Bill Text: MN HF1987 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Teachers Retirement Association; post-retirement adjustment initial eligibility procedure revised, Teachers Retirement Association aid provisions recodified, new Teachers Retirement Association contribution and aid payment deficiency recovery procedures created, federal code compliance provisions revised, and administrative changes made.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-30 - Introduction and first reading, referred to Government Operations and Elections [HF1987 Detail]
Download: Minnesota-2011-HF1987-Introduced.html
1.2relating to retirement; Teachers Retirement Association and other plans; revising
1.3Teachers Retirement Association post-retirement adjustment initial eligibility
1.4procedure; recodifying Teachers Retirement Association aid provisions; creating
1.5new Teachers Retirement Association contribution and aid payment deficiency
1.6recovery procedures; revising federal code compliance provisions applicable
1.7to all plans; making other changes of an administrative nature; amending
1.8Minnesota Statutes 2010, sections 126C.41, subdivision 3; 352.91, subdivision
1.93d; 354.51, subdivision 5; 354A.12, subdivision 3c; 356.415, subdivision 1d;
1.10356.611, subdivisions 3, 3a, 4, by adding a subdivision; 423A.02, subdivision 3;
1.11Minnesota Statutes 2011 Supplement, section 356.215, subdivision 8; proposing
1.12coding for new law in Minnesota Statutes, chapter 354; repealing Minnesota
1.13Statutes 2010, sections 128D.18; 354A.12, subdivision 3b.
1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.17 Section 1. Minnesota Statutes 2010, section 352.91, subdivision 3d, is amended to read:
1.18 Subd. 3d. Other correctional personnel. (a) "Covered correctional service" means
1.19service by a state employee in one of the employment positions at a correctional facility or
1.20at the Minnesota Security Hospital specified in paragraph (b) if at least 75 percent of the
1.21employee's working time is spent in direct contact with inmates or patients and the fact of
1.22this direct contact is certified to the executive director by the appropriate commissioner.
1.23 (b) The employment positions are:
1.24 (1) automotive mechanic;
1.25(2) baker;
1.26 (3) central services administrative specialist, intermediate;
1.27 (4) central services administrative specialist, principal;
2.1 (5) chaplain;
2.2 (6) chief cook;
2.3 (7) cook;
2.4 (8) cook coordinator;
2.5 (9)corrections clinical program therapist 1;
2.6 (10)corrections clinical program therapist 2;
2.7 (11)corrections clinical program therapist 3;
2.8 (12)corrections clinical program therapist 4;
2.9 (13) corrections inmate program coordinator;
2.10 (14) corrections transitions program coordinator;
2.11 (15) corrections security caseworker;
2.12 (16) corrections security caseworker career;
2.13 (17) corrections teaching assistant;
2.14 (18) delivery van driver;
2.15 (19) dentist;
2.16 (20) electrician supervisor;
2.17 (21) general maintenance worker lead;
2.18 (22) general repair worker;
2.19 (23) library/information research services specialist;
2.20 (24) library/information research services specialist senior;
2.21 (25) library technician;
2.22 (26) painter lead;
2.23 (27) plant maintenance engineer lead;
2.24 (28) plumber supervisor;
2.25 (29) psychologist 1;
2.26 (30) psychologist 3;
2.27 (31) recreation therapist;
2.28 (32) recreation therapist coordinator;
2.29 (33) recreation program assistant;
2.30 (34) recreation therapist senior;
2.31 (35) sports medicine specialist;
2.32 (36) work therapy assistant;
2.33 (37) work therapy program coordinator; and
2.34 (38) work therapy technician.
2.35EFFECTIVE DATE.This section is effective the day following final enactment.
3.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 356.215, subdivision 8, is
3.2amended to read:
3.3 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
3.4the applicable following preretirement interest assumption and the applicable following
3.5postretirement interest assumption:
3.28 (b) Before July 1, 2010, the actuarial valuation must use the applicable following
3.29single rate future salary increase assumption, the applicable following modified single
3.30rate future salary increase assumption, or the applicable following graded rate future
3.31salary increase assumption:
3.32 (1) single rate future salary increase assumption
3.40 (2) age-related select and ultimate future salary increase assumption or graded rate
3.41future salary increase assumption
4.7For plans other than the Duluth teachers
4.8retirement plan, the select calculation
4.9is: during the designated select period, a
4.10designated percentage rate is multiplied by
4.11the result of the designated integer minus T,
4.12where T is the number of completed years of
4.13service, and is added to the applicable future
4.14salary increase assumption.The designated
4.15select period is five years and the designated
4.16integer is five for the general state employees
4.17retirement plan. The designated select period
4.18is ten years and the designated integer is ten
4.19for allother retirement plans covered by
4.20this clause. The designated percentage rate
4.21is: (1) 0.2 percent for the correctional state
4.22employees retirement plan, the State Patrol
4.23retirement plan, and the local government
4.24correctional service retirement plan; and (2)
4.250.6 percent for the general state employees
4.26retirement plan; and (3) 0.3 percent for the
4.27teachers retirement plan, the Duluth Teachers
4.28Retirement Fund Association, and the St.
4.29Paul Teachers Retirement Fund Association.
4.30The select calculation for the Duluth Teachers
4.31Retirement Fund Association is 8.00 percent
4.32per year for service years one through seven,
4.337.25 percent per year for service years seven
4.34and eight, and 6.50 percent per year for
4.35service years eight and nine.
4.36 The ultimate future salary increase assumption is:
6.14(3) service-related ultimate future salary increase assumption
7.10 (c) Before July 2, 2010, the actuarial valuation must use the applicable following
7.11payroll growth assumption for calculating the amortization requirement for the unfunded
7.12actuarial accrued liability where the amortization retirement is calculated as a level
7.13percentage of an increasing payroll:
7.28 (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
7.29apply, unless a different salary assumption or a different payroll increase assumption:
7.30 (1) has been proposed by the governing board of the applicable retirement plan;
7.31 (2) is accompanied by the concurring recommendation of the actuary retained under
7.32section356.214, subdivision 1 , if applicable, or by the approved actuary preparing the
7.33most recent actuarial valuation report if section356.214 does not apply; and
7.34 (3) has been approved or deemed approved under subdivision 18.
