Bill Text: MN SF7 | 2011 | 87th Legislature 1st Special | Introduced
Bill Title: Omnibus pensions bill
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-07-19 - Senate: Introduction and first reading [SF7 Detail]
Download: Minnesota-2011-SF7-Introduced.html
1.2relating to retirement; including pre-May 1, 2011, hires of the Red Wing Port
1.3Authority in the general employees retirement plan of the Public Employees
1.4Retirement Association; providing an optional procedure for the correction of
1.5erroneous member deductions and employer contributions for the city of Duluth
1.6and the Duluth Airport Authority; revising postretirement adjustments, reducing
1.7the refund interest rate, eliminating interest on reemployed annuitant earnings
1.8limitation deferral amounts, and lowering the deferred annuity augmentation
1.9rate for the St. Paul Teachers Retirement Fund Association; increasing various
1.10vesting requirements for the Duluth Teachers Retirement Fund Association;
1.11revising the default retirement plan coverage determination for Minnesota
1.12State Colleges and Universities System employees; revising statutory salary
1.13scale and payroll growth actuarial assumptions; extending a financial report
1.14reporting deadline date for the 2010 fire state aid allocation; authorizing the
1.15use of special actuarial work in determining the 2009 and 2010 special fund
1.16financial requirements and minimum municipal obligations for the White Bear
1.17Lake Fire Department Relief Association; authorizing a purchase of allowable
1.18service credit or salary credit for public employees and teachers; providing for a
1.19voluntary consolidation of the Minneapolis Firefighters Relief Association and
1.20a voluntary consolidation of the Minneapolis Police Relief Association with
1.21Public Employees Retirement Association Police and Fire; making conforming
1.22changes;amending Minnesota Statutes 2010, sections 6.67; 13D.01, subdivision
1.231; 43A.316, subdivision 8; 69.77, subdivisions 1a, 4; 353.01, subdivisions
1.242a, 6, 16, by adding subdivisions; 353.03, by adding a subdivision; 353.65,
1.25subdivisions 1, 2, 3; 353.651, subdivision 1; 353.656, subdivisions 1, 1a, 3,
1.263a; 353.657, subdivision 1; 354A.011, by adding a subdivision; 354A.094,
1.27subdivision 3; 354A.29, by adding subdivisions; 354A.31, subdivisions 1, 5, 6;
1.28354A.35, subdivision 2; 354A.36, subdivision 1; 354A.37; 354B.21, subdivisions
1.291, 2, 3, 3a, 5, 6, by adding subdivisions; 356.215, subdivision 8; 356.216;
1.30356.401, subdivision 3; 356.465, subdivision 3; 356.47, subdivision 3; 423A.01,
1.31subdivision 3; 423A.02, subdivisions 1, 1b; 609B.455; 609B.460; proposing
1.32coding for new law in Minnesota Statutes, chapter 353; repealing Minnesota
1.33Statutes 2010, sections 354A.29, subdivision 3; 354B.21, subdivision 3c;
1.34354B.32; 423A.021; 423B.01; 423B.03; 423B.04; 423B.05; 423B.06; 423B.07;
1.35423B.08; 423B.09; 423B.10; 423B.11; 423B.12; 423B.13; 423B.14; 423B.15;
1.36423B.151; 423B.16; 423B.17; 423B.18; 423B.19; 423B.20; 423B.21; 423B.23;
1.37423C.01; 423C.02; 423C.03; 423C.04; 423C.05; 423C.06; 423C.07; 423C.08;
1.38423C.09; 423C.10; 423C.11; 423C.12; 423C.13; 423C.14; 423C.15; 423C.16.
2.1BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.4 Section 1. Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:
2.5 Subd. 2a. Included employees; mandatory membership. (a) Public employees
2.6whose salary exceeds $425 in any month and who are not specifically excluded under
2.7subdivision 2b or who have not been provided an option to participate under subdivision
2.82d, whether individually or by action of the governmental subdivision, must participate as
2.9members of the association with retirement coverage by the general employees retirement
2.10plan under this chapter, the public employees police and fire retirement plan under this
2.11chapter, or the local government correctional employees retirement plan under chapter
2.12353E, whichever applies. Membership commences as a condition of their employment on
2.13the first day of their employment or on the first day that the eligibility criteria are met,
2.14whichever is later. Public employees include but are not limited to:
2.15(1) persons whose salary meets the threshold in this paragraph from employment in
2.16one or more positions within one governmental subdivision;
2.17(2) elected county sheriffs;
2.18(3) persons who are appointed, employed, or contracted to perform governmental
2.19functions that by law or local ordinance are required of a public officer, including, but
2.20not limited to:
2.21(i) town and city clerk or treasurer;
2.22(ii) county auditor, treasurer, or recorder;
2.23(iii) city manager as defined in section353.028 who does not exercise the option
2.24provided under subdivision 2d; or
2.25(iv) emergency management director, as provided under section12.25 ;
2.26(4) physicians under section353D.01, subdivision 2 , who do not elect public
2.27employees defined contribution plan coverage under section353D.02, subdivision 2 ;
2.28(5) full-time employees of the Dakota County Agricultural Society;and
2.29(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
2.30Police Relief Association who are not excluded employees under subdivision 2b due
2.31to coverage by the relief association pension plan and who elected general employee
2.32retirement plan coverage before August 20, 2009; and
2.33(7) employees of the Red Wing Port Authority who were first employed by the
2.34Red Wing Port Authority before May 1, 2011, and who are not excluded employees
2.35under subdivision 2b.
3.1 (b) A public employee or elected official who was a member of the association on
3.2June 30, 2002, based on employment that qualified for membership coverage by the public
3.3employees retirement plan or the public employees police and fire plan under this chapter,
3.4or the local government correctional employees retirement plan under chapter 353E as of
3.5June 30, 2002, retains that membership for the duration of the person's employment in that
3.6position or incumbency in elected office. Except as provided in subdivision 28, the person
3.7shall participate as a member until the employee or elected official terminates public
3.8employment under subdivision 11a or terminates membership under subdivision 11b.
3.9(c) If the salary of an included public employee is less than $425 in any subsequent
3.10month, the member retains membership eligibility.
3.11(d) For the purpose of participation in the MERF division of the general employees
3.12retirement plan, public employees include employees who were members of the former
3.13Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
3.14members of the MERF division of the association.
3.15EFFECTIVE DATE.This section is effective the day following final enactment.
3.16 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 6, is amended to read:
3.17 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
3.18county, city, town, school district within this state, or a department, unit or instrumentality
3.19of state or local government, or any public body established under state or local
3.20authority that has a governmental purpose, is under public control, is responsible for the
3.21employment and payment of the salaries of employees of the entity, and receives a major
3.22portion of its revenues from taxation, fees, assessments or from other public sources.
3.23 (b) Governmental subdivision also means the Public Employees Retirement
3.24Association, the League of Minnesota Cities, the Association of Metropolitan
3.25Municipalities, charter schools formed under section124D.10 , service cooperatives
3.26exercising retirement plan participation under section123A.21, subdivision 5 , joint powers
3.27boards organized under section471.59, subdivision 11 , paragraph (a), family service
3.28collaboratives and children's mental health collaboratives organized under section471.59 ,
3.29subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
3.30are governmental units that otherwise qualify for retirement plan membership, public
3.31hospitals owned or operated by, or an integral part of, a governmental subdivision or
3.32governmental subdivisions, the Association of Minnesota Counties, the Minnesota
3.33Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
3.34Airports Commission, the University of Minnesota with respect to police officers covered
3.35by the public employees police and fire retirement plan, the Minneapolis Employees
4.1Retirement Fund for employment initially commenced after June 30, 1979, the Range
4.2Association of Municipalities and Schools, soil and water conservation districts, economic
4.3development authorities created or operating under sections469.090 to
469.108 , the Port
4.4Authority of the city of St. Paul, the Red Wing Port Authority, the Spring Lake Park Fire
4.5Department, incorporated, the Lake Johanna Volunteer Fire Department, incorporated,
4.6the Red Wing Environmental Learning Center, the Dakota County Agricultural Society,
4.7Hennepin Healthcare System, Inc., and the Minneapolis Firefighters Relief Association
4.8and Minneapolis Police Relief Association with respect to staff covered by the Public
4.9Employees Retirement Association general plan.
4.10 (c) Governmental subdivision does not mean any municipal housing and
4.11redevelopment authority organized under the provisions of sections469.001 to
469.047 ;
4.12or any port authority organized under sections469.048 to
469.089 other than the Port
4.13Authority of the city of St. Paul and other than the Red Wing Port Authority; or any
4.14hospital district organized or reorganized prior to July 1, 1975, under sections447.31 to
4.15447.37
or the successor of the district; or the board of a family service collaborative or
4.16children's mental health collaborative organized under sections124D.23 ,
245.491 to
4.17245.495
, or
471.59 , if that board is not controlled by representatives of governmental units.
4.18 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
4.19Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
4.20governmental subdivision unless the entity has obtained a written advisory opinion from
4.21the United States Department of Labor or a ruling from the Internal Revenue Service
4.22declaring the entity to be an instrumentality of the state so as to provide that any future
4.23contributions by the entity on behalf of its employees are contributions to a governmental
4.24plan within the meaning of Internal Revenue Code, section 414(d).
4.25 (e) A public body created by state or local authority may request membership on
4.26behalf of its employees by providing sufficient evidence that it meets the requirements in
4.27paragraph (a).
4.28 (f) An entity determined to be a governmental subdivision is subject to the reporting
4.29requirements of this chapter upon receipt of a written notice of eligibility from the
4.30association.
4.31EFFECTIVE DATE.This section is effective the day following final enactment.
4.32 Sec. 3. VALIDATION OF PAST RETIREMENT COVERAGE AND
4.33CONTRIBUTIONS FOR RED WING PORT AUTHORITY EMPLOYEES.
4.34(a) Retirement coverage by the general employees retirement plan of the Public
4.35Employees Retirement Association, allowable service credit, and salary credit for
5.1employees of the Red Wing Port Authority who were so employed after December 31,
5.21984, and were first so employed before May 1, 2011, who had monthly salary in any
5.3month of at least $325 until June 30, 1988, and who had monthly salary in any month of
5.4at least $425 after June 30, 1988, who were not otherwise excluded under the applicable
5.5edition of Minnesota Statutes, section 353.01, subdivision 2b, and who had member
5.6deductions taken and transferred in a timely manner to the general employees retirement
5.7fund before the effective date of this section are hereby validated.
5.8(b) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
5.9contrary, employee contributions deducted from employees of the Red Wing Port
5.10Authority described in paragraph (a) before the effective date of this section and associated
5.11employer contributions are valid assets of the general employees retirement fund and are
5.12not subject to refund or adjustment for erroneous receipt except as provided in Minnesota
5.13Statutes, section 353.32, subdivision 1 or 2; or 353.34, subdivisions 1 and 2.
5.14EFFECTIVE DATE.This section is effective the day following final enactment.
5.15 Sec. 4. CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY;
5.16CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER
5.17CONTRIBUTIONS, AND ADJUSTING OVERPAID BENEFITS.
5.18 Subdivision 1. Application. Notwithstanding any provisions of Minnesota Statutes,
5.19section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2010, chapters 353 and 356,
5.20to the contrary, this section establishes the procedures by which the executive director of
5.21the Public Employees Retirement Association shall adjust erroneous employee deductions
5.22and employer contributions paid on behalf of active employees and former members
5.23by the city of Duluth and by the Duluth Airport Authority on amounts determined by
5.24the executive director to be invalid salary under Minnesota Statutes, section 353.01,
5.25subdivision 10, reported between January 1, 1997, and October 23, 2008, and for
5.26adjusting benefits that were paid to former members and their beneficiaries based upon
5.27invalid salary amounts.
5.28 Subd. 2. Refunds of employee deductions. (a) The executive director shall refund
5.29to active employees or former members who are not receiving retirement annuities or
5.30benefits all erroneous employee deductions identified by the city of Duluth or by the
5.31Duluth Airport Authority as deductions taken from amounts determined to be invalid
5.32salary. The refunds must include interest at the rate specified in Minnesota Statutes,
5.33section 353.34, subdivision 2, from the date each invalid employee deduction was received
5.34through the date each refund is paid.
6.1(b) The refund payment for active employees must be sent to the applicable members
6.2who are employees of the city of Duluth or who are employees of the Duluth Airport
6.3Authority, whichever is applicable.
6.4(c) Refunds to former members must be mailed by the executive director of the
6.5Public Employees Retirement Association to the former member's last known address.
6.6 Subd. 3. Benefit adjustments. (a) For a former member who is receiving a
6.7retirement annuity or disability benefit, or for a person receiving an optional annuity or
6.8survivor benefit, the executive director must:
6.9(1) adjust the annuity or benefit payment to the correct monthly benefit amount
6.10payable by reducing the average salary under Minnesota Statutes, section 353.01,
6.11subdivision 17a, by the invalid salary amounts;
6.12(2) determine the amount of the overpaid benefits paid from the effective date of the
6.13annuity or benefit payment to July 1, 2009;
6.14(3) calculate the amount of employee deductions taken in error on invalid salary,
6.15including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision
6.162, from the date each invalid employee deduction was received through the first day of the
6.17month in which the refund under paragraph (b), or action to recover net overpayments
6.18under subdivision 4, occurs; and
6.19(4) determine the net amount of overpaid benefits by reducing the amount of the
6.20overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous
6.21employee deductions with interest determined in clause (3).
6.22(b) If a former member's erroneous employee deductions plus interest determined
6.23under this section exceeds the amount of the person's overpaid benefits, the balance must
6.24be refunded to the person to whom the annuity or benefit is being paid.
6.25(c) The executive director shall recover the net amount of all overpaid annuities or
6.26benefits as provided under subdivision 4.
6.27 Subd. 4. Employer credits and obligations. (a) The executive director shall
6.28provide a credit without interest to the city of Duluth and to the Duluth Airport Authority
6.29for the amount of that governmental subdivision's erroneous employer contributions. The
6.30credit must first be used to offset the net amount of the overpaid retirement annuities and
6.31the disability and survivor benefits that remain after applying the amount of erroneous
6.32employee deductions with interest as provided under subdivision 3, paragraph (a),
6.33clause (4). The remaining erroneous employer contributions, if any, must be credited
6.34against future employer contributions required to be paid by the applicable governmental
6.35subdivision. If the overpaid benefits exceed the employer contribution credit, the balance
7.1of the overpaid benefits is the obligation of the city of Duluth or the Duluth Airport
7.2Authority, whichever is applicable.
7.3(b) The Public Employees Retirement Association board of trustees shall determine
7.4the period of time and manner for the collection of overpaid retirement annuities and
7.5benefits, if any, from the city of Duluth and the Duluth Airport Authority.
7.6 Subd. 5. Treatment of invalid salary amounts in process. (a) The governing body
7.7of the city of Duluth or the Duluth Airport Authority, as applicable, may elect to limit the
7.8period of adjustment for amounts determined to be invalid salary to apply to the fiscal
7.9year in which the error was reported to, and the salary determined to be invalid by, the
7.10Public Employees Retirement Association, and the immediate two preceding fiscal years,
7.11by a resolution of the applicable governing body transmitted to the Public Employees
7.12Retirement Association executive director within 30 days following the effective date
7.13of this section.
7.14(b) If the governing body of the applicable governmental subdivision declines the
7.15treatment permitted under paragraph (a) or fails to submit a resolution in a timely manner,
7.16the statute of limitations specified in paragraph (a) does not apply.
7.17EFFECTIVE DATE.(a) This section is effective for the city of Duluth the day after
7.18the Duluth city council and the chief clerical officer of the city of Duluth timely complete
7.19their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for
7.20members who are, and former members who were, employees of the city of Duluth.
7.21(b) This section is effective for the Duluth Airport Authority the day after the Duluth
7.22Airport Authority board of directors and the chief clerical officer of the Duluth Airport
7.23Authority timely complete their compliance with Minnesota Statutes, section 645.021,
7.24subdivisions 2 and 3, for members who are, and former members who were, employees
7.25of the Duluth Airport Authority.
7.28 Section 1. Minnesota Statutes 2010, section 354A.011, is amended by adding a
7.29subdivision to read:
7.30 Subd. 29. Vesting; vested. (a) "Vesting" or "vested" means having entitlement to a
7.31nonforfeitable annuity or benefit from a coordinated member program administered by a
7.32teachers retirement fund association by having credit for sufficient allowable service under
7.33paragraph (b) or (c), whichever applies.
8.1(b) For purposes of qualifying for an annuity or a benefit as a coordinated plan
8.2member of the St. Paul Teachers Retirement Fund Association, the teacher is vested when
8.3the teacher has accrued credit for at least three years of service.
8.4(c) For purposes of qualifying for an annuity or a benefit as a coordinated plan
8.5member of the Duluth Teachers Retirement Fund Association:
8.6(1) a teacher who first became a member of the plan before July 1, 2010, is vested
8.7when the teacher has accrued at least three years of service; and
8.8(2) a teacher who first became a member of the plan after June 30, 2010, is vested
8.9when the teacher has accrued at least five years of service.
8.10EFFECTIVE DATE.This section is effective the day following final enactment.
8.11 Sec. 2. Minnesota Statutes 2010, section 354A.094, subdivision 3, is amended to read:
8.12 Subd. 3. Qualified part-time teacher program participation requirements. (a)
8.13A teacher in the public schools of a city of the first class whohas three years or more
8.14allowable service in the applicable retirement fund association is vested, or three who has
8.15combined yearsor more of full-time teaching service in Minnesota public elementary
8.16schools, Minnesota secondary schools, and Minnesota State Colleges and Universities
8.17system at least equal to the number of years specified for vesting in the applicable first
8.18class city teacher plan, may, by agreement with the board of the employing district, be
8.19assigned to teaching service within the district in a part-time teaching position. The
8.20agreement must be executed before October 1 of the year for which the teacher requests to
8.21make retirement contributions under subdivision 4. A copy of the executed agreement
8.22must be filed with the executive director of the retirement fund association. If the copy
8.23of the executed agreement is filed with the association after October 1 of the year for
8.24which the teacher requests to make retirement contributions under subdivision 4, the
8.25employing school district shall pay a fine of $5 for each calendar day that elapsed since
8.26the October 1 due date. The association may not accept an executed agreement that is
8.27received by the association more than 15 months late. The association may not waive
8.28the fine required by this section.
8.29(b) Notwithstanding paragraph (a), if the teacher is also a legislator:
8.30(1) the agreement in paragraph (a) must be executed before March 1 of the school
8.31year for which the teacher requests to make retirement contributions under subdivision
8.324; and
8.33(2) the fines specified in paragraph (a) apply if the employing unit does not file the
8.34executed agreement with the executive director of the applicable Teachers Retirement
8.35Fund Association by March 1.
9.1EFFECTIVE DATE.This section is effective the day following final enactment.
9.2 Sec. 3. Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
9.3to read:
9.4 Subd. 7. Eligibility for payment of postretirement adjustments. (a) Annually,
9.5after June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association
9.6must determine the amount of any postretirement adjustment using the procedures in this
9.7subdivision and subdivision 8 or 9, whichever is applicable.
9.8(b) On January 1, each eligible person who has been receiving an annuity or benefit
9.9under the articles of incorporation, the bylaws, or this chapter for at least three calendar
9.10months as of the end of the last day of the previous calendar year is eligible to receive a
9.11postretirement increase as specified in subdivision 8 or 9.
9.12EFFECTIVE DATE.This section is effective July 1, 2011.
9.13 Sec. 4. Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
9.14to read:
9.15 Subd. 8. Calculation of postretirement adjustments; transitional provision. (a)
9.16For purposes of computing postretirement adjustments for eligible benefit recipients of the
9.17St. Paul Teachers Retirement Fund Association, the accrued liability funding ratio based
9.18on the actuarial value of assets of the plan as determined by the most recent actuarial
9.19valuation prepared under sections 356.214 and 356.215 determines the postretirement
9.20increase, as follows:
9.25(b) The amount determined under paragraph (a) is the full postretirement increase
9.26to be applied as a permanent increase to the regular payment of each eligible member
9.27on January 1 of the next calendar year. For any eligible member whose effective date
9.28of benefit commencement occurred during the calendar year before the postretirement
9.29increase is applied, the full increase amount must be prorated on the basis of whole
9.30calendar quarters in benefit payment status in the calendar year prior to the January 1 on
9.31which the postretirement increase is applied, calculated to the third decimal place.
9.32(c) If the accrued liability funding ratio based on the actuarial value of assets is at
9.33least 90 percent, this subdivision expires and subsequent postretirement increases must be
9.34paid as specified in subdivision 9.
10.1EFFECTIVE DATE.This section is effective July 1, 2011.
10.2 Sec. 5. Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
10.3to read:
10.4 Subd. 9. Calculation of postretirement adjustments. (a) This subdivision applies
10.5if subdivision 8 has expired.
10.6(b) A percentage adjustment must be computed and paid under this subdivision to
10.7eligible persons under subdivision 7. This adjustment is determined by reference to the
10.8Consumer Price Index for urban wage earners and clerical workers all items index as
10.9reported by the Bureau of Labor Statistics within the United States Department of Labor
10.10each year as part of the determination of annual cost-of-living adjustments to recipients of
10.11federal old-age, survivors, and disability insurance. For calculations of postretirement
10.12adjustments under paragraph (c), the term "average third quarter Consumer Price Index
10.13value" means the sum of the monthly index values as initially reported by the Bureau of
10.14Labor Statistics for the months of July, August, and September, divided by three.
10.15(c) Before January 1 of each year, the executive director must calculate the amount
10.16of the postretirement adjustment by dividing the most recent average third quarter index
10.17value by the same average third quarter index value from the previous year, subtract one
10.18from the resulting quotient, and express the result as a percentage amount, which must be
10.19rounded to the nearest one-tenth of one percent.
10.20(d) The amount calculated under paragraph (c) is the full postretirement adjustment
10.21to be applied as a permanent increase to the regular payment of each eligible member
10.22on January 1 of the next calendar year. For any eligible member whose effective date
10.23of benefit commencement occurred during the calendar year before the postretirement
10.24adjustment is applied, the full increase amount must be prorated on the basis of whole
10.25calendar quarters in benefit payment status in the calendar year prior to the January 1 on
10.26which the postretirement adjustment is applied, calculated to the third decimal place.
10.27(e) The adjustment must not be less than zero nor greater than five percent.
10.28EFFECTIVE DATE.This section is effective July 1, 2011.
10.29 Sec. 6. Minnesota Statutes 2010, section 354A.31, subdivision 1, is amended to read:
10.30 Subdivision 1. Age and service requirements. Any coordinated member or former
10.31coordinated member of the Duluth Teachers Retirement Fund Association or of the St.
10.32Paul Teachers Retirement Fund Association who has ceased to render teaching service for
10.33the school district in which the teachers retirement fund association exists, who is vested
10.34and who has either attained the age of at least 55 yearswith not less than three years of
11.1allowable service credit or received credit for not less than 30 years of allowable service
11.2regardless of age, shall be entitled upon written application to a retirement annuity.Any
11.3coordinated member or former coordinated member of the Duluth Teachers Retirement
11.4Fund Association who has ceased to render teaching service for the school district in
11.5which the teacher retirement fund association exists and who has either attained the age of
11.6at least 55 years with not less than three years of allowable service credit if the member
11.7became an employee before July 1, 2010, or not less than five years of allowable service
11.8credit if the member became an employee after June 30, 2010, or received service credit
11.9for not less than 30 years of allowable service regardless of age, shall be entitled upon
11.10written application to a retirement annuity.
11.11EFFECTIVE DATE.This section is effective the day following final enactment.
11.12 Sec. 7. Minnesota Statutes 2010, section 354A.31, subdivision 5, is amended to read:
11.13 Subd. 5. Unreduced normal retirement annuity. Upon retirement at normal
11.14retirement agewith at least three years of service credit, a vested coordinated member is
11.15entitled to a normal retirement annuity calculated under subdivision 4 or 4a, whichever
11.16applies.
11.17EFFECTIVE DATE.This section is effective the day following final enactment.
11.18 Sec. 8. Minnesota Statutes 2010, section 354A.31, subdivision 6, is amended to read:
11.19 Subd. 6. Reduced retirement annuity. This subdivision applies only to a person
11.20who first became a coordinated member or a member of a pension fund listed in section
11.21356.30, subdivision 3
, before July 1, 1989, and whose annuity is higher when calculated
11.22using the retirement annuity formula percentage in subdivision 4, paragraph (c), or
11.23subdivision 4a, paragraph (c), in conjunction with this subdivision than when calculated
11.24under subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), in conjunction with
11.25subdivision 7.
11.26(a) Upon retirement at an age before normal retirement agewith three years
11.27of service credit or prior to age 62 with at least 30 years of service credit, a vested
11.28coordinated member shall be entitled to a retirement annuity in an amount equal to the
11.29normal retirement annuity calculated using the retirement annuity formula percentage in
11.30subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), reduced by one-quarter of
11.31one percent for each month that the coordinated member is under normal retirement age if
11.32the coordinated member has less than 30 years of service credit or is under the age of 62 if
11.33the coordinated member has at least 30 years of service credit.
12.1(b) Any coordinated member whose attained age plus credited allowable service
12.2totals 90 years is entitled, upon application, to a retirement annuity in an amount equal to
12.3the normal retirement annuity calculated using the retirement annuity formula percentage
12.4in subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by
12.5reason of early retirement.
12.6EFFECTIVE DATE.This section is effective the day following final enactment.
12.7 Sec. 9. Minnesota Statutes 2010, section 354A.35, subdivision 2, is amended to read:
12.8 Subd. 2. Death while eligible to retire; surviving spouse optional annuity. (a)
12.9The surviving spouse of a vested coordinated member whohas credit for at least three
12.10years of service and dies prior to retirement may elect to receive, instead of a refund with
12.11interest under subdivision 1, an annuity equal to the 100 percent joint and survivor annuity
12.12the member could have qualified for had the member terminated service on the date of
12.13death. The surviving spouse eligible for a surviving spouse benefit under this paragraph
12.14may apply for the annuity at any time after the date on which the deceased employee
12.15would have attained the required age for retirement based on the employee's allowable
12.16service. A surviving spouse eligible for surviving spouse benefits under paragraph (b)
12.17or (c) may apply for an annuity at any time after the member's death. The member's
12.18surviving spouse shall be paid a joint and survivor annuity under section354A.32 and
12.19computed under section354A.31 .
12.20(b) If the member was under age 55 and has credit for at least 30 years of allowable
12.21service on the date of death, the surviving spouse may elect to receive a 100 percent joint
12.22and survivor annuity based on the age of the member and surviving spouse on the date
12.23of death. The annuity is payable using the full early retirement reduction under section
12.24354A.31, subdivision 6
, paragraph (a), to age 55 and one-half of the early retirement
12.25reduction from age 55 to the age payment begins.
12.26(c) Ifthe a vested member was under age 55 and has credit for at least three years of
12.27allowable service on the date of death but did not yet qualify for retirement, the surviving
12.28spouse may elect to receive the 100 percent joint and survivor annuity based on the age
12.29of the member and the survivor at the time of death. The annuity is payable using the
12.30full early retirement reduction under section354A.31, subdivision 6 or 7, to age 55 and
12.31one-half of the early retirement reduction from age 55 to the date payment begins.
12.32(d) Sections354A.37, subdivision 2 , and
354A.39 apply to a deferred annuity or
12.33surviving spouse benefit payable under this section. The benefits are payable for the life
12.34of the surviving spouse, or upon expiration of the term certain benefit payment under
12.35subdivision 2b.
13.1EFFECTIVE DATE.This section is effective the day following final enactment.
13.2 Sec. 10. Minnesota Statutes 2010, section 354A.36, subdivision 1, is amended to read:
13.3 Subdivision 1. Minimum age, service, and salary requirements. Any coordinated
13.4member whohas at least three years of allowable service credit is vested, who has an
13.5average salary of at least $75 per month, and who has become totally and permanently
13.6disabled shall be entitled to a disability benefit. If the disabled coordinated member's
13.7allowable service credit has not been continuous, at least two years of the required
13.8allowable service shall be required to have been rendered subsequent to the last
13.9interruption in service.
13.10EFFECTIVE DATE.This section is effective the day following final enactment.
13.11 Sec. 11. Minnesota Statutes 2010, section 354A.37, is amended to read:
13.12354A.37 REFUNDS; DEFERRED ANNUITY.
13.13 Subdivision 1. Eligibility for refund. Any coordinated member who ceases to
13.14render teaching service for the school district in which the teachers retirement fund
13.15association is located shall be entitled to a refund in lieu of any other annuity or benefit
13.16from the teachers retirement fund association, other than an annuity from a tax shelter
13.17annuity program and fund as authorizedpursuant to under section
354A.021, subdivision
13.185 . The amount of the refund shall must be calculated pursuant to under subdivision 3. The
13.19application for the refundshall must not be made prior to 30 days after the cessation of
13.20teaching services if the coordinated member has not resumed active teaching services for
13.21the district. Payment of the refundshall must be made within 90 days after receipt of the
13.22refund application by the board.
13.23 Subd. 2. Eligibility for deferred retirement annuity. (a) Any coordinated member
13.24who ceases to render teaching services for the school district in which the teachers
13.25retirement fund association is located, with sufficient allowable service credit to meet
13.26the minimum service requirements specified in section354A.31, subdivision 1 , shall be
13.27entitled to a deferred retirement annuity in lieu of a refundpursuant to under subdivision
13.281. The deferred retirement annuityshall must be computed pursuant to under section
13.29354A.31
and shall be augmented as provided in this subdivision. The deferred annuity
13.30shall commence commences upon application after the person on deferred status attains at
13.31least the minimum age specified in section354A.31, subdivision 1 .
13.32(b) The monthly annuity amount that had accrued when the member ceased to
13.33render teaching service must be augmented from the first day of the month following the
14.1month during which the member ceased to render teaching service to the effective date
14.2of retirement. There is no augmentation if this period is less than three months.For a
14.3member of the St. Paul Teachers Retirement Fund Association, the rate of augmentation
14.4is three percent compounded annually until January 1 of the year following the year in
14.5which the former member attains age 55, and five percent compounded annually after that
14.6date to the effective date of retirement if the employee became an employee before July
14.71, 2006, and at 2.5 percent compounded annually if the employee becomes an employee
14.8after June 30, 2006. For a member of the Duluth Teachers Retirement Fund Association,
14.9The rate of augmentation is three percent compounded annually until January 1 of the year
14.10following the year in which the former member attains age 55, five percent compounded
14.11annually after that date to July 1, 2012, and two percent compounded annually after
14.12that date to the effective date of retirement if the employee became an employee before
14.13July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent
14.14compounded annually after that date to the effective date of retirement if the employee
14.15becomes became an employee after June 30, 2006. If a person has more than one period of
14.16uninterrupted service, a separate average salary determined under section354A.31 must
14.17be used for each period, and the monthly annuity amount related to each period must be
14.18augmented as provided in this subdivision. The sum of the augmented monthly annuity
14.19amounts determines the total deferred annuity payable. If a person repays a refund, the
14.20service restored by the repayment must be considered as continuous with the next period
14.21of service for which the person has credit with the fund. If a person does not render
14.22teaching services in any one fiscal year or more consecutive fiscal years and then resumes
14.23teaching service, the formula percentages used from the date of resumption of teaching
14.24service are those applicable to new members. The mortality table and interest assumption
14.25used to compute the annuity are the table established by the fund to compute other
14.26annuities, and the interest assumption under section356.215 in effect when the member
14.27retires. A period of uninterrupted service for the purpose of this subdivision means a
14.28period of covered teaching service during which the member has not been separated from
14.29active service for more than one fiscal year.
14.30(c) The augmentation provided by this subdivision applies to the benefit provided
14.31in section354A.35, subdivision 2 . The augmentation provided by this subdivision does
14.32not apply to any period in which a person is on an approved leave of absence from an
14.33employer unit.
14.34 Subd. 3. Computation of refund amount. A former coordinated memberof the St.
14.35Paul Teachers Retirement Fund Association who qualifies for a refund under subdivision 1
14.36shall receive a refund equal to the amount of the former coordinated member's accumulated
15.1employee contributions with interest at the rate of six percent per annum compounded
15.2annually. A former coordinated member of the Duluth Teachers Retirement Fund
15.3Association who qualifies for a refund under subdivision 1 shall receive a refund equal
15.4to the amount of the former coordinated member's accumulated employee contributions
15.5with interest at the rate of six percent per annum compounded annually to July 1, 2010,
15.6if the person is a former member of the Duluth Teachers Retirement Fund Association, or
15.7to July 1, 2011, if the person is a former member of the St. Paul Teachers Retirement Fund
15.8Association, and four percent per annum compounded annually thereafter.
15.9 Subd. 4. Certain refunds at normal retirement age. Any coordinated member
15.10who has attained the normal retirement age with less than ten years of allowable service
15.11credit and has terminated active teaching service shall be entitled to a refund in lieu of a
15.12proportionate annuitypursuant to under section
356.32 . The refund for a member of the
15.13St. Paul Teachers Retirement Fund Association shall be equal to the coordinated member's
15.14accumulated employee contributions plus interest at the rate of six percent compounded
15.15annually. The refund for a member of the Duluth Teachers Retirement Fund Association
15.16shall must be equal to the coordinated member's accumulated employee contributions plus
15.17interest at the rate of six percent compounded annually to July 1, 2010, if the person is a
15.18former member of the Duluth Teachers Retirement Fund Association, or to July 1, 2011, if
15.19the person is a former member of the St. Paul Teachers Retirement Fund Association, and
15.20four percent per annum compounded annually thereafter.
15.21 Subd. 5. Unclaimed minimal refund amounts; disposition. If a coordinated
15.22member ceases to render teaching services for the school district in which the teachers
15.23retirement fund association is located but does not apply for a refundpursuant to under
15.24subdivision 1 within five years after the end of the plan year next following the cessation
15.25of teaching services and if the amount of the refund that the former coordinated member
15.26would have been entitled topursuant to under subdivision 3 is $500 or less, then the
15.27amount of the refund and any accumulated interestshall must be credited to and become
15.28a part of the retirement fund. If the former coordinated member subsequently renders
15.29teaching services for the school district in which the teachers retirement fund association
15.30is located and the amount of the refund that the former coordinated member would have
15.31previously been entitled topursuant to under subdivision 3 is at least $5, then the amount
15.32of the refund and any accumulated interestshall be must be restored to the member's
15.33individual account. If the amount of the refund that the former coordinated member
15.34would have previously been entitled topursuant to under subdivision 3 is at least $5 and
15.35the former coordinated member applies for a refundpursuant to under subdivision 1 or
15.36for an annuitypursuant to under sections
354A.31 and
354A.32 or section
356.30 , the
16.1amount of the refund and any accumulated interestshall must be restored to the member's
16.2individual account.
16.3EFFECTIVE DATE.This section is effective July 1, 2011.
16.4 Sec. 12. Minnesota Statutes 2010, section 354B.21, subdivision 1, is amended to read:
16.5 Subdivision 1. Eligibility. The following persons are eligible to have coverage by
16.6the individual retirement account planand to be participants in the or coverage by another
16.7plan as further specified in this section:
16.8(1) employees of the board who are employed as faculty in an employment
16.9classification included in the state university instructional unit or the state college
16.10instructional unit under section179A.10, subdivision 2 ;
16.11(2) the chancellor and employees of the board in eligible unclassified administrative
16.12positions;
16.13(3) the employees in eligible unclassified administrative positions in the state
16.14universities;
16.15(4) the employees in eligible unclassified administrative positions in the technical
16.16colleges; and
16.17(5) the employees in eligible unclassified administrative positions of the Minnesota
16.18Office of Higher Education or of the community colleges.
16.19EFFECTIVE DATE.This section is effective July 1, 2011.
16.20 Sec. 13. Minnesota Statutes 2010, section 354B.21, is amended by adding a
16.21subdivision to read:
16.22 Subd. 1a. Required notice; counseling. (a) No later than 90 days before the end of
16.23any applicable election period specified in this section, the employer must provide to a
16.24person beginning work in a position subject to this section for which an option to elect
16.25alternative retirement plan coverage is authorized the following information:
16.26(1) the default retirement coverage;
16.27(2) election procedures, if applicable, for electing coverage other than the default
16.28coverage; and
16.29(3) the Web site and the telephone number for the plan providing default coverage
16.30and comparable information for the plan which the person is eligible to elect.
16.31(b) The election of coverage forms must include a certification statement that the
16.32employee has received and reviewed materials on the optional coverage and the default
16.33coverage prior to making the election.
17.1EFFECTIVE DATE.This section is effective July 1, 2011.
17.2 Sec. 14. Minnesota Statutes 2010, section 354B.21, subdivision 2, is amended to read:
17.3 Subd. 2. Coverage; election. (a) An eligiblepersons who were employed by the
17.4Minnesota State Colleges and Universities System on or after June 30, 2009, unless
17.5otherwise person employed by the board has the default coverage specified in subdivision
17.63, or other subdivisions of this section, whichever is applicable, and retains that coverage
17.7for the period of covered employment unless a timely election to change that coverage
17.8is made as specified in this section, are.
17.9(b) An eligible person under subdivision 3, paragraph (b) or (c), is authorized to elect
17.10prospective Teachers Retirement Association plan coverage rather than .
17.11(c) An eligible person under subdivision 3, paragraph (d), is authorized to elect
17.12prospective coverage by the plan established by this chapter.
17.13(d) The electionof prospective Teachers Retirement Association plan coverage
17.14under paragraph (a) must be made within one year of commencing eligible Minnesota
17.15State Colleges and Universities system employment. If an election is not made within the
17.16specified election period due to a termination of Minnesota State Colleges and Universities
17.17system employment, an election may be made within 90 days of returning to eligible
17.18Minnesota State Colleges and Universities system employment. Except as specified in
17.19paragraph (f), all elections are irrevocable.Before making an election, the eligible person
17.20is covered by the plan indicated as default coverage under subdivision 3.
17.21(b) (e) Except as provided in paragraph (c) (f), a purchase of service credit in the
17.22Teachers Retirement Association plan for any period or periods of Minnesota State
17.23Colleges and Universities system employment occurring before the election under
17.24paragraph (a) this section is prohibited.
17.25(c) (f) Notwithstanding other paragraphs (a) and (b) in this subdivision, a faculty
17.26member who is a member of the individual retirement account planwho first achieves
17.27tenure or its equivalent at a Minnesota state college or university after June 30, 2009, may
17.28elect to transfer retirement coverageunder to the teachers retirement plan within one year
17.29of the faculty member first achieving tenure or its equivalent at a Minnesota state college
17.30or university. The faculty member electing Teachers Retirement Association coverage
17.31under this paragraph must purchase service credit in the Teachers Retirement Association
17.32for the entire period of time covered under the individual retirement account plan and the
17.33purchase payment amount must be determined under section356.551 . The Teachers
17.34Retirement Association may charge a faculty member transferring coverage a reasonable
17.35fee to cover the costs associated with computing the actuarial cost of purchasing service
18.1credit and making the transfer. A faculty member transferring from the individual
18.2retirement account plan to the Teachers Retirement Association may use any balances to
18.3the credit of the faculty member in the individual retirement account plan, any balances
18.4to the credit of the faculty member in the higher education supplemental retirement plan
18.5established under chapter 354C, or any source specified in section356.441, subdivision 1 ,
18.6to purchase the service credit in the Teachers Retirement Association. If the total amount
18.7of payments under this paragraph are less than the total purchase payment amount under
18.8section356.551 , the payment amounts must be refunded to the applicable source. The
18.9retirement coverage transfer and service credit purchase authority under this paragraph
18.10expires with respect to any Minnesota State Colleges and Universities System faculty
18.11initially hired after June 30, 2014.
18.12EFFECTIVE DATE.This section is effective July 1, 2011.
