Bill Text: MN HF2524 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Public Employees Retirement Association; salary reporting requirement revised, early retirement provision application to sheriffs clarified, and postretirement option program requirements and revised and expiration date extended.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-27 - Introduction and first reading, referred to Government Operations [HF2524 Detail]
Download: Minnesota-2013-HF2524-Introduced.html
1.2relating to retirement; Public Employees Retirement Association; revising
1.3salary reporting requirement; clarifying early retirement provision application
1.4to sheriffs; revising postretirement option program requirements and extending
1.5expiration date; amending Minnesota Statutes 2012, sections 353.27, subdivision
1.64; 353.371, subdivisions 1, 4, by adding a subdivision; Minnesota Statutes 2013
1.7Supplement, section 353.651, subdivision 4; Laws 2009, chapter 169, article 5,
1.8section 2, as amended.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 353.27, subdivision 4, is amended to read:
1.11 Subd. 4. Employer reporting requirements; contributions; member status.
1.12(a) A representative authorized by the head of each department shall deduct employee
1.13contributions from the salary of each public employee who qualifies for membership in
1.14the general employees retirement plan of the Public Employees Retirement Association
1.15or in the public employees police and fire retirement plan under this chapter or chapter
1.16353D or 353E at the rate under section353.27 ,
353.65 ,
353D.03 , or
353E.03 , whichever is
1.17applicable, that is in effect on the date the salary is paid. The employer representative must
1.18also remit payment in a manner prescribed by the executive director for the aggregate
1.19amount of the employee contributions and the required employer contributions to be
1.20received by the association within 14 calendar days after each pay date. If the payment is
1.21less than the amount required, the employer must pay the shortage amount to the association
1.22and collect reimbursement of any employee contribution shortage paid on behalf of a
1.23member through subsequent payroll withholdings from the wages of the employee.
1.24Payment of shortages in employee contributions and associated employer contributions, if
1.25applicable, must include interest at the rate specified in section353.28, subdivision 5 , if not
1.26received within 30 days following the date the amount was initially due under this section.
2.1(b) The head of each department or the person's designee shall submit for each
2.2pay period to the association a salary deduction report in the format prescribed by the
2.3executive director. The report must be received by the association within 14 calendar
2.4days after each pay date or the employer may be assessed a fine of $5 per calendar day
2.5until the association receives the required data. Data required as part of salary deduction
2.6reporting must include, but are not limited to:
2.7(1) the legal names and Social Security numbers of employees who are members;
2.8(2) the amount of each employee's salary deduction;
2.9(3) the amount of salary defined in section353.01, subdivision 10 , earned in the pay
2.10period from which each deduction was made, including a breakdown of the portion of
2.11the salary that represents overtime or compensatory pay that the employee was paid for
2.12additional hours worked beyond the regularly scheduled hours, and the salary amount
2.13earned by a reemployed annuitant under section353.37, subdivision 1 , or
353.371,
2.14subdivision 1 , or by a disabled member under section
353.33, subdivision 7 or 7a;
2.15(4) the beginning and ending dates of the payroll period covered and the date of
2.16actual payment; and
2.17(5) adjustments or corrections covering past pay periods as authorized by the
2.18executive director.
2.19(c) Employers must furnish the data required for enrollment for each new or
2.20reinstated employee who qualifies for membership in the general employees retirement
2.21plan of the Public Employees Retirement Association or in the public employees police
2.22and fire retirement plan in the format prescribed by the executive director. The required
2.23enrollment data on new members must be submitted to the association prior to or
2.24concurrent with the submission of the initial employee salary deduction. Also, the
2.25employer shall report to the association all member employment status changes, such as
2.26leaves of absence, terminations, and death, and shall report the effective dates of those
2.27changes, on an ongoing basis for the payroll cycle in which they occur. If an employer
2.28fails to comply with the reporting requirements under this paragraph, the executive
2.29director may assess a fine of $25 for each failure if the association staff has notified the
2.30employer of the noncompliance and attempted to obtain the missing data or form from the
2.31employer for a period of more than three months.
