Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5447
STATE OF MINNESOTA
EIGHTY-SIXTH SESSION - 2009
_____________________
FIFTY-SECOND DAY
Saint Paul, Minnesota, Tuesday, May 12, 2009
����� The House of Representatives convened at
9:30 a.m. and was called to order by Al Juhnke, Speaker pro tempore.
����� Prayer was offered by the Reverend Ilene
Blanche, Rivers of Living Waters Christian Center, Lake City, Minnesota.
����� The members of the House gave the pledge
of allegiance to the flag of the United States of America.
����� The roll was called and the following
members were present:
Abeler
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Cornish
Davids
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� A quorum was present.
����� The Speaker assumed the chair.
����� Solberg was excused.
����� Benson was excused until 11:45 a.m.� Clark was excused until 1:40 p.m.
����� The Chief Clerk proceeded to read the
Journal of the preceding day.� Peppin
moved that further reading of the Journal be dispensed with and that the
Journal be approved as corrected by the Chief Clerk.� The motion prevailed.
Journal of the House - 52nd Day - Tuesday, May 12, 2009 - Top
of Page 5448
REPORTS OF CHIEF CLERK
����� S. F. No. 80
and H. F. No. 1206, which had been referred to the Chief Clerk
for comparison, were examined and found to be identical with certain
exceptions.
SUSPENSION OF RULES
����� Simon moved that
the rules be so far suspended that S. F. No. 80 be substituted
for H. F. No. 1206 and that the House File be indefinitely
postponed.� The motion prevailed.
����� S. F. No. 203
and H. F. No. 120, which had been referred to the Chief Clerk
for comparison, were examined and found to be identical with certain
exceptions.
SUSPENSION OF RULES
����� Hosch moved that
the rules be so far suspended that S. F. No. 203 be substituted
for H. F. No. 120 and that the House File be indefinitely
postponed.� The motion prevailed.
����� S. F. No. 548
and H. F. No. 695, which had been referred to the Chief Clerk
for comparison, were examined and found to be identical with certain
exceptions.
SUSPENSION OF RULES
����� Hilstrom moved that
the rules be so far suspended that S. F. No. 548 be substituted
for H. F. No. 695 and that the House File be indefinitely
postponed.� The motion prevailed.
����� S. F. No. 722
and H. F. No. 954, which had been referred to the Chief Clerk
for comparison, were examined and found to be identical with certain
exceptions.
SUSPENSION OF RULES
����� Lesch moved that
the rules be so far suspended that S. F. No. 722 be substituted
for H. F. No. 954 and that the House File be indefinitely postponed.� The motion prevailed.
����� S. F. No. 848
and H. F. No. 729, which had been referred to the Chief Clerk
for comparison, were examined and found to be identical with certain
exceptions.
SUSPENSION OF RULES
����� Poppe moved that
the rules be so far suspended that S. F. No. 848 be substituted
for H. F. No. 729 and that the House File be indefinitely
postponed.� The motion prevailed.
����� S. F. No. 1436
and H. F. No. 1639, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
SUSPENSION OF RULES
����� Morrow moved that
the rules be so far suspended that S. F. No. 1436 be substituted
for H. F. No. 1639 and that the House File be indefinitely
postponed.� The motion prevailed.
Journal of the House - 52nd Day - Tuesday, May 12, 2009 - Top
of Page 5449
����� S. F. No. 1890
and H. F. No. 1322, which had been referred to the Chief Clerk
for comparison, were examined and found to be identical with certain
exceptions.
SUSPENSION OF RULES
����� Thissen moved that
the rules be so far suspended that S. F. No. 1890 be substituted
for H. F. No. 1322 and that the House File be indefinitely
postponed.� The motion prevailed.
SECOND READING OF SENATE BILLS
����� S. F. Nos. 80, 203, 548, 722, 848, 1436
and 1890 were read for the second time.
����� Sertich moved that the House recess
subject to the call of the Chair.� The
motion prevailed.
RECESS
RECONVENED
����� The House reconvened and was called to
order by Speaker pro tempore Hortman.
����� There being no objection, the order of
business reverted to Reports of Standing Committees and Divisions.
REPORTS OF STANDING
COMMITTEES AND DIVISIONS
Carlson from the Committee on Finance
to which was referred:
H. F. No. 354, A bill for an act
relating to real property; providing for mediation prior to commencement of
mortgage foreclosure proceedings on homestead property; creating a homestead-lender
mediation account; amending Minnesota Statutes 2008, sections 357.18,
subdivision 1; 508.82, subdivision 1; 508A.82, subdivision 1; 580.021; 580.022,
subdivision 1; 580.23, by adding a subdivision; 582.30, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 583.
Reported the same back with the
following amendments:
Page 9, line 12, delete everything
after "REQUIRED" and insert a period
Page 9, delete line 13
Page 9, delete subdivision 3 and
insert:
"Subd. 3.� Creditor's
bad faith.� If the mediator
finds that the creditor has not participated in the mediation in good faith,
and the creditor continues with the foreclosure proceeding, then the debtor
shall be a allowed a six-month redemption period."
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5450
Page 10, delete subdivision 4 and
insert:
"Subd. 4.� Debtor's
lack of good faith.� If the
mediator finds that the debtor has not participated in the mediation in good
faith, and the creditor continues with the foreclosure proceeding, then the
debtor shall execute a deed in lieu of foreclosure within 90 days of the filing
of the mediator's affidavit containing the finding of bad faith."
Page 10, delete subdivision 5
Page 12, line 26, delete "December
31, 2014" and insert "July 1, 2012"
Page 12, line 27, delete "$50"
and insert "$49"
Page 12, line 29, delete "$4"
and insert "$3"
Page 14, line 11, delete "December
31, 2014" and insert "July 1, 2012"
Page 14, line 12, delete "$50"
and insert "$49"
Page 14, line 17, delete "$4"
and insert "$3"
Page 14, line 26, delete "December
31, 2014" and insert "July 1, 2012"
Page 14, line 28, delete "$50"
and insert "$49"
Page 14, line 33, delete "$4"
and insert "$3"
Page 15, line 6, delete "December
31, 2014" and insert "July 1, 2012" and delete "$50"
and insert "$49"
Page 15, line 13, delete "$4"
and insert "$3"
Page 18, line 3, delete "December
31, 2014" and insert "July 1, 2012" and delete "$50"
and insert "$49"
Page 18, line 9, delete "$4"
and insert "$3"
Page 18, line 18, delete "December
31, 2014" and insert "July 1, 2012"
Page 18, line 20, delete "$50"
and insert "$49"
Page 18, line 25, delete "$4"
and insert "$3"
Page 18, line 35, delete "December
31, 2014" and insert "July 1, 2012" and delete "$50"
and insert "$49"
Page 19, line 7, delete "$4"
and insert "$3"
Page 21, line 11, delete "a
special revenue" and insert "an" and delete "general"
and insert "special revenue"
Amend the title as follows:
Page 1, line 4, after the semicolon,
insert "appropriating money;"
With the recommendation that when so
amended the bill pass and be re-referred to the Committee on Ways and Means.
����� The
report was adopted.
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5451
Carlson from the Committee on Finance to which was
referred:
H. F. No. 723, A bill for an act relating to
retirement; various retirement plans; making various statutory changes needed
to accommodate the dissolution of the Minnesota Post Retirement Investment
Fund; redefining the value of pension plan assets for actuarial reporting
purposes; revising various disability benefit provisions of the general state
employees retirement plan, the correctional state employees retirement plan,
and the State Patrol retirement plan; making various administrative provision
changes; establishing a voluntary statewide lump-sum volunteer firefighter
retirement plan administered by the Public Employees Retirement Association;
revising various volunteer firefighters' relief association provisions;
correcting 2008 drafting errors related to the Minneapolis Employees Retirement
Fund and other drafting errors; granting special retirement benefit authority
in certain cases; revising the special transportation pilots retirement plan of
the Minnesota State Retirement System; expanding the membership of the state
correctional employees retirement plan; extending the amortization target date
for the Fairmont Police Relief Association; modifying the number of board of
trustees members of the Minneapolis Firefighters Relief Association; increasing
state education aid to offset teacher retirement plan employer contribution
increases; increasing teacher retirement plan member and employer
contributions; revising the normal retirement age and providing prospective
benefit accrual rate increases for teacher retirement plans; permitting the
Brimson Volunteer Firefighters' Relief Association to implement a different
board of trustees composition; permitting employees of the Minneapolis
Firefighters Relief Association and the Minneapolis Police Relief Association
to become members of the general employee retirement plan of the Public
Employees Retirement Association; creating a two-year demonstration
postretirement adjustment mechanism for the St. Paul Teachers Retirement Fund
Association; creating a temporary postretirement option program for employees
covered by the general employee retirement plan of the Public Employees
Retirement Association; setting a statute of limitations for erroneous receipts
of the general employee retirement plan of the Public Employees Retirement
Association; permitting the Minnesota State Colleges and Universities System
board to create an early separation incentive program; permitting certain
Minnesota State Colleges and Universities System faculty members to make a
second chance retirement coverage election upon achieving tenure; including the
Weiner Memorial Medical Center, Inc., in the Public Employees Retirement
Association privatization law; extending the approval deadline date for the
inclusion of the Clearwater County Hospital in the Public Employees Retirement
Association privatization law; requiring a report; appropriating money;� amending Minnesota Statutes 2008, sections
3A.02, subdivision 3, by adding a subdivision; 3A.03, by adding a subdivision;
3A.04, by adding a subdivision; 3A.115; 11A.08, subdivision 1; 11A.17,
subdivisions 1, 2; 11A.23, subdivisions 1, 2; 43A.34, subdivision 4; 43A.346,
subdivisions 2, 6; 69.011, subdivisions 1, 2, 4; 69.021, subdivisions 7, 9;
69.031, subdivisions 1, 5; 69.77, subdivision 4; 69.771, subdivision 3; 69.772,
subdivisions 4, 6; 69.773, subdivision 6; 127A.50, subdivision 1; 299A.465,
subdivision 1; 352.01, subdivision 2b, by adding subdivisions; 352.021, by
adding a subdivision; 352.04, subdivisions 1, 12; 352.061; 352.113, subdivision
4, by adding a subdivision; 352.115, by adding a subdivision; 352.12, by adding
a subdivision; 352.75, subdivisions 3, 4; 352.86, subdivisions 1, 1a, 2;
352.91, subdivision 3d; 352.911, subdivisions 3, 5; 352.93, by adding a
subdivision; 352.931, by adding a subdivision; 352.95, subdivisions 1, 2, 3, 4,
5, by adding a subdivision; 352B.02, subdivisions 1, 1a, 1c, 1d; 352B.08, by
adding a subdivision; 352B.10, subdivisions 1, 2, 5, by adding subdivisions;
352B.11, subdivision 2, by adding a subdivision; 352C.10; 352D.06, subdivision
1; 352D.065, by adding a subdivision; 352D.075, by adding a subdivision;
353.01, subdivisions 2, 2a, 6, 11b, 16, 16b; 353.0161, subdivision 1; 353.03,
subdivision 3a; 353.06; 353.27, subdivisions 1, 2, 3, 7, 7b; 353.29, by adding
a subdivision; 353.31, subdivision 1b, by adding a subdivision; 353.33,
subdivisions 1, 3b, 7, 11, 12, by adding subdivisions; 353.65, subdivisions 2,
3; 353.651, by adding a subdivision; 353.656, subdivision 5a, by adding a
subdivision; 353.657, subdivision 3a, by adding a subdivision; 353.665,
subdivision 3; 353A.02, subdivisions 14, 23; 353A.05, subdivisions 1, 2;
353A.08, subdivisions 1, 3, 6a; 353A.081, subdivision 2; 353A.09, subdivision
1; 353A.10, subdivisions 2, 3; 353E.01, subdivisions 3, 5; 353E.04, by adding a
subdivision; 353E.06, by adding a subdivision; 353E.07, by adding a
subdivision; 353F.02, subdivision 4; 354.05, subdivision 38, by adding a
subdivision; 354.07, subdivision 4; 354.33, subdivision 5; 354.35, by adding a
subdivision; 354.42, subdivisions 1a, 2, 3, by adding subdivisions; 354.44,
subdivisions 4, 5, 6, by adding a subdivision; 354.46, by adding a subdivision;
354.47, subdivision 1; 354.48, subdivisions 4, 6, by adding a subdivision;
354.49, subdivision 2; 354.52, subdivisions 2a, 4b; 354.55, subdivisions 11,
13; 354.66, subdivision 6; 354.70, subdivisions 5, 6; 354A.011, subdivision
15a; 354A.096; 354A.12,
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5452
subdivisions 1, 2a, by adding subdivisions; 354A.29,
subdivision 3; 354A.31, subdivisions 4, 4a, 7; 354A.36, subdivision 6; 354B.21,
subdivision 2; 356.20, subdivision 2; 356.215, subdivisions 1, 11; 356.219,
subdivision 3; 356.315, by adding a subdivision; 356.32, subdivision 2;
356.351, subdivision 2; 356.401, subdivisions 2, 3; 356.465, subdivision 1, by
adding a subdivision; 356.611, subdivisions 3, 4; 356.635, subdivisions 6, 7;
356.96, subdivisions 1, 5; 422A.06, subdivision 8; 422A.08, subdivision 5;
423C.03, subdivision 1; 424A.001, subdivisions 1, 1a, 2, 3, 4, 5, 6, 8, 9, 10,
by adding subdivisions; 424A.01; 424A.02, subdivisions 1, 2, 3, 3a, 7, 8, 9,
9a, 9b, 10, 12, 13; 424A.021; 424A.03; 424A.04; 424A.05, subdivisions 1, 2, 3,
4; 424A.06; 424A.07; 424A.08; 424A.10, subdivisions 1, 2, 3, 4, 5; 424B.10,
subdivision 2, by adding subdivisions; 424B.21; 490.123, subdivisions 1, 3;
490.124, by adding a subdivision; Laws 1989, chapter 319, article 11, section
13; Laws 2006, chapter 271, article 5, section 5, as amended; Laws 2008,
chapter 349, article 14, section 13; proposing coding for new law in Minnesota
Statutes, chapters 136F; 352B; 353; 354; 356; 420; 424A; 424B; proposing coding
for new law as Minnesota Statutes, chapter 353G; repealing Minnesota Statutes
2008, sections 11A.041; 11A.18; 11A.181; 352.119, subdivisions 2, 3, 4; 352.86,
subdivision 3; 352B.01, subdivisions 1, 2, 3, 3b, 4, 6, 7, 9, 10, 11; 352B.26,
subdivisions 1, 3; 353.271; 353A.02, subdivision 20; 353A.09, subdivisions 2,
3; 354.05, subdivision 26; 354.06, subdivision 6; 354.55, subdivision 14;
354.63; 354A.29, subdivisions 2, 4, 5; 356.2165; 356.41; 356.431, subdivision
2; 422A.01, subdivision 13; 422A.06, subdivision 4; 422A.08, subdivision 5a; 424A.001,
subdivision 7; 424A.02, subdivisions 4, 6, 8a, 8b, 9b; 424A.09; 424B.10,
subdivision 1; 490.123, subdivisions 1c, 1e.
Reported the same back with the following amendments:
Delete everything after the enacting clause and
insert:
"ARTICLE 1
MINNESOTA POSTRETIREMENT INVESTMENT FUND DISSOLUTION
ACCOMMODATION
Section 1.�
Minnesota Statutes 2008, section 3A.02, subdivision 3, is amended to
read:
Subd. 3.� Appropriation.� The amounts required for payment of
retirement allowances provided by this section are appropriated annually to the
director from the participation of the legislators retirement plan in
the Minnesota postretirement investment fund or from the general fund as
provided in section 3A.115.� The
retirement allowance must be paid is payable monthly to the
recipients entitled to those retirement allowances.
Sec. 2.�
Minnesota Statutes 2008, section 3A.02, is amended by adding a
subdivision to read:
Subd. 6.� Postretirement
adjustment eligibility.� A
retirement allowance under this section is eligible for postretirement
adjustments under section 356.415.
Sec. 3.�
Minnesota Statutes 2008, section 3A.03, is amended by adding a
subdivision to read:
Subd. 3.� Legislators
retirement fund.� (a) The
legislators retirement fund, a special retirement fund, is created within the
state treasury and must be credited with assets equal to the participation of
the legislators retirement plan in the Minnesota postretirement investment fund
as of June 30, 2009, and any investment proceeds on those assets.
(b) The payment of annuities under section 3A.115,
paragraph (b), is appropriated from the legislators retirement fund.
Sec. 4.�
Minnesota Statutes 2008, section 3A.04, is amended by adding a
subdivision to read:
Subd. 2a.� Postretirement
adjustment eligibility.� A
survivor benefit under this section is eligible for postretirement adjustments
under section 356.415.
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5453
Sec. 5.� Minnesota Statutes 2008, section 3A.115, is
amended to read:
3A.115 RETIREMENT ALLOWANCE APPROPRIATION; POSTRETIREMENT
ADJUSTMENT.�
(a) The amount necessary to fund the
retirement allowance granted under this chapter to a former legislator upon
retirement retiring after June 30, 2003, is appropriated from the
general fund to the director to pay pension obligations due to the retiree.
(b) The
amount necessary to fund the retirement allowance granted under this chapter to
a former legislator retiring before July 1, 2003, must be paid from the
legislators retirement fund created under section 3A.03, subdivision 3, until
the assets of the fund are exhausted and at that time, the amount necessary to
fund the retirement allowances under this paragraph is appropriated from the
general fund to the director to pay pension obligations to the retiree.
(c) Retirement allowances payable to
retired legislators and their survivors under this chapter must be adjusted in
the same manner, at the same times, and in the same amounts as are benefits
payable from the Minnesota postretirement investment fund to retirees of a
participating public pension fund as provided in sections 3A.02,
subdivision 6, and 356.415.
Sec. 6.� Minnesota Statutes 2008, section 11A.08,
subdivision 1, is amended to read:
Subdivision
1.� Membership.� There is created an Investment Advisory
Council consisting of 17 members.� Ten of
these members shall must be experienced in general investment
matters.� They shall be appointed by
the state board The state board must appoint the ten members.� The other seven members shall be
are:� the commissioner of finance;
the executive director of the Minnesota State Retirement System; the executive
director of the Public Employees Retirement Association; the executive director
of the Teachers Retirement Association; a retiree currently receiving benefits
from the postretirement investment fund a statewide retirement plan;
and two public employees who are active members of funds whose assets are
invested by the state board.� The governor
must appoint the retiree and the public employees shall be appointed by
the governor for four-year terms.
Sec. 7.� Minnesota Statutes 2008, section 11A.23,
subdivision 1, is amended to read:
Subdivision
1.� Certification
of assets not needed for immediate use.�
Each executive director administering a retirement fund or plan
enumerated in subdivision 4 shall, from time to time, certify to the state
board for investment those portions of the assets of the retirement fund or
plan which in the judgment of the executive director are not required for
immediate use.� Assets of the fund or
plan required for participation in the Minnesota postretirement adjustment
fund, the combined investment fund, or the supplemental investment fund shall
be transferred to those funds as provided by sections 11A.01 to 11A.25. �
Sec. 8.� Minnesota Statutes 2008, section 11A.23,
subdivision 2, is amended to read:
Subd. 2.� Investment.� Retirement fund assets certified to the state
board pursuant to under subdivision 1 shall must be
invested by the state board subject to the provisions of section 11A.24.� Retirement fund assets transferred to the
Minnesota postretirement investment fund, the combined investment fund or
the supplemental investment fund shall must be invested by the
state board as part of those funds.�
Sec. 9.� Minnesota Statutes 2008, section 352.021, is
amended by adding a subdivision to read:
Subd. 5.�
Determining applicable law.� An annuity under this chapter must be
computed under the law in effect as of the last day for which the employee
receives pay, or if on medical leave, the day that the leave terminates.� However, if the employee has returned to
covered employment following a termination, the employee must have earned at
least six months of allowable service following a return to employment as a
state employee in order to qualify for improved benefits resulting from any law
change enacted subsequent to that termination.
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5454
Sec. 10.� Minnesota Statutes 2008, section 352.04,
subdivision 1, is amended to read:
Subdivision
1.� Fund
created.� (a) There is created
a special fund to be known as the general state employees retirement fund.� In that fund, employee contributions,
employer contributions, and other amounts authorized by law must be deposited.
(b) The general
state employees retirement plan of the Minnesota State Retirement System must
participate in the Minnesota postretirement investment fund.� The amounts provided in section 352.119 must
be deposited in the Minnesota postretirement investment fund.
Sec. 11.� Minnesota Statutes 2008, section 352.04,
subdivision 12, is amended to read:
Subd. 12.� Fund
disbursement restricted.� The general
state employees retirement fund and the participation in the Minnesota
postretirement investment fund must be disbursed only for the purposes
provided by law.� The expenses of the
system and any benefits provided by law, other than benefits payable from
the Minnesota postretirement investment fund, must be paid from the general
state employees retirement fund.� The
retirement allowances, retirement annuities, and disability benefits, as well
as refunds of any sum remaining to the credit of a deceased retired employee or
a disabled employee must be paid only from the general state employees
retirement fund after the needs have been certified and the amounts
withdrawn from the participation in the Minnesota postretirement investment
fund under section 11A.18.� The
amounts necessary to make the payments from the general state employees
retirement fund and the participation in the Minnesota postretirement
investment fund are annually appropriated from these funds that
fund for those purposes.
Sec. 12.� Minnesota Statutes 2008, section 352.061, is
amended to read:
352.061 INVESTMENT BOARD TO INVEST FUNDS.�
The director shall,
from time to time, certify to the State Board of Investment any portions of the
state employees retirement fund that in the judgment of the director are not
required for immediate use.� Assets
from the state employees retirement fund must be transferred to the Minnesota
postretirement investment fund as provided in section 11A.18.� The State Board of Investment shall
invest and reinvest sums so transferred, or certified, in
securities that are duly authorized legal investments under section
11A.24.�
Sec. 13.� Minnesota Statutes 2008, section 352.113, is
amended by adding a subdivision to read:
Subd. 13.�
Postretirement adjustment
eligibility.� A disability
benefit under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 14.� Minnesota Statutes 2008, section 352.115, is
amended by adding a subdivision to read:
Subd. 14.�
Postretirement adjustment
eligibility.� A retirement
annuity under this section and section 352.116 is eligible for postretirement
adjustments under section 356.415.
Sec. 15.� Minnesota Statutes 2008, section 352.12, is
amended by adding a subdivision to read:
Subd. 2c.�
Postretirement adjustment
eligibility.� A survivor
benefit under subdivision 2, 2a, or 2b is eligible for postretirement adjustments
under section 356.415.
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5455
Sec. 16.� Minnesota Statutes 2008, section 352.75,
subdivision 3, is amended to read:
Subd. 3.� Existing
retired members and benefit recipients.�
As of July 1, 1978, the liability for all retirement annuities,
disability benefits, survivorship annuities, and survivor of deceased active
employee benefits paid or payable by the former Metropolitan Transit
Commission-Transit Operating Division employees retirement fund is transferred
to the Minnesota State Retirement System, and is no longer the liability of the
former Metropolitan Transit Commission-Transit Operating Division employees
retirement fund.� The required
reserves for retirement annuities, disability benefits, and optional joint and
survivor annuities in effect on June 30, 1978, and the required reserves for
the increase in annuities and benefits provided under subdivision 6 must be
determined using a five percent interest assumption and the applicable
Minnesota State Retirement System mortality table and shall be transferred by
the Minnesota State Retirement System to the Minnesota postretirement
investment fund on July 1, 1978, but shall be considered transferred as of June
30, 1978.� The annuity or benefit amount
in effect on July 1, 1978, including the increase granted under subdivision 6,
must be used for adjustments made under section 11A.18.� For persons receiving benefits as
survivors of deceased former retirement annuitants, the benefits must be
considered as having commenced on the date on which the retirement annuitant
began receiving the retirement annuity.�
Sec. 17.� Minnesota Statutes 2008, section 352.75,
subdivision 4, is amended to read:
Subd. 4.� Existing
deferred retirees.� Any former member
of the former Metropolitan Transit Commission-Transit Operating Division
employees retirement fund is entitled to a retirement annuity from the Minnesota
State Retirement System if the employee:
(1) is not an
active employee of the Transit Operating Division of the former Metropolitan
Transit Commission on July 1, 1978; (2) has at least ten years of active
continuous service with the Transit Operating Division of the former
Metropolitan Transit Commission as defined by the former Metropolitan Transit
Commission-Transit Operating Division employees retirement plan document in
effect on December 31, 1977; (3) has not received a refund of contributions;
(4) has not retired or begun receiving an annuity or benefit from the former
Metropolitan Transit Commission-Transit Operating Division employees retirement
fund; (5) is at least 55 years old; and (6) submits a valid application for a
retirement annuity to the executive director of the Minnesota State Retirement
System.
The person is
entitled to a retirement annuity in an amount equal to the normal old age
retirement allowance calculated under the former Metropolitan Transit
Commission-Transit Operating Division employees retirement fund plan document
in effect on December 31, 1977, subject to an early retirement reduction or
adjustment in amount on account of retirement before the normal retirement age
specified in that former Metropolitan Transit Commission-Transit Operating
Division employees retirement fund plan document.
The deferred
retirement annuity of any person to whom this subdivision applies must be
augmented.� The required reserves
applicable to the deferred retirement annuity, determined as of the date the
allowance begins to accrue using an appropriate mortality table and an interest
assumption of five percent, must be augmented by interest at the rate of five
percent per year compounded annually from January 1, 1978, to January 1, 1981,
and three percent per year compounded annually from January 1, 1981, to the
first day of the month in which the annuity begins to accrue.� Upon After the commencement of
the retirement annuity, the required reserves for the annuity must be
transferred to the Minnesota postretirement investment fund in accordance with
subdivision 2 and section 352.119 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.�
Sec. 18.� Minnesota Statutes 2008, section 352.911,
subdivision 3, is amended to read:
Subd. 3.� Investment.� The correctional employees retirement fund
shall participate in the Minnesota postretirement investment fund and in that
fund there shall be deposited the amounts provided in section 352.119.� The balance of any assets of the
fund shall must be deposited in the Minnesota combined investment
funds as provided in section 11A.14, if applicable, or otherwise under section
11A.23.�
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2009 - Top of Page 5456
Sec. 19.�
Minnesota Statutes 2008, section 352.911, subdivision 5, is amended to
read:
Subd. 5.� Fund disbursement restricted.� The correctional employees retirement fund and
its share of participation in the Minnesota postretirement investment fund
shall must be disbursed only for the purposes provided for in the
applicable provisions in this chapter.�
The proportional share of the expenses of the system and any benefits
provided in sections section 352.90 to 352.951, other than
benefits payable from the Minnesota postretirement investment fund, shall must
be paid from the correctional employees retirement fund.� The retirement allowances, retirement
annuities, the disability benefits, the survivorship benefits, and any refunds
of accumulated deductions shall must be paid only from the
correctional employees retirement fund after those needs have been certified
by the executive director and the amounts withdrawn from the share of
participation in the Minnesota postretirement fund under section 11A.18.� The amounts necessary to make the payments
from the correctional employees retirement fund and the participation in the
Minnesota postretirement investment fund are annually appropriated from those
funds that fund for those purposes.�
Sec. 20.�
Minnesota Statutes 2008, section 352.93, is amended by adding a
subdivision to read:
Subd. 7.� Postretirement
adjustment eligibility.� A
retirement annuity under this section is eligible for postretirement
adjustments under section 356.415.
Sec. 21.�
Minnesota Statutes 2008, section 352.931, is amended by adding a
subdivision to read:
Subd. 6.� Postretirement
adjustment eligibility.� A
survivor benefit under this section is eligible for postretirement adjustments
under section 356.415.
Sec. 22.�
Minnesota Statutes 2008, section 352.95, is amended by adding a
subdivision to read:
Subd. 8.� Postretirement
adjustment eligibility.� A
disability benefit under this section is eligible for postretirement
adjustments under section 356.415.
Sec. 23.�
Minnesota Statutes 2008, section 352B.02, subdivision 1d, is amended to
read:
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 finance 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.� Appropriate
amounts shall be transferred to or withdrawn from the Minnesota postretirement
investment fund as provided in section 352B.26.
Sec. 24.�
Minnesota Statutes 2008, section 352B.08, is amended by adding a
subdivision to read:
Subd. 4.� Postretirement
adjustment eligibility.� A
retirement annuity under this section is eligible for postretirement
adjustments under section 356.415.
Sec. 25.�
Minnesota Statutes 2008, section 352B.10, is amended by adding a
subdivision to read:
Subd. 6.� Postretirement
adjustment eligibility.� A
disability benefit under this section is eligible for postretirement adjustments
under section 356.415.
Sec. 26.�
Minnesota Statutes 2008, section 352B.11, is amended by adding a
subdivision to read:
Subd. 2e.� Postretirement
adjustment eligibility.� A
survivor benefit under subdivision 2, 2b, or 2c is eligible for postretirement
adjustments under section 356.415.
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Sec. 27.� Minnesota Statutes 2008, section 352C.10, is
amended to read:
352C.10 BENEFIT ADJUSTMENTS.�
Retirement
allowances payable to retired constitutional officers and surviving spouse
benefits payable must be adjusted in the same manner, at the same times and
in the same amounts as are benefits payable from the Minnesota postretirement
investment fund to retirees of a participating public pension fund under
section 356.415.
Sec. 28.� Minnesota Statutes 2008, section 352D.06,
subdivision 1, is amended to read:
Subdivision
1.� Annuity;
reserves.� When a participant attains
at least age 55, terminates from covered service, and applies for a retirement
annuity, the cash value of the participant's shares shall must be
transferred to the Minnesota postretirement investment general state
employees retirement fund and must be used to provide an annuity for
the retired employee based upon the participant's age when the benefit begins
to accrue according to the reserve basis used by the general state employees
retirement plan in determining pensions and reserves.� The annuity under this subdivision is
eligible for postretirement adjustments under section 356.415.
Sec. 29.� Minnesota Statutes 2008, section 352D.065, is
amended by adding a subdivision to read:
Subd. 3a.�
Postretirement adjustment
eligibility.� A disability
benefit under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 30.� Minnesota Statutes 2008, section 352D.075, is
amended by adding a subdivision to read:
Subd. 2b.�
Postretirement adjustment
eligibility.� A survivor
benefit under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 31.� Minnesota Statutes 2008, 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 as in its judgment may not be
required for immediate use.� Assets
from the public employees retirement fund shall be transferred to the Minnesota
postretirement investment fund as provided in section 11A.18.� 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 and shall have 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 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 for the state employees
retirement fund shall under chapter 11A must apply to the
accounting, purchase and sale of securities for the public employees retirement
fund.�
Sec. 32.� Minnesota Statutes 2008, section 353.27,
subdivision 1, is amended to read:
Subdivision
1.� Income;
disbursements.� There is a special
fund known as the "public employees retirement fund," the
"retirement fund," or the "fund," which shall
must include all the assets of the association.� This fund shall must be
credited with all contributions, all interest and all other income authorized
by law.� From this fund there is
appropriated the payments authorized by this chapter in the amounts and at such
time provided herein, including the expenses of administering the fund, and
including the proper share of the Minnesota postretirement investment fund.
Sec. 33.� Minnesota Statutes 2008, section 353.29, is
amended by adding a subdivision to read:
Subd. 9.�
Postretirement adjustment
eligibility.� An annuity under
this section or section 353.30 is eligible for postretirement adjustments under
section 356.415.
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Sec. 34.�
Minnesota Statutes 2008, section 353.31, subdivision 1b, is amended to
read:
Subd. 1b.� Joint and survivor option.� (a) Prior to payment of a surviving spouse
benefit under subdivision 1, the surviving spouse may elect to receive the 100
percent joint and survivor optional annuity under section 353.32, subdivision
1a, rather than a surviving spouse benefit.
(b) If there is a dependent child or children, and the
100 percent joint and survivor optional annuity for the surviving spouse, when
added to the dependent children's benefit under subdivisions 1 and 1a, exceeds
an amount equal to 70 percent of the member's specified average monthly salary,
the 100 percent joint and survivor annuity under section 353.32, subdivision
1a, must be reduced by the amount necessary so that the total family benefit
does not exceed the 70 percent maximum family benefit amount under subdivision
1a.
(c) The 100 percent joint and survivor optional
annuity must be restored to the surviving spouse, plus applicable
postretirement fund adjustments under Minnesota Statutes 2008, section
356.41, through January 1, 2009, and thereafter under section 356.415,
as the dependent child or children become no longer dependent under section
353.01, subdivision 15.
Sec. 35.�
Minnesota Statutes 2008, section 353.31, is amended by adding a
subdivision to read:
Subd. 12.� Postretirement
adjustment eligibility.� A
survivor benefit under subdivision 1 or 1b or section 353.32, subdivision 1a,
1b, or 1c is eligible for postretirement adjustments under section 356.415.
Sec. 36.�
Minnesota Statutes 2008, section 353.33, subdivision 3b, is amended to
read:
Subd. 3b.� Optional annuity election.� A disabled member may elect to receive the
normal disability benefit or an optional annuity under section 353.30,
subdivision 3.� The election of an
optional annuity must be made prior to the commencement of payment of the
disability benefit.� The optional annuity
must begin to accrue on the same date as provided for the disability benefit.
(1) If a person who is not the spouse of a member is
named as beneficiary of the joint and survivor optional annuity, the person is
eligible to receive the annuity only if the spouse, on the disability
application form prescribed by the executive director, permanently waives the
surviving spouse benefits under sections 353.31, subdivision 1, and 353.32,
subdivision 1a.� If the spouse of the
member refuses to permanently waive the surviving spouse coverage, the
selection of a person other than the spouse of the member as a joint annuitant
is invalid.
(2) If the spouse of the member permanently waives
survivor coverage, the dependent children, if any, continue to be eligible for
survivor benefits under section 353.31, subdivision 1, including the minimum
benefit in section 353.31, subdivision 1a.�
The designated optional annuity beneficiary may draw the monthly
benefit; however, the amount payable to the dependent child or children and
joint annuitant must not exceed the 70 percent maximum family benefit under
section 353.31, subdivision 1a.� If the
maximum is exceeded, the benefit of the joint annuitant must be reduced to the
amount necessary so that the total family benefit does not exceed the 70
percent maximum family benefit amount.
(3) If the spouse is named as the beneficiary of the
joint and survivor optional annuity, the spouse may draw the monthly benefits;
however, the amount payable to the dependent child or children and the joint
annuitant must not exceed the 70 percent maximum family benefit under section
353.31, subdivision 1a.� If the maximum
is exceeded, each dependent child will receive ten percent of the member's
specified average monthly salary, and the benefit to the joint annuitant must
be reduced to the amount necessary so that the total family benefit does not
exceed the 70 percent maximum family benefit amount.� The joint and survivor optional annuity must
be restored to the surviving spouse, plus applicable postretirement adjustments
under Minnesota Statutes 2008, section 356.41 or section 356.415,
as the dependent child or children become no longer dependent under section
353.01, subdivision 15.
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Sec. 37.� Minnesota Statutes 2008, section 353.33,
subdivision 7, is amended to read:
Subd. 7.� Partial
reemployment.� If, following a work
or non-work-related injury or illness, a disabled person who remains totally
and permanently disabled as defined in section 353.01, subdivision 19, has
income from employment that is not substantial gainful activity and the rate of
earnings from that employment are less than the salary rate at the date of
disability or the salary rate currently paid for positions similar to the
employment position held by the disabled person immediately before becoming
disabled, whichever is greater, the executive director shall continue the
disability benefit in an amount that, when added to the earnings and any
workers' compensation benefit, does not exceed the salary rate at the date of
disability or the salary currently paid for positions similar to the employment
position held by the disabled person immediately before becoming disabled,
whichever is higher.� The disability
benefit under this subdivision may not exceed the disability benefit originally
allowed, plus any postretirement adjustments payable after December 31, 1988,
in accordance with Minnesota Statutes 2008, section 11A.18, subdivision
10, or Minnesota Statutes 2008, section 356.41, through January 1, 2009, and
thereafter as provided in section 356.415.�
No deductions for the retirement fund may be taken from the salary of a
disabled person who is receiving a disability benefit as provided in this
subdivision.
Sec. 38.� Minnesota Statutes 2008, section 353.33, is
amended by adding a subdivision to read:
Subd. 13.�
Postretirement adjustment
eligibility.� A disability
benefit under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 39.� Minnesota Statutes 2008, section 353.651, is
amended by adding a subdivision to read:
Subd. 5.�
Postretirement adjustment
eligibility.� An annuity under
this section is eligible for postretirement adjustments under section 356.415.
Sec. 40.� Minnesota Statutes 2008, section 353.656,
subdivision 5a, is amended to read:
Subd. 5a.� Cessation
of disability benefit.� (a) The
association shall cease the payment of any disability benefit the first of the
month following the reinstatement of a member to full time or less than
full-time service in a position covered by the police and fire fund.
(b) A disability
benefit paid to a disabled member of the police and fire plan, that was granted
under laws in effect after June 30, 2007, terminates at the end of the month in
which the member:
(1) reaches normal
retirement age;
(2) if the
disability benefit is payable for a 60-month period as determined under
subdivisions 1 and 3, as applicable, the first of the month following the
expiration of the 60-month period; or
(3) if the
disabled member so chooses, the end of the month in which the member has
elected to convert to an early retirement annuity under section 353.651,
subdivision 4.
(c) If the
police and fire plan member continues to be disabled when the disability
benefit terminates under this subdivision, the member is deemed to be
retired.� The individual is entitled to
receive a normal retirement annuity or an early retirement annuity under
section 353.651, whichever is applicable, as further specified in paragraph (d)
or (e).� If the individual did not
previously elect an optional annuity under subdivision 1a, paragraph (a), the
individual may elect an optional annuity under subdivision 1a, paragraph (b).
(d) A member of
the police and fire plan who is receiving a disability benefit under this section
may, upon application, elect to receive an early retirement annuity under
section 353.651, subdivision 4, at any time after attaining age 50, but must
convert to a retirement annuity no later than the end of the month in which the
disabled
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member attains
normal retirement age.� An early
retirement annuity elected under this subdivision must be calculated on the
disabled member's accrued years of service and average salary as defined in
section 353.01, subdivision 17a, and when elected, the member is deemed to be
retired.
(e) When an
individual's benefit is recalculated as a retirement annuity under this
section, the annuity must be based on clause (1) or clause (2), whichever
provides the greater amount:
(1) the benefit
amount at the time of reclassification, including all prior adjustments
provided under Minnesota Statutes 2008, section 11A.18, through
January 1, 2009, and thereafter as provided in section 356.415; or
(2) a benefit
amount computed on the member's actual years of accrued allowable service
credit and the law in effect at the time the disability benefit first accrued,
plus any increases that would have applied since that date under section Minnesota
Statutes 2008, 11A.18, through January 1, 2009, and thereafter as
provided in section 356.415.
Sec. 41.� Minnesota Statutes 2008, section 353.656, is
amended by adding a subdivision to read:
Subd. 14.�
Postretirement adjustment
eligibility.� A disability
benefit under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 42.� Minnesota Statutes 2008, section 353.657,
subdivision 3a, is amended to read:
Subd. 3a.� Maximum
and minimum family benefits.� (a) The
maximum monthly benefit per family must not exceed the following percentages of
the member's average monthly salary as specified in subdivision 3:
(1) 80 percent,
if the member's death was a line of duty death; or
(2) 70 percent,
if the member's death was not a line of duty death or occurred while the member
was receiving a disability benefit that accrued before July 1, 2007.
(b) The minimum
monthly benefit per family, including the joint and survivor optional annuity
under subdivision 2a, and section 353.656, subdivision 1a, must not be less
than the following percentage of the member's average monthly salary as
specified in subdivision 3:
(1) 60 percent,
if the death was a line of duty death; or
(2) 50 percent,
if the death was not a line of duty death or occurred while the member was
receiving a disability benefit that accrued before July 1, 2007.
(c) If the
maximum under paragraph (a) is exceeded, the monthly benefit of the joint
annuitant must be reduced to the amount necessary so that the total family
benefit does not exceed the applicable maximum.�
The joint and survivor optional annuity must be restored, plus
applicable postretirement adjustments under Minnesota Statutes 2008, section
356.41 or section 356.415, as the dependent child or children become no
longer dependent under section 353.01, subdivision 15.
Sec. 43.� Minnesota Statutes 2008, section 353.657, is
amended by adding a subdivision to read:
Subd. 5.�
Postretirement adjustment
eligibility.� A survivor
benefit under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 44.� Minnesota Statutes 2008, section 353.665,
subdivision 3, is amended to read:
Subd. 3.� Transfer
of assets.� Unless the municipality
has elected to retain the consolidation account under subdivision 1, paragraph
(b), the assets of the former local police or fire consolidation account must
be transferred and upon transfer, the actuarial value of the assets of a former
local police or fire consolidation account less an
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amount equal to
the residual assets as determined under subdivision 7, paragraph (f), are the
assets of the public employees police and fire fund as of July 1, 1999.� The participation of a consolidation
account in the Minnesota postretirement investment fund becomes part of the
participation of the public employees police and fire fund in the Minnesota
postretirement investment fund.� The remaining
assets, excluding the amounts for distribution under subdivision 7, paragraph
(f), become an asset of the public employees police and fire fund.� The public employees police and fire fund
also must be credited as an asset with the amount of receivable assets under
subdivision 7, paragraph (e).
Sec. 45.� Minnesota Statutes 2008, section 353A.02,
subdivision 14, is amended to read:
Subd. 14.� Ineligible
investments.� "Ineligible
investments" means any investment security or other asset held by the
relief association at or after the initiation of the consolidation procedure
which does not comply with the applicable requirements or limitations of
sections 11A.09, 11A.18, 11A.23, and 11A.24.
Sec. 46.� Minnesota Statutes 2008, section 353A.02,
subdivision 23, is amended to read:
Subd. 23.� Postretirement
adjustment.� "Postretirement
adjustment" means any periodic or regular procedure for modifying the
amount of a retirement annuity, service pension, disability benefit, or
survivor benefit after the start of that annuity, pension, or benefit,
including but not limited to modifications of amounts from the Minnesota
postretirement investment fund under section 11A.18, subdivision 9
356.415, or any benefit escalation or benefit amount modification based on
changes in the salaries payable to active police officers or salaried
firefighters or changes in a cost-of-living index as provided for in the
existing relief association benefit plan.
Sec. 47.� Minnesota Statutes 2008, section 353A.05,
subdivision 1, is amended to read:
Subdivision
1.� Commission
actions.� (a) Upon initiation of consolidation
as provided in section 353A.04, the executive director of the commission shall
direct the actuary retained under section 356.214 to undertake the preparation
of the actuarial calculations necessary to complete the consolidation.
(b) These actuarial
calculations shall include for each active member, each deferred former member,
each retired member, and each current beneficiary the computation of the
present value of future benefits, the future normal costs, if any, and the
actuarial accrued liability on the basis of the existing relief association
benefit plan and on the basis of the public employees police and fire fund
benefit plan.� These actuarial
calculations shall also include for the total active, deferred, retired, and
benefit recipient membership the sum of the present value of future benefits,
the future normal costs, if any, and the actuarial accrued liability on the
basis of the existing relief association benefit plan, on the basis of the
public employees police and fire fund benefit plan, and on the basis of the
benefit plan which produced the largest present value of future benefits for
each person.� The actuarial calculations
shall be prepared using the entry age actuarial cost method for all components
of the benefit plan and using the actuarial assumptions applicable to the fund
for the most recent actuarial valuation prepared under section 356.215, except
that the actuarial calculations on the basis of the existing relief association
benefit plan shall be prepared using an interest rate actuarial assumption
during the postretirement period which is in the same amount as the interest
rate actuarial assumption applicable to the preretirement period.� The actuarial calculations shall include the
computation of the present value of the initial postretirement adjustment
anticipated by the executive director of the state board as payable after the
effective date of the consolidation from the Minnesota postretirement
investment fund under section 11A.18 356.415.
(c) The chief
administrative officer of the relief association shall, upon request, provide
in a timely manner to the executive director of the commission and to the
actuary retained under section 356.214 the most current available information
or documents, whichever applies, regarding the demographics of the active,
deferred, retired, and benefit recipient membership of the relief association,
the financial condition of the relief association, and the existing benefit
plan of the relief association.
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(d) Upon completion of the actuarial calculations
required by this subdivision, the actuary retained under section 356.214 shall
issue a report in the form of an appropriate summary of the actuarial
calculations and shall provide a copy of that report to the executive director
of the commission, the executive director of the Public Employees Retirement
Association, the chief administrative officer of the relief association, the
chief administrative officer of the municipality in which the relief
association is located, and the state auditor.
Sec. 48.�
Minnesota Statutes 2008, section 353A.05, subdivision 2, is amended to
read:
Subd. 2.� State board actions.� (a) Upon approval of consolidation by the
membership as provided in section 353A.04, the executive director of the state
board shall review the existing investment portfolio of the relief association
for compliance with the requirements and limitations set forth in sections
11A.09, 11A.14, 11A.18, 11A.23, and 11A.24 and for appropriateness for
retention in the light of the established investment objectives of the state
board.� The executive director of the
state board, using any reporting service retained by the state board, shall
determine the approximate market value of the existing assets of the relief
association upon the effective date of consolidation and the transfer of assets
from the relief association to the individual relief association consolidation
accounts at market value.
(b) The state board may require that the relief
association liquidate any investment security or other item of value which is
determined to be ineligible or inappropriate for retention by the state
board.� The liquidation shall occur
before the effective date of consolidation and transfer of assets.
(c) If requested to do so by the chief administrative
officer of the relief association or of the municipality, the state board shall
provide advice on the means and procedures available to liquidate investment
securities and other assets determined to be ineligible or inappropriate.
Sec. 49.�
Minnesota Statutes 2008, section 353A.08, subdivision 1, is amended to
read:
Subdivision 1.� Election of coverage by current retirees.� (a) A person who is receiving a service
pension, disability benefit, or survivor benefit is eligible to elect benefit
coverage provided under the relevant provisions of the public employees police
and fire fund benefit plan or to retain benefit coverage provided under the
relief association benefit plan in effect on the effective date of the
consolidation.� The relevant provisions
of the public employees police and fire fund benefit plan for the person
electing that benefit coverage are limited to participation in the Minnesota
postretirement investment fund for any future postretirement adjustments under
section 356.415 based on the amount of the benefit or pension payable on
December 31, if December 31 is the effective date of consolidation, or on the
December 1 following the effective date of the consolidation, if other than
December 31.� The survivor benefit
payable on behalf of any service pension or disability benefit recipient who elects
benefit coverage under the public employees police and fire fund benefit plan
must be calculated under the relief association benefit plan and is subject to participation
in the Minnesota postretirement investment fund for any future
postretirement adjustments under section 356.415 based on the amount of
the survivor benefit payable.
(b) A survivor benefit calculated under the relief
association benefit plan which is first payable after June 30, 1997, to the
surviving spouse of a retired member of a consolidation account who, before
July 1, 1997, chose to participate in the Minnesota postretirement investment
fund adjustments as provided under this subdivision section
356.415 must be increased on the effective date of the survivor benefit 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.
(c) By electing the public employees police and fire
fund benefit plan, a current service pension or disability benefit recipient
who, as of the first January 1 occurring after the effective date of
consolidation, has been receiving the pension or benefit for at least seven
months, or any survivor benefit recipient who, as of the first January 1
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occurring after the effective date of consolidation,
has been receiving the benefit on the person's own behalf or in combination
with a prior applicable service pension or disability benefit for at least
seven months is eligible to receive a partial adjustment payable from the
Minnesota postretirement investment fund under section 11A.18,
subdivision 9 356.415.
(d) The election by any pension or benefit recipient
must be made on or before the deadline established by the board of the Public
Employees Retirement Association in a manner that recognizes the number of
persons eligible to make the election and the anticipated time required to
conduct any required benefit counseling.
Sec. 50.�
Minnesota Statutes 2008, section 353A.08, subdivision 3, is amended to
read:
Subd. 3.� Election of coverage by active members.� (a) A person who is an active member of a
police or fire relief association, other than a volunteer firefighter, has the
option to elect benefit coverage under the relevant provisions of the public
employees police and fire fund or to retain benefit coverage provided by the
relief association benefit plan in effect on the effective date of
consolidation.� The relevant provisions
of the public employee police and fire fund benefit plan for the person
electing that benefit coverage are the relevant provisions of the public
employee police and fire fund benefit plan applicable to retirement annuities,
disability benefits, and survivor benefits, including participation in the
Minnesota postretirement investment fund adjustments under
section 356.415, but excluding any provisions governing the purchase of
credit for prior service or making payments in lieu of member contribution
deductions applicable to any period which occurred before the effective date of
consolidation.
(b) An active member is eligible to make an election
at one of the following times:
(1) within six months of the effective date of
consolidation;
(2) between the date on which the active member attains
the age of 49 years and six months and the date on which the active member
attains the age of 50 years; or
(3) on the date on which the active member terminates
active employment for purposes of receiving a service pension or disability
benefits, or within 90 days of the date the member terminates active employment
and defers receipt of a service pension, whichever applies.
Sec. 51.�
Minnesota Statutes 2008, section 353A.081, subdivision 2, is amended to
read:
Subd. 2.� Election of coverage.� (a) Individuals eligible under subdivision 1
may elect, on a form prescribed by the executive director of the Public
Employees Retirement Association, to have survivor benefits calculated under
the relevant provisions of the public employees police and fire fund benefit
plan or to have survivor benefits calculated under the relief association
benefit plan.� The relevant provisions of
the public employee police and fire fund benefit plan for the person electing
that benefit coverage are the relevant provisions of the public employee police
and fire fund benefit plan applicable to survivor benefits, including participation
in the Minnesota postretirement investment fund adjustments under
section 356.415.
(b) If the election results in an increased benefit
amount to the surviving spouse eligible under subdivision 1, or to eligible
children if there is no surviving spouse, the increased benefit accrues as of
the date on which the survivor benefits payable to the survivors from the
consolidation account were first paid. �The back payment of any increase in prior
benefit amounts, plus any postretirement adjustments payable under section 356.41
356.415, or any increase payable under the local relief association bylaws
is payable as soon as practicable after the effective date of the election.
Sec. 52.�
Minnesota Statutes 2008, section 353A.09, subdivision 1, is amended to
read:
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2009 - Top of Page 5464
Subdivision 1.� Establishment of consolidation accounts.� (a) The board of trustees of the Public
Employees Retirement Association shall establish a separate consolidation
account for each local relief association of a municipality that consolidates
with the Public Employees Retirement Association.� The association shall credit to the
consolidation account the assets of the individual consolidating local relief
association upon transfer, member contributions received after consolidation
under subdivision 4, municipal contributions received after consolidation under
subdivision 5, and a proportionate share of any investment income earned after
consolidation.� From the consolidation
account, the association shall pay for the transfer of any required reserves
to the Minnesota postretirement investment fund on account of persons electing
the type of benefit coverage provided by the public employees police and fire
fund under subdivisions 2 and 3 and section 353.271, subdivision 2, the
pension and benefit amounts on account of persons electing coverage by the
relief association benefit plan under section 353A.08, the benefit amounts not
payable from the Minnesota postretirement investment fund on account of
persons electing the type of benefit coverage provided by the public employees
police and fire fund under section 353A.08, and any direct administrative
expenses related to the consolidation account, and the proportional share of
the general administrative expenses of the association.
(b) Except as otherwise provided for in this section,
the liabilities and the assets of a consolidation account must be considered
for all purposes to be separate from the balance of the public employees police
and fire fund.� The consolidation account
must be subject to separate accounting, a separate actuarial valuation, and
must be reported as a separate exhibit in any annual financial report or
actuarial valuation report of the public employees police and fire
consolidation fund, whichever applies.�
The executive director of the public employees retirement association
shall maintain separate accounting records and balances for each consolidation
account.
Sec. 53.�
Minnesota Statutes 2008, section 353A.10, subdivision 2, is amended to
read:
Subd. 2.� Collection of late contributions.� In the event of a refusal by a municipality
in which was located a local police or firefighters relief association which
has consolidated with the fund to pay to the fund any amount or amounts due
under section 353A.09, subdivisions 2 4 to 6, the executive
director of the public employees retirement association may notify the
Department of Revenue, the Department of Finance, and the state auditor of the
refusal and commence the necessary procedure to collect the amount or amounts
due from the amount of any state aid under sections 69.011 to 69.051,
amortization state aid under section 423A.02, or supplemental amortization
state aid under Laws 1984, chapter 564, section 48, as amended by Laws 1986,
chapter 359, section 20, which is payable to the municipality or to certify the
amount or amounts due to the county auditor for inclusion in the next tax levy
of the municipality or for collection from other revenue available to the
municipality, or both.
Sec. 54.�
Minnesota Statutes 2008, section 353A.10, subdivision 3, is amended to
read:
Subd. 3.� Levy and bonding authority.� A municipality in which was located a local
police or firefighters relief association that has consolidated with the fund
may issue general obligation bonds of the municipality to defray all or a
portion of the principal amounts specified in section 353A.09, subdivisions 2
4 to 6, or certify to the county auditor a levy in the amount necessary to
defray all or a portion of the principal amount specified in section 353A.09,
subdivisions 2 4 to 6, or the annual amount specified in section
353A.09, subdivisions 2 4 to 6.�
The municipality may pledge the full faith, credit, and taxing power of
the municipality for the payment of the principal of and interest on the general
obligation bonds.� Any municipal bond may
be issued without an election under section 475.58 and may not be included in
the net debt of the municipality for purposes of any charter or statutory debt
limitation, nor may any tax levy for the payment of bond principal or interest
be subject to any limitation concerning rate or amount established by charter
or law.
Sec. 55.�
Minnesota Statutes 2008, section 353E.01, subdivision 3, is amended to
read:
Subd. 3.� Investment.� (a) The public employees local government
correctional service retirement fund participates in the Minnesota
postretirement investment fund.
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(b) The amounts provided in section 353.271 must be
deposited in that fund.�
(c) The balance of any Assets of the public employees local government
correctional service retirement fund must be deposited in the Minnesota
combined investment fund as provided in section 11A.14, if applicable, or
otherwise invested under section 11A.23.�
Sec. 56.�
Minnesota Statutes 2008, section 353E.01, subdivision 5, is amended to
read:
Subd. 5.� Fund disbursement restricted.� (a) The public employees local government
correctional service retirement fund and its share of participation in the
Minnesota postretirement investment fund may be disbursed only for the
purposes provided for in this chapter.
(b) The proportional share of the necessary and
reasonable administrative expenses of the association and any benefits provided
in this chapter, other than benefits payable from the Minnesota
postretirement investment fund, must be paid from the public employees
local government correctional service retirement fund.� Retirement annuities, disability benefits,
survivorship benefits, and any refunds of accumulated deductions may be paid
only from the correctional service retirement fund after those needs have been
certified by the executive director and any applicable amounts withdrawn
from the share of participation in the Minnesota postretirement fund under
section 11A.18.�
(c) The amounts necessary to make the payments from
the public employees local government correctional service retirement fund and
its participation in the Minnesota postretirement investment fund are
annually appropriated from those funds for those purposes.
Sec. 57.�
Minnesota Statutes 2008, section 353E.04, is amended by adding a
subdivision to read:
Subd. 7.� Postretirement
adjustment eligibility.� An
annuity under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 58.�
Minnesota Statutes 2008, section 353E.06, is amended by adding a
subdivision to read:
Subd. 9.� Postretirement
adjustment eligibility.� A
disability benefit under this section is eligible for postretirement
adjustments under section 356.415.
Sec. 59.�
Minnesota Statutes 2008, section 353E.07, is amended by adding a
subdivision to read:
Subd. 8.� Postretirement
adjustment eligibility.� A
survivor benefit under this section is eligible for postretirement adjustments
under section 356.415.