18.13 Sec. 15. Minnesota Statutes 2010, section 354B.21, subdivision 3, is amended to read:
18.14 Subd. 3. Default coverage. (a) Prior to making an election under subdivision 2,
18.15or if an eligible person fails to elect coverage by the plan under subdivision 2 or if the
18.16person fails to make a timely election, thefollowing retirement coverage specified in
18.17this subdivision applies:.
18.18(1) for employees of the board who are employed in faculty positions in the technical
18.19colleges, in the state universities or in the community colleges, the retirement coverage
18.20is by the plan established by this chapter;
18.21(2) for employees of the board who are employed in faculty positions in the technical
18.22colleges, the retirement coverage is by the plan established by this chapter unless on June
18.2330, 1997, the employee was a member of the Teachers Retirement Association established
18.24under chapter 354 and then the retirement coverage is by the Teachers Retirement
18.25Association, or, unless the employee was a member of a first class city teacher retirement
18.26fund established under chapter 354A on June 30, 1995, and then the retirement coverage
18.27is by the Duluth Teachers Retirement Fund Association if the person was a member of
18.28that plan on June 30, 1995, or the Teachers Retirement Association if the person was a
18.29member of the former Minneapolis Teachers Retirement Fund Association on June 30,
18.301995, or the St. Paul Teachers Retirement Fund Association if the person was a member
18.31of that plan on June 30, 1995; and
18.32(3) for employees of the board who are employed in eligible unclassified
18.33administrative positions, the retirement coverage is by the plan established by this chapter.
18.34(b) If an employee fails to correctly certify prior membership in the Teachers
18.35Retirement Association to the Minnesota State colleges and Universities system, the
19.1system shall not pay interest on employee contributions, employer contributions, and
19.2additional employer contributions to the Teachers Retirement Association under section
19.3354.52, subdivision 4.
19.4(b) If an eligible person is employed by the board before July 1, 2011, in an eligible
19.5unclassified administrative position or in a faculty position in a technical college,
19.6community college, or state university, the retirement coverage is by the plan established
19.7by this chapter, unless otherwise specified in this section.
19.8(c) An eligible person described in paragraph (b), except that first employment by
19.9the board is on or after July 1, 2011, has retirement coverage by the plan established by
19.10this chapter if the eligible person has no:
19.11(1) allowable service credit in any plan listed in section 356.30, subdivision 3; or
19.12(2) prior employment covered by the state unclassified employees retirement
19.13program under chapter 352D.
19.14(d) An eligible person described in paragraph (c) has retirement coverage by the
19.15Teachers Retirement Association if the person has:
19.16(1) prior employment covered by the state unclassified employees retirement
19.17program under chapter 352D and has not withdrawn or transferred assets from that
19.18account; or
19.19(2) allowable service credit in a plan listed in section 356.30, subdivision 3.
19.20(e) To ensure that coverage is provided by the proper plan, the employee must
19.21certify to the board the existence of any service credit in any plan listed in section 356.30,
19.22subdivision 3, or whether the person retains a state unclassified employees retirement
19.23program account. If an employee fails to correctly certify prior membership in a plan
19.24or the existence of an unclassified program account, the Minnesota State Colleges and
19.25Universities system and its board shall be held harmless, and notwithstanding any law to
19.26the contrary, any resulting cost or financial liability becomes the employee's responsibility.
19.27EFFECTIVE DATE.This section is effective July 1, 2011.
19.28 Sec. 16. Minnesota Statutes 2010, section 354B.21, subdivision 3a, is amended to read:
19.29 Subd. 3a.Continuation of Plan coverage in and election; certain instances past
19.30service technical college faculty.For a person with retirement coverage by a first class
19.31city teacher retirement fund association instead of the individual retirement account plan
19.32under subdivision 3, clause (2), coverage by the applicable retirement fund association
19.33continues (a) Notwithstanding subdivision 3, if an employee of the board was employed in
19.34a faculty position in a technical college on June 30, 1997, with coverage by the Teachers
19.35Retirement Association, the employee retains that coverage. If the employee was a
20.1technical college faculty member on June 30, 1995, covered by a first class city teacher
20.2retirement fund established under chapter 354A, the retirement coverage continues with
20.3the Duluth Teachers Retirement Fund Association or the St. Paul Teachers Retirement
20.4Fund Association, whichever is applicable. If the person was a technical college faculty
20.5member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund
20.6Association, the Teachers Retirement Association shall provide coverage.
20.7(b) An employee under paragraph (a) who has coverage by a first class city teacher
20.8fund association retains that coverage for the duration of the person's employment by
20.9the boardof Trustees of the Minnesota State Colleges and Universities unless, within
20.1090 days one year of a change in employment within the Minnesota State Colleges and
20.11Universities system, the person elects the individual retirement account plan for all future
20.12employment by the board of Trustees of the Minnesota State Colleges and Universities.
20.13The election is irrevocable.
20.14EFFECTIVE DATE.This section is effective July 1, 2011.
20.15 Sec. 17. Minnesota Statutes 2010, section 354B.21, subdivision 5, is amended to read:
20.16 Subd. 5. Payment for certain prior uncovered service. (a) A person employed in a
20.17faculty position or in an eligible unclassified administrative position by the board who was
20.18initially excluded from participation in the individual retirement account plan coverage,
20.19who was not covered by any other Minnesota public pension plan for that service, and
20.20who is subsequently eligible to participate in the individual retirement account plan may
20.21make member contributions for that period of prior uncovered teaching employment or
20.22eligible unclassified administrative employment with the board.
20.23(b) The member contributions for prior uncovered board service are the amount
20.24that the person would have paid if the prior service had been covered employment. The
20.25payment must be made to the individual retirement account plan administrator and may be
20.26made only by payroll deduction. The payment must be made by the later of:
20.27(1) 45 days of the start of covered employment; or
20.28(2) the end of the fiscal year in which covered employment began.
20.29(c) The board must contribute an amount to match any contribution made by a plan
20.30participant under this subdivision.
20.31(d) Payments of contributions for prior uncovered board service under this
20.32subdivision must be invested in the same manner as the regular contributions made by or
20.33on behalf of the plan participant.
20.34EFFECTIVE DATE.This section is effective July 1, 2011.
21.1 Sec. 18. Minnesota Statutes 2010, section 354B.21, subdivision 6, is amended to read:
21.2 Subd. 6. Continuation of coverage. Except as otherwise specified in this section,
21.3once a person is employed in a position that qualifies for participation in the individual
21.4retirement account plan and elects to participate in the plan, all subsequent service by the
21.5person as a faculty member or in an eligible unclassified administrative position employed
21.6by the board or other employing unit is covered by the individual retirement account plan.
21.7EFFECTIVE DATE.This section is effective July 1, 2011.
21.8 Sec. 19. Minnesota Statutes 2010, section 354B.21, is amended by adding a
21.9subdivision to read:
21.10 Subd. 7. Coverage; certain part-time employees. A person employed in a
21.11part-time faculty position or in a part-time eligible unclassified administrative position
21.12who does not meet the definition of covered employment under section 354B.20,
21.13subdivision 4, because the employment does not meet the threshold required under that
21.14provision, must certify prior membership in the Teachers Retirement Association to the
21.15Minnesota State Colleges and Universities system. If the certification is incorrect, the
21.16employee, and not the employer, is required to pay interest on the employee and employer
21.17contributions, and, if applicable, on the employer additional contributions to the Teachers
21.18Retirement Association under section 354.52, subdivision 4.
21.19EFFECTIVE DATE.This section is effective July 1, 2011.
21.20 Sec. 20. Minnesota Statutes 2010, section 356.47, subdivision 3, is amended to read:
21.21 Subd. 3. Payment. (a) Beginning one year after the reemployment withholding
21.22period ends relating to the reemployment that gave rise to the limitation, and the filing of a
21.23written application, the retired member is entitled to the payment, in a lump sum, of the
21.24value of the person's amount under subdivision 2, plus annual compound interest. For the
21.25general state employees retirement plan, the correctional state employees retirement plan,
21.26the general employees retirement plan of the Public Employees Retirement Association,
21.27the public employees police and fire retirement plan, the local government correctional
21.28employees retirement plan, and the teachers retirement plan, the annual interest rate is six
21.29percent from the date on which the amount was deducted from the retirement annuity to
21.30the date of payment or until January 1, 2011, whichever is earlier, and no interest after
21.31January 1, 2011. For the Duluth Teachers Retirement Fund Association, the annual interest
21.32is six percent from the date on which the amount was deducted from the retirement annuity
21.33to the date of payment or until June 30, 2010, whichever is earlier, and with no interest
22.1accrual after June 30, 2010. For the St. Paul Teachers Retirement Fund Association, the
22.2annual interest is the rate of six percent from the date that the amount was deducted from
22.3the retirement annuity to the date of payment or June 30, 2011, whichever is earlier, and
22.4with no interest accrual after June 30, 2011.
22.5 (b) The written application must be on a form prescribed by the chief administrative
22.6officer of the applicable retirement plan.
22.7 (c) If the retired member dies before the payment provided for in paragraph (a) is
22.8made, the amount is payable, upon written application, to the deceased person's surviving
22.9spouse, or if none, to the deceased person's designated beneficiary, or if none, to the
22.10deceased person's estate.
22.11 (d) In lieu of the direct payment of the person's amount under subdivision 2, on
22.12or after the payment date under paragraph (a), if the federal Internal Revenue Code so
22.13permits, the retired member may elect to have all or any portion of the payment amount
22.14under this section paid in the form of a direct rollover to an eligible retirement plan as
22.15defined in section 402(c) of the federal Internal Revenue Code that is specified by the
22.16retired member. If the retired member dies with a balance remaining payable under this
22.17section, the surviving spouse of the retired member, or if none, the deceased person's
22.18designated beneficiary, or if none, the administrator of the deceased person's estate may
22.19elect a direct rollover under this paragraph.
22.20EFFECTIVE DATE.This section is effective July 1, 2011.
22.21 Sec. 21. BYLAW AUTHORIZATION.
22.22Consistent with the requirements of Minnesota Statutes, section 354A.12,
22.23subdivision 4, the board of the St. Paul Teachers Retirement Fund Association is
22.24authorized to revise the bylaws and articles of incorporation so that the requirements of
22.25this act, where applicable, apply to the basic program.
22.26EFFECTIVE DATE.This section is effective July 1, 2011.
22.27 Sec. 22. REPEALER.
22.28(a) Minnesota Statutes 2010, section 354A.29, subdivision 3, is repealed.
22.29(b) Minnesota Statutes 2010, sections 354B.21, subdivision 3c; and 354B.32, are
22.30repealed.
22.31EFFECTIVE DATE.This section is effective July 1, 2011.
23.3 Section 1. Minnesota Statutes 2010, section 356.215, subdivision 8, is amended to read:
23.4 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
23.5the applicable following preretirement interest assumption and the applicable following
23.6postretirement interest assumption:
23.30 (b) Before July 1, 2010, the actuarial valuation must use the applicable following
23.31single rate future salary increase assumption, the applicable following modified single
23.32rate future salary increase assumption, or the applicable following graded rate future
23.33salary increase assumption:
23.34 (1) single rate future salary increase assumption
24.6 (2) age-related select and ultimate future salary increase assumption or graded rate
24.7future salary increase assumption
24.18The select calculation is: during the
24.19designated select period, a designated
24.20percentage rate is multiplied by the result of
24.21the designated integer minus T, where T is
24.22the number of completed years of service,
24.23and is added to the applicable future salary
24.24increase assumption. The designated select
24.25period is five years and the designated
24.26integer is five for the general state employees
24.27retirement plan. The designated select period
24.28is ten years and the designated integer is ten
24.29for all other retirement plans covered by
24.30this clause. The designated percentage rate
24.31is: (1) 0.2 percent for the correctional state
24.32employees retirement plan, the State Patrol
24.33retirement plan,the public employees police
24.34and fire plan, and the local government
24.35correctional service retirement plan; (2)
24.360.6 percent for the general state employees
24.37retirement plan; and (3) 0.3 percent for the
24.38teachers retirement plan, the Duluth Teachers
25.1Retirement Fund Association, and the St.
25.2Paul Teachers Retirement Fund Association.
25.3The select calculation for the Duluth Teachers
25.4Retirement Fund Association is 8.00 percent
25.5per year for service years one through seven,
25.67.25 percent per year for service years seven
25.7and eight, and 6.50 percent per year for
25.8service years eight and nine.
25.9 The ultimate future salary increase assumption is:
26.25(3) service-related ultimate future salary increase assumption
27.24 (c) Before July 2, 2010, the actuarial valuation must use the applicable following
27.25payroll growth assumption for calculating the amortization requirement for the unfunded
27.26actuarial accrued liability where the amortization retirement is calculated as a level
27.27percentage of an increasing payroll:
28.1 (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
28.2apply, unless a different salary assumption or a different payroll increase assumption:
28.3 (1) has been proposed by the governing board of the applicable retirement plan;
28.4 (2) is accompanied by the concurring recommendation of the actuary retained under
28.5section356.214, subdivision 1 , if applicable, or by the approved actuary preparing the
28.6most recent actuarial valuation report if section356.214 does not apply; and
28.7 (3) has been approved or deemed approved under subdivision 18.
28.8EFFECTIVE DATE.This section as it relates to the general state employees
28.9retirement plan of the Minnesota State Retirement System, the general employees
28.10retirement plan of the Public Employees Retirement Association, and the teachers
28.11retirement plan is effective retroactively from June 30, 2010, and as it relates to the public
28.12employees police and fire retirement plan is effective June 30, 2011.
28.15 Section 1. DEADLINE FOR REPORTS EXTENDED.
28.16Notwithstanding Minnesota Statutes, section 69.051, subdivision 1b, the deadline
28.17for reports submitted under Minnesota Statutes, section 69.051, subdivisions 1 and 1a,
28.18for 2009 is extended to April 30, 2011. A municipality or relief association does not
28.19forfeit its 2010 state aid or any future state aid if 2009 reports are received by the state
28.20auditor on or before April 30, 2011.
28.21EFFECTIVE DATE.This section is effective the day following final enactment.
28.22 Sec. 2. WHITE BEAR LAKE; SPECIAL ACTUARIAL WORK
28.23AUTHORIZATION.
28.24Notwithstanding any provision to the contrary of Minnesota Statutes, sections
28.2569.771, subdivision 3; 69.773, subdivisions 2, 4, and 5; 356.215; and 356.216, a document
28.26styled as an interim valuation at October 19, 2009, of the White Bear Lake Volunteer
28.27Fire Department Relief Association prepared by the actuarial consulting firm of Gabriel,
28.28Roeder, Smith & Company, as confirmed as to its funded status results by an actuarial
28.29valuation as of January 1, 2011, of the White Bear Lake Volunteer Fire Department Relief
28.30Association pension plan prepared by the actuarial consulting firm of Gabriel, Roeder,
28.31Smith & Company may be considered by the relief association officers, the city of White
28.32Bear Lake, and the Office of the State Auditor to be a qualifying actuarial valuation of
28.33the special fund of the relief association for the determination of the actuarial condition
29.1of the relief association and the financial requirements of the relief association amounts
29.2and the minimum municipal obligation amounts calculated by relief association officers
29.3certified to the city of White Bear Lake on or before August 1, 2009, and on or before
29.4August 1, 2010, may be considered by the City of White Bear Lake and by the Office of
29.5the State Auditor to be properly determined.
29.6EFFECTIVE DATE; LOCAL APPROVAL.This section is effective retroactively
29.7from July 31, 2009, if the White Bear Lake city council and the White Bear Lake chief
29.8clerical officer timely complete their compliance with Minnesota Statutes, section
29.9645.021, subdivisions 2 and 3.
29.12 Section 1. PERA-GENERAL; BABBITT AND BUHL SERVICE AND SALARY
29.13CREDIT PURCHASE AUTHORIZATION IN CERTAIN CASES.
29.14(a) An eligible person described in paragraph (b) is eligible to purchase from the
29.15general employees retirement plan of the Public Employees Retirement Association
29.16allowable service credit and salary credit for the period of uncredited prior employment
29.17and salary specified in paragraph (c) by making the payment required under paragraph (d).
29.18(b) An eligible person is a person who:
29.19(1) was born on November 10, 1957;
29.20(2) was employed as a part-time police officer by the city of Buhl from July 1988
29.21until November 1996;
29.22(3) was employed as a part-time police officer by Embarrass Township from March
29.231992 until August 1997;
29.24(4) was employed as a part-time police officer by the City of Babbitt from April
29.251992 until September 1992; and
29.26(5) was employed as a full-time police officer by the city of Babbitt since October 4,
29.271992, and as such is a member of the public employees police and fire retirement plan.
29.28(c) The periods of unreported employment and salary that qualified for coverage by
29.29the general employees retirement plan of the Public Employees Retirement Association
29.30and eligible for purchase are employment by the city of Buhl from October 1989 until
29.31November 1996 and employment by the city of Babbitt as a part-time police officer from
29.32April 1992 until September 1992.
29.33(d) The allowable service and salary credit purchase payment amount must be
29.34calculated under Minnesota Statutes, section 356.551. Of the total payment amount,
30.1the eligible person is obligated to pay the amount of member contributions that the
30.2eligible person would have paid by deduction to the coordinated program of the general
30.3employees retirement plan of the Public Employees Retirement Association if made in
30.4a timely fashion, plus annual compound interest at the rate of 8.5 percent from the date
30.5that the contribution should have been made until the date that the contribution equivalent
30.6payment is made. The balance of the total payment amount must be allocated between
30.7the city of Buhl and the city of Babbitt on the basis of the additional retirement benefit
30.8associated with the applicable period of past unreported eligible employment. The city
30.9of Buhl and the city of Babbitt shall make their payments within 30 days of the date on
30.10which the executive director of the Public Employees Retirement Association certifies that
30.11the eligible person has paid the equivalent member contribution payment and interest. If a
30.12city fails to make a timely payment, the executive director shall collect the unpaid amount
30.13under Minnesota Statutes, section 353.28.
30.14(e) The eligible person shall provide the executive director of the Public Employees
30.15Retirement Association with any necessary documentation of the applicability of this
30.16section that the executive director requests.
30.17(f) The authority of the eligible person to make the equivalent member contribution
30.18and interest payment under this section expires on the earlier of July 1, 2012, or the date
30.19on which the eligible person finally terminates public employment covered by Minnesota
30.20Statutes, chapter 353.
30.21EFFECTIVE DATE.This section is effective the day following final enactment.
30.22 Sec. 2. INDEPENDENT SCHOOL DISTRICT NO. 270, HOPKINS; SALARY
30.23CREDIT PURCHASE FOR PART-TIME TEACHING PROGRAM SERVICE
30.24AUTHORIZED.
30.25(a) An eligible person described in paragraph (b) is entitled, upon application to the
30.26executive director of the Teachers Retirement Association, to purchase salary credit from
30.27the Teachers Retirement Association for the period of part-time teaching service specified
30.28in paragraph (c) if the purchase payment required under paragraph (d) is paid on or before
30.29July 1, 2012, or the date of the person's retirement, whichever is earlier.
30.30(b) An eligible person is a person who:
30.31(1) was born on January 20, 1951;
30.32(2) was hired by Independent School District No. 270, Hopkins, as a teacher;
30.33(3) first participated in the qualified part-time teacher association membership
30.34program with a properly submitted teacher-school district agreement for the 2007-2008
30.35school year;
31.1(4) was employed part-time as a teacher by Independent School District No. 270,
31.2Hopkins, during the 2008-2009 school year, but the Minnesota Statutes, section 354.66,
31.3agreement was not filed with the Teachers Retirement Association until September 20,
31.42010; and
31.5(5) was employed by Independent School District No. 270, Hopkins, as a part-time
31.6teacher under Minnesota Statutes, section 354.66, for the 2009-2010 school year and
31.7for the 2010-2011 school year.
31.8(c) The period of part-time teaching service is the period during the 2008-2009
31.9school year during which the eligible person was paid 80 percent of the eligible person's
31.10full-time service salary rate for part-time teaching service rendered for Independent
31.11School District No. 270, Hopkins.
31.12(d) The total purchase payment amount for the increase in the annual salary credit
31.13for the 2008-2009 school year of $11,090.60 in the employ of Independent School
31.14District No. 270, Hopkins, is the service credit purchase payment amount required
31.15under Minnesota Statutes, section 356.551. The eligible person shall pay $609.98 plus
31.16compound interest at the annual rate of 8.5 percent from January 31, 2009, until the date
31.17of payment. Independent School District No. 270, Hopkins, must pay the balance of
31.18the purchase payment amount under Minnesota Statutes, section 356.551, in excess of
31.19the eligible person's payment amount. The school district payment is due 30 days after
31.20notification by the executive director of the Teachers Retirement Association that the
31.21eligible person's payment amount has been received by the association. If the school
31.22district fails to make the required payment in a timely manner, the executive director of
31.23the Teachers Retirement Association shall notify the commissioner of management and
31.24budget and the commissioner of education of that failure and those commissioners shall
31.25subtract the unpaid amount from and state aid otherwise payable to the school district.
31.26(e) Upon receipt by the Teachers Retirement Association of the total amount required
31.27under paragraph (d), the eligible person shall receive annual salary credit for an additional
31.28$11,090.60 for the 2008-2009 school year.
31.29(f) The salary credit purchase payment authorization under this section expires
31.30August 1, 2012.
31.31EFFECTIVE DATE.This section is effective the day following final enactment.
32.4 Section 1. Minnesota Statutes 2010, section 353.01, is amended by adding a
32.5subdivision to read:
32.6 Subd. 10a. Unit value; Minneapolis firefighters. "Unit value," for a member of
32.7the public employees police and fire retirement plan who was a member of the former
32.8Minneapolis Firefighters Relief Association on the day prior to the effective date of
32.9consolidation under section 19, is $82.32 for calendar year 2011, $96.899 for calendar
32.10year 2012, $100.775 for calendar year 2013, $104.264 for calendar year 2014, $124.031
32.11for calendar year 2015, and for calendar years after calendar year 2015, the prior year's
32.12unit value plus an increase equal to the adjustment percentage determined under section
32.13356.415, subdivision 1c, effective for the January 1 of the calendar year.
32.14 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 16, is amended to read:
32.15 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
32.16means:
32.17 (1) service during years of actual membership in the course of which employee
32.18deductions were withheld from salary and contributions were made at the applicable rates
32.19under section353.27 ,
353.65 , or
353E.03 ;
32.20(2) periods of service covered by payments in lieu of salary deductions under
32.21sections353.27, subdivision 12 , and
353.35 ;
32.22 (3) service in years during which the public employee was not a member but for
32.23which the member later elected, while a member, to obtain credit by making payments to
32.24the fund as permitted by any law then in effect;
32.25 (4) a period of authorized leave of absence with pay from which deductions for
32.26employee contributions are made, deposited, and credited to the fund;
32.27 (5) a period of authorized personal, parental, or medical leave of absence without
32.28pay, including a leave of absence covered under the federal Family Medical Leave Act,
32.29that does not exceed one year, and for which a member obtained service credit for each
32.30month in the leave period by payment under section353.0161 to the fund made in place of
32.31salary deductions. An employee must return to public service and render a minimum of
32.32three months of allowable service in order to be eligible to make payment under section
32.33353.0161
for a subsequent authorized leave of absence without pay. Upon payment, the
32.34employee must be granted allowable service credit for the purchased period;
33.1 (6) a periodic, repetitive leave that is offered to all employees of a governmental
33.2subdivision. The leave program may not exceed 208 hours per annual normal work cycle
33.3as certified to the association by the employer. A participating member obtains service
33.4credit by making employee contributions in an amount or amounts based on the member's
33.5average salary, excluding overtime pay, that would have been paid if the leave had not been
33.6taken. The employer shall pay the employer and additional employer contributions on
33.7behalf of the participating member. The employee and the employer are responsible to pay
33.8interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
33.9from the end of the normal cycle until full payment is made. An employer shall also make
33.10the employer and additional employer contributions, plus 8.5 percent interest, compounded
33.11annually, on behalf of an employee who makes employee contributions but terminates
33.12public service. The employee contributions must be made within one year after the end of
33.13the annual normal working cycle or within 30 days after termination of public service,
33.14whichever is sooner. The executive director shall prescribe the manner and forms to be
33.15used by a governmental subdivision in administering a periodic, repetitive leave. Upon
33.16payment, the member must be granted allowable service credit for the purchased period;
33.17 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
33.18months allowable service per authorized temporary or seasonal layoff in one calendar year.
33.19An employee who has received the maximum service credit allowed for an authorized
33.20temporary or seasonal layoff must return to public service and must obtain a minimum of
33.21three months of allowable service subsequent to the layoff in order to receive allowable
33.22service for a subsequent authorized temporary or seasonal layoff;
33.23 (8) a period during which a member is absent from employment by a governmental
33.24subdivision by reason of service in the uniformed services, as defined in United States
33.25Code, title 38, section 4303(13), if the member returns to public service with the same
33.26governmental subdivision upon discharge from service in the uniformed service within the
33.27time frames required under United States Code, title 38, section 4312(e), provided that
33.28the member did not separate from uniformed service with a dishonorable or bad conduct
33.29discharge or under other than honorable conditions. The service must be credited if the
33.30member pays into the fund equivalent employee contributions based upon the contribution
33.31rate or rates in effect at the time that the uniformed service was performed multiplied by
33.32the full and fractional years being purchased and applied to the annual salary rate. The
33.33annual salary rate is the average annual salary, excluding overtime pay, during the purchase
33.34period that the member would have received if the member had continued to be employed
33.35in covered employment rather than to provide uniformed service, or, if the determination
33.36of that rate is not reasonably certain, the annual salary rate is the member's average salary
34.1rate, excluding overtime pay, during the 12-month period of covered employment rendered
34.2immediately preceding the period of the uniformed service. Payment of the member
34.3equivalent contributions must be made during a period that begins with the date on which
34.4the individual returns to public employment and that is three times the length of the
34.5military leave period, or within five years of the date of discharge from the military service,
34.6whichever is less. If the determined payment period is less than one year, the contributions
34.7required under this clause to receive service credit may be made within one year of the
34.8discharge date. Payment may not be accepted following 30 days after termination of
34.9public service under subdivision 11a. If the member equivalent contributions provided for
34.10in this clause are not paid in full, the member's allowable service credit must be prorated
34.11by multiplying the full and fractional number of years of uniformed service eligible for
34.12purchase by the ratio obtained by dividing the total member contributions received by the
34.13total member contributions otherwise required under this clause. The equivalent employer
34.14contribution, and, if applicable, the equivalent additional employer contribution must be
34.15paid by the governmental subdivision employing the member if the member makes the
34.16equivalent employee contributions. The employer payments must be made from funds
34.17available to the employing unit, using the employer and additional employer contribution
34.18rate or rates in effect at the time that the uniformed service was performed, applied to the
34.19same annual salary rate or rates used to compute the equivalent member contribution. The
34.20governmental subdivision involved may appropriate money for those payments. The
34.21amount of service credit obtainable under this section may not exceed five years unless a
34.22longer purchase period is required under United States Code, title 38, section 4312. The
34.23employing unit shall pay interest on all equivalent member and employer contribution
34.24amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
34.25compounded annually from the end of each fiscal year of the leave or the break in service
34.26to the end of the month in which the payment is received. Upon payment, the employee
34.27must be granted allowable service credit for the purchased period; or
34.28(9) a period specified under subdivision 40.
34.29 (b) For calculating benefits under sections353.30 ,
353.31 ,
353.32 , and
353.33 for
34.30state officers and employees displaced by the Community Corrections Act, chapter 401,
34.31and transferred into county service under section401.04 , "allowable service" means the
34.32combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
34.33section352.01, subdivision 11 .
34.34 (c) For a public employee who has prior service covered by a local police or
34.35firefighters relief association that has consolidated with the Public Employees Retirement
34.36Association under chapter 353A or to which section353.665 applies, and who has elected
35.1the type of benefit coverage provided by the public employees police and fire fund either
35.2under section353A.08 following the consolidation or under section
353.665, subdivision
35.34 , "applicable allowable service" is a period of service credited by the local police or
35.4firefighters relief association as of the effective date of the consolidation based on law
35.5and on bylaw provisions governing the relief association on the date of the initiation
35.6of the consolidation procedure.
35.7 (d) No member may receive more than 12 months of allowable service credit in
35.8a year either for vesting purposes or for benefit calculation purposes. For an active
35.9member who was an active member of the former Minneapolis Firefighters Relief
35.10Association on the day prior to the effective date of consolidation under section 19,
35.11"allowable service" is the period of service credited by the Minneapolis Firefighters Relief
35.12Association as reflected in the transferred records of the association up to the effective
35.13date of consolidation under section 19 and the period of service credited under paragraph
35.14(a), clause (1), after the effective date of consolidation under section 19.
35.15 (e) MS 2002 [Expired]
35.16 Sec. 3. Minnesota Statutes 2010, section 353.03, is amended by adding a subdivision
35.17to read:
35.18 Subd. 3b. Additional duties. The executive director shall deduct from the annuity
35.19or benefit periodically the amount of any dues of any fraternal organization continuing or
35.20established after the effective date of consolidation under section 19 for former members
35.21of the former Minneapolis Firefighters Relief Association.
35.22 Sec. 4. Minnesota Statutes 2010, section 353.65, subdivision 1, is amended to read:
35.23 Subdivision 1. Fund established. (a) The public employees police and fire fund
35.24is established for police officers and firefighters who meet the eligibility criteria under
35.25section353.64 .
35.26(b) Employee contributions other than those made under subdivision 2, paragraph
35.27(b), employer contributions under subdivision 3 and under section 353.667, subdivision 6,
35.28other than the excess contribution established by section69.031, subdivision 5 , paragraphs
35.29(2), clauses (b) and (c), and (3), and other amounts authorized by law, including all
35.30employee and employer contributions of members transferred, must be deposited in the
35.31public employees police and fire fund.
35.32 Sec. 5. Minnesota Statutes 2010, section 353.65, subdivision 2, is amended to read:
36.1 Subd. 2. Employee contribution. (a) For members other than members who were
36.2active members of the former Minneapolis Firefighters Relief Association on the day prior
36.3to the effective date of consolidation under section 19, the employee contribution is 9.4
36.4percent of the salary of the member in calendar year 2010 and is 9.6 percent of the salary
36.5of the member in each calendar year after 2010.This contribution
36.6(b) For members who were active members of the former Minneapolis Firefighters
36.7Relief Association on the day prior to the effective date of consolidation under section 19,
36.8the employee contribution is an amount equal to eight percent of the monthly unit value
36.9under section 353.01, subdivision 10a, multiplied by 80 and expressed as a biweekly
36.10amount for each member. The employee contribution made by a member with at least
36.1125 years of service credit as an active member of the former Minneapolis Firefighters
36.12Relief Association must be deposited in the postretirement health care savings account
36.13established under 352.98.
36.14(c) Contributions under this section must be made by deduction from salary in
36.15the manner provided in subdivision 4. Where any portion of a member's salary is paid
36.16from other than public funds, the member's employee contribution is based on the total
36.17salary received from all sources.
36.18 Sec. 6. Minnesota Statutes 2010, section 353.65, subdivision 3, is amended to read:
36.19 Subd. 3. Employer contribution. (a) With respect to members other than members
36.20who were active members of the former Minneapolis Firefighters Relief Association
36.21on the day prior to the effective date of consolidation under section 19, the employer
36.22contribution is 14.1 percent of the salary of the member in calendar year 2010 and is 14.4
36.23percent of the salary of the member in each calendar year after 2010.This contribution
36.24(b) With respect to members who were active members of the former Minneapolis
36.25Firefighters Relief Association on the day prior to the effective date of consolidation under
36.26section 19, the employer contribution is an amount equal to the amount of the member
36.27contributions under subdivision 2, paragraph (b).
36.28(c) Contributions under this subdivision must be made from funds available to the
36.29employing subdivision by the means and in the manner provided in section353.28 .
36.30 Sec. 7. Minnesota Statutes 2010, section 353.651, subdivision 1, is amended to read:
36.31 Subdivision 1. Age and allowable service requirements. Upon separation from
36.32public service, any police officer or firefighter member, other than a firefighter covered
36.33by section 353.6511, who has attained the age of at least 55 years and who is vested
37.1under section353.01, subdivision 47 , is entitled upon application to a retirement annuity,
37.2known as the "normal" retirement annuity.
37.3 Sec. 8. [353.6511] ALTERNATIVE RETIREMENT BENEFIT COVERAGE IN
37.4CERTAIN INSTANCES.
37.5 Subdivision 1. Applicability. The alternative benefit coverage under this section
37.6applies only to an active member of the public employees police and fire retirement plan
37.7who was an active member of the former Minneapolis Firefighters Relief Association on
37.8the day prior to the consolidation effective date under section 19 and who retires after the
37.9consolidation effective date under section 19.
37.10 Subd. 2. Retirement annuity. (a) A member described in subdivision 1, if the
37.11member meets the eligibility requirements of paragraph (b), is only entitled to a retirement
37.12annuity under this subdivision.
37.13(b) The member, upon application, if the person is at least age 50 and has credit for
37.14at least 20 years of allowable service, is entitled to a normal retirement annuity. The
37.15normal retirement annuity is the following amount based on the service credit of the
37.16retiring member as a Minneapolis firefighter:
37.29(c) For a retired member who was unmarried on September 1, 1997, and also
37.30on October 25, 2001, who had 25 years of service credit as of October 25, 2001, and
37.31submitted a valid application for the alternative service pension under section 423C.05,
37.32subdivision 9, the retirement annuity amount is 43.3 units.
37.33 Subd. 3. Disability benefit. A member described in subdivision 1, if the member
37.34is disabled under section 353.01, subdivision 41 or 46, is entitled to a disability benefit
37.35equal to 41 units.
38.1 Subd. 4. Surviving spouse benefit. A surviving spouse under section 353.01,
38.2subdivision 20, of a deceased member described in subdivision 1 is entitled to a surviving
38.3spouse benefit equal to 23 units.
38.4 Subd. 5. Surviving dependent child benefit. A surviving dependent child under
38.5section 353.01, subdivision 15a, of a deceased member described in subdivision 1 is
38.6entitled to a surviving child benefit equal to eight units.
38.7 Subd. 6. Surviving family benefit maximum. The surviving spouse and surviving
38.8dependent child under subdivisions 4 and 5 are entitled to a combined family benefit under
38.9subdivisions 4 and 5 of 43 units.
38.10 Subd. 7. Postretirement adjustments. (a) Effective on the first day of the month
38.11next following the effective date of the consolidation under section 19, service pensions
38.12and survivor benefits in force are entitled to be recomputed with the number of units
38.13specified in subdivision 2, subdivision 4, and subdivision 6. Optional annuities under
38.14section 423C.05, subdivision 8, also are entitled to be recomputed as the actuarial
38.15equivalent of the service pensions and survivor benefits with the number of units
38.16specified in subdivision 2, subdivision 4, and subdivision 6. Retirement annuities, service
38.17pensions, disability benefits, and survivor benefits after December 31, 2015, are eligible
38.18for postretirement adjustments under section 356.415, subdivision 1c. The unit value
38.19for the calculation of a retirement annuity first payable after December 31, 2015, is the
38.20calendar year 2015 unit value, plus any postretirement adjustment percentage amount
38.21under section 356.415, subdivision 1c, payable after December 31, 2015, and before the
38.22date of retirement.
38.23 Subd. 8. Savings clause; dispute resolution. In the event of any dispute by or on
38.24behalf of any former member of the consolidating relief association after the effective date
38.25of consolidation over the amount of a benefit to which the person may be entitled, the
38.26proper interpretation of a provision of this article, or the conformity of the provisions of
38.27this article to the provisions of the benefit plan of the consolidating relief association in
38.28effective immediately before the date of the consolidation, the dispute shall be submitted
38.29in writing to the Legislative Commission on Pensions and Retirement by the person
38.30who is a party to the dispute, by the fraternal organization related to the former relief
38.31association, or by the executive director of the Public Employees Retirement Association.
38.32The Legislative Commission on Pensions and Retirement shall review the dispute as
38.33part of its deliberations on proposed or pending retirement legislation and shall make its
38.34recommendation on the resolution of the dispute, if any, to the appropriate committees of
38.35the senate and house of representatives with jurisdiction over public employee pension
38.36matters in the form of the necessary legislation amending the provisions of this article,
39.1which proposed legislation must include retroactivity of any increase in a benefit amount
39.2to the date on which the benefit subject to dispute accrued or would have accrued.
39.3 Sec. 9. Minnesota Statutes 2010, section 353.656, subdivision 1, is amended to read:
39.4 Subdivision 1. Duty disability; computation of benefits. (a) A member of
39.5the police and fire plan, other than a firefighter covered by section 353.6511, who is
39.6determined to qualify for duty disability as defined in section353.01 , subdivision 41,
39.7shall receive disability benefits during the period of such disability in an amount equal to
39.860 percent of the average salary as defined in section353.01, subdivision 17a , plus an
39.9additional percentage specified under section356.315 , subdivision 6, of that average
39.10salary for each year of service in excess of 20 years.
39.11 (b) To be eligible for a benefit under paragraph (a), the member must have:
39.12 (1) not met the requirements for a retirement annuity under section353.651 ,
39.13subdivision 1; or
39.14 (2) met the requirements under that subdivision, but does not have at least 20 years
39.15of allowable service credit.
39.16 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
39.17period of 60 months from the disability benefit accrual date and at the end of that period
39.18is subject to provisions of subdivision 5a.
39.19 (d) If the disability under this subdivision occurs before the member has at least five
39.20years of allowable service credit in the police and fire plan, the disability benefit must be
39.21computed on the average salary from which deductions were made for contribution to
39.22the police and fire fund.
39.23 Sec. 10. Minnesota Statutes 2010, section 353.656, subdivision 1a, is amended to read:
39.24 Subd. 1a. Total and permanent duty disability; computation of benefits. (a) A
39.25member of the police and fire plan, other than a firefighter covered by section 353.6511,
39.26whose disabling condition is determined to be a duty disability that is also a permanent
39.27and total disability as defined in section353.01 , subdivision 19, is entitled to receive, for
39.28life, disability benefits in an amount equal to 60 percent of the average salary as defined in
39.29section353.01, subdivision 17a , plus an additional percent specified in section
356.315,
39.30subdivision 6 , of that average salary for each year of service in excess of 20 years.
39.31 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
39.32under section353.33, subdivision 6 , but the review may be waived if the executive
39.33director receives a written statement from the association's medical advisor that no
39.34improvement can be expected in the member's disabling condition that was the basis for
40.1payment of the benefit under paragraph (a). A member receiving a disability benefit
40.2under this subdivision who is found to no longer be permanently and totally disabled as
40.3defined under section353.01, subdivision 19 , but continues to meet the definition for
40.4receipt of a duty disability under section353.01, subdivision 41 , is subject to subdivision
40.51 upon written notice from the association's medical advisor that the person is no longer
40.6considered permanently and totally disabled.
40.7 (c) If a member approved for disability benefits under this subdivision dies before
40.8attaining normal retirement age as defined in section353.01, subdivision 37 , paragraph
40.9(b), or within 60 months of the effective date of the disability, whichever is later,
40.10the surviving spouse is entitled to receive a survivor benefit under section353.657 ,
40.11subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
40.12condition for which disability benefits were approved, or section353.657, subdivision
40.132, paragraph (a), clause (2), if the death is not directly related to the disabling condition
40.14for which benefits were approved under this subdivision.
40.15 (d) If the election of an actuarial equivalent optional annuity is not made at the time
40.16the permanent and total disability benefit accrues, an election must be made within 90
40.17days before the member attains normal retirement age as defined under section353.01 ,
40.18subdivision 37, paragraph (b), or having collected total and permanent disability benefits
40.19for 60 months, whichever is later. If a member receiving disability benefits who has
40.20dependent children dies, subdivision 6a, paragraph (c), applies.
40.21 Sec. 11. Minnesota Statutes 2010, section 353.656, subdivision 3, is amended to read:
40.22 Subd. 3. Regular disability benefit. (a) A member of the police and fire plan, other
40.23than a firefighter covered by section 353.6511, who qualifies for a regular disability benefit
40.24as defined in section353.01 , subdivision 46, is entitled to receive a disability benefit,
40.25after filing a valid application, in an amount equal to 45 percent of the average salary as
40.26defined in section353.01 , subdivision 17a.
