Legislative Session number- 85

Bill Name: SF2720

3E Relating to retirement;

ARTICLE 1 - POSTRETIREMENT PROVISIONS

Requiring the
state board of investment to annually determine a composite funded ratio for
state pension assets, modifying the postretirement adjustment calculation,
requiring the board to determine fund total fair market value, limiting the
postretirement adjustment percentage, providing a lost purchasing power increase
for the Minnesota postretirement investment fund and specifying conditions,
requiring a legislative report under condition of excess assets

ARTICLE 2 -
MINNESOTA POSTRETIREMENT INVESTMENT FUND DISSOLUTION

Modifying the procedures
used by the state board of investment to determine postretirement adjustments
for the Minneapolis employees retirement fund; providing for Minnesota
postretirement investment fund dissolution according to a transition schedule,
providing for postretirement adjustments, requiring a legislative report on
statutory drafting changes for conformance

ARTICLE 3 - PHASED RETIREMENT OR
RETURN TO EMPLOYMENT PROVISIONS

Defining terminated state employee and
describing its relation to certain postretirement options, modifying state
employee postretirement employment provisions, modifying certain duties of the
commissioner of employee relations (DOER) relating to postretirement option
position and renewal offers; establishing a phased retirement program for
teachers, defining eligibility; requiring an agreement on time worked
and
duration of participation between the teacher and administration,
establishing certain service credit and contribution restrictions for
participants, requiring the completion of an annuity application by the
participant; establishing a temporary exemption for certain people receiving a
retirement annuity from the public employees police and fire plan; authorizing
the St. Paul and Duluth teachers retirement fund associations (TRA) to revise
bylaws to reflect annuity payments procedure for participants in phased
retirement

ARTICLE 4 - MANDATORY JOINT AND SURVIVOR BENEFIT FORM

Requiring
signed consent of a spouse when certain public employees enrolled in the
Minnesota state retirement system (MSRS) or the public employees retirement
association (PERA) choose that payment be made to a designated beneficiary in
the event the employee dies; requiring the selection of a joint and survivor
annuity benefit under all public pension plans offering joint and survivor
optional annuity forms, specifying certain calculation requirements for minimum
continuing benefits to a surviving spouse, modifying annuity form information
and notice requirements; excluding certain retirement plans, clarifying
treatment of a survivor of a deceased disabilitant, specifying certain
limitations due to marriage dissolution, exempting certain plan administrators
from liability

ARTICLE 5 - ADMINISTRATIVE PROVISIONS

Establishing certain
employees of the Minnesota government engineers council enrolled in MSRS as
state employees, modifying the leave of absence service credit purchase
procedure for certain employees enrolled MSRS, modifying the duties and powers
of the MSRS board of directors, establishing an assistant director of MSRS,
clarifying the employment status and salary of the executive director and the
assistant director of MSRS, modifying certain MSRS refund requirements,
modifying the formula for payment of additional equivalent contributions prior
to a certain date of coverage and specifying certain duties of the MSRS
executive director, specifying certain effect of asset transfer, modifying the
MSRS health care savings plan, expanding the role of the executive director of
MSRS in the administration of the health care savings plan; excluding resident
physicians, medical interns and pharmacist residents and pharmacist interns
serving in a degree or residency program in public clinics from membership in
PERA, modifying certain PERA provisions relating to the definition of salary and
modifying termination of public service provisions, permitting uncredited
military service credit purchase for certain public employees enrolled in PERA,
clarifying correctional state employees retirement plan transfer of service
credit procedures, providing limitations on additional plan coverage, modifying
requirements for treatment of periods before initial coverage date; clarifying
the relationship between workers compensation disability payments and those paid
by PERA, eliminating certain guidelines in awarding pension coverage for certain
tribal police officers exercising state arrest powers; modifying investment
options for public employees defined contribution plan; establishing federal
compliance for public employees deferred compensation plans, defining certain
terms; determining members required minimum distributions, eliminating certain
privatized public hospital pension benefits under PERA to employees of the
Kanabec and Northfield hospitals and the Renville county hospital in Olivia;
providing for certification and decertification of medical facilities and other
public employing units, specifying certain eligibility determination
requirements, requiring recommendation report to the legislature under certain
conditions; modifying allowable teacher's retirement association (TRA) service
credit purchase requirements for family leave of absence, modifying certain
computation of TRA retirement annuities requirements for retirees not eligible
for federal benefits; revising TRA strike period and leave of absence service
credit purchase procedures; revising TRA reemployed annuitant account holding
period; modifying certain PERA determination requirements for prior service
credit purchase amounts; establishing the application of certain retirement
plans to federal compensation limits, establishing a maximum annual addition
limitation for certain retirement plans; modifying certain PERA approval
requirements for the Clearwater county memorial hospital; repealing certain
provisions relating to TRA retirement benefits extension of the 1997 permanent
increase, modification in survivor coverage in certain instances, payments to
receive credit for prior services for other state or school teaching service and
certain annuity options; repealing a certain MSRS provision relating to state
salary limitations; repealing certain provisions relating to teachers on certain
extended leave; repealing provisions relating to legislators second social
security referendum election of coverage, payment of retroactive social security
taxes and deduction from wages

