Bill Text: MN SF2380 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Statewide and major local defined benefit retirement plans modifications for overtime salary
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-03-12 - Referred to State Government Innovation and Veterans [SF2380 Detail]
Download: Minnesota-2011-SF2380-Introduced.html
1.2relating to retirement; statewide and major local defined benefit retirement plans;
1.3requiring unclassified state employees retirement program coverage for overtime
1.4salary; amending Minnesota Statutes 2010, sections 352.01, subdivision 13;
1.5352.04, subdivision 4; 352D.02, subdivision 1, by adding a subdivision; 352D.04,
1.6subdivision 2; 353.01, subdivision 10; 353.27, subdivision 4; 354.05, subdivision
1.735; 354.52, subdivision 4b; 354A.011, subdivision 24; 354A.12, subdivision 5;
1.8490.121, by adding a subdivision; 490.124, by adding a subdivision; proposing
1.9coding for new law in Minnesota Statutes, chapter 356.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 352.01, subdivision 13, is amended to read:
1.12 Subd. 13. Salary. (a) Subject to the limitations of section356.611 , "salary" means
1.13wages, or other periodic compensation, paid to an employee before deductions for
1.14deferred compensation, supplemental retirement plans, or other voluntary salary reduction
1.15programs.
1.16(b) "Salary" does not include:
1.17(1) lump-sum sick leave payments;
1.18(2) severance payments;
1.19(3) lump-sum annual leave payments and overtime payments made at the time
1.20of separation from state service;
1.21(4) payments in lieu of any employer-paid group insurance coverage, including the
1.22difference between single and family rates that may be paid to an employee with single
1.23coverage;
1.24(5) payments made as an employer-paid fringe benefit;
1.25(6) workers' compensation payments;
2.1(7) employer contributions to a deferred compensation or tax-sheltered annuity
2.2program;and
2.3(8) amounts contributed under a benevolent vacation and sick leave donation
2.4program.; and
2.5(9) amounts of irregular compensation as defined in section 356.307 on which
2.6employee and employer contributions were transmitted to the unclassified state employees
2.7retirement program as provided in section 352D.02, subdivision 7.
2.8(c) Amounts provided to an employee by the employer through a grievance
2.9proceeding or a legal settlement are salary only if the settlement is reviewed by the
2.10executive director and the amounts are determined by the executive director to be
2.11consistent with paragraph (a) and prior determinations.
2.12 Sec. 2. Minnesota Statutes 2010, section 352.04, subdivision 4, is amended to read:
2.13 Subd. 4. Payroll deductions. (a) The head of each department shall have employee
2.14contributions deducted from the salary of each employee covered by the system on
2.15every payroll abstract and shall approve one voucher payable to the commissioner of
2.16management and budget for the aggregate amount deducted on the payroll abstract.
2.17(b) Deductions from salaries of employees paid direct by any department, institution,
2.18or agency of the state must be made by the officer or employee authorized by law to
2.19pay the salaries. The head of any department or agency having authority to appoint any
2.20employee who receives fees as compensation or who receives compensation on federal
2.21payrolls shall collect as the required employee contribution the applicable amounts
2.22required in subdivision 2.
2.23(c) Deductions from salary and amounts collected must be remitted to the director
2.24with a statement showing the total amount of earnings or fees, the amount of irregular
2.25compensation, and in the case of fees, the number of transactions, and the amount of each
2.26of the deductions and collections and the names of the employees on whose account
2.27they have been made.
2.28 Sec. 3. Minnesota Statutes 2010, section 352D.02, subdivision 1, is amended to read:
2.29 Subdivision 1. Coverage. (a) Employees enumerated in paragraph (c), clauses (2),
2.30(3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or
2.31Metropolitan Council and are eligible for coverage under the general state employees
2.32retirement plan under chapter 352, are participants in the unclassified program under this
2.33chapter unless the employee gives notice to the executive director of the Minnesota State
2.34Retirement System within one year following the commencement of employment in the
3.1unclassified service that the employee desires coverage under the general state employees
3.2retirement plan. For the purposes of this chapter, an employee who does not file notice
3.3with the executive director is deemed to have exercised the option to participate in the
3.4unclassified program.
3.5 (b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
3.6program under this chapter unless the person was eligible to elect different coverage under
3.7section3A.07 and elected retirement coverage by the applicable alternative retirement
3.8plan. Persons referenced in paragraph (c), clause (15), are participants in the unclassified
3.9program under this chapter for judicial employment in excess of the service credit limit in
3.10section490.121, subdivision 22 .
3.11 (c) Enumerated employees and referenced persons are:
3.12 (1) the governor, the lieutenant governor, the secretary of state, the state auditor,
3.13and the attorney general;
3.14 (2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
3.15of State, State Auditor, Attorney General;
3.16 (3) an employee of the State Board of Investment;
3.17 (4) the head of a department, division, or agency created by statute in the unclassified
3.18service, an acting department head subsequently appointed to the position, or an employee
3.19enumerated in section15A.0815 or
15A.083, subdivision 4 ;
3.20 (5) a member of the legislature;
3.21 (6) a full-time unclassified employee of the legislature or a commission or agency of
3.22the legislature who is appointed without a limit on the duration of the employment or a
3.23temporary legislative employee having shares in the supplemental retirement fund as a
3.24result of former employment covered by this chapter, whether or not eligible for coverage
3.25under the Minnesota State Retirement System;
3.26 (7) a person who is employed in a position established under section43A.08,
3.27subdivision 1 , clause (3), or in a position authorized under a statute creating or establishing
3.28a department or agency of the state, which is at the deputy or assistant head of department
3.29or agency or director level;
3.30 (8) the regional administrator, or executive director of the Metropolitan Council,
3.31general counsel, division directors, operations managers, and other positions as designated
3.32by the council, all of which may not exceed 27 positions at the council and the chair;
3.33 (9) the executive director, associate executive director, and not to exceed nine
3.34positions of the Minnesota Office of Higher Education in the unclassified service, as
3.35designated by the Minnesota Office of Higher Education before January 1, 1992, or
3.36subsequently redesignated with the approval of the board of directors of the Minnesota
4.1State Retirement System, unless the person has elected coverage by the individual
4.2retirement account plan under chapter 354B;
4.3 (10) the clerk of the appellate courts appointed under article VI, section 2, of the
4.4Constitution of the state of Minnesota, the state court administrator and judicial district
4.5administrators;
4.6 (11) the chief executive officers of correctional facilities operated by the Department
4.7of Corrections and of hospitals and nursing homes operated by the Department of Human
4.8Services;
4.9 (12) an employee whose principal employment is at the state ceremonial house;
4.10 (13) an employee of the Agricultural Utilization Research Institute;
4.11 (14) an employee of the State Lottery who is covered by the managerial plan
4.12established under section43A.18, subdivision 3 ;
4.13 (15) a judge who has exceeded the service credit limit in section490.121,
4.14subdivision 22 ;
4.15 (16) an employee of Enterprise Minnesota, Inc.;
4.16 (17) a person employed by the Minnesota State Colleges and Universities as faculty
4.17or in an eligible unclassified administrative position as defined in section354B.20 ,
4.18subdivision 6, who was employed by the former state university or the former community
4.19college system before May 1, 1995, and elected unclassified program coverage prior to
4.20May 1, 1995;and
4.21 (18) a person employed by the Minnesota State Colleges and Universities who
4.22was employed in state service before July 1, 1995, who subsequently is employed in an
4.23eligible unclassified administrative position as defined in section354B.20, subdivision 6,
4.24and who elects coverage by the unclassified program.; and
4.25(19) a person with regular retirement coverage by a defined benefit retirement
4.26plan who receives irregular compensation as defined in section 356.307 with respect
4.27to the employee or member contribution and employer contribution on that irregular
4.28compensation.