40.27 (b) To be eligible for a benefit under paragraph (a), the member must have at least
40.28one year of allowable service credit and have:
40.29 (1) not met the requirements for a retirement annuity under section353.651 ,
40.30subdivision 1, or
40.31 (2) met the requirements under that subdivision, but does not have at least 15 years
40.32of allowable service credit.
40.33 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
40.34period of 60 months from the disability benefit accrual date and, at the end of that period,
40.35is subject to provisions of subdivision 5a.
41.1 (d) For a member who is employed as a full-time firefighter by the Department of
41.2Military Affairs of the state of Minnesota, allowable service as a full-time state Military
41.3Affairs Department firefighter credited by the Minnesota State Retirement System may be
41.4used in meeting the minimum allowable service requirement of this subdivision.
41.5 Sec. 12. Minnesota Statutes 2010, section 353.656, subdivision 3a, is amended to read:
41.6 Subd. 3a. Total and permanent regular disability; computation of benefits. (a)
41.7A member of the police and fire plan, other than a firefighter covered by section 353.6511,
41.8whose disabling condition is determined to be a regular disability under section353.01,
41.9subdivision 46 , that is also a permanent and total disability as defined in section
353.01,
41.10subdivision 19 , is entitled to receive, for life, a disability benefit in an amount equal to
41.1145 percent of the average salary as defined in section353.01, subdivision 17a , plus an
41.12additional percent specified in section356.315 , subdivision 6, of that average salary for
41.13each year of service in excess of 15 years.
41.14 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
41.15under section353.33, subdivision 6 , but the review may be waived if the executive
41.16director receives a written statement from the association's medical advisor that no
41.17improvement can be expected in the member's disabling condition that was the basis for
41.18payment of the benefit under paragraph (a). A member receiving a disability benefit under
41.19this subdivision who is found to no longer be permanently and totally disabled as defined
41.20under section353.01, subdivision 19 , but continues to meet the definition for receipt
41.21of a regular disability under section353.01, subdivision 46 , is subject to subdivision 3
41.22upon written notice from the association's medical advisor that the person is no longer
41.23considered permanently and totally disabled.
41.24 (c) A member approved for disability benefits under this subdivision may elect
41.25to receive a normal disability benefit or an actuarial equivalent optional annuity. If the
41.26election of an actuarial equivalent optional annuity is not made at the time the total and
41.27permanent disability benefit accrues, an election must be made within 90 days before
41.28the member attains normal retirement age as defined in section353.01, subdivision 37 ,
41.29paragraph (b), or having collected disability benefits for 60 months, whichever is later.
41.30No surviving spouse benefits are payable if the member dies during the period in which
41.31a normal total and permanent disability benefit is being paid. If a member receiving
41.32disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
41.33 Sec. 13. Minnesota Statutes 2010, section 353.657, subdivision 1, is amended to read:
42.1 Subdivision 1. Generally. (a) In the event that a member of the police and fire fund,
42.2other than a firefighter covered by section 353.6511, dies from any cause before retirement
42.3or before becoming disabled and receiving disability benefits, the association shall grant
42.4survivor benefits to a surviving spouse, as defined in section353.01, subdivision 20 , and
42.5to a dependent child or children, as defined in section353.01, subdivision 15 , except
42.6that if the death is not a line of duty death, the member must be vested under section
42.7353.01, subdivision 47
.
42.8 (b) Notwithstanding the definition of surviving spouse, a former spouse of the
42.9member, if any, is entitled to a portion of the monthly surviving spouse benefit if
42.10stipulated under the terms of a marriage dissolution decree filed with the association. If
42.11there is no surviving spouse or child or children, a former spouse may be entitled to
42.12a lump-sum refund payment under section353.32, subdivision 1 , if provided for in a
42.13marriage dissolution decree but not a monthly surviving spouse benefit despite the terms
42.14of a marriage dissolution decree filed with the association.
42.15 (c) The spouse and child or children are entitled to monthly benefits as provided in
42.16subdivisions 2 to 4.
42.17 Sec. 14. [353.667] CONSOLIDATION OF THE MINNEAPOLIS
42.18FIREFIGHTERS RELIEF ASSOCIATION.
42.19 Subdivision 1. Membership transfer. On the effective date of consolidation under
42.20section 19, the active, inactive, and retired members, including surviving spouses, of the
42.21Minneapolis Firefighters Relief Association are transferred to the public employees police
42.22and fire retirement plan, are no longer members of the Minneapolis Firefighters Relief
42.23Association, and are members of the public employees police and fire retirement plan.
42.24 Subd. 2. Service credit and benefit liability transfer. (a) Allowable service
42.25credit and base salary credit of the active members of the Minneapolis Firefighters
42.26Relief Association, as contained in the records of the Minneapolis Firefighters Relief
42.27Association through the day before the effective date of consolidation under section 19,
42.28are transferred to the public employees police and fire retirement plan and is credited as
42.29provided in section 353.01, subdivisions 10a and 16, paragraph (c), on the effective date
42.30of consolidation under section 19.
42.31(b) The liability for the payment of retirement annuities, service pensions, and
42.32retirement and surviving spouse benefits of the Minneapolis Firefighters Relief Association
42.33retired members, service pensioners, disabilitants, surviving spouses, and other retirement
42.34benefit recipients as specified in the records of the Minneapolis Firefighters Relief
43.1Association is transferred to the public employees police and fire retirement plan on the
43.2effective date of consolidation under section 19.
43.3 Subd. 3. Transfer of records. On the effective date of the consolidation under
43.4section 19, the chief administrative officer of the Minneapolis Firefighters Relief
43.5Association shall transfer all records and documents relating to the special fund of the
43.6Minneapolis Firefighters Relief Association to the executive director of the Public
43.7Employees Retirement Association. To the extent possible, original copies of all records
43.8and documents must be transferred.
43.9 Subd. 4. Transfer of assets; transfer of title to assets. (a) On the effective date
43.10of the consolidation under section 19, the chief administrative officer of the Minneapolis
43.11Firefighters Relief Association shall transfer the entire assets of the special fund of the
43.12Minneapolis Firefighters Relief Association other than the health insurance account to
43.13the public employees police and fire retirement fund at market value. Unless ineligible
43.14or inappropriate, the transfer must be in the form of investment securities and must
43.15include any accounts receivable that are determined by the State Board of Investment as
43.16being capable of being collected. An amount, in cash, must be transferred by the city of
43.17Minneapolis equal to the market value recognized by the relief association of investment
43.18securities that are determined by the executive director of the State Board of Investment
43.19not to be in compliance with the requirements and limitations set forth in sections
43.2011A.09, 11A.14, 11A.23, and 11A.24 or not to be appropriate for retention in light of
43.21the established investment objectives of the State Board of Investment or of accounts
43.22receivable determined as being incapable of being collected by the executive director of
43.23the State Board of Investment. Legal and beneficial title to assets that are determined
43.24noncompliant or inappropriate securities or that are uncollectible accounts receivable are
43.25transferred to the city of Minneapolis on the effective date of consolidation under section
43.2619. Any accounts payable on the effective date of consolidation under section 19 are
43.27an obligation of the public employees police and fire retirement fund and reduce the
43.28asset value for purposes of subdivision 6. The transferred assets must be deposited in the
43.29public employees police and fire retirement fund. The amount of the transferred health
43.30insurance account must remain deposited in the financial institution retained by the former
43.31Minneapolis Firefighters Relief Association on May 1, 2011, and that financial institution
43.32must act as the custodian of the account. The financial institution shall perform all trustee
43.33and fiduciary duties with respect to the account as a condition to the retention of the
43.34account. The executive director of the Minneapolis Firefighters Relief Association, prior to
43.35the effective date of consolidation, shall estimate three calendar years of the administrative
43.36expenses related to the operation of the account and shall prepay those expenses from the
44.1account to the financial institution before the effective date of consolidation. After the
44.2three-year prepayment period, the beneficiaries of the account are responsible for the
44.3payment of the administrative expenses related to the operation of the account.
44.4(b) Upon the transfer of assets to the State Board of Investment under paragraph
44.5(a), legal title to those transferred assets vests with the State Board of Investment on
44.6behalf of the public employees police and fire retirement plan, and beneficial title to
44.7the transferred assets remains with the former membership of the former Minneapolis
44.8Firefighters Relief Association.
44.9(c) The public employees police and fire retirement plan and fund is the successor in
44.10interest to all claims for or against the Minneapolis Firefighters Relief Association. The
44.11public employees police and fire retirement plan and fund is not liable for any claim
44.12against the Minneapolis Firefighters Relief Association, its governing board, or its
44.13administrative staff acting in a fiduciary capacity, under chapter 356A or common law,
44.14which is founded upon a claim of a breach of fiduciary duty if the act or acts constituting
44.15the claimed breach were not undertaken in good faith. The public employees police and
44.16fire retirement plan may assert any applicable defense to any claim in any judicial or
44.17administrative proceeding that the Minneapolis Firefighters Relief Association, its board,
44.18or its administrative staff would otherwise have been entitled to assert, and the public
44.19employees police and fire retirement plan may assert any applicable defense that it has in
44.20its capacity as a statewide agency.
44.21(d) The Public Employees Retirement Association shall indemnify any former
44.22fiduciary of the Minneapolis Firefighters Relief Association consistent with the
44.23provisions of section 356A.11. The indemnification may be effected by the purchase
44.24by the Public Employees Retirement Association of reasonable fiduciary liability tail
44.25insurance for the officers and directors of the former Minneapolis Firefighters Relief
44.26Association. Consistent with section 69.80, the relief association may purchase reasonable
44.27fiduciary liability tail insurance for its officers and directors prior to the effective date of
44.28consolidation under section 19.
44.29(e) Office equipment and other physical assets of the special fund of the Minneapolis
44.30Firefighters Relief Association that are not needed by the Public Employees Retirement
44.31Association may be sold by the special fund of the Minneapolis Firefighters Relief
44.32Association to the general fund of the Minneapolis Firefighters Relief Association or to
44.33any successor fraternal organization of the Minneapolis Firefighters Relief Association at
44.34fair market value, with the proceeds of that sale deposited in the public employees police
44.35and fire retirement fund and included in the transferred asset value under subdivision 6.
45.1 Subd. 5. Benefits. The annuities, service pensions, and other retirement benefits of
45.2or attributable to retired, disabled, deferred, surviving spouse, or inactive Minneapolis
45.3Firefighters Relief Association members who had that status as of the day before the
45.4effective date of consolidation under section 19 continue after consolidation in the same
45.5amount and under the same terms as provided in chapter 423C except that the unit value is
45.6governed by section 353.01, subdivision 10a, and the postretirement adjustments after
45.7December 31, 2015, must be calculated solely under section 353.6511, subdivision 8.
45.8 Subd. 6. Additional employer contributions. (a) As of the effective date of the
45.9consolidation under section 19, the approved actuary retained by the Public Employees
45.10Retirement Association shall calculate the present value of future benefits of the former
45.11Minneapolis Firefighters Relief Association, and, after subtracting the market value of
45.12the transferred assets of the former Minneapolis Firefighters Relief Association and the
45.13present value of the employer contribution under section 353.65, subdivision 3, paragraph
45.14(b), shall calculate the remainder present value of future benefits amount. Annually,
45.15following the effective date of consolidation under section 19, the city of Minneapolis
45.16shall pay an amount sufficient to amortize on a level annual dollar basis the remainder
45.17present value of future benefits amount by December 31, 2031. The amortization payment
45.18is payable annually on July 15, beginning in the year following the effective date of the
45.19consolidation. The 2012 payment should be estimated based on the provisions of this
45.20legislation. The July 2013 payment shall be adjusted based on the final actuarial valuation.
45.21(b) If the postretirement or preretirement interest rate actuarial assumption applicable
45.22to the public employees police and fire retirement plan under section 356.215, subdivision
45.238, is modified from the rates specified in section 356.215, subdivision 8, the remainder
45.24present value of future benefits amount calculation under paragraph (a), updated for
45.25the passage of time, must be revised and the amortization contribution by the city of
45.26Minneapolis for the balance of the amortization period must be redetermined and certified
45.27to the city of Minneapolis.
45.28 Subd. 7. Health and dental insurance program deductions. The executive
45.29director shall withhold any health insurance or dental insurance premiums designated
45.30by the annuitant or benefit recipient and shall transfer them to the city of Minneapolis.
45.31The Public Employees Retirement Association may charge a necessary and reasonable
45.32monthly administrative fee to the city of Minneapolis for this function and bill it in
45.33addition to the employer contribution under section 353.65, subdivision 3, paragraph (b).
45.34Notwithstanding any provision of chapter 13 to the contrary, the executive director shall
45.35provide the city of Minneapolis with the current addresses of former members of the
45.36Minneapolis Firefighters Relief Association.
46.1 Subd. 8. Cooperation with fraternal organization. (a) This subdivision applies if
46.2the membership of the former Minneapolis Firefighters Relief Association approves the
46.3continuation of the relief association as a fraternal organization under section 16.
46.4(b) The executive director shall cooperate with the Minneapolis firefighters fraternal
46.5association to insure adequate communication with the former members of the former
46.6Minneapolis Firefighters Relief Association consistent with Public Employees Retirement
46.7Association policy.
46.8 Subd. 9. Fire insurance surcharge. Notwithstanding any provision of section
46.9297I.10 to the contrary, the proceeds of the first class city fire insurance premium tax
46.10surcharge with respect to Minneapolis must be paid to the city of Minneapolis to defray a
46.11portion of the employer retirement cost under section 353.65, subdivision 3, with respect
46.12to Minneapolis firefighters.
46.13 Sec. 15. Minnesota Statutes 2010, section 423A.02, subdivision 1b, is amended to read:
46.14 Subd. 1b. Additional amortization state aid. (a) Annually, on October 1, the
46.15commissioner of revenue shall allocate the additional amortization state aid transferred
46.16under section69.021, subdivision 11 , to:
46.17 (1) all police or salaried firefighters relief associations governed by and in full
46.18compliance with the requirements of section69.77 , that had an unfunded actuarial accrued
46.19liability in the actuarial valuation prepared under sections356.215 and
356.216 as of the
46.20preceding December 31;
46.21 (2) all local police or salaried firefighter consolidation accounts governed by chapter
46.22353A that are certified by the executive director of the public employees retirement
46.23association as having for the current fiscal year an additional municipal contribution
46.24amount under section353A.09, subdivision 5 , paragraph (b), and that have implemented
46.25section353A.083, subdivision 1 , if the effective date of the consolidation preceded May
46.2624, 1993, and that have implemented section353A.083, subdivision 2 , if the effective date
46.27of the consolidation preceded June 1, 1995; and
46.28 (3) the municipalities that are required to make an additional municipal contribution
46.29under section353.665, subdivision 8 , or 353.667, subdivision 6, for the duration of the
46.30required additional contribution.
46.31 (b) The commissioner shall allocate the state aid on the basis of the proportional share
46.32of the relief association or consolidation account of the total unfunded actuarial accrued
46.33liability of all recipient relief associations and consolidation accounts as of December 31,
46.341993, for relief associations, and as of June 30, 1994, for consolidation accounts.
47.1 (c) Beginning October 1, 2000, and annually thereafter, the commissioner shall
47.2allocate the state aid, including any state aid in excess of the limitation in subdivision
47.34, on the following basis:
47.4 (1) 64.5 percent to the municipalities to which section353.665, subdivision
47.58 , paragraph (b), or
353A.09, subdivision 5 , paragraph (b), apply for distribution in
47.6accordance with paragraph (b) and subject to the limitation in subdivision 4;
47.7 (2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued
47.8liability in the actuarial valuation prepared under sections356.215 and
356.216 as of the
47.9preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
47.10Fire Department Relief Association; and
47.11 (3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability
47.12in the actuarial valuation prepared under sections356.215 and
356.216 as of the preceding
47.13December 31 for the Virginia Fire Department Relief Association.
47.14 If there is no unfunded actuarial accrued liability in both the Minneapolis Police
47.15Relief Association and the Minneapolis Fire Department Relief Association as disclosed
47.16in the most recent actuarial valuations for the relief associations prepared under sections
47.17356.215
and
356.216 , the commissioner shall allocate that 34.2 percent of the aid as
47.18follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
47.19Teachers Retirement Fund Association, and 30 percent as additional funding to support
47.20minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded
47.21actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed
47.22in the most recent actuarial valuation for the relief association prepared under sections
47.23356.215
and
356.216 , the commissioner shall allocate that
1.3 percent of the aid as
47.24follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
47.25Teachers Retirement Fund Association, and 30 percent as additional funding to support
47.26minimum fire state aid for volunteer firefighters relief associations. Upon the final
47.27payment to municipalities required by section353.665, subdivision 8 , paragraph (b),
47.28or353A.09, subdivision 5 , paragraph (b), the commissioner shall allocate that 64.5
47.29percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund
47.30Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued
47.31liability in the actuarial valuation proposed under sections356.215 and
356.216 as of the
47.32preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
47.33Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs
47.34associated with the police and firefighters pensions, and 40 percent as additional funding to
47.35support minimum fire state aid for volunteer firefighters relief associations. The allocation
47.36must be made by the commissioner at the same time and under the same procedures
48.1as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund
48.2Association, annually, beginning on July 1, 2005, if the applicable teacher's association
48.3five-year average time-weighted rate of investment return does not equal or exceed the
48.4performance of a composite portfolio assumed passively managed (indexed) invested ten
48.5percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent
48.6in domestic stock calculated using the formula under section11A.04 , clause (11), the aid
48.7allocation to that retirement fund under this section ceases until the five-year annual rate
48.8of investment return equals or exceeds the performance of that composite portfolio.
48.9 (d) The amounts required under this subdivision are the amounts annually
48.10appropriated to the commissioner of revenue under section69.021, subdivision 11 ,
48.11paragraph (e).
48.12 Sec. 16. MINNEAPOLIS FIREFIGHTERS RELIEF ASSOCIATION; SPECIAL
48.13ACTUARIAL VALUATION PENDING CONSOLIDATION.
48.14(a) On or before August 1, 2011, the approved actuarial consulting firm retained by
48.15the Public Employees Retirement Association under Minnesota Statutes, section 356.214,
48.16shall prepare an alternative actuarial valuation of the Minneapolis Firefighters Relief
48.17Association under Minnesota Statutes, section 356.215, and the most recent standards
48.18for actuarial work adopted by the Legislative Commission on Pensions and Retirement
48.19as of August 11, 2010, using the applicable actuarial assumptions and the applicable
48.20amortization target date of the public employee police and fire retirement plan.
48.21(b) The officers of the Minneapolis Firefighters Relief Association shall supply the
48.22approved actuary retained by the Public Employees Retirement Association with the
48.23financial and demographic data necessary to perform the alternative actuarial valuation.
48.24(c) The alternative actuarial valuation of the Minneapolis Firefighters Relief
48.25Association must be filed with the mayor of the city of Minneapolis, with the Minneapolis
48.26city coordinator, with the executive director of the Minneapolis Firefighters Relief
48.27Association, with the executive director of the Public Employees Retirement Association,
48.28with the executive director of the Legislative Commission on Pensions and Retirement,
48.29and with the Legislative Reference Library.
48.30(d) The expense of preparing the alternative actuarial valuation must be paid by the
48.31city of Minneapolis within 30 days of its certification to the finance director of the city of
48.32Minneapolis by the executive director of the Public Employees Retirement Association.
48.33 Sec. 17. TERMINATION OF THE RELIEF ASSOCIATION.
49.1(a) On the effective date of the consolidation under section 19, the special fund of
49.2the Minneapolis Firefighters Relief Association ceases to exist.
49.3(b) The Minneapolis Firefighters Relief Association shall provide for the
49.4continuation of the relief association as a fraternal organization other than as a pension or
49.5retirement organization and shall approve the changes in its articles of incorporation and
49.6bylaws necessary to effect that redesignation and reorganization of the organization.
49.7(c) If the Minneapolis Firefighters Relief Association continues the relief association
49.8as a fraternal organization under paragraph (b), the transfer of relief association assets
49.9under Minnesota Statutes, section 353.667, subdivision 4, must not include assets of the
49.10Minneapolis Firefighters Relief Association general fund, which must be retained by
49.11the fraternal organization for organization purposes other than for pension or retirement
49.12benefit payment purposes.
49.13(d) As of the effective date of the consolidation under section 19, the employment
49.14of the employees of the Minneapolis Firefighters Relief Association terminates. The
49.15employees of the Minneapolis Firefighters Relief Association who were employed by the
49.16relief association before May 1, 2011, have an employment preference with the Public
49.17Employees Retirement Association equal to that under the veterans preference act.
49.18(e) If, on the day following approval of this article by the Minneapolis city council,
49.19the consolidation has been approved by all applicable entities under section 19, the officers
49.20of the Minneapolis Firefighters Relief Association shall certify to the city of Minneapolis
49.21and to the Hennepin County auditor the financial requirements of the relief association and
49.22the minimum municipal obligation under Minnesota Statutes, section 69.77, subdivision 4,
49.23revised consistent with the actuarial valuation results under Minnesota Statutes, section
49.24423A.02, subdivision 1b.
49.25(f) After the effective date of consolidation under section 19, the city of Minneapolis
49.26shall continue to administer the health and dental insurance programs as constituted on
49.27May 1, 2011, for the former members of the former Minneapolis Firefighters Relief
49.28Association, transferring premiums as required.
49.29 Sec. 18. REPEALER.
49.30Minnesota Statutes 2010, sections 423A.021; 423C.01; 423C.02; 423C.03; 423C.04;
49.31423C.05; 423C.06; 423C.07; 423C.08; 423C.09; 423C.10; 423C.11; 423C.12; 423C.13;
49.32423C.14; 423C.15; and 423C.16, are repealed.
49.33 Sec. 19. EFFECTIVE DATE; LOCAL APPROVAL.
50.1(a) Sections 1 to 16, 17, paragraphs (a) to (d), and 18 are effective December 30,
50.22011, if the board of trustees of the Minneapolis Firefighters Relief Association approves
50.3the article and if a majority of the entire membership of the Minneapolis Firefighters Relief
50.4Association approves the article, if the chief administrative officer of the Minneapolis
50.5Firefighters Relief Association certifies those approvals to the mayor of the city of
50.6Minneapolis and the president of the Minneapolis city council before September 15,
50.72011, if the board of trustees of the Public Employees Retirement Association approves
50.8the article, if the executive director of the Public Employees Retirement Association
50.9certifies that approval to the mayor of the city of Minneapolis and the president of the
50.10Minneapolis city council, if the governing body of the city of Minneapolis and the chief
50.11clerical officer of Minneapolis timely complete their compliance with Minnesota Statutes,
50.12section 645.021, subdivisions 2 and 3, on or before October 15, 2011, or on the date set by
50.13the board of trustees of the Public Employees Retirement Association, in consultation with
50.14the mayor of the city of Minneapolis and the executive director of the relief association, at
50.15the first regular meeting of the Public Employees Retirement Association board of trustees
50.16occurring after Minneapolis city council approval if the governing body of the city of
50.17Minneapolis and the chief clerical officer of Minneapolis complete their compliance with
50.18Minnesota Statutes, section 645.021, subdivisions 2 and 3, after October 15, 2011, and
50.19if a comparable consolidation relating to the Minneapolis Police Relief Association is
50.20approved by all applicable entities under article 7.
50.21(b) If the approvals occur under paragraph (a) in a timely fashion, section 17,
50.22paragraph (e), is effective on the day following approval by the Minneapolis city council.
50.26 Section 1. Minnesota Statutes 2010, section 353.01, is amended by adding a
50.27subdivision to read:
50.28 Subd. 10b. Unit value; Minneapolis police. "Unit value," for a member
50.29of the public employees police and fire retirement plan who was a member of the
50.30former Minneapolis Police Relief Association on the day prior to the effective date of
50.31consolidation under section 19, is $86.71 for calendar year 2011, $104.651 for calendar
50.32year 2012, $109.011 for calendar year 2013, $114.825 for calendar year 2014, $124.031
50.33for calendar year 2015, and for calendar years after calendar year 2015, the prior year's
50.34unit value plus an increase equal to the adjustment percentage determined under section
50.35356.415, subdivision 1c, effective for the January 1 of the calendar year.
51.1 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 16, is amended to read:
51.2 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
51.3means:
51.4 (1) service during years of actual membership in the course of which employee
51.5deductions were withheld from salary and contributions were made at the applicable rates
51.6under section353.27 ,
353.65 , or
353E.03 ;
51.7(2) periods of service covered by payments in lieu of salary deductions under
51.8sections353.27, subdivision 12 , and
353.35 ;
51.9 (3) service in years during which the public employee was not a member but for
51.10which the member later elected, while a member, to obtain credit by making payments to
51.11the fund as permitted by any law then in effect;
51.12 (4) a period of authorized leave of absence with pay from which deductions for
51.13employee contributions are made, deposited, and credited to the fund;
51.14 (5) a period of authorized personal, parental, or medical leave of absence without
51.15pay, including a leave of absence covered under the federal Family Medical Leave Act,
51.16that does not exceed one year, and for which a member obtained service credit for each
51.17month in the leave period by payment under section353.0161 to the fund made in place of
51.18salary deductions. An employee must return to public service and render a minimum of
51.19three months of allowable service in order to be eligible to make payment under section
51.20353.0161
for a subsequent authorized leave of absence without pay. Upon payment, the
51.21employee must be granted allowable service credit for the purchased period;
51.22 (6) a periodic, repetitive leave that is offered to all employees of a governmental
51.23subdivision. The leave program may not exceed 208 hours per annual normal work cycle
51.24as certified to the association by the employer. A participating member obtains service
51.25credit by making employee contributions in an amount or amounts based on the member's
51.26average salary, excluding overtime pay, that would have been paid if the leave had not been
51.27taken. The employer shall pay the employer and additional employer contributions on
51.28behalf of the participating member. The employee and the employer are responsible to pay
51.29interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
51.30from the end of the normal cycle until full payment is made. An employer shall also make
51.31the employer and additional employer contributions, plus 8.5 percent interest, compounded
51.32annually, on behalf of an employee who makes employee contributions but terminates
51.33public service. The employee contributions must be made within one year after the end of
51.34the annual normal working cycle or within 30 days after termination of public service,
51.35whichever is sooner. The executive director shall prescribe the manner and forms to be
52.1used by a governmental subdivision in administering a periodic, repetitive leave. Upon
52.2payment, the member must be granted allowable service credit for the purchased period;
52.3 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
52.4months allowable service per authorized temporary or seasonal layoff in one calendar year.
52.5An employee who has received the maximum service credit allowed for an authorized
52.6temporary or seasonal layoff must return to public service and must obtain a minimum of
52.7three months of allowable service subsequent to the layoff in order to receive allowable
52.8service for a subsequent authorized temporary or seasonal layoff;
52.9 (8) a period during which a member is absent from employment by a governmental
52.10subdivision by reason of service in the uniformed services, as defined in United States
52.11Code, title 38, section 4303(13), if the member returns to public service with the same
52.12governmental subdivision upon discharge from service in the uniformed service within the
52.13time frames required under United States Code, title 38, section 4312(e), provided that
52.14the member did not separate from uniformed service with a dishonorable or bad conduct
52.15discharge or under other than honorable conditions. The service must be credited if the
52.16member pays into the fund equivalent employee contributions based upon the contribution
52.17rate or rates in effect at the time that the uniformed service was performed multiplied by
52.18the full and fractional years being purchased and applied to the annual salary rate. The
52.19annual salary rate is the average annual salary, excluding overtime pay, during the purchase
52.20period that the member would have received if the member had continued to be employed
52.21in covered employment rather than to provide uniformed service, or, if the determination
52.22of that rate is not reasonably certain, the annual salary rate is the member's average salary
52.23rate, excluding overtime pay, during the 12-month period of covered employment rendered
52.24immediately preceding the period of the uniformed service. Payment of the member
52.25equivalent contributions must be made during a period that begins with the date on which
52.26the individual returns to public employment and that is three times the length of the
52.27military leave period, or within five years of the date of discharge from the military service,
52.28whichever is less. If the determined payment period is less than one year, the contributions
52.29required under this clause to receive service credit may be made within one year of the
52.30discharge date. Payment may not be accepted following 30 days after termination of
52.31public service under subdivision 11a. If the member equivalent contributions provided for
52.32in this clause are not paid in full, the member's allowable service credit must be prorated
52.33by multiplying the full and fractional number of years of uniformed service eligible for
52.34purchase by the ratio obtained by dividing the total member contributions received by the
52.35total member contributions otherwise required under this clause. The equivalent employer
52.36contribution, and, if applicable, the equivalent additional employer contribution must be
53.1paid by the governmental subdivision employing the member if the member makes the
53.2equivalent employee contributions. The employer payments must be made from funds
53.3available to the employing unit, using the employer and additional employer contribution
53.4rate or rates in effect at the time that the uniformed service was performed, applied to the
53.5same annual salary rate or rates used to compute the equivalent member contribution. The
53.6governmental subdivision involved may appropriate money for those payments. The
53.7amount of service credit obtainable under this section may not exceed five years unless a
53.8longer purchase period is required under United States Code, title 38, section 4312. The
53.9employing unit shall pay interest on all equivalent member and employer contribution
53.10amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
53.11compounded annually from the end of each fiscal year of the leave or the break in service
53.12to the end of the month in which the payment is received. Upon payment, the employee
53.13must be granted allowable service credit for the purchased period; or
53.14(9) a period specified under subdivision 40.
53.15 (b) For calculating benefits under sections353.30 ,
353.31 ,
353.32 , and
353.33 for
53.16state officers and employees displaced by the Community Corrections Act, chapter 401,
53.17and transferred into county service under section401.04 , "allowable service" means the
53.18combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
53.19section352.01, subdivision 11 .
53.20 (c) For a public employee who has prior service covered by a local police or
53.21firefighters relief association that has consolidated with the Public Employees Retirement
53.22Association under chapter 353A or to which section353.665 applies, and who has elected
53.23the type of benefit coverage provided by the public employees police and fire fund either
53.24under section353A.08 following the consolidation or under section
353.665, subdivision
53.254 , "applicable allowable service" is a period of service credited by the local police or
53.26firefighters relief association as of the effective date of the consolidation based on law
53.27and on bylaw provisions governing the relief association on the date of the initiation
53.28of the consolidation procedure.
53.29 (d) No member may receive more than 12 months of allowable service credit in a
53.30year either for vesting purposes or for benefit calculation purposes. For an active member
53.31who was an active member of the former Minneapolis Police Relief Association on the
53.32day prior to the effective date of consolidation under section 19, "allowable service" is the
53.33period of service credited by the Minneapolis Police Relief Association as reflected in
53.34the transferred records of the association up to the effective date of consolidation under
53.35section 19 and the period of service credited under paragraph (a), clause (1), after the
53.36effective date of consolidation under section 19.
54.1 (e) MS 2002 [Expired]
54.2 Sec. 3. Minnesota Statutes 2010, section 353.03, is amended by adding a subdivision
54.3to read:
54.4 Subd. 3b. Additional duties. The executive director shall deduct from the annuity
54.5or benefit periodically the amount of any dues of any fraternal organization continuing or
54.6established after the effective date of consolidation under section 19 for former members
54.7of the former Minneapolis Police Relief Association.
54.8 Sec. 4. Minnesota Statutes 2010, section 353.65, subdivision 1, is amended to read:
54.9 Subdivision 1. Fund established. (a) The public employees police and fire fund
54.10is established for police officers and firefighters who meet the eligibility criteria under
54.11section353.64 .
54.12(b) Employee contributions other than those made under subdivision 2, paragraph
54.13(b), employer contributions under subdivision 3 and under section 353.668, subdivision 6,
54.14other than the excess contribution established by section69.031, subdivision 5 , paragraphs
54.15(2), clauses (b) and (c), and (3), and other amounts authorized by law, including all
54.16employee and employer contributions of members transferred, must be deposited in the
54.17public employees police and fire fund.
54.18 Sec. 5. Minnesota Statutes 2010, section 353.65, subdivision 2, is amended to read:
54.19 Subd. 2. Employee contribution. (a) For members other than members who were
54.20active members of the former Minneapolis Police Relief Association on the day prior to
54.21the effective date of consolidation under section 19, the employee contribution is 9.4
54.22percent of the salary of the member in calendar year 2010 and is 9.6 percent of the salary
54.23of the member in each calendar year after 2010.This contribution
54.24(b) For members who were active members of the former Minneapolis Police Relief
54.25Association on the day prior to the effective date of consolidation under section 19, the
54.26employee contribution is an amount equal to eight percent of the monthly unit value under
54.27section 353.01, subdivision 10b, multiplied by 80 and expressed as a biweekly amount for
54.28each member. The employee contribution made by a member with at least 25 years of
54.29service credit as an active member of the former Minneapolis Police Relief Association
54.30must be deposited in the postretirement health care savings account established under
54.31352.98.
54.32(c) Contributions under this section must be made by deduction from salary in
54.33the manner provided in subdivision 4. Where any portion of a member's salary is paid
55.1from other than public funds, the member's employee contribution is based on the total
55.2salary received from all sources.
55.3 Sec. 6. Minnesota Statutes 2010, section 353.65, subdivision 3, is amended to read:
55.4 Subd. 3. Employer contribution. (a) With respect to members other than members
55.5who were active members of the former Minneapolis Police Relief Association on the day
55.6prior to the effective date of consolidation under section 19, the employer contribution is
55.714.1 percent of the salary of the member in calendar year 2010 and is 14.4 percent of the
55.8salary of the member in each calendar year after 2010.This contribution
55.9(b) With respect to members who were active members of the former Minneapolis
55.10Police Relief Association on the day prior to the effective date of consolidation under
55.11section 19, the employer contribution is an amount equal to the amount of the member
55.12contributions under subdivision 2, paragraph (b).
55.13(c) Contributions under this subdivision must be made from funds available to the
55.14employing subdivision by the means and in the manner provided in section353.28 .
55.15 Sec. 7. Minnesota Statutes 2010, section 353.651, subdivision 1, is amended to read:
55.16 Subdivision 1. Age and allowable service requirements. Upon separation from
55.17public service, any police officer or firefighter member, other than a police officer covered
55.18by section 353.6512, who has attained the age of at least 55 years and who is vested
55.19under section353.01, subdivision 47 , is entitled upon application to a retirement annuity,
55.20known as the "normal" retirement annuity.
55.21 Sec. 8. [353.6512] ALTERNATIVE RETIREMENT BENEFIT COVERAGE IN
55.22CERTAIN INSTANCES.
55.23 Subdivision 1. Applicability. The alternative benefit coverage under this section
55.24applies only to an active member of the public employees police and fire retirement plan
55.25who was an active member of the former Minneapolis Police Relief Association on the
55.26day prior to the consolidation effective date under section 19 and who retires after the
55.27consolidation effective date under section 19.
55.28 Subd. 2. Retirement annuity. (a) A member described in subdivision 1, if the
55.29member meets the eligibility requirements of paragraph (b), is only entitled to a retirement
55.30annuity under this subdivision.
55.31(b) The member, upon application, if the person is at least age 50 and has credit for
55.32at least 20 years of allowable service, is entitled to a normal retirement annuity. The
56.1normal retirement annuity is the following amount based on the service credit of the
56.2retiring member as a Minneapolis police officer:
56.10 Subd. 3. Disability benefit. A member described in subdivision 1, if the member is
56.11disabled under section 353.01, subdivision 41 or 46, and has not yet attained the age of 50
56.12years, is entitled to a disability benefit equal to 34 units.
56.13 Subd. 4. Surviving spouse benefit. A surviving spouse under section 353.01,
56.14subdivision 20, of a deceased member described in subdivision 1 is entitled to a surviving
56.15spouse benefit equal to 23 units.
56.16 Subd. 5. Surviving dependent child benefit. A surviving dependent child under
56.17section 353.01, subdivision 15a, of a deceased member described in subdivision 1 is
56.18entitled to a surviving child benefit equal to eight units.
56.19 Subd. 6. Surviving family benefit maximum. The surviving spouse and surviving
56.20dependent child under subdivisions 4 and 5 are entitled to a combined family benefit under
56.21subdivisions 4 and 5 of 41 units.
56.22 Subd. 7. Postretirement adjustments. Retirement annuities, service pensions,
56.23disability benefits, and survivor benefits after December 31, 2015, are eligible for
56.24postretirement adjustments under section 356.415, subdivision 1c. The unit value for
56.25the calculation of a retirement annuity first payable after December 31, 2015, is the
56.26calendar year 2015 unit value, plus any postretirement adjustment percentage amount
56.27under section 356.415, subdivision 1c, payable after December 31, 2015, and before the
56.28date of retirement.
56.29 Subd. 8. Savings clause; dispute resolution. In the event of any dispute by or on
56.30behalf of any former member of the consolidating relief association after the effective date
56.31of consolidation over the amount of a benefit to which the person may be entitled, the
56.32proper interpretation of a provision of this article, or the conformity of the provisions of
56.33this article to the provisions of the benefit plan of the consolidating relief association in
56.34effective immediately before the date of the consolidation, the dispute shall be submitted
56.35in writing to the Legislative Commission on Pensions and Retirement by the person
56.36who is a party to the dispute, by the fraternal organization related to the former relief
56.37association, or by the executive director of the Public Employees Retirement Association.
57.1The Legislative Commission on Pensions and Retirement shall review the dispute as
57.2part of its deliberations on proposed or pending retirement legislation and shall make its
57.3recommendation on the resolution of the dispute, if any, to the appropriate committees of
57.4the senate and house of representatives with jurisdiction over public employee pension
57.5matters in the form of the necessary legislation amending the provisions of this article,
57.6which proposed legislation must include retroactivity of any increase in a benefit amount
57.7to the date on which the benefit subject to dispute accrued or would have accrued.
57.8 Sec. 9. Minnesota Statutes 2010, section 353.656, subdivision 1, is amended to read:
57.9 Subdivision 1. Duty disability; computation of benefits. (a) A member of the
57.10police and fire plan, other than a police officer covered by section 353.6512, who is
57.11determined to qualify for duty disability as defined in section353.01 , subdivision 41,
57.12shall receive disability benefits during the period of such disability in an amount equal to
57.1360 percent of the average salary as defined in section353.01, subdivision 17a , plus an
57.14additional percentage specified under section356.315 , subdivision 6, of that average
57.15salary for each year of service in excess of 20 years.
57.16 (b) To be eligible for a benefit under paragraph (a), the member must have:
57.17 (1) not met the requirements for a retirement annuity under section353.651 ,
57.18subdivision 1; or
57.19 (2) met the requirements under that subdivision, but does not have at least 20 years
57.20of allowable service credit.
57.21 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
57.22period of 60 months from the disability benefit accrual date and at the end of that period
57.23is subject to provisions of subdivision 5a.
57.24 (d) If the disability under this subdivision occurs before the member has at least five
57.25years of allowable service credit in the police and fire plan, the disability benefit must be
57.26computed on the average salary from which deductions were made for contribution to
57.27the police and fire fund.
57.28 Sec. 10. Minnesota Statutes 2010, section 353.656, subdivision 1a, is amended to read:
57.29 Subd. 1a. Total and permanent duty disability; computation of benefits. (a) A
57.30member of the police and fire plan, other than a police officer covered by section 353.6512,
57.31whose disabling condition is determined to be a duty disability that is also a permanent
57.32and total disability as defined in section353.01 , subdivision 19, is entitled to receive, for
57.33life, disability benefits in an amount equal to 60 percent of the average salary as defined in
58.1section353.01, subdivision 17a , plus an additional percent specified in section
356.315,
58.2subdivision 6 , of that average salary for each year of service in excess of 20 years.