Sec. 60.�
Minnesota Statutes 2008, section 354.07, subdivision 4, is amended to
read:
Subd. 4.� Certification of funds to State Board of
Investment.� It shall be is
the duty of the board from time to time to certify to the State Board of
Investment for investment as much of the funds in its hands as shall not be
needed for current purposes.� Such
funds that are certified as to investment in the postretirement investment fund
shall include the amount as required for the total reserves needed for the
purposes described in section 354.63.� The
State Board of Investment shall thereupon transfer such assets to the
appropriate fund provided herein, in accordance with the procedure set forth in
section 354.63, or invest and reinvest an amount equal to the sum so
certified in such securities as are now or may hereafter be duly authorized
legal investments for state employees retirement fund and all such securities
so transferred or purchased shall must be deposited with the
commissioner of finance.� All interest
from these investments shall must be credited to the appropriate
funds teachers retirement fund and used for current purposes or
investments, except as hereinafter provided.�
The State Board of Investment shall have has authority to
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sell, convey, and exchange such securities and invest
and reinvest the funds when it deems it desirable to do so, and shall
must sell securities upon request of the officers of the association when
such officers determine funds are needed for its purposes.� All of the provisions regarding accounting
procedures and restrictions and conditions for the purchase and sale of
securities for the state employees retirement fund shall under
chapter 11A must apply to the accounting, purchase and sale of securities
for the Teachers' Retirement Association.
Sec. 61.�
Minnesota Statutes 2008, section 354.33, subdivision 5, is amended to
read:
Subd. 5.� Retirees not eligible for federal benefits.� When any person retires after July 1, 1973,
who (1) has ten or more years of allowable service, and (2) does not have any
retroactive Social Security coverage by reason of the person's position in the
retirement system, and (3) does not qualify for federal old age and survivor
primary benefits at the time of retirement, the annuity must be computed under
section 354.44, subdivision 2, of the law in effect on June 30, 1969, except
that accumulations after June 30, 1957, must be calculated using the same
most recent mortality table approved under section 356.215,
subdivision 18, and interest assumption as are used to transfer the
required reserves to the Minnesota postretirement investment fund using
the applicable postretirement interest rate assumption specified in section
356.215, subdivision 8.
Sec. 62.�
Minnesota Statutes 2008, section 354.35, is amended by adding a
subdivision to read:
Subd. 3.� Postretirement
adjustment eligibility.� An
annuity under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 63.�
Minnesota Statutes 2008, section 354.42, subdivision 1a, is amended to
read:
Subd. 1a.� Teachers retirement fund.� (a) Within the Teachers Retirement
Association and the state treasury is created a special retirement fund, which
must include all the assets of the Teachers Retirement Association and all
revenue of the association.� The fund is
the continuation of the fund established under Laws 1931, chapter 406, section
2, notwithstanding the repeal of Minnesota Statutes 1973, section 354.42, subdivision
1, by Laws 1974, chapter 289, section 59.
(b) The teachers retirement fund must be credited with
all employee and employer contributions, all investment revenue and gains, and
all other income authorized by law.
(c) From the teachers retirement fund is appropriated
the payments of annuities and benefits authorized by this chapter, the
transfers to the Minnesota postretirement investment fund, and the
reasonable and necessary expenses of administering the fund and the
association.
Sec. 64.� Minnesota
Statutes 2008, section 354.44, is amended by adding a subdivision to read:
Subd. 7a.� Postretirement
adjustment eligibility.� (a) A
retirement annuity under subdivision 2 or 6 is eligible for postretirement
adjustments under section 356.415.
(b) Retirement annuities payable from the teachers
retirement plan must not be in an amount less than the amount originally
determined on the date of retirement and as adjusted on each succeeding January
1 under Minnesota Statutes 2008, section 11A.18, before January 1, 2010, and
under section 356.415 after December 31, 2009.
Sec. 65.�
Minnesota Statutes 2008, section 354.46, is amended by adding a
subdivision to read:
Subd. 7.� Postretirement
adjustment eligibility.� A
survivor benefit under subdivision 1, 2, 2a, or 2b, is eligible for
postretirement adjustments under section 356.415.
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Sec. 66.� Minnesota Statutes 2008, section 354.48, is
amended by adding a subdivision to read:
Subd. 11.�
Postretirement adjustment
eligibility.� A disability
benefit under this section is eligible for postretirement adjustments under
section 356.415.
Sec. 67.� Minnesota Statutes 2008, section 354.55,
subdivision 13, is amended to read:
Subd. 13.� Pre-1969
law retirements.� Any person who
ceased teaching service prior to July 1, 1968, who has ten years or more of
allowable service and left accumulated deductions in the fund for the purpose
of receiving when eligible a retirement annuity, and retires shall
must have the annuity computed in accordance with the law in effect on June
30, 1969, except that the portion of the annuity based on accumulations after
June 30, 1957, under Minnesota Statutes 1967, section 354.44, subdivision 2,
and accumulations under Minnesota Statutes 1967, section 354.33, subdivision 1,
shall must be calculated using the mortality table established by
the board under section 354.07, subdivision 1, and approved under section
356.215, subdivision 18, and the postretirement interest rate
assumption specified in section 356.215, to transfer the required reserves
to the Minnesota postretirement investment fund subdivision 8.
Sec. 68.� Minnesota Statutes 2008, section 354.70,
subdivision 5, is amended to read:
Subd. 5.� Transfer
of assets.� (a) On or before June 30,
2006, the chief administrative officer of the Minneapolis Teachers Retirement
Fund Association shall transfer to the Teachers Retirement Association the
entire assets of the special retirement fund of the Minneapolis Teachers
Retirement Fund Association.� The
transfer of the assets of the Minneapolis Teachers Retirement Fund Association
special retirement fund must include any accounts receivable that are
determined by the executive director of the State Board of Investment as
reasonably capable of being collected.�
Legal title to account receivables that are determined by the executive director
of the State Board of Investment as not reasonably capable of being collected
transfers to Special School District No. 1, Minneapolis, as of the date of the
determination of the executive director of the State Board of Investment.� If the account receivables transferred to
Special School District No. 1, Minneapolis, are subsequently recovered by the
school district, the superintendent of Special School District No. 1,
Minneapolis, shall transfer the recovered amount to the executive director of
the Teachers Retirement Association, in cash, for deposit in the teachers
retirement fund, less the reasonable expenses of the school district related to
the recovery.
(b) As of June
30, 2006, assets of the special retirement fund of the Minneapolis Teachers
Retirement Fund Association are assets of the Teachers Retirement Association
to be invested by the State Board of Investment pursuant to the provisions of
section 354.07, subdivision 4.� The
Teachers Retirement Association is the successor in interest to all claims
which the Minneapolis Teachers Retirement Fund Association 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 Teachers Retirement
Fund Association, subject to the following exceptions and qualifications:
(1) the
Teachers Retirement Association is not liable for any claim against the
Minneapolis Teachers Retirement Fund Association, its former board or board
members, which is founded upon a claim of breach of fiduciary duty, where the act
or acts constituting the claimed breach were not done in good faith;
(2) the
Teachers Retirement Association may assert any applicable defense to any claim
in any judicial or administrative proceeding that the former Minneapolis
Teachers Retirement Fund Association or its board would otherwise have been
entitled to assert;
(3) the
Teachers Retirement Association may assert any applicable defense that the
Teachers Retirement Association may assert in its capacity as a statewide
agency; and
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(4) the Teachers Retirement Association shall
indemnify any former fiduciary of the Minneapolis Teachers Retirement Fund
Association consistent with the provisions of the Public Pension Fiduciary
Responsibility Act, in section 356A.11.
(c) From the assets of the former Minneapolis Teachers
Retirement Fund Association transferred to the Teachers Retirement Association,
an amount equal to the percentage figure that represents the ratio between the
market value of the Minnesota postretirement investment fund as of June 30,
2006, and the required reserves of the Minnesota postretirement investment fund
as of June 30, 2006, applied to the present value of future benefits payable to
annuitants of the former Minneapolis Teachers Retirement Fund Association as of
June 30, 2006, including any postretirement adjustment from the Minnesota
postretirement investment fund expected to be payable on January 1, 2007, must
be transferred to the Minnesota postretirement investment fund.� The executive director of the State Board of
Investment shall estimate this ratio at the time of the transfer.� By January 1, 2007, after all necessary financial
information becomes available to determine the actual funded ratio of the
Minnesota postretirement investment fund, the postretirement investment fund
must refund to the Teachers Retirement Association any excess assets or the
Teachers Retirement Association must contribute any deficiency to the Minnesota
postretirement investment fund with interest under Minnesota Statutes 2008, section
11A.18, subdivision 6.� The balance of
the assets of the former Minneapolis Teachers Retirement Fund Association after
the transfer to the Minnesota postretirement investment fund must be credited
to the Teachers Retirement Association.
(d) If the assets transferred by the Minneapolis
Teachers Retirement Fund Association to the Teachers Retirement Association are
insufficient to meet its obligation to the Minnesota postretirement investment
fund, additional assets must be transferred by the executive director of the
Teachers Retirement Association to meet the amount required.
Sec. 69.�
Minnesota Statutes 2008, section 354.70, subdivision 6, is amended to
read:
Subd. 6.� Benefit calculation.� (a) For every deferred, inactive, disabled,
and retired member of the Minneapolis Teachers Retirement Fund Association
transferred under subdivision 1, and the survivors of these members, annuities
or benefits earned before the date of the transfer, other than future
postretirement adjustments, must be calculated and paid by the Teachers
Retirement Association under the laws, articles of incorporation, and bylaws of
the former Minneapolis Teachers Retirement Fund Association that were in effect
relative to the person on the date of the person's termination of active
service covered by the former Minneapolis Teachers Retirement Fund Association.
(b) Former Minneapolis Teachers Retirement Fund
Association members who retired before July 1, 2006, must receive
postretirement adjustments after December 31, 2006, only as provided in Minnesota
Statutes 2008, section 11A.18 or section 356.415.� All other benefit recipients of the former
Minneapolis Teachers Retirement Fund Association must receive postretirement
adjustments after December 31, 2006, only as provided in section 356.41
356.415.
(c) This consolidation does not impair or diminish
benefits for an active, deferred, or retired member or a survivor of an active,
deferred, or retired member under the former Minneapolis Teachers Retirement
Fund Association in existence at the time of the consolidation, except that any
future guaranteed or investment-related postretirement adjustments must be paid
after July 1, 2006, in accordance with paragraph (b), and all benefits based on
service on or after July 1, 2006, must be determined only by laws governing the
Teachers Retirement Association.
Sec. 70.�
Minnesota Statutes 2008, section 356.215, subdivision 1, is amended to
read:
Subdivision 1.� Definitions.� (a) For the purposes of sections 3.85 and
356.20 to 356.23, each of the terms in the following paragraphs has the meaning
given.
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(b) "Actuarial valuation" means a set of
calculations prepared by an actuary retained under section 356.214 if so
required under section 3.85, or otherwise, by an approved actuary, to determine
the normal cost and the accrued actuarial liabilities of a benefit plan,
according to the entry age actuarial cost method and based upon stated
assumptions including, but not limited to rates of interest, mortality, salary
increase, disability, withdrawal, and retirement and to determine the payment
necessary to amortize over a stated period any unfunded accrued actuarial
liability disclosed as a result of the actuarial valuation of the benefit plan.
(c) "Approved actuary" means a person who is
regularly engaged in the business of providing actuarial services and who is a
fellow in the Society of Actuaries.
(d) "Entry age actuarial cost method" means
an actuarial cost method under which the actuarial present value of the
projected benefits of each individual currently covered by the benefit plan and
included in the actuarial valuation is allocated on a level basis over the
service of the individual, if the benefit plan is governed by section 69.773,
or over the earnings of the individual, if the benefit plan is governed by any
other law, between the entry age and the assumed exit age, with the portion of
the actuarial present value which is allocated to the valuation year to be the
normal cost and the portion of the actuarial present value not provided for at
the valuation date by the actuarial present value of future normal costs to be
the actuarial accrued liability, with aggregation in the calculation process to
be the sum of the calculated result for each covered individual and with
recognition given to any different benefit formulas which may apply to various
periods of service.
(e) "Experience study" means a report
providing experience data and an actuarial analysis of the adequacy of the
actuarial assumptions on which actuarial valuations are based.
(f) "Actuarial value of assets" means:
(1) For the July 1, 2009, actuarial valuation, the market value of all assets as of the preceding
June 30, 2009, reduced by:
(1) (i) 20
percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between the
June 30 that occurred three years earlier, 2006, and the
June 30 that occurred four years earlier, 2005, and the computed
increase in the market value of assets other than the Minnesota
postretirement investment fund over that fiscal year period if the assets
had increased at the percentage preretirement interest rate assumption used
in the actuarial valuation for the July 1 that occurred four years earlier
earned a rate of return on assets equal to the annual percentage preretirement
interest rate assumption used in the actuarial valuation for July 1, 2005;
(2) (ii) 40 percent of the difference between the actual net
change in the market value of assets other than the Minnesota postretirement
investment fund between the June 30 that occurred two years
earlier, 2007, and the June 30 that occurred three years
earlier, 2006, and the computed increase in the market value of
assets other than the Minnesota postretirement investment fund over that
fiscal year period if the assets had increased at the percentage
preretirement interest rate assumption used in the actuarial valuation for the
July 1 that occurred three years earlier earned a rate of return on
assets equal to the annual percentage preretirement interest rate assumption
used in the actuarial valuation for July 1, 2006;
(3) (iii) 60 percent of the difference between the actual net
change in the market value of assets other than the Minnesota postretirement
investment fund between the June 30 that occurred one year
earlier, 2008, and the June 30 that occurred two years
earlier, 2007, and the computed increase in the market value of
assets other than the Minnesota postretirement investment fund over that
fiscal year period if the assets had increased at the percentage
preretirement interest rate assumption used in the actuarial valuation for the
July 1 that occurred two years earlier earned a rate of return on assets
equal to the annual percentage preretirement interest rate assumption used in
the actuarial valuation for July 1, 2007; and
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(4) (iv) 80 percent of the difference between
the actual net change in the market value of assets other than the Minnesota
postretirement investment fund between the immediately prior June 30,
2009, and the June 30 that occurred one year earlier,
2008, and the computed increase in the market value of assets other than
the Minnesota postretirement investment fund over that fiscal year period
if the assets had increased at the percentage preretirement interest rate
assumption used in the actuarial valuation for the July 1 that occurred one
year earlier. earned a rate of return on assets equal to the annual
percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2008; and
(v) if
applicable, 80 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30,
2009, and June 30, 2008, and the computed increase in the market value of
assets over that fiscal year period if the assets had increased at 8.5 percent
annually.
(2) For the
July 1, 2010, actuarial valuation, the market value of all assets as of June
30, 2010, reduced by:
(i) 20
percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30,
2007, and June 30, 2006, and the computed increase in the market value of
assets other than the Minnesota postretirement investment fund over that fiscal
year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2006;
(ii) 40
percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30,
2008, and June 30, 2007, and the computed increase in the market value of
assets other than the Minnesota postretirement investment fund over that fiscal
year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2007;
(iii) 60
percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30,
2009, and June 30, 2008, and the computed increase in the market value of
assets other than the Minnesota postretirement investment fund over that fiscal
year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2008;
(iv) 80
percent of the difference between the actual net change in the market value of
total assets between June 30, 2010, and June 30, 2009, and the computed
increase in the market value of total assets over that fiscal year period if
the assets had earned a rate of return on assets equal to the annual percentage
preretirement interest rate assumption used in the actuarial valuation for July
1, 2009; and
(v) if
applicable, 60 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over
that fiscal year period if the assets had increased at 8.5 percent annually.
(3) For the
July 1, 2011, actuarial valuation, the market value of all assets as of June
30, 2011, reduced by:
(i) 20
percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30,
2008, and June 30, 2007, and the computed increase in the market value of
assets other than the Minnesota postretirement investment fund over that fiscal
year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2007;
(ii) 40
percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30,
2009, and June 30, 2008, and the computed increase in the market value of assets
other than the Minnesota postretirement investment fund over that fiscal year
period if the assets had earned a rate of return on assets equal to the annual
percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2008;
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(iii) 60
percent of the difference between the actual net change in the market value of
the total assets between June 30, 2010, and June 30, 2009, and the computed
increase in the market value of the total assets over that fiscal year period
if the assets had earned a rate of return on assets equal to the annual
percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2009;
(iv) 80
percent of the difference between the actual net change in the market value of
total assets between June 30, 2011, and June 30, 2010, and the computed
increase in the market value of total assets over that fiscal year period if
the assets had earned a rate of return on assets equal to the annual percentage
preretirement interest rate assumption used in the actuarial valuation for July
1, 2010; and
(v) if
applicable, 40 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30,
2009, and June 30, 2008, and the computed increase in the market value of
assets over that fiscal year period if the assets had increased at 8.5 percent
annually.
(4) For the
July 1, 2012, actuarial valuation, the market value of all assets as of June 30,
2012, reduced by:
(i) 20
percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30,
2009, and June 30, 2008, and the computed increase in the market value of
assets other than the Minnesota postretirement investment fund over that fiscal
year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial
valuation for July 1, 2008;
(ii) 40
percent of the difference between the actual net change in the market value of
total assets between June 30, 2010, and June 30, 2009, and the computed
increase in the market value of total assets over that fiscal year period if
the assets had earned a rate of return on assets equal to the annual percentage
preretirement interest rate assumption used in the actuarial valuation for July
1, 2009;
(iii) 60
percent of the difference between the actual net change in the market value of total
assets between June 30, 2011, and June 30, 2010, and the computed increase in
the market value of total assets over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement
interest rate assumption used in the actuarial valuation for July 1, 2010;
(iv) 80
percent of the difference between the actual net change in the market value of
total assets between June 30, 2012, and June 30, 2011, and the computed
increase in the market value of total assets over that fiscal year period if
the assets had earned a rate of return on assets equal to the annual percentage
preretirement interest rate assumption used in the actuarial valuation for July
1, 2011; and
(v) if
applicable, 20 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30,
2009, and June 30, 2008, and the computed increase in the market value of
assets over that fiscal year period if the assets had increased at 8.5 percent
annually.
(5) For the
July 1, 2013, and following actuarial valuations, the market value of all
assets as of the preceding June 30, reduced by:
(i) 20
percent of the difference between the actual net change in the market value of
total assets between the June 30 that occurred three years earlier and the June
30 that occurred four years earlier and the computed increase in the market
value of total assets over that fiscal year period if the assets had earned a
rate of return on assets equal to the annual percentage preretirement interest
rate assumption used in the actuarial valuation for the July 1 that occurred
four years earlier;
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(ii) 40 percent of the difference between the actual
net change in the market value of total assets between the June 30 that
occurred two years earlier and the June 30 that occurred three years earlier
and the computed increase in the market value of total assets over that fiscal
year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial
valuation for the July 1 that occurred three years earlier;
(iii) 60 percent of the difference between the actual
net change in the market value of total assets between the June 30 that
occurred one year earlier and the June 30 that occurred two years earlier and
the computed increase in the market value of total assets over that fiscal year
period if the assets had earned a rate of return on assets equal to the annual
percentage preretirement interest rate assumption used in the actuarial
valuation for the July 1 that occurred two years earlier; and
(iv) 80 percent of the difference between the actual
net change in the market value of total assets between the most recent June 30
and the June 30 that occurred one year earlier and the computed increase in the
market value of total assets over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement
interest rate assumption used in the actuarial valuation for the July 1 that
occurred one year earlier.
(g) "Unfunded actuarial accrued liability"
means the total current and expected future benefit obligations, reduced by the
sum of the actuarial value of assets and the present value of future normal
costs.
(h) "Pension benefit obligation" means the
actuarial present value of credited projected benefits, determined as the
actuarial present value of benefits estimated to be payable in the future as a
result of employee service attributing an equal benefit amount, including the
effect of projected salary increases and any step rate benefit accrual rate
differences, to each year of credited and expected future employee service.
Sec. 71.�
Minnesota Statutes 2008, 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, 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
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actuarial accrued liability of all or a portion of the
fund, or a combination of the three, and the change or changes, by itself or by
themselves and without inclusion of any other items of increase or decrease,
produce a net increase in the unfunded actuarial accrued liability in the fund,
the established date for full funding must be determined using the following
procedure:
(i) the
unfunded actuarial accrued liability of the fund must be determined in
accordance with the plan provisions governing annuities and retirement benefits
and the actuarial assumptions in effect before an applicable change;
(ii) the level
annual dollar contribution or level percentage, whichever is applicable, needed
to amortize the unfunded actuarial accrued liability amount determined under
item (i) by the established date for full funding in effect before the change
must be calculated using the interest assumption specified in subdivision 8 in
effect before the change;
(iii) the
unfunded actuarial accrued liability of the fund must be determined in
accordance with any new plan provisions governing annuities and benefits
payable from the fund and any new actuarial assumptions and the remaining plan
provisions governing annuities and benefits payable from the fund and actuarial
assumptions in effect before the change;
(iv) the level
annual dollar contribution or level percentage, whichever is applicable, needed
to amortize the difference between the unfunded actuarial accrued liability
amount calculated under item (i) and the unfunded actuarial accrued liability
amount calculated under item (iii) over a period of 30 years from the end of
the plan year in which the applicable change is effective must be calculated
using the applicable interest assumption specified in subdivision 8 in effect
after any applicable change;
(v) the level
annual dollar or level percentage amortization contribution under item (iv)
must be added to the level annual dollar amortization contribution or level
percentage calculated under item (ii);
(vi) the period
in which the unfunded actuarial accrued liability amount determined in item
(iii) is amortized by the total level annual dollar or level percentage amortization
contribution computed under item (v) must be calculated using the interest
assumption specified in subdivision 8 in effect after any applicable change,
rounded to the nearest integral number of years, but not to exceed 30 years
from the end of the plan year in which the determination of the established
date for full funding using the procedure set forth in this clause is made and
not to be less than the period of years beginning in the plan year in which the
determination of the established date for full funding using the procedure set
forth in this clause is made and ending by the date for full funding in effect
before the change; and
(vii) the
period determined under item (vi) must be added to the date as of which the
actuarial valuation was prepared and the date obtained is the new established
date for full funding.
(d) For the
Minneapolis Employees Retirement Fund, the established date for full funding is
June 30, 2020.
(e) For the general
employees retirement plan of the Public Employees Retirement Association, the
established date for full funding is June 30, 2031.
(f) For the
Teachers Retirement Association, the established date for full funding is June
30, 2037.
(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.
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2009 - Top of Page 5474
(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 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.
(l) In addition to calculating the unfunded actuarial
accrued liability of the retirement plan for financial reporting purposes under
paragraphs (a) to (j), the actuarial valuation of the retirement plan must also
include a calculation of the unfunded actuarial accrued liability of the
retirement plan for purposes of determining the amortization contribution
sufficient to amortize the unfunded actuarial liability of the Minnesota Post
Retirement Investment Fund.� For this
exhibit, the calculation must be the unfunded actuarial accrued liability net
of the postretirement adjustment liability funded from the investment
performance of the Minnesota Post Retirement Investment Fund or the retirement
benefit fund.
Sec. 72.�
Minnesota Statutes 2008, section 356.351, subdivision 2, is amended to
read:
Subd. 2.� Incentive.� (a) For an employee eligible under
subdivision 1, if approved under paragraph (b), the employer may provide an
amount up to $17,000, to an employee who terminates service, to 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) 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), clause (2), if the employee uses
money from a deferred compensation account that, combined with the payment
under paragraph (a), clause (2), would be sufficient to purchase enough service
credit to qualify for retirement under section 352.116, subdivision 1,
paragraph (b); 353.30, subdivision 1a; 354.44, subdivision 6, paragraph (b), or
354A.31, subdivision 6, paragraph (b), whichever applies.
(c) The cost to purchase service credit under
paragraph (a), clause (2), must be made in accordance with
section 356.551.
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(d) The annuity
purchase under paragraph (a), 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 transfer
amounts to the Minnesota postretirement investment fund and to calculate
optional annuity forms.� The purchased
annuity must be the actuarial equivalent of the incentive amount.
Sec. 73.� [356.415]
POSTRETIREMENT ADJUSTMENTS; STATEWIDE RETIREMENT PLANS.�
Subdivision
1.� Annual
postretirement adjustments.� (a)
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
for at least one full month, 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) The
increases provided by this section 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.
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;
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(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. 74.�
Minnesota Statutes 2008, section 490.123, subdivision 1, is amended to
read:
Subdivision 1.� Fund creation; revenue and authorized
disbursements.� (a) There is created
a special fund to be known as the "judges' retirement fund."
(b) The judges' retirement fund must be credited with
all contributions; all interest, dividends, and other investment proceeds; and
all other income authorized by this chapter or other applicable law.
(c) From this fund there are appropriated the payments
authorized by this chapter, in the amounts and at the times provided, including
the necessary and reasonable expenses of the Minnesota State Retirement System
in administering the fund and the transfers to the Minnesota postretirement
investment fund.
Sec. 75.�
Minnesota Statutes 2008, section 490.123, subdivision 3, is amended to
read:
Subd. 3.� Investment.� (a) The executive director of the Minnesota
State Retirement System shall, from time to time, certify to the State Board of
Investment such portions of the judges' retirement fund as in the director's
judgment may not be required for immediate use.
(b) Assets from the judges' retirement fund must be
transferred to the Minnesota postretirement investment fund for retirement and
disability benefits as provided in sections 11A.18 and 352.119.
(c) (b) The
State Board of Investment shall thereupon invest and reinvest sums so transferred,
or certified, in such securities as are duly authorized legal
investments for such purposes under section 11A.24 in compliance with sections
356A.04 and 356A.06.
Sec. 76.�
Minnesota Statutes 2008, section 490.124, is amended by adding a
subdivision to read:
Subd. 14.� Postretirement
adjustment eligibility.� A
retirement annuity under subdivision 1, 3, or 5, a disability benefit under
subdivision 4, and a survivor's annuity under subdivision 9 or 11 are eligible
for postretirement adjustments under section 356.415.
Sec. 77. �REPEALER.�
Minnesota Statutes 2008, sections 11A.041; 11A.18;
11A.181; 352.119, subdivisions 2, 3, and 4; 352B.26, subdivisions 1 and 3;
353.271; 353A.02, subdivision 20; 353A.09, subdivisions 2 and 3; 354.05,
subdivision 26; 354.55, subdivision 14; 354.63; 356.41; 356.431, subdivision 2;
422A.01, subdivision 13; 422A.06, subdivision 4; and 490.123, subdivisions 1c
and 1e, are repealed.
Sec. 78.� EFFECTIVE DATE.�
Sections 1 to 77 are effective July 1, 2009.
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2009 - Top of Page 5477
ARTICLE 2
DISABILITY BENEFIT PROVISION CHANGES
Section 1.�
Minnesota Statutes 2008, section 43A.34, subdivision 4, is amended to
read:
Subd. 4.� Officers exempted.� Notwithstanding any provision to the
contrary, (a) conservation officers and crime bureau officers who were first
employed on or after July 1, 1973, and who are members of the State Patrol
retirement fund by reason of their employment, and members of the Minnesota
State Patrol Division and Alcohol and Gambling Enforcement Division of the
Department of Public Safety who are members of the State Patrol Retirement
Association by reason of their employment, shall may not continue
employment after attaining the age of 60 years, except for a fractional portion
of one year that will enable the employee to complete the employee's next full
year of allowable service as defined pursuant to section 352B.01 352B.011,
subdivision 3; and (b) conservation officers and crime bureau officers who were
first employed and are members of the State Patrol retirement fund by reason of
their employment before July 1, 1973, shall may not continue
employment after attaining the age of 70 years.�
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 2.�
Minnesota Statutes 2008, section 299A.465, subdivision 1, is amended to
read:
Subdivision 1.� Officer or firefighter disabled in line of
duty.� (a) This subdivision applies
to any peace officer or firefighter:
(1) who the Public Employees Retirement Association or
the Minnesota State Retirement System determines is eligible to receive a
duty disability benefit pursuant to section 353.656 or 352B.10, subdivision
1, respectively; or
(2) who (i) does not qualify to receive disability
benefits by operation of the eligibility requirements set forth in section
353.656, subdivision 1, paragraph (b), (ii) retires pursuant to section
353.651, subdivision 4, or (iii) is a member of a local police or salaried
firefighters relief association and qualifies for a duty disability benefit
under the terms of plans of the relief associations, and the peace officer or
firefighter described in item (i), (ii), or (iii) has discontinued public
service as a peace officer or firefighter as a result of a disabling injury and
has been determined, by the Public Employees Retirement Association, to have
otherwise met the duty disability criteria set forth in section 353.01,
subdivision 41.
(b) A determination made on behalf of a peace officer
or firefighter described in paragraph (a), clause (2), must be at the request
of the peace officer or firefighter made for the purposes of this section.� Determinations made in accordance with
paragraph (a) are binding on the peace officer or firefighter, employer, and
state.� The determination must be made by
the executive director of the Public Employees Retirement Association or by
the executive director of the Minnesota State Retirement System, whichever
applies, and is not subject to section 356.96, subdivision 2.� Upon making a determination, the executive
director shall provide written notice to the peace officer or firefighter and
the employer.� This notice must include:
(1) a written statement of the reasons for the
determination;
(2) a notice that the person may petition for a review
of the determination by requesting that a contested case be initiated before
the Office of Administrative Hearings, the cost of which must be borne by the
peace officer or firefighter and the employer; and
(3) a statement that any person who does not petition
for a review within 60 days is precluded from contesting issues determined by
the executive director in any other administrative review or court procedure.
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2009 - Top of Page 5478
If, prior to the contested case hearing, additional
information is provided to support the claim for duty disability as defined in
section 353.01, subdivision 41, or 352B.011, subdivision 7, whichever
applies, the executive director may reverse the determination without the
requested hearing.� If a hearing is held
before the Office of Administrative Hearings, the determination rendered by the
judge conducting the fact-finding hearing is a final decision and order under section
14.62, subdivision 2a, and is binding on the applicable executive
director, the peace officer or firefighter, employer, and state.� Review of a final determination made by the
Office of Administrative Hearings under this section may only be obtained by
writ of certiorari to the Minnesota Court of Appeals under sections 14.63 to
14.68.� Only the peace officer or
firefighter, employer, and state have standing to participate in a judicial
review of the decision of the Office of Administrative Hearings.
(c) The officer's or firefighter's employer shall
continue to provide health coverage for:
(1) the officer or firefighter; and
(2) the officer's or firefighter's dependents if the
officer or firefighter was receiving dependent coverage at the time of the
injury under the employer's group health plan.
(d) The employer is responsible for the continued
payment of the employer's contribution for coverage of the officer or
firefighter and, if applicable, the officer's or firefighter's dependents.� Coverage must continue for the officer or
firefighter and, if applicable, the officer's or firefighter's dependents until
the officer or firefighter reaches or, if deceased, would have reached the age
of 65.� However, coverage for dependents
does not have to be continued after the person is no longer a dependent.
EFFECTIVE
DATE.� This section is effective the day
following final enactment and also applies to any member of the State Patrol
retirement plan who was awarded a duty disability benefit on or after July 1, 2008.
Sec. 3.�
Minnesota Statutes 2008, 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;
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(8) receivers,
jurors, notaries public, and court employees who are not in the judicial branch
as defined in section 43A.02, subdivision 25, except referees and adjusters
employed by the Department of Labor and Industry;
(9) patient and
inmate help in state charitable, penal, and correctional institutions including
the Minnesota Veterans Home;
(10) persons
who are employed for professional services where the service is incidental to
their regular professional duties and whose compensation is paid on a per diem
basis;
(11) employees
of the Sibley House Association;
(12) the
members of any state board or commission who serve the state intermittently and
are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer
of those boards if their compensation is $5,000 or less per year, or, if they
are legally prohibited from serving more than three years; and the board of
managers of the State Agricultural Society and its treasurer unless the
treasurer is also its full-time secretary;
(13) state
troopers and persons who are described in section 352B.01, subdivision 2
352B.011, subdivision 10, clauses (2) to (6) (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 shall 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;
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(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 Finance 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 the Minneapolis Employees Retirement Fund, whichever
applies, under Minnesota Statutes 1994, section 136C.75.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 4.� Minnesota Statutes 2008, section 352.01, is amended
by adding a subdivision to read:
Subd. 17a.�
Occupational disability.� "Occupational disability," for
purposes of determining eligibility for disability benefits for a correctional
employee, means a disabling condition that is expected to prevent the
correctional employee, for a period of not less than 12 months, from performing
the normal duties of the position held by the correctional employee.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
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Sec. 5.� Minnesota Statutes 2008, section 352.01, is
amended by adding a subdivision to read:
Subd. 17b.�
Duty disability, physical or
psychological.� "Duty
disability, physical or psychological," for a correctional employee, means
an occupational disability that is the direct result of an injury incurred
during, or a disease arising out of, the performance of normal duties or the
performance of less frequent duties either of which are specific to the
correctional employee.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 6.� Minnesota Statutes 2008, section 352.01, is
amended by adding a subdivision to read:
Subd. 17c.�
Regular disability, physical
or psychological.� "Regular
disability, physical or psychological," for a correctional employee, means
an occupational disability resulting from a disease or an injury that arises
from any activities while not at work or from activities while at work
performing normal or less frequent duties that do not present inherent dangers
specific to covered correctional positions.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 7.� Minnesota Statutes 2008, section 352.01, is
amended by adding a subdivision to read:
Subd. 17d.�
Normal duties.� "Normal duties" means specific
tasks designated in the applicant's job description and which the applicant
performs on a day-to-day basis, but do not include less frequent duties which may
be requested to be done by the employer from time to time.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 8.� Minnesota Statutes 2008, section 352.01, is
amended by adding a subdivision to read:
Subd. 17e.�
Less frequent duties.� "Less frequent duties" means
tasks designated in the applicant's job description as either required from
time to time or as assigned, but which are not carried out as part of the
normal routine of the applicant's job.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 9.� Minnesota Statutes 2008, section 352.113,
subdivision 4, is amended to read:
Subd. 4.� Medical
or psychological examinations; authorization for payment of benefit.� (a) An applicant shall provide medical,
chiropractic, or psychological evidence to support an application for total and
permanent disability.
(b) The director
shall have the employee examined by at least one additional licensed
chiropractor, physician, or psychologist designated by the medical
adviser.� The chiropractors, physicians,
or psychologists shall make written reports to the director concerning the
employee's disability including expert opinions as to whether the employee is
permanently and totally disabled within the meaning of section 352.01,
subdivision 17.
(c) The director
shall also obtain written certification from the employer stating whether the
employment has ceased or whether the employee is on sick leave of absence
because of a disability that will prevent further service to the employer and
as a consequence the employee is not entitled to compensation from the
employer.
(d) The medical
adviser shall consider the reports of the physicians, psychologists, and
chiropractors and any other evidence supplied by the employee or other
interested parties. �If the medical
adviser finds the employee totally and permanently disabled, the adviser shall
make appropriate recommendation to the director in writing
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together with
the date from which the employee has been totally disabled.� The director shall then determine if the
disability occurred within 180 days 18 months of filing the
application, while still in the employment of the state, and the propriety of
authorizing payment of a disability benefit as provided in this section.
(e) A terminated
employee may apply for a disability benefit within 180 days 18 months
of termination as long as the disability occurred while in the employment of
the state.� The fact that an employee is
placed on leave of absence without compensation because of disability does not
bar that employee from receiving a disability benefit.
(f) Unless the
payment of a disability benefit has terminated because the employee is no
longer totally disabled, or because the employee has reached normal retirement
age as provided in this section, the disability benefit must cease with the
last payment received by the disabled employee or which had accrued during the
lifetime of the employee unless there is a spouse surviving.� In that event, the surviving spouse is
entitled to the disability benefit for the calendar month in which the disabled
employee died.
EFFECTIVE DATE.�
This section is effective July 1, 2009, and applies to disability
benefit applicants whose last day of public employment was after June 30, 2009.
Sec. 10.� Minnesota Statutes 2008, section 352.95,
subdivision 1, is amended to read:
Subdivision
1.� Job-related
disability Duty disability; computation of benefit.� A covered correctional employee who becomes
disabled and who is expected to be physically or mentally unfit to perform the duties
of the position for at least one year as a direct result of an injury,
sickness, or other disability that incurred in or arose out of any act of duty
that makes the employee physically or mentally unable to perform the duties
is determined to have a duty disability, physical or psychological, as defined
under section 352.01, subdivision 17b, is entitled to a duty disability
benefit.� The duty disability
benefit may must be based on covered correctional service
only.� The duty disability benefit
amount is 50 percent of the average salary defined in section 352.93, plus an
additional percent equal to that specified in section 356.315, subdivision 5,
for each year of covered correctional service in excess of 20 years, ten
months, prorated for completed months.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 11.� Minnesota Statutes 2008, section 352.95,
subdivision 2, is amended to read:
Subd. 2.� Non-job-related
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, becomes disabled and who is expected to be
physically or mentally unfit to perform the duties of the position for at least
one year because of sickness or injury that occurred while not engaged in
covered employment 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, and.� 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 July 1, 2009.
Sec. 12.� Minnesota Statutes 2008, section 352.95,
subdivision 3, is amended to read:
Subd. 3.� Applying
for benefits; accrual.� No
application for disability benefits shall may be made until after
the last day physically on the job.� The
disability benefit shall begin begins to accrue the day following
the last day for which the employee is paid sick leave or annual leave,
but not earlier than 180 days before the date the application is filed.� A terminated employee must file a written
application within the time frame specified under section 352.113, subdivision
4, paragraph (e).
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EFFECTIVE
DATE.� This section is effective July 1, 2009,
and applies to disability benefit applicants whose last day of public
employment was after June 30, 2009.
Sec. 13.�
Minnesota Statutes 2008, section 352.95, subdivision 4, is amended to
read:
Subd. 4.� Medical or psychological evidence.� (a) An applicant shall provide medical,
chiropractic, or psychological evidence to support an application for
disability benefits.� The director shall
have the employee examined by at least one additional licensed physician,
chiropractor, or psychologist who is designated by the medical adviser.� The physicians, chiropractors, or
psychologists with respect to a mental impairment, shall make written reports
to the director concerning the question of the employee's disability, including
their expert opinions as to whether the employee is disabled has an
occupational disability within the meaning of this section
352.01, subdivision 17a, and whether the employee has a duty disability,
physical or psychological, under section 352.01, subdivision 17b, or has a
regular disability, physical or psychological, under section 352.01,
subdivision 17c.� The director shall
also obtain written certification from the employer stating whether or not the
employee is on sick leave of absence because of a disability that will prevent
further service to the employer performing normal duties as defined in
section 352.01, subdivision 17d, or performing less frequent duties as defined
in section 352.01, subdivision 17e, and as a consequence, the employee is
not entitled to compensation from the employer.
(b) If, on considering the reports by the physicians,
chiropractors, or psychologists and any other evidence supplied by the employee
or others, the medical adviser finds that the employee disabled has
an occupational disability within the meaning of this section
352.01, subdivision 17a, the advisor shall make the appropriate
recommendation to the director, in writing, together with the date from which
the employee has been disabled.� The
director shall then determine the propriety of authorizing payment of a duty
disability benefit or a regular disability benefit as provided in
this section.
(c) Unless the payment of a disability benefit has
terminated because the employee is no longer disabled has an
occupational disability, or because the employee has reached either age 65
55 or the five-year anniversary of the effective date of the disability
benefit, whichever is later, the disability benefit must cease with the last
payment which was received by the disabled employee or which had accrued during
the employee's lifetime.� While
disability benefits are paid, the director has the right, at reasonable times,
to require the disabled employee to submit proof of the continuance of the
an occupational disability claimed.� If any examination indicates to the medical
adviser that the employee is no longer disabled has an
occupational disability, the disability payment must be discontinued upon
the person's reinstatement to state service or within 60 days of the finding,
whichever is sooner.
EFFECTIVE
DATE.� This section is effective July 1, 2009,
and applies to disability benefit applicants whose last day of public
employment was after June 30, 2009.
Sec. 14.�
Minnesota Statutes 2008, section 352.95, subdivision 5, is amended to read:
Subd. 5.� Retirement status at normal retirement age.� The disability benefit paid to a disabled
correctional employee under this section shall terminate terminates
at the end of the month in which the employee reaches age 65 55,
or the five-year anniversary of the effective date of the disability benefit,
whichever is later.� If the disabled
correctional employee is still disabled when the employee reaches age 65
55, or the five-year anniversary of the effective date of the disability
benefit, whichever is later, the employee shall must be deemed to
be a retired employee.� If the employee
had elected an optional annuity under subdivision 1a, the employee shall
receive an annuity in accordance with the terms of the optional annuity
previously elected. �If the employee had
not elected an optional annuity under subdivision 1a, the employee may within
90 days of attaining age 65 55 or reaching the five-year
anniversary of the effective date of the disability benefit, whichever is
later, either elect to receive a normal retirement annuity computed in the
manner provided in section 352.93 or elect to receive an optional annuity as
provided in section 352.116, subdivision 3, based on the same length of service
as used in the calculation of the disability benefit.� Election of an optional annuity must be made
within 90 days before attaining age 65 55 oder
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reaching the five-year anniversary of the effective
date of the disability benefit, whichever is later.� If an optional annuity is elected, the
optional annuity shall begin begins to accrue on the first of the
month following the month in which the employee reaches age 65 55
or the five-year anniversary of the effective date of the disability benefit,
whichever is later.
EFFECTIVE DATE.�
This section is effective July 1, 2009, and applies to disability benefit
applicants whose last day of public employment was after June 30, 2009.
Sec. 15.� [352B.011]
DEFINITIONS.�
Subdivision
1.� Scope.� For the purposes of this chapter, the
terms defined in this section have the meanings given them.
Subd. 2.�
Accumulated deductions.� "Accumulated deductions" means
the total sums deducted from the salary of a member and the total amount of
assessments paid by a member in place of deductions and credited to the
member's individual account as permitted by law without interest.
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.
(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.
Subd. 4.�
Average monthly salary.� (a) Subject to the limitations of section
356.611, "average monthly salary" means the average of the highest
monthly salaries for five years of service as a member upon which contributions
were deducted from pay under section 352B.02, or upon which appropriate
contributions or payments were made to the fund to receive allowable service
and salary credit as specified under the applicable law.� Average monthly salary must be based upon all
allowable service if this service is less than five years.
(b) The
salary used for the calculation of "average monthly salary" means the
salary of the member as defined in section 352.01, subdivision 13.� The salary used for the calculation of
"average monthly salary" does not include any lump-sum annual leave
payments and overtime payments made at the time of separation from state
service, any amounts of severance pay, or any reduced salary paid during the
period the person is entitled to workers' compensation benefit payments for
temporary disability.
Subd. 5.�
Department head.� "Department head" means the head
of any department, institution, or branch of the state service that directly
pays salaries from state funds to a member who prepares, approves, and submits
salary abstracts of employees to the commissioner of Minnesota Management and
Budget.
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Subd. 6.�
Dependent child.� "Dependent child" means a
natural or adopted unmarried child of a deceased member under the age of 18
years, including any child of the member conceived during the lifetime of the
member and born after the death of the member.
Subd. 7.�
Duty disability.� "Duty disability" means a
physical or psychological condition that is expected to prevent a member, for a
period of not less than 12 months, from performing the normal duties of the
position held by the person as a member of the State Patrol retirement fund,
and that is the direct result of any injury incurred during, or a disease
arising out of, the performance of normal duties or the actual performance of
less frequent duties, either of which are specific to protecting the property
and personal safety of others and that present inherent dangers that are
specific to the positions covered by the State Patrol retirement fund.
Subd. 8.�
Fund.� "Fund" means the State Patrol
retirement fund.
Subd. 9.�
Less frequent duties.� "Less frequent duties" means
tasks which are designated in the member's job description as either required from
time to time or as assigned, but which are not carried out as part of the
normal routine of the member's position.
Subd. 10.�
Member.� "Member" means:
(1) a State
Patrol member currently employed under section 299D.03 by the state, who is a
peace officer under section 626.84, and whose salary or compensation is paid
out of state funds;
(2) a
conservation officer employed under section 97A.201, currently employed by the
state, whose salary or compensation is paid out of state funds;
(3) a crime
bureau officer who was employed by the crime bureau and was a member of the
Highway Patrolmen's retirement fund on July 1, 1978, whether or not that person
has the power of arrest by warrant after that date, or who is employed as
police personnel, with powers of arrest by warrant under section 299C.04, and
who is currently employed by the state, and whose salary or compensation is
paid out of state funds;
(4) a person
who is employed by the state in the Department of Public Safety in a data
processing management position with salary or compensation paid from state
funds, who was a crime bureau officer covered by the State Patrol retirement
plan on August 15, 1987, and who was initially hired in the data processing
management position within the department during September 1987, or January
1988, with membership continuing for the duration of the person's employment in
that position, whether or not the person has the power of arrest by warrant
after August 15, 1987;
(5) a public
safety employee who is a peace officer under section 626.84, subdivision 1,
paragraph (c), and who is employed by the Division of Alcohol and Gambling
Enforcement under section 299L.01;
(6) a
Fugitive Apprehension Unit officer after October 31, 2000, who is employed by
the Office of Special Investigations of the Department of Corrections and who
is a peace officer under section 626.84;
(7) an
employee of the Department of Commerce defined as a peace officer in section
626.84, subdivision 1, paragraph (c), who is employed by the Division of
Insurance Fraud Prevention under section 45.0135 after January 1, 2005,
and who has not attained the mandatory retirement age specified in section
43A.34, subdivision 4; and
(8) an
employee of the Department of Public Safety, who is a licensed peace officer
under section 626.84, subdivision 1, paragraph (c), and is employed as the
statewide coordinator of the Gang and Drug Oversight Council.
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Subd. 11.�
Normal duties.� "Normal duties" means specific
tasks which are designated in the member's job description and which the
applicant performs on a day-to-day basis, but do not include less frequent
duties which may be requested to be done by the employer from time to time.
Subd. 12.�
Regular disability.� "Regular disability" means a
physical or psychological condition that is expected to prevent a member, for a
period of not less than 12 months, from performing the normal duties of the
position held by a person who is a member of the State Patrol retirement plan,
and which results from a disease or an injury that arises from any activities
while not at work, or while at work and performing those normal or less
frequent duties that do not present inherent dangers that are specific to the
occupations covered by the State Patrol retirement plan.
Subd. 13.�
Surviving spouse.� "Surviving spouse" means a
member's or former member's legally married spouse who resided with the member
or former member at the time of death and was married to the member or former
member, for a period of at least one year, during or before the time of
membership.
EFFECTIVE DATE.�
(a) Except as provided in paragraph (b), this section is effective
July 1, 2009.
(b)
Subdivision 3, paragraph (a), clause (1), is effective retroactively from July
1, 1969, and allowable service on the records of the State Patrol retirement
plan credit consistent with that provision is validated.
Sec. 16.� Minnesota Statutes 2008, section 352B.02,
subdivision 1, is amended to read:
Subdivision
1.� Fund
created; membership.� A State Patrol
retirement fund is established.� Its
membership consists of all persons defined in section 352B.01, subdivision 2
352B.011, subdivision 10.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 17.� [352B.085]
SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF ABSENCE.�
A member on
leave of absence receiving temporary workers' compensation payments and a
reduced salary or no salary from the employer who is entitled to allowable
service credit for the period of absence under section 352B.011, subdivision 3,
paragraph (b), may make payment to the fund for the difference between salary
received, if any, and the salary that the member would normally receive if the
member was not on leave of absence during the period.� The member shall pay an amount equal to the
member and employer contribution rate under section 352B.02, subdivisions 1b
and 1c, on the differential salary amount for the period of the leave of
absence.� The employing department, at
its option, may pay the employer amount on behalf of the member.� Payment made under this subdivision must
include interest at the rate of 8.5 percent per year, and must be completed
within one year of the member's return from the leave of absence.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 18.� [352B.086]
SERVICE CREDIT FOR UNIFORMED SERVICE.�
(a) A member
who is absent from employment by reason of service in the uniformed services,
as defined in United States Code, title 38, section 4303(13), and who returns
to state employment in a position covered by the plan upon discharge from
service in the uniformed services within the time frame required in United
States Code, title 38, section 4312(e), may obtain service credit for the
period of the uniformed service, provided that the member did not separate from
uniformed service with a dishonorable or bad conduct discharge or under other
than honorable conditions.
(b) The
member may obtain credit by paying into the fund an equivalent member
contribution based on the member 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
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annual salary
during the purchase period that the member would have received if the member
had continued to provide employment services to the state 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
during the 12-month period of covered employment rendered immediately preceding
the purchase period.
(c) The
equivalent employer contribution and, if applicable, the equivalent employer
additional contribution, must be paid by the employing unit, using the employer
and employer additional 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.
(d) If the
member equivalent contributions provided for in this subdivision are not paid
in full, the member's allowable service credit must be prorated by multiplying
the full and fractional number of years of uniformed service eligible for
purchase by the ratio obtained by dividing the total member contributions
received by the total member contributions otherwise required under this
subdivision.
(e) To
receive allowable service credit under this subdivision, the contributions
specified in this section must be transmitted to the fund during the period
which begins with the date on which the individual returns to state employment
covered by the plan and which has a duration of three times the length of the
uniformed service period, but not to exceed five years.� If the determined payment period is
calculated to be less than one year, the contributions required under this
subdivision to receive service credit must be transmitted to the fund within
one year from the discharge date.
(f) The
amount of allowable 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.
(g) The
employing unit shall pay interest on all equivalent member and employer
contribution amounts payable under this section.� Interest must be computed at a rate of 8.5
percent compounded annually from the end of each fiscal year of the leave or
break in service to the end of the month in which payment is received.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 19.� Minnesota Statutes 2008, section 352B.10,
subdivision 1, is amended to read:
Subdivision
1.� Injuries;
payment amounts Duty disability.�
A member who becomes disabled and who is expected to be physically or
mentally unfit to perform duties for at least one year as a direct result of an
injury, sickness, or other disability that incurred in or arose out of any act
of duty is determined to qualify for duty disability as defined in
section 352B.011, subdivision 7, is entitled to receive a duty
disability benefits benefit while disabled.� The benefits must be paid in monthly installments.� The duty disability benefit is an
amount equal to the member's average monthly salary multiplied by 60 percent,
plus an additional percent equal to that specified in section 356.315,
subdivision 6, for each year and pro rata for completed months of service in
excess of 20 years, if any.�
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 20.� Minnesota Statutes 2008, section 352B.10,
subdivision 2, is amended to read:
Subd. 2.� Disabled
while not on duty Regular disability benefit.� If A member with at least one year of
service becomes disabled and is expected to be physically or mentally unfit
to perform the duties of the position for at least one year because of sickness
or injury that occurred while not engaged in covered employment, the individual
who qualifies for a regular disability benefit as defined in section 352B.011,
subdivision 12, is entitled to a regular disability benefits benefit.� The regular disability benefit must be
computed as if the individual were 55 years old at the date of disability and as
if the annuity was payable under section 352B.08.� If a regular disability under this
subdivision occurs after one year of service but before 15 years of service,
the regular disability benefit must be computed as though the individual
had credit for 15 years of service.�
EFFECTIVE DATE.�
This section is effective July 1, 2009.
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Sec. 21.� Minnesota Statutes 2008, section 352B.10, is
amended by adding a subdivision to read:
Subd. 2a. �Applying
for benefits; accrual.� No
application for disability benefits shall be made until after the last day
physically on the job.� The disability
benefit begins to accrue the day following the last day for which the employee
is paid sick leave or annual leave but not earlier than 180 days before the
date the application is filed.� A member
who is terminated must file a written application within the time frame
specified under section 352.113, subdivision 4, paragraph (e).
EFFECTIVE DATE.�
This section is effective July 1, 2009, and applies to disability
benefit applicants whose last day of public employment was after June 30, 2009.
Sec. 22.� Minnesota Statutes 2008, section 352B.10,
subdivision 5, is amended to read:
Subd. 5.� Optional
annuity.� A disabilitant may elect,
in lieu of spousal survivorship coverage under section 352B.11, subdivisions 2b
and 2c, the normal disability benefit or an optional annuity as provided in
section 352B.08, subdivision 3.� The choice
of an optional annuity must be made in writing, on a form prescribed by the
executive director, and must be made before the commencement of the payment of
the disability benefit, or within 90 days before reaching age 65 55
or before reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later.�
The optional annuity is effective on the date on which the disability
benefit begins to accrue, or the month following the attainment of age 65
55 or following the five-year anniversary of the effective date of the
disability benefit, whichever is later.
EFFECTIVE DATE.�
This section is effective July 1, 2009, and applies to disability
benefit applicants whose last day of public employment was after June 30, 2009.
Sec. 23.� Minnesota Statutes 2008, section 352B.11,
subdivision 2, is amended to read:
Subd. 2.� Death;
payment to dependent children; family maximums.� (a) Each dependent child, as defined
in section 352B.01, subdivision 10 352B.011, subdivision 6, is
entitled to receive a monthly annuity equal to ten percent of the average
monthly salary of the deceased member.
(b) A dependent child over 18 and under
23 years of age also may receive the monthly benefit provided in this section if
the child is continuously attending an accredited school as a full-time student
during the normal school year as determined by the director.� If the child does not continuously attend
school, but separates from full-time attendance during any part of a school
year, the annuity must cease at the end of the month of separation.
(c) In addition, a payment of $20 per
month must be prorated equally to the surviving dependent children when the
former member is survived by more than one dependent child.
(d) Payments for the benefit of any
dependent child must be made to the surviving spouse, or if there is none, to
the legal guardian of the child.
(e) The monthly benefit for any one
family, including a surviving spouse benefit, if applicable, must not be less
than 50 percent nor exceed 70 percent of the average monthly salary of the
deceased member.�
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 24.� REPEALER.�
Minnesota
Statutes 2008, section 352B.01, subdivisions 1, 2, 3, 3b, 4, 6, 7, 9, 10, and
11, are repealed.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
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ARTICLE 3
STATE CORRECTIONAL RETIREMENT PLAN
MEMBERSHIP CHANGES
Section 1.�
Minnesota Statutes 2008, section 352.91, subdivision 3d, is amended to
read:
Subd. 3d.� Other correctional personnel.� (a) "Covered correctional service"
means service by a state employee in one of the employment positions at a
correctional facility or at the Minnesota Security Hospital specified in
paragraph (b) if at least 75 percent of the employee's working time is spent in
direct contact with inmates or patients and the fact of this direct contact is
certified to the executive director by the appropriate commissioner.
(b) The employment positions are:
(1) automotive mechanic;
(2) baker;
(2) (3) central
services administrative specialist, intermediate;
(3) (4) central
services administrative specialist, principal;
(4) (5) chaplain;
(5) (6) chief
cook;
(6) (7) cook;
(7) (8) cook
coordinator;
(8) (9) corrections
program therapist 1;
(9) (10) corrections
program therapist 2;
(10) (11)
corrections program therapist 3;
(11) (12)
corrections program therapist 4;
(12) (13)
corrections inmate program coordinator;
(13) (14)
corrections transitions program coordinator;
(14) (15)
corrections security caseworker;
(15) (16)
corrections security caseworker career;
(16) (17)
corrections teaching assistant;
(17) (18)
delivery van driver;
(18) (19)
dentist;
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(19) (20) electrician supervisor;
(20) (21) general maintenance
worker lead;
(21) (22) general repair worker;
(22) (23) library/information
research services specialist;
(23) (24) library/information
research services specialist senior;
(24) (25) library technician;
(25) (26) painter lead;
(26) (27) plant maintenance
engineer lead;
(27) (28) plumber supervisor;
(28) (29) psychologist 1;
(29) (30) psychologist 3;
(30) (31) recreation therapist;
(31) (32) recreation therapist
coordinator;
(32) (33) recreation program assistant;
(33) (34) recreation therapist
senior;
(34) (35) sports medicine
specialist;
(35) (36) work therapy assistant;
(36) (37) work therapy program
coordinator; and
(37) (38) work therapy technician.
EFFECTIVE DATE.�
This section is effective retroactively from May 29, 2007.
