund to the credit of each individual active member
account. Administrative expenses of the
relief association payable from the special fund may be deducted from
individual accounts in a manner specified in the bylaws of the relief
association.
(c) If the bylaws so permit and
as the bylaws define, the relief association may credit any investment return
on the assets of the special fund to the accounts of inactive members.
(d) Amounts to
be credited to individual accounts must be allocated uniformly for all years of
active service and allocations must be made for all years of service, except
for caps on service credit if so provided in the bylaws of the relief
association. The allocation method may
utilize monthly proration for fractional years of service, as the bylaws or
articles of incorporation of the relief association so provide. The bylaws or articles of incorporation may
define a "month," but the definition must require a calendar month to
have at least 16 days of active service.
If the bylaws or articles of incorporation do not define a
"month," a "month" is a completed calendar month of active
service measured from the member's date of entry to the same date in the
subsequent month.
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(d) (e) At the time of
retirement under subdivision 2 and any applicable provision of the bylaws of
the relief association, a retiring member is entitled to that portion of the assets
of the special fund to the credit of the member in the individual member
account which is nonforfeitable under subdivision 3 and any applicable
provision of the bylaws of the relief association based on the number of years
of service to the credit of the retiring member.
(e) (f) Annually,
the secretary of the relief association shall certify the individual account
allocations to the state auditor at the same time that the annual financial statement
or financial report and audit of the relief association, whichever applies, is
due under section 69.051.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 8. Minnesota Statutes 2009 Supplement, section
424A.016, subdivision 7, is amended to read:
Subd. 7. Limitation
on ancillary benefits. (a) A defined
contribution relief association may only pay an ancillary benefit which would
constitute an authorized disbursement as specified in section 424A.05. The ancillary benefit for active members must
equal the vested or and nonvested amount of the individual
account of the member.
(b) For deferred members, the
ancillary benefit must equal the vested amount of the individual account of the
member. For the recipient of installment
payments of a service pension, the ancillary benefit must equal the remaining
balance in the individual account of the recipient.
(c)(1) If a survivor or death
benefit is payable under the articles of incorporation or bylaws, the benefit must
be paid:
(i) as a survivor benefit to the
surviving spouse of the deceased firefighter;
(ii) as a survivor benefit to the
surviving children of the deceased firefighter if no surviving spouse;
(iii) as a survivor benefit to a
designated beneficiary of the deceased firefighter if no surviving spouse or
surviving children; or
(iv) as a death benefit to the
estate of the deceased active or deferred firefighter if no surviving spouse,
no surviving children, and no beneficiary designated.
(2) If there are no surviving
children, the surviving spouse may waive, in writing, wholly or partially, the
spouse's entitlement to a survivor benefit.
(d) For purposes of this section,
for a defined contribution volunteer fire relief association, a trust created
under chapter 501B may be a designated beneficiary. If a trust payable to the surviving children
organized under chapter 501B has been established as authorized by this section
and there is no surviving spouse, the survivor benefit may be paid to the
trust, notwithstanding the requirements of this section.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 9. Minnesota Statutes 2009 Supplement, section
424A.02, subdivision 9, is amended to read:
Subd. 9. Limitation
on ancillary benefits. A defined
benefit relief association, including any volunteer firefighters relief
association governed by section 69.77 or any volunteer firefighters division of
a relief association governed by chapter 424, may only pay ancillary benefits
which would constitute an authorized disbursement as specified in section
424A.05 subject to the following requirements or limitations:
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(1) with respect to
a defined benefit relief association in which governing bylaws provide for a
lump-sum service pension to a retiring member, no ancillary benefit may be paid
to any former member or paid to any person on behalf of any former member after
the former member (i) terminates active service with the fire department and
active membership in the relief association; and (ii) commences receipt of a
service pension as authorized under this section; and
(2) with respect to any defined
benefit relief association, no ancillary benefit paid or payable to any member,
to any former member, or to any person on behalf of any member or former
member, may exceed in amount the total earned service pension of the member or
former member. The total earned service
pension must be calculated by multiplying the service pension amount specified
in the bylaws of the relief association at the time of death or disability,
whichever applies, by the years of service credited to the member or former
member. The years of service must be
determined as of (i) the date the member or former member became entitled to
the ancillary benefit; or (ii) the date the member or former member died
entitling a survivor or the estate of the member or former member to an
ancillary benefit. The ancillary benefit
must be calculated without regard to whether the member had attained the
minimum amount of service and membership credit specified in the governing bylaws. For active members, the amount of a permanent
disability benefit or a survivor benefit must be equal to the member's total
earned service pension except that the bylaws of a defined benefit relief
association may provide for the payment of a survivor benefit in an amount not
to exceed five times the yearly service pension amount specified in the bylaws
on behalf of any member who dies before having performed five years of active
service in the fire department with which the relief association is affiliated.
(3)(i) If a lump sum survivor or death
benefit is payable under the articles of incorporation or bylaws, the benefit
must be paid:
(A) as a survivor benefit to the
surviving spouse of the deceased firefighter;
(B) as a survivor benefit to the
surviving children of the deceased firefighter if no surviving spouse;
(C) as a survivor benefit to a
designated beneficiary of the deceased firefighter if no surviving spouse or
surviving children; or
(D) as a death benefit to the
estate of the deceased active or deferred firefighter if no surviving children
and no beneficiary designated.
(ii) If there are no surviving
children, the surviving spouse may waive, in writing, wholly or partially, the
spouse's entitlement to a survivor benefit.
(4)(i) If a monthly benefit survivor
or death benefit is payable under the articles of incorporation or bylaws, the
benefit must be paid:
(A) as a survivor benefit to the
surviving spouse of the deceased firefighter;
(B) as a survivor benefit to the surviving
children of the deceased firefighter if no surviving spouse;
(C) as a survivor benefit to a
designated beneficiary of the deceased firefighter if no surviving spouse or
surviving children; or
(D) as a death benefit to the
estate of the deceased active or deferred firefighter if no surviving spouse,
no surviving children, and no beneficiary designated.
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(ii) If there
are no surviving children, the surviving spouse may waive, in writing, wholly
or partially, the spouse's entitlement to a survivor benefit.
(iii) For purposes of this
clause, if the relief association bylaws authorize a monthly survivor benefit
payable to a designated beneficiary, the relief association bylaws may limit
the total survivor benefit amount payable.
(5) For purposes of this
section, for a monthly benefit volunteer fire relief association or for a
combination lump-sum and monthly benefit volunteer fire relief association
where a monthly benefit service pension has been elected by or a monthly
benefit is payable with respect to a firefighter, a designated beneficiary must
be a natural person. For purposes of
this section, for a lump-sum volunteer fire relief association or for a
combination lump-sum and monthly benefit volunteer fire relief association
where a lump-sum service pension has been elected by or a lump-sum benefit is
payable with respect to a firefighter, a trust created under chapter 501B may
be a designated beneficiary. If a trust
is payable to the surviving children organized under chapter 501B as authorized
by this section and there is no surviving spouse, the survivor benefit may be
paid to the trust, notwithstanding a requirement of this section to the
contrary.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 10. Minnesota Statutes 2009 Supplement, section
424A.02, subdivision 10, is amended to read:
Subd. 10. Local
approval of bylaw amendments; filing requirements. (a) Each defined benefit relief
association to which this section applies must file a revised copy of its
governing bylaws with the state auditor upon the adoption of any amendment to
its governing bylaws by the relief association or upon the approval of any
amendment to its governing bylaws granted by the governing body of each
municipality served by the fire department to which the relief association is
directly associated. Failure of the
relief association to file a copy of the bylaws or any bylaw amendments with
the state auditor disqualifies the municipality from the distribution of any
future fire state aid until this filing requirement has been completed.
(b) If the special fund of
the relief association does not have a surplus over full funding under section
69.772, subdivision 3, clause (2), subclause (e), or 69.773, subdivision 4, and
if the municipality is required to provide financial support to the special
fund of the relief association under section 69.772 or 69.773, no bylaw
amendment which would affect the amount of, the manner of payment of, or the
conditions for qualification for service pensions or ancillary benefits or
disbursements other than administrative expenses authorized under section 69.80
payable from the special fund of the relief association is effective until it
has been ratified by the governing body or bodies of the appropriate
municipalities as required under section 69.772, subdivision 6, or
69.773, subdivision 6. If the special
fund of the relief association has a surplus over full funding under section
69.772, subdivision 3, or 69.773, subdivision 4, and if the municipality is
not required to provide financial support to the special fund under this
section, the relief association may adopt or amend without municipal
ratification its articles of incorporation or bylaws which increase or
otherwise affect the service pensions or ancillary benefits payable from the
special fund so long as the changes do not cause the amount of the resulting
increase in the accrued liability of the special fund to exceed 90 percent of
the amount of the surplus over full funding reported in the prior year and the
changes do not result in the financial requirements of the special fund
exceeding the expected amount of the subsequent calendar year's fire state aid
to be received by the relief association if authorized under section
69.772, subdivision 6, or 69.773, subdivision 6.
(c) If the relief
association pays only a lump-sum pension, the financial requirements are to be
determined by the board of trustees following the preparation of an estimate of
the expected increase in the accrued liability and annual accruing liability of
the relief association attributable to the change. If the relief association pays a monthly
benefit service pension, the financial requirements are to be determined by the
board of trustees following either an updated actuarial valuation including the
proposed change or an estimate of the expected actuarial impact of the proposed
change prepared by the actuary of the relief association. If a relief association adopts or amends its
articles of
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incorporation or
bylaws without municipal ratification under this subdivision, and, subsequent
to the amendment or adoption, the financial requirements of the special fund
under this section are such so as to require financial support from the
municipality, the provision which was implemented without municipal
ratification is no longer effective without municipal ratification, and any
service pensions or ancillary benefits payable after that date must be paid
only in accordance with the articles of incorporation or bylaws as amended or
adopted with municipal ratification.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 11. Minnesota Statutes 2009 Supplement, section
424A.05, subdivision 3, is amended to read:
Subd. 3. Authorized
disbursements from the special fund. (a)
Disbursements from the special fund may not be made for any purpose other than
one of the following:
(1) for the payment of service
pensions to retired members of the relief association if authorized and paid
under law and the bylaws governing the relief association;
(2) for the purchase of an annuity
for the applicable person under section 424A.015, subdivision 3, for the
transfer of service pension or benefit amounts to the applicable person's
individual retirement account under section 424A.015, subdivision 4, or to the
applicable person's account in the Minnesota deferred compensation plan under
section 424A.015, subdivision 5;
(2) (3) for
the payment of temporary or permanent disability benefits to disabled members
of the relief association if authorized and paid under law and specified in
amount in the bylaws governing the relief association;
(3) (4)
for the payment of survivor benefits to surviving spouses and surviving
children, or if none, to designated beneficiaries, of deceased members of the
relief association, and if no survivors and if no designated beneficiary, or
for the payment of a death benefit to the estate of the deceased active or
deferred firefighter, if authorized by and paid under law and specified
in amount in the bylaws governing the relief association;
(4) (5)
for the payment of the fees, dues and assessments to the Minnesota State Fire
Department Association and to the Minnesota Area Relief Association Coalition
in order to entitle relief association members to membership in and the
benefits of these associations or organizations;
(5) (6)
for the payment of insurance premiums to the state Volunteer Firefighters Benefit
Association, or an insurance company licensed by the state of Minnesota
offering casualty insurance, in order to entitle relief association members to
membership in and the benefits of the association or organization; and
(6) (7)
for the payment of administrative expenses of the relief association as
authorized under section 69.80.
(b) For purposes of this chapter,
for a monthly benefit volunteer fire relief association or for a combination
lump-sum and monthly benefit volunteer fire relief association where a monthly
benefit service pension has been elected by or a monthly benefit is payable
with respect to a firefighter, a designated beneficiary must be a natural
person. For purposes of this chapter,
for a defined contribution volunteer fire relief association, for a lump-sum
volunteer fire relief association, or for a combination lump-sum and monthly
benefit volunteer fire relief association where a lump-sum service pension has
been elected by or a lump-sum benefit is payable with respect to a firefighter,
a designated beneficiary may be a trust created under chapter 501B.
EFFECTIVE DATE. This section is effective the day
following final enactment.
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Sec. 12. Minnesota Statutes 2009 Supplement, section
424A.05, is amended by adding a subdivision to read:
Subd. 3a. Corrections
of erroneous special fund deposits. Upon
notification of funds deposited in error in the special fund and after
presentation of evidence that the error occurred in good faith, the state
auditor may require the relief association to provide a written legal opinion
concluding that the transfer of funds from the special fund is consistent with
federal and state law. Taking into
consideration the evidence of good faith presented and the legal opinion, if
any, provided, the state auditor may order the transfer from the special fund
to the appropriate fund or account an amount equal to the funds deposited in
error.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 13. REPEALER.
(a) Minnesota Statutes 2009
Supplement, section 424A.001, subdivision 6, is repealed.
(b) Laws 2009, chapter 169,
article 10, section 32, is repealed.
EFFECTIVE DATE. Paragraph (a) is effective the day following final
enactment. Paragraph (b) is effective
retroactively from July 1, 2009.
ARTICLE 15
ONE PERSON/SMALL GROUP
PENSION ISSUES
Section 1. PERA-GENERAL;
PURCHASE OF OMITTED INVER GROVE HEIGHTS SCHOOL DISTRICT OMITTED MEMBER
CONTRIBUTIONS.
(a) Notwithstanding any
provision of law to the contrary, an eligible person described in paragraph (b)
is entitled to purchase from the general employees retirement plan of the
Public Employees Retirement Association allowable service credit under
Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted
member deductions described in paragraph (c).
(b) An eligible person is a
person who:
(1) was born on April 17,
1948;
(2) is a current employee of
Independent School District No. 199, Inver Grove Heights;
(3) is a current member of
the general employees retirement plan of the Public Employees Retirement
Association;
(4) was employed by
Independent School District No. 199, Inver Grove Heights, on August 26,
1985; and
(5) was not reported by
Independent School District No. 199, Inver Grove Heights, for retirement
coverage by and membership in the general employees retirement plan of the
Public Employees Retirement Association until September 1, 1986.
(c) The period of uncredited
service authorized for purchase is the period of August 26, 1985, until
August 31, 1986, during which no member contributions for the general
employees retirement plan of the Public Employees Retirement Association were
deducted from the eligible person's salary by Independent School District
No. 199, Inver Grove Heights.
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(d) The purchase
payment amount payable by the eligible person is four percent of the eligible
person's salary under Minnesota Statutes 1984, section 353.01, subdivision 10,
from Independent School District No. 199, Inver Grove Heights, during the
period of August 26, 1985, until August 31, 1986, plus annual compound interest
on that amount at the rate of 8.5 percent from March 1, 1986, until the date on
which payment is made to the Public Employees Retirement Association. The purchase payment amount payable by
Independent School District No. 199, Inver Grove Heights, is the balance
of the full actuarial value prior service credit purchase payment amount
determined under Minnesota Statutes, section 356.551, as of the first day of
the month next following the receipt of the eligible person's payment that is
remaining after deducting the purchase payment amount payable by the
eligible person.
(e) The school district
purchase payment amount payable under paragraph (d) must be made on or before
the 15th of the month next following the receipt of the eligible person's
payment under paragraph (d). If the
school district purchase payment amount is not paid in a timely fashion, the
amount due accrues compound monthly interest at the rate of 0.71 percent per
month from the first day of the month next following the receipt of the
eligible person's payment until the school district purchase payment amount is
received by the Public Employees Retirement Association. If the school district purchase payment
amount is not paid to the Public Employees Retirement Association 90 days after
the receipt of the eligible person's payment, the executive director shall
notify the commissioner of management and budget, the commissioner of
education, and the commissioner of revenue of that unpaid obligation and the
unpaid obligation must be deducted from any state aid otherwise payable to the
school district, plus interest.
(f) The eligible person must
provide the executive director of the Public Employees Retirement Association
with any relevant requested information pertaining to this service credit
purchase.
(g) Authority to make a
service credit purchase under this section expires on June 30, 2011, or upon
the termination from public employment under Minnesota Statutes, section
353.01, subdivision 11a, whichever occurs earlier.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 2. TEACHERS
RETIREMENT ASSOCIATION; SECOND CHANCE RETIREMENT COVERAGE AUTHORITY FOR IRAP
MEMBER.
(a) Notwithstanding any
provision of Minnesota Statutes, chapter 352, 353, or 354B or section 356.551
to the contrary, an eligible person described in paragraph (b) is entitled to
elect retirement coverage for Minnesota State Colleges and Universities System
employment by the Teachers Retirement Association under Minnesota Statutes,
section 354B.21, subdivisions 2 and 3, despite the time limitation on the
election.
(b) An eligible person is a
person who:
(1) was born on July 19,
1948;
(2) was employed by Mankato
State University in 1969, with retirement coverage in the general state
employees retirement plan of the Minnesota State Retirement System, for which a
refund of member contributions and interest was taken before 2007;
(3) was employed by the city
of Austin in the early 1980s, with retirement coverage in the general employees
retirement plan of the Public Employees Retirement Association, for which a
refund of member contributions and interest was taken before 2007;
(4) is employed by the
Minnesota State Colleges and Universities System at Riverland Community
College; and
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(5) had the
person's employment position upgraded by the Minnesota State Colleges and
Universities System on September 9, 2007, and had retirement coverage transferred
by operation of law to the higher education individual retirement account plan.
