Bill Text: MN SF272 | 2013-2014 | 88th Legislature | Introduced
Bill Title: State patrol retirement plan modifications
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-06 - Referred to State and Local Government [SF272 Detail]
Download: Minnesota-2013-SF272-Introduced.html
1.2relating to retirement; State Patrol retirement plan; increasing member and
1.3employer contributions; increasing vesting to ten years for new hires; capping
1.4allowable service for computing annuities; reducing postretirement adjustments;
1.5amending Minnesota Statutes 2012, sections 352B.02, subdivisions 1a, 1c;
1.6352B.08, subdivisions 1, 2, 2a; 352B.10, subdivision 5; 352B.11, subdivision 2b;
1.7356.415, subdivision 1e; repealing Minnesota Statutes 2012, section 352B.11,
1.8subdivision 2c.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 352B.02, subdivision 1a, is amended to
1.11read:
1.12 Subd. 1a. Member contributions. (a) The member contribution is the following
1.13percentage of the member's salary:
1.19(b) These contributions must be made by deduction from salary as provided in
1.20section352.04, subdivision 4 .
1.21EFFECTIVE DATE.This section is effective July 1, 2013.
1.22 Sec. 2. Minnesota Statutes 2012, section 352B.02, subdivision 1c, is amended to read:
1.23 Subd. 1c. Employer contributions. (a) In addition to member contributions,
1.24department heads shall pay a sum equal to the specified percentage of the salary upon which
1.25deductions were made, which constitutes the employer contribution to the fund as follows:
2.6(b) Department contributions must be paid out of money appropriated to departments
2.7for this purpose.
2.8EFFECTIVE DATE.This section is effective July 1, 2013.
2.9 Sec. 3. Minnesota Statutes 2012, section 352B.08, subdivision 1, is amended to read:
2.10 Subdivision 1. Eligibility; when to apply; accrual. (a) Every member who is
2.11credited with three or more years of allowable service if first employed before July 1,2010
2.12 2013, or with at leastfive ten years of allowable service if first employed after June 30,
2.132010 2013, is entitled to separate from state service and upon becoming 50 years old, is
2.14entitled to receive a life annuity, upon separation from state service.
2.15(b) Members must apply for an annuity in a form and manner prescribed by the
2.16executive director.
2.17(c) No application may be made more than 90 days before the date the member is
2.18eligible to retire by reason of both age and service requirements.
2.19(d) An annuity begins to accrue no earlier than 180 days before the date the
2.20application is filed with the executive director.
2.21EFFECTIVE DATE.This section is effective July 1, 2013.
2.22 Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
2.23 Subd. 2. Normal retirement annuity. (a) The annuity must be paid in monthly
2.24installments. The annuity shall be equal to the amount determined by multiplying
2.25the average monthly salary of the member by the percent specified in section356.315,
2.26subdivision 6 , for each year of allowable service and pro rata prorated for additional
2.27completed months of allowable service, unless restricted under paragraph (b).
2.28(b) Allowable service in excess of 33 years must not be used in computing the
2.29annuity. This restriction does not apply to any member who has at least 28 years of
2.30allowable service before July 1, 2013.
2.31(c) When the annuity commences, any member contributions attributable to
2.32allowable service not used to compute the annuity due to the restrictions in paragraph (b)
2.33must be refunded using procedures specified in section 352B.11, subdivision 1.
3.1EFFECTIVE DATE.This section is effective July 1, 2013.
3.2 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2a, is amended to read:
3.3 Subd. 2a. Early retirement. Any member who has become at least 50 years old
3.4and who has at least three years of allowable service if first employed before July 1,
3.52010 2013, or who has at least five ten years of allowable service if first employed after
3.6June 30,2010 2013, is entitled upon application to a reduced retirement annuity equal
3.7to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for
3.8each month that the member is under age 55 at the time of retirement, iffirst employed
3.9 the effective date of retirement is before July 1,2010, or reduced by two-tenths of one
3.10percent 2015. If the effective date of retirement is after June 30, 2015, the reduction is
3.110.34 percent for each month that the member is under age 55 at the time of retirementif
3.12first employed after June 30, 2010.
3.13EFFECTIVE DATE.This section is effective July 1, 2013.