Sec. 2.� MSRS-CORRECTIONAL;
ELIMINATION OF CERTAIN POSITION FROM COVERAGE.�
Notwithstanding
any provision of Minnesota Statutes, section 352.91, to the contrary, including
Minnesota Statutes, section 352.91, subdivision 2, "covered correctional
service" does not mean service rendered by a state employee as an
automotive mechanic lead.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
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ARTICLE 4
ADMINISTRATIVE
PROVISIONS
Section 1.� Minnesota Statutes 2008, section 43A.346,
subdivision 2, is amended to read:
Subd. 2.� Eligibility.� (a) This section applies to a terminated
state employee who:
(1) for at
least the five years immediately preceding separation under clause (2), was
regularly scheduled to work 1,044 or more hours per year in a position covered
by a pension plan administered by the Minnesota State Retirement System or the
Public Employees Retirement Association;
(2) terminated
state or Metropolitan Council employment;
(3) at the time
of termination under clause (2), met the age and service requirements necessary
to receive an unreduced retirement annuity from the plan and satisfied requirements
for the commencement of the retirement annuity or, for a terminated employee
under the unclassified employees retirement plan, met the age and service
requirements necessary to receive an unreduced retirement annuity from the plan
and satisfied requirements for the commencement of the retirement annuity or
elected a lump-sum payment; and
(4) agrees to
accept a postretirement option position with the same or a different appointing
authority, working a reduced schedule that is both (i) a reduction of at least
25 percent from the employee's number of previously regularly scheduled work
hours; and (ii) 1,044 hours or less in state or Metropolitan Council service.
(b) For
purposes of this section, an unreduced retirement annuity includes a retirement
annuity computed under a provision of law which permits retirement, without
application of an earlier retirement reduction factor, whenever age plus years
of allowable service total at least 90.
(c) For
purposes of this section, as it applies to staff state employees who
are members of the Public Employees Retirement Association who are at least
age 62, the length of separation requirement and termination of service
requirement prohibiting return to work agreements under section 353.01,
subdivisions 11a and 28, are not applicable.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 2.� Minnesota Statutes 2008, section 43A.346,
subdivision 6, is amended to read:
Subd. 6.� Duration.� Postretirement option employment shall be
is for an initial period not to exceed one year.� During that period, the appointing authority
may not modify the conditions specified in the written offer without the
person's consent, except as required by law or by the collective bargaining
agreement or compensation plan applicable to the person.� At the end of the initial period, the
appointing authority has sole discretion to determine if the offer of a
postretirement option position will be renewed, renewed with modifications, or
terminated.� If the person is under
age 62, an offer of renewal and any related verbal offer or agreement must not
be made until at least 30 days after termination of the person's previous
postretirement option employment.� Postretirement
option employment may be renewed for periods of up to one year, not to exceed a
total duration of five years.� No person shall
may be employed in one or a combination of postretirement option positions
under this section for a total of more than five years.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
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Sec. 3.� Minnesota Statutes 2008, section 352B.02,
subdivision 1a, is amended to read:
Subd. 1a.� Member
contributions.� (a) Each The
member shall pay a sum equal to the following contribution is
10.40 percent of the member's salary, which constitutes the member contribution
to the fund:.
����������������������������������������� before
July 1, 2007������������������������������������������������������������ 8.40
����������������������������������������� from
July 1, 2007, to June 30, 2008������������������������������� 9.10
����������������������������������������� from
July 1, 2008, to June 30, 2009������������������������������� 9.80
����������������������������������������� from
July 1, 2009, and thereafter����������������������������������� 10.40.
(b)
These contributions must be made by deduction from salary as provided in
section 352.04, subdivision 4.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
4.� Minnesota Statutes 2008, section
352B.02, subdivision 1c, is amended to read:
Subd.
1c.� Employer
contributions.� (a) In addition to
member contributions, department heads shall pay a sum equal to the
following 15.60 percent of the salary upon which deductions were
made, which shall constitute constitutes the employer
contribution to the fund:.
����������������������������������������� before
July 1, 2007������������������������������������������������������������ 12.60
����������������������������������������� from
July 1, 2007, to June 30, 2008������������������������������� 13.60
����������������������������������������� from
July 1, 2008, to June 30, 2009������������������������������� 14.60
����������������������������������������� from
July 1, 2009, and thereafter����������������������������������� 15.60.
(b)
Department contributions must be paid out of money appropriated to departments
for this purpose.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
5.� Minnesota Statutes 2008, 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 section sections
353.27, subdivision 12, and 353.35;
(2) (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;
(3) (4) a period of authorized
leave of absence with pay from which deductions for employee contributions are
made, deposited, and credited to the fund;
(4) (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;
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(5) (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 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 20 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;
(6) (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; oder
(7) (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 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 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 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 20
30 days after termination of public service under subdivision 11a.� If the member equivalent contributions
provided for in this clause are not paid in full, the member's allowable
service credit must be prorated by multiplying the full and fractional number
of years of uniformed service eligible for purchase by the ratio obtained by
dividing the total member contributions received by the total member
contributions otherwise required under this clause.� The equivalent employer contribution, and, if
applicable, the equivalent additional employer contribution must be paid by the
governmental subdivision employing the member if the member makes the
equivalent employee contributions.� The
employer payments must be made from funds available to the employing unit,
using the employer and additional employer contribution rate or rates in effect
at the time that the uniformed service was performed, applied to the same
annual salary rate or rates used to compute the equivalent member
contribution.� The governmental
subdivision involved may appropriate money for those payments.� The amount of service credit 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
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(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
353.01, subdivision 16b, is amended to read:
Subd.
16b.� Uncredited military service credit purchase.� (a) A public employee who has at least three
years of allowable service with the Public Employees Retirement Association or
the public employees police and fire plan and who performed service in the
United States armed forces before becoming a public employee, or who failed to
obtain service credit for a military leave of absence under subdivision 16,
paragraph (h) (a), clause 7, is entitled to purchase allowable
service credit for the initial period of enlistment, induction, or call to
active duty without any voluntary extension by making payment under section
356.551.� This authority is voided
if the public employee has not purchased service credit from any other
Minnesota defined benefit public employee pension plan, other than a
volunteer fire plan, for the same period of service, or if the
separation from the United States armed forces was under less than honorable
conditions.
(b)
A public employee who desires to purchase service credit under paragraph (a)
must apply with the executive director to make the purchase.� The application must include all necessary
documentation of the public employee's qualifications to make the purchase,
signed written permission to allow the executive director to request and
receive necessary verification of applicable facts and eligibility
requirements, and any other relevant information that the executive director
may require.
(c)
Allowable service credit for the purchase period must be granted by the Public
Employees Retirement Association or the public employees police and fire plan,
whichever applies, to the purchasing public employee upon receipt of the
purchase payment amount. �Payment must be
made before the effective date of retirement of the public employee
employee's termination of public service or termination of membership,
whichever is earlier.
(d)
This subdivision is repealed July 1, 2013.
EFFECTIVE DATE.�
This section is effective the day after final enactment.
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Sec.
7.� Minnesota Statutes 2008, section
353.0161, subdivision 1, is amended to read:
Subdivision
1.� Application.� This section applies to employees covered by
any plan specified in this chapter or chapter 353E for any period of authorized
leave of absence specified in section 353.01, subdivision 16, paragraph (a),
clause (4) (5), for which the employee obtains credit for
allowable service by making payment as specified in this section to the
applicable fund.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec.
8.� Minnesota Statutes 2008, section
353.03, subdivision 3a, is amended to read:
Subd.
3a.� Executive
director.� (a) Appointment.� The board shall
appoint an executive director on the basis of education, experience in the
retirement field, and leadership ability. �The executive director must have had at least
five years' experience in an executive level management position, which has
included responsibility for pensions, deferred compensation, or employee
benefits.� The executive director serves
at the pleasure of the board.� The salary
of the executive director is as provided by section 15A.0815.
(b)
Duties.�
The management of the association is vested in the executive
director who shall be the executive and administrative head of the
association.� The executive director
shall act as adviser to the board on all matters pertaining to the association
and shall also act as the secretary of the board.� The executive director shall:
(1)
attend all meetings of the board;
(2)
prepare and recommend to the board appropriate rules to carry out the
provisions of this chapter;
(3)
establish and maintain an adequate system of records and accounts following
recognized accounting principles and controls;
(4)
designate, with the approval of the board, up to two persons who may serve in
the unclassified service and whose salaries are set in accordance with section
43A.18, subdivision 3, appoint a confidential secretary in the unclassified
service, and appoint employees to carry out this chapter, who are subject to
chapters 43A and 179A in the same manner as are executive branch employees;
(5)
organize the work of the association as the director deems necessary to fulfill
the functions of the association, and define the duties of its employees and
delegate to them any powers or duties, subject to the control of, and under
such conditions as, the executive director may prescribe;
(6)
with the approval of the board, contract for the services of an approved
actuary, professional management services, and any other consulting services as
necessary to fulfill the purposes of this chapter.� All contracts are subject to chapter
16C.� The commissioner of administration
shall not approve, and the association shall not enter into, any contract to
provide lobbying services or legislative advocacy of any kind.� Any approved actuary retained by the
executive director shall function as the actuarial advisor of the board and the
executive director and may perform actuarial valuations and experience
studies to supplement those performed by the actuary retained .� In addition to filing requirements under
section 356.214., any supplemental actuarial valuations or
experience studies shall be filed with the executive director of the Legislative
Commission on Pensions and Retirement.�
Copies of professional management survey reports shall be transmitted to
the secretary of the senate, the chief clerk of the house of representatives,
and the Legislative Reference Library as provided by section 3.195, and to the
executive director of the commission at the same time as reports are furnished
to the board.� Only management firms
experienced in conducting management surveys of federal, state, or local public
retirement systems shall be qualified to contract with the director hereunder;
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(7)
with the approval of the board provide in-service training for the employees of
the association;
(8)
make refunds of accumulated contributions to former members and to the
designated beneficiary, surviving spouse, legal representative or next of kin
of deceased members or deceased former members, as provided in this chapter;
(9)
determine the amount of the annuities and disability benefits of members
covered by the association and authorize payment of the annuities and benefits
beginning as of the dates on which the annuities and benefits begin to accrue,
in accordance with the provisions of this chapter;
(10)
pay annuities, refunds, survivor benefits, salaries, and necessary operating
expenses of the association;
(11)
prepare and submit to the board and the legislature an annual financial report
covering the operation of the association, as required by section 356.20;
(12)
prepare and submit biennial and annual budgets to the board for its approval
and submit the approved budgets to the Department of Finance for approval by
the commissioner;
(13)
reduce all or part of the accrued interest payable under section 353.27,
subdivisions 12, 12a, and 12b, or 353.28, subdivision 5, upon receipt of proof
by the association of an unreasonable processing delay or other extenuating
circumstances of the employing unit; and notwithstanding section 353.27,
subdivision 7, may waive the payment of accrued interest to the member if a
credit has been taken by the employer to correct an employee deduction taken in
error and if the accrued interest is $10 or less.� The executive director shall prescribe and
submit for approval by the board the conditions under which such interest may
be reduced; and
(14)
with the approval of the board, perform such other duties as may be required for
the administration of the association and the other provisions of this chapter
and for the transaction of its business.
EFFECTIVE DATE.�
This section is effective the day after final enactment.
Sec.
9.� Minnesota Statutes 2008, section
353.27, subdivision 2, is amended to read:
Subd.
2.� Employee
contribution.� (a) For a basic
member, the employee contribution is the following applicable percentage
of the total 9.10 percent of salary amount for a "basic
member" and.� For a "coordinated
member":� coordinated member,
the employee contribution is six percent of salary plus any contribution rate
adjustment under subdivision 3b.
������������������������������������������������������������������������� Basic
Program��������������������� Coordinated
Program
Effective
before January 1, 2006������������� 9.10��������������������������������������� 5.10
Effective
January 1, 2006�������������������������� 9.10��������������������������������������� 5.50
Effective
January 1, 2007�������������������������� 9.10��������������������������������������� 5.75
Effective
January 1, 2008�������������������������� 9.10��������������������������������������� 6.00
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.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
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Sec. 10.� Minnesota Statutes 2008, section 353.27,
subdivision 3, is amended to read:
Subd. 3.� Employer
contribution.� (a) For a basic
member, the employer contribution is the following applicable percentage
of the total 9.10 percent of salary amount for "basic
members" and.� For "coordinated
members":� a coordinated
member, the employer contribution is six percent of salary plus any
contribution rate adjustment under subdivision 3b.
������������������������������������������������������������������������� Basic
Program��������������������� Coordinated
Program
Effective
before January 1, 2006������������� 9.10��������������������������������������� 5.10
Effective
January 1, 2006�������������������������� 9.10��������������������������������������� 5.50
Effective
January 1, 2007�������������������������� 9.10��������������������������������������� 5.75
Effective
January 1, 2008�������������������������� 9.10��������������������������������������� 6.00
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.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 11.� Minnesota Statutes 2008, 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 (d) (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 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, are invalid upon discovery by
the association and must be refunded made as specified in
paragraph (d) (e).� The period
of adjustment must be limited to the fiscal year in which the error is
discovered by the association and the immediate two preceding fiscal years.
(d) If there is evidence of fraud or
other misconduct on the part of the employee or the employer, the board of
trustees may authorize adjustments to the account of a member or former member
to correct erroneous employee deductions and employer contributions on invalid
salary and the recovery of any overpayments for a period longer than provided
for under paragraph (c).
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(d) (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 either must refund :
(1) for a member, provide a refund or
credit to the employer in the amount of the invalid employee deductions to the person without
interest and 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 or provide by
providing a credit against future contributions payable by the employer for
the amount of all erroneous deductions and contributions.� 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.� In the event that a retirement
annuity or disability benefit has been computed using invalid service or
salary, the association must adjust the annuity or benefit and recover any
overpayment under subdivision 7b.
(e) (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.
(f) Any refund to a member under this
subdivision 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, may not be refunded and instead must be credited against future
contributions payable by the employer.�
The employer receiving the credit is responsible for refunding to the
applicable employee any amount that had been erroneously deducted from the
person's salary.
(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.�
(a) This section is effective the day following enactment.
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(b) The interest required on
deductions in error as provided in paragraph (e) must be applied to any refunds
paid on or after June 1, 2009.
Sec. 12.� Minnesota Statutes 2008, section 353.27,
subdivision 7b, is amended to read:
Subd. 7b.� Recovery
of overpayments to members.�
(a) In the event of an overpayment to a member, retiree,
beneficiary, or other person, the executive director shall recover the
overpayment by suspending or reducing the payment of a retirement annuity,
refund, disability benefit, survivor benefit, or optional annuity payable to
the applicable person or the person's estate, whichever applies, under this
chapter until all outstanding money has been recovered determines that
an overpaid annuity or benefit that 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.
(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.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 13.� Minnesota Statutes 2008, section 353.33,
subdivision 1, is amended to read:
Subdivision 1.� Age,
service, and salary requirements.� A
coordinated or basic member who has at least three years of allowable
service and becomes totally and permanently disabled before normal retirement
age, and a basic member who has at least three years of allowable service
and who becomes totally and permanently disabled, upon application as
defined under section 353.031, is entitled to a disability benefit in an amount
determined under subdivision 3.� If the disabled
person's public service has terminated at any time, at least two of the
required three years of allowable service must have been rendered after last
becoming an active member.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 14.� Minnesota Statutes 2008, section 353.33, is
amended by adding a subdivision to read:
Subd. 1a.�
Benefit restriction.� No person is entitled to receive
disability benefits and a retirement annuity at the same time.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
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Sec. 15.� Minnesota Statutes 2008, section 353.33,
subdivision 11, is amended to read:
Subd. 11.� Coordinated
member disabilitant transfer to retirement status.� No person is entitled to receive
disability benefits and a retirement annuity at the same time.� The disability benefits paid to a coordinated
member must terminate when the person reaches normal retirement age.� If the coordinated member is still totally
and permanently disabled upon attaining normal retirement age, the coordinated
member is deemed to be on retirement status.�
If an optional annuity is elected under subdivision 3a, the coordinated
member shall receive an annuity under the terms of the optional annuity
previously elected, or, if an optional annuity is not elected under subdivision
3a, the coordinated member may elect to receive a normal retirement annuity
under section 353.29 or an annuity equal to the disability benefit paid before
the coordinated member reaches normal retirement age, whichever amount is
greater, or elect to receive an optional annuity under section 353.30, subdivision
3.� The annuity of a disabled coordinated
member who attains normal retirement age must be computed under the law in
effect upon attainment of normal retirement age.� Election of an optional annuity must be made
before the coordinated member attains normal retirement age.� If an optional annuity is elected, the
election is effective on the date on which the person attains normal retirement
age and the optional annuity begins to accrue on the first day of the month
next following the month in which the person attains that age.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 16.� Minnesota Statutes 2008, section 353.33,
subdivision 12, is amended to read:
Subd. 12.� Basic disability
disabilitant transfer to retirement status; survivor benefits.� (a) If a basic member who is receiving
a disability benefit under subdivision 3:
(1) dies before attaining age 65 or within five years of
the effective date of the disability, whichever is later, the surviving spouse
is entitled to receive a survivor benefit under section 353.31, unless and
any dependent child or children are entitled to dependent child benefits under
section 353.31, subdivision 1b, paragraph (b).�
If there are no dependent children, in lieu of the survivor benefit
specified under section 353.31, the surviving spouse elected may
elect to receive a refund under section 353.32, subdivision 1;.
(2) (b) If a basic member who is receiving a
disability benefit under subdivision 3 is living at age 65 or five years
after the effective date of the disability, whichever is later, the basic
member may continue to receive a normal retirement annuity equal to
the disability benefit previously received, adjusted for the amount no
longer payable under subdivision 3, paragraph (b), or the person may elect
a joint and survivor optional annuity under section 353.31, subdivision
1b.� The election of the joint and
survivor optional annuity must occur within 90 days of attaining age 65 or of
reaching the five-year anniversary of the effective date of the disability
benefit, whichever is later.� The
optional annuity takes effect on the first day of the month following the month
in which the person attains age 65 or reaches the five-year anniversary of the
effective date of the disability benefit, whichever is later; or.
(3) if there is a dependent child or
children under clause (1) or (2), the dependent child is entitled to a
dependent child benefit under section 353.31, subdivision 1b, paragraph (b).
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 17.� Minnesota Statutes 2008, section 353.65,
subdivision 2, is amended to read:
Subd. 2.� Employee
contribution rate.� (a)
The employee contribution is an amount equal to the 9.4 percent
of the total salary of the member specified in paragraph (b).� 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.
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(b) For calendar year 2006, the employee contribution
rate is 7.0 percent.� For calendar year
2007, the employee contribution rate is 7.8 percent.� For calendar year 2008, the employee contribution
rate is 8.6 percent.� For calendar year
2009 and thereafter, the employee contribution rate is 9.4 percent.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 18.�
Minnesota Statutes 2008, section 353.65, subdivision 3, is amended to
read:
Subd. 3.� Employer contribution rate.� (a) The employer contribution shall
be an amount equal to the is 14.1 percent of the total salary
of every the member as specified in paragraph (b).� This contribution shall must be
made from funds available to the employing subdivision by the means and in the
manner provided in section 353.28.
(b) For calendar year 2006, the employer contribution
rate is 10.5 percent.� For calendar year
2007, the employer contribution rate is 11.7 percent.� For calendar year 2008, the employer
contribution rate is 12.9 percent.� For
calendar year 2009 and thereafter, the employer contribution rate is 14.1
percent.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 19.�
Minnesota Statutes 2008, section 353A.08, subdivision 6a, is amended to
read:
Subd. 6a.� Military service contribution and refund.� A person who was an active member of a local
police or firefighters relief association upon its consolidation with the
public employees retirement association, and who was otherwise eligible for
automatic service credit for military service under Minnesota Statutes 2000,
section 423.57, and who has not elected the type of benefit coverage provided
by the public employees police and fire fund at the time of consolidation, must
make employee contributions under section 353.01, subdivision 16, paragraph (h)
(a), clause (8), to receive allowable service credit from the association
for a military service leave after the effective date of the
consolidation.� A person who later
elects, under subdivision 3, to retain benefit coverage under the bylaws of the
local relief association is eligible for a refund from the association at the
time of retirement.� The association
shall refund the employee contributions plus interest at the rate of six
percent, compounded quarterly, from the date on which contributions were made
until the first day of the month in which the refund is paid.� The employer shall receive a refund of the
employer contributions.� The association
shall not pay a refund to a person who later elects, under subdivision 3, the
type of benefit coverage provided by the public employees police and fire fund
or to the person's employer.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 20.�
Minnesota Statutes 2008, 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) Clearwater County Memorial Hospital doing business
as Clearwater Health Services in Bagley;
(4) the Dassel Lakeside Community Home;
(5) the Fair Oaks Lodge, Wadena;
(6) the Glencoe Area Health Center;
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(7) Hutchinson Area Health Care;
(8) the Lakefield Nursing Home;
(9) the Lakeview Nursing Home in
Gaylord;
(10) the Luverne Public Hospital;
(11) the Oakland Park Nursing Home;
(12) the RenVilla Nursing Home;
(13) the Rice Memorial Hospital in
Willmar, with respect to the Department of Radiology and the Department of
Radiation/Oncology;
(14) the St. Peter Community Health
Care Center;
(15) the Waconia-Ridgeview Medical
Center; and
(16) the Weiner Memorial Medical
Center, Inc.; and
(17) the Worthington Regional Hospital.
EFFECTIVE DATE.�
This section is effective upon compliance with Minnesota Statutes,
section 353F.02, subdivision 3.
Sec. 21.� Minnesota Statutes 2008, section 354.05, is
amended by adding a subdivision to read:
Subd. 42.�
Fiscal year.� The fiscal year of the association begins
on July 1 of each calendar year and ends on June 30 of the following calendar
year.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 22.� Minnesota Statutes 2008, 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 an amount equal to the
following percentage 9.0 percent of the member's salary of
a member:.� For a coordinated
member, the employee contribution is 5.5 percent of the member's salary.
(1) after July 1, 2006, for a teacher
employed by Special School District No. 1, Minneapolis, 5.5 percent if the
teacher is a coordinated member, and 9.0 percent if the teacher is a basic
member;
(2) for every other teacher, after
July 1, 2006, 5.5 percent if the teacher is a coordinated member and 9.0
percent if the teacher is a basic member.
(b) 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.
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Sec. 23.� Minnesota Statutes 2008, section 354.44,
subdivision 4, is amended to read:
Subd. 4.� Retirement
annuity accrual date.� (a) An annuity
payment begins to accrue, provided that the age and service requirements under
subdivision 1 are satisfied, after the termination of teaching service, or
after the application for retirement has been filed with the board,
whichever is later executive director, as follows:
(1) on the 16th day of after
the month of termination or filing if the termination or filing occurs
on or before the 15th day of the month of teaching service;
(2) on the first day of the month
following the month of termination or filing if the termination or filing
occurs on or after the 16th day of the month day of receipt of
application if the application is filed with the executive director after the
six-month period that occurs immediately following the termination of teaching
service;
(3) on July 1 for all school
principals and other administrators who receive a full annual contract salary
during the fiscal year for performance of a full year's contract duties; or
(4) a later date to be either the
first or the 16th day of a month occurring within the six-month period
immediately following the termination of teaching service as specified under
paragraph (b) by the member.
(b) (4) if an application for retirement is filed
with the board executive director during the six-month period
that occurs immediately following the termination of teaching service, the
annuity may begin to accrue as if the application for retirement had been filed
with the board on the date teaching service terminated or a later date under
paragraph (a), clause (4).
(b) A member, or a person authorized
to act on behalf of the member, may specify a different date of retirement from
that determined in paragraph (a), as follows:
(1) if the application is filed on or
before the date of termination of teaching service, the accrual date may be a
date no earlier than the day after the termination of teaching service and no
later than six months after the termination date; or
(2) if the application is filed
during the six-month period that occurs immediately following the termination
of teaching service, the accrual date may begin to accrue retroactively, but no
earlier than the day after teaching service terminated and no later than six
months after the termination date.
EFFECTIVE DATE.�
This section is effective January 1, 2010.
Sec. 24.� Minnesota Statutes 2008, section 354.44,
subdivision 5, is amended to read:
Subd. 5.� Resumption
of teaching service after retirement.�
(a) Any person who retired under the provisions of this chapter and has
thereafter resumed teaching in any employer unit to which this chapter applies
is eligible to continue to receive payments in accordance with the annuity
except that all or a portion of the annuity payments must be deferred during
the calendar year immediately following any calendar the fiscal year
in which the person's salary from the teaching service is in an amount greater
than $46,000.� The amount of the annuity
deferral is one-half of the salary amount in excess of $46,000 and must be
deducted from the annuity payable for the calendar year immediately following
the calendar fiscal year in which the excess amount was earned.
(b) If the person is retired for only
a fractional part of the calendar fiscal year during the initial
year of retirement, the maximum reemployment salary exempt from triggering a
deferral as specified in this subdivision must be prorated for that calendar
fiscal year.
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(c) After a person has reached the
Social Security normal retirement age, no deferral requirement is applicable
regardless of the amount of salary.
(d) The amount of the retirement
annuity deferral must be handled or disposed of as provided in section 356.47.
(e) For the purpose of this
subdivision, salary from teaching service includes, but is not limited to:
(1) all income for services performed
as a consultant or an independent contractor for an employer unit covered by
the provisions of this chapter; and
(2) the greater of either the income
received or an amount based on the rate paid with respect to an administrative
position, consultant, or independent contractor in an employer unit with
approximately the same number of pupils and at the same level as the position
occupied by the person who resumes teaching service.
EFFECTIVE DATE.�
This section is effective January 1, 2010.
Sec. 25.� Minnesota Statutes 2008, 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,
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.�
(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. 26.� Minnesota Statutes 2008, section 354.48,
subdivision 4, is amended to read:
Subd. 4.� Determination
by executive director.� (a) The
executive director shall have the member examined by at least two licensed physicians,
licensed chiropractors, or licensed psychologists selected by the medical
adviser.
(b) These physicians, chiropractors,
or psychologists with respect to a mental impairment, shall make written
reports to the executive director concerning the member's disability, including
expert opinions as to whether or not the member is permanently and totally
disabled within the meaning of section 354.05, subdivision 14.
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(c) The executive director shall also
obtain written certification from the last employer stating whether or not the
member was separated from service because of a disability which would reasonably
prevent further service to the employer and as a consequence the member is not
entitled to compensation from the employer.
(d) If, upon the consideration of the
reports of the physicians, chiropractors, or psychologists and any other
evidence presented by the member or by others interested therein, the executive
director finds that the member is totally and permanently disabled, the
executive director shall grant the member a disability benefit.
(e) An employee who is placed on leave
of absence without compensation because of disability is not barred from
receiving a disability benefit.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 27.� Minnesota Statutes 2008, section 354.48,
subdivision 6, is amended to read:
Subd. 6.� Regular
physical examinations.� At least once
each year during the first five years following the allowance of a disability
benefit to any member, and at least once in every three-year period thereafter,
the executive director shall may require the disability beneficiary
recipient to undergo an expert examination by a physician or physicians,
by a chiropractor or chiropractors, or by one or more psychologists with
respect to a mental impairment, engaged by the executive director.� If an examination indicates that the member
is no longer permanently and totally disabled or that the member is engaged or
is able to engage in a substantial gainful occupation, payments of the
disability benefit by the association must be discontinued.� The payments must be discontinued as soon as
the member is reinstated to the payroll following sick leave, but payment may
not be made for more than 60 days after the physicians, the chiropractors, or
the psychologists engaged by the executive director find that the person is no
longer permanently and totally disabled.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 28.� Minnesota Statutes 2008, 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, shall 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.� For the purpose of this subdivision, interest
shall 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. 29.� Minnesota Statutes 2008, section 354.52,
subdivision 2a, is amended to read:
Subd. 2a.� Annual
Postretirement income reports reporting.� On or before each February 15, a
representative authorized by an Each employing unit must report to
the executive director the amount of income earned during the previous calendar
fiscal year by each retiree for teaching service performed after
retirement.� This annual report must
be shall be done through the payroll reporting system and is based
on reemployment income as defined in section 354.44, subdivision 5, and it
must be made on a form provided by the executive director.� Signing Submitting the report
salary data through payroll reporting has the force and effect of an
oath as to the correctness of the amount of postretirement reemployment income
earned.�
EFFECTIVE DATE.�
This section is effective January 1, 2010.
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Sec. 30.� Minnesota Statutes 2008, 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) the beginning and ending dates of
the payroll period covered and the date of actual payment;
(9) fiscal year of salary earnings;
(10) total remittance amount including
employee, employer, and additional employer contributions; and
(11) reemployed annuitant salary under
section 354.44, subdivision 5; and
(11) (12) other information as may be required by
the executive director.
EFFECTIVE DATE.�
This section is effective January 1, 2010.
Sec. 31.� [354.543]
PRIOR OR UNCREDITED MILITARY SERVICE CREDIT PURCHASE.�
Subdivision 1.�
Service credit purchase
authorized. �(a) If paragraph
(b) does not apply, a teacher who has at least three years of allowable service
credit with the Teachers Retirement Association and who performed service in
the United States armed forces before becoming a teacher as defined in section
354.05, subdivision 2, or who failed to obtain service credit for a military
leave of absence under the provisions of section 354.53, is entitled to
purchase allowable and formula service credit for the initial period of
enlistment, induction, or call to active duty without any voluntary extension
by making payment under section 356.551.
(b) A service credit purchase is
prohibited if:
(1) the teacher separated from service
with the United States armed forces with a dishonorable or bad conduct
discharge or under other than honorable conditions; or
(2) the teacher has purchased or
otherwise received service credit from any Minnesota defined benefit public
employee pension plan, other than a volunteer fire plan, for the same period of
service.
Subd. 2.�
Application and documentation.� A teacher who desires to purchase service
credit under subdivision 1 must apply with the executive director to make
the purchase.� The application must
include all necessary documentation of the teacher's qualifications to make the
purchase, signed written permission to allow the executive director to request
and receive necessary verification of applicable facts and eligibility
requirements, and any other relevant information that the executive director
may require.
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Subd. 3.�
Service credit grant.� Allowable and formula service credit for
the purchase period must be granted by the Teachers Retirement Association to
the purchasing teacher upon receipt of the purchase payment amount.� Payment must be made before the teacher's
termination of teaching service.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 32.� Minnesota Statutes 2008, 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.� Eligibility for an annuity under this
subdivision is governed pursuant to section 354.44, subdivision 1, or 354.60.
(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 related to that portion of for the annuity
which had accrued when the member ceased to render teaching service must be
augmented, as further specified in this subdivision, by interest 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) There shall be No augmentation is not
creditable if this the deferral period is less than three
months or if this period commences prior to deferral commenced before
July 1, 1971.� The rates of
interest used for this purpose must be five percent compounded annually
commencing July 1, 1971, until January 1, 1981, and three percent compounded
annually thereafter until January 1 of the year following the year in which the
former member attains age 55 and 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 employee after June 30, 2006.
(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 five percent interest compounded
annually until January 1, 1981, and three percent interest compounded annually
thereafter until January 1 of the year following the year in which the deferred
annuitant attains age 55.� From that date
to the effective date of retirement, the rate is five percent compounded
annually.
(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.
(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 by interest pursuant to as specified in this
subdivision.� The sum of the augmented
required reserves so determined shall be the basis for purchasing is
the present value of the deferred 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 with this fund
in the Teachers Retirement Association.
(h) If a person does not render teaching service in any
one fiscal year or more consecutive fiscal years and then resumes teaching
service, the formula percentages used from the date of the resumption of
teaching service must be those applicable to new members.
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(i) The mortality table and interest 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 assumption
under section 356.215 in effect when the member retires.� A period of uninterrupted service for the
purposes of this subdivision means a period of covered teaching service during
which the member has not been separated from active service for more than one
fiscal year.
(c) (j) In no case shall may the
annuity payable under this subdivision be less than the amount of annuity
payable pursuant to under section 354.44, subdivision 6.
(d) (k) The requirements and provisions for retirement
before normal retirement age contained in section 354.44, subdivision 6, clause
(3) or (5), shall also apply to an employee fulfilling the requirements
with a combination of service as provided in section 354.60.
(e) (l) The augmentation provided by this
subdivision applies to the benefit provided in section 354.46, subdivision 2.
(f) (m) The augmentation provided by this
subdivision shall 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.
(g) (n) The retirement annuity or disability
benefit of, or the survivor benefit payable on behalf of, a former teacher who
terminated service before July 1, 1997, which is not first payable until after
June 30, 1997, must be increased on an actuarial equivalent basis to reflect
the change in the postretirement interest rate actuarial assumption under
section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board as recommended by an
approved actuary and approved by the actuary retained under section 356.214.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 33.� Minnesota Statutes 2008, section 354A.096, is
amended to read:
354A.096 MEDICAL LEAVE.�
Any teacher in the coordinated
program of the St. Paul Teachers Retirement Fund Association or the new law
coordinated program of the Duluth Teachers Retirement Fund Association who is
on an authorized medical leave of absence and subsequently returns to teaching
service is entitled to receive allowable service credit, not to exceed one
year, for the period of leave, upon making the prescribed payment to the
fund.� This payment must include the
required employee and employer contributions at the rates specified in section
354A.12, subdivisions 1 and 2 2a, as applied to the member's
average full-time monthly salary rate on the date the leave of absence
commenced plus annual interest at the rate of 8.5 percent per year from the end
of the fiscal year during which the leave terminates to the end of the month
during which payment is made.� The member
must pay the total amount required unless the employing unit, at its option,
pays the employer contributions.� The
total amount required must be paid by the end of the fiscal year following the
fiscal year in which the leave of absence terminated or before the member
retires, whichever is earlier.� Payment
must be accompanied by a copy of the resolution or action of the employing authority
granting the leave and the employing authority, upon granting the leave, must
certify the leave to the association in a manner specified by the executive
director.� A member may not receive more
than one year of allowable service credit during any fiscal year by making
payment under this section.� A member may
not receive disability benefits under section 354A.36 and receive allowable
service credit under this section for the same period of time.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
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Sec. 34.� Minnesota Statutes 2008, section 354A.12,
subdivision 2a, is amended to read:
Subd. 2a.� Employer
regular and additional contribution rates contributions.� (a) The employing units shall make the
following employer contributions to teachers retirement fund associations:
(1) for any coordinated member of a
teachers retirement fund association in a city of the first class, the
employing unit shall pay the employer Social Security taxes;
(2) 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
��������� St.�
Paul Teachers Retirement Fund Association�������������������������� 4.50 percent
(3) (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;
(4) (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;
(5) (4) for
a coordinated member of a teachers retirement fund association in a city of the
first class, 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
��������� July 1, 1993 - June 30, 1994������������������������������������������������������������ 0.50
percent
��������� July 1, 1994 - June 30, 1995������������������������������������������������������������ 1.50
percent
��������� July 1, 1997, and thereafter������������������������������������������������������������� 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.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 35.� Minnesota Statutes 2008,
section 354A.12, is amended by adding a subdivision to read:
Subd. 6.� Adjustment
for erroneous receipts.� (a)
Adjustments to correct employer contributions and employee deductions taken in
error from amounts which are not salary under section 354A.011, subdivision 24,
must be made as specified in this section.
(b) Upon discovery of the receipt of erroneous employee deductions and
employer contributions under paragraph (a), the executive director must require
the employer to discontinue the erroneous employee deductions and erroneous
employer contributions reported on behalf of an active member.� Upon discontinuation, the executive
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director must provide for a refund or credit to the employer in the amount
of the invalid employee deductions with interest on the employee deductions at
the rate specified in section 354A.37, subdivision 3, from the received date of
each invalid salary transaction to the first day of the month in which the credit
or refund is made.� The employer must pay
the refunded employee deductions plus interest to the active member.
(c) If the individual is a former member who is not receiving a
retirement annuity or benefit and has not received a refund under section 354A.37,
subdivision 3, related to the applicable service, the executive director must
return the erroneous employee deductions to the former member through a refund
with interest at the rate specified in section 354A.37, subdivision 3, from the
received date of each invalid salary transaction to the first day of the month
in which the credit or refund is made.
(d) The executive director must 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.
EFFECTIVE DATE.�
This section is effective the day after final enactment.
Sec. 36.� Minnesota Statutes 2008,
section 354A.12, is amended by adding a subdivision to read:
Subd. 7.� Recovery
of benefit overpayments.� (a)
If the executive director discovers, within the time period specified in
subdivision 8 following the payment of a refund or the accrual date of any
retirement annuity, survivor benefit, or disability benefit, that benefit overpayment
has occurred due to using invalid service or salary, or due to any erroneous
calculation procedure, the executive director must recalculate the annuity or
benefit payable and recover any overpayment.�
The executive director shall recover the overpayment by requiring direct
repayment or by suspending or reducing the payment of a retirement annuity or
other benefit payable under this chapter to the applicable person or the
person's estate, whichever applies, until all outstanding amounts have been recovered.
(b) In the event the executive director determines that an overpaid
annuity or benefit that is the result of invalid salary included in the average
salary used to calculate the payment amount must be recovered, the executive
director must determine the amount of the employee deductions taken in error on
the invalid salary, with interest as determined under 354A.37, subdivision 3,
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.
(c) 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.
(d) Any invalid employer contributions reported on the invalid salary
must be credited against future contributions payable by the employer.
(e) 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 an optional annuity or refund is
payable, the remaining balance of the overpaid annuity or benefit must continue
to be recovered from the payment to the optional annuity beneficiary or refund
recipient.
(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.
EFFECTIVE DATE.�
This section is effective the day after final enactment.
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Sec. 37.� Minnesota Statutes 2008,
section 354A.12, is amended by adding a subdivision to read:
Subd. 8.� Additional
procedures.� (a) If paragraph (b)
does not apply, the period of adjustment under subdivisions 6 and 7 is limited
to the fiscal year in which the error is discovered by the executive director
and the immediate two preceding fiscal years.
(b) 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 specified under paragraph (a).
(c) Notwithstanding other provisions of this section, the executive
director may apply the Revenue Procedures defined in the 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 refund or overpayment.
(d) Notwithstanding other provisions of this section, interest of $10 or
less shall not be payable to a member or former member.
EFFECTIVE DATE.�
This section is effective the day after final enactment.
Sec. 38.� Minnesota Statutes 2008,
section 354A.12, is amended by adding a subdivision to read:
Subd. 9.� Employer
responsibility for fees, penalties.�
Any fees or penalties assessed by the 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 after final enactment.
Sec. 39.� Minnesota Statutes 2008,
section 354A.36, subdivision 6, is amended to read:
Subd. 6.� Requirement for regular physical examinations.� At least once each year during the first five
years following the granting of a disability benefit to a coordinated member by
the board and at least once in every three year period thereafter, the board shall
may require the disability benefit recipient to undergo an expert
examination as a condition for continued entitlement of the benefit recipient
to receive a disability benefit.� If
the board requires an examination, the expert examination must be made at
the place of residence of the disability benefit recipient or at any other
place mutually agreeable to the disability benefit recipient and the
board.� The expert examination must be
made by a physician or physicians, by a chiropractor or chiropractors, or by
one or more psychologists engaged by the board.�
The physician or physicians, the chiropractor or chiropractors, or the
psychologist or psychologists with respect to a mental impairment, conducting
the expert examination shall make a written report to the board concerning the
disability benefit recipient and the recipient's disability, including a
statement of the expert opinion of the physician, chiropractor, or psychologist
as to whether or not the member remains permanently and totally disabled within
the meaning of section 354A.011, subdivision 14.� If the board determines from consideration of
the written expert examination report of the physician, of the chiropractor, or
of the psychologist, with respect to a mental impairment, that the disability
benefit recipient is no longer permanently and totally disabled or if the board
determines that the benefit recipient is engaged or is able to engage in a
gainful occupation, unless the disability benefit recipient is partially
employed under subdivision 7, then further disability benefit payments from the
fund must be discontinued.� The
discontinuation of disability benefits must occur immediately if the disability
recipient is
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reinstated to the district payroll following sick leave and within 60
days of the determination by the board following the expert examination and
report of the physician or physicians, chiropractor or chiropractors, or psychologist
or psychologists engaged by the board that the disability benefit recipient is
no longer permanently and totally disabled within the meaning of section
354A.011, subdivision 14.�
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 40.� Minnesota Statutes 2008,
section 356.401, subdivision 2, is amended to read:
Subd. 2.� Automatic deposits.� (a) The
chief administrative officer of a covered retirement plan may remit, through an
automatic deposit system, annuity, benefit, or refund payments only to a
financial institution associated with the National Automated Clearinghouse
Association or a comparable successor organization that is trustee for a person
who is eligible to receive the annuity, benefit, or refund.
(b) Upon the request of a retiree, disabilitant, survivor, or former
member, the chief administrative officer of a covered retirement plan may remit
the annuity, benefit, or refund check payment to the applicable
financial institution for deposit in the person's individual account or the
person's joint account.� If an
overpayment of benefits is paid after the death of the annuitant or benefit
recipient, the chief administrative officer of the pension plan is authorized
to issue an administrative subpoena consistent with the requirements of section
13A.02, requiring the applicable financial institution to disclose the names of
all joint and co-owners of the account and a description of all deposits to,
and withdrawals from, the account which take place on or after the death of the
annuitant or benefit recipient.� An
overpayment to a joint account after the death of the annuitant or benefit
recipient must be repaid to the fund of the applicable covered retirement plan
by the joint tenant if the overpayment is not repaid to that fund by the
financial institution associated with the National Automated Clearinghouse
Association or its successor.� The
governing board of the covered retirement plan may prescribe the conditions
under which these payments may be made.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 41.� Minnesota Statutes 2008,
section 356.465, subdivision 1, is amended to read:
Subdivision 1.� Inclusion as recipient.� Notwithstanding
any provision to the contrary of the laws, articles of incorporation, or bylaws
governing a covered retirement plan specified in subdivision 3, A retiring
member may designate a qualified supplemental needs trust under subdivision 2
as the remainder recipient on an optional retirement annuity form for a period
not to exceed the lifetime of the beneficiary of the supplemental needs trust.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 42.� Minnesota Statutes 2008,
section 356.465, is amended by adding a subdivision to read:
Subd. 4.� Expanded
eligibility.� (a)
Notwithstanding subdivision 1, for a retirement plan specified in paragraph
(b), a designation under subdivision 1 may be made by an active, disabled,
deferred, or retiring member.
(b) The applicable plan is the Teachers Retirement Association established
under chapter 354.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 43.� Minnesota Statutes 2008, section
356.611, subdivision 3, is amended to read:
Subd. 3.� Maximum benefit limitations.�
A member's annual benefit, if necessary, must be reduced to the extent
required by section 415(b) of the federal Internal Revenue Code, as
adjusted by the United States secretary of the treasury under section 415(d) of
the Internal Revenue Code for any applicable increases in the cost of living
after the
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member's termination of employment.� For purposes of
section 415 of the federal Internal Revenue Code, the limitation year of
a pension plan covered by this section must be the fiscal year or calendar year
of that plan, whichever is applicable.� The
accrued benefit limitation described in section 415(e) of the Internal Revenue
Code must cease to be effective for limitation years beginning after December
31, 1999.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 44.�
Minnesota Statutes 2008, section 356.611, subdivision 4, is amended to
read:
Subd. 4.� Compensation.� (a) For purposes of this section,
compensation means a member's compensation actually paid or made available for
any limitation year determined as provided by including items
described in federal treasury regulation section 1.415-2(d)(10)
1.415(c)-2(b) and excluding items described in federal treasury regulation
section 1.415(c)-2(c).
(b) Compensation for any period includes:
(1) any elective deferral as defined in section
402(g)(3) of the federal Internal Revenue Code;
(2) any elective amounts that are not includable in a
member's gross income by reason of sections 125 or 457 of the federal
Internal Revenue Code; and
(3) any elective amounts that are not includable in a
member's gross income by reason of section 132(f)(4) of the federal
Internal Revenue Code.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 45.�
Minnesota Statutes 2008, section 356.635, subdivision 6, is amended to
read:
Subd. 6.� Eligible retirement plan.� (a) An "eligible retirement plan"
is:
(1) an individual retirement account under section
408(a) of the federal Internal Revenue Code;
(2) an individual retirement annuity plan under
section 408(b) of the federal Internal Revenue Code;
(3) an annuity plan under section 403(a) of the federal
Internal Revenue Code;
(4) a qualified trust plan under section 401(a) of the
federal Internal Revenue Code that accepts the distributee's eligible
rollover distribution;
(5) an annuity contract under section 403(b) of the federal
Internal Revenue Code; oder
(6) an eligible deferred compensation plan under
section 457(b) of the federal Internal Revenue Code, which is maintained
by a state or local government and which agrees to separately account for the
amounts transferred into the plan; or
(7) in the case of an eligible rollover distribution
to a nonspousal beneficiary, an individual account or annuity treated as an
inherited individual retirement account under section 402(c)(11) of the federal
Internal Revenue Code.
(b) For distributions of after-tax contributions which
are not includable in gross income, the after-tax portion may be transferred
only to an individual retirement account or annuity described in section 408(a)
or (b) of the federal Internal Revenue Code, or to a qualified defined
contribution plan described in either section 401(a) or
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403(a) of the federal Internal Revenue Code,
that agrees to separately account for the amounts transferred, including
separately accounting for the portion of the distribution which is includable
in gross income and the portion of the distribution which is not includable.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 46.�
Minnesota Statutes 2008, section 356.635, subdivision 7, is amended to
read:
Subd. 7.� Distributee.� A "distributee" is:
(1) an employee or a former employee;
(2) the surviving spouse of an employee or former
employee; oder
(3) the former spouse of the employee or former
employee who is the alternate payee under a qualified domestic relations order
as defined in section 414(p) of the federal Internal Revenue Code, or
who is a recipient of a court-ordered equitable distribution of marital
property, as provided in section 518.58.; or
(4) a nonspousal beneficiary of an employee or former
employee who qualifies for a distribution under the plan and is a designated
beneficiary as defined in section 401(a)(9)(E) of the federal Internal Revenue
Code.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 47.�
Minnesota Statutes 2008, 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 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. 48.� Laws
2006, chapter 271, article 5, section 5, as amended by Laws 2008, chapter 349,
article 5, section 36, is amended to read:
Sec. 5.� EFFECTIVE DATE.�
(a) Sections 1, 3, and 4 are effective the day
following final enactment and section 3 has effect retroactively from July 25,
2005.
(b) Section 2 with respect to the Cannon Falls
Hospital District is effective upon the latter of:
(1) the day after the governing body of the Cannon
Falls Hospital District and its chief clerical officer meet the requirements
under Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
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(2) the first day of the month following certification to the Cannon Falls
Hospital District by the executive director of the Public Employees Retirement
Association that the actuarial accrued liability of the special benefit
coverage proposed for extension to the privatized City of Cannon Falls Hospital
employees under section 1 does not exceed the actuarial gain otherwise to be
accrued by the Public Employees Retirement Association, as calculated by the
consulting actuary retained under Minnesota Statutes, section 356.214.� The cost of the actuarial calculations must
be borne by the current employer or by the entity which is the employer
following the privatization.
(c) Section 2, with respect to Clearwater County Memorial Hospital, is
effective upon the latter of:
(1) the day after the governing body of Clearwater County and its chief
clerical officer meet the requirements under Minnesota Statutes, section
645.021, subdivisions 2 and 3, except that the certificate of approval must be
filed before January 1, 2009 2010; and
(2) the first day of the month following certification to Clearwater
County by the executive director of the Public Employees Retirement Association
that the actuarial accrued liability of the special benefit coverage proposed
for extension to the privatized Clearwater Health Services employees under
section 2 does not exceed the actuarial gain otherwise to be accrued by the
Public Employees Retirement Association, as calculated by the consulting
actuary retained under Minnesota Statutes, section 356.214.� The cost of the actuarial calculations must
be borne by the current employer or by the entity which is the employer
following the privatization.
(d) Section 2 with respect to the Dassel Lakeside Community Home is
effective upon the latter of:
(1) the day after the governing body of the city of Dassel and its chief
clerical officer timely complete compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3; and
(2) the first day of the month next following certification to the Dassel
City Council by the executive director of the Public Employees Retirement
Association that the actuarial accrued liability of the special benefit
coverage proposed for extension to the privatized Dassel Lakeside Community
Home employees under section 2 does not exceed the actuarial gain otherwise to
be accrued by the Public Employees Retirement Association, as calculated by the
consulting actuary retained under Minnesota Statutes, section 356.214.� The cost of the actuarial calculations must
be borne by the city of Dassel or by the entity which is the employer following
the privatization.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 49.� CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY; CORRECTING ERRONEOUS
EMPLOYEE DEDUCTIONS, EMPLOYER CONTRIBUTIONS AND ADJUSTING OVERPAID BENEFITS.�
Subdivision 1.� Application.� Notwithstanding any provisions of
Minnesota Statutes 2008, 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 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
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.
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(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 members who are employees of the city of Duluth or who
are employees of the Duluth Airport Authority, as applicable.
(c) Refunds to former members must be mailed by the executive director of
the Public Employees Retirement Association to the former member's last known
address.
Subd. 3.� Benefit
adjustments.� (a) For a former
member who is receiving a retirement annuity or disability benefit, or for a
person receiving an optional annuity or survivor benefit, the executive
director must:
(1) adjust the annuity or benefit payment to the correct monthly benefit
amount payable by reducing the average salary under Minnesota Statutes, section
353.01, subdivision 17a, by the invalid salary amounts;
(2) determine the amount of the overpaid benefits paid from the effective
date of the annuity or benefit payment to the first of the month in which the
monthly benefit amount is corrected;
(3) calculate the amount of employee deductions taken in error on invalid salary,
including interest at the rate specified in Minnesota Statutes, section 353.34,
subdivision 2, from the date each invalid employee deduction was received
through the date the annuity or benefit is adjusted as provided under clause
(1); and
(4) determine the net amount of overpaid benefits by reducing the amount
of the overpaid annuity or benefit as determined in clause (2) by the amount of
the erroneous employee deductions with interest 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 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, 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.
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.
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Sec. 50.� APPLICATION OF PUBLIC EMPLOYEES RETIREMENT ASSOCIATION ERRONEOUS
RECEIPTS AND DISBURSEMENTS PROVISION; ELECTION.�
(a) If adjustments under Minnesota Statutes, section 353.27, subdivision
7, due to invalid salary amounts are in process as of the effective date of
this section for employees or former employees of a governmental subdivision,
the governing body of the governmental subdivision may elect to have the
statute of limitations under Minnesota Statutes, section 353.27, subdivision 7,
paragraphs (c) and (g), apply to adjustments or corrections in process as of
the effective date of Minnesota Statutes, section 353.27, subdivision 7, by a
resolution of the governing body transmitted to the Public Employees Retirement
Association executive director within 90 days after the effective date of this
section.
(b) If the governing body of the governmental subdivision declines the
treatment permitted under paragraph (a) or fails to submit a resolution in a
timely manner, the statute of limitations does not apply to adjustments or
corrections in process as of the effective date.
EFFECTIVE DATE.�
This section is effective the day after final enactment.
Sec. 51.� REPEALER.�
Minnesota Statutes 2008, sections 354.06, subdivision 6; and 354.55,
subdivision 14, are repealed.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
ARTICLE 5
LOCAL GOVERNMENT POSTRETIREMENT OPTION PROGRAM
Section 1.� Minnesota Statutes 2008,
section 353.01, subdivision 11b, is amended to read:
Subd. 11b.� Termination of membership.�
(a) "Termination of membership" means the conclusion of
membership in the association for a person who has not terminated public
service under subdivision 11a and occurs:
(1) when a person files a written election with the association to
discontinue employee deductions under section 353.27, subdivision 7, paragraph
(a), clause (1);
(2) when a city manager files a written election with the association to
discontinue employee deductions under section 353.028, subdivision 2; oder
(3) when a member transfers to a temporary position and becomes excluded
from membership under subdivision 2b, clause (4).; or
(4) when a member is approved to participate in the postretirement option
authorized under section 353.371.
(b) The termination of membership under clause clauses (3) and
(4) must be reported to the association by the governmental subdivision.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 2.� [353.371] POSTRETIREMENT OPTION.�
Subdivision 1.� Eligibility.� (a) This section applies to a basic or
coordinated member of the general employees retirement plan of the Public
Employees Retirement Association who:
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(1) for at least the five years immediately preceding separation under
clause (2), was regularly scheduled to work 1,044 or more hours per year in a
position covered by the general employees retirement plan of the Public
Employees Retirement Association;
(2) terminates membership as defined under section 353.01, subdivision
11b;
(3) at the time of termination under clause (2), was at least age 62 and
met the age and service requirements necessary to receive a retirement annuity
from the plan and satisfied requirements for the commencement of the retirement
annuity;
(4) agrees to accept a postretirement option position with the same or a
different governmental subdivision, working a reduced schedule that is both:
(i) a reduction of at least 25 percent from the employee's number of
previously regularly scheduled work hours; and
(ii) 1,044 hours or less in public; and
(5) is not eligible for participation in the state employee
postretirement option program under section 43A.346.
(b) For purposes of this section, the length of separation requirement and
termination of service requirement prohibiting return to work agreements under
section 353.01, subdivisions 11a and 28, are not applicable.
Subd. 2.� Annuity
reduction not applicable.� Notwithstanding
any law to the contrary, the provisions of section 353.37 governing annuities
of reemployed annuitants do not apply for the duration of a terminated member's
employment in a postretirement option position.
Subd. 3.� Governing
body discretion.� The
governing body of the governmental subdivision has sole discretion to determine
if and the extent to which a postretirement option position under this section
is available to a terminated member.� Any
offer of such a position must be made in writing to the person by the governing
body's designee in a manner prescribed by the executive director.
Subd. 4.� Duration.� Postretirement option employment shall 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).
Subd. 5.� Copy
to fund.� The appointing
authority shall provide the Public Employees Retirement Association with
documentation, as prescribed by the executive director, of the terms of any agreement
entered into with a member who accepts continuing employment with the
appointing authority under the terms of this section, and any subsequent
renewal agreement.
Subd. 6.� No
service credit.� Notwithstanding
any law to the contrary, a person may not earn service credit in the general
employees retirement plan of the Public Employees Retirement Association for
employment covered under this section, and employer contributions and payroll
deductions for the retirement fund must not be made based on earnings of a
person working under an agreement covered by this section.� No change may be made to a monthly annuity or
retirement allowance based on employment under this section.
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Subd. 7.� Subsequent
employment.� If a person has
been in a postretirement option position and accepts any other position in
public service beyond the period of time for which the person participated in
the postretirement option provided under this section, the person may not earn
service credit in the general employees retirement plan of the Public Employees
Retirement Association, no employer contributions or payroll deductions for the
retirement fund may be made, and the provisions of section 353.37 apply.
EFFECTIVE DATE.�
This section is effective the day following final enactment and
expires on June 30, 2011.� Individuals
must not be appointed to a postretirement option position after that date.
ARTICLE 6
TEACHER RETIREMENT BENEFIT AND FUNDING CHANGES
Section 1.� Minnesota Statutes 2008,
section 127A.50, subdivision 1, is amended to read:
Subdivision 1.� Aid adjustment.� Beginning in
fiscal year 1998 and each year thereafter, the commissioner of education shall
adjust state aid payments to school operating funds for Independent School
District No. 625 and Independent School District No. 709 by the net amount of
clauses (1) and, (2), and (5), for Special School District
No. 1 by the net amount of clauses (1), (2), and (4), and (5),
and for all other districts, including charter schools, but excluding any
education organizations that are prohibited from receiving direct state aids
under section 123A.26 or 125A.75, subdivision 7, by the net amount of clauses
(1), (2), (3), and (4), and (5):
(1) a decrease equal to each district's share of the fiscal year 1997
adjustment effected under Minnesota Statutes 1996, section 124.2139;
(2) an increase equal to one percent of the salaries paid to members of
the general plan of the Public Employees Retirement Association in fiscal year
1997, multiplied by 0.35 for fiscal year 1998 and 0.70 each year thereafter;
(3) a decrease equal to 2.34 percent of the salaries paid to members of
the Teachers Retirement Association in fiscal year 1997; and
(4) an increase equal to 0.5 percent of the salaries paid to members of
the Teachers Retirement Association in fiscal year 2007.; and
(5) an increase equal to the specified percentage of the salaries paid to
coordinated program members of the Teachers Retirement Association, to
coordinated program members of the St. Paul Teachers Retirement Fund
Association, and to members of the Duluth Teachers Retirement Fund Association
in fiscal year 2012 as follows:
fiscal
year 2012�������������������������������������������������� 0.5
percent
fiscal
year 2013�������������������������������������������������� 0.5
percent
fiscal
year 2014�������������������������������������������������� 0.5
percent
fiscal
year 2015�������������������������������������������������� 0.5
percent
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec.