58.3 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
58.4under section353.33, subdivision 6 , but the review may be waived if the executive
58.5director receives a written statement from the association's medical advisor that no
58.6improvement can be expected in the member's disabling condition that was the basis for
58.7payment of the benefit under paragraph (a). A member receiving a disability benefit
58.8under this subdivision who is found to no longer be permanently and totally disabled as
58.9defined under section353.01, subdivision 19 , but continues to meet the definition for
58.10receipt of a duty disability under section353.01, subdivision 41 , is subject to subdivision
58.111 upon written notice from the association's medical advisor that the person is no longer
58.12considered permanently and totally disabled.
58.13 (c) If a member approved for disability benefits under this subdivision dies before
58.14attaining normal retirement age as defined in section353.01, subdivision 37 , paragraph
58.15(b), or within 60 months of the effective date of the disability, whichever is later,
58.16the surviving spouse is entitled to receive a survivor benefit under section353.657 ,
58.17subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
58.18condition for which disability benefits were approved, or section353.657, subdivision
58.192, paragraph (a), clause (2), if the death is not directly related to the disabling condition
58.20for which benefits were approved under this subdivision.
58.21 (d) If the election of an actuarial equivalent optional annuity is not made at the time
58.22the permanent and total disability benefit accrues, an election must be made within 90
58.23days before the member attains normal retirement age as defined under section353.01 ,
58.24subdivision 37, paragraph (b), or having collected total and permanent disability benefits
58.25for 60 months, whichever is later. If a member receiving disability benefits who has
58.26dependent children dies, subdivision 6a, paragraph (c), applies.
58.27 Sec. 11. Minnesota Statutes 2010, section 353.656, subdivision 3, is amended to read:
58.28 Subd. 3. Regular disability benefit. (a) A member of the police and fire plan, other
58.29than a police officer covered by section 353.6512, who qualifies for a regular disability
58.30benefit as defined in section353.01 , subdivision 46, is entitled to receive a disability
58.31benefit, after filing a valid application, in an amount equal to 45 percent of the average
58.32salary as defined in section353.01 , subdivision 17a.
58.33 (b) To be eligible for a benefit under paragraph (a), the member must have at least
58.34one year of allowable service credit and have:
59.1 (1) not met the requirements for a retirement annuity under section353.651 ,
59.2subdivision 1, or
59.3 (2) met the requirements under that subdivision, but does not have at least 15 years
59.4of allowable service credit.
59.5 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
59.6period of 60 months from the disability benefit accrual date and, at the end of that period,
59.7is subject to provisions of subdivision 5a.
59.8 (d) For a member who is employed as a full-time firefighter by the Department of
59.9Military Affairs of the state of Minnesota, allowable service as a full-time state Military
59.10Affairs Department firefighter credited by the Minnesota State Retirement System may be
59.11used in meeting the minimum allowable service requirement of this subdivision.
59.12 Sec. 12. Minnesota Statutes 2010, section 353.656, subdivision 3a, is amended to read:
59.13 Subd. 3a. Total and permanent regular disability; computation of benefits.
59.14 (a) A member of the police and fire plan, other than a police officer covered by section
59.15353.6512, whose disabling condition is determined to be a regular disability under section
59.16353.01, subdivision 46
, that is also a permanent and total disability as defined in section
59.17353.01, subdivision 19
, is entitled to receive, for life, a disability benefit in an amount
59.18equal to 45 percent of the average salary as defined in section353.01, subdivision 17a ,
59.19plus an additional percent specified in section356.315 , subdivision 6, of that average
59.20salary for each year of service in excess of 15 years.
59.21 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
59.22under section353.33, subdivision 6 , but the review may be waived if the executive
59.23director receives a written statement from the association's medical advisor that no
59.24improvement can be expected in the member's disabling condition that was the basis for
59.25payment of the benefit under paragraph (a). A member receiving a disability benefit under
59.26this subdivision who is found to no longer be permanently and totally disabled as defined
59.27under section353.01, subdivision 19 , but continues to meet the definition for receipt
59.28of a regular disability under section353.01, subdivision 46 , is subject to subdivision 3
59.29upon written notice from the association's medical advisor that the person is no longer
59.30considered permanently and totally disabled.
59.31 (c) A member approved for disability benefits under this subdivision may elect
59.32to receive a normal disability benefit or an actuarial equivalent optional annuity. If the
59.33election of an actuarial equivalent optional annuity is not made at the time the total and
59.34permanent disability benefit accrues, an election must be made within 90 days before
59.35the member attains normal retirement age as defined in section353.01, subdivision 37 ,
60.1paragraph (b), or having collected disability benefits for 60 months, whichever is later.
60.2No surviving spouse benefits are payable if the member dies during the period in which
60.3a normal total and permanent disability benefit is being paid. If a member receiving
60.4disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
60.5 Sec. 13. Minnesota Statutes 2010, section 353.657, subdivision 1, is amended to read:
60.6 Subdivision 1. Generally. (a) In the event that a member of the police and fire
60.7fund, other than a police officer covered by section 353.6512, dies from any cause
60.8before retirement or before becoming disabled and receiving disability benefits, the
60.9association shall grant survivor benefits to a surviving spouse, as defined in section
60.10353.01, subdivision 20
, and to a dependent child or children, as defined in section
353.01,
60.11subdivision 15 , except that if the death is not a line of duty death, the member must be
60.12vested under section353.01, subdivision 47 .
60.13 (b) Notwithstanding the definition of surviving spouse, a former spouse of the
60.14member, if any, is entitled to a portion of the monthly surviving spouse benefit if
60.15stipulated under the terms of a marriage dissolution decree filed with the association. If
60.16there is no surviving spouse or child or children, a former spouse may be entitled to
60.17a lump-sum refund payment under section353.32, subdivision 1 , if provided for in a
60.18marriage dissolution decree but not a monthly surviving spouse benefit despite the terms
60.19of a marriage dissolution decree filed with the association.
60.20 (c) The spouse and child or children are entitled to monthly benefits as provided in
60.21subdivisions 2 to 4.
60.22 Sec. 14. [353.668] CONSOLIDATION OF THE MINNEAPOLIS POLICE
60.23RELIEF ASSOCIATION.
60.24 Subdivision 1. Membership transfer. On the effective date of consolidation under
60.25section 19, the active, inactive, and retired members, including surviving spouses, of the
60.26Minneapolis Police Relief Association are transferred to the public employees police and
60.27fire retirement plan, are no longer members of the Minneapolis Police Relief Association,
60.28and are members of the public employees police and fire retirement plan.
60.29 Subd. 2. Service credit and benefit liability transfer. (a) Allowable service credit
60.30and base salary credit of the active members of the Minneapolis Police Relief Association,
60.31as contained in the records of the Minneapolis Police Relief Association through the
60.32day before the effective date of consolidation under section 19, are transferred to the
60.33public employees police and fire retirement plan and is credited as provided in section
61.1353.01, subdivisions 10b and 16, paragraph (c), on the effective date of consolidation
61.2under section 19.
61.3(b) The liability for the payment of retirement annuities, service pensions, and
61.4retirement and surviving spouse benefits of the Minneapolis Police Relief Association
61.5retired members, service pensioners, disabilitants, surviving spouses, and other retirement
61.6benefit recipients as specified in the records of the Minneapolis Police Relief Association
61.7is transferred to the public employees police and fire retirement plan on the effective date
61.8of consolidation under section 19.
61.9 Subd. 3. Transfer of records. On the effective date of the consolidation under
61.10section 19, the chief administrative officer of the Minneapolis Police Relief Association
61.11shall transfer all records and documents relating to the special fund of the Minneapolis
61.12Police Relief Association to the executive director of the Public Employees Retirement
61.13Association. To the extent possible, original copies of all records and documents must
61.14be transferred.
61.15 Subd. 4. Transfer of assets; transfer of title to assets. (a) On the effective date
61.16of the consolidation under section 19, the chief administrative officer of the Minneapolis
61.17Police Relief Association shall transfer the entire assets of the special fund of the
61.18Minneapolis Police Relief Association other than the health insurance account to the
61.19public employees police and fire retirement fund at market value. Unless ineligible
61.20or inappropriate, the transfer must be in the form of investment securities and must
61.21include any accounts receivable that are determined by the State Board of Investment as
61.22being capable of being collected. An amount, in cash, must be transferred by the city of
61.23Minneapolis equal to the market value recognized by the relief association of investment
61.24securities that are determined by the executive director of the State Board of Investment
61.25not to be in compliance with the requirements and limitations set forth in sections
61.2611A.09, 11A.14, 11A.23, and 11A.24 or not to be appropriate for retention in light of
61.27the established investment objectives of the State Board of Investment or of accounts
61.28receivable determined by the executive director of the State Board of Investment as being
61.29incapable of being collected. Legal and beneficial title to assets that are determined
61.30noncompliant or inappropriate securities or that are uncollectible accounts receivable are
61.31transferred to the city of Minneapolis on the effective date of consolidation under section
61.3219. Any accounts payable on the effective date of consolidation under section 19 are an
61.33obligation of the public employees police and fire retirement fund and reduce the asset
61.34value for purposes of subdivision 6. The transferred assets must be deposited in the public
61.35employees police and fire retirement fund. The amount of the health insurance account as
61.36of the date of the consolidation must remain deposited in the financial institution retained
62.1by the former Minneapolis Police Relief Association on May 1, 2011, and that financial
62.2institution must act as the custodian of the account. The financial institution shall perform
62.3all trustee and fiduciary duties with respect to the account as a condition to the retention of
62.4the account. The executive director of the Minneapolis Police Relief Association, prior to
62.5the effective date of consolidation, shall estimate three calendar years of the administrative
62.6expenses related to the operation of the account and shall prepay those expenses from the
62.7account to the financial institution prior to the effective date of consolidation. After the
62.8three-year prepayment period, the beneficiaries of the account are responsible for the
62.9payment of the administrative expenses related to the operation of the account.
62.10(b) Upon the transfer of assets to the State Board of Investment under paragraph
62.11(a), legal title to those transferred assets vests with the State Board of Investment on
62.12behalf of the public employees police and fire retirement plan, and beneficial title to the
62.13transferred assets remains with the former membership of the former Minneapolis Police
62.14Relief Association.
62.15(c) The public employees police and fire retirement plan and fund is the successor in
62.16interest to all claims for or against the Minneapolis Police Relief Association. the public
62.17employees police and fire retirement plan and fund is not liable for any claim against the
62.18Minneapolis Police Relief Association, its governing board, or its administrative staff
62.19acting in a fiduciary capacity, under chapter 356A or common law, which is founded upon
62.20a claim of a breach of fiduciary duty if the act or acts constituting the claimed breach were
62.21not undertaken in good faith. The public employees police and fire retirement plan may
62.22assert any applicable defense to any claim in any judicial or administrative proceeding
62.23that the Minneapolis Police Relief Association, its board, or its administrative staff would
62.24otherwise have been entitled to assert, and the public employees police and fire retirement
62.25plan may assert any applicable defense that it has in its capacity as a statewide agency.
62.26(d) The Public Employees Retirement Association shall indemnify any former
62.27fiduciary of the Minneapolis Police Relief Association consistent with the provisions of
62.28section 356A.11. The indemnification may be effected by the purchase by the Public
62.29Employees Retirement Association of reasonable fiduciary liability tail insurance for the
62.30officers and directors of the former Minneapolis Police Relief Association. Consistent
62.31with section 69.80, the relief association may purchase reasonable fiduciary liability tail
62.32insurance for its officers and directors prior to the effective date of consolidation under
62.33section 19.
62.34(e) Office equipment and other physical assets of the special fund of the Minneapolis
62.35Police Relief Association that are not needed by the Public Employees Retirement
62.36Association may be sold by the special fund of the Minneapolis Police Relief Association
63.1to the general fund of the Minneapolis Police Relief Association or to any successor
63.2fraternal organization of the Minneapolis Police Relief Association at fair market value,
63.3with the proceeds of that sale deposited in the public employees police and fire retirement
63.4fund and included in the transferred asset value under subdivision 6.
63.5 Subd. 5. Benefits. The annuities, service pensions, and other retirement benefits of
63.6or attributable to retired, disabled, deferred, surviving spouse, or inactive Minneapolis
63.7Police Relief Association members who had that status as of the day before the effective
63.8date of consolidation under section 19 continue after consolidation in the same amount and
63.9under the same terms as provided in chapter 423B, except that the unit value is governed
63.10by section 353.01, subdivision 10b, and the postretirement adjustments after December
63.1131, 2015, must be calculated solely under section 353.6512, subdivision 8.
63.12 Subd. 6. Additional employer contributions. (a) As of the effective date of the
63.13consolidation under section 19, the approved actuary retained by the Public Employees
63.14Retirement Association shall calculate the present value of future benefits of the former
63.15Minneapolis Police Relief Association, and, after subtracting the market value of the
63.16transferred assets of the former Minneapolis Police Relief Association and the present
63.17value of the employer contribution under section 353.65, subdivision 3, paragraph (b),
63.18shall calculate the remainder present value of future benefits amount. Annually, following
63.19the effective date of consolidation under section 19, the city of Minneapolis shall pay an
63.20amount sufficient to amortize on a level annual dollar basis the remainder present value
63.21of future benefits amount by December 31, 2031. The amortization payment is payable
63.22annually on July 15, beginning in the year following the effective date of the consolidation.
63.23The 2012 payment should be estimated based on the provisions of this legislation. The
63.24July 2013 payment shall be adjusted based on the final actuarial valuation.
63.25(b) If the postretirement or preretirement interest rate actuarial assumption applicable
63.26to the public employees police and fire retirement plan under section 356.215, subdivision
63.278, is modified from the rates specified in section 356.215, subdivision 8, the remainder
63.28present value of future benefits amount calculation under paragraph (a), updated for
63.29the passage of time, must be revised and the amortization contribution by the city of
63.30Minneapolis for the balance of the amortization period must be redetermined and certified
63.31to the city of Minneapolis.
63.32 Subd. 7. Health and dental insurance program deductions. The executive
63.33director shall withhold any health insurance or dental insurance premiums designated
63.34by the annuitant or benefit recipient and shall transfer them to the city of Minneapolis.
63.35The Public Employees Retirement Association may charge a necessary and reasonable
63.36monthly administrative fee to the city of Minneapolis for this function and bill it in
64.1addition to the employer contribution under section 353.65, subdivision 3, paragraph
64.2(b). Notwithstanding any provision of chapter 13 to the contrary, the executive director
64.3shall provide the city of Minneapolis with the current addresses of former members of
64.4the Minneapolis Police Relief Association.
64.5 Subd. 8. Cooperation with fraternal organization. (a) This subdivision applies
64.6if the membership of the former Minneapolis Police Relief Association approves the
64.7continuation of the relief association as a fraternal organization under section 16.
64.8(b) The executive director shall cooperate with the Minneapolis police fraternal
64.9association to insure adequate communication with the former members of the former
64.10Minneapolis Police Relief Association consistent with Public Employees Retirement
64.11Association policy.
64.12 Sec. 15. Minnesota Statutes 2010, section 423A.02, subdivision 1b, is amended to read:
64.13 Subd. 1b. Additional amortization state aid. (a) Annually, on October 1, the
64.14commissioner of revenue shall allocate the additional amortization state aid transferred
64.15under section69.021, subdivision 11 , to:
64.16 (1) all police or salaried firefighters relief associations governed by and in full
64.17compliance with the requirements of section69.77 , that had an unfunded actuarial accrued
64.18liability in the actuarial valuation prepared under sections356.215 and
356.216 as of the
64.19preceding December 31;
64.20 (2) all local police or salaried firefighter consolidation accounts governed by chapter
64.21353A that are certified by the executive director of the public employees retirement
64.22association as having for the current fiscal year an additional municipal contribution
64.23amount under section353A.09, subdivision 5 , paragraph (b), and that have implemented
64.24section353A.083, subdivision 1 , if the effective date of the consolidation preceded May
64.2524, 1993, and that have implemented section353A.083, subdivision 2 , if the effective date
64.26of the consolidation preceded June 1, 1995; and
64.27 (3) the municipalities that are required to make an additional municipal contribution
64.28under section353.665, subdivision 8 , or 353.668, subdivision 6, for the duration of the
64.29required additional contribution.
64.30 (b) The commissioner shall allocate the state aid on the basis of the proportional share
64.31of the relief association or consolidation account of the total unfunded actuarial accrued
64.32liability of all recipient relief associations and consolidation accounts as of December 31,
64.331993, for relief associations, and as of June 30, 1994, for consolidation accounts.
65.1 (c) Beginning October 1, 2000, and annually thereafter, the commissioner shall
65.2allocate the state aid, including any state aid in excess of the limitation in subdivision
65.34, on the following basis:
65.4 (1) 64.5 percent to the municipalities to which section353.665, subdivision
65.58 , paragraph (b), or
353A.09, subdivision 5 , paragraph (b), apply for distribution in
65.6accordance with paragraph (b) and subject to the limitation in subdivision 4;
65.7 (2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued
65.8liability in the actuarial valuation prepared under sections356.215 and
356.216 as of the
65.9preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
65.10Fire Department Relief Association; and
65.11 (3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability
65.12in the actuarial valuation prepared under sections356.215 and
356.216 as of the preceding
65.13December 31 for the Virginia Fire Department Relief Association.
65.14 If there is no unfunded actuarial accrued liability in both the Minneapolis Police
65.15Relief Association and the Minneapolis Fire Department Relief Association as disclosed
65.16in the most recent actuarial valuations for the relief associations prepared under sections
65.17356.215
and
356.216 , the commissioner shall allocate that 34.2 percent of the aid as
65.18follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
65.19Teachers Retirement Fund Association, and 30 percent as additional funding to support
65.20minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded
65.21actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed
65.22in the most recent actuarial valuation for the relief association prepared under sections
65.23356.215
and
356.216 , the commissioner shall allocate that
1.3 percent of the aid as
65.24follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
65.25Teachers Retirement Fund Association, and 30 percent as additional funding to support
65.26minimum fire state aid for volunteer firefighters relief associations. Upon the final
65.27payment to municipalities required by section353.665, subdivision 8 , paragraph (b),
65.28or353A.09, subdivision 5 , paragraph (b), the commissioner shall allocate that 64.5
65.29percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund
65.30Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued
65.31liability in the actuarial valuation proposed under sections356.215 and
356.216 as of the
65.32preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
65.33Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs
65.34associated with the police and firefighters pensions, and 40 percent as additional funding to
65.35support minimum fire state aid for volunteer firefighters relief associations. The allocation
65.36must be made by the commissioner at the same time and under the same procedures
66.1as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund
66.2Association, annually, beginning on July 1, 2005, if the applicable teacher's association
66.3five-year average time-weighted rate of investment return does not equal or exceed the
66.4performance of a composite portfolio assumed passively managed (indexed) invested ten
66.5percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent
66.6in domestic stock calculated using the formula under section11A.04 , clause (11), the aid
66.7allocation to that retirement fund under this section ceases until the five-year annual rate
66.8of investment return equals or exceeds the performance of that composite portfolio.
66.9 (d) The amounts required under this subdivision are the amounts annually
66.10appropriated to the commissioner of revenue under section69.021, subdivision 11 ,
66.11paragraph (e).
66.12 Sec. 16. MINNEAPOLIS POLICE RELIEF ASSOCIATION; SPECIAL
66.13ACTUARIAL VALUATION PENDING CONSOLIDATION.
66.14(a) On or before August 1, 2011, the approved actuarial consulting firm retained
66.15by the Public Employees Retirement Association under Minnesota Statutes, section
66.16356.214, shall prepare an alternative actuarial valuation of the Minneapolis Police Relief
66.17Association under Minnesota Statutes, section 356.215, and the most recent standards
66.18for actuarial work adopted by the Legislative Commission on Pensions and Retirement
66.19as of August 11, 2010, using the applicable actuarial assumptions and the applicable
66.20amortization target date of the public employee police and fire retirement plan.
66.21(b) The officers of the Minneapolis Police Relief Association shall supply the
66.22approved actuary retained by the Public Employees Retirement Association with the
66.23financial and demographic data necessary to perform the alternative actuarial valuation.
66.24(c) The alternative actuarial valuation of the Minneapolis Police Relief Association
66.25must be filed with the mayor of the city of Minneapolis, with the Minneapolis city
66.26coordinator, with the executive director of the Minneapolis Police Relief Association,
66.27with the executive director of the Public Employees Retirement Association, with the
66.28executive director of the Legislative Commission on Pensions and Retirement, and with
66.29the Legislative Reference Library.
66.30(d) The expense of preparing the alternative actuarial valuation must be paid by the
66.31city of Minneapolis within 30 days of its certification to the finance director of the city of
66.32Minneapolis by the executive director of the Public Employees Retirement Association.
66.33 Sec. 17. TERMINATION OF THE RELIEF ASSOCIATION.
67.1(a) On the effective date of the consolidation under section 19, the special fund of
67.2the Minneapolis Police Relief Association ceases to exist.
67.3(b) The Minneapolis Police Relief Association shall provide for the continuation
67.4of the relief association as a fraternal organization other than as a pension or retirement
67.5organization and shall approve the changes in its articles of incorporation and bylaws
67.6necessary to effect that redesignation and reorganization of the organization.
67.7(c) If the Minneapolis Police Relief Association continues the relief association
67.8as a fraternal organization under paragraph (b), the transfer of relief association assets
67.9under Minnesota Statutes, section 353.668, subdivision 4, must not include assets of
67.10the Minneapolis Police Relief Association general fund, which must be retained by the
67.11fraternal organization for organization purposes other than for pension or retirement
67.12benefit payment purposes.
67.13(d) As of the effective date of the consolidation under section 19, the employment of
67.14the employees of the Minneapolis Police Relief Association terminates. The employees of
67.15the Minneapolis Police Relief Association who were employed by the relief association
67.16before May 1, 2011, have an employment preference with the Public Employees
67.17Retirement Association equal to that under the veterans preference act.
67.18(e) If, on the day following approval of this article by the Minneapolis city council,
67.19the consolidation has been approved by all applicable entities under section 19, the officers
67.20of the Minneapolis Police Relief Association shall certify to the city of Minneapolis and to
67.21the Hennepin County auditor the financial requirements of the relief association and the
67.22minimum municipal obligation under Minnesota Statutes, section 69.77, subdivision 4,
67.23revised consistent with the actuarial valuation results under Minnesota Statutes, section
67.24423A.02, subdivision 1b.
67.25(f) After the effective date of consolidation under section 19, the city of Minneapolis
67.26shall continue to administer the health and dental insurance programs as constituted on
67.27May 1, 2011, for the former members of the former Minneapolis Police Relief Association,
67.28transferring premiums as required.
67.29 Sec. 18. REPEALER.
67.30Minnesota Statutes 2010, sections 423B.01; 423B.03; 423B.04; 423B.05; 423B.06;
67.31423B.07; 423B.08; 423B.09; 423B.10; 423B.11; 423B.12; 423B.13; 423B.14; 423B.15;
67.32423B.151; 423B.16; 423B.17; 423B.18; 423B.19; 423B.20; 423B.21; and 423B.23, are
67.33repealed.
67.34 Sec. 19. EFFECTIVE DATE; LOCAL APPROVAL.
68.1(a) Sections 1 to 16, 17, paragraphs (a) to (d), and 18 are effective December 30,
68.22011, if the board of trustees of the Minneapolis Police Relief Association approves
68.3the article and if a majority of the entire membership of the Minneapolis Police Relief
68.4Association approves the article, if the chief administrative officer of the Minneapolis
68.5Police Relief Association certifies those approvals to the mayor of the city of Minneapolis
68.6and the president of the Minneapolis city council before September 15, 2011, if the
68.7board of trustees of the Public Employees Retirement Association approves the article,
68.8if the executive director of the Public Employees Retirement Association certifies that
68.9approval to the mayor of the city of Minneapolis and the president of the Minneapolis city
68.10council, if the governing body of the city of Minneapolis and the chief clerical officer of
68.11Minneapolis timely complete their compliance with Minnesota Statutes, section 645.021,
68.12subdivisions 2 and 3, on or before October 15, 2011, or on the date set by the board of
68.13trustees of the Public Employees Retirement Association, in consultation with the mayor
68.14of the city of Minneapolis and the executive director of the relief association, at the
68.15first regular meeting of the Public Employees Retirement Association board of trustees
68.16occurring after Minneapolis city council approval if the governing body of the city of
68.17Minneapolis and the chief clerical officer of Minneapolis complete their compliance with
68.18Minnesota Statutes, section 645.021, subdivisions 2 and 3, after October 15, 2011, and if a
68.19comparable consolidation relating to the Minneapolis Firefighters Relief Association is
68.20approved by all applicable entities under article 7.
68.21(b) If the approvals occur under paragraph (a) in a timely fashion, section 17,
68.22paragraph (e), is effective on the day following approval by the Minneapolis city council.
68.25 Section 1. Minnesota Statutes 2010, section 6.67, is amended to read:
68.266.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
68.27 Whenever a public accountant in the course of auditing the books and affairs of a
68.28political subdivision or a local public pension plan governed by section69.77 , sections
68.2969.771
to
69.775 , or chapter 354A, 423B, 423C, or 424A, discovers evidence pointing
68.30to nonfeasance, misfeasance, or malfeasance, on the part of an officer or employee in
68.31the conduct of duties and affairs, the public accountant shall promptly make a report of
68.32such discovery to the state auditor and the county attorney of the county in which the
68.33governmental unit is situated and the public accountant shall also furnish a copy of the
68.34report of audit upon completion to said officers. The county attorney shall act on such
69.1report in the same manner as required by law for reports made to the county attorney
69.2by the state auditor.
69.3 Sec. 2. Minnesota Statutes 2010, section 13D.01, subdivision 1, is amended to read:
69.4 Subdivision 1. In executive branch, local government. All meetings, including
69.5executive sessions, must be open to the public
69.6(a) of a state
69.7(1) agency,
69.8(2) board,
69.9(3) commission, or
69.10(4) department,
69.11when required or permitted by law to transact public business in a meeting;
69.12(b) of the governing body of a
69.13(1) school district however organized,
69.14(2) unorganized territory,
69.15(3) county,
69.16(4) statutory or home rule charter city,
69.17(5) town, or
69.18(6) other public body;
69.19(c) of any
69.20(1) committee,
69.21(2) subcommittee,
69.22(3) board,
69.23(4) department, or
69.24(5) commission,
69.25of a public body; and
69.26(d) of the governing body or a committee of:
69.27(1) a statewide public pension plan defined in section356A.01, subdivision 24 ; or
69.28(2) a local public pension plan governed by section69.77 , sections
69.771 to
69.775 ,
69.29or chapter 354A or 423B.
69.30 Sec. 3. Minnesota Statutes 2010, section 43A.316, subdivision 8, is amended to read:
69.31 Subd. 8. Continuation of coverage. (a) A former employee of an employer
69.32participating in the program who is receiving a public pension disability benefit or an
69.33annuity or has met the age and service requirements necessary to receive an annuity
69.34under chapter 353, 353C, 354, 354A, 356, or 423,423A, 424, or Minnesota Statutes
70.12008, chapter 422A, and the former employee's dependents, are eligible to participate in
70.2the program. This participation is at the person's expense unless a collective bargaining
70.3agreement or personnel policy provides otherwise. Premiums for these participants must
70.4be established by the commissioner.
70.5The commissioner may provide policy exclusions for preexisting conditions
70.6only when there is a break in coverage between a participant's coverage under the
70.7employment-based group insurance program and the participant's coverage under this
70.8section. An employer shall notify an employee of the option to participate under this
70.9paragraph no later than the effective date of retirement. The retired employee or the
70.10employer of a participating group on behalf of a current or retired employee shall notify
70.11the commissioner within 30 days of the effective date of retirement of intent to participate
70.12in the program according to the rules established by the commissioner.
70.13(b) The spouse of a deceased employee or former employee may purchase the
70.14benefits provided at premiums established by the commissioner if the spouse was a
70.15dependent under the employee's or former employee's coverage under this section at the
70.16time of the death. The spouse remains eligible to participate in the program as long as
70.17the group that included the deceased employee or former employee participates in the
70.18program. Coverage under this clause must be coordinated with relevant insurance benefits
70.19provided through the federally sponsored Medicare program.
70.20(c) The program benefits must continue in the event of strike permitted by section
70.21179A.18
, if the exclusive representative chooses to have coverage continue and the
70.22employee pays the total monthly premiums when due.
70.23(d) A participant who discontinues coverage may not reenroll.
70.24Persons participating under these paragraphs shall make appropriate premium
70.25payments in the time and manner established by the commissioner.
70.26 Sec. 4. Minnesota Statutes 2010, section 69.77, subdivision 1a, is amended to read:
70.27 Subd. 1a. Covered retirement plans. The provisions of this section apply to the
70.28following local retirement plans:
70.29(1) the Bloomington Firefighters Relief Association;
70.30(2) the Fairmont Police Relief Association; and
70.31(3) the Minneapolis Firefighters Relief Association;
70.32(4) the Minneapolis Police Relief Association; and
70.33(5) (3) the Virginia Fire Department Relief Association.
70.34 Sec. 5. Minnesota Statutes 2010, section 69.77, subdivision 4, is amended to read:
71.1 Subd. 4. Relief association financial requirements; minimum municipal
71.2obligation. (a) The officers of the relief association shall determine the financial
71.3requirements of the relief association and minimum obligation of the municipality for
71.4the following calendar year in accordance with the requirements of this subdivision.
71.5The financial requirements of the relief association and the minimum obligation of the
71.6municipality must be determined on or before the submission date established by the
71.7municipality under subdivision 5.
71.8(b) The financial requirements of the relief association for the following calendar
71.9year must be based on the most recent actuarial valuation or survey of the special fund of
71.10the association if more than one fund is maintained by the association, or of the association,
71.11if only one fund is maintained, prepared in accordance with sections356.215, subdivisions
71.124 to 15 , and
356.216 , as required under subdivision 10. If an actuarial estimate is prepared
71.13by the actuary of the relief association as part of obtaining a modification of the benefit
71.14plan of the relief association and the modification is implemented, the actuarial estimate
71.15must be used in calculating the subsequent financial requirements of the relief association.
71.16(c) If the relief association has an unfunded actuarial accrued liability as reported in
71.17the most recent actuarial valuation or survey, the total of the amounts calculated under
71.18clauses (1), (2), and (3), constitute the financial requirements of the relief association for
71.19the following year. If the relief association does not have an unfunded actuarial accrued
71.20liability as reported in the most recent actuarial valuation or survey, the amount calculated
71.21under clauses (1) and (2) constitute the financial requirements of the relief association for
71.22the following year. The financial requirement elements are:
71.23(1) the normal level cost requirement for the following year, expressed as a dollar
71.24amount, which must be determined by applying the normal level cost of the relief
71.25association as reported in the actuarial valuation or survey and expressed as a percentage
71.26of covered payroll to the estimated covered payroll of the active membership of the relief
71.27association, including any projected change in the active membership, for the following
71.28year;
71.29(2) for the Bloomington Fire Department Relief Association, the Fairmont Police
71.30Relief Association, and the Virginia Fire Department Relief Association, to the dollar
71.31amount of normal cost determined under clause (1) must be added an amount equal to the
71.32dollar amount of the administrative expenses of the special fund of the association if more
71.33than one fund is maintained by the association, or of the association if only one fund is
71.34maintained, for the most recent year, multiplied by the factor of 1.035. The administrative
71.35expenses are those authorized under section69.80 . No amount of administrative expenses
72.1under this clause are to be included in the financial requirements of the Minneapolis
72.2Firefighters Relief Association or the Minneapolis Police Relief Association; and
72.3(3) to the dollar amount of normal cost and expenses determined under clauses
72.4(1) and (2) must be added an amount equal to the level annual dollar amount which
72.5is sufficient to amortize the unfunded actuarial accrued liability as determined from
72.6the actuarial valuation or survey of the fund, using an interest assumption set at the
72.7applicable rate specified in section356.215, subdivision 8 , by that fund's amortization
72.8date as specified in paragraph (d).
72.9(d)The Minneapolis Firefighters Relief Association special fund amortization date
72.10is determined under section
423C.15, subdivisions 3 and 4. The Virginia Fire Department
72.11Relief Association special fund amortization date is December 31, 2010. TheMinneapolis
72.12Police Relief Association special fund and the Fairmont Police Relief Association
72.13special fund amortization date is December 31, 2020. The Bloomington Fire Department
72.14Relief Association special fund amortization date is determined under section356.216 ,
72.15paragraph (a), clause (2). The amortization date specified in this paragraph supersedes any
72.16amortization date specified in any applicable special law.
72.17(e) The minimum obligation of the municipality is an amount equal to the financial
72.18requirements of the relief association reduced by the estimated amount of member
72.19contributions from covered salary anticipated for the following calendar year and the
72.20estimated amounts anticipated for the following calendar year from the applicable state aid
72.21program established under sections69.011 to
69.051 receivable by the relief association
72.22after any allocation made under section69.031, subdivision 5 , paragraph (b), clause (2),
72.23or423A.01, subdivision 2 , paragraph (a), clause (6), from the local police and salaried
72.24firefighters' relief association amortization aid program established under section423A.02,
72.25subdivision 1 , from the supplementary amortization state-aid program established under
72.26section423A.02, subdivision 1a , and from the additional amortization state aid under
72.27section423A.02, subdivision 1b .
72.28 Sec. 6. Minnesota Statutes 2010, section 356.215, subdivision 8, is amended to read:
72.29 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
72.30the applicable following preretirement interest assumption and the applicable following
72.31postretirement interest assumption:
73.19 (b) Before July 1, 2010, the actuarial valuation must use the applicable following
73.20single rate future salary increase assumption, the applicable following modified single
73.21rate future salary increase assumption, or the applicable following graded rate future
73.22salary increase assumption:
73.23 (1) single rate future salary increase assumption
73.35 (2) age-related select and ultimate future salary increase assumption or graded rate
73.36future salary increase assumption
74.6The select calculation is: during the
74.7designated select period, a designated
74.8percentage rate is multiplied by the result
74.9of the designated integer minus T, where
74.10T is the number of completed years of
74.11service, and is added to the applicable
74.12future salary increase assumption. The
74.13designated select period is five years and the
74.14designated integer is five for the general state
74.15employees retirement plan. The designated
74.16select period is ten years and the designated
74.17integer is ten for all other retirement plans
74.18covered by this clause. The designated
74.19percentage rate is: (1) 0.2 percent for the
74.20correctional state employees retirement plan,
74.21the State Patrol retirement plan, the public
74.22employees police and fire plan, and the local
74.23government correctional service plan; (2)
74.240.6 percent for the general state employees
74.25retirement plan; and (3) 0.3 percent for the
74.26teachers retirement plan, the Duluth Teachers
74.27Retirement Fund Association, and the St.
74.28Paul Teachers Retirement Fund Association.
74.29The select calculation for the Duluth Teachers
74.30Retirement Fund Association is 8.00 percent
74.31per year for service years one through seven,
74.327.25 percent per year for service years seven
74.33and eight, and 6.50 percent per year for
74.34service years eight and nine.
74.35 The ultimate future salary increase assumption is:
76.15(3) service-related ultimate future salary increase assumption
77.5 (c) Before July 2, 2010, the actuarial valuation must use the applicable following
77.6payroll growth assumption for calculating the amortization requirement for the unfunded
77.7actuarial accrued liability where the amortization retirement is calculated as a level
77.8percentage of an increasing payroll:
77.24 (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
77.25apply, unless a different salary assumption or a different payroll increase assumption:
77.26 (1) has been proposed by the governing board of the applicable retirement plan;
77.27 (2) is accompanied by the concurring recommendation of the actuary retained under
77.28section356.214, subdivision 1 , if applicable, or by the approved actuary preparing the
77.29most recent actuarial valuation report if section356.214 does not apply; and
77.30 (3) has been approved or deemed approved under subdivision 18.
77.31 Sec. 7. Minnesota Statutes 2010, section 356.216, is amended to read:
77.32356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE
77.33AND FIRE FUNDS.
77.34(a) The provisions of section
356.215 that govern the contents of actuarial valuations
77.35must apply to any local police or fire pension fund or relief association required to make
77.36an actuarial report under this section, except as follows:
77.37(1) in calculating normal cost and other requirements, if required to be expressed as
77.38a level percentage of covered payroll, the salaries used in computing covered payroll must
78.1be the maximum rate of salary on which retirement and survivorship credits and amounts
78.2of benefits are determined and from which any member contributions are calculated and
78.3deducted;
78.4(2) in lieu of the amortization date specified in section356.215, subdivision 11 ,
78.5the appropriate amortization target date specified in section69.77, subdivision 4 , or
78.669.773, subdivision 4
, clause (c), must be used in calculating any required amortization
78.7contribution, except that if the actuarial report for the Bloomington Fire Department Relief
78.8Association indicates an unfunded actuarial accrued liability, the unfunded obligation is
78.9to be amortized on a level dollar basis by December 31 of the year occurring 20 years
78.10later, and if subsequent actuarial valuations for the Bloomington Fire Department Relief
78.11Association determine a net actuarial experience loss incurred during the year which
78.12ended as of the day before the most recent actuarial valuation date, any unfunded liability
78.13due to that loss is to be amortized on a level dollar basis by December 31 of the year
78.14occurring 20 years later and except that the amortization date for the Minneapolis Police
78.15Relief Association is December 31, 2020;
78.16(3) in addition to the tabulation of active members and annuitants provided for in
78.17section356.215, subdivision 13 , the member contributions for active members for the
78.18calendar year and the prospective annual retirement annuities under the benefit plan for
78.19active members must be reported;
78.20(4) actuarial valuations required under section69.773, subdivision 2 , must be made
78.21at least every four years and actuarial valuations required under section69.77 shall be
78.22made annually;
78.23(5) the actuarial balance sheet showing accrued assets valued at market value if the
78.24actuarial valuation is required to be prepared at least every four years or valued as current
78.25assets under section356.215, subdivision 1 , paragraph (b) or (f), whichever applies, if the
78.26actuarial valuation is required to be prepared annually, actuarial accrued liabilities, and the
78.27unfunded actuarial accrued liability must include the following required reserves:
78.28(i) for active members:
78.291. retirement benefits;
78.302. disability benefits;
78.313. refund liability due to death or withdrawal;
78.324. survivors' benefits;
78.33(ii) for deferred annuitants' benefits;
78.34(iii) for former members without vested rights;
78.35(iv) for annuitants;
78.361. retirement annuities;
79.12. disability annuities;
79.23. surviving spouses' annuities;
79.34. surviving children's annuities;
79.4In addition to those required reserves, separate items must be shown for additional
79.5benefits, if any, which may not be appropriately included in the reserves listed above; and
79.6(6) actuarial valuations are due by the first day of the seventh month after the end of
79.7the fiscal year which the actuarial valuation covers.
79.8(b) For the Minneapolis Firefighters Relief Association or the Minneapolis Police
79.9Relief Association, the following provisions additionally apply:
79.10(1) in calculating the actuarial balance sheet, unfunded actuarial accrued liability,
79.11and amortization contribution of the relief association, "current assets" means the value of
79.12all assets at cost, including realized capital gains and losses, plus or minus, whichever
79.13applies, the average value of total unrealized capital gains or losses for the most recent
79.14three-year period ending with the end of the plan year immediately preceding the actuarial
79.15valuation report transmission date; and
79.16(2) in calculating the applicable portions of the actuarial valuation, an annual
79.17preretirement interest assumption of six percent, an annual postretirement interest
79.18assumption of six percent, and an annual salary increase assumption of four percent must
79.19be used.