7.35EFFECTIVE DATE.This section is effective the day following final enactment.
7.36 Sec. 3. Minnesota Statutes 2010, section 356.415, subdivision 1d, is amended to read:
7.37 Subd. 1d. Teachers Retirement Association annual postretirement adjustments.
7.38(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
8.1Retirement Association are entitled to a postretirement adjustment annually on January
8.21, as follows:
8.3(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
8.4(2) for January 1, 2013, and each successive January 1 until funding stability is
8.5restored, a postretirement increase of two percent must be applied each year, effective
8.6on January 1, to the monthly annuity or benefit amount of each annuitant or benefit
8.7recipient who has been receiving an annuity or a benefit for at least 18 full months prior
8.8to the January 1 increase;
8.9(3) for January 1, 2013, and each successive January 1 until funding stability is
8.10restored, for each annuitant or benefit recipient who has been receiving an annuity or a
8.11benefit for at least six full months before the January 1 increase, an annual postretirement
8.12increase of 1/12 of two percent for each month the person has been receiving an annuity or
8.13benefit must be applied, effective January 1,following the year in for which the person has
8.14been retired for at least six months but less than12 18 months;
8.15(4) for each January 1 following the restoration of funding stability, a postretirement
8.16increase of 2.5 percent must be applied each year, effective January 1, to the monthly
8.17annuity or benefit amount of each annuitant or benefit recipient who has been receiving an
8.18annuity or a benefit for at least 18 full months prior to the January 1 increase; and
8.19(5) for each January 1 following the restoration of funding stability, for each
8.20annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six
8.21full months before the January 1 increase, an annual postretirement increase of 1/12 of
8.222.5 percent for each month the person has been receiving an annuity or benefit must be
8.23applied, effective January 1,following the year in for which the person has been retired
8.24for at least six months but less than12 18 months.
8.25(b) Funding stability is restored when the market value of assets of the Teachers
8.26Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of
8.27the Teachers Retirement Association in the most recent prior actuarial valuation prepared
8.28under section356.215 and the standards for actuarial work by the approved actuary
8.29retained by the Teachers Retirement Association under section356.214 .
8.30(c) An increase in annuity or benefit payments under this section must be made
8.31automatically unless written notice is filed by the annuitant or benefit recipient with the
8.32executive director of the Teachers Retirement Association requesting that the increase
8.33not be made.
8.34(d) The retirement annuity payable to a person who retires before becoming eligible
8.35for Social Security benefits and who has elected the optional payment as provided in
8.36section354.35 must be treated as the sum of a period-certain retirement annuity and a life
9.1retirement annuity for the purposes of any postretirement adjustment. The period-certain
9.2retirement annuity plus the life retirement annuity must be the annuity amount payable
9.3until age 62, 65, or normal retirement age, as selected by the member at retirement, for an
9.4annuity amount payable under section354.35 . A postretirement adjustment granted on
9.5the period-certain retirement annuity must terminate when the period-certain retirement
9.6annuity terminates.
9.7EFFECTIVE DATE.This section is effective the day following final enactment.
9.8 Sec. 4. Minnesota Statutes 2010, section 356.611, subdivision 3, is amended to read:
9.9 Subd. 3. Maximum benefit limitations.A member's An annuitant's annual benefit,
9.10if necessary, must be reduced to the extent required by section 415(b) of the federal
9.11Internal Revenue Code, as adjusted by the United States secretary of the treasury under
9.12section 415(d) of the federal Internal Revenue Code for any applicable increases in the
9.13cost of living, including applicable increases in the cost of living after the member's
9.14termination of employment.For purposes of section 415 of the federal Internal Revenue
9.15Code, the limitation year of a pension plan covered by this section must be the fiscal year
9.16or calendar year of that plan, whichever is applicable. If an annuitant participated in more
9.17than one pension plan maintained by the same employer, the benefits under each plan must
9.18be reduced proportionately, if necessary, to satisfy the applicable limitation.
9.19EFFECTIVE DATE.This section is effective the day following final enactment.
9.20 Sec. 5. Minnesota Statutes 2010, section 356.611, subdivision 3a, is amended to read:
9.21 Subd. 3a. Maximum annual addition limitation, defined contribution plans. The
9.22annual additions on behalf of a member tothe a defined contribution plan established
9.23under chapter 352D or 353D for any limitation year beginning after December 31, 2001,
9.24shall not exceed thelesser of 100 percent of the member's compensation, as defined for
9.25purposes of applicable limitation on annual additions under section 415(c) of the federal
9.26Internal Revenue Code; or $40,000, as adjusted by the United States secretary of the
9.27treasury under section 415(d) of the federal Internal Revenue Code.
9.28EFFECTIVE DATE.This section is effective the day following final enactment.
9.29 Sec. 6. Minnesota Statutes 2010, section 356.611, subdivision 4, is amended to read:
9.30 Subd. 4. Compensation.(a) For purposes of this section, compensation means a
9.31member's compensation actually paid or made available for any limitation year including
9.32all items of remuneration described in federal treasury regulation section1.415 (c)-2(b)
10.1and excluding all items of remuneration described in federal treasury regulation section
10.21.415
(c)-2(c). Compensation for pension plan purposes for any limitation year shall not
10.3exceed the applicable federal compensation limit described in subdivision 2.
10.4(b) Compensation for any period includes:
10.5(1) any elective deferral as defined in section 402(g)(3) of the federal Internal
10.6Revenue Code;
10.7(2) any elective amounts that are not includable in a member's gross income by
10.8reason of sections 125 or 457 of the federal Internal Revenue Code; and
10.9(3) any elective amounts that are not includable in a member's gross income by
10.10reason of section 132(f)(4) of the federal Internal Revenue Code.
10.11EFFECTIVE DATE.This section is effective the day following final enactment.
10.12 Sec. 7. Minnesota Statutes 2010, section 356.611, is amended by adding a subdivision
10.13to read:
10.14 Subd. 5. Limitation year. Unless otherwise specifically provided, for purposes of
10.15section 415 of the federal Internal Revenue Code, the limitation year of a pension plan
10.16covered by this section is the calendar year or fiscal year, whichever is applicable.
10.17EFFECTIVE DATE.This section is effective the day following final enactment.