2.� Minnesota Statutes 2008, section
354.05, subdivision 38, is amended to read:
Subd.
38.� Normal
retirement age.� "Normal
retirement age" means age 65 for a person who first became a member of
the association or a member of a pension fund listed in section 356.30,
subdivision 3, before July 1, 1989.� For
a person who first becomes a member of the association after June 30, 1989,
normal retirement age means the higher of age 65 or "retirement age,"
as defined in United States Code, title 42, section 416(l), as amended, but not
to exceed age 66.� For a person
with 30 years of service, normal retirement age means age 62.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
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Sec. 3.�
Minnesota Statutes 2008, section 354.42, subdivision 2, is amended to
read:
Subd. 2.� Employee.� (a) The employee contribution to the fund is
an amount equal to the following percentage of the salary of a member:
(1) after July 1, 2006, for a teacher employed by
Special School District No. 1, Minneapolis, 5.5 percent if the teacher is a
coordinated member, and 9.0 percent if the teacher is a basic member;
(2) for every other teacher, after July 1, 2006, 5.5
percent if the teacher is a coordinated member and 9.0 percent if the teacher
is a basic member.
Period������������������������������������������������������������������ Coordinated
Member�������������������������������� Basic
Member
(1) before July 1, 2011������������������������������������������������ 5.5
percent������������������������������������������� 9
percent
(2) after June 30, 2011, and before
July 1, 2012������������������������������������������������������������������� 6
percent���������������������������������������������� 9
percent
(3) after June 30, 2012, and before
July 1, 2013������������������������������������������������������������������� 6.5
percent������������������������������������������� 9
percent
(4) unless paragraph (c) applies, after
June 30, 2013, and before July 1, 2014������������������� 7
percent���������������������������������������������� 9
percent
(5) unless paragraph (c) applies, after
June 30, 2014��������������������������������������������������������������� 7.5
percent������������������������������������������� 9
percent
(b) 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.
(c) After July 1, 2012, a scheduled contribution
increase under paragraph (a), clause (4) or (5), is suspended if the most
recent actuarial valuation prepared under section 356.215 indicates that there
is no contribution deficiency when the total employee contributions, employer
contributions under subdivision 3, and direct state aid under section 354A.12
and chapter 422A are compared to the actuarial required contributions of the
retirement plan.
(b) (d) 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 July 1, 2011.
Sec. 4.�
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, and before July 1, 2011, the regular employer
contribution to the fund by Special School District No. 1, Minneapolis, is an
amount equal to 5.5 percent of salary of each coordinated member and 9.5
percent of salary of each basic member.�
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.� The regular employer
contribution to the fund by Special School District No. 1, Minneapolis, is an
amount equal to the following percentage of the salary of each teacher:
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Period������������������������������������������������������������������ Coordinated
Member�������������������������������� Basic
Member
(1)
before July 1, 2011������������������������������������������������ 5.5
percent������������������������������������������� 9.5
percent
(2)
after June 30, 2011, and before
July
1, 2012������������������������������������������������������������������� 6
percent���������������������������������������������� 9.5
percent
(3)
after June 30, 2012, and before
July
1, 2013������������������������������������������������������������������� 6.5
percent������������������������������������������� 9.5
percent
(4)
unless paragraph (d) applies, after
June
30, 2013, and before July 1, 2014������������������� 7
percent���������������������������������������������� 9.5
percent
(5)
unless paragraph (d) applies, after
June
30, 2014��������������������������������������������������������������� 7.5
percent������������������������������������������� 9.5
percent
(b)
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.
(b) (c) The employer contribution to the fund for every other employer
is an amount equal to 5.0 percent of the salary of each coordinated member and
9.0 percent 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., and before July
1, 2011.� The regular employer
contribution to the fund by every other employer is an amount equal to the
following percentage of the salary of each teacher:
Period�������������������������������������������������������������������� Coordinated
Member������������������������������ Basic
Member
(1) after June 30, 2011, and before
July
1, 2012������������������������������������������������������������������� 6
percent���������������������������������������������� 9.5
percent
(2)
after June 30, 2012, and before
July
1, 2013������������������������������������������������������������������� 6.5
percent������������������������������������������� 9.5
percent
(3)
unless paragraph (d) applies, after
June
30, 2013, and before July 1, 2014������������������� 7
percent���������������������������������������������� 9.5
percent
(4)
unless paragraph (d) applies, after
June
30, 2014��������������������������������������������������������������� 7.5
percent������������������������������������������� 9.5
percent
(d)
After July 1, 2012, a scheduled contribution increase under paragraph (a),
clause (4) or (5), and paragraph (c), clause (3) or (4), is suspended if the
most recent actuarial valuation prepared under section 356.215 indicates that
there is no contribution deficiency when the total employee contributions,
employer contributions under subdivision 3, and direct state aid under section
354A.12 and chapter 422A are compared to the actuarial required contributions
of the retirement plan.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec.
5.� Minnesota Statutes 2008, section
354.42, is amended by adding a subdivision to read:
Subd.
4b.� 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
Journal of
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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)
For purposes of this section, a contribution deficiency exists if the total
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
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.
Sec.
6.� Minnesota Statutes 2008, section
354.42, is amended by adding a subdivision to read:
Subd.
4c.� Contribution
rate revision.� Notwithstanding
the contribution rate provisions stated in plan law, the employee and employer
contribution rates must be adjusted:
(1)
if after July 1, 2014, the regular actuarial valuations of the plan under
section 356.215 indicate that there is a contribution sufficiency under
subdivision 2 equal to or greater than 0.5 percent of covered payroll for two consecutive
years, the employee and employer contribution rates for the plan must be
decreased as determined under subdivision 4 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, 2014, the regular actuarial valuations of the plan 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 employee and
employer contribution rates for the plan must be increased as determined under
subdivision 4 to a level such that no deficiency exists based on the most
recent actuarial valuation.
Sec.
7.� Minnesota Statutes 2008, section
354.42, is amended by adding a subdivision to read:
Subd.
4d.� Reporting,
commission review.� (a) The
contribution rate increase or decrease must be 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 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 for the applicable plan by more than 0.5 percent of
covered payroll, the plan 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.
(b)
No incremental adjustment may exceed 0.25 percent of payroll for either the employee
or employer contribution rates per year in which any adjustment is
implemented.� A contribution rate
adjustment under this section must not be made until at least two years have
passed since fully implementing a previous adjustment under this section.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec.
8.� Minnesota Statutes 2008, section
354.44, subdivision 6, is amended to read:
Subd.
6.� Computation
of formula program retirement annuity.�
(a) The formula retirement annuity must be computed in accordance with
the applicable provisions of the formulas stated in paragraph (b) or (d) on the
basis of each member's average salary under section 354.05, subdivision 13a,
for the period of the member's formula service credit.
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2009 - Top of Page 5523
(b) This paragraph, in conjunction with paragraph (c),
applies to a person who first became a member of the association or a member of
a pension fund listed in section 356.30, subdivision 3, before July 1, 1989,
unless paragraph (d), in conjunction with paragraph (e), produces a higher
annuity amount, in which case paragraph (d) applies.� The average salary as defined in section
354.05, subdivision 13a, multiplied by the following percentages per year of
formula service credit shall determine determines the amount of
the annuity to which the member qualifying therefor is entitled for service
rendered before July 1, 2006:
��������������������������������������������������������������������������������� Coordinated
Member�������������������������������� Basic
Member
Each year of service during first ten����������������� the percent specified in������������������������������ the percent
specified
��������������������������������������������������������������������������������� section
356.315, subdivision 1,���������������� in
section 356.315,
��������������������������������������������������������������������������������� per
year��������������������������������������������������������
subdivision 3, per year
Each year of service thereafter������������������������� the percent specified in������������������������������ the percent
specified
��������������������������������������������������������������������������������� section
356.315, subdivision 2,���������������� in
section 356.315,
��������������������������������������������������������������������������������� per
year�������������������������������������������������������� subdivision
4, per year
For service rendered on or after July 1, 2006, the
average salary as defined in section 354.05, subdivision 13a, multiplied by the
following percentages per year of service credit, determines the amount the
annuity to which the member qualifying therefor is entitled:
��������������������������������������������������������������������������������� Coordinated
Member�������������������������������� Basic
Member
Each year of service during first ten����������������� the percent specified in������������������������������ the percent
specified
��������������������������������������������������������������������������������� section
356.315, subdivision 1a,������������� in
section 356.315,
��������������������������������������������������������������������������������� per
year�������������������������������������������������������� subdivision
3, per year
Each year of service after ten years����������������� the percent specified in������������������������������ the percent
specified
�of service�������������������������������������������������������������� section
356.315, subdivision 2b, ������������ in
section 356.315,
��������������������������������������������������������������������������������� per
year�������������������������������������������������������� subdivision
4, per year
(c)(i) This paragraph applies only to a person who
first became a member of the association or a member of a pension fund listed
in section 356.30, subdivision 3, before July 1, 1989, and whose annuity is
higher when calculated under paragraph (b), in conjunction with this paragraph
than when calculated under paragraph (d), in conjunction with paragraph (e).
(ii) Where any member retires prior to normal
retirement age under a formula annuity, the member shall must be
paid a retirement annuity in an amount equal to the normal annuity provided in
paragraph (b) reduced by one-quarter of one percent for each month that the
member is under normal retirement age at the time of retirement except that for
any member who has 30 or more years of allowable service credit, the reduction shall
must be applied only for each month that the member is under age 62.
(iii) Any member whose attained age plus credited
allowable service totals 90 years is entitled, upon application, to a
retirement annuity in an amount equal to the normal annuity provided in
paragraph (b), without any reduction by reason of early retirement.
(d) This paragraph applies to a member who has become
at least 55 years old and first became a member of the association after June
30, 1989, and to any other member who has become at least 55 years old and
whose annuity amount when calculated under this paragraph and in conjunction
with paragraph (e), is higher than it is when calculated under paragraph (b),
in conjunction with paragraph (c).� For a
basic member, the average salary, as defined in section 354.05, subdivision
13a, multiplied by the percent specified by section 356.315, subdivision 4, for
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5524
each year of service for a basic member shall
determine determines the amount of the retirement annuity to which
the basic member is entitled.� The
annuity of a basic member who was a member of the former Minneapolis Teachers
Retirement Fund Association as of June 30, 2006, must be determined according
to the annuity formula under the articles of incorporation of the former
Minneapolis Teachers Retirement Fund Association in effect as of that date.� For a coordinated member, the average salary,
as defined in section 354.05, subdivision 13a, multiplied by the percent
specified in section 356.315, subdivision 2, for each year of service rendered
before July 1, 2006, and by the percent specified in section 356.315,
subdivision 2b, for each year of service rendered on or after
July 1, 2006, and before July 1, 2011, and by the percent
specified in section 356.315, subdivision 2c, for each year of service rendered
after June 30, 2011, determines the amount of the retirement annuity to
which the coordinated member is entitled.�
For a member who has 30 or more years of allowable service credit,
the person's normal retirement age is age 62 and the age 55 minimum early
reduced benefit retirement age does not apply to the person.
(e) This paragraph applies to a person who has become at
least 55 years old and first becomes a member of the association after June 30,
1989, and to any other member who has become at least 55 years old and whose
annuity is higher when calculated under paragraph (d) in conjunction with this
paragraph than when calculated under paragraph (b), in conjunction with
paragraph (c).� An employee who retires
under the formula annuity before the normal retirement age shall as
defined by section 354.05, subdivision 38, must be paid the normal annuity
provided in paragraph (d) reduced so that the reduced annuity is the actuarial
equivalent of the annuity that would be payable to the employee if the employee
deferred receipt of the annuity and the annuity amount were augmented at an
annual rate of three percent compounded annually from the day the annuity
begins to accrue until the normal retirement age 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 who has 30 or more years of
allowable service credit, the person's normal retirement age is age 62 and the
age 55 minimum early reduced benefit retirement age does not apply to the
person.
(f) No retirement annuity is payable to a former employee
with a salary that exceeds 95 percent of the governor's salary unless and until
the salary figures used in computing the highest five successive years average
salary under paragraph (a) have been audited by the Teachers Retirement
Association and determined by the executive director to comply with the
requirements and limitations of section 354.05, subdivisions 35 and 35a.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec. 9.� Minnesota
Statutes 2008, section 354A.011, subdivision 15a, is amended to read:
Subd. 15a.� Normal retirement age.� "Normal retirement age" means age
65 for a person who first became a member of the coordinated program of the
St. Paul Teachers Retirement Fund Association or the new law coordinated
program of the Duluth Teachers Retirement Fund Association or a member of a
pension fund listed in section 356.30, subdivision 3, before July 1, 1989.� For a person who first became a member of the
coordinated program of the St. Paul Teachers Retirement Fund Association or the
new law coordinated program of the Duluth Teachers Retirement Fund Association
after June 30, 1989, normal retirement age means the higher of age 65 or
retirement age, as defined in United States Code, title 42, section 416(l), as
amended, but not to exceed age 66.� For
a person with 30 years of service, normal retirement age means age 62.� For a person who is a member of the basic
program of the St. Paul Teachers Retirement Fund Association or the old law
coordinated program of the Duluth Teachers Retirement Fund Association, normal
retirement age means the age at which a teacher becomes eligible for a normal
retirement annuity computed upon meeting the age and service requirements
specified in the applicable provisions of the articles of incorporation or
bylaws of the respective teachers retirement fund association.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5525
Sec. 10.� 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 must
not be less than 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
��������������������� (1) before July 1, 2011���������������������������������������������������������������������������������������������������������� 5.5
percent
��������������������� (2) after June 30,
2011, and before July 1, 2012������������������������������������������������������������� 6
percent
��������������������� (3) after June 30,
2012, and before July 1, 2013������������������������������������������������������������� 6.5
percent
��������������������� (4) unless paragraph
(b) applies, after June 30, 2013, and before July 1, 2014��������� 7 percent
��������������������� (5) unless paragraph
(b) applies, after June 30, 2014������������������������������������������������������ 7.5
percent
St.
Paul Teachers Retirement Fund Association������������������������������������������������������������������������������������
��������������������� basic program������������������������������������������������������������������������������������������������������������������������� 8
percent
��������������������� coordinated program������������������������������������������������������������������������������������������������������������� 5.5
percent
��������������������� (6) before July 1, 2011���������������������������������������������������������������������������������������������������������� 5.5
percent
��������������������� (7) after June 30,
2011, and before July 1, 2012������������������������������������������������������������� 6
percent
��������������������� (8) after June 30,
2012, and before July 1, 2013������������������������������������������������������������� 6.5
percent
��������������������� (9) unless paragraph
(b) applies, after June 30, 2013, and before July 1, 2014��������� 7 percent
��������������������� (10) unless paragraph
(b) applies, after June 30, 2014��������������������������������������������������� 7.5
percent
(b)
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.
(c)
After July 1, 2012, a scheduled contribution increase under paragraph (a),
clause (4), (5), (9), or (10), is suspended if the most recent actuarial
valuation prepared under section 356.215 indicates that there is no
contribution deficiency when the total employee contributions, employer
contributions under subdivision 3, and direct state aid are compared to the
actuarial required contributions of the retirement plan.
(d)
Contributions shall
must be made by deduction from salary and must be remitted directly to the
respective teachers retirement fund association at least once each month.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5526
Sec.
11.� Minnesota Statutes 2008, section
354A.12, subdivision 2a, is amended to read:
Subd.
2a.� Employer
regular and additional contribution rates.�
(a) The employing units shall make the following employer contributions
to teachers retirement fund associations:
(1)
for any coordinated member of a teachers retirement fund association in a city
of the first class, the employing unit shall pay the employer Social Security
taxes;
(2)
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
����������������� (A) before July 1, 2011�������������������������������������������������������������������������������������������������������������� 4.5
percent
����������������� (B) after June 30, 2011,
and before July 1, 2012����������������������������������������������������������������� 5
percent
����������������� (C) after June 30, 2012,
and before July 1, 2013����������������������������������������������������������������� 5.5
percent
����������������� (D) unless clause (3)
applies, after June 30, 2013, and before July 1, 2014�������������������� 6 percent
����������������� (E) unless clause (3)
applies, after June 30, 2014����������������������������������������������������������������� 6.5
percent
St. Paul
Teachers Retirement Fund Association������������������������������������������������������������������������������������ 4.50
percent
����������������� (F) before July 1, 2011�������������������������������������������������������������������������������������������������������������� 4.5
percent
����������������� (G) after June 30, 2011,
and before July 1, 2012����������������������������������������������������������������� 5
percent
����������������� (H) after June 30, 2012,
and before July 1, 2013���������������������������������������������������������������� 5.5
percent
����������������� (I) unless clause (3)
applies, after June 30, 2013, and before July 1, 2014��������������������� 6 percent
����������������� (J) unless clause (3) applies,
after June 30, 2014������������������������������������������������������������������ 6.5
percent
(3) After July 1, 2012, a scheduled contribution increase under
paragraph (a), clause (2), item (D), (E), (I), or (J), is suspended if the most
recent actuarial valuation prepared under section 356.215 indicates that there
is no contribution deficiency when the total employee contributions, employer
contributions under subdivision 3, and direct state aid are compared to the
actuarial required contributions of the retirement plan;
(4) 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;
(4) (5) 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;
Journal of
the House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5527
(5) (6) for a coordinated member of a
teachers retirement fund association in a city of the first class, 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
����������������� July 1, 1993 -
June 30, 1994���������������������������������������������������������������������������������������������������� 0.50
percent
����������������� July 1, 1994 -
June 30, 1995���������������������������������������������������������������������������������������������������� 1.50
percent
����������������� July 1, 1997, and
thereafter����������������������������������������������������������������������������������������������������� 3.84
percent
(b) 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.
(c) 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) (d) 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.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec. 12.� Minnesota Statutes 2008,
section 354A.12, is amended by adding a subdivision to read:
Subd. 4a.� Determination.� (a) For purposes of this section, a
contribution sufficiency exists if, for purposes of the applicable plan, 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 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,
for the applicable plan, the total employee contributions, 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 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 July 1, 2011.
Sec. 13.� Minnesota Statutes 2008,
section 354A.12, is amended by adding a subdivision to read:
Subd. 4b. �Contribution
rate revision.� Notwithstanding
the contribution rate provisions stated in plan law, the employee and employer
contribution rates must be adjusted:
Journal of
the House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5528
(1) if after July 1, 2014, the regular actuarial valuations of the
applicable plan under section 356.215 indicate that there is a contribution sufficiency
under subdivision 2 equal to or greater than 0.5 percent of covered payroll for
two consecutive years, the employee and employer contribution rates for the
applicable plan must be decreased as determined under subdivision 4 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, 2014, the regular actuarial valuations of the
applicable plan 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 employee and employer contribution rates for the applicable plan must be
increased as determined under subdivision 4 to a level such that no deficiency
exists based on the most recent actuarial valuation.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec. 14.� Minnesota Statutes 2008,
section 354A.12, is amended by adding a subdivision to read:
Subd. 4c.� Reporting,
commission review.� (a) The contribution
rate increase or decrease must be determined by the executive director of the
Duluth Teachers Retirement Fund Association or the St. Paul Teachers Retirement
Fund Association, and 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 for the
applicable plan by more than 0.5 percent of covered payroll, the applicable
plan 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.
(b) No incremental adjustment may exceed 0.25 percent of payroll for
either the employee or employer contribution rates per year in which any
adjustment is implemented.� For an
applicable plan, a contribution rate adjustment under this section must not be
made until at least two years have passed since fully implementing a previous
adjustment under this section.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec. 15.� Minnesota Statutes 2008,
section 354A.31, subdivision 4, is amended to read:
Subd. 4.� Computation of normal coordinated retirement annuity; St. Paul fund.� (a) This subdivision applies to the
coordinated program of the St. Paul Teachers Retirement Fund Association.
(b) The normal coordinated retirement annuity is an amount equal to a
retiring coordinated member's average salary under section 354A.011,
subdivision 7a, multiplied by the retirement annuity formula percentage.
(c) This paragraph, in conjunction with subdivision 6, applies to a
person who first became a member or a member in a pension fund listed in
section 356.30, subdivision 3, before July 1, 1989, unless paragraph (d), in
conjunction with subdivision 7, produces a higher annuity amount, in which case
paragraph (d) will apply.� The
retirement annuity formula percentage for purposes of this paragraph is the
percent specified in section 356.315, subdivision 1, per year for each year of
coordinated service for the first ten years and the percent specified in
section 356.315, subdivision 2, for each year of coordinated service
thereafter. The average salary multiplied by the following retirement
annuity formula percentage per year of allowable service determines the amount
of the annuity to which the member qualifying therefor is entitled for service
rendered before July 1, 2011:
Journal of
the House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5529
Each
year of service during first ten years������������������������������ the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
1, per year
Each
year of service thereafter������������������������������������������������� the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
2, per year
For
service rendered on or after July 1, 2011, the average salary multiplied by the
following retirement annuity formula percentage per year of allowable service determines
the amount of the annuity to which the member qualifying therefor is entitled:
Each
year of service during first ten years������������������������������ the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
1a, per year
Each
year of service thereafter������������������������������������������������� the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
2b, per year
(d) This
paragraph applies to a person who has become at least 55 years old and who
first becomes a member after June 30, 1989, and to any other member who has
become at least 55 years old and whose annuity amount, when calculated under
this paragraph and in conjunction with subdivision 7 is higher than it is when
calculated under paragraph (c), in conjunction with the provisions of
subdivision 6.� The retirement annuity
formula percentage for purposes of this paragraph is the percent specified in
section 356.315, subdivision 2, for each year of coordinated service before
July 1, 2011, and by the percent specified in section 356.315, subdivision 2c,
for each year of service rendered after June 30, 2011.� For a member who has 30 or more years of
allowable service credit, the person's normal retirement age is age 62 and the
age 55 minimum early reduced benefit retirement age does not apply to
the person.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec.
16.� Minnesota Statutes 2008, section
354A.31, subdivision 4a, is amended to read:
Subd.
4a.� Computation
of normal coordinated retirement annuity; Duluth fund.� (a) This subdivision applies to the new law
coordinated program of the Duluth Teachers Retirement Fund Association.
(b) The
normal coordinated retirement annuity is an amount equal to a retiring
coordinated member's average salary under section 354A.011, subdivision 7a,
multiplied by the retirement annuity formula percentage.
(c) This
paragraph, in conjunction with subdivision 6, applies to a person who first
became a member or a member in a pension fund listed in section 356.30,
subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with
subdivision 7, produces a higher annuity amount, in which case paragraph (d)
applies.� The retirement annuity
formula percentage for purposes of this paragraph is the percent specified in
section 356.315, subdivision 1, per year for each year of coordinated service
for the first ten years and the percent specified in section 356.315,
subdivision 2, for each subsequent year of coordinated service. The
average salary multiplied by the following retirement annuity formula
percentage per year of allowable service determines the amount of the annuity
to which the member qualifying therefor is entitled for service rendered before
July 1, 2011:
Each
year of service during first ten years������������������������������ the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
1, per year
Each
year of service thereafter������������������������������������������������� the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
2, per year
Journal of
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For
service rendered on or after July 1, 2011, the average salary multiplied by the
following retirement annuity formula percentage per year of allowable service
determines the amount of the annuity to which the member qualifying therefor is
entitled:
Each
year of service during first ten years������������������������������ the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
1a, per year
Each
year of service thereafter������������������������������������������������� the
percent specified in section 356.315,
��������������������������������������������������������������������������������������������������������� subdivision
2b, per year
(d) This
paragraph applies to a person who is at least 55 years old and who first becomes
a member after June 30, 1989, and to any other member who is at least 55
years old and whose annuity amount, when calculated under this paragraph and in
conjunction with subdivision 7, is higher than it is when calculated under
paragraph (c) in conjunction with subdivision 6.� The retirement annuity formula percentage for
purposes of this paragraph is the percent specified in section 356.315,
subdivision 2, for each year of coordinated service before July 1, 2011, and
by the percent specified in section 356.315, subdivision 2c, for each year of
service rendered after June 30, 2011.�
For a member who has 30 or more years of allowable service credit, the
person's normal retirement age is age 62 and the age 55 minimum early reduced
benefit retirement age does not apply to the person.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec.
17.� Minnesota Statutes 2008, section
354A.31, subdivision 7, is amended to read:
Subd.
7.� Actuarial
reduction for early retirement.� This
subdivision applies to a person who has become at least 55 years old and first
becomes a coordinated member after June 30, 1989, and to any other coordinated
member who has become at least 55 years old and whose annuity is higher when
calculated using the retirement annuity formula percentage in subdivision 4,
paragraph (d), and subdivision 4a, paragraph (d), in conjunction with this
subdivision than when calculated under subdivision 4, paragraph (c), or
subdivision 4a, paragraph (c), in conjunction with subdivision 6.� A coordinated member who retires before the
full benefit age shall as defined by section 354A.011, subdivision
15a, must be paid the retirement annuity calculated using the retirement
annuity formula percentage in subdivision 4, paragraph (d), or subdivision 4a,
paragraph (d), reduced so that the reduced annuity is the actuarial equivalent
of the annuity that would be payable to the member if the member deferred
receipt of the annuity and the annuity amount were augmented at an annual rate
of three percent compounded annually from the day the annuity begins to accrue
until the normal retirement age if the employee became an employee before July
1, 2006, and at 2.5 percent compounded annually from the day the annuity begins
to accrue until the normal retirement age if the person initially becomes a
teacher after June 30, 2006.� For a
member who has 30 or more years of allowable service credit, the person's
normal retirement age is age 62 and the age 55 minimum early reduced benefit
retirement age does not apply to the person.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
Sec.
18.� Minnesota Statutes 2008, section
356.315, is amended by adding a subdivision to read:
Subd.
2c.� Certain
coordinated members.� The
applicable benefit accrual rate is 2.1 percent.
EFFECTIVE DATE.�
This section is effective July 1, 2011.
ARTICLE 7
MNSCU
RELATED RETIREMENT PROVISIONS
Section
1.� [136F.481]
EARLY SEPARATION INCENTIVE PROGRAM.�
Journal of
the House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5531
(a)
Notwithstanding any provision of law to the contrary, the Board of Trustees of
the Minnesota State Colleges and Universities may offer a targeted early separation
incentive program for its employees.
(b)
The early separation incentive program may include one or both of the
following:
(1)
cash incentives, not to exceed one year of base salary; or
(2) employer
contributions to the postretirement healthcare savings plan established under
section 352.98.
(c) To
be eligible to receive an incentive, an employee must be at least age 55 and
must have at least five years of employment by the Minnesota State Colleges and
Universities System.� The board of
trustees shall establish the eligibility requirements for system employees to
receive an incentive.� The board of
trustees shall file a copy of its proposed eligibility requirements with the
chairs and ranking members of the Senate Committee on Higher Education and the
Higher Education Budget and Policy Division of the Senate Committee on Finance
and with the chair and ranking members of the Higher Education and Workforce
Development Finance and Policy Division of the Finance Committee of the House
of Representatives at least 30 days before their final adoption by the board of
trustees, shall post the same document on the system website at the same time,
and shall hold a public hearing on the proposed eligibility requirements.� The type and any additional amount of the
incentive to be offered may vary by employee classification, as specified by
the board.
(d)
The president of a college or university, consistent with paragraphs (b) and
(c), may designate:
(1) specific
departments or programs at the college or university whose employees are
eligible to be offered the incentive program; or
(2)
positions at the college or university eligible to be offered the incentive
program.
(e)
The chancellor, consistent with paragraphs (b) and (c), may designate:
(1)
system office divisions whose employees are eligible to be offered the
incentive program; or
(2)
positions at the system office eligible to be offered the incentive program.
(f)
Acceptance of the offered incentive must be voluntary on the part of the
employee and must be in writing.� The
incentive may only be offered at the sole discretion of the president of the
applicable college or university.
(g) A
decision by the president of a college or university or by the chancellor not
to offer an incentive may not be challenged.
(h)
The cost of the incentive is payable by the college or university on whose
behalf the president offered the incentive or from the system office budget if
the chancellor offered the incentive.� If
a college or university is merged, the remaining cost of any early separation
incentive must be borne by the successor institution.� If a college or university is closed, the
remaining cost of any early separation incentive must be borne by the board of
trustees.
(i)
Annually, the chancellor and the president of each college or university must
report on the number and types of early separation incentives which were
offered and utilized under this section.�
The report must be filed annually with the board of trustees and with
the Legislative Reference Library on or before September 1.
EFFECTIVE DATE; SUNSET.�
This section is effective the day following final enactment and
expires June 30, 2014.
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5532
Sec.
2.� [136F.482]
APPLICATION OF OTHER LAWS.�
Unilateral
implementation of section 136F.481 by the Board of Trustees of the Minnesota
State Colleges and Universities, by the chancellor, or by a president of a
college or university is not an unfair labor practice under chapter 179A.
EFFECTIVE DATE; SUNSET.�
This section is effective the day following final enactment and
expires June 30, 2014.
Sec.
3.� Minnesota Statutes 2008, section
354B.21, subdivision 2, is amended to read:
Subd.
2.� Coverage;
election.� (a) For Eligible
persons who were employed by the former state university system or the former
community college system before May 1, 1995, the person has the retirement
coverage that the person had for employment immediately before May 1, 1995.
(b)
For all other eligible persons (a) Eligible persons who were employed by the Minnesota
State Colleges and Universities System on or after June 30, 2009, unless otherwise specified in this
section, the eligible person is are authorized to elect
prospective Teachers Retirement Association plan coverage rather than coverage
by the plan established by this chapter.�
The election of prospective Teachers Retirement Association plan
coverage shall must be made within one year of commencing
eligible Minnesota State Colleges and Universities system employment.� If an election is not made within the
specified election period due to a termination of Minnesota State Colleges and
Universities system employment, an election may be made within 90 days of
returning to eligible Minnesota State Colleges and Universities system
employment.� All elections are
irrevocable.� Prior to Before making
an election, the eligible person shall be is covered by
the plan indicated as default coverage under subdivision 3.
(b)
Except as provided in paragraph (c), a purchase of service credit in the Teachers Retirement
Association plan for any period or periods of Minnesota State Colleges and
Universities system employment occurring prior to before the
election under paragraph (b) (a) is prohibited.
(c)
Notwithstanding paragraphs (a) and (b), a faculty member who is a member of the
individual retirement account plan who first achieves tenure or its equivalent
at a Minnesota state college or university after June 30, 2009, may
elect to transfer retirement coverage under the teachers retirement plan within
one year of the faculty member achieving tenure or its equivalent at a
Minnesota state college or university.�
The faculty member electing Teachers Retirement Association coverage
under this paragraph must purchase service credit in the Teachers Retirement
Association for the entire period of time covered under the individual
retirement account plan and the purchase payment amount must be determined
under section 356.551.� The Teachers
Retirement Association may charge a faculty member transferring coverage a reasonable
fee to cover the costs associated with computing the actuarial cost of
purchasing service credit and making the transfer.� A faculty member transferring from the
individual retirement account plan to the Teachers Retirement Association may
use any balances to the credit of the faculty member in the individual
retirement account plan, any balances to the credit of the faculty member in
the higher education supplemental retirement plan established under chapter
354C, or any source specified in section 356.441, subdivision 1, to purchase
the service credit in the Teachers Retirement Association.� If the total amount of payments under this
paragraph are less than the total purchase payment amount under section 356.551,
the payment amounts must be refunded to the applicable source.� The retirement coverage transfer and service
credit purchase authority under this paragraph expires with respect to any
Minnesota State Colleges and Universities System faculty initially hired after
June 30, 2014.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
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ARTICLE 8
ST. PAUL
TEACHERS RETIREMENT FUND ASSOCIATION
POSTRETIREMENT
ADJUSTMENTS
Section
1.� Minnesota Statutes 2008, section
354A.29, subdivision 3, is amended to read:
Subd.
3.� Postretirement
adjustment.� (a) The postretirement
adjustment described in the articles and bylaws of the St. Paul Teachers
Retirement Fund Association this section must be determined by the executive
director of the St. Paul Teachers Retirement Fund Association and approved by
the board annually after June 30 using the procedures under this section.
(b) On
January 1, each eligible person who has been receiving an annuity or
benefit under the articles of incorporation, the bylaws, or this chapter for at
least 12 three calendar months as of the end of the fiscal
last day of the previous calendar year is eligible to receive a
postretirement adjustment of 2.0 percent that is payable each January 1
increase as further specified in this subdivision.
(c) A
percentage adjustment must be computed and paid under this subdivision to
eligible persons under paragraph (b).�
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 the cost-of-living
adjustment under paragraph (d), 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.
(d)
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.
(e) The
amount calculated under paragraph (d) 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.
(f) The
adjustment may not be less than zero, nor greater than five percent.
Sec.
2.� BYLAW
REVISION AUTHORIZATION.�
Consistent
with Minnesota Statutes, section 354A.12, subdivision 4, the board of the St.
Paul Teachers Retirement Fund Association shall revise the bylaws or articles of
incorporation of the teachers retirement fund association to conform with
section 1.
Sec.
3.� REPEALER.�
Minnesota
Statutes 2008, section 354A.29, subdivisions 2, 4, and 5, are repealed.
Sec.
4.� EFFECTIVE
DATE.�
Sections
1 to 3 are effective January 1, 2010, and expire June 30, 2011.
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ARTICLE 9
LOCAL
POLICE AND PAID FIRE RELIEF
ASSOCIATION
CHANGES
Section
1.� Minnesota Statutes 2008, section
69.77, subdivision 4, is amended to read:
Subd.
4.� Relief
association financial requirements; minimum municipal obligation.� (a) The officers of the relief association
shall determine the financial requirements of the relief association and
minimum obligation of the municipality for the following calendar year in
accordance with the requirements of this subdivision.� The financial requirements of the relief
association and the minimum obligation of the municipality must be determined
on or before the submission date established by the municipality under
subdivision 5.
(b) The financial
requirements of the relief association for the following calendar year must be
based on the most recent actuarial valuation or survey of the special fund of
the association if more than one fund is maintained by the association, or of
the association, if only one fund is maintained, prepared in accordance with
sections 356.215, subdivisions 4 to 15, and 356.216, as required under
subdivision 10.� If an actuarial estimate
is prepared by the actuary of the relief association as part of obtaining a modification
of the benefit plan of the relief association and the modification is
implemented, the actuarial estimate must be used in calculating the subsequent
financial requirements of the relief association.
(c) If
the relief association has an unfunded actuarial accrued liability as reported
in the most recent actuarial valuation or survey, the total of the amounts
calculated under clauses (1), (2), and (3), constitute the financial
requirements of the relief association for the following year.� If the relief association does not have an
unfunded actuarial accrued liability as reported in the most recent actuarial
valuation or survey, the amount calculated under clauses (1) and (2) constitute
the financial requirements of the relief association for the following
year.� The financial requirement elements
are:
(1) the
normal level cost requirement for the following year, expressed as a dollar
amount, which must be determined by applying the normal level cost of the
relief association as reported in the actuarial valuation or survey and
expressed as a percentage of covered payroll to the estimated covered payroll
of the active membership of the relief association, including any projected
change in the active membership, for the following year;
(2) for
the Bloomington Fire Department Relief Association, the Fairmont Police Relief
Association, and the Virginia Fire Department Relief Association, to the dollar
amount of normal cost determined under clause (1) must be added an amount equal
to the dollar amount of the administrative expenses of the special fund of the
association if more than one fund is maintained by the association, or of the
association if only one fund is maintained, for the most recent year,
multiplied by the factor of 1.035.� The
administrative expenses are those authorized under section 69.80.� No amount of administrative expenses under
this clause are to be included in the financial requirements of the Minneapolis
Firefighters Relief Association or the Minneapolis Police Relief Association;
and
(3) to
the dollar amount of normal cost and expenses determined under clauses (1) and
(2) must be added an amount equal to the level annual dollar amount which is
sufficient to amortize the unfunded actuarial accrued liability by December
31, 2010, the Fairmont Police Relief Association, the Minneapolis Firefighters
Relief Association, and the Virginia Fire Department Relief Association, by the
date determined under section 356.216, paragraph (a), clause (2), for the
Bloomington Fire Department Relief Association, and by December 31, 2020, for
the Minneapolis Police Relief Association, as determined from the actuarial
valuation or survey of the fund, using an interest assumption set at the
applicable rate specified in section 356.215, subdivision 8.� The, by that fund's amortization
date as specified in this clause applies to all local police or
salaried firefighters' relief associations and that date supersedes any
amortization date specified in any applicable special law paragraph (d).
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2009 - Top of Page 5535
(d) The Minneapolis Firefighters Relief Association
special fund amortization date is determined under section 423C.15, subdivisions
3 and 4.� The Virginia Fire Department
Relief Association special fund amortization date is December 31, 2010.� The Minneapolis Police Relief Association
special fund and the Fairmont Police Relief Association special fund
amortization date is December 31, 2020.�
The Bloomington Fire Department Relief Association special fund
amortization date is determined under section 356.216, paragraph (a), clause
(2).� The amortization date specified in
this paragraph supersedes any amortization date specified in any applicable
special law.
(d) (e) The minimum obligation of the municipality is an
amount equal to the financial requirements of the relief association reduced by
the estimated amount of member contributions from covered salary anticipated
for the following calendar year and the estimated amounts anticipated for the
following calendar year from the applicable state aid program established under
sections 69.011 to 69.051 receivable by the relief association after any
allocation made under section 69.031, subdivision 5, paragraph (b), clause (2),
or 423A.01, subdivision 2, paragraph (a), clause (6), from the local
police and salaried firefighters' relief association amortization aid program
established under section 423A.02, subdivision 1, from the supplementary
amortization state-aid program established under section 423A.02, subdivision
1a, and from the additional amortization state aid under section 423A.02,
subdivision 1b.
EFFECTIVE
DATE; LOCAL APPROVAL.� This section is effective the day after the
Fairmont City Council and the chief clerical officer of the city of Fairmont
timely complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 2.�
Minnesota Statutes 2008, section 423A.02, subdivision 1, is amended to
read:
Subdivision 1.� Amortization state aid.� (a) A municipality in which is located a
local police or salaried firefighters' relief association to which the
provisions of section 69.77, apply, that had an unfunded actuarial accrued
liability in the most recent relief association actuarial valuation, is
entitled, upon application as required by the commissioner of revenue, to
receive local police and salaried firefighters' relief association amortization
state aid if the municipality and the appropriate relief association both
comply with the applicable provisions of sections 69.031, subdivision 5,
69.051, subdivisions 1 and 3, and 69.77.�
If a municipality loses entitlement for amortization state aid in any
year because its local relief association no longer has an unfunded actuarial
accrued liability, the municipality is not entitled to amortization state aid
in any subsequent year.
(b) The total amount of amortization state aid to all
entitled municipalities must not exceed $5,055,000.
(c) Subject to the adjustment for the city of
Minneapolis provided in this paragraph, the amount of amortization state aid to
which a municipality is entitled annually is an amount equal to the level
annual dollar amount required to amortize, by December 31, 2010, the unfunded
actuarial accrued liability of the special fund of the appropriate relief
association as reported in the December 31, 1978, actuarial valuation of the
relief association prepared under sections 356.215 and 356.216, reduced by the
dollar amount required to pay the interest on the unfunded actuarial accrued
liability of the special fund of the relief association for calendar year 1981
set at the rate specified in Minnesota Statutes 1978, section 356.215,
subdivision 8.� For the city of Minneapolis,
the amortization state aid amount thus determined must be reduced by $747,232
on account of the Minneapolis Police Relief Association and by $772,768 on
account of the Minneapolis Fire Department Relief Association.� If the amortization state aid amounts
determined under this paragraph exceed the amount appropriated for this
purpose, the amortization state aid for actual allocation must be reduced pro
rata.
(d) Payment of amortization state aid to
municipalities must be made directly to the municipalities involved in three
equal installments on July 15, September 15, and November 15 annually.� Upon receipt of amortization state aid, the
municipal treasurer shall transmit the aid amount to the treasurer of the local
relief association for immediate deposit in the special fund of the relief
association.
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(e) The
commissioner of revenue shall prescribe and periodically revise the form for
and content of the application for the amortization state aid.
Sec.
3.� Minnesota Statutes 2008, 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 or 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 70 50 percent of the amounts derived under this
paragraph to the Teachers Retirement Association, ten percent to the Duluth
Teachers Retirement Fund Association, and 30 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.� The amount
required under this paragraph is appropriated annually from the general fund to
the commissioner of revenue.� If the St.
Paul Teachers Retirement Fund Association becomes fully funded, its eligibility
for this aid ceases. �Amounts remaining
in the undistributed balance account at the end of the biennium if aid
eligibility ceases cancel to the general fund.
(b) In
order to receive amortization and supplementary amortization aid under
paragraph (a), Independent School District No. 625, St. Paul, must make
contributions to the St. Paul Teachers Retirement Fund Association in
accordance with the following schedule:
����������������������������������������������������� Fiscal
Year��������������������������������������� Amount
��������������������������������������������������������� 1996��������������������������������������������������������� $0
��������������������������������������������������������� 1997��������������������������������������������������������� $0
��������������������������������������������������������� 1998�������������������������������������������� $200,000
��������������������������������������������������������� 1999�������������������������������������������� $400,000
��������������������������������������������������������� 2000�������������������������������������������� $600,000
��������������������������������������������������������� 2001
and thereafter������������������ $800,000
(c) Special School District No. 1, Minneapolis, and the
city of Minneapolis must each make contributions to the Teachers Retirement
Association in accordance with the following schedule:
������������������� Fiscal
Year���������������������������������������������� City
amount������������������������������� School
district amount
������������������������� 1996����������������������������������������������������������������� $0���������������������������������������������������������� $0
������������������������� 1997����������������������������������������������������������������� $0���������������������������������������������������������� $0
������������������������� 1998���������������������������������������������������� $250,000���������������������������������������������� $250,000
������������������������� 1999���������������������������������������������������� $400,000���������������������������������������������� $400,000
������������������������� 2000���������������������������������������������������� $550,000���������������������������������������������� $550,000
������������������������� 2001���������������������������������������������������� $700,000���������������������������������������������� $700,000
������������������������� 2002���������������������������������������������������� $850,000���������������������������������������������� $850,000
������������������������� 2003 and
thereafter���������������������� $1,000,000������������������������������������������ $1,000,000
(d) Money contributed under paragraph (a)
and either paragraph (b) or (c), as applicable, must be credited to a separate
account in the applicable teachers retirement fund and may not be used in
determining any benefit increases.� The
separate account terminates for a fund when the aid payments to the fund under
paragraph (a) cease.
(e) Thirty percent of the difference
between $5,720,000 and the current year amortization aid or 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.�
The amount required under this paragraph is appropriated annually to the
commissioner of revenue.
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Sec. 4.� Minnesota Statutes 2008, section 423C.03,
subdivision 1, is amended to read:
Subdivision 1.� Board
composition and elections.� The board
shall consist of two persons appointed by the city and ten the number
of other members specified in the association bylaws, but not to exceed
ten, who must be selected by the members.�
Elections for active and retired positions on the board shall be
conducted pursuant to the association's bylaws.
EFFECTIVE DATE.� This section is
effective the day following final enactment.
ARTICLE 10
VOLUNTARY STATEWIDE LUMP SUM VOLUNTEER
FIREFIGHTER RETIREMENT PLAN
Section 1.� Minnesota Statutes 2008, section 11A.17,
subdivision 1, is amended to read:
Subdivision 1.� Purpose;
accounts; continuation.� (a) The
purpose of the supplemental investment fund is to provide an investment vehicle
for the assets of various public retirement plans and funds.
(b) The fund consists of seven eight investment
accounts:� an income share account, a
growth share account, an international share account, a money market account, a
fixed interest account, a bond market account, and a common stock index
account, and a volunteer firefighter account.
(c) The supplemental investment fund is a continuation of
the supplemental retirement fund in existence on January 1, 1980.
Sec. 2.� Minnesota Statutes 2008, section 11A.17,
subdivision 2, is amended to read:
Subd. 2.� Assets.� (a) The assets of the supplemental
investment fund shall consist of the money certified and transmitted to
the state board from the participating public retirement plans and funds or
from the board of the Minnesota State Colleges and Universities under section
136F.45 and from the voluntary statewide lump-sum volunteer firefighter
retirement plan under section 353G.08.
(b) With the exception of the assets
of the voluntary statewide lump-sum volunteer firefighter retirement fund, the assets must be used to purchase
investment shares in the investment accounts as specified by the plan or
fund.� The assets of the voluntary
statewide lump-sum volunteer firefighter retirement fund must be invested in
the volunteer firefighter account.
(c) These accounts must be valued at least on a monthly
basis but may be valued more frequently as determined by the State Board of
Investment.�
Sec. 3.� Minnesota Statutes 2008, section 69.011,
subdivision 1, is amended to read:
Subdivision 1.� Definitions.� Unless the language or context clearly indicates
that a different meaning is intended, the following words and terms shall,
for the purposes of this chapter and chapters 423, 423A, 424 and 424A,
have the meanings ascribed to them:
(a) "Commissioner" means the
commissioner of revenue.
(b) "Municipality" means:
(1) a home rule charter or statutory
city;
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2009 - Top of Page 5538
(2) an organized town;
(3) a park district subject to chapter 398;
(4) the University of Minnesota;
(5) for purposes of the fire state aid program only,
an American Indian tribal government entity located within a federally
recognized American Indian reservation;
(6) for purposes of the police state aid program only,
an American Indian tribal government with a tribal police department which
exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
(7) for purposes of the police state aid program only,
the Metropolitan Airports Commission with respect to peace officers covered
under chapter 422A; and
(8) for purposes of the police state aid program only,
the Department of Natural Resources and the Department of Public Safety with
respect to peace officers covered under chapter 352B.
(c) "Minnesota Firetown Premium Report"
means a form prescribed by the commissioner containing space for reporting by
insurers of fire, lightning, sprinkler leakage and extended coverage premiums
received upon risks located or to be performed in this state less return
premiums and dividends.
(d) "Firetown" means the area serviced by
any municipality having a qualified fire department or a qualified incorporated
fire department having a subsidiary volunteer firefighters' relief association.
(e) "Market value" means latest available
market value of all property in a taxing jurisdiction, whether the property is
subject to taxation, or exempt from ad valorem taxation obtained from information
which appears on abstracts filed with the commissioner of revenue or equalized
by the State Board of Equalization.
(f) "Minnesota Aid to Police Premium Report"
means a form prescribed by the commissioner for reporting by each fire and
casualty insurer of all premiums received upon direct business received by it
in this state, or by its agents for it, in cash or otherwise, during the
preceding calendar year, with reference to insurance written for insuring
against the perils contained in auto insurance coverages as reported in the
Minnesota business schedule of the annual financial statement which each
insurer is required to file with the commissioner in accordance with the
governing laws or rules less return premiums and dividends.
(g) "Peace officer" means any person:
(1) whose primary source of income derived from wages
is from direct employment by a municipality or county as a law enforcement
officer on a full-time basis of not less than 30 hours per week;
(2) who has been employed for a minimum of six months
prior to December 31 preceding the date of the current year's certification
under subdivision 2, clause (b);
(3) who is sworn to enforce the general criminal laws
of the state and local ordinances;
(4) who is licensed by the Peace Officers Standards
and Training Board and is authorized to arrest with a warrant; and
(5) who is a member of a local police relief
association to which section 69.77 applies, the State Patrol retirement plan,
the public employees police and fire fund, or the Minneapolis Employees
Retirement Fund.
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(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. 4.� Minnesota Statutes 2008, section 69.011,
subdivision 2, is amended to read:
Subd. 2.� Qualification
for fire or police state aid.� (a) Unless
retirement coverage is provided by the voluntary statewide lump-sum volunteer
firefighter retirement plan, in order to qualify to receive fire state aid,
on or before March 15 annually, in conjunction with the financial report
required pursuant to section 69.051, the clerk of each municipality having a
duly organized fire department as provided in subdivision 4, or the secretary
of each independent nonprofit firefighting corporation having a subsidiary
incorporated firefighters' relief association whichever is applicable, and the
fire chief, shall jointly certify the existence of the municipal fire
department or of the independent nonprofit firefighting corporation, whichever
is applicable, which meets the minimum qualification requirements set forth in
this subdivision, and the fire personnel and equipment of the municipal fire
department or the independent nonprofit firefighting corporation as of the
preceding December 31.
(b) Where retirement coverage is
provided by the voluntary statewide lump-sum volunteer firefighter retirement
plan, the executive director of the Public Employees Retirement Association
shall certify the existence of that coverage for each municipality and the
municipal clerk or independent nonprofit firefighting corporation secretary,
whichever applies, and the applicable fire chief shall certify the fire
personnel and fire department equipment as of the preceding December 31.
(c) Certification shall must be made to the
commissioner on a form prescribed by the commissioner and shall include any
other facts the commissioner may require.�
The certification shall must be made to the commissioner
in duplicate.� Each copy of the
certificate shall must be duly executed and is deemed to
be an original.� The commissioner
shall forward one copy to the auditor of the county wherein the fire department
is located and shall retain one copy.�
(b) (d) On or before March 15 annually the clerk of each
municipality having a duly organized police department and having a duly
incorporated relief association shall certify that fact to the county auditor
of the county where the police department is located and to the commissioner on
a form prescribed by the commissioner together with the other facts the
commissioner or auditor may require.
(e) Except as provided in subdivision 2b, on or before
March 15 annually, the clerk of each municipality and the auditor of each
county employing one or more peace officers as defined in subdivision 1, clause
(g), shall certify the number of such peace officers to the commissioner on
forms prescribed by the commissioner.�
Credit for officers
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employed less than a full year shall
must be apportioned.� Each full month
of employment of a qualifying officer during the calendar year shall entitle
entitles the employing municipality or county to credit for 1/12 of the
payment for employment of a peace officer for the entire year.� For purposes of sections 69.011 to 69.051,
employment of a peace officer shall commence commences when the
peace officer is entered on the payroll of the respective municipal police
department or county sheriff's department.�
No peace officer shall may be included in the
certification of the number of peace officers by more than one municipality or
county for the same month.�
Sec. 5.�
Minnesota Statutes 2008, section 69.011, subdivision 4, is amended to
read:
Subd. 4.� Qualification for state aid.� Any municipality in this state having for more
than one year an organized fire department and officially established by the
governing body of the municipality or an independent nonprofit fire fighting
corporation created under the nonprofit corporation act of this state and
operating exclusively for fire fighting purposes and providing retirement and
relief benefits to its members oder, having a separate subsidiary
incorporated firefighter's relief and pension association providing retirement
and relief benefits, or participating in the voluntary statewide lump-sum
volunteer firefighter retirement plan, may qualify to receive state aid if
it meets the following minimum requirements or equivalent as determined by the
state fire marshal by July 1, 1972:
(a) ten paid or volunteer firefighters including a
fire chief and assistant fire chief, and
(b) regular scheduled meetings and frequent drills
including instructions in fire fighting tactics and in the use, care, and
operation of all fire apparatus and equipment, and
(c) a motorized fire truck equipped with a motorized
pump, 250 gallon or larger water tank, 300 feet of one inch or larger fire hose
in two lines with combination spray and straight stream nozzles, five-gallon
hand pumps--tank extinguisher or equivalent, dry chemical extinguisher or equivalent,
ladders, extension ladders, pike poles, crow bars, axes, lanterns, fire coats,
helmets, boots, and
(d) apparatus suitably housed in a building of good
construction with facilities for care of hose and equipment, and
(e) a reliable and adequate method of receiving fire
alarms by telephone or with electric siren and suitable means of sounding an
alarm, and
(f) if response is to be provided outside the
corporate limits of the municipality wherein the fire department is located,
the municipality has another piece of motorized apparatus to make the response,
and
(g) other requirements the commissioner establishes by
rule.
Sec. 6.�
Minnesota Statutes 2008, section 69.021, subdivision 7, is amended to
read:
Subd. 7.� Apportionment of fire state aid to municipalities
and relief associations.� (a) The
commissioner shall apportion the fire state aid relative to the premiums
reported on the Minnesota Firetown Premium Reports filed under this chapter to
each municipality and/or firefighters relief association.
(b) The commissioner shall calculate an initial fire
state aid allocation amount for each municipality or fire department under
paragraph (c) and a minimum fire state aid allocation amount for each
municipality or fire department under paragraph (d).� The municipality or fire department must
receive the larger fire state aid amount.
(c) The initial fire state aid allocation amount is
the amount available for apportionment as fire state aid under subdivision 5,
without inclusion of any additional funding amount to support a minimum fire
state aid amount under section 423A.02, subdivision 3, allocated one-half in
proportion to the population as shown in the last official
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statewide federal census for each fire town and
one-half in proportion to the market value of each fire town, including (1) the
market value of tax exempt property and (2) the market value of natural
resources lands receiving in lieu payments under sections 477A.11 to 477A.14,
but excluding the market value of minerals.�
In the case of incorporated or municipal fire departments furnishing
fire protection to other cities, towns, or townships as evidenced by valid fire
service contracts filed with the commissioner, the distribution must be
adjusted proportionately to take into consideration the crossover fire
protection service.� Necessary
adjustments shall must be made to subsequent apportionments.� In the case of municipalities or independent
fire departments qualifying for the aid, the commissioner shall calculate the
state aid for the municipality or relief association on the basis of the
population and the market value of the area furnished fire protection service
by the fire department as evidenced by duly executed and valid fire service
agreements filed with the commissioner.�
If one or more fire departments are furnishing contracted fire service
to a city, town, or township, only the population and market value of the area
served by each fire department may be considered in calculating the state aid
and the fire departments furnishing service shall enter into an agreement
apportioning among themselves the percent of the population and the market
value of each service area.� The
agreement must be in writing and must be filed with the commissioner.
(d) The minimum fire state aid
allocation amount is the amount in addition to the initial fire state allocation
amount that is derived from any additional funding amount to support a minimum
fire state aid amount under section 423A.02, subdivision 3, and allocated to
municipalities with volunteer firefighters relief associations or covered by
the voluntary statewide lump-sum volunteer firefighter retirement plan based
on the number of active volunteer firefighters who are members of the relief
association as reported in the annual financial reporting for the calendar year
1993 to the Office of the State Auditor, but not to exceed 30 active volunteer
firefighters, so that all municipalities or fire departments with volunteer
firefighters relief associations receive in total at least a minimum fire state
aid amount per 1993 active volunteer firefighter to a maximum of 30
firefighters.� If a relief association is
established after calendar year 1993 and before calendar year 2000, the number
of active volunteer firefighters who are members of the relief association as
reported in the annual financial reporting for calendar year 1998 to the Office
of the State Auditor, but not to exceed 30 active volunteer firefighters, shall
be used in this determination.� If a
relief association is established after calendar year 1999, the number of
active volunteer firefighters who are members of the relief association as
reported in the first annual financial reporting submitted to the Office of the
State Auditor, but not to exceed 20 active volunteer firefighters, must be used
in this determination.� If a relief
association is terminated as a result of providing retirement coverage for
volunteer firefighters by the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G, the number of active volunteer
firefighters of the municipality covered by the statewide plan as certified by
the executive director of the Public Employees Retirement Association to the
commissioner and the state auditor, but not to exceed 30 active firefighters,
must be used in this determination.
