Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11758
Pursuant to rule 1.22, Solberg requested immediate
consideration of S. F. No. 2918.
S. F. No. 2918 was reported to the House.
Murphy, M., moved to amend
S. F. No. 2918, the third engrossment, as follows:
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.
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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11759
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
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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11760
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.
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11761
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.
(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
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11762
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.
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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11763
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.
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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11764
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.
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.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11765
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).
(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).
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Day - Friday, May 7, 2010 - Top of Page 11766
(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, 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
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Day - Friday, May 7, 2010 - Top of Page 11767
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;
(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
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(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 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
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Page 11769
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 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.
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Page 11770
(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.
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.
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(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.
(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.
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of Page 11772
(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.
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.
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Page 11773
(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.
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.
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of Page 11774
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.
(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.
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Day - Friday, May 7, 2010 - Top of Page 11775
(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.
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11776
(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.
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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11777
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.
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11778
(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.
(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.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11779
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
(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
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11780
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.
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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11781
(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.
(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;
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11782
(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.
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11783
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
(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
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(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
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11785
(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.
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11786
(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.
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11787
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.
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.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11788
(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.
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
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11789
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
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11790
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.
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11791
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
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11792
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:
payroll
growth
plan 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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11793
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.
(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;
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of Page 11794
(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.
(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).
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11795
(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;
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11796
(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;
(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;
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11797
(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.
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.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11798
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 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
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11799
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;
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11800
(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;
(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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11801
(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;
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11802
(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.
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11803
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 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:
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of Page 11804
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.
(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.
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of Page 11805
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;
(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;
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of Page 11806
(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.
(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
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Day - Friday, May 7, 2010 - Top of Page 11807
(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.
(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.
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Page 11808
(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.
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.
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of Page 11809
(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.
(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
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Page 11810
(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 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
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Page 11811
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.
(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
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Day - Friday, May 7, 2010 - Top of Page 11812
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.
(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;
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11813
(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;
(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;
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11814
(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.
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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11815
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.
(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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11816
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:
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.
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Day - Friday, May 7, 2010 - Top of Page 11817
ARTICLE 4
MSRS UNCLASSIFIED STATE
EMPLOYEES RETIREMENT PROGRAM AMENDMENTS
Section 1. 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;
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Day - Friday, May 7, 2010 - Top of Page 11818
(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 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;
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Page 11819
(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 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. 2. 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 under chapter 352 except
the moneys for the unclassified program.
EFFECTIVE DATE. This section
is effective June 30, 2010.
Sec. 3. 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. 4. 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. 5. 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.
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Page 11820
Sec. 6. 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. 7. 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 (c),
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.
(b) 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) (c) An
election under paragraph (a) to transfer coverage to the general employees
retirement plan is irrevocable during any period of covered employment.
(d) A person
referenced in subdivision 1, paragraph (c), clause (1), (5), 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. 8. 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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11821
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. 9. 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.
(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. 10. 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.
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of Page 11822
(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. 11. 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 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. 12. 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. 13. 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.
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Page 11823
Sec. 14. 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. 15. 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.
Sec. 16. 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
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Page 11824
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;
(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:
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Page 11825
(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.
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;
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Page 11826
(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;
(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;
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Page 11827
(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;
(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;
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of Page 11828
(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.
(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;
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Day - Friday, May 7, 2010 - Top of Page 11829
(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 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
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Day - Friday, May 7, 2010 - Top of Page 11830
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 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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11831
(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.
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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11832
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.
(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
Journal of the House - 99th
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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 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
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11834
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.
(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.
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(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).
(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.
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of Page 11836
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 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;
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11837
(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.;
(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.
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of Page 11838
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.
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;
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(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
(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
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Day - Friday, May 7, 2010 - Top of Page 11840
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.
(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
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(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 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.
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(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.
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;
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(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.
(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.
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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.
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,
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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.
(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.
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(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 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.
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(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 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.
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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.
(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
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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.
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
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Page 11850
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:
(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.
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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
(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
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(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:
(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
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(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.
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.
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of Page 11854
(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.
(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:
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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.
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.
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(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.
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;
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(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.
(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),
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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.
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;
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(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.
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.
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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
(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
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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.
(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;
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Page 11862
(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;
(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;
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(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;
(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.
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of Page 11864
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, 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.
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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.
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.
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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:
(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.
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of Page 11867
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
(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.
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(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).
(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.
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(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.
(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.
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(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 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.
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of Page 11871
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 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.
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of Page 11872
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.
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.
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of Page 11873
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 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.
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of Page 11874
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 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.
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Page 11875
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.
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
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Page 11876
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.
(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, but the total supplemental contribution amount plus the
contributions under paragraphs (c) and (d) may not exceed $34,000,000. 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).
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(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.
(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
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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, 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
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(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
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
plan future
salary 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
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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.
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
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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
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:
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 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.
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of Page 11882
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). 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;
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(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 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
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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 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.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11885
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.
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.
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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.
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;
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(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;
(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
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(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
(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.
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(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 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:
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of Page 11890
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;
(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;
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(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
(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;
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(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;
(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
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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
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
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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.
(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
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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 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
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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.
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;
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(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;
(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;
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(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;
(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
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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 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
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Day - Friday, May 7, 2010 - Top of Page 11900
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 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.
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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:
(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
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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 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;
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(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;
(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.
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of Page 11904
(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.
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;
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Page 11905
(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;
(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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of Page 11906
(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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of Page 11907
(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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of Page 11908
(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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of Page 11909
(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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Page 11910
(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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Day - Friday, May 7, 2010 - Top of Page 11911
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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Day - Friday, May 7, 2010 - Top of Page 11912
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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Day - Friday, May 7, 2010 - Top of Page 11914
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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Page 11915
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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of Page 11919
(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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of Page 11924
(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."
Amend the title accordingly
The motion prevailed and the amendment was
adopted.
Murphy, M.,
moved to amend S. F. No. 2918, the third engrossment, as
amended, as follows:
Page 137,
delete article 10
Page 231,
after line 3, insert:
"ARTICLE
15
MISCELLANEOUS
PROVISIONS
Section
1. [352.016]
UNIVERSITY OF MINNESOTA EMPLOYEES; FURLOUGH SERVICE AND SALARY CREDIT.
A
furloughed employee of the University of Minnesota who is a member of the
general state employees retirement plan of the Minnesota State Retirement
System may obtain allowable service credit and salary credit for the furlough
period. The allowable service and salary
credit authorization under this section is a leave of absence authorization for
purposes of section 352.017 and the purchase payment procedure of section
352.017, subdivision 2, applies.
EFFECTIVE DATE. This
section is effective the day following final enactment.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11925
Sec. 2. [353.012]
UNIVERSITY OF MINNESOTA EMPLOYEES; FURLOUGH SERVICE AND SALARY CREDIT.
A furloughed employee of the
University of Minnesota who is a member of the public employees police and fire
plan may obtain allowable service and salary credit for the furlough period. The allowable service and salary credit
authorization is a leave of absence authorization for purposes of section
353.0161 and the purchase payment procedure of section 353.0161, subdivision 2,
applies.
EFFECTIVE DATE. This section is effective the day following final
enactment.
Sec. 3. 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;
(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;
Journal of the House - 99th Day
- Friday, May 7, 2010 - Top of Page 11926
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
(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. 4. 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;
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11927
(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;
(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;
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11928
(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. 5. 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."
Renumber the
articles in sequence and correct the internal references
The motion prevailed and the amendment was
adopted.
Buesgens and
Drazkowski moved to amend S. F. No. 2918, the third engrossment,
as amended, as follows:
Page 231,
after line 4, insert:
"ARTICLE
16
DEFINED
CONTRIBUTION PLANS
Section
1. [353D.20]
MEMBERSHIP.
Notwithstanding
any law to the contrary, a person first employed after July 1, 2010, who would otherwise
be a member of the Minnesota State Retirement System general plan, the Public
Employees Retirement Association general plan, the Teachers Retirement
Association, the St. Paul Teachers Retirement Fund Association, or the
Duluth Teachers Retirement Fund Association is instead a member of the public
employees defined contribution plan created in this chapter. The member contribution is five percent of
salary and the employer contribution is five percent of salary."
Amend the
title accordingly
A roll call was requested and properly
seconded.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11929
The question was taken on the Buesgens and
Drazkowski amendment and the roll was called.
There were 33 yeas and 91 nays as follows:
Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Beard
Brod
Buesgens
Dean
Demmer
Dettmer
Downey
Drazkowski
Eastlund
Garofalo
Gottwalt
Hamilton
Holberg
Hoppe
Kelly
Kiffmeyer
Loon
Mack
Magnus
Nornes
Peppin
Sanders
Scott
Seifert
Severson
Shimanski
Torkelson
Urdahl
Westrom
Zellers
Those who voted in the negative were:
Abeler
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dittrich
Doepke
Doty
Eken
Falk
Faust
Fritz
Gardner
Greiling
Gunther
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Knuth
Koenen
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Mahoney
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Reinert
Rosenthal
Ruud
Sailer
Scalze
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Tillberry
Wagenius
Ward
Welti
Winkler
Spk. Kelliher
The motion did not prevail and the
amendment was not adopted.
Drazkowski
and Buesgens moved to amend S. F. No. 2918, the third
engrossment, as amended, as follows:
Page 231, after
line 4, insert:
"ARTICLE
16
ELECTED
OFFICIALS
Section
1. [356.99]
ELECTED OFFICIALS EXCLUDED.
Notwithstanding
any law to the contrary, effective January 1, 2011, a person serving as a
legislator, governor, lieutenant governor, secretary of state, state auditor,
or attorney general does not have Minnesota public pension plan coverage as a
result of that service."
Renumber the
articles in sequence and correct the internal references
Amend the
title accordingly
A roll call was requested and properly
seconded.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11930
The question was taken on the Drazkowski
and Buesgens amendment and the roll was called.
There were 33 yeas and 92 nays as follows:
Those who voted in the affirmative were:
Anderson, B.
Anderson, S.
Brod
Buesgens
Dean
Demmer
Dettmer
Dittrich
Doepke
Downey
Drazkowski
Eastlund
Garofalo
Gottwalt
Holberg
Hoppe
Kelly
Kiffmeyer
Lenczewski
Lesch
Loon
Mack
Magnus
McNamara
Peppin
Sanders
Scott
Seifert
Severson
Shimanski
Torkelson
Westrom
Zellers
Those who voted in the negative were:
Abeler
Anderson, P.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dill
Doty
Eken
Falk
Faust
Fritz
Gardner
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Knuth
Koenen
Laine
Lanning
Liebling
Lieder
Lillie
Loeffler
Mahoney
Marquart
Masin
McFarlane
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Reinert
Rosenthal
Ruud
Sailer
Scalze
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Tillberry
Urdahl
Wagenius
Ward
Welti
Winkler
Spk. Kelliher
The motion did not prevail and the
amendment was not adopted.
Kiffmeyer, Gottwalt
and Thissen moved to amend S. F. No. 2918, the third
engrossment, as amended, as follows:
Page 66,
after line 29, insert:
"Sec. 85. DEFINED
CONTRIBUTION PLAN STUDY.
A study
group consisting of representatives from the various state pension plans shall
be convened by the Legislative Commission on Pensions and Retirement to study
the advisability of, the amount of time and the manner in which the various
state pension plans may be transferred from defined benefit plans to defined
contribution plans. Administrative
support for the study group shall be provided by the Legislative Commission on
Pensions and Retirement and the various state pension plans. The report will be provided no later than
January 15, 2011, to 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."
Renumber the
sections in sequence and correct the internal references
Amend the
title accordingly
The motion prevailed and the amendment was
adopted.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11931
Beard was excused for the remainder of
today's session.
Buesgens
moved to amend S. F. No. 2918, the third engrossment, as
amended, as follows:
Page 179,
line 21, delete section 26
Renumber the
sections in sequence and correct the internal references
Amend the
title accordingly
The motion did not prevail and the
amendment was not adopted.
Kiffmeyer
moved to amend S. F. No. 2918, the third engrossment, as
amended, as follows:
Pages 142 to 215, delete articles 12 and
13
The motion did not prevail and the
amendment was not adopted.
S. F. No. 2918, A bill for
an act relating to retirement; various retirement plans; increasing certain
contribution rates; suspending certain postretirement 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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11932
Minnesota
Statutes 2008, sections 3A.02, subdivision 4; 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 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 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.
The bill was read for the third time, as
amended, and placed upon its final passage.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11933
The question was taken on the passage of the bill and the roll
was called. There were 106 yeas and 20
nays as follows:
Those who
voted in the affirmative were:
Abeler
Anderson, P.
Anderson, S.
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Demmer
Dill
Dittrich
Doepke
Doty
Eken
Falk
Faust
Fritz
Gardner
Garofalo
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Knuth
Koenen
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Reinert
Rosenthal
Ruud
Sailer
Sanders
Scalze
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Winkler
Zellers
Spk. Kelliher
Those who voted in the negative were:
Anderson, B.
Brod
Buesgens
Dean
Dettmer
Downey
Drazkowski
Eastlund
Gottwalt
Kelly
Kiffmeyer
Kohls
Loon
Mack
Peppin
Scott
Seifert
Severson
Shimanski
Westrom
The bill was passed, as amended, and its
title agreed to.
Thissen was excused for the remainder of today's session.
Speaker pro tempore Hortman called
Pelowski to the Chair.
CALENDAR FOR THE DAY, Continued
S. F. No. 2642 was reported
to the House.
Jackson moved to amend
S. F. No. 2642, the second engrossment, as follows:
Delete everything after the enacting
clause and insert the following language of H. F. No. 2970, the
first engrossment:
"Section 1.
Minnesota Statutes 2008, section 3.7393, subdivision 12, is amended to
read:
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11934
Subd. 12. Supplemental payments. (a) For purposes of this subdivision,
"uncompensated medical expenses" means:
(1) medical expenses less payments made to a survivor from collateral
sources referred to in section 548.36 548.251, subdivision 1,
that provide payments for medical expenses; and
(2) the present value of premiums, deductibles, and
coinsurance payments for high-risk health plan coverage offered by the
Minnesota Comprehensive Health Association or by another similar health plan.
(b) A survivor is eligible for a supplemental payment if the
offer of settlement calculation for the survivor, as provided in subdivision
10, exceeds $400,000. The supplemental
payment must be calculated based solely on that portion of the uncompensated
medical expenses, loss of income, future earning capacity, or other financial
support for which compensation was not received under the offer of settlement
or settlement agreement under subdivision 11.
A supplemental payment may only be made to a survivor who has accepted
an offer of settlement, entered into a settlement agreement, and executed a
release under subdivision 13. Consistent
with the requirements of this section, the panel shall establish necessary
procedures and timelines for the award of supplemental payments. A supplemental payment may be made only for
the following purposes, in the following order of priority:
(1) to pay uncompensated medical expenses in excess of those
paid from the first $400,000; and
(2) to pay for loss of income, future earning capacity, or
other financial support not included in the first $400,000.
No payment may be made to a survivor for loss of income under
clause (2) unless and until all survivors have been fully paid for all medical
expenses for which they are eligible under clause (1).
(c) If the available appropriation is insufficient to make
full awards to all survivors eligible for a supplemental payment, the panel may
award the payments based on a uniform percentage of the amount that is less
than the full amount eligible for a supplemental payment or take other steps
the panel considers necessary to ensure that the available appropriation is
equitably distributed among all survivors who have requested and qualify for a
supplemental payment, subject to the order of priority under this subdivision.
Sec. 2. Minnesota
Statutes 2008, section 12A.05, subdivision 3, is amended to read:
Subd. 3. Waivers authorized. (a) The board may waive the provisions
of Minnesota Rules, chapter 8400, in the disaster area on land damaged by the
disaster. The waiver applies to all
existing and future contracts to address critical conservation problems
resulting from the disaster that are funded in whole or in part with state
money, to the extent that combined federal and state funding does not exceed
100 percent. All existing state
cost-share grant agreements in the disaster area are extended, as provided in
law.
(b) The payment maximums for improvements to the land under
section 103F.515, subdivision 6, paragraph (a), clause (1), are waived for
easements acquired in the disaster area on land damaged by the disaster.
Sec. 3. Minnesota
Statutes 2008, section 13.321, subdivision 10, is amended to read:
Subd. 10. Teacher data from value-added assessment
model. Data on individual teachers
generated from a value-added assessment model are governed under section 120B.362
120B.35.
Sec. 4. Minnesota
Statutes 2008, section 13.411, subdivision 5, is amended to read:
Subd. 5. Social workers. Residence addresses and telephone numbers
of social worker licensees are classified under chapter 148D section
148B.04, subdivision 6.
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Day - Friday, May 7, 2010 - Top of Page 11935
Sec. 5. Minnesota Statutes 2008, section 13.861,
subdivision 2, is amended to read:
Subd. 2. Classification. Security service data that are similar to
the data described as request for service data and response or incident data in
section 13.82, subdivisions 3 and 4 6, are public. If personnel of a security service make a
citizen's arrest, then any security service data that are similar to the data
described as arrest data in section 13.82, subdivision 2, are public. If a security service participates in but
does not make an arrest it shall, upon request, provide data that identify the
arresting law enforcement agency. All
other security service data are security information pursuant to section 13.37.
Sec. 6. Minnesota Statutes 2009 Supplement, section
16A.126, subdivision 1, is amended to read:
Subdivision 1. Set
rates. The commissioner shall
approve the rates an agency must pay to a revolving fund for services. Funds subject to this subdivision include,
but are not limited to, the revolving funds established in sections 4A.05;
14.46; 14.53; 16B.48; 16B.54; 16B.58; 16B.85; 16C.03, subdivision 11; 16E.14;
43A.55; and 176.591; and the fund established in section 43A.30.
Sec. 7. Minnesota Statutes 2008, section 16B.24,
subdivision 5, is amended to read:
Subd. 5. Renting
out state property. (a) Authority.
The commissioner may rent out state property, real or personal, that
is not needed for public use, if the rental is not otherwise provided for or
prohibited by law. The property may not
be rented out for more than five years at a time without the approval of the
State Executive Council and may never be rented out for more than 25
years. A rental agreement may provide
that the state will reimburse a tenant for a portion of capital improvements that
the tenant makes to state real property if the state does not permit the tenant
to renew the lease at the end of the rental agreement.
(b) Restrictions. Paragraph (a)
does not apply to state trust fund lands, other state lands under the
jurisdiction of the Department of Natural Resources, lands forfeited for
delinquent taxes, lands acquired under section 298.22, or lands acquired
under section 41.56 which are under the jurisdiction of the Department of
Agriculture.
(c) Rental of living accommodations.
The commissioner shall establish rental rates for all living
accommodations provided by the state for its employees. Money collected as rent by state agencies
pursuant to this paragraph must be deposited in the state treasury and credited
to the general fund.
(d) Lease of space in certain state buildings to state agencies. The commissioner may lease portions of
the state-owned buildings under the custodial control of the commissioner to
state agencies and the court administrator on behalf of the judicial branch of
state government and charge rent on the basis of space occupied. Notwithstanding any law to the contrary, all
money collected as rent pursuant to the terms of this section shall be
deposited in the state treasury. Money
collected as rent to recover the bond interest costs of a building funded from
the state bond proceeds fund shall be credited to the general fund. Money collected as rent to recover the
depreciation costs of a building funded from the state bond proceeds fund and
money collected as rent to recover capital expenditures from capital asset
preservation and replacement appropriations and statewide building access
appropriations shall be credited to a segregated asset preservation and
replacement account in a special revenue fund.
Fifty percent of the money credited to the account each fiscal year must
be transferred to the general fund. The
remaining money in the account is appropriated to the commissioner to be
expended for asset preservation projects as determined by the
commissioner. Money collected as rent to
recover the depreciation and interest costs of a building built with other
state dedicated funds shall be credited to the dedicated fund which funded the
original acquisition or construction.
