Session Year 2005, Special Session 1

Bill Name: SF0029

Modifying and clarifying certain retirement provisions

ARTICLE 1 -
CLARIFICATION AND RECODIFICATION OF STATEWIDE SPECIALTY RETIREMENT
PLANS

Modifying and recodifying certain provisions under the legislators
retirement plan of the Minnesota state retirement system, defining or redefining
certain terms, clarifying administrative responsibility, modifying certain
retirement allowance qualification, deferred annuities and survivor benefit
provisions and clarifying certain provisions relating to the reduced retirement
allowance, optional annuities, contributions, the irrevocability of certain
elections, service credit, coverage by more than one retirement system or
association and exemption from process and taxation; applying certain provisions
of the elective state officers retirement plan under MSRS to a certain former
constitutional
officer and clarifying the administrative agency and standards of
the plan;
clarifying certain coverage requirements under the state unclassified
employees retirement program; clarifying and revising certain provisions under
the MSRS judges retirement plan relating to administration of the fund,
fiduciary responsibility, the judges retirement fund, member and employer
contributions, annuities and benefits and compulsory retirement; recodifying and
revising certain provisions governing the board on judicial standards; repealing
certain definitions and certain obsolete provisions and providing for the effect
on benefit coverage of the judges retirement plan changes

ARTICLE 2 - COVERED
SALARY; AVERAGE SALARY

Defining average salary under the Minnesota state
retirement system, the elective state officers and judges retirement plans, the
public employees retirement association, the public employees police and fire
plan, the teachers retirement associations and the Minneapolis employees
retirement fund for retirement annuity calculation purposes; increasing the
limit on covered salary for pension purposes for members of MSRS, the state
troopers retirement plan, local relief association benefit plans, the TRAs, the
MERF and the judges retirement plan, excepting employees or elected officials
not subject to the salary limit for local government unit employees, employees
of the southern Minnesota municipal power association and the director of the
Duluth port authority

ARTICLE 3 - ALLOWABLE SERVICE CREDIT

Providing for
purchase of allowable service credit for certain strike periods by public
employees under certain defined benefit plans, by certain metro transit
employees and certain employees of the Crosby Ironton school district and of the
university of Minnesota and for certain periods of authorized leaves of absence
under the judges retirement plan of the Minnesota state retirement system
(MSRS); extending the sunset for prior service credit purchase for certain
employees serving in the armed forces

ARTICLE 4 - ACTUARIAL FINANCIAL REPORTING
AND OTHER GENERALLY APPLICABLE ADMINISTRATIVE CHANGES

Clarifying certain
references to actuarial services in determining actuarial
equivalence under the
Minnesota state retirement system (MSRS), the public employees retirement
association (PERA), the teachers retirement associations, the Minneapolis
employees retirement fund (MERF) and the judges retirement plan; clarifying the
handling of employee contributions from pretax savings accounts for TRA members
on extended leaves of absences, modifying the interest rate; requiring public
pension fund annual financial reports to contain an itemization of
administrative expenses; authorizing the rollover of amounts in reemployed
annuitant earnings limits accounts to other tax qualified plans in lieu of a
lump sum distribution

ARTICLE 5 - MEMBERSHIP INCLUSIONS AND
EXCLUSIONS

Expanding membership in the state patrol retirement fund of the
Minnesota state retirement system to peace officers employed by the insurance
fraud prevention division of the department of commerce; providing for
membership in the MSRS correctional employees retirement plan for certain
additional employees of the department of corrections and certain employees of
the department of human
services, requiring the departments to establish a
procedure for evaluating and recommending potential employment positions for
membership; including and excluding certain police officers employed by the
university of Minnesota in and from the public employees police and fire plan of
the public employees retirement association (PERA); modifying the time limit for
election between defined benefit and defined contribution plan coverage under
the Minnesota state colleges and universities (MnSCU) system (higher education)
individual retirement account (IRA) plan of the teachers retirement association
(TRA)

ARTICLE 6 - VARIOUS RETIREMENT PLAN CONTRIBUTIONS AND CONTRIBUTION RATE
INCREASES

Increasing employee and employer contribution rates to the state
employees retirement fund and the correctional employees retirement plan under
the Minnesota state retirement system (MSRS), to the state patrol retirement
fund and to the coordinated program and the police and fire fund under the
public employees retirement association; requiring contribution rate adjustments
under PERA under certain sufficiency or deficiency conditions; providing for the
collection of unpaid employer contributions due to employees of local government
units not funded directly from the proceeds of the property tax under PERA;
authorizing and providing for the payment of interest by PERA on the return of
certain excess prior service credit purchase payments by certain Minneapolis
community development agency (MCDA) employees; appropriating money to the
commissioner of finance for distribution to counties and cities in proportion to
the share of the total additional employer contributions

ARTICLE 7 - PENSION
BENEFITS UPON PRIVATIZATION

Expanding privatized public hospital pension
benefits under the public employees retirement association to employees of the
Northfield hospital, Bridges medical services and the Hutchinson area health
care facility, specifying certain actuarial accrued liability calculation
requirements; eliminating coverage under PERA for privatized water and
wastewater facility employees; extending the deadline for filing of the
certificate of special law approval with the secretary of state by the city of
Renville relating to continued benefits coverage under PERA following
privatization of the RenVilla nursing home