(e) Unless the firefighters of the
applicable fire department are members of the voluntary statewide lump-sum
volunteer firefighter retirement plan, the fire state aid must be paid to
the treasurer of the municipality where the fire department is located and the
treasurer of the municipality shall, within 30 days of receipt of the fire
state aid, transmit the aid to the relief association if the relief association
has filed a financial report with the treasurer of the municipality and has met
all other statutory provisions pertaining to the aid apportionment.� If the firefighters of the applicable fire
department are members of the voluntary statewide lump-sum volunteer
firefighter retirement plan, the fire state aid must be paid to the executive
director of the Public Employees Retirement Association and deposited in the
voluntary statewide lump-sum volunteer firefighter retirement fund.
(f) The commissioner may make rules
to permit the administration of the provisions of this section.
(g) Any adjustments needed to correct
prior misallocations must be made to subsequent apportionments.
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Sec. 7.� Minnesota Statutes 2008, section 69.021, subdivision
9, is amended to read:
Subd. 9.� Appeal.� In the event that any a municipality,
a county, a fire relief association, oder a police
relief association, or the voluntary statewide lump-sum volunteer
firefighter retirement plan, feels itself to be aggrieved, it may request
the commissioner to review and adjust the apportionment of funds within the
county in the case of police state aid, or within the state in the case of fire
state aid.� The decision of the commissioner
is subject to appeal, review, and adjustment by the district court in the
county in which the applicable municipality, fire department, or
police department is located.
Sec. 8.� Minnesota Statutes 2008, section 69.031,
subdivision 1, is amended to read:
Subdivision 1.� Commissioner
of finance's warrant.� (a) The
commissioner of finance shall issue to the Public Employees Retirement
Association on behalf of a municipality or independent nonprofit firefighting
corporation that is a member of the voluntary statewide lump-sum volunteer firefighter
retirement plan under chapter 353G or to the county, municipality, or
independent nonprofit firefighting corporation certified to the commissioner of
finance by the commissioner a warrant for an amount equal to the amount of fire
state aid or police state aid, whichever applies, certified for the applicable
state aid recipient by the commissioner under section 69.021.
(b) The amount of state aid due and not paid by October 1
accrues interest at the rate of one percent for each month or part of a month
the amount remains unpaid, beginning the preceding July 1.�
Sec. 9.� Minnesota Statutes 2008, section 69.031,
subdivision 5, is amended to read:
Subd. 5.� Deposit
of state aid.� (a) If the
municipality or the independent nonprofit firefighting corporation is covered
by the voluntary statewide lump-sum volunteer firefighter retirement plan under
chapter 353G, the executive director shall credit the fire state aid against
future municipal contribution requirements under section 353G.08 and shall notify
the municipality or independent nonprofit firefighting corporation of the fire
state aid so credited at least annually.�
If the municipality or the independent nonprofit firefighting
corporation is not covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan, the municipal treasurer shall, within 30 days
after receipt, transmit the fire state aid to the treasurer of the duly
incorporated firefighters' relief association if there is one organized and the
association has filed a financial report with the municipality.� If the relief association has not filed a
financial report with the municipality, the municipal treasurer shall delay
transmission of the fire state aid to the relief association until the complete
financial report is filed.� If the
municipality or independent nonprofit firefighting corporation is not covered
by the voluntary statewide lump-sum volunteer firefighter retirement plan, if there
is no relief association organized, or if the association has dissolved,
or has been removed as trustees of state aid, then the treasurer of the
municipality shall deposit the money in the municipal treasury as provided for
in section 424A.08 and the money may be disbursed only for the purposes and in
the manner set forth in that section.�
(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
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(3) For a municipality other than a
city of the first class with a population of more than 300,000 in which both a police
relief association exists and police retirement coverage is provided in part by
the public employees police and fire fund, the municipality may elect at its
option to transmit the total state aid to the treasurer of the relief
association as provided in clause (1), to use the total state aid to apply
toward the municipality's employer contribution to the public employees police
and fire fund subject to all the provisions set forth in clause (2), or to
allot the total state aid proportionately to be transmitted to the police
relief association as provided in this subdivision and to apply toward the
municipality's employer contribution to the public employees police and fire
fund subject to the provisions of clause (2) on the basis of the respective number
of active full-time peace officers, as defined in section 69.011, subdivision
1, clause (g).�
For a city of the first class with a
population of more than 300,000, in addition, the city may elect to allot the appropriate
portion of the total police state aid to apply toward the employer contribution
of the city to the public employees police and fire fund based on the covered
salary of police officers covered by the fund each payroll period and to
transmit the balance to the police relief association; or
(4) For a municipality in which
police retirement coverage is provided in part by the public employees police
and fire fund and in part by a local police consolidation account governed by
chapter 353A and established before March 2, 1999, for which the municipality
declined merger under section 353.665, subdivision 1, or established after
March 1, 1999, the total police state aid must be applied towards the
municipality's total employer contribution to the public employees police and
fire fund and to the local police consolidation account under sections 353.65,
subdivision 3, and 353A.09, subdivision 5.�
(c) The county treasurer, upon
receipt of the police state aid for the county, shall apply the total state aid
toward the county's employer contribution to the public employees police and
fire fund under section 353.65, subdivision 3.�
(d) The designated Metropolitan
Airports Commission official, upon receipt of the police state aid for the
Metropolitan Airports Commission, shall apply the total police state aid first
toward the commission's employer contribution for police officers to the
Minneapolis Employees Retirement Fund under section 422A.101,
subdivision 2a, and, if there is any amount of police state aid remaining,
shall apply that remainder toward the commission's employer contribution for
police officers to the public employees police and fire plan under section
353.65, subdivision 3.�
(e) The police state aid apportioned
to the Departments of Public Safety and Natural Resources under section 69.021,
subdivision 7a, is appropriated to the commissioner of finance for transfer to
the funds and accounts from which the salaries of peace officers certified
under section 69.011, subdivision 2a, are paid.�
The commissioner of revenue shall certify to the commissioners of public
safety, natural resources, and finance 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 finance 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 must
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. 10.� [353G.01]
DEFINITIONS.�
Subdivision 1.�
Scope.� For the purposes of this chapter, the
words or terms defined in this section have the meanings given to them unless
the context of the word or term clearly indicates otherwise.
Subd. 2.�
Advisory board.� "Advisory board" means the board
established by section 353G.03.
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Subd. 3.�
Board.� "Board" means the board of
trustees of the Public Employees Retirement Association operating under section
353.03.
Subd. 4.�
Commissioner of finance.� "Commissioner of finance" means the
state official appointed and qualified under section 16A.01.
Subd. 5.�
Executive director; director.� "Executive director" or
"director" means the person appointed under section 353.03,
subdivision 3a.
Subd. 6.�
Fund.� "Fund" means the voluntary statewide
lump-sum volunteer firefighter retirement fund established under section
353G.02, subdivision 3.
Subd. 7.�
Good time service credit.� "Good time service credit" means
the length of service credit for an active firefighter that is reported by the
applicable fire chief based on the minimum firefighter activity standards of
the fire department.� The credit may be
recognized on an annual or monthly basis.
Subd. 8.�
Member.� "Member" means a volunteer
firefighter who provides active service to a municipal fire department or an
independent nonprofit firefighting corporation where the applicable
municipality or corporation has elected coverage by the retirement plan under
section 353G.05, and which service is covered by the retirement plan.
Subd. 9.�
Municipality.� "Municipality" means a
governmental entity specified in section 69.011, subdivision 1, paragraph (b),
clauses (1), (2), and (5).
Subd. 10.�
Plan.� "Plan" means the retirement plan
established by this chapter.
Subd. 11.�
Retirement fund.� "Retirement fund" means the
voluntary statewide lump-sum volunteer firefighter retirement fund established
under section 353G.02, subdivision 3.
Subd. 12.�
Retirement plan.� "Retirement plan" means the
retirement plan established by this chapter.
Subd. 13.�
Standards for actuarial work.� "Standards for actuarial work"
means the standards adopted by the Legislative Commission on Pensions and
Retirement under section 3.85, subdivision 10.
Subd. 14.�
State Board of Investment.� "State Board of Investment" means
the board created by article XI, section 8, of the Minnesota Constitution and
governed by chapter 11A.
Subd. 15.�
Volunteer firefighter.� "Volunteer firefighter" means a
person who is an active member of a municipal fire department or independent
nonprofit firefighting corporation and who, in that capacity, engages in fire
suppression activities, provides emergency response services, or delivers fire
education or prevention services on an on-call basis.
Sec. 11.� [353G.02]
PLAN AND FUND CREATION.�
Subdivision 1.�
Retirement plan.� The voluntary statewide lump-sum volunteer
firefighter retirement plan is created.
Subd. 2.�
Administration.� The policy-making, management, and
administrative functions related to the voluntary statewide lump-sum volunteer
firefighter retirement plan and fund are vested in the board of trustees and
the executive director of the Public Employees Retirement Association.� Their duties, authority, and responsibilities
are as provided in section 353.03.�
Fiduciary activities of the plan and fund must be undertaken in a manner
consistent with chapter 356A.
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Subd. 3.� Retirement
fund.� (a) The voluntary
statewide lump-sum volunteer firefighter retirement fund is created.� The fund contains the assets attributable to
the voluntary statewide lump-sum volunteer firefighter retirement plan.
(b) The State Board of Investment shall invest those
portions of the retirement fund not required for immediate purposes in the
voluntary statewide lump-sum volunteer firefighter retirement plan in the
statewide lump-sum volunteer firefighter account of the Minnesota supplemental
investment fund under section 11A.17.
(c) The commissioner of finance is the ex officio
treasurer of the voluntary statewide lump-sum volunteer firefighter retirement
fund.� The commissioner of finance's
general bond to the state covers all liability for actions taken as the treasurer
of the retirement fund.
(d) The revenues of the retirement plan beyond
investment returns are governed by section 353G.08 and must be deposited in the
retirement fund.� The disbursements of
the retirement plan are governed by section 353G.08.� The commissioner of finance shall transmit a
detailed statement showing all credits to and disbursements from the retirement
fund to the executive director monthly.
Subd. 4.� Audit;
actuarial valuation.� (a) The
legislative auditor shall periodically audit the voluntary statewide lump-sum
volunteer firefighter retirement fund.
(b) An actuarial valuation of the voluntary statewide
lump-sum volunteer firefighter retirement plan may be performed periodically as
determined to be appropriate or useful by the board.� An actuarial valuation must be performed by
the approved actuary retained under section 356.214 and must conform with
section 356.215 and the standards for actuarial work.� An actuarial valuation must contain
sufficient detail for each participating employing entity to ascertain the
actuarial condition of its account in the fund and the contribution requirement
towards its account.
Subd. 5.� Legal
advisor; attorney general.� (a)
The legal advisor of the board and the executive director with respect to the
voluntary statewide lump-sum volunteer firefighter retirement plan is the
attorney general.
(b) The board may sue, petition, be sued, or be
petitioned under this chapter with respect to the plan or the fund in the name
of the board.
(c) The attorney general shall represent the board in
all actions by the board or against the board with respect to the plan or the
fund.
(d) Venue of all actions related to the plan or fund
is in the court for the first judicial district unless the action is an appeal
to the Court of Appeals under section 356.96.
Sec. 12.� [353G.03] VOLUNTARY STATEWIDE LUMP-SUM
VOLUNTEER FIREFIGHTER RETIREMENT PLAN ADVISORY BOARD.�
Subdivision 1.� Establishment.� A Voluntary Statewide Lump-Sum Volunteer
Firefighter Retirement Plan Advisory Board is created.
Subd. 2.� Function;
purpose.� The advisory board
shall provide advice to the board of trustees of the Public Employees
Retirement Association about the retirement coverage needs of volunteer
firefighters who are members of the plan and about the legislative and
administrative changes that would assist the retirement plan in accommodating
volunteer firefighters who are not members of the plan.
Subd. 3.� Composition.� (a) The advisory board consists of seven
members.
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(b) The advisory board members are:
(1) one representative of Minnesota townships,
appointed by the Minnesota Association of Townships;
(2) two representatives of Minnesota cities, appointed
by the League of Minnesota Cities;
(3) one representative of Minnesota fire chiefs, who
is a fire chief, appointed by the Minnesota State Fire Chiefs Association;
(4) two representatives of Minnesota volunteer
firefighters, who are active volunteer firefighters, appointed by the Minnesota
State Fire Departments Association; and
(5) one representative of the Office of the State
Auditor, designated by the state auditor.
Subd. 4.� Term.� (a) The initial terms on the advisory
board for the Minnesota townships representative and the Minnesota fire chiefs
representative are one year.� The initial
terms on the advisory board for one of the Minnesota cities representatives and
one of the Minnesota active volunteer firefighter representatives are two
years.� The initial terms on the advisory
board for the other Minnesota cities representative and the other Minnesota
active volunteer firefighter representative are three years.� The term for the Office of the State Auditor
representative is determined by the state auditor.
(b) Subsequent terms on the advisory board other than
the Office of the State Auditor representative are three years.
Subd. 5.� Compensation
of advisory board.� The
compensation of members of the advisory board other than the Office of the
State Auditor representative is governed by section 15.0575, subdivision 3.
Sec. 13.� [353G.04] INFORMATION FROM MUNICIPALITIES
AND FIRE DEPARTMENTS.�
The chief executive officers of municipalities and
fire departments with volunteer firefighters covered by the voluntary lump-sum
volunteer firefighter retirement plan shall provide all relevant information
and records requested by the board, the executive director, and the State Board
of Investment as required to perform their duties.
Sec. 14.� [353G.05] PLAN COVERAGE ELECTION.�
Subdivision 1.� Coverage.� Any municipality or independent nonprofit
firefighting corporation may elect to have its volunteer firefighters covered
by the retirement plan.
Subd. 2.� Election
of coverage.� (a) The process
for electing coverage of volunteer firefighters by the retirement plan is
initiated by a request to the executive director for a cost analysis of the
prospective retirement coverage.
(b) If the volunteer firefighters are currently
covered by a volunteer firefighters' relief association governed by chapter
424A, the cost analysis of the prospective retirement coverage must be requested
jointly by the secretary of the volunteer firefighters' relief association,
following approval of the request by the board of the volunteer firefighters'
relief association, and the chief administrative officer of the entity
associated with the relief association, following approval of the request by
the governing body of the entity associated with the relief association.� If the relief association is associated with
more than one entity, the chief administrative officer of each associated
entity must execute the request.� If the
volunteer firefighters are not currently covered by a volunteer firefighters'
relief association, the cost analysis of the prospective retirement coverage
must be requested by the chief administrative officer of the entity operating
the fire department.� The request must be
made in writing and must be made on a form prescribed by the executive
director.
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(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, 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 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.
Sec. 15.� [353G.06]
DISESTABLISHMENT OF PRIOR VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION SPECIAL
FUND UPON RETIREMENT COVERAGE CHANGE.�
Subdivision 1.�
Special fund disestablishment.� (a) On the date immediately prior to the
effective date of the coverage change, the special fund of the applicable
volunteer firefighters' relief association, if one exists, ceases to exist as a
pension fund of the association and legal title to the assets of the special
fund transfers to the State Board of Investment, with the beneficial title to
the assets of the special fund remaining in the applicable volunteer
firefighters.
(b) If the market value of the special
fund of the volunteer firefighters' relief association for which retirement
coverage changed under this chapter declines in the interval between the date
of the most recent financial report or statement, and the special fund
disestablishment date, the applicable municipality shall transfer an additional
amount to the State Board of Investment equal to that decline.� If more than one municipality is responsible
for the direct management of the fire department, the municipalities shall
allocate the additional transfer amount among the various applicable
municipalities one-half in proportion to the population of each municipality
and one-half in proportion to the market value of each municipality.
Subd. 2.�
Other relief association
changes.� In addition to the
transfer and disestablishment of the special fund under subdivision 1,
notwithstanding any provisions of chapter 424A or 424B to the contrary, upon
the effective date of the change in volunteer firefighter retirement coverage,
if the relief association membership elects to retain the relief association
after the benefit coverage election, the following changes must be implemented
with respect to the applicable volunteer firefighters' relief association:
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(1) the relief association board of trustees
membership is reduced to five, comprised of the fire chief of the fire
department and four trustees elected by and from the relief association
membership;
(2) the relief association may only maintain a general
fund, which continues to be governed by section 424A.06;
(3) the relief association is not authorized to
receive the proceeds of any state aid or to receive any municipal funds; and
(4) the relief association may not pay any service
pension or benefit that was not authorized as a general fund disbursement under
the articles of incorporation or bylaws of the relief association in effect
prior to the plan coverage election process.
Subd. 3.� Successor
in interest.� Upon the
disestablishment of the special fund of the volunteer firefighters' relief
association under this section, the voluntary statewide lump-sum volunteer
firefighter retirement plan is the successor in interest of the special fund of
the volunteer firefighters' relief association for all claims against the
special fund other than a claim against the special fund, the volunteer
firefighters' relief association, the municipality, the fire department, or any
person connected with the volunteer firefighters' relief association in a
fiduciary capacity under chapter 356A or common law that was based on any act
or acts which were not performed in good faith and which constituted a breach
of a fiduciary obligation.� As the
successor in interest of the special fund of the volunteer firefighters' relief
association, the voluntary statewide lump-sum volunteer firefighter retirement
plan may assert any applicable defense in any judicial proceeding which the
board of trustees of the volunteer firefighters' relief association or the
municipality would have been entitled to assert.
Sec. 16.� [353G.07] CERTIFICATION OF GOOD TIME
SERVICE CREDIT.�
(a) Annually, by March 31, the fire chief of the fire
department with firefighters who are active members of the retirement plan
shall certify to the executive director the good time service credit for the
previous calendar year of each firefighter rendering active service with the
fire department.
(b) The fire chief shall provide to each firefighter
rendering active service with the fire department notification of the amount of
good time service credit rendered by the firefighter for the calendar
year.� The good time service credit
notification must be provided to the firefighter 60 days before its
certification to the executive director of the Public Employees Retirement
Association, along with an indication of the process for the firefighter to
challenge the fire chief's determination of good time service credit.� If the good time service credit amount is
challenged in a timely fashion, the fire chief shall hold a hearing on the
challenge, accept and consider any additional pertinent information, and make a
final determination of good time service credit.� The final determination of good time service
credit by the fire chief is not reviewable by the executive director of the
Public Employees Retirement Association or by the board of trustees of the
Public Employees Retirement Association.
(c) The good time service credit certification is an
official public document.� If a false
good time service credit certification is filed or if false information
regarding good time service credits is provided, section 353.19 applies.
(d) The good time service credit certification must be
expressed as a percentage of a full year of service during which an active
firefighter rendered at least the minimum level and quantity of fire
suppression, emergency response, fire prevention, or fire education duties
required by the fire department under the rules and regulations applicable to
the fire department.� No more than one
year of good time service credit may be certified for a calendar year.
(e) If a firefighter covered by the retirement plan
leaves active firefighting service to render active military service that is
required to be covered by the federal Uniformed Services Employment and
Reemployment Rights Act, as amended, the person must be certified as providing
a full year of good time service credit in each year of the
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5549
military service, up to the applicable limit of the
federal Uniformed Services Employment and Reemployment Rights Act.� If the firefighter does not return from the
military service in compliance with the federal Uniformed Services Employment
and Reemployment Rights Act, the good time service credits applicable to that
military service credit period are forfeited and cancel at the end of the
calendar year in which the federal law time limit occurs.
Sec. 17.� [353G.08] RETIREMENT PLAN FUNDING;
DISBURSEMENTS.�
(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.
(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.
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(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.
(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.
Sec. 18.� [353G.09]
RETIREMENT BENEFIT ELIGIBILITY.�
Subdivision 1.�
Entitlement.� Except as provided in subdivision 3, an
active member of the retirement plan is entitled to a 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;
(3) has completed 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.
Subd. 2.�
Vesting schedule;
nonforfeitable portion of service pension.� If an active member has completed less
than 20 years of good time service credit, the person's entitlement is to the nonforfeitable
percentage of the applicable service pension amount, as follows:
������������������������������������������ Completed
years of good�������������� Nonforfeitable
percentage
������������������������������������������������� time
service credit������������������������� of
the service pension
�������������������������������������������������������������� 5���������������������������������������������������� 40
percent
�������������������������������������������������������������� 6���������������������������������������������������� 44
percent
Journal of the
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�������������������������������������������������������������� 7���������������������������������������������������� 48
percent
�������������������������������������������������������������� 8���������������������������������������������������� 52
percent
�������������������������������������������������������������� 9���������������������������������������������������� 56
percent
������������������������������������������������������������ 10���������������������������������������������������� 60
percent
������������������������������������������������������������ 11���������������������������������������������������� 64
percent
������������������������������������������������������������ 12���������������������������������������������������� 68
percent
������������������������������������������������������������ 13���������������������������������������������������� 72
percent
������������������������������������������������������������ 14���������������������������������������������������� 76
percent
������������������������������������������������������������ 15���������������������������������������������������� 80
percent
������������������������������������������������������������ 16���������������������������������������������������� 84
percent
������������������������������������������������������������ 17���������������������������������������������������� 88
percent
������������������������������������������������������������ 18���������������������������������������������������� 92
percent
������������������������������������������������������������ 19���������������������������������������������������� 96
percent
������������������������������������������������������������� 20
and thereafter���������������������� 100
percent
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) 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.
Sec. 19.� [353G.10] DEFERRED SERVICE PENSION
AMOUNT.�
A person who was an active member of a
fire department covered by the retirement plan who has separated from active
firefighting service for at least 30 days and who has completed at least five
years of good time service credit, but has not attained the age of 50 years, is
entitled to a deferred service pension on or after attaining the age of 50
years and applying in a manner specified by the executive director for the
service pension.� The service pension
payable is the nonforfeitable percentage of the service pension under section
353G.09, subdivision 2, and is payable without any interest over the period of
deferral.
Sec. 20.� [353G.11] SERVICE PENSION LEVELS.�
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
per year of good time service credit
����������������������������������������� Level
C�������������������������������� $1,000
per year of good time service credit
����������������������������������������� Level
D�������������������������������� $1,500
per year of good time service credit
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����������������������������������������� Level
E��������������������������������� $2,000
per year of good time service credit
����������������������������������������� Level
F��������������������������������� $2,500
per year of good time service credit
����������������������������������������� Level
G�������������������������������� $3,000
per year of good time service credit
����������������������������������������� Level
H�������������������������������� $3,500
per year of good time service credit
����������������������������������������� Level
I���������������������������������� $4,000
per year of good time service credit
����������������������������������������� Level
J���������������������������������� $4,500
per year of good time service credit
����������������������������������������� Level
K�������������������������������� $5,000
per year of good time service credit
����������������������������������������� Level
L��������������������������������� $5,500
per year of good time service credit
����������������������������������������� Level
M������������������������������� $6,000
per year of good time service credit
����������������������������������������� Level
N�������������������������������� $6,500
per year of good time service credit
����������������������������������������� Level
O�������������������������������� $7,000
per year of good time service credit
����������������������������������������� Level
P��������������������������������� $7,500
per year of good time service credit
Subd.
2.� Level
selection.� At the time of the
election to transfer retirement coverage, or on April 30 thereafter, the
governing body or bodies of the entity or entities operating the fire
department whose firefighters are covered by the retirement plan may request a
cost estimate from the executive director of an increase in the service pension
level applicable to the active firefighters of the fire department.� Within 90 days of the receipt of the cost
estimate prepared by the executive director using a procedure certified as
accurate by the approved actuary retained by the Public Employees Retirement
Association, the governing body or bodies may approve the service pension level
change, effective for the following calendar year.� If not approved in a timely fashion, the
service pension level change is considered to have been disapproved.
Subd.
3.� Supplemental
benefit.� The retirement plan
also shall pay a supplemental benefit as provided for in section 424A.10.
Subd.
4.� Ancillary
benefits.� No disability,
death, funeral, or other ancillary benefit beyond a service pension or a
survivor benefit is payable from the retirement plan.
Sec.
21.� [353G.12]
SURVIVOR BENEFIT.�
Subdivision
1.� Entitlement.� (a) A survivor of a deceased active member
of the retirement plan or a deceased deferred member of the retirement plan,
upon application as prescribed by the executive director, is entitled to
receive a survivor benefit.
(b)
A survivor is the spouse of the member, or if none, the minor child or children
of the member, or if none, the estate of the member.
Subd.
2.� Survivor
benefit amount.� The amount of
the survivor benefit is the amount of the service pension that would have been
payable to the member of the retirement plan on the date of death if the member
had been age 50 or older on that date.
Sec.
22.� [353G.13]
PORTABILITY.�
Subdivision
1.� Eligibility.� An active firefighter who is a member of
the retirement plan who also renders firefighting service and has good time
service credit in the retirement plan from another fire department, if the good
time service credit in the plan from a combination of periods totals at least
five years, is eligible, upon complying with the other requirements of section
353G.09, to receive a service pension upon filing an application in the manner
prescribed by the executive director, computed as provided in subdivision 2.
Subd.
2.� Combined
service pension computation.� The
service pension payable to a firefighter who qualifies under subdivision 1 is
the per year of good time service credit service pension amount in effect for
each account in which the firefighter has good time service credit as of the
date on which the firefighter terminated active service with the fire department
associated with the applicable account, multiplied by the number of years of
good time service credit that the firefighter has in the applicable account.
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5553
Subd. 3.� Payment.� A service pension under this section must
be paid in a single payment, with the applicable portion of the total service
pension payment amount deducted from each account.
Sec. 23.� [353G.14] PURCHASE OF ANNUITY CONTRACTS.�
The executive director may purchase an annuity
contract on behalf of a retiring firefighter with a total premium payment in an
amount equal to the lump-sum service pension payable under section 353G.09 if
the purchase was requested by the retiring firefighter in a manner prescribed
by the executive director.� The annuity
contract must be purchased from an insurance carrier that is licensed to do
business in this state.� If purchased,
the annuity contract is in lieu of any service pension or other benefit from
the retirement plan.� The annuity contract
may be purchased at any time after the volunteer firefighter discontinues
active service, but the annuity contract must stipulate that no annuity amounts
are payable before the former volunteer firefighter attains the age of 50.
Sec. 24.� [353G.15] INDIVIDUAL RETIREMENT ACCOUNT
TRANSFER.�
Upon receipt of a determination that the retirement
plan is a qualified pension plan under section 401(a) of the Internal Revenue
Code, as amended, the executive director, upon request, shall transfer the
service pension amount under sections 353G.08 and 353G.11 of a former volunteer
firefighter who has terminated active firefighting services covered by the plan
and who has attained the age of at least 50 years to the person's individual
retirement account under section 408(a) of the federal Internal Revenue Code,
as amended.� The transfer request must be
in a manner prescribed by the executive director and must be filed by the
former volunteer firefighter who has sufficient service credit to be entitled
to a service pension or, following the death of a participating active
firefighter, must be filed by the deceased firefighter's surviving spouse.
Sec. 25.� [353G.16] EXEMPTION FROM PROCESS.�
The provisions of section 356.401 apply to the
retirement plan.
Sec. 26.�
Minnesota Statutes 2008, 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) the University of Minnesota faculty retirement
plan;
(9) the University of Minnesota faculty supplemental
retirement plan;
(10) the judges retirement fund;
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5554
(11) a police or firefighter's relief association
specified or described in section 69.77, subdivision 1a;
(12) a volunteer firefighter relief association
governed by section 69.771, subdivision 1;
(13) the public employees police and fire plan of the
Public Employees Retirement Association;
(14) the correctional state employees retirement plan
of the Minnesota State Retirement System; and
(15) the local government correctional service
retirement plan of the Public Employees Retirement Association; and
(16) the voluntary statewide lump-sum volunteer
firefighter retirement plan.
Sec. 27.�
Minnesota Statutes 2008, 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;
(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;
(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;
(12) (13)
the Duluth Teachers Retirement Fund Association, established by chapter
354A;
(13) the Minneapolis Teachers Retirement Fund
Association, established by chapter 354A;
(14) the St. Paul Teachers Retirement Fund
Association, established by chapter 354A;
Journal of the
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(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)
the Minneapolis Police Relief Association, established by chapter 423B;
(19)
the Minneapolis Firefighters Relief Association, established by chapter 423C;
and
(20)
the judges retirement fund, established by chapter 490.
Sec.
28.� Minnesota Statutes 2008, 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), and (13) to (15) (16),
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.
29.� Minnesota Statutes 2008, section
424A.10, subdivision 1, is amended to read:
Subdivision
1.� Definitions.� For purposes of this section:
(1)
"qualified recipient" means an individual who receives a lump-sum
distribution of pension or retirement benefits from a firefighters' relief
association or from the voluntary statewide lump-sum volunteer firefighter
retirement plan for service that the individual has performed as a
volunteer firefighter;
(2)
"survivor of a deceased active or deferred volunteer firefighter"
means the legally married spouse of a deceased volunteer firefighter, or, if
none, the surviving minor child or minor children of a deceased volunteer
firefighter;
(3)
"active volunteer firefighter" means a person who regularly renders
fire suppression service for a municipal fire department or an independent
nonprofit firefighting corporation, who has met the statutory and other
requirements for relief association membership, and who has been a fully
qualified member of the relief association or from the voluntary statewide
lump-sum volunteer firefighter retirement plan for at least one month; and
(4)
"deferred volunteer firefighter" means a former active volunteer firefighter
who terminated active firefighting service, has sufficient service credit from
the applicable relief association or from the voluntary statewide lump-sum
volunteer firefighter retirement plan to be entitled to a service pension,
but has not applied for or has not received the service pension.
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Sec. 30.�
Minnesota Statutes 2008, section 424A.10, subdivision 2, is amended to
read:
Subd. 2.� Payment of supplemental benefit.� (a) Upon the payment by a firefighters'
relief association or by the voluntary statewide lump-sum volunteer
firefighter retirement plan of a lump-sum distribution to a qualified
recipient, the association must pay a supplemental benefit to the qualified
recipient.� Notwithstanding any law to
the contrary, the relief association must pay the supplemental benefit out of
its special fund and the voluntary statewide lump-sum volunteer firefighter
retirement plan must pay the supplemental benefit out of the voluntary
statewide lump-sum volunteer firefighter retirement plan.� The amount of this benefit equals ten percent
of the regular lump-sum distribution that is paid on the basis of the
recipient's service as a volunteer firefighter.�
In no case may the amount of the supplemental benefit exceed
$1,000.� A supplemental benefit under
this paragraph may not be paid to a survivor of a deceased active or deferred
volunteer firefighter in that capacity.
(b) Upon the payment by a relief association or the
retirement plan of a lump-sum survivor benefit or funeral benefit to
a survivor of a deceased active volunteer firefighter or of a deceased deferred
volunteer firefighter, the association may pay a supplemental survivor benefit
to the survivor of the deceased active or deferred volunteer firefighter from
the special fund of the relief association if its articles of incorporation or
bylaws so provide and the retirement plan may pay a supplemental survivor
benefit to the survivor of the deceased active or deferred volunteer
firefighter from the retirement fund if chapter 353G so provides.� The amount of the supplemental survivor
benefit is 20 percent of the survivor benefit or funeral benefit, but
not to exceed $2,000.
(c) An individual may receive a supplemental benefit
under paragraph (a) or under paragraph (b), but not under both paragraphs with
respect to one lump-sum volunteer firefighter benefit.
Sec. 31.� Minnesota
Statutes 2008, section 424A.10, subdivision 3, is amended to read:
Subd. 3.� State reimbursement.� (a) Each year, to be eligible for state
reimbursement of the amount of supplemental benefits paid under subdivision 2
during the preceding calendar year, the relief association must or
the voluntary statewide lump-sum volunteer firefighter retirement plan shall
apply to the commissioner of revenue by February 15.� By March 15, the commissioner shall reimburse
the relief association for the amount of the supplemental benefits paid to
qualified recipients and to survivors of deceased active or deferred volunteer
firefighters.
(b) The commissioner of revenue shall prescribe the
form of and supporting information that must be supplied as part of the application
for state reimbursement.� The
commissioner of revenue shall reimburse the relief association by paying the
reimbursement amount to the treasurer of the municipality where the association
is located and shall reimburse the retirement plan by paying the
reimbursement amount to the executive director of the Public Employees
Retirement Association.� Within 30
days after receipt, the municipal treasurer shall transmit the state
reimbursement to the treasurer of the association if 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
reimbursement payment to the association until the complete financial report is
filed.� If the association has dissolved
or has been removed as a trustee of state aid, the treasurer shall deposit the
money in a special account in the municipal treasury, and the money may be
disbursed only for the purposes and in the manner provided in section
424A.08.� When paid to the association,
the reimbursement payment must be deposited in the special fund of the relief
association and when paid to the retirement plan, the reimbursement payment
must be deposited in the retirement fund of the plan.
(c) A sum sufficient to make the payments is
appropriated from the general fund to the commissioner of revenue.
Sec. 32.� EFFECTIVE DATE.�
Sections 1 to 31 are effective August 1, 2009.
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2009 - Top of Page 5557
ARTICLE 11
VOLUNTEER FIRE RELIEF ASSOCIATION CHANGES
Section 1.�
Minnesota Statutes 2008, section 69.031, subdivision 5, is amended to
read:
Subd. 5.� Deposit of state aid.� (a) The municipal treasurer shall, within 30
days after receipt, transmit the fire state aid to the treasurer of the duly
incorporated firefighters' relief association if there is one organized and the
association has filed a financial report with the municipality.� If the relief association has not filed a
financial report with the municipality, the municipal treasurer shall delay
transmission of the fire state aid to the relief association until the complete
financial report is filed.� If 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 as provided for in section
424A.08 and the money may be disbursed only for the purposes and in the
manner set forth in that 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.
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(c)
The county treasurer, upon receipt of the police state aid for the county,
shall apply the total state aid toward the county's employer contribution to
the public employees police and fire fund under section 353.65, subdivision 3.
(d)
The designated Metropolitan Airports Commission official, upon receipt of the
police state aid for the Metropolitan Airports Commission, shall apply the
total police state aid first toward the commission's employer contribution for
police officers to the Minneapolis Employees Retirement Fund under section
422A.101, subdivision 2a, and, if there is any amount of police state aid
remaining, shall apply that remainder toward the commission's employer
contribution for police officers to the public employees police and fire plan
under section 353.65, subdivision 3.
(e)
The police state aid apportioned to the Departments of Public Safety and
Natural Resources under section 69.021, subdivision 7a, is appropriated to the
commissioner of finance for transfer to the funds and accounts from which the
salaries of peace officers certified under section 69.011, subdivision 2a, are
paid.� The commissioner of revenue shall
certify to the commissioners of public safety, natural resources, and finance
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 finance 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 must 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.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
2.� Minnesota Statutes 2008, section
69.771, subdivision 3, is amended to read:
Subd.
3.� Remedy
for noncompliance; determination.�
(a) A municipality in which there exists a firefighters' relief
association as specified in subdivision 1 which does not comply with the
applicable provisions of sections 69.771 to 69.776 or the provisions of any
applicable special law relating to the funding or financing of the association
does not qualify initially to receive, and is not entitled subsequently to
retain, fire state aid under sections 69.011 to 69.051 until the reason for the
disqualification specified by the state auditor is remedied, whereupon the municipality
or relief association, if otherwise qualified, is entitled to again receive
fire state aid for the year occurring immediately subsequent to the year in
which the disqualification is remedied.
(b)
The state auditor shall determine if a municipality to which a firefighters'
relief association is directly associated or a firefighters' relief association
fails to comply with the provisions of sections 69.771 to 69.776 or the funding
or financing provisions of any applicable special law based upon the information
contained in the annual financial report of the firefighters' relief
association required under section 69.051, the actuarial valuation of the
relief association, if applicable, the relief association officers' financial
requirements of the relief association and minimum municipal obligation
determination documentation under section 69.772, subdivisions 3 and 4; 69.773,
subdivisions 4 and 5; or 69.774, subdivision 2, if requested to be filed by the
state auditor, the applicable municipal or nonprofit firefighting corporation
budget, if requested to be filed by the state auditor, and any other relevant
documents or reports obtained by the state auditor.
(c)
The municipality or nonprofit firefighting corporation and the associated
relief association are not eligible to receive or to retain fire state aid if:
(1)
the relief association fails to prepare or to file the financial report or
financial statement under section 69.051;
(2)
the relief association treasurer is not bonded in the manner and in the amount
required by section 69.051, subdivision 2;
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(3)
the relief association officers fail to determine or improperly determine the accrued
liability and the annual accruing liability of the relief association under
section 69.772, subdivisions 2, 2a, and 3, paragraph (c), clause (2), if
applicable;
(4)
if applicable, the relief association officers fail to obtain and file a
required actuarial valuation or the officers file an actuarial valuation that
does not contain the special fund actuarial liability calculated under the
entry age normal actuarial cost method, the special fund current assets, the
special fund unfunded actuarial accrued liability, the special fund normal cost
under the entry age normal actuarial cost method, the amortization requirement
for the special fund unfunded actuarial accrued liability by the applicable
target date, a summary of the applicable benefit plan, a summary of the
membership of the relief association, a summary of the actuarial assumptions
used in preparing the valuation, and a signed statement by the actuary
attesting to its results and certifying to the qualifications of the actuary as
an approved actuary under section 356.215, subdivision 1, paragraph (c);
(5)
the municipality failed to provide a municipal contribution, or the nonprofit
firefighting corporation failed to provide a corporate contribution, in the
amount equal to the minimum municipal obligation if the relief association is
governed under section 69.772, or the amount necessary, when added to the fire
state aid actually received in the plan year in question, to at least equal in
total the calculated annual financial requirements of the special fund of the
relief association if the relief association is governed under section 69.773,
and, if the municipal or corporate contribution is deficient, the municipality
failed to include the minimum municipal obligation certified under section 69.772,
subdivision 3, or 69.773, subdivision 5, in its budget and tax levy or the
nonprofit firefighting corporation failed to include the minimum corporate
obligation certified under section 69.774, subdivision 2, in the corporate
budget;
(6)
the defined benefit relief association did not receive municipal
ratification for the most recent plan amendment when municipal ratification was
required under section 69.772, subdivision 6; 69.773, subdivision 6; or
424A.02, subdivision 10;
(7)
the relief association invested special fund assets in an investment security
that is not authorized under section 69.775;
(8)
the relief association had an administrative expense that is not authorized
under section 69.80 or 424A.05, subdivision 3, or the municipality had an
expenditure that is not authorized under section 424A.08;
(9)
the relief association officers fail to provide a complete and accurate public
pension plan investment portfolio and performance disclosure under section
356.219;
(10)
the relief association fails to obtain the acknowledgment from a broker of the
statement of investment restrictions under section 356A.06, subdivision 8b;
(11)
the relief association officers permitted to occur a prohibited transaction
under section 356A.06, subdivision 9, or 424A.001 424A.04,
subdivision 7 2a, or failed to undertake correction of a
prohibited transaction that did occur; or
(12)
the relief association pays a defined benefit service pension in an amount that
is in excess of the applicable service pension maximum under section 424A.02,
subdivision 3.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
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2009 - Top of Page 5560
Sec. 3.�
Minnesota Statutes 2008, section 69.772, subdivision 4, is amended to
read:
Subd. 4.� Certification of financial requirements and
minimum municipal obligation; levy.�
(a) The officers of the relief association shall certify the financial
requirements of the special fund of the relief association and the minimum
obligation of the municipality with respect to the special fund of the relief
association as determined under subdivision 3 to the governing body of the
municipality on or before August 1 of each year.� The financial requirements of the relief
association and the minimum municipal obligation must be included in the
financial report or financial statement under section 69.051.� The schedule forms related to the
determination of the financial requirements must be filed with the state
auditor by March 31, annually, if the relief association is required to file a
financial statement under section 69.051, subdivision 1a, or by June 30,
annually, if the relief association is required to file a financial report and
audit under section 69.051, subdivision 1.
(b) The municipality shall provide for at least the
minimum obligation of the municipality with respect to the special fund of the
relief association by tax levy or from any other source of public revenue.
(c) The municipality may levy taxes for the payment of
the minimum municipal obligation without any limitation as to rate or amount
and irrespective of any limitations imposed by other provisions of law upon the
rate or amount of taxation until the balance of the special fund or any fund of
the relief association has attained a specified level.� In addition, any taxes levied under this
section must not cause the amount or rate of any other taxes levied in that
year or to be levied in a subsequent year by the municipality which are subject
to a limitation as to rate or amount to be reduced.
(d) If the municipality does not include the full
amount of the minimum municipal obligations in its levy for any year, the
officers of the relief association shall certify that amount to the county
auditor, who shall spread a levy in the amount of the certified minimum
municipal obligation on the taxable property of the municipality.
(e) If the state auditor determines that a municipal
contribution actually made in a plan year was insufficient under section
69.771, subdivision 3, paragraph (c), clause (5), the state auditor may request
a copy of the certifications under this subdivision from the relief association
or from the city.� The relief association
or the city, whichever applies, must provide the certifications within 14 days
of the date of the request from the state auditor.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 4.�
Minnesota Statutes 2008, 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), 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 shall
is not be 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), 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 shall be 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 prior surplus over
full funding reported in the prior year and this does not
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5561
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 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 shall is no longer be
effective without municipal ratification and any service pensions or retirement
benefits payable after that date shall 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 July 1, 2009.
Sec.
5.� Minnesota Statutes 2008, 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 subdivision 4, 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 shall is not be 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
subdivision 4, 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 shall be 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 prior 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 this section are such so as to require financial
support from the municipality, the provision which was implemented without
municipal ratification shall is no longer be effective
without municipal ratification and any service pensions or retirement benefits
payable after that date shall be may paid only in accordance with
the articles of incorporation or bylaws as amended or adopted with municipal
ratification.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
6.� Minnesota Statutes 2008, section
356.219, subdivision 3, is amended to read:
Subd.
3.� Content
of reports.� (a) The report required
by subdivision 1 must include a written statement of the investment
policy.� Following that initial report,
subsequent reports must include investment policy changes and the effective
date of each policy change rather than a complete statement of investment
policy, unless the state auditor requests submission of a complete current
statement.� The report must also include
the information required by the following paragraphs, as applicable.
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2009 - Top of Page 5562
(b) If, after four years of reporting under this
paragraph, the total portfolio time weighted rate of return, net of all
investment related costs and fees, provided by the public pension plan differs
by no more than 0.1 percent from the comparable return for the plan calculated
by the Office of the State Auditor, and if a public pension plan has a total
market value of $25,000,000 or more as of the beginning of the calendar year,
and if the public pension plan's annual audit is performed by the state auditor
or by the legislative auditor, the report required by subdivision 1 must
include the market value of the total portfolio and the market value of each
asset class included in the pension fund as of the beginning of the calendar
year and as of the end of the calendar year.�
At the discretion of the state auditor, the public pension plan may be
required to submit the market value of the total portfolio and the market value
of each investment account, investment portfolio, or asset class included in
the pension fund for each month, and the amount and date of each injection and
withdrawal to the total portfolio and to each investment account, investment
portfolio, or asset class.� If the market
value of a public pension plan's fund drops below $25,000,000 in a subsequent
year, it must continue reporting under this paragraph for any subsequent year
in which the public pension plan is not fully invested as specified in
subdivision 1, paragraph (b), except that if the public pension plan's annual
audit is not performed by the state auditor or legislative auditor, paragraph
(c) applies.
(c) If paragraph (b) would apply if the annual audit
were provided by the state auditor or legislative auditor, the report required
by subdivision 1 must include the market value of the total portfolio and the
market value of each asset class included in the pension fund as of the
beginning of the calendar year and for each month, and the amount and date of
each injection and withdrawal to the total portfolio and to each investment
account, investment portfolio, or asset class.
(d) For public pension plans to which paragraph (b) or
(c) applies, the report required by subdivision 1 must also include a
calculation of the total time-weighted rate of return available from
index-matching investments assuming the asset class performance targets and
target asset mix indicated in the written statement of investment policy.� The provided information must include a
description of indices used in the analyses and an explanation of why those
indices are appropriate.� This paragraph
does not apply to any fully invested plan, as defined by subdivision 1,
paragraph (b).� Reporting by the State
Board of Investment under this paragraph is limited to information on the
Minnesota public pension plans required to be invested by the State Board of
Investment under section 11A.23.
(e) If a public pension plan has a total market value
of less than $25,000,000 as of the beginning of the calendar year and was never
required to file under paragraph (b) or (c), the report required by subdivision
1 must include the amount and date of each total portfolio injection and
withdrawal.� In addition, the report must
include the market value of the total portfolio as of the beginning of the
calendar year and for each quarter.
(f) Any public pension plan reporting under paragraph
(b) or (c) must include computed time-weighted rates of return with the report,
in addition to all other required information, as applicable.� The chief administrative officer of the
public pension plan submitting the returns must certify, on a form prescribed
by the state auditor, that the returns have been computed by the pension plan's
investment performance consultant or custodial bank.� The chief administrative officer of the
public pension plan submitting the returns also must certify that the returns
are net of all costs and fees, including investment management fees, and that
the procedures used to compute the returns are consistent with Bank
Administration Institute studies of investment performance measurement and
presentation standards set by the Certified Financial Analyst CFA Institute.� If the certifications required under this
paragraph are not provided, the reporting requirements of paragraph (c) apply.
(g) For public pension plans reporting under paragraph
(e), the public pension plan must retain supporting information specifying the
date and amount of each injection and withdrawal to each investment account and
investment portfolio.� The public pension
plan must also retain the market value of each investment account and
investment portfolio at the beginning of the calendar year and for each
quarter.� Information that is required to
be collected and retained for any given year or years under this paragraph must
be submitted to the Office of the State Auditor if the Office of the State
Auditor requests in writing that the information be submitted by a public
pension plan or plans, or be submitted by the State Board of Investment for any
plan or plans for which the State Board of
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2009 - Top of Page 5563
Investment is the investment authority under this
section.� If the state auditor requests
information under this subdivision, and the public plan fails to comply, the
pension plan is subject to penalties under subdivision 5, unless penalties are
waived by the state auditor under that subdivision.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
7.� [420.20]
PROHIBITION OF SERVICE BY MINORS AS VOLUNTEER FIREFIGHTERS.�
It
is unlawful for any municipality or independent nonprofit firefighting
corporation to employ a minor to serve as a firefighter or to permit a minor to
serve in any capacity performing any firefighting duties with a fire
department, 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.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
8.� Minnesota Statutes 2008, section
424A.001, subdivision 1, is amended to read:
Subdivision
1.� Terms
defined.� Unless the context
clearly indicates otherwise, as used in this chapter, the terms defined in
this section have the meanings given.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
9.� Minnesota Statutes 2008, section
424A.001, subdivision 1a, is amended to read:
Subd.
1a.� Ancillary
benefit.� "Ancillary
benefit" means a benefit payable from the special fund of the relief
association other than a service pension that is permitted by law and that
is provided for in the relief association bylaws.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
10.� Minnesota Statutes 2008, section
424A.001, is amended by adding a subdivision to read:
Subd.
1b.� Defined
benefit relief association.� "Defined
benefit relief association" means a volunteer firefighters' relief
association that provides a lump-sum service pension, provides a monthly
benefit service pension, or provides a lump-sum service pension as an
alternative to the monthly benefit service pension.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
11.� Minnesota Statutes 2008, section
424A.001, is amended by adding a subdivision to read:
Subd.
1c.� Defined
contribution relief association.�
"Defined contribution relief association" means a volunteer
firefighters' relief association that provides a service pension based solely
on an individual account balance rather than a specified annual lump-sum or
monthly benefit service pension amount.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
12.� Minnesota Statutes 2008, section 424A.001,
subdivision 2, is amended to read:
Subd.
2.� Fire
department.� "Fire
department" includes a municipal fire department and or
an independent nonprofit firefighting corporation.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
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Sec.
13.� Minnesota Statutes 2008, section
424A.001, subdivision 3, is amended to read:
Subd.
3.� Municipality.� "Municipality" means a municipality
which has established a fire department with which the relief association
is directly associated, or the municipalities which have entered into a contract
with the independent nonprofit firefighting corporation of which the relief
association is a subsidiary.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
14.� Minnesota Statutes 2008, section
424A.001, subdivision 4, is amended to read:
Subd.
4.� Relief
association.� "Relief
association" means (a)
(1)
a volunteer
firefighters' relief association or a volunteer firefighters' division
or account of a partially salaried and partially volunteer firefighters' relief
association that is organized and incorporated under chapter 317A and
any laws of the state, is governed by this chapter and chapter 69, and is
directly associated with a fire department established by municipal
ordinance; or
(b) (2) any separate separately
incorporated volunteer firefighters' relief association that is subsidiary
to and providing that provides service pension and retirement benefit
coverage for members of an independent nonprofit firefighting corporation that
is organized under the provisions of chapter 317A, is governed by
this chapter, and operating operates exclusively for firefighting
purposes.� A relief association is a governmental
entity that receives and manages public money to provide retirement benefits
for individuals providing the governmental services of firefighting and
emergency first response.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
15. �Minnesota Statutes 2008, section
424A.001, subdivision 5, is amended to read:
Subd.
5.� Special
fund.� "Special fund" means
the special fund of a volunteer firefighters' relief association or the
account for volunteer firefighters within the special fund of a partially
salaried and partially volunteer firefighters' relief association.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
16.� Minnesota Statutes 2008, section
424A.001, subdivision 6, is amended to read:
Subd.
6.� Surviving
spouse.� For purposes of this
chapter, and the governing bylaws of any governing a relief
association to which this chapter applies, the term "surviving
spouse" means the spouse of a deceased member who was legally married to
the member at the time of the member's death.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
17.� Minnesota Statutes 2008, section
424A.001, subdivision 8, is amended to read:
Subd.
8.� Firefighting
service.� "Firefighting
service," if the applicable municipality approves for a fire department
that is a municipal department, or if the applicable contracting
municipality or municipalities approve for a fire department that is an
independent nonprofit firefighting corporation, includes fire department service
rendered by fire prevention personnel.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
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Sec.
18.� Minnesota Statutes 2008, section
424A.001, subdivision 9, is amended to read:
Subd.
9.� Separate
from active service.� "Separate
from active service" means to that a firefighter permanently
cease ceases to perform fire suppression duties with a particular
volunteer fire department, to permanently cease ceases to
perform fire prevention duties, to permanently cease ceases to
supervise fire suppression duties, and to permanently cease ceases
to supervise fire prevention duties.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
19.� Minnesota Statutes 2008, section
424A.001, subdivision 10, is amended to read:
Subd.
10.� Volunteer
firefighter.� "Volunteer
firefighter" means a person who either:
(1)
was a member of the applicable fire department or the independent nonprofit firefighting
corporation and a member of the relief association on July 1, 2006; or
(2)
became a member of the applicable fire department or the independent
nonprofit firefighting corporation and is eligible for membership in the
applicable relief association after June 30, 2006, and
(i)
is engaged in providing emergency response services or delivering fire
education or prevention services as a member of a municipal fire department, a
joint powers entity fire department, or an independent nonprofit firefighting
corporation;
(ii)
is trained in or is qualified to provide fire suppression duties or to provide
fire prevention duties under subdivision 8; and
(iii)
meets any other minimum firefighter and service standards established by the
fire department or the independent nonprofit firefighting corporation or
specified in the articles of incorporation or bylaws of the relief association.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
20.� [424A.002]
AUTHORIZATION OF NEW OR CONTINUING VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATIONS.�
Subdivision
1.� Authorization.� A municipal fire department or an
independent nonprofit firefighting corporation, with approval by the applicable
municipality or municipalities, may establish a new volunteer firefighters'
relief association or may retain an existing volunteer firefighters' relief
association.
Subd.
2.� Defined
benefit or defined contribution relief association.� The articles of incorporation or the
bylaws of the volunteer firefighters' relief association must specify that the
relief association is either a defined benefit relief association subject to
sections 69.771 to 69.774, 424A.015, and 424A.02 or is a defined contribution
relief association subject to sections 424A.015 and 424A.016.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec.
21.� Minnesota Statutes 2008, section
424A.01, is amended to read:
424A.01 MEMBERSHIP IN A VOLUNTEER
FIREFIGHTERS' RELIEF ASSOCIATION.�
Subdivision
1.� Minors.� It is unlawful for any (a) No
volunteer firefighters' relief association associated with a municipality
or an independent nonprofit firefighting corporation to employ may
include as a relief association member a minor serving as a volunteer
firefighter or to permit a minor to serve in any capacity performing any
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firefighting
duties with a volunteer fire department, 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.
Subd.
2.� Status
of substitute volunteer firefighters.�
No person who is serving as a substitute volunteer firefighter shall
be deemed may be considered to be a firefighter for purposes of
chapter 69 or this chapter nor shall be and no substitute volunteer
firefighter is authorized to be a member of any volunteer firefighters'
relief association governed by chapter 69 or this chapter.
Subd.
3.� Status
of nonmember volunteer firefighters.�
No person who is serving as a firefighter in a fire department but who
is not a member of the applicable firefighters' relief association shall be
is entitled to any service pension or ancillary benefits from the relief
association.
Subd.
4.� Exclusion
of persons constituting an unwarranted health risk.� The board of trustees of every relief
association may exclude from membership in the relief association all
applicants who, due to some medically determinable physical or mental
impairment or condition, would is determined to constitute a
predictable and unwarranted risk of imposing liability for an ancillary benefit
at any age earlier than the minimum age specified for receipt of a service
pension.� Notwithstanding any provision
of section 363A.25, it shall be is a good and valid defense to a
complaint or action brought under chapter 363A that the board of trustees of
the relief association made a good faith determination that the applicant
suffers from an impairment or condition constituting a predictable and
unwarranted risk for the relief association if the determination was made following
consideration of: (a) (1) the person's medical history; and (b)
(2) the report of the physician completing a physical examination of the
applicant completed undertaken at the expense of the relief
association.
Subd.
5.� Fire
prevention personnel.� (a) If the
fire department is a municipal department and the applicable municipality
approves, or if the fire department is an independent nonprofit firefighting
corporation and the contracting municipality or municipalities approve, the
fire department may employ or otherwise utilize the services of persons as
volunteer firefighters to perform fire prevention duties and to supervise fire
prevention activities.
(b)
Personnel serving in fire prevention positions are eligible to be members of
the applicable volunteer firefighter relief association and to qualify for
service pension or other benefit coverage of the relief association on the same
basis as fire department personnel who perform fire suppression duties.
(c)
Personnel serving in fire prevention positions also are eligible to receive any
other benefits under the applicable law or practice for services on the same
basis as personnel who are employed to perform fire suppression duties.
Subd.
6.� Return
to active firefighting after break in service.� (a) 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 may again become an active member of the
relief association.
(b)
A firefighter who returns to active relief association membership under
paragraph (a) 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.
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(c) A firefighter who returns to active lump-sum
relief association membership and who qualifies for a service pension under
paragraph (b) 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.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) A firefighter who had not been paid a lump-sum
service pension returns to active relief association membership under paragraph
(a), who does not qualify for a service pension under paragraph (b), 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.
(e) If a firefighter receiving a monthly benefit
service pension returns to active monthly benefit relief association membership
under paragraph (a), 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), 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 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) A firefighter who was not receiving a monthly
benefit service pension returns to active relief association membership under
paragraph (a), who does not qualify for a service pension under paragraph (b),
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 July 1, 2009.
Sec. 22.� [424A.015] GENERALLY APPLICABLE
VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION PENSION PLAN REGULATION.�
Subdivision 1.� Separation
from active service; exception.� (a)
No service pension is payable to a person while the person remains an active
member of the respective fire department, and a person who is receiving a
service pension is not entitled to receive any other benefits from the special
fund of the relief association.
(b) No relief association as defined in section
424A.001, subdivision 4, may pay a service pension or disability benefit to a
former member of the relief association if that person has not separated from
active service with the fire department to which the relief association is
directly associated, unless:
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(1) the person is employed subsequent to retirement by
the municipality or the independent nonprofit firefighting corporation,
whichever applies, to perform duties within the municipal fire department or
corporation on a full‑time basis;
(2) the governing body of the municipality or of the
corporation has filed its determination with the board of trustees of the
relief association that the person's experience with and service to the fire
department in that person's full-time capacity would be difficult to replace;
and
(3) the bylaws of the relief association were amended
to provide for the payment of a service pension or disability benefit for such
full-time employees.