(c) An election to change
retirement coverage from the Minnesota State Colleges and Universities System individual
retirement account plan to the Teachers Retirement Association must be made by
July 1, 2010, and is retroactive to September 9, 2007. If the election is made, Minnesota Statutes,
section 356.551, applies to the purchase of past service except for subdivision
1, paragraph (c), of that provision, which requires all refunds to be paid
before the service credit purchase. The
eligible person's account in the individual retirement account plan must be
liquidated by transfer to the Teachers Retirement Association fund by August 1,
2010, and used to cover part of the service credit purchase payment
amount. Any remaining payment amount
must be paid in a lump sum to the executive director of the Teachers Retirement
Association for deposit in the Teachers Retirement Association fund by
September 1, 2010. Retroactive service
credit in the Teachers Retirement Association must be granted to the eligible
person once the transfers and payments required under this paragraph have been
made.
(d) If an eligible person under
paragraph (b) elects Teachers Retirement Association coverage but fails to make
the full payment required under paragraph (c), the election of Teachers
Retirement Association coverage is voided and the individual retains coverage
by the Minnesota State Colleges and Universities System individual retirement
account plan. If amounts were
transferred under paragraph (c) from the individual retirement account plan,
those amounts must be returned to the individual's account or accounts under
that plan.
EFFECTIVE DATE. This section is effective the day
following final enactment.
ARTICLE 16
MISCELLANEOUS PROVISIONS
Section 1. Minnesota Statutes 2008, section 356.216, is
amended to read:
356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE AND FIRE
FUNDS.
(a) The provisions of section
356.215 that govern the contents of actuarial valuations must apply to any
local police or fire pension fund or relief association required to make an
actuarial report under this section, except as follows:
(1) in calculating normal cost and
other requirements, if required to be expressed as a level percentage of
covered payroll, the salaries used in computing covered payroll must be the
maximum rate of salary on which retirement and survivorship credits and amounts
of benefits are determined and from which any member contributions are
calculated and deducted;
(2) in lieu of the amortization
date specified in section 356.215, subdivision 11, the appropriate amortization
target date specified in section 69.77, subdivision 4, or 69.773, subdivision
4, clause (c), must be used in calculating any required amortization
contribution, except that if the actuarial report for the Bloomington Fire
Department Relief Association indicates an unfunded actuarial accrued liability,
the unfunded obligation is to be amortized on a level dollar basis by December
31 of the year occurring 20 years later, and if subsequent actuarial valuations
for the Bloomington Fire Department Relief Association determine a net
actuarial experience loss incurred during the year which ended as of the day
before the most recent actuarial valuation date, any unfunded liability due to
that loss is to be amortized on a level dollar basis by December 31 of the year
occurring 20 years later and except that the amortization date for the
Minneapolis Police Relief Association is December 31, 2020;
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(3) in addition to
the tabulation of active members and annuitants provided for in section
356.215, subdivision 13, the member contributions for active members for
the calendar year and the prospective annual retirement annuities under the
benefit plan for active members must be reported;
(4) actuarial valuations
required under section 69.773, subdivision 2, must be made at least every four
years and actuarial valuations required under section 69.77 shall be made
annually;
(5) the actuarial balance
sheet showing accrued assets valued at market value if the actuarial valuation
is required to be prepared at least every four years or valued as current
assets under section 356.215, subdivision 1, clause (6) paragraph (f),
or paragraph (b), whichever applies, if the actuarial valuation is required to
be prepared annually, actuarial accrued liabilities, and the unfunded actuarial
accrued liability must include the following required reserves:
(i) for active members:
1. retirement benefits;
2. disability benefits;
3. refund liability due to death or withdrawal;
4. survivors' benefits;
(ii) for deferred
annuitants' benefits;
(iii) for former members
without vested rights;
(iv) for annuitants;
1. retirement annuities;
2. disability annuities;
3. surviving spouses' annuities;
4. surviving children's annuities;
In addition to those
required reserves, separate items must be shown for additional benefits, if
any, which may not be appropriately included in the reserves listed above; and
(6) actuarial valuations are
due by the first day of the seventh month after the end of the fiscal year
which the actuarial valuation covers.
(b) For the Minneapolis
Firefighters Relief Association or the Minneapolis Police Relief Association,
the following provisions additionally apply:
(1) in calculating the
actuarial balance sheet, unfunded actuarial accrued liability, and amortization
contribution of the relief association, "current assets" means the
value of all assets at cost, including realized capital gains and losses, plus
or minus, whichever applies, the average value of total unrealized capital
gains or losses for the most recent three-year period ending with the end of the
plan year immediately preceding the actuarial valuation report transmission
date; and
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(2) in calculating
the applicable portions of the actuarial valuation, an annual preretirement
interest assumption of six percent, an annual postretirement interest
assumption of six percent, and an annual salary increase assumption of four
percent must be used.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2008, section 356.24,
subdivision 1, is amended to read:
Subdivision 1. Restriction;
exceptions. (a) It is unlawful for a
school district or other governmental subdivision or state agency to levy taxes
for, or to contribute public funds to a supplemental pension or deferred
compensation plan that is established, maintained, and operated in addition to
a primary pension program for the benefit of the governmental subdivision
employees other than:
(1) to a supplemental pension plan
that was established, maintained, and operated before May 6, 1971;
(2) to a plan that provides solely
for group health, hospital, disability, or death benefits;
(3) to the individual retirement
account plan established by chapter 354B;
(4) to a plan that provides solely
for severance pay under section 465.72 to a retiring or terminating employee;
(5) for employees other than
personnel employed by the Board of Trustees of the Minnesota State Colleges and
Universities and covered under the Higher Education Supplemental Retirement
Plan under chapter 354C, but including city managers covered by an alternative
retirement arrangement under section 353.028, subdivision 3, paragraph (a), or
by the defined contribution plan of the Public Employees Retirement Association
under section 353.028, subdivision 3, paragraph (b), if the supplemental plan
coverage is provided for in a personnel policy of the public employer or in the
collective bargaining agreement between the public employer and the exclusive
representative of public employees in an appropriate unit or in the individual
employment contract between a city and a city manager, and if for each
available investment all fees and historic rates of return for the prior one-,
three-, five-, and ten-year periods, or since inception, are disclosed in an
easily comprehended document not to exceed two pages, in an amount matching
employee contributions on a dollar for dollar basis, but not to exceed an
employer contribution of one-half of the available elective deferral permitted
per year per employee, under the Internal Revenue Code:
(i) to the state of Minnesota
deferred compensation plan under section 352.965;
(ii) in payment of the applicable
portion of the contribution made to any investment eligible under section
403(b) of the Internal Revenue Code, if the employing unit has complied with
any applicable pension plan provisions of the Internal Revenue Code with
respect to the tax-sheltered annuity program during the preceding calendar
year; or
(iii) any other deferred
compensation plan offered by the employer under section 457 of the Internal
Revenue Code;
(6) for personnel employed by the
Board of Trustees of the Minnesota State Colleges and Universities and not
covered by clause (5), to the supplemental retirement plan under chapter 354C,
if the supplemental plan coverage is provided for in a personnel policy or in
the collective bargaining agreement of the public employer with the exclusive
representative of the covered employees in an appropriate unit, in an amount
matching employee contributions on a dollar for dollar basis, but not to exceed
an employer contribution of $2,700 a year for each employee;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
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(7) to a
supplemental plan or to a governmental trust to save for postretirement health
care expenses qualified for tax-preferred treatment under the Internal Revenue
Code, if the supplemental plan coverage is provided for in a personnel policy
or in the collective bargaining agreement of a public employer with the
exclusive representative of the covered employees in an appropriate unit;
(8) to the laborers national
industrial pension fund or to a laborers local pension fund for the employees
of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund
contribution rate, but not to exceed an employer contribution of $5,000 per
year per employee;
(9) to the plumbers and pipefitters
national pension fund or to a plumbers and pipefitters local pension fund for the
employees of a governmental subdivision who are covered by a collective
bargaining agreement that provides for coverage by that fund and that sets
forth a fund contribution rate, but not to exceed an employer contribution of
$5,000 per year per employee;
(10) to the international union of
operating engineers pension fund for the employees of a governmental
subdivision who are covered by a collective bargaining agreement that provides
for coverage by that fund and that sets forth a fund contribution rate, but not
to exceed an employer contribution of $5,000 per year per employee;
(11) to a supplemental plan
organized and operated under the federal Internal Revenue Code, as amended,
that is wholly and solely funded by the employee's accumulated sick leave,
accumulated vacation leave, and accumulated severance pay;
(12) to the International
Association of Machinists national pension fund for the employees of a
governmental subdivision who are covered by a collective bargaining agreement
that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $5,000 per year per
employee; or
(13) for employees of United
Hospital District, Blue Earth, to the state of Minnesota deferred compensation
program, if the employee makes a contribution, in an amount that does not
exceed the total percentage of covered salary under section 353.27,
subdivisions 3 and 3a; or
(14) to the alternative retirement
plans established by the Hennepin County Medical Center under section 383B.914,
subdivision 5.
(b) No governmental subdivision may
make a contribution to a deferred compensation plan operating under section 457
of the Internal Revenue Code for volunteer or emergency on-call firefighters in
lieu of providing retirement coverage under the federal Old Age, Survivors, and
Disability Insurance Program.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 3. Laws 2009, chapter 169, article 7, section 4,
is amended to read:
Sec. 4. EFFECTIVE
DATE.
Sections 1 to 3 are effective
January 1, 2010, and. Sections
1 and 2 expire June 30, 2011.
EFFECTIVE DATE. This section is effective the day
following final enactment."
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10806
Delete the title
and insert:
"A bill for an act
relating to retirement; various retirement plans; increasing certain
contribution rates; suspending certain post-retirement adjustments; reducing
certain postretirement adjustment increase rates; reducing interest rates on
refunds; reducing deferred annuity augmentation rates; eliminating interest on
reemployed annuitant earnings limitation deferred accounts; increasing certain
vesting requirements; increasing certain early retirement reduction rates;
reducing certain benefit accrual rates; extending certain amortization periods;
making changes of an administrative nature for retirement plans administered by
the Minnesota State Retirement Association; revising insurance withholding for
certain retired public employees; authorizing state patrol plan service credit
for leave procedures; addressing plan coverage errors and omitted
contributions; revising unlawful discharge annuity repayment requirements;
requiring employment unit accommodation of daily valuation of investment
accounts; eliminating administrative fee maximum for the unclassified state
employees retirement program; making changes of an administrative nature in the
general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, and the
defined contribution retirement plan; making various administrative
modifications in the voluntary statewide lump-sum volunteer firefighter
retirement plan of the Public Employees Retirement Association; revising
purchase of salary credit procedures in certain partial salary situations;
adding new partial salary credit purchase authority for partial paid medical
leaves and budgetary leaves; redefining TRA allowable service credit; defining
annual base salary; requiring base salary reporting by TRA-covered employing
units; making changes of an administrative nature in the Minnesota State
Colleges and Universities System individual retirement account plan; setting deadline
dates for actuarial reporting; extending and revising an early retirement
incentive program; permitting the court-ordered revocation of an optional
annuity election in certain marriage dissolutions; transfer of the
administrative functions of the Minneapolis Employees Retirement Fund to the
Public Employees Retirement Association; creation of MERF consolidation account
within the Public Employees Retirement Association; making various technical
corrections relating to volunteer fire relief associations; revising
break-in-service return to firefighting authorizations; authorizing Minnesota
deferred compensation plan service pension transfers; revising payout defaults
in survivor benefits; authorizing corrections of certain special fund deposits;
requiring a retirement fund investment authority study; authorizing certain
bylaw amendments; making technical changes; appropriating money; amending
Minnesota Statutes 2008, sections 3A.02, subdivision 4; 3A.07; 11A.04; 11A.23,
subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316,
subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41,
subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04,
subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12,
subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by
adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1;
352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1,
2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions
4, 9, by adding a subdivision; 352D.02, subdivisions 1, 1c, 2, 3; 352D.03;
352D.04, subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3;
352D.065, subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01,
subdivisions 2b, 2d, by adding subdivisions; 353.0161, subdivision 2; 353.03,
subdivision 1; 353.05; 353.27, as amended; 353.29, subdivision 1; 353.30,
subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6;
353.37, subdivisions 1, 2, 3, 3a, 4, 5; 353.46, subdivisions 2, 6; 353.64,
subdivision 7; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 353.71,
subdivisions 1, 2, 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2;
353.88; 353D.01, subdivision 2; 353D.03, subdivision 1; 353D.04, subdivisions
1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 353F.025,
subdivisions 1, 2; 353F.03; 354.05, by adding a subdivision; 354.07,
subdivision 5; 354.091; 354.42, subdivisions 3, 7, by adding subdivisions;
354.52, subdivision 6, by adding a subdivision; 354.66, subdivision 3; 354.71;
354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, by adding a subdivision;
354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1; 354A.35,
subdivision 1; 354A.37, subdivisions 2, 3, 4; 354A.39; 354B.25, subdivisions 1,
3; 354C.14; 355.095, subdivision 1; 356.214, subdivision 1; 356.215,
subdivisions 3, 8; 356.216; 356.24, subdivision 1; 356.30, subdivisions 1, 3;
356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions 2, 4; 356.315,
subdivision 5; 356.351, subdivision 1; 356.407, subdivision 2; 356.431,
subdivision 1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50,
subdivision 4; 356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2,
3, 7, 8; 356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511,
subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by
adding a subdivision; 518.58, subdivisions
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Day - Wednesday, April 28, 2010 - Top of Page 10807
3, 4; Minnesota
Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031,
subdivision 5; 69.772, subdivision 6; 69.773, subdivision 6; 352.01,
subdivision 2b; 352.75, subdivision 4; 352.95, subdivision 2; 352B.011,
subdivision 3; 353.01, subdivisions 2, 2a, 16; 353.06; 353.27, subdivisions 2,
3, 7; 353.33, subdivision 1; 353.371, subdivision 4; 353.65, subdivisions 2, 3;
353F.02, subdivision 4; 353G.05, subdivision 2; 353G.06, subdivision 1;
353G.08; 353G.09, subdivision 3; 353G.11, subdivision 1, by adding a
subdivision; 354.42, subdivision 2; 354.47, subdivision 1; 354.49, subdivision
2; 354.52, subdivision 4b; 354.55, subdivision 11; 354A.12, subdivision 2a;
356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.351,
subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 1, 2, by adding
subdivisions; 356.96, subdivisions 1, 5; 423A.02, subdivision 3; 424A.01, subdivisions
1, 6; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.02,
subdivisions 9, 10; 424A.05, subdivision 3, by adding a subdivision; 424A.08;
480.181, subdivision 2; Laws 2006, chapter 271, article 3, section 43, as
amended; Laws 2009, chapter 169, article 4, section 49; article 5, section 2;
article 7, section 4; proposing coding for new law in Minnesota Statutes,
chapters 352B; 353; 353G; 356; repealing Minnesota Statutes 2008, sections
13.63, subdivision 1; 69.011, subdivision 2a; 352.91, subdivision 5; 353.01,
subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03, subdivision 2;
353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01, subdivisions 1, 2,
3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04;
422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions
1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101,
subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1;
422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6,
7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20;
422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7,
8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009
Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5; 424A.001,
subdivision 6; Laws 2009, chapter 169, article 10, section 32."
With the recommendation that
when so amended the bill pass and be re-referred to the Committee on Ways and
Means.
The report was adopted.
Carlson from the Committee
on Finance to which was referred:
H. F. No. 3486,
A bill for an act relating to transportation; making various clarifying and
technical changes related to financial assistance for public transit;
establishing requirements governing federal aid; modifying requirements
governing local share of transit provider operating costs; amending reporting
requirements; amending Minnesota Statutes 2008, sections 174.22, by adding a
subdivision; 174.23, subdivision 1; 174.24, subdivisions 2, 3, 3b, by adding a
subdivision; 174.247; Minnesota Statutes 2009 Supplement, section 174.24,
subdivision 5.
Reported the same back with
the following amendments:
Delete everything after the
enacting clause and insert:
"Section 1. Minnesota Statutes 2008, section 174.22, is
amended by adding a subdivision to read:
Subd. 14a. State
sources of funds. "State
sources of funds" means funding for the public transit participation
program appropriated from (1) the general fund, and (2) the greater Minnesota
transit account.
Sec. 2. Minnesota Statutes 2008, section 174.23,
subdivision 1, is amended to read:
Subdivision 1. General. (a) The commissioner shall have
all powers necessary and convenient to carry out the provisions of sections
174.21 to 174.27 including the power to:
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10808
(1) review
applications for financial assistance, execute contracts, and obligate and
expend program funds, upon conditions and limitations as the commissioner deems
necessary for purposes of program and project implementation, operation, and
evaluation,;
(2) accept and disburse
federal funds available for the purposes of sections 174.21 to 174.27, and such
funds are appropriated to the commissioner; and
(3) act upon request as the
designated agent of any eligible person for the receipt and disbursal of
federal funds.
(b) The commissioner shall
perform the duties and exercise the powers under sections 174.21 to 174.27 in
coordination with and in furtherance of statewide, regional, and local
transportation plans and transportation development programs. The commissioner shall set guidelines for
financial assistance under the public transit subsidy program. The commissioner shall present any proposed
guidelines regarding public transit financial assistance to a legislative
committee composed of equal numbers appointed by the house of representatives
local and urban affairs and senate transportation committees. The commissioner shall not implement any new
guidelines regarding public transit financial assistance, between the period
January 1, 1981 to April 15, 1982, without the prior approval of that
committee.