3.14 Sec. 6. Minnesota Statutes 2012, section 352B.10, subdivision 5, is amended to read:
3.15 Subd. 5. Optional annuity. A disabilitant may elect, in lieu of spousal survivorship
3.16coverage under section352B.11 , subdivisions subdivision 2b and 2c, the normal disability
3.17benefit or an optional annuity as provided in section352B.08, subdivision 3 . The choice
3.18of an optional annuity must be made in writing, on a form prescribed by the executive
3.19director, and must be made before the commencement of the payment of the disability
3.20benefit, or within 90 days before reaching age 55 or before reaching the five-year
3.21anniversary of the effective date of the disability benefit, whichever is later. The optional
3.22annuity is effective on the date on which the disability benefit begins to accrue, or the
3.23month following the attainment of age 55 or following the five-year anniversary of the
3.24effective date of the disability benefit, whichever is later.
3.25 Sec. 7. Minnesota Statutes 2012, section 352B.11, subdivision 2b, is amended to read:
3.26 Subd. 2b. Surviving spouse benefiteligibility. (a) If an active member with
3.27three or more years of allowable service if first employed before July 1,2010 2013, or
3.28with at least five years of allowable service if first employed after June 30,2010 2013,
3.29dies before attaining age 55, the surviving spouse is entitled tothe a benefit specified in
3.30subdivision 2c, paragraph (b) for life equal to 50 percent of the average monthly salary
3.31of the deceased member. On the first of the month next following the date on which the
3.32deceased member would have attained exact age 55, in lieu of continued receipt of the
3.33prior benefit, the surviving spouse is eligible to commence receipt of the second half of
4.1a 100 percent joint and survivor annuity if this provides a larger benefit. The joint and
4.2survivor annuity must be computed assuming the exact age 55 for the deceased member
4.3and the age of the surviving spouse on the date of death.
4.4(b) If an active member with less than three years of allowable service if first
4.5employed before July 1,2010 2013, or with fewer than five years of allowable service if
4.6first employed after June 30,2010 2013, dies at any age, the surviving spouse is entitled to
4.7receivethe a benefit specified in subdivision 2c, paragraph (c) for life equal to 50 percent
4.8of the average monthly salary of the deceased member.
4.9(c) If an active member with three or more years of allowable service if first
4.10employed before July 1,2010 2013, or with at least five years of allowable service if first
4.11employed after June 30,2010 2013, dies on or after attaining exact age 55, the surviving
4.12spouse is entitled to receivethe benefits specified in subdivision 2c, paragraph (d) a benefit
4.13for life equal to 50 percent of the average monthly salary of the deceased member, or the
4.14second half of a 100 percent joint and survivor annuity, whichever is larger. The joint and
4.15survivor annuity must be computed using the age of the deceased member on the date of
4.16death and the age of the surviving spouse on that same date.
4.17(d) If a disabilitant dies while receiving a disability benefit under section352B.10
4.18or before the benefit under that section commenced, and an optional annuity was not
4.19elected under section352B.10, subdivision 5 , the surviving spouse is entitled to receive
4.20the a benefit specified in subdivision 2c, paragraph (b) for life equal to 50 percent of the
4.21average monthly salary of the deceased member. On the first of the month next following
4.22the date on which the deceased member would have attained exact age 55, in lieu of
4.23continued receipt of the prior benefit, the surviving spouse is eligible to commence receipt
4.24of the second half of a 100 percent joint and survivor annuity if this provides a larger
4.25benefit. The joint and survivor annuity must be computed assuming the exact age 55 for
4.26the deceased member and the age of the surviving spouse on the date of death.
4.27(e) If a former member with three or more years of allowable service if first employed
4.28before July 1,2010 2013, or with at least five years of allowable service if first employed
4.29after June 30,2010 2013, who terminated from service and has not received a refund or
4.30commenced receipt of any other benefit provided by this chapter, dies, the surviving
4.31spouse is entitled to receivethe as a benefit specified in subdivision 2c, paragraph (e) the
4.32second half of a 100 percent joint and survivor annuity, commencing on the first of the
4.33month next following the deceased member's date of death, or the first of the month next
4.34following the date on which the deceased member would have attained age 55, whichever
4.35is later. The joint and survivor annuity must be computed using the age of the deceased
4.36member on the date of death and the age of the surviving spouse on that same date.