2.32(d) The employer shall furnish data, forms, and reports as may be required by
2.33the executive director for proper administration of the retirement system. Before
2.34implementing new or different computerized reporting requirements, the executive
2.35director shall give appropriate advance notice to governmental subdivisions to allow time
2.36for system modifications.
3.1(e) Notwithstanding paragraph (a), the executive director may provide for less
3.2frequent reporting and payments for small employers.
3.3(f) The executive director may establish reporting procedures and methods as
3.4required to review compliance by employers with the salary and contribution reporting
3.5requirements in this chapter. A review of the payroll records of a participating employer
3.6may be conducted by the association on a periodic basis or as a result of concerns known
3.7to exist within a governmental subdivision. An employer under review must extract
3.8requested data and provide records to the association after receiving reasonable advanced
3.9notice. Failure to provide requested information or materials will result in the employer
3.10being liable to the association for any expenses associated with a field audit, which may
3.11include staff salaries, administrative expenses, and travel expenses.
3.12EFFECTIVE DATE.This section is effective January 1, 2015.
3.13 Sec. 2. Minnesota Statutes 2012, section 353.371, subdivision 1, is amended to read:
3.14 Subdivision 1. Eligibility. (a) This section applies to a basic or coordinated member
3.15of the general employees retirement plan of the Public Employees Retirement Association
3.16who:
3.17(1) for at least the five years immediately preceding separation under clause (2), was
3.18regularly scheduled to work 1,044 or more hours per year in a position covered by the
3.19general employees retirement plan of the Public Employees Retirement Association;
3.20(2) terminates membership as defined under section353.01, subdivision 11b ;
3.21(3) at the time of termination under clause (2), was at least age 62 and met the age
3.22and service requirements necessary to receive a retirement annuity from the plan and
3.23satisfied requirements for the commencement of the retirement annuity;
3.24(4) agrees to accept a postretirement option position with the sameor a different
3.25 governmental subdivision, working a reduced schedule that is both:
3.26(i) a reduction of at least 25 percent from the employee's number of previously
3.27regularly scheduled work hours; and
3.28(ii) 1,044 hours or less in public; and
3.29(5) is not eligible for participation in the state employee postretirement option
3.30program under section43A.346 .
3.31(b) For purposes of this section, the length of separation requirement and termination
3.32of service requirement prohibiting return to work agreements under section353.01 ,
3.33subdivisions 11a and 28, are not applicable.
4.1EFFECTIVE DATE.This section is effective July 1, 2014, and applies to
4.2appointments made on or after that date.
4.3 Sec. 3. Minnesota Statutes 2012, section 353.371, subdivision 4, is amended to read:
4.4 Subd. 4. Duration. Postretirement option employment may be for an initial period
4.5not to exceed one year. At the end of the initial period, the governing body has sole
4.6discretion to determine if the offer of a postretirement option position will be renewed,
4.7renewed with modifications, or terminated. Postretirement option employment may be
4.8renewed annually,but as follows:
4.9(1) if entered into before July 1, 2014, for no more than four renewalsmay occur.; and
4.10(2) if entered on or after July 1, 2014, for no more than two renewals.
4.11EFFECTIVE DATE.This section is effective July 1, 2014.
4.12 Sec. 4. Minnesota Statutes 2012, section 353.371, is amended by adding a subdivision
4.13to read:
4.14 Subd. 8. Program expiration. (a) Initial postretirement option employment
4.15agreements must not be entered into after June 30, 2019.
4.16(b) This section expires on June 30, 2022.
4.17EFFECTIVE DATE.This section is effective July 1, 2014.
4.18 Sec. 5. Minnesota Statutes 2013 Supplement, section 353.651, subdivision 4, is
4.19amended to read:
4.20 Subd. 4. Early retirement. (a) A person who becomes a public employees police
4.21and fire retirement plan member after June 30, 2007, or a former member who is reinstated
4.22as a member of the plan after that date, who is at least 50 years of age and is at least
4.23partially vested under section353.01, subdivision 47 , upon the termination of public
4.24service employees police and fire retirement plan membership before July 1, 2014, if the
4.25person is other than a county sheriff or after January 4, 2015, if the person is a county
4.26sheriff is entitled upon application to a retirement annuity equal to the normal annuity
4.27calculated under subdivision 3, reduced by two-tenths of one percent for each month that
4.28the member is under age 55 at the time of retirement.