ARTICLE 8 - FIRST CLASS CITY
TEACHER RETIREMENT FUND ASSOCIATIONS

Requiring and providing for the chief
administrative officers of the first class city teachers retirement fund
associations (TRA) to biennially publish updated compilations of articles of
incorporation and bylaws of the association; requiring certification of accuracy
and completeness and an index; specifying certain availability requirements,
authorizing a fee for copies; authorizing the associations to contract with the
revisor of statutes for preparation of the compilation

ARTICLE 9 - MINNESOTA
STATE COLLEGES AND UNIVERSITIES INDIVIDUAL RETIREMENT ACCOUNT PLAN
CHANGES

Modifying an investment option under the Minnesota state colleges
and
universities (MnSCU) system (higher education) individual retirement account
(IRA) plan of the teachers retirement association (TRA), authorizing the
inclusion of various investment accounts offered through the Minnesota
supplemental investment fund as investment products

ARTICLE 10 - SUPPLEMENTAL
RETIREMENT PLANS

Expanding the provision providing exceptions to the
prohibition on the
contribution of public funds to supplemental pension or
deferred compensation plans for the benefit of employees to contributions to
laborers local pension funds, increasing the allowable contribution amount to
labor pension funds and clarifying the exception relating to supplemental plans
organized and operated under the federal internal revenue code (IRC) funded by
accumulated sick or vacation leave and severance pay, accumulated leave and
severance pay to be at
the date of retirement or the termination of active
employment

ARTICLE 11 - VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
CHANGES

Implementing the recommendations of the volunteer firefighter relief
association working group of the state auditor; modifying the trigger date for
the filing of financial reports for certain salaried and volunteer firefighters
relief associations; modifying and clarifying certain provisions relating to the
volunteer firefighters relief association financing guidelines act; modifying
the basis of certain determinations by the state auditor and excluding certain
municipalities or nonprofit firefighting corporations or associated relief
associations from eligibility for fire state aid based on certain violations;
clarifying certain financial requirements of relief associations paying lump sum
or monthly service pensions, requiring the amortization of experience losses;
modifying the limit on mutual fund investments and clarifying corporate stock
and exchange traded funds investment authority; modifying the per firefighter
financing requirements for monthly benefit service pensions; clarifying the
deferred service pension options available to defined contribution plans;
modifying the options for crediting interest on deferred service pensions;
providing for the crediting of service during military service leaves;
modifying
the municipal representation requirements on relief association
governing
boards; clarifying the payment of benefits following consolidation by
volunteer firefighters under the consolidating volunteer firefighters relief
association; creating a statewide volunteer firefighter retirement plan study
task force to study the creation of a statewide volunteer firefighter retirement
plan, specifying certain membership and recommendations requirements; requiring
a report to the legislature by a certain date; appropriating money to the
commissioner of public safety to hire a consultant to assist the task
force

ARTICLE 12 - VARIOUS CORRECTIONS AND CLARIFICATIONS

Clarifying
exemptions from process and taxation for certain statewide and major local
retirement plans; updating language usage and style, clarifying and correcting
cross references in certain provisions relating to police and fire state aid,
the Minnesota state retirement system, the state patrol retirement plan, the
unclassified employees retirement program under MSRS, the public employees
retirement association, the teachers retirement associations, the Minneapolis
employees retirement fund and fiduciary responsibility; excluding certain labor
service employees from certain refund eligibility under MSRS; providing
statutory language for the special retirement fund of the TRA; modifying the
prior service credit purchase payment amount determination procedure; specifying
certain reference replacement instructions to the revisor
of statutes; repealing
a certain definition of adjustable fixed benefit annuity for postretirement
investment fund participation under MSRS, certain deferred annuity, prior
service credit purchase, survivor rights and benefits and retirement annuity
benefits under PERA, a certain state university teachers additional retirement
allowance provision under TRA and certain refund provisions under MERF

ARTICLE
13 - LOCAL RETIREMENT PLANS

Extending the deadline for full funding of and
increasing the interest and single rate salary assumptions for the Bloomington
fire department relief association, providing for amortization of the unfunded
actuarial accrued liability; extending the amortization date for the Minneapolis
police relief association and modifying the number of members remaining in the
association for continuation of the governing board; providing for
administration of the Hennepin county supplemental retirement program by the
Minnesota state retirement system (MSRS) on behalf of the county; modifying a
certain provision providing for eligibility for service pensions from the
Minneapolis police and firefighters relief associations based on a certain
funding ratio, providing additional half units to certain members of the police
relief association and increasing surviving spouse benefits, certain benefits to
be retroactive; prohibiting the recomputation of firefighters relief association
disability benefits at retirement age and the reduction of benefits to members
of either association under certain conditions; providing for calculation of the
service pension amount for members of the Aurora, Biwabik, Hoyt Lakes and Palo
volunteer firefighters relief associations after consolidation; providing a
retroactive ad hoc postretirement adjustment to retired police officers,
firefighters and surviving spouses of the Eveleth police and fire trust fund;
authorizing and providing for the Maplewood firefighters relief association to
transfer assets to the Oakdale fire department relief association for members
eligible to receive a combined service pension for service in both
associations