Sec. 3. Minnesota Statutes 2008, section 174.23,
subdivision 2, is amended to read:
Subd. 2. Financial
assistance; application, approval.
(a) The commissioner shall seek out and select eligible
recipients of financial assistance under sections 174.21 to 174.27.
(b) The commissioner shall
establish by rule the procedures and standards for review and approval of
applications for financial assistance submitted to the commissioner pursuant to
sections 174.21 to 174.27. Any applicant
shall provide to the commissioner any financial or other information required
by the commissioner to carry out the commissioner's duties. The commissioner may require local
contributions from applicants as a condition for receiving financial
assistance.
(c) Before the commissioner
approves any grant, the application for the grant shall may be
reviewed and approved by the appropriate regional development commission
only for consistency with regional transportation plans and development
guides. If an applicant proposes a
project within the jurisdiction of a transit authority or commission or a
transit system assisted or operated by a city or county, the application shall
also be reviewed by that commission, authority, or political subdivision for
consistency with its transit programs, policies, and plans. Any regional development commission that
has not adopted a transportation plan may review but may not approve or
disapprove of any application.
Sec. 4. Minnesota Statutes 2009 Supplement, section
174.24, subdivision 1a, is amended to read:
Subd. 1a. Transit
service needs implementation Greater Minnesota transit investment
plan. (a) The commissioner
shall develop a greater Minnesota transit service needs
implementation investment plan that contains a goal of meeting at
least 80 percent of unmet total transit service needs in greater
Minnesota by July 1, 2015, and meeting at least 90 percent of unmet
total transit service needs in greater Minnesota by July 1, 2025.
(b) The plan must include, but
is not limited to, the following:
(1) an analysis of ridership
and total transit service needs throughout greater Minnesota;
(2) a calculation of unmet
needs; an assessment of the level and type of service required to meet unmet
total transit service needs, for the transit system classifications as
provided under subdivision 3b, paragraph (c), of urbanized area, small urban
area, rural area, and elderly and disabled service;
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(3) an analysis of costs and
revenue options; and,
(4) a plan to reduce unmet
total transit service needs as specified in this subdivision; and
(5) identification of the
operating and capital costs necessary to meet 100 percent of the greater
Minnesota transit targeted and projected bus service hours, as identified in
the greater Minnesota transit plan, for 2010, 2015, 2020, 2025, and 2030.
(c) The plan must specifically
address special transportation service ridership and needs. The plan must also provide that recipients of
operating assistance under this section provide fixed route public transit
service without charge for disabled veterans in accordance with subdivision
7. The commissioner may amend the
plan as necessary, and may use all or part of the 2001 greater Minnesota public
transportation plan created by the Minnesota Department of Transportation.
Sec. 5. Minnesota Statutes 2008, section 174.24,
subdivision 2, is amended to read:
Subd. 2. Eligibility;
application. Any legislatively
established public transit commission or authority, any county or statutory or
home rule charter city providing financial assistance to or operating public
transit, any private operator of public transit, or any combination thereof is
eligible to receive financial assistance through the public transit participation
program. Except as provided in
subdivision 2b for assistance provided from federal funds, eligible
recipients must be located outside of the metropolitan area.
Sec. 6. Minnesota Statutes 2008, section 174.24, is
amended by adding a subdivision to read:
Subd. 2b. Federal
aid. (a) The commissioner may
accept and disburse federal funds received and appropriated under section
174.23, subdivision 1, as an additional source of funds for implementing the
public transit participation program established in this section. This authority includes, but is not limited
to:
(1) adopting administrative
rules to establish financial assistance allocation priorities, identify factors
to consider in reviewing an applicant's management plan, evaluate a request for
financial assistance, and determine the amount of financial assistance to be
provided; and
(2) establishing project
selection criteria under the United States Code, title 49, section 5311, state
management plan as approved by the Federal Transit Administration, United
States Department of Transportation.
(b) If the commissioner
accepts and disburses federal funds as provided in paragraph (a), the
commissioner shall:
(1) maintain separate
accounts for (i) state sources of funds, and (ii) federal sources of funding;
and
(2) ensure that all state
sources of funds are only used for assistance to eligible recipients as
provided in subdivision 2.
Sec. 7. Minnesota Statutes 2008, section 174.24,
subdivision 3b, is amended to read:
Subd. 3b. Operating
assistance; recipient classifications. (a)
The commissioner shall determine the total operating cost of any public transit
system receiving or applying for assistance in accordance with generally
accepted accounting principles. To be eligible
for financial assistance, an applicant or recipient shall provide to the
commissioner all financial records and other information and shall permit any
inspection reasonably necessary to determine total operating cost and
correspondingly the amount of assistance that may be paid to the applicant or
recipient. Where more than one county or
municipality contributes assistance to the operation of a public transit
system, the commissioner shall identify one as lead agency for the purpose of
receiving money under this section.
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Day - Wednesday, April 28, 2010 - Top of Page 10810
(b) Prior to
distributing operating assistance to eligible recipients for any contract
period, the commissioner shall place all recipients into one of the following
classifications: urbanized area service,
small urban area service, rural area service, and elderly and disabled service.
(c) The commissioner shall
distribute funds under this section so that the percentage of total contracted
operating cost paid by any recipient from local sources will not exceed the
percentage for that recipient's classification, except as provided in an
undue hardship case this subdivision. The percentages must be:
(1) for urbanized area service
and small urban area service, 20 percent;
(2) for rural area service, 15
percent; and
(3) for elderly and disabled
service, 15 percent.
Except as provided in a
United States Department of Transportation program allowing or requiring a
lower percentage to be paid from local sources, the remainder of the recipient's
total contracted operating cost will be paid from state sources
of funds less any assistance received by the recipient from any federal
source the United States Department of Transportation.
(d) For purposes of this
subdivision, "local sources" means all local sources of funds and
includes all operating revenue, tax levies, and contributions from public
funds, except that the commissioner may exclude from the total assistance
contract revenues derived from operations the cost of which is excluded from
the computation of total operating cost.
Total operating costs of the Duluth Transit Authority or a successor
agency does not include costs related to the Superior, Wisconsin service
contract and the Independent School District No. 709 service
contract.
(c) (e) If a recipient informs the
commissioner in writing after the establishment of these percentages but prior
to the distribution of financial assistance for any year that paying its
designated percentage of total operating cost from local sources will cause
undue hardship, the commissioner may reduce the percentage to be paid from
local sources by the recipient and increase the percentage to be paid from
local sources by one or more other recipients inside or outside the
classification. However, the
commissioner may not reduce or increase any recipient's percentage under this
paragraph for more than two years successively.
If for any year the funds appropriated to the commissioner to carry out
the purposes of this section are insufficient to allow the commissioner to pay
the state share of total operating cost as provided in this paragraph, the
commissioner shall reduce the state share in each classification to the extent
necessary.
Sec. 8. Minnesota Statutes 2009 Supplement, section
174.24, subdivision 5, is amended to read:
Subd. 5. Method
of payment, operating assistance. Payments
for operating assistance under this section from state sources of funds
must be made in the following manner:
(a) For payments made from
the general fund:
(1) 50 percent of the total
contract amount in or before the first month of operation;
(2) 40 percent of the total
contract amount in or before the seventh month of operation;
(3) 9 percent of the total
contract amount in or before the 12th month of operation; and
(4) 1 percent of the total
contract amount after the final audit.
(b) For payments made from
the greater Minnesota transit account:
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10811
(1) 50 percent of
the total contract amount in or before the seventh month of operation; and
(2) 50 percent of the total contract amount in or before the
11th month of operation.
Sec. 9. Minnesota
Statutes 2008, section 174.247, is amended to read:
174.247 ANNUAL TRANSIT
REPORT.
(a) By February 15 annually, the commissioner shall submit a report
to the legislature on transit services outside the metropolitan area. The Metropolitan Council and any public
transit system receiving assistance under section 174.24 shall provide
assistance in creating the report, as requested by the commissioner.
(b) The report must include, at a minimum, the following:
(1) a descriptive overview of public transit in Minnesota;
(2) a descriptive summary of funding sources and assistance
programs;
(3) a summary of each public transit system receiving
assistance under section 174.24;
(4) data that identifies use of volunteers in providing
transit service;
(5) financial data that identifies operating and capital
costs, and funding sources, for each public transit system and for each
transit system classification under section 174.24, subdivision 3b:
(i) the operating and capital costs;
(ii) each of the funding sources used to provide financial
assistance; and
(iii) for federal funds, the amount from each specific
federal program under which funding is provided;
(6) a summary of the differences in program implementation
requirements and aid recipient eligibility between federal aid and state
sources of funds;
(7) in each odd-numbered year, an analysis of public transit system
needs and operating expenditures on an annual basis, which must include a
methodology for identifying monetary needs, and calculations of:
(i) the total monetary needs for all public transit systems,
for the year of the report and the ensuing five years;
(ii) the total expenditures from local sources for each
transit system classification;
(iii) the comprehensive transit assistance percentage for
each transit system classification, which equals (A) the expenditures
identified under clause (7), item (ii), for a transit system classification,
divided by (B) the amounts identified under subitem (A), plus the sum of state
sources of funds plus federal funds provided to all transit systems in that
classification; and
(iv) in each odd-numbered year, beginning in 2009, a
calculation of the amounts the amount of surplus
or insufficient funds available for (i) paying the state share of transit
operating costs under section 174.24, subdivision 3b, and (ii) paying
capital and operating costs to fully implement the transit service needs
implementation greater Minnesota transit investment plan under
section 174.24, subdivision 1a."
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Top of Page 10812
Delete the title
and insert:
"A bill for an act relating to transportation;
appropriating federal transit funds for disbursement by commissioner of
transportation; modifying or adding provisions relating to transit financial
assistance; amending Minnesota Statutes 2008, sections 174.22, by adding a
subdivision; 174.23, subdivisions 1, 2; 174.24, subdivisions 2, 3b, by adding a
subdivision; 174.247; Minnesota Statutes 2009 Supplement, section 174.24,
subdivisions 1a, 5."
With the recommendation that when so amended the bill pass.
The report was adopted.
Carlson from the Committee on Finance to which was referred:
H. F. No. 3571, A bill for an act relating to
human services; authorizing a rate increase for publicly owned nursing facilities;
requiring a local share of nonfederal medical assistance costs; amending
Minnesota Statutes 2008, sections 256B.19, by adding a subdivision; 256B.441,
by adding a subdivision.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2008, section 256B.19, is amended by adding a
subdivision to read:
Subd. 1e.
Additional local share of
certain nursing facility costs. Beginning
January 1, 2011, local government entities that own the physical plant or are
the license holder of nursing facilities receiving rate adjustments under
section 256B.441, subdivision 55a, shall be responsible for paying the portion
of nonfederal costs calculated under section 256B.441, subdivision 55a,
paragraph (d). Payments of the
nonfederal share shall be made monthly to the commissioner in amounts
determined in accordance with section 256B.441, subdivision 55a, paragraph (d). Payments for each month beginning in January
2011 through September 2015 shall be due by the 15th day of the following
month. If any provider obligated to pay
an amount under this subdivision is more than two months delinquent in the
timely payment of the monthly installment, the commissioner may withhold payments,
penalties, and interest in accordance with the methods outlined in section
256.9657, subdivision 7a.
Sec. 2. Minnesota
Statutes 2008, section 256B.441, is amended by adding a subdivision to read:
Subd. 55a.
Alternative to phase-in for
publicly owned nursing facilities. (a)
For operating payment rates implemented between January 1, 2011, and September
30, 2015, the commissioner shall allow nursing facilities whose physical plant
is owned or whose license is held by a city, county, or hospital district to
apply for a higher payment rate under this section if the local government
entity agrees to pay a specified portion of the nonfederal share of medical
assistance costs. Nursing facilities
that apply shall be eligible for a payment rate up to the rate calculated in
subdivision 54, without application of the phase-in under subdivision 55.
(b) Rates determined under this subdivision shall take effect
beginning January 1, 2011, based on cost reports for the rate year ending
September 30, 2009, and in future rate years, rates determined for nursing
facilities participating under this subdivision shall take effect on October 1
of each year, based on the most recent available cost report.
(c) Eligible nursing facilities that wish to participate under
this subdivision shall make an application to the commissioner by September 30,
2010. Participation under this
subdivision is irrevocable. If paragraph
(a) does not result in a rate greater than what would have been provided
without application of this subdivision, a facility's rates shall be calculated
as otherwise provided and no payment by the local government entity shall be
required under paragraph (d).
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(d) For each
participating nursing facility, the public entity that owns the physical plant
or is the license holder of the nursing facility shall pay to the state the
entire nonfederal share of medical assistance payments received as a result of
the difference between the nursing facility's payment rate under subdivision 54
and the rate that the nursing facility would otherwise be paid under
subdivision 55 as determined by the commissioner.
(e) The commissioner may, at any time, reduce the payments
under this subdivision based on the commissioner's determination that the
payments shall cause nursing facility rates to exceed the state's Medicare
upper payment limit or any other federal limitation. If the commissioner determines a reduction is
necessary, the commissioner shall reduce all payment rates for participating
nursing facilities by a percentage applied to the amount of increase they would
otherwise receive under this subdivision and shall notify participating
facilities of the reductions. If
payments to a nursing facility are reduced, payments under section 256B.19,
subdivision 1e, shall be reduced accordingly."
Delete the title and insert:
"A bill for an act relating to human services;
authorizing a rate increase for publicly owned nursing facilities; requiring a
local share of nonfederal medical assistance costs; amending Minnesota Statutes
2008, sections 256B.19, by adding a subdivision; 256B.441, by adding a
subdivision."
With the recommendation that when so amended the bill pass
and be re-referred to the Committee on Ways and Means.
The report was adopted.
Carlson from the Committee on Finance to which was referred:
H. F. No. 3660, A bill for an act relating to
claims against the state; providing for settlement of certain claims;
appropriating money.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1. DEPARTMENT OF CORRECTIONS.
The amounts in this section are appropriated from the general
fund to the commissioner of corrections in fiscal year 2011 for full and final
payment under Minnesota Statutes, sections 3.738 and 3.739, of claims against
the state for injuries suffered by and medical services provided to persons
injured while performing community service or sentence-to-service work for
correctional purposes or while incarcerated in a state correctional
facility. This appropriation is
available until June 30, 2011.
(a) For sentence-to-service and community work service claims
under $500 and other claims already paid by the department, $3,692.83.
(b) For payment to Robert Finch for permanent injuries to his
left hand suffered while performing assigned duties while incarcerated at MCF-Faribault,
$7,200.
(c) For payment to Thomas Hamilton for permanent injuries to
his ankle suffered while performing assigned duties while incarcerated at
MCF-Faribault, $4,736.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10814
(d) For payment
to Leon Hettver for permanent injuries to his left hand suffered while
performing assigned duties while incarcerated at MCF-Faribault, $1,875.
(e) For payment to Robert Johnson for permanent injuries to
his face suffered while performing assigned duties while incarcerated at
MCF-Stillwater, $1,500.
(f) For payment to William Jones for permanent injuries to
his left hand suffered while performing assigned duties while incarcerated at
MCF-Faribault, $3,750.
(g) For payment to Tamara Lamke for permanent injuries to her
knee suffered while performing sentence-to-service work in Isanti County, $3,750.
(h) For payment to John Lee for permanent injuries to his
left hand suffered while performing assigned duties while incarcerated at
MCF-Faribault, $3,703.13.
(i) For payment to Paul McKay for permanent injuries to his
right hand suffered while performing assigned duties while incarcerated at
MCF-Rush City, $1,875.
(j) For payment to Chad Westring for permanent injuries to
his spine suffered while performing sentence-to-service work in Todd County,
$11,475; and for payment to medical providers for treatment of Mr. Westring, $13,903.33.
Sec. 2. OFFICE OF THE COURT ADMINISTRATOR.
(a) $34,049.10 is appropriated from the general fund in
fiscal year 2011 to the Office of the Court Administrator for payment to
William Howard Heins as full and final payment of his claim for compensation
for wrongful imprisonment.
(b) The Office of the Court Administrator shall ensure that
all fines and restitution balances listed by the Office of the Court Administrator
on the attachment to their April 9, 2010, letter to the Joint House/Senate
Subcommittee on Claims, except item number seven on that list, are paid out of
the payment to Mr. Heins in paragraph
(a). The amounts to be paid total
$8,565.10, or so much of that amount as is still owed when Mr. Heins receives the payment provided for in
paragraph (a).
(c) Before receiving payment under paragraph (a), Mr. Heins must sign a release agreeing that it is
a full and final payment of his claim against the state, or political
subdivision of the state, or any employee of the state or political subdivision
for wrongful imprisonment in 2007 and 2008 and that he will not request or
accept credit against any future sentences imposed on him for that time of wrongful
imprisonment. The Office of the Court
Administrator shall reduce the amount of any payment under this section to
reflect any credit given to Mr. Heins
for the wrongful imprisonment covered by the payment in any sentencing
proceeding before the payment is made."
With the recommendation that when so amended the bill pass
and be re-referred to the Committee on Ways and Means.