10.21 Section 1. Minnesota Statutes 2010, section 126C.41, subdivision 3, is amended to read:
10.22 Subd. 3. Retirement levies. (a) In 1991 and each year thereafter, a district to which
10.23this subdivision applies may levy an additional amount required for contributions to
10.24the general employees retirement plan of the Public Employees Retirement Association
10.25as the successor of the Minneapolis Employees Retirement Fund as a result of the
10.26maximum dollar amount limitation on state contributions to that plan imposed under
10.27section353.505 . The additional levy must not exceed the most recent amount certified by
10.28the executive director of the Public Employees Retirement Association as the district's
10.29share of the contribution requirement in excess of the maximum state contribution under
10.30section353.505 .
10.31(b) For taxes payable in 1994 and thereafter, Special School District No. 1,
10.32Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase
11.1in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5,
11.2section 1.
11.3(c) If the employer retirement fund contributions under section354A.12, subdivision
11.42a , are increased for fiscal year 1994 or later fiscal years, Special School District No. 1,
11.5Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable
11.61994 or later an amount equal to the amount derived by applying the net increase in
11.7the employer retirement fund contribution rate of the respective teacher retirement fund
11.8association between fiscal year 1993 and the fiscal year beginning in the year after the
11.9levy is certified to the total covered payroll of the applicable teacher retirement fund
11.10association. If an applicable school district levies under this paragraph, they may not
11.11levy under paragraph (b).
11.12(d) In addition to the levy authorized under paragraph (c), Special School District
11.13No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the
11.14contributions under section423A.02 354.435, subdivision 3 2
11.15payable 1994 or later an amount equal to the state aid contribution under section354A.12
11.16354.435, subdivision3b 1
11.17payable in 1997 or later an amount equal to the supplemental contributions under section
11.18423A.02, subdivision 3
.
11.19EFFECTIVE DATE.This section is effective the day following final enactment.
11.20 Sec. 2. [354.435] ADDITIONAL CONTRIBUTIONS BY SPECIAL SCHOOL
11.21DISTRICT NO. 1 AND CITY OF MINNEAPOLIS.
11.22 Subdivision 1. Special direct state matching aid. (a) Special School District No. 1,
11.23Minneapolis, and the city of Minneapolis must make additional employer contributions
11.24to the Teachers Retirement Association in the amounts specified in paragraph (b). These
11.25contributions can be made from any available source. If made in whole or in part by a
11.26levy, the levy may be classified as that of a special taxing district for purposes of sections
11.27275.065 and 276.04, and for all other property tax purposes.
11.28(b) Each fiscal year $1,250,000 must be contributed by Special School District
11.29No. 1, Minneapolis, and $1,250,000 must be contributed by the city of Minneapolis to
11.30the Teachers Retirement Association and the state shall match this total by paying to
11.31the Teachers Retirement Association $2,500,000. The superintendent of Special School
11.32District No. 1, Minneapolis, the mayor of the city of Minneapolis, and the executive
11.33director of the Teachers Retirement Association shall jointly certify to the commissioner
11.34of management and budget the total amount that has been contributed by Special School
11.35District No. 1, Minneapolis, and by the city of Minneapolis to the Teachers Retirement
12.1Association. Any certification to the commissioner of management and budget must
12.2be made quarterly. If the certifications for a fiscal year exceed the maximum annual
12.3direct state matching aid amount in any quarter, the amount of direct state matching aid
12.4payable to the Teachers Retirement Association must be limited to the balance of the
12.5maximum annual direct state matching aid amount available. The amount required under
12.6this paragraph, subject to the maximum direct state matching aid amount, is appropriated
12.7annually to the commissioner of management and budget.
12.8(c) The commissioner of management and budget may prescribe the form of the
12.9certifications required under paragraph (b).
12.10 Subd. 2. Additional contributions. In addition to any other required contributions,
12.11on or before June 30 each fiscal year, Special School District No. 1, Minneapolis, and the
12.12city of Minneapolis must each make an additional contribution to the Teachers Retirement
12.13Association of $1,000,000.
12.14 Subd. 3. Procedure for recovery of deficient or delinquent amounts. If Special
12.15School District No. 1, Minneapolis, or the city of Minneapolis fails to pay the full amount
12.16required under subdivision 1, paragraph (b), or subdivision 2, in a timely manner, the
12.17executive director is authorized to use section 354.512, or any other process in law to
12.18ensure full payment is obtained.
12.19 Subd. 4. Expiration; repealer. This section expires and is repealed effective the
12.20first day of the fiscal year next following the fiscal year in which the Teachers Retirement
12.21Association has no unfunded actuarial accrued liability as determined by the actuarial
12.22valuation prepared under section 356.215, by the approved actuary retained under section
12.23356.214.
12.24EFFECTIVE DATE.This section is effective the day following final enactment.
12.25 Sec. 3. Minnesota Statutes 2010, section 354.51, subdivision 5, is amended to read:
12.26 Subd. 5. Payment of shortages. (a) Except as provided in paragraph (b), in the
12.27event that full required member contributions are not deducted from the salary of a
12.28teacher, payment must be made as follows:
12.29(1) Payment of shortages in member deductions on salary earned after June 30,
12.301957, and before July 1, 1981, may be made any time before retirement. Payment must
12.31include interest at an annual rate of 8.5 percent compounded annually from the end of the
12.32fiscal year in which the shortage occurred to the end of the month in which payment is
12.33made and the interest must be credited to the fund. If payment of a shortage in deductions
12.34is not made, the formula service credit of the member must be prorated under section
12.35354.05, subdivision 25
, clause (3).
13.1(2) Payment of shortages in member deductions on salary earned after June 30,
13.21981, are the sole obligation of the employing unit and are payable by the employing unit
13.3upon notification by the executive director of the shortage with interest at an annual rate of
13.48.5 percent compounded annually from the end of the fiscal year in which the shortage
13.5occurred to the end of the month in which payment is made and the interest must be
13.6credited to the fund. Effective July 1, 1986, the employing unit shall also pay the employer
13.7contributions as specified in section354.42, subdivisions 3 and 5 for the shortages. If the
13.8shortage payment is not paid by the employing unit within 60 days of notification, the
13.9executive directorshall may certify the amount of the shortage payment to the applicable
13.10county auditor, who shall spread a levy in the amount of the shortage payment over the
13.11taxable property of the taxing district of the employing unit if the employing unit is
13.12supported by property taxes, or to the commissioner of management and budget, who shall
13.13deduct the amount from any state aid or appropriation amount applicable to the employing
13.14unit if the employing unit is not supported by property taxes.