4.29 (b) Upon the termination of publicservice employees police and fire retirement
4.30plan membership before July 1, 2014,if the person is other than a county sheriff or
4.31upon the termination of public service before January 5, 2015, if the person is a county
4.32sheriff, any public employees police and fire retirement plan member who first became
5.1a member of the plan before July 1, 2007, and who is not specified in paragraph (a),
5.2upon attaining at least 50 years of age with at least three years of allowable service is
5.3entitled upon application to a retirement annuity equal to the normal annuity calculated
5.4under subdivision 3, reduced by one-tenth of one percent for each month that the member
5.5is under age 55 at the time of retirement.
5.6(c) A personother than a county sheriff who is a member of the public employees
5.7police and fire retirement plan on or after July 1, 2014,or a county sheriff who is a
5.8member of the public employees police and fire retirement plan on or after January 5,
5.92015, and who is at least 50 years old and is at least partially vested under section
353.01 ,
5.10subdivision 47, and whose benefit effective date is after July 1, 2014,if other than a
5.11county sheriff or after January 4, 2015, if a county sheriff and on or before July 1, 2019, is
5.12entitled upon application to a retirement annuity equal to the normal annuity calculated
5.13under subdivision 3, reduced for each month the member is under age 55 at the time of
5.14retirement by applying a blended monthly rate that is equivalent to the sum of:
5.15(1) one-sixtieth of the annual rate of five percent, prorated for each month the
5.16person's benefit effective date is after July 1, 2014, or after December 31, 2014, whichever
5.17applies; and
5.18(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever
5.19applies, for each month the person's benefit effective date is before July 1, 2019.
5.20(d) A personother than a county sheriff who is a member of the public employees
5.21police and fire retirement plan on or after July 1, 2014,or a county sheriff who is a member
5.22of the public employees police and fire retirement plan on or after January 5, 2015, and
5.23who is at least 50 years old and is at least partially vested under section353.01, subdivision
5.2447 , whose benefit effective date is after July 1, 2019, is entitled, upon application, to a
5.25retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by
5.26five percent annually, prorated for each month that the member is under age 55.
5.27EFFECTIVE DATE.This section is effective the day following final enactment.
5.28 Sec. 6. Laws 2009, chapter 169, article 5, section 2, the effective date, as amended by
5.29Laws 2010, chapter 359, article 5, section 27, is amended to read:
5.30EFFECTIVE DATE.This section is effective the day following final enactment
5.31and expires on June 30, 2014. Individuals must not be appointed to a postretirement
5.32option position after that date.
5.33EFFECTIVE DATE.This section is effective the day following final enactment.
6.1 Sec. 7. COUNTY SHERIFF TEMPORARY EARLY RETIREMENT
6.2PROVISION.
6.3 Subdivision 1. Application. (a) This section applies to a county sheriff who:
6.4(1) terminates membership in the public employees police and fire retirement plan
6.5after June 30, 2014, and before February 1, 2015;
6.6(2) is at least age 50 but less than age 55 on the date of termination;
6.7(3) is at least partially vested under Minnesota Statutes, section 353.01, subdivision
6.847, and meets all applicable requirements for receipt of an early retirement annuity from
6.9the plan; and
6.10(4) has as the benefit effective date the day following termination of public
6.11employees police and fire retirement plan membership.
6.12(b) Notwithstanding any provision of Minnesota Statutes, section 353.651,
6.13subdivision 4, to the contrary, the early retirement annuity applicable to an eligible person
6.14under paragraph (a) is the applicable benefit specified in subdivision 2.