The report was adopted.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10815
Carlson from the
Committee on Finance to which was referred:
H. F. No. 3748, A bill for an act relating to
local government; authorizing chairs and ranking minority members of the
Committees on Finance and Ways and Means to request local impact notes;
amending Minnesota Statutes 2008, section 3.987, subdivision 1.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Solberg from the Committee on Ways and Means to which was
referred:
H. F. No. 3790, A bill for an act relating to
state government; appropriating money from constitutionally dedicated funds and
providing for expenditure accountability, administration, and governance of
outdoor heritage, clean water, parks and trails, and arts and cultural heritage
purposes; establishing and modifying grants, programs, fees, and accounts;
requiring reports; amending Minnesota Statutes 2008, sections 3.971, by adding
a subdivision; 97A.056, by adding subdivisions; Minnesota Statutes 2009
Supplement, sections 85.53, subdivision 2; 103G.271, subdivision 6; 114D.50,
subdivision 4; 129D.17, subdivision 2; Laws 2009, chapter 172, article 2,
section 4; proposing coding for new law in Minnesota Statutes, chapters 3;
103G; repealing Laws 2009, chapter 172, article 5, section 9.
Reported the same back with the recommendation that the bill
pass.
The report was adopted.
Lenczewski from the Committee on Taxes to which was referred:
H. F. No. 3809, A bill for an act relating to
taxes; increasing the surcharge on managed care plans; increasing managed care
payment rates; amending Minnesota Statutes 2008, sections 256.9657, subdivision
3; 256B.69, by adding a subdivision.
Reported the same back with the recommendation that the bill
pass and be re-referred to the Committee on Ways and Means.
The report was adopted.
Lenczewski from the Committee on Taxes to which was referred:
S. F. No. 1126, A bill for an act relating to
real property; modifying procedures relating to uses and conveyances of
tax-forfeited property; amending Minnesota Statutes 2008, section 282.01,
subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions;
repealing Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, 11;
383A.76.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1.
Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to
read:
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10816
Subdivision 1. Classification
as conservation or nonconservation. It
is the general policy of this state to encourage the best use of tax-forfeited
lands, recognizing (a) When acting on behalf of the state under laws
allowing the county board to classify and manage tax-forfeited lands held by
the state in trust for the local units as provided in section 281.25, the
county board has the discretion to decide that some lands in public
ownership should be retained and managed for public benefits while other lands
should be returned to private ownership.
Parcels of land becoming the property of the state in trust under law
declaring the forfeiture of lands to the state for taxes must be classified by
the county board of the county in which the parcels lie as conservation or
nonconservation. In making the
classification the board shall consider the present use of adjacent lands, the
productivity of the soil, the character of forest or other growth,
accessibility of lands to established roads, schools, and other public
services, their peculiar suitability or desirability for particular uses,
and the suitability of the forest resources on the land for multiple use,
and sustained yield management. The
classification, furthermore, must:
(1) encourage and foster a mode of land utilization that will
facilitate the economical and adequate provision of transportation, roads,
water supply, drainage, sanitation, education, and recreation; (2) facilitate
reduction of governmental expenditures; (3) conserve and develop the
natural resources; and (4) foster and develop agriculture and other
industries in the districts and places best suited to them.
In making the classification
the county board may use information made available by any office or department
of the federal, state, or local governments, or by any other person or agency
possessing pertinent information at the time the classification is made. The lands may be reclassified from time to
time as the county board considers necessary or desirable, except for
conservation lands held by the state free from any trust in favor of any taxing
district.
If the lands are located
within the boundaries of an organized town, with taxable valuation in excess of
$20,000, or incorporated municipality, the classification or reclassification
and sale must first be approved by the town board of the town or the governing
body of the municipality in which the lands are located. The town board of the town or the governing
body of the municipality is considered to have approved the classification or
reclassification and sale if the county board is not notified of the disapproval
of the classification or reclassification and sale within 60 days of the date
the request for approval was transmitted to the town board of the town or
governing body of the municipality. If
the town board or governing body desires to acquire any parcel lying in the
town or municipality by procedures authorized in this section, it must file a
written application with the county board to withhold the parcel from public
sale. The application must be filed within
60 days of the request for classification or reclassification and sale. The county board shall then withhold the
parcel from public sale for six months.
A municipality or governmental subdivision shall pay maintenance costs
incurred by the county during the six-month period while the property is
withheld from public sale, provided the property is not offered for public sale
after the six-month period. A clerical
error made by county officials does not serve to eliminate the request of the
town board or governing body if the board or governing body has forwarded the
application to the county auditor. If
the town board or governing body of the municipality fails to submit an
application and a resolution of the board or governing body to acquire the property
within the withholding period, the county may offer the property for sale upon
the expiration of the withholding period.
(b) Whenever the county
board deems it appropriate, the board may hold a meeting for the purpose of
reclassifying tax-forfeited land that has not been sold or released from the
trust. The criteria and procedures for
reclassification are the same as those required for an initial classification.
(c) Prior to meeting for the
purpose of classifying or reclassifying tax-forfeited lands, the county board
must give notice of its intent to meet for that purpose as provided in this
paragraph. The notice must be given no
more than 90 days and no less than 60 days before the date of the meeting;
provided that if the meeting is rescheduled, notice of the new date, time, and
location must be given at least 14 days before the date of the rescheduled
meeting. The notice must be posted on a
Web site. The notice must also be mailed
or otherwise delivered to each person who has filed a request for notice of
special meetings with the public body, regardless of whether the matter is
considered at a regular or special meeting.
The notice must be mailed or delivered at least 60 days before the date
of the meeting.
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Day - Wednesday, April 28, 2010 - Top of Page 10817
If the meeting
is rescheduled, notice of the new date, time, and location must be mailed or
delivered at least 14 days before the date of the rescheduled meeting. The public body shall publish the notice
once, at least 30 days before the meeting, in a newspaper of general
circulation within the area of the public body's authority. The board must also mail a notice by
electronic means to each person who requests notice of meetings dealing with
this subject and who agrees as provided in chapter 325L to accept notice that
is mailed by electronic means. Receipt
of actual notice under the conditions specified in section 13D.04, subdivision
7, satisfies the notice requirements of this paragraph.
The board may classify or reclassify tax-forfeited lands at
any regular or special meeting, as those terms are defined in chapter 13D and
may conduct only this business, or this business as well as other business or
activities at the meeting.
(d) At the meeting, the county board must allow any person or
agency possessing pertinent information to make or submit comments and
recommendations about the pending classification or reclassification. In addition, representatives of governmental
entities in attendance must be allowed to describe plans, ideas, or projects
that may involve use or acquisition of the property by that or another
governmental entity. The county board
must solicit and consider any relevant components of current municipal or
metropolitan comprehensive land use plans that incorporate the area in which
the land is located. After allowing
testimony, the board may classify, reclassify, or delay taking action on any
parcel or parcels. In order for a state
agency or a governmental subdivision of the state to preserve its right to
request a purchase or other acquisition of a forfeited parcel, it may, at any
time following forfeiture, file a written request to withhold the parcel from
sale or lease to others under the provisions of subdivision 1a.
(e) When classifying, reclassifying, appraising, and selling
lands under this chapter, the county board may designate the tracts as assessed
and acquired, or may by resolution provide for the subdivision of the tracts
into smaller units or for the grouping of several tracts into one tract when
the subdivision or grouping is deemed advantageous for conservation or sale
purposes. This paragraph does not
authorize the county board to subdivide a parcel or tract of tax-forfeited land
that, as assessed and acquired, is withheld from sale under section 282.018,
subdivision 1.
(f) A county board may by resolution elect to use the
classification and reclassification procedures provided in paragraphs (g), (h),
and (i), instead of the procedures provided in paragraphs (b), (c), and
(d). Once an election is made under this
paragraph, it is effective for a minimum of five years.
(g) The classification or reclassification of tax-forfeited
land that has not been sold or released from the trust may be made by the
county board using information made available to it by any office or department
of the federal, state, or local governments, or by any other person or agency
possessing pertinent information at the time the classification is made.
(h) If the lands are located within the boundaries of an
organized town or incorporated municipality, a classification or
reclassification and sale must first be approved by the town board of the town
or the governing body of the municipality in which the lands are located. The town board of the town or the governing
body of the municipality is considered to have approved the classification or
reclassification and sale if the county board is not notified of the
disapproval of the classification or reclassification and sale within 60 days
of the date the request for approval was transmitted to the town board of the
town or governing body of the municipality.
If the town board or governing body disapproves of the classification or
reclassification and sale, the county board must follow the procedures in
paragraphs (c) and (d), with regard to the parcel, and must additionally cause
to be published in a newspaper a notice of the date, time, location, and
purpose of the required meeting.
(i) If a town board or a governing body of a municipality or a
park and recreation board in a city of the first class desires to acquire any
parcel lying in the town or municipality by procedures authorized in this
section, it may file a written request under subdivision 1a, paragraph (a).
EFFECTIVE
DATE. This section is effective July 1,
2010.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10818
Sec. 2. Minnesota Statutes 2008, section 282.01,
subdivision 1a, is amended to read:
Subd. 1a. Conveyance; generally to public
entities. (a) Upon written
request from a state agency or a governmental subdivision of the state, a
parcel of unsold tax-forfeited land must be withheld from sale or lease to
others for a maximum of six months. The
request must be submitted to the county auditor. Upon receipt, the county auditor must withhold
the parcel from sale or lease to any other party for six months, and must confirm
the starting date of the six-month withholding period to the requesting agency
or subdivision. If the request is from a
governmental subdivision of the state, the governmental subdivision must pay
the maintenance costs incurred by the county during the period the parcel is
withheld. The county board may approve a
sale or conveyance to the requesting party during the withholding period. A conveyance of the property to the
requesting party terminates the withholding period.
A governmental subdivision of the state must not make, and a
county auditor must not act upon, a second request to withhold a parcel from
sale or lease within 18 months of a previous request for that parcel. A county may reject a request made under this
paragraph if the request is made more than 30 days after the county has given
notice to the requesting state agency or governmental subdivision of the state
that the county intends to sell or otherwise dispose of the property.
(b) Nonconservation tax-forfeited lands may be sold by
the county board, for their market value as determined by the county board,
to an organized or incorporated governmental subdivision of the state for any
public purpose for which the subdivision is authorized to acquire property or. When the term "market value" is
used in this section, it means an estimate of the full and actual market value
of the parcel as determined by the county board, but in making this
determination, the board and the persons employed by or under contract with the
board in order to perform, conduct, or assist in the determination, are exempt
from the licensure requirements of chapter 82B.
(c) Nonconservation tax-forfeited lands may be
released from the trust in favor of the taxing districts on application of
to the county board by a state agency for an authorized use at not less
than their market value as determined by the county board.
(d) Nonconservation tax-forfeited lands may be sold by the
county board to an organized or incorporated governmental subdivision of the
state or state agency for less than their market value if:
(1) the county board determines that a sale at a reduced price
is in the public interest because a reduced price is necessary to provide an incentive
to correct the blighted conditions that make the lands undesirable in the open
market, or the reduced price will lead to the development of affordable
housing; and
(2) the governmental subdivision or state agency has
documented its specific plans for correcting the blighted conditions or
developing affordable housing, and the specific law or laws that empower it to
acquire real property in furtherance of the plans.
If the sale under this paragraph is to a governmental
subdivision of the state, the commissioner of revenue must convey the property
on behalf of the state by quit claim deed.
If the sale under this paragraph is to a state agency, the commissioner
must issue a conveyance document that releases the property from the trust in
favor of the taxing districts.
(e) Nonconservation tax-forfeited land held in trust in favor
of the taxing districts may be conveyed by the commissioner of revenue may
convey by deed in the name of the state a tract of tax-forfeited land held
in trust in favor of the taxing districts to a governmental subdivision for
an authorized public use, if an application is submitted to the commissioner
which includes a statement of facts as to the use to be made of the tract and
the need therefor and the favorable recommendation of the county
board. For the purposes of this
paragraph, "authorized public use" means a use that allows an
indefinite segment of the public to physically use and enjoy the property in
numbers appropriate to its size and use, or is for a public service
facility. Authorized public uses as
defined in this paragraph are limited to:
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10819
(1) a road, or
right-of-way for a road;
(2) a park that is both available to, and accessible by, the
public that contains amenities such as campgrounds, playgrounds, athletic
fields, trails, or shelters;
(3) trails for walking, bicycling, snowmobiling, or other
recreational purposes, along with a reasonable amount of surrounding land
maintained in its natural state;
(4) transit facilities for buses, light rail transit, commuter
rail or passenger rail, including transit ways, park-and-ride lots, transit
stations, maintenance and garage facilities, and other facilities related to a
public transit system;
(5) public beaches or boat launches;
(6) public parking;
(7) civic recreation or conference facilities; and
(8) public service facilities such as fire halls, police
stations, lift stations, water towers, sanitation facilities, water treatment
facilities, and administrative offices.
No monetary
compensation or consideration is required for the conveyance, except as provided
in subdivision 1g, but the conveyance is subject to the conditions provided in
law, including, but not limited to, the reversion provisions of subdivisions 1c
and 1d.
(f) The commissioner of revenue shall convey a parcel of
nonconservation tax-forfeited land to a local governmental subdivision of the
state by quit claim deed on behalf of the state upon the favorable
recommendation of the county board if the governmental subdivision has
certified to the board that prior to forfeiture the subdivision was entitled to
the parcel under a written development agreement or instrument, but the
conveyance failed to occur prior to forfeiture.
No compensation or consideration is required for, and no conditions
attach to, the conveyance.
(g) The commissioner of revenue shall convey a parcel of
nonconservation tax-forfeited land to the association of a common interest
community by quit claim deed upon the favorable recommendation of the county
board if the association certifies to the board that prior to forfeiture the
association was entitled to the parcel under a written agreement, but the
conveyance failed to occur prior to forfeiture.
No compensation or consideration is required for, and no conditions
attach to, the conveyance.
(h) Conservation tax-forfeited land may be sold to a
governmental subdivision of the state for less than its market value for
either: (1) creation or preservation of
wetlands; (2) drainage or storage of storm water under a storm water management
plan; or (3) preservation, or restoration and preservation, of the land in its
natural state. The deed must contain a
restrictive covenant limiting the use of the land to one of these purposes for
30 years or until the property is reconveyed back to the state in trust. At any time, the governmental subdivision may
reconvey the property to the state in trust for the taxing districts. The deed of reconveyance is subject to
approval by the commissioner of revenue.
No part of a purchase price determined under this paragraph shall be
refunded upon a reconveyance, but the amount paid for a conveyance under this
paragraph may be taken into account by the county board when setting the terms
of a future sale of the same property to the same governmental subdivision
under paragraph (b) or (d). If the lands
are unplatted and located outside of an incorporated municipality and the
commissioner of natural resources determines there is a mineral use potential,
the sale is subject to the approval of the commissioner of natural resources.
(i) A park and recreation board in a city of the first class
is a governmental subdivision for the purposes of this section.
EFFECTIVE
DATE. This section is effective July 1,
2010.
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Day - Wednesday, April 28, 2010 - Top of Page 10820
Sec. 3. Minnesota Statutes 2008, section 282.01,
subdivision 1b, is amended to read:
Subd. 1b. Conveyance;
targeted neighborhood community lands. (a) Notwithstanding subdivision
1a, in the case of tax-forfeited lands located in a targeted neighborhood,
as defined in section 469.201, subdivision 10 community in a city of the
first class, the commissioner of revenue shall convey by quit claim deed
in the name of the state any tract of tax-forfeited land held in trust in favor
of the taxing districts, to a political subdivision of the state that
submits an application to the commissioner of revenue and the favorable recommendation
of the county board. For purposes of
this subdivision, the term "targeted community" has the meaning given
in section 469.201, subdivision 10, except that the land must be located within
a first class city.
(b) The application under
paragraph (a) must include a statement of facts as to the use to be made of the
tract, the need therefor, and a resolution, adopted by the governing body of
the political subdivision, finding that the conveyance of a tract of
tax-forfeited land to the political subdivision is necessary to provide for the
redevelopment of land as productive taxable property. Deeds of conveyance issued under paragraph
(a) are not conditioned on continued use of the property for the use stated in
the application.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 4. Minnesota Statutes 2008, section 282.01,
subdivision 1c, is amended to read:
Subd. 1c. Deed
of conveyance; form; approvals. The
deed of conveyance for property conveyed for a an authorized
public use under the authorities in subdivision 1a, paragraph (e), must
be on a form approved by the attorney general and must be conditioned on
continued use for the purpose stated in the application as provided in this
section. These deeds are conditional use
deeds that convey a defeasible estate.
Reversion of the estate occurs by operation of law and without the
requirement for any affirmative act by or on behalf of the state when there is
a failure to put the property to the approved authorized public use for which
it was conveyed, or an abandonment of that use, except as provided in
subdivision 1d.
EFFECTIVE DATE. This section is effective July 1, 2010.
Sec. 5. Minnesota Statutes 2008, section 282.01,
subdivision 1d, is amended to read:
Subd. 1d. Reverter
for failure to use; conveyance to state.
