Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1992, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1992
CHAPTER 432-H.F.No. 2137
An act relating to retirement; the Minnesota state
retirement system and the public employees retirement
association; making various changes to administration,
benefits, and investment practices; amending Minnesota
Statutes 1990, sections 352.01, subdivision 2b;
352.029, subdivisions 1 and 2; 352.113, subdivisions
1, 3, 4, and 10; 352.12, subdivision 1; 352.22,
subdivision 3; 352D.12; 353.01, subdivision 28;
353.27, subdivision 10; 353.29, subdivision 7; 353.33,
subdivisions 1, 6, 6a, and 6b; 353.34, subdivision 2;
353.65, subdivision 1; 353.656, subdivision 5;
353.659; 353.68, subdivision 4; 353A.02, subdivision
12; 353A.04, subdivision 2; 353A.05, subdivision 3;
353A.07, subdivision 3; 353A.08, subdivision 6, and by
adding a subdivision; 353A.09, subdivision 1; 353A.10,
subdivision 4, and by adding a subdivision; 356.30,
subdivision 1; 356.302, subdivision 6; 356.303,
subdivision 3; 490.124, subdivision 11; Minnesota
Statutes 1991 Supplement, sections 353.01,
subdivisions 2b, 16, and 20; 353.27, subdivisions 12
and 12b; 353.31, subdivision 1; 353.32, subdivision
1a; 353.64, subdivision 5a; 353.657, subdivisions 1,
2, and 2a; 353A.03; 353A.06; 353D.01, subdivision 2;
353D.02; 353D.03; 353D.04, subdivision 1; 353D.05,
subdivisions 2 and 3; 353D.07, subdivisions 2 and 3;
353D.12, subdivision 1; Laws 1990, chapter 570,
article 8, section 14, subdivision 1, as amended; Laws
1991, chapter 269, article 2, section 13; proposing
coding for new law in Minnesota Statutes, chapter 353;
repealing Minnesota Statutes 1990, sections 352.029,
subdivision 4; 353.656, subdivision 7; and 353.71,
subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MINNESOTA STATE RETIREMENT SYSTEM
Section 1. Minnesota Statutes 1990, section 352.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not
include:
(1) elective state officers;
(2) students employed by the University of Minnesota, the
state universities, and community colleges unless approved for
coverage by the board of regents, the state university board, or
the state board for community colleges, as the case may be;
(3) employees who are eligible for membership in the state
teachers retirement association except employees of the
department of education who have chosen or may choose to be
covered by the Minnesota state retirement system instead of the
teachers retirement association;
(4) employees of the University of Minnesota who are
excluded from coverage by action of the board of regents;
(5) officers and enlisted personnel in the national guard
and the naval militia who are assigned to permanent peacetime
duty and who under federal law are or are required to be members
of a federal retirement system;
(6) election officers;
(7) persons engaged in public work for the state but
employed by contractors when the performance of the contract is
authorized by the legislature or other competent authority;
(8) officers and employees of the senate and house of
representatives or a legislative committee or commission who are
temporarily employed;
(9) receivers, jurors, notaries public, and court employees
who are not in the judicial branch as defined in section 43A.02,
subdivision 25, except referees and adjusters employed by the
department of labor and industry;
(10) patient and inmate help in state charitable, penal,
and correctional institutions including the Minnesota veterans
home;
(11) persons employed for professional services where the
service is incidental to regular professional duties and whose
compensation is paid on a per diem basis;
(12) employees of the Sibley House Association;
(13) employees of the ladies of the Grand Army of the
Republic;
(14) the members of any state board or commission who serve
the state intermittently and are paid on a per diem basis; the
secretary, secretary-treasurer, and treasurer of those boards if
their compensation is $500 or less per year, or, if they are
legally prohibited from serving more than two consecutive terms
and their total service is required by law to be less than ten
years; and the board of managers of the state agricultural
society and its treasurer unless the treasurer is also its
full-time secretary;
(15) (14) state troopers;
(16) (15) temporary employees of the Minnesota state fair
employed on or after July 1 for a period not to extend beyond
October 15 of that year; and persons employed at any time by the
state fair administration for special events held on the
fairgrounds;
(17) (16) emergency employees in the classified service;
except that if an emergency employee, within the same pay
period, becomes a provisional or probationary employee on other
than a temporary basis, the employee shall be considered a
"state employee" retroactively to the beginning of the pay
period;
(18) (17) persons described in section 352B.01, subdivision
2, clauses (2) to (5);
(19) (18) temporary employees in the classified service,
temporary employees in the unclassified service appointed for a