5.1(f) If a former member with less than three years of allowable service if first
5.2employed before July 1,2010 2013, or with fewer than five years of allowable service if
5.3first employed after June 30,2010 2013, who terminated from service and has not received
5.4a refund or commenced receipt of any other benefit, if applicable, provided by this chapter,
5.5dies, the surviving spouseis entitled to receive the refund specified in subdivision 2c,
5.6paragraph (f) or, if none, the children or, if none, the deceased member's estate is entitled to
5.7a refund of the employee contributions plus interest computed as specified in subdivision 1.
5.8EFFECTIVE DATE.This section is effective July 1, 2013.
5.9 Sec. 8. Minnesota Statutes 2012, section 356.415, subdivision 1e, is amended to read:
5.10 Subd. 1e. Annual postretirement adjustments; State Patrol retirement plan.
5.11(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
5.12retirement plan are entitled to a postretirement adjustment annually on January 1, as
5.13follows:
5.14(1) a postretirement increase of1.5 one percent must be applied each year, effective
5.15on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
5.16who has been receiving an annuity or a benefit for at least 18 full months before the
5.17January 1 increase; and
5.18(2) for each annuitant or benefit recipient who has been receiving an annuity or a
5.19benefit for at least six full months, an annual postretirement increase of 1/12 of1.5 one
5.20percent for each month that the person has been receiving an annuity or benefit must be
5.21applied, effective January 1, following the calendar year in which the person has been
5.22retired for at least six months, but has been retired for less than 18 months.
5.23(b) The increases provided by this subdivision commence on January 1,2011
5.24 2014. Increases underthis subdivision paragraph (a) for the State Patrol retirement plan
5.25terminate on December 31 of the calendar year in which the actuarial valuation prepared
5.26by the approved actuary under sections356.214 and
356.215 and the standards for
5.27actuarial work promulgated by the Legislative Commission on Pensions and Retirement
5.28indicates that the market value of assets of the retirement plan equals or exceeds90
5.29 85 percent of the actuarial accrued liability of the retirement plan and increases under
5.30subdivision 1 paragraph (c) recommence after that date.
5.31(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
5.32Patrol retirement plan are entitled to a postretirement adjustment annually on January
5.331, as follows:
5.34(1) a postretirement increase of 1.5 percent must be applied each year, effective on
5.35January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
6.1has been receiving an annuity or a benefit for at least 18 full months before the January 1
6.2increase; and
6.3(2) for each annuitant or benefit recipient who has been receiving an annuity or a
6.4benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent
6.5for each month that the person has been receiving an annuity or benefit must be applied,
6.6effective January 1, following the calendar year in which the person has been retired for at
6.7least six months, but has been retired for less than 18 months.
6.8(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
6.9December 31 of the calendar year in which the actuarial valuation prepared by the approved
6.10actuary under sections356.214 and
356.215 and the standards for actuarial work adopted by
6.11the Legislative Commission on Pensions and Retirement indicates that the market value of
6.12assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability
6.13of the retirement plan and increases under subdivision 1 recommence after that date.
6.14(c) (e) An increase in annuity or benefit payments under this subdivision must be
6.15made automatically unless written notice is filed by the annuitant or benefit recipient
6.16with the executive director of the applicable covered retirement plan requesting that the
6.17increase not be made.
6.18EFFECTIVE DATE.This section is effective July 1, 2013.
6.19 Sec. 9. REPEALER.
6.20Minnesota Statutes 2012, section 352B.11, subdivision 2c, is repealed.
6.21EFFECTIVE DATE.This section is effective July 1, 2013.
1.3employer contributions; increasing vesting to ten years for new hires; capping
1.4allowable service for computing annuities; reducing postretirement adjustments;
1.5amending Minnesota Statutes 2012, sections 352B.02, subdivisions 1a, 1c;
1.6352B.08, subdivisions 1, 2, 2a; 352B.10, subdivision 5; 352B.11, subdivision 2b;
1.7356.415, subdivision 1e; repealing Minnesota Statutes 2012, section 352B.11,
1.8subdivision 2c.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 352B.02, subdivision 1a, is amended to
1.11read:
1.12 Subd. 1a. Member contributions. (a) The member contribution is the following
1.13percentage of the member's salary:
1.19(b) These contributions must be made by deduction from salary as provided in
1.20section
1.21EFFECTIVE DATE.This section is effective July 1, 2013.