(a) If after three years from the date of the conveyance a
governmental subdivision to which tax-forfeited land has been conveyed for a
specified an authorized public use as provided in this section
subdivision 1a, paragraph (e), fails to put the land to that use, or
abandons that use, the governing body of the subdivision may,
must: (1) with the approval of the
county board, purchase the property for an authorized public purpose at the
present appraised market value as determined by the county board. In that case, the commissioner of revenue
shall, upon proper written application approved by the county board, issue an
appropriate deed to the subdivisions free of a use restriction and
reverter. The governing body may also,
or (2) authorize the proper officers to convey the land, or the part of the
land not required for an authorized public use, to the state of Minnesota. in trust for the taxing
districts. If the governing body
purchases the property under clause (1), the commissioner of revenue shall,
upon proper application submitted by the county auditor, convey the property on
behalf of the state by quit claim deed to the subdivision free of a use
restriction and the possibility of reversion or defeasement. If the governing body decides to reconvey the
property to the state under this clause, the officers shall execute a deed
of conveyance immediately. The
conveyance is subject to the approval of the commissioner and its form must be
approved by the attorney general. A
sale, lease, transfer, or other conveyance of tax-forfeited lands by a housing
and redevelopment authority, a port authority, an economic development
authority, or a city as authorized by chapter 469 is not an abandonment of use
and the lands shall not be reconveyed to the state nor shall they revert to the
state. A certificate made by a housing
and redevelopment authority, a port authority, an economic development
authority, or a city referring to a conveyance by it and stating that the
conveyance has been made as authorized by chapter 469 may be filed with the
county recorder or registrar of titles, and the rights of
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10821
reverter in
favor of the state provided by subdivision 1e will then terminate. No vote of the people is required for the
conveyance. For the purposes of this
paragraph, there is no failure to put the land to the authorized public use and
no abandonment of that use if a formal plan of the governmental subdivision,
including, but not limited to, a comprehensive plan or land use plan that shows
an intended future use of the land for the authorized public use.
(b) Property held by a governmental subdivision of the state
under a conditional use deed executed under subdivision 1a, paragraph (e), by
the commissioner of revenue on or after January 1, 2007, may be acquired by
that governmental subdivision after 15 years from the date of the conveyance if
the commissioner determines upon written application from the subdivision that
the subdivision has in fact put the property to the authorized public use for
which it was conveyed, and the subdivision has made a finding that it has no
current plans to change the use of the lands.
Prior to conveying the property, the commissioner shall inquire whether
the county board where the land is located objects to a conveyance of the
property to the subdivision without conditions and without further act by or
obligation of the subdivision. If the
county does not object within 60 days, and the commissioner makes a favorable
determination, the commissioner shall issue a quit claim deed on behalf of the
state unconditionally conveying the property to the governmental
subdivision. For purposes of this
paragraph, demonstration of an intended future use for the authorized public
use in a formal plan of the governmental subdivision does not constitute use
for that authorized public use.
(c) Property held by a governmental subdivision of the state
under a conditional use deed executed under subdivision 1a, paragraph (e), by
the commissioner of revenue before January 1, 2007, is released from the use
restriction and possibility of reversion on January 1, 2022, if the county
board records a resolution describing the land and citing this paragraph. The county board may authorize the county
treasurer to deduct the amount of the recording fees from future settlements of
property taxes to the subdivision.
(d) All property conveyed under a conditional use deed
executed under subdivision 1a, paragraph (e), by the commissioner of revenue is
released from the use restriction and reverter, and any use restriction or
reverter for which no declaration of reversion has been recorded with the
county recorder or registrar of titles, as appropriate, is nullified on the
later of: (1) January 1, 2015; (2) 30
years from the date the deed was acknowledged; or (3) final resolution of an
appeal to district court under subdivision 1e, if a lis pendens related to the
appeal is recorded in the office of the county recorder or registrar of titles,
as appropriate, prior to January 1, 2015.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 6. Minnesota
Statutes 2008, section 282.01, is amended by adding a subdivision to read:
Subd. 1g.
Conditional use deed fees. (a) A governmental subdivision of the
state applying for a conditional use deed under subdivision 1a, paragraph (e),
must submit a fee of $250 to the commissioner of revenue along with the
application. If the application is denied,
the commissioner shall refund $150 of the application fee.
(b) The proceeds from the fees must be deposited in a
Department of Revenue conditional use deed revolving fund. The sums deposited into the revolving fund are
appropriated to the commissioner of revenue for the purpose of making the
refunds described in this subdivision, and administering conditional use deed
laws.
EFFECTIVE
DATE. This section is effective for
applications received by the commissioner after June 30, 2010.
Sec. 7. Minnesota
Statutes 2008, section 282.01, is amended by adding a subdivision to read:
Subd. 1h.
Conveyance; form. The instruments of conveyance executed
and issued by the commissioner of revenue under subdivision 1a, paragraphs (c),
(d), (e), (f), (g), and (h), and subdivision 1d, paragraph (b), must be on a
form approved by the attorney general and are prima facie evidence of the facts
stated therein and that the execution and issuance of the conveyance complies
with the applicable laws.
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EFFECTIVE DATE. This section is effective for deeds executed by the
commissioner of revenue after June 30, 2010.
Sec. 8. Minnesota
Statutes 2008, section 282.01, subdivision 2, is amended to read:
Subd. 2. Conservation lands; county board
supervision. (a) Lands
classified as conservation lands, unless reclassified as nonconservation
lands, sold to a governmental subdivision of the state, designated as lands
primarily suitable for forest production and sold as hereinafter provided, or
released from the trust in favor of the taxing districts, as herein provided,
will must be held under the supervision of the county board of the
county within which such the parcels lie. and must not be conveyed or sold
unless the lands are:
The county board may, by resolution duly adopted, declare
lands classified as conservation lands as primarily suitable for timber
production and as lands which should be placed in private ownership for such
purposes. If such action be approved by
the commissioner of natural resources, the lands so designated, or any part
thereof, may be sold by the county board in the same manner as provided for the
sale of lands classified as nonconservation lands. Such county action and the approval of the
commissioner shall be limited to lands lying within areas zoned for restricted
uses under the provisions of Laws 1939, chapter 340, or any amendments thereof.
(1) reclassified as nonconservation lands;
(2) conveyed to a governmental subdivision of the state under
subdivision 1a;
(3) released from the trust in favor of the taxing districts
as provided in paragraph (b); or
(4) conveyed or sold under the authority of another general
or special law.
(b) The county board may, by resolution duly adopted, resolve
that certain lands classified as conservation lands shall be devoted to
conservation uses and may submit such a resolution to the
commissioner of natural resources. If,
upon investigation, the commissioner of natural resources determines that the lands
covered by such the resolution, or any part thereof, can be
managed and developed for conservation purposes, the commissioner shall make a
certificate describing the lands and reciting the acceptance thereof on behalf
of the state for such purposes. The commissioner shall transmit the
certificate to the county auditor, who shall note the same upon the auditor's
records and record the same with the county recorder. The title to all lands so accepted shall be
held by the state free from any trust in favor of any and all taxing districts
and such the lands shall be devoted thereafter to the purposes of
forestry, water conservation, flood control, parks, game refuges, controlled
game management areas, public shooting grounds, or other public recreational or
conservation uses, and managed, controlled, and regulated for such purposes
under the jurisdiction of the commissioner of natural resources and the
divisions of the department.
(c) All proceeds derived from the sale of timber, lease of
crops of hay, or other revenue from lands under the jurisdiction of the
commissioner of natural resources shall be credited to the general fund of the
state.
In case (d) If the
commissioner of natural resources shall determine determines that
any tract of land so held acquired by the state under
paragraph (b) and situated within or adjacent to the boundaries of any
governmental subdivision of the state is suitable for use by such the
subdivision for any authorized public purpose, the commissioner may convey such
the tract by deed in the name of the state to such the
subdivision upon the filing with the commissioner of a resolution adopted by a
majority vote of all the members of the governing body thereof, stating the
purpose for which the land is desired.
The deed of conveyance shall be upon a form approved by the attorney
general and must be conditioned upon continued use for the purpose
stated in the resolution. All
proceeds derived from the sale of timber, lease of hay stumpage, or other
revenue from such lands under the jurisdiction of the natural resources
commissioner shall be paid into the general fund of the state.
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(e) The county auditor, with
the approval of the county board, may lease conservation lands remaining under
the jurisdiction supervision of the county board and sell timber
and hay stumpage thereon in the manner hereinafter provided, and all proceeds
derived therefrom shall be distributed in the same manner as provided in
section 282.04.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 9. Minnesota
Statutes 2008, section 282.01, subdivision 3, is amended to read:
Subd. 3. Nonconservation lands; appraisal and
sale. (a) All parcels of land
classified as nonconservation, except those which may be reserved, shall be
sold as provided, if it is determined, by the county board of the county in
which the parcels lie, that it is advisable to do so, having in mind their
accessibility, their proximity to existing public improvements, and the effect
of their sale and occupancy on the public burdens. Any parcels of land proposed to be sold shall
be first appraised by the county board of the county in which the parcels
lie. The parcels may be reappraised
whenever the county board deems it necessary to carry out the intent of
sections 282.01 to 282.13.
(b) In an appraisal the value of the land and any standing
timber on it shall be separately determined.
No parcel of land containing any standing timber may be sold until the
appraised value of the timber on it and the sale of the land have been approved
by the commissioner of natural resources.
The commissioner shall base review of a proposed sale on the policy and
considerations specified in subdivision 1.
The decision of the commissioner shall be in writing and shall state the
reasons for it. The commissioner's
decision is exempt from the rulemaking provisions of chapter 14 and section
14.386 does not apply. The county may
appeal the decision of the commissioner in accordance with chapter 14.
(c) In any county in which a state forest or any part of
it is located, the county auditor shall submit to the commissioner at least 60
days before the first publication of the list of lands to be offered for sale a
list of all lands included on the list which are situated outside of any
incorporated municipality. If, at any
time before the opening of the sale, the commissioner notifies the county
auditor in writing that there is standing timber on any parcel of such
land, the parcel shall not be sold unless the requirements of this section
respecting the separate appraisal of the timber and the approval of the
appraisal by the commissioner have been complied with. The commissioner may waive the requirement of
the 60-day notice as to any parcel of land which has been examined and the
timber value approved as required by this section.
(d) If any public improvement is made by a municipality
after any parcel of land has been forfeited to the state for the nonpayment of
taxes, and the improvement is assessed in whole or in part against the property
benefited by it, the clerk of the municipality shall certify to the county auditor,
immediately upon the determination of the assessments for the improvement, the
total amount that would have been assessed against the parcel of land if it had
been subject to assessment; or if the public improvement is made, petitioned
for, ordered in or assessed, whether the improvement is completed in whole or
in part, at any time between the appraisal and the sale of the parcel of land,
the cost of the improvement shall be included as a separate item and added to
the appraised value of the parcel of land at the time it is sold. No sale of a parcel of land shall discharge
or free the parcel of land from lien for the special benefit conferred upon it
by reason of the public improvement until the cost of it, including penalties,
if any, is paid. The county board shall
determine the amount, if any, by which the value of the parcel was enhanced by
the improvement and include the amount as a separate item in fixing the
appraised value for the purpose of sale.
In classifying, appraising, and selling the lands, the county board
may designate the tracts as assessed and acquired, or may by resolution provide
for the subdivision of the tracts into smaller units or for the grouping of
several tracts into one tract when the subdivision or grouping is deemed advantageous
for the purpose of sale. Each such
smaller tract or larger tract must be classified and appraised as such before
being offered for sale. If any such
lands have once been classified, the board of county commissioners, in its
discretion, may, by resolution, authorize the sale of the smaller tract or
larger tract without reclassification.
EFFECTIVE
DATE. This section is effective July 1,
2010.
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Top of Page 10824
Sec. 10. Minnesota Statutes 2008, section 282.01,
subdivision 4, is amended to read:
Subd. 4. Sale:
method, requirements, effects. The
sale authorized under subdivision 3 must be conducted by the county
auditor at the county seat of the county in which the parcels lie, except that
in St. Louis and Koochiching Counties, the sale may be conducted in any county
facility within the county. The sale
must not be for less than the appraised value except as provided in subdivision
7a. The parcels must be sold for
cash only and at not less than the appraised value, unless the county
board of the county has adopted a resolution providing for their sale on terms,
in which event the resolution controls with respect to the sale. When the sale is made on terms other than for
cash only (1) a payment of at least ten percent of the purchase price must be
made at the time of purchase, and the balance must be paid in no more than ten
equal annual installments, or (2) the payments must be made in accordance with
county board policy, but in no event may the board require more than 12
installments annually, and the contract term must not be for more than ten
years. Standing timber or timber
products must not be removed from these lands until an amount equal to the
appraised value of all standing timber or timber products on the lands at the
time of purchase has been paid by the purchaser. If a parcel of land bearing standing timber
or timber products is sold at public auction for more than the appraised value,
the amount bid in excess of the appraised value must be allocated between the
land and the timber in proportion to their respective appraised values. In that case, standing timber or timber
products must not be removed from the land until the amount of the excess bid
allocated to timber or timber products has been paid in addition to the
appraised value of the land. The
purchaser is entitled to immediate possession, subject to the provisions of any
existing valid lease made in behalf of the state.
For sales occurring on or after July 1, 1982, the unpaid
balance of the purchase price is subject to interest at the rate determined
pursuant to section 549.09. The unpaid
balance of the purchase price for sales occurring after December 31, 1990, is
subject to interest at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to change each
year on the unpaid balance in the manner provided for rate changes in section
549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance on
sales occurring before July 1, 1982, is payable at the rate applicable to the sale
at the time that the sale occurred.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 11. Minnesota
Statutes 2008, section 282.01, subdivision 7, is amended to read:
Subd. 7. County sales; notice, purchase price,
disposition. The sale must commence
at the time determined by the county board of the county in which the parcels
are located. The county auditor shall
offer the parcels of land in order in which they appear in the notice of sale,
and shall sell them to the highest bidder, but not for a sum less than the
appraised value, until all of the parcels of land have been offered. Then the county auditor shall sell any
remaining parcels to anyone offering to pay the appraised value, except that if
the person could have repurchased a parcel of property under section 282.012 or
282.241, that person may not purchase that same parcel of property at the sale
under this subdivision for a purchase price less than the sum of all taxes,
assessments, penalties, interest, and costs due at the time of forfeiture
computed under section 282.251, and any special assessments for improvements
certified as of the date of sale. The
sale must continue until all the parcels are sold or until the county board
orders a reappraisal or withdraws any or all of the parcels from sale. The list of lands may be added to and the
added lands may be sold at any time by publishing the descriptions and
appraised values. The added lands must be: (1) parcels of land that have become
forfeited and classified as nonconservation since the commencement of any prior
sale; (2) parcels classified as nonconservation that have been
reappraised; (3) parcels that have been reclassified as nonconservation; or (4)
other parcels that are subject to sale but were omitted from the existing list
for any reason. The descriptions and
appraised values must be published in the same manner as provided for the
publication of the original list.
Parcels added to the list must first be offered for sale to the highest
bidder before they are sold at appraised value.
All parcels of land not offered for immediate sale, as well as parcels
that are offered and not immediately sold, continue to be held in trust by the
state for the taxing districts interested in each of the parcels, under the
supervision of the county board. Those
parcels may be used for public purposes until sold, as directed by the county
board.
EFFECTIVE
DATE. This section is effective July 1,
2010.
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Sec. 12. Minnesota Statutes 2008, section 282.01,
subdivision 7a, is amended to read:
Subd. 7a. City sales; alternate procedures. Land located in a home rule charter or statutory
city, or in a town which cannot be improved because of noncompliance with local
ordinances regarding minimum area, shape, frontage or access may be sold by the
county auditor pursuant to this subdivision if the auditor determines that a
nonpublic sale will encourage the approval of sale of the land by the city or
town and promote its return to the tax rolls.
If the physical characteristics of the land indicate that its highest
and best use will be achieved by combining it with an adjoining parcel and the
city or town has not adopted a local ordinance governing minimum area, shape,
frontage, or access, the land may also be sold pursuant to this
subdivision. If the property consists of
an undivided interest in land or land and improvements, the property may also
be sold to the other owners under this subdivision. The sale of land pursuant to this subdivision
shall be subject to any conditions imposed by the county board pursuant to
section 282.03. The governing body of
the city or town may recommend to the county board conditions to be imposed on
the sale. The county auditor may
restrict the sale to owners of lands adjoining the land to be sold. The county auditor shall conduct the sale by
sealed bid or may select another means of sale.
The land shall be sold to the highest bidder but in no event shall
the land and may be sold for less than its appraised value. All owners of land adjoining the land to be
sold shall be given a written notice at least 30 days prior to the sale.
This subdivision shall be liberally construed to encourage the
sale and utilization of tax-forfeited land, to eliminate nuisances and
dangerous conditions and to increase compliance with land use ordinances.
EFFECTIVE
DATE. This section is effective July 1,
2010.
Sec. 13. Minnesota
Statutes 2008, section 282.01, is amended by adding a subdivision to read:
Subd. 12.
Notice; public hearing for use
change. If a governmental
subdivision that acquired a parcel for public use under this section later
determines to change the use, it must hold a public hearing on the proposed use
change. The governmental subdivision
must mail written notice of the proposed use change and the public hearing to
each owner of property that is within 400 feet of the parcel at least ten days
and no more than 60 days before it holds the hearing. The notice must identify: (1) the parcel, (2) its current use, (3) the
proposed use, (4) the date, time, and place of the public hearing, and (5)
where to submit written comments on the proposal and that the public is invited
to testify at the public hearing.
EFFECTIVE
DATE. This section is effective July 1,
2010, and applies to a change in use of a parcel acquired under Minnesota
Statutes, section 282.01, whether acquired by the governmental subdivision
before or after the effective date of this section.
Sec. 14. REPEALER.
Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10,
and 11; and 383A.76, are repealed.
EFFECTIVE
DATE. This section is effective July 1,
2010."