ARTICLE 14 - MINNEAPOLIS EMPLOYEES RETIREMENT FUND
CHANGES

Exempting the Minneapolis employees retirement fund (MERF) executive
director from the compensation limit for persons employed by local government
units; authorizing the investment of assets with the state board of investment;
authorizing and providing for accounts receivable transfers in lieu of cash
between the deposit accumulation and retirement benefit funds; repealing a
certain liquidity transfer obligation relating to additional employer
contributions to correct deficiencies

ARTICLE 15 - ONE PERSON AND SMALL GROUP
RETIREMENT CHANGES

Entitling the surviving spouse of a certain St. Louis Park
police officer killed in the line of military duty in Iraq to survivor benefits
from the public
employees police and fire plan of the public employees
retirement association (PERA); authorizing the purchase of prior service credit
in the teachers retirement association (TRA) by a certain person employed by
independent school district #11, Anoka-Hennepin

ARTICLE 16 - TEACHER RETIREMENT
FUND AND BENEFIT RESTRUCTURING
Consolidating the Minneapolis teachers retirement
fund association coordinated program with the statewide teachers retirement
association; authorizing and providing for special school district #1,
Minneapolis to finance the current and future unfunded pension liability of the
Minneapolis teachers retirement fund association through the issuance without
election of pension obligation bonds under certain conditions, providing for use
of the proceeds and for payment of the bonds and of debt service, providing an
aid reduction for repayment under certain deficiency conditions; expanding the
definition of allowable service
under provisions regulating the statewide TRA to
certain service rendered before a certain date by teacher employees of special
school district #1, Minneapolis or by employees of the Minneapolis TRA not yet
receiving retirement benefits or receiving a refund; increasing employee and
employer contributions to the TRA for coordinated members and requiring a
supplemental payment toward the cost of the unfunded actuarial accrued liability
transferred to the TRA from the former Minneapolis teachers retirement fund
association; providing for the computation of retirement benefits, for the
transfer of membership, service credit, liability, records and assets of the
Minneapolis TRA to the TRA and for the calculation of postretirement
adjustments; terminating the Minneapolis teacher retirement fund association,
repealing the articles of incorporation and bylaws and rededicating a certain
prior appropriation to the Minneapolis employees retirement fund to the
Minneapolis TRA to offset the current and future unfunded pension liability of
the Minneapolis TRA upon satisfaction of the financial requirements of MERF;
making conforming amendments to certain teachers retirement association, first
class cities teachers retirement fund association and general retirement
provisions; making mandatory certain contributions by special school district #1
and the city of Minneapolis to the TRA for matching aid and modifying the match
requirement; increasing the applicable benefit accrual rate for coordinated plan
members; establishing the date for full funding of the TRA and an employment
reference for employees of the Minneapolis TRA with the statewide TRA; providing
for certain education reserve account transfers; appropriating money to the
commissioner of finance for transfer to the TRA and for state aid payments for
certain employer contributions

ARTICLE 17 - PRE-1969 TEACHER SPECIAL
POSTRETIREMENT ADJUSTMENT

Providing an additional postretirement adjustment for
certain pre-1969 teachers, specifying certain eligibility requirements and
providing for determination of the additional benefit amount; specifying the
duration of the additional benefit; prohibiting retroactive payment and payment
to estates; appropriating money to the executive director of the teachers
retirement association (TRA) for payment of the adjustment

ARTICLE 18 - PENSION
DEFAULT INSURANCE POOL

Establishing an insurance pool to temporarily protect
against default in the
payment of public pension benefits; imposing a pension
default insurance charge per active member and benefit recipient, requiring
adjustment by the commissioner of finance based on the potential risk of future
default as determined by the consulting actuary; establishing the special
pension default insurance pool fund for commissioner deposit of charge receipts,
requiring investment of the fund by the state board of investment; providing for
disbursement of money in the fund to the chief administrative officers of
covered retirement plans facing imminent default, specifying the covered
plans

ARTICLE 19 - DEFERRED ANNUITIES AUGMENTATION

Eliminating eligibility for
augmentation of deferred annuities paid to certain
new members of the Minnesota
state retirement system (MSRS), the state troopers retirement plan, the public
employees retirement association (PERA), the local government correctional
service retirement plan and the teachers retirement associations (TRA)

ARTICLE
20 - EARLY RETIREMENT INCENTIVES

Providing an early retirement incentive to
certain eligible employees in the
executive or legislative branches of state
government or of the board of public defense, the Minnesota historical society
or school districts, providing for designation of qualifying positions;
providing postretirement or phased retirement employment and voluntary hour
reduction plan or unpaid leave of absence opportunities for certain state
employees, specifying certain agreement requirements, appointing authority
responsibilities and limits
(je)