6.15 Subd. 2. Early retirement annuity. (a) If an eligible person became a public
6.16employees police and fire retirement plan member after June 30, 2007, or was a former
6.17member who was reinstated as a member after that date, the person is entitled, upon
6.18application, to the normal annuity calculated under Minnesota Statutes, section 353.651,
6.19subdivision 3, reduced by two-tenths of one percent for each month that the member
6.20is under age 55 at the time of retirement.
6.21(b) If an eligible person became a public employees police and fire retirement plan
6.22member before July 1, 2007, and is covered under paragraph (a), the person is entitled,
6.23upon application, to the normal annuity calculated under Minnesota Statutes, section
6.24353.651, subdivision 3, reduced by one-tenth of one percent for each month that the
6.25member is under age 55 at the time of retirement.
6.26(c) If an eligible person is not fully vested, the annuity computed under this section
6.27must be reduced accordingly.
6.28 Subd. 3. Expiration. This section expires on January 1, 2016.
6.29EFFECTIVE DATE.This section is effective the day following final enactment.
1.3salary reporting requirement; clarifying early retirement provision application
1.4to sheriffs; revising postretirement option program requirements and extending
1.5expiration date; amending Minnesota Statutes 2012, sections 353.27, subdivision
1.64; 353.371, subdivisions 1, 4, by adding a subdivision; Minnesota Statutes 2013
1.7Supplement, section 353.651, subdivision 4; Laws 2009, chapter 169, article 5,
1.8section 2, as amended.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 353.27, subdivision 4, is amended to read:
1.11 Subd. 4. Employer reporting requirements; contributions; member status.
1.12(a) A representative authorized by the head of each department shall deduct employee
1.13contributions from the salary of each public employee who qualifies for membership in
1.14the general employees retirement plan of the Public Employees Retirement Association
1.15or in the public employees police and fire retirement plan under this chapter or chapter
1.16353D or 353E at the rate under section
1.17applicable, that is in effect on the date the salary is paid. The employer representative must
1.18also remit payment in a manner prescribed by the executive director for the aggregate
1.19amount of the employee contributions and the required employer contributions to be
1.20received by the association within 14 calendar days after each pay date. If the payment is
1.21less than the amount required, the employer must pay the shortage amount to the association
1.22and collect reimbursement of any employee contribution shortage paid on behalf of a
1.23member through subsequent payroll withholdings from the wages of the employee.
1.24Payment of shortages in employee contributions and associated employer contributions, if
1.25applicable, must include interest at the rate specified in section
1.26received within 30 days following the date the amount was initially due under this section.
2.1(b) The head of each department or the person's designee shall submit for each
2.2pay period to the association a salary deduction report in the format prescribed by the
2.3executive director. The report must be received by the association within 14 calendar
2.4days after each pay date or the employer may be assessed a fine of $5 per calendar day
2.5until the association receives the required data. Data required as part of salary deduction
2.6reporting must include, but are not limited to:
2.7(1) the legal names and Social Security numbers of employees who are members;
2.8(2) the amount of each employee's salary deduction;
2.9(3) the amount of salary defined in section
2.10period from which each deduction was made, including a breakdown of the portion of
2.11the salary that represents overtime or compensatory pay that the employee was paid for
2.12additional hours worked beyond the regularly scheduled hours, and the salary amount
2.13earned by a reemployed annuitant under section
2.14subdivision 1
2.15(4) the beginning and ending dates of the payroll period covered and the date of
2.16actual payment; and
2.17(5) adjustments or corrections covering past pay periods as authorized by the
2.18executive director.
2.19(c) Employers must furnish the data required for enrollment for each new or
2.20reinstated employee who qualifies for membership in the general employees retirement
2.21plan of the Public Employees Retirement Association or in the public employees police
2.22and fire retirement plan in the format prescribed by the executive director. The required
2.23enrollment data on new members must be submitted to the association prior to or
2.24concurrent with the submission of the initial employee salary deduction. Also, the
2.25employer shall report to the association all member employment status changes, such as
2.26leaves of absence, terminations, and death, and shall report the effective dates of those
2.27changes, on an ongoing basis for the payroll cycle in which they occur. If an employer
2.28fails to comply with the reporting requirements under this paragraph, the executive
2.29director may assess a fine of $25 for each failure if the association staff has notified the
2.30employer of the noncompliance and attempted to obtain the missing data or form from the
2.31employer for a period of more than three months.
