SF 686

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:14am

A bill for an act
relating to retirement; providing for a cost-of-living adjustment; requiring
a bylaws revision; amending Minnesota Statutes 2008, section 354A.29,
subdivision 3; repealing Minnesota Statutes 2008, section 354A.29, subdivisions
2, 4, 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 354A.29, subdivision 3, is amended to
read:

Subd. 3.

Postretirement adjustment.

(a) The postretirement adjustment described
in the articles and bylaws of the St. Paul Teachers Retirement Fund Association must be
determined by the new text begin executive director and approved by the new text end board annually deleted text begin after June 30 deleted text end
using the procedures under this section.

(b) new text begin Commencing in January 2010, and each January thereafter, new text end each eligible person
who has been receiving an annuity or benefit under the articles of incorporation, the
bylaws, or this chapter for at least deleted text begin 12 deleted text end new text begin three calendar new text end months as of the end of the deleted text begin fiscal deleted text end
new text begin last day of the previous calendar new text end year is eligible to receive a postretirement deleted text begin adjustment of
2.0 percent that is payable each January 1 deleted text end new text begin increase equal to the Consumer Price Index for
urban wage earners and clerical workers (CPI-W) for the third calendar quarter of the most
recent calendar year divided by the value of the same index in the third calendar quarter of
the previous year, as further specified under paragraph (c) new text end .

new text begin (c) The postretirement increase under this section is to be calculated as follows:
new text end

new text begin (1) for each value, the average quarter-to-quarter index change shall be the sum of
the monthly CPI-W index values as determined by the Bureau of Labor Statistics within
the United States Department of Labor, for the months of July, August, and September for
each applicable year, divided by three to derive the quarterly value in each case;
new text end

new text begin (2) the quotient of the average for the second year divided by the resulting average
for the first year as determined under clause (1), minus one, rounded to the nearest
one-tenth of one percent is the full, unadjusted increase to be added to payments to eligible
recipients in the subsequent January payment; and
new text end

new text begin (3) the adjustment may not be less than zero, nor greater than five percent, and is
to be applied as a permanent increase to the regular payment of each eligible benefit
recipient. In the case of any eligible member whose effective date of retirement occurs
during the calendar year before the postretirement increase is applied, the increase for that
member must be prorated on the basis of whole calendar quarters as a fraction of the
previous calendar year, rounded to the third decimal place.
new text end

Sec. 2. new text begin BYLAW REVISION AUTHORIZATION.
new text end

new text begin Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the board of
the St. Paul Teachers Retirement Fund Association shall revise the bylaws or articles of
incorporation of the teachers retirement fund association to conform with this section.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 354A.29, subdivisions 2, 4, and 5, new text end new text begin are repealed.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective July 1, 2009.
new text end