13.15(3) Payment may not be made for shortages in member deductions on salary earned
13.16before July 1, 1957, for shortages in member deductions on salary paid or payable under
13.17paragraph (b), or for shortages in member deductions for persons employed by the
13.18Minnesota State Colleges and Universities system in a faculty position or in an eligible
13.19unclassified administrative position and whose employment was less than 25 percent
13.20of a full academic year, exclusive of the summer session, for the applicable institution
13.21that exceeds the most recent 36 months.
13.22(b) For a person who is employed by the Minnesota State Colleges and Universities
13.23system in a faculty position or in an eligible unclassified administrative position and
13.24whose employment was less than 25 percent of a full academic year, exclusive of the
13.25summer session, for the applicable institution, upon the person's election under section
13.26354B.21
of retirement coverage under this chapter, the shortage in member deductions
13.27on the salary for employment by the Minnesota State Colleges and Universities system
13.28institution of less than 25 percent of a full academic year, exclusive of the summer session,
13.29for the applicable institution for the most recent 36 months and the associated employer
13.30contributions must be paid by the Minnesota State Colleges and Universities system
13.31institution, plus annual compound interest at the rate of 8.5 percent from the end of the
13.32fiscal year in which the shortage occurred to the end of the month in which the Teachers
13.33Retirement Association coverage election is made.If the shortage payment is not made by
13.34the institution within 60 days of notification, the executive director shall certify the amount
13.35of the shortage payment to the commissioner of management and budget, who shall deduct
13.36the amount from any state appropriation to the system. An individual electing coverage
14.1under this paragraph shall repay the amount of the shortage in member deductions, plus
14.2interest, through deduction from salary or compensation payments within the first year of
14.3employment after the election under section354B.21 , subject to the limitations in section
14.416D.16
. The Minnesota State Colleges and Universities system may use any means
14.5available to recover amounts which were not recovered through deductions from salary or
14.6compensation payments. No payment of the shortage in member deductions under this
14.7paragraph may be made for a period longer than the most recent 36 months.
14.8EFFECTIVE DATE.This section is effective the day following final enactment.
14.9 Sec. 4. [354.512] RECOVERY OF DEFICIENCIES.
14.10In addition to any other remedies permitted under law, if an employing unit or
14.11other entity required by law to make any form of payment to the Teachers Retirement
14.12Association fails to make full payment within 60 days of notification, the executive
14.13director is authorized to certify the amount of deficiency to the commissioner of
14.14management and budget, who shall deduct the amount from any state aid or appropriation
14.15applicable to the employing unit or entity, and transmit the withheld aid or appropriation
14.16to the executive director for deposit in the fund.
14.17EFFECTIVE DATE.This section is effective the day following final enactment.
14.18 Sec. 5. Minnesota Statutes 2010, section 354A.12, subdivision 3c, is amended to read:
14.19 Subd. 3c. Termination of supplemental contributions and direct matching and
14.20state aid.The supplemental contributions payable to the Minneapolis Teachers Retirement
14.21Fund Association by Special School District No. 1 and the city of Minneapolis under
14.22section
423A.02, subdivision 3, must be paid to the Teachers Retirement Association and
14.23must continue until the current assets of the fund equal or exceed the actuarial accrued
14.24liability of the fund as determined in the most recent actuarial report for the fund by
14.25the actuary retained under section
356.214, or 2037, whichever occurs earlier. The
14.26supplemental contributions payable to the St. Paul Teachers Retirement Fund Association
14.27by Independent School District No. 625 under section423A.02, subdivision 3 , or the
14.28direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund Association
14.29must continue until the current assets of the fund equal or exceed the actuarial accrued
14.30liability of the fund as determined in the most recent actuarial report for the fund by the
14.31actuary retained under section356.214 or until 2037, whichever occurs earlier.
14.32EFFECTIVE DATE.This section is effective the day following final enactment.
15.1 Sec. 6. Minnesota Statutes 2010, section 423A.02, subdivision 3, is amended to read:
15.2 Subd. 3. Reallocation of amortization or supplementary amortization state
15.3aid. (a) Seventy percent of the difference between $5,720,000 and the current year
15.4amortization aid and supplemental amortization aid distributed under subdivisions 1
15.5and 1a that is not distributed for any reason to a municipality for use by a local police
15.6or salaried fire relief association must be distributed by the commissioner of revenue
15.7according to this paragraph. The commissioner shall distribute 50 percent of the amounts
15.8derived under this paragraph to the Teachers Retirement Association, ten percent to the
15.9Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers
15.10Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the
15.11respective funds. These payments shall be made on or before June 30 each fiscal year. If
15.12the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility
15.13for this aid ceases. Amounts remaining in the undistributed balance account at the end of
15.14the biennium if aid eligibility ceases cancel to the general fund.
15.15 (b) In order to receive amortization and supplementary amortization aid under
15.16paragraph (a), prior to June 30 Independent School District No. 625, St. Paul, must make
15.17contributions an additional contribution of $800,000 each year to the St. Paul Teachers
15.18Retirement Fund Association in accordance with the following schedule:.
15.26 (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must
15.27each make contributions to the Teachers Retirement Association in accordance with the
15.28following schedule:
16.1(d) (c) Thirty percent of the difference between $5,720,000 and the current year
16.2amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not
16.3distributed for any reason to a municipality for use by a local police or salaried firefighter
16.4relief association must be distributed under section69.021, subdivision 7 , paragraph (d),
16.5as additional funding to support a minimum fire state aid amount for volunteer firefighter
16.6relief associations.
16.7EFFECTIVE DATE.This section is effective the day following final enactment.