definite period of not more than six months and employed less
than six months in any one-year period and seasonal help in the
classified service employed by the department of revenue;
(20) trainees paid under budget classification number 41,
and other (19) trainee employees, except those listed in
subdivision 2a, clause (10);
(21) (20) persons whose compensation is paid on a fee
basis;
(22) (21) state employees who in any year have credit for
12 months service as teachers in the public schools of the state
and as teachers are members of the teachers retirement
association or a retirement system in St. Paul, Minneapolis, or
Duluth;
(23) (22) employees of the adjutant general employed on an
unlimited intermittent or temporary basis in the classified and
unclassified service for the support of army and air national
guard training facilities;
(24) (23) chaplains and nuns who have taken a vow of
poverty as members of a religious order are excluded from
coverage under the federal old age, survivors, disability, and
health insurance program for the performance of service as
specified in United States Code, title 42, section 410(a)(8)(A),
as amended, if no irrevocable election of coverage has been made
under section 3121(r) of the Internal Revenue Code of 1954, as
amended;
(25) labor service employees employed as a laborer 1 on an
hourly basis;
(26) (24) examination monitors employed by departments,
agencies, commissions, and boards to conduct examinations
required by law;
(27) (25) members of appeal tribunals, exclusive of the
chair, to which reference is made in section 268.10, subdivision
4;
(28) (26) persons appointed to serve as members of
fact-finding commissions or adjustment panels, arbitrators, or
labor referees under chapter 179;
(29) (27) temporary employees employed for limited periods
under any state or federal program for training or
rehabilitation including persons employed for limited periods
from areas of economic distress except skilled and supervisory
personnel and persons having civil service status covered by the
system;
(30) (28) full-time students employed by the Minnesota
historical society intermittently during part of the year and
full-time during the summer months;
(31) (29) temporary employees, appointed for not more than
six months, of the metropolitan council and of any of its
statutory boards, if the board members are appointed by the
metropolitan council;
(32) (30) persons employed in positions designated by the
department of employee relations as student workers;
(33) (31) any person who is 65 years of age or older when
appointed and who does not have allowable service credit for
previous employment, unless the employee gives notice to the
director within 60 days after appointment that coverage is
desired;
(34) (32) members of trades employed by the metropolitan
waste control commission with trade union pension plan coverage
under a collective bargaining agreement first employed after
June 1, 1977;
(35) (33) persons employed in subsidized on-the-job
training, work experience, or public service employment as
enrollees under the federal Comprehensive Employment and
Training Act after March 30, 1978, unless the person has as of
the later of March 30, 1978, or the date of employment
sufficient service credit in the retirement system to meet the
minimum vesting requirements for a deferred annuity, or the
employer agrees in writing on forms prescribed by the director
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 Employment and Training Act, or the person agrees
in writing on forms prescribed by the director to make the
required employer contribution in addition to the required
employee contribution;
(36) (34) off-duty peace officers while employed by the
metropolitan transit commission under section 629.40,
subdivision 5; and
(37) (35) persons who are employed as full-time
firefighters by the department of military affairs and as
firefighters are members of the public employees police and fire
fund.
Sec. 2. Minnesota Statutes 1990, section 352.029,
subdivision 1, is amended to read:
Subdivision 1. [QUALIFICATIONS.] A former state employee
who is An employee of a labor organization that is an exclusive
bargaining agent representing state employees or a state
employee on leave of absence without pay to provide service as
an employee or officer of a labor organization that is an
exclusive bargaining agent representing state employees, may
choose under subdivision 2 to be covered by the system for
service with the labor organization unless specifically excluded
under section 352.01, subdivision 2b.
Sec. 3. Minnesota Statutes 1990, section 352.029,
subdivision 2, is amended to read:
Subd. 2. [ELECTION.] A person described in subdivision 1
shall be covered by the system if written election to be covered
is delivered to the executive director before December 31, 1985
1992, within 90 days of being employed by the labor
organization, or within 90 days of starting the first leave of
absence with an exclusive bargaining agent, whichever is later.