4.29 Sec. 4. Minnesota Statutes 2010, section 352D.02, is amended by adding a subdivision
4.30to read:
4.31 Subd. 7. Coverage for irregular compensation. (a) A person referenced in
4.32subdivision 1, paragraph (c), clause (19), is a participant in the unclassified program by
4.33virtue of the receipt of irregular compensation as defined in section 356.307 and the
4.34transmission of employee or member contributions and employer contributions with
5.1respect to that irregular compensation to the program for the purchase of shares in the
5.2Minnesota supplemental investment fund.
5.3(b) The chief administrative officer of the defined benefit retirement plan that
5.4provides the primary defined benefit retirement coverage shall transmit the employee or
5.5member and employer contributions associated with the irregular compensation within
5.6five business days of receipt.
5.7(c) A person covered by the unclassified program under subdivision 1, paragraph
5.8(c), clause (19), and this subdivision is not eligible for a transfer of unclassified program
5.9coverage to the general state employees retirement plan under subdivision 3.
5.10 Sec. 5. Minnesota Statutes 2010, section 352D.04, subdivision 2, is amended to read:
5.11 Subd. 2. Contribution rates. (a) The money used to purchase shares under this
5.12section is the employee and employer contributions provided in this subdivision.
5.13 (b) The employee contribution is an amount equal to the percent of salary specified
5.14in section352.04, subdivision 2 , or
352.045, subdivision 3 .
5.15 (c) The employer contribution is an amount equal to six percent of salary.
5.16 (d) For members of the legislature, the contributions under this subdivision also must
5.17be made on per diem payments received during a regular or special legislative session, but
5.18may not be made on per diem payments received outside of a regular or special legislative
5.19session, on the additional compensation attributable to a leadership position under section
5.203.099
, subdivision 3, living expense payments under section
3.101 , or special session
5.21living expense payments under section3.103 .
5.22 (e) For a judge who is a member of the unclassified plan under section352D.02 ,
5.23subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
5.24of salary, and there is no employer contribution.
5.25(f) For a person covered by the unclassified program under section 352D.02,
5.26subdivision 1, paragraph (c), clause (19), the employee contribution is an amount equal
5.27to the percent of the irregular compensation as defined in section 356.307 that is the
5.28employee or member contribution rate applicable to the person's defined benefit retirement
5.29plan coverage, and the employer contribution is an amount equal to the percent of the
5.30irregular compensation as defined in section 356.307 that is the employer contribution rate
5.31applicable to the person's defined benefit retirement plan coverage.
5.32(g) These contributions must be made in the manner provided in section352.04 ,
5.33subdivisions 4, 5, and 6.
5.34 Sec. 6. Minnesota Statutes 2010, section 353.01, subdivision 10, is amended to read:
6.1 Subd. 10. Salary. (a) Subject to the limitations of section356.611 , "salary" means:
6.2 (1) the periodic compensation of a public employee, before deductions for deferred
6.3compensation, supplemental retirement plans, or other voluntary salary reduction
6.4programs, and also means "wages" and includes net income from fees;
6.5 (2) for a public employee who is covered by a supplemental retirement plan under
6.6section356.24, subdivision 1 , clause (8), (9), or (10), which require all plan contributions
6.7be made by the employer, the contribution to the applicable supplemental retirement plan
6.8when an agreement between the parties establishes that the contribution will either result
6.9in a mandatory reduction of employees' wages through payroll withholdings, or be made
6.10in lieu of an amount that would otherwise be paid as wages; and
6.11 (3) for a public employee who has prior service covered by a local police or
6.12firefighters relief association that has consolidated with the Public Employees Retirement
6.13Association or to which section353.665 applies and who has elected coverage either
6.14under the public employees police and fire fund benefit plan under section353A.08
6.15following the consolidation or under section
353.665, subdivision 4 , the rate of salary
6.16upon which member contributions to the special fund of the relief association were made
6.17prior to the effective date of the consolidation as specified by law and by bylaw provisions
6.18governing the relief association on the date of the initiation of the consolidation procedure
6.19and the actual periodic compensation of the public employee after the effective date of
6.20consolidation.
6.21 (b) Salary does not mean:
6.22 (1) the fees paid to district court reporters, unused annual vacation or sick leave
6.23payments, in lump-sum or periodic payments, severance payments, reimbursement of
6.24expenses, lump-sum settlements not attached to a specific earnings period, or workers'
6.25compensation payments;
6.26 (2) employer-paid amounts used by an employee toward the cost of insurance
6.27coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
6.28care expense accounts, day care expenses, or any payments in lieu of any employer-paid
6.29group insurance coverage, including the difference between single and family rates that
6.30may be paid to a member with single coverage and certain amounts determined by the
6.31executive director to be ineligible;
6.32 (3) the amount equal to that which the employing governmental subdivision would
6.33otherwise pay toward single or family insurance coverage for a covered employee when,
6.34through a contract or agreement with some but not all employees, the employer:
6.35 (i) discontinues, or for new hires does not provide, payment toward the cost of the
6.36employee's selected insurance coverages under a group plan offered by the employer;
7.1 (ii) makes the employee solely responsible for all contributions toward the cost of
7.2the employee's selected insurance coverages under a group plan offered by the employer,
7.3including any amount the employer makes toward other employees' selected insurance
7.4coverages under a group plan offered by the employer; and
7.5 (iii) provides increased salary rates for employees who do not have any
7.6employer-paid group insurance coverages;
7.7 (4) except as provided in section353.86 or
353.87 , compensation of any kind paid to
7.8volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision
7.935 or 36;
7.10 (5) the amount of compensation that exceeds the limitation provided in section
7.11356.611
; and
7.12 (6) amounts paid by a federal or state grant for which the grant specifically
7.13prohibits grant proceeds from being used to make pension plan contributions, unless the
7.14contributions to the plan are made from sources other than the federal or state grant.; and
7.15(7) for members of the general employees retirement plan and the local government
7.16correctional retirement plan, the amount of irregular compensation as defined in
7.17section 356.307 on which employee and employer contributions were transmitted to
7.18the unclassified state employees retirement program as provided in section 352D.02,
7.19subdivision 7.