16.8 Sec. 7. RECOVERY OF PRIOR DEFICIENCIES.
16.9 Subdivision 1. Authorization. Due to a determination by the Office of the
16.10Legislative Auditor, Financial Audit Division, that the city of Minneapolis has failed to
16.11pay, beginning in 1998, the full amounts required under Minnesota Statutes 2010, section
16.12354A.12, subdivision 3b, and Minnesota Statutes 2010, section 423A.02, subdivision 3,
16.13and earlier versions of these provisions, to the Minneapolis Teachers Retirement Fund
16.14Association or to its successor organization, the Teachers Retirement Association, the
16.15executive director of the Teachers Retirement Association is authorized to obtain payment
16.16of the deficiency under procedures specified in this section.
16.17 Subd. 2. Deficient amount. The amount of the deficiency is the shortage amount as
16.18determined by the Office of the Legislative Auditor, $727,070, plus additional shortage, if
16.19any, by the city of Minneapolis that has occurred since the auditor's determination.
16.20 Subd. 3. Recovery procedure. The executive director of the Teachers Retirement
16.21Association is authorized to certify the deficiency amount to the commissioner of
16.22management and budget, who shall deduct the amount of the deficiency from any state
16.23aid for the city of Minneapolis, and transmit the withheld aid to the executive director for
16.24deposit in the Teachers Retirement Association pension fund.
16.25 Subd. 4. Interest. If interest is not already included in the auditor's determined
16.26amount, the executive director of the Teachers Retirement Association is authorized
16.27to add, to the amount of the deficiency determined under subdivision 2 and certified
16.28under subdivision 3, interest at the preretirement interest rate specified for the Teachers
16.29Retirement Association in Minnesota Statutes, section 356.215, expressed in monthly
16.30terms and compounded annually, from the first of the month following the date each
16.31underpayment occurred until the first of the month following the date that the withheld
16.32aid is transmitted to the Teachers Retirement Association.
16.33 Subd. 5. Expiration. Authority for the executive director of the Teachers
16.34Retirement Association to certify shortages for collection under this section expires two
16.35years from the date of enactment.
17.1EFFECTIVE DATE.This section is effective the day following final enactment.
17.2 Sec. 8. REPEALER.
17.3Minnesota Statutes 2010, sections 128D.18; and 354A.12, subdivision 3b, are
17.4repealed.
17.5EFFECTIVE DATE.This section is effective the day following final enactment.
1.3Teachers Retirement Association post-retirement adjustment initial eligibility
1.4procedure; recodifying Teachers Retirement Association aid provisions; creating
1.5new Teachers Retirement Association contribution and aid payment deficiency
1.6recovery procedures; revising federal code compliance provisions applicable
1.7to all plans; making other changes of an administrative nature; amending
1.8Minnesota Statutes 2010, sections 126C.41, subdivision 3; 352.91, subdivision
1.93d; 354.51, subdivision 5; 354A.12, subdivision 3c; 356.415, subdivision 1d;
1.10356.611, subdivisions 3, 3a, 4, by adding a subdivision; 423A.02, subdivision 3;
1.11Minnesota Statutes 2011 Supplement, section 356.215, subdivision 8; proposing
1.12coding for new law in Minnesota Statutes, chapter 354; repealing Minnesota
1.13Statutes 2010, sections 128D.18; 354A.12, subdivision 3b.
1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.17 Section 1. Minnesota Statutes 2010, section 352.91, subdivision 3d, is amended to read:
1.18 Subd. 3d. Other correctional personnel. (a) "Covered correctional service" means
1.19service by a state employee in one of the employment positions at a correctional facility or
1.20at the Minnesota Security Hospital specified in paragraph (b) if at least 75 percent of the
1.21employee's working time is spent in direct contact with inmates or patients and the fact of
1.22this direct contact is certified to the executive director by the appropriate commissioner.
1.23 (b) The employment positions are:
1.24 (1) automotive mechanic;
1.25(2) baker;
1.26 (3) central services administrative specialist, intermediate;
1.27 (4) central services administrative specialist, principal;
2.1 (5) chaplain;
2.2 (6) chief cook;
2.3 (7) cook;
2.4 (8) cook coordinator;
2.5 (9)
2.6 (10)
2.7 (11)
2.8 (12)
2.9 (13) corrections inmate program coordinator;
2.10 (14) corrections transitions program coordinator;
2.11 (15) corrections security caseworker;
2.12 (16) corrections security caseworker career;
2.13 (17) corrections teaching assistant;
2.14 (18) delivery van driver;
2.15 (19) dentist;
2.16 (20) electrician supervisor;
2.17 (21) general maintenance worker lead;
2.18 (22) general repair worker;
2.19 (23) library/information research services specialist;
2.20 (24) library/information research services specialist senior;
2.21 (25) library technician;
2.22 (26) painter lead;
2.23 (27) plant maintenance engineer lead;
2.24 (28) plumber supervisor;
2.25 (29) psychologist 1;
2.26 (30) psychologist 3;
2.27 (31) recreation therapist;
2.28 (32) recreation therapist coordinator;
2.29 (33) recreation program assistant;
2.30 (34) recreation therapist senior;
2.31 (35) sports medicine specialist;
2.32 (36) work therapy assistant;
2.33 (37) work therapy program coordinator; and
2.34 (38) work therapy technician.
2.35EFFECTIVE DATE.This section is effective the day following final enactment.
3.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 356.215, subdivision 8, is
3.2amended to read:
3.3 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
3.4the applicable following preretirement interest assumption and the applicable following
3.5postretirement interest assumption:
3.28 (b) Before July 1, 2010, the actuarial valuation must use the applicable following
3.29single rate future salary increase assumption, the applicable following modified single
3.30rate future salary increase assumption, or the applicable following graded rate future
3.31salary increase assumption:
3.32 (1) single rate future salary increase assumption
3.40 (2) age-related select and ultimate future salary increase assumption or graded rate
3.41future salary increase assumption
4.7For plans other than the Duluth teachers
4.8retirement plan, the select calculation
4.9is: during the designated select period, a
4.10designated percentage rate is multiplied by
4.11the result of the designated integer minus T,
4.12where T is the number of completed years of
4.13service, and is added to the applicable future
4.14salary increase assumption.
4.15
4.16
4.17
4.18is ten years and the designated integer is ten
4.19for all
4.20this clause. The designated percentage rate
4.21is: (1) 0.2 percent for the correctional state
4.22employees retirement plan, the State Patrol
4.23retirement plan, and the local government
4.24correctional service retirement plan; and (2)
4.25
4.26
4.27
4.28
4.29Paul Teachers Retirement Fund Association.