All other money received shall be credited to the general services
revolving fund.
(e) Lease of space in Andersen and Freeman buildings. The commissioner may lease space in the
Elmer L. Andersen and Orville L. Freeman buildings to state agencies
and charge rent on the basis of space occupied.
Money collected as rent under this paragraph to fund future building
repairs must be credited to a
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Day - Friday, May 7, 2010 - Top of Page 11936
segregated account for each building
in the special revenue fund and is appropriated to the commissioner to make the
repairs. When the state acquires title
to each building, the account for that building must be abolished and any
balance remaining in the account must be transferred to the appropriate asset
preservation and replacement account created under paragraph (d).
Sec. 8. Minnesota Statutes 2009 Supplement, section
16C.138, subdivision 2, is amended to read:
Subd. 2. Notice
of state procurement policy in bid documents.
All solicitation documents for the purchase of a passenger
automobile, as defined in section 168.011 168.002, subdivision 7
24; pickup truck, as defined in section 168.011 168.002,
subdivision 29 26; or van, as defined in section 168.011 168.002,
subdivision 28 40, issued under the jurisdiction of the
Department of Administration after June 30, 2006, must contain the following
language: "It is the intention of
the state of Minnesota to begin purchasing electric vehicles, plug-in hybrid
electric vehicles, and neighborhood electric vehicles as soon as they become
commercially available, meet the state's performance specifications, and are
priced no more than ten percent above the price for comparable gasoline-powered
vehicles. It is the intention of the
state to purchase electric vehicles, plug-in hybrid electric vehicles, and
neighborhood electric vehicles whenever practicable after these conditions have
been met and as fleet needs dictate for at least five years after these
conditions have been met."
Sec. 9. Minnesota Statutes 2008, section 16D.11,
subdivision 7, is amended to read:
Subd. 7. Adjustment
of rate. By June 1 of each year, the
commissioner shall determine the rate of collection costs for debts referred to
the enterprise during the next fiscal year.
The rate is a percentage of the debts in an amount that most nearly
equals the costs of the enterprise necessary to process and collect referred
debts under this chapter. In no event
shall the rate of the collection costs exceed 25 percent of the debt. Determination of the rate of collection costs
under this section is not subject to the fee setting requirements of section 16A.1285
16A.1283.
Sec. 10. Minnesota Statutes 2009 Supplement, section
47.60, subdivision 4, is amended to read:
Subd. 4. Books
of account; annual report; schedule of charges; disclosures. (a) A lender filing under subdivision 3
shall keep and use in the business books, accounts, and records as will enable
the commissioner to determine whether the filer is complying with this section.
(b) A lender filing under
subdivision 3 shall annually on or before March 15 file a report to the
commissioner giving the information the commissioner reasonably requires
concerning the business and operations during the preceding calendar year,
including the information required to be reported under section 47.601,
subdivision 5 4.
(c) A lender filing under
subdivision 3 shall display prominently in each place of business a full and
accurate schedule, to be approved by the commissioner, of the charges to be
made and the method of computing those charges.
A lender shall furnish a copy of the contract of loan to a person
obligated on it or who may become obligated on it at any time upon the request
of that person. This is in addition to
any disclosures required by the federal Truth in Lending Act, United States
Code, title 15.
(d) A lender filing under
subdivision 3 shall, upon repayment of the loan in full, mark indelibly every
obligation signed by the borrower with the word "Paid" or "Canceled"
within 20 days after repayment.
(e) A lender filing under
subdivision 3 shall display prominently, in each licensed place of business, a
full and accurate statement of the charges to be made for loans made under this
section. The statement of charges must
be displayed in a notice, on plastic or other durable material measuring at
least 12 inches by 18 inches, headed "CONSUMER NOTICE REQUIRED BY THE
STATE OF MINNESOTA." The notice shall include, immediately above the
statement of charges, the following sentence, or a substantially similar
sentence approved by the commissioner:
"These loan charges are higher than otherwise permitted under
Minnesota law. Minnesota law
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Day - Friday, May 7, 2010 - Top of Page 11937
permits these higher charges
only because short-term small loans might otherwise not be available to
consumers. If you have another source of
a loan, you may be able to benefit from a lower interest rate and other loan
charges." The notice must not contain any other statement or information,
unless the commissioner has determined that the additional statement or
information is necessary to prevent confusion or inaccuracy. The notice must be designed with a type size
that is large enough to be readily noticeable and legible. The form of the notice must be approved by
the commissioner prior to its use.
Sec. 11. Minnesota Statutes 2009 Supplement, section
47.60, subdivision 6, is amended to read:
Subd. 6. Penalties
for violation. A person who violates
or participates in the violation of any of the provisions of this section is
liable in the same manner as in section 47.601, subdivision 7 6.
Sec. 12. Minnesota Statutes 2009 Supplement, section
53.09, subdivision 2, is amended to read:
Subd. 2. Annual
report. (1) Each industrial loan and
thrift company shall annually on or before the first day of March file a report
with the commissioner stating in detail, under appropriate heads, its assets
and liabilities at the close of business on the last day of the preceding
calendar year and, if applicable, information required under section 47.601,
subdivision 5 4. This
report shall be made under oath in the form prescribed by the commissioner.
(2) Each industrial loan and
thrift company which holds authority to accept accounts pursuant to section
53.04, subdivision 5, shall in place of the requirement in clause (1) submit
the reports required of state banks pursuant to section 48.48.
(3) Within 30 days following
a change in controlling ownership of the capital stock of an industrial loan
and thrift company, it shall file a written report with the commissioner
stating in detail the nature of such change in ownership.
Sec. 13. Minnesota Statutes 2008, section 53C.01,
subdivision 12a, is amended to read:
Subd. 12a. Service
contract. "Service
contract" means a motor vehicle service contract as defined in section
65B.29 has the meaning given it in section 59B.02, subdivision 11.
Sec. 14. 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 subdivision 3, clause (2), subclause (e) paragraph
(c), clause (5), or if the municipality is required to provide financial
support to the special fund of the relief association pursuant to 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 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 subdivision 3, clause
(2), subclause (e) paragraph (c), clause (5), and if the
municipality is not required to provide financial support to the special fund
of the relief association pursuant to 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
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Day - Friday, May 7, 2010 - Top of Page 11938
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
this subdivision, and, subsequent to the amendment or adoption, the financial
requirements of the special fund of the relief association pursuant to 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.
Sec. 15. Minnesota
Statutes 2008, section 84.797, subdivision 6, is amended to read:
Subd. 6. Off-road.
"Off-road" means on trails or nonpublic roads or for
cross-country travel on natural terrain.
For purposes of sections 84.797 to 84.805 84.8045,
nonpublic roads include state forest roads, county forest roads, and other
roads and trails that are not operated by a public road authority as defined in
section 160.02, subdivision 25.
Sec. 16. Minnesota
Statutes 2008, section 84.803, subdivision 2, is amended to read:
Subd. 2. Purposes.
Subject to appropriation by the legislature, money in the off-road
vehicle account may only be spent for:
(1) administration, enforcement, and implementation of
sections 84.773 to 84.805 84.8045;
(2) acquisition, maintenance, and development of off-road
vehicle trails and use areas;
(3) grant-in-aid programs to counties and municipalities to
construct and maintain off-road vehicle trails and use areas;
(4) grants-in-aid to local safety programs; and
(5) enforcement and public education grants to local law
enforcement agencies.
Sec. 17. Minnesota
Statutes 2008, section 84.8045, is amended to read:
84.8045 RESTRICTIONS ON
OFF-ROAD VEHICLE TRAILS.
Notwithstanding any provision of sections 84.797 to 84.805
84.804 or other law to the contrary, the commissioner shall not permit
land administered by the commissioner in Cass, Crow Wing, and Hubbard Counties
to be used or developed for trails primarily for off-road vehicles as defined
in section 84.797, subdivision 7, except:
(1) upon approval by the legislature; or
(2) in designated off-road vehicle use areas.
Sec. 18. Minnesota
Statutes 2008, section 115A.932, subdivision 1, is amended to read:
Subdivision 1. Prohibitions and recycling
requirements. (a) A person may not place
mercury or a thermostat, thermometer, electric switch, appliance, gauge,
medical or scientific instrument, fluorescent or high-intensity discharge lamp,
electric relay, or other electrical device from which the mercury has not been
removed for reuse or recycling:
(1) in solid waste; or
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11939
(2) in a wastewater disposal
system.
(b) A person may not
knowingly place mercury or a thermostat, thermometer, electric switch,
appliance, gauge, medical or scientific instrument, fluorescent or
high-intensity discharge lamp, electric relay, or other electrical device from
which the mercury has not been removed for reuse or recycling:
(1) in a solid waste
processing facility; or
(2) in a solid waste disposal
facility, as defined in section 115.01, subdivision 4.
(c) A fluorescent or
high-intensity discharge lamp must be recycled by delivery of the lamp to a
lamp recycling facility, as defined in section 116.93, subdivision 1, or to a
facility that collects and stores lamps for the purpose of delivering them to a
lamp recycling facility, including, but not limited to, a household hazardous
waste collection or recycling facility, retailer take-back and utility provider
program sites, or other sites designated by an electric utility under section
216B.241, subdivisions 2 and 4.
Sec. 19. Minnesota Statutes 2008, section 116.155,
subdivision 3, is amended to read:
Subd. 3. Revenues. The following revenues shall be deposited
in the general portion of the remediation fund:
(1) response costs and
natural resource damages related to releases of hazardous substances, or
pollutants or contaminants, recovered under sections 115B.17, subdivisions 6
and 7, 115B.443, 115B.444, or any other law;
(2) money paid to the agency
or the Agriculture Department by voluntary parties who have received technical
or other assistance under sections 115B.17, subdivision 14, 115B.175 to
115B.179, and 115C.03, subdivision 9;
(3) money received in the
form of gifts, grants, reimbursement, or appropriation from any source for any
of the purposes provided in subdivision 2, except federal grants; and
(4) money received from
revenue bonds sold under section 116.156 and placed in a special bond proceeds
account; and
(5) (4) interest accrued
on the fund.
Sec. 20. Minnesota Statutes 2009 Supplement, section
116J.401, subdivision 2, is amended to read:
Subd. 2. Duties;
authorizations; limitations. (a) The
commissioner of employment and economic development shall:
(1) provide regional
development commissions, the Metropolitan Council, and units of local
government with information, technical assistance, training, and advice on
using federal and state programs;
(2) receive and administer
the Small Cities Community Development Block Grant Program authorized by
Congress under the Housing and Community Development Act of 1974, as amended;
(3) receive and administer
the section 107 technical assistance program grants authorized by Congress
under the Housing and Community Development Act of 1974, as amended;
(4) receive, administer, and
supervise other state and federal grants and grant programs for planning,
community affairs, community development purposes, employment and training
services, and other state and federal programs assigned to the department by
law or by the governor in accordance with section 4.07;
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Day - Friday, May 7, 2010 - Top of Page 11940
(5) receive applications for
state and federal grants and grant programs for planning, community affairs,
and community development purposes, and other state and federal programs
assigned to the department by law or by the governor in accordance with section
4.07;
(6) act as the agent of, and
cooperate with, the federal government in matters of mutual concern, including
the administration of any federal funds granted to the state to aid in the
performance of functions of the commissioner;
(7) provide consistent,
integrated employment and training services across the state;
(8) administer the
Wagner-Peyser Act, the Workforce Investment Act, and other federal employment
and training programs;
(9) establish the standards
for all employment and training services administered under this chapter and
chapters 116L, 248, 268, and 268A;
(10) administer the aspects
of the Minnesota family investment program, general assistance, and food stamps
that relate to employment and training services, subject to the contract under
section 116L.86, subdivision 1;
(11) obtain reports from
local service units and service providers for the purpose of evaluating the
performance of employment and training services;
(12) as requested, certify
employment and training services, and decertify services that fail to comply
with performance criteria according to standards established by the
commissioner;
(13) develop standards for
the contents and structure of the local service unit plans and plans for Indian
tribe employment and training services, review and comment on those plans, and
approve or disapprove the plans;
(14) supervise the county
boards of commissioners, local service units, and any other units of government
designated in federal or state law as responsible for employment and training
programs;
(15) establish
administrative standards and payment conditions for providers of employment and
training services;
(16) enter into agreements
with Indian tribes as necessary to provide employment and training services as
appropriate funds become available;
(17) cooperate with the
federal government and its employment and training agencies in any reasonable
manner as necessary to qualify for federal aid for employment and training
services and money;
(18) administer and
supervise all forms of unemployment insurance provided for under federal and
state laws;
(19) provide current state
and substate labor market information and forecasts, in cooperation with other
agencies;
(20) require all general employment
and training programs that receive state funds to make available information
about opportunities for women in nontraditional careers in the trades and
technical occupations;
(21) consult with the
Rehabilitation Council for the Blind on matters pertaining to programs and
services for the blind and visually impaired;
(22) enter into agreements
with other departments of the state and local units of government as necessary;
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of Page 11941
(23) establish and maintain administrative units necessary to
perform administrative functions common to all divisions of the department;
(24) investigate, study, and undertake ways and means of
promoting and encouraging the prosperous development and protection of the
legitimate interest and welfare of Minnesota business, industry, and commerce,
within and outside the state;
(25) locate markets for manufacturers and processors and aid
merchants in locating and contacting markets;
(26) as necessary or useful for the proper execution of the
powers and duties of the commissioner in promoting and developing Minnesota
business, industry, and commerce, both within and outside the state,
investigate and study conditions affecting Minnesota business, industry, and
commerce; collect and disseminate information; and engage in technical studies,
scientific investigations, statistical research, and educational activities;
(27) plan and develop an effective business information
service both for the direct assistance of business and industry of the state
and for the encouragement of business and industry outside the state to use
economic facilities within the state;
(28) compile, collect, and develop periodically, or otherwise
make available, information relating to current business conditions;
(29) conduct or encourage research designed to further new
and more extensive uses of the natural and other resources of the state and
designed to develop new products and industrial processes;
(30) study trends and developments in the industries of the
state and analyze the reasons underlying the trends;
(31) study costs and other factors affecting successful
operation of businesses within the state;
(32) make recommendations regarding circumstances promoting
or hampering business and industrial development;
(33) serve as a clearing house for business and industrial
problems of the state;
(34) advise small business enterprises regarding improved
methods of accounting and bookkeeping;
(35) cooperate with interstate commissions engaged in
formulating and promoting the adoption of interstate compacts and agreements
helpful to business, industry, and commerce;
(36) cooperate with other state departments and with boards,
commissions, and other state agencies in the preparation and coordination of
plans and policies for the development of the state and for the use and
conservation of its resources insofar as the use, conservation, and development
may be appropriately directed or influenced by a state agency;
(37) in connection with state, county, and municipal public
works projects, assemble and coordinate information relative to the status,
scope, cost, and employment possibilities and availability of materials,
equipment, and labor, and recommend limitations on the public works;
(38) gather current progress information with reference to
public and private works projects of the state and its political subdivisions
with reference to conditions of employment;
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Page 11942
(39) inquire into and report to the governor, when requested
by the governor, with respect to any program of public state improvements and
its financing; and request and obtain information from other state departments
or agencies as may be needed for the report;
(40) study changes in population and current trends and
prepare plans and suggest policies for the development and conservation of the
resources of the state;
(41) confer and cooperate with the executive, legislative, or planning
authorities of the United States, neighboring states and provinces, and the
counties and municipalities of neighboring states, for the purpose of bringing
about a coordination between the development of neighboring provinces, states,
counties, and municipalities and the development of this state;
(42) generally gather, compile, and make available statistical
information relating to business, trade, commerce, industry, transportation,
communication, natural resources, and other like subjects in this state, with
authority to call upon other state departments for statistical data and results
obtained by them and to arrange and compile that statistical information in a
reasonable manner;
(43) publish documents and annually convene regional meetings
to inform businesses, local government units, assistance providers, and other
interested persons of changes in state and federal law related to economic
development;
(44) annually convene conferences of providers of economic
development-related financial and technical assistance for the purposes of
exchanging information on economic development assistance, coordinating
economic development activities, and formulating economic development
strategies;
(45) provide business with information on the economic benefits
of energy conservation and on the availability of energy conservation
assistance;
(46) as part of the biennial budget process, prepare
performance measures for each business loan or grant program within the
jurisdiction of the commissioner.
Measures include source of funds for each program, number of jobs
proposed or promised at the time of application and the number of jobs created,
estimated number of jobs retained, the average salary and benefits for the jobs
resulting from the program, and the number of projects approved;
(47) provide a continuous program of education for business
people;
(48) publish, disseminate, and distribute information and
statistics;
(49) promote and encourage the expansion and development of
markets for Minnesota products;
(50) promote and encourage the location and development of new
businesses in the state as well as the maintenance and expansion of existing
businesses and for that purpose cooperate with state and local agencies and
individuals, both within and outside the state;
(51) advertise and disseminate information as to natural
resources, desirable locations, and other advantages for the purpose of
attracting businesses to locate in this state;
(52) aid the various communities in this state in attracting
business to their communities;
(53) advise and cooperate with municipal, county, regional,
and other planning agencies and planning groups within the state for the
purpose of promoting coordination between the state and localities as to plans
and development in order to maintain a high level of gainful employment in
private profitable production and achieve commensurate advancement in social
and cultural welfare;
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(54) coordinate the activities of statewide and local planning
agencies, correlate information secured from them and from state departments
and disseminate information and suggestions to the planning agencies;
(55) encourage and assist in the organization and functioning
of local planning agencies where none exist; and
(56) adopt measures calculated to promote public interest in
and understanding of the problems of planning and, to that end, may publish and
distribute copies of any plan or any report and may employ other means of
publicity and education that will give full effect to the provisions of
sections 116J.58 116J.60 to 116J.63.
(b) At the request of any governmental subdivision in
paragraph (a), clause (53), the commissioner may provide planning assistance,
which includes but is not limited to surveys, land use studies, urban renewal
plans, technical services and other planning work to any city or other
municipality in the state or perform similar planning work in any county or
metropolitan or regional area in the state.
The commissioner must not perform the planning work with respect to a
metropolitan or regional area which is under the jurisdiction for planning
purposes of a county, metropolitan, regional, or joint planning body, except at
the request or with the consent of the respective county, metropolitan,
regional, or joint planning body.
(c) The commissioner is authorized to:
(1) receive and expend money from municipal, county, regional,
and other planning agencies;
(2) accept and disburse grants and other aids for planning purposes
from the federal government and from other public or private sources;
(3) utilize money received under clause (2) for the employment
of consultants and other temporary personnel to assist in the supervision or
performance of planning work supported by money other than state-appropriated
money;
(4) enter into contracts with agencies of the federal
government, units of local government or combinations thereof, and with private
persons that are necessary in the performance of the planning assistance function
of the commissioner; and
(5) assist any local government unit in filling out
application forms for the federal grants-in-aid.
(d) In furtherance of its planning functions, any city or
town, however organized, may expend money and contract with agencies of the
federal government, appropriate departments of state government, other local
units of government, and with private persons.
Sec. 21. Minnesota
Statutes 2009 Supplement, section 120B.30, subdivision 1, is amended to read:
Subdivision 1. Statewide testing. (a) The commissioner, with advice from
experts with appropriate technical qualifications and experience and
stakeholders, consistent with subdivision 1a, shall include in the
comprehensive assessment system, for each grade level to be tested,
state-constructed tests developed from and aligned with the state's required
academic standards under section 120B.021, include multiple choice questions,
and be administered annually to all students in grades 3 through 8. State-developed high school tests aligned
with the state's required academic standards under section 120B.021 and
administered to all high school students in a subject other than writing must
include multiple choice questions. The
commissioner shall establish one or more months during which schools shall
administer the tests to students each school year. For students enrolled in grade 8 before the
2005-2006 school year, Minnesota basic skills tests in reading, mathematics,
and writing shall fulfill students' basic skills testing requirements for a
passing state notation. The passing
scores of basic skills tests in reading and mathematics are the equivalent of
75 percent correct for students entering grade 9 based on the first uniform
test administered in February 1998.