79.20 Sec. 8. Minnesota Statutes 2010, section 356.401, subdivision 3, is amended to read:
79.21 Subd. 3. Covered retirement plans. The provisions of this section apply to the
79.22following retirement plans:
79.23(1) the legislators retirement plan, established by chapter 3A;
79.24(2) the general state employees retirement plan of the Minnesota State Retirement
79.25System, established by chapter 352;
79.26(3) the correctional state employees retirement plan of the Minnesota State
79.27Retirement System, established by chapter 352;
79.28(4) the State Patrol retirement plan, established by chapter 352B;
79.29(5) the elective state officers retirement plan, established by chapter 352C;
79.30(6) the unclassified state employees retirement program, established by chapter
79.31352D;
79.32(7) the general employees retirement plan of the Public Employees Retirement
79.33Association, established by chapter 353, including the MERF division of the Public
79.34Employees Retirement Association;
80.1(8) the public employees police and fire plan of the Public Employees Retirement
80.2Association, established by chapter 353;
80.3(9) the public employees defined contribution plan, established by chapter 353D;
80.4(10) the local government correctional service retirement plan of the Public
80.5Employees Retirement Association, established by chapter 353E;
80.6(11) the voluntary statewide lump-sum volunteer firefighter retirement plan,
80.7established by chapter 353G;
80.8(12) the Teachers Retirement Association, established by chapter 354;
80.9(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
80.10(14) the St. Paul Teachers Retirement Fund Association, established by chapter
80.11354A;
80.12(15) the individual retirement account plan, established by chapter 354B;
80.13(16) the higher education supplemental retirement plan, established by chapter
80.14354C; and
80.15(17) the Minneapolis Police Relief Association, established by chapter 423B;
80.16(18) the Minneapolis Firefighters Relief Association, established by chapter 423C;
80.17and
80.18(19) (17) the judges retirement fund, established by chapter 490.
80.19 Sec. 9. Minnesota Statutes 2010, section 356.465, subdivision 3, is amended to read:
80.20 Subd. 3. Covered retirement plans. The provisions of this section apply to the
80.21following retirement plans:
80.22(1) the general state employees retirement plan of the Minnesota State Retirement
80.23System established under chapter 352;
80.24(2) the correctional state employees retirement plan of the Minnesota State
80.25Retirement System established under chapter 352;
80.26(3) the State Patrol retirement plan established under chapter 352B;
80.27(4) the legislators retirement plan established under chapter 3A;
80.28(5) the judges retirement plan established under chapter 490;
80.29(6) the general employees retirement plan of the Public Employees Retirement
80.30Association established under chapter 353, including the MERF division of the Public
80.31Employees Retirement Association;
80.32(7) the public employees police and fire plan of the Public Employees Retirement
80.33Association established under chapter 353;
80.34(8) the teachers retirement plan established under chapter 354;
81.1(9) the Duluth Teachers Retirement Fund Association established under chapter
81.2354A;
81.3(10) the St. Paul Teachers Retirement Fund Association established under chapter
81.4354A; and
81.5(11) the Minneapolis Firefighters Relief Association established under chapter 423C;
81.6(12) the Minneapolis Police Relief Association established under chapter 423B; and
81.7(13) (11) the local government correctional service retirement plan of the Public
81.8Employees Retirement Association established under chapter 353E.
81.9 Sec. 10. Minnesota Statutes 2010, section 423A.01, subdivision 3, is amended to read:
81.10 Subd. 3. Benefit increase for certain relief association members. Notwithstanding
81.11any law to the contrary, any member of a local police or salaried firefighters' relief
81.12association located in a municipality which has not adopted a municipal resolution
81.13retaining the local relief associationpursuant to under subdivision 1, except the city of
81.14Minneapolis, shall be entitled to receive, after the effective date for the modification of
81.15pension coverage for newly employed personnel, a retirement annuity in addition to the
81.16service pension to which the member may be eligible upon retirement. The additional
81.17retirement annuityshall be is payable for the life of the retired member. The additional
81.18retirement annuityshall be is equal to one-half of one percent of the salary upon which the
81.19service pension is calculated payable on the date of termination of active service per year
81.20of service credit acquired in excess of 25 years of service credit. The retirement annuity
81.21under this subdivisionshall is not be subject to any postretirement increases granted
81.22pursuant to under increases in the salary payable to a certain employment category or in
81.23the salaries payable to active members or be in any other manner escalated or increased
81.24after retirement.
81.25 Sec. 11. Minnesota Statutes 2010, section 423A.02, subdivision 1, is amended to read:
81.26 Subdivision 1. Amortization state aid. (a) A municipality in which is located
81.27a local police or salaried firefighters' relief association to which the provisions of
81.28section69.77 , apply, that had an unfunded actuarial accrued liability in the most
81.29recent relief association actuarial valuation, is entitled, upon application as required
81.30by the commissioner of revenue, to receive local police and salaried firefighters' relief
81.31association amortization state aid if the municipality and the appropriate relief association
81.32both comply with the applicable provisions of sections69.031, subdivision 5 ,
69.051,
81.33subdivisions 1 and 3 , and
69.77 .
82.1(b) The total amount of amortization state aid to all entitled municipalities must
82.2not exceed $5,055,000.
82.3(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph,
82.4the amount of amortization state aid to which a municipality is entitled annually is an
82.5amount equal to the level annual dollar amount required to amortize, by December 31,
82.62010, the unfunded actuarial accrued liability of the special fund of the appropriate
82.7relief association as reported in the December 31, 1978, actuarial valuation of the
82.8relief association prepared under sections356.215 and
356.216 , reduced by the dollar
82.9amount required to pay the interest on the unfunded actuarial accrued liability of the
82.10special fund of the relief association for calendar year 1981 set at the rate specified in
82.11Minnesota Statutes 1978, section356.215, subdivision 8 . For the city of Minneapolis, the
82.12amortization state aid amount thus determined must be reduced by $747,232 on account
82.13of the former Minneapolis Police Relief Association and by $772,768 on account of
82.14the former Minneapolis Fire Department Relief Association. If the amortization state
82.15aid amounts determined under this paragraph exceed the amount appropriated for this
82.16purpose, the amortization state aid for actual allocation must be reduced pro rata.
82.17(d) Payment of amortization state aid to municipalities must be made directly to
82.18the municipalities involved in three equal installments on July 15, September 15, and
82.19November 15 annually. Upon receipt of amortization state aid, the municipal treasurer
82.20shall transmit the aid amount to the treasurer of the local relief association for immediate
82.21deposit in the special fund of the relief association.
82.22(e) The commissioner of revenue shall prescribe and periodically revise the form for
82.23and content of the application for the amortization state aid.
82.24(f) The amount required under this section, as provided in subdivision 3a, is
82.25appropriated annually from the general fund to the commissioner of revenue.
82.26 Sec. 12. Minnesota Statutes 2010, section 609B.455, is amended to read:
82.27609B.455MINNEAPOLIS POLICE PUBLIC PENSION; HOMICIDE;
82.28BENEFIT LOSS.
82.29 Subdivision 1. Scope. The collateral sanctions discussed in this section are codified
82.30in section356.406 .
82.31 Subd. 2. Homicide; loss of death benefits. A person charged with a felony causing
82.32the death of a public pension plan member has the entitlement to the pension suspended.
82.33 Subd. 3. Forfeiture of survivor benefits upon felony conviction. A person who is
82.34a survivor and convicted of a felony that caused the death of a public pension member
82.35forfeits the survivor pension benefit.
83.1 Subd. 4. Benefit recovery. If pension benefits have already been paid, the chief
83.2administrative officer of the pension plan must attempt to recover amounts paid.
83.3 Sec. 13. Minnesota Statutes 2010, section 609B.460, is amended to read:
83.4609B.460 FORMER MINNEAPOLIS POLICE RELIEF ASSOCIATION
83.5PENSION SERVICE PENSIONER; FELONS NOT ENTITLED TO PENSION
83.6DURING INCARCERATION.
83.7Under section
423B.09, A person who is a member of the public employees police
83.8and fire retirement plan, who was a member of the former Minneapolis Police Relief
83.9Association, and who was convicted of a felony, is not entitled to a pension or an annuity
83.10from the public employee police and fire retirement plan during the person's period of
83.11incarceration in a penal institution.
83.12 Sec. 14. EFFECTIVE DATE.
83.13(a) This article is effective with respect to the Minneapolis Firefighters Relief
83.14Association on the date on which the article relating to the Minneapolis Firefighters Relief
83.15Association is effective.
83.16(b) This article is effective with respect to the Minneapolis Police Relief Association
83.17on the date on which the article relating to the Minneapolis Police Relief Association is
83.18effective.
1.3Authority in the general employees retirement plan of the Public Employees
1.4Retirement Association; providing an optional procedure for the correction of
1.5erroneous member deductions and employer contributions for the city of Duluth
1.6and the Duluth Airport Authority; revising postretirement adjustments, reducing
1.7the refund interest rate, eliminating interest on reemployed annuitant earnings
1.8limitation deferral amounts, and lowering the deferred annuity augmentation
1.9rate for the St. Paul Teachers Retirement Fund Association; increasing various
1.10vesting requirements for the Duluth Teachers Retirement Fund Association;
1.11revising the default retirement plan coverage determination for Minnesota
1.12State Colleges and Universities System employees; revising statutory salary
1.13scale and payroll growth actuarial assumptions; extending a financial report
1.14reporting deadline date for the 2010 fire state aid allocation; authorizing the
1.15use of special actuarial work in determining the 2009 and 2010 special fund
1.16financial requirements and minimum municipal obligations for the White Bear
1.17Lake Fire Department Relief Association; authorizing a purchase of allowable
1.18service credit or salary credit for public employees and teachers; providing for a
1.19voluntary consolidation of the Minneapolis Firefighters Relief Association and
1.20a voluntary consolidation of the Minneapolis Police Relief Association with
1.21Public Employees Retirement Association Police and Fire; making conforming
1.22changes;amending Minnesota Statutes 2010, sections 6.67; 13D.01, subdivision
1.231; 43A.316, subdivision 8; 69.77, subdivisions 1a, 4; 353.01, subdivisions
1.242a, 6, 16, by adding subdivisions; 353.03, by adding a subdivision; 353.65,
1.25subdivisions 1, 2, 3; 353.651, subdivision 1; 353.656, subdivisions 1, 1a, 3,
1.263a; 353.657, subdivision 1; 354A.011, by adding a subdivision; 354A.094,
1.27subdivision 3; 354A.29, by adding subdivisions; 354A.31, subdivisions 1, 5, 6;
1.28354A.35, subdivision 2; 354A.36, subdivision 1; 354A.37; 354B.21, subdivisions
1.291, 2, 3, 3a, 5, 6, by adding subdivisions; 356.215, subdivision 8; 356.216;
1.30356.401, subdivision 3; 356.465, subdivision 3; 356.47, subdivision 3; 423A.01,
1.31subdivision 3; 423A.02, subdivisions 1, 1b; 609B.455; 609B.460; proposing
1.32coding for new law in Minnesota Statutes, chapter 353; repealing Minnesota
1.33Statutes 2010, sections 354A.29, subdivision 3; 354B.21, subdivision 3c;
1.34354B.32; 423A.021; 423B.01; 423B.03; 423B.04; 423B.05; 423B.06; 423B.07;
1.35423B.08; 423B.09; 423B.10; 423B.11; 423B.12; 423B.13; 423B.14; 423B.15;
1.36423B.151; 423B.16; 423B.17; 423B.18; 423B.19; 423B.20; 423B.21; 423B.23;
1.37423C.01; 423C.02; 423C.03; 423C.04; 423C.05; 423C.06; 423C.07; 423C.08;
1.38423C.09; 423C.10; 423C.11; 423C.12; 423C.13; 423C.14; 423C.15; 423C.16.
2.1BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.4 Section 1. Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:
2.5 Subd. 2a. Included employees; mandatory membership. (a) Public employees
2.6whose salary exceeds $425 in any month and who are not specifically excluded under
2.7subdivision 2b or who have not been provided an option to participate under subdivision
2.82d, whether individually or by action of the governmental subdivision, must participate as
2.9members of the association with retirement coverage by the general employees retirement
2.10plan under this chapter, the public employees police and fire retirement plan under this
2.11chapter, or the local government correctional employees retirement plan under chapter
2.12353E, whichever applies. Membership commences as a condition of their employment on
2.13the first day of their employment or on the first day that the eligibility criteria are met,
2.14whichever is later. Public employees include but are not limited to:
2.15(1) persons whose salary meets the threshold in this paragraph from employment in
2.16one or more positions within one governmental subdivision;
2.17(2) elected county sheriffs;
2.18(3) persons who are appointed, employed, or contracted to perform governmental
2.19functions that by law or local ordinance are required of a public officer, including, but
2.20not limited to:
2.21(i) town and city clerk or treasurer;
2.22(ii) county auditor, treasurer, or recorder;
2.23(iii) city manager as defined in section
2.24provided under subdivision 2d; or
2.25(iv) emergency management director, as provided under section
2.26(4) physicians under section
2.27employees defined contribution plan coverage under section
2.28(5) full-time employees of the Dakota County Agricultural Society;
2.29(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
2.30Police Relief Association who are not excluded employees under subdivision 2b due
2.31to coverage by the relief association pension plan and who elected general employee
2.32retirement plan coverage before August 20, 2009; and
2.33(7) employees of the Red Wing Port Authority who were first employed by the
2.34Red Wing Port Authority before May 1, 2011, and who are not excluded employees
2.35under subdivision 2b.
3.1 (b) A public employee or elected official who was a member of the association on
3.2June 30, 2002, based on employment that qualified for membership coverage by the public
3.3employees retirement plan or the public employees police and fire plan under this chapter,
3.4or the local government correctional employees retirement plan under chapter 353E as of
3.5June 30, 2002, retains that membership for the duration of the person's employment in that
3.6position or incumbency in elected office. Except as provided in subdivision 28, the person
3.7shall participate as a member until the employee or elected official terminates public
3.8employment under subdivision 11a or terminates membership under subdivision 11b.
3.9(c) If the salary of an included public employee is less than $425 in any subsequent
3.10month, the member retains membership eligibility.
3.11(d) For the purpose of participation in the MERF division of the general employees
3.12retirement plan, public employees include employees who were members of the former
3.13Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
3.14members of the MERF division of the association.
3.15EFFECTIVE DATE.This section is effective the day following final enactment.
3.16 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 6, is amended to read:
3.17 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
3.18county, city, town, school district within this state, or a department, unit or instrumentality
3.19of state or local government, or any public body established under state or local
3.20authority that has a governmental purpose, is under public control, is responsible for the
3.21employment and payment of the salaries of employees of the entity, and receives a major
3.22portion of its revenues from taxation, fees, assessments or from other public sources.
3.23 (b) Governmental subdivision also means the Public Employees Retirement
3.24Association, the League of Minnesota Cities, the Association of Metropolitan
3.25Municipalities, charter schools formed under section
3.26exercising retirement plan participation under section
3.27boards organized under section
3.28collaboratives and children's mental health collaboratives organized under section
3.29subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
3.30are governmental units that otherwise qualify for retirement plan membership, public
3.31hospitals owned or operated by, or an integral part of, a governmental subdivision or
3.32governmental subdivisions, the Association of Minnesota Counties, the Minnesota
3.33Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
3.34Airports Commission, the University of Minnesota with respect to police officers covered
3.35by the public employees police and fire retirement plan, the Minneapolis Employees
4.1Retirement Fund for employment initially commenced after June 30, 1979, the Range
4.2Association of Municipalities and Schools, soil and water conservation districts, economic
4.3development authorities created or operating under sections
4.4Authority of the city of St. Paul, the Red Wing Port Authority, the Spring Lake Park Fire
4.5Department, incorporated, the Lake Johanna Volunteer Fire Department, incorporated,
4.6the Red Wing Environmental Learning Center, the Dakota County Agricultural Society,
4.7Hennepin Healthcare System, Inc., and the Minneapolis Firefighters Relief Association
4.8and Minneapolis Police Relief Association with respect to staff covered by the Public
4.9Employees Retirement Association general plan.
4.10 (c) Governmental subdivision does not mean any municipal housing and
4.11redevelopment authority organized under the provisions of sections
4.12or any port authority organized under sections
4.13Authority of the city of St. Paul and other than the Red Wing Port Authority; or any
4.14hospital district organized or reorganized prior to July 1, 1975, under sections
4.16children's mental health collaborative organized under sections
4.18 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
4.19Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
4.20governmental subdivision unless the entity has obtained a written advisory opinion from
4.21the United States Department of Labor or a ruling from the Internal Revenue Service
4.22declaring the entity to be an instrumentality of the state so as to provide that any future
4.23contributions by the entity on behalf of its employees are contributions to a governmental
4.24plan within the meaning of Internal Revenue Code, section 414(d).
4.25 (e) A public body created by state or local authority may request membership on
4.26behalf of its employees by providing sufficient evidence that it meets the requirements in
4.27paragraph (a).
4.28 (f) An entity determined to be a governmental subdivision is subject to the reporting
4.29requirements of this chapter upon receipt of a written notice of eligibility from the
4.30association.
4.31EFFECTIVE DATE.This section is effective the day following final enactment.
4.32 Sec. 3. VALIDATION OF PAST RETIREMENT COVERAGE AND
4.33CONTRIBUTIONS FOR RED WING PORT AUTHORITY EMPLOYEES.
4.34(a) Retirement coverage by the general employees retirement plan of the Public
4.35Employees Retirement Association, allowable service credit, and salary credit for
5.1employees of the Red Wing Port Authority who were so employed after December 31,
5.21984, and were first so employed before May 1, 2011, who had monthly salary in any
5.3month of at least $325 until June 30, 1988, and who had monthly salary in any month of
5.4at least $425 after June 30, 1988, who were not otherwise excluded under the applicable
5.5edition of Minnesota Statutes, section 353.01, subdivision 2b, and who had member
5.6deductions taken and transferred in a timely manner to the general employees retirement
5.7fund before the effective date of this section are hereby validated.
5.8(b) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
5.9contrary, employee contributions deducted from employees of the Red Wing Port
5.10Authority described in paragraph (a) before the effective date of this section and associated
5.11employer contributions are valid assets of the general employees retirement fund and are
5.12not subject to refund or adjustment for erroneous receipt except as provided in Minnesota
5.13Statutes, section 353.32, subdivision 1 or 2; or 353.34, subdivisions 1 and 2.
5.14EFFECTIVE DATE.This section is effective the day following final enactment.
5.15 Sec. 4. CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY;
5.16CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER
5.17CONTRIBUTIONS, AND ADJUSTING OVERPAID BENEFITS.
5.18 Subdivision 1. Application. Notwithstanding any provisions of Minnesota Statutes,
5.19section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2010, chapters 353 and 356,
5.20to the contrary, this section establishes the procedures by which the executive director of
5.21the Public Employees Retirement Association shall adjust erroneous employee deductions
5.22and employer contributions paid on behalf of active employees and former members
5.23by the city of Duluth and by the Duluth Airport Authority on amounts determined by
5.24the executive director to be invalid salary under Minnesota Statutes, section 353.01,
5.25subdivision 10, reported between January 1, 1997, and October 23, 2008, and for
5.26adjusting benefits that were paid to former members and their beneficiaries based upon
5.27invalid salary amounts.
5.28 Subd. 2. Refunds of employee deductions. (a) The executive director shall refund
5.29to active employees or former members who are not receiving retirement annuities or
5.30benefits all erroneous employee deductions identified by the city of Duluth or by the
5.31Duluth Airport Authority as deductions taken from amounts determined to be invalid
5.32salary. The refunds must include interest at the rate specified in Minnesota Statutes,
5.33section 353.34, subdivision 2, from the date each invalid employee deduction was received
5.34through the date each refund is paid.
6.1(b) The refund payment for active employees must be sent to the applicable members
6.2who are employees of the city of Duluth or who are employees of the Duluth Airport
6.3Authority, whichever is applicable.
6.4(c) Refunds to former members must be mailed by the executive director of the
6.5Public Employees Retirement Association to the former member's last known address.
6.6 Subd. 3. Benefit adjustments. (a) For a former member who is receiving a
6.7retirement annuity or disability benefit, or for a person receiving an optional annuity or
6.8survivor benefit, the executive director must:
6.9(1) adjust the annuity or benefit payment to the correct monthly benefit amount
6.10payable by reducing the average salary under Minnesota Statutes, section 353.01,
6.11subdivision 17a, by the invalid salary amounts;
6.12(2) determine the amount of the overpaid benefits paid from the effective date of the
6.13annuity or benefit payment to July 1, 2009;
6.14(3) calculate the amount of employee deductions taken in error on invalid salary,
6.15including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision
6.162, from the date each invalid employee deduction was received through the first day of the
6.17month in which the refund under paragraph (b), or action to recover net overpayments
6.18under subdivision 4, occurs; and
6.19(4) determine the net amount of overpaid benefits by reducing the amount of the
6.20overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous
6.21employee deductions with interest determined in clause (3).
6.22(b) If a former member's erroneous employee deductions plus interest determined
6.23under this section exceeds the amount of the person's overpaid benefits, the balance must
6.24be refunded to the person to whom the annuity or benefit is being paid.
6.25(c) The executive director shall recover the net amount of all overpaid annuities or
6.26benefits as provided under subdivision 4.
6.27 Subd. 4. Employer credits and obligations. (a) The executive director shall
6.28provide a credit without interest to the city of Duluth and to the Duluth Airport Authority
6.29for the amount of that governmental subdivision's erroneous employer contributions. The
6.30credit must first be used to offset the net amount of the overpaid retirement annuities and
6.31the disability and survivor benefits that remain after applying the amount of erroneous
6.32employee deductions with interest as provided under subdivision 3, paragraph (a),
6.33clause (4). The remaining erroneous employer contributions, if any, must be credited
6.34against future employer contributions required to be paid by the applicable governmental
6.35subdivision. If the overpaid benefits exceed the employer contribution credit, the balance
7.1of the overpaid benefits is the obligation of the city of Duluth or the Duluth Airport
7.2Authority, whichever is applicable.
7.3(b) The Public Employees Retirement Association board of trustees shall determine
7.4the period of time and manner for the collection of overpaid retirement annuities and
7.5benefits, if any, from the city of Duluth and the Duluth Airport Authority.
7.6 Subd. 5. Treatment of invalid salary amounts in process. (a) The governing body
7.7of the city of Duluth or the Duluth Airport Authority, as applicable, may elect to limit the
7.8period of adjustment for amounts determined to be invalid salary to apply to the fiscal
7.9year in which the error was reported to, and the salary determined to be invalid by, the
7.10Public Employees Retirement Association, and the immediate two preceding fiscal years,
7.11by a resolution of the applicable governing body transmitted to the Public Employees
7.12Retirement Association executive director within 30 days following the effective date
7.13of this section.
7.14(b) If the governing body of the applicable governmental subdivision declines the
7.15treatment permitted under paragraph (a) or fails to submit a resolution in a timely manner,
7.16the statute of limitations specified in paragraph (a) does not apply.
7.17EFFECTIVE DATE.(a) This section is effective for the city of Duluth the day after
7.18the Duluth city council and the chief clerical officer of the city of Duluth timely complete
7.19their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for
7.20members who are, and former members who were, employees of the city of Duluth.
7.21(b) This section is effective for the Duluth Airport Authority the day after the Duluth
7.22Airport Authority board of directors and the chief clerical officer of the Duluth Airport
7.23Authority timely complete their compliance with Minnesota Statutes, section 645.021,
7.24subdivisions 2 and 3, for members who are, and former members who were, employees
7.25of the Duluth Airport Authority.
7.28 Section 1. Minnesota Statutes 2010, section 354A.011, is amended by adding a
7.29subdivision to read:
7.30 Subd. 29. Vesting; vested. (a) "Vesting" or "vested" means having entitlement to a
7.31nonforfeitable annuity or benefit from a coordinated member program administered by a
7.32teachers retirement fund association by having credit for sufficient allowable service under
7.33paragraph (b) or (c), whichever applies.
8.1(b) For purposes of qualifying for an annuity or a benefit as a coordinated plan
8.2member of the St. Paul Teachers Retirement Fund Association, the teacher is vested when
8.3the teacher has accrued credit for at least three years of service.
8.4(c) For purposes of qualifying for an annuity or a benefit as a coordinated plan
8.5member of the Duluth Teachers Retirement Fund Association:
8.6(1) a teacher who first became a member of the plan before July 1, 2010, is vested
8.7when the teacher has accrued at least three years of service; and
8.8(2) a teacher who first became a member of the plan after June 30, 2010, is vested
8.9when the teacher has accrued at least five years of service.
8.10EFFECTIVE DATE.This section is effective the day following final enactment.
8.11 Sec. 2. Minnesota Statutes 2010, section 354A.094, subdivision 3, is amended to read:
8.12 Subd. 3. Qualified part-time teacher program participation requirements. (a)
8.13A teacher in the public schools of a city of the first class who
8.14
8.15combined years
8.16schools, Minnesota secondary schools, and Minnesota State Colleges and Universities
8.17system at least equal to the number of years specified for vesting in the applicable first
8.18class city teacher plan, may, by agreement with the board of the employing district, be
8.19assigned to teaching service within the district in a part-time teaching position. The
8.20agreement must be executed before October 1 of the year for which the teacher requests to
8.21make retirement contributions under subdivision 4. A copy of the executed agreement
8.22must be filed with the executive director of the retirement fund association. If the copy
8.23of the executed agreement is filed with the association after October 1 of the year for
8.24which the teacher requests to make retirement contributions under subdivision 4, the
8.25employing school district shall pay a fine of $5 for each calendar day that elapsed since
8.26the October 1 due date. The association may not accept an executed agreement that is
8.27received by the association more than 15 months late. The association may not waive
8.28the fine required by this section.
8.29(b) Notwithstanding paragraph (a), if the teacher is also a legislator:
8.30(1) the agreement in paragraph (a) must be executed before March 1 of the school
8.31year for which the teacher requests to make retirement contributions under subdivision
8.324; and
8.33(2) the fines specified in paragraph (a) apply if the employing unit does not file the
8.34executed agreement with the executive director of the applicable Teachers Retirement
8.35Fund Association by March 1.
9.1EFFECTIVE DATE.This section is effective the day following final enactment.
9.2 Sec. 3. Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
9.3to read:
9.4 Subd. 7. Eligibility for payment of postretirement adjustments. (a) Annually,
9.5after June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association
9.6must determine the amount of any postretirement adjustment using the procedures in this
9.7subdivision and subdivision 8 or 9, whichever is applicable.
9.8(b) On January 1, each eligible person who has been receiving an annuity or benefit
9.9under the articles of incorporation, the bylaws, or this chapter for at least three calendar
9.10months as of the end of the last day of the previous calendar year is eligible to receive a
9.11postretirement increase as specified in subdivision 8 or 9.
9.12EFFECTIVE DATE.This section is effective July 1, 2011.
9.13 Sec. 4. Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
9.14to read:
9.15 Subd. 8. Calculation of postretirement adjustments; transitional provision. (a)
9.16For purposes of computing postretirement adjustments for eligible benefit recipients of the
9.17St. Paul Teachers Retirement Fund Association, the accrued liability funding ratio based
9.18on the actuarial value of assets of the plan as determined by the most recent actuarial
9.19valuation prepared under sections 356.214 and 356.215 determines the postretirement
9.20increase, as follows:
| 9.21 |
Funding ratio |
Postretirement increase |
|||
| 9.22 |
Less than 80 percent |
1 percent |
|||
| 9.23 9.24 |
At least 80 percent but less than 90 percent |
2 percent |
9.26to be applied as a permanent increase to the regular payment of each eligible member
9.27on January 1 of the next calendar year. For any eligible member whose effective date
9.28of benefit commencement occurred during the calendar year before the postretirement
9.29increase is applied, the full increase amount must be prorated on the basis of whole
9.30calendar quarters in benefit payment status in the calendar year prior to the January 1 on
9.31which the postretirement increase is applied, calculated to the third decimal place.
9.32(c) If the accrued liability funding ratio based on the actuarial value of assets is at
9.33least 90 percent, this subdivision expires and subsequent postretirement increases must be
9.34paid as specified in subdivision 9.
10.1EFFECTIVE DATE.This section is effective July 1, 2011.
10.2 Sec. 5. Minnesota Statutes 2010, section 354A.29, is amended by adding a subdivision
10.3to read:
10.4 Subd. 9. Calculation of postretirement adjustments. (a) This subdivision applies
10.5if subdivision 8 has expired.
10.6(b) A percentage adjustment must be computed and paid under this subdivision to
10.7eligible persons under subdivision 7. This adjustment is determined by reference to the
10.8Consumer Price Index for urban wage earners and clerical workers all items index as
10.9reported by the Bureau of Labor Statistics within the United States Department of Labor
10.10each year as part of the determination of annual cost-of-living adjustments to recipients of
10.11federal old-age, survivors, and disability insurance. For calculations of postretirement
10.12adjustments under paragraph (c), the term "average third quarter Consumer Price Index
10.13value" means the sum of the monthly index values as initially reported by the Bureau of
10.14Labor Statistics for the months of July, August, and September, divided by three.
10.15(c) Before January 1 of each year, the executive director must calculate the amount
10.16of the postretirement adjustment by dividing the most recent average third quarter index
10.17value by the same average third quarter index value from the previous year, subtract one
10.18from the resulting quotient, and express the result as a percentage amount, which must be
10.19rounded to the nearest one-tenth of one percent.
10.20(d) The amount calculated under paragraph (c) is the full postretirement adjustment
10.21to be applied as a permanent increase to the regular payment of each eligible member
10.22on January 1 of the next calendar year. For any eligible member whose effective date
10.23of benefit commencement occurred during the calendar year before the postretirement
10.24adjustment is applied, the full increase amount must be prorated on the basis of whole
10.25calendar quarters in benefit payment status in the calendar year prior to the January 1 on
10.26which the postretirement adjustment is applied, calculated to the third decimal place.
10.27(e) The adjustment must not be less than zero nor greater than five percent.
10.28EFFECTIVE DATE.This section is effective July 1, 2011.
10.29 Sec. 6. Minnesota Statutes 2010, section 354A.31, subdivision 1, is amended to read:
10.30 Subdivision 1. Age and service requirements. Any coordinated member or former
10.31coordinated member of the Duluth Teachers Retirement Fund Association or of the St.
10.32Paul Teachers Retirement Fund Association who has ceased to render teaching service for
10.33the school district in which the teachers retirement fund association exists, who is vested
10.34and who has either attained the age of at least 55 years
11.1
11.2regardless of age, shall be entitled upon written application to a retirement annuity.
11.3
11.4
11.5
11.6
11.7
11.8
11.9
11.10
11.11EFFECTIVE DATE.This section is effective the day following final enactment.
11.12 Sec. 7. Minnesota Statutes 2010, section 354A.31, subdivision 5, is amended to read:
11.13 Subd. 5. Unreduced normal retirement annuity. Upon retirement at normal
11.14retirement age
11.15entitled to a normal retirement annuity calculated under subdivision 4 or 4a, whichever
11.16applies.
11.17EFFECTIVE DATE.This section is effective the day following final enactment.
11.18 Sec. 8. Minnesota Statutes 2010, section 354A.31, subdivision 6, is amended to read:
11.19 Subd. 6. Reduced retirement annuity. This subdivision applies only to a person
11.20who first became a coordinated member or a member of a pension fund listed in section
11.22using the retirement annuity formula percentage in subdivision 4, paragraph (c), or
11.23subdivision 4a, paragraph (c), in conjunction with this subdivision than when calculated
11.24under subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), in conjunction with
11.25subdivision 7.
11.26(a) Upon retirement at an age before normal retirement age
11.27
11.28coordinated member shall be entitled to a retirement annuity in an amount equal to the
11.29normal retirement annuity calculated using the retirement annuity formula percentage in
11.30subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), reduced by one-quarter of
11.31one percent for each month that the coordinated member is under normal retirement age if
11.32the coordinated member has less than 30 years of service credit or is under the age of 62 if
11.33the coordinated member has at least 30 years of service credit.
12.1(b) Any coordinated member whose attained age plus credited allowable service
12.2totals 90 years is entitled, upon application, to a retirement annuity in an amount equal to
12.3the normal retirement annuity calculated using the retirement annuity formula percentage
12.4in subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by
12.5reason of early retirement.
12.6EFFECTIVE DATE.This section is effective the day following final enactment.
12.7 Sec. 9. Minnesota Statutes 2010, section 354A.35, subdivision 2, is amended to read:
12.8 Subd. 2. Death while eligible to retire; surviving spouse optional annuity. (a)
12.9The surviving spouse of a vested coordinated member who
12.10
12.11interest under subdivision 1, an annuity equal to the 100 percent joint and survivor annuity
12.12the member could have qualified for had the member terminated service on the date of
12.13death. The surviving spouse eligible for a surviving spouse benefit under this paragraph
12.14may apply for the annuity at any time after the date on which the deceased employee
12.15would have attained the required age for retirement based on the employee's allowable
12.16service. A surviving spouse eligible for surviving spouse benefits under paragraph (b)
12.17or (c) may apply for an annuity at any time after the member's death. The member's
12.18surviving spouse shall be paid a joint and survivor annuity under section
12.19computed under section
12.20(b) If the member was under age 55 and has credit for at least 30 years of allowable
12.21service on the date of death, the surviving spouse may elect to receive a 100 percent joint
12.22and survivor annuity based on the age of the member and surviving spouse on the date
12.23of death. The annuity is payable using the full early retirement reduction under section
12.25reduction from age 55 to the age payment begins.
12.26(c) If
12.27
12.28spouse may elect to receive the 100 percent joint and survivor annuity based on the age
12.29of the member and the survivor at the time of death. The annuity is payable using the
12.30full early retirement reduction under section
12.31one-half of the early retirement reduction from age 55 to the date payment begins.
12.32(d) Sections
12.33surviving spouse benefit payable under this section. The benefits are payable for the life
12.34of the surviving spouse, or upon expiration of the term certain benefit payment under
12.35subdivision 2b.
13.1EFFECTIVE DATE.This section is effective the day following final enactment.
13.2 Sec. 10. Minnesota Statutes 2010, section 354A.36, subdivision 1, is amended to read:
13.3 Subdivision 1. Minimum age, service, and salary requirements. Any coordinated
13.4member who
13.5average salary of at least $75 per month, and who has become totally and permanently
13.6disabled shall be entitled to a disability benefit. If the disabled coordinated member's
13.7allowable service credit has not been continuous, at least two years of the required
13.8allowable service shall be required to have been rendered subsequent to the last
13.9interruption in service.
13.10EFFECTIVE DATE.This section is effective the day following final enactment.
13.11 Sec. 11. Minnesota Statutes 2010, section 354A.37, is amended to read:
13.12354A.37 REFUNDS; DEFERRED ANNUITY.
13.13 Subdivision 1. Eligibility for refund. Any coordinated member who ceases to
13.14render teaching service for the school district in which the teachers retirement fund
13.15association is located shall be entitled to a refund in lieu of any other annuity or benefit
13.16from the teachers retirement fund association, other than an annuity from a tax shelter
13.17annuity program and fund as authorized
13.185
13.19application for the refund
13.20teaching services if the coordinated member has not resumed active teaching services for
13.21the district. Payment of the refund
13.22refund application by the board.
13.23 Subd. 2. Eligibility for deferred retirement annuity. (a) Any coordinated member
13.24who ceases to render teaching services for the school district in which the teachers
13.25retirement fund association is located, with sufficient allowable service credit to meet
13.26the minimum service requirements specified in section
13.27entitled to a deferred retirement annuity in lieu of a refund
13.281. The deferred retirement annuity
13.30
13.31least the minimum age specified in section
13.32(b) The monthly annuity amount that had accrued when the member ceased to
13.33render teaching service must be augmented from the first day of the month following the
14.1month during which the member ceased to render teaching service to the effective date
14.2of retirement. There is no augmentation if this period is less than three months.
14.3
14.4
14.5
14.6
14.7
14.8
14.9The rate of augmentation is three percent compounded annually until January 1 of the year
14.10following the year in which the former member attains age 55, five percent compounded
14.11annually after that date to July 1, 2012, and two percent compounded annually after
14.12that date to the effective date of retirement if the employee became an employee before
14.13July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent
14.14compounded annually after that date to the effective date of retirement if the employee
14.15
14.16uninterrupted service, a separate average salary determined under section
14.17be used for each period, and the monthly annuity amount related to each period must be
14.18augmented as provided in this subdivision. The sum of the augmented monthly annuity
14.19amounts determines the total deferred annuity payable. If a person repays a refund, the
14.20service restored by the repayment must be considered as continuous with the next period
14.21of service for which the person has credit with the fund. If a person does not render
14.22teaching services in any one fiscal year or more consecutive fiscal years and then resumes
14.23teaching service, the formula percentages used from the date of resumption of teaching
14.24service are those applicable to new members. The mortality table and interest assumption
14.25used to compute the annuity are the table established by the fund to compute other
14.26annuities, and the interest assumption under section
14.27retires. A period of uninterrupted service for the purpose of this subdivision means a
14.28period of covered teaching service during which the member has not been separated from
14.29active service for more than one fiscal year.
14.30(c) The augmentation provided by this subdivision applies to the benefit provided
14.31in section
14.32not apply to any period in which a person is on an approved leave of absence from an
14.33employer unit.
14.34 Subd. 3. Computation of refund amount. A former coordinated member
14.35
14.36
15.1
15.2
15.3
15.4to the amount of the former coordinated member's accumulated employee contributions
15.5with interest at the rate of six percent per annum compounded annually to July 1, 2010,
15.6if the person is a former member of the Duluth Teachers Retirement Fund Association, or
15.7to July 1, 2011, if the person is a former member of the St. Paul Teachers Retirement Fund
15.8Association, and four percent per annum compounded annually thereafter.
15.9 Subd. 4. Certain refunds at normal retirement age. Any coordinated member
15.10who has attained the normal retirement age with less than ten years of allowable service
15.11credit and has terminated active teaching service shall be entitled to a refund in lieu of a
15.12proportionate annuity
15.13
15.14
15.15
15.16
15.17interest at the rate of six percent compounded annually to July 1, 2010, if the person is a
15.18former member of the Duluth Teachers Retirement Fund Association, or to July 1, 2011, if
15.19the person is a former member of the St. Paul Teachers Retirement Fund Association, and
15.20four percent per annum compounded annually thereafter.
15.21 Subd. 5. Unclaimed minimal refund amounts; disposition. If a coordinated
15.22member ceases to render teaching services for the school district in which the teachers
15.23retirement fund association is located but does not apply for a refund
15.24subdivision 1 within five years after the end of the plan year next following the cessation
15.25of teaching services and if the amount of the refund that the former coordinated member
15.26would have been entitled to
15.27amount of the refund and any accumulated interest
15.28a part of the retirement fund. If the former coordinated member subsequently renders
15.29teaching services for the school district in which the teachers retirement fund association
15.30is located and the amount of the refund that the former coordinated member would have
15.31previously been entitled to
15.32of the refund and any accumulated interest
15.33individual account. If the amount of the refund that the former coordinated member
15.34would have previously been entitled to
15.35the former coordinated member applies for a refund
15.36for an annuity
16.1amount of the refund and any accumulated interest
16.2individual account.
16.3EFFECTIVE DATE.This section is effective July 1, 2011.
16.4 Sec. 12. Minnesota Statutes 2010, section 354B.21, subdivision 1, is amended to read:
16.5 Subdivision 1. Eligibility. The following persons are eligible to have coverage by
16.6the individual retirement account plan
16.7plan as further specified in this section:
16.8(1) employees of the board who are employed as faculty in an employment
16.9classification included in the state university instructional unit or the state college
16.10instructional unit under section
16.11(2) the chancellor and employees of the board in eligible unclassified administrative
16.12positions;
16.13(3) the employees in eligible unclassified administrative positions in the state
16.14universities;
16.15(4) the employees in eligible unclassified administrative positions in the technical
16.16colleges; and
16.17(5) the employees in eligible unclassified administrative positions of the Minnesota
16.18Office of Higher Education or of the community colleges.
16.19EFFECTIVE DATE.This section is effective July 1, 2011.
16.20 Sec. 13. Minnesota Statutes 2010, section 354B.21, is amended by adding a
16.21subdivision to read:
16.22 Subd. 1a. Required notice; counseling. (a) No later than 90 days before the end of
16.23any applicable election period specified in this section, the employer must provide to a
16.24person beginning work in a position subject to this section for which an option to elect
16.25alternative retirement plan coverage is authorized the following information:
16.26(1) the default retirement coverage;
16.27(2) election procedures, if applicable, for electing coverage other than the default
16.28coverage; and
16.29(3) the Web site and the telephone number for the plan providing default coverage
16.30and comparable information for the plan which the person is eligible to elect.