7.20 (c) Amounts provided to an employee by the employer through a grievance
7.21proceeding or a legal settlement are salary only if the settlement is reviewed by the
7.22executive director and the amounts are determined by the executive director to be
7.23consistent with paragraph (a) and prior determinations.
7.24 Sec. 7. Minnesota Statutes 2010, section 353.27, subdivision 4, is amended to read:
7.25 Subd. 4. Employer reporting requirements; contributions; member status.
7.26(a) A representative authorized by the head of each department shall deduct employee
7.27contributions from the salary of each public employee who qualifies for membership in
7.28the general employees retirement plan of the Public Employees Retirement Association
7.29or in the public employees police and fire retirement plan under this chapter or chapter
7.30353D or 353E at the rate under section353.27 ,
353.65 ,
353D.03 , or
353E.03 , whichever
7.31is applicable, that is in effect on the date the salary is paid. The employer representative
7.32must also remit payment in a manner prescribed by the executive director for the
7.33aggregate amount of the employee contributions and the required employer contributions
7.34to be received by the association within 14 calendar days after each pay date. If the
7.35payment is less than the amount required, the employer must pay the shortage amount to
8.1the association and collect reimbursement of any employee contribution shortage paid
8.2on behalf of a member through subsequent payroll withholdings from the wages of the
8.3employee. Payment of shortages in employee contributions and associated employer
8.4contributions, if applicable, must include interest at the rate specified in section353.28,
8.5subdivision 5 , if not received within 30 days following the date the amount was initially
8.6due under this section.
8.7(b) The head of each department or the person's designee shall submit for each
8.8pay period to the association a salary deduction report in the format prescribed by the
8.9executive director. The report must be received by the association within 14 calendar
8.10days after each pay date or the employer may be assessed a fine of $5 per calendar day
8.11until the association receives the required data. Data required as part of salary deduction
8.12reporting must include, but are not limited to:
8.13(1) the legal names and Social Security numbers of employees who are members;
8.14(2) the amount of each employee's salary deduction;
8.15(3) the total amount of compensation;
8.16(4) the amount of salary defined in section353.01, subdivision 10 , earned in the
8.17pay period from which each deduction was made and the salary amount earned by a
8.18reemployed annuitant under section353.37, subdivision 1 , or
353.371, subdivision 1 , or
8.19by a disabled member under section353.33, subdivision 7 or 7a;
8.20(5) the amount of irregular compensation;
8.21(4) (6) the beginning and ending dates of the payroll period covered and the date of
8.22actual payment; and
8.23(5) (7) adjustments or corrections covering past pay periods as authorized by the
8.24executive director.
8.25(c) Employers must furnish the data required for enrollment for each new or
8.26reinstated employee who qualifies for membership in the general employees retirement
8.27plan of the Public Employees Retirement Association or in the public employees police
8.28and fire retirement plan in the format prescribed by the executive director. The required
8.29enrollment data on new members must be submitted to the association prior to or
8.30concurrent with the submission of the initial employee salary deduction. Also, the
8.31employer shall report to the association all member employment status changes, such as
8.32leaves of absence, terminations, and death, and shall report the effective dates of those
8.33changes, on an ongoing basis for the payroll cycle in which they occur. If an employer
8.34fails to comply with the reporting requirements under this paragraph, the executive
8.35director may assess a fine of $25 for each failure if the association staff has notified the
9.1employer of the noncompliance and attempted to obtain the missing data or form from the
9.2employer for a period of more than three months.
9.3(d) The employer shall furnish data, forms, and reports as may be required by
9.4the executive director for proper administration of the retirement system. Before
9.5implementing new or different computerized reporting requirements, the executive
9.6director shall give appropriate advance notice to governmental subdivisions to allow time
9.7for system modifications.
9.8(e) Notwithstanding paragraph (a), the executive director may provide for less
9.9frequent reporting and payments for small employers.
9.10(f) The executive director may establish reporting procedures and methods as
9.11required to review compliance by employers with the salary and contribution reporting
9.12requirements in this chapter. A review of the payroll records of a participating employer
9.13may be conducted by the association on a periodic basis or as a result of concerns known
9.14to exist within a governmental subdivision. An employer under review must extract
9.15requested data and provide records to the association after receiving reasonable advanced
9.16notice. Failure to provide requested information or materials will result in the employer
9.17being liable to the association for any expenses associated with a field audit, which may
9.18include staff salaries, administrative expenses, and travel expenses.
9.19 Sec. 8. Minnesota Statutes 2010, section 354.05, subdivision 35, is amended to read:
9.20 Subd. 35. Salary. (a) Subject to the limitations of section356.611 , "salary"
9.21means the periodic compensation, upon which member contributions are required before
9.22deductions for deferred compensation, supplemental retirement plans, or other voluntary
9.23salary reduction programs.
9.24(b) "Salary" does not mean:
9.25(1) lump-sum annual leave payments;
9.26(2) lump-sum wellness and sick leave payments;
9.27(3) employer-paid amounts used by an employee toward the cost of insurance
9.28coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
9.29care expense accounts, day care expenses, or any payments in lieu of any employer-paid
9.30group insurance coverage, including the difference between single and family rates that
9.31may be paid to a member with single coverage and certain amounts determined by the
9.32executive director to be ineligible;
9.33(4) any form of payment made in lieu of any other employer-paid fringe benefit or
9.34expense;
9.35(5) any form of severance payments;
10.1(6) workers' compensation payments;
10.2(7) disability insurance payments, including self-insured disability payments;
10.3(8) payments to school principals and all other administrators for services that are
10.4in addition to the normal work year contract if these additional services are performed
10.5on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or
10.6any other nonduty day;
10.7(9) payments under section356.24, subdivision 1 , clause (4); and
10.8(10) payments made under section122A.40, subdivision 12 , except for payments for
10.9sick leave that are accumulated under the provisions of a uniform school district policy
10.10that applies equally to all similarly situated persons in the district.; and
10.11(11) amounts of irregular compensation as defined in section 356.307 on which
10.12employee and employer contributions were transmitted to the unclassified state employees
10.13retirement program as provided in section 352D.02, subdivision 7.
10.14(c) Amounts provided to an employee by the employer through a grievance
10.15proceeding or a legal settlement are salary only if the settlement is reviewed by the
10.16executive director and the amounts are determined by the executive director to be
10.17consistent with paragraph (a) and prior determinations.