2.32(d) The employer shall furnish data, forms, and reports as may be required by
2.33the executive director for proper administration of the retirement system. Before
2.34implementing new or different computerized reporting requirements, the executive
2.35director shall give appropriate advance notice to governmental subdivisions to allow time
2.36for system modifications.
3.1(e) Notwithstanding paragraph (a), the executive director may provide for less
3.2frequent reporting and payments for small employers.
3.3(f) The executive director may establish reporting procedures and methods as
3.4required to review compliance by employers with the salary and contribution reporting
3.5requirements in this chapter. A review of the payroll records of a participating employer
3.6may be conducted by the association on a periodic basis or as a result of concerns known
3.7to exist within a governmental subdivision. An employer under review must extract
3.8requested data and provide records to the association after receiving reasonable advanced
3.9notice. Failure to provide requested information or materials will result in the employer
3.10being liable to the association for any expenses associated with a field audit, which may
3.11include staff salaries, administrative expenses, and travel expenses.
3.12EFFECTIVE DATE.This section is effective January 1, 2015.
3.13 Sec. 2. Minnesota Statutes 2012, section 353.371, subdivision 1, is amended to read:
3.14 Subdivision 1. Eligibility. (a) This section applies to a basic or coordinated member
3.15of the general employees retirement plan of the Public Employees Retirement Association
3.16who:
3.17(1) for at least the five years immediately preceding separation under clause (2), was
3.18regularly scheduled to work 1,044 or more hours per year in a position covered by the
3.19general employees retirement plan of the Public Employees Retirement Association;
3.20(2) terminates membership as defined under section
3.21(3) at the time of termination under clause (2), was at least age 62 and met the age
3.22and service requirements necessary to receive a retirement annuity from the plan and
3.23satisfied requirements for the commencement of the retirement annuity;
3.24(4) agrees to accept a postretirement option position with the same
3.25 governmental subdivision, working a reduced schedule that is both:
3.26(i) a reduction of at least 25 percent from the employee's number of previously
3.27regularly scheduled work hours; and
3.28(ii) 1,044 hours or less in public; and
3.29(5) is not eligible for participation in the state employee postretirement option
3.30program under section
3.31(b) For purposes of this section, the length of separation requirement and termination
3.32of service requirement prohibiting return to work agreements under section
3.33subdivisions 11a and 28, are not applicable.
4.1EFFECTIVE DATE.This section is effective July 1, 2014, and applies to
4.2appointments made on or after that date.
4.3 Sec. 3. Minnesota Statutes 2012, section 353.371, subdivision 4, is amended to read:
4.4 Subd. 4. Duration. Postretirement option employment may be for an initial period
4.5not to exceed one year. At the end of the initial period, the governing body has sole
4.6discretion to determine if the offer of a postretirement option position will be renewed,
4.7renewed with modifications, or terminated. Postretirement option employment may be
4.8renewed annually,
4.9(1) if entered into before July 1, 2014, for no more than four renewals
4.10(2) if entered on or after July 1, 2014, for no more than two renewals.
4.11EFFECTIVE DATE.This section is effective July 1, 2014.
4.12 Sec. 4. Minnesota Statutes 2012, section 353.371, is amended by adding a subdivision
4.13to read:
4.14 Subd. 8. Program expiration. (a) Initial postretirement option employment
4.15agreements must not be entered into after June 30, 2019.
4.16(b) This section expires on June 30, 2022.
4.17EFFECTIVE DATE.This section is effective July 1, 2014.
4.18 Sec. 5. Minnesota Statutes 2013 Supplement, section 353.651, subdivision 4, is
4.19amended to read:
4.20 Subd. 4. Early retirement. (a) A person who becomes a public employees police
4.21and fire retirement plan member after June 30, 2007, or a former member who is reinstated
4.22as a member of the plan after that date, who is at least 50 years of age and is at least
4.23partially vested under section
4.24
4.25
4.26
4.27calculated under subdivision 3, reduced by two-tenths of one percent for each month that
4.28the member is under age 55 at the time of retirement.