Students who have not successfully passed a Minnesota basic skills test
by the end of the 2011-2012 school year must pass the graduation-required
assessments for diploma under paragraph (b) (c).
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(b) The state assessment system must be aligned to the most
recent revision of academic standards as described in section 120B.023 in the
following manner:
(1) mathematics;
(i) grades 3 through 8 beginning in the 2010-2011 school
year; and
(ii) high school level beginning in the 2013-2014 school
year;
(2) science; grades 5 and 8 and at the high school level
beginning in the 2011-2012 school year; and
(3) language arts and reading; grades 3 through 8 and high
school level beginning in the 2012-2013 school year.
(c) For students enrolled in grade 8 in the 2005-2006 school
year and later, only the following options shall fulfill students' state
graduation test requirements:
(1) for reading and mathematics:
(i) obtaining an achievement level equivalent to or greater
than proficient as determined through a standard setting process on the
Minnesota comprehensive assessments in grade 10 for reading and grade 11 for
mathematics or achieving a passing score as determined through a standard
setting process on the graduation-required assessment for diploma in grade 10
for reading and grade 11 for mathematics or subsequent retests;
(ii) achieving a passing score as determined through a standard
setting process on the state-identified language proficiency test in reading
and the mathematics test for English language learners or the
graduation-required assessment for diploma equivalent of those assessments for
students designated as English language learners;
(iii) achieving an individual passing score on the
graduation-required assessment for diploma as determined by appropriate state
guidelines for students with an individual education plan or 504 plan;
(iv) obtaining achievement level equivalent to or greater
than proficient as determined through a standard setting process on the
state-identified alternate assessment or assessments in grade 10 for reading
and grade 11 for mathematics for students with an individual education plan; or
(v) achieving an individual passing score on the
state-identified alternate assessment or assessments as determined by
appropriate state guidelines for students with an individual education plan;
and
(2) for writing:
(i) achieving a passing score on the graduation-required
assessment for diploma;
(ii) achieving a passing score as determined through a
standard setting process on the state-identified language proficiency test in
writing for students designated as English language learners;
(iii) achieving an individual passing score on the
graduation-required assessment for diploma as determined by appropriate state
guidelines for students with an individual education plan or 504 plan; or
(iv) achieving an individual passing score on the
state-identified alternate assessment or assessments as determined by
appropriate state guidelines for students with an individual education plan.
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(d) Students enrolled in grade 8 in any school year from the
2005-2006 school year to the 2009-2010 school year who do not pass the
mathematics graduation-required assessment for diploma under paragraph (b)
(c) are eligible to receive a high school diploma with a passing state
notation if they:
(1) complete with a passing score or grade all state and
local coursework and credits required for graduation by the school board
granting the students their diploma;
(2) participate in district-prescribed academic remediation
in mathematics; and
(3) fully participate in at least two retests of the
mathematics GRAD test or until they pass the mathematics GRAD test, whichever
comes first. A school, district, or
charter school must place a student's highest assessment score for each of the
following assessments on the student's high school transcript: the mathematics Minnesota Comprehensive
Assessment, reading Minnesota Comprehensive Assessment, and writing
Graduation-Required Assessment for Diploma, and when applicable, the
mathematics Graduation-Required Assessment for Diploma and reading
Graduation-Required Assessment for Diploma.
In addition, the school board granting the students their
diplomas may formally decide to include a notation of high achievement on the
high school diplomas of those graduating seniors who, according to established
school board criteria, demonstrate exemplary academic achievement during high
school.
(e) The 3rd through 8th grade and high school test results
shall be available to districts for diagnostic purposes affecting student
learning and district instruction and curriculum, and for establishing
educational accountability. The
commissioner must disseminate to the public the high school test results upon
receiving those results.
(f) The 3rd through 8th grade and high school tests must be
aligned with state academic standards.
The commissioner shall determine the testing process and the order of
administration. The statewide results
shall be aggregated at the site and district level, consistent with subdivision
1a.
(g) In addition to the testing and reporting requirements
under this section, the commissioner shall include the following components in
the statewide public reporting system:
(1) uniform statewide testing of all students in grades 3
through 8 and at the high school level that provides appropriate, technically
sound accommodations or alternate assessments;
(2) educational indicators that can be aggregated and
compared across school districts and across time on a statewide basis,
including average daily attendance, high school graduation rates, and high
school drop-out rates by age and grade level;
(3) state results on the American College Test; and
(4) state results from participation in the National
Assessment of Educational Progress so that the state can benchmark its
performance against the nation and other states, and, where possible, against
other countries, and contribute to the national effort to monitor achievement.
Sec. 22.
Minnesota Statutes 2009 Supplement, section 120B.30, subdivision 2, is
amended to read:
Subd. 2. Department of Education assistance. The Department of Education shall
contract for professional and technical services according to competitive bidding
solicitation procedures under chapter 16C for purposes of this section.
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Sec. 23. Minnesota
Statutes 2009 Supplement, section 122A.60, subdivision 2, is amended to read:
Subd. 2. Contents of plan. The plan must include the staff
development outcomes under subdivision 3, the means to achieve the outcomes,
and procedures for evaluating progress at each school site toward meeting
education outcomes, consistent with relicensure requirements under section 122A.18,
subdivision 2, paragraph (b) 122A.18, subdivision 4. The plan also must:
(1) support stable and productive professional communities
achieved through ongoing and schoolwide progress and growth in teaching
practice;
(2) emphasize coaching, professional learning communities,
classroom action research, and other job-embedded models;
(3) maintain a strong subject matter focus premised on
students' learning goals;
(4) ensure specialized preparation and learning about issues
related to teaching students with special needs and limited English
proficiency; and
(5) reinforce national and state standards of effective
teaching practice.
Sec. 24.
Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 3, is
amended to read:
Subd. 3. Authorizer.
(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
"Application" to receive approval as an authorizer
means the proposal an eligible authorizer submits to the commissioner under
paragraph (c) before that authorizer is able to submit any affidavit to charter
to a school.
"Application" under subdivision 4 means the charter
school business plan a school developer submits to an authorizer for approval
to establish a charter school that documents the school developer's mission
statement, school purposes, program design, financial plan, governance and
management structure, and background and experience, plus any other information
the authorizer requests. The application
also shall include a "statement of assurances" of legal compliance
prescribed by the commissioner.
"Affidavit" means a written statement the
authorizer submits to the commissioner for approval to establish a charter
school under subdivision 4 attesting to its review and approval process before
chartering a school.
"Affidavit" means the form an authorizer submits to
the commissioner that is a precondition to a charter school organizing an
affiliated nonprofit building corporation under subdivision 17a.
(b) The following organizations may authorize one or more
charter schools:
(1) a school board; intermediate school district school board;
education district organized under sections 123A.15 to 123A.19;
(2) a charitable organization under section 501(c)(3) of the
Internal Revenue Code of 1986, excluding a nonpublic sectarian or religious
institution, any person other than a natural person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with the nonpublic sectarian or religious institution,
and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose,
that:
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(i) is a member of the Minnesota Council of Nonprofits or the
Minnesota Council on Foundations;
(ii) is registered with the attorney general's office;
(iii) reports an end-of-year fund balance of at least
$2,000,000; and
(iv) is incorporated in the state of Minnesota;
(3) a Minnesota private college, notwithstanding clause (2),
that grants two- or four-year degrees and is registered with the Minnesota
Office of Higher Education under chapter 136A; community college, state
university, or technical college governed by the Board of Trustees of the
Minnesota State Colleges and Universities; or the University of Minnesota; or
(4) a nonprofit corporation subject to chapter 317A,
described in section 317A.905, and exempt from federal income tax under section
501(c)(6) of the Internal Revenue Code of 1986, may authorize one or more
charter schools if the charter school has operated for at least three years
under a different authorizer and if the nonprofit corporation has existed for
at least 25 years.
(5) no more than three single-purpose sponsors authorizers
that are charitable, nonsectarian organizations formed under section 501(c)(3)
of the Internal Revenue Code of 1986 and incorporated in the state of Minnesota
whose sole purpose is to charter schools.
Eligible organizations interested in being approved as a sponsor an
authorizer under this paragraph must submit a proposal to the commissioner
that includes the provisions of paragraph (c) and a five-year financial
plan. Such authorizers shall consider
and approve applications using the criteria provided in subdivision 4 and shall
not limit the applications it solicits, considers, or approves to any single
curriculum, learning program, or method.
(c) An eligible authorizer under this subdivision must apply
to the commissioner for approval as an authorizer before submitting any
affidavit to the commissioner to charter a school. The application for approval as a charter
school authorizer must demonstrate the applicant's ability to implement the
procedures and satisfy the criteria for chartering a school under this
section. The commissioner must approve
or disapprove an application within 60 business days of the application
deadline. If the commissioner
disapproves the application, the commissioner must notify the applicant of the
deficiencies and the applicant then has 20 business days to address the
deficiencies to the commissioner's satisfaction. Failing to address the deficiencies to the
commissioner's satisfaction makes an applicant ineligible to be an authorizer. The commissioner, in establishing criteria
for approval, must consider the applicant's:
(1) capacity and infrastructure;
(2) application criteria and process;
(3) contracting process;
(4) ongoing oversight and evaluation processes; and
(5) renewal criteria and processes.
(d) The affidavit to be submitted to and evaluated by the
commissioner must include at least the following:
(1) how chartering schools is a way for the organization to
carry out its mission;
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(2) a description of the capacity of the organization to serve
as a sponsor an authorizer, including the personnel who will
perform the sponsoring authorizing duties, their qualifications,
the amount of time they will be assigned to this responsibility, and the
financial resources allocated by the organization to this responsibility;
(3) a description of the application and review process the
authorizer will use to make decisions regarding the granting of charters, which
will include at least the following:
(i) how the statutory purposes defined in subdivision 1 are
addressed;
(ii) the mission, goals, program model, and student
performance expectations;
(iii) an evaluation plan for the school that includes criteria
for evaluating educational, organizational, and fiscal plans;
(iv) the school's governance plan;
(v) the financial management plan; and
(vi) the administration and operations plan;
(4) a description of the type of contract it will arrange with
the schools it charters that meets the provisions of subdivision 6 and defines
the rights and responsibilities of the charter school for governing its
educational program, controlling its funds, and making school management
decisions;
(5) the process to be used for providing ongoing oversight of
the school consistent with the contract expectations specified in clause (4)
that assures that the schools chartered are complying with both the provisions
of applicable law and rules, and with the contract;
(6) the process for making decisions regarding the renewal or
termination of the school's charter based on evidence that demonstrates the
academic, organizational, and financial competency of the school, including its
success in increasing student achievement and meeting the goals of the charter
school agreement; and
(7) an assurance specifying that the organization is committed
to serving as a sponsor an authorizer for the full five-year
term.
A disapproved applicant under this paragraph may resubmit an
application during a future application period.
(e) The authorizer must participate in department-approved
training.
(f) An authorizer that chartered a school before August 1,
2009, must apply by June 30, 2011, to the commissioner for approval, under
paragraph (c), to continue as an authorizer under this section. For purposes of this paragraph, an authorizer
that fails to submit a timely application is ineligible to charter a school.
(g) The commissioner shall review an authorizer's performance
every five years in a manner and form determined by the commissioner and may
review an authorizer's performance more frequently at the commissioner's own
initiative or at the request of a charter school operator, charter school board
member, or other interested party. The
commissioner, after completing the review, shall transmit a report with
findings to the authorizer. If,
consistent with this section, the commissioner finds that an authorizer has not
fulfilled the requirements of this section, the commissioner may subject the
authorizer to corrective action, which may include terminating the contract
with the charter school board of directors of a school it chartered. The commissioner must notify the authorizer
in writing of any findings that may subject the authorizer to corrective action
and the authorizer then has 15 business days to request an informal hearing
before the commissioner takes corrective action.
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(h) The commissioner may at
any time take corrective action against an authorizer, including terminating an
authorizer's ability to charter a school for:
(1) failing to demonstrate
the criteria under paragraph (c) under which the commissioner approved the
authorizer;
(2) violating a term of the
chartering contract between the authorizer and the charter school board of
directors; or
(3) unsatisfactory
performance as an approved authorizer.
Sec. 25. 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
authorized 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 An
authorizer 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).
(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.
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of Page 11950
(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.
Sec. 26.
Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 14, is
amended to read:
Subd. 14. Annual public reports. A charter school must publish an annual
report approved by the board of directors.
The annual report must at least include information on school
enrollment, student attrition, governance and management, staffing, finances,
academic performance, operational performance, innovative practices and
implementation, and future plans. A
charter school must distribute the annual report by publication, mail, or
electronic means to the commissioner, sponsor, authorizer, school
employees, and parents and legal guardians of students enrolled in the charter
school and must also post the report on the charter school's official Web
site. The reports are public data under
chapter 13.
Sec. 27.
Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 15, is
amended to read:
Subd. 15. Review and comment. (a) The authorizer shall provide a formal
written evaluation of the school's performance before the authorizer renews the
charter contract. The department must
review and comment on the authorizer's evaluation process at the time the sponsor
authorizer submits its application for approval and each time the
authorizer undergoes its five-year review under subdivision 3, paragraph (e).
(b) A sponsor An authorizer shall monitor and
evaluate the fiscal, operational, and student performance of the school, and
may for this purpose annually assess a charter school a fee according to
paragraph (c). The agreed-upon fee
structure must be stated in the charter school contract.
(c) The fee that each charter school pays to an authorizer
each year is the greater of:
(1) the basic formula allowance for that year; or
(2) the lesser of:
(i) the maximum fee factor times the basic formula allowance
for that year; or
(ii) the fee factor times the basic formula allowance for
that year times the charter school's adjusted marginal cost pupil units for
that year. The fee factor equals .005 in
fiscal year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015
in fiscal years 2013 and later. The
maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 3.0
in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
(d) The department and any charter school it charters must
not assess or pay a fee under paragraphs (b) and (c).
(e) For the preoperational planning period, the authorizer
may assess a charter school a fee equal to the basic formula allowance.
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of Page 11951
(f) By September 30 of each year, an authorizer shall submit
to the commissioner a statement of expenditures related to chartering
activities during the previous school year ending June 30. A copy of the statement shall be given to all
schools chartered by the authorizer.
Sec. 28.
Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 23, is
amended to read:
Subd. 23. Causes for nonrenewal or termination of
charter school contract. (a) The
duration of the contract with an authorizer must be for the term contained in
the contract according to subdivision 6.
The authorizer may or may not renew a contract at the end of the term
for any ground listed in paragraph (b).
An authorizer may unilaterally terminate a contract during the term of
the contract for any ground listed in paragraph (b). At least 60 days before not renewing or
terminating a contract, the authorizer shall notify the board of directors of
the charter school of the proposed action in writing. The notice shall state the grounds for the
proposed action in reasonable detail and that the charter school's board of
directors may request in writing an informal hearing before the authorizer
within 15 business days of receiving notice of nonrenewal or termination of the
contract. Failure by the board of
directors to make a written request for a hearing within the 15-business-day
period shall be treated as acquiescence to the proposed action. Upon receiving a timely written request for a
hearing, the authorizer shall give ten business days' notice to the charter
school's board of directors of the hearing date. The authorizer shall conduct an informal
hearing before taking final action. The
authorizer shall take final action to renew or not renew a contract no later
than 20 business days before the proposed date for terminating the contract or
the end date of the contract.
(b) A contract may be terminated or not renewed upon any of the
following grounds:
(1) failure to meet the requirements for pupil performance
contained in the contract;
(2) failure to meet generally accepted standards of fiscal
management;
(3) violations of law; or
(4) other good cause shown.
If a contract is terminated or not renewed under this
paragraph, the school must be dissolved according to the applicable provisions
of chapter 308A or 317A.
(c) If the sponsor authorizer and the charter school
board of directors mutually agree to terminate or not renew the contract, a
change in sponsors authorizers is allowed if the commissioner
approves the transfer to a different eligible authorizer to authorize the
charter school. Both parties must jointly
submit their intent in writing to the commissioner to mutually terminate the
contract. The sponsor authorizer
that is a party to the existing contract at least must inform the approved
different eligible sponsor authorizer about the fiscal and operational
status and student performance of the school.
Before the commissioner determines whether to approve a transfer of
authorizer, the commissioner first must determine whether the charter school
and prospective new authorizer can identify and effectively resolve those
circumstances causing the previous authorizer and the charter school to
mutually agree to terminate the contract.
If no transfer of sponsor authorizer is approved, the
school must be dissolved according to applicable law and the terms of the
contract.
(d) The commissioner, after providing reasonable notice to
the board of directors of a charter school and the existing authorizer, and
after providing an opportunity for a public hearing, may terminate the existing
contract between the authorizer and the charter school board if the charter
school has a history of:
(1) failure to meet pupil performance requirements contained
in the contract;
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(2) financial mismanagement
or failure to meet generally accepted standards of fiscal management; or
(3) repeated or major
violations of the law.
(e) If the commissioner terminates
a charter school contract under subdivision 3, paragraph (g), the commissioner
shall provide the charter school with information about other eligible
authorizers.
Sec. 29. Minnesota Statutes 2009 Supplement, section
124D.10, subdivision 25, is amended to read:
Subd. 25. Extent
of specific legal authority. (a) The
board of directors of a charter school may sue and be sued.
(b) The board may not levy
taxes or issue bonds.
(c) The commissioner, a
sponsor an authorizer, members of the board of a sponsor an
authorizer in their official capacity, and employees of a sponsor an
authorizer are immune from civil or criminal liability with respect to all
activities related to a charter school they approve or sponsor authorize. The board of directors shall obtain at least
the amount of and types of insurance up to the applicable tort liability limits
under chapter 466. The charter school
board must submit a copy of the insurance policy to its authorizer and the commissioner
before starting operations. The charter
school board must submit changes in its insurance carrier or policy to its
authorizer and the commissioner within 20 business days of the change.
Sec. 30. Minnesota Statutes 2008, section 125A.64,
subdivision 6, is amended to read:
Subd. 6. Exemption
to September 1 school start restriction.
Notwithstanding section 120A.40, subdivision 1, the board of
the Minnesota State Academies for the Deaf and Blind may begin the school year
any day prior to September 1.
Sec. 31. Minnesota Statutes 2008, section 126C.55,
subdivision 6, is amended to read:
Subd. 6. Tax
levy for repayment. (a) With the
approval of the commissioner, a district may levy in the year the state makes a
payment under this section an amount up to the amount necessary to provide
funds for the repayment of the amount paid by the state plus interest through
the date of estimated repayment by the district. The proceeds of this levy may be used only
for this purpose unless they are in excess of the amount actually due, in which
case the excess shall be used to repay other state payments made under this
section or shall be deposited in the debt redemption fund of the school
district. This levy shall be an increase
in the levy limits of the district for purposes of section 275.065, subdivision
6. The amount of aids to be reduced to
repay the state shall be decreased by the amount levied. This levy by the district is not eligible for
debt service equalization under section 123B.53.
(b) If the state is not
repaid in full for a payment made under this section by November 30 of the
calendar year following the year in which the state makes the payment, the
commissioner shall require the district to certify a property tax levy in an
amount up to the amount necessary to provide funds for repayment of the amount
paid by the state plus interest through the date of estimated repayment by the
school district. To prevent undue
hardship, the commissioner may allow the district to certify the levy over a
five-year period. The proceeds of the
levy may be used only for this purpose unless they are in excess of the amount
actually due, in which case the excess shall be used to repay other state
payments made under this section or shall be deposited in the debt redemption
fund of the district. This levy shall be
an increase in the levy limits of the school district for purposes of section
275.065, subdivision 6. If the
commissioner orders the district to levy, the amount of aids reduced to repay
the state shall be decreased by the amount levied. This levy by the district is not eligible for
debt service equalization under section 123B.53 or any successor
provision. A levy under this
subdivision must be explained as a specific increase at the meeting required
under section 275.065, subdivision 6.