10.18 Sec. 9. Minnesota Statutes 2010, section 354.52, subdivision 4b, is amended to read:
10.19 Subd. 4b. Payroll cycle reporting requirements. An employing unit shall provide
10.20the following data to the association for payroll warrants on an ongoing basis within 14
10.21calendar days after the date of the payroll warrant in a format prescribed by the executive
10.22director:
10.23(1) association member number;
10.24(2) employer-assigned employee number;
10.25(3) Social Security number;
10.26(4) amount of each salary deduction;
10.27(5) amount of total compensation;
10.28(6) amount of salary as defined in section354.05, subdivision 35 , from which each
10.29deduction was made;
10.30(7) amount of irregular compensation;
10.31(6) (8) reason for payment;
10.32(7) (9) service credit;
10.33(8) (10) the beginning and ending dates of the payroll period covered and the date
10.34of actual payment;
10.35(9) (11) fiscal year of salary earnings;
11.1(10) (12) total remittance amount including employee, employer, and additional
11.2employer contributions;
11.3(11) (13) reemployed annuitant salary under section
354.44, subdivision 5 ; and
11.4(12) (14) other information as may be required by the executive director.
11.5 Sec. 10. Minnesota Statutes 2010, section 354A.011, subdivision 24, is amended to
11.6read:
11.7 Subd. 24. Salary; covered salary. (a) Subject to the limitations of section356.611 ,
11.8"salary" or "covered salary" means the entire compensation, upon which member
11.9contributions are required and made, that is paid to a teacher before deductions for
11.10deferred compensation, supplemental retirement plans, or other voluntary salary reduction
11.11programs.
11.12(b) "Salary" does not mean:
11.13(1) lump-sum annual leave payments;
11.14(2) lump-sum wellness and sick leave payments;
11.15(3) employer-paid amounts used by an employee toward the cost of insurance
11.16coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
11.17care expense accounts, day care expenses, or any payments in lieu of any employer-paid
11.18group insurance coverage, including the difference between single and family rates that
11.19may be paid to a member with single coverage, and certain amounts determined by the
11.20executive secretary or director to be ineligible;
11.21(4) any form of payment that is made in lieu of any other employer-paid fringe
11.22benefit or expense;
11.23(5) any form of severance payments;
11.24(6) workers' compensation payments;
11.25(7) disability insurance payments, including self-insured disability payments;
11.26(8) payments to school principals and all other administrators for services that are
11.27in addition to the normal work year contract if these additional services are performed
11.28on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or
11.29any other nonduty day;
11.30(9) payments under section356.24, subdivision 1 , clause (4)(ii); and
11.31(10) payments made under section122A.40, subdivision 12 , except for payments for
11.32sick leave that are accumulated under the provisions of a uniform school district policy
11.33that applies equally to all similarly situated persons in the district.; and
12.1(11) amounts of irregular compensation as defined in section 356.307 on which
12.2employee and employer contributions were transmitted to the unclassified state employees
12.3retirement program as provided in section 352D.02, subdivision 7.
12.4(c) Amounts provided to an employee by the employer through a grievance
12.5proceeding or a legal settlement are salary only if the settlement is reviewed by the
12.6executive director and the amounts are determined by the executive director to be
12.7consistent with paragraph (a) and prior determinations.
12.8 Sec. 11. Minnesota Statutes 2010, section 354A.12, subdivision 5, is amended to read:
12.9 Subd. 5. Reporting and remittance requirements. (a) Each employing unit shall
12.10provide to the appropriate teachers retirement fund association the following member
12.11data regarding all new or returning employees before the employee's first payroll date in
12.12a format approved by the executive secretary or director. Data changes and the dates of
12.13those changes must be reported to the association on an ongoing basis for the payroll cycle
12.14in which they occur. Data on the member includes:
12.15(1) legal name, address, date of birth, association member number,
12.16employer-assigned employee number, and Social Security number;
12.17(2) association status, including, but not limited to, basic, coordinated, exempt
12.18annuitant, exempt technical college teacher, or exempt independent contractor or
12.19consultant;
12.20(3) employment status, including, but not limited to, full time, part time, intermittent,
12.21substitute, or part-time mobility;
12.22(4) employment position, including, but not limited to, teacher, superintendent,
12.23principal, administrator, or other;
12.24(5) employment activity, including, but not limited to, hire, termination, resumption
12.25of employment, disability, or death;
12.26(6) leaves of absence; and
12.27(7) other information as may be required by the association.
12.28(b) Each employing unit shall provide the following data to the appropriate
12.29association for each payroll cycle in a format approved by the executive secretary or
12.30director:
12.31(1) an association member number;
12.32(2) employer-assigned employee number;
12.33(3) Social Security number;
12.34(4) amount of each salary deduction;
12.35(5) amount of total compensation;
13.1(6) amount of salary as defined in section354A.011, subdivision 24 , from which
13.2each deduction was made;
13.3(7) amount of irregular compensation;
13.4(6) (8) reason for payment;
13.5(7) (9) service credit;
13.6(8) (10) the beginning and ending dates of the payroll period covered and the date
13.7of actual payment;
13.8(9) (11) fiscal year of salary earnings;
13.9(10) (12) total remittance amount including employee, employer, and employer
13.10additional contributions; and
13.11(11) (13) other information as may be required by the association.
13.12(c) On or before August 1 each year, each employing unit must report to the
13.13appropriate association giving an itemized summary for the preceding 12 months of the
13.14total amount that was withheld from the salaries of teachers for deductions and all other
13.15information required by the association.
13.16(d) An employing unit that does not comply with the reporting requirements
13.17under this section shall pay a fine of $5 per calendar day until the association receives
13.18the required member data.
13.19(e) An employing unit shall remit all amounts that are due to the association and
13.20shall furnish for each pay period an itemized statement indicating the total amount that is
13.21due and is transmitted with any other information required by the association. All amounts
13.22due and other employer obligations that are not remitted within 30 days of notification
13.23by the association must be certified by the director or secretary to the commissioner of
13.24management and budget, who shall deduct the amount from any state aid or appropriation
13.25amount applicable to the employing unit and shall transmit the deducted amount to the
13.26applicable association.
13.27 Sec. 12. [356.307] IRREGULAR COMPENSATION.
13.28 Subdivision 1. Definition. For purposes of the defined benefit retirement plans
13.29listed in subdivision 2, "irregular compensation" means compensation paid for overtime
13.30services, shift differential, extracurricular services, extra duty services, uniform
13.31allowances, employment incentives, bonuses, payments in lieu of leave time, nonduty day
13.32services, recognition rewards, and payments in lieu of insurance coverage.
