Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 206-H.F.No. 571 
           An act relating to retirement; Minneapolis municipal 
          employees; making various changes reflecting benefits, 
          administration, and investment practices of the 
          Minneapolis employees retirement fund; amending 
          Minnesota Statutes 1990, sections 11A.24, subdivision 
          1; 356.71; 422A.03, subdivision 1; 422A.05, 
          subdivision 2c; 422A.09, subdivision 3; 422A.13, 
          subdivision 2; and 422A.16, subdivisions 1 and 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1990, section 11A.24, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SECURITIES GENERALLY.] The state board 
shall have the authority to purchase, sell, lend or exchange the 
following securities for funds or accounts specifically made 
subject to this section including puts and call options and 
future contracts traded on a contract market designated and 
regulated by a federal agency.  These securities may be owned as 
units in commingled trusts that own the securities described in 
subdivisions 2 to 5.  
    Sec. 2.  Minnesota Statutes 1990, section 356.71, is 
amended to read: 
    356.71 [REAL ESTATE INVESTMENTS.] 
    Notwithstanding any law to the contrary, any public pension 
plan whose assets are not invested by the state board of 
investment may invest its funds in Minnesota situs nonfarm real 
estate ownership interests or loans secured by mortgages or 
deeds of trust if the investment is consistent with section 
356A.04.  Except to the extent authorized in the case of the 
Minneapolis employees retirement fund under section 422A.05, 
subdivision 2c, paragraph (a), an investment otherwise 
authorized by this section must also comply with the 
requirements and limitations of section 11A.24, subdivision 6. 
    Sec. 3.  Minnesota Statutes 1990, section 422A.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  The retirement board shall meet on the 
third Tuesday of each calendar month of each year and may 
adjourn from time to time.  Special meetings may be held upon 
the call of the president.  The board shall, by a four-sevenths 
vote of all members of the board, appoint an executive director, 
who shall have charge of the performance of the duties required 
by the provisions of sections 422A.01 to 422A.25, and who shall 
appoint other necessary employees to positions approved in 
advance by the board.  If at the time of appointment as 
executive director the appointee holds a position subject to the 
civil service rules and regulations of the city the appointee 
shall be deemed to be on leave of absence from the civil service 
position during tenure as executive director, and upon 
termination of service shall be returned to the appointee's 
permanent civil service classification.  If no vacancy is 
available in the appointee's permanent civil service classified 
position, seniority shall prevail, and the person most recently 
certified to the position shall be returned to the permanent 
civil service classification held prior to such certification. 
    Sec. 4.  Minnesota Statutes 1990, section 422A.05, 
subdivision 2c, is amended to read: 
    Subd. 2c.  (a) For investments made on or after July 1, 
1991, the board may shall invest funds only in investments 
authorized by section 11A.24.  However, in addition to other 
authorized real estate investments authorized by section 11A.24, 
the board may also invest funds in make loans to purchasers of 
Minnesota situs nonfarm residential real estate ownership 
interests or loans that is owned by the Minneapolis employees 
retirement fund.  The loans must be secured by mortgages or 
deeds of trust.  
     (b) For investments made before July 1, 1991, the board 
may, but is not required to, comply with section 11A.24.  
However, with respect to these investments, the board shall act 
in accordance with subdivision 2a and chapter 356A. 
    Sec. 5.  Minnesota Statutes 1990, section 422A.09, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCEPTIONS FROM MEMBERSHIP.] The exempt class 
shall consist of: 
     (1) Employees who are members of any other organization or 
association of the city on behalf of which a tax is levied by 
the city for the purpose of paying retirement allowances to 
disabled or superannuated employees. 
     (2) Persons filling elective position; provided that any 
elective officer holding an elective city office, except a judge 
of municipal court, shall, upon written application to the 
retirement board, be entitled to become a member of the 
contributing class of the fund, and after becoming a contributor 
to the fund be entitled to all benefits conferred upon employees 
of the contributing class except retirement on a service 
allowance, which shall be granted only upon completion of ten or 
more years of service and attaining at least age 60. 
     All retirement allowances shall be computed and determined 
as provided herein, except that in determining the number of 
years of service, credit shall be given for time served as an 
elective officer or employee, or member of an executive board or 
commission or any combination thereof.  Persons who have served 
in elective positions which qualified them for membership in the 
fund prior to July 1, 1967, and who immediately thereafter hold 
elective office, first being appointed to that elective office 
in Hennepin county, may retain or resume membership in the fund 
as an elective officer of the county.  The county shall collect 
and pay to the retirement fund the employee contribution as 
required pursuant to under section 422A.10.  The employer 
contribution on behalf of the elected officer shall must be paid 
by the county.  Before receiving a retirement allowance, or any 
other benefit, any person who claims credit for service pursuant 
to under this section shall contribute to the fund an amount 
equal to the amount of contributions to the fund which the 
person would have made had the person been a contributor to the 
fund since the date the person first became eligible for 
membership in the fund, in accordance with under section 
422A.10, plus six percent compound interest. 
    (3) Persons serving without pay. 