Subd. 2.� No
assignment or garnishment.� A
service pension or ancillary benefits paid or payable from the special fund of
a relief association to any person receiving or entitled to receive a service
pension or ancillary benefits is not subject to garnishment, judgment,
execution, or other legal process, except as provided in section 518.58,
518.581, or 518A.53.� No person entitled
to a service pension or ancillary benefits from the special fund of a relief
association may assign any service pension or ancillary benefit payments, and
the association does not have the authority to recognize any assignment or pay
over any sum which has been assigned.
Subd. 3.� Purchase
of annuity contract.� A relief
association that provides a service pension in a single payment, if the
governing articles of incorporation or bylaws so provide, may purchase an
annuity contract on behalf of a retiring member in an amount equal to the
service pension otherwise payable at the request of the person and in place of
a direct payment to the person.� The
annuity contract must be purchased from an insurance carrier licensed to do
business in this state.
Subd. 4.� Transfer
to individual retirement account.�
A relief association that is a qualified pension plan under section
401(a) of the Internal Revenue Code, as amended, and that provides a single
payment service pension, at the written request of the applicable retiring
member or, following the death of the active member, at the written request of
the deceased member's surviving spouse, may directly transfer on an
institution-to-institution basis the eligible member's lump-sum pension or the
death or survivor benefit attributable to the member, whichever applies, to the
requesting person's individual retirement account under section 408(a) of the Internal
Revenue Code, as amended.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 23.� [424A.016] DEFINED CONTRIBUTION
VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION SPECIFIC REGULATION.�
Subdivision 1.� Defined
contribution relief association authorization.� If the articles of incorporation or the
bylaws governing the volunteer firefighters' relief association so provide
exclusively, the relief association may pay a defined contribution lump-sum
service pension instead of a defined benefit service pension governed by
section 424A.02.
Subd. 2.� Defined
contribution service pension eligibility.� (a) A relief association, when its
articles of incorporation or bylaws so provide, may pay out of the assets of
its special fund a defined contribution service pension to each of its members
who:
(1) separates from active service with the fire
department;
(2) reaches age 50;
(3) completes at least five years of active service as
an active member of the municipal fire department to which the relief association
is associated;
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(4)
completes at least five years of active membership with the relief association
before separation from active service; and
(5)
complies with any additional conditions as to age, service, and membership that
are prescribed by the bylaws of the relief association.
(b)
In the case of a member who has completed at least five years of active service
as an active member of the fire department to which the relief association is
associated on the date that the relief association is established and
incorporated, the requirement that the member complete at least five years of
active membership with the relief association before separation from active
service may be waived by the board of trustees of the relief association if the
member completes at least five years of inactive membership with the relief
association before the date of the payment of the service pension.� During the period of inactive membership, the
member is not entitled to receive any disability benefit coverage, is not
entitled to receive additional individual account allocation of fire state aid
or municipal contribution towards a service pension, and is considered to have
the status of a person entitled to a deferred service pension.
(c)
The service pension earned by a volunteer under this chapter and the articles
of incorporation and bylaws of the relief association may be paid whether or
not the municipality or nonprofit firefighting corporation to which the relief
association is associated qualifies for the receipt of fire state aid under
chapter 69.
Subd.
3.� Reduced
vesting schedule.� If the
articles of incorporation or bylaws of a defined contribution relief
association so provide, a relief association may pay a reduced service pension not
to exceed the nonforfeitable percentage of the account balance to a retiring
member who has completed fewer than 20 years of service.� The reduced service pension may be paid when
the retiring member meets the minimum age and service requirements of subdivision
2.� The nonforfeitable percentage of
pension amounts are as follows:
����������������� Completed Years
of Service����������������������������� Nonforfeitable
Percentage of Pension Amount
����������������������������������������� 5������������������������������������������������������������������������������ 40
percent
����������������������������������������� 6������������������������������������������������������������������������������ 52
percent
����������������������������������������� 7������������������������������������������������������������������������������ 64
percent
����������������������������������������� 8������������������������������������������������������������������������������ 76
percent
����������������������������������������� 9������������������������������������������������������������������������������ 88
percent
��������������������������������������� 10
and thereafter������������������������������������������������ 100
percent
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
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(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) 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.
(d) 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) 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.
Subd. 5.� Service
pension installment payments.� A
defined contribution relief association, if the governing bylaws so provide,
may pay, at the option of the retiring member and in lieu of a single payment
of a service pension, the service pension in installments.� The election of installment payments is
irrevocable and must be made by the retiring member in writing and filed with
the secretary of the relief association no later than 30 days before the
commencement of payment of the service pension.�
The amount of the installment payments must be the fractional portion of
the remaining account balance equal to one divided by the number of remaining
annual installment payments.
Subd. 6.� Deferred
service pensions.� (a) A
member of a relief association is entitled to a deferred service pension if the
member:
(1) has completed the lesser of the minimum period of
active service with the fire department specified in the bylaws or 20 years of
active service with the fire department;
(2) has completed at least five years of active
membership in the relief association; and
(3) separates from active service and membership
before reaching age 50 or the minimum age for retirement and commencement of a
service pension specified in the bylaws governing the relief association if
that age is greater than age 50.
(b) The deferred service pension is payable when the
former member reaches age 50, or the minimum age specified in the bylaws
governing the relief association if that age is greater than age 50, and when
the former member makes a valid written application.
(c) A defined contribution relief association may, if
its governing bylaws so provide, credit interest or additional investment
performance on the deferred lump-sum service pension during the period of
deferral.� If provided for in the bylaws,
the interest must be paid:
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(1) at the investment performance rate actually earned
on that portion of the assets if the deferred benefit amount is invested by the
relief association in a separate account established and maintained by the
relief association or if the deferred benefit amount is invested in a separate
investment vehicle held by the relief association; or
(2) the investment return on the assets of the special
fund of the defined contribution volunteer firefighter relief association in
proportion to the share of the assets of the special fund to the credit of each
individual deferred member account through the date on which the investment
return is recognized by and credited to the special fund.
(d) The deferred service pension is governed by and
must be calculated under the general statute, special law, relief association articles
of incorporation, and relief association bylaw provisions applicable on the
date on which the member separated from active service with the fire department
and active membership in the relief association.
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 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.
Subd. 8.� Filing
of bylaw amendments.� Each
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.� 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.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 24.�
Minnesota Statutes 2008, section 424A.02, subdivision 1, is amended to
read:
Subdivision 1.� Authorization.� (a) A defined benefit relief association,
when its articles of incorporation or bylaws so provide, may pay out of the
assets of its special fund a defined benefit service pension to each of
its members who: (1) separates from active service with the fire department;
(2) reaches age 50; (3) completes at least five years of active service as an
active member of the municipal fire department to which the relief association
is associated; (4) completes at least five years of active membership with the
relief association before separation from active service; and (5) complies with
any additional conditions as to age, service, and membership that are
prescribed by the bylaws of the relief association.� A service pension computed under this section
may be prorated monthly for fractional years of service, if 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.� The
service pension earned by a volunteer firefighter under this chapter and the
articles of incorporation and bylaws of the volunteer firefighters' relief
association may be paid whether or not the municipality or nonprofit
firefighting corporation to which the relief association is associated
qualifies for the receipt of fire state aid under chapter 69.
(b) In the case of a member who has completed at least
five years of active service as an active member of the fire department to
which the relief association is associated on the date that the relief association
is established and incorporated, the requirement that the member complete at
least five years of active membership with the relief association before
separation from active service may be waived by the board of trustees of the
relief association if the member completes at least five years of inactive
membership with the relief association before the date of the
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payment of the service pension.� During the period of inactive membership, the
member is not entitled to receive disability benefit coverage, is not entitled
to receive additional service credit towards computation of a service pension,
and is considered to have the status of a person entitled to a deferred service
pension under subdivision 7.
(c) No municipality or nonprofit firefighting
corporation may delegate the power to take final action in setting a service
pension or ancillary benefit amount or level to the board of trustees of the
relief association or to approve in advance a service pension or ancillary
benefit amount or level equal to the maximum amount or level that this chapter
would allow rather than a specific dollar amount or level.
(d) No relief association as defined in section
424A.001, subdivision 4, may pay a defined benefit service pension or
disability benefit to a former member of the relief association if that person
has not separated from active service with the fire department to which the
relief association is directly associated, unless:
(1) the person is employed subsequent to retirement by
the municipality or the independent nonprofit firefighting corporation,
whichever applies, to perform duties within the municipal fire department or
corporation on a full‑time basis;
(2) the governing body of the municipality or of the
corporation has filed its determination with the board of trustees of the relief
association that the person's experience with and service to the fire
department in that person's full-time capacity would be difficult to replace;
and
(3) the bylaws of the relief association were amended
to provide for the payment of a service pension or disability benefit for such
full-time employees.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 25.�
Minnesota Statutes 2008, section 424A.02, subdivision 2, is amended to
read:
Subd. 2.� Nonforfeitable portion of service pension.� (a) If the articles of incorporation or
bylaws of a defined benefit relief association so provide, a the
relief association may pay a reduced service pension to a retiring member
who has completed fewer than 20 years of service.� The reduced service pension may be paid when
the retiring member meets the minimum age and service requirements of
subdivision 1.
(b) The amount of the reduced service pension may not
exceed the amount calculated by multiplying the service pension appropriate for
the completed years of service as specified in the bylaws times multiplied
by the applicable nonforfeitable percentage of pension.
(c) For a defined benefit volunteer firefighter
relief association that pays a lump-sum service pension, a monthly benefit
service pension, or a lump-sum service pension or a monthly benefit service
pension as alternative benefit forms, the nonforfeitable percentage of pension
amounts are as follows:
������������������������������ Completed
Years of Service������������������������ Nonforfeitable
Percentage
��������������������������������������������������������������������������������������������������������������� of
Pension Amount
�������������������������������������������������������� 5���������������������������������������������������������� 40
percent
�������������������������������������������������������� 6���������������������������������������������������������� 44
percent
�������������������������������������������������������� 7���������������������������������������������������������� 48
percent
�������������������������������������������������������� 8���������������������������������������������������������� 52
percent
�������������������������������������������������������� 9���������������������������������������������������������� 56
percent
������������������������������������������������������ 10���������������������������������������������������������� 60
percent
������������������������������������������������������ 11���������������������������������������������������������� 64
percent
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������������������������������������������������������� 12��������������������������������������������������������� 68
percent
������������������������������������������������������� 13��������������������������������������������������������� 72
percent
������������������������������������������������������� 14��������������������������������������������������������� 76
percent
������������������������������������������������������� 15��������������������������������������������������������� 80
percent
������������������������������������������������������� 16��������������������������������������������������������� 84
percent
������������������������������������������������������� 17��������������������������������������������������������� 88
percent
������������������������������������������������������� 18��������������������������������������������������������� 92
percent
������������������������������������������������������� 19��������������������������������������������������������� 96
percent
������������������������������������������������������� 20
and thereafter���������������������������� 100
percent
(d) For a volunteer firefighter relief association that pays a
defined contribution service pension, the nonforfeitable percentage of pension
amounts are as follows:
�������������������������������� Completed
Years of Service���������������������� Nonforfeitable
Percentage
��������������������������������������������������������������������������������������������������������������� �of Pension Amount
������������������������������������������������������� 5������������������������������������������������������������ 40
percent
������������������������������������������������������� 6������������������������������������������������������������ 52
percent
������������������������������������������������������� 7������������������������������������������������������������ 64
percent
������������������������������������������������������� 8������������������������������������������������������������ 76
percent
������������������������������������������������������� 9������������������������������������������������������������ 88
percent
����������������������������������������������������� 10
and thereafter������������������������������ 100
percent
EFFECTIVE DATE.� This section is
effective July 1, 2009.
Sec. 26.� Minnesota Statutes 2008, section 424A.02,
subdivision 3, is amended to read:
Subd. 3.� Flexible
service pension maximums.� (a)
Annually on or before August 1 as part of the certification of the financial
requirements and minimum municipal obligation determined under section 69.772,
subdivision 4, or 69.773, subdivision 5, as applicable, the secretary or some
other official of the relief association designated in the bylaws of each defined
benefit relief association shall calculate and certify to the governing
body of the applicable qualified municipality the average amount of available
financing per active covered firefighter for the most recent three-year
period.� The amount of available
financing shall include includes any amounts of fire state aid
received or receivable by the relief association, any amounts of municipal
contributions to the relief association raised from levies on real estate or
from other available revenue sources exclusive of fire state aid, and one-tenth
of the amount of assets in excess of the accrued liabilities of the relief
association calculated under section 69.772, subdivision 2; 69.773,
subdivisions 2 and 4; or 69.774, subdivision 2, if any.
(b) The maximum service pension which
the defined benefit relief association has authority to provide for in
its bylaws for payment to a member retiring after the calculation date when the
minimum age and service requirements specified in subdivision 1 are met must be
determined using the table in paragraph (c) or (d), whichever applies.
(c) For a defined benefit relief
association where the governing bylaws provide for a monthly service pension to
a retiring member, the maximum monthly service pension amount per month for
each year of service credited that may be provided for in the bylaws is the
greater of the service pension amount provided for in the bylaws on the date of
the calculation of the average amount of the available financing per active
covered firefighter or the maximum service pension figure corresponding to the
average amount of available financing per active covered firefighter:
���������������������������������������� Minimum
Average Amount������������������������ Maximum
Service Pension
������������������������������������������������������ of
Available ������������������������������������������ �Amount Payable per
������������������������������������������� Financing
per Firefighter���������������������� Month
for Each Year of Service
�������������������������������������������������������������� $
...���������������������������������������������������������� $
.25
���������������������������������������������������������������� 41������������������������������������������������������������� .50
���������������������������������������������������������������� 81����������������������������������������������������������� 1.00
�������������������������������������������������������������� 122����������������������������������������������������������� 1.50
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5574
�������������������������������������������������������������� 162����������������������������������������������������������� 2.00
�������������������������������������������������������������� 203����������������������������������������������������������� 2.50
�������������������������������������������������������������� 243����������������������������������������������������������� 3.00
�������������������������������������������������������������� 284����������������������������������������������������������� 3.50
�������������������������������������������������������������� 324����������������������������������������������������������� 4.00
�������������������������������������������������������������� 365����������������������������������������������������������� 4.50
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�������������������������������������������������������������� 486����������������������������������������������������������� 6.00
�������������������������������������������������������������� 567����������������������������������������������������������� 7.00
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�������������������������������������������������������������� 729����������������������������������������������������������� 9.00
�������������������������������������������������������������� 810��������������������������������������������������������� 10.00
�������������������������������������������������������������� 891��������������������������������������������������������� 11.00
�������������������������������������������������������������� 972��������������������������������������������������������� 12.00
����������������������������������������������������������� 1053��������������������������������������������������������� 13.00
����������������������������������������������������������� 1134��������������������������������������������������������� 14.00
����������������������������������������������������������� 1215��������������������������������������������������������� 15.00
����������������������������������������������������������� 1296��������������������������������������������������������� 16.00
����������������������������������������������������������� 1377��������������������������������������������������������� 17.00
����������������������������������������������������������� 1458��������������������������������������������������������� 18.00
����������������������������������������������������������� 1539��������������������������������������������������������� 19.00
����������������������������������������������������������� 1620��������������������������������������������������������� 20.00
����������������������������������������������������������� 1701��������������������������������������������������������� 21.00
����������������������������������������������������������� 1782��������������������������������������������������������� 22.00
����������������������������������������������������������� 1823��������������������������������������������������������� 22.50
����������������������������������������������������������� 1863��������������������������������������������������������� 23.00
����������������������������������������������������������� 1944��������������������������������������������������������� 24.00
����������������������������������������������������������� 2025��������������������������������������������������������� 25.00
����������������������������������������������������������� 2106��������������������������������������������������������� 26.00
����������������������������������������������������������� 2187��������������������������������������������������������� 27.00
����������������������������������������������������������� 2268��������������������������������������������������������� 28.00
����������������������������������������������������������� 2349��������������������������������������������������������� 29.00
����������������������������������������������������������� 2430��������������������������������������������������������� 30.00
����������������������������������������������������������� 2511��������������������������������������������������������� 31.00
����������������������������������������������������������� 2592��������������������������������������������������������� 32.00
����������������������������������������������������������� 2673��������������������������������������������������������� 33.00
����������������������������������������������������������� 2754��������������������������������������������������������� 34.00
����������������������������������������������������������� 2834��������������������������������������������������������� 35.00
����������������������������������������������������������� 2916��������������������������������������������������������� 36.00
����������������������������������������������������������� 2997��������������������������������������������������������� 37.00
����������������������������������������������������������� 3078��������������������������������������������������������� 38.00
����������������������������������������������������������� 3159��������������������������������������������������������� 39.00
����������������������������������������������������������� 3240��������������������������������������������������������� 40.00
����������������������������������������������������������� 3321��������������������������������������������������������� 41.00
����������������������������������������������������������� 3402��������������������������������������������������������� 42.00
����������������������������������������������������������� 3483��������������������������������������������������������� 43.00
����������������������������������������������������������� 3564��������������������������������������������������������� 44.00
����������������������������������������������������������� 3645��������������������������������������������������������� 45.00
����������������������������������������������������������� 3726��������������������������������������������������������� 46.00
����������������������������������������������������������� 3807��������������������������������������������������������� 47.00
����������������������������������������������������������� 3888��������������������������������������������������������� 48.00
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5575
����������������������������������������������������������� 3969��������������������������������������������������������� 49.00
����������������������������������������������������������� 4050��������������������������������������������������������� 50.00
����������������������������������������������������������� 4131��������������������������������������������������������� 51.00
����������������������������������������������������������� 4212��������������������������������������������������������� 52.00
����������������������������������������������������������� 4293��������������������������������������������������������� 53.00
����������������������������������������������������������� 4374��������������������������������������������������������� 54.00
����������������������������������������������������������� 4455��������������������������������������������������������� 55.00
����������������������������������������������������������� 4536��������������������������������������������������������� 56.00
Effective beginning December 31, 2008���������������������������������������������������������������������������������
����������������������������������������������������������� 4617��������������������������������������������������������� 57.00
����������������������������������������������������������� 4698��������������������������������������������������������� 58.00
����������������������������������������������������������� 4779��������������������������������������������������������� 59.00���������������
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����������������������������������������������������������� 4941��������������������������������������������������������� 61.00���������������
����������������������������������������������������������� 5022��������������������������������������������������������� 62.00���������������
����������������������������������������������������������� 5103��������������������������������������������������������� 63.00���������������
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Effective beginning December 31, 2009���������������������������������������������������������������������������������
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����������������������������������������������������������� 5427��������������������������������������������������������� 67.00���������������
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����������������������������������������������������������� 5589��������������������������������������������������������� 69.00���������������
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����������������������������������������������������������� 5751��������������������������������������������������������� 71.00���������������
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Effective beginning December 31, 2010���������������������������������������������������������������������������������
����������������������������������������������������������� 6075��������������������������������������������������������� 75.00���������������
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����������������������������������������������������������� 6480��������������������������������������������������������� 80.00���������������
����������������������������������������������������������� 6561��������������������������������������������������������� 81.00���������������
����������������������������������������������������������� 6642��������������������������������������������������������� 82.00���������������
����������������������������������������������������������� 6723��������������������������������������������������������� 83.00���������������
Effective beginning December 31, 2011���������������������������������������������������������������������������������
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Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5576
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Effective
beginning December 31, 2012���������������������������������������������������������������������������������
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�������������� any amount in excess of 8100������������������������������������������������������ 100.00���������������
(d) For a defined benefit relief association in
which the governing bylaws provide for a lump-sum service pension to a retiring
member, the maximum lump-sum service pension amount for each year of service
credited that may be provided for in the bylaws is the greater of the service
pension amount provided for in the bylaws on the date of the calculation of the
average amount of the available financing per active covered firefighter or the
maximum service pension figure corresponding to the average amount of available
financing per active covered firefighter for the applicable specified period:
������������������������������������ Minimum
Average Amount������������������������������ Maximum
Lump-Sum
���������������������������������������� of
Available Financing�������������������������������� Service
Pension Amount
������������������������������������������������ per
Firefighter�������������������������������� Payable
for Each Year of Service
�������������������������������������������������������������� $
...����������������������������������������������������������� $
10
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Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5577
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Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5578
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beginning December 31, 2008�����������������������������������������������������������������
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����������������������������������������������������������� 4803���������������������������������������������������������� 8900���������������
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Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5579
Effective
beginning December 31, 2010���������������������������������������������������������������������������������
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����������������������������������������������������������� 5397������������������������������������������������������ 10,000���������������
�������������� any amount in excess of 5397������������������������������������������������������ 10,000���������������
(e) For a defined benefit relief association in
which the governing bylaws provide for a monthly benefit service pension as an
alternative form of service pension payment to a lump-sum service pension, the
maximum service pension amount for each pension payment type must be determined
using the applicable table contained in this subdivision.
(f) If a defined benefit relief association
establishes a service pension in compliance with the applicable maximum
contained in paragraph (c) or (d) and the minimum average amount of available
financing per active covered firefighter is subsequently reduced because of a
reduction in fire state aid or because of an increase in the number of active
firefighters, the relief association may continue to provide the prior service
pension amount specified in its bylaws, but may not increase the service
pension amount until the minimum average amount of available financing per
firefighter under the table in paragraph (c) or (d), whichever applies,
permits.
(g) No defined benefit relief association is
authorized to provide a service pension in an amount greater than the largest
applicable flexible service pension maximum amount even if the amount of
available financing per firefighter is greater than the financing amount
associated with the largest applicable flexible service pension maximum.
(h) The method of calculating service
pensions must be applied uniformly for all years of active service.� Credit must be given for all years of active
service except for caps on service credit if so provided in the bylaws of the
relief association.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 27.�
Minnesota Statutes 2008, section 424A.02, subdivision 3a, is amended to
read:
Subd. 3a.� Penalty for paying pension greater than
applicable maximum.� (a) If a defined
benefit relief association pays a service pension greater than the maximum service
pension associated with the applicable average amount of available financing
per active covered firefighter under the table in subdivision 3, paragraph (c)
or (d), whichever applies, the maximum service pension under subdivision 3,
paragraph (f), or the applicable maximum service pension amount specified in
subdivision 3, paragraph (g), whichever is less, the state auditor shall:
(1) disqualify the municipality or the nonprofit
firefighting corporation associated with the relief association from receiving
fire state aid by making the appropriate notification to the municipality and
the commissioner of revenue, with the disqualification applicable for the next
apportionment and payment of fire state aid; and
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(2) order the treasurer of the applicable relief
association to recover the amount of the overpaid service pension or
pensions from any retired firefighter who received an overpayment.
(b) Fire state aid amounts from disqualified
municipalities for the period of disqualifications under paragraph (a), clause
(1), must be credited to the amount of fire insurance premium tax proceeds
available for the next subsequent fire state aid apportionment.
(c) The amount of any overpaid service pension
recovered under paragraph (a), clause (2), must be credited to the amount of
fire insurance premium tax proceeds available for the next subsequent fire
state aid apportionment.
(d) The determination of the state auditor that a
relief association has paid a service pension greater than the applicable
maximum must be made on the basis of the information filed by the relief
association and the municipality with the state auditor under sections 69.011,
subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, and any
other relevant information that comes to the attention of the state
auditor.� The determination of the state
auditor is final.� An aggrieved municipality,
relief association, or person may appeal the determination under section
480A.06.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 28.�
Minnesota Statutes 2008, section 424A.02, subdivision 7, is amended to
read:
Subd. 7.� Deferred service pensions.� (a) A member of a defined benefit relief
association is entitled to a deferred service pension if the member:
(1) has completed the lesser of either the
minimum period of active service with the fire department specified in the
bylaws or 20 years of active service with the fire department;
(2) has completed at least five years of active
membership in the relief association; and
(3) separates from active service and membership before
reaching age 50 or the minimum age for retirement and commencement of a service
pension specified in the bylaws governing the relief association if that age is
greater than age 50.
(b) The deferred service pension is payable when the
former member reaches age 50, or the minimum age specified in the bylaws
governing the relief association if that age is greater than age 50, and when
the former member makes a valid written application.
(c) A defined benefit relief association that
provides a lump-sum service pension governed by subdivision 3 may, when its
governing bylaws so provide, pay interest on the deferred lump-sum service
pension during the period of deferral.�
If provided for in the bylaws, interest must be paid in one of the
following manners:
(1) at the investment performance rate actually earned
on that portion of the assets if the deferred benefit amount is invested by the
relief association in a separate account established and maintained by the
relief association or if the deferred benefit amount is invested in a separate
investment vehicle held by the relief association; or
(2) at an interest rate of up to five percent,
compounded annually, as set by the board of directors and approved as provided
in subdivision 10.
(d) Interest under paragraph (c), clause (2), is
payable following the date on which the municipality has approved the deferred
service pension interest rate established by the board of trustees.
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(e) A relief association that provides
a defined contribution service pension may, if its governing bylaws so provide,
credit interest or additional investment performance on the deferred lump-sum
service pension during the period of deferral.�
If provided for in the bylaws, the interest must be paid in one of the
manners specified in paragraph (c) or alternatively the relief association may
credit any investment return on the assets of the special fund of the defined
contribution volunteer firefighter relief association in proportion to the
share of the assets of the special fund to the credit of each individual
deferred member account through the date on which the investment return is recognized
by and credited to the special fund.
(f) (e) For a deferred service pension that is
transferred to a separate account established and maintained by the relief
association or separate investment vehicle held by the relief association, the
deferred member bears the full investment risk subsequent to transfer and in
calculating the accrued liability of the volunteer firefighters relief
association that pays a lump-sum service pension, the accrued liability for
deferred service pensions is equal to the separate relief association account
balance or the fair market value of the separate investment vehicle held by the
relief association.
(g) (f) The deferred service pension is governed by
and must be calculated under the general statute, special law, relief
association articles of incorporation, and relief association bylaw provisions
applicable on the date on which the member separated from active service with
the fire department and active membership in the relief association.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 29.�
Minnesota Statutes 2008, section 424A.02, subdivision 8, is amended to
read:
Subd. 8.� Lump-sum service pensions; installment
payments.� (a) Any A
defined benefit relief association, if the governing bylaws so provide, may
pay, at the option of the retiring member intended recipient and
in lieu of a single payment of a lump-sum service pension or survivor
benefit, a lump-sum service pension or survivor benefit in installments.
(b) The election of installment payments shall be
is irrevocable and shall must be made by the retiring
member intended recipient in writing and filed with the secretary of
the relief association no later than 30 days prior to before the
commencement of payment of the service pension or survivor benefit.� The amount of the installment payments shall
must be determined so that the present value of the aggregate
installment payments computed at an interest rate of five percent, compounded
annually, is equal to the amount of the single lump-sum payment which would
have been made had the installment payments option not been elected.� The payment of each installment shall include
interest at the rate of five percent, compounded annually on the reserve
supporting the remaining installment payments as of the date on which the
previous installment payment was paid and computed from the date on which the
previous installment payment was paid to the date of payment for the current
installment payment in any reasonable manner provided for in the
governing bylaws, but the total amount of installment payments may not exceed
the single payment service pension amount plus interest at an annual rate of
five percent on the amount of delayed payments for the period during which
payment was delayed.
(c) To the extent that the
commissioner of commerce deems it to be necessary or practical, the
commissioner may specify and issue procedures, forms or mathematical tables for
use in performing the calculations required pursuant to this subdivision.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 30.�
Minnesota Statutes 2008, section 424A.02, subdivision 9, is amended to
read:
Subd. 9.� Limitation on ancillary benefits.� Any A defined benefit relief
association, including any volunteer firefighters relief association governed
by section 69.77 or any volunteer firefighters division of a relief association
governed by chapter 424, may only pay ancillary benefits which would constitute
an authorized disbursement as specified in section 424A.05 subject to the
following requirements or limitations:
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(1) with respect to a defined benefit relief
association in which governing bylaws provide for a lump-sum service pension to
a retiring member, no ancillary benefit may be paid to any former member or
paid to any person on behalf of any former member after the former member (i)
terminates active service with the fire department and active membership in the
relief association; and (ii) commences receipt of a service pension as
authorized under this section; and
(2) with respect to any defined benefit relief
association, no ancillary benefit paid or payable to any member, to any former
member, or to any person on behalf of any member or former member, may exceed
in amount the total earned service pension of the member or former member.� The total earned service pension must be
calculated by multiplying the service pension amount specified in the bylaws of
the relief association at the time of death or disability, whichever applies,
by the years of service credited to the member or former member.� The years of service must be determined as of
(i) the date the member or former member became entitled to the ancillary
benefit; or (ii) the date the member or former member died entitling a survivor
or the estate of the member or former member to an ancillary benefit.� The ancillary benefit must be calculated
without regard to whether the member had attained the minimum amount of service
and membership credit specified in the governing bylaws.� For active members, the amount of a permanent
disability benefit or a survivor benefit must be equal to the member's total
earned service pension except that the bylaws of any 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.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 31.� Minnesota
Statutes 2008, section 424A.02, subdivision 9a, is amended to read:
Subd. 9a.� Postretirement increases.� Notwithstanding any provision of general or
special law to the contrary, a defined benefit relief association paying
a monthly service pension may provide a postretirement increase to retired
members and ancillary benefit recipients of the relief association if (1) the
relief association adopts an appropriate bylaw amendment; and (2) the bylaw
amendment is approved by the municipality pursuant to subdivision 10 and
section 69.773, subdivision 6.� The
postretirement increase shall be is applicable only to retired
members and ancillary benefit recipients receiving a service pension or ancillary
benefit as of the effective date of the bylaw amendment.� The authority to provide a postretirement
increase to retired members and ancillary benefit recipients of a relief
association contained in this subdivision shall supersede supersedes any
prior special law authorization relating to the provision of postretirement
increases.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 32.�
Minnesota Statutes 2008, section 424A.02, subdivision 9b, is amended to
read:
Subd. 9b.� Repayment of service pension in certain
instances.� If a retired volunteer
firefighter does not permanently separate from active firefighting service as
required by subdivision 1 and section 424A.001, subdivision 9, by resuming
active service as a firefighter in the same volunteer fire department or as a
person in charge of firefighters in the same volunteer fire department, no
additional service pension amount is payable to the person, no additional
service is creditable to the person, and the person shall must repay
to the defined benefit relief association any previously received
service pension.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 33.�
Minnesota Statutes 2008, 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 shall 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
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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 shall disqualify 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 pursuant to 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 pursuant to 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 pursuant to under section 69.80 payable from the
special fund of the relief association shall be 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 pursuant to
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 prior 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 future 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 pursuant to under this subdivision, and,
subsequent to the amendment or adoption, the financial requirements of the
special fund pursuant to under this section are such so as to
require financial support from the municipality, the provision which was
implemented without municipal ratification shall is no longer be
effective without municipal ratification, and any service pensions or ancillary
benefits payable after that date shall 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 July 1, 2009.
Sec. 34.�
Minnesota Statutes 2008, section 424A.02, subdivision 12, is amended to
read:
Subd. 12.� Transfer of service credit to new district.� Notwithstanding the requirements of
subdivision 1 or any other law, a member of a fire department which is
disbanded upon formation of a fire district to serve substantially the same
geographic area, who serves as an active firefighter with the new district fire
department, and is a member of the district firefighters' defined benefit relief
association shall be is entitled to a nonforfeitable service
pension from the new relief association upon completion of a combined total of
20 years active service in the disbanded and the new departments.� The amount of the service pension shall be
is based upon years of service in the new department only, and shall
must be in an amount equal to the accrued liability for the appropriate
years of service calculated in accordance with section 69.772, subdivision 2.
Sec. 35.� Minnesota
Statutes 2008, section 424A.02, subdivision 13, is amended to read:
Subd. 13.� Combined service pensions.� (a) If the articles of incorporation or
bylaws of the defined benefit relief associations so provide, a
volunteer firefighter with credit for service as an active firefighter in more
than one defined benefit volunteer firefighters relief association is
entitled, when the applicable requirements of paragraph (b) are met and when
otherwise qualified, to a prorated service credit from each relief association.
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(b) A volunteer firefighter receiving a prorated
service pension under this subdivision must have a total amount of service
credit of ten years or more, if the bylaws of every affected relief
association does do not require specify only a
five-year service vesting requirement, or five years or more, if the bylaws
of every affected relief association requires require only a
five-year service vesting requirement, as a member of two or more relief
associations otherwise qualified.� The
member must have one year or more of service credit in each relief association.� The prorated service pension must be based on
the service pension amount in effect for the relief association on the date on
which active volunteer firefighting services covered by that relief association
terminate.� To receive a service pension
under this subdivision, the firefighter must become a member of the second or
succeeding association and must give notice of membership to the prior
association within two years of the date of termination of active service with
the prior association.� The notice must
be attested to by the second or subsequent relief association secretary.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 36.�
Minnesota Statutes 2008, section 424A.021, is amended to read:
424A.021 CREDIT FOR
BREAK IN SERVICE TO PROVIDE UNIFORMED SERVICE.�
Subdivision 1.� Authorization.� Subject to restrictions stated in this
section, a volunteer firefighter who is absent from firefighting service due to
service in the uniformed services, as defined in United States Code, title 38,
section 4303(13), may obtain service credit if the relief association is a
defined benefit plan or an allocation of any fire state aid, any municipal
contributions, and any investment return received by the relief association
as though the person was an active member if the relief association is a
defined contribution plan for the period of the uniformed service, not to
exceed five years, unless a longer period is required under United States Code,
title 38, section 4312.
Subd. 2.� Limitations.� (a) To be eligible for service credit or an investment
return allocation as though an active member under this section, the
volunteer firefighter must return to firefighting service with coverage by the
same relief association or by the successor to that relief association upon
discharge from service in the uniformed service within the time frame required
in United States Code, title 38, section 4312(e).
(b) Service credit or an investment return
allocation as though an active member is not authorized if the
firefighter separates from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions.
(c) Service credit or an investment return
allocation as though an active member is not authorized if the
firefighter fails to provide notice to the fire department that the individual
is leaving to provide service in the uniformed service, unless it is not
feasible to provide that notice due to the emergency nature of the situation.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 37.�
Minnesota Statutes 2008, section 424A.03, is amended to read:
424A.03 UNIFORMITY OF
VOLUNTEER FIREFIGHTER SERVICE PENSION AND RETIREMENT BENEFITS.�
Subdivision 1.� Limitation on nonuniformity of pensions.� Every partially salaried and partially
volunteer firefighters' relief association shall must provide
service pensions to volunteer firefighter members based on the years of service
of the members not on the compensation paid to the members for firefighting
services.� Each relief association shall
must provide service pensions to salaried members as set forth in
chapter 424 and applicable special laws.
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Subd. 2.� Penalties for violations.� Any A municipality which has a
fire department to which associated with a relief association
which violates the provisions of subdivision 1 is directly associated or which
contracts with an independent nonprofit firefighting corporation of which
associated with a relief association which violates the provisions of
subdivision 1 is a subsidiary shall may not be included in the
apportionment of fire state aid by the commissioner of commerce to the
applicable county auditor pursuant to under section 69.021,
subdivision 6, and shall may not be included in the apportionment
of fire state aid by the county auditor to the various municipalities pursuant
to under section 69.021, subdivision 7.
Subd. 3.� Exception to application of limitation and
penalty. �The limitation provided for
in subdivision 1 shall does not apply to any relief association
which prior to before January 1, 1957, had established a definite
service pension formula for members of the partially salaried and partially volunteer
firefighters' relief association who are regularly employed firefighters.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 38.�
Minnesota Statutes 2008, section 424A.04, is amended to read:
424A.04
VOLUNTEER RELIEF ASSOCIATIONS; BOARD OF TRUSTEES.�
Subdivision 1.� Membership.� (a) A relief association that is directly
associated with a municipal fire department must be managed by a board of
trustees consisting of nine members.� Six
trustees must be elected from the membership of the relief association and
three trustees must be drawn from the officials of the municipalities served by
the fire department to which the relief association is directly
associated.� The bylaws of a relief association
which provides a monthly benefit service pension may provide that one of the
six trustees elected from the relief association membership may be a retired
member receiving a monthly pension who is elected by the membership of the
relief association.� The three municipal
trustees must be one elected municipal official and one elected or appointed
municipal official who are designated as municipal representatives by the
municipal governing board annually and the chief of the municipal fire
department.
(b) A relief association that is a subsidiary of an
independent nonprofit firefighting corporation must be managed by a board of
trustees consisting of nine members.� Six
trustees must be elected from the membership of the relief association, two
trustees must be drawn from the officials of the municipalities served by the
fire department to which the relief association is directly associated, and one
trustee shall must be the fire chief serving with the independent
nonprofit firefighting corporation.� The
bylaws of a relief association may provide that one of the six trustees elected
from the relief association membership may be a retired member receiving a
monthly pension who is elected by the membership of the relief
association.� The two municipal trustees
must be elected or appointed municipal officials, selected as follows:
(1) if only one municipality contracts with the
independent nonprofit firefighting corporation, the municipal trustees must be
two officials of the contracting municipality who are designated annually by
the governing body of the municipality; or
(2) if two or more municipalities contract with the
independent nonprofit corporation, the municipal trustees must be one official
from each of the two largest municipalities in population who are designated
annually by the governing bodies of the applicable municipalities.
(c) The municipal trustees for a relief association
that is directly associated with a fire department operated as or by a joint
powers entity must be the fire chief of the fire department and two trustees
designated annually by the joint powers board.� The municipal trustees for a relief
association that is directly associated with a fire department service area
township must be the fire chief of the fire department and two trustees designated
by the township board.
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(d) If a relief association lacks the municipal board
members provided for in paragraph (a), (b), or (c) because the fire department
is not located in or associated with an organized municipality, joint powers
entity, or township, the municipal board members must be the fire chief of
the fire department and two board members appointed from the fire department
service area by the board of commissioners of the applicable county.
(e) The term of these the appointed
municipal board members is one year or until the person's successor is
qualified, whichever is later.
(f) A municipal trustee under paragraph (a), (b), (c),
or (d) has all the rights and duties accorded to any other trustee, except the
right to be an officer of the relief association board of trustees.
(g) A board must have at least three officers, who are
a president, a secretary and a treasurer.�
These officers must be elected from among the elected trustees by either
the full board of trustees or by the relief association membership, as
specified in the bylaws.� In no event may
any trustee hold more than one officer position at any one time.� The terms of the elected trustees and of the
officers of the board must be specified in the bylaws of the relief
association, but may not exceed three years.�
If the term of the elected trustees exceeds one year, the election of
the various trustees elected from the membership must be staggered on as equal
a basis as is practicable.
Subd. 2.� Fiduciary duty.� The board of trustees of a relief
association shall undertake their activities consistent with chapter 356A.
Subd. 2a.�
Fiduciary responsibility.� In the discharge of their respective
duties, the officers and trustees shall be held to the standard of care
specified in section 11A.09.� In
addition, the trustees shall act in accordance with chapter 356A.� Each member of the board is a fiduciary and
shall undertake all fiduciary activities in accordance with the standard of
care of section 11A.09, and in a manner consistent with chapter 356A.� No fiduciary of a relief association shall
cause a relief association to engage in a transaction if the fiduciary knows or
should know that the transaction constitutes one of the following direct or
indirect transactions:
(1) sale or exchange or leasing of
any real property between the relief association and a board member;
(2) lending of money or other
extension of credit between the relief association and a board member or member
of the relief association;
(3) furnishing of goods, services, or
facilities between the relief association and a board member; or
(4) transfer to a board member, or
use by or for the benefit of a board member, of any assets of the relief
association.� A transfer of assets does
not mean the payment of relief association benefits or administrative expenses
permitted by law.
Subd. 3.� Conditions on relief association
consultants.� (a) If a volunteer
firefighter relief association hires employs or contracts with a
consultant to provide legal or financial advice, the secretary of the relief
association shall obtain and the consultant shall provide to the
secretary of the relief association a copy of the consultant's certificate
of insurance.
(b) A consultant is any person who is employed under
contract to provide legal or financial advice and who is or who represents to
the volunteer firefighter relief association that the person is:
(1) an actuary;
(2) a licensed public accountant or a certified public
accountant;
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(3) an attorney;
(4) an investment advisor or manager, or an investment
counselor;
(5) an investment advisor or manager selection
consultant;
(6) a pension benefit design advisor or consultant; or
(7) any other financial consultant.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 39.�
Minnesota Statutes 2008, section 424A.05, subdivision 1, is amended to
read:
Subdivision 1.� Establishment of special fund.� Every volunteer firefighters' relief
association shall establish and maintain a special fund within the relief
association.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 40.�
Minnesota Statutes 2008, section 424A.05, subdivision 2, is amended to
read:
Subd. 2.� Special fund assets and revenues.� The special fund shall must be
credited with all fire state aid moneys received pursuant to under sections
69.011 to 69.051, all taxes levied by or other revenues received from the
municipality pursuant to under sections 69.771 to 69.776 or any
applicable special law requiring municipal support for the relief association,
any moneys or property donated, given, granted or devised by any person which
is specified for use for the support of the special fund and any interest or
investment return earned upon the assets of the special fund.� The treasurer of the relief association shall
be is the custodian of the assets of the special fund and shall
must be the recipient on behalf of the special fund of all revenues
payable to the special fund.� The
treasurer shall maintain adequate records documenting any transaction involving
the assets or the revenues of the special fund.�
These records and the bylaws of the relief association shall be are
public and shall must be open for inspection by any member of
the relief association, any officer or employee of the state or of the
municipality, or any member of the public, at reasonable times and places.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 41.�
Minnesota Statutes 2008, section 424A.05, subdivision 3, is amended to
read:
Subd. 3.� Authorized disbursements from the special
fund.� (a) Disbursements from the
special fund are may not permitted to 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 payment of temporary or permanent
disability benefits to disabled members of the relief association if authorized
and paid pursuant to under law and specified in amount in the
bylaws governing the relief association;
(3) 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, for the payment of a death benefit to the estate of
the deceased active or deferred firefighter, if authorized by and paid pursuant
to under law and specified in amount in the bylaws governing the
relief association;
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(4) for the payment of the fees, dues and assessments to
the Minnesota State Fire Department Association, and to the
Minnesota Area Relief Association Coalition, and to the state Volunteer
Firefighters Benefit Association in order to entitle relief association
members to membership in and the benefits of these associations or
organizations; and
(5) 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
(5) (6) 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 July 1, 2009.
Sec. 42.�
Minnesota Statutes 2008, section 424A.05, subdivision 4, is amended to
read:
Subd. 4.� Investments of assets of the special fund.� The assets of the special fund shall must
be invested only in securities authorized by section 69.775.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
Sec. 43.�
Minnesota Statutes 2008, section 424A.06, is amended to read:
424A.06
RELIEF ASSOCIATION GENERAL FUND.�
Subdivision 1.� Establishment of general fund.� Any A volunteer firefighters'
relief association may establish and maintain a general fund within the relief
association.
Subd. 2.� General fund assets and revenues.� To the general fund, if established, shall
must be credited all moneys received from dues, fines, initiation fees,
entertainment revenues and any moneys or property donated, given, granted or
devised by any person, for unspecified uses.�
The treasurer of the relief association shall be is the
custodian of the assets of the general fund and shall must be the
recipient on behalf of the general fund of all revenues payable to the general
fund.� The treasurer shall maintain
adequate records documenting any transaction involving the assets or the
revenues of the general fund.� These
records shall must be open for inspection by any member of the
relief association at reasonable times and places.
Subd. 3.� Authorized disbursements from the general
fund.� Disbursements from the general
fund may be made for any purpose that is authorized by either the
articles of incorporation or bylaws of the relief association.
Subd. 4.� Investment of assets of the general fund.� The assets of the general fund may be
invested in any securities that are authorized by the bylaws of the
relief association and may be certified for investment by the State Board of
Investment in fixed income pools or in a separately managed account at the
discretion of the State Board of Investment as provided in section 11A.14.
EFFECTIVE
DATE.� This section is effective July 1, 2009.
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Sec. 44.�
Minnesota Statutes 2008, section 424A.07, is amended to read:
424A.07 NONPROFIT
FIREFIGHTING CORPORATIONS; ESTABLISHMENT OF RELIEF ASSOCIATIONS.�
Prior to Before paying any service
pensions or retirement benefits pursuant to under section 424A.02
or before becoming entitled to receive any amounts of fire state aid
upon transmittal from a contracting municipality pursuant to under section
69.031, subdivision 5, a nonprofit firefighting corporation shall establish a volunteer
firefighters' relief association governed by this chapter.
Sec. 45.�
Minnesota Statutes 2008, 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 shall 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 for of construction,
acquisition, repair and, 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 and which has
full-time firefighters with retirement coverage by the public employees police
and fire retirement plan may disburse the fire state aid as provided in
paragraph (a), for the payment of the employer contribution requirement with
respect to firefighters covered by the public employees police and fire
retirement plan under section 353.65, subdivision 3, or for a combination of
the two types of disbursements.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 46.�
Minnesota Statutes 2008, section 424A.10, subdivision 1, is amended to
read:
Subdivision 1.� Definitions.� For purposes of this section:
(1) "qualified recipient" means an
individual who receives a lump-sum distribution of pension or retirement
benefits from a volunteer firefighters' relief association for service
that the individual has performed as a volunteer firefighter;
(2) "survivor of a deceased active or deferred
volunteer firefighter" means the legally married surviving spouse
of a deceased active or deferred volunteer firefighter under section
424A.001, subdivision 6, or, if none, the surviving minor child or minor
children of a deceased active or deferred volunteer firefighter;
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(3) "active volunteer firefighter" means a
person who regularly renders fire suppression service for a municipal fire
department or an independent nonprofit firefighting corporation, who has met
the statutory and other requirements for relief association membership, and who
has been is deemed by the relief association under law and its bylaws
to be a fully qualified member of the relief association for at least one
month; and
(4) "deferred volunteer firefighter" means a
former active volunteer firefighter who terminated active firefighting service,
has sufficient service credit from the applicable relief association to be
entitled to a service pension under the bylaws of the relief association,
but has not applied for or has not received the service pension.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 47.�
Minnesota Statutes 2008, section 424A.10, subdivision 2, is amended to
read:
Subd. 2.� Payment of supplemental benefit.� (a) Upon the payment by a volunteer firefighters'
relief association of a lump-sum distribution to a qualified recipient, the
association must pay a supplemental benefit to the qualified recipient.� Notwithstanding any law to the contrary, the
relief association must pay the supplemental benefit out of its special
fund.� The amount of This benefit equals
is an amount equal to ten percent of the regular lump-sum distribution
that is paid on the basis of the recipient's service as a volunteer
firefighter.� In no case may the amount
of the supplemental benefit exceed $1,000.�
A supplemental benefit under this paragraph may not be paid to a
survivor of a deceased active or deferred volunteer firefighter in that
capacity.
(b) Upon the payment by a relief association of a
lump-sum survivor benefit or funeral benefit to a survivor of a deceased
active volunteer firefighter or of a deceased deferred volunteer firefighter,
the association may pay a supplemental survivor benefit to the survivor of the
deceased active or deferred volunteer firefighter from the special fund of the
relief association if its articles of incorporation or bylaws so provide.� The amount of the supplemental survivor
benefit is 20 percent of the survivor benefit or funeral benefit,
but not to exceed $2,000.
(c) An individual may receive a supplemental benefit
under paragraph (a) or under paragraph (b), but not under both paragraphs with
respect to one lump-sum volunteer firefighter benefit.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 48.�
Minnesota Statutes 2008, section 424A.10, subdivision 3, is amended to
read:
Subd. 3.� State reimbursement.� (a) Each year, to be eligible for state
reimbursement of the amount of supplemental benefits paid under subdivision 2
during the preceding calendar year, the volunteer firefighters' relief
association must shall apply to the commissioner of revenue by
February 15.� By March 15, the commissioner
shall reimburse the relief association for the amount of the supplemental
benefits paid by the relief association to qualified recipients and to
survivors of deceased active or deferred volunteer firefighters.
(b) The commissioner of revenue shall prescribe the
form of and supporting information that must be supplied as part of the
application for state reimbursement.� The
commissioner of revenue shall reimburse the relief association by paying the
reimbursement amount to the treasurer of the municipality where the association
is located.� Within 30 days after
receipt, the municipal treasurer shall transmit the state reimbursement to the
treasurer of the association if 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 reimbursement payment to
the association until the complete financial report is filed.� If the association has dissolved or has been
removed as a trustee of state aid, the treasurer shall deposit the money in a
special account in the municipal treasury, and the money may be disbursed only
for the purposes and in the manner provided in section 424A.08.� When paid to the association, the
reimbursement payment must be deposited in the special fund of the relief
association.
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(c) A sum sufficient to make the payments is
appropriated from the general fund to the commissioner of revenue.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 49.�
Minnesota Statutes 2008, section 424A.10, subdivision 4, is amended to
read:
Subd. 4.� In lieu of income tax exclusion.� (a) The supplemental benefit provided by this
section is in lieu of the state income tax exclusion for lump-sum distributions
of retirement benefits paid to volunteer firefighters.
(b) If the law is modified to exclude or exempt
volunteer firefighters' lump-sum distributions from state income taxation, the
supplemental benefits under this section may are no longer be
paid payable, beginning with the first calendar year in which the
exclusion or exemption is effective.�
This subdivision does not apply to exemption of all or part of a
lump-sum distribution under section 290.032 or 290.0802.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 50.�
Minnesota Statutes 2008, section 424A.10, subdivision 5, is amended to
read:
Subd. 5.� Retroactive reimbursement in certain
instances.� A supplemental survivor or
funeral benefit may be paid by a relief association for the death of an
active volunteer firefighter or of a deferred volunteer firefighter that
occurred on or after August 1, 2005, if the relief association articles of
incorporation or bylaws so provide for a supplemental survivor benefit
and provide for retroactivity.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 51.�
Minnesota Statutes 2008, section 424B.10, is amended by adding a
subdivision to read:
Subd. 1a.�
Applicability.� This section applies when all of the
volunteer firefighters' relief associations involved in the consolidation are defined
benefit relief associations as defined in section 424A.001, subdivision 1b.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 52.�
Minnesota Statutes 2008, section 424B.10, is amended by adding a
subdivision to read:
Subd. 1b.�
Benefits.� (a) The successor relief association
following the consolidation of two or more defined benefit relief associations
must be a defined benefit relief association.
(b) Notwithstanding any provision of
section 424A.02, subdivision 3, to the contrary, the initial service pension
amount of the subsequent defined benefit relief association as of the effective
date of consolidation is either the service pension amount specified in clause
(1) or the service pension amounts specified in clause (2), as provided for in
the consolidated relief association's articles of incorporation or bylaws:
(1) the highest dollar amount service
pension amount of any prior volunteer firefighters relief association in effect
immediately before the consolidation initiation if the pension amount was
implemented consistent with section 424A.02; or
(2) for service rendered by each
individual volunteer firefighter before consolidation, the service pension
amount under the consolidating volunteer firefighters relief association that the
firefighter belonged to immediately before the consolidation if the pension
amount was implemented consistent with section 424A.02 and for service rendered
after the effective date of the consolidation, the highest dollar amount
service pension of any of the consolidating volunteer firefighters relief
associations in effect immediately before the consolidation if the pension
amount was implemented consistent with section 424A.02.
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(c) Any increase in the service
pension amount beyond the amount implemented under paragraph (a) must conform
with the requirements and limitations of sections 69.771 to 69.775 and section
424A.02.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 53.�
Minnesota Statutes 2008, section 424B.10, subdivision 2, is amended to
read:
Subd. 2.� Funding.� (a) Unless the applicable municipalities
agree in writing to allocate the minimum municipal obligation in a different
manner, the minimum municipal obligation under section 69.772 or 69.773,
whichever applies, must be allocated between the applicable municipalities in
proportion to their fire state aid.
(b) If any applicable municipality fails to meet its
portion of the minimum municipal obligation to the subsequent relief
association, all other applicable municipalities are jointly obligated to
provide the required funding upon certification by the relief association
secretary.� An applicable municipality
that pays the minimum municipal obligation amount for another applicable
municipality, the municipality may collect the that payment
amount, plus a 25 percent surcharge, from the responsible applicable
municipality by any available means, including a deduction from any
state aid or payment amount payable to the responsible municipality upon
certification of the necessary information to the commissioner of finance.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 54.� [424B.11] CONSOLIDATING DEFINED
CONTRIBUTION RELIEF ASSOCIATIONS; INDIVIDUAL ACCOUNTS; FUNDING.�
Subdivision 1.�
Applicability.� This section applies when all of the
volunteer firefighters' relief associations involved in the consolidation are
defined contribution relief associations as defined in section 424A.001,
subdivision 1c.
Subd. 2.�
Individual accounts.� The successor relief association following
the consolidation of two or more defined contribution relief associations must
be a defined contribution relief association and the successor relief
association board shall establish individual accounts for every active member,
inactive member, deferred member, or retired member receiving installment
payments with that status as of the consolidation date.� To each individual account the successor
relief association must credit the amount to the credit of each person by a
predecessor relief association as of the date of consolidation plus a
proportional share, based on account value, of any subsequent net revenue
during the consolidation process.
Subd. 3.�
Funding.� Unless the articles of incorporation or
bylaws of the successor relief association specify that municipal contributions
are wholly voluntary or unless the municipalities associated with the
consolidating defined contribution relief associations agree in writing to a
different municipal support arrangement, each municipality must continue to
provide the same amount of municipal support to the successor relief association
as the municipality provided to the applicable predecessor relief association
in the calendar year immediately prior to the calendar year in which the
consolidation occurs.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 55.� [424B.12] MIXED CONSOLIDATING RELIEF
ASSOCIATIONS; BENEFIT PLAN; FUNDING.�
Subdivision 1.�
Applicability.� This section applies where one or more of
the volunteer firefighters' relief associations involved in the consolidation are
defined benefit relief associations as defined in section 424A.001, subdivision
1b, and one or more of the volunteer firefighters' relief associations involved
in the consolidation are defined contribution relief associations as defined in
section 424A.001, subdivision 1c.
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Subd. 2.�
Benefit plan.� The articles of incorporation or bylaws of
the successor relief association must specify whether the relief association is
a defined benefit relief association or whether the relief association is a
defined contribution relief association.�
If the successor relief association is a defined benefit relief
association, the relief association benefits must comply with sections 424A.02
and 424B.11, subdivision 1a.� If the
successor relief association is a defined contribution relief association, the
relief association must comply with sections 424A.016 and 424B.12, subdivision
2.
Subd. 3.�
Funding.� If the successor relief association is a
defined benefit relief association, the relief association funding is governed
by section 424B.11, subdivision 2.� If the
successor relief association is a defined contribution relief association, the
relief association funding is governed by section 424B.12, subdivision 3.
EFFECTIVE DATE.�
This section is effective July 1, 2009.
Sec. 56.�
Minnesota Statutes 2008, section 424B.21, is amended to read:
424B.21 ANNUITY
PURCHASES UPON DISSOLUTION.�
The board of trustees of a volunteer firefighters
relief association that is scheduled for dissolution may purchase annuity
contracts under section 424A.02 424A.015, subdivision 8a
3, instead of transferring special fund assets to a municipal trust fund
under section 424B.20, subdivision 4.�
Payment of an annuity for which a contract is purchased may not commence
before the retirement age specified in the relief association bylaws and in
compliance with section 424A.016, subdivision 2, or 424A.02, subdivision
1.� Legal title to the annuity contract
transfers to the municipal trust fund under section 424B.20, subdivision 4.
EFFECTIVE DATE.�
This section is effective July 1, 2009, if article 1 is also enacted.
Sec. 57.� BRIMSON FIREFIGHTERS RELIEF ASSOCIATION;
BOARD OF TRUSTEES MEMBERSHIP.�
Notwithstanding any provisions of
Minnesota Statutes, section 424A.04, or other law to the contrary, the Brimson
Firefighters Relief Association must be managed by a board of trustees
consisting of ten members, with six trustees elected from the membership of the
relief association, one trustee drawn from the officials of each municipality
served by the fire department to which the relief association is directly
associated, and one trustee who is the fire chief serving with the independent
nonprofit firefighting corporation.