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Page 11953
(c) For an intermediate district, a levy made by a member
district under paragraph (a) or (b) to pay its pro rata share must be spread by
the commissioner as a tax rate based on the total adjusted net tax capacity of
the member school districts. The
proceeds of the levy must be remitted by the member school district to the
intermediate school district and must be used by the intermediate district only
to repay the state amounts owed. Any
amount in excess of the amount owed to the state must be repaid to the member
school districts and the commissioner shall adjust each member district's
property tax levy in the next year.
Sec. 32. Minnesota
Statutes 2008, section 128D.03, subdivision 2, is amended to read:
Subd. 2. Not on tax or library board. The special independent school district
shall not have any representation upon the Board of Estimate and Taxation or
Library Board of said city.
Sec. 33. Minnesota
Statutes 2008, section 129C.10, subdivision 8, is amended to read:
Subd. 8. Exemption to September 1 school start
restriction. Notwithstanding
Minnesota Statutes, section 120A.40, subdivision 1, the Perpich Center
for Arts Education may begin the school year any day prior to September 1.
Sec. 34. Minnesota
Statutes 2008, section 136F.61, is amended to read:
136F.61 STATE BUILDING
CODE.
All Minnesota state college and university facilities are
subject to the provisions of the State Building Code under chapter 16B 326B
and the State Fire Code under chapter 299F.
Sec. 35. Minnesota
Statutes 2009 Supplement, section 152.025, is amended to read:
152.025 CONTROLLED SUBSTANCE
CRIME IN THE FIFTH DEGREE.
Subdivision 1. Sale crimes. (a) A person is guilty of a controlled
substance crime in the fifth degree and if convicted may be sentenced to
imprisonment for not more than five years or to payment of a fine of not more
than $10,000, or both if:
(1) the person unlawfully sells one or more mixtures
containing marijuana or tetrahydrocannabinols, except a small amount of
marijuana for no remuneration; or
(2) the person unlawfully sells one or more mixtures
containing a controlled substance classified in schedule IV.
(b) Except as provided in paragraph (c), if a person is guilty
of a controlled substance crime in the fifth degree and the conviction is a
subsequent controlled substance conviction, the person convicted shall be
committed to the commissioner of corrections or to a local correctional
authority for not less than six months nor more than ten years and, in
addition, may be sentenced to payment of a fine of not more than $20,000 if:
(1) the person unlawfully sells one or more mixtures
containing marijuana or tetrahydrocannabinols, except a small amount of
marijuana for no remuneration; or
(2) the person unlawfully sells one or more mixtures
containing a controlled substance classified in schedule IV.
(c) Prior to the time of sentencing, the prosecutor may file a
motion to have the person sentenced without regard to the mandatory minimum sentence
established by paragraph (b). The motion
must be accompanied by a statement on the record of the reasons for it. When presented with the motion, or on its own
motion, the court may sentence the person without regard to the mandatory
minimum sentence if the court finds, on the record, substantial and compelling
reasons to do so. Sentencing a person
in this manner is a departure from the Sentencing Guidelines.
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of Page 11954
Subd. 2. Possession and other crimes. (a) A person is guilty of controlled substance
crime in the fifth degree and if convicted may be sentenced to imprisonment for
not more than five years or to payment of a fine of not more than $10,000, or
both if:
(1) the person unlawfully possesses one or more mixtures
containing a controlled substance classified in schedule I, II, III, or IV,
except a small amount of marijuana; or
(2) the person procures, attempts to procure, possesses, or
has control over a controlled substance by any of the following means:
(i) fraud, deceit, misrepresentation, or subterfuge;
(ii) using a false name or giving false credit; or
(iii) falsely assuming the title of, or falsely representing
any person to be, a manufacturer, wholesaler, pharmacist, physician, doctor of
osteopathy licensed to practice medicine, dentist, podiatrist, veterinarian, or
other authorized person for the purpose of obtaining a controlled substance.
(b) Except as provided in paragraph (c), if a person is
guilty of a controlled substance crime in the fifth degree and the conviction
is a subsequent controlled substance conviction, the person convicted shall be
committed to the commissioner of corrections or to a local correctional
authority for not less than six months nor more than ten years and, in
addition, may be sentenced to payment of a fine of not more than $20,000 if:
(1) the person unlawfully possesses one or more mixtures
containing a controlled substance classified in schedule I, II, III, or IV,
except a small amount of marijuana; or
(2) the person procures, attempts to procure, possesses, or
has control over a controlled substance by any of the following means:
(i) fraud, deceit, misrepresentation, or subterfuge;
(ii) using a false name or giving false credit; or
(iii) falsely assuming the title of, or falsely representing
any person to be, a manufacturer, wholesaler, pharmacist, physician, doctor of
osteopathy licensed to practice medicine, dentist, podiatrist, veterinarian, or
other authorized person for the purpose of obtaining a controlled substance.
(c) Prior to the time of sentencing, the prosecutor may file
a motion to have the person sentenced without regard to the mandatory minimum
sentence established by paragraph (b).
The motion must be accompanied by a statement on the record of the
reasons for it. When presented with the
motion, or on its own motion, the court may sentence the person without regard
to the mandatory minimum sentence if the court finds, on the record,
substantial and compelling reasons to do so.
Sentencing a person in this manner is a departure from the Sentencing
Guidelines.
Sec. 36.
Minnesota Statutes 2008, section 168.002, subdivision 13, is amended to
read:
Subd. 13. Gross weight. (a) "Gross weight" means the
actual unloaded weight of the vehicle, either a truck or tractor, or the actual
unloaded combined weight of a truck-tractor and semitrailer or semitrailers, or
of the truck-tractor, semitrailer and one additional semitrailer, fully
equipped for service, plus the weight of the maximum load which the applicant
has elected to carry on such vehicle or combined vehicles.
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Page 11955
(b) The term gross weight applied to a truck used for towing a
trailer means the unloaded weight of the truck, fully equipped for service,
plus the weight of the maximum load which the applicant has elected to carry on
such truck, including the weight of such part of the trailer and its load as
may rest upon the truck.
(c) The term gross weight applied to school buses means the
weight of the vehicle fully equipped with all fuel tanks full of fuel, plus the
weight of the passengers and their baggage computed at the rate of 100 pounds
per passenger seating capacity, including that for the driver. The term gross weight applied to other buses
means the weight of the vehicle fully equipped with all fuel tanks full of
fuel, plus the weight of passengers and their baggage computed at the rate of
150 pounds per passenger seating capacity, including that for the driver. For bus seats designed for more than one
passenger, but which are not divided so as to allot individual seats for the
passengers that occupy them, allow two feet of its length per passenger to
determine seating capacity.
(d) The term gross weight applied to a truck, truck-tractor or
a truck used as a truck-tractor used exclusively by the owner thereof for
transporting unfinished forest products or used by the owner thereof to
transport agricultural, horticultural, dairy and other farm products including
livestock produced or finished by the owner of the truck and any other personal
property owned by the farmer to whom the license for such truck is issued, from
the farm to market, and to transport property and supplies to the farm of the
owner, as described in subdivision 17 8, shall be the actual
weight of the truck, truck-tractor or truck used as a truck-tractor or the
combined weight of the truck-tractor and semitrailer plus the weight of the
maximum load which the applicant has elected to carry on such vehicle or
combined vehicles and shall be licensed and taxed as provided by section
168.013, subdivision 1c.
(e) The term gross weight applied to a truck-tractor or a
truck used as a truck-tractor used exclusively by the owner, or by a for-hire
carrier hauling exclusively for one owner, for towing an equipment dolly shall be
the actual weight of the truck-tractor or truck used as a truck-tractor plus
the weight of such part of the equipment dolly and its load as may rest upon
the truck-tractor or truck used as a truck-tractor, and shall be licensed
separately and taxed as provided by section 168.013, subdivision 1e, and the
equipment dolly shall be licensed separately and taxed as provided in section
168.013, subdivision 1d, which is applicable for the balance of the weight of
the equipment dolly and the balance of the maximum load the applicant has
elected to carry on such combined vehicles.
The term "equipment dolly" as used in this subdivision means a
heavy semitrailer used solely by the owner, or by a for-hire carrier hauling
exclusively for one owner, to transport the owner's construction machinery,
equipment, implements and other objects used on a construction project, but not
to be incorporated in or to become a part of a completed project.
(f) The term gross weight applied to a tow truck or towing
vehicle defined in section 169.011, subdivision 83, means the weight of the tow
truck or towing vehicle fully equipped for service, including the weight of the
crane, winch and other equipment to control the movement of a towed vehicle,
but does not include the weight of a wrecked or disabled vehicle towed or drawn
by the tow truck or towing vehicle.
Sec. 37. Minnesota
Statutes 2008, section 168.013, subdivision 1, is amended to read:
Subdivision 1. Imposition.
Motor vehicles, except as set forth in section 168.012, using the
public streets or highways in the state, and park trailers taxed under
subdivision 1j, shall be taxed in lieu of all other taxes thereon, except
wheelage taxes, so-called, which may be imposed by any city as provided by law,
and except gross earnings taxes paid by companies subject or made subject
thereto, and shall be privileged to use the public streets and highways, on the
basis and at the rate for each calendar year as hereinafter provided.
Sec. 38. Minnesota
Statutes 2009 Supplement, section 168.33, subdivision 7, is amended to read:
Subd. 7. Filing fees; allocations. (a) In addition to all other statutory
fees and taxes, a filing fee of:
(1) $4.50 is imposed on every vehicle registration renewal,
excluding pro rate transactions; and
(2) $8.50 is imposed on every other type of vehicle
transaction, including pro rate transactions;
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of Page 11956
except that
a filing fee may not be charged for a document returned for a refund or for a
correction of an error made by the Department of Public Safety, a dealer, or a
deputy registrar. The filing fee must be
shown as a separate item on all registration renewal notices sent out by the
commissioner. No filing fee or other fee
may be charged for the permanent surrender of a title for a vehicle.
(b) The statutory fees and taxes, and the filing fees
imposed under paragraph (a) may be paid by credit card or debit card. The deputy registrar may collect a surcharge
on the statutory fees, taxes, and filing fee not to exceed
greater than the cost of processing a credit card or debit card
transaction, in accordance with emergency rules established by the commissioner
of public safety. The surcharge must
be used to pay the cost of processing credit and debit card transactions.
(c) All of the fees collected under paragraph (a), clause
(1), by the department, must be paid into the vehicle services operating
account in the special revenue fund under section 299A.705. Of the fee collected under paragraph (a), clause
(2), by the department, $3.50 must be paid into the general fund with the
remainder deposited into the vehicle services operating account in the special
revenue fund under section 299A.705.
EFFECTIVE
DATE. This section applies to fees
collected after July 31, 2009, and is effective retroactively from August 1,
2009.
Sec. 39.
Minnesota Statutes 2009 Supplement, section 169.011, subdivision 71, is
amended to read:
Subd. 71. School bus.
(a) "School bus" means a motor vehicle used to transport
pupils to or from a school defined in section 120A.22, or to or from
school-related activities, by the school or a school district, or by someone
under an agreement with the school or a school district. A school bus does not include a motor vehicle
transporting children to or from school for which parents or guardians receive
direct compensation from a school district, a motor coach operating under
charter carrier authority, a transit bus providing services as defined in
section 174.22, subdivision 7, or a vehicle otherwise qualifying as a type III
vehicle under clause (6) paragraph (h), when the vehicle is
properly registered and insured and being driven by an employee or agent of a
school district for nonscheduled or nonregular transportation.
(b) A school bus may be type A, type B, type C, or type D,
multifunction school activity bus, or type III as provided in paragraphs (c) to
(h).
(c) A "type A school bus" is a van conversion or
bus constructed utilizing a cutaway front section vehicle with a left-side driver's
door. This definition includes two
classifications: type A-I, with a gross
vehicle weight rating (GVWR) less than or equal to 14,500 pounds; and type
A-II, with a GVWR greater than 14,500 pounds and less than or equal to 21,500
pounds.
(d) A "type B school bus" is constructed utilizing
a stripped chassis. The entrance door is
behind the front wheels. This definition
includes two classifications: type B-I,
with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR
greater than 10,000 pounds.
(e) A "type C school bus" is constructed utilizing
a chassis with a hood and front fender assembly. The entrance door is behind the front
wheels. A "type C school bus"
also includes a cutaway truck chassis or truck chassis with cab, with or
without a left side door, and with a GVWR greater than 21,500 pounds.
(f) A "type D school bus" is constructed utilizing
a stripped chassis. The entrance door is
ahead of the front wheels.
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Page 11957
(g) A "multifunction school activity bus" is a
school bus that meets the definition of a multifunction school activity bus in
Code of Federal Regulations, title 49, section 571.3. A vehicle that meets the definition of a type
III vehicle is not a multifunction school activity bus.
(h) A "type III vehicle" is restricted to passenger
cars, station wagons, vans, and buses having a maximum manufacturer's rated
seating capacity of ten or fewer people, including the driver, and a gross
vehicle weight rating of 10,000 pounds or less.
A "type III vehicle" must not be outwardly equipped and
identified as a type A, B, C, or D school bus or type A, B, C, or D Head Start
bus. A van or bus converted to a seating
capacity of ten or fewer and placed in service on or after August 1, 1999, must
have been originally manufactured to comply with the passenger safety
standards.
(i) In this subdivision, "gross vehicle weight
rating" means the value specified by the manufacturer as the loaded weight
of a single vehicle.
Sec. 40. Minnesota
Statutes 2008, section 169.67, subdivision 1, is amended to read:
Subdivision 1. Motor vehicle. Every motor vehicle, other than a
motorcycle, when operated upon a highway, shall be equipped with brakes
adequate to control the movement of and to stop and hold such vehicle,
including two separate means of applying the brakes, each of which means shall
be effective to apply the brakes to at least two wheels. If these two separate means of applying the
brakes are connected in any way, they shall be so constructed that failure of
any one part of the operating mechanism shall not leave the motor vehicle
without brakes on at least two wheels. The
requirement in this subdivision for separate braking systems does not apply to
a commercial motor vehicle described in section 169.781, subdivision 5,
paragraph (d).
Sec. 41. Minnesota
Statutes 2009 Supplement, section 169.865, subdivision 1, is amended to read:
Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual
permit authorizing a vehicle or combination of vehicles with a total of six or
more axles to haul raw or unprocessed agricultural products and be operated
with a gross vehicle weight of up to:
(1) 90,000 pounds; and
(2) 99,000 pounds during the period set by the commissioner
under section 169.826, subdivision 1.
(b) Notwithstanding subdivision 4 3, paragraph
(a), clause (4), a vehicle or combination of vehicles operated under this
subdivision and transporting only sealed intermodal containers may be operated
on an interstate highway if allowed by the United States Department of
Transportation.
(c) The fee for a permit issued under this subdivision is
$300.
Sec. 42. Minnesota
Statutes 2009 Supplement, section 176.135, subdivision 8, is amended to read:
Subd. 8. Data.
Each self-insured employer and insurer shall retain or arrange for
the retention of (1) all billing data electronically transmitted by health care
providers for payment for the treatment of workers' compensation; and (2) the
employer of or insurer's electronically transmitted payment
remittance advice. The self-insured
employer or insurer shall ensure that the data in clauses (1) and (2) shall be
retained for seven years in the standard electronic transaction format that is
required by rules adopted by the commissioner of the Department of Health under
section 62J.536. The data shall be
provided in the standard electronic transaction format to the commissioner of
labor and industry within 120 days of the commissioner of labor and industry's
request, and shall be used to analyze the costs and outcomes of treatment in
the workers' compensation system. The
data collected by the commissioner of labor and industry under this section is
confidential data on individuals and protected nonpublic data, except that the
commissioner may publish aggregate statistics and other summary data on the
costs and outcomes of treatment in the workers' compensation system.
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Page 11958
Sec. 43. Minnesota
Statutes 2008, section 190.025, subdivision 3, is amended to read:
Subd. 3. Construction of section. This section shall not be construed so as
to make unlawful any arrest in this state which would otherwise be lawful, nor
to repeal or prevent the application of any of the provisions of section
626.65, the Uniform Act on the Fresh Pursuit of Criminals.
Sec. 44. Minnesota
Statutes 2008, section 214.04, subdivision 1, is amended to read:
Subdivision 1. Services provided. (a) The commissioner of education
with respect to the Board of Teaching; the commissioner of public safety with
respect to the Board of Private Detective and Protective Agent Services; the
panel established pursuant to section 299A.465, subdivision 7; the Board of
Peace Officer Standards and Training; and the commissioner of revenue with
respect to the Board of Assessors, shall provide suitable offices and other
space, joint conference and hearing facilities, examination rooms, and the
following administrative support services:
purchasing service, accounting service, advisory personnel services,
consulting services relating to evaluation procedures and techniques, data
processing, duplicating, mailing services, automated printing of license
renewals, and such other similar services of a housekeeping nature as are
generally available to other agencies of state government. Investigative services shall be provided the
boards by employees of the Office of Attorney General. The commissioner of health with respect to
the health-related licensing boards shall provide mailing and office supply
services and may provide other facilities and services listed in this
subdivision at a central location upon request of the health-related licensing
boards. The commissioner of commerce
with respect to the remaining non-health-related licensing boards shall provide
the above facilities and services at a central location for the remaining
non-health-related licensing boards. The
legal and investigative services for the boards shall be provided by employees
of the attorney general assigned to the departments servicing the boards. Notwithstanding the foregoing, the attorney
general shall not be precluded by this section from assigning other attorneys
to service a board if necessary in order to insure competent and consistent
legal representation. Persons providing
legal and investigative services shall to the extent practicable provide the
services on a regular basis to the same board or boards.
(b) The requirements in paragraph (a) with respect to the panel
established in section 299A.465, subdivision 7, expire July 1, 2008.
Sec. 45. Minnesota
Statutes 2008, section 216B.1691, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) Unless otherwise specified in law,
"eligible energy technology" means an energy technology that
generates electricity from the following renewable energy sources: (1) solar; (2) wind; (3) hydroelectric with a
capacity of less than 100 megawatts; (4) hydrogen, provided that after January
1, 2010, the hydrogen must be generated from the resources listed in this clause
paragraph; or (5) biomass, which includes, without limitation, landfill
gas; an anaerobic digester system; the predominantly organic components of
wastewater effluent, sludge, or related byproducts from publicly owned
treatment works, but not including incineration of wastewater sludge to produce
electricity; and an energy recovery facility used to capture the heat value of
mixed municipal solid waste or refuse-derived fuel from mixed municipal solid waste
as a primary fuel.
(b) "Electric utility" means a public utility
providing electric service, a generation and transmission cooperative electric
association, a municipal power agency, or a power district.
(c) "Total retail electric sales" means the kilowatt-hours
of electricity sold in a year by an electric utility to retail customers of the electric utility or to a
distribution utility for distribution to the retail customers of the
distribution utility.
Sec. 46. Minnesota
Statutes 2008, section 245A.18, subdivision 2, is amended to read:
Subd. 2. Child passenger restraint systems; training
requirement. (a) Programs licensed
by the Department of Human Services under Minnesota Rules, chapter 2960, that
serve a child or children under nine years of age must document training that
fulfills the requirements in this subdivision.
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Day - Friday, May 7, 2010 - Top of Page 11959
(b) Before a license holder,
staff person, or caregiver transports a child or children under age nine in a
motor vehicle, the person transporting the child must satisfactorily complete
training on the proper use and installation of child restraint systems in motor
vehicles. Training completed under this
section may be used to meet initial or ongoing training under Minnesota Rules,
part 2960.3070, subparts 1 and 2.