4.30The select calculation for the Duluth Teachers
4.31Retirement Fund Association is 8.00 percent
4.32per year for service years one through seven,
4.337.25 percent per year for service years seven
4.34and eight, and 6.50 percent per year for
4.35service years eight and nine.
4.36 The ultimate future salary increase assumption is:
6.14(3) service-related ultimate future salary increase assumption
7.10 (c) Before July 2, 2010, the actuarial valuation must use the applicable following
7.11payroll growth assumption for calculating the amortization requirement for the unfunded
7.12actuarial accrued liability where the amortization retirement is calculated as a level
7.13percentage of an increasing payroll:
7.28 (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
7.29apply, unless a different salary assumption or a different payroll increase assumption:
7.30 (1) has been proposed by the governing board of the applicable retirement plan;
7.31 (2) is accompanied by the concurring recommendation of the actuary retained under
7.32section
7.33most recent actuarial valuation report if section
7.34 (3) has been approved or deemed approved under subdivision 18.
7.35EFFECTIVE DATE.This section is effective the day following final enactment.
7.36 Sec. 3. Minnesota Statutes 2010, section 356.415, subdivision 1d, is amended to read:
7.37 Subd. 1d. Teachers Retirement Association annual postretirement adjustments.
7.38(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
8.1Retirement Association are entitled to a postretirement adjustment annually on January
8.21, as follows:
8.3(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
8.4(2) for January 1, 2013, and each successive January 1 until funding stability is
8.5restored, a postretirement increase of two percent must be applied each year, effective
8.6on January 1, to the monthly annuity or benefit amount of each annuitant or benefit
8.7recipient who has been receiving an annuity or a benefit for at least 18 full months prior
8.8to the January 1 increase;
8.9(3) for January 1, 2013, and each successive January 1 until funding stability is
8.10restored, for each annuitant or benefit recipient who has been receiving an annuity or a
8.11benefit for at least six full months before the January 1 increase, an annual postretirement
8.12increase of 1/12 of two percent for each month the person has been receiving an annuity or
8.13benefit must be applied, effective January 1,
8.14been retired for at least six months but less than
8.15(4) for each January 1 following the restoration of funding stability, a postretirement
8.16increase of 2.5 percent must be applied each year, effective January 1, to the monthly
8.17annuity or benefit amount of each annuitant or benefit recipient who has been receiving an
8.18annuity or a benefit for at least 18 full months prior to the January 1 increase; and
8.19(5) for each January 1 following the restoration of funding stability, for each
8.20annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six
8.21full months before the January 1 increase, an annual postretirement increase of 1/12 of
8.222.5 percent for each month the person has been receiving an annuity or benefit must be
8.23applied, effective January 1,
8.24for at least six months but less than
8.25(b) Funding stability is restored when the market value of assets of the Teachers
8.26Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of
8.27the Teachers Retirement Association in the most recent prior actuarial valuation prepared
8.28under section
8.29retained by the Teachers Retirement Association under section
8.30(c) An increase in annuity or benefit payments under this section must be made
8.31automatically unless written notice is filed by the annuitant or benefit recipient with the
8.32executive director of the Teachers Retirement Association requesting that the increase
8.33not be made.
8.34(d) The retirement annuity payable to a person who retires before becoming eligible
8.35for Social Security benefits and who has elected the optional payment as provided in
8.36section
9.1retirement annuity for the purposes of any postretirement adjustment. The period-certain
9.2retirement annuity plus the life retirement annuity must be the annuity amount payable
9.3until age 62, 65, or normal retirement age, as selected by the member at retirement, for an
9.4annuity amount payable under section
9.5the period-certain retirement annuity must terminate when the period-certain retirement
9.6annuity terminates.
9.7EFFECTIVE DATE.This section is effective the day following final enactment.
9.8 Sec. 4. Minnesota Statutes 2010, section 356.611, subdivision 3, is amended to read:
9.9 Subd. 3. Maximum benefit limitations.
9.10if necessary, must be reduced to the extent required by section 415(b) of the federal
9.11Internal Revenue Code, as adjusted by the United States secretary of the treasury under
9.12section 415(d) of the federal Internal Revenue Code for any applicable increases in the
9.13cost of living, including applicable increases in the cost of living after the member's
9.14termination of employment.
9.15
9.16
9.17than one pension plan maintained by the same employer, the benefits under each plan must
9.18be reduced proportionately, if necessary, to satisfy the applicable limitation.
9.19EFFECTIVE DATE.This section is effective the day following final enactment.
9.20 Sec. 5. Minnesota Statutes 2010, section 356.611, subdivision 3a, is amended to read:
9.21 Subd. 3a. Maximum annual addition limitation, defined contribution plans. The
9.22annual additions on behalf of a member to
9.23
9.24shall not exceed the
9.25
9.26Internal Revenue Code
9.27treasury under section 415(d) of the federal Internal Revenue Code.
9.28EFFECTIVE DATE.This section is effective the day following final enactment.
9.29 Sec. 6. Minnesota Statutes 2010, section 356.611, subdivision 4, is amended to read:
9.30 Subd. 4. Compensation.
9.31member's compensation actually paid or made available for any limitation year including
9.32all items of remuneration described in federal treasury regulation section
10.1and excluding all items of remuneration described in federal treasury regulation section
10.3exceed the applicable federal compensation limit described in subdivision 2.
10.4
10.5
10.6
10.7
10.8
10.9
10.10
10.11EFFECTIVE DATE.This section is effective the day following final enactment.
10.12 Sec. 7. Minnesota Statutes 2010, section 356.611, is amended by adding a subdivision
10.13to read:
10.14 Subd. 5. Limitation year. Unless otherwise specifically provided, for purposes of
10.15section 415 of the federal Internal Revenue Code, the limitation year of a pension plan
10.16covered by this section is the calendar year or fiscal year, whichever is applicable.
10.17EFFECTIVE DATE.This section is effective the day following final enactment.