16.31(b) The election of coverage forms must include a certification statement that the
16.32employee has received and reviewed materials on the optional coverage and the default
16.33coverage prior to making the election.
17.1EFFECTIVE DATE.This section is effective July 1, 2011.
17.2 Sec. 14. Minnesota Statutes 2010, section 354B.21, subdivision 2, is amended to read:
17.3 Subd. 2. Coverage; election. (a) An eligible
17.4
17.5
17.63, or other subdivisions of this section, whichever is applicable, and retains that coverage
17.7for the period of covered employment unless a timely election to change that coverage
17.8is made as specified in this section
17.9(b) An eligible person under subdivision 3, paragraph (b) or (c), is authorized to elect
17.10prospective Teachers Retirement Association plan coverage
17.11(c) An eligible person under subdivision 3, paragraph (d), is authorized to elect
17.12prospective coverage by the plan established by this chapter.
17.13(d) The election
17.14under paragraph (a) must be made within one year of commencing eligible Minnesota
17.15State Colleges and Universities system employment. If an election is not made within the
17.16specified election period due to a termination of Minnesota State Colleges and Universities
17.17system employment, an election may be made within 90 days of returning to eligible
17.18Minnesota State Colleges and Universities system employment. Except as specified in
17.19paragraph (f), all elections are irrevocable.
17.20
17.21
17.22Teachers Retirement Association plan for any period or periods of Minnesota State
17.23Colleges and Universities system employment occurring before the election under
17.24
17.25
17.26member who is a member of the individual retirement account plan
17.27
17.28elect to transfer retirement coverage
17.29of the faculty member first achieving tenure or its equivalent at a Minnesota state college
17.30or university. The faculty member electing Teachers Retirement Association coverage
17.31under this paragraph must purchase service credit in the Teachers Retirement Association
17.32for the entire period of time covered under the individual retirement account plan and the
17.33purchase payment amount must be determined under section
17.34Retirement Association may charge a faculty member transferring coverage a reasonable
17.35fee to cover the costs associated with computing the actuarial cost of purchasing service
18.1credit and making the transfer. A faculty member transferring from the individual
18.2retirement account plan to the Teachers Retirement Association may use any balances to
18.3the credit of the faculty member in the individual retirement account plan, any balances
18.4to the credit of the faculty member in the higher education supplemental retirement plan
18.5established under chapter 354C, or any source specified in section
18.6to purchase the service credit in the Teachers Retirement Association. If the total amount
18.7of payments under this paragraph are less than the total purchase payment amount under
18.8section
18.9retirement coverage transfer and service credit purchase authority under this paragraph
18.10expires with respect to any Minnesota State Colleges and Universities System faculty
18.11initially hired after June 30, 2014.
18.12EFFECTIVE DATE.This section is effective July 1, 2011.
18.13 Sec. 15. Minnesota Statutes 2010, section 354B.21, subdivision 3, is amended to read:
18.14 Subd. 3. Default coverage. (a) Prior to making an election under subdivision 2,
18.15or if an eligible person fails to elect coverage by the plan under subdivision 2 or if the
18.16person fails to make a timely election, the
18.17this subdivision applies
18.18
18.19
18.20
18.21
18.22
18.23
18.24
18.25
18.26
18.27
18.28
18.29
18.30
18.31
18.32
18.33
18.34
18.35
19.1
19.2
19.3
19.4(b) If an eligible person is employed by the board before July 1, 2011, in an eligible
19.5unclassified administrative position or in a faculty position in a technical college,
19.6community college, or state university, the retirement coverage is by the plan established
19.7by this chapter, unless otherwise specified in this section.
19.8(c) An eligible person described in paragraph (b), except that first employment by
19.9the board is on or after July 1, 2011, has retirement coverage by the plan established by
19.10this chapter if the eligible person has no:
19.11(1) allowable service credit in any plan listed in section 356.30, subdivision 3; or
19.12(2) prior employment covered by the state unclassified employees retirement
19.13program under chapter 352D.
19.14(d) An eligible person described in paragraph (c) has retirement coverage by the
19.15Teachers Retirement Association if the person has:
19.16(1) prior employment covered by the state unclassified employees retirement
19.17program under chapter 352D and has not withdrawn or transferred assets from that
19.18account; or
19.19(2) allowable service credit in a plan listed in section 356.30, subdivision 3.
19.20(e) To ensure that coverage is provided by the proper plan, the employee must
19.21certify to the board the existence of any service credit in any plan listed in section 356.30,
19.22subdivision 3, or whether the person retains a state unclassified employees retirement
19.23program account. If an employee fails to correctly certify prior membership in a plan
19.24or the existence of an unclassified program account, the Minnesota State Colleges and
19.25Universities system and its board shall be held harmless, and notwithstanding any law to
19.26the contrary, any resulting cost or financial liability becomes the employee's responsibility.
19.27EFFECTIVE DATE.This section is effective July 1, 2011.
19.28 Sec. 16. Minnesota Statutes 2010, section 354B.21, subdivision 3a, is amended to read:
19.29 Subd. 3a.
19.30service technical college faculty.
19.31
19.32
19.33
19.34a faculty position in a technical college on June 30, 1997, with coverage by the Teachers
19.35Retirement Association, the employee retains that coverage. If the employee was a
20.1technical college faculty member on June 30, 1995, covered by a first class city teacher
20.2retirement fund established under chapter 354A, the retirement coverage continues with
20.3the Duluth Teachers Retirement Fund Association or the St. Paul Teachers Retirement
20.4Fund Association, whichever is applicable. If the person was a technical college faculty
20.5member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund
20.6Association, the Teachers Retirement Association shall provide coverage.
20.7(b) An employee under paragraph (a) who has coverage by a first class city teacher
20.8fund association retains that coverage for the duration of the person's employment by
20.9the board
20.10
20.11Universities system, the person elects the individual retirement account plan for all future
20.12employment by the board
20.13The election is irrevocable.
20.14EFFECTIVE DATE.This section is effective July 1, 2011.
20.15 Sec. 17. Minnesota Statutes 2010, section 354B.21, subdivision 5, is amended to read:
20.16 Subd. 5. Payment for certain prior uncovered service. (a) A person employed in a
20.17faculty position or in an eligible unclassified administrative position by the board who was
20.18initially excluded from participation in the individual retirement account plan coverage,
20.19who was not covered by any other Minnesota public pension plan for that service, and
20.20who is subsequently eligible to participate in the individual retirement account plan may
20.21make member contributions for that period of prior uncovered teaching employment or
20.22eligible unclassified administrative employment with the board.
20.23(b) The member contributions for prior uncovered board service are the amount
20.24that the person would have paid if the prior service had been covered employment. The
20.25payment must be made to the individual retirement account plan administrator and may be
20.26made only by payroll deduction. The payment must be made by the later of:
20.27(1) 45 days of the start of covered employment; or
20.28(2) the end of the fiscal year in which covered employment began.
20.29(c) The board must contribute an amount to match any contribution made by a plan
20.30participant under this subdivision.
20.31(d) Payments of contributions for prior uncovered board service under this
20.32subdivision must be invested in the same manner as the regular contributions made by or
20.33on behalf of the plan participant.
20.34EFFECTIVE DATE.This section is effective July 1, 2011.
21.1 Sec. 18. Minnesota Statutes 2010, section 354B.21, subdivision 6, is amended to read:
21.2 Subd. 6. Continuation of coverage. Except as otherwise specified in this section,
21.3once a person is employed in a position that qualifies for participation in the individual
21.4retirement account plan and elects to participate in the plan, all subsequent service by the
21.5person as a faculty member or in an eligible unclassified administrative position employed
21.6by the board or other employing unit is covered by the individual retirement account plan.
21.7EFFECTIVE DATE.This section is effective July 1, 2011.
21.8 Sec. 19. Minnesota Statutes 2010, section 354B.21, is amended by adding a
21.9subdivision to read:
21.10 Subd. 7. Coverage; certain part-time employees. A person employed in a
21.11part-time faculty position or in a part-time eligible unclassified administrative position
21.12who does not meet the definition of covered employment under section 354B.20,
21.13subdivision 4, because the employment does not meet the threshold required under that
21.14provision, must certify prior membership in the Teachers Retirement Association to the
21.15Minnesota State Colleges and Universities system. If the certification is incorrect, the
21.16employee, and not the employer, is required to pay interest on the employee and employer
21.17contributions, and, if applicable, on the employer additional contributions to the Teachers
21.18Retirement Association under section 354.52, subdivision 4.
21.19EFFECTIVE DATE.This section is effective July 1, 2011.
21.20 Sec. 20. Minnesota Statutes 2010, section 356.47, subdivision 3, is amended to read:
21.21 Subd. 3. Payment. (a) Beginning one year after the reemployment withholding
21.22period ends relating to the reemployment that gave rise to the limitation, and the filing of a
21.23written application, the retired member is entitled to the payment, in a lump sum, of the
21.24value of the person's amount under subdivision 2, plus annual compound interest. For the
21.25general state employees retirement plan, the correctional state employees retirement plan,
21.26the general employees retirement plan of the Public Employees Retirement Association,
21.27the public employees police and fire retirement plan, the local government correctional
21.28employees retirement plan, and the teachers retirement plan, the annual interest rate is six
21.29percent from the date on which the amount was deducted from the retirement annuity to
21.30the date of payment or until January 1, 2011, whichever is earlier, and no interest after
21.31January 1, 2011. For the Duluth Teachers Retirement Fund Association, the annual interest
21.32is six percent from the date on which the amount was deducted from the retirement annuity
21.33to the date of payment or until June 30, 2010, whichever is earlier, and with no interest
22.1accrual after June 30, 2010. For the St. Paul Teachers Retirement Fund Association, the
22.2annual interest is the rate of six percent from the date that the amount was deducted from
22.3the retirement annuity to the date of payment or June 30, 2011, whichever is earlier, and
22.4with no interest accrual after June 30, 2011.
22.5 (b) The written application must be on a form prescribed by the chief administrative
22.6officer of the applicable retirement plan.
22.7 (c) If the retired member dies before the payment provided for in paragraph (a) is
22.8made, the amount is payable, upon written application, to the deceased person's surviving
22.9spouse, or if none, to the deceased person's designated beneficiary, or if none, to the
22.10deceased person's estate.
22.11 (d) In lieu of the direct payment of the person's amount under subdivision 2, on
22.12or after the payment date under paragraph (a), if the federal Internal Revenue Code so
22.13permits, the retired member may elect to have all or any portion of the payment amount
22.14under this section paid in the form of a direct rollover to an eligible retirement plan as
22.15defined in section 402(c) of the federal Internal Revenue Code that is specified by the
22.16retired member. If the retired member dies with a balance remaining payable under this
22.17section, the surviving spouse of the retired member, or if none, the deceased person's
22.18designated beneficiary, or if none, the administrator of the deceased person's estate may
22.19elect a direct rollover under this paragraph.
22.20EFFECTIVE DATE.This section is effective July 1, 2011.
22.21 Sec. 21. BYLAW AUTHORIZATION.
22.22Consistent with the requirements of Minnesota Statutes, section 354A.12,
22.23subdivision 4, the board of the St. Paul Teachers Retirement Fund Association is
22.24authorized to revise the bylaws and articles of incorporation so that the requirements of
22.25this act, where applicable, apply to the basic program.
22.26EFFECTIVE DATE.This section is effective July 1, 2011.
22.27 Sec. 22. REPEALER.
22.28(a) Minnesota Statutes 2010, section 354A.29, subdivision 3, is repealed.
22.29(b) Minnesota Statutes 2010, sections 354B.21, subdivision 3c; and 354B.32, are
22.30repealed.
22.31EFFECTIVE DATE.This section is effective July 1, 2011.
23.3 Section 1. Minnesota Statutes 2010, section 356.215, subdivision 8, is amended to read:
23.4 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
23.5the applicable following preretirement interest assumption and the applicable following
23.6postretirement interest assumption:
23.30 (b) Before July 1, 2010, the actuarial valuation must use the applicable following
23.31single rate future salary increase assumption, the applicable following modified single
23.32rate future salary increase assumption, or the applicable following graded rate future
23.33salary increase assumption:
23.34 (1) single rate future salary increase assumption
24.6 (2) age-related select and ultimate future salary increase assumption or graded rate
24.7future salary increase assumption
24.18The select calculation is: during the
24.19designated select period, a designated
24.20percentage rate is multiplied by the result of
24.21the designated integer minus T, where T is
24.22the number of completed years of service,
24.23and is added to the applicable future salary
24.24increase assumption. The designated select
24.25period is five years and the designated
24.26integer is five for the general state employees
24.27retirement plan. The designated select period
24.28is ten years and the designated integer is ten
24.29for all other retirement plans covered by
24.30this clause. The designated percentage rate
24.31is: (1) 0.2 percent for the correctional state
24.32employees retirement plan, the State Patrol
24.33retirement plan,
24.34
24.35correctional service retirement plan; (2)
24.360.6 percent for the general state employees
24.37retirement plan; and (3) 0.3 percent for the
24.38teachers retirement plan, the Duluth Teachers
25.1Retirement Fund Association, and the St.
25.2Paul Teachers Retirement Fund Association.
25.3The select calculation for the Duluth Teachers
25.4Retirement Fund Association is 8.00 percent
25.5per year for service years one through seven,
25.67.25 percent per year for service years seven
25.7and eight, and 6.50 percent per year for
25.8service years eight and nine.
25.9 The ultimate future salary increase assumption is:
26.25(3) service-related ultimate future salary increase assumption
27.24 (c) Before July 2, 2010, the actuarial valuation must use the applicable following
27.25payroll growth assumption for calculating the amortization requirement for the unfunded
27.26actuarial accrued liability where the amortization retirement is calculated as a level
27.27percentage of an increasing payroll:
28.1 (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
28.2apply, unless a different salary assumption or a different payroll increase assumption:
28.3 (1) has been proposed by the governing board of the applicable retirement plan;
28.4 (2) is accompanied by the concurring recommendation of the actuary retained under
28.5section
28.6most recent actuarial valuation report if section
28.7 (3) has been approved or deemed approved under subdivision 18.
28.8EFFECTIVE DATE.This section as it relates to the general state employees
28.9retirement plan of the Minnesota State Retirement System, the general employees
28.10retirement plan of the Public Employees Retirement Association, and the teachers
28.11retirement plan is effective retroactively from June 30, 2010, and as it relates to the public
28.12employees police and fire retirement plan is effective June 30, 2011.
28.15 Section 1. DEADLINE FOR REPORTS EXTENDED.
28.16Notwithstanding Minnesota Statutes, section 69.051, subdivision 1b, the deadline
28.17for reports submitted under Minnesota Statutes, section 69.051, subdivisions 1 and 1a,
28.18for 2009 is extended to April 30, 2011. A municipality or relief association does not
28.19forfeit its 2010 state aid or any future state aid if 2009 reports are received by the state
28.20auditor on or before April 30, 2011.
28.21EFFECTIVE DATE.This section is effective the day following final enactment.
28.22 Sec. 2. WHITE BEAR LAKE; SPECIAL ACTUARIAL WORK
28.23AUTHORIZATION.
28.24Notwithstanding any provision to the contrary of Minnesota Statutes, sections
28.2569.771, subdivision 3; 69.773, subdivisions 2, 4, and 5; 356.215; and 356.216, a document
28.26styled as an interim valuation at October 19, 2009, of the White Bear Lake Volunteer
28.27Fire Department Relief Association prepared by the actuarial consulting firm of Gabriel,
28.28Roeder, Smith & Company, as confirmed as to its funded status results by an actuarial
28.29valuation as of January 1, 2011, of the White Bear Lake Volunteer Fire Department Relief
28.30Association pension plan prepared by the actuarial consulting firm of Gabriel, Roeder,
28.31Smith & Company may be considered by the relief association officers, the city of White
28.32Bear Lake, and the Office of the State Auditor to be a qualifying actuarial valuation of
28.33the special fund of the relief association for the determination of the actuarial condition
29.1of the relief association and the financial requirements of the relief association amounts
29.2and the minimum municipal obligation amounts calculated by relief association officers
29.3certified to the city of White Bear Lake on or before August 1, 2009, and on or before
29.4August 1, 2010, may be considered by the City of White Bear Lake and by the Office of
29.5the State Auditor to be properly determined.
29.6EFFECTIVE DATE; LOCAL APPROVAL.This section is effective retroactively
29.7from July 31, 2009, if the White Bear Lake city council and the White Bear Lake chief
29.8clerical officer timely complete their compliance with Minnesota Statutes, section
29.9645.021, subdivisions 2 and 3.
29.12 Section 1. PERA-GENERAL; BABBITT AND BUHL SERVICE AND SALARY
29.13CREDIT PURCHASE AUTHORIZATION IN CERTAIN CASES.
29.14(a) An eligible person described in paragraph (b) is eligible to purchase from the
29.15general employees retirement plan of the Public Employees Retirement Association
29.16allowable service credit and salary credit for the period of uncredited prior employment
29.17and salary specified in paragraph (c) by making the payment required under paragraph (d).
29.18(b) An eligible person is a person who:
29.19(1) was born on November 10, 1957;
29.20(2) was employed as a part-time police officer by the city of Buhl from July 1988
29.21until November 1996;
29.22(3) was employed as a part-time police officer by Embarrass Township from March
29.231992 until August 1997;
29.24(4) was employed as a part-time police officer by the City of Babbitt from April
29.251992 until September 1992; and
29.26(5) was employed as a full-time police officer by the city of Babbitt since October 4,
29.271992, and as such is a member of the public employees police and fire retirement plan.
29.28(c) The periods of unreported employment and salary that qualified for coverage by
29.29the general employees retirement plan of the Public Employees Retirement Association
29.30and eligible for purchase are employment by the city of Buhl from October 1989 until
29.31November 1996 and employment by the city of Babbitt as a part-time police officer from
29.32April 1992 until September 1992.
29.33(d) The allowable service and salary credit purchase payment amount must be
29.34calculated under Minnesota Statutes, section 356.551. Of the total payment amount,
30.1the eligible person is obligated to pay the amount of member contributions that the
30.2eligible person would have paid by deduction to the coordinated program of the general
30.3employees retirement plan of the Public Employees Retirement Association if made in
30.4a timely fashion, plus annual compound interest at the rate of 8.5 percent from the date
30.5that the contribution should have been made until the date that the contribution equivalent
30.6payment is made. The balance of the total payment amount must be allocated between
30.7the city of Buhl and the city of Babbitt on the basis of the additional retirement benefit
30.8associated with the applicable period of past unreported eligible employment. The city
30.9of Buhl and the city of Babbitt shall make their payments within 30 days of the date on
30.10which the executive director of the Public Employees Retirement Association certifies that
30.11the eligible person has paid the equivalent member contribution payment and interest. If a
30.12city fails to make a timely payment, the executive director shall collect the unpaid amount
30.13under Minnesota Statutes, section 353.28.
30.14(e) The eligible person shall provide the executive director of the Public Employees
30.15Retirement Association with any necessary documentation of the applicability of this
30.16section that the executive director requests.
30.17(f) The authority of the eligible person to make the equivalent member contribution
30.18and interest payment under this section expires on the earlier of July 1, 2012, or the date
30.19on which the eligible person finally terminates public employment covered by Minnesota
30.20Statutes, chapter 353.
30.21EFFECTIVE DATE.This section is effective the day following final enactment.
30.22 Sec. 2. INDEPENDENT SCHOOL DISTRICT NO. 270, HOPKINS; SALARY
30.23CREDIT PURCHASE FOR PART-TIME TEACHING PROGRAM SERVICE
30.24AUTHORIZED.
30.25(a) An eligible person described in paragraph (b) is entitled, upon application to the
30.26executive director of the Teachers Retirement Association, to purchase salary credit from
30.27the Teachers Retirement Association for the period of part-time teaching service specified
30.28in paragraph (c) if the purchase payment required under paragraph (d) is paid on or before
30.29July 1, 2012, or the date of the person's retirement, whichever is earlier.
30.30(b) An eligible person is a person who:
30.31(1) was born on January 20, 1951;
30.32(2) was hired by Independent School District No. 270, Hopkins, as a teacher;
30.33(3) first participated in the qualified part-time teacher association membership
30.34program with a properly submitted teacher-school district agreement for the 2007-2008
30.35school year;
31.1(4) was employed part-time as a teacher by Independent School District No. 270,
31.2Hopkins, during the 2008-2009 school year, but the Minnesota Statutes, section 354.66,
31.3agreement was not filed with the Teachers Retirement Association until September 20,
31.42010; and
31.5(5) was employed by Independent School District No. 270, Hopkins, as a part-time
31.6teacher under Minnesota Statutes, section 354.66, for the 2009-2010 school year and
31.7for the 2010-2011 school year.
31.8(c) The period of part-time teaching service is the period during the 2008-2009
31.9school year during which the eligible person was paid 80 percent of the eligible person's
31.10full-time service salary rate for part-time teaching service rendered for Independent
31.11School District No. 270, Hopkins.
31.12(d) The total purchase payment amount for the increase in the annual salary credit
31.13for the 2008-2009 school year of $11,090.60 in the employ of Independent School
31.14District No. 270, Hopkins, is the service credit purchase payment amount required
31.15under Minnesota Statutes, section 356.551. The eligible person shall pay $609.98 plus
31.16compound interest at the annual rate of 8.5 percent from January 31, 2009, until the date
31.17of payment. Independent School District No. 270, Hopkins, must pay the balance of
31.18the purchase payment amount under Minnesota Statutes, section 356.551, in excess of
31.19the eligible person's payment amount. The school district payment is due 30 days after
31.20notification by the executive director of the Teachers Retirement Association that the
31.21eligible person's payment amount has been received by the association. If the school
31.22district fails to make the required payment in a timely manner, the executive director of
31.23the Teachers Retirement Association shall notify the commissioner of management and
31.24budget and the commissioner of education of that failure and those commissioners shall
31.25subtract the unpaid amount from and state aid otherwise payable to the school district.
31.26(e) Upon receipt by the Teachers Retirement Association of the total amount required
31.27under paragraph (d), the eligible person shall receive annual salary credit for an additional
31.28$11,090.60 for the 2008-2009 school year.
31.29(f) The salary credit purchase payment authorization under this section expires
31.30August 1, 2012.
31.31EFFECTIVE DATE.This section is effective the day following final enactment.
32.4 Section 1. Minnesota Statutes 2010, section 353.01, is amended by adding a
32.5subdivision to read:
32.6 Subd. 10a. Unit value; Minneapolis firefighters. "Unit value," for a member of
32.7the public employees police and fire retirement plan who was a member of the former
32.8Minneapolis Firefighters Relief Association on the day prior to the effective date of
32.9consolidation under section 19, is $82.32 for calendar year 2011, $96.899 for calendar
32.10year 2012, $100.775 for calendar year 2013, $104.264 for calendar year 2014, $124.031
32.11for calendar year 2015, and for calendar years after calendar year 2015, the prior year's
32.12unit value plus an increase equal to the adjustment percentage determined under section
32.13356.415, subdivision 1c, effective for the January 1 of the calendar year.
32.14 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 16, is amended to read:
32.15 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
32.16means:
32.17 (1) service during years of actual membership in the course of which employee
32.18deductions were withheld from salary and contributions were made at the applicable rates
32.19under section
32.20(2) periods of service covered by payments in lieu of salary deductions under
32.21sections
32.22 (3) service in years during which the public employee was not a member but for
32.23which the member later elected, while a member, to obtain credit by making payments to
32.24the fund as permitted by any law then in effect;
32.25 (4) a period of authorized leave of absence with pay from which deductions for
32.26employee contributions are made, deposited, and credited to the fund;
32.27 (5) a period of authorized personal, parental, or medical leave of absence without
32.28pay, including a leave of absence covered under the federal Family Medical Leave Act,
32.29that does not exceed one year, and for which a member obtained service credit for each
32.30month in the leave period by payment under section
32.31salary deductions. An employee must return to public service and render a minimum of
32.32three months of allowable service in order to be eligible to make payment under section
32.34employee must be granted allowable service credit for the purchased period;
33.1 (6) a periodic, repetitive leave that is offered to all employees of a governmental
33.2subdivision. The leave program may not exceed 208 hours per annual normal work cycle
33.3as certified to the association by the employer. A participating member obtains service
33.4credit by making employee contributions in an amount or amounts based on the member's
33.5average salary, excluding overtime pay, that would have been paid if the leave had not been
33.6taken. The employer shall pay the employer and additional employer contributions on
33.7behalf of the participating member. The employee and the employer are responsible to pay
33.8interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
33.9from the end of the normal cycle until full payment is made. An employer shall also make
33.10the employer and additional employer contributions, plus 8.5 percent interest, compounded
33.11annually, on behalf of an employee who makes employee contributions but terminates
33.12public service. The employee contributions must be made within one year after the end of
33.13the annual normal working cycle or within 30 days after termination of public service,
33.14whichever is sooner. The executive director shall prescribe the manner and forms to be
33.15used by a governmental subdivision in administering a periodic, repetitive leave. Upon
33.16payment, the member must be granted allowable service credit for the purchased period;
33.17 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
33.18months allowable service per authorized temporary or seasonal layoff in one calendar year.
33.19An employee who has received the maximum service credit allowed for an authorized
33.20temporary or seasonal layoff must return to public service and must obtain a minimum of
33.21three months of allowable service subsequent to the layoff in order to receive allowable
33.22service for a subsequent authorized temporary or seasonal layoff;
33.23 (8) a period during which a member is absent from employment by a governmental
33.24subdivision by reason of service in the uniformed services, as defined in United States
33.25Code, title 38, section 4303(13), if the member returns to public service with the same
33.26governmental subdivision upon discharge from service in the uniformed service within the
33.27time frames required under United States Code, title 38, section 4312(e), provided that
33.28the member did not separate from uniformed service with a dishonorable or bad conduct
33.29discharge or under other than honorable conditions. The service must be credited if the
33.30member pays into the fund equivalent employee contributions based upon the contribution
33.31rate or rates in effect at the time that the uniformed service was performed multiplied by
33.32the full and fractional years being purchased and applied to the annual salary rate. The
33.33annual salary rate is the average annual salary, excluding overtime pay, during the purchase
33.34period that the member would have received if the member had continued to be employed
33.35in covered employment rather than to provide uniformed service, or, if the determination
33.36of that rate is not reasonably certain, the annual salary rate is the member's average salary
34.1rate, excluding overtime pay, during the 12-month period of covered employment rendered
34.2immediately preceding the period of the uniformed service. Payment of the member
34.3equivalent contributions must be made during a period that begins with the date on which
34.4the individual returns to public employment and that is three times the length of the
34.5military leave period, or within five years of the date of discharge from the military service,
34.6whichever is less. If the determined payment period is less than one year, the contributions
34.7required under this clause to receive service credit may be made within one year of the
34.8discharge date. Payment may not be accepted following 30 days after termination of
34.9public service under subdivision 11a. If the member equivalent contributions provided for
34.10in this clause are not paid in full, the member's allowable service credit must be prorated
34.11by multiplying the full and fractional number of years of uniformed service eligible for
34.12purchase by the ratio obtained by dividing the total member contributions received by the
34.13total member contributions otherwise required under this clause. The equivalent employer
34.14contribution, and, if applicable, the equivalent additional employer contribution must be
34.15paid by the governmental subdivision employing the member if the member makes the
34.16equivalent employee contributions. The employer payments must be made from funds
34.17available to the employing unit, using the employer and additional employer contribution
34.18rate or rates in effect at the time that the uniformed service was performed, applied to the
34.19same annual salary rate or rates used to compute the equivalent member contribution. The
34.20governmental subdivision involved may appropriate money for those payments. The
34.21amount of service credit obtainable under this section may not exceed five years unless a
34.22longer purchase period is required under United States Code, title 38, section 4312. The
34.23employing unit shall pay interest on all equivalent member and employer contribution
34.24amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
34.25compounded annually from the end of each fiscal year of the leave or the break in service
34.26to the end of the month in which the payment is received. Upon payment, the employee
34.27must be granted allowable service credit for the purchased period; or
34.28(9) a period specified under subdivision 40.
34.29 (b) For calculating benefits under sections
34.30state officers and employees displaced by the Community Corrections Act, chapter 401,
34.31and transferred into county service under section
34.32combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
34.33section
34.34 (c) For a public employee who has prior service covered by a local police or
34.35firefighters relief association that has consolidated with the Public Employees Retirement
34.36Association under chapter 353A or to which section
35.1the type of benefit coverage provided by the public employees police and fire fund either
35.2under section
35.34
35.4firefighters relief association as of the effective date of the consolidation based on law
35.5and on bylaw provisions governing the relief association on the date of the initiation
35.6of the consolidation procedure.
35.7 (d) No member may receive more than 12 months of allowable service credit in
35.8a year either for vesting purposes or for benefit calculation purposes. For an active
35.9member who was an active member of the former Minneapolis Firefighters Relief
35.10Association on the day prior to the effective date of consolidation under section 19,
35.11"allowable service" is the period of service credited by the Minneapolis Firefighters Relief
35.12Association as reflected in the transferred records of the association up to the effective
35.13date of consolidation under section 19 and the period of service credited under paragraph
35.14(a), clause (1), after the effective date of consolidation under section 19.
35.15 (e) MS 2002 [Expired]
35.16 Sec. 3. Minnesota Statutes 2010, section 353.03, is amended by adding a subdivision
35.17to read:
35.18 Subd. 3b. Additional duties. The executive director shall deduct from the annuity
35.19or benefit periodically the amount of any dues of any fraternal organization continuing or
35.20established after the effective date of consolidation under section 19 for former members
35.21of the former Minneapolis Firefighters Relief Association.
35.22 Sec. 4. Minnesota Statutes 2010, section 353.65, subdivision 1, is amended to read:
35.23 Subdivision 1. Fund established. (a) The public employees police and fire fund
35.24is established for police officers and firefighters who meet the eligibility criteria under
35.25section
35.26(b) Employee contributions other than those made under subdivision 2, paragraph
35.27(b), employer contributions under subdivision 3 and under section 353.667, subdivision 6,
35.28other than the excess contribution established by section
35.29(2), clauses (b) and (c), and (3), and other amounts authorized by law, including all
35.30employee and employer contributions of members transferred, must be deposited in the
35.31public employees police and fire fund.
35.32 Sec. 5. Minnesota Statutes 2010, section 353.65, subdivision 2, is amended to read:
36.1 Subd. 2. Employee contribution. (a) For members other than members who were
36.2active members of the former Minneapolis Firefighters Relief Association on the day prior
36.3to the effective date of consolidation under section 19, the employee contribution is 9.4
36.4percent of the salary of the member in calendar year 2010 and is 9.6 percent of the salary
36.5of the member in each calendar year after 2010.
36.6(b) For members who were active members of the former Minneapolis Firefighters
36.7Relief Association on the day prior to the effective date of consolidation under section 19,
36.8the employee contribution is an amount equal to eight percent of the monthly unit value
36.9under section 353.01, subdivision 10a, multiplied by 80 and expressed as a biweekly
36.10amount for each member. The employee contribution made by a member with at least
36.1125 years of service credit as an active member of the former Minneapolis Firefighters
36.12Relief Association must be deposited in the postretirement health care savings account
36.13established under 352.98.
36.14(c) Contributions under this section must be made by deduction from salary in
36.15the manner provided in subdivision 4. Where any portion of a member's salary is paid
36.16from other than public funds, the member's employee contribution is based on the total
36.17salary received from all sources.
36.18 Sec. 6. Minnesota Statutes 2010, section 353.65, subdivision 3, is amended to read:
36.19 Subd. 3. Employer contribution. (a) With respect to members other than members
36.20who were active members of the former Minneapolis Firefighters Relief Association
36.21on the day prior to the effective date of consolidation under section 19, the employer
36.22contribution is 14.1 percent of the salary of the member in calendar year 2010 and is 14.4
36.23percent of the salary of the member in each calendar year after 2010.
36.24(b) With respect to members who were active members of the former Minneapolis
36.25Firefighters Relief Association on the day prior to the effective date of consolidation under
36.26section 19, the employer contribution is an amount equal to the amount of the member
36.27contributions under subdivision 2, paragraph (b).
36.28(c) Contributions under this subdivision must be made from funds available to the
36.29employing subdivision by the means and in the manner provided in section
36.30 Sec. 7. Minnesota Statutes 2010, section 353.651, subdivision 1, is amended to read:
36.31 Subdivision 1. Age and allowable service requirements. Upon separation from
36.32public service, any police officer or firefighter member, other than a firefighter covered
36.33by section 353.6511, who has attained the age of at least 55 years and who is vested
37.1under section
37.2known as the "normal" retirement annuity.
37.3 Sec. 8. [353.6511] ALTERNATIVE RETIREMENT BENEFIT COVERAGE IN
37.4CERTAIN INSTANCES.
37.5 Subdivision 1. Applicability. The alternative benefit coverage under this section
37.6applies only to an active member of the public employees police and fire retirement plan
37.7who was an active member of the former Minneapolis Firefighters Relief Association on
37.8the day prior to the consolidation effective date under section 19 and who retires after the
37.9consolidation effective date under section 19.
37.10 Subd. 2. Retirement annuity. (a) A member described in subdivision 1, if the
37.11member meets the eligibility requirements of paragraph (b), is only entitled to a retirement
37.12annuity under this subdivision.
37.13(b) The member, upon application, if the person is at least age 50 and has credit for
37.14at least 20 years of allowable service, is entitled to a normal retirement annuity. The
37.15normal retirement annuity is the following amount based on the service credit of the
37.16retiring member as a Minneapolis firefighter:
37.29(c) For a retired member who was unmarried on September 1, 1997, and also
37.30on October 25, 2001, who had 25 years of service credit as of October 25, 2001, and
37.31submitted a valid application for the alternative service pension under section 423C.05,
37.32subdivision 9, the retirement annuity amount is 43.3 units.
37.33 Subd. 3. Disability benefit. A member described in subdivision 1, if the member
37.34is disabled under section 353.01, subdivision 41 or 46, is entitled to a disability benefit
37.35equal to 41 units.
38.1 Subd. 4. Surviving spouse benefit. A surviving spouse under section 353.01,
38.2subdivision 20, of a deceased member described in subdivision 1 is entitled to a surviving
38.3spouse benefit equal to 23 units.
38.4 Subd. 5. Surviving dependent child benefit. A surviving dependent child under
38.5section 353.01, subdivision 15a, of a deceased member described in subdivision 1 is
38.6entitled to a surviving child benefit equal to eight units.
38.7 Subd. 6. Surviving family benefit maximum. The surviving spouse and surviving
38.8dependent child under subdivisions 4 and 5 are entitled to a combined family benefit under
38.9subdivisions 4 and 5 of 43 units.
38.10 Subd. 7. Postretirement adjustments. (a) Effective on the first day of the month
38.11next following the effective date of the consolidation under section 19, service pensions
38.12and survivor benefits in force are entitled to be recomputed with the number of units
38.13specified in subdivision 2, subdivision 4, and subdivision 6. Optional annuities under
38.14section 423C.05, subdivision 8, also are entitled to be recomputed as the actuarial
38.15equivalent of the service pensions and survivor benefits with the number of units
38.16specified in subdivision 2, subdivision 4, and subdivision 6. Retirement annuities, service
38.17pensions, disability benefits, and survivor benefits after December 31, 2015, are eligible
38.18for postretirement adjustments under section 356.415, subdivision 1c. The unit value
38.19for the calculation of a retirement annuity first payable after December 31, 2015, is the
38.20calendar year 2015 unit value, plus any postretirement adjustment percentage amount
38.21under section 356.415, subdivision 1c, payable after December 31, 2015, and before the
38.22date of retirement.
38.23 Subd. 8. Savings clause; dispute resolution. In the event of any dispute by or on
38.24behalf of any former member of the consolidating relief association after the effective date
38.25of consolidation over the amount of a benefit to which the person may be entitled, the
38.26proper interpretation of a provision of this article, or the conformity of the provisions of
38.27this article to the provisions of the benefit plan of the consolidating relief association in
38.28effective immediately before the date of the consolidation, the dispute shall be submitted
38.29in writing to the Legislative Commission on Pensions and Retirement by the person
38.30who is a party to the dispute, by the fraternal organization related to the former relief
38.31association, or by the executive director of the Public Employees Retirement Association.
38.32The Legislative Commission on Pensions and Retirement shall review the dispute as
38.33part of its deliberations on proposed or pending retirement legislation and shall make its
38.34recommendation on the resolution of the dispute, if any, to the appropriate committees of
38.35the senate and house of representatives with jurisdiction over public employee pension
38.36matters in the form of the necessary legislation amending the provisions of this article,
39.1which proposed legislation must include retroactivity of any increase in a benefit amount
39.2to the date on which the benefit subject to dispute accrued or would have accrued.
39.3 Sec. 9. Minnesota Statutes 2010, section 353.656, subdivision 1, is amended to read:
39.4 Subdivision 1. Duty disability; computation of benefits. (a) A member of
39.5the police and fire plan, other than a firefighter covered by section 353.6511, who is
39.6determined to qualify for duty disability as defined in section
39.7shall receive disability benefits during the period of such disability in an amount equal to
39.860 percent of the average salary as defined in section
39.9additional percentage specified under section
39.10salary for each year of service in excess of 20 years.
39.11 (b) To be eligible for a benefit under paragraph (a), the member must have:
39.12 (1) not met the requirements for a retirement annuity under section
39.13subdivision 1; or
39.14 (2) met the requirements under that subdivision, but does not have at least 20 years
39.15of allowable service credit.
39.16 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
39.17period of 60 months from the disability benefit accrual date and at the end of that period
39.18is subject to provisions of subdivision 5a.
39.19 (d) If the disability under this subdivision occurs before the member has at least five
39.20years of allowable service credit in the police and fire plan, the disability benefit must be
39.21computed on the average salary from which deductions were made for contribution to
39.22the police and fire fund.
39.23 Sec. 10. Minnesota Statutes 2010, section 353.656, subdivision 1a, is amended to read:
39.24 Subd. 1a. Total and permanent duty disability; computation of benefits. (a) A
39.25member of the police and fire plan, other than a firefighter covered by section 353.6511,
39.26whose disabling condition is determined to be a duty disability that is also a permanent
39.27and total disability as defined in section
39.28life, disability benefits in an amount equal to 60 percent of the average salary as defined in
39.29section
39.30subdivision 6
39.31 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
39.32under section
39.33director receives a written statement from the association's medical advisor that no
39.34improvement can be expected in the member's disabling condition that was the basis for
40.1payment of the benefit under paragraph (a). A member receiving a disability benefit
40.2under this subdivision who is found to no longer be permanently and totally disabled as
40.3defined under section
40.4receipt of a duty disability under section
40.51 upon written notice from the association's medical advisor that the person is no longer
40.6considered permanently and totally disabled.
40.7 (c) If a member approved for disability benefits under this subdivision dies before
40.8attaining normal retirement age as defined in section
40.9(b), or within 60 months of the effective date of the disability, whichever is later,
40.10the surviving spouse is entitled to receive a survivor benefit under section
40.11subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
40.12condition for which disability benefits were approved, or section
40.14for which benefits were approved under this subdivision.
40.15 (d) If the election of an actuarial equivalent optional annuity is not made at the time
40.16the permanent and total disability benefit accrues, an election must be made within 90
40.17days before the member attains normal retirement age as defined under section
40.18subdivision 37, paragraph (b), or having collected total and permanent disability benefits
40.19for 60 months, whichever is later. If a member receiving disability benefits who has
40.20dependent children dies, subdivision 6a, paragraph (c), applies.