1.22 Sec. 2. Minnesota Statutes 2012, section 352B.02, subdivision 1c, is amended to read:
1.23 Subd. 1c. Employer contributions. (a) In addition to member contributions,
1.24department heads shall pay a sum equal to the specified percentage of the salary upon which
1.25deductions were made, which constitutes the employer contribution to the fund as follows:
2.6(b) Department contributions must be paid out of money appropriated to departments
2.7for this purpose.
2.8EFFECTIVE DATE.This section is effective July 1, 2013.
2.9 Sec. 3. Minnesota Statutes 2012, section 352B.08, subdivision 1, is amended to read:
2.10 Subdivision 1. Eligibility; when to apply; accrual. (a) Every member who is
2.11credited with three or more years of allowable service if first employed before July 1,
2.12 2013, or with at least
2.13
2.14entitled to receive a life annuity, upon separation from state service.
2.15(b) Members must apply for an annuity in a form and manner prescribed by the
2.16executive director.
2.17(c) No application may be made more than 90 days before the date the member is
2.18eligible to retire by reason of both age and service requirements.
2.19(d) An annuity begins to accrue no earlier than 180 days before the date the
2.20application is filed with the executive director.
2.21EFFECTIVE DATE.This section is effective July 1, 2013.
2.22 Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
2.23 Subd. 2. Normal retirement annuity. (a) The annuity must be paid in monthly
2.24installments. The annuity shall be equal to the amount determined by multiplying
2.25the average monthly salary of the member by the percent specified in section
2.26subdivision 6
2.27completed months of allowable service, unless restricted under paragraph (b).
2.28(b) Allowable service in excess of 33 years must not be used in computing the
2.29annuity. This restriction does not apply to any member who has at least 28 years of
2.30allowable service before July 1, 2013.
2.31(c) When the annuity commences, any member contributions attributable to
2.32allowable service not used to compute the annuity due to the restrictions in paragraph (b)
2.33must be refunded using procedures specified in section 352B.11, subdivision 1.
3.1EFFECTIVE DATE.This section is effective July 1, 2013.
3.2 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2a, is amended to read:
3.3 Subd. 2a. Early retirement. Any member who has become at least 50 years old
3.4and who has at least three years of allowable service if first employed before July 1,
3.5
3.6June 30,
3.7to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for
3.8each month that the member is under age 55 at the time of retirement, if
3.9 the effective date of retirement is before July 1,
3.10
3.110.34 percent for each month that the member is under age 55 at the time of retirement
3.12
3.13EFFECTIVE DATE.This section is effective July 1, 2013.
3.14 Sec. 6. Minnesota Statutes 2012, section 352B.10, subdivision 5, is amended to read:
3.15 Subd. 5. Optional annuity. A disabilitant may elect, in lieu of spousal survivorship
3.16coverage under section
3.17benefit or an optional annuity as provided in section
3.18of an optional annuity must be made in writing, on a form prescribed by the executive
3.19director, and must be made before the commencement of the payment of the disability
3.20benefit, or within 90 days before reaching age 55 or before reaching the five-year
3.21anniversary of the effective date of the disability benefit, whichever is later. The optional
3.22annuity is effective on the date on which the disability benefit begins to accrue, or the
3.23month following the attainment of age 55 or following the five-year anniversary of the
3.24effective date of the disability benefit, whichever is later.
3.25 Sec. 7. Minnesota Statutes 2012, section 352B.11, subdivision 2b, is amended to read:
3.26 Subd. 2b. Surviving spouse benefit
3.27three or more years of allowable service if first employed before July 1,
3.28with at least five years of allowable service if first employed after June 30,
3.29dies before attaining age 55, the surviving spouse is entitled to
3.30
3.31of the deceased member. On the first of the month next following the date on which the
3.32deceased member would have attained exact age 55, in lieu of continued receipt of the
3.33prior benefit, the surviving spouse is eligible to commence receipt of the second half of
4.1a 100 percent joint and survivor annuity if this provides a larger benefit. The joint and
4.2survivor annuity must be computed assuming the exact age 55 for the deceased member
4.3and the age of the surviving spouse on the date of death.
4.4(b) If an active member with less than three years of allowable service if first
4.5employed before July 1,
4.6first employed after June 30,
4.7receive
4.8of the average monthly salary of the deceased member.
4.9(c) If an active member with three or more years of allowable service if first
4.10employed before July 1,
4.11employed after June 30,
4.12spouse is entitled to receive
4.13for life equal to 50 percent of the average monthly salary of the deceased member, or the
4.14second half of a 100 percent joint and survivor annuity, whichever is larger. The joint and
4.15survivor annuity must be computed using the age of the deceased member on the date of
4.16death and the age of the surviving spouse on that same date.