13.33 Subd. 2. Applicable retirement plans. The definition in subdivision 1 is applicable
13.34to the following defined benefit retirement plans:
14.1(1) general state employees retirement plan of the Minnesota State Retirement
14.2System;
14.3(2) correctional state employees retirement plan of the Minnesota State Retirement
14.4System;
14.5(3) transportation department pilots retirement plan;
14.6(4) military affairs department personnel retirement plan;
14.7(5) state fire marshal division fire/arson investigator retirement plan;
14.8(6) general employees retirement plan of the Public Employees Retirement
14.9Association;
14.10(7) local government correctional service retirement plan of the Public Employees
14.11Retirement Association;
14.12(8) Teachers Retirement Association;
14.13(9) Duluth Teachers Retirement Fund Association;
14.14(10) St. Paul Teachers Retirement Fund Association; and
14.15(11) judges retirement plan.
14.16 Sec. 13. Minnesota Statutes 2010, section 490.121, is amended by adding a subdivision
14.17to read:
14.18 Subd. 21g. Salary. "Salary" has the same meaning as the definition of the term in
14.19section 352.01, subdivision 13.
14.20 Sec. 14. Minnesota Statutes 2010, section 490.124, is amended by adding a subdivision
14.21to read:
14.22 Subd. 15. Compensation and deduction amount requirements. The state court
14.23administrator shall comply with the compensation and deduction reporting requirements
14.24of section 352.04, subdivision 4, paragraph (c).
14.25 Sec. 15. EFFECTIVE DATE.
14.26Sections 1 to 14 are effective July 1, 2012, and apply to compensation paid and
14.27deductions made beginning with the first full payroll period beginning after June 30, 2012.
1.3requiring unclassified state employees retirement program coverage for overtime
1.4salary; amending Minnesota Statutes 2010, sections 352.01, subdivision 13;
1.5352.04, subdivision 4; 352D.02, subdivision 1, by adding a subdivision; 352D.04,
1.6subdivision 2; 353.01, subdivision 10; 353.27, subdivision 4; 354.05, subdivision
1.735; 354.52, subdivision 4b; 354A.011, subdivision 24; 354A.12, subdivision 5;
1.8490.121, by adding a subdivision; 490.124, by adding a subdivision; proposing
1.9coding for new law in Minnesota Statutes, chapter 356.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2010, section 352.01, subdivision 13, is amended to read:
1.12 Subd. 13. Salary. (a) Subject to the limitations of section
1.13wages, or other periodic compensation, paid to an employee before deductions for
1.14deferred compensation, supplemental retirement plans, or other voluntary salary reduction
1.15programs.
1.16(b) "Salary" does not include:
1.17(1) lump-sum sick leave payments;
1.18(2) severance payments;
1.19(3) lump-sum annual leave payments and overtime payments made at the time
1.20of separation from state service;
1.21(4) payments in lieu of any employer-paid group insurance coverage, including the
1.22difference between single and family rates that may be paid to an employee with single
1.23coverage;
1.24(5) payments made as an employer-paid fringe benefit;
1.25(6) workers' compensation payments;
2.1(7) employer contributions to a deferred compensation or tax-sheltered annuity
2.2program;
2.3(8) amounts contributed under a benevolent vacation and sick leave donation
2.4program
2.5(9) amounts of irregular compensation as defined in section 356.307 on which
2.6employee and employer contributions were transmitted to the unclassified state employees
2.7retirement program as provided in section 352D.02, subdivision 7.
2.8(c) Amounts provided to an employee by the employer through a grievance
2.9proceeding or a legal settlement are salary only if the settlement is reviewed by the
2.10executive director and the amounts are determined by the executive director to be
2.11consistent with paragraph (a) and prior determinations.
2.12 Sec. 2. Minnesota Statutes 2010, section 352.04, subdivision 4, is amended to read:
2.13 Subd. 4. Payroll deductions. (a) The head of each department shall have employee
2.14contributions deducted from the salary of each employee covered by the system on
2.15every payroll abstract and shall approve one voucher payable to the commissioner of
2.16management and budget for the aggregate amount deducted on the payroll abstract.
2.17(b) Deductions from salaries of employees paid direct by any department, institution,
2.18or agency of the state must be made by the officer or employee authorized by law to
2.19pay the salaries. The head of any department or agency having authority to appoint any
2.20employee who receives fees as compensation or who receives compensation on federal
2.21payrolls shall collect as the required employee contribution the applicable amounts
2.22required in subdivision 2.
2.23(c) Deductions from salary and amounts collected must be remitted to the director
2.24with a statement showing the total amount of earnings or fees, the amount of irregular
2.25compensation, and in the case of fees, the number of transactions, and the amount of each
2.26of the deductions and collections and the names of the employees on whose account
2.27they have been made.
2.28 Sec. 3. Minnesota Statutes 2010, section 352D.02, subdivision 1, is amended to read:
2.29 Subdivision 1. Coverage. (a) Employees enumerated in paragraph (c), clauses (2),
2.30(3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or
2.31Metropolitan Council and are eligible for coverage under the general state employees
2.32retirement plan under chapter 352, are participants in the unclassified program under this
2.33chapter unless the employee gives notice to the executive director of the Minnesota State
2.34Retirement System within one year following the commencement of employment in the
3.1unclassified service that the employee desires coverage under the general state employees
3.2retirement plan. For the purposes of this chapter, an employee who does not file notice
3.3with the executive director is deemed to have exercised the option to participate in the
3.4unclassified program.
3.5 (b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
3.6program under this chapter unless the person was eligible to elect different coverage under
3.7section
3.8plan. Persons referenced in paragraph (c), clause (15), are participants in the unclassified
3.9program under this chapter for judicial employment in excess of the service credit limit in
3.10section
3.11 (c) Enumerated employees and referenced persons are:
3.12 (1) the governor, the lieutenant governor, the secretary of state, the state auditor,
3.13and the attorney general;
3.14 (2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
3.15of State, State Auditor, Attorney General;
3.16 (3) an employee of the State Board of Investment;
3.17 (4) the head of a department, division, or agency created by statute in the unclassified
3.18service, an acting department head subsequently appointed to the position, or an employee
3.19enumerated in section
3.20 (5) a member of the legislature;
3.21 (6) a full-time unclassified employee of the legislature or a commission or agency of
3.22the legislature who is appointed without a limit on the duration of the employment or a
3.23temporary legislative employee having shares in the supplemental retirement fund as a
3.24result of former employment covered by this chapter, whether or not eligible for coverage
3.25under the Minnesota State Retirement System;
3.26 (7) a person who is employed in a position established under section
3.27subdivision 1
3.28a department or agency of the state, which is at the deputy or assistant head of department
3.29or agency or director level;
3.30 (8) the regional administrator, or executive director of the Metropolitan Council,
3.31general counsel, division directors, operations managers, and other positions as designated
3.32by the council, all of which may not exceed 27 positions at the council and the chair;
3.33 (9) the executive director, associate executive director, and not to exceed nine
3.34positions of the Minnesota Office of Higher Education in the unclassified service, as
3.35designated by the Minnesota Office of Higher Education before January 1, 1992, or
3.36subsequently redesignated with the approval of the board of directors of the Minnesota
4.1State Retirement System, unless the person has elected coverage by the individual
4.2retirement account plan under chapter 354B;
4.3 (10) the clerk of the appellate courts appointed under article VI, section 2, of the
4.4Constitution of the state of Minnesota, the state court administrator and judicial district
4.5administrators;
4.6 (11) the chief executive officers of correctional facilities operated by the Department
4.7of Corrections and of hospitals and nursing homes operated by the Department of Human
4.8Services;
4.9 (12) an employee whose principal employment is at the state ceremonial house;
4.10 (13) an employee of the Agricultural Utilization Research Institute;
4.11 (14) an employee of the State Lottery who is covered by the managerial plan
4.12established under section
4.13 (15) a judge who has exceeded the service credit limit in section
4.14subdivision 22
4.15 (16) an employee of Enterprise Minnesota, Inc.;
4.16 (17) a person employed by the Minnesota State Colleges and Universities as faculty
4.17or in an eligible unclassified administrative position as defined in section
4.18subdivision 6, who was employed by the former state university or the former community
4.19college system before May 1, 1995, and elected unclassified program coverage prior to
4.20May 1, 1995;
4.21 (18) a person employed by the Minnesota State Colleges and Universities who
4.22was employed in state service before July 1, 1995, who subsequently is employed in an
4.23eligible unclassified administrative position as defined in section
4.24and who elects coverage by the unclassified program
4.25(19) a person with regular retirement coverage by a defined benefit retirement
4.26plan who receives irregular compensation as defined in section 356.307 with respect
4.27to the employee or member contribution and employer contribution on that irregular
4.28compensation.