For all providers licensed
prior to July 1, 2006, the training required in this subdivision must be
obtained by December 31, 2007.
(c) Training required under
this section must be at least one hour in length, completed at orientation or initial
training, and repeated at least once every five years. At a minimum, the training must address the
proper use of child restraint systems based on the child's size, weight, and
age, and the proper installation of a car seat or booster seat in the motor
vehicle used by the license holder to transport the child or children.
(d) Training under paragraph
(c) must be provided by individuals who are certified and approved by the
Department of Public Safety, Office of Traffic Safety. License holders may obtain a list of
certified and approved trainers through the Department of Public Safety Web
site or by contacting the agency.
(e) Child care providers
that only transport school age children as defined in section 245A.02,
subdivision 16, in school buses as defined in section 169.011, subdivision 71, clauses
(1) to (4) paragraphs (c) to (f), are exempt from this subdivision.
Sec. 47. Minnesota Statutes 2009 Supplement, section
246B.06, subdivision 7, is amended to read:
Subd. 7. Status
of clients. Clients participating in
the vocational work program are not employees of the Minnesota sex offender
program, the Department of Human Services, or the state, and are not subject to
fair labor standards under sections 177.21 to 177.35; workers compensation under
sections 176.011 to 176.862; the Minnesota Human Rights Act under sections 363A.001
363A.01 to 363A.41; laws governing state employees under chapter 43A;
labor relations under chapter 179A; or the successors to any of these sections
and any other laws pertaining to employees and employment.
Sec. 48. Minnesota Statutes 2009 Supplement, section
256.969, subdivision 3b, is amended to read:
Subd. 3b. Nonpayment
for hospital-acquired conditions and for certain treatments. (a) The commissioner must not make
medical assistance payments to a hospital for any costs of care that result
from a condition listed in paragraph (c), if the condition was hospital
acquired.
(b) For purposes of this
subdivision, a condition is hospital acquired if it is not identified by the
hospital as present on admission. For
purposes of this subdivision, medical assistance includes general assistance
medical care and MinnesotaCare.
(c) The prohibition in
paragraph (a) applies to payment for each hospital-acquired condition listed in
this paragraph that is represented by an ICD-9-CM diagnosis code and is
designated as a complicating condition or a major complicating condition:
(1) foreign object retained
after surgery (ICD-9-CM codes 998.4 or 998.7);
(2) air embolism (ICD-9-CM
code 999.1);
(3) blood incompatibility
(ICD-9-CM code 999.6);
(4) pressure ulcers stage
III or IV (ICD-9-CM codes 707.23 or 707.24);
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of Page 11960
(5) falls and trauma, including fracture, dislocation,
intracranial injury, crushing injury, burn, and electric shock (ICD-9-CM codes
with these ranges on the complicating condition and major complicating
condition list: 800-829; 830-839;
850-854; 925-929; 940-949; and 991-994);
(6) catheter-associated urinary tract infection (ICD-9-CM
code 996.64);
(7) vascular catheter-associated infection (ICD-9-CM code
999.31);
(8) manifestations of poor glycemic control (ICD-9-CM codes
249.10; 249.11; 249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21;
250.22; 250.23; and 251.0);
(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59)
following certain orthopedic procedures (procedure codes 81.01; 81.02; 81.03;
81.04; 81.05; 81.06; 81.07; 81.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34;
81.35; 81.36; 81.37; 81.38; 81.83; and 81.85);
(10) surgical site infection (ICD-9-CM code 998.59) following
bariatric surgery (procedure codes 44.38; 44.39; or 44.95) for a principal
diagnosis of morbid obesity (ICD-9-CM code 278.01);
(11) surgical site infection, mediastinitis (ICD-9-CM code
519.2) following coronary artery bypass graft (procedure codes 36.10 to 36.19);
and
(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42)
or pulmonary embolism (ICD-9-CM codes 415.11 or 415.91 415.19)
following total knee replacement (procedure code 81.54) or hip replacement
(procedure codes 00.85 to 00.87 or 81.51 to 81.52).
(d) The prohibition in paragraph (a) applies to any
additional payments that result from a hospital-acquired condition listed in
paragraph (c), including, but not limited to, additional treatment or
procedures, readmission to the facility after discharge, increased length of
stay, change to a higher diagnostic category, or transfer to another
hospital. In the event of a transfer to
another hospital, the hospital where the condition listed under paragraph (c)
was acquired is responsible for any costs incurred at the hospital to which the
patient is transferred.
(e) A hospital shall not bill a recipient of services for any
payment disallowed under this subdivision.
Sec. 49. Minnesota
Statutes 2009 Supplement, section 256B.0659, subdivision 3, is amended to read:
Subd. 3. Noncovered personal care assistance
services. (a) Personal care
assistance services are not eligible for medical assistance payment under this
section when provided:
(1) by the recipient's spouse, parent of a recipient under
the age of 18, paid legal guardian, licensed foster provider, except as allowed
under section 256B.0651 256B.0652, subdivision 10, or responsible
party;
(2) in lieu of other staffing options in a residential or
child care setting;
(3) solely as a child care or babysitting service; or
(4) without authorization by the commissioner or the
commissioner's designee.
(b) The following personal care services are not eligible for
medical assistance payment under this section when provided in residential
settings:
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of Page 11961
(1) effective January 1, 2010, when the provider of home care
services who is not related by blood, marriage, or adoption owns or otherwise
controls the living arrangement, including licensed or unlicensed services; or
(2) when personal care assistance services are the
responsibility of a residential or program license holder under the terms of a
service agreement and administrative rules.
(c) Other specific tasks not covered under paragraph (a) or
(b) that are not eligible for medical assistance reimbursement for personal
care assistance services under this section include:
(1) sterile procedures;
(2) injections of fluids and medications into veins, muscles,
or skin;
(3) home maintenance or chore services;
(4) homemaker services not an integral part of assessed
personal care assistance services needed by a recipient;
(5) application of restraints or implementation of procedures
under section 245.825;
(6) instrumental activities of daily living for children
under the age of 18; and
(7) assessments for personal care assistance services by
personal care assistance provider agencies or by independently enrolled
registered nurses.
Sec. 50.
Minnesota Statutes 2009 Supplement, section 256B.5012, subdivision 8, is
amended to read:
Subd. 8. ICF/MR rate decreases effective July 1,
2009. Effective July 1, 2009, the
commissioner shall decrease each facility reimbursed under this section
operating payment adjustments equal to 2.58 percent of the operating payment
rates in effect on June 30, 2009. For
each facility, the commissioner shall implement the rate reduction, based on
occupied beds, using the percentage specified in this subdivision multiplied by
the total payment rate, including the variable rate but excluding the
property-related payment rate, in effect on the preceding date. The total rate reduction shall include the
adjustment provided in section 256B.502, subdivision 7.
Sec. 51.
Minnesota Statutes 2008, section 256L.04, subdivision 1, is amended to
read:
Subdivision 1. Families with children. (a) Families with children with family
income equal to or less than 275 percent of the federal poverty guidelines for
the applicable family size shall be eligible for MinnesotaCare according to
this section. All other provisions of
sections 256L.01 to 256L.18, including the insurance-related barriers to
enrollment under section 256L.07, shall apply unless otherwise specified.
(b) Parents who enroll in the MinnesotaCare program must also
enroll their children, if the children are eligible. Children may be enrolled separately without
enrollment by parents. However, if one
parent in the household enrolls, both parents must enroll, unless other
insurance is available. If one child
from a family is enrolled, all children must be enrolled, unless other
insurance is available. If one spouse in
a household enrolls, the other spouse in the household must also enroll, unless
other insurance is available. Families
cannot choose to enroll only certain uninsured members.
(c) Beginning October 1, 2003, the dependent sibling
definition no longer applies to the MinnesotaCare program. These persons are no longer counted in the
parental household and may apply as a separate household.
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(d) Beginning July 1, 2003 2010, or upon federal
approval, whichever is later, parents are not eligible for MinnesotaCare if their
gross income exceeds $57,500.
(e) Children formerly enrolled in medical assistance and
automatically deemed eligible for MinnesotaCare according to section 256B.057,
subdivision 2c, are exempt from the requirements of this section until renewal.
Sec. 52. Minnesota
Statutes 2009 Supplement, section 260C.212, subdivision 7, is amended to read:
Subd. 7. Administrative or court review of
placements. (a) There shall be an
administrative review of the out-of-home placement plan of each child placed in
foster care no later than 180 days after the initial placement of the child in
foster care and at least every six months thereafter if the child is not
returned to the home of the parent or parents within that time. The out-of-home placement plan must be
monitored and updated at each administrative review. The administrative review shall be conducted
by the responsible social services agency using a panel of appropriate persons
at least one of whom is not responsible for the case management of, or the delivery
of services to, either the child or the parents who are the subject of the
review. The administrative review shall
be open to participation by the parent or guardian of the child and the child,
as appropriate.
(b) As an alternative to the administrative review required in
paragraph (a), the court may, as part of any hearing required under the
Minnesota Rules of Juvenile Protection Procedure, conduct a hearing to monitor
and update the out-of-home placement plan pursuant to the procedure and standard
in section 260C.201, subdivision 6, paragraph (d). The party requesting review of the
out-of-home placement plan shall give parties to the proceeding notice of the
request to review and update the out-of-home placement plan. A court review conducted pursuant to section
260C.193; 260C.201, subdivision 1 or 11; 260C.141, subdivision 2 or 2a,
clause (2); or; 260C.317; or section 260D.06 shall satisfy
the requirement for the review so long as the other requirements of this
section are met.
(c) As appropriate to the stage of the proceedings and
relevant court orders, the responsible social services agency or the court
shall review:
(1) the safety, permanency needs, and well-being of the child;
(2) the continuing necessity for and appropriateness of the
placement;
(3) the extent of compliance with the out-of-home placement
plan;
(4) the extent of progress which has been made toward
alleviating or mitigating the causes necessitating placement in foster care;
(5) the projected date by which the child may be returned to
and safely maintained in the home or placed permanently away from the care of
the parent or parents or guardian; and
(6) the appropriateness of the services provided to the child.
(d) When a child is age 16 or older, in addition to any administrative
review conducted by the agency, at the review required under section 260C.201,
subdivision 11, paragraph (d), clause (3), item (iii); or 260C.317, subdivision
3, clause (3), the court shall review the independent living plan required
under subdivision 1, paragraph (c), clause (11), and the provision of services
to the child related to the well-being of the child as the child prepares to
leave foster care. The review shall
include the actual plans related to each item in the plan necessary to the child's
future safety and well-being when the child is no longer in foster care.
(1) At the court review, the responsible social services
agency shall establish that it has given the notice required under Minnesota
Rules, part 9560.0060 9560.0660, regarding the right to continued
access to services for certain children in foster care past age 18 and of the
right to appeal a denial of social services under section 256.045. If the agency is unable to establish that the
notice, including the right to appeal a denial of social services, has been
given, the court shall require the agency to give it.
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(2) The court shall make findings regarding progress toward
or accomplishment of the following goals:
(i) the child has obtained a high school diploma or its
equivalent;
(ii) the child has completed a driver's education course or
has demonstrated the ability to use public transportation in the child's
community;
(iii) the child is employed or enrolled in postsecondary
education;
(iv) the child has applied for and obtained postsecondary
education financial aid for which the child is eligible;
(v) the child has health care coverage and health care
providers to meet the child's physical and mental health needs;
(vi) the child has applied for and obtained disability income
assistance for which the child is eligible;
(vii) the child has obtained affordable housing with
necessary supports, which does not include a homeless shelter;
(viii) the child has saved sufficient funds to pay for the
first month's rent and a damage deposit;
(ix) the child has an alternative affordable housing plan,
which does not include a homeless shelter, if the original housing plan is
unworkable;
(x) the child, if male, has registered for the Selective
Service; and
(xi) the child has a permanent connection to a caring adult.
(3) The court shall ensure that the responsible agency in
conjunction with the placement provider assists the child in obtaining the
following documents prior to the child's leaving foster care: a Social Security card; the child's birth
certificate; a state identification card or driver's license, green card, or
school visa; the child's school, medical, and dental records; a contact list of
the child's medical, dental, and mental health providers; and contact
information for the child's siblings, if the siblings are in foster care.
(e) When a child is age 17 or older, during the 90-day period
immediately prior to the date the child is expected to be discharged from
foster care, the responsible social services agency is required to provide the
child with assistance and support in developing a transition plan that is
personalized at the direction of the child.
The transition plan must be as detailed as the child may elect and
include specific options on housing, health insurance, education, local
opportunities for mentors and continuing support services, and work force
supports and employment services. The
county shall also provide the individual with appropriate contact information
if the individual needs more information or needs help dealing with a crisis
situation through age 21.
Sec. 53.
Minnesota Statutes 2008, section 260C.301, subdivision 1, is amended to
read:
Subdivision 1. Voluntary and involuntary. The juvenile court may upon petition,
terminate all rights of a parent to a child:
(a) with the written consent of a parent who for good cause
desires to terminate parental rights; or
(b) if it finds that one or more of the following conditions
exist:
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(1) that the parent has
abandoned the child;
(2) that the parent has
substantially, continuously, or repeatedly refused or neglected to comply with
the duties imposed upon that parent by the parent and child relationship,
including but not limited to providing the child with necessary food, clothing,
shelter, education, and other care and control necessary for the child's
physical, mental, or emotional health and development, if the parent is
physically and financially able, and either reasonable efforts by the social
services agency have failed to correct the conditions that formed the basis of
the petition or reasonable efforts would be futile and therefore unreasonable;
(3) that a parent has been
ordered to contribute to the support of the child or financially aid in the
child's birth and has continuously failed to do so without good cause. This clause shall not be construed to state a
grounds for termination of parental rights of a noncustodial parent if that
parent has not been ordered to or cannot financially contribute to the support
of the child or aid in the child's birth;
(4) that a parent is
palpably unfit to be a party to the parent and child relationship because of a
consistent pattern of specific conduct before the child or of specific conditions
directly relating to the parent and child relationship either of which are
determined by the court to be of a duration or nature that renders the parent
unable, for the reasonably foreseeable future, to care appropriately for the
ongoing physical, mental, or emotional needs of the child. It is presumed that a parent is palpably
unfit to be a party to the parent and child relationship upon a showing that
the parent's parental rights to one or more other children were involuntarily
terminated or that the parent's custodial rights to another child have been
involuntarily transferred to a relative under section 260C.201, subdivision 11,
paragraph (e), clause (1), or a similar law of another jurisdiction;
(5) that following the
child's placement out of the home, reasonable efforts, under the direction of
the court, have failed to correct the conditions leading to the child's
placement. It is presumed that
reasonable efforts under this clause have failed upon a showing that:
(i) a child has resided out
of the parental home under court order for a cumulative period of 12 months
within the preceding 22 months. In the
case of a child under age eight at the time the petition was filed alleging the
child to be in need of protection or services, the presumption arises when the
child has resided out of the parental home under court order for six months
unless the parent has maintained regular contact with the child and the parent
is complying with the out-of-home placement plan;
(ii) the court has approved
the out-of-home placement plan required under section 260C.212 and filed with
the court under section 260C.178;
(iii) conditions leading to
the out-of-home placement have not been corrected. It is presumed that conditions leading to a
child's out-of-home placement have not been corrected upon a showing that the
parent or parents have not substantially complied with the court's orders and a
reasonable case plan; and
(iv) reasonable efforts have
been made by the social services agency to rehabilitate the parent and reunite
the family.
This clause does not
prohibit the termination of parental rights prior to one year, or in the case
of a child under age eight, prior to six months after a child has been placed
out of the home.
It is also presumed that reasonable
efforts have failed under this clause upon a showing that:
(A) the parent has been
diagnosed as chemically dependent by a professional certified to make the
diagnosis;
(B) the parent has been
required by a case plan to participate in a chemical dependency treatment
program;
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(C) the treatment programs
offered to the parent were culturally, linguistically, and clinically
appropriate;
(D) the parent has either
failed two or more times to successfully complete a treatment program or has
refused at two or more separate meetings with a caseworker to participate in a
treatment program; and
(E) the parent continues to
abuse chemicals.
(6) that a child has
experienced egregious harm in the parent's care which is of a nature, duration,
or chronicity that indicates a lack of regard for the child's well-being, such that
a reasonable person would believe it contrary to the best interest of the child
or of any child to be in the parent's care;
(7) that in the case of a
child born to a mother who was not married to the child's father when the child
was conceived nor when the child was born the person is not entitled to notice
of an adoption hearing under section 259.49 and the person has not registered
with the fathers' adoption registry under section 259.52;
(8) that the child is
neglected and in foster care; or
(9) that the parent has been
convicted of a crime listed in section 260.012, paragraph (b) (g),
clauses (1) to (3).
In an action involving an
American Indian child, sections 260.751 to 260.835 and the Indian Child Welfare
Act, United States Code, title 25, sections 1901 to 1923, control to the extent
that the provisions of this section are inconsistent with those laws.
Sec. 54. Minnesota Statutes 2008, section 270.41,
subdivision 5, is amended to read:
Subd. 5. Prohibited
activity. A licensed assessor or
other person employed by an assessment jurisdiction or contracting with an
assessment jurisdiction for the purpose of valuing or classifying property for
property tax purposes is prohibited from making appraisals or analyses,
accepting an appraisal assignment, or preparing an appraisal report as defined
in section 82B.02, subdivisions 2 to 5 82B.021, subdivisions 2, 4, 6,
and 7, on any property within the assessment jurisdiction where the
individual is employed or performing the duties of the assessor under
contract. Violation of this prohibition
shall result in immediate revocation of the individual's license to assess
property for property tax purposes. This
prohibition must not be construed to prohibit an individual from carrying out
any duties required for the proper assessment of property for property tax
purposes. If a formal resolution has
been adopted by the governing body of a governmental unit, which specifies the
purposes for which such work will be done, this prohibition does not apply to appraisal
activities undertaken on behalf of and at the request of the governmental unit
that has employed or contracted with the individual. The resolution may only allow appraisal
activities which are related to condemnations, right-of-way acquisitions, or
special assessments.
Sec. 55. Minnesota Statutes 2009 Supplement, section
270.97, is amended to read:
270.97 DEPOSIT OF REVENUES.
The commissioner shall
deposit all revenues derived from the tax, interest, and penalties received
from the county in the contaminated site cleanup and development account in the
general fund, and money in the account is annually appropriated
to the commissioner of the Department of Employment and Economic Development,
for the purposes of section 116J.551.
Sec. 56. Minnesota Statutes 2009 Supplement, section
270C.445, subdivision 7, is amended to read:
Subd. 7. Enforcement;
civil actions. (a) Any violation of
this section is an unfair, deceptive, and unlawful trade practice within the
meaning of section 8.31. An action taken
under this section 8.31 is in the public interest.
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(b) A client may bring a
civil action seeking redress for a violation of this section in the
conciliation or the district court of the county in which unlawful action is
alleged to have been committed or where the respondent resides or has a
principal place of business.
(c) A court finding for the
plaintiff must award:
(1) actual damages;
(2) incidental and consequential
damages;
(3) statutory damages of
twice the sum of: (i) the tax
preparation fees; and (ii) if the plaintiff violated subdivision 3a, 4, or 5b,
all interest and fees for a refund anticipation loan;
(4) reasonable attorney
fees;
(5) court costs; and
(6) any other equitable
relief as the court considers appropriate.
Sec. 57. Minnesota Statutes 2008, section 273.1115,
subdivision 1, is amended to read:
Subdivision 1. Definitions. For purposes of this section,
"commercial aggregate deposit" and "actively mined" have
the meanings given them in section 273.13, subdivision 23, paragraph (l)
(m).