EFFECTIVE DATE.�
This section is effective the day after the governing body of the
Fairbanks Township and its chief clerical officer timely comply with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
Sec. 58.� REPEALER.�
Subdivision 1.�
Repealed for recodification.� Minnesota Statutes 2008, sections
424A.001, subdivision 7; 424A.02, subdivisions 4, 6, 8a, and 8b; and 424B.10,
subdivision 1, are repealed.
Subd. 2.�
Repealed as obsolete.� Minnesota Statutes 2008, section 424A.09,
is repealed.
Subd. 3.�
Substantive repeal.� Minnesota Statutes 2008, section 424A.02,
subdivision 9b, is repealed.
ARTICLE 12
CORRECTION OF PRIOR DRAFTING ERRORS
Section 1.�
Minnesota Statutes 2008, section 354.66, subdivision 6, is amended to
read:
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Subd. 6.� Insurance.� A board of an employing district entering
into an agreement authorized by this section shall take all steps necessary to
assure continuance of any insurance programs furnished or authorized a full-time
teacher on an identical basis and with identical sharing of costs for a
part-time teacher pursuant to this section, provided, however, that the
requirements of this sentence may be modified by a collective bargaining
agreement between a board and an exclusive representative pursuant to chapter 179
179A.� Teachers as defined in section
136F.43 employed on a less than 75 percent time basis pursuant to this section
shall be eligible for state paid insurance benefits as if the teachers were
employed full time.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 2.�
Minnesota Statutes 2008, 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;
(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) the Duluth Teachers Retirement Fund Association,
established under chapter 354A; and
(9) the Minneapolis Teachers Retirement Fund
Association, established under chapter 354A; and
(10) (9) the
St. Paul Teachers Retirement Fund Association, established under chapter 354A.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 3.�
Minnesota Statutes 2008, section 422A.06, subdivision 8, is amended to
read:
Subd. 8.� Retirement benefit fund.� (a) The retirement benefit fund consists of
amounts held for payment of retirement allowances for members retired under
this chapter, including any transfer amount payable under subdivision 3,
paragraph (c).
(b) Unless subdivision 3, paragraph (c), applies,
assets equal to the required reserves for retirement allowances under this
chapter determined in accordance with the appropriate mortality table adopted
by the board of trustees based on the experience of the fund as recommended by
the actuary retained under section 356.214 must be transferred from the deposit
accumulation fund to the retirement benefit fund as of the last business day of
the month in which the retirement allowance begins.� The income from investments of these assets
must be allocated to this
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fund and any interest charge under subdivision 3,
paragraph (c), must be credited to the fund.�
There must be paid from this fund the retirement annuities authorized by
law.� A required reserve calculation for
the retirement benefit fund must be made by the actuary retained under section
356.214 and must be certified to the retirement board by the actuary retained
under section 356.214.
(c) There is established a deferred yield adjustment
account which must be increased by the sale or disposition of any debt
securities at less than book value and must be decreased by the sale or
disposition of debt securities at more than book value.� At the end of each fiscal year, a portion of
the balance of this account must be offset against the investment income for
that year.� The annual portion of the
balance to be offset must be proportional to the reciprocal of the average
remaining life of the bonds sold, unless the amounts are offset by gains on the
future sales of these securities.� The
amount of this account must be included in the recognized value of assets other
than corporate stocks and all other equity investments.� In any fiscal year in which the gains on the
sales of debt securities exceed the discounts realized on the sales of such
securities, the excess must be used to reduce the balance of the account.� If the realized capital gains are sufficient
to reduce the balance of the account to zero, any excess gains must be
available for the calculation of postretirement adjustments.
(d)(1) Annually, following June 30, the board shall
use the procedures in clauses (2), (3), and (4), to determine whether a
postretirement adjustment is payable and to determine the amount of any
postretirement adjustment.
(2) If 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 increases from June 30 of
the preceding year to June 30 of the current year, the board shall certify the
percentage increase.� The amount
certified must not exceed the lesser of the difference between the
preretirement interest assumption and postretirement interest assumption in
section 356.215, subdivision 8, paragraph (a), or 3.5 percent.
(3) In addition to any percentage increase certified
under paragraph (b), the board shall use the following procedures to determine
if a postretirement adjustment is payable under this paragraph:
(i) the board shall determine the market value of the
fund on June 30 of that year;
(ii) the amount of reserves required as of the current
June 30 for the annuity or benefit payable to an annuitant and benefit
recipient must be determined by the actuary retained under section
356.214.� An annuitant or benefit
recipient who has been receiving an annuity or benefit for at least 12 full
months as of the current June 30 is eligible to receive a full postretirement
adjustment.� An annuitant or benefit
recipient who has been receiving an annuity or benefit for at least one full
month, but less than 12 full months as of the current June 30, is eligible to
receive a partial postretirement adjustment.�
The amount of the reserves for those annuitants and benefit recipients
who are eligible to receive a full postretirement benefit adjustment is known
as "eligible reserves." The amount of the reserves for those
annuitants and benefit recipients who are not eligible to receive a
postretirement adjustment is known as "noneligible reserves." For an
annuitant or benefit recipient who is eligible to receive a partial
postretirement adjustment, additional "eligible reserves" is an
amount that bears the same ratio to the total reserves required for the
annuitant or benefit recipient as the number of full months of annuity or
benefit receipt as of the current June 30 bears to 12 full months.� The remainder of the annuitant's or benefit
recipient's reserves are "noneligible reserves";
(iii) the board shall determine the percentage
increase certified under clause (2) multiplied by the eligible required
reserves, as adjusted for mortality gains and losses, determined under item
(ii);
(iv) the board shall add the amount of reserves
required for the annuities or benefits payable to annuitants and benefit
recipients of the participating public pension plans or funds as of the current
June 30 to the amount determined under item (iii);
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(v) the board shall subtract the amount determined
under item (iv) from the market value of the fund determined under item (i);
(vi) the board shall adjust the amount determined under
item (v) by the cumulative current balance determined under item (viii) and any
negative balance carried forward under item (ix);
(vii) a positive amount resulting from the calculations
in items (i) to (vi) is the excess market value.� A negative amount is the negative balance;
(viii) the board shall allocate one-fifth of the excess
market value or one-fifth of the negative balance to each of five consecutive
years, beginning with the fiscal year ending the current June 30; and
(ix) to calculate the postretirement adjustment under
this paragraph based on investment performance for a fiscal year, the board
shall add together all excess market value allocated to that year and subtract
from the sum all negative balances allocated to that year.� If this calculation results in a negative number,
the entire negative balance must be carried forward and allocated to the next
year.� If the resulting amount is
positive, a postretirement adjustment is payable under this paragraph.� The board shall express a positive amount as
a percentage of the total eligible required reserves certified to the board
under item (ii).
(4) The board shall determine the amount of any
postretirement adjustment which is payable using the following procedure:
(i) the total "eligible" required reserves as
of the first of January next following the end of the fiscal year for the
annuitants and benefit recipients eligible to receive a full or partial
postretirement adjustment as determined by item (ii) must be certified to the
board by the actuary retained under section 356.214.� The total "eligible" required reserves
must be determined by the actuary retained under section 356.214 on the
assumption that all annuitants and benefit recipients eligible to receive a
full or partial postretirement adjustment will be alive on the January 1 in
question; and
(ii) the board shall add the percentage certified under
clause (2) to any positive percentage calculated under clause (3).� The board shall not subtract from the
percentage certified under paragraph (b) any negative amount calculated under
clause (3).� The sum of these percentages
must be carried to five decimal places and must be certified as the full
postretirement adjustment percentage.
(e) The board shall determine the amount of the
postretirement adjustment payable to each eligible annuitant and benefit
recipient.� The dollar amount of the
postretirement adjustment must be calculated by applying the certified
postretirement adjustment percentage to the amount of the monthly annuity or
benefit payable to each eligible annuitant or benefit recipient eligible for a
full adjustment.
The dollar amount of the partial postretirement
adjustment payable to each annuitant or benefit recipient eligible for a
partial adjustment must be calculated by first determining a partial percentage
amount that bears the same ratio to the certified full adjustment percentage
amount as the number of full months of annuity or benefit receipt as of the
current June 30 bears to 12 full months.�
The partial percentage amount determined must then be applied to the
amount of the monthly annuity or benefit payable to each annuitant or benefit
recipient eligible to receive a partial postretirement adjustment.� The postretirement adjustments are payable on
January 1 following the calculations required under this section and must
thereafter be included in the monthly annuity or benefit paid to the
recipient.� Any adjustments under this
section must be paid automatically unless the intended recipient files a
written notice with the applicable participating public pension fund or plan
requesting that the adjustment not be paid.
(f) As of June 30 annually, the actuary retained under
section 356.214 shall calculate the amount of required reserves representing
any mortality gains and any mortality losses incurred during the fiscal year
and report the results of those calculations to the plan.� The actuary shall report separately the
amount of the reserves for annuitants and benefit recipients who are eligible
for a postretirement benefit adjustment and the amount of reserves for
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annuitants and benefit recipients who are not eligible
for a postretirement benefit adjustment.�
If the net amount of required reserves represents a mortality gain, the
board shall sell sufficient securities or transfer sufficient available cash to
equal the amount.� If the amount of
required reserves represents a mortality loss, the plan shall transfer an
amount equal to the amount of the net mortality loss.� The amount of the transfers must be
determined before any postretirement benefit adjustments have been made.� All transfers resulting from mortality
adjustments must be completed annually by December 31 for the preceding June
30.� Interest is payable on any transfers
after December 31 based upon the preretirement interest assumption for the
participating plan or fund as specified in section 356.215, subdivision 8,
stated as a monthly rate.� Book values of
the assets of the fund must be determined only after all adjustments for
mortality gains and losses for the fiscal year have been made.
(g) All money necessary to meet the requirements of the
certification of withdrawals and all money necessary to pay postretirement
adjustments under this section are hereby and from time to time appropriated
from the postretirement investment fund to the board.
(h) Annually, following the calculation of any
postretirement adjustment payable from the retirement benefit fund, the board
of trustees shall submit a report to the executive director of the Legislative
Commission on Pensions and Retirement and to the commissioner of finance
indicating the amount of any postretirement adjustment and the underlying
calculations on which that postretirement adjustment amount is based, including
the amount of dividends, the amount of interest, and the amount of net realized
capital gains or losses utilized in the calculations.
(i) With respect to a former contributing member who
began receiving a retirement annuity or disability benefit under section
422A.151, paragraph (a), clause (2), after June 30, 1997, or with respect to a
survivor of a former contributing member who began receiving a survivor benefit
under section 422A.151, paragraph (a), clause (2), after June 30, 1997, the
reserves attributable to the one percent lower amount of the cost-of-living
adjustment payable to those annuity or benefit recipients annually must be
transferred back to the deposit accumulation fund to the credit of the
Metropolitan Airports Commission.� The
calculation of this annual reduced cost-of-living adjustment reserve transfer
must be reviewed by the actuary retained under section 356.214.
EFFECTIVE DATE.�
This section is effective retroactively from June 30, 2008.
Sec. 4.�
Minnesota Statutes 2008, section 422A.08, subdivision 5, is amended to
read:
Subd. 5.� Service credit purchase.� Any contributor who prior to entering the service
of the city was an employee of a public corporation, is authorized, using the
procedure in subdivision 5a section 356.551, to purchase
allowable service credit in the retirement fund for employment by the public
corporation in the same manner as though the service had been rendered to the
city, providing that the individual has not received service credit and is not
eligible to receive service credit for this period under any other plan or fund
listed in section 356.30, subdivision 3.�
Before receiving credit for service rendered to a public corporation as
herein set forth, the contributing employee shall make application therefor in
writing to the retirement board, and shall contribute to the retirement fund
the amount specified in subdivision 5a section 356.551.�
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 5.� Laws
1989, chapter 319, article 11, section 13, is amended to read:
Sec. 13.� REPEALER.�
Laws 1967, chapter 815; Laws 1978, chapter 683; and
Laws 1981, chapter 224, sections 2 and 5 section 245, are
repealed.
EFFECTIVE DATE.�
This section is effective the day following final enactment and
applies retroactively from June 2, 1989.
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Sec. 6.� Laws
2008, chapter 349, article 14, section 13, is amended to read:
Sec. 13.� REPEALER OF PRIOR INCONSISTENT SPECIAL
VOLUNTEER FIRE RELIEF ASSOCIATION ANCILLARY BENEFIT LEGISLATION.�
Subdivision 1.� Anoka.�
Laws 1969, chapter 352 252, section 1, subdivisions 3, 4,
5, and 6, are repealed.
Subd. 2.� Butterfield.� Laws 1975, chapter 185, section 1, is
repealed.
Subd. 3.� Coon Rapids.� Laws 1973, chapter 304, section 1,
subdivisions 3, 4, 5, 6, 7, 8, and 9, are repealed.
Subd. 4.� Edina.�
(1) Laws 1965, chapter 592, section 3, as amended added by
Laws 1969, chapter 644, section 2, and amended by Laws 1975,
chapter 229, section 2; (2) Laws 1965, chapter 592, section 4, as amended
added by Laws 1969, chapter 644, section 2, and amended by Laws
1975, chapter 229, section 3, Laws 1985, chapter 261, section 37, and Laws
1991, chapter 125, section 1; (3) Laws 1985, chapter 261, section 37, as
amended by Laws 1991, chapter 125, section 1; and (4) Laws 1991, chapter 125,
section 1, are repealed.
Subd. 5.� Fairmont.� Laws 1967, chapter 575, sections 2, as
amended by Laws 1979, chapter 201, section 23; 3; and 4, are repealed.
Subd. 6.� Falcon Heights.� Laws 1969, chapter 526, sections 3; 4; 5, as
amended by Laws 1974, chapter 208, section 2; and 7, as amended by Laws 1974,
chapter 208, section 3, are repealed.
Subd. 7.� Golden Valley.� Laws 1971, chapter 140, sections 2, as
amended by Laws 1973, chapter 30, section 2; 3, as amended by Laws 1973,
chapter 30, section 3; 4, as amended by Laws 1973, chapter 30, section 4; and
5, as amended by Laws 1973, chapter 30, section 5; and Laws 1993, chapter 244,
article 4, section 1, are repealed.
Subd. 8.� Wayzata.� Laws 1973, chapter 472, section 1, as amended
by Laws 1976, chapter 272, section 1, and Laws 1979, chapter 201, section 33,
is repealed.
Subd. 9.� White Bear Lake.� Laws 1971, chapter 214, section 1, subdivisions
sections 1, 2, 3, 4, and 5, are repealed.
EFFECTIVE DATE; LOCAL
APPROVAL.� (a) Subdivision 1 is effective the day after
the governing body of Anoka and its chief clerical officer timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and
3, after June 30, 2009.
(b) Subdivision 2 is effective the day after the
governing body of Butterfield and its chief clerical officer timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and
3, after June 30, 2009.
(c) Subdivision 3 is effective the day after the
governing body of Coon Rapids and its chief clerical officer timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and
3, after June 30, 2009.
(d) Subdivision 4 is effective the day after the
governing body of Edina and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3,
after June 30, 2009.
(e) Subdivision 5 is effective the day after the
governing body of Fairmont and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3,
after June 30, 2009.
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(f) Subdivision 6 is effective the day after the
governing body of Falcon Heights and its chief clerical officer timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and
3, after June 30, 2009.
(g) Subdivision 7 is effective the day after the
governing body of Golden Valley and its chief clerical officer timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and
3, after June 30, 2009.
(h) Subdivision 8 is effective the day after the
governing body of Wayzata and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3,
after June 30, 2009.
(i) Subdivision 9 is effective the day after the
governing body of White Bear Lake and its chief clerical officer timely
complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3, after June 30, 2009.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 7.� REPEALER.�
Minnesota Statutes 2008, sections 356.2165; and
422A.08, subdivision 5a, are repealed.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
ARTICLE 13
ONE PERSON AND SMALL GROUP RETIREMENT PROVISIONS
Section 1.�
Minnesota Statutes 2008, section 352.86, subdivision 1, is amended to
read:
Subdivision 1.� Eligibility; retirement annuity.� A person who is employed by This
section applies to any employee of the Department of Transportation in the
civil service employment classification of aircraft pilot or chief pilot,
who is covered for that employment by the general employee retirement
plan of the system under section 352.01, subdivision 23, and who elects
this elected before June 1, 2008, special retirement coverage under subdivision
3, who is prohibited from performing the duties of aircraft pilot or chief
pilot after reaching age 65 by a policy adopted by the commissioner of
transportation, and this section by an irrevocable election on forms
provided by the executive director.
Subd. 2.� Retirement
annuity.� An eligible person
under subdivision 1 who terminates employment as a state employee on or
after age 62 but prior to normal retirement age is entitled, upon application,
to a retirement annuity computed under section 352.115, subdivisions 2 and 3,
without any reduction for early retirement under section 352.116, subdivision
1.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 2.�
Minnesota Statutes 2008, section 352.86, subdivision 1a, is amended to
read:
Subd. 1a 3.� Disability
benefits.� An employee described in
subdivision 1, who is less than 62 years of age and who becomes disabled
and physically or mentally unfit to perform occupational duties due to injury,
sickness, or other disability, and who is found disqualified for retention as
chief pilot or pilot as a result of a physical examination required by
applicable federal laws or regulations, is entitled upon application to
disability benefits for a maximum of five years in the amount of may
submit an application for disability benefits calculated under section
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352.113, subdivision 3.� In considering the disability benefit
application, the executive director must use the disability standard specified in
this subdivision rather than the total and permanent standard specified in
section 352.113, subdivision 1.� If
disability benefits commence under section 352.113, subdivision 3, the
appointing authority shall also provide payments from the state airports fund,
totaling 75 percent of current
monthly salary, to be paid by the appointing authority less the
amount payable under section 352.113, subdivision 3.� Payments from the state airports fund
must be made for five years or until normal retirement age, whichever is
earlier.� Disability benefits must
not continue after the employee reaches age 62.�
These benefits are in lieu of all other state benefits for the
disability, including, but not limited to, workers' compensation benefits.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 3.�
Minnesota Statutes 2008, section 352.86, subdivision 2, is amended to
read:
Subd. 2 4.� Additional
contributions.� The special
retirement annuity authorized by subdivision 1 shall be financed by An
employee covered by this section must pay an additional employee contribution
from the covered aircraft pilot or chief pilot of 1.6 percent and an
employer contribution from of salary.�
The Department of Transportation must pay an additional employer
contribution of of 1.6 percent of salary.� These contributions are in addition to the
contributions required by section 352.04, subdivisions 2 and 3.� They must be made in the manner provided for
in section 352.04, subdivisions 4, 5, and 6.�
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 4.�
Minnesota Statutes 2008, section 353.01, subdivision 2, is amended to
read:
Subd. 2.� Public employee.� "Public employee" means a
governmental employee 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.� The term includes the classes of
persons described or listed in subdivision 2a.�
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 also includes full-time
employees of the Dakota County Agricultural Society.� The term excludes the classes of persons
listed in subdivision 2b for purposes of membership in the association.
EFFECTIVE DATE.�
This section is effective the first day of the first full payroll
period commencing after final enactment.
Sec. 5.�
Minnesota Statutes 2008, 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 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, 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
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(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 section 5.
EFFECTIVE DATE.�
This section is effective the first day of the first full payroll
period commencing after final enactment.
Sec. 6.�
Minnesota Statutes 2008, section 353.01, subdivision 6, is amended to
read:
Subd. 6.� Governmental subdivision.� (a) "Governmental subdivision"
means a county, city, town, school district within this state, or a department,
unit or instrumentality of state or local government, or any public body
established under state or local authority that has a governmental purpose, is
under public control, is responsible for the employment and payment of the salaries
of employees of the entity, and receives a major portion of its revenues from
taxation, fees, assessments or from other public sources.
(b) Governmental subdivision also means the Public
Employees Retirement Association, the League of Minnesota Cities, the
Association of Metropolitan Municipalities, charter schools formed under
section 124D.10, service cooperatives exercising retirement plan participation
under section 123A.21, subdivision 5, joint powers boards organized under
section 471.59, subdivision 11, paragraph (a), family service collaboratives
and children's mental health collaboratives organized under section 471.59,
subdivision 11, paragraph (b) or (c), provided that the entities creating the
collaboratives are governmental units that otherwise qualify for retirement
plan membership, public hospitals owned or operated by, or an integral part of,
a governmental subdivision or governmental subdivisions, the Association of
Minnesota Counties, the Minnesota Inter-county Association, the Minnesota
Municipal Utilities Association, the Metropolitan Airports Commission, the
University of Minnesota with respect to police officers covered by the public
employees police and fire retirement plan, the Minneapolis Employees Retirement
Fund for employment initially commenced after June 30, 1979, the Range
Association of Municipalities and Schools, soil and water conservation
districts, economic development authorities created or operating under sections
469.090 to 469.108, the Port Authority of the city of St. Paul, the Spring Lake
Park Fire Department, incorporated, the Lake Johanna Volunteer Fire Department,
incorporated, the Red Wing Environmental Learning Center, the Dakota County
Agricultural Society, and Hennepin Healthcare System, Inc., and the Minneapolis
Firefighters Relief Association and Minneapolis Police Relief Association with
respect to staff covered by the Public Employees Retirement Association general
plan.
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(c) Governmental subdivision does not mean any
municipal housing and redevelopment authority organized under the provisions of
sections 469.001 to 469.047; or any port authority organized under sections
469.048 to 469.089 other than the Port Authority of the city of St. Paul; or
any hospital district organized or reorganized prior to July 1, 1975, under
sections 447.31 to 447.37 or the successor of the district; or the board of a
family service collaborative or children's mental health collaborative
organized under sections 124D.23, 245.491 to 245.495, or 471.59, if that board
is not controlled by representatives of governmental units.
(d) A nonprofit corporation governed by chapter 317A or
organized under Internal Revenue Code, section 501(c)(3), which is not covered
by paragraph (a) or (b), is not a governmental subdivision unless the entity
has obtained a written advisory opinion from the United States Department of
Labor or a ruling from the Internal Revenue Service declaring the entity to be
an instrumentality of the state so as to provide that any future contributions
by the entity on behalf of its employees are contributions to a governmental
plan within the meaning of Internal Revenue Code, section 414(d).
(e) A public body created by state or local authority
may request membership on behalf of its employees by providing sufficient
evidence that it meets the requirements in paragraph (a).
(f) An entity determined to be a governmental
subdivision is subject to the reporting requirements of this chapter upon
receipt of a written notice of eligibility from the association.
EFFECTIVE DATE.�
This section is effective the first day of the first full payroll
period commencing after final enactment.
Sec. 7.� PRIOR PENSION PLAN TERMINATION.�
As of the effective date of this
section, contributions to the defined contribution or defined benefit pension
plan or plans which previously provided primary pension coverage for any
individual who elects coverage by the general employees retirement plan of the
Public Employee Retirement Association under section 5 must terminate and must
not be resumed.
EFFECTIVE DATE.�
This section is effective the first day of the first full payroll
period commencing after final enactment.
Sec. 8.� PUBLIC EMPLOYEES RETIREMENT ASSOCIATION;
SERVICE CREDIT PURCHASE AUTHORIZATION.�
(a) Notwithstanding any provision of
Minnesota Statutes, chapter 353, to the contrary, unless the period to be
purchased is credited as allowable service by another retirement plan covered
by Minnesota Statutes, section 356.30, or would be ineligible for credit as
allowable service under Minnesota Statutes, section 353.01, subdivision 16, if
the service had been performed after the effective date of this section, an
eligible person described in paragraph (b) may purchase allowable service
credit under Minnesota Statutes, section 353.01, subdivision 16, from the general
employees retirement plan of the Public Employees Retirement Association for
the period specified in paragraph (c), by making the payment required under
paragraph (d).
(b) An eligible person is a person who
began employment as staff to the Minneapolis Firefighters Relief Association or
the Minneapolis Police Relief Association prior to the effective date of this
section, and due to that employment became a member of the general employees
retirement plan of the Public Employees Retirement Association on the effective
date of this section.
(c) The period of prior service credit
available for purchase is the period of employment with the Minneapolis
Firefighters Relief Association or the Minneapolis Police Relief Association,
whichever is applicable, which would be includable service under the Public
Employees Retirement Association general plan if that service had been
performed after the effective date rather than before.
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(d) Except as otherwise stated under
this section, Minnesota Statutes, section 356.551, applies to this purchase.
(e) An eligible person may purchase
allowable service credit for a portion of the eligible period, resulting in
prorated service credit.
(f) The election to purchase prior
service credit under this section must be made in writing and must be filed
with the executive director of the Public Employees Retirement Association.
(g) This section expires one year
after the effective date of this section.
EFFECTIVE DATE.�
This section is effective the first day of the first full payroll
period commencing after final enactment.
Sec. 9.� ELECTION OF COVERAGE.�
(a) An individual who is an employee
of the Minneapolis Firefighters Relief Association or the Minneapolis Police
Relief Association on the effective date of this section, and who is not
excluded under section 353.01, subdivision 2b, due to coverage by the relief
association pension plan, may elect prospective coverage by the general
employees retirement plan of the Public Employees Retirement Association under
an election as specified in this section.
(b) An eligible individual under paragraph
(a) may elect coverage by the general employees retirement plan of the Public
Employees Retirement Association by making an election on a form provided by
the Public Employees Retirement Association executive director.� For an election to be valid, it must be made
within 90 days of the effective date of this section and is irrevocable.
(c) The Public Employees Retirement
Association must provide eligible individuals with information and counseling regarding
the general employees retirement plan of the Public Employees Retirement
Association and the implications of electing that coverage.
(d) If an eligible individual elects
not to be covered by the general employees retirement plan of the Public Employees
Retirement Association, or if no election is made, the prior coverage, if any,
remains unchanged.
EFFECTIVE DATE.�
This section is effective the first day of the first full payroll
period commencing after final enactment.
Sec. 10.� PERA-GENERAL; PURCHASE OF CREDIT FOR
OMITTED CONTRIBUTION PERIOD.�
(a) An eligible person described in
paragraph (b) is entitled, upon written application filed with the executive
director of the Public Employees Retirement Association, to purchase service
credit for the period of omitted contributions specified in paragraph (c) by
paying the amount determined under paragraph (d).� The employer of the eligible person shall pay
the amount determined under paragraph (e) within 30 days of being notified by
the Public Employees Retirement Association executive director that the
eligible person made the person's payment.
(b) An eligible person is a person
who:
(1) was born on December 16, 1946;
(2) was first employed by the city of
Elizabeth, Minnesota, municipal liquor store on July 23, 2004;
Journal of
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(3) was first eligible for coverage by
the general employees retirement plan of the Public Employees Retirement
Association in September 2004;
(4) was not reported as a general
employees retirement plan member by the city of Elizabeth, Minnesota, to the
Public Employees Retirement Association until January 2005; and
(5) did not receive service credit
under Minnesota Statutes, section 353.27, subdivision 12, paragraph (e), in a
timely fashion.
(c) The period of purchasable service
credit is that portion of the period September 1, 2004, until January 1, 2005,
during which the eligible person was an included employee under Minnesota
Statutes, section 353.01, subdivision 2a, and during which the required
deductions from the compensation of the eligible employee were not made under
Minnesota Statutes, section 353.27, subdivision 2.
(d) The member purchase amount is the
amount of the omitted member contributions during the period of purchasable
service credit, plus compound annual interest at the rate of 8.5 percent from
October 15, 2004, to the date on which payment is made.
(e) The employer purchase amount is
either the balance of the full actuarial value purchase payment amount
determined under Minnesota Statutes, section 356.551, remaining after
subtracting the amount under paragraph (d) or the amount of the employer and
employer additional contributions under Minnesota Statutes, section 353.27,
subdivisions 3 and 3a, plus compound annual interest at the rate of 8.5 percent
from October 15, 2004, to the date on which payment is made, whichever is
larger.� If the employer fails to pay the
employer purchase amount in a timely fashion, the executive director of the
Public Employees Retirement Association shall certify the unpaid amount, plus
monthly compound interest at the rate of 0.71 percent for the period, to the
commissioners of finance and revenue, who shall deduct the unpaid amount from
any state aid or state transfers that the employing unit is eligible to receive
and shall transmit the amount to the Public Employees Retirement Association.
(f) Purchase authority under this
section expires on July 1, 2010.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 11.� PERA-GENERAL AND TRA; ANNUITY
APPLICATION REVOCATION.�
(a) An eligible person specified in
paragraph (b) may elect to revoke retirement annuity applications as provided
in paragraph (c).� The election must be
made in writing and must be filed with the executive director of the applicable
retirement plan.
(b) An eligible person is a person
who:
(1) was born in 1943;
(2) was employed as publications
editor for St. Cloud State University for twenty years, ending in 1998, and was
covered by virtue of that employment by the general state employees retirement
plan of the Minnesota State Retirement System;
(3) retired from the general state
employees retirement plan of the Minnesota State Retirement System in 2007;
(4) was employed by the Underwood,
Minnesota, municipal liquor store in early 2008, terminated that employment on
April 18, 2008, applied for a retirement annuity from the general employee
retirement plan of the Public Employees Retirement Association and from the
Teachers Retirement Association under Minnesota Statutes, section 356.30, in
April or May 2008, and was subsequently reemployed by the municipal liquor
store on or about May 20, 2008; and
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(5) was informed by the Public
Employees Retirement Association of a retirement annuity overpayment of $349.65
on July 22, 2008.
(c) If elected, the eligible person
may revoke the person's application for a retirement annuity from the general
employee retirement plan of the Public Employees Retirement Association, or
revoke the person's application for a retirement annuity from the Teachers
Retirement Association, or revoke the person's application for a retirement annuity
from both retirement plans.� If a
retirement application is revoked, the person's retirement annuity ends, the
entitlement of the person to a future retirement annuity is restored, and that
future retirement annuity amount must be adjusted by subtracting the total
value of the retirement annuity amounts received from that retirement plan from
the actuarial present value of the eligible person's future annuity without
adjustment, calculated based on the mortality table for retired lives of the
applicable retirement plan and 8.5 percent interest rate assumption, and
determining the adjusted annuity amount from the remaining actuarial present
value amount using the same interest and mortality assumption.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 12.� MSRS-GENERAL AND PERA-GENERAL; PLAN
MEMBERSHIP EXCLUSION AND DEFERRED ANNUITY AUGMENTATION.�
(a) A qualified person described in
paragraph (b) may, upon written application filed with the executive director
of the Public Employees Retirement Association, elect retroactive exclusion
from coverage by the general employees retirement plan of the Public Employees
Retirement Association for any period of teacher assistant service for
Independent School District No. 623, Roseville, and qualification for deferred
annuities augmentation for the retroactively excluded period.
(b) A qualified person is a person
who:
(1) was born on January 17, 1951;
(2) was employed by Ramsey County from
January 20, 1975, to June 22, 1999;
(3) was employed by the state of
Minnesota from June 22, 1999, to April 4, 2006; and
(4) was employed by Independent School
District No. 623, Roseville, as a teacher assistant following terminating state
employment from December 13, 2007, to June 6, 2008.
(c) If the retroactive exclusion is
elected, all member and employer contributions to the general employees
retirement plan of the Public Employees Retirement Association made with
respect to Independent School District No. 623, Roseville, teacher assistant
employment must be refunded with interest under Minnesota Statutes, section
353.27, subdivision 7, and the qualified person is entitled, if otherwise
eligible, for deferred annuities augmentation from the general employees
retirement plan of the Public Employees Retirement Association and from the
general state employees retirement plan of the Minnesota State Retirement
System for the period of retroactive exclusion.
(d) Authority to make the election
under this section expires September 1, 2009.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 13.� MSRS-GENERAL; EXCEPTION TO DISABILITY
BENEFIT APPLICATION DEADLINE.�
(a) Notwithstanding any provision of
Minnesota Statutes, section 352.113, subdivision 4, paragraph (e), to the
contrary, an eligible person described in paragraph (b) is entitled to file a
disability benefit application with the general state employees retirement plan
of the Minnesota State Retirement System and, if otherwise qualified under
Minnesota Statutes, section 352.113, receive a disability benefit from the
retirement plan.
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the House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5606
(b) An eligible person is a person
who:
(1) was born on March 8, 1966;
(2) was an employee of the Minnesota
Veterans Home at Silver Bay, Minnesota;
(3) terminated state employment on
July 25, 2007;
(4) attempted to apply for a
disability benefit in February 2008;
(5) had a request to apply for a
disability benefit denied by the executive director of the Minnesota State
Retirement System on April 3, 2008;
(6) appealed the executive director's
decision to the Minnesota State Retirement System board of directors on April 24,
2008; and
(7) had the appeal to the Minnesota
State Retirement System board of directors denied on August 4, 2008.
(c) This section expires on June 1,
2010.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 14.� MSRS-GENERAL; ALLOWABLE SERVICE CREDIT
REVISION FOR JOB-SHARE EMPLOYEES.�
(a) An eligible person as described
in paragraph (b) is entitled to have any partial month allowable service credit
in the general state employees retirement plan of the Minnesota State
Retirement System for part-time employment as a job-share employee revised to
be identical to allowable service credit for part-time state employment under
Minnesota Statutes, section 352.01, subdivision 11, that was not rendered as a
job-share employee.
(b) An eligible person:
(1) is an active member of the
general state employees retirement plan or a retired member of the general
state employees retirement plan;
(2) was employed in the demonstration
job-sharing project under Laws 1980, chapter 572, or in the job-sharing program
under Minnesota Statutes 1998, sections 43A.41 to 43A.46;
(3) was employed in the demonstration
job-sharing project or in the job-sharing program for one-half of full time;
and
(4) received partial month allowable
service credit under Minnesota Statutes, section 352.01, subdivision 11.
(c) To have allowable service credit
revised under this section, an eligible person shall provide the executive
director of the Minnesota State Retirement System any relevant documentation
that the executive director requests.
(d) If the eligible person is a
retired member of the general state employees retirement plan, the person's
retirement annuity must be recomputed based on the revised service credit under
this section and the recomputed retirement annuity is payable on the first day
of the month next following the effective date of this section.
Journal of
the House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5607
(e) Nothing in this section may be
interpreted to authorize the crediting of more than one year of allowable
service during any 12-month period or to authorize the payment of any
retroactive recomputed retirement annuity amounts.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 15.� HENNEPIN COUNTY EMPLOYEE WAIVER OF
SERVICE REQUIREMENT TO APPLY FOR DISABILITY.�
(a) Notwithstanding Minnesota Statutes,
section 353.33, subdivision 1, an eligible person specified in
paragraph (b) is authorized to submit an application for disability
benefits from the general employees retirement plan of the Public Employees
Retirement Association.
(b) An eligible person is a person
who:
(1) was born May 6, 1972;
(2) was employed by Independent School
District No. 11, Anoka-Hennepin, from September 11, 1995, to August 6, 1996;
(3) was employed by Hennepin County
from July 31, 2000, to December 30, 2004;
(4) was again employed by Hennepin
County starting April 2, 2007, with the most recent employment position being a
principal child support officer;
(5) has service credit with the Public
Employees Retirement Association due to the employment under clauses (2), (3),
and (4); and
(6) has had several leaves from
Hennepin County employment of a medical-related nature.
(c) If an eligible person under
paragraph (b) files a valid application, the executive director of the Public
Employees Retirement Association shall determine whether that eligible person
qualifies to receive a disability benefit under the laws and procedures
applicable to the general employees retirement plan of the Public Employees
Retirement Association.
(d) This section expires one year
after the effective date of this section.
EFFECTIVE DATE.�
This section is effective the day following final enactment.
Sec. 16.� REPEALER.�
Minnesota Statutes 2008, section
352.86, subdivision 3, is repealed.
ARTICLE 14
PENSION COMMISSION
Section 1.�
Minnesota Statutes 2008, section 3.85, subdivision 3, is amended to
read:
Subd. 3.� Membership.� The commission consists of five
seven members of the senate appointed by the Subcommittee on Committees of
the Committee on Rules and Administration and five seven members
of the house of representatives appointed by the speaker.� No more than five members from each
chamber may be from the majority caucus in that chamber.� Members shall be appointed at the
commencement of each regular session of the
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5608
legislature for a two-year term beginning January 16 of
the first year of the regular session. �Members continue to serve until their
successors are appointed.� Vacancies that
occur while the legislature is in session shall be filled like regular
appointments.� If the legislature is not
in session, senate vacancies shall be filled by the last Subcommittee on
Committees of the senate Committee on Rules and Administration or other
appointing authority designated by the senate rules, and house of
representatives vacancies shall be filled by the last speaker of the house, or
if the speaker is not available, by the last chair of the house of
representatives Rules Committee.
Sec. 2.� COMMISSION STUDY; PENSION FUND
CONSOLIDATION ASSISTANCE FUND.�
(a) The Legislative Commission on Pensions and
Retirement shall study the policy advantages and disadvantages of creating a
state pension relief fund and, if deemed sufficiently advantageous, shall
recommend in the form of draft proposed legislation the details of a state
pension relief fund.
(b) The state pension relief fund is intended to be an
account in the state treasury to which ongoing appropriations would be made or
a revenue source would be dedicated and could provide financial support to
offset some or all of the costs of smaller public retirement plans to
consolidate, subject to Minnesota Statutes, chapter 353A, as applicable, into
one of the three largest statewide public retirement plans.
(c) The commission shall consider provisions for
relief funds established in other states, the potential revenue sources for a
state pension relief fund, the appropriate fund administration, the appropriate
investment vehicle or vehicles for the fund, the eligibility criteria for
determining when fund assets could be disbursed to assist in plan funding and
the amount of any fund disbursements, the appropriate level of ongoing funding
that is required with respect to a consolidating retirement plan, and the
extent of state and local responsibility for local retirement plan funding
deficiencies.
(d) The commission shall file the results of this
study on or before February 15, 2010, with the chair and the ranking minority
member of the State and Local Government Operations Reform, Technology, and
Elections Committee of the house of representatives, the chair and ranking
minority member of the Finance Committee of the house of representatives, the
chair and ranking minority member of the State and Local Government Operations
and Oversight Committee of the senate, and the chair and ranking minority member
of the Finance Committee of the senate.
(e) Nothing in this section alters the provisions of
Minnesota Statutes, chapter 353A."
Delete the title and insert:
"A bill for an act relating to retirement;
various retirement plans; making various statutory changes needed to
accommodate the dissolution of the Minnesota Post Retirement Investment Fund;
redefining the value of pension plan assets for actuarial reporting purposes;
revising various disability benefit provisions of the general state employees retirement
plan, the correctional state employees retirement plan, and the State Patrol
retirement plan; making various administrative provision changes; establishing
a voluntary statewide lump-sum volunteer firefighter retirement plan
administered by the Public Employees Retirement Association; revising various
volunteer firefighters' relief association provisions; correcting 2008 drafting
errors related to the Minneapolis Employees Retirement Fund and other drafting
errors; granting special retirement benefit authority in certain cases;
revising the special transportation pilots retirement plan of the Minnesota
State Retirement System; expanding the membership of the state correctional
employees retirement plan; adjusting reallocation of amortization state aid;
extending the amortization target date for the Fairmont Police Relief
Association; modifying the number of board of trustees members of the
Minneapolis Firefighters Relief Association; increasing state education aid to
offset teacher retirement plan employer contribution increases; increasing
teacher retirement plan member and employer contributions; revising the normal
retirement age and providing prospective benefit accrual rate increases for
teacher retirement plans; permitting the Brimson Volunteer Firefighters' Relief
Association to implement a different board
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5609
of trustees composition; permitting employees of the
Minneapolis Firefighters Relief Association and the Minneapolis Police Relief
Association to become members of the general employee retirement plan of the
Public Employees Retirement Association; creating a two-year demonstration
postretirement adjustment mechanism for the St. Paul Teachers Retirement Fund
Association; creating a temporary postretirement option program for employees
covered by the general employee retirement plan of the Public Employees Retirement
Association; setting a statute of limitations for erroneous receipts of the
general employee retirement plan of the Public Employees Retirement
Association; permitting the Minnesota State Colleges and Universities System
board to create an early separation incentive program; permitting certain
Minnesota State Colleges and Universities System faculty members to make a
second chance retirement coverage election upon achieving tenure; including the
Weiner Memorial Medical Center, Inc., in the Public Employees Retirement
Association privatization law; increasing pension commission membership;
extending the approval deadline date for the inclusion of the Clearwater County
Hospital in the Public Employees Retirement Association privatization law;
requiring a report; requiring a study; appropriating money; amending Minnesota
Statutes 2008, sections 3.85, subdivision 3; 3A.02, subdivision 3, by adding a
subdivision; 3A.03, by adding a subdivision; 3A.04, by adding a subdivision;
3A.115; 11A.08, subdivision 1; 11A.17, subdivisions 1, 2; 11A.23, subdivisions
1, 2; 43A.34, subdivision 4; 43A.346, subdivisions 2, 6; 69.011, subdivisions
1, 2, 4; 69.021, subdivisions 7, 9; 69.031, subdivisions 1, 5; 69.77,
subdivision 4; 69.771, subdivision 3; 69.772, subdivisions 4, 6; 69.773,
subdivision 6; 127A.50, subdivision 1; 299A.465, subdivision 1; 352.01,
subdivision 2b, by adding subdivisions; 352.021, by adding a subdivision;
352.04, subdivisions 1, 12; 352.061; 352.113, subdivision 4, by adding a
subdivision; 352.115, by adding a subdivision; 352.12, by adding a subdivision;
352.75, subdivisions 3, 4; 352.86, subdivisions 1, 1a, 2; 352.91, subdivision
3d; 352.911, subdivisions 3, 5; 352.93, by adding a subdivision; 352.931, by
adding a subdivision; 352.95, subdivisions 1, 2, 3, 4, 5, by adding a
subdivision; 352B.02, subdivisions 1, 1a, 1c, 1d; 352B.08, by adding a
subdivision; 352B.10, subdivisions 1, 2, 5, by adding subdivisions; 352B.11,
subdivision 2, by adding a subdivision; 352C.10; 352D.06, subdivision 1; 352D.065,
by adding a subdivision; 352D.075, by adding a subdivision; 353.01,
subdivisions 2, 2a, 6, 11b, 16, 16b; 353.0161, subdivision 1; 353.03,
subdivision 3a; 353.06; 353.27, subdivisions 1, 2, 3, 7, 7b; 353.29, by adding
a subdivision; 353.31, subdivision 1b, by adding a subdivision; 353.33,
subdivisions 1, 3b, 7, 11, 12, by adding subdivisions; 353.65, subdivisions 2,
3; 353.651, by adding a subdivision; 353.656, subdivision 5a, by adding a
subdivision; 353.657, subdivision 3a, by adding a subdivision; 353.665,
subdivision 3; 353A.02, subdivisions 14, 23; 353A.05, subdivisions 1, 2;
353A.08, subdivisions 1, 3, 6a; 353A.081, subdivision 2; 353A.09, subdivision
1; 353A.10, subdivisions 2, 3; 353E.01, subdivisions 3, 5; 353E.04, by adding a
subdivision; 353E.06, by adding a subdivision; 353E.07, by adding a
subdivision; 353F.02, subdivision 4; 354.05, subdivision 38, by adding a
subdivision; 354.07, subdivision 4; 354.33, subdivision 5; 354.35, by adding a
subdivision; 354.42, subdivisions 1a, 2, 3, by adding subdivisions; 354.44,
subdivisions 4, 5, 6, by adding a subdivision; 354.46, by adding a subdivision;
354.47, subdivision 1; 354.48, subdivisions 4, 6, by adding a subdivision;
354.49, subdivision 2; 354.52, subdivisions 2a, 4b; 354.55, subdivisions 11, 13;
354.66, subdivision 6; 354.70, subdivisions 5, 6; 354A.011, subdivision 15a;
354A.096; 354A.12, subdivisions 1, 2a, by adding subdivisions; 354A.29,
subdivision 3; 354A.31, subdivisions 4, 4a, 7; 354A.36, subdivision 6; 354B.21,
subdivision 2; 356.20, subdivision 2; 356.215, subdivisions 1, 11; 356.219,
subdivision 3; 356.315, by adding a subdivision; 356.32, subdivision 2;
356.351, subdivision 2; 356.401, subdivisions 2, 3; 356.465, subdivision 1, by
adding a subdivision; 356.611, subdivisions 3, 4; 356.635, subdivisions 6, 7;
356.96, subdivisions 1, 5; 422A.06, subdivision 8; 422A.08, subdivision 5;
423A.02, subdivisions 1, 3; 423C.03, subdivision 1; 424A.001, subdivisions 1,
1a, 2, 3, 4, 5, 6, 8, 9, 10, by adding subdivisions; 424A.01; 424A.02, subdivisions
1, 2, 3, 3a, 7, 8, 9, 9a, 9b, 10, 12, 13; 424A.021; 424A.03; 424A.04; 424A.05,
subdivisions 1, 2, 3, 4; 424A.06; 424A.07; 424A.08; 424A.10, subdivisions 1, 2,
3, 4, 5; 424B.10, subdivision 2, by adding subdivisions; 424B.21; 490.123,
subdivisions 1, 3; 490.124, by adding a subdivision; Laws 1989, chapter 319,
article 11, section 13; Laws 2006, chapter 271, article 5, section 5, as
amended; Laws 2008, chapter 349, article 14, section 13; proposing coding for
new law in Minnesota Statutes, chapters 136F; 352B; 353; 354; 356; 420; 424A;
424B; proposing coding for new law as Minnesota Statutes, chapter 353G;
repealing Minnesota Statutes 2008, sections 11A.041; 11A.18; 11A.181; 352.119,
subdivisions 2, 3, 4; 352.86, subdivision 3; 352B.01, subdivisions 1, 2, 3, 3b,
4, 6, 7, 9, 10, 11; 352B.26, subdivisions 1, 3; 353.271; 353A.02, subdivision
20; 353A.09, subdivisions 2, 3; 354.05, subdivision 26; 354.06, subdivision 6;
354.55, subdivision 14; 354.63; 354A.29, subdivisions 2, 4, 5;
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5610
356.2165; 356.41; 356.431, subdivision 2; 422A.01,
subdivision 13; 422A.06, subdivision 4; 422A.08, subdivision 5a; 424A.001,
subdivision 7; 424A.02, subdivisions 4, 6, 8a, 8b, 9b; 424A.09; 424B.10,
subdivision 1; 490.123, subdivisions 1c, 1e."
With the recommendation that when so amended the bill
pass and be re-referred to the Committee on Ways and Means.
����� The report
was adopted.
Carlson from the Committee on Finance to which was
referred:
H. F. No. 796, A bill for an act relating to capital
investment; authorizing the sale of Minnesota First bonds; proposing coding for
new law in Minnesota Statutes, chapter 16A.
Reported the same back with the following amendments:
Page 1, line 9, delete "zero coupon form and
in"
Page 1, line 15, delete "$500" and
insert "$1,000"
Page 1, line 17, delete "For purposes of this
section" and insert "If a zero coupon bond is sold"
Page 2, delete subdivision 5
With the recommendation that when so amended the bill
pass and be re-referred to the Committee on Ways and Means.
����� The report
was adopted.
Carlson from the Committee on Finance to which was referred:
H. F. No. 1053, A bill for an act relating to
elections; requiring certain public officials to provide additional data to the
secretary of state for use in maintaining the voter registration system;
providing for automatic voter registration of applicants for a driver's
license, instruction permit, or identification card; changing certain notice
requirements; amending Minnesota Statutes 2008, sections 201.121, subdivision
2; 201.13, by adding a subdivision; 201.14; 201.15, subdivisions 1, 2; 201.155;
201.161; 204C.08, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 201.
Reported the same back with the following amendments:
Page 2, line 11, delete ", and, if available,
the"
Page 2, line 12, delete "last four digits of
the individual's Social Security number"
Page 2, line 28, delete ", and the last four
digits of the"
Page 2, line 29, delete "individual's Social
Security number"
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5611
Page 3, line
13, delete ", and the last four"
Page 3, line
14, delete "digits of the individual's Social Security number"
Page 3, line
27, delete "and, if available, the last four digits of the individual's
Social Security number,"
Page 4, line
10, delete ", and the last four digits of the individual's Social
Security number"
Page 6, line
30, delete "table"
With the
recommendation that when so amended the bill pass and be re-referred to the
Committee on Ways and Means.
����� The
report was adopted.
Carlson from
the Committee on Finance to which was referred:
H. F. No. 1219,
A bill for an act relating to state employees; requiring that health insurance
benefits be made available to domestic partners of state employees if they are
also made available to spouses; amending Minnesota Statutes 2008, sections
43A.02, by adding a subdivision; 43A.24, subdivision 1.
Reported the
same back with the following amendments:
Page 2, after
line 5, insert:
"Sec.
3.� EFFECTIVE
DATE.�
Sections 1
and 2 are effective January 1, 2012."
With the
recommendation that when so amended the bill pass and be re-referred to the
Committee on Ways and Means.
����� The
report was adopted.
Carlson from
the Committee on Finance to which was referred:
H. F. No. 1708,
A bill for an act relating to human services; amending mental health
provisions; changing medical assistance reimbursement and eligibility; changing
provider qualification and training requirements; amending mental health
behavioral aide services; adding an excluded service; changing special
contracts with bordering states; requiring a new rate setting methodology;
amending Minnesota Statutes 2008, sections 148C.11, subdivision 1; 245.4885,
subdivision 1; 245.50, subdivision 5; 256B.0615, subdivisions 1, 3; 256B.0622,
subdivision 8; 256B.0623, subdivision 5; 256B.0624, subdivision 8; 256B.0625,
subdivision 49; 256B.0943, subdivisions 1, 2, 4, 5, 6, 7, 9; 256B.0944,
subdivision 5.
Reported the
same back with the following amendments:
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5612
Delete
everything after the enacting clause and insert:
"Section
1.� Minnesota Statutes 2008, section 148C.11,
subdivision 1, is amended to read:
Subdivision
1.� Other
professionals.� (a) Nothing in this
chapter prevents members of other professions or occupations from performing
functions for which they are qualified or licensed.� This exception includes, but is not limited
to:� licensed physicians; registered
nurses; licensed practical nurses; licensed psychological practitioners;
members of the clergy; American Indian medicine men and women; licensed
attorneys; probation officers; licensed marriage and family therapists;
licensed social workers; social workers employed by city, county, or state
agencies; licensed professional counselors; licensed school counselors;
registered occupational therapists or occupational therapy assistants; city,
county, or state employees when providing assessments or case management under
Minnesota Rules, chapter 9530; and until July 1, 2009, individuals
providing integrated dual-diagnosis treatment in adult mental health
rehabilitative programs certified by the Department of Human Services under
section 256B.0622 or 256B.0623.
(b) Nothing in
this chapter prohibits technicians and resident managers in programs licensed
by the Department of Human Services from discharging their duties as provided
in Minnesota Rules, chapter 9530.
(c) Any person
who is exempt under this subdivision but who elects to obtain a license under
this chapter is subject to this chapter to the same extent as other
licensees.� The board shall issue a
license without examination to an applicant who is licensed or registered in a
profession identified in paragraph (a) if the applicant:
(1) shows
evidence of current licensure or registration; and
(2) has
submitted to the board a plan for supervision during the first 2,000 hours of
professional practice or has submitted proof of supervised professional
practice that is acceptable to the board.
(d) Any person
who is exempt from licensure under this section must not use a title
incorporating the words "alcohol and drug counselor" or
"licensed alcohol and drug counselor" or otherwise hold themselves
out to the public by any title or description stating or implying that they are
engaged in the practice of alcohol and drug counseling, or that they are licensed
to engage in the practice of alcohol and drug counseling unless that person is
also licensed as an alcohol and drug counselor.�
Persons engaged in the practice of alcohol and drug counseling are not
exempt from the board's jurisdiction solely by the use of one of the above
titles.
Sec. 2.� Minnesota Statutes 2008, section 245.4871,
subdivision 26, is amended to read:
Subd. 26.� Mental
health practitioner.� "Mental
health practitioner" means a person providing services to children with
emotional disturbances.� A mental health
practitioner must have training and experience in working with children.� A mental health practitioner must be
qualified in at least one of the following ways:
(1) holds a
bachelor's degree in one of the behavioral sciences or related fields from an
accredited college or university and:
(i) has at
least 2,000 hours of supervised experience in the delivery of mental health
services to children with emotional disturbances; or
(ii) is fluent
in the non-English language of the ethnic group to which at least 50 percent of
the practitioner's clients belong, completes 40 hours of training in the
delivery of services to children with emotional disturbances, and receives
clinical supervision from a mental health professional at least once a week
until the requirement of 2,000 hours of supervised experience is met;
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2009 - Top of Page 5613
(2) has at least 6,000 hours of supervised experience
in the delivery of mental health services to children with emotional
disturbances; hours worked as a mental health behavioral aide I or II under
section 256B.0943, subdivision 7, may be included in the 6,000 hours of
experience;
(3) is a graduate student in one of the behavioral
sciences or related fields and is formally assigned by an accredited college or
university to an agency or facility for clinical training; or
(4) holds a master's or other graduate degree in one
of the behavioral sciences or related fields from an accredited college or
university and has less than 4,000 hours post-master's experience in the
treatment of emotional disturbance.
Sec. 3.�
Minnesota Statutes 2008, section 245.4885, subdivision 1, is amended to
read:
Subdivision 1.� Admission criteria.� The county board shall, prior to admission,
except in the case of emergency admission, determine the needed level of care
for all children referred for treatment of severe emotional disturbance in a
treatment foster care setting, residential treatment facility, or informally
admitted to a regional treatment center if public funds are used to pay for the
services.� The county board shall also
determine the needed level of care for all children admitted to an acute care
hospital for treatment of severe emotional disturbance if public funds other
than reimbursement under chapters 256B and 256D are used to pay for the
services.� The level of care
determination shall determine whether the proposed treatment:
(1) is necessary;
(2) is appropriate to the child's individual treatment
needs;
(3) cannot be effectively provided in the child's
home; and
(4) provides a length of stay as short as possible
consistent with the individual child's need.
When a level of care determination is conducted, the
county board may not determine that referral or admission to a treatment foster
care setting, oder residential treatment facility, or acute care
hospital is not appropriate solely because services were not first provided
to the child in a less restrictive setting and the child failed to make
progress toward or meet treatment goals in the less restrictive setting.� The level of care determination must be based
on a diagnostic assessment that includes a functional assessment which
evaluates family, school, and community living situations; and an assessment of
the child's need for care out of the home using a validated tool which assesses
a child's functional status and assigns an appropriate level of care.� The validated tool must be approved by the
commissioner of human services.� If a
diagnostic assessment including a functional assessment has been completed by a
mental health professional within the past 180 days, a new diagnostic
assessment need not be completed unless in the opinion of the current treating
mental health professional the child's mental health status has changed
markedly since the assessment was completed.�
The child's parent shall be notified if an assessment will not be
completed and of the reasons.� A copy of
the notice shall be placed in the child's file.�
Recommendations developed as part of the level of care determination
process shall include specific community services needed by the child and, if
appropriate, the child's family, and shall indicate whether or not these
services are available and accessible to the child and family.
During the level of care determination process, the
child, child's family, or child's legal representative, as appropriate, must be
informed of the child's eligibility for case management services and family
community support services and that an individual family community support plan
is being developed by the case manager, if assigned.
The level of care determination shall comply with
section 260C.212.� Wherever possible, the
parent shall be consulted in the process, unless clinically inappropriate.
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2009 - Top of Page 5614
The level of care determination, and placement
decision, and recommendations for mental health services must be documented in
the child's record.
An alternate review process may be approved by the
commissioner if the county board demonstrates that an alternate review process
has been established by the county board and the times of review, persons
responsible for the review, and review criteria are comparable to the standards
in clauses (1) to (4).