4.29 Sec. 4. Minnesota Statutes 2010, section 352D.02, is amended by adding a subdivision
4.30to read:
4.31 Subd. 7. Coverage for irregular compensation. (a) A person referenced in
4.32subdivision 1, paragraph (c), clause (19), is a participant in the unclassified program by
4.33virtue of the receipt of irregular compensation as defined in section 356.307 and the
4.34transmission of employee or member contributions and employer contributions with
5.1respect to that irregular compensation to the program for the purchase of shares in the
5.2Minnesota supplemental investment fund.
5.3(b) The chief administrative officer of the defined benefit retirement plan that
5.4provides the primary defined benefit retirement coverage shall transmit the employee or
5.5member and employer contributions associated with the irregular compensation within
5.6five business days of receipt.
5.7(c) A person covered by the unclassified program under subdivision 1, paragraph
5.8(c), clause (19), and this subdivision is not eligible for a transfer of unclassified program
5.9coverage to the general state employees retirement plan under subdivision 3.
5.10 Sec. 5. Minnesota Statutes 2010, section 352D.04, subdivision 2, is amended to read:
5.11 Subd. 2. Contribution rates. (a) The money used to purchase shares under this
5.12section is the employee and employer contributions provided in this subdivision.
5.13 (b) The employee contribution is an amount equal to the percent of salary specified
5.14in section
5.15 (c) The employer contribution is an amount equal to six percent of salary.
5.16 (d) For members of the legislature, the contributions under this subdivision also must
5.17be made on per diem payments received during a regular or special legislative session, but
5.18may not be made on per diem payments received outside of a regular or special legislative
5.19session, on the additional compensation attributable to a leadership position under section
5.21living expense payments under section
5.22 (e) For a judge who is a member of the unclassified plan under section
5.23subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
5.24of salary, and there is no employer contribution.
5.25(f) For a person covered by the unclassified program under section 352D.02,
5.26subdivision 1, paragraph (c), clause (19), the employee contribution is an amount equal
5.27to the percent of the irregular compensation as defined in section 356.307 that is the
5.28employee or member contribution rate applicable to the person's defined benefit retirement
5.29plan coverage, and the employer contribution is an amount equal to the percent of the
5.30irregular compensation as defined in section 356.307 that is the employer contribution rate
5.31applicable to the person's defined benefit retirement plan coverage.
5.32(g) These contributions must be made in the manner provided in section
5.33subdivisions 4, 5, and 6.
5.34 Sec. 6. Minnesota Statutes 2010, section 353.01, subdivision 10, is amended to read:
6.1 Subd. 10. Salary. (a) Subject to the limitations of section
6.2 (1) the periodic compensation of a public employee, before deductions for deferred
6.3compensation, supplemental retirement plans, or other voluntary salary reduction
6.4programs, and also means "wages" and includes net income from fees;
6.5 (2) for a public employee who is covered by a supplemental retirement plan under
6.6section
6.7be made by the employer, the contribution to the applicable supplemental retirement plan
6.8when an agreement between the parties establishes that the contribution will either result
6.9in a mandatory reduction of employees' wages through payroll withholdings, or be made
6.10in lieu of an amount that would otherwise be paid as wages; and
6.11 (3) for a public employee who has prior service covered by a local police or
6.12firefighters relief association that has consolidated with the Public Employees Retirement
6.13Association or to which section
6.14under the public employees police and fire fund benefit plan under section
6.16upon which member contributions to the special fund of the relief association were made
6.17prior to the effective date of the consolidation as specified by law and by bylaw provisions
6.18governing the relief association on the date of the initiation of the consolidation procedure
6.19and the actual periodic compensation of the public employee after the effective date of
6.20consolidation.
6.21 (b) Salary does not mean:
6.22 (1) the fees paid to district court reporters, unused annual vacation or sick leave
6.23payments, in lump-sum or periodic payments, severance payments, reimbursement of
6.24expenses, lump-sum settlements not attached to a specific earnings period, or workers'
6.25compensation payments;
6.26 (2) employer-paid amounts used by an employee toward the cost of insurance
6.27coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
6.28care expense accounts, day care expenses, or any payments in lieu of any employer-paid
6.29group insurance coverage, including the difference between single and family rates that
6.30may be paid to a member with single coverage and certain amounts determined by the
6.31executive director to be ineligible;
6.32 (3) the amount equal to that which the employing governmental subdivision would
6.33otherwise pay toward single or family insurance coverage for a covered employee when,
6.34through a contract or agreement with some but not all employees, the employer:
6.35 (i) discontinues, or for new hires does not provide, payment toward the cost of the
6.36employee's selected insurance coverages under a group plan offered by the employer;
7.1 (ii) makes the employee solely responsible for all contributions toward the cost of
7.2the employee's selected insurance coverages under a group plan offered by the employer,
7.3including any amount the employer makes toward other employees' selected insurance
7.4coverages under a group plan offered by the employer; and
7.5 (iii) provides increased salary rates for employees who do not have any
7.6employer-paid group insurance coverages;
7.7 (4) except as provided in section
7.8volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision
7.935 or 36;
7.10 (5) the amount of compensation that exceeds the limitation provided in section
7.12 (6) amounts paid by a federal or state grant for which the grant specifically
7.13prohibits grant proceeds from being used to make pension plan contributions, unless the
7.14contributions to the plan are made from sources other than the federal or state grant
7.15(7) for members of the general employees retirement plan and the local government
7.16correctional retirement plan, the amount of irregular compensation as defined in
7.17section 356.307 on which employee and employer contributions were transmitted to
7.18the unclassified state employees retirement program as provided in section 352D.02,
7.19subdivision 7.