Sec. 58. Minnesota Statutes 2008, section 273.1115,
subdivision 3, is amended to read:
Subd. 3. Application. Application for valuation deferment under
this section must be filed by May 1 of the assessment year. Any application filed and granted continues
in effect for subsequent years until the property no longer qualifies, provided
that supplemental affidavits under subdivision 8 are timely filed. The application must be filed with the
assessor of the county in which the real property is located on such form as
may be prescribed by the commissioner of revenue. The application must be executed and
acknowledged in the manner required by law to execute and acknowledge a deed
and must contain at least the following information and any other information
the commissioner deems necessary:
(1) the legal description of
the area;
(2) the name and address of
owner;
(3) a copy of the affidavit filed
under section 273.13, subdivision 23, paragraph (l) (m), when
property is classified as:
(i) 1b under section 273.13,
subdivision 22, paragraph (b);
(ii) 2a under section
273.13, subdivision 23;
(iii) 2b under section
273.13, subdivision 23; or
(iv) 2e under section 273.13,
subdivision 23, paragraph (l) (m).
In other cases, the application must include
a similar document with the same information as contained in the affidavit
under section 273.13, subdivision 23, paragraph (l) (m); and
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(4) a statement of proof from the owner that the land
contains a restrictive covenant limiting its use for the property's surface to
that which exists on the date of the application and limiting its future use to
the preparation and removal of the commercial aggregate deposit under its
surface. To qualify under this clause,
the covenant must be binding on the owner or the owner's successor or assignee,
and run with the land, except as provided in subdivision 5 allowing for the
cancellation of the covenant under certain conditions.
Sec. 59.
Minnesota Statutes 2008, section 273.124, subdivision 11, is amended to
read:
Subd. 11. Limitation on homestead treatment
Property classified as homestead and
nonhomestead; reduction. (a)
For taxes payable in 2003 through 2005 only, if the assessor has classified a
property as both homestead and nonhomestead, the greater of:
(1) the value attributable to the portion of the property
used as a homestead; or
(2) the homestead value amount determined under paragraph
(b), is entitled to assessment as a homestead under section 273.13, subdivision
22 or 23.
(b) For taxes payable in 2003 only, the homestead value
amount is $60,000. For taxes payable in
2004 only, the homestead value amount is $45,000. For taxes payable in 2005 only, the homestead
value amount is $30,000.
The homestead value amount must not exceed the property's
taxable market value.
(c) If the assessor has classified a property as both
homestead and nonhomestead, the reductions in tax provided under sections
273.135 and 273.1391 apply to the value of both the homestead and the
nonhomestead portions of the property.
Sec. 60.
Minnesota Statutes 2008, section 290.0921, subdivision 3a, is amended to
read:
Subd. 3a. Exemptions.
The following entities are exempt from the tax imposed by this
section:
(1) cooperatives taxable under subchapter T of the Internal
Revenue Code or organized under chapter 308 or a similar law of another state;
(2) corporations subject to tax under section 60A.15,
subdivision 1 297I.05, subdivisions 1 to 5;
(3) real estate investment trusts;
(4) regulated investment companies or a fund thereof;
(5) entities having a valid election in effect under section
860D(b) of the Internal Revenue Code; and
(6) small corporations exempt from the federal alternative
minimum tax under section 55(e) of the Internal Revenue Code.
Sec. 61.
Minnesota Statutes 2008, section 297A.61, subdivision 3, is amended to
read:
Subd. 3. Sale and purchase. (a) "Sale" and
"purchase" include, but are not limited to, each of the transactions
listed in this subdivision.
(b) Sale and purchase include:
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(1) any transfer of title or
possession, or both, of tangible personal property, whether absolutely or
conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the
granting of a license to use or consume, for a consideration in money or by
exchange or barter, tangible personal property, other than a manufactured home
used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase
include the production, fabrication, printing, or processing of tangible
personal property for a consideration for consumers who furnish either directly
or indirectly the materials used in the production, fabrication, printing, or
processing.
(d) Sale and purchase
include the preparing for a consideration of food. Notwithstanding section 297A.67, subdivision
2, taxable food includes, but is not limited to, the following:
(1) prepared food sold by
the retailer;
(2) soft drinks;
(3) candy;
(4) dietary supplements; and
(5) all food sold through
vending machines.
(e) A sale and a purchase
includes the furnishing for a consideration of electricity, gas, water, or
steam for use or consumption within this state.
(f) A sale and a purchase
includes the transfer for a consideration of prewritten computer software
whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase
includes the furnishing for a consideration of the following services:
(1) the privilege of
admission to places of amusement, recreational areas, or athletic events, and
the making available of amusement devices, tanning facilities, reducing salons,
steam baths, Turkish baths, health clubs, and spas or athletic facilities;
(2) lodging and related
services by a hotel, rooming house, resort, campground, motel, or trailer camp,
including furnishing the guest of the facility with access to telecommunication
services, and the granting of any similar license to use real property in a
specific facility, other than the renting or leasing of it for a continuous
period of 30 days or more under an enforceable written agreement that may not
be terminated without prior notice;
(3) nonresidential parking
services, whether on a contractual, hourly, or other periodic basis, except for
parking at a meter;
(4) the granting of
membership in a club, association, or other organization if:
(i) the club, association,
or other organization makes available for the use of its members sports and
athletic facilities, without regard to whether a separate charge is assessed
for use of the facilities; and
(ii) use of the sports and
athletic facility is not made available to the general public on the same basis
as it is made available to members.
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Granting of membership means
both onetime initiation fees and periodic membership dues. Sports and athletic facilities include golf
courses; tennis, racquetball, handball, and squash courts; basketball and
volleyball facilities; running tracks; exercise equipment; swimming pools; and
other similar athletic or sports facilities;
(5) delivery of aggregate
materials by a third party, excluding delivery of aggregate material used in
road construction, and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the
concrete block; and
(6) services as provided in
this clause:
(i) laundry and dry cleaning
services including cleaning, pressing, repairing, altering, and storing
clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning.
Laundry and dry cleaning services do not include services provided by
coin operated facilities operated by the customer;
(ii) motor vehicle washing,
waxing, and cleaning services, including services provided by coin operated
facilities operated by the customer, and rustproofing, undercoating, and towing
of motor vehicles;
(iii) building and
residential cleaning, maintenance, and disinfecting services and pest control
and exterminating services;
(iv) detective, security,
burglar, fire alarm, and armored car services; but not including services
performed within the jurisdiction they serve by off-duty licensed peace
officers as defined in section 626.84, subdivision 1, or services provided by a
nonprofit organization for monitoring and electronic surveillance of persons
placed on in-home detention pursuant to court order or under the direction of
the Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing,
mowing, spraying and sprigging services; garden planting and maintenance; tree,
bush, and shrub pruning, bracing, spraying, and surgery; indoor plant care;
tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; and tree
trimming for public utility lines.
Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when
provided by a licensed health care facility or professional or upon written
referral from a licensed health care facility or professional for treatment of
illness, injury, or disease; and
(viii) the furnishing of
lodging, board, and care services for animals in kennels and other similar
arrangements, but excluding veterinary and horse boarding services.
In applying the provisions
of this chapter, the terms "tangible personal property" and
"retail sale" include taxable services listed in clause (6), items
(i) to (vi) and (viii), and the provision of these taxable services, unless
specifically provided otherwise. Services
performed by an employee for an employer are not taxable. Services performed by a partnership or
association for another partnership or association are not taxable if one of
the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity.
Services performed between members of an affiliated group of
corporations are not taxable. For
purposes of the preceding sentence, "affiliated group of
corporations" means those entities that would be classified as members of
an affiliated group as defined under United States Code, title 26, section
1504, disregarding the exclusions in section 1504(b).
For purposes of clause (5),
"road construction" means construction of (1) public roads, (2)
cartways, and (3) private roads in townships located outside of the
seven-county metropolitan area up to the point of the emergency response
location sign.
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(h) A sale and a purchase includes the furnishing for a
consideration of tangible personal property or taxable services by the United
States or any of its agencies or instrumentalities, or the state of Minnesota,
its agencies, instrumentalities, or political subdivisions.
(i) A sale and a purchase includes the furnishing for a
consideration of telecommunications services, ancillary services associated with
telecommunication services, cable television services, direct satellite
services, and ring tones.
Telecommunication services include, but are not limited to, the
following services, as defined in section 297A.669: air-to-ground radiotelephone service, mobile
telecommunication service, postpaid calling service, prepaid calling service,
prepaid wireless calling service, and private communication services. The services in this paragraph are taxed to
the extent allowed under federal law.
(j) A sale and a purchase includes the furnishing for a
consideration of installation if the installation charges would be subject to
the sales tax if the installation were provided by the seller of the item being
installed.
(k) A sale and a purchase includes the rental of a vehicle by
a motor vehicle dealer to a customer when (1) the vehicle is rented by the
customer for a consideration, or (2) the motor vehicle dealer is reimbursed
pursuant to a service contract as defined in section 65B.29 59B.02,
subdivision 1, clause (1) 11.
Sec. 62.
Minnesota Statutes 2009 Supplement, section 299A.61, subdivision 1, is
amended to read:
Subdivision 1. Establishment. The commissioner of public safety, in
cooperation with the commissioner of administration Office of Enterprise
Technology, shall develop and maintain an integrated criminal alert network
to facilitate the communication of crime prevention information by electronic
means among state agencies, law enforcement officials, and the private
sector. The network shall disseminate
data regarding the commission of crimes, including information on missing and
endangered children or vulnerable adults, and attempt to reduce theft and other
crime by the use of electronic transmission of information. In addition, the commissioner shall evaluate
the feasibility of using the network to disseminate data regarding the use of
fraudulent checks and the coordination of security and antiterrorism efforts
with the Federal Bureau of Investigation.
If the commissioner determines that one or both of these uses are
feasible, the commissioner shall ensure that the network disseminates data in
the area or areas determined to be feasible.
Sec. 63.
Minnesota Statutes 2008, section 309.72, is amended to read:
309.72 ACQUISITION OF
INTERESTS IN INSURANCE.
An organization described in section 170(c) of the Internal
Revenue Code of 1986, as amended through December 31, 1991, may purchase,
accept, or otherwise acquire an interest in a life insurance policy as
beneficiary or owner, as provided in section 61A.073 60A.0783,
subdivision 2, paragraph (f).
Sec. 64.
Minnesota Statutes 2008, section 325F.675, subdivision 6, is amended to
read:
Subd. 6. Nonapplicability to telephone
companies. No provisions of this
section shall be construed to prohibit a telephone company from obtaining,
using, disclosing, or permitting access to any telephone record, either
directly or indirectly, through its agents:
(1) unless prohibited by law;
(2) with the lawful consent of the customer or subscriber;
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(3) as may be necessarily incident to the rendition of the
service, to initiate, render, bill, and collect customer charges, or to the
protection of the rights or property of the provider of that service, or to
protect users of those services and other carriers from fraudulent, abusive, or
unlawful use of, or subscription to, such services;
(4) in connection with the sale or transfer of all or part of
a business, or the purchase or acquisition of a portion or all of a business,
or the migration of a customer from one carrier to another;
(5) to a governmental entity, if the telephone company
reasonably believes that an emergency involving immediate danger of death or
serious physical injury to any person justifies disclosure of the information;
or
(6) to the National Center for Missing and Exploited
Children, in connection with a report submitted under section 227 226
of the federal Victims of Child Abuse Act of 1990, Public Law 101-647.
Sec. 65.
Minnesota Statutes 2008, section 325F.732, subdivision 2, is amended to
read:
Subd. 2. Scope.
The requirements of Laws 1981, chapter 333, sections 1 to 17 do not
apply to the following:
(1) transactions at occasional "garage" or
"yard" sales, or estate sales or farm auctions held at the decedent's
residence, except that precious metal dealers must comply with the requirements
of sections 325F.734 to 325F.742 for these transactions;
(2) transactions regulated by chapter 80A;
(3) transactions regulated by the Federal Commodity Futures
Commission Act, Public Law 93-463;
(4) transactions involving the purchase of precious metal
grindings, filings, slag, sweeps, scraps, or dust from an industrial
manufacturer, dental lab, dentist, or agent thereof;
(5) transactions involving the purchase of photographic film,
such as lithographic and X-ray film, or silver residue or flake recovered in
lithographic and X-ray film processing;
(6) transactions involving coins, bullion, or ingots;
(7) transactions in which the second hand item containing
precious metal is exchanged for a new item containing precious metal and the value
of the new item exceeds the value of the secondhand item, except that a natural
person, partnership or corporation who is a precious metal dealer by engaging
in a transaction which is not exempted by this section must comply with the
requirements of sections 325F.734 to 325F.742;
(8) transactions between precious metal dealers if both
dealers are licensed under section 325F.733 or if the seller's business is
located outside of the state and the item is shipped from outside the state to
a dealer licensed under section 325F.733;
(9) transactions in which the buyer of the secondhand item
containing precious metal is engaged primarily in the business of buying and
selling antiques, and the items are resold in an unaltered condition except for
repair, and the items are resold at retail, and the buyer paid less than $2,500
for secondhand items containing precious metals purchased within any period of
12 consecutive months.
Sec. 66.
Minnesota Statutes 2008, section 332.37, is amended to read:
332.37 PROHIBITED
PRACTICES.
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No collection agency or
collector shall:
(1) in collection letters or
publications, or in any communication, oral or written threaten wage garnishment
or legal suit by a particular lawyer, unless it has actually retained the
lawyer;
(2) use or employ sheriffs
or any other officer authorized to serve legal papers in connection with the
collection of a claim, except when performing their legally authorized duties;
(3) use or threaten to use
methods of collection which violate Minnesota law;
(4) furnish legal advice or
otherwise engage in the practice of law or represent that it is competent to do
so;
(5) communicate with debtors
in a misleading or deceptive manner by using the stationery of a lawyer, forms
or instruments which only lawyers are authorized to prepare, or instruments
which simulate the form and appearance of judicial process;
(6) exercise authority on behalf
of a creditor to employ the services of lawyers unless the creditor has
specifically authorized the agency in writing to do so and the agency's course
of conduct is at all times consistent with a true relationship of attorney and
client between the lawyer and the creditor;
(7) publish or cause to be
published any list of debtors except for credit reporting purposes, use shame
cards or shame automobiles, advertise or threaten to advertise for sale any
claim as a means of forcing payment thereof, or use similar devices or methods
of intimidation;
(8) refuse to return any
claim or claims and all valuable papers deposited with a claim or claims upon
written request of the creditor, claimant or forwarder after tender of the
amounts due and owing to the agency within 30 days after the request; refuse or
intentionally fail to account to its clients for all money collected within 30
days from the last day of the month in which the same is collected; or, refuse
or fail to furnish at intervals of not less than 90 days upon written request
of the claimant or forwarder, a written report upon claims received from the
claimant or forwarder;
(9) operate under a name or
in a manner which implies that the agency is a branch of or associated with any
department of federal, state, county or local government or an agency thereof;
(10) commingle money
collected for a customer with the agency's operating funds or use any part of a
customer's money in the conduct of the agency's business;
(11) transact business or
hold itself out as a debt prorater, debt adjuster, or any person who settles,
adjusts, prorates, pools, liquidates or pays the indebtedness of a debtor,
unless there is no charge to the debtor, or the pooling or liquidation is done
pursuant to court order or under the supervision of a creditor's committee;
(12) violate any of the
provisions of the Fair Debt Collection Practices Act of 1977, Public Law
95-109, while attempting to collect on any account, bill or other
indebtedness;
(13) communicate with a
debtor by use of a recorded message utilizing an automatic dialing announcing
device unless the recorded message is immediately preceded by a live operator
who discloses prior to the message the name of the collection agency and the
fact the message intends to solicit payment and the operator obtains the
consent of the debtor to hearing the message;
(14) in collection letters
or publications, or in any communication, oral or written, imply or suggest
that health care services will be withheld in an emergency situation;
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Page 11973
(15) when a debtor has a listed telephone number, enlist the
aid of a neighbor or third party to request that the debtor contact the
licensee or collector, except a person who resides with the debtor or a third
party with whom the debtor has authorized the licensee or collector to place
the request. This clause does not apply
to a call back message left at the debtor's place of employment which is limited
to the licensee's or collector's telephone number and name;
(16) when attempting to collect a debt, fail to provide the
debtor with the full name of the collection agency as it appears on its
license;
(17) collect any money from a debtor that is not reported to a
creditor or fail to return any amount of overpayment from a debtor to the
debtor or to the state of Minnesota pursuant to the requirements of chapter
345;
(18) accept currency or coin as payment for a debt without
issuing an original receipt to the debtor and maintaining a duplicate receipt
in the debtor's payment records;
(19) attempt to collect any amount of money from a debtor or
charge a fee to a creditor that is not authorized by agreement with the client;
(20) falsify any collection agency documents with the intent
to deceive a debtor, creditor, or governmental agency; or
(21) when initially contacting a Minnesota debtor by mail,
fail to include a disclosure on the contact notice, in a type size or font
which is equal to or larger than the largest other type of type size or font
used in the text of the notice. The
disclosure must state: "This
collection agency is licensed by the Minnesota Department of Commerce."
Sec. 67. Minnesota
Statutes 2008, section 332.40, subdivision 2, is amended to read:
Subd. 2. Other examinations. The commissioner may investigate within
or without this state as the commissioner deems necessary to determine whether
any person has violated any provision of the Fair Debt Collection Practices Act
of 1977, Public Law 95-109 or of sections 332.31 to 332.45, or any rule
or order thereunder; to determine whether a license or registration should be
issued, renewed, or revoked; to aid in the enforcement of sections 332.31 to
332.45; or in prescribing rules and forms thereunder. The commissioner may publish information
concerning any violation of sections 332.31 to 332.45 or any rule or order
thereunder.
Sec. 68. Minnesota
Statutes 2008, section 332.52, subdivision 3, is amended to read:
Subd. 3. Credit services organization. (a) "Credit services
organization" means any person that, with respect to the extension of
credit by others, sells, provides, performs, or represents that the person will
sell, provide, or perform, in return for the payment of money or other valuable
consideration, any of the following services:
(1) improve a buyer's credit record, history, or rating;
(2) obtain an extension of credit for a buyer; or
(3) provide advice or assistance to a buyer with regard to
either clause (1) or (2).
(b) "Credit services organization" does not include:
(1) any person authorized to make loans or extensions of
credit under the laws of this state or the United States, if the person is
subject to regulation and supervision by this state or the United States or a
lender approved by the United States Secretary of Housing and Urban Development
for participation in any mortgage insurance program under the National Housing
Act, United States Code, title 12, section 1701 et seq.;
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(2) any bank, savings bank,
or savings and loan institution whose deposits or accounts are eligible for
insurance by the Federal Deposit Insurance Corporation or a subsidiary of the
bank, savings bank, or savings and loan institution;
(3) any credit union,
federal credit union, or out-of-state credit union doing business in this
state;
(4) any nonprofit
organization exempt from taxation under section 501(c)(3) of the Internal
Revenue Code of 1986, as amended through December 31, 1990;
(5) any person licensed as a
prorating agency under the laws of this state if the person is acting within
the course and scope of that license;
(6) any person licensed as a
real estate broker by this state if the person is acting within the course and
scope of that license;
(7) any person licensed as a
collection agency under the laws of this state if the person is acting within
the course and scope of that license;
(8) any person licensed to
practice law in this state if the person renders services within the course and
scope of practice as an attorney;
(9) any broker-dealer
registered with the Securities and Exchange Commission or the Commodity Futures
Trading Commission if the broker-dealer is acting within the course and scope
of that regulation; or
(10) any consumer reporting
agency as defined in the federal Fair Credit Reporting Act, United States Code,
title 15, sections 1681 to 1681t, as amended through December 31, 1990.