    (4) Persons employed on a temporary basis, as doorkeepers, 
ticket takers, and attendants at the municipal auditorium, park 
recreation facilities, or like activities, employed less than 
1000 hours, or its equivalent if employed on any other basis 
than an hourly basis, in any calendar year from January 1 to 
December 31, inclusive, provided that employees who were 
contributing members of the fund on July 1, 1959 shall not be 
affected by the exclusions contained in this section. 
    (5) A person who is exempted from the contributing class by 
Minnesota Statutes 1974, section 422A.09, subdivision 3, clauses 
(4) and (5), but who is employed by and paid, in whole or in 
part, by the city or any of its boards, departments, or 
commissions, operated as a department of the city government or 
independently, if financed in whole or in part by city funds, 
including any person employed by a public corporation, and 
including any person employed by special school district No. 1, 
each of whom is not a member of any other retirement system, who 
later becomes a contributing member of the fund may elect to 
qualify at that time for credit by paying into the fund an 
amount equal to the amount of contributions to the fund which 
the person would have made had the person been a contributor to 
the fund since the date the person first qualified as an exempt 
member of the contributing class, in accordance with under 
section 422A.10, plus six percent compound interest. 
    (6) Any person who is employed in subsidized on-the-job 
training, work experience or public service employment as an 
enrollee under the federal Comprehensive Employment and Training 
Act from and after March 30, 1978, unless the city council of 
the city of Minneapolis specifies that the person is to be 
considered as a provisional member of the retirement fund 
pursuant to section 356.451 or unless the person has as of the 
later of March 30, 1978, or the date of employment sufficient 
service credit in the retirement fund to meet the minimum 
vesting requirements for a deferred retirement annuity, or the 
employer agrees in writing to make the required employer 
contributions, including any employer additional contributions, 
on account of that person from revenue sources other than funds 
provided under the federal Comprehensive Training and Employment 
Act, or the person agrees in writing to make the required 
employer contribution in addition to the required employee 
contribution. 
    Sec. 6.  Minnesota Statutes 1990, section 422A.13, 
subdivision 2, is amended to read: 
    Subd. 2.  Subject to the limitations stated in sections 
422A.01 to 422A.25, any an employee in the contributing class 
who shall have been was employed by the city for ten or more 
years and shall have attained attains the established age for 
retirement, or shall have been was employed by the city for 30 
or more years all, as determined by the retirement board, shall 
be entitled to may retire.  Any employee in the contributing 
class shall be retired upon reaching the age of 70 regardless of 
the provisions of the veterans preference act and receive a 
service allowance as specified in sections 356.30, 356.32, or 
422A.01 to 422A.25. 
    Sec. 7.  Minnesota Statutes 1990, section 422A.16, 
subdivision 1, is amended to read: 
    Subdivision 1.  Any member of the contributing class who 
becomes permanently separated from the service of the city after 
20 three or more years of service to the city may, by an 
instrument in writing filed with the retirement board within 30 
days after such separation becomes permanent, elect to allow the 
member's contributions to the fund to the date of separation to 
remain on deposit in the fund. 
    Sec. 8.  Minnesota Statutes 1990, section 422A.16, 
subdivision 3, is amended to read: 
    Subd. 3.  If such contributing member dies before reaching 
the age of 65 years, or having attained the age of 65 years 
without having made the election provided for herein, the net 
accumulated amount of deductions from the member's salary, pay 
or compensation plus interest to the member's credit on date of 
death shall must be paid to such person, or persons, as the 
member shall have nominated by written designation filed with 
the retirement board, in such form as the retirement board shall 
require.  If the employee fails to make a designation, or if the 
person or persons designated by the employee is not living to 
receive payment, the net accumulated amount of deductions from 
the employee's salary, pay, or compensation, plus interest to 
the credit of such employee on date of death shall must be paid 
to the employee's estate.  The net accumulated city 
deposits shall must be paid to a beneficiary designated by such 
contributing member in such form as the retirement board shall 
require, who shall be the surviving spouse, or surviving child, 
or children of such member.  If there be is no surviving spouse, 
or surviving child or children, deposits shall must be paid to a 
person actually dependent on and receiving principal support 
from such member or surviving mother or father, or surviving 
brother or sister, or surviving children of the deceased brother 
or sister of such member. 
    If the beneficiary designated by the member is not one of 
the class of persons named in the preceding paragraph, such 
benefit from the accumulations of city deposits shall be paid in 
the following order:  (1) to the surviving spouse, the whole 
thereof; (2) if there be no surviving spouse, to the surviving 
children, share and share alike; (3) if there be no surviving 
spouse or child, or children, to the dependent or dependents of 
the member, share and share alike; (4) if there be no surviving 
spouse, child, or children, or dependents, to the surviving 
mother and father, share and share alike; (5) if there be no 
surviving mother and father, to the surviving brothers and 
sisters of the member, in equal shares; (6) and if there be no 
surviving brothers and sisters, to the surviving children of the 
deceased brothers and sisters of the member, in equal shares; 
(7) and if there be no person named in this paragraph who 
survives the member, the accumulation of city deposits shall 
must be canceled. 
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 1 to 8 are effective July 1, 1991. 
    Presented to the governor May 23, 1991 
    Signed by the governor May 27, 1991, 10:55 p.m.