7.20 (c) Amounts provided to an employee by the employer through a grievance
7.21proceeding or a legal settlement are salary only if the settlement is reviewed by the
7.22executive director and the amounts are determined by the executive director to be
7.23consistent with paragraph (a) and prior determinations.
7.24 Sec. 7. Minnesota Statutes 2010, section 353.27, subdivision 4, is amended to read:
7.25 Subd. 4. Employer reporting requirements; contributions; member status.
7.26(a) A representative authorized by the head of each department shall deduct employee
7.27contributions from the salary of each public employee who qualifies for membership in
7.28the general employees retirement plan of the Public Employees Retirement Association
7.29or in the public employees police and fire retirement plan under this chapter or chapter
7.30353D or 353E at the rate under section
7.31is applicable, that is in effect on the date the salary is paid. The employer representative
7.32must also remit payment in a manner prescribed by the executive director for the
7.33aggregate amount of the employee contributions and the required employer contributions
7.34to be received by the association within 14 calendar days after each pay date. If the
7.35payment is less than the amount required, the employer must pay the shortage amount to
8.1the association and collect reimbursement of any employee contribution shortage paid
8.2on behalf of a member through subsequent payroll withholdings from the wages of the
8.3employee. Payment of shortages in employee contributions and associated employer
8.4contributions, if applicable, must include interest at the rate specified in section
8.5subdivision 5
8.6due under this section.
8.7(b) The head of each department or the person's designee shall submit for each
8.8pay period to the association a salary deduction report in the format prescribed by the
8.9executive director. The report must be received by the association within 14 calendar
8.10days after each pay date or the employer may be assessed a fine of $5 per calendar day
8.11until the association receives the required data. Data required as part of salary deduction
8.12reporting must include, but are not limited to:
8.13(1) the legal names and Social Security numbers of employees who are members;
8.14(2) the amount of each employee's salary deduction;
8.15(3) the total amount of compensation;
8.16(4) the amount of salary defined in section
8.17pay period from which each deduction was made and the salary amount earned by a
8.18reemployed annuitant under section
8.19by a disabled member under section
8.20(5) the amount of irregular compensation;
8.21
8.22actual payment; and
8.23
8.24executive director.
8.25(c) Employers must furnish the data required for enrollment for each new or
8.26reinstated employee who qualifies for membership in the general employees retirement
8.27plan of the Public Employees Retirement Association or in the public employees police
8.28and fire retirement plan in the format prescribed by the executive director. The required
8.29enrollment data on new members must be submitted to the association prior to or
8.30concurrent with the submission of the initial employee salary deduction. Also, the
8.31employer shall report to the association all member employment status changes, such as
8.32leaves of absence, terminations, and death, and shall report the effective dates of those
8.33changes, on an ongoing basis for the payroll cycle in which they occur. If an employer
8.34fails to comply with the reporting requirements under this paragraph, the executive
8.35director may assess a fine of $25 for each failure if the association staff has notified the
9.1employer of the noncompliance and attempted to obtain the missing data or form from the
9.2employer for a period of more than three months.
9.3(d) The employer shall furnish data, forms, and reports as may be required by
9.4the executive director for proper administration of the retirement system. Before
9.5implementing new or different computerized reporting requirements, the executive
9.6director shall give appropriate advance notice to governmental subdivisions to allow time
9.7for system modifications.
9.8(e) Notwithstanding paragraph (a), the executive director may provide for less
9.9frequent reporting and payments for small employers.
9.10(f) The executive director may establish reporting procedures and methods as
9.11required to review compliance by employers with the salary and contribution reporting
9.12requirements in this chapter. A review of the payroll records of a participating employer
9.13may be conducted by the association on a periodic basis or as a result of concerns known
9.14to exist within a governmental subdivision. An employer under review must extract
9.15requested data and provide records to the association after receiving reasonable advanced
9.16notice. Failure to provide requested information or materials will result in the employer
9.17being liable to the association for any expenses associated with a field audit, which may
9.18include staff salaries, administrative expenses, and travel expenses.
9.19 Sec. 8. Minnesota Statutes 2010, section 354.05, subdivision 35, is amended to read:
9.20 Subd. 35. Salary. (a) Subject to the limitations of section
9.21means the periodic compensation, upon which member contributions are required before
9.22deductions for deferred compensation, supplemental retirement plans, or other voluntary
9.23salary reduction programs.
9.24(b) "Salary" does not mean:
9.25(1) lump-sum annual leave payments;
9.26(2) lump-sum wellness and sick leave payments;
9.27(3) employer-paid amounts used by an employee toward the cost of insurance
9.28coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
9.29care expense accounts, day care expenses, or any payments in lieu of any employer-paid
9.30group insurance coverage, including the difference between single and family rates that
9.31may be paid to a member with single coverage and certain amounts determined by the
9.32executive director to be ineligible;
9.33(4) any form of payment made in lieu of any other employer-paid fringe benefit or
9.34expense;
9.35(5) any form of severance payments;
10.1(6) workers' compensation payments;
10.2(7) disability insurance payments, including self-insured disability payments;
10.3(8) payments to school principals and all other administrators for services that are
10.4in addition to the normal work year contract if these additional services are performed
10.5on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or
10.6any other nonduty day;
10.7(9) payments under section
10.8(10) payments made under section
10.9sick leave that are accumulated under the provisions of a uniform school district policy
10.10that applies equally to all similarly situated persons in the district
10.11(11) amounts of irregular compensation as defined in section 356.307 on which
10.12employee and employer contributions were transmitted to the unclassified state employees
10.13retirement program as provided in section 352D.02, subdivision 7.
10.14(c) Amounts provided to an employee by the employer through a grievance
10.15proceeding or a legal settlement are salary only if the settlement is reviewed by the
10.16executive director and the amounts are determined by the executive director to be
10.17consistent with paragraph (a) and prior determinations.
10.18 Sec. 9. Minnesota Statutes 2010, section 354.52, subdivision 4b, is amended to read:
10.19 Subd. 4b. Payroll cycle reporting requirements. An employing unit shall provide
10.20the following data to the association for payroll warrants on an ongoing basis within 14
10.21calendar days after the date of the payroll warrant in a format prescribed by the executive
10.22director:
10.23(1) association member number;
10.24(2) employer-assigned employee number;
10.25(3) Social Security number;
10.26(4) amount of each salary deduction;
10.27(5) amount of total compensation;
10.28(6) amount of salary as defined in section
10.29deduction was made;
10.30(7) amount of irregular compensation;
10.31
10.32
10.33
10.34of actual payment;
10.35
11.1
11.2employer contributions;
11.3
11.4
11.5 Sec. 10. Minnesota Statutes 2010, section 354A.011, subdivision 24, is amended to
11.6read:
11.7 Subd. 24. Salary; covered salary. (a) Subject to the limitations of section
11.8"salary" or "covered salary" means the entire compensation, upon which member
11.9contributions are required and made, that is paid to a teacher before deductions for
11.10deferred compensation, supplemental retirement plans, or other voluntary salary reduction
11.11programs.