Sec. 4. Minnesota Statutes 1990, section 352.113,
subdivision 1, is amended to read:
Subdivision 1. [AGE AND SERVICE REQUIREMENTS.] Any An
employee covered by the system, who is less than normal
retirement age and who becomes totally and permanently disabled
after three or more years of allowable service, is entitled to a
disability benefit in an amount provided in subdivision 3. If
the disabled employee's state service has terminated at any
time, the employee must have at least two years of allowable
service after last becoming a state employee covered by the
system. Refunds may be repaid under section 352.23 before the
effective accrual date of the disability benefit under
subdivision 2.
Sec. 5. Minnesota Statutes 1990, section 352.113,
subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF BENEFITS.] The total and
permanent disability benefit must be computed in the manner
provided in section 352.115. The disability benefit shall be
the normal annuity without reduction for each month the employee
is under normal retirement age 65 at the time of becoming
disabled. A disabled employee may choose to receive the normal
disability benefit or an optional annuity as provided in section
352.116, subdivision 3. This choice must be made before the
start of payment of the disability benefit and is effective the
date on which the disability begins to accrue as provided in
subdivision 2.
Sec. 6. Minnesota Statutes 1990, section 352.113,
subdivision 4, is amended to read:
Subd. 4. [MEDICAL EXAMINATIONS; AUTHORIZATION FOR PAYMENT
OF BENEFIT.] An applicant shall provide medical evidence to
support an application for total and permanent disability. The
director shall have the employee examined by at least one
additional licensed physician designated by the medical
advisor. The physicians shall make written reports to the
director concerning the employee's disability including medical
opinions as to whether the employee is permanently and totally
disabled within the meaning of section 352.01, subdivision 17.
The director shall also obtain written certification from the
employer stating whether the employee is on sick leave of
absence because of a disability that will prevent further
service to the employer and as a consequence the employee is not
entitled to compensation from the employer. The medical advisor
shall consider the reports of the physicians and any other
evidence supplied by the employee or other interested parties.
If the medical advisor finds the employee totally and
permanently disabled, the advisor shall make appropriate
recommendation to the director in writing together with the date
from which the employee has been totally disabled. The director
shall then determine the propriety of authorizing payment of a
disability benefit as provided in this section. The employee
must be on approved leave of absence from the employer to be
eligible to apply for a total and permanent disability benefit,
but the fact that an employee is placed on leave of absence
without compensation because of disability does not bar that
employee from receiving a disability benefit. Unless payment of
a disability benefit has terminated because the employee is no
longer totally disabled, or because the employee has
reached normal retirement age 65 as provided in this section,
the disability benefit shall cease with the last payment
received by the disabled employee or which had accrued during
the lifetime of the employee unless there is a spouse surviving;
in that event the surviving spouse is entitled to the disability
benefit for the calendar month in which the disabled employee
died.
Sec. 7. Minnesota Statutes 1990, section 352.113,
subdivision 10, is amended to read:
Subd. 10. [EMPLOYEE AGAIN DISABLED AFTER RESUMING
EMPLOYMENT.] If a disabled employee resumes gainful employment
with the state and is not entitled to continued payment of a
disability benefit as provided in subdivision 7, the right to a
disability benefit ends when the employee has been employed for
one year thereafter. If the employee again becomes totally and
permanently disabled before reaching normal retirement age 65,
application for a disability benefit may again be made. If the
employee is entitled to a disability benefit it must be computed
as provided in subdivision 9.
Sec. 8. Minnesota Statutes 1990, section 352.12,
subdivision 1, is amended to read:
Subdivision 1. [DEATH BEFORE TERMINATION OF SERVICE.] If
an employee dies before state service has terminated and neither
a survivor annuity nor a reversionary annuity is payable, or if
a former employee who has sufficient service credit to be
entitled to an annuity dies before the benefit has become
payable, the director shall make a refund to the last designated
beneficiary or, if there is none, to the surviving spouse or, if
none, to the employee's surviving children in equal shares or,
if none, to the employee's surviving parents in equal shares or,
if none, to the representative of the estate in an amount equal
to the accumulated employee contributions plus interest thereon
to the date of death at the rate of six percent per annum
compounded annually. Interest must be computed to the first day
of the month in which the refund is processed and based on
fiscal year balances. Upon the death of an employee who has
received a refund that was later repaid in full, interest must
be paid on the repaid refund only from the date of repayment.