4.29 (b) Upon the termination of public
4.30plan membership before July 1, 2014,
4.31
4.32
5.1a member of the plan before July 1, 2007, and who is not specified in paragraph (a),
5.2upon attaining at least 50 years of age with at least three years of allowable service is
5.3entitled upon application to a retirement annuity equal to the normal annuity calculated
5.4under subdivision 3, reduced by one-tenth of one percent for each month that the member
5.5is under age 55 at the time of retirement.
5.6(c) A person
5.7police and fire retirement plan on or after July 1, 2014,
5.8
5.9
5.10subdivision 47, and whose benefit effective date is after July 1, 2014,
5.11
5.12entitled upon application to a retirement annuity equal to the normal annuity calculated
5.13under subdivision 3, reduced for each month the member is under age 55 at the time of
5.14retirement by applying a blended monthly rate that is equivalent to the sum of:
5.15(1) one-sixtieth of the annual rate of five percent, prorated for each month the
5.16person's benefit effective date is after July 1, 2014
5.17
5.18(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever
5.19applies, for each month the person's benefit effective date is before July 1, 2019.
5.20(d) A person
5.21police and fire retirement plan on or after July 1, 2014,
5.22
5.23who is at least 50 years old and is at least partially vested under section
5.2447
5.25retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by
5.26five percent annually, prorated for each month that the member is under age 55.
5.27EFFECTIVE DATE.This section is effective the day following final enactment.
5.28 Sec. 6. Laws 2009, chapter 169, article 5, section 2, the effective date, as amended by
5.29Laws 2010, chapter 359, article 5, section 27, is amended to read:
5.30EFFECTIVE DATE.This section is effective the day following final enactment
5.31
5.32
5.33EFFECTIVE DATE.This section is effective the day following final enactment.
6.1 Sec. 7. COUNTY SHERIFF TEMPORARY EARLY RETIREMENT
6.2PROVISION.
6.3 Subdivision 1. Application. (a) This section applies to a county sheriff who:
6.4(1) terminates membership in the public employees police and fire retirement plan
6.5after June 30, 2014, and before February 1, 2015;
6.6(2) is at least age 50 but less than age 55 on the date of termination;
6.7(3) is at least partially vested under Minnesota Statutes, section 353.01, subdivision
6.847, and meets all applicable requirements for receipt of an early retirement annuity from
6.9the plan; and
6.10(4) has as the benefit effective date the day following termination of public
6.11employees police and fire retirement plan membership.
6.12(b) Notwithstanding any provision of Minnesota Statutes, section 353.651,
6.13subdivision 4, to the contrary, the early retirement annuity applicable to an eligible person
6.14under paragraph (a) is the applicable benefit specified in subdivision 2.
6.15 Subd. 2. Early retirement annuity. (a) If an eligible person became a public
6.16employees police and fire retirement plan member after June 30, 2007, or was a former
6.17member who was reinstated as a member after that date, the person is entitled, upon
6.18application, to the normal annuity calculated under Minnesota Statutes, section 353.651,
6.19subdivision 3, reduced by two-tenths of one percent for each month that the member
6.20is under age 55 at the time of retirement.
6.21(b) If an eligible person became a public employees police and fire retirement plan
6.22member before July 1, 2007, and is covered under paragraph (a), the person is entitled,
6.23upon application, to the normal annuity calculated under Minnesota Statutes, section
6.24353.651, subdivision 3, reduced by one-tenth of one percent for each month that the
6.25member is under age 55 at the time of retirement.
6.26(c) If an eligible person is not fully vested, the annuity computed under this section
6.27must be reduced accordingly.
6.28 Subd. 3. Expiration. This section expires on January 1, 2016.
6.29EFFECTIVE DATE.This section is effective the day following final enactment.