40.21 Sec. 11. Minnesota Statutes 2010, section 353.656, subdivision 3, is amended to read:
40.22 Subd. 3. Regular disability benefit. (a) A member of the police and fire plan, other
40.23than a firefighter covered by section 353.6511, who qualifies for a regular disability benefit
40.24as defined in section
40.25after filing a valid application, in an amount equal to 45 percent of the average salary as
40.26defined in section
40.27 (b) To be eligible for a benefit under paragraph (a), the member must have at least
40.28one year of allowable service credit and have:
40.29 (1) not met the requirements for a retirement annuity under section
40.30subdivision 1, or
40.31 (2) met the requirements under that subdivision, but does not have at least 15 years
40.32of allowable service credit.
40.33 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
40.34period of 60 months from the disability benefit accrual date and, at the end of that period,
40.35is subject to provisions of subdivision 5a.
41.1 (d) For a member who is employed as a full-time firefighter by the Department of
41.2Military Affairs of the state of Minnesota, allowable service as a full-time state Military
41.3Affairs Department firefighter credited by the Minnesota State Retirement System may be
41.4used in meeting the minimum allowable service requirement of this subdivision.
41.5 Sec. 12. Minnesota Statutes 2010, section 353.656, subdivision 3a, is amended to read:
41.6 Subd. 3a. Total and permanent regular disability; computation of benefits. (a)
41.7A member of the police and fire plan, other than a firefighter covered by section 353.6511,
41.8whose disabling condition is determined to be a regular disability under section
41.9subdivision 46
41.10subdivision 19
41.1145 percent of the average salary as defined in section
41.12additional percent specified in section
41.13each year of service in excess of 15 years.
41.14 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
41.15under section
41.16director receives a written statement from the association's medical advisor that no
41.17improvement can be expected in the member's disabling condition that was the basis for
41.18payment of the benefit under paragraph (a). A member receiving a disability benefit under
41.19this subdivision who is found to no longer be permanently and totally disabled as defined
41.20under section
41.21of a regular disability under section
41.22upon written notice from the association's medical advisor that the person is no longer
41.23considered permanently and totally disabled.
41.24 (c) A member approved for disability benefits under this subdivision may elect
41.25to receive a normal disability benefit or an actuarial equivalent optional annuity. If the
41.26election of an actuarial equivalent optional annuity is not made at the time the total and
41.27permanent disability benefit accrues, an election must be made within 90 days before
41.28the member attains normal retirement age as defined in section
41.29paragraph (b), or having collected disability benefits for 60 months, whichever is later.
41.30No surviving spouse benefits are payable if the member dies during the period in which
41.31a normal total and permanent disability benefit is being paid. If a member receiving
41.32disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
41.33 Sec. 13. Minnesota Statutes 2010, section 353.657, subdivision 1, is amended to read:
42.1 Subdivision 1. Generally. (a) In the event that a member of the police and fire fund,
42.2other than a firefighter covered by section 353.6511, dies from any cause before retirement
42.3or before becoming disabled and receiving disability benefits, the association shall grant
42.4survivor benefits to a surviving spouse, as defined in section
42.5to a dependent child or children, as defined in section
42.6that if the death is not a line of duty death, the member must be vested under section
42.8 (b) Notwithstanding the definition of surviving spouse, a former spouse of the
42.9member, if any, is entitled to a portion of the monthly surviving spouse benefit if
42.10stipulated under the terms of a marriage dissolution decree filed with the association. If
42.11there is no surviving spouse or child or children, a former spouse may be entitled to
42.12a lump-sum refund payment under section
42.13marriage dissolution decree but not a monthly surviving spouse benefit despite the terms
42.14of a marriage dissolution decree filed with the association.
42.15 (c) The spouse and child or children are entitled to monthly benefits as provided in
42.16subdivisions 2 to 4.
42.17 Sec. 14. [353.667] CONSOLIDATION OF THE MINNEAPOLIS
42.18FIREFIGHTERS RELIEF ASSOCIATION.
42.19 Subdivision 1. Membership transfer. On the effective date of consolidation under
42.20section 19, the active, inactive, and retired members, including surviving spouses, of the
42.21Minneapolis Firefighters Relief Association are transferred to the public employees police
42.22and fire retirement plan, are no longer members of the Minneapolis Firefighters Relief
42.23Association, and are members of the public employees police and fire retirement plan.
42.24 Subd. 2. Service credit and benefit liability transfer. (a) Allowable service
42.25credit and base salary credit of the active members of the Minneapolis Firefighters
42.26Relief Association, as contained in the records of the Minneapolis Firefighters Relief
42.27Association through the day before the effective date of consolidation under section 19,
42.28are transferred to the public employees police and fire retirement plan and is credited as
42.29provided in section 353.01, subdivisions 10a and 16, paragraph (c), on the effective date
42.30of consolidation under section 19.
42.31(b) The liability for the payment of retirement annuities, service pensions, and
42.32retirement and surviving spouse benefits of the Minneapolis Firefighters Relief Association
42.33retired members, service pensioners, disabilitants, surviving spouses, and other retirement
42.34benefit recipients as specified in the records of the Minneapolis Firefighters Relief
43.1Association is transferred to the public employees police and fire retirement plan on the
43.2effective date of consolidation under section 19.
43.3 Subd. 3. Transfer of records. On the effective date of the consolidation under
43.4section 19, the chief administrative officer of the Minneapolis Firefighters Relief
43.5Association shall transfer all records and documents relating to the special fund of the
43.6Minneapolis Firefighters Relief Association to the executive director of the Public
43.7Employees Retirement Association. To the extent possible, original copies of all records
43.8and documents must be transferred.
43.9 Subd. 4. Transfer of assets; transfer of title to assets. (a) On the effective date
43.10of the consolidation under section 19, the chief administrative officer of the Minneapolis
43.11Firefighters Relief Association shall transfer the entire assets of the special fund of the
43.12Minneapolis Firefighters Relief Association other than the health insurance account to
43.13the public employees police and fire retirement fund at market value. Unless ineligible
43.14or inappropriate, the transfer must be in the form of investment securities and must
43.15include any accounts receivable that are determined by the State Board of Investment as
43.16being capable of being collected. An amount, in cash, must be transferred by the city of
43.17Minneapolis equal to the market value recognized by the relief association of investment
43.18securities that are determined by the executive director of the State Board of Investment
43.19not to be in compliance with the requirements and limitations set forth in sections
43.2011A.09, 11A.14, 11A.23, and 11A.24 or not to be appropriate for retention in light of
43.21the established investment objectives of the State Board of Investment or of accounts
43.22receivable determined as being incapable of being collected by the executive director of
43.23the State Board of Investment. Legal and beneficial title to assets that are determined
43.24noncompliant or inappropriate securities or that are uncollectible accounts receivable are
43.25transferred to the city of Minneapolis on the effective date of consolidation under section
43.2619. Any accounts payable on the effective date of consolidation under section 19 are
43.27an obligation of the public employees police and fire retirement fund and reduce the
43.28asset value for purposes of subdivision 6. The transferred assets must be deposited in the
43.29public employees police and fire retirement fund. The amount of the transferred health
43.30insurance account must remain deposited in the financial institution retained by the former
43.31Minneapolis Firefighters Relief Association on May 1, 2011, and that financial institution
43.32must act as the custodian of the account. The financial institution shall perform all trustee
43.33and fiduciary duties with respect to the account as a condition to the retention of the
43.34account. The executive director of the Minneapolis Firefighters Relief Association, prior to
43.35the effective date of consolidation, shall estimate three calendar years of the administrative
43.36expenses related to the operation of the account and shall prepay those expenses from the
44.1account to the financial institution before the effective date of consolidation. After the
44.2three-year prepayment period, the beneficiaries of the account are responsible for the
44.3payment of the administrative expenses related to the operation of the account.
44.4(b) Upon the transfer of assets to the State Board of Investment under paragraph
44.5(a), legal title to those transferred assets vests with the State Board of Investment on
44.6behalf of the public employees police and fire retirement plan, and beneficial title to
44.7the transferred assets remains with the former membership of the former Minneapolis
44.8Firefighters Relief Association.
44.9(c) The public employees police and fire retirement plan and fund is the successor in
44.10interest to all claims for or against the Minneapolis Firefighters Relief Association. The
44.11public employees police and fire retirement plan and fund is not liable for any claim
44.12against the Minneapolis Firefighters Relief Association, its governing board, or its
44.13administrative staff acting in a fiduciary capacity, under chapter 356A or common law,
44.14which is founded upon a claim of a breach of fiduciary duty if the act or acts constituting
44.15the claimed breach were not undertaken in good faith. The public employees police and
44.16fire retirement plan may assert any applicable defense to any claim in any judicial or
44.17administrative proceeding that the Minneapolis Firefighters Relief Association, its board,
44.18or its administrative staff would otherwise have been entitled to assert, and the public
44.19employees police and fire retirement plan may assert any applicable defense that it has in
44.20its capacity as a statewide agency.
44.21(d) The Public Employees Retirement Association shall indemnify any former
44.22fiduciary of the Minneapolis Firefighters Relief Association consistent with the
44.23provisions of section 356A.11. The indemnification may be effected by the purchase
44.24by the Public Employees Retirement Association of reasonable fiduciary liability tail
44.25insurance for the officers and directors of the former Minneapolis Firefighters Relief
44.26Association. Consistent with section 69.80, the relief association may purchase reasonable
44.27fiduciary liability tail insurance for its officers and directors prior to the effective date of
44.28consolidation under section 19.
44.29(e) Office equipment and other physical assets of the special fund of the Minneapolis
44.30Firefighters Relief Association that are not needed by the Public Employees Retirement
44.31Association may be sold by the special fund of the Minneapolis Firefighters Relief
44.32Association to the general fund of the Minneapolis Firefighters Relief Association or to
44.33any successor fraternal organization of the Minneapolis Firefighters Relief Association at
44.34fair market value, with the proceeds of that sale deposited in the public employees police
44.35and fire retirement fund and included in the transferred asset value under subdivision 6.
45.1 Subd. 5. Benefits. The annuities, service pensions, and other retirement benefits of
45.2or attributable to retired, disabled, deferred, surviving spouse, or inactive Minneapolis
45.3Firefighters Relief Association members who had that status as of the day before the
45.4effective date of consolidation under section 19 continue after consolidation in the same
45.5amount and under the same terms as provided in chapter 423C except that the unit value is
45.6governed by section 353.01, subdivision 10a, and the postretirement adjustments after
45.7December 31, 2015, must be calculated solely under section 353.6511, subdivision 8.
45.8 Subd. 6. Additional employer contributions. (a) As of the effective date of the
45.9consolidation under section 19, the approved actuary retained by the Public Employees
45.10Retirement Association shall calculate the present value of future benefits of the former
45.11Minneapolis Firefighters Relief Association, and, after subtracting the market value of
45.12the transferred assets of the former Minneapolis Firefighters Relief Association and the
45.13present value of the employer contribution under section 353.65, subdivision 3, paragraph
45.14(b), shall calculate the remainder present value of future benefits amount. Annually,
45.15following the effective date of consolidation under section 19, the city of Minneapolis
45.16shall pay an amount sufficient to amortize on a level annual dollar basis the remainder
45.17present value of future benefits amount by December 31, 2031. The amortization payment
45.18is payable annually on July 15, beginning in the year following the effective date of the
45.19consolidation. The 2012 payment should be estimated based on the provisions of this
45.20legislation. The July 2013 payment shall be adjusted based on the final actuarial valuation.
45.21(b) If the postretirement or preretirement interest rate actuarial assumption applicable
45.22to the public employees police and fire retirement plan under section 356.215, subdivision
45.238, is modified from the rates specified in section 356.215, subdivision 8, the remainder
45.24present value of future benefits amount calculation under paragraph (a), updated for
45.25the passage of time, must be revised and the amortization contribution by the city of
45.26Minneapolis for the balance of the amortization period must be redetermined and certified
45.27to the city of Minneapolis.
45.28 Subd. 7. Health and dental insurance program deductions. The executive
45.29director shall withhold any health insurance or dental insurance premiums designated
45.30by the annuitant or benefit recipient and shall transfer them to the city of Minneapolis.
45.31The Public Employees Retirement Association may charge a necessary and reasonable
45.32monthly administrative fee to the city of Minneapolis for this function and bill it in
45.33addition to the employer contribution under section 353.65, subdivision 3, paragraph (b).
45.34Notwithstanding any provision of chapter 13 to the contrary, the executive director shall
45.35provide the city of Minneapolis with the current addresses of former members of the
45.36Minneapolis Firefighters Relief Association.
46.1 Subd. 8. Cooperation with fraternal organization. (a) This subdivision applies if
46.2the membership of the former Minneapolis Firefighters Relief Association approves the
46.3continuation of the relief association as a fraternal organization under section 16.
46.4(b) The executive director shall cooperate with the Minneapolis firefighters fraternal
46.5association to insure adequate communication with the former members of the former
46.6Minneapolis Firefighters Relief Association consistent with Public Employees Retirement
46.7Association policy.
46.8 Subd. 9. Fire insurance surcharge. Notwithstanding any provision of section
46.9297I.10 to the contrary, the proceeds of the first class city fire insurance premium tax
46.10surcharge with respect to Minneapolis must be paid to the city of Minneapolis to defray a
46.11portion of the employer retirement cost under section 353.65, subdivision 3, with respect
46.12to Minneapolis firefighters.
46.13 Sec. 15. Minnesota Statutes 2010, section 423A.02, subdivision 1b, is amended to read:
46.14 Subd. 1b. Additional amortization state aid. (a) Annually, on October 1, the
46.15commissioner of revenue shall allocate the additional amortization state aid transferred
46.16under section
46.17 (1) all police or salaried firefighters relief associations governed by and in full
46.18compliance with the requirements of section
46.19liability in the actuarial valuation prepared under sections
46.20preceding December 31;
46.21 (2) all local police or salaried firefighter consolidation accounts governed by chapter
46.22353A that are certified by the executive director of the public employees retirement
46.23association as having for the current fiscal year an additional municipal contribution
46.24amount under section
46.25section
46.2624, 1993, and that have implemented section
46.27of the consolidation preceded June 1, 1995; and
46.28 (3) the municipalities that are required to make an additional municipal contribution
46.29under section
46.30required additional contribution.
46.31 (b) The commissioner shall allocate the state aid on the basis of the proportional share
46.32of the relief association or consolidation account of the total unfunded actuarial accrued
46.33liability of all recipient relief associations and consolidation accounts as of December 31,
46.341993, for relief associations, and as of June 30, 1994, for consolidation accounts.
47.1 (c) Beginning October 1, 2000, and annually thereafter, the commissioner shall
47.2allocate the state aid, including any state aid in excess of the limitation in subdivision
47.34, on the following basis:
47.4 (1) 64.5 percent to the municipalities to which section
47.58
47.6accordance with paragraph (b) and subject to the limitation in subdivision 4;
47.7 (2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued
47.8liability in the actuarial valuation prepared under sections
47.9preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
47.10Fire Department Relief Association; and
47.11 (3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability
47.12in the actuarial valuation prepared under sections
47.13December 31 for the Virginia Fire Department Relief Association.
47.14 If there is no unfunded actuarial accrued liability in both the Minneapolis Police
47.15Relief Association and the Minneapolis Fire Department Relief Association as disclosed
47.16in the most recent actuarial valuations for the relief associations prepared under sections
47.18follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
47.19Teachers Retirement Fund Association, and 30 percent as additional funding to support
47.20minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded
47.21actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed
47.22in the most recent actuarial valuation for the relief association prepared under sections
47.24follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
47.25Teachers Retirement Fund Association, and 30 percent as additional funding to support
47.26minimum fire state aid for volunteer firefighters relief associations. Upon the final
47.27payment to municipalities required by section
47.28or
47.29percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund
47.30Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued
47.31liability in the actuarial valuation proposed under sections
47.32preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
47.33Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs
47.34associated with the police and firefighters pensions, and 40 percent as additional funding to
47.35support minimum fire state aid for volunteer firefighters relief associations. The allocation
47.36must be made by the commissioner at the same time and under the same procedures
48.1as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund
48.2Association, annually, beginning on July 1, 2005, if the applicable teacher's association
48.3five-year average time-weighted rate of investment return does not equal or exceed the
48.4performance of a composite portfolio assumed passively managed (indexed) invested ten
48.5percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent
48.6in domestic stock calculated using the formula under section
48.7allocation to that retirement fund under this section ceases until the five-year annual rate
48.8of investment return equals or exceeds the performance of that composite portfolio.
48.9 (d) The amounts required under this subdivision are the amounts annually
48.10appropriated to the commissioner of revenue under section
48.11paragraph (e).
48.12 Sec. 16. MINNEAPOLIS FIREFIGHTERS RELIEF ASSOCIATION; SPECIAL
48.13ACTUARIAL VALUATION PENDING CONSOLIDATION.
48.14(a) On or before August 1, 2011, the approved actuarial consulting firm retained by
48.15the Public Employees Retirement Association under Minnesota Statutes, section 356.214,
48.16shall prepare an alternative actuarial valuation of the Minneapolis Firefighters Relief
48.17Association under Minnesota Statutes, section 356.215, and the most recent standards
48.18for actuarial work adopted by the Legislative Commission on Pensions and Retirement
48.19as of August 11, 2010, using the applicable actuarial assumptions and the applicable
48.20amortization target date of the public employee police and fire retirement plan.
48.21(b) The officers of the Minneapolis Firefighters Relief Association shall supply the
48.22approved actuary retained by the Public Employees Retirement Association with the
48.23financial and demographic data necessary to perform the alternative actuarial valuation.
48.24(c) The alternative actuarial valuation of the Minneapolis Firefighters Relief
48.25Association must be filed with the mayor of the city of Minneapolis, with the Minneapolis
48.26city coordinator, with the executive director of the Minneapolis Firefighters Relief
48.27Association, with the executive director of the Public Employees Retirement Association,
48.28with the executive director of the Legislative Commission on Pensions and Retirement,
48.29and with the Legislative Reference Library.
48.30(d) The expense of preparing the alternative actuarial valuation must be paid by the
48.31city of Minneapolis within 30 days of its certification to the finance director of the city of
48.32Minneapolis by the executive director of the Public Employees Retirement Association.
48.33 Sec. 17. TERMINATION OF THE RELIEF ASSOCIATION.
49.1(a) On the effective date of the consolidation under section 19, the special fund of
49.2the Minneapolis Firefighters Relief Association ceases to exist.
49.3(b) The Minneapolis Firefighters Relief Association shall provide for the
49.4continuation of the relief association as a fraternal organization other than as a pension or
49.5retirement organization and shall approve the changes in its articles of incorporation and
49.6bylaws necessary to effect that redesignation and reorganization of the organization.
49.7(c) If the Minneapolis Firefighters Relief Association continues the relief association
49.8as a fraternal organization under paragraph (b), the transfer of relief association assets
49.9under Minnesota Statutes, section 353.667, subdivision 4, must not include assets of the
49.10Minneapolis Firefighters Relief Association general fund, which must be retained by
49.11the fraternal organization for organization purposes other than for pension or retirement
49.12benefit payment purposes.
49.13(d) As of the effective date of the consolidation under section 19, the employment
49.14of the employees of the Minneapolis Firefighters Relief Association terminates. The
49.15employees of the Minneapolis Firefighters Relief Association who were employed by the
49.16relief association before May 1, 2011, have an employment preference with the Public
49.17Employees Retirement Association equal to that under the veterans preference act.
49.18(e) If, on the day following approval of this article by the Minneapolis city council,
49.19the consolidation has been approved by all applicable entities under section 19, the officers
49.20of the Minneapolis Firefighters Relief Association shall certify to the city of Minneapolis
49.21and to the Hennepin County auditor the financial requirements of the relief association and
49.22the minimum municipal obligation under Minnesota Statutes, section 69.77, subdivision 4,
49.23revised consistent with the actuarial valuation results under Minnesota Statutes, section
49.24423A.02, subdivision 1b.
49.25(f) After the effective date of consolidation under section 19, the city of Minneapolis
49.26shall continue to administer the health and dental insurance programs as constituted on
49.27May 1, 2011, for the former members of the former Minneapolis Firefighters Relief
49.28Association, transferring premiums as required.
49.29 Sec. 18. REPEALER.
49.30Minnesota Statutes 2010, sections 423A.021; 423C.01; 423C.02; 423C.03; 423C.04;
49.31423C.05; 423C.06; 423C.07; 423C.08; 423C.09; 423C.10; 423C.11; 423C.12; 423C.13;
49.32423C.14; 423C.15; and 423C.16, are repealed.
49.33 Sec. 19. EFFECTIVE DATE; LOCAL APPROVAL.
50.1(a) Sections 1 to 16, 17, paragraphs (a) to (d), and 18 are effective December 30,
50.22011, if the board of trustees of the Minneapolis Firefighters Relief Association approves
50.3the article and if a majority of the entire membership of the Minneapolis Firefighters Relief
50.4Association approves the article, if the chief administrative officer of the Minneapolis
50.5Firefighters Relief Association certifies those approvals to the mayor of the city of
50.6Minneapolis and the president of the Minneapolis city council before September 15,
50.72011, if the board of trustees of the Public Employees Retirement Association approves
50.8the article, if the executive director of the Public Employees Retirement Association
50.9certifies that approval to the mayor of the city of Minneapolis and the president of the
50.10Minneapolis city council, if the governing body of the city of Minneapolis and the chief
50.11clerical officer of Minneapolis timely complete their compliance with Minnesota Statutes,
50.12section 645.021, subdivisions 2 and 3, on or before October 15, 2011, or on the date set by
50.13the board of trustees of the Public Employees Retirement Association, in consultation with
50.14the mayor of the city of Minneapolis and the executive director of the relief association, at
50.15the first regular meeting of the Public Employees Retirement Association board of trustees
50.16occurring after Minneapolis city council approval if the governing body of the city of
50.17Minneapolis and the chief clerical officer of Minneapolis complete their compliance with
50.18Minnesota Statutes, section 645.021, subdivisions 2 and 3, after October 15, 2011, and
50.19if a comparable consolidation relating to the Minneapolis Police Relief Association is
50.20approved by all applicable entities under article 7.
50.21(b) If the approvals occur under paragraph (a) in a timely fashion, section 17,
50.22paragraph (e), is effective on the day following approval by the Minneapolis city council.
50.26 Section 1. Minnesota Statutes 2010, section 353.01, is amended by adding a
50.27subdivision to read:
50.28 Subd. 10b. Unit value; Minneapolis police. "Unit value," for a member
50.29of the public employees police and fire retirement plan who was a member of the
50.30former Minneapolis Police Relief Association on the day prior to the effective date of
50.31consolidation under section 19, is $86.71 for calendar year 2011, $104.651 for calendar
50.32year 2012, $109.011 for calendar year 2013, $114.825 for calendar year 2014, $124.031
50.33for calendar year 2015, and for calendar years after calendar year 2015, the prior year's
50.34unit value plus an increase equal to the adjustment percentage determined under section
50.35356.415, subdivision 1c, effective for the January 1 of the calendar year.
51.1 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 16, is amended to read:
51.2 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
51.3means:
51.4 (1) service during years of actual membership in the course of which employee
51.5deductions were withheld from salary and contributions were made at the applicable rates
51.6under section
51.7(2) periods of service covered by payments in lieu of salary deductions under
51.8sections
51.9 (3) service in years during which the public employee was not a member but for
51.10which the member later elected, while a member, to obtain credit by making payments to
51.11the fund as permitted by any law then in effect;
51.12 (4) a period of authorized leave of absence with pay from which deductions for
51.13employee contributions are made, deposited, and credited to the fund;
51.14 (5) a period of authorized personal, parental, or medical leave of absence without
51.15pay, including a leave of absence covered under the federal Family Medical Leave Act,
51.16that does not exceed one year, and for which a member obtained service credit for each
51.17month in the leave period by payment under section
51.18salary deductions. An employee must return to public service and render a minimum of
51.19three months of allowable service in order to be eligible to make payment under section
51.21employee must be granted allowable service credit for the purchased period;
51.22 (6) a periodic, repetitive leave that is offered to all employees of a governmental
51.23subdivision. The leave program may not exceed 208 hours per annual normal work cycle
51.24as certified to the association by the employer. A participating member obtains service
51.25credit by making employee contributions in an amount or amounts based on the member's
51.26average salary, excluding overtime pay, that would have been paid if the leave had not been
51.27taken. The employer shall pay the employer and additional employer contributions on
51.28behalf of the participating member. The employee and the employer are responsible to pay
51.29interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
51.30from the end of the normal cycle until full payment is made. An employer shall also make
51.31the employer and additional employer contributions, plus 8.5 percent interest, compounded
51.32annually, on behalf of an employee who makes employee contributions but terminates
51.33public service. The employee contributions must be made within one year after the end of
51.34the annual normal working cycle or within 30 days after termination of public service,
51.35whichever is sooner. The executive director shall prescribe the manner and forms to be
52.1used by a governmental subdivision in administering a periodic, repetitive leave. Upon
52.2payment, the member must be granted allowable service credit for the purchased period;
52.3 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
52.4months allowable service per authorized temporary or seasonal layoff in one calendar year.
52.5An employee who has received the maximum service credit allowed for an authorized
52.6temporary or seasonal layoff must return to public service and must obtain a minimum of
52.7three months of allowable service subsequent to the layoff in order to receive allowable
52.8service for a subsequent authorized temporary or seasonal layoff;
52.9 (8) a period during which a member is absent from employment by a governmental
52.10subdivision by reason of service in the uniformed services, as defined in United States
52.11Code, title 38, section 4303(13), if the member returns to public service with the same
52.12governmental subdivision upon discharge from service in the uniformed service within the
52.13time frames required under United States Code, title 38, section 4312(e), provided that
52.14the member did not separate from uniformed service with a dishonorable or bad conduct
52.15discharge or under other than honorable conditions. The service must be credited if the
52.16member pays into the fund equivalent employee contributions based upon the contribution
52.17rate or rates in effect at the time that the uniformed service was performed multiplied by
52.18the full and fractional years being purchased and applied to the annual salary rate. The
52.19annual salary rate is the average annual salary, excluding overtime pay, during the purchase
52.20period that the member would have received if the member had continued to be employed
52.21in covered employment rather than to provide uniformed service, or, if the determination
52.22of that rate is not reasonably certain, the annual salary rate is the member's average salary
52.23rate, excluding overtime pay, during the 12-month period of covered employment rendered
52.24immediately preceding the period of the uniformed service. Payment of the member
52.25equivalent contributions must be made during a period that begins with the date on which
52.26the individual returns to public employment and that is three times the length of the
52.27military leave period, or within five years of the date of discharge from the military service,
52.28whichever is less. If the determined payment period is less than one year, the contributions
52.29required under this clause to receive service credit may be made within one year of the
52.30discharge date. Payment may not be accepted following 30 days after termination of
52.31public service under subdivision 11a. If the member equivalent contributions provided for
52.32in this clause are not paid in full, the member's allowable service credit must be prorated
52.33by multiplying the full and fractional number of years of uniformed service eligible for
52.34purchase by the ratio obtained by dividing the total member contributions received by the
52.35total member contributions otherwise required under this clause. The equivalent employer
52.36contribution, and, if applicable, the equivalent additional employer contribution must be
53.1paid by the governmental subdivision employing the member if the member makes the
53.2equivalent employee contributions. The employer payments must be made from funds
53.3available to the employing unit, using the employer and additional employer contribution
53.4rate or rates in effect at the time that the uniformed service was performed, applied to the
53.5same annual salary rate or rates used to compute the equivalent member contribution. The
53.6governmental subdivision involved may appropriate money for those payments. The
53.7amount of service credit obtainable under this section may not exceed five years unless a
53.8longer purchase period is required under United States Code, title 38, section 4312. The
53.9employing unit shall pay interest on all equivalent member and employer contribution
53.10amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
53.11compounded annually from the end of each fiscal year of the leave or the break in service
53.12to the end of the month in which the payment is received. Upon payment, the employee
53.13must be granted allowable service credit for the purchased period; or
53.14(9) a period specified under subdivision 40.
53.15 (b) For calculating benefits under sections
53.16state officers and employees displaced by the Community Corrections Act, chapter 401,
53.17and transferred into county service under section
53.18combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
53.19section
53.20 (c) For a public employee who has prior service covered by a local police or
53.21firefighters relief association that has consolidated with the Public Employees Retirement
53.22Association under chapter 353A or to which section
53.23the type of benefit coverage provided by the public employees police and fire fund either
53.24under section
53.254
53.26firefighters relief association as of the effective date of the consolidation based on law
53.27and on bylaw provisions governing the relief association on the date of the initiation
53.28of the consolidation procedure.
53.29 (d) No member may receive more than 12 months of allowable service credit in a
53.30year either for vesting purposes or for benefit calculation purposes. For an active member
53.31who was an active member of the former Minneapolis Police Relief Association on the
53.32day prior to the effective date of consolidation under section 19, "allowable service" is the
53.33period of service credited by the Minneapolis Police Relief Association as reflected in
53.34the transferred records of the association up to the effective date of consolidation under
53.35section 19 and the period of service credited under paragraph (a), clause (1), after the
53.36effective date of consolidation under section 19.
54.1 (e) MS 2002 [Expired]
54.2 Sec. 3. Minnesota Statutes 2010, section 353.03, is amended by adding a subdivision
54.3to read:
54.4 Subd. 3b. Additional duties. The executive director shall deduct from the annuity
54.5or benefit periodically the amount of any dues of any fraternal organization continuing or
54.6established after the effective date of consolidation under section 19 for former members
54.7of the former Minneapolis Police Relief Association.
54.8 Sec. 4. Minnesota Statutes 2010, section 353.65, subdivision 1, is amended to read:
54.9 Subdivision 1. Fund established. (a) The public employees police and fire fund
54.10is established for police officers and firefighters who meet the eligibility criteria under
54.11section
54.12(b) Employee contributions other than those made under subdivision 2, paragraph
54.13(b), employer contributions under subdivision 3 and under section 353.668, subdivision 6,
54.14other than the excess contribution established by section
54.15(2), clauses (b) and (c), and (3), and other amounts authorized by law, including all
54.16employee and employer contributions of members transferred, must be deposited in the
54.17public employees police and fire fund.
54.18 Sec. 5. Minnesota Statutes 2010, section 353.65, subdivision 2, is amended to read:
54.19 Subd. 2. Employee contribution. (a) For members other than members who were
54.20active members of the former Minneapolis Police Relief Association on the day prior to
54.21the effective date of consolidation under section 19, the employee contribution is 9.4
54.22percent of the salary of the member in calendar year 2010 and is 9.6 percent of the salary
54.23of the member in each calendar year after 2010.
54.24(b) For members who were active members of the former Minneapolis Police Relief
54.25Association on the day prior to the effective date of consolidation under section 19, the
54.26employee contribution is an amount equal to eight percent of the monthly unit value under
54.27section 353.01, subdivision 10b, multiplied by 80 and expressed as a biweekly amount for
54.28each member. The employee contribution made by a member with at least 25 years of
54.29service credit as an active member of the former Minneapolis Police Relief Association
54.30must be deposited in the postretirement health care savings account established under
54.31352.98.
54.32(c) Contributions under this section must be made by deduction from salary in
54.33the manner provided in subdivision 4. Where any portion of a member's salary is paid
55.1from other than public funds, the member's employee contribution is based on the total
55.2salary received from all sources.
55.3 Sec. 6. Minnesota Statutes 2010, section 353.65, subdivision 3, is amended to read:
55.4 Subd. 3. Employer contribution. (a) With respect to members other than members
55.5who were active members of the former Minneapolis Police Relief Association on the day
55.6prior to the effective date of consolidation under section 19, the employer contribution is
55.714.1 percent of the salary of the member in calendar year 2010 and is 14.4 percent of the
55.8salary of the member in each calendar year after 2010.
55.9(b) With respect to members who were active members of the former Minneapolis
55.10Police Relief Association on the day prior to the effective date of consolidation under
55.11section 19, the employer contribution is an amount equal to the amount of the member
55.12contributions under subdivision 2, paragraph (b).
55.13(c) Contributions under this subdivision must be made from funds available to the
55.14employing subdivision by the means and in the manner provided in section
55.15 Sec. 7. Minnesota Statutes 2010, section 353.651, subdivision 1, is amended to read:
55.16 Subdivision 1. Age and allowable service requirements. Upon separation from
55.17public service, any police officer or firefighter member, other than a police officer covered
55.18by section 353.6512, who has attained the age of at least 55 years and who is vested
55.19under section
55.20known as the "normal" retirement annuity.
55.21 Sec. 8. [353.6512] ALTERNATIVE RETIREMENT BENEFIT COVERAGE IN
55.22CERTAIN INSTANCES.
55.23 Subdivision 1. Applicability. The alternative benefit coverage under this section
55.24applies only to an active member of the public employees police and fire retirement plan
55.25who was an active member of the former Minneapolis Police Relief Association on the
55.26day prior to the consolidation effective date under section 19 and who retires after the
55.27consolidation effective date under section 19.
55.28 Subd. 2. Retirement annuity. (a) A member described in subdivision 1, if the
55.29member meets the eligibility requirements of paragraph (b), is only entitled to a retirement
55.30annuity under this subdivision.
55.31(b) The member, upon application, if the person is at least age 50 and has credit for
55.32at least 20 years of allowable service, is entitled to a normal retirement annuity. The
56.1normal retirement annuity is the following amount based on the service credit of the
56.2retiring member as a Minneapolis police officer:
| 56.3 |
years of service |
retirement annuity amount |
|||
| 56.4 |
20 |
35 units |
|||
| 56.5 |
21 |
36.6 units |
|||
| 56.6 |
22 |
38.2 units |
|||
| 56.7 |
23 |
39.8 units |
|||
| 56.8 |
24 |
41.4 units |
|||
| 56.9 |
25 or more |
43.0 units |
|||
56.11disabled under section 353.01, subdivision 41 or 46, and has not yet attained the age of 50
56.12years, is entitled to a disability benefit equal to 34 units.
56.13 Subd. 4. Surviving spouse benefit. A surviving spouse under section 353.01,
56.14subdivision 20, of a deceased member described in subdivision 1 is entitled to a surviving
56.15spouse benefit equal to 23 units.
56.16 Subd. 5. Surviving dependent child benefit. A surviving dependent child under
56.17section 353.01, subdivision 15a, of a deceased member described in subdivision 1 is
56.18entitled to a surviving child benefit equal to eight units.
56.19 Subd. 6. Surviving family benefit maximum. The surviving spouse and surviving
56.20dependent child under subdivisions 4 and 5 are entitled to a combined family benefit under
56.21subdivisions 4 and 5 of 41 units.
56.22 Subd. 7. Postretirement adjustments. Retirement annuities, service pensions,
56.23disability benefits, and survivor benefits after December 31, 2015, are eligible for
56.24postretirement adjustments under section 356.415, subdivision 1c. The unit value for
56.25the calculation of a retirement annuity first payable after December 31, 2015, is the
56.26calendar year 2015 unit value, plus any postretirement adjustment percentage amount
56.27under section 356.415, subdivision 1c, payable after December 31, 2015, and before the
56.28date of retirement.
56.29 Subd. 8. Savings clause; dispute resolution. In the event of any dispute by or on
56.30behalf of any former member of the consolidating relief association after the effective date
56.31of consolidation over the amount of a benefit to which the person may be entitled, the
56.32proper interpretation of a provision of this article, or the conformity of the provisions of
56.33this article to the provisions of the benefit plan of the consolidating relief association in
56.34effective immediately before the date of the consolidation, the dispute shall be submitted
56.35in writing to the Legislative Commission on Pensions and Retirement by the person
56.36who is a party to the dispute, by the fraternal organization related to the former relief
56.37association, or by the executive director of the Public Employees Retirement Association.
57.1The Legislative Commission on Pensions and Retirement shall review the dispute as
57.2part of its deliberations on proposed or pending retirement legislation and shall make its
57.3recommendation on the resolution of the dispute, if any, to the appropriate committees of
57.4the senate and house of representatives with jurisdiction over public employee pension
57.5matters in the form of the necessary legislation amending the provisions of this article,
57.6which proposed legislation must include retroactivity of any increase in a benefit amount
57.7to the date on which the benefit subject to dispute accrued or would have accrued.
57.8 Sec. 9. Minnesota Statutes 2010, section 353.656, subdivision 1, is amended to read:
57.9 Subdivision 1. Duty disability; computation of benefits. (a) A member of the
57.10police and fire plan, other than a police officer covered by section 353.6512, who is
57.11determined to qualify for duty disability as defined in section
57.12shall receive disability benefits during the period of such disability in an amount equal to
57.1360 percent of the average salary as defined in section
57.14additional percentage specified under section
57.15salary for each year of service in excess of 20 years.
57.16 (b) To be eligible for a benefit under paragraph (a), the member must have:
57.17 (1) not met the requirements for a retirement annuity under section
57.18subdivision 1; or
57.19 (2) met the requirements under that subdivision, but does not have at least 20 years
57.20of allowable service credit.
57.21 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
57.22period of 60 months from the disability benefit accrual date and at the end of that period
57.23is subject to provisions of subdivision 5a.
57.24 (d) If the disability under this subdivision occurs before the member has at least five
57.25years of allowable service credit in the police and fire plan, the disability benefit must be
57.26computed on the average salary from which deductions were made for contribution to
57.27the police and fire fund.
57.28 Sec. 10. Minnesota Statutes 2010, section 353.656, subdivision 1a, is amended to read:
57.29 Subd. 1a. Total and permanent duty disability; computation of benefits. (a) A
57.30member of the police and fire plan, other than a police officer covered by section 353.6512,
57.31whose disabling condition is determined to be a duty disability that is also a permanent
57.32and total disability as defined in section
57.33life, disability benefits in an amount equal to 60 percent of the average salary as defined in
58.1section
58.2subdivision 6
58.3 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
58.4under section
58.5director receives a written statement from the association's medical advisor that no
58.6improvement can be expected in the member's disabling condition that was the basis for
58.7payment of the benefit under paragraph (a). A member receiving a disability benefit
58.8under this subdivision who is found to no longer be permanently and totally disabled as
58.9defined under section
58.10receipt of a duty disability under section
58.111 upon written notice from the association's medical advisor that the person is no longer
58.12considered permanently and totally disabled.
58.13 (c) If a member approved for disability benefits under this subdivision dies before
58.14attaining normal retirement age as defined in section
58.15(b), or within 60 months of the effective date of the disability, whichever is later,
58.16the surviving spouse is entitled to receive a survivor benefit under section
58.17subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
58.18condition for which disability benefits were approved, or section
58.20for which benefits were approved under this subdivision.
58.21 (d) If the election of an actuarial equivalent optional annuity is not made at the time
58.22the permanent and total disability benefit accrues, an election must be made within 90
58.23days before the member attains normal retirement age as defined under section
58.24subdivision 37, paragraph (b), or having collected total and permanent disability benefits
58.25for 60 months, whichever is later. If a member receiving disability benefits who has
58.26dependent children dies, subdivision 6a, paragraph (c), applies.
58.27 Sec. 11. Minnesota Statutes 2010, section 353.656, subdivision 3, is amended to read:
58.28 Subd. 3. Regular disability benefit. (a) A member of the police and fire plan, other
58.29than a police officer covered by section 353.6512, who qualifies for a regular disability
58.30benefit as defined in section
58.31benefit, after filing a valid application, in an amount equal to 45 percent of the average
58.32salary as defined in section
58.33 (b) To be eligible for a benefit under paragraph (a), the member must have at least
58.34one year of allowable service credit and have:
59.1 (1) not met the requirements for a retirement annuity under section
59.2subdivision 1, or
59.3 (2) met the requirements under that subdivision, but does not have at least 15 years
59.4of allowable service credit.
59.5 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
59.6period of 60 months from the disability benefit accrual date and, at the end of that period,
59.7is subject to provisions of subdivision 5a.
59.8 (d) For a member who is employed as a full-time firefighter by the Department of
59.9Military Affairs of the state of Minnesota, allowable service as a full-time state Military
59.10Affairs Department firefighter credited by the Minnesota State Retirement System may be
59.11used in meeting the minimum allowable service requirement of this subdivision.