If the repayment was made in installments, interest must be paid
only from the date installment payments began. The designated
beneficiary, surviving spouse, or representative of the estate
of an employee who had received a disability benefit is not
entitled to interest upon any balance remaining to the
decedent's credit in the fund at the time of death.
Sec. 9. Minnesota Statutes 1990, section 352.22,
subdivision 3, is amended to read:
Subd. 3. [DEFERRED ANNUITY.] (a) Any An employee with who
has at least three years of allowable service when termination
occurs may elect to leave the accumulated contributions in the
fund and thereby be entitled to a deferred retirement annuity.
This The annuity must be computed as provided by under the law
in effect when state service terminated, on the basis of
allowable service before termination of service.
(b) An employee on layoff or on leave of absence without
pay, except a leave of absence for health reasons, who does not
return to state service shall have any an annuity, deferred
annuity, or other benefit to which the employee may become
entitled computed under the law in effect on the employee's last
working day.
(c) No application for a deferred annuity shall may be made
more than 60 days before the time the former employee reaches
the required age for entitlement to the payment of the annuity.
The deferred annuity shall begin begins to accrue no earlier
than 60 days before the date the application is filed in the
office of the system, but not (1) before the date the employee
reaches the required age for entitlement to the annuity nor (2)
before the day following the termination of state service in a
position not covered by the retirement system nor (3) before the
day following the termination of employment in a position that
requires the employee to be a member of either the public
employees retirement association or the teachers retirement
association.
(d) Application for the accumulated contributions left on
deposit with the fund may be made at any time after 30 days
following the date of termination of service.
Sec. 10. Minnesota Statutes 1990, section 490.124,
subdivision 11, is amended to read:
Subd. 11. [OPTIONAL ANNUITIES.] No survivor or death
benefits may be paid in connection with the death of a judge who
retires after December 31, 1973, except as otherwise provided in
sections 490.121 to 490.132. Within 30 days before retirement,
Except as provided in subdivision 10, a judge may elect to
receive, instead of the normal retirement annuity, an optional
retirement annuity in the form of an annuity payable for a
period certain and for life after that period, a joint and
survivor annuity without reinstatement in the event of the
designated beneficiary predeceasing the retired judge, or a
joint and survivor annuity with reinstatement in the event of
the designated beneficiary predeceasing the retired judge. An
optional retirement annuity must be actuarially equivalent to a
single life single-life annuity with no term certain and must be
established by the board of directors of the Minnesota state
retirement system. In establishing these optional retirement
annuity forms, the board shall obtain the written recommendation
of the actuary retained by the legislative commission on
pensions and retirement. The recommendations must be a part of
the permanent records of the board.
Sec. 11. [REPEALER.]
Minnesota Statutes 1990, section 352.029, subdivision 4, is
repealed.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective the day following final
enactment.
ARTICLE 2
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
Section 1. Minnesota Statutes 1990, section 352D.12, is
amended to read:
352D.12 [TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.]
An employee who is a participant in the unclassified
program and who has prior service credit in a covered plan under
chapters 352, 353, 354, 354A, and 422A may, within the time
limits in this section, elect to transfer to the unclassified
program accumulated employee and equal employer contributions
with interest at six percent a year compounded annually, based
on fiscal year balances.
If a participant has taken a refund from a fund listed in
this section, the participant may repay the refund to that fund,
notwithstanding any restrictions on repayment to that fund, plus
six percent interest a year compounded annually and have the
accumulated employee and equal employer contributions
transferred to the unclassified program with interest at six
percent a year compounded annually based on fiscal year
balances. If a person repays a refund and subsequently elects
to have the money transferred to the unclassified program, the
repayment amount, including interest, is added to the fiscal
year balance in the year which the repayment was made.
A participant electing to transfer prior service
contributions under this section must complete the application
for the transfer and repay any refund within one year of July 1,
1985 or the commencement of the employee's participation in the
unclassified program, whichever is later.