11.12(b) "Salary" does not mean:
11.13(1) lump-sum annual leave payments;
11.14(2) lump-sum wellness and sick leave payments;
11.15(3) employer-paid amounts used by an employee toward the cost of insurance
11.16coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
11.17care expense accounts, day care expenses, or any payments in lieu of any employer-paid
11.18group insurance coverage, including the difference between single and family rates that
11.19may be paid to a member with single coverage, and certain amounts determined by the
11.20executive secretary or director to be ineligible;
11.21(4) any form of payment that is made in lieu of any other employer-paid fringe
11.22benefit or expense;
11.23(5) any form of severance payments;
11.24(6) workers' compensation payments;
11.25(7) disability insurance payments, including self-insured disability payments;
11.26(8) payments to school principals and all other administrators for services that are
11.27in addition to the normal work year contract if these additional services are performed
11.28on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or
11.29any other nonduty day;
11.30(9) payments under section
11.31(10) payments made under section
11.32sick leave that are accumulated under the provisions of a uniform school district policy
11.33that applies equally to all similarly situated persons in the district
12.1(11) amounts of irregular compensation as defined in section 356.307 on which
12.2employee and employer contributions were transmitted to the unclassified state employees
12.3retirement program as provided in section 352D.02, subdivision 7.
12.4(c) Amounts provided to an employee by the employer through a grievance
12.5proceeding or a legal settlement are salary only if the settlement is reviewed by the
12.6executive director and the amounts are determined by the executive director to be
12.7consistent with paragraph (a) and prior determinations.
12.8 Sec. 11. Minnesota Statutes 2010, section 354A.12, subdivision 5, is amended to read:
12.9 Subd. 5. Reporting and remittance requirements. (a) Each employing unit shall
12.10provide to the appropriate teachers retirement fund association the following member
12.11data regarding all new or returning employees before the employee's first payroll date in
12.12a format approved by the executive secretary or director. Data changes and the dates of
12.13those changes must be reported to the association on an ongoing basis for the payroll cycle
12.14in which they occur. Data on the member includes:
12.15(1) legal name, address, date of birth, association member number,
12.16employer-assigned employee number, and Social Security number;
12.17(2) association status, including, but not limited to, basic, coordinated, exempt
12.18annuitant, exempt technical college teacher, or exempt independent contractor or
12.19consultant;
12.20(3) employment status, including, but not limited to, full time, part time, intermittent,
12.21substitute, or part-time mobility;
12.22(4) employment position, including, but not limited to, teacher, superintendent,
12.23principal, administrator, or other;
12.24(5) employment activity, including, but not limited to, hire, termination, resumption
12.25of employment, disability, or death;
12.26(6) leaves of absence; and
12.27(7) other information as may be required by the association.
12.28(b) Each employing unit shall provide the following data to the appropriate
12.29association for each payroll cycle in a format approved by the executive secretary or
12.30director:
12.31(1) an association member number;
12.32(2) employer-assigned employee number;
12.33(3) Social Security number;
12.34(4) amount of each salary deduction;
12.35(5) amount of total compensation;
13.1(6) amount of salary as defined in section
13.2each deduction was made;
13.3(7) amount of irregular compensation;
13.4
13.5
13.6
13.7of actual payment;
13.8
13.9
13.10additional contributions; and
13.11
13.12(c) On or before August 1 each year, each employing unit must report to the
13.13appropriate association giving an itemized summary for the preceding 12 months of the
13.14total amount that was withheld from the salaries of teachers for deductions and all other
13.15information required by the association.
13.16(d) An employing unit that does not comply with the reporting requirements
13.17under this section shall pay a fine of $5 per calendar day until the association receives
13.18the required member data.
13.19(e) An employing unit shall remit all amounts that are due to the association and
13.20shall furnish for each pay period an itemized statement indicating the total amount that is
13.21due and is transmitted with any other information required by the association. All amounts
13.22due and other employer obligations that are not remitted within 30 days of notification
13.23by the association must be certified by the director or secretary to the commissioner of
13.24management and budget, who shall deduct the amount from any state aid or appropriation
13.25amount applicable to the employing unit and shall transmit the deducted amount to the
13.26applicable association.
13.27 Sec. 12. [356.307] IRREGULAR COMPENSATION.
13.28 Subdivision 1. Definition. For purposes of the defined benefit retirement plans
13.29listed in subdivision 2, "irregular compensation" means compensation paid for overtime
13.30services, shift differential, extracurricular services, extra duty services, uniform
13.31allowances, employment incentives, bonuses, payments in lieu of leave time, nonduty day
13.32services, recognition rewards, and payments in lieu of insurance coverage.
13.33 Subd. 2. Applicable retirement plans. The definition in subdivision 1 is applicable
13.34to the following defined benefit retirement plans:
14.1(1) general state employees retirement plan of the Minnesota State Retirement
14.2System;
14.3(2) correctional state employees retirement plan of the Minnesota State Retirement
14.4System;
14.5(3) transportation department pilots retirement plan;
14.6(4) military affairs department personnel retirement plan;
14.7(5) state fire marshal division fire/arson investigator retirement plan;
14.8(6) general employees retirement plan of the Public Employees Retirement
14.9Association;
14.10(7) local government correctional service retirement plan of the Public Employees
14.11Retirement Association;
14.12(8) Teachers Retirement Association;
14.13(9) Duluth Teachers Retirement Fund Association;
14.14(10) St. Paul Teachers Retirement Fund Association; and
14.15(11) judges retirement plan.
14.16 Sec. 13. Minnesota Statutes 2010, section 490.121, is amended by adding a subdivision
14.17to read:
14.18 Subd. 21g. Salary. "Salary" has the same meaning as the definition of the term in
14.19section 352.01, subdivision 13.
14.20 Sec. 14. Minnesota Statutes 2010, section 490.124, is amended by adding a subdivision
14.21to read:
14.22 Subd. 15. Compensation and deduction amount requirements. The state court
14.23administrator shall comply with the compensation and deduction reporting requirements
14.24of section 352.04, subdivision 4, paragraph (c).
14.25 Sec. 15. EFFECTIVE DATE.
14.26Sections 1 to 14 are effective July 1, 2012, and apply to compensation paid and
14.27deductions made beginning with the first full payroll period beginning after June 30, 2012.