Delete the title and insert:
"A bill for an act relating to real property; modifying
procedures relating to uses and conveyances of tax-forfeited property; amending
Minnesota Statutes 2008, section 282.01, subdivisions 1, 1a, 1b, 1c, 1d, 2, 3,
4, 7, 7a, by adding subdivisions; repealing Minnesota Statutes 2008, sections
282.01, subdivisions 9, 10, 11; 383A.76."
With the recommendation that when so amended the bill pass.
The report was adopted.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10826
Carlson from the
Committee on Finance to which was referred:
S. F. No. 2505, A bill for an act relating to
child care; appropriating money to provide statewide child care provider
training, coaching, consultation, and supports to prepare for the voluntary
Minnesota quality rating system.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
EARLY CHILDHOOD EDUCATION, PREVENTION, SELF-SUFFICIENCY, AND
LIFELONG LEARNING
Section 1. Minnesota
Statutes 2008, section 121A.16, is amended to read:
121A.16 EARLY CHILDHOOD
HEALTH AND DEVELOPMENT SCREENING; PURPOSE.
The legislature finds that early detection of children's
health and developmental problems can reduce their later need for costly care,
minimize their physical and educational disabilities, and aid in their
rehabilitation. The purpose of sections
121A.16 to 121A.19 is to assist parents and communities in improving the health
of Minnesota children and in planning educational and health programs. Charter schools that elect to provide a
screening program must comply with the requirements of sections 121A.16 to
121A.19.
Sec. 2. Minnesota
Statutes 2008, section 121A.17, subdivision 5, is amended to read:
Subd. 5. Developmental screening program
information. The board must inform
each resident family with a child eligible to participate in the developmental
screening program, and a charter school that provides screening must inform
families that apply for admission to the charter school, about the
availability of the program and the state's requirement that a child receive a
developmental screening or provide health records indicating that the child
received a comparable developmental screening from a public or private health
care organization or individual health care provider not later than 30 days
after the first day of attending kindergarten in a public school. A school district must inform all resident
families with eligible children under age seven, and a charter school that
provides screening must inform families that apply for admission to the charter
school, that their children may receive a developmental screening conducted
either by the school district or by a public or private health care
organization or individual health care provider and that the screening is not
required if a statement signed by the child's parent or guardian is submitted
to the administrator or other person having general control and supervision of
the school that the child has not been screened.
Sec. 3. Minnesota
Statutes 2009 Supplement, section 124D.10, subdivision 8, is amended to read:
Subd. 8. Federal, state, and local
requirements. (a) A charter school
shall meet all federal, state, and local health and safety requirements
applicable to school districts.
(b) A school must comply with statewide accountability
requirements governing standards and assessments in chapter 120B.
(c) A school sponsored by a school board may be located in any
district, unless the school board of the district of the proposed location
disapproves by written resolution.
(d) A charter school must be nonsectarian in its programs,
admission policies, employment practices, and all other operations. A sponsor may not authorize a charter school
or program that is affiliated with a nonpublic sectarian school or a religious
institution. A charter school student
must be released for religious instruction, consistent with section 120A.22,
subdivision 12, clause (3).
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Top of Page 10827
(e) Charter schools
must not be used as a method of providing education or generating revenue for
students who are being home-schooled.
(f) The primary focus of a charter school must be to provide
a comprehensive program of instruction for at least one grade or age group from
five through 18 years of age.
Instruction may be provided to people younger than five years and older
than 18 years of age.
(g) A charter school may not charge tuition.
(h) A charter school is subject to and must comply with
chapter 363A and section 121A.04.
(i) A charter school is subject to and must comply with the
Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the Minnesota Public
School Fee Law, sections 123B.34 to 123B.39.
(j) A charter school is subject to the same financial audits,
audit procedures, and audit requirements as a district. Audits must be conducted in compliance with
generally accepted governmental auditing standards, the Federal Single Audit
Act, if applicable, and section 6.65. A
charter school is subject to and must comply with sections 15.054; 118A.01;
118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and
471.425. The audit must comply with the
requirements of sections 123B.75 to 123B.83, except to the extent deviations
are necessary because of the program at the school. Deviations must be approved by the
commissioner and authorizer. The
Department of Education, state auditor, legislative auditor, or authorizer may
conduct financial, program, or compliance audits. A charter school determined to be in
statutory operating debt under sections 123B.81 to 123B.83 must submit a plan
under section 123B.81, subdivision 4.
(k) A charter school is a district for the purposes of tort
liability under chapter 466.
(l) A charter school must comply with chapters 13 and 13D;
and sections 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 and
5.
(m) A charter school is subject to the Pledge of Allegiance
requirement under section 121A.11, subdivision 3.
(n) A charter school offering online courses or programs must
comply with section 124D.095.
(o) A charter school and charter school board of directors
are subject to chapter 181.
(p) A charter school must comply with section 120A.22, subdivision
7, governing the transfer of students' educational records and sections 138.163
and 138.17 governing the management of local records.
(q) A charter school that provides early childhood health and
developmental screening must comply with sections 121A.16 to 121A.19.
Sec. 4. Minnesota
Statutes 2008, section 124D.141, subdivision 1, is amended to read:
Subdivision 1. Membership; duties. Two members of the house of
representatives, one appointed by the speaker and one appointed by the minority
leader; and two members of the senate appointed by the Subcommittee on
Committees of the Committee on Rules and Administration, including one member
of the minority; the commissioner of health or the commissioner's designee;
and two parents with a child under age six, shall be added to the membership of
the State Advisory Council on Early Education and Care. The council must fulfill the duties required
under the federal Improving Head Start for School Readiness Act of 2007 as
provided in Public Law 110‑134.
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Top of Page 10828
Sec. 5. Minnesota Statutes 2008, section 124D.141,
subdivision 2, is amended to read:
Subd. 2. Additional duties. The following duties are added to those
assigned to the council under federal law:
(1) make recommendations on the most efficient and effective
way to leverage state and federal funding streams for early childhood and child
care programs;
(2) make recommendations on how to coordinate or colocate
early childhood and child care programs in one state Office of Early Learning;. The council shall establish a task force to
develop these recommendations. The task
force shall include two nonexecutive branch or nonlegislative branch
representatives from the council; six representatives from the early childhood
caucus; two representatives each from the Departments of Education, Human
Services, and Health; one representative each from a local public health
agency, a local county human services agency, and a school district; and two
representatives from the private nonprofit organizations that support early
childhood programs in Minnesota. In
developing recommendations in coordination with existing efforts of the
council, the task force shall consider how to:
(i) consolidate and coordinate resources and public funding
streams for early childhood education and child care, and ensure the
accountability and coordinated development of all early childhood education and
child care services to children from birth to kindergarten entrance;
(ii) create a seamless transition from early childhood
programs to kindergarten;
(iii) encourage family choice by ensuring a mixed system of high-quality
public and private programs, with local points of entry, staffed by
well-qualified professionals;
(iv) ensure parents a decisive role in the planning,
operation, and evaluation of programs that aid families in the care of
children;
(v) provide consumer education and accessibility to early
childhood education and child care resources;
(vi) advance the quality of early childhood education and
child care programs in order to support the healthy development of children and
preparation for their success in school;
(vii) develop a seamless service delivery system with local
points of entry for early childhood education and child care programs
administered by local, state, and federal agencies;
(viii) ensure effective collaboration between state and local
child welfare programs and early childhood mental health programs and the
Office of Early Learning;
(ix) develop and manage an effective data collection system
to support the necessary functions of a coordinated system of early childhood
education and child care in order to enable accurate evaluation of its impact;
(x) respect and be sensitive to family values and cultural
heritage; and
(xi) establish the administrative framework for and promote
the development of early childhood education and child care services in order
to provide that these services, staffed by well-qualified professionals, are
available in every community for all families that express a need for
them.
In addition, the task force must consider the following responsibilities
for transfer to the Office of Early Learning:
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Day - Wednesday, April 28, 2010 - Top of Page 10829
(A)
responsibilities of the commissioner of education for early childhood education
programs and financing under sections 119A.50 to 119A.535, 121A.16 to 121A.19,
and 124D.129 to 124D.2211;
(B) responsibilities of the
commissioner of human services for child care assistance, child care development,
and early childhood learning and child protection facilities programs and
financing under chapter 119B and section 256E.37; and
(C) responsibilities of the
commissioner of health for family home visiting programs and financing under
section 145A.17.
Any costs incurred by the
council in making these recommendations must be paid from private funds. If no private funds are received, the council
must not proceed in making these recommendations. The council must report its recommendations
to the governor and the legislature by January 15, 2011;
(3) review program
evaluations regarding high-quality early childhood programs; and
(4) make recommendations to
the governor and legislature, including proposed legislation on how to most
effectively create a high-quality early childhood system in Minnesota in order
to improve the educational outcomes of children so that all children are
school-ready by 2020.;
(5) make recommendations to
the governor and the legislature by March 1, 2011, on the creation and implementation
of a statewide school readiness report card to monitor progress toward the goal
of having all children ready for kindergarten by the year 2020. The recommendations shall include what should
be measured including both children and system indicators, what benchmarks
should be established to measure state progress toward the goal, and how
frequently the report card should be published.
In making their recommendations, the council shall consider the indicators
and strategies for Minnesota's early childhood system report, the Minnesota
school readiness study, developmental assessment at kindergarten entrance, and
the work of the council's accountability committee. Any costs incurred by the council in making
these recommendations must be paid from private funds. If no private funds are received, the council
must not proceed in making these recommendations; and
(6) make recommendations to
the governor and the legislature on how to screen earlier and comprehensively
assess children for school readiness in order to provide increased early
interventions and increase the number of children ready for kindergarten. In formulating their recommendations, the
council shall consider (i) ways to interface with parents of children who are
not participating in early childhood education or care programs, (ii) ways to
interface with family child care providers, child care centers, and
school-based early childhood and Head Start programs, (iii) if there are
age-appropriate and culturally sensitive screening and assessment tools for
three-, four-, and five-year-olds, (iv) the role of the medical community in
screening, (v) incentives for parents to have children screened at an earlier
age, (vi) incentives for early education and care providers to comprehensively assess
children in order to improve instructional practice, (vii) how to phase in
increases in screening and assessment over time, (viii) how the screening and
assessment data will be collected and used and who will have access to the
data, (ix) how to monitor progress toward the goal of having 50 percent of
three-year-old children screened and 50 percent of five-year-old children
assessed for school readiness by 2015 and 100 percent of three-year-old
children screened and five-year-old children assessed for school readiness by
2020, and (x) costs to meet these benchmarks.
The council shall consider the screening instruments and comprehensive
assessment tools used in Minnesota early childhood education and care programs
and kindergarten. The council may survey
early childhood education and care programs in the state to determine the
screening and assessment tools being used or rely on previously collected
survey data, if available. For purposes
of this subdivision, "school readiness" is defined as the child's
skills, knowledge, and behaviors at kindergarten entrance in these areas of
child development: social;
self-regulation; cognitive, including language, literacy, and mathematical
thinking; and physical. For purposes of
this subdivision, "screening" is defined as the activities used to
identify a child who may need further evaluation to determine delay in
development or disability. For purposes
of this subdivision, "assessment" is defined as the activities used
to
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10830
determine a
child's level of performance in order to promote the child's learning and
development. Any costs incurred by the
council in making these recommendations must be paid from private funds. If no private funds are received, the council
must not proceed in making these recommendations. The council must report its recommendations
to the governor and legislature by January 15, 2012, with an interim report on
February 15, 2011.
Sec. 6. Minnesota Statutes 2009 Supplement, section
124D.15, subdivision 3, is amended to read:
Subd. 3. Program
requirements. A school readiness
program provider must:
(1) assess each child's
cognitive skills with a comprehensive child assessment instrument when the
child enters and again before the child leaves the program to inform program
planning and parents and promote kindergarten readiness;
(2) provide comprehensive
program content and intentional instructional practice aligned with the state
early childhood learning guidelines and kindergarten standards and based on
early childhood research and professional practice that is focused on
children's cognitive, social, emotional, and physical skills and development
and prepares children for the transition to kindergarten, including early
literacy skills;
(3) coordinate appropriate
kindergarten transition with parents and kindergarten teachers;
(4) arrange for early childhood
screening and appropriate referral;
(5) (4) involve parents in program
planning and decision making;
(6) (5) coordinate with relevant
community-based services;
(7) (6) cooperate with adult basic
education programs and other adult literacy programs;
(8) (7) ensure staff-child ratios
of one-to-ten and maximum group size of 20 children with the first staff
required to be a teacher; and
(9) (8) have teachers knowledgeable
in early childhood curriculum content, assessment, and instruction.
Sec. 7. Minnesota Statutes 2008, section 124D.15,
subdivision 12, is amended to read:
Subd. 12. Program
fees. A district must adopt a
sliding fee schedule based on a family's income but must waive a fee for a
participant unable to pay. School
districts must use school readiness aid for eligible children. Children who do not meet the eligibility
requirements in subdivision 15 may participate on a fee-for-service basis.
Sec. 8. Minnesota Statutes 2008, section 124D.15, is
amended by adding a subdivision to read:
Subd. 15. Eligibility. A child is eligible to participate in
a school readiness program if the child:
(1) is at least three years
old on September 1;
(2) has completed health and
developmental screening within 90 days of program enrollment under sections
121A.16 to 121A.19; and
(3) has one or more of the
following risk factors:
(i) qualifies for free or
reduced-price lunch;
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10831
(ii) is an
English language learning child;
(iii) is homeless;
(iv) has an individualized education program (IEP) or an
individual interagency intervention plan (IIIP);
(v) is identified, through health and developmental
screenings under sections 121A.16 to 121A.19, with a potential risk factor that
may influence learning; or
(vi) is defined as at risk by the school district.
Sec. 9. Minnesota
Statutes 2008, section 124D.20, subdivision 8, is amended to read:
Subd. 8. Uses of general revenue. (a) General community education revenue
may be used for:
(1) nonvocational, recreational, and leisure time activities
and programs;
(2) programs for adults with disabilities, if the programs and
budgets are approved by the department;
(3) adult basic education programs, according to section
124D.52;
(4) summer programs for elementary and secondary pupils;
(5) implementation of a youth development plan;
(6) implementation of a youth service program;
(7) early childhood family education programs, according to
section 124D.13; and
(8) school readiness programs, according to section
124D.15; and
(9) extended day programs, according to section 124D.19,
subdivision 11.
(9) (b) In addition to money from other sources, a
district may use up to ten percent of its community education revenue for
equipment that is used exclusively in community education programs. This revenue may be used only for the following
purposes:
(i) (1) to purchase or lease computers and
related materials;
(ii) (2) to purchase or lease equipment for
instructional programs; and
(iii) (3) to purchase textbooks and library
books.
(b) (c) General community education revenue
must not be used to subsidize the direct activity costs for adult enrichment
programs. Direct activity costs include,
but are not limited to, the cost of the activity leader or instructor, cost of
materials, or transportation costs.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10832
ARTICLE 2
CHILD CARE
Section 1. Minnesota
Statutes 2008, section 119B.025, subdivision 1, is amended to read:
Subdivision 1. Factors which must be verified. (a) The county shall verify the following
at all initial child care applications using the universal application:
(1) identity of adults;
(2) presence of the minor child in the home, if questionable;
(3) relationship of minor child to the parent, stepparent,
legal guardian, eligible relative caretaker, or the spouses of any of the
foregoing;
(4) age;
(5) immigration status, if related to eligibility;
(6) Social Security number, if given;
(7) income;
(8) spousal support and child support payments made to persons
outside the household;
(9) residence; and
(10) inconsistent information, if related to eligibility.
(b) If a family did not use the universal application or child
care addendum to apply for child care assistance, the family must complete the
universal application or child care addendum at its next eligibility
redetermination and the county must verify the factors listed in paragraph (a)
as part of that redetermination. Once a
family has completed a universal application or child care addendum, the county
shall use the redetermination form described in paragraph (c) for that family's
subsequent redeterminations. Eligibility
must be redetermined at least every six months.
For a family where at least one parent is under the age of 21, does
not have a high school or general equivalency diploma, and is a student in a
school district or another similar program that provides or arranges for child
care, as well as parenting, social services, career and employment supports,
and academic support to achieve high school graduation, the redetermination of
eligibility shall be deferred beyond six months, but not to exceed 12 months,
to the end of the student's school year.
If a family reports a change in an eligibility factor before the
family's next regularly scheduled redetermination, the county must recalculate
eligibility without requiring verification of any eligibility factor that did
not change.
(c) The commissioner shall develop a redetermination form to
redetermine eligibility and a change report form to report changes that
minimize paperwork for the county and the participant.
(d) Families have the primary responsibility to verify
information. A county must consider the
family's circumstances and ability to produce verification when initiating a
request for verification. If a family is
unable to verify an eligibility factor, the county must request written consent
from the family to obtain verification from other sources. A county may not request a specific form of
verification if another is more readily available. When verification of an eligibility factor
other than income is not available despite the efforts of the county and the
family, the county must accept a signed statement from the family attesting to
the correctness of the information if one is provided. The county must deny or end assistance to
families who refuse or deliberately fail to verify information.