Sec. 4.�
Minnesota Statutes 2008, section 245.50, subdivision 5, is amended to
read:
Subd. 5.� Special contracts; bordering states.� (a) An individual who is detained, committed,
or placed on an involuntary basis under chapter 253B may be confined or treated
in a bordering state pursuant to a contract under this section.� An individual who is detained, committed, or
placed on an involuntary basis under the civil law of a bordering state may be
confined or treated in Minnesota pursuant to a contract under this
section.� A peace or health officer who
is acting under the authority of the sending state may transport an individual
to a receiving agency that provides services pursuant to a contract under this
section and may transport the individual back to the sending state under the
laws of the sending state.� Court orders
valid under the law of the sending state are granted recognition and
reciprocity in the receiving state for individuals covered by a contract under
this section to the extent that the court orders relate to confinement for
treatment or care of mental illness or chemical dependency.� Such treatment or care may address other
conditions that may be co-occurring with the mental illness or chemical
dependency.� These court orders are not
subject to legal challenge in the courts of the receiving state.� Individuals who are detained, committed, or
placed under the law of a sending state and who are transferred to a receiving
state under this section continue to be in the legal custody of the authority
responsible for them under the law of the sending state.� Except in emergencies, those individuals may
not be transferred, removed, or furloughed from a receiving agency without the
specific approval of the authority responsible for them under the law of the
sending state.
(b) While in the receiving state pursuant to a contract
under this section, an individual shall be subject to the sending state's laws
and rules relating to length of confinement, reexaminations, and extensions of
confinement.� No individual may be sent
to another state pursuant to a contract under this section until the receiving
state has enacted a law recognizing the validity and applicability of this
section.
(c) If an individual receiving services pursuant to a
contract under this section leaves the receiving agency without permission and
the individual is subject to involuntary confinement under the law of the
sending state, the receiving agency shall use all reasonable means to return
the individual to the receiving agency.�
The receiving agency shall immediately report the absence to the sending
agency.� The receiving state has the
primary responsibility for, and the authority to direct, the return of these
individuals within its borders and is liable for the cost of the action to the
extent that it would be liable for costs of its own resident.
(d) Responsibility for payment for the cost of care
remains with the sending agency.
(e) This subdivision also applies to county contracts
under subdivision 2 which include emergency care and treatment provided to a
county resident in a bordering state.
(f) If a Minnesota resident is admitted to a facility
in a bordering state under this chapter, a physician, licensed psychologist who
has a doctoral degree in psychology, or an advance practice registered nurse
certified in mental health, who is licensed in the bordering state, may act as
an examiner under sections 253B.07, 253B.08, 253B.092, 253B.12, and 253B.17
subject to the same requirements and limitations in section 253B.02,
subdivision 7.� The examiner may
initiate an emergency hold under section 253B.05 on a Minnesota resident who is
in a hospital under contract with a Minnesota governmental entity under this
section providing the patient, in the professional opinion of the examiner,
meets the criteria in section 253B.05.
Sec. 5.�
Minnesota Statutes 2008, section 256B.0615, subdivision 1, is amended to
read:
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Subdivision
1.� Scope.� Medical assistance covers mental health
certified peers specialists services, as established in subdivision 2, subject
to federal approval, if provided to recipients who are eligible for services
under sections 256B.0622 and, 256B.0623, and 256B.0624 and
are provided by a certified peer specialist who has completed the training
under subdivision 5.
Sec. 6.� Minnesota Statutes 2008, section 256B.0615,
subdivision 3, is amended to read:
Subd. 3.� Eligibility.� Peer support services may be made available
to consumers of (1) the intensive rehabilitative mental health services
under section 256B.0622; and (2) adult rehabilitative
mental health services under section 256B.0623; and (3) crisis stabilization
services under section 256B.0624.
Sec. 7.� Minnesota Statutes 2008, section 256B.0622,
subdivision 8, is amended to read:
Subd. 8.� Medical
assistance payment for intensive rehabilitative mental health services.� (a) Payment for residential and
nonresidential services in this section shall be based on one daily rate per
provider inclusive of the following services received by an eligible recipient
in a given calendar day:� all
rehabilitative services under this section, staff travel time to provide
rehabilitative services under this section, and nonresidential crisis stabilization
services under section 256B.0624.
(b) Except as
indicated in paragraph (c), payment will not be made to more than one entity
for each recipient for services provided under this section on a given
day.� If services under this section are
provided by a team that includes staff from more than one entity, the team must
determine how to distribute the payment among the members.
(c) The host
county shall recommend to the commissioner one rate for each entity that will
bill medical assistance for residential services under this section and two
rates one rate for each nonresidential provider.� The first nonresidential rate is for
recipients who are not receiving residential services.� The second nonresidential rate is for
recipients who are temporarily receiving residential services and need
continued contact with the nonresidential team to assure timely discharge from
residential services.� In developing
these rates, the host county shall consider and document:
(1) the cost for
similar services in the local trade area;
(2) actual
costs incurred by entities providing the services;
(3) the
intensity and frequency of services to be provided to each recipient,
including the proposed overall number of units of service to be delivered;
(4) the degree
to which recipients will receive services other than services under this
section;
(5) the costs
of other services that will be separately reimbursed; and
(6) input from
the local planning process authorized by the adult mental health initiative
under section 245.4661, regarding recipients' service needs.
(d) The rate
for intensive rehabilitative mental health services must exclude room and
board, as defined in section 256I.03, subdivision 6, and services not covered
under this section, such as partial hospitalization, home care, and inpatient
services.� Physician services that are
not separately billed may be included in the rate to the extent that a
psychiatrist is a member of the treatment team.�
The county's recommendation shall specify the period for which the rate
will be applicable, not to exceed two years.
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(e) When
services under this section are provided by an assertive community team, case
management functions must be an integral part of the team.
(f) The rate for
a provider must not exceed the rate charged by that provider for the same
service to other payors.
(g) The
commissioner shall approve or reject the county's rate recommendation, based on
the commissioner's own analysis of the criteria in paragraph (c).
Sec. 8.� Minnesota Statutes 2008, section 256B.0623,
subdivision 5, is amended to read:
Subd. 5.� Qualifications
of provider staff.� Adult
rehabilitative mental health services must be provided by qualified individual
provider staff of a certified provider entity.�
Individual provider staff must be qualified under one of the following
criteria:
(1) a mental
health professional as defined in section 245.462, subdivision 18, clauses (1)
to (5).� If the recipient has a current
diagnostic assessment by a licensed mental health professional as defined in
section 245.462, subdivision 18, clauses (1) to (5), recommending receipt of
adult mental health rehabilitative services, the definition of mental health
professional for purposes of this section includes a person who is qualified
under section 245.462, subdivision 18, clause (6), and who holds a current and
valid national certification as a certified rehabilitation counselor or
certified psychosocial rehabilitation practitioner;
(2) a mental
health practitioner as defined in section 245.462, subdivision 17.� The mental health practitioner must work
under the clinical supervision of a mental health professional;
(3) a certified
peer specialist under section 256B.0615.�
The certified peer specialist must work under the clinical supervision
of a mental health professional; or
(4) a mental
health rehabilitation worker.� A mental
health rehabilitation worker means a staff person working under the direction
of a mental health practitioner or mental health professional and under the
clinical supervision of a mental health professional in the implementation of
rehabilitative mental health services as identified in the recipient's
individual treatment plan who:
(i) is at least
21 years of age;
(ii) has a high
school diploma or equivalent;
(iii) has
successfully completed 30 hours of training during the past two years immediately
prior to the date of hire, or before provision of direct services, in all
of the following areas:� recipient
rights, recipient-centered individual treatment planning, behavioral
terminology, mental illness, co-occurring mental illness and substance abuse,
psychotropic medications and side effects, functional assessment, local
community resources, adult vulnerability, recipient confidentiality; and
(iv) meets the qualifications
in subitem (A) or (B):
(A) has an
associate of arts degree or two years full-time postsecondary education in
one of the behavioral sciences or human services, or; is a
registered nurse without a bachelor's degree,; or who within the
previous ten years has:
(1) three years
of personal life experience with serious and persistent mental illness;
(2) three years
of life experience as a primary caregiver to an adult with a serious mental
illness or traumatic brain injury; or
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(3) 4,000 hours
of supervised paid work experience in the delivery of mental health services to
adults with a serious mental illness or traumatic brain injury; or
(B)(1) is fluent
in the non-English language or competent in the culture of the ethnic group to
which at least 20 percent of the mental health rehabilitation worker's clients
belong;
(2) receives
during the first 2,000 hours of work, monthly documented individual clinical
supervision by a mental health professional;
(3) has 18 hours
of documented field supervision by a mental health professional or practitioner
during the first 160 hours of contact work with recipients, and at least six
hours of field supervision quarterly during the following year;
(4) has review
and cosignature of charting of recipient contacts during field supervision by a
mental health professional or practitioner; and
(5) has 40
15 hours of additional continuing education on mental health topics during
the first year of employment and 15 hours during every additional year of
employment.
Sec. 9.� Minnesota Statutes 2008, section 256B.0624,
subdivision 8, is amended to read:
Subd. 8.� Adult crisis
stabilization staff qualifications.�
(a) Adult mental health crisis stabilization services must be provided
by qualified individual staff of a qualified provider entity.� Individual provider staff must have the following
qualifications:
(1) be a mental
health professional as defined in section 245.462, subdivision 18, clauses (1)
to (5);
(2) be a mental
health practitioner as defined in section 245.462, subdivision 17.� The mental health practitioner must work
under the clinical supervision of a mental health professional; or
(3) be a
certified peer specialist under section 256B.0615.� The certified peer specialist must work under
the clinical supervision of a mental health professional; or
(4) be a mental health rehabilitation
worker who meets the criteria in section 256B.0623, subdivision 5, clause (3)
(4); works under the direction of a mental health practitioner as defined
in section 245.462, subdivision 17, or under direction of a mental health
professional; and works under the clinical supervision of a mental health
professional.
(b) Mental
health practitioners and mental health rehabilitation workers must have
completed at least 30 hours of training in crisis intervention and
stabilization during the past two years.
Sec. 10.� Minnesota Statutes 2008, section 256B.0625,
subdivision 49, is amended to read:
Subd. 49.� Community
health worker.� (a) Medical
assistance covers the care coordination and patient education services provided
by a community health worker if the community health worker has:
(1) received a
certificate from the Minnesota State Colleges and Universities System approved
community health worker curriculum; or
(2) at least
five years of supervised experience with an enrolled physician, registered
nurse, advanced practice registered nurse, mental health professional as
defined in section 245.462, subdivision 18, clauses (1) to (5), and section
245.4871, subdivision 27, clauses (1) to (5), or dentist, or at least five
years of supervised experience by a certified public health nurse operating
under the direct authority of an enrolled unit of government.
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Community health workers eligible for
payment under clause (2) must complete the certification program by January 1,
2010, to continue to be eligible for payment.
(b) Community
health workers must work under the supervision of a medical assistance enrolled
physician, registered nurse, advanced practice registered nurse, mental
health professional as defined in section 245.462, subdivision 18, clauses (1)
to (5), and section 245.4871, subdivision 27, clauses (1) to (5), or
dentist, or work under the supervision of a certified public health nurse
operating under the direct authority of an enrolled unit of government.
(c) Care
coordination and patient education services covered under this subdivision
include, but are not limited to, services relating to oral health and dental
care.
Sec. 11.� Minnesota Statutes 2008, section 256B.0943,
subdivision 1, is amended to read:
Subdivision
1.� Definitions.� For purposes of this section, the following
terms have the meanings given them.
(a)
"Children's therapeutic services and supports" means the flexible
package of mental health services for children who require varying therapeutic
and rehabilitative levels of intervention.�
The services are time-limited interventions that are delivered using
various treatment modalities and combinations of services designed to reach
treatment outcomes identified in the individual treatment plan.
(b)
"Clinical supervision" means the overall responsibility of the mental
health professional for the control and direction of individualized treatment
planning, service delivery, and treatment review for each client.� A mental health professional who is an
enrolled Minnesota health care program provider accepts full professional
responsibility for a supervisee's actions and decisions, instructs the
supervisee in the supervisee's work, and oversees or directs the supervisee's
work.
(c)
"County board" means the county board of commissioners or board
established under sections 402.01 to 402.10 or 471.59.�
(d)
"Crisis assistance" has the meaning given in section 245.4871,
subdivision 9a.�
(e)
"Culturally competent provider" means a provider who understands and
can utilize to a client's benefit the client's culture when providing services
to the client.� A provider may be
culturally competent because the provider is of the same cultural or ethnic
group as the client or the provider has developed the knowledge and skills
through training and experience to provide services to culturally diverse
clients.
(f) "Day
treatment program" for children means a site-based structured program
consisting of group psychotherapy for more than three individuals and other
intensive therapeutic services provided by a multidisciplinary team, under the
clinical supervision of a mental health professional.
(g) "Diagnostic
assessment" has the meaning given in section 245.4871, subdivision
11.�
(h)
"Direct service time" means the time that a mental health
professional, mental health practitioner, or mental health behavioral aide
spends face-to-face with a client and the client's family.� Direct service time includes time in which
the provider obtains a client's history or provides service components of
children's therapeutic services and supports.�
Direct service time does not include time doing work before and after providing
direct services, including scheduling, maintaining clinical records, consulting
with others about the client's mental health status, preparing reports,
receiving clinical supervision directly related to the client's
psychotherapy session, and revising the client's individual treatment plan.
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5619
(i) "Direction of mental health behavioral
aide" means the activities of a mental health professional or mental
health practitioner in guiding the mental health behavioral aide in providing
services to a client.� The direction of a
mental health behavioral aide must be based on the client's individualized
treatment plan and meet the requirements in subdivision 6, paragraph (b),
clause (5).
(j) "Emotional disturbance" has the meaning
given in section 245.4871, subdivision 15.�
For persons at least age 18 but under age 21, mental illness has the
meaning given in section 245.462, subdivision 20, paragraph (a).�
(k) "Individual behavioral plan" means a
plan of intervention, treatment, and services for a child written by a mental
health professional or mental health practitioner, under the clinical
supervision of a mental health professional, to guide the work of the mental
health behavioral aide.
(l) "Individual treatment plan" has the
meaning given in section 245.4871, subdivision 21.�
(m) "Mental health behavioral aide services"
means medically necessary one-on-one activities performed by a trained
paraprofessional to assist a child retain or generalize psychosocial skills as
taught by a mental health professional or mental health practitioner and as
described in the child's individual treatment plan and individual behavior
plan.� Activities involve working
directly with the child or child's family as provided in subdivision 9, paragraph
(b), clause (4).
(m) (n) "Mental
health professional" means an individual as defined in section 245.4871,
subdivision 27, clauses (1) to (5), or tribal vendor as defined in section
256B.02, subdivision 7, paragraph (b).�
(n) (o) "Preschool
program" means a day program licensed under Minnesota Rules, parts
9503.0005 to 9503.0175, and enrolled as a children's therapeutic services and
supports provider to provide a structured treatment program to a child who is
at least 33 months old but who has not yet attended the first day of kindergarten.
(o) (p) "Skills
training" means individual, family, or group training, delivered by or
under the direction of a mental health professional, designed to improve
the basic functioning of the child with emotional disturbance and the child's
family in the activities of daily living and community living, and to improve
the social functioning of the child and the child's family in areas important
to the child's maintaining or reestablishing residency in the community.� Individual, family, and group skills training
must:
(1) consist of activities designed to promote skill
development of the child and the child's family in the use of age-appropriate
daily living skills, interpersonal and family relationships, and leisure and
recreational services;
(2) consist of activities that will assist the
family's understanding of normal child development and to use parenting skills
that will help the child with emotional disturbance achieve the goals outlined
in the child's individual treatment plan; and
(3) promote family preservation and unification,
promote the family's integration with the community, and reduce the use of
unnecessary out-of-home placement or institutionalization of children with
emotional disturbance. facilitate
the acquisition of psychosocial skills that are medically necessary to
rehabilitate the child to an age-appropriate developmental trajectory
heretofore disrupted by a psychiatric illness or to self-monitor, compensate
for, cope with, counteract, or replace skills deficits or maladaptive skills
acquired over the course of a psychiatric illness.� Skills training is subject to the following
requirements:
(1) a mental health professional or a mental health
practitioner must provide skills training;
(2) the child must always be present during skills
training; however, a brief absence of the child for no more than ten percent of
the session unit may be allowed to redirect or instruct family members;
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(3) skills
training delivered to children or their families must be targeted to the
specific deficits or maladaptations of the child's mental health disorder and
must be prescribed in the child's individual treatment plan;
(4) skills
training delivered to the child's family must teach skills needed by parents to
enhance the child's skill development and to help the child use in daily life
the skills previously taught by a mental health professional or mental health
practitioner and to develop or maintain a home environment that supports the
child's progressive use skills;
(5) group
skills training may be provided to multiple recipients who, because of the
nature of their emotional, behavioral, or social dysfunction, can derive mutual
benefit from interaction in a group setting, which must be staffed as follows:
(i) one
mental health professional or one mental health practitioner under supervision
of a licensed mental health professional must work with a group of four to
eight clients; or
(ii) two
mental health professionals or two mental health practitioners under
supervision of a licensed mental health professional, or one professional plus
one practitioner must work with a group of nine to 12 clients.
Sec. 12.� Minnesota Statutes 2008, section 256B.0943,
subdivision 2, is amended to read:
Subd. 2.� Covered
service components of children's therapeutic services and supports.� (a) Subject to federal approval, medical
assistance covers medically necessary children's therapeutic services and
supports as defined in this section that an eligible provider entity certified
under subdivisions subdivision 4 and 5 provides to a
client eligible under subdivision 3.
(b) The service
components of children's therapeutic services and supports are:
(1) individual,
family, and group psychotherapy;
(2) individual,
family, or group skills training provided by a mental health professional or
mental health practitioner;
(3) crisis
assistance;
(4) mental
health behavioral aide services; and
(5) direction of
a mental health behavioral aide.
(c) Service
components in paragraph (b) may be combined to constitute therapeutic programs,
including day treatment programs and therapeutic preschool
programs.� Although day treatment and
preschool programs have specific client and provider eligibility requirements,
medical assistance only pays for the service components listed in paragraph
(b).
Sec. 13.� Minnesota Statutes 2008, section 256B.0943,
subdivision 4, is amended to read:
Subd. 4.� Provider
entity certification.� (a) Effective
July 1, 2003, the commissioner shall establish an initial provider entity application
and certification process and recertification process to determine whether a
provider entity has an administrative and clinical infrastructure that meets
the requirements in subdivisions 5 and 6.�
The commissioner shall recertify a provider entity at least every three
years.� The commissioner shall establish
a process for decertification of a provider entity that no longer meets the
requirements in this section.� The
county, tribe, and the commissioner shall be mutually responsible and accountable
for the county's, tribe's, and state's part of the certification,
recertification, and decertification processes.
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(b) For purposes of this section, a provider entity
must be:
(1) an Indian health services facility or a facility
owned and operated by a tribe or tribal organization operating as a 638
facility under Public Law 93-638 certified by the state;
(2) a county-operated entity certified by the state;
or
(3) a noncounty entity recommended for
certification by the provider's host county and certified by the state.
Sec. 14.�
Minnesota Statutes 2008, section 256B.0943, subdivision 5, is amended to
read:
Subd. 5.� Provider entity administrative
infrastructure requirements.� (a) To
be an eligible provider entity under this section, a provider entity must have
an administrative infrastructure that establishes authority and accountability
for decision making and oversight of functions, including finance, personnel,
system management, clinical practice, and performance measurement.� The provider must have written policies and
procedures that it reviews and updates every three years and distributes to
staff initially and upon each subsequent update.
(b) The administrative infrastructure written policies
and procedures must include:
(1) personnel procedures, including a process for: (i)
recruiting, hiring, training, and retention of culturally and linguistically
competent providers; (ii) conducting a criminal background check on all direct
service providers and volunteers; (iii) investigating, reporting, and acting on
violations of ethical conduct standards; (iv) investigating, reporting, and
acting on violations of data privacy policies that are compliant with federal
and state laws; (v) utilizing volunteers, including screening applicants,
training and supervising volunteers, and providing liability coverage for
volunteers; and (vi) documenting that each mental health professional, mental
health practitioner, or mental health behavioral aide meets the applicable
provider qualification criteria, training criteria under subdivision 8,
and clinical supervision or direction of a mental health behavioral aide
requirements under subdivision 6;
(2) fiscal procedures, including internal fiscal
control practices and a process for collecting revenue that is compliant with
federal and state laws;
(3) if a client is receiving services from a case
manager or other provider entity, a service coordination process that ensures
services are provided in the most appropriate manner to achieve maximum benefit
to the client.� The provider entity must
ensure coordination and nonduplication of services consistent with county board
coordination procedures established under section 245.4881, subdivision 5;
(4) (3) a performance measurement system, including
monitoring to determine cultural appropriateness of services identified in the
individual treatment plan, as determined by the client's culture, beliefs,
values, and language, and family-driven services; and
(5) (4) a process to establish and maintain individual client
records.� The client's records must
include:
(i) the client's personal information;
(ii) forms applicable to data privacy;
(iii) the client's diagnostic assessment, updates,
results of tests, individual treatment plan, and individual behavior plan, if
necessary;
(iv) documentation of service delivery as specified
under subdivision 6;
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5622
(v) telephone
contacts;
(vi) discharge
plan; and
(vii) if applicable,
insurance information.
(c) A provider
entity that uses a restrictive procedure with a client must meet the
requirements of section 245.8261.
Sec. 15.� Minnesota Statutes 2008, section 256B.0943,
subdivision 6, is amended to read:
Subd. 6. �Provider
entity clinical infrastructure requirements.� (a) To be an eligible provider entity under
this section, a provider entity must have a clinical infrastructure that
utilizes diagnostic assessment, an individualized treatment plan
plans, service delivery, and individual treatment plan review that are
culturally competent, child-centered, and family-driven to achieve maximum
benefit for the client.� The provider
entity must review, and update as necessary, the clinical
policies and procedures every three years and must distribute the policies and
procedures to staff initially and upon each subsequent update.
(b) The
clinical infrastructure written policies and procedures must include policies
and procedures for:
(1) providing
or obtaining a client's diagnostic assessment that identifies acute and chronic
clinical disorders, co-occurring medical conditions, sources of psychological
and environmental problems, and including a functional
assessment.� The functional assessment
must clearly summarize the client's individual strengths and needs;
(2) developing
an individual treatment plan that is:
(i) is based
on the information in the client's diagnostic assessment;
(ii)
identified goals and objectives of treatment, treatment strategy, schedule for
accomplishing treatment goals and objectives, and the individuals responsible
for providing treatment services and supports;
(ii) (iii) is developed no later than the end
of the first psychotherapy session after the after completion of the
client's diagnostic assessment by the a mental health
professional who provides the client's psychotherapy and before the
provision of children's therapeutic services and supports;
(iii) (iv) is developed through a child-centered,
family-driven, culturally appropriate planning process that
identifies service needs and individualized, planned, and culturally
appropriate interventions that contain specific treatment goals and objectives
for the client and the client's family or foster family;
(iv) (v) is reviewed at least once every 90 days
and revised, if necessary; and
(v) (vi) is signed by the clinical supervisor
and by the client or, if appropriate, by the client's parent or
other person authorized by statute to consent to mental health services for the
client;
(3) developing
an individual behavior plan that documents Dienstleistungen treatment
strategies to be provided by the mental health behavioral aide.� The individual behavior plan must include:
(i) detailed
instructions on the service treatment strategies to be provided;
(ii) time
allocated to each service treatment strategy;
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5623
(iii) methods of documenting the child's behavior;
(iv) methods of monitoring the child's progress in
reaching objectives; and
(v) goals to increase or decrease targeted behavior as
identified in the individual treatment plan;
(4) providing clinical supervision of the
mental health practitioner and mental health behavioral aide.� A mental health professional must document
the clinical supervision the professional provides by cosigning individual
treatment plans and making entries in the client's record on supervisory
activities.� Clinical supervision does
not include the authority to make or terminate court-ordered placements of the
child.� A clinical supervisor must be
available for urgent consultation as required by the individual client's needs
or the situation.� Clinical supervision
may occur individually or in a small group to discuss treatment and review
progress toward goals.� The focus of
clinical supervision must be the client's treatment needs and progress and the
mental health practitioner's or behavioral aide's ability to provide services;
(4a) CTSS certified provider entities providing
meeting day treatment and therapeutic preschool programs must
meet the conditions in items (i) to (iii):
(i) the supervisor must be present and available on
the premises more than 50 percent of the time in a five-working-day period
during which the supervisee is providing a mental health service;
(ii) the diagnosis and the client's individual
treatment plan or a change in the diagnosis or individual treatment plan must
be made by or reviewed, approved, and signed by the supervisor; and
(iii) every 30 days, the supervisor must review and
sign the record of indicating the supervisor has reviewed the
client's care for all activities in the preceding 30-day period;
(4b) meeting the clinical supervision standards in
items (i) to (iii) for all other services provided under CTSS, clinical
supervision standards provided in items (i) to (iii) must be used:
(i) medical assistance shall reimburse for services
provided by a mental health practitioner who maintains a consulting
relationship with a mental health professional who accepts full professional
responsibility and is present on site for at least one observation during
the first 12 hours in which the mental health practitioner provides the
individual, family, or group skills training to the child or the child's family;
(ii) medical assistance shall reimburse for services
provided by a mental health behavioral aide who maintains a consulting
relationship with a mental health professional who accepts full professional
responsibility and has an approved plan for clinical supervision of the
behavioral aide.� Plans will be approved
in accordance with supervision standards promulgated by the commissioner of
human services;
(ii) thereafter, (iii) the mental health
professional is required to be present on site for observation as clinically
appropriate when the mental health practitioner or mental health behavioral
aide is providing individual, family, or group skills training to the
child or the child's family CTSS services; and
(iii)
(iv) when conducted, the observation
must be a minimum of one clinical unit.�
The on-site presence of the mental health professional must be
documented in the child's record and signed by the mental health professional
who accepts full professional responsibility;
(5) providing direction to a mental health behavioral
aide.� For entities that employ mental
health behavioral aides, the clinical supervisor must be employed by the
provider entity or other certified children's therapeutic supports and services
provider entity to ensure necessary and appropriate oversight for the client's
treatment and
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5624
continuity of care.�
The mental health professional or mental health practitioner giving
direction must begin with the goals on the individualized treatment plan, and
instruct the mental health behavioral aide on how to construct therapeutic
activities and interventions that will lead to goal attainment.� The professional or practitioner giving
direction must also instruct the mental health behavioral aide about the
client's diagnosis, functional status, and other characteristics that are
likely to affect service delivery.�
Direction must also include determining that the mental health
behavioral aide has the skills to interact with the client and the client's
family in ways that convey personal and cultural respect and that the aide
actively solicits information relevant to treatment from the family.� The aide must be able to clearly explain the
activities the aide is doing with the client and the activities' relationship
to treatment goals.� Direction is more
didactic than is supervision and requires the professional or practitioner
providing it to continuously evaluate the mental health behavioral aide's
ability to carry out the activities of the individualized treatment plan and
the individualized behavior plan.� When
providing direction, the professional or practitioner must:
(i) review
progress notes prepared by the mental health behavioral aide for accuracy and
consistency with diagnostic assessment, treatment plan, and behavior goals and
the professional or practitioner must approve and sign the progress notes;
(ii) identify
changes in treatment strategies, revise the individual behavior plan, and
communicate treatment instructions and methodologies as appropriate to ensure
that treatment is implemented correctly;
(iii)
demonstrate family-friendly behaviors that support healthy collaboration among
the child, the child's family, and providers as treatment is planned and
implemented;
(iv) ensure that
the mental health behavioral aide is able to effectively communicate with the
child, the child's family, and the provider; and
(v) record the
results of any evaluation and corrective actions taken to modify the work of
the mental health behavioral aide;
(6) providing
service delivery that implements the individual treatment plan and meets the
requirements under subdivision 9; and
(7) individual
treatment plan review.� The review must
determine the extent to which the services have met the goals and objectives in
the previous treatment plan.� The review
must assess the client's progress and ensure that services and treatment goals
continue to be necessary and appropriate to the client and the client's family
or foster family.� Revision of the
individual treatment plan does not require a new diagnostic assessment unless
the client's mental health status has changed markedly.� The updated treatment plan must be signed by
the clinical supervisor and by the client, if appropriate, and by the
client's parent or other person authorized by statute to give consent to the
mental health services for the child.
Sec. 16.� Minnesota Statutes 2008, section 256B.0943,
subdivision 7, is amended to read:
Subd. 7.� Qualifications
of individual and team providers.�
(a) An individual or team provider working within the scope of the
provider's practice or qualifications may provide service components of
children's therapeutic services and supports that are identified as medically
necessary in a client's individual treatment plan.
(b) An
individual provider must be qualified as:
(1) a mental
health professional as defined in subdivision 1, paragraph (m); or
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5625
(2) a mental
health practitioner as defined in section 245.4871, subdivision 26.� The mental health practitioner must work
under the clinical supervision of a mental health professional; or
(3) a mental
health behavioral aide working under the direction clinical
supervision of a mental health professional to implement the rehabilitative
mental health services identified in the client's individual treatment plan
and individual behavior plan.
(A) A level I
mental health behavioral aide must:
(i) be at least
18 years old;
(ii) have a
high school diploma or general equivalency diploma (GED) or two years of
experience as a primary caregiver to a child with severe emotional disturbance
within the previous ten years; and
(iii) meet
preservice and continuing education requirements under subdivision 8.
(B) A level II
mental health behavioral aide must:
(i) be at least
18 years old;
(ii) have an
associate or bachelor's degree or 4,000 hours of experience in delivering clinical
services in the treatment of mental illness concerning children or adolescents.� Hours worked as a mental health behavioral
aide I may be included in the 4,000 hours of experience; and
(iii) meet
preservice and continuing education requirements in subdivision 8.
(c) A preschool
program multidisciplinary team must include at least one mental health
professional and one or more of the following individuals under the clinical
supervision of a mental health professional:
(i) a mental
health practitioner; or
(ii) a program
person, including a teacher, assistant teacher, or aide, who meets the
qualifications and training standards of a level I mental health behavioral
aide.
(d) A day
treatment multidisciplinary team must include at least one mental health
professional and one mental health practitioner.
Sec. 17.� Minnesota Statutes 2008, section 256B.0943,
subdivision 9, is amended to read:
Subd. 9.� Service
delivery criteria.� (a) In delivering
services under this section, a certified provider entity must ensure that:
(1) each
individual provider's caseload size permits the provider to deliver services to
both clients with severe, complex needs and clients with less intensive
needs.� The provider's caseload size should
reasonably enable the provider to play an active role in service planning,
monitoring, and delivering services to meet the client's and client's family's
needs, as specified in each client's individual treatment plan;
(2) site-based
programs, including day treatment and preschool programs, provide staffing and
facilities to ensure the client's health, safety, and protection of rights, and
that the programs are able to implement each client's individual treatment
plan;
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5626
(3) a day
treatment program is provided to a group of clients by a multidisciplinary team
under the clinical supervision of a mental health professional.� The day treatment program must be provided in
and by: (i) an outpatient hospital accredited by the Joint Commission on
Accreditation of Health Organizations and licensed under sections 144.50 to 144.55;
(ii) a community mental health center under section 245.62; and oder (iii)
an entity that is under contract with the county board to operate a program
that meets the requirements of sections 245.4712, subdivision 2, and oder
245.4884, subdivision 2, and Minnesota Rules, parts 9505.0170 to 9505.0475.� The day treatment program must stabilize the
client's mental health status while developing and improving the client's
independent living and socialization skills.�
The goal of the day treatment program must be to reduce or relieve the
effects of mental illness and provide training to enable the client to live in
the community.� The program must be
available at least one day a week for a three-hour two-hour time
block.� The three-hour two-hour
time block must include at least one hour, but no more than two hours,
of individual or group psychotherapy.� The
remainder of the three-hour time block may include recreation therapy,
socialization therapy, or independent living skills therapy, but only if the
therapies are included in the client's individual treatment plan. The
remainder of the structured treatment program may include individual or group
psychotherapy and individual or group skills training, if included in the
client's individual treatment plan.� Day
treatment programs are not part of inpatient or residential treatment services.� A day treatment program may provide fewer
than the minimally required hours for a particular child during a billing
period in which the child is transitioning into, or out of, the program;
and
(4) a therapeutic
preschool program is a structured treatment program offered to a child who
is at least 33 months old, but who has not yet reached the first day of
kindergarten, by a preschool multidisciplinary team in a day program licensed
under Minnesota Rules, parts 9503.0005 to 9503.0175.� The program must be available at least one
day a week for a minimum two-hour time block two hours per day, five
days per week, and 12 months of each calendar year.� The structured treatment program may include
individual or group psychotherapy and recreation therapy, socialization
therapy, or independent living skills therapy individual or group skills
training, if included in the client's individual treatment plan.� A therapeutic preschool program may
provide fewer than the minimally required hours for a particular child during a
billing period in which the child is transitioning into, or out of, the
program.
(b) A provider
entity must deliver the service components of children's therapeutic services
and supports in compliance with the following requirements:
(1) individual,
family, and group psychotherapy must be delivered as specified in Minnesota
Rules, part 9505.0323;
(2) individual,
family, or group skills training must be provided by a mental health
professional or a mental health practitioner who has a consulting relationship
with a mental health professional who accepts full professional responsibility
for the training;
(3) crisis
assistance must be time-limited and designed to resolve or stabilize crisis
through arrangements for direct intervention and support services to the child
and the child's family.� Crisis
assistance must utilize resources designed to address abrupt or substantial
changes in the functioning of the child or the child's family as evidenced by a
sudden change in behavior with negative consequences for well being, a loss of
usual coping mechanisms, or the presentation of danger to self or others;
(4) mental
health behavioral aide services must be medically necessary services
that are provided by a mental health behavioral aide must be treatment
services, identified in the child's individual treatment plan and individual
behavior plan, which are performed minimally by a paraprofessional qualified
according to subdivision 7, paragraph (b), clause (3), and which are designed
to improve the functioning of the child and support the family in activities
of daily and community living. in the progressive use of developmentally
appropriate psychosocial skills.�
Activities involve working directly with the child, child-peer
groupings, or child-family groupings to practice, repeat, reintroduce, and
master the skills defined in subdivision 1, paragraph (p), as previously taught
by a mental health professional or mental health practitioner including:
Journal of
the House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5627
(i)
providing cues or prompts in skill-building peer-to-peer or parent-child
interactions so that the child progressively recognizes and responds to the
cues independently;
(ii)
performing as a practice partner or role-play partner;
(iii)
reinforcing the child's accomplishments;
(iv)
generalizing skill-building activities in the child's multiple natural
settings;
(v)
assigning further practice activities; and
(vi)
intervening as necessary to redirect the child's target behavior and to
de-escalate behavior that puts the child or other person at risk of injury.
A mental health behavioral aide must
document the delivery of services in written progress notes.� The mental health behavioral aide must
implement goals in the treatment plan for the child's emotional disturbance
that allow the child to acquire developmentally and therapeutically appropriate
daily living skills, social skills, and leisure and recreational skills through
targeted activities.� These activities may
include:
(i)
assisting a child as needed with skills development in dressing, eating, and
toileting;
(ii)
assisting, monitoring, and guiding the child to complete tasks, including
facilitating the child's participation in medical appointments;
(iii) observing
the child and intervening to redirect the child's inappropriate behavior;
(iv)
assisting the child in using age-appropriate self-management skills as related
to the child's emotional disorder or mental illness, including problem solving,
decision making, communication, conflict resolution, anger management, social
skills, and recreational skills;
(v)
implementing deescalation techniques as recommended by the mental health
professional;
(vi) implementing
any other mental health service that the mental health professional has
approved as being within the scope of the behavioral aide's duties; or
(vii)
assisting the parents to develop and use parenting skills that help the child
achieve the goals outlined in the child's individual treatment plan or
individual behavioral plan.� Parenting
skills must be directed exclusively to the child's treatment treatment strategies in the
individual treatment plan and the individual behavior plan.� The mental health behavioral aide must
document the delivery of services in written progress notes.� Progress notes must reflect implementation of
the treatment strategies, as performed by the mental health behavioral aide and
the child's responses to the treatment strategies; and
(5) direction
of a mental health behavioral aide must include the following:
(i) a total of
one hour of on-site observation by a mental health professional during the
first 12 hours of service provided to a child;
(ii) ongoing
on-site observation by a mental health professional or mental health
practitioner for at least a total of one hour during every 40 hours of service
provided to a child; and
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5628
(iii) immediate
accessibility of the mental health professional or mental health practitioner
to the mental health behavioral aide during service provision.
Sec. 18.� Minnesota Statutes 2008, section 256B.0944,
subdivision 5, is amended to read:
Subd. 5.� Mobile
crisis intervention staff qualifications.�
(a) To provide children's mental health mobile crisis intervention
services, a mobile crisis intervention team must include:
(1) at least two
mental health professionals as defined in section 256B.0943, subdivision 1,
paragraph (m) (n); or
(2) a
combination of at least one mental health professional and one mental health
practitioner as defined in section 245.4871, subdivision 26, with the required mental
health crisis training and under the clinical supervision of a mental health
professional on the team.
(b) The team
must have at least two people with at least one member providing on-site crisis
intervention services when needed.� Team members
must be experienced in mental health assessment, crisis intervention
techniques, and clinical decision making under emergency conditions and have
knowledge of local services and resources.�
The team must recommend and coordinate the team's services with
appropriate local resources, including the county social services agency,
mental health service providers, and local law enforcement, if necessary.
Sec. 19.� RATE
SETTING.�
The
commissioner shall implement a new statewide rate setting methodology for
intensive residential and nonresidential mental health services starting
January 1, 2010.� The new rate setting
methodology shall be fiscally neutral and consistent with federal and state
Medicaid rules, regulations, procedures, and practices.
EFFECTIVE DATE.�
This section is effective for services provided on or after January
1, 2010, and does not change contracts or agreements relating to services
provided before January 1, 2010."
Delete the title
and insert:
"A bill for
an act relating to human services; amending mental health provisions; changing
medical assistance reimbursement and eligibility; changing provider
qualification and training requirements; amending mental health behavioral aide
services; providing coverage of mental health behavioral aide services;
changing special contracts with bordering states; requiring a new rate setting
methodology; amending Minnesota Statutes 2008, sections 148C.11, subdivision 1;
245.4871, subdivision 26; 245.4885, subdivision 1; 245.50, subdivision 5; 256B.0615,
subdivisions 1, 3; 256B.0622, subdivision 8; 256B.0623, subdivision 5;
256B.0624, subdivision 8; 256B.0625, subdivision 49; 256B.0943, subdivisions 1,
2, 4, 5, 6, 7, 9; 256B.0944, subdivision 5."
With the
recommendation that when so amended the bill pass.
����� The
report was adopted.
Atkins from the
Committee on Commerce and Labor to which was referred:
H. F. No. 2112,
A resolution memorializing the Congress of the United States to oppose
enactment of legislation of the substance and tenor of S. 40/H.R. 3200 -- the
National Insurance Act of 2007 -- proposed optional federal charter
legislation.
Reported the
same back with the recommendation that the bill pass and be re-referred to the
Committee on Rules and Legislative Administration.
����� The
report was adopted.
Journal of the
House - 52nd Day - Tuesday, May 12, 2009 - Top of Page 5629
Faust from the
Committee on Ways and Means to which was referred:
S. F. No. 97, A
bill for an act relating to health; providing for the medical use of marijuana;
providing civil and criminal penalties; appropriating money; amending Minnesota
Statutes 2008, section 13.3806, by adding a subdivision; proposing coding for
new law in Minnesota Statutes, chapter 152.
Reported the
same back with the following amendments to the first unofficial engrossment:
Page 15, line
16, delete "This is a onetime appropriation."
With the
recommendation that when so amended the bill pass.
����� The
report was adopted.
Carlson from
the Committee on Finance to which was referred:
S. F. No. 727,
A bill for an act relating to human services; establishing a self-advocacy
program for persons with developmental disabilities; transferring money
appropriated to the commissioner of administration; amending Minnesota Statutes
2008, section 256B.092, by adding a subdivision.
Reported the
same back with the following amendments:
Delete
everything after the enacting clause and insert:
"Section
1.� Minnesota Statutes 2008, section 256B.092,
is amended by adding a subdivision to read:
Subd. 11.�
Self-advocacy activities.� Within the limits of appropriations
specifically for this purpose, Advocating Change Together, in cooperation with
the network of self-advocacy groups called Self-Advocates Minnesota, shall
conduct self-advocacy activities for persons with developmental
disabilities.� These activities shall
include, but not be limited to, training on individual rights, decision making,
self determination, prevention of abuse, and participation in quality assurance
monitoring.� The commissioner shall seek
to obtain federal financial participation for eligible activity by Advocating
Change Together and Self-Advocates Minnesota.�
These organizations shall maintain and transmit to the commissioner
documentation that is necessary in order to obtain federal funds.
Sec. 2.� TRANSFER;
APPROPRIATION.�
Any general
fund appropriation to the commissioner of administration for a grant to
Advocating Change Together for the purposes of Minnesota Statutes, section
256B.092, subdivision 11, for the biennium beginning July 1, 2009, is
transferred to the commissioner of human services and becomes part of base
level funding for the commissioner of human services for the biennium beginning
July 1, 2011."
With the
recommendation that when so amended the bill pass and be re-referred to the
Committee on Ways and Means.
����� The
report was adopted.
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5630
Carlson from the Committee on Finance to which was
referred:
S. F. No. 915, A bill for an act relating to
insurance; requiring school districts to obtain employee health coverage
through the public employees insurance program; appropriating money; amending
Minnesota Statutes 2008, sections 43A.316, subdivisions 9, 10, by adding
subdivisions; 62E.02, subdivision 23; 62E.10, subdivision 1; 62E.11,
subdivision 5; 297I.05, subdivision 5; 297I.15, subdivision 3.
Reported the same back with the following amendments:
Delete everything after the enacting clause and
insert:
"Section 1.�
Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:
Subd. 3a.� Health
improvement programs.� The
commissioner, with the approval of the school employee insurance committee, is
authorized to plan, develop, purchase, administer, and evaluate disease
management and other programs, strategies, and incentives to improve the health
and health outcomes of members.
Sec. 2.�
Minnesota Statutes 2008, section 43A.316, subdivision 9, is amended to
read:
Subd. 9.� Insurance trust fund.� (a) The insurance trust fund in the
state treasury consists of deposits of the premiums received from employers
participating in the program and transfers before July 1, 1994, from the excess
contributions holding account established by section 353.65, subdivision
7.� All money in the fund is appropriated
to the commissioner to pay insurance premiums, approved claims, refunds, administrative
costs, and other related service costs, including costs incurred
under chapters 62E and 297I in connection with the school employee insurance
program.� Premiums paid by employers
to the fund are exempt from the taxes imposed by chapter 297I, except as
described in paragraph (b).� The
commissioner shall reserve an amount of money to cover the estimated costs of
claims incurred but unpaid.� The State
Board of Investment shall invest the money according to
section 11A.24.� Investment income
and losses attributable to the fund must be credited to the fund.
(b) Notwithstanding paragraph (a), premium revenues
collected from the school employee insurance program, described in subdivisions
12 and 13, are not exempt from the taxes imposed under section 297I.05,
subdivision 5, paragraph (b).
Sec. 3.�
Minnesota Statutes 2008, section 43A.316, subdivision 10, is amended to
read:
Subd. 10.� Exemption.� (a) The public employee insurance
program and, where applicable, the employers participating in it are exempt
from chapters 60A, 62A, 62C, 62D, 62E, and 62H, section 471.617, subdivisions 2
and 3, and the bidding requirements of section 471.6161.
(b) Notwithstanding paragraph (a), the school employee
insurance program, described in subdivisions 12 and 13, is a contributing
member of the Minnesota Comprehensive Health Association and must pay
assessments made by the association on the premium revenue attributed to the
school employee insurance program, prorated as provided in section 62E.11,
subdivision 5, paragraph (b).
Sec. 4.�
Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:
Subd. 11.� Definitions.� (a) For purposes of subdivisions 11 to 16,
the terms defined in this subdivision have the meanings given.
(b) "Eligible employee" means an employee of
a school employer, a dependent of such an employee, a retiree, or other person,
who is eligible for health insurance coverage under the school employer's plan.
Journal of the House - 52nd Day - Tuesday, May 12,
2009 - Top of Page 5631
(c) "School Employee Insurance Committee"
means the committee created in subdivision 14.
(d) "School employer" means a school
district as defined in section 120A.05, service cooperative as defined in
section 123A.21, intermediate district as defined in section 136D.01,
Cooperative Center for Vocational Education as defined in section 123A.22,
regional management information center as defined in section 123A.23, or an
education unit organized under a joint powers agreement under section 471.59.
Sec. 5.�
Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:
Subd. 12.� School
employee insurance program.� The
commissioner shall develop and administer within the public employees insurance
program a separately rated and administered program for eligible employees of
school employers, to be called the school employee insurance program.� The initial offerings shall be the PEIP Advantage,
Advantage Value, and Advantage HSA plans offered by the public employee
insurance program.� Health coverage
offered through the school employee insurance program shall be made available
beginning January 1, 2011.
Sec. 6.�
Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:
Subd. 13.� Enrollment;
school employee insurance program.�
(a) A school employer that provides health coverage to eligible
employees or contributes money to pay for all or part of the cost of health
coverage for eligible employees, must purchase such coverage through the school
employee insurance program under subdivision 12.� School employers described in paragraph (b)
may opt out as described in paragraphs (b) to (e).
(b) Each exclusive representative of employees of a
school employer which, on January 1, 2010, was individually self-insured or
self-insured as a group shall determine whether the employees it represents
will participate in the school employee insurance program, in the same manner
described in subdivision 5, paragraph (b).�
Paragraphs (c), (d), and (e) below apply only to school employees of the
school employers described in this paragraph.
(c) School employees not represented by an exclusive
representative may enter the school employee insurance program in the same
manner described in subdivision 5, paragraph (c).
(d) School employees who do not enter the program upon
first becoming eligible for participation are ineligible to participate for
four years and must be pooled and rated separately from the other enrollees in
the school employee insurance program for the first four years after entering
the program.� This paragraph does not
apply to a school employee upon later becoming a member of a school employee
group that has not declined participation.
(e) The decision of an exclusive representative of
school employees or, in the case of unorganized employees, the decision of a
school district, to enter into the school employee insurance program is
irrevocable and applies to all future years.
(f) Health coverage provided under the school employee
insurance program to a retired employee of a school district, or to a dependent
of the retired employee, must not be reduced as compared to the coverage to
which the retired employee or dependent was entitled prior to enrollment in the
school employee insurance program.
Sec. 7.�
Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:
Subd. 14.� School
Employee Insurance Committee.� (a)
Notwithstanding any other provision of law, all plan design decisions,
including all pilot or demonstration programs in which school employees
participate, must first be developed by the School Employee Insurance Committee
in consultation with the commissioner or the commissioner's designee and other
consultants as the committee sees fit.�
This paragraph does not apply to the initial offerings specified in
subdivision 12.
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2009 - Top of Page 5632
(b) The committee must be composed of 14 members who
represent school district employees and employers in equal number.� The employee representatives shall be
appointed as follows:� four shall be
appointed by Education Minnesota, one shall be appointed by the Service
Employees International Union, one shall be appointed by the American
Federation of State, County, and Municipal Employees, and one shall be
appointed by the Minnesota School Employees Association.� The seven school employer representatives who
serve on the School Employee Insurance Committee must be appointed by the
Minnesota School Boards Association.�
Members of the committee shall be appointed no later than August 1,
2009, and shall serve at the will of the appointing organization.
(c) The School Employee Insurance Committee members
are eligible for compensation and expense reimbursement under section 15.0575,
subdivision 3.� In addition, the actual
salary lost by a committee member or cost charged by an employer of a committee
member for time missed while performing the duties of a committee member must
be reimbursed to the committee member.
Sec. 8.�
Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:
Subd. 15.� Reinsurance.� The commissioner may, on behalf of the
program, participate in an insured or self-insured reinsurance pool.
Sec. 9.�
Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:
Subd. 16.� Nonidentifiable
aggregate claims data from past coverage.� Upon request by the commissioner, entities
that are providing or have provided coverage to eligible employees of school
employers within two years before the effective date of this section, shall
provide to the commissioner at no charge nonidentifiable aggregate claims data
for that coverage.� The information must
include data relating to employee group benefit sets, demographics, and claims
experience.� Notwithstanding section
13.203, Minnesota service cooperatives must comply with this subdivision.
Sec. 10.�
Minnesota Statutes 2008, section 62E.02, subdivision 23, is amended to
read:
Subd. 23.� Contributing member.� "Contributing member" means those
companies regulated under chapter 62A and offering, selling, issuing, or
renewing policies or contracts of accident and health insurance; health
maintenance organizations regulated under chapter 62D; nonprofit health service
plan corporations regulated under chapter 62C; community integrated service
networks regulated under chapter 62N; fraternal benefit societies regulated
under chapter 64B; the Minnesota employees insurance program established in
section 43A.317, effective July 1, 1993; and joint self-insurance plans
regulated under chapter 62H; and the school employee insurance program
created under section 43A.316.� For
the purposes of determining liability of contributing members pursuant to
section 62E.11 payments received from or on behalf of Minnesota residents for
coverage by a health maintenance organization oder, a community
integrated service network, or the school employee insurance program
shall be considered to be accident and health insurance premiums.�
Sec. 11.�
Minnesota Statutes 2008, section 62E.10, subdivision 1, is amended to
read:
Subdivision 1.� Creation and membership; tax
exemption.� (a) There is
established a Comprehensive Health Association to promote the public health and
welfare of the state of Minnesota with membership consisting of all insurers;
self-insurers; fraternals; joint self-insurance plans regulated under chapter
62H; the Minnesota employees insurance program established in section 43A.317,
effective July 1, 1993; the school employee insurance program created under
section 43A.316, subdivision 12; health maintenance organizations; and
community integrated service networks licensed or authorized to do business in
this state.
(b) The
Comprehensive Health Association is exempt from the taxes imposed under chapter
297I and any other laws of this state and all property owned by the association
is exempt from taxation.�
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2009 - Top of Page 5633
Sec. 12.�
Minnesota Statutes 2008, section 62E.11, subdivision 5, is amended to
read:
Subd. 5.� Allocation of losses.� (a) Each contributing member of the
association shall share the losses due to claims expenses of the comprehensive
health insurance plan for plans issued or approved for issuance by the
association, and shall share in the operating and administrative expenses
incurred or estimated to be incurred by the association incident to the conduct
of its affairs.� Claims expenses of the
state plan which exceed the premium payments allocated to the payment of
benefits shall be the liability of the contributing members.� Contributing members shall share in the
claims expense of the state plan and operating and administrative expenses of
the association in an amount equal to the ratio of the contributing member's
total accident and health insurance premium, received from or on behalf of
Minnesota residents as divided by the total accident and health insurance
premium, received by all contributing members from or on behalf of Minnesota
residents, as determined by the commissioner.�
Payments made by the state to a contributing member for medical
assistance, MinnesotaCare, or general assistance medical care services according
to chapters 256, 256B, and 256D shall be excluded when determining a
contributing member's total premium.
(b) In making the allocation of losses provided in
paragraph (a) in each future year, the association's assessment against the
school employee insurance program must be based on premiums received by the
school employee insurance program in that future year from the school employers
that, on May 1, 2009, were receiving health care coverage from a contributing
member of the association.� The association
shall assess the premiums paid in each future year by those employers at the
same rate as premiums paid to other members of the association.� For purposes of this calculation, premiums of
the program used must be net of rate credits and retroactive rate refunds on
the same basis as the premiums of other association members.
Sec. 13.�
Minnesota Statutes 2008, section 297I.05, subdivision 5, is amended to
read:
Subd. 5.� Health maintenance organizations, nonprofit
health service plan corporations, and community integrated service
networks, and the school employee insurance program.� (a) A tax is imposed on health maintenance
organizations, community integrated service networks, and nonprofit health care
service plan corporations.� The rate of
tax is equal to one percent of gross premiums less return premiums on all
direct business received by the organization, network, or corporation or its
agents in Minnesota, in cash or otherwise, in the calendar year.
(b) A tax is imposed on the school employee insurance
program created under section 43A.316, subdivision 12.� The rate of tax imposed for each year shall
be the rate specified in paragraph (a) and shall be assessed upon gross
premiums less return premiums received by the school employee insurance program
in that calendar year from school employers that, on May 1, 2009, were
receiving health care coverage from an entity that is required to pay the tax
under paragraph (a).� The commissioner
shall assess the premiums paid in each year by those employers at the same rate
as premiums paid by entities taxed under paragraph (a).
(c) The
commissioner shall deposit all revenues, including penalties and interest,
collected under this chapter from health maintenance organizations, community
integrated service networks, and nonprofit health service plan
corporations, and the school employee insurance program in the health
care access fund.� Refunds of
overpayments of tax imposed by this subdivision must be paid from the health
care access fund.� There is annually appropriated
from the health care access fund to the commissioner the amount necessary to
make any refunds of the tax imposed under this subdivision.
Sec. 14.�
Minnesota Statutes 2008, section 297I.15, subdivision 3, is amended to
read:
Subd. 3.� Public employees insurance program.� Premiums paid to the public employees
insurance program under section 43A.316 are exempt from the taxes imposed under
this chapter, except for premiums paid to the school employee insurance
program as provided in section 297I.05, subdivision 5, paragraph (b).
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2009 - Top of Page 5634
Sec. 15.� APPROPRIATION.�
(a) $425,000 is appropriated from the insurance trust
fund under Minnesota Statutes, section 43A.316, subdivision 9, to the
commissioner of Minnesota Management and Budget for fiscal year 2010 and
$541,000 for fiscal year 2011 for the administrative responsibilities created
in this act.
(b) The commissioner of management and budget shall
impose an enrollment fee upon the premium charged for the first three months of
coverage under the school employee insurance program created in this act in the
amount of $106,000 to cover the costs incurred by the commissioner under
paragraph (a).� The commissioner shall
deposit the enrollment fees in the insurance trust fund.
Sec. 16.� EFFECTIVE DATE.�
Sections 1 to 15 are effective for coverage to begin
January 1, 2011."
Delete the title and insert:
"A bill for an act relating to insurance;
requiring school districts to obtain employee health coverage through the
public employees insurance program; appropriating money; amending Minnesota
Statutes 2008, sections 43A.316, subdivisions 9, 10, by adding subdivisions;
62E.02, subdivision 23; 62E.10, subdivision 1; 62E.11, subdivision 5; 297I.05,
subdivision 5; 297I.15, subdivision 3."
With the recommendation that when so amended the bill
pass and be re-referred to the Committee on Taxes.
����� The report
was adopted.
Faust from the Committee on Ways and Means to which
was referred:
S. F. No. 1012, A bill for an act relating to state
government; appropriating money for environment and natural resources.
Reported the same back with the recommendation that
the first unofficial engrossment pass.
����� The report
was adopted.
Carlson from the Committee on Finance to which was
referred:
S. F. No. 1331, A bill for an act relating to
elections; moving the state primary from September to June and making
conforming changes; updating certain ballot and voting system requirements;
changing certain election administration provisions; authorizing early voting;
expanding requirements and authorizations for postsecondary institutions to
report resident student information to the secretary of state for voter
registration purposes; changing certain absentee ballot requirements and
provisions; requiring a special election for certain vacancies in nomination;
changing the special election requirements for vacancies in Congressional
offices; requiring an affidavit of candidacy to state the candidate's residence
address and telephone number; changing municipal precinct and ward boundary
requirements for certain cities; imposing additional requirements on polling
place challengers; changing certain caucus and campaign provisions; amending
Minnesota Statutes 2008, sections 10A.31, subdivision 6; 10A.321; 10A.322,
subdivision 1; 10A.323; 103C.305, subdivisions 1, 3; 135A.17, subdivision 2;
201.016, subdivisions 1a, 2; 201.022, subdivision 1; 201.056; 201.061,
subdivisions 1, 3; 201.071, subdivision 1; 201.091, by
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2009 - Top of Page 5635