Sec. 69. Minnesota Statutes 2009 Supplement, section
332B.07, subdivision 1, is amended to read:
Subdivision 1. Debtor's
right to cancel. (a) A debtor has
the right to cancel a debt settlement services agreement without cause at any
time upon ten days' written notice to the debt settlement services provider.
(b) In the event of
cancellation, the debt settlement services provider must, within ten days of the
cancellation, notify the debtor's creditors with whom the debt settlement
services provider is or has been, under the terms of the debt settlement
agreement, in communication, of the cancellation and immediately refund all
fees paid by the debtor to the debt settlement services provider that exceed
the fees allowed under section 332B.09.
(c) Upon cancellation, the
debt settlement services provider must cease collection of any monthly fees
beginning in the month following cancellation.
(d) Notwithstanding
paragraph (c), a debt settlement services provider is entitled to the full
amount of the fees provided for in the debt settlement services agreement if
the provider can show that:
(1) the provider obtained a settlement
offer from the creditor or creditors in accordance with the debt settlement
services agreement;
(2) the debtor rejected the
settlement offer; or
(3) within the period
contemplated in the debt settlement services agreement, the debtor entered into
a settlement agreement with the same creditor or creditors for an amount equal
to or lower than the settlement offer obtained by the provider.
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Sec. 70. Minnesota
Statutes 2009 Supplement, section 332B.07, subdivision 4, is amended to read:
Subd. 4. Debt settlement services provider's right
to cancel. (a) A debt settlement
services provider may cancel a debt settlement services agreement with good
cause upon 30 days' written notice to the debtor.
(b) Within ten days after the cancellation, the debt
settlement services provider must notify the debtor's creditors with whom the
debt settlement services provider is or has been, under the terms of the debt
settlement services agreement, in communication, of the cancellation.
(c) Upon cancellation, the debt settlement services provider
must cease collection of any monthly fees beginning in the month following
cancellation.
(d) A debt settlement services provider is entitled to the
full amount of the fees provided for in the debt settlement services agreement
if the provider can show that:
(1) the provider obtained a settlement offer from the creditor
or creditors in accordance with the debt settlement services agreement;
(2) the debtor rejected the settlement offer; or
(3) within the period contemplated in the debt settlement
services agreement, the debtor entered into a settlement agreement with the
same creditor or creditors for an amount equal to or lower than the settlement
offer obtained by the provider.
Sec. 71. Minnesota
Statutes 2009 Supplement, section 332B.09, subdivision 3, is amended to read:
Subd. 3. Fees as a percentage of savings. (a) The total amount of the fees claimed,
demanded, charged, collected, or received under this subdivision shall be
calculated as 30 percent of the savings actually negotiated by the debt
settlement services provider. The
savings shall be calculated as the difference between the aggregate debt that
is stated in the debt settlement services agreement at the time of its execution
and total amount that the debtor actually pays to settle all the debts stated
in the debt settlement services agreement, provided that only savings resulting
from concessions actually negotiated by the debt settlement services provider
may be counted. A debt settlement
services provider that calculates fees as a percentage of debt savings
may:
(1) charge an origination fee, which may be designated by the
debt settlement services provider as nonrefundable, of:
(i) $300 on aggregate debt of less than $20,000; or
(ii) $500 on aggregate debt of $20,000 or more;
(2) charge a monthly fee of:
(i) no greater than $65 on aggregate debt of less than
$40,000; and
(ii) no greater than $75 on aggregate debt of $40,000 or more;
and
(3) charge a settlement fee for the remainder of the allowable
fees, which may be demanded and collected no earlier than upon delivery to the
debt settlement services provider by a creditor of a bona fide, final written
settlement offer consistent with the terms of the debt settlement services
agreement. A settlement fee may be
assessed for each debt settled, but the sum total of the origination fee, the
monthly fee, and the settlement fee may not exceed 30 percent of the savings,
as calculated under paragraph (a).
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(b) The collection of
monthly fees shall cease under this subdivision when the total of monthly fees
and the origination fee equals 50 percent of the total fees allowable under this
subdivision. For the purposes of this
subdivision, 50 percent of the total fees allowable shall assume a settlement
of 50 cents on the dollar.
(c) In no event may more
than 50 percent of the total amount of fees allowable be claimed, demanded,
charged, collected, or received by a debt settlement services provider any
earlier than upon delivery to the debt settlement services provider by a
creditor of a bona fide, final written settlement offer consistent with the
terms of the debt settlement services agreement.
Sec. 72. Minnesota Statutes 2008, section 374.02, is
amended to read:
374.02 EXPENSE DIVIDED.
The county and city shall
share equally in the cost of acquiring land for constructing, equipping, and
furnishing the building. The building shall
not be constructed or contracted to be constructed, no land shall be acquired,
and no bonds shall be issued or sold by the county, as provided in section
374.03, until the city has been authorized to issue bonds to pay its share
of the cost and the ordinances providing for the bond issue have been ratified
by the vote of the electors of the city in the manner provided in the city
charter or by law.
Sec. 73. 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) paragraph (c),
clause (5), 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. 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.
(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 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
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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.
Sec. 74.
Minnesota Statutes 2008, section 469.154, subdivision 3, is amended to
read:
Subd. 3. Conditions; approval. No municipality or redevelopment agency
shall undertake any project authorized by sections 469.152 to 469.165, except a
project referred to in section 469.153, subdivision 2, paragraph (g) or (j),
unless its governing body finds that the project furthers the purposes stated
in section 469.152, nor until the commissioner has approved the project, on the
basis of preliminary information the commissioner requires, as tending to
further the purposes and policies of sections 469.152 to 469.165. The commissioner may not approve any
projects relating to health care facilities except as permitted under
subdivision 6. Approval shall not be
deemed to be an approval by the commissioner or the state of the feasibility of
the project or the terms of the revenue agreement to be executed or the bonds
to be issued therefor, and the commissioner shall state this in communicating
approval.
Sec. 75.
Minnesota Statutes 2008, section 473.599, subdivision 8, is amended to
read:
Subd. 8. Reimbursement to state. The commission shall compensate the state
for its contribution from the general fund under Minnesota Statutes 2008,
section 240A.08, plus accrued interest, after payment of basketball and hockey
arena debt service, the necessary and appropriate funding of debt reserve of
the basketball and hockey arena and all expenses of operation, administration,
and maintenance and the funding of a capital reserve for the repair, remodeling
and renovation of the basketball and hockey arena. Compensation paid to the state shall occur at
the same time that compensation is paid to the city of Minneapolis, as provided
in paragraph (n) of subdivision 4, on a basis proportionate to the amount of
forbearance of the entertainment tax or surcharge as provided in paragraph (n)
to that date, and the amount of general fund appropriations paid by the state
under Minnesota Statutes 2008, section 240A.08, to that date. No reimbursement will be paid under this
subdivision after (1) the aggregate amount of the appropriations granted under Minnesota
Statutes 2008, section 240A.08, to that time, plus accrued interest,
has been reimbursed under this subdivision, or (2) December 31, 2024, whichever
is earlier.
Sec. 76.
Minnesota Statutes 2008, section 490.133, is amended to read:
490.133 RETIREMENT;
TRANSITION PROVISIONS; TRANSFER TO COURT OF APPEALS.
(a) If a judge to whom or to whose survivors benefits would
be payable under Minnesota Statutes 2004, sections 490.101 to 490.12, is
elected or appointed to the Court of Appeals, that judge and the judge's
survivors continue to be eligible for benefits under those sections and not
under sections 490.121 to 490.132 490.126.
(b) In the case of a judge to whom paragraph (a) applies, the
service of the judge in the Court of Appeals must be added to the prior service
as district judge, probate judge, or judge of any other court of record in
determining eligibility and the compensation of a judge of the Court of Appeals
at the time of the judge's death, disability, or retirement is the
"compensation allotted to the office" for the purposes of calculating
benefit amounts.
(c) All other judges of the Court of Appeals and their
survivors are subject to the retirement and survivor's annuity provisions of
this chapter.
Sec. 77.
Minnesota Statutes 2008, section 507.071, subdivision 16, is amended to
read:
Subd. 16. Disclaimer by beneficiary. A grantee beneficiary's interest under a
transfer on death deed may be disclaimed as provided in section 501B.86
sections 524.2-1101 to 524.2-1116, or as otherwise provided by law.
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Sec. 78.
Minnesota Statutes 2008, section 515B.1-102, is amended to read:
515B.1-102
APPLICABILITY.
(a) Except as provided in this section, this chapter, and not
chapters 515 and 515A, applies to all common interest communities created
within this state on and after June 1, 1994.
(b) The applicability of this chapter to common interest
communities created prior to June 1, 1994, shall be as follows:
(1) This chapter shall apply to condominiums created under
chapter 515A with respect to events and circumstances occurring on and after
June 1, 1994; provided (i) that this chapter shall not invalidate the declarations,
bylaws or condominium plats of those condominiums, and (ii) that chapter 515A,
and not this chapter, shall govern all rights and obligations of a declarant of
a condominium created under chapter 515A, and the rights and claims of unit
owners against that declarant.
(2) The following sections in this chapter apply to
condominiums created under chapter 515:
515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and
Taxation); 515B.1-106 (Applicability of Local Ordinances, Regulations, and
Building Codes); 515B.1-107 (Eminent Domain); 515B.1-108 (Supplemental General
Principles of Law Applicable); 515B.1-109 (Construction Against Implicit
Repeal); 515B.1-112 (Unconscionable Agreement or Term of Contract); 515B.1-113
(Obligation of Good Faith); 515B.1-114 (Remedies to be Liberally Administered);
515B.1-115 (Notice); 515B.1-116 (Recording); 515B.2-103 (Construction and
Validity of Declaration and Bylaws); 515B.2-104 (Description of Units);
515B.2-108(d) (Allocation of Interests); 515B.2-109(c) (Common Elements and
Limited Common Elements); 515B.2-112 (Subdivision or Conversion of Units);
515B.2-113 (Alteration of Units); 515B.2-114 (Relocation of Boundaries Between
Adjoining Units); 515B.2-115 (Minor Variations in Boundaries); 515B.2-118 (Amendment
of Declaration); 515B.2-119 (Termination of Common Interest Community);
515B.3-102 (Powers of Unit Owners' Association); 515B.3-103(a), (b), and (g)
(Board; Directors and Officers; Period of Declarant Control); 515B.3-107
(Upkeep of Common Interest Community); 515B.3-108 (Meetings); 515B.3-109
(Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract
Liability); 515B.3-112 (Conveyance or Encumbrance of Common Elements);
515B.3-113 (Insurance); 515B.3-114 (Reserves; Surplus Funds); 515B.3-115(c),
(e), (f), (g), (h), and (i) (Assessments for Common Expenses); 515B.3-116 (Lien
for Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association Records);
515B.3-119 (Association as Trustee); 515B.3-121 (Accounting Controls);
515B.4-107 (Resale of Units); 515B.4-108 (Purchaser's Right to Cancel Resale);
and 515B.4-116 (Rights of Action; Attorney's Fees). Section 515B.1-103 (Definitions) shall apply
to the extent necessary in construing any of the sections referenced in this
section. Sections 515B.1-105,
515B.1-106, 515B.1-107, 515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118,
515B.3-102, 515B.3-110, 515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117,
515B.3-118, 515B.3-121, 515B.4-107, 515B.4-108, and 515B.4-116 apply only with
respect to events and circumstances occurring on and after June 1, 1994. All other sections referenced in this section
apply only with respect to events and circumstances occurring after July 31,
1999. A section referenced in this
section does not invalidate the declarations, bylaws or condominium plats of
condominiums created before August 1, 1999.
But all sections referenced in this section prevail over the
declarations, bylaws, CIC plats, rules and regulations under them, of condominiums
created before August 1, 1999, except to the extent that this chapter defers to
the declarations, bylaws, CIC plats, or rules and regulations issued under
them.
(3) This chapter shall not apply to cooperatives and planned
communities created prior to June 1, 1994; except by election pursuant to
subsection (d), and except that sections 515B.1-116, subsections (a), (c), (d),
and (e), (f), and (h), 515B.4-107, and 515B.4-108, apply to all
planned communities and cooperatives regardless of when they are created, unless
they are exempt under subsection (e).
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(c) This chapter shall not
invalidate any amendment to the declaration, bylaws or condominium plat of any
condominium created under chapter 515 or 515A if the amendment was recorded
before June 1, 1994. Any amendment
recorded on or after June 1, 1994, shall be adopted in conformity with the
procedures and requirements specified by those instruments and by this chapter. If the amendment grants to any person any
rights, powers or privileges permitted by this chapter, all correlative
obligations, liabilities and restrictions contained in this chapter shall also
apply to that person.
(d) Any condominium created
under chapter 515, any planned community or cooperative which would be exempt
from this chapter under subsection (e), or any planned community or cooperative
created prior to June 1, 1994, may elect to be subject to this
chapter, as follows:
(1) The election shall be
accomplished by recording a declaration or amended declaration, and a new or
amended CIC plat where required, and by approving bylaws or amended bylaws,
which conform to the requirements of this chapter, and which, in the case of
amendments, are adopted in conformity with the procedures and requirements
specified by the existing declaration and bylaws of the common interest
community, and by any applicable statutes.
(2) In a condominium, the
preexisting condominium plat shall be the CIC plat and an amended CIC plat
shall be required only if the amended declaration or bylaws contain provisions
inconsistent with the preexisting condominium plat. The condominium's CIC number shall be the
apartment ownership number or condominium number originally assigned to it by
the recording officer. In a cooperative
in which the unit owners' interests are characterized as real estate, a CIC
plat shall be required. In a planned
community, the preexisting plat recorded pursuant to chapter 505, 508, or 508A,
or the part of the plat upon which the common interest community is located,
shall be the CIC plat.
(3) The amendment shall
comply with section 515B.2-118(a)(3).
(4) Except as permitted by
paragraph (3), no declarant, affiliate of declarant, association, master
association nor unit owner may acquire, increase, waive, reduce or revoke any
previously existing warranty rights or causes of action that one of said
persons has against any other of said persons by reason of exercising the right
of election under this subsection.
(5) A common interest
community which elects to be subject to this chapter may, as a part of the
election process, change its form of ownership by complying with section
515B.2-123.
(e) Except as otherwise
provided in this subsection, this chapter shall not apply, except by election
pursuant to subsection (d), to the following:
(1) a planned community
which consists of two units, which utilizes a CIC plat complying with section
515B.2‑110(d)(1) and (2), which is not subject to any rights to subdivide
or convert units or to add additional real estate, and which is not subject to
a master association;
(2) a common interest
community where the units consist solely of separate parcels of real estate
designed or utilized for detached single family dwellings or agricultural
purposes, and where the association or a master association has no obligation
to maintain any building containing a dwelling or any agricultural building;
(3) a cooperative where, at
the time of creation of the cooperative, the unit owners' interests in the
dwellings as described in the declaration consist solely of proprietary leases
having an unexpired term of fewer than 20 years, including renewal options;
(4) planned communities
utilizing a CIC plat complying with section 515B.2-110(d)(1) and (2) and
cooperatives, which are limited by the declaration to nonresidential use; or
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11980
(5) real estate subject only to an instrument or instruments
filed primarily for the purpose of creating or modifying rights with respect to
access, utilities, parking, ditches, drainage, or irrigation.
(f) Section 515B.4-101(e) applies to any platted lot or other
parcel of real estate that is subject to a master declaration and is not
subject to or is exempt from this chapter.
(g) Section 515B.1-106 shall apply to all common interest
communities.
Sec. 79.
Minnesota Statutes 2009 Supplement, section 524.5-701, is amended to
read:
524.5-701 DEFINITIONS;
SIGNIFICANT CONNECTION FACTORS.
(a) In sections 524.5-701 to 524.5-709:
(1) "emergency" means a circumstance that likely
will result in substantial harm to a respondent's health, safety, or welfare,
and for which the appointment of a guardian is necessary because no other
person has authority and is willing to act on the respondent's behalf;
(2) "home state" means the state in which the
respondent was physically present, including any period of temporary absence,
for at least six consecutive months immediately before the filing of a petition
for a protective order or the appointment of a guardian; or if none, the state
in which the respondent was physically present, including any period of
temporary absence, for at least six consecutive months ending within the six
months prior to the filing of the petition; and
(3) "significant-connection state" means a state,
other than the home state, with which a respondent has a significant connection
other than mere physical presence and in which substantial evidence concerning
the respondent is available.
(b) In determining under sections 534.5-703 524.5-703
and 524.5-801, paragraph (e), whether a respondent has a significant connection
with a particular state, the court shall consider:
(1) the location of the respondent's family and other persons
required to be notified of the guardianship or protective proceeding;
(2) the length of time the respondent at any time was
physically present in the state and the duration of any absence;
(3) the location of the respondent's property; and
(4) the extent to which the respondent has ties to the state
such as voting registration, state or local tax return filing, vehicle
registration, driver's license, social relationship, and receipt of services.
Sec. 80.
Minnesota Statutes 2009 Supplement, section 571.914, subdivision 4, is
amended to read:
Subd. 4. Duties of financial institution if
objection is made to exemption claim. Upon
receipt of a Notice of Objection and Notice of Hearing from the creditor within
the specified seven-day six-day period, the financial institution
shall retain the funds claimed to be exempt.
The financial institution shall retain the funds claimed to be exempt
until otherwise ordered by the court, upon mutual agreement of the parties, or
until the garnishment lapses pursuant to section 571.79.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11981
Sec. 81. Minnesota Statutes 2009 Supplement, section
626.557, subdivision 20, is amended to read:
Subd. 20. Cause
of action for financial exploitation; damages.
(a) A vulnerable adult who is a victim of financial exploitation as
defined in section 626.5572, subdivision 9, has a cause of action against a
person who committed the financial exploitation. In an action under this subdivision, the
vulnerable adult is entitled to recover damages equal to three times the amount
of compensatory damages or $10,000, whichever is greater.
(b) In addition to damages
under paragraph (a), the vulnerable adult is entitled to recover reasonable
attorney fees and costs, including reasonable fees for the services of a
guardian or conservator or guardian ad litem incurred in connection with a
claim under this subdivision.
(c) An action may be brought
under this subdivision regardless of whether there has been a report or final
disposition under this section or a criminal complaint or conviction related to
the financial exploitation.
Sec. 82. Laws 2009, chapter 78, article 8, section 22,
subdivision 3, is amended to read:
Subd. 3. Definitions. For purposes of this section:
(1) "applicant"
means a local government unit;
(2) "commissioner"
means the commissioner of the Department of Employment and Economic
Development;
(3) "eligible
transportation project entirely or partially funded by state or federal
funds" means a project that will affect one or more small businesses as a
result of transportation work because the work is anticipated to impair road
access for a minimum period of one month;
(4) "local government
unit" means a county, statutory or home rule charter city, town, special
district, or other political subdivision;
(5) "project" has
the meaning given it in Minnesota Statutes, section 161.2415 160.165;
and
(6) "small
business" means a business that employs ten or fewer employees and is
located in an area that is adjacent to an eligible project.
Sec. 83. Laws 2009, chapter 79, article 10, section
48, is amended to read:
Sec. 48. MEDICAL
RESPONSE UNIT REIMBURSEMENT PILOT PROGRAM.
(a) The Department of Public
Safety or its contract designee shall collaborate with the Minnesota Ambulance Association
to create the parameters of the medical response unit reimbursement pilot
program, including determining criteria for baseline data reporting.
(b) In conducting the pilot
program, the Department of Public Safety must consult with the Minnesota
Ambulance Association, Minnesota Fire Chiefs Association, Emergency Services
Regulatory Board, and the Minnesota Council of Health Plans to:
(1) identify no more than
five medical response units registered as medical response units with the
Minnesota Emergency Medical Services Regulatory Board according to Minnesota
Statutes, chapter 144E, to participate in the program;
(2) outline and develop
criteria for reimbursement;
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11982
(3) determine the amount of
reimbursement for each unit response; and
(4) collect program data to
be analyzed for a final report.