EFFECTIVE
DATE. This section is effective October
15, 2010.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10833
Sec. 2. Minnesota Statutes 2008, section 119B.09,
subdivision 4, is amended to read:
Subd. 4. Eligibility; annual income;
calculation. Annual income of the
applicant family is the current monthly income of the family multiplied by 12
or the income for the 12-month period immediately preceding the date of
application, or income calculated by the method which provides the most
accurate assessment of income available to the family. Self-employment income must be calculated
based on gross receipts less operating expenses. Income must be recalculated when the family's
income changes, but no less often than every six months. For a family where at least one parent is
under the age of 21, does not have a high school or general equivalency
diploma, and is a student in a school district or another similar program that
provides or arranges for child care, as well as parenting, social services,
career and employment supports, and academic support to achieve high school
graduation, income must be recalculated when the family's income changes, but
otherwise shall be deferred beyond six months, but not to exceed 12 months, to
the end of the student's school year. Income
must be verified with documentary evidence.
If the applicant does not have sufficient evidence of income,
verification must be obtained from the source of the income.
EFFECTIVE
DATE. This section is effective October
15, 2010.
Sec. 3. QUALITY RATING SYSTEM TRAINING,
COACHING, CONSULTATION, AND SUPPORTS.
The commissioner of human services shall direct $500,000 in
federal child care development funds used for grants under Minnesota Statutes,
section 119B.21, in fiscal year 2011 for the purpose of providing statewide
child care provider training, coaching, consultation, and supports to prepare
for the voluntary Minnesota quality rating system. This is a onetime appropriation. In addition, to the extent that private funds
are made available, the commissioner shall designate those funds for this
purpose.
Sec. 4. CHILD CARE ASSISTANCE REDETERMINATION OF
ELIGIBILITY AND INFORMATION VERIFICATION.
The commissioner of human services shall use existing
resources to implement the changes in this bill related to child care
assistance redetermination of eligibility and information verification under
Minnesota Statutes, sections 119B.025, subdivision 1, and 119B.09, subdivision
4."
Delete the title and insert:
"A bill for an act relating to early childhood; making
changes to early childhood education, prevention, self-sufficiency, and
lifelong learning; making changes to child care and assistance provisions;
amending Minnesota Statutes 2008, sections 119B.025, subdivision 1; 119B.09,
subdivision 4; 121A.16; 121A.17, subdivision 5; 124D.141, subdivisions 1, 2;
124D.15, subdivision 12, by adding a subdivision; 124D.20, subdivision 8;
Minnesota Statutes 2009 Supplement, sections 124D.10, subdivision 8; 124D.15,
subdivision 3."
With the recommendation that when so amended the bill pass and
be re-referred to the Committee on Ways and Means.
The report was adopted.
Carlson from the Committee on Finance to which was referred:
House Resolution No. 8, A House resolution expressing the
sense of the Minnesota House of Representatives regarding an extension of the
enhanced federal Medicaid match.
Reported the same back with the recommendation that the
resolution be adopted.
The report was adopted.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10834
SECOND READING OF HOUSE BILLS
H. F. Nos. 2562, 2849, 3033, 3486, 3748 and 3790 were read for
the second time.
SECOND READING OF SENATE BILLS
S. F. Nos. 184, 345, 560, 1060, 1905, 2493, 2510, 2756, 2880,
3046 and 1126 were read for the second time.
INTRODUCTION
AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Hilty introduced:
H. F. No. 3814, A bill for an act relating to energy; modifying
provisions related to electricity generated from anaerobic digester systems;
amending Minnesota Statutes 2008, section 216B.164, subdivisions 3, 4.
The bill was read for the first time and referred to the Energy
Finance and Policy Division.
Olin introduced:
H. F. No. 3815, A bill for an act relating to natural
resources; requiring the commissioner of natural resources to implement
management strategies for deer in the bovine tuberculosis management zone.
The bill was read for the first time and referred to the
Committee on Environment Policy and Oversight.
Olin introduced:
H. F. No. 3816, A bill for an act relating to natural
resources; prohibiting the commissioner of natural resources from surveying and
adjusting boundaries of certain lands; proposing coding for new law in
Minnesota Statutes, chapter 84.
The bill was read for the first time and referred to the
Committee on Environment Policy and Oversight.
Johnson, Beard and Hoppe introduced:
H. F. No. 3817, A bill for an act relating to
telecommunications; modifying switched access services regulation; amending
Minnesota Statutes 2008, sections 237.12, by adding a subdivision; 237.16,
subdivision 9; repealing Minnesota Statutes 2008, section 237.12, subdivision
3.
The bill was read for the first time and referred to the
Committee on Commerce and Labor.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10835
MESSAGES FROM THE SENATE
The following messages were received from
the Senate:
Madam Speaker:
I
hereby announce the passage by the Senate of the following House File, herewith
returned:
H. F. No. 2855,
A bill for an act relating to labor and industry; modifying boiler provisions;
amending and imposing civil and criminal penalties; amending Minnesota Statutes
2008, sections 326B.94, as amended; 326B.954; 326B.956; 326B.958; 326B.961, as
added if enacted; 326B.964; 326B.966; 326B.97; 326B.98; 326B.986, subdivision
10; 326B.99; 326B.994, subdivision 3; 326B.998; Minnesota Statutes 2009
Supplement, sections 326B.972; 326B.986, subdivisions 2, 8; 326B.988; proposing
coding for new law in Minnesota Statutes, chapter 326B; repealing Minnesota
Statutes 2008, sections 326B.952; 326B.96, subdivision 1; 326B.962; 326B.968;
326B.982; 326B.996; Minnesota Rules, parts 5225.1400; 5225.3100; 5225.3150;
5225.3200.
Colleen J. Pacheco, First Assistant Secretary of the Senate
Madam
Speaker:
I hereby announce the passage by the
Senate of the following House File, herewith returned, as amended by the
Senate, in which amendments the concurrence of the House is respectfully
requested:
H. F. No. 3386, A bill for
an act relating to real property; requiring performance guidelines for certain
residential contracts; modifying statutory warranties; requiring notice and
opportunity to repair; providing for dispute resolution procedures; requiring a
report; amending Minnesota Statutes 2008, sections 302A.781, subdivision 4;
326B.809; 327A.01, by adding a subdivision; 327A.02, subdivision 4, by adding
subdivisions; 327A.03; proposing coding for new law in Minnesota Statutes,
chapter 327A.
Colleen J. Pacheco, First Assistant Secretary of the Senate
Swails moved that the House refuse to
concur in the Senate amendments to H. F. No. 3386, that the
Speaker appoint a Conference Committee of 3 members of the House, and that the House
requests that a like committee be appointed by the Senate to confer on the
disagreeing votes of the two houses. The
motion prevailed.
Madam
Speaker:
I hereby announce the passage by the
Senate of the following House File, herewith returned, as amended by the
Senate, in which amendments the concurrence of the House is respectfully
requested:
H. F. No. 1182, A bill for
an act relating to eminent domain; clarifying use of eminent domain authority
by public service corporations; amending Minnesota Statutes 2008, sections
117.225; 216E.03, subdivision 7; Minnesota Statutes 2009 Supplement, section
117.189.
Colleen J. Pacheco, First Assistant Secretary of the Senate
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10836
CONCURRENCE AND
REPASSAGE
Bly moved that the House concur in the
Senate amendments to H. F. No. 1182 and that the bill be
repassed as amended by the Senate. The
motion prevailed.
The Speaker called Juhnke to the Chair.
H. F. No. 1182, A bill for
an act relating to eminent domain; clarifying use of eminent domain authority
by public service corporations; regulating the granting of route permits for high-voltage
transmission lines; requiring a report; amending Minnesota Statutes 2008,
sections 117.225; 216E.03, subdivision 7; Minnesota Statutes 2009 Supplement,
section 117.189.
The bill was read for the third time, as
amended by the Senate, and placed upon its repassage.
The question was taken on the repassage of
the bill and the roll was called. There
were 124 yeas and 7 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, S.
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Clark
Cornish
Davids
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doty
Downey
Drazkowski
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
Those who voted in the negative were:
Anderson, P.
Beard
Doepke
Eastlund
Gottwalt
Kiffmeyer
Severson
The bill was repassed, as amended by the
Senate, and its title agreed to.
Reinert was excused for the remainder of
today's session.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10837
Madam Speaker:
I hereby announce the passage by the
Senate of the following House File, herewith returned, as amended by the
Senate, in which amendments the concurrence of the House is respectfully
requested:
H. F. No. 1320, A bill for
an act relating to health; clarifying adoption of rules for the substitution of
drugs used for the treatment of epilepsy or seizures; amending Minnesota
Statutes 2008, section 151.06, subdivision 1.
Colleen J. Pacheco, First Assistant Secretary of the Senate
CONCURRENCE
AND REPASSAGE
Swails moved that the House concur in the
Senate amendments to H. F. No. 1320 and that the bill be
repassed as amended by the Senate. The
motion prevailed.
H. F. No. 1320, A bill for
an act relating to health; requiring the Board of Pharmacy to adopt rules
regarding the substitution of drugs to treat epilepsy or seizures if the United
States Food and Drug Administration determines that substitution may cause a
health risk to patients; amending Minnesota Statutes 2008, section 151.06,
subdivision 1.
The bill was read for the third time, as
amended by the Senate, and placed upon its repassage.
The question was taken on the repassage of
the bill and the roll was called. There
were 130 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Clark
Cornish
Davids
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk.
Kelliher
The bill was repassed, as amended by the
Senate, and its title agreed to.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10838
Hosch was excused for the
remainder of today's session.
Madam
Speaker:
I hereby announce that the Senate refuses to
concur in the House amendments to the following Senate File:
S. F. No. 2427,
A bill for an act relating to property held in trust; clarifying status of
certain distributions; changing certain relationship and inheritance
provisions; providing for emergency and temporary conservators; amending
Minnesota Statutes 2008, sections 501B.64, subdivision 3; 524.1-201; 524.2-114;
Minnesota Statutes 2009 Supplement, section 524.5-409; proposing coding for new
law in Minnesota Statutes, chapter 524.
The Senate respectfully
requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:
Senators
Betzold, Ortman and Scheid.
Said Senate
File is herewith transmitted to the House with the request that the House
appoint a like committee.
Colleen J. Pacheco, First Assistant Secretary
of the Senate
Hortman
moved that the House accede to the request of the Senate and that the Speaker
appoint a Conference Committee of 3 members of the House to meet with a like
committee appointed by the Senate on the disagreeing votes of the two houses on
S. F. No. 2427. The
motion prevailed.
Madam
Speaker:
I hereby announce that the Senate refuses
to concur in the House amendments to the following Senate File:
S. F. No. 2790,
A bill for an act relating to public safety; modifying provisions related to
certain juvenile records; authorizing the expungement of certain juvenile
records; authorizing the commissioner of human services to grant set asides or
variances for certain individuals disqualified from licensure because of an
offense committed as a juvenile; requiring chemical use screen of juvenile
offenders; changing penalties and prohibitions related to using or brandishing
replica firearms and BB guns on school property; requiring the revisor of
statutes to publish a table in Minnesota Statutes containing cross-references
to collateral sanctions imposed on juveniles as a result of an adjudication of
delinquency; clarifying detention placement options for extended jurisdiction
juveniles pending revocation hearings; modifying certain provisions regarding
juvenile delinquency to include stays of adjudication of delinquency; extending
the duration of the continuance period allowed in a juvenile delinquency
matter; amending Minnesota Statutes 2008, sections 121A.23, subdivision 1;
241.31, subdivision 1; 242.32, subdivision 2; 260B.125, subdivision 4;
260B.130, subdivision 5; 260B.157, subdivision 1; 260B.171, subdivision 5;
260B.176, subdivision 2; 260B.198, subdivision 7; 299C.105, subdivision 1;
299C.61, subdivision 8a; 609.117, subdivision 1; 609.344, subdivision 1;
609.66, subdivision 1d; 609A.02, subdivisions 2, 3; 609A.03, subdivisions 1, 2,
4, 5, 5a, 7; 624.713, subdivision 3; Minnesota Statutes 2009 Supplement,
sections 245C.24, subdivision 2; 624.713, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 609A.
Journal of the House - 94th Day - Wednesday, April 28,
2010 - Top of Page 10839
The Senate respectfully requests that a
Conference Committee be appointed thereon.
The Senate has appointed as such committee:
Senators Moua, Dille and Latz.
Said Senate File is herewith transmitted to the House
with the request that the House appoint a like committee.
Colleen
J. Pacheco,
First Assistant Secretary of the Senate
Lesch moved that the House accede to the request of the Senate
and that the Speaker appoint a Conference Committee of 3 members of the House
to meet with a like committee appointed by the Senate on the disagreeing votes
of the two houses on S. F. No. 2790. The motion prevailed.
Madam Speaker:
I hereby announce that the Senate refuses to concur in the
House amendments to the following Senate File:
S. F. No. 2737, A bill for an act
relating to state government; changing certain pesticide control provisions;
authorizing waiver of a fee; providing for control of bovine tuberculosis;
eliminating the native grasses and wildflower seed production and incentive
program; authorizing ownership of agricultural land by certain nonprofit
corporations; requiring tree care and tree trimming company registration;
regulating certain sale and distribution of firewood; authorizing individuals
and entities to take certain easements in agricultural land; allowing a
temporary lien for livestock production inputs for 45 days following a
mediation request requiring reports; clarifying the role of the commissioner
and Department of Veterans Affairs in providing certain resources for the county
veterans service offices; modifying a residency requirement for purposes of
eligibility for higher educational benefits for the surviving spouse and
children of a deceased veteran who dies as a result of military service;
repealing authorization for a license plate; repealing a requirement that the
Department of Veterans Affairs report on the status of a construction project
priority listing; appropriating money; amending Minnesota Statutes 2008,
sections 3.737, subdivision 4; 17.03, by adding a subdivision; 18B.31,
subdivision 5; 18B.36, subdivision 1; 18B.37, subdivision 4; 18G.07; 28A.082,
subdivision 1; 35.244, subdivisions 1, 2; 197.60, subdivision 1; 197.601;
197.605; 197.606; 197.609, subdivisions 1, 2; 197.75, subdivision 1; 239.092;
239.093; 500.221, subdivisions 2, 4; 500.24, subdivision 2; 514.965,
subdivision 2; 514.966, subdivision 6, by adding a subdivision; Minnesota
Statutes 2009 Supplement, sections 3.737, subdivision 1; 18B.316, subdivision
10; Laws 2008, chapter 296, article 1, section 25; proposing coding for new law
in Minnesota Statutes, chapters 17; 38; repealing Minnesota Statutes 2008,
sections 17.231; 168.1251; 343.26; Laws 2009, chapter 94, article 3, section
23.
The Senate respectfully requests that a Conference
Committee be appointed thereon. The
Senate has appointed as such committee:
Senators Skogen, Dille and Vickerman.
Said Senate File is herewith transmitted to the House
with the request that the House appoint a like committee.
Colleen
J. Pacheco,
First Assistant Secretary of the Senate
Morrow
moved that the House accede to the request of the Senate and that the Speaker
appoint a Conference Committee of 3 members of the House to meet with a like
committee appointed by the Senate on the disagreeing votes of the two houses on
S. F. No. 2737. The
motion prevailed.
Journal of the House - 94th Day - Wednesday, April 28,
2010 - Top of Page 10840
Madam Speaker:
I hereby announce the passage by the
Senate of the following Senate Files, herewith transmitted:
S. F. Nos. 3105, 3325,
2429, 2540, 2642, 2716, 2974, 3003, 3073, 3051, 3275 and 3075.
Colleen J. Pacheco, First Assistant Secretary of the Senate
FIRST READING OF SENATE BILLS
S. F. No. 3105,
A bill for an act relating to transportation; establishing requirements
governing capital requests and legislative reporting for projects to establish
fixed guideway transit and rail lines; amending Minnesota Statutes 2008,
section 16A.11, subdivision 3a; Minnesota Statutes 2009 Supplement, section
16A.86, subdivision 3a; proposing coding for new law in Minnesota Statutes,
chapter 174.
The bill was read for the
first time and referred to the Committee on Finance.
S. F. No. 3325,
A bill for an act relating to local government; authorizing chairs and ranking
minority members of the Committees on Finance and Ways and Means to request
local impact notes; amending Minnesota Statutes 2008, section 3.987, subdivision
1.
The bill was read for the
first time.
Simon moved that
S. F. No. 3325 and H. F. No. 3748, now on the
General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 2429,
A bill for an act relating to veterans; clarifying the transit fee exemption
provisions related to veterans with service-connected disabilities; amending
Minnesota Statutes 2009 Supplement, sections 174.24, subdivision 7; 473.408,
subdivision 10.
The bill was read for the
first time and referred to the Committee on Finance.