4.17(d) If a disabilitant dies while receiving a disability benefit under section
4.18or before the benefit under that section commenced, and an optional annuity was not
4.19elected under section
4.20
4.21average monthly salary of the deceased member. On the first of the month next following
4.22the date on which the deceased member would have attained exact age 55, in lieu of
4.23continued receipt of the prior benefit, the surviving spouse is eligible to commence receipt
4.24of the second half of a 100 percent joint and survivor annuity if this provides a larger
4.25benefit. The joint and survivor annuity must be computed assuming the exact age 55 for
4.26the deceased member and the age of the surviving spouse on the date of death.
4.27(e) If a former member with three or more years of allowable service if first employed
4.28before July 1,
4.29after June 30,
4.30commenced receipt of any other benefit provided by this chapter, dies, the surviving
4.31spouse is entitled to receive
4.32second half of a 100 percent joint and survivor annuity, commencing on the first of the
4.33month next following the deceased member's date of death, or the first of the month next
4.34following the date on which the deceased member would have attained age 55, whichever
4.35is later. The joint and survivor annuity must be computed using the age of the deceased
4.36member on the date of death and the age of the surviving spouse on that same date.
5.1(f) If a former member with less than three years of allowable service if first
5.2employed before July 1,
5.3first employed after June 30,
5.4a refund or commenced receipt of any other benefit, if applicable, provided by this chapter,
5.5dies, the surviving spouse
5.6
5.7a refund of the employee contributions plus interest computed as specified in subdivision 1.
5.8EFFECTIVE DATE.This section is effective July 1, 2013.
5.9 Sec. 8. Minnesota Statutes 2012, section 356.415, subdivision 1e, is amended to read:
5.10 Subd. 1e. Annual postretirement adjustments; State Patrol retirement plan.
5.11(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
5.12retirement plan are entitled to a postretirement adjustment annually on January 1, as
5.13follows:
5.14(1) a postretirement increase of
5.15on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
5.16who has been receiving an annuity or a benefit for at least 18 full months before the
5.17January 1 increase; and
5.18(2) for each annuitant or benefit recipient who has been receiving an annuity or a
5.19benefit for at least six full months, an annual postretirement increase of 1/12 of
5.20percent for each month that the person has been receiving an annuity or benefit must be
5.21applied, effective January 1, following the calendar year in which the person has been
5.22retired for at least six months, but has been retired for less than 18 months.
5.23(b) The increases provided by this subdivision commence on January 1,
5.24 2014. Increases under
5.25terminate on December 31 of the calendar year in which the actuarial valuation prepared
5.26by the approved actuary under sections
5.27actuarial work promulgated by the Legislative Commission on Pensions and Retirement
5.28indicates that the market value of assets of the retirement plan equals or exceeds
5.29 85 percent of the actuarial accrued liability of the retirement plan and increases under
5.30
5.31(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
5.32Patrol retirement plan are entitled to a postretirement adjustment annually on January
5.331, as follows:
5.34(1) a postretirement increase of 1.5 percent must be applied each year, effective on
5.35January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
6.1has been receiving an annuity or a benefit for at least 18 full months before the January 1
6.2increase; and
6.3(2) for each annuitant or benefit recipient who has been receiving an annuity or a
6.4benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent
6.5for each month that the person has been receiving an annuity or benefit must be applied,
6.6effective January 1, following the calendar year in which the person has been retired for at
6.7least six months, but has been retired for less than 18 months.
6.8(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
6.9December 31 of the calendar year in which the actuarial valuation prepared by the approved
6.10actuary under sections
6.11the Legislative Commission on Pensions and Retirement indicates that the market value of
6.12assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability
6.13of the retirement plan and increases under subdivision 1 recommence after that date.
6.14
6.15made automatically unless written notice is filed by the annuitant or benefit recipient
6.16with the executive director of the applicable covered retirement plan requesting that the
6.17increase not be made.
6.18EFFECTIVE DATE.This section is effective July 1, 2013.
6.19 Sec. 9. REPEALER.
6.20Minnesota Statutes 2012, section 352B.11, subdivision 2c, is repealed.
6.21EFFECTIVE DATE.This section is effective July 1, 2013.