ARTICLE 6 - MSRS-CORRECTIONAL COVERAGE
EXPANSION

Adding a certain number of employment positions to the correctional
state employees retirement plan

ARTICLE 7 - PERA BENEFITS FOLLOWING
PRIVATIZATIONS

Including Worthington Regional hospital and certain departments
of the Willmar Rice memorial hospital in privatized public employee retirement
coverage

ARTICLE 8 - RETIREMENT RELATED STATE AID PROGRAMS

Correcting special
direct state aid payments to first class city teachers retirement fund
associations (TRA); providing for certain retroactivity for direct state aid;
requiring the commissioner of revenue to allocate amortization state aid to the
St. Paul teachers retirement fund association, the city of Minneapolis for the
police relief association and the firefighters relief association and the city
of Duluth for police and firefighters relief associations and for volunteer
firefighters relief associations; repealing certain provisions relating to
direct state aid to first class city teachers and direct state matching aid to
the TRA under certain circumstances

ARTICLE 9 - MNSCU IRAP AND RELATED
CHANGES

Creating unclaimed account procedures for the Minnesota state colleges
and universities (MnSCU) system individual retirement account plan and
supplemental plan; providing for the disposition of abandoned public pension
amounts; requiring the TRA to retain an actuary to conduct an actuarial impact
study regarding a change in retirement plan coverage for members employed by the
Minnesota state colleges and universities system

ARTICLE 10 - FINANCIAL AND
ACTUARIAL REPORTING

Modifying the commissioner of finance duties relating to
retirement fund reporting; modifying persons responsible for public pension fund
annual financial reporting; removing certain financial annual report content
requirements; removing the definition of current assets and providing a
definition of actuarial value of assets for actuarial valuation purposes;
modifying certain provisions on the procurement of actuarial services for state
and local public retirement programs; authorizing the legislative commission on
pensions and retirement to contract with an actuarial consulting firm for
certain audit and review purposes; modifying the definition of current assets;
modifying the general and correctional state employees, state patrol,
legislators, elective state officers, judges, general public employees, public
employees police and fire, local government correctional service and teachers
postretirement interest rate assumptions; requiring use of certain salary
assumptions and actuarial valuations prior to a certain date; modifying the
correctional state employees retirement plan future salary increase
assumption;
changing the select calculation period to a designated select period
and providing the designated select period and a calculation for state
retirement plans; changing current ultimate future salary increase assumptions;
modifying the general state, correctional state and general public employees and
teachers and Duluth teachers retirement plans actuarial valuation; providing for
actuarial valuation assumption applicability after a certain date, exceptions;
requiring actuarial valuation exhibits to contain exhibits indicating unfunded
actuarial accrued liability amortization; specifying full funding deadlines for
the correctional state employees, judges and public employees police and fire
retirement plans; requiring the actuarial valuation of retirement plan to
include unfunded actuarial accrued liability calculation for amortization
determination for the Minnesota post retirement investment fund; modifying
legislative commission on pensions and retirement approval requirements and
process before and after a certain date; appropriating money to the legislative
commission on pensions and retirement for actuarial consulting firm contracting
costs; repealing certain provisions relating to actuarial valuation preparation
allocation of actuarial costs, and to actuarial valuations and experience
studies project valuation requirements