(c) Further criteria for the
medical response unit reimbursement pilot program shall include:
(1) the pilot program will
expire on December 31, 2010, or when the appropriation is extended expended,
whichever occurs first;
(2) a report shall be made
to the legislature by March 1, 2011, by the Department of Public Safety or its
contractor as to the effectiveness and value of this reimbursement pilot
program to the emergency medical services delivery system, any actual or
potential savings to the health care system, and impact on patient outcomes;
(3) participating medical
response units must adhere to the requirements of this pilot program outlined
in an agreement between the Department of Public Safety and the medical
response unit, including but not limited to, requirements relating to data
collection, response criteria, and patient outcomes and disposition;
(4) individual entities
licensed to provide ambulance care under Minnesota Statutes, chapter 144E, are
not eligible for participation in this pilot program;
(5) if a participating medical
response unit withdraws from the pilot program, the Department of Public Safety
in consultation with the Minnesota Ambulance Association may choose another
pilot site if funding is available;
(6) medical response units
must coordinate their operations under this pilot project with the ambulance
service or services licensed to provide care in their first response geographic
areas;
(7) licensed ambulance
services that participate with the medical response unit in the pilot program
assume no financial or legal liability for the actions of the participating
medical response unit; and
(8) the Department of Public
Safety and its pilot program partners have no ongoing responsibility to
reimburse medical response units beyond the parameters of the pilot program.
Sec. 84. Laws 2009, chapter 88, article 5, section 17,
is amended to read:
Sec. 17. SEAWAY
PORT AUTHORITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL RULES.
(a) If the Seaway Port
Authority of Duluth adopts a tax increment financing plan and the governing
body of the city of Duluth approves the plan for the tax increment financing
district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
010-2730-00100; 010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-01250;
010-2730-01340; 010-2730-01350; 010-2730-01490; 010-2730-01500; 010-2730-01510;
010-2730-01520; 010-2730-01530; 010-2730-01540; 010-2730-01550; 010-2730-01560;
010-2730-01570; 010-2730-01580; 010-2730-01590; 010-2730-1300; 010-2730-00300;
010-2746-01250; 010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440;
010-2746-1380; 010-2746-01490; 010-2746-01500; 010-2746-01510;
010-2746-01520; 010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560;
010-2746-01570; 010-2746-01580; 010-2746-01590; 010-3300-4560;
010-3300-4565; 010-3300-04570; 010-3300-04580; 010-3300-04640; 010-3300-04645;
and 010-3300-04650, the five-year rule under Minnesota Statutes, section
469.1763, subdivision 3, that activities must be undertaken within a five-year
period from the date of certification of the tax increment financing district,
must be considered to be met if the activities are undertaken within five years
after the date all qualifying parcels are delisted from the Federal Superfund
list.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11983
(b) The requirements of Minnesota
Statutes, section 469.1763, subdivision 4, beginning in the sixth year
following certification of the district requirement, will begin in the sixth
year following the date all qualifying parcels are delisted from the Federal
Superfund list.
(c) The action required
under Minnesota Statutes, section 469.176, subdivision 6, are satisfied
if the action is commenced within four years after the date all qualifying
parcels are delisted from the Federal Superfund list and evidence of the action
required is submitted to the county auditor by February 1 of the fifth year
following the year in which all qualifying parcels are delisted from the
Federal Superfund list.
(d) For purposes of this
section, "qualifying parcels" means United States Steel parcels listed
in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of
the USS Site (USEPA OU 02) that are included in the tax increment financing
district.
(e) In addition to the
reporting requirements of Minnesota Statutes, section 469.175, subdivision 5,
the Seaway Port Authority of Duluth shall report the status of all parcels
listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report must show the parcel
numbers, the listed or delisted status, and if delisted, the delisting date.
EFFECTIVE DATE. This section is effective upon approval by the
governing body of the city of Duluth and compliance with Minnesota Statutes,
section 645.021, subdivision 3.
Sec. 85. SUPERSEDING
ACTS.
Any amendments or repeals
enacted in the 2010 session of the legislature to sections also amended or
repealed in this act supersede the amendments or repeals in this act,
regardless of order of enactment.
Sec. 86. REVISOR'S
INSTRUCTION.
In each of Minnesota Rules
referred to in column A, the revisor of statutes shall delete the reference in
column B and insert the reference in column C.
A B C
part 9503.0170, subpart 1 parts 9543.1000 to 9543.1060 Minnesota Statutes, chapter
245A
part 9520.0520, subpart 1 parts 9543.1000 to 9543.1060 Minnesota Statutes, chapter
245A
part 9525.0900, subpart 17 parts 9525.0500 to 9525.0660, Minnesota Statutes, chapter
245B
Semi-independent
Living
Services
Licensure
part 9525.0930, subpart 1 parts 9525.0500 to 9525.0660 Minnesota Statutes, chapter
245B
(Semi-independent
Living
Services
Licensure)
part 9525.0935, subpart 1, parts 9525.0215 to 9525.0355 Minnesota Statutes, chapter
245B
item B (Residential
Programs Services
for
Persons with Developmental
Disabilities)
part 9525.1580, subpart 2 parts 9525.1500 to 9525.1690 Minnesota Statutes, chapter
245B
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11984
part 9525.1800, subpart 8a part 9525.1500, subpart 36 Minnesota Statutes, section 245B.02,
subdivision
6
part 9525.1860, subpart 6, parts 9525.2000 to 9525.2140 Minnesota Statutes, chapter
245B
items C and D
part 9525.1860, subpart 6, parts 9525.0215 to 9525.0355 Minnesota Statutes, chapter
245B
items D and E
part 9525.1860, subpart 7, parts 9525.0215 to 9525.0355 Minnesota Statutes, chapter
245B
item C and part
9525.0235, subpart 13
part 9555.9620 parts 9543.1000 to 9543.1060 Minnesota Statutes, chapter
245A
part 9570.3400 parts 9543.1000 to 9543.1060 Minnesota Statutes, chapter
245A
Sec. 87. REPEALER.
Subdivision 1. Obsolete
cross-reference. Minnesota
Statutes 2008, section 13.6435, subdivision 9, is repealed.
Subd. 2. Obsolete
cross-reference. Minnesota
Statutes 2008, section 15.38, subdivision 5, is repealed.
Subd. 3. Obsolete
subdivision. Minnesota
Statutes 2008, section 256B.041, subdivision 5, is repealed.
Subd. 4. Obsolete
subdivision. Minnesota
Statutes 2008, section 256D.03, subdivision 5, is repealed.
Subd. 5. Obsolete
section. Minnesota Statutes
2008, section 168.098, is repealed.
Subd. 6. Obsolete
law. Laws 2005, First Special
Session chapter 4, article 8, section 87, is repealed.
Subd. 7. Obsolete
amendment. Laws 2006, chapter
277, article 1, sections 1; and 3, are repealed.
Subd. 8. Statutory
conflict. Laws 2008, chapter
287, article 1, section 104, is repealed.
Subd. 9. Statutory
conflict. Laws 2008, chapter
300, section 6, is repealed.
Subd. 10. Statutory
conflict. Laws 2009, chapter
78, article 4, section 41, is repealed.
Subd. 11. Statutory
conflict. Laws 2009, chapter
88, article 6, sections 14; 15; and 16, are repealed.
Subd. 12. Obsolete
amendment. Laws 2009, chapter
169, article 10, section 32, is repealed.
Subd. 13. Statutory
authority repealed. Minnesota
Rules, parts 9525.0750; 9525.0760; 9525.0770; 9525.0780; 9525.0790; 9525.0800;
9525.0810; 9525.0820; and 9525.0830, are repealed."
Delete the title and insert:
"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,
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11985
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; 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 motion prevailed and the amendment was
adopted.
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 third time, as
amended, and placed upon its final passage.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11986
The question was taken on the passage of
the bill and the roll was called. There
were 125 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
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
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
The bill was passed, as amended, and its
title agreed to.
Reinert was excused for the remainder of
today's session.
S. F. No. 3046 was reported
to the House.
Welti moved to amend S. F. No. 3046,
the first engrossment, as follows:
Delete everything after the enacting
clause and insert the following language of H. F. No. 3429, the
first engrossment:
"Section 1.
Minnesota Statutes 2008, section 216B.241, is amended by adding a subdivision
to read:
Subd. 5c.
Large solar electric
generating plant. (a) For the
purpose of this subdivision:
(1) "project" means a solar electric generation
project consisting of arrays of solar photovoltaic cells with a capacity of up
to five megawatts located on the site of a closed landfill owned by the
Minnesota Pollution Control Agency; and
(2) "cooperative electric association" means a
generation and transmission cooperative electric association that has a member
distribution cooperative association to which it provides wholesale electric
service in whose service territory a project is located.
(b) A cooperative electric association may include in its
conservation plan purchases of electric energy from a project. The cost-effectiveness of project purchases
may be determined by a different standard than for other energy conservation
improvements under this section if the commissioner determines that doing so is
in the public interest
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11987
in order to encourage the use of solar energy. The kilowatt hours of solar energy purchased
from a project may be counted toward the energy-savings goal required under
subdivision 1c. Expenditures made by a
cooperative electric association for the purchase of energy from a project may
not be used to meet the revenue expenditure requirements of subdivisions 1a and
1b."
The motion prevailed and the amendment was
adopted.
Kalin moved
to amend S. F. No. 3046, the first engrossment, as amended, as
follows:
Page 1,
line 16, after "may" insert "not"
Page 1,
after line 24, insert:
"Sec. 2. APPROPRIATION.
(a) The
utility subject to Minnesota Statutes, section 116C.779, shall transfer
$2,000,000 from the account established in that section to the commissioner of
commerce. The commissioner of commerce
shall deposit the funds in the special revenue fund.
(b)
$2,000,000 is appropriated from the special revenue fund to the commissioner of
commerce in fiscal year 2010 for a grant to a cooperative electric association
for the purposes of making the project purchases described in section 1."
Renumber
the sections in sequence and correct the internal references
Amend the
title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Kalin amendment
and the roll was called. There were 39
yeas and 79 nays as follows:
Those who voted in the affirmative were:
Benson
Bly
Brynaert
Bunn
Davnie
Falk
Fritz
Gardner
Greiling
Hansen
Hausman
Hilty
Hornstein
Jackson
Johnson
Kahn
Kalin
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Masin
Murphy, E.
Murphy, M.
Norton
Paymar
Persell
Peterson
Rosenthal
Sailer
Simon
Solberg
Sterner
Thao
Tillberry
Wagenius
Winkler
Those who voted in the negative were:
Abeler
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Bigham
Brod
Brown
Buesgens
Carlson
Champion
Cornish
Dean
Demmer
Dettmer
Dill
Dittrich
Journal of the
House - 99th Day - Friday, May 7, 2010 - Top of Page 11988
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Faust
Garofalo
Gottwalt
Gunther
Hamilton
Haws
Hilstrom
Holberg
Hoppe
Hortman
Huntley
Juhnke
Kath
Kelly
Kiffmeyer
Kohls
Lanning
Lieder
Loeffler
Loon
Mack
Magnus
Mahoney
Marquart
McFarlane
McNamara
Morgan
Morrow
Murdock
Nelson
Newton
Nornes
Obermueller
Olin
Otremba
Pelowski
Peppin
Poppe
Ruud
Sanders
Scalze
Scott
Seifert
Severson
Shimanski
Slawik
Slocum
Smith
Swails
Torkelson
Urdahl
Ward
Welti
Westrom
Zellers
The motion did not prevail and the
amendment was not adopted.
S. F. No. 3046, A bill for an
act relating to energy; providing for large solar energy electric generation
demonstration conservation improvement project; amending Minnesota Statutes
2008, section 216B.241, by adding a subdivision.
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 104 yeas and 17 nays as follows:
Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Atkins
Benson
Bigham
Brown
Brynaert
Carlson
Champion
Cornish
Davnie
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Gunther
Hamilton
Haws
Hilstrom
Hilty
Hoppe
Hornstein
Hortman
Hosch
Huntley
Jackson
Johnson
Juhnke
Kahn
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
Marquart
Masin
McFarlane
McNamara
Morrow
Mullery
Murdock
Murphy, E.
Nelson
Newton
Nornes
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Rosenthal
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Tillberry
Torkelson
Urdahl
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
Those who voted in the negative were:
Anzelc
Bly
Brod
Buesgens
Bunn
Dean
Greiling
Hansen
Hausman
Holberg
Kalin
Lesch
Liebling
Morgan
Norton
Peppin
Wagenius
The bill was passed, as amended, and its title
agreed to.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11989
Speaker pro tempore Pelowski called
Hortman to the Chair.
TAKEN FROM THE TABLE
Murphy, E., moved that
S. F. No. 2700, as amended, which was laid on the table on
Monday, April 26, 2010 be now taken from the table. The motion prevailed.
S. F. No. 2700, as amended,
was reported to the House.
Murphy, E.,
moved to amend S. F. No. 2700, the unofficial engrossment, as
amended, as follows:
Page 3,
after line 18, insert:
"Sec. 6. [62Q.751]
COLLECTING DEDUCTIBLES AND COINSURANCE.
A health
plan company shall not prohibit providers from collecting deductibles and
coinsurance from patients at or prior to the time of service. Providers may not withhold a service to a
health plan company enrollee based on a patient's failure to pay a deductible
or coinsurance at or prior to the time of service. Overpayments by patients to providers must be
returned to the patient by the provider by check or electronic payment within
30 days of the date in which the claim adjudication is received by the
provider."
Renumber the
sections in sequence and correct the internal references
Amend the
title accordingly
The motion prevailed and the amendment was
adopted.
S. F. No. 2700, A bill for
an act relating to health; regulating participating provider agreements between
health plan companies and health care providers; amending Minnesota Statutes
2008, sections 62Q.735, by adding subdivisions; 62Q.75, subdivision 3, by
adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 62Q.
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 124 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11990
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
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
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
The bill was passed, as amended, and its
title agreed to.
Morrow moved that the remaining bills on
the Calendar for the Day be continued.
The motion prevailed.
There being no objection, the order of
business reverted to Messages from the Senate.
MESSAGES FROM THE SENATE
The following messages were received from
the Senate:
Madam Speaker:
I hereby announce
that the Senate accedes to the request of the House for the appointment of a Conference
Committee on the amendments adopted by the Senate to the following House File:
H. F. No. 3106, A bill for an act
relating to public safety; amending first-degree driving while impaired crime
to include prior felony convictions from other states; modifying implied
consent, driving while impaired, and ignition interlock provisions; amending
Minnesota Statutes 2008, sections 169A.24, subdivision 1; 169A.52, subdivisions
3, 4; 169A.54, subdivisions 2, 5; 169A.55, by adding a subdivision; 169A.60, subdivision
1; 171.09; 171.30, subdivisions 1, 2a, 4; 171.306, as amended; 609.131,
subdivision 2; Minnesota Statutes 2009 Supplement, sections 169A.275,
subdivision 7; 169A.54, subdivision 1; repealing Minnesota Statutes 2008,
sections 169A.54, subdivision 11; 169A.55, subdivision 1; 171.30, subdivision
2c; 171.305, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11.
The Senate has appointed as such committee:
Senators Murphy, Moua, Rosen, Doll and Carlson.
Said House File is herewith returned to the House.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
Madam
Speaker:
I hereby announce that the Senate refuses
to concur in the House amendments to the following Senate File:
S. F. No. 2971, A bill for an act relating to energy;
making technical changes and modifying provisions related to utility report
filings, hydrogen energy projects, weatherization programs, high-voltage
transmission lines, public utility commission assessments, and utility metering
for supportive housing; removing obsolete and redundant
Journal of the House - 99th Day - Friday, May 7, 2010 - Top of
Page 11991
language; authorizing individuals and entities to take certain
easements in agricultural land; providing for certain reporting requirements;
providing for wind and solar easements; amending Minnesota Statutes 2008,
sections 16E.15, subdivision 2; 117.225; 216B.16, by adding a subdivision;
216B.241, subdivision 2; 216B.812, subdivision 2; 216C.264; 216E.03,
subdivision 7; 216E.18, subdivision 3; 326B.106, subdivision 12; 500.221,
subdivisions 2, 4; Minnesota Statutes 2009 Supplement, section 117.189; Laws
2008, chapter 296, article 1, section 25; repealing Minnesota Statutes 2008,
sections 216C.19, subdivisions 2, 3, 13, 14, 15, 16, 18, 19, 20; 216C.262;
Minnesota Statutes 2009 Supplement, section 216C.19, subdivision 17.
The Senate respectfully requests that a Conference Committee
be appointed thereon. The Senate has
appointed as such committee:
Senators Prettner Solon, Dibble and Koch.
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
Hilty 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. 2971. 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. 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 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
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11992
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 Senate respectfully requests that a Conference Committee
be appointed thereon. The Senate has
appointed as such committee:
Senators Anderson, Saxhaug, Chaudhary, Frederickson and
Rummel.
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
Wagenius moved that the House accede to the
request of the Senate and that the Speaker appoint a Conference Committee of 5
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. 3275. 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. 3081, A bill for an act relating to
energy; modifying community-based energy development program; amending
Minnesota Statutes 2008, section 216B.1612, subdivisions 3, 5, 7, by adding a
subdivision; Minnesota Statutes 2009 Supplement, section 216B.1612, subdivision
2.
The Senate respectfully requests that a Conference Committee
be appointed thereon. The Senate has
appointed as such committee:
Senators Prettner Solon, Rosen and Skogen.
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
Welti 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. 3081. The motion prevailed.
Journal of the House - 99th Day - Friday, May 7, 2010 - Top
of Page 11993
Madam
Speaker:
I hereby announce that the Senate refuses
to concur in the House amendments to the following Senate File:
S. F. No. 1537, A bill for an act relating to
energy; requiring a certificate of need for certain transmission lines.
The Senate respectfully requests that a Conference Committee
be appointed thereon. The Senate has
appointed as such committee:
Senators Berglin, Anderson and Dibble.
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
Murphy, E., 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. 1537. The motion prevailed.
ANNOUNCEMENTS
BY THE SPEAKER
The Speaker announced the appointment of
the following members of the House to a Conference Committee on
S. F. No. 1537:
Clark, Hilty and Howes.
The Speaker announced the appointment of the
following members of the House to a Conference Committee on
S. F. No. 2971:
Hilty, Knuth and Gunther.
The Speaker announced the appointment of
the following members of the House to a Conference Committee on
S. F. No. 3081:
Welti, Hilty and Gunther.
The Speaker announced the appointment of
the following members of the House to a Conference Committee on
S. F. No. 3275:
Murphy, M.; Wagenius; Morgan; Hansen and
Davids.
MOTIONS AND RESOLUTIONS
Masin moved that her name be stricken as
an author on H. F. No. 840.
The motion prevailed.
Marquart moved that the name of Simon be
added as an author on H. F. No. 2227. The motion prevailed.
Journal of the House - 99th
Day - Friday, May 7, 2010 - Top of Page 11994
Otremba moved that the name of Atkins be added as chief author
on H. F. No. 3784. The
motion prevailed.
Jackson moved that the name of Kiffmeyer be added as an author
on H. F. No. 3786. The
motion prevailed.
Drazkowski moved that the name of Nornes be added as an author
on H. F. No. 3830. The
motion prevailed.
Eken moved that S. F. No. 3379 be recalled from
the Committee on Finance and be re-referred to the Committee on Ways and
Means. The motion prevailed.
ADJOURNMENT
Morrow moved that when the House adjourns today it adjourn
until 9:00 a.m., Monday, May 10, 2010.
The motion prevailed.
Morrow moved that the House adjourn. The motion prevailed, and Speaker pro tempore
Hortman declared the House stands adjourned until 9:00 a.m., Monday, May 10,
2010.
Albin
A. Mathiowetz, Chief Clerk, House of
Representatives