10.21 Section 1. Minnesota Statutes 2010, section 126C.41, subdivision 3, is amended to read:
10.22 Subd. 3. Retirement levies. (a) In 1991 and each year thereafter, a district to which
10.23this subdivision applies may levy an additional amount required for contributions to
10.24the general employees retirement plan of the Public Employees Retirement Association
10.25as the successor of the Minneapolis Employees Retirement Fund as a result of the
10.26maximum dollar amount limitation on state contributions to that plan imposed under
10.27section
10.28the executive director of the Public Employees Retirement Association as the district's
10.29share of the contribution requirement in excess of the maximum state contribution under
10.30section
10.31(b) For taxes payable in 1994 and thereafter, Special School District No. 1,
10.32Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase
11.1in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5,
11.2section 1.
11.3(c) If the employer retirement fund contributions under section
11.42a
11.5Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable
11.61994 or later an amount equal to the amount derived by applying the net increase in
11.7the employer retirement fund contribution rate of the respective teacher retirement fund
11.8association between fiscal year 1993 and the fiscal year beginning in the year after the
11.9levy is certified to the total covered payroll of the applicable teacher retirement fund
11.10association. If an applicable school district levies under this paragraph, they may not
11.11levy under paragraph (b).
11.12(d) In addition to the levy authorized under paragraph (c), Special School District
11.13No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the
11.14contributions under section
11.15payable 1994 or later an amount equal to the state aid contribution under section
11.16354.435, subdivision
11.17payable in 1997 or later an amount equal to the supplemental contributions under section
11.19EFFECTIVE DATE.This section is effective the day following final enactment.
11.20 Sec. 2. [354.435] ADDITIONAL CONTRIBUTIONS BY SPECIAL SCHOOL
11.21DISTRICT NO. 1 AND CITY OF MINNEAPOLIS.
11.22 Subdivision 1. Special direct state matching aid. (a) Special School District No. 1,
11.23Minneapolis, and the city of Minneapolis must make additional employer contributions
11.24to the Teachers Retirement Association in the amounts specified in paragraph (b). These
11.25contributions can be made from any available source. If made in whole or in part by a
11.26levy, the levy may be classified as that of a special taxing district for purposes of sections
11.27275.065 and 276.04, and for all other property tax purposes.
11.28(b) Each fiscal year $1,250,000 must be contributed by Special School District
11.29No. 1, Minneapolis, and $1,250,000 must be contributed by the city of Minneapolis to
11.30the Teachers Retirement Association and the state shall match this total by paying to
11.31the Teachers Retirement Association $2,500,000. The superintendent of Special School
11.32District No. 1, Minneapolis, the mayor of the city of Minneapolis, and the executive
11.33director of the Teachers Retirement Association shall jointly certify to the commissioner
11.34of management and budget the total amount that has been contributed by Special School
11.35District No. 1, Minneapolis, and by the city of Minneapolis to the Teachers Retirement
12.1Association. Any certification to the commissioner of management and budget must
12.2be made quarterly. If the certifications for a fiscal year exceed the maximum annual
12.3direct state matching aid amount in any quarter, the amount of direct state matching aid
12.4payable to the Teachers Retirement Association must be limited to the balance of the
12.5maximum annual direct state matching aid amount available. The amount required under
12.6this paragraph, subject to the maximum direct state matching aid amount, is appropriated
12.7annually to the commissioner of management and budget.
12.8(c) The commissioner of management and budget may prescribe the form of the
12.9certifications required under paragraph (b).
12.10 Subd. 2. Additional contributions. In addition to any other required contributions,
12.11on or before June 30 each fiscal year, Special School District No. 1, Minneapolis, and the
12.12city of Minneapolis must each make an additional contribution to the Teachers Retirement
12.13Association of $1,000,000.
12.14 Subd. 3. Procedure for recovery of deficient or delinquent amounts. If Special
12.15School District No. 1, Minneapolis, or the city of Minneapolis fails to pay the full amount
12.16required under subdivision 1, paragraph (b), or subdivision 2, in a timely manner, the
12.17executive director is authorized to use section 354.512, or any other process in law to
12.18ensure full payment is obtained.
12.19 Subd. 4. Expiration; repealer. This section expires and is repealed effective the
12.20first day of the fiscal year next following the fiscal year in which the Teachers Retirement
12.21Association has no unfunded actuarial accrued liability as determined by the actuarial
12.22valuation prepared under section 356.215, by the approved actuary retained under section
12.23356.214.
12.24EFFECTIVE DATE.This section is effective the day following final enactment.
12.25 Sec. 3. Minnesota Statutes 2010, section 354.51, subdivision 5, is amended to read:
12.26 Subd. 5. Payment of shortages. (a) Except as provided in paragraph (b), in the
12.27event that full required member contributions are not deducted from the salary of a
12.28teacher, payment must be made as follows:
12.29(1) Payment of shortages in member deductions on salary earned after June 30,
12.301957, and before July 1, 1981, may be made any time before retirement. Payment must
12.31include interest at an annual rate of 8.5 percent compounded annually from the end of the
12.32fiscal year in which the shortage occurred to the end of the month in which payment is
12.33made and the interest must be credited to the fund. If payment of a shortage in deductions
12.34is not made, the formula service credit of the member must be prorated under section
13.1(2) Payment of shortages in member deductions on salary earned after June 30,
13.21981, are the sole obligation of the employing unit and are payable by the employing unit
13.3upon notification by the executive director of the shortage with interest at an annual rate of
13.48.5 percent compounded annually from the end of the fiscal year in which the shortage
13.5occurred to the end of the month in which payment is made and the interest must be
13.6credited to the fund. Effective July 1, 1986, the employing unit shall also pay the employer
13.7contributions as specified in section
13.8shortage payment is not paid by the employing unit within 60 days of notification, the
13.9executive director
13.10county auditor, who shall spread a levy in the amount of the shortage payment over the
13.11taxable property of the taxing district of the employing unit if the employing unit is
13.12supported by property taxes
13.13
13.14
13.15(3) Payment may not be made for shortages in member deductions on salary earned
13.16before July 1, 1957, for shortages in member deductions on salary paid or payable under
13.17paragraph (b), or for shortages in member deductions for persons employed by the
13.18Minnesota State Colleges and Universities system in a faculty position or in an eligible
13.19unclassified administrative position and whose employment was less than 25 percent
13.20of a full academic year, exclusive of the summer session, for the applicable institution
13.21that exceeds the most recent 36 months.