ARTICLE 11 - RETIREMENT SAVINGS
PROGRAMS

Requiring collective bargaining over the number of tax sheltered
annuity vendors school districts permit for payroll deduction, specifying
factors a school district and an employee representative shall consider before
selecting a vendor; modifying the MSRS deferred compensation plan; providing for
statutory plan establishment, MSRS administration, right to participate in the
plan, failure to implement the plan by public employers, plan investments, state
board of investment determination of investments, plan administrative expenses,
non applicability of other laws, process exemption and missing participants
procedures; making certain conforming statutory amendments for public retirement
systems generally and Hennepin county employees bargaining units retirement
provisions, modifying certain restrictions and exceptions upon governmental
units relating to supplemental pension plans of certain employees of MNSCU and
the deferred compensation plan for employees of United hospital district, Blue
Earth; repealing current statutory language and rules for MSRS deferred
compensation

ARTICLE 12 - PERA POLICE AND FIRE PLAN DUTY DISABILITY BENEFIT
INCREASE

Providing for a duty disability pension amount for injured police
officers and firefighters

ARTICLE 13 - LOCAL POLICE AND PAID FIRE RELEIF
ASSOICATION CHANGES

Providing for a pension unit increase for service
pensioners that belong to a salaried firefighter relief association in certain
cities of the first class, specifying that the pension unit increase take
precedence over any other benefit when the fund reaches a certain amount,
permitting salaried firefighter relief associations in certain cities of the
first class to apply excess investment income to a supplemental benefit to an
eligible member

ARTICLE 14 - VOLUNTEER FIREFIGHTER RELEIF ASSOCIATION
CHANGES

Requiring public accountants to report evidence of misconduct relating
to the books and affairs of certain volunteer firefighter relief associations;
modifying the definition of retirement benefits other than a service pension;
permitting certain security brokers and depository agents of the state board of
investment to hold assets covered by a public pension; establishing certain
disclosure of investment requirements for security brokers; defining ancillary
benefit as it relates to volunteer firefighters retirement; modifying the
definition of surviving spouse as it relates to volunteer firefighters
retirement; authorizing an increase in maximum monthly service pension amounts
for volunteer firefighters; modifying the manners of payment allowed for the
payment of deferred service pension lump sum amounts by a relief association for
volunteer firefighters, modifying the payment of interest on the deferred lump
sum service pension during the period of deferral; modifying certain limitations
on the payment of ancillary benefits by a relief association; modifying the
authorized disbursements from the relief associations special fund; establishing
a voluntary statewide volunteer firefighter retirement advisory board, defining
certain terms, prescribing membership, creating board duties, instructing
certain municipalities and fire departments to provide relevant information the
board or executive director needs to perform certain duties; repealing prior
inconsistent special volunteer fire relief association ancillary benefit
legislation, permitting local approval

ARTICLE 15 - MEMBERSHIP DUES
WITHOLDING

Authorizing certain voluntary deductions from persons entitled to
receive an annuity from a public pension fund administered by MSRS, the public
employees retirement system (PERS) or the Minneapolis employees retirement
system; restricting liability; limiting deductions; requiring labor
organizations to reimburse the public pension fund for the expense of
withholding premium amounts

ARTICLE 16 - SMALL GROUP PROVISIONS

Authorizing an
individual employed by Olmsted county, the city of Rochester and independent
school district #535 to apply for a retirement annuity through PERA under
certain conditions; authorizing and providing for a certain St. Paul public
works employee and eligible member of PERA to withdraw a previously filed
retirement annuity application and submit a disability benefit application;
authorizing and providing for the purchase of prior service credit in the PERA
police and fire fund by a certain former employee of the city of Maple Grove
with a prior period of firefighter employment; authorizing certain members of
the MnSCU system faculty to elect prospective and retroactive retirement
coverage by TRA in place of the higher education individual retirement account
plan; specifying election procedure; sunset provision; authorizing an individual
to receive service credit for prior Illinois teaching from TRA; waiving the
annuity repayment requirement for a certain former employee of independent
school district #2859, Glencoe/Silver Lake under the PERA general employees
retirement plan; authorizing and providing for the purchase of prior service
credit in the PERA general plan by a certain former employee of the city of St.
Paul; authorizing the purchase of prior service credit in the PERA defined
contribution retirement plan for a certain independent school district #625, St.
Paul school board member; authorizing the purchase of service credit by a person
who took a leave of absence from teaching at independent school district #284,
Wayzata and did not receive the allowable and formula service credit from TRA;
authorizing a former employee of the state lottery to have the MSRS benefit
divided as provided in a marital property division as a result of a marriage
dissolution
(me)