S. F. No. 2540,
A bill for an act relating to transportation; modifying or adding provisions
relating to truck insurance, school bus transportation, transportation
construction impacts on business, rest areas, highways, bridges, transportation
contracts, variances from rules and engineering standards for local streets and
highways, the state park road account, tax-exempt vehicles, license plates,
deputy registrars, vehicles and drivers, impounds, towing, pedestrians, intersection
gridlock, bus and type III vehicle operation, various traffic regulations,
cargo tank vehicle weight exemptions, drivers' licenses, transportation
department goals and mission, the Disadvantaged Business Enterprise
Collaborative, a Minnesota Council of Transportation Access, complete streets,
a Commuter Rail Corridor Coordinating Committee, railroad track safety, motor
carriers, allocation of traffic fines, airport authorities, property
acquisition for highways, transit, town road interest extinguishment
nullification, Northstar commuter rail, and roundabouts design; providing for
State Patrol tax compliance and vehicle crimes investigations; providing for
issuance and sale of trunk highway bonds; requiring reports; making technical
and clarifying changes; appropriating money; amending Minnesota Statutes 2008,
sections 65B.43, subdivision 2; 161.14, by adding subdivisions; 161.3426,
subdivision 3, by adding a subdivision; 162.02, subdivision 3a; 162.09,
subdivision 3a; 165.14, subdivisions 4, 5; 168.12, subdivisions 2a, 2b, by
adding a subdivision; 168.123, subdivisions 1, 2; 168.1255,
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10841
subdivision 1;
168.1291, subdivisions 1, 2; 168.33, subdivision 2; 168B.04, subdivision 2;
168B.06, subdivision 1; 168B.07, subdivision 3; 169.041, subdivision 5; 169.09,
subdivision 5a; 169.15; 169.26, by adding a subdivision; 169.306; 169.79,
subdivision 3; 169.87, by adding a subdivision; 169.92, subdivision 4; 171.321,
subdivision 2; 174.01, subdivisions 1, 2; 174.02, subdivision 1a; 174.86,
subdivision 5; 219.01; 221.012, subdivision 38, by adding a subdivision; 221.0252,
subdivision 7; 221.036, subdivisions 1, 3; 221.221, subdivision 3; 221.251,
subdivision 1; 360.061, subdivision 3; 473.167, subdivision 2a; 473.411,
subdivision 5; 514.18, subdivision 1a; Minnesota Statutes 2009 Supplement,
sections 123B.92, subdivision 1; 160.165; 161.14, subdivision 62; 162.06,
subdivision 5; 168.012, subdivision 1; 168.12, subdivision 5; 169.71,
subdivision 1; 169.865, subdivision 1; 171.02, subdivision 2b; 174.66; 221.026,
subdivision 2; 221.031, subdivision 1; 221.122, subdivision 1; 299D.03,
subdivision 5; Laws 2008, chapter 287, article 1, section 122; Laws 2009,
chapter 36, article 1, sections 1; 3, subdivisions 1, 2, 3; 5, subdivisions 1,
3, 4; proposing coding for new law in Minnesota Statutes, chapters 160; 168;
174; 221; 383D; repealing Minnesota Statutes 2008, sections 169.041,
subdivisions 3, 4; 221.161, subdivisions 2, 3; 221.291, subdivision 5;
Minnesota Statutes 2009 Supplement, sections 221.161, subdivisions 1, 4;
221.171; Minnesota Rules, parts 7805.0300; 7805.0400.
The bill was read for the
first time.
Hornstein moved that
S. F. No. 2540 and H. F. No. 2807, now on the
General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 2642,
A bill for an act relating to legislation; correcting erroneous, ambiguous, and
omitted text and obsolete references; eliminating redundant, conflicting, and
superseded provisions; making miscellaneous technical corrections to laws and
statutes; amending Minnesota Statutes 2008, sections 3.7393, subdivision 12;
12A.05, subdivision 3; 13.321, subdivision 10; 13.411, subdivision 5; 13.861,
subdivision 2; 16B.24, subdivision 5; 16D.11, subdivision 7; 53C.01,
subdivision 12a; 84.797, subdivision 6; 84.803, subdivision 2; 84.8045;
115A.932, subdivision 1; 116.155, subdivision 3; 125A.64, subdivision 6;
126C.55, subdivision 6; 128D.03, subdivision 2; 129C.10, subdivision 8;
136F.61; 168.002, subdivision 13; 168.013, subdivision 1; 169.67, subdivision
1; 190.025, subdivision 3; 214.04, subdivision 1; 216B.1691, subdivision 1;
245A.18, subdivision 2; 256L.04, subdivision 1; 260C.301, subdivision 1;
270.41, subdivision 5; 273.1115, subdivisions 1, 3; 273.124, subdivision 11;
290.0921, subdivision 3a; 297A.61, subdivision 3; 309.72; 325F.675, subdivision
6; 325F.732, subdivision 2; 332.37; 332.40, subdivision 2; 332.52, subdivision
3; 374.02; 469.154, subdivision 3; 473.599, subdivision 8; 490.133; 507.071,
subdivision 16; 515B.1-102; Minnesota Statutes 2009 Supplement, sections
16A.126, subdivision 1; 16C.138, subdivision 2; 47.60, subdivisions 4, 6;
53.09, subdivision 2; 69.772, subdivision 6; 116J.401, subdivision 2; 120B.30,
subdivisions 1, 2; 122A.60, subdivision 2; 124D.10, subdivisions 3, 8, 14, 15,
23, 25; 152.025; 168.33, subdivision 7; 169.011, subdivision 71; 169.865,
subdivision 1; 176.135, subdivision 8; 246B.06, subdivision 7; 256.969,
subdivision 3b; 256B.0659, subdivision 3; 256B.5012, subdivision 8; 260C.212,
subdivision 7; 270.97; 270C.445, subdivision 7; 299A.61, subdivision 1;
332B.07, subdivisions 1, 4; 332B.09, subdivision 3; 424A.02, subdivision 10;
524.5-701; 571.914, subdivision 4; 626.557, subdivision 20; Laws 2009, chapter
78, article 8, section 22, subdivision 3; Laws 2009, chapter 79, article 10,
section 48; Laws 2009, chapter 88, article 5, section 17; Laws 2009, chapter
172, article 1, section 2, subdivision 5; repealing Minnesota Statutes 2008,
sections 13.6435, subdivision 9; 15.38, subdivision 5; 168.098; 256B.041,
subdivision 5; 256D.03, subdivision 5; Laws 2005, First Special Session chapter
4, article 8, section 87; Laws 2006, chapter 277, article 1, sections 1; 3;
Laws 2008, chapter 287, article 1, section 104; Laws 2008, chapter 300, section
6; Laws 2009, chapter 78, article 4, section 41; Laws 2009, chapter 88, article
6, sections 14; 15; 16; Laws 2009, chapter 169, article 10, section 32;
Minnesota Rules, parts 9525.0750; 9525.0760; 9525.0770; 9525.0780; 9525.0790;
9525.0800; 9525.0810; 9525.0820; 9525.0830.
The bill was read for the
first time.
Jackson moved that
S. F. No. 2642 and H. F. No. 2970, now on the
General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10842
S. F. No. 2716,
A bill for an act relating to education; modifying charter school provisions;
creating an authority; permitting certain charter schools to purchase
facilities; authorizing the sale of revenue bonds; appropriating money;
amending Minnesota Statutes 2008, sections 124D.11, subdivisions 1, 3, 4, 7, by
adding subdivisions; 326B.103, subdivision 11; Minnesota Statutes 2009
Supplement, sections 124D.10, subdivisions 3, 4, 4a, 6, 8, 17, 23, 23a;
124D.11, subdivision 9; Laws 2009, chapter 96, article 2, section 67,
subdivision 2; article 7, section 3; proposing coding for new law in Minnesota
Statutes, chapter 124D; repealing Minnesota Statutes 2008, section 124D.11,
subdivision 8; Minnesota Statutes 2009 Supplement, section 124D.10, subdivision
17a.
The bill was read for the
first time and referred to the Committee on Finance.
S. F. No. 2974,
A bill for an act relating to health; amending provisions for electronic health
record technology; providing for administrative penalties; appropriating money;
amending Minnesota Statutes 2009 Supplement, sections 62J.495, subdivisions 1a,
3, by adding a subdivision; 62J.497, subdivisions 4, 5; proposing coding for
new law in Minnesota Statutes, chapter 62J.
The bill was read for the
first time.
Huntley moved that
S. F. No. 2974 and H. F. No. 3279, now on the
General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 3003,
A bill for an act relating to the environment; modifying requirements for solid
waste disposal facilities; providing exceptions for certain facilities;
amending Minnesota Statutes 2008, section 116.07, subdivisions 4, 4h.
The bill was read for the
first time and referred to the Committee on Finance.
S. F. No. 3073,
A bill for an act relating to state government; authorizing a report regarding
the effectiveness of state programs serving people with disabilities; proposing
coding for new law in Minnesota Statutes, chapter 256.
The bill was read for the
first time and referred to the Committee on Health Care and Human Services
Policy and Oversight.
S. F. No. 3051,
A bill for an act relating to utilities; regulating rates charged to low-income
customers; providing for inverted block rates; amending Minnesota Statutes
2008, sections 216B.16, subdivisions 14, 15; 216B.2401.
The bill was read for the
first time.
Hilty moved that
S. F. No. 3051 and H. F. No. 3493, now on the
General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 3275,
A bill for an act relating to state government; appropriating money from
constitutionally dedicated funds; modifying appropriation to prevent water
pollution from polycyclic aromatic hydrocarbons; modifying certain
administrative accounts; modifying electronic transaction provisions; providing
for certain registration exemptions; modifying all-terrain vehicle definitions;
modifying all-terrain vehicle operation restrictions; modifying state trails
and canoe and boating routes; modifying fees and disposition of certain
receipts; modifying certain competitive bidding exemptions; modifying horse
trail pass provisions; modifying beaver dam
Journal of the House - 94th
Day - Wednesday, April 28, 2010 - Top of Page 10843
provisions;
modifying the Water Law; modifying nongame wildlife checkoffs; establishing an
Environment and Natural Resources Organization Advisory Committee to advise
legislature and governor on new structure for administration of environment and
natural resource policies; requiring an advisory committee to consider all
powers and duties of Pollution Control Agency, Department of Natural Resources,
Environmental Quality Board, Board of Water and Soil Resources, Petroleum Tank
Release Compensation Board, Harmful Substances Compensation Board, and
Agricultural Chemical Response Compensation Board and certain powers and duties
of Departments of Agriculture, Health, Transportation, and Commerce; modifying
method of determining value of acquired stream easements; providing for certain
historic property exemption; modifying state forest acquisition provisions;
modifying certain requirements for land sales; adding to and deleting from
state parks and state forests; authorizing public and private sales,
conveyances, and exchanges of certain state land; amending the definition of
"green economy" to include the concept of "green
chemistry;" clarifying that an appropriation is to the commissioner of
commerce; establishing a program to provide rebates for solar photovoltaic
modules; providing for community energy planning; modifying Legislative Energy
Commission and Public Utilities Commission provisions; eliminating a legislative
guide; appropriating money; amending Minnesota Statutes 2008, sections 3.8851,
subdivision 7; 84.025, subdivision 9; 84.027, subdivision 15; 84.0272,
subdivision 2; 84.0856; 84.0857; 84.777, subdivision 2; 84.82, subdivision 3,
by adding a subdivision; 84.92, subdivisions 9, 10; 84.922, subdivision 5, by
adding a subdivision; 84.925, subdivision 1; 84.9256, subdivision 1; 84.928,
subdivision 5; 85.012, subdivision 40; 85.015, subdivision 14; 85.22,
subdivision 5; 85.32, subdivision 1; 85.41, subdivision 3; 85.42; 85.43; 85.46,
as amended; 88.17, subdivisions 1, 3; 88.79, subdivision 2; 89.032, subdivision
2; 90.041, by adding a subdivision; 90.121; 90.14; 97B.665, subdivision 2;
103A.305; 103G.271, subdivision 3; 103G.285, subdivision 5; 103G.301,
subdivision 6; 103G.305, subdivision 2; 103G.315, subdivision 11; 103G.515,
subdivision 5; 103G.615, subdivision 2; 115A.02; 116.07, subdivisions 4, 4h;
116J.437, subdivision 1; 216B.62, by adding a subdivision; 290.431; 290.432;
473.1565, subdivision 2; Minnesota Statutes 2009 Supplement, sections 84.415,
subdivision 6; 84.793, subdivision 1; 84.9275, subdivision 1; 84.928,
subdivision 1; 85.015, subdivision 13; 86A.09, subdivision 1; 103G.201; Laws
2008, chapter 368, article 1, section 34, as amended; Laws 2009, chapter 37,
article 2, section 13; Laws 2009, chapter 176, article 4, section 9; Laws 2010,
chapter 215, article 3, section 4, subdivision 10; proposing coding for new law
in Minnesota Statutes, chapters 85; 103G; 116C; repealing Minnesota Statutes
2008, sections 84.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 90.172; 97B.665,
subdivision 1; 103G.295; 103G.650; Minnesota Statutes 2009 Supplement, sections
3.3006; 84.02, subdivisions 4a, 6a, 6b; Laws 2009, chapter 172, article 5,
section 8.
The bill was
read for the first time and referred to the Committee on Ways and Means.
S. F. No. 3075,
A bill for an act relating to employment; providing that negotiations must take
place after joint powers agreements that affect the rights of employees covered
by certain collective bargaining agreements; amending Minnesota Statutes 2008,
section 471.59, subdivision 10.
The bill
was read for the first time and referred to the Higher Education and Workforce
Development Finance and Policy Division.
The following Conference Committee Report
was received:
CONFERENCE COMMITTEE REPORT ON
H. F. NO. 3318
A bill for an act relating to judiciary; enacting the Uniform
Unsworn Foreign Declarations Act proposed for adoption by the National
Conference of Commissioners on Uniform State Laws; providing for penalties;
amending Minnesota Statutes 2008, section 609.48, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapter 358.
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10844
April 20, 2010
The
Honorable Margaret Anderson Kelliher
Speaker of
the House of Representatives
The
Honorable James P. Metzen
President
of the Senate
We, the undersigned conferees for
H. F. No. 3318 report that we have agreed upon the items in
dispute and recommend as follows:
That the Senate recede from its amendment
We request the adoption of this report and repassage of the
bill.
House Conferees:
Melissa Hortman, Gail Kulick
Jackson and Dean Urdahl.
Senate Conferees:
Mee Moua, Mary Olson and David Hann.
Hortman moved that the report of the
Conference Committee on H. F. No. 3318 be adopted and that the
bill be repassed as amended by the Conference Committee. The motion prevailed.
H. F. No. 3318, A bill for an act relating to
judiciary; enacting the Uniform Unsworn Foreign Declarations Act proposed for
adoption by the National Conference of Commissioners on Uniform State Laws;
providing for penalties; amending Minnesota Statutes 2008, section 609.48,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 358.
The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
The question was taken on the repassage of
the bill and the roll was called. There
were 129 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Clark
Cornish
Davids
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10845
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
The bill was repassed, as amended by
Conference, and its title agreed to.
FISCAL CALENDAR
Pursuant to rule 1.22, Solberg requested
immediate consideration of S. F. No. 2873.
S. F. No. 2873, A bill for
an act relating to Public Facilities Authority; amending certain programs;
making technical changes; amending Minnesota Statutes 2008, sections 446A.03,
subdivision 5; 446A.07, subdivision 8; 446A.072, subdivisions 1, 3, 5a, 9; 446A.081,
subdivision 9; 446A.086, subdivisions 1, 2, 11; Minnesota Statutes 2009
Supplement, sections 446A.075, subdivisions 1a, 2, 4, 5; 446A.081, subdivision
8.
The bill was read for the third time and
placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 95 yeas and 33 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, P.
Anderson, S.
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Clark
Davids
Davnie
Dill
Dittrich
Doty
Eken
Falk
Faust
Fritz
Gardner
Greiling
Gunther
Hansen
Hausman
Hayden
Hilstrom
Hilty
Hornstein
Hortman
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Knuth
Koenen
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Rosenthal
Rukavina
Ruud
Sailer
Scalze
Simon
Slawik
Slocum
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Wagenius
Ward
Welti
Westrom
Winkler
Spk. Kelliher
Those who voted in the negative were:
Anderson, B.
Beard
Brod
Buesgens
Cornish
Dean
Dettmer
Doepke
Downey
Drazkowski
Eastlund
Emmer
Garofalo
Gottwalt
Hackbarth
Hamilton
Holberg
Hoppe
Journal of the House - 94th Day - Wednesday, April 28, 2010 -
Top of Page 10846
Kelly
Kiffmeyer
Kohls
Mack
Magnus
Peppin
Sanders
Scott
Seifert
Severson
Shimanski
Smith
Torkelson
Urdahl
Zellers
The bill was passed and its title agreed
to.
ANNOUNCEMENT BY THE SPEAKER
The Speaker announced the appointment of the
following members of the House to a Conference Committee on
H. F. No. 2624:
Wagenius, Rukavina and Howes.
MOTIONS AND RESOLUTIONS
Hansen moved that the names of Davids and
Falk be added as authors on H. F. No. 2116. The motion prevailed.
Winkler moved that the name of Obermueller
be added as an author on H. F. No. 2770. The motion prevailed.
Dittrich moved that the name of
Obermueller be added as an author on H. F. No. 3475. The motion prevailed.
Masin moved that the name of Obermueller
be added as an author on H. F. No. 3484. The motion prevailed.
Drazkowski moved that the names of Dettmer
and Shimanski be added as authors on H. F. No. 3811. The motion prevailed.
Urdahl moved that House Concurrent
Resolution No. 4 be returned to its author. The motion prevailed.
FISCAL
CALENDAR ANNOUNCEMENT
Pursuant to rule 1.22, Solberg announced
his intention to place S. F. Nos. 2493, 1060, 2880 and 184 .on
the Fiscal Calendar for Monday, May 3, 2010.
ANNOUNCEMENT
BY THE SPEAKER
The Speaker announced the following
appointment and change in committee assignments:
Commerce and Labor: Add the name of Obermueller.
ADJOURNMENT
Knuth moved that when the House adjourns
today it adjourn until 3:00 p.m., Monday, May 3, 2010. The motion prevailed.
Knuth moved that the House adjourn. The motion prevailed, and Speaker pro tempore
Juhnke declared the House stands adjourned until 3:00 p.m., Monday, May 3,
2010.
Albin A. Mathiowetz, Chief
Clerk, House of Representatives