59.12 Sec. 12. Minnesota Statutes 2010, section 353.656, subdivision 3a, is amended to read:
59.13 Subd. 3a. Total and permanent regular disability; computation of benefits.
59.14 (a) A member of the police and fire plan, other than a police officer covered by section
59.15353.6512, whose disabling condition is determined to be a regular disability under section
59.18equal to 45 percent of the average salary as defined in section
59.19plus an additional percent specified in section
59.20salary for each year of service in excess of 15 years.
59.21 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
59.22under section
59.23director receives a written statement from the association's medical advisor that no
59.24improvement can be expected in the member's disabling condition that was the basis for
59.25payment of the benefit under paragraph (a). A member receiving a disability benefit under
59.26this subdivision who is found to no longer be permanently and totally disabled as defined
59.27under section
59.28of a regular disability under section
59.29upon written notice from the association's medical advisor that the person is no longer
59.30considered permanently and totally disabled.
59.31 (c) A member approved for disability benefits under this subdivision may elect
59.32to receive a normal disability benefit or an actuarial equivalent optional annuity. If the
59.33election of an actuarial equivalent optional annuity is not made at the time the total and
59.34permanent disability benefit accrues, an election must be made within 90 days before
59.35the member attains normal retirement age as defined in section
60.1paragraph (b), or having collected disability benefits for 60 months, whichever is later.
60.2No surviving spouse benefits are payable if the member dies during the period in which
60.3a normal total and permanent disability benefit is being paid. If a member receiving
60.4disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
60.5 Sec. 13. Minnesota Statutes 2010, section 353.657, subdivision 1, is amended to read:
60.6 Subdivision 1. Generally. (a) In the event that a member of the police and fire
60.7fund, other than a police officer covered by section 353.6512, dies from any cause
60.8before retirement or before becoming disabled and receiving disability benefits, the
60.9association shall grant survivor benefits to a surviving spouse, as defined in section
60.11subdivision 15
60.12vested under section
60.13 (b) Notwithstanding the definition of surviving spouse, a former spouse of the
60.14member, if any, is entitled to a portion of the monthly surviving spouse benefit if
60.15stipulated under the terms of a marriage dissolution decree filed with the association. If
60.16there is no surviving spouse or child or children, a former spouse may be entitled to
60.17a lump-sum refund payment under section
60.18marriage dissolution decree but not a monthly surviving spouse benefit despite the terms
60.19of a marriage dissolution decree filed with the association.
60.20 (c) The spouse and child or children are entitled to monthly benefits as provided in
60.21subdivisions 2 to 4.
60.22 Sec. 14. [353.668] CONSOLIDATION OF THE MINNEAPOLIS POLICE
60.23RELIEF ASSOCIATION.
60.24 Subdivision 1. Membership transfer. On the effective date of consolidation under
60.25section 19, the active, inactive, and retired members, including surviving spouses, of the
60.26Minneapolis Police Relief Association are transferred to the public employees police and
60.27fire retirement plan, are no longer members of the Minneapolis Police Relief Association,
60.28and are members of the public employees police and fire retirement plan.
60.29 Subd. 2. Service credit and benefit liability transfer. (a) Allowable service credit
60.30and base salary credit of the active members of the Minneapolis Police Relief Association,
60.31as contained in the records of the Minneapolis Police Relief Association through the
60.32day before the effective date of consolidation under section 19, are transferred to the
60.33public employees police and fire retirement plan and is credited as provided in section
61.1353.01, subdivisions 10b and 16, paragraph (c), on the effective date of consolidation
61.2under section 19.
61.3(b) The liability for the payment of retirement annuities, service pensions, and
61.4retirement and surviving spouse benefits of the Minneapolis Police Relief Association
61.5retired members, service pensioners, disabilitants, surviving spouses, and other retirement
61.6benefit recipients as specified in the records of the Minneapolis Police Relief Association
61.7is transferred to the public employees police and fire retirement plan on the effective date
61.8of consolidation under section 19.
61.9 Subd. 3. Transfer of records. On the effective date of the consolidation under
61.10section 19, the chief administrative officer of the Minneapolis Police Relief Association
61.11shall transfer all records and documents relating to the special fund of the Minneapolis
61.12Police Relief Association to the executive director of the Public Employees Retirement
61.13Association. To the extent possible, original copies of all records and documents must
61.14be transferred.
61.15 Subd. 4. Transfer of assets; transfer of title to assets. (a) On the effective date
61.16of the consolidation under section 19, the chief administrative officer of the Minneapolis
61.17Police Relief Association shall transfer the entire assets of the special fund of the
61.18Minneapolis Police Relief Association other than the health insurance account to the
61.19public employees police and fire retirement fund at market value. Unless ineligible
61.20or inappropriate, the transfer must be in the form of investment securities and must
61.21include any accounts receivable that are determined by the State Board of Investment as
61.22being capable of being collected. An amount, in cash, must be transferred by the city of
61.23Minneapolis equal to the market value recognized by the relief association of investment
61.24securities that are determined by the executive director of the State Board of Investment
61.25not to be in compliance with the requirements and limitations set forth in sections
61.2611A.09, 11A.14, 11A.23, and 11A.24 or not to be appropriate for retention in light of
61.27the established investment objectives of the State Board of Investment or of accounts
61.28receivable determined by the executive director of the State Board of Investment as being
61.29incapable of being collected. Legal and beneficial title to assets that are determined
61.30noncompliant or inappropriate securities or that are uncollectible accounts receivable are
61.31transferred to the city of Minneapolis on the effective date of consolidation under section
61.3219. Any accounts payable on the effective date of consolidation under section 19 are an
61.33obligation of the public employees police and fire retirement fund and reduce the asset
61.34value for purposes of subdivision 6. The transferred assets must be deposited in the public
61.35employees police and fire retirement fund. The amount of the health insurance account as
61.36of the date of the consolidation must remain deposited in the financial institution retained
62.1by the former Minneapolis Police Relief Association on May 1, 2011, and that financial
62.2institution must act as the custodian of the account. The financial institution shall perform
62.3all trustee and fiduciary duties with respect to the account as a condition to the retention of
62.4the account. The executive director of the Minneapolis Police Relief Association, prior to
62.5the effective date of consolidation, shall estimate three calendar years of the administrative
62.6expenses related to the operation of the account and shall prepay those expenses from the
62.7account to the financial institution prior to the effective date of consolidation. After the
62.8three-year prepayment period, the beneficiaries of the account are responsible for the
62.9payment of the administrative expenses related to the operation of the account.
62.10(b) Upon the transfer of assets to the State Board of Investment under paragraph
62.11(a), legal title to those transferred assets vests with the State Board of Investment on
62.12behalf of the public employees police and fire retirement plan, and beneficial title to the
62.13transferred assets remains with the former membership of the former Minneapolis Police
62.14Relief Association.
62.15(c) The public employees police and fire retirement plan and fund is the successor in
62.16interest to all claims for or against the Minneapolis Police Relief Association. the public
62.17employees police and fire retirement plan and fund is not liable for any claim against the
62.18Minneapolis Police Relief Association, its governing board, or its administrative staff
62.19acting in a fiduciary capacity, under chapter 356A or common law, which is founded upon
62.20a claim of a breach of fiduciary duty if the act or acts constituting the claimed breach were
62.21not undertaken in good faith. The public employees police and fire retirement plan may
62.22assert any applicable defense to any claim in any judicial or administrative proceeding
62.23that the Minneapolis Police Relief Association, its board, or its administrative staff would
62.24otherwise have been entitled to assert, and the public employees police and fire retirement
62.25plan may assert any applicable defense that it has in its capacity as a statewide agency.
62.26(d) The Public Employees Retirement Association shall indemnify any former
62.27fiduciary of the Minneapolis Police Relief Association consistent with the provisions of
62.28section 356A.11. The indemnification may be effected by the purchase by the Public
62.29Employees Retirement Association of reasonable fiduciary liability tail insurance for the
62.30officers and directors of the former Minneapolis Police Relief Association. Consistent
62.31with section 69.80, the relief association may purchase reasonable fiduciary liability tail
62.32insurance for its officers and directors prior to the effective date of consolidation under
62.33section 19.
62.34(e) Office equipment and other physical assets of the special fund of the Minneapolis
62.35Police Relief Association that are not needed by the Public Employees Retirement
62.36Association may be sold by the special fund of the Minneapolis Police Relief Association
63.1to the general fund of the Minneapolis Police Relief Association or to any successor
63.2fraternal organization of the Minneapolis Police Relief Association at fair market value,
63.3with the proceeds of that sale deposited in the public employees police and fire retirement
63.4fund and included in the transferred asset value under subdivision 6.
63.5 Subd. 5. Benefits. The annuities, service pensions, and other retirement benefits of
63.6or attributable to retired, disabled, deferred, surviving spouse, or inactive Minneapolis
63.7Police Relief Association members who had that status as of the day before the effective
63.8date of consolidation under section 19 continue after consolidation in the same amount and
63.9under the same terms as provided in chapter 423B, except that the unit value is governed
63.10by section 353.01, subdivision 10b, and the postretirement adjustments after December
63.1131, 2015, must be calculated solely under section 353.6512, subdivision 8.
63.12 Subd. 6. Additional employer contributions. (a) As of the effective date of the
63.13consolidation under section 19, the approved actuary retained by the Public Employees
63.14Retirement Association shall calculate the present value of future benefits of the former
63.15Minneapolis Police Relief Association, and, after subtracting the market value of the
63.16transferred assets of the former Minneapolis Police Relief Association and the present
63.17value of the employer contribution under section 353.65, subdivision 3, paragraph (b),
63.18shall calculate the remainder present value of future benefits amount. Annually, following
63.19the effective date of consolidation under section 19, the city of Minneapolis shall pay an
63.20amount sufficient to amortize on a level annual dollar basis the remainder present value
63.21of future benefits amount by December 31, 2031. The amortization payment is payable
63.22annually on July 15, beginning in the year following the effective date of the consolidation.
63.23The 2012 payment should be estimated based on the provisions of this legislation. The
63.24July 2013 payment shall be adjusted based on the final actuarial valuation.
63.25(b) If the postretirement or preretirement interest rate actuarial assumption applicable
63.26to the public employees police and fire retirement plan under section 356.215, subdivision
63.278, is modified from the rates specified in section 356.215, subdivision 8, the remainder
63.28present value of future benefits amount calculation under paragraph (a), updated for
63.29the passage of time, must be revised and the amortization contribution by the city of
63.30Minneapolis for the balance of the amortization period must be redetermined and certified
63.31to the city of Minneapolis.
63.32 Subd. 7. Health and dental insurance program deductions. The executive
63.33director shall withhold any health insurance or dental insurance premiums designated
63.34by the annuitant or benefit recipient and shall transfer them to the city of Minneapolis.
63.35The Public Employees Retirement Association may charge a necessary and reasonable
63.36monthly administrative fee to the city of Minneapolis for this function and bill it in
64.1addition to the employer contribution under section 353.65, subdivision 3, paragraph
64.2(b). Notwithstanding any provision of chapter 13 to the contrary, the executive director
64.3shall provide the city of Minneapolis with the current addresses of former members of
64.4the Minneapolis Police Relief Association.
64.5 Subd. 8. Cooperation with fraternal organization. (a) This subdivision applies
64.6if the membership of the former Minneapolis Police Relief Association approves the
64.7continuation of the relief association as a fraternal organization under section 16.
64.8(b) The executive director shall cooperate with the Minneapolis police fraternal
64.9association to insure adequate communication with the former members of the former
64.10Minneapolis Police Relief Association consistent with Public Employees Retirement
64.11Association policy.
64.12 Sec. 15. Minnesota Statutes 2010, section 423A.02, subdivision 1b, is amended to read:
64.13 Subd. 1b. Additional amortization state aid. (a) Annually, on October 1, the
64.14commissioner of revenue shall allocate the additional amortization state aid transferred
64.15under section
64.16 (1) all police or salaried firefighters relief associations governed by and in full
64.17compliance with the requirements of section
64.18liability in the actuarial valuation prepared under sections
64.19preceding December 31;
64.20 (2) all local police or salaried firefighter consolidation accounts governed by chapter
64.21353A that are certified by the executive director of the public employees retirement
64.22association as having for the current fiscal year an additional municipal contribution
64.23amount under section
64.24section
64.2524, 1993, and that have implemented section
64.26of the consolidation preceded June 1, 1995; and
64.27 (3) the municipalities that are required to make an additional municipal contribution
64.28under section
64.29required additional contribution.
64.30 (b) The commissioner shall allocate the state aid on the basis of the proportional share
64.31of the relief association or consolidation account of the total unfunded actuarial accrued
64.32liability of all recipient relief associations and consolidation accounts as of December 31,
64.331993, for relief associations, and as of June 30, 1994, for consolidation accounts.
65.1 (c) Beginning October 1, 2000, and annually thereafter, the commissioner shall
65.2allocate the state aid, including any state aid in excess of the limitation in subdivision
65.34, on the following basis:
65.4 (1) 64.5 percent to the municipalities to which section
65.58
65.6accordance with paragraph (b) and subject to the limitation in subdivision 4;
65.7 (2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued
65.8liability in the actuarial valuation prepared under sections
65.9preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
65.10Fire Department Relief Association; and
65.11 (3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability
65.12in the actuarial valuation prepared under sections
65.13December 31 for the Virginia Fire Department Relief Association.
65.14 If there is no unfunded actuarial accrued liability in both the Minneapolis Police
65.15Relief Association and the Minneapolis Fire Department Relief Association as disclosed
65.16in the most recent actuarial valuations for the relief associations prepared under sections
65.18follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
65.19Teachers Retirement Fund Association, and 30 percent as additional funding to support
65.20minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded
65.21actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed
65.22in the most recent actuarial valuation for the relief association prepared under sections
65.24follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
65.25Teachers Retirement Fund Association, and 30 percent as additional funding to support
65.26minimum fire state aid for volunteer firefighters relief associations. Upon the final
65.27payment to municipalities required by section
65.28or
65.29percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund
65.30Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued
65.31liability in the actuarial valuation proposed under sections
65.32preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis
65.33Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs
65.34associated with the police and firefighters pensions, and 40 percent as additional funding to
65.35support minimum fire state aid for volunteer firefighters relief associations. The allocation
65.36must be made by the commissioner at the same time and under the same procedures
66.1as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund
66.2Association, annually, beginning on July 1, 2005, if the applicable teacher's association
66.3five-year average time-weighted rate of investment return does not equal or exceed the
66.4performance of a composite portfolio assumed passively managed (indexed) invested ten
66.5percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent
66.6in domestic stock calculated using the formula under section
66.7allocation to that retirement fund under this section ceases until the five-year annual rate
66.8of investment return equals or exceeds the performance of that composite portfolio.
66.9 (d) The amounts required under this subdivision are the amounts annually
66.10appropriated to the commissioner of revenue under section
66.11paragraph (e).
66.12 Sec. 16. MINNEAPOLIS POLICE RELIEF ASSOCIATION; SPECIAL
66.13ACTUARIAL VALUATION PENDING CONSOLIDATION.
66.14(a) On or before August 1, 2011, the approved actuarial consulting firm retained
66.15by the Public Employees Retirement Association under Minnesota Statutes, section
66.16356.214, shall prepare an alternative actuarial valuation of the Minneapolis Police Relief
66.17Association under Minnesota Statutes, section 356.215, and the most recent standards
66.18for actuarial work adopted by the Legislative Commission on Pensions and Retirement
66.19as of August 11, 2010, using the applicable actuarial assumptions and the applicable
66.20amortization target date of the public employee police and fire retirement plan.
66.21(b) The officers of the Minneapolis Police Relief Association shall supply the
66.22approved actuary retained by the Public Employees Retirement Association with the
66.23financial and demographic data necessary to perform the alternative actuarial valuation.
66.24(c) The alternative actuarial valuation of the Minneapolis Police Relief Association
66.25must be filed with the mayor of the city of Minneapolis, with the Minneapolis city
66.26coordinator, with the executive director of the Minneapolis Police Relief Association,
66.27with the executive director of the Public Employees Retirement Association, with the
66.28executive director of the Legislative Commission on Pensions and Retirement, and with
66.29the Legislative Reference Library.
66.30(d) The expense of preparing the alternative actuarial valuation must be paid by the
66.31city of Minneapolis within 30 days of its certification to the finance director of the city of
66.32Minneapolis by the executive director of the Public Employees Retirement Association.
66.33 Sec. 17. TERMINATION OF THE RELIEF ASSOCIATION.
67.1(a) On the effective date of the consolidation under section 19, the special fund of
67.2the Minneapolis Police Relief Association ceases to exist.
67.3(b) The Minneapolis Police Relief Association shall provide for the continuation
67.4of the relief association as a fraternal organization other than as a pension or retirement
67.5organization and shall approve the changes in its articles of incorporation and bylaws
67.6necessary to effect that redesignation and reorganization of the organization.
67.7(c) If the Minneapolis Police Relief Association continues the relief association
67.8as a fraternal organization under paragraph (b), the transfer of relief association assets
67.9under Minnesota Statutes, section 353.668, subdivision 4, must not include assets of
67.10the Minneapolis Police Relief Association general fund, which must be retained by the
67.11fraternal organization for organization purposes other than for pension or retirement
67.12benefit payment purposes.
67.13(d) As of the effective date of the consolidation under section 19, the employment of
67.14the employees of the Minneapolis Police Relief Association terminates. The employees of
67.15the Minneapolis Police Relief Association who were employed by the relief association
67.16before May 1, 2011, have an employment preference with the Public Employees
67.17Retirement Association equal to that under the veterans preference act.
67.18(e) If, on the day following approval of this article by the Minneapolis city council,
67.19the consolidation has been approved by all applicable entities under section 19, the officers
67.20of the Minneapolis Police Relief Association shall certify to the city of Minneapolis and to
67.21the Hennepin County auditor the financial requirements of the relief association and the
67.22minimum municipal obligation under Minnesota Statutes, section 69.77, subdivision 4,
67.23revised consistent with the actuarial valuation results under Minnesota Statutes, section
67.24423A.02, subdivision 1b.
67.25(f) After the effective date of consolidation under section 19, the city of Minneapolis
67.26shall continue to administer the health and dental insurance programs as constituted on
67.27May 1, 2011, for the former members of the former Minneapolis Police Relief Association,
67.28transferring premiums as required.
67.29 Sec. 18. REPEALER.
67.30Minnesota Statutes 2010, sections 423B.01; 423B.03; 423B.04; 423B.05; 423B.06;
67.31423B.07; 423B.08; 423B.09; 423B.10; 423B.11; 423B.12; 423B.13; 423B.14; 423B.15;
67.32423B.151; 423B.16; 423B.17; 423B.18; 423B.19; 423B.20; 423B.21; and 423B.23, are
67.33repealed.
67.34 Sec. 19. EFFECTIVE DATE; LOCAL APPROVAL.
68.1(a) Sections 1 to 16, 17, paragraphs (a) to (d), and 18 are effective December 30,
68.22011, if the board of trustees of the Minneapolis Police Relief Association approves
68.3the article and if a majority of the entire membership of the Minneapolis Police Relief
68.4Association approves the article, if the chief administrative officer of the Minneapolis
68.5Police Relief Association certifies those approvals to the mayor of the city of Minneapolis
68.6and the president of the Minneapolis city council before September 15, 2011, if the
68.7board of trustees of the Public Employees Retirement Association approves the article,
68.8if the executive director of the Public Employees Retirement Association certifies that
68.9approval to the mayor of the city of Minneapolis and the president of the Minneapolis city
68.10council, if the governing body of the city of Minneapolis and the chief clerical officer of
68.11Minneapolis timely complete their compliance with Minnesota Statutes, section 645.021,
68.12subdivisions 2 and 3, on or before October 15, 2011, or on the date set by the board of
68.13trustees of the Public Employees Retirement Association, in consultation with the mayor
68.14of the city of Minneapolis and the executive director of the relief association, at the
68.15first regular meeting of the Public Employees Retirement Association board of trustees
68.16occurring after Minneapolis city council approval if the governing body of the city of
68.17Minneapolis and the chief clerical officer of Minneapolis complete their compliance with
68.18Minnesota Statutes, section 645.021, subdivisions 2 and 3, after October 15, 2011, and if a
68.19comparable consolidation relating to the Minneapolis Firefighters Relief Association is
68.20approved by all applicable entities under article 7.
68.21(b) If the approvals occur under paragraph (a) in a timely fashion, section 17,
68.22paragraph (e), is effective on the day following approval by the Minneapolis city council.
68.25 Section 1. Minnesota Statutes 2010, section 6.67, is amended to read:
68.266.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
68.27 Whenever a public accountant in the course of auditing the books and affairs of a
68.28political subdivision or a local public pension plan governed by section
68.30to nonfeasance, misfeasance, or malfeasance, on the part of an officer or employee in
68.31the conduct of duties and affairs, the public accountant shall promptly make a report of
68.32such discovery to the state auditor and the county attorney of the county in which the
68.33governmental unit is situated and the public accountant shall also furnish a copy of the
68.34report of audit upon completion to said officers. The county attorney shall act on such
69.1report in the same manner as required by law for reports made to the county attorney
69.2by the state auditor.
69.3 Sec. 2. Minnesota Statutes 2010, section 13D.01, subdivision 1, is amended to read:
69.4 Subdivision 1. In executive branch, local government. All meetings, including
69.5executive sessions, must be open to the public
69.6(a) of a state
69.7(1) agency,
69.8(2) board,
69.9(3) commission, or
69.10(4) department,
69.11when required or permitted by law to transact public business in a meeting;
69.12(b) of the governing body of a
69.13(1) school district however organized,
69.14(2) unorganized territory,
69.15(3) county,
69.16(4) statutory or home rule charter city,
69.17(5) town, or
69.18(6) other public body;
69.19(c) of any
69.20(1) committee,
69.21(2) subcommittee,
69.22(3) board,
69.23(4) department, or
69.24(5) commission,
69.25of a public body; and
69.26(d) of the governing body or a committee of:
69.27(1) a statewide public pension plan defined in section
69.28(2) a local public pension plan governed by section
69.29or chapter 354A
69.30 Sec. 3. Minnesota Statutes 2010, section 43A.316, subdivision 8, is amended to read:
69.31 Subd. 8. Continuation of coverage. (a) A former employee of an employer
69.32participating in the program who is receiving a public pension disability benefit or an
69.33annuity or has met the age and service requirements necessary to receive an annuity
69.34under chapter 353, 353C, 354, 354A, 356, or 423,
70.12008, chapter 422A, and the former employee's dependents, are eligible to participate in
70.2the program. This participation is at the person's expense unless a collective bargaining
70.3agreement or personnel policy provides otherwise. Premiums for these participants must
70.4be established by the commissioner.
70.5The commissioner may provide policy exclusions for preexisting conditions
70.6only when there is a break in coverage between a participant's coverage under the
70.7employment-based group insurance program and the participant's coverage under this
70.8section. An employer shall notify an employee of the option to participate under this
70.9paragraph no later than the effective date of retirement. The retired employee or the
70.10employer of a participating group on behalf of a current or retired employee shall notify
70.11the commissioner within 30 days of the effective date of retirement of intent to participate
70.12in the program according to the rules established by the commissioner.
70.13(b) The spouse of a deceased employee or former employee may purchase the
70.14benefits provided at premiums established by the commissioner if the spouse was a
70.15dependent under the employee's or former employee's coverage under this section at the
70.16time of the death. The spouse remains eligible to participate in the program as long as
70.17the group that included the deceased employee or former employee participates in the
70.18program. Coverage under this clause must be coordinated with relevant insurance benefits
70.19provided through the federally sponsored Medicare program.
70.20(c) The program benefits must continue in the event of strike permitted by section
70.22employee pays the total monthly premiums when due.
70.23(d) A participant who discontinues coverage may not reenroll.
70.24Persons participating under these paragraphs shall make appropriate premium
70.25payments in the time and manner established by the commissioner.
70.26 Sec. 4. Minnesota Statutes 2010, section 69.77, subdivision 1a, is amended to read:
70.27 Subd. 1a. Covered retirement plans. The provisions of this section apply to the
70.28following local retirement plans:
70.29(1) the Bloomington Firefighters Relief Association;
70.30(2) the Fairmont Police Relief Association; and
70.31
70.32
70.33
70.34 Sec. 5. Minnesota Statutes 2010, section 69.77, subdivision 4, is amended to read:
71.1 Subd. 4. Relief association financial requirements; minimum municipal
71.2obligation. (a) The officers of the relief association shall determine the financial
71.3requirements of the relief association and minimum obligation of the municipality for
71.4the following calendar year in accordance with the requirements of this subdivision.
71.5The financial requirements of the relief association and the minimum obligation of the
71.6municipality must be determined on or before the submission date established by the
71.7municipality under subdivision 5.
71.8(b) The financial requirements of the relief association for the following calendar
71.9year must be based on the most recent actuarial valuation or survey of the special fund of
71.10the association if more than one fund is maintained by the association, or of the association,
71.11if only one fund is maintained, prepared in accordance with sections
71.124 to 15
71.13by the actuary of the relief association as part of obtaining a modification of the benefit
71.14plan of the relief association and the modification is implemented, the actuarial estimate
71.15must be used in calculating the subsequent financial requirements of the relief association.
71.16(c) If the relief association has an unfunded actuarial accrued liability as reported in
71.17the most recent actuarial valuation or survey, the total of the amounts calculated under
71.18clauses (1), (2), and (3), constitute the financial requirements of the relief association for
71.19the following year. If the relief association does not have an unfunded actuarial accrued
71.20liability as reported in the most recent actuarial valuation or survey, the amount calculated
71.21under clauses (1) and (2) constitute the financial requirements of the relief association for
71.22the following year. The financial requirement elements are:
71.23(1) the normal level cost requirement for the following year, expressed as a dollar
71.24amount, which must be determined by applying the normal level cost of the relief
71.25association as reported in the actuarial valuation or survey and expressed as a percentage
71.26of covered payroll to the estimated covered payroll of the active membership of the relief
71.27association, including any projected change in the active membership, for the following
71.28year;
71.29(2) for the Bloomington Fire Department Relief Association, the Fairmont Police
71.30Relief Association, and the Virginia Fire Department Relief Association, to the dollar
71.31amount of normal cost determined under clause (1) must be added an amount equal to the
71.32dollar amount of the administrative expenses of the special fund of the association if more
71.33than one fund is maintained by the association, or of the association if only one fund is
71.34maintained, for the most recent year, multiplied by the factor of 1.035. The administrative
71.35expenses are those authorized under section
72.1
72.2
72.3(3) to the dollar amount of normal cost and expenses determined under clauses
72.4(1) and (2) must be added an amount equal to the level annual dollar amount which
72.5is sufficient to amortize the unfunded actuarial accrued liability as determined from
72.6the actuarial valuation or survey of the fund, using an interest assumption set at the
72.7applicable rate specified in section
72.8date as specified in paragraph (d).
72.9(d)
72.10
72.11Relief Association special fund amortization date is December 31, 2010. The
72.12
72.13special fund amortization date is December 31, 2020. The Bloomington Fire Department
72.14Relief Association special fund amortization date is determined under section
72.15paragraph (a), clause (2). The amortization date specified in this paragraph supersedes any
72.16amortization date specified in any applicable special law.
72.17(e) The minimum obligation of the municipality is an amount equal to the financial
72.18requirements of the relief association reduced by the estimated amount of member
72.19contributions from covered salary anticipated for the following calendar year and the
72.20estimated amounts anticipated for the following calendar year from the applicable state aid
72.21program established under sections
72.22after any allocation made under section
72.23or
72.24firefighters' relief association amortization aid program established under section
72.25subdivision 1
72.26section
72.27section
72.28 Sec. 6. Minnesota Statutes 2010, section 356.215, subdivision 8, is amended to read:
72.29 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
72.30the applicable following preretirement interest assumption and the applicable following
72.31postretirement interest assumption:
73.19 (b) Before July 1, 2010, the actuarial valuation must use the applicable following
73.20single rate future salary increase assumption, the applicable following modified single
73.21rate future salary increase assumption, or the applicable following graded rate future
73.22salary increase assumption:
73.23 (1) single rate future salary increase assumption
73.35 (2) age-related select and ultimate future salary increase assumption or graded rate
73.36future salary increase assumption
74.6The select calculation is: during the
74.7designated select period, a designated
74.8percentage rate is multiplied by the result
74.9of the designated integer minus T, where
74.10T is the number of completed years of
74.11service, and is added to the applicable
74.12future salary increase assumption. The
74.13designated select period is five years and the
74.14designated integer is five for the general state
74.15employees retirement plan. The designated
74.16select period is ten years and the designated
74.17integer is ten for all other retirement plans
74.18covered by this clause. The designated
74.19percentage rate is: (1) 0.2 percent for the
74.20correctional state employees retirement plan,
74.21the State Patrol retirement plan, the public
74.22employees police and fire plan, and the local
74.23government correctional service plan; (2)
74.240.6 percent for the general state employees
74.25retirement plan; and (3) 0.3 percent for the
74.26teachers retirement plan, the Duluth Teachers
74.27Retirement Fund Association, and the St.
74.28Paul Teachers Retirement Fund Association.
74.29The select calculation for the Duluth Teachers
74.30Retirement Fund Association is 8.00 percent
74.31per year for service years one through seven,
74.327.25 percent per year for service years seven
74.33and eight, and 6.50 percent per year for
74.34service years eight and nine.
74.35 The ultimate future salary increase assumption is:
76.15(3) service-related ultimate future salary increase assumption
77.5 (c) Before July 2, 2010, the actuarial valuation must use the applicable following
77.6payroll growth assumption for calculating the amortization requirement for the unfunded
77.7actuarial accrued liability where the amortization retirement is calculated as a level
77.8percentage of an increasing payroll:
77.24 (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
77.25apply, unless a different salary assumption or a different payroll increase assumption:
77.26 (1) has been proposed by the governing board of the applicable retirement plan;
77.27 (2) is accompanied by the concurring recommendation of the actuary retained under
77.28section
77.29most recent actuarial valuation report if section
77.30 (3) has been approved or deemed approved under subdivision 18.
77.31 Sec. 7. Minnesota Statutes 2010, section 356.216, is amended to read:
77.32356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE
77.33AND FIRE FUNDS.
77.34
77.35must apply to any local police or fire pension fund or relief association required to make
77.36an actuarial report under this section, except as follows:
77.37(1) in calculating normal cost and other requirements, if required to be expressed as
77.38a level percentage of covered payroll, the salaries used in computing covered payroll must
78.1be the maximum rate of salary on which retirement and survivorship credits and amounts
78.2of benefits are determined and from which any member contributions are calculated and
78.3deducted;
78.4(2) in lieu of the amortization date specified in section
78.5the appropriate amortization target date specified in section
78.7contribution, except that if the actuarial report for the Bloomington Fire Department Relief
78.8Association indicates an unfunded actuarial accrued liability, the unfunded obligation is
78.9to be amortized on a level dollar basis by December 31 of the year occurring 20 years
78.10later, and if subsequent actuarial valuations for the Bloomington Fire Department Relief
78.11Association determine a net actuarial experience loss incurred during the year which
78.12ended as of the day before the most recent actuarial valuation date, any unfunded liability
78.13due to that loss is to be amortized on a level dollar basis by December 31 of the year
78.14occurring 20 years later
78.15
78.16(3) in addition to the tabulation of active members and annuitants provided for in
78.17section
78.18calendar year and the prospective annual retirement annuities under the benefit plan for
78.19active members must be reported;
78.20(4) actuarial valuations required under section
78.21at least every four years and actuarial valuations required under section
78.22made annually;
78.23(5) the actuarial balance sheet showing accrued assets valued at market value if the
78.24actuarial valuation is required to be prepared at least every four years or valued as current
78.25assets under section
78.26actuarial valuation is required to be prepared annually, actuarial accrued liabilities, and the
78.27unfunded actuarial accrued liability must include the following required reserves:
78.28(i) for active members:
78.291. retirement benefits;
78.302. disability benefits;
78.313. refund liability due to death or withdrawal;
78.324. survivors' benefits;
78.33(ii) for deferred annuitants' benefits;
78.34(iii) for former members without vested rights;
78.35(iv) for annuitants;
78.361. retirement annuities;
79.12. disability annuities;
79.23. surviving spouses' annuities;
79.34. surviving children's annuities;
79.4In addition to those required reserves, separate items must be shown for additional
79.5benefits, if any, which may not be appropriately included in the reserves listed above; and
79.6(6) actuarial valuations are due by the first day of the seventh month after the end of
79.7the fiscal year which the actuarial valuation covers.
79.8
79.9
79.10
79.11
79.12
79.13
79.14
79.15
79.16
79.17
79.18
79.19
79.20 Sec. 8. Minnesota Statutes 2010, section 356.401, subdivision 3, is amended to read:
79.21 Subd. 3. Covered retirement plans. The provisions of this section apply to the
79.22following retirement plans:
79.23(1) the legislators retirement plan, established by chapter 3A;
79.24(2) the general state employees retirement plan of the Minnesota State Retirement
79.25System, established by chapter 352;
79.26(3) the correctional state employees retirement plan of the Minnesota State
79.27Retirement System, established by chapter 352;
79.28(4) the State Patrol retirement plan, established by chapter 352B;
79.29(5) the elective state officers retirement plan, established by chapter 352C;
79.30(6) the unclassified state employees retirement program, established by chapter
79.31352D;
79.32(7) the general employees retirement plan of the Public Employees Retirement
79.33Association, established by chapter 353, including the MERF division of the Public
79.34Employees Retirement Association;
80.1(8) the public employees police and fire plan of the Public Employees Retirement
80.2Association, established by chapter 353;
80.3(9) the public employees defined contribution plan, established by chapter 353D;
80.4(10) the local government correctional service retirement plan of the Public
80.5Employees Retirement Association, established by chapter 353E;
80.6(11) the voluntary statewide lump-sum volunteer firefighter retirement plan,
80.7established by chapter 353G;
80.8(12) the Teachers Retirement Association, established by chapter 354;
80.9(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
80.10(14) the St. Paul Teachers Retirement Fund Association, established by chapter
80.11354A;
80.12(15) the individual retirement account plan, established by chapter 354B;
80.13(16) the higher education supplemental retirement plan, established by chapter
80.14354C; and
80.15
80.16
80.17
80.18
80.19 Sec. 9. Minnesota Statutes 2010, section 356.465, subdivision 3, is amended to read:
80.20 Subd. 3. Covered retirement plans. The provisions of this section apply to the
80.21following retirement plans:
80.22(1) the general state employees retirement plan of the Minnesota State Retirement
80.23System established under chapter 352;
80.24(2) the correctional state employees retirement plan of the Minnesota State
80.25Retirement System established under chapter 352;
80.26(3) the State Patrol retirement plan established under chapter 352B;
80.27(4) the legislators retirement plan established under chapter 3A;
80.28(5) the judges retirement plan established under chapter 490;
80.29(6) the general employees retirement plan of the Public Employees Retirement
80.30Association established under chapter 353, including the MERF division of the Public
80.31Employees Retirement Association;
80.32(7) the public employees police and fire plan of the Public Employees Retirement
80.33Association established under chapter 353;
80.34(8) the teachers retirement plan established under chapter 354;
81.1(9) the Duluth Teachers Retirement Fund Association established under chapter
81.2354A;
81.3(10) the St. Paul Teachers Retirement Fund Association established under chapter
81.4354A; and
81.5
81.6
81.7
81.8Employees Retirement Association established under chapter 353E.
81.9 Sec. 10. Minnesota Statutes 2010, section 423A.01, subdivision 3, is amended to read:
81.10 Subd. 3. Benefit increase for certain relief association members. Notwithstanding
81.11any law to the contrary, any member of a local police or salaried firefighters' relief
81.12association located in a municipality which has not adopted a municipal resolution
81.13retaining the local relief association
81.14
81.15pension coverage for newly employed personnel, a retirement annuity in addition to the
81.16service pension to which the member may be eligible upon retirement. The additional
81.17retirement annuity
81.18retirement annuity
81.19service pension is calculated payable on the date of termination of active service per year
81.20of service credit acquired in excess of 25 years of service credit. The retirement annuity
81.21under this subdivision
81.22
81.23the salaries payable to active members or be in any other manner escalated or increased
81.24after retirement.
81.25 Sec. 11. Minnesota Statutes 2010, section 423A.02, subdivision 1, is amended to read:
81.26 Subdivision 1. Amortization state aid. (a) A municipality in which is located
81.27a local police or salaried firefighters' relief association to which the provisions of
81.28section
81.29recent relief association actuarial valuation, is entitled, upon application as required
81.30by the commissioner of revenue, to receive local police and salaried firefighters' relief
81.31association amortization state aid if the municipality and the appropriate relief association
81.32both comply with the applicable provisions of sections
81.33subdivisions 1 and 3
82.1(b) The total amount of amortization state aid to all entitled municipalities must
82.2not exceed $5,055,000.
82.3(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph,
82.4the amount of amortization state aid to which a municipality is entitled annually is an
82.5amount equal to the level annual dollar amount required to amortize, by December 31,
82.62010, the unfunded actuarial accrued liability of the special fund of the appropriate
82.7relief association as reported in the December 31, 1978, actuarial valuation of the
82.8relief association prepared under sections
82.9amount required to pay the interest on the unfunded actuarial accrued liability of the
82.10special fund of the relief association for calendar year 1981 set at the rate specified in
82.11Minnesota Statutes 1978, section
82.12amortization state aid amount thus determined must be reduced by $747,232 on account
82.13of the former Minneapolis Police Relief Association and by $772,768 on account of
82.14the former Minneapolis Fire Department Relief Association. If the amortization state
82.15aid amounts determined under this paragraph exceed the amount appropriated for this
82.16purpose, the amortization state aid for actual allocation must be reduced pro rata.
82.17(d) Payment of amortization state aid to municipalities must be made directly to
82.18the municipalities involved in three equal installments on July 15, September 15, and
82.19November 15 annually. Upon receipt of amortization state aid, the municipal treasurer
82.20shall transmit the aid amount to the treasurer of the local relief association for immediate
82.21deposit in the special fund of the relief association.
82.22(e) The commissioner of revenue shall prescribe and periodically revise the form for
82.23and content of the application for the amortization state aid.
82.24(f) The amount required under this section, as provided in subdivision 3a, is
82.25appropriated annually from the general fund to the commissioner of revenue.
82.26 Sec. 12. Minnesota Statutes 2010, section 609B.455, is amended to read:
82.27609B.455
82.28BENEFIT LOSS.
82.29 Subdivision 1. Scope. The collateral sanctions discussed in this section are codified
82.30in section
82.31 Subd. 2. Homicide; loss of death benefits. A person charged with a felony causing
82.32the death of a public pension plan member has the entitlement to the pension suspended.
82.33 Subd. 3. Forfeiture of survivor benefits upon felony conviction. A person who is
82.34a survivor and convicted of a felony that caused the death of a public pension member
82.35forfeits the survivor pension benefit.
83.1 Subd. 4. Benefit recovery. If pension benefits have already been paid, the chief
83.2administrative officer of the pension plan must attempt to recover amounts paid.
83.3 Sec. 13. Minnesota Statutes 2010, section 609B.460, is amended to read:
83.4609B.460 FORMER MINNEAPOLIS POLICE RELIEF ASSOCIATION
83.5
83.6DURING INCARCERATION.
83.7
83.8and fire retirement plan, who was a member of the former Minneapolis Police Relief
83.9Association, and who was convicted of a felony, is not entitled to a pension or an annuity
83.10from the public employee police and fire retirement plan during the person's period of
83.11incarceration in a penal institution.
83.12 Sec. 14. EFFECTIVE DATE.
83.13(a) This article is effective with respect to the Minneapolis Firefighters Relief
83.14Association on the date on which the article relating to the Minneapolis Firefighters Relief
83.15Association is effective.
83.16(b) This article is effective with respect to the Minneapolis Police Relief Association
83.17on the date on which the article relating to the Minneapolis Police Relief Association is
83.18effective.