13.22(b) For a person who is employed by the Minnesota State Colleges and Universities
13.23system in a faculty position or in an eligible unclassified administrative position and
13.24whose employment was less than 25 percent of a full academic year, exclusive of the
13.25summer session, for the applicable institution, upon the person's election under section
13.27on the salary for employment by the Minnesota State Colleges and Universities system
13.28institution of less than 25 percent of a full academic year, exclusive of the summer session,
13.29for the applicable institution for the most recent 36 months and the associated employer
13.30contributions must be paid by the Minnesota State Colleges and Universities system
13.31institution, plus annual compound interest at the rate of 8.5 percent from the end of the
13.32fiscal year in which the shortage occurred to the end of the month in which the Teachers
13.33Retirement Association coverage election is made.
13.34
13.35
13.36
14.1under this paragraph shall repay the amount of the shortage in member deductions, plus
14.2interest, through deduction from salary or compensation payments within the first year of
14.3employment after the election under section
14.5available to recover amounts which were not recovered through deductions from salary or
14.6compensation payments. No payment of the shortage in member deductions under this
14.7paragraph may be made for a period longer than the most recent 36 months.
14.8EFFECTIVE DATE.This section is effective the day following final enactment.
14.9 Sec. 4. [354.512] RECOVERY OF DEFICIENCIES.
14.10In addition to any other remedies permitted under law, if an employing unit or
14.11other entity required by law to make any form of payment to the Teachers Retirement
14.12Association fails to make full payment within 60 days of notification, the executive
14.13director is authorized to certify the amount of deficiency to the commissioner of
14.14management and budget, who shall deduct the amount from any state aid or appropriation
14.15applicable to the employing unit or entity, and transmit the withheld aid or appropriation
14.16to the executive director for deposit in the fund.
14.17EFFECTIVE DATE.This section is effective the day following final enactment.
14.18 Sec. 5. Minnesota Statutes 2010, section 354A.12, subdivision 3c, is amended to read:
14.19 Subd. 3c. Termination of supplemental contributions and direct matching and
14.20state aid.
14.21
14.22
14.23
14.24
14.25
14.26supplemental contributions payable to the St. Paul Teachers Retirement Fund Association
14.27by Independent School District No. 625 under section
14.28direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund Association
14.29must continue until the current assets of the fund equal or exceed the actuarial accrued
14.30liability of the fund as determined in the most recent actuarial report for the fund by the
14.31actuary retained under section
14.32EFFECTIVE DATE.This section is effective the day following final enactment.
15.1 Sec. 6. Minnesota Statutes 2010, section 423A.02, subdivision 3, is amended to read:
15.2 Subd. 3. Reallocation of amortization or supplementary amortization state
15.3aid. (a) Seventy percent of the difference between $5,720,000 and the current year
15.4amortization aid and supplemental amortization aid distributed under subdivisions 1
15.5and 1a that is not distributed for any reason to a municipality for use by a local police
15.6or salaried fire relief association must be distributed by the commissioner of revenue
15.7according to this paragraph. The commissioner shall distribute 50 percent of the amounts
15.8derived under this paragraph to the Teachers Retirement Association, ten percent to the
15.9Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers
15.10Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the
15.11respective funds. These payments shall be made on or before June 30 each fiscal year. If
15.12the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility
15.13for this aid ceases. Amounts remaining in the undistributed balance account at the end of
15.14the biennium if aid eligibility ceases cancel to the general fund.
15.15 (b) In order to receive amortization and supplementary amortization aid under
15.16paragraph (a), prior to June 30 Independent School District No. 625, St. Paul, must make
15.17
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15.27
15.28
16.1
16.2amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not
16.3distributed for any reason to a municipality for use by a local police or salaried firefighter
16.4relief association must be distributed under section
16.5as additional funding to support a minimum fire state aid amount for volunteer firefighter
16.6relief associations.
16.7EFFECTIVE DATE.This section is effective the day following final enactment.
16.8 Sec. 7. RECOVERY OF PRIOR DEFICIENCIES.
16.9 Subdivision 1. Authorization. Due to a determination by the Office of the
16.10Legislative Auditor, Financial Audit Division, that the city of Minneapolis has failed to
16.11pay, beginning in 1998, the full amounts required under Minnesota Statutes 2010, section
16.12354A.12, subdivision 3b, and Minnesota Statutes 2010, section 423A.02, subdivision 3,
16.13and earlier versions of these provisions, to the Minneapolis Teachers Retirement Fund
16.14Association or to its successor organization, the Teachers Retirement Association, the
16.15executive director of the Teachers Retirement Association is authorized to obtain payment
16.16of the deficiency under procedures specified in this section.
16.17 Subd. 2. Deficient amount. The amount of the deficiency is the shortage amount as
16.18determined by the Office of the Legislative Auditor, $727,070, plus additional shortage, if
16.19any, by the city of Minneapolis that has occurred since the auditor's determination.
16.20 Subd. 3. Recovery procedure. The executive director of the Teachers Retirement
16.21Association is authorized to certify the deficiency amount to the commissioner of
16.22management and budget, who shall deduct the amount of the deficiency from any state
16.23aid for the city of Minneapolis, and transmit the withheld aid to the executive director for
16.24deposit in the Teachers Retirement Association pension fund.
16.25 Subd. 4. Interest. If interest is not already included in the auditor's determined
16.26amount, the executive director of the Teachers Retirement Association is authorized
16.27to add, to the amount of the deficiency determined under subdivision 2 and certified
16.28under subdivision 3, interest at the preretirement interest rate specified for the Teachers
16.29Retirement Association in Minnesota Statutes, section 356.215, expressed in monthly
16.30terms and compounded annually, from the first of the month following the date each
16.31underpayment occurred until the first of the month following the date that the withheld
16.32aid is transmitted to the Teachers Retirement Association.
16.33 Subd. 5. Expiration. Authority for the executive director of the Teachers
16.34Retirement Association to certify shortages for collection under this section expires two
16.35years from the date of enactment.
17.1EFFECTIVE DATE.This section is effective the day following final enactment.
17.2 Sec. 8. REPEALER.
17.3Minnesota Statutes 2010, sections 128D.18; and 354A.12, subdivision 3b, are
17.4repealed.
17.5EFFECTIVE DATE.This section is effective the day following final enactment.