Sec. 2. Minnesota Statutes 1991 Supplement, section
353.01, subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following persons are
excluded from the meaning of "public employee":
(1) persons who are employed for professional services
where the service is incidental to regular professional duties,
determined on the basis that compensation for the service
amounts to no more than 25 percent of the person's total annual
gross earnings for all professional duties;
(2) election officers;
(3) independent contractors and their employees;
(4) patient and inmate personnel who perform services in
charitable, penal, or correctional institutions of a
governmental subdivision;
(5) members of boards and commissions who serve a
governmental subdivision intermittently unless their position on
the board or commission is the result of public employment
within the same governmental unit;
(6) employees who are hired for a period of less than six
consecutive months but not those employees who are hired for an
unlimited period but are serving a probationary period. If the
period of employment is extended beyond the six-month period and
the employee earns more than $425 from one governmental
subdivision in any one calendar month, the department head shall
report the employee for membership and require employee
deductions be made on behalf of the employee under section
353.27, subdivision 4. Membership eligibility of an employee
who holds concurrent temporary employment of six months or less
and nontemporary positions in one governmental subdivision must
be determined by the salary of each position. Membership
eligibility of an employee who holds nontemporary positions in
one governmental subdivision must be determined by the total
salary of all positions;
(7) appointed and elected employees whose actual
compensation from one governmental subdivision does not exceed
$425 per month, or whose annual compensation from one
governmental subdivision is stipulated in advance, in writing,
to be not more than $5,100 per calendar year or per school year
for school employees for employment expected to be of a full
year's duration or more than the prorated portion of $5,100 per
employment period for employment expected to be of less than a
full year's duration, except that members continue their
membership until termination of public service as defined in
subdivision 11a. Membership eligibility of an employee who
holds concurrent part-time positions under this clause must be
determined by the total salary of all such positions in one
governmental subdivision. If compensation from one governmental
subdivision to an employee under this paragraph exceeds $5,100
per calendar year or school year after being stipulated in
advance not to exceed that amount, the stipulation is no longer
valid and contributions must be made on behalf of the employee
in accordance with section 353.27, subdivision 12, from the
month in which the employee's earnings first exceeded $425;
(8) persons who first occupy an elected office after July
1, 1988, the compensation for which does not exceed $425 per
month;
(9) emergency employees who are employed by reason of work
caused by fire, flood, storm, or similar disaster;
(10) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of
and to contribute to any of the plans or funds administered by
the Minnesota state retirement system, the teachers retirement
association, the Duluth teachers retirement fund association,
the Minneapolis teachers retirement association, the St. Paul
teachers retirement fund association, the Minneapolis employees
retirement fund, or any police or firefighters relief
association governed by section 69.77 that has not consolidated
with the public employees police and fire fund retirement
association, or any police or firefighters relief association
that has consolidated with the public employees retirement
association but whose members have not elected the type of
benefit coverage provided by the public employees police and
fire fund as provided in under sections 353A.01 to 353A.10.
This clause must not be construed to prevent a person from being
a member of and contributing to the public employees retirement
association and also belonging to and contributing to another
public pension fund for other service occurring during the same
period of time. A person who meets the definition of "public
employee" in subdivision 2 by virtue of other service occurring
during the same period of time shall become becomes a member of
the association unless contributions are made to another public
retirement fund on the salary based on the other service or to
the teachers retirement association by a teacher as defined in
section 354.05, subdivision 2;
(11) police matrons who are employed in a police department
of a city who are transferred to the jurisdiction of a joint
city and county detention and corrections authority;
(12) persons who are excluded from coverage under the
federal old age, survivors, disability, and health insurance
program for the performance of service as specified in United
States Code, title 42, section 410(a)(8)(A), as amended through
January 1, 1987, if no irrevocable election of coverage has been
made under section 3121(r) of the Internal Revenue Code of 1954,
as amended;
(13) full-time students who are enrolled and are regularly
attending classes at an accredited school, college, or
university and who are not employed full time part-time
employees as defined by a governmental subdivision;
(14) resident physicians, medical interns, and pharmacist
residents and interns who are serving in a degree or residency
program in public hospitals and students who are serving in an
internship or residency program sponsored by an accredited
educational institution;
(15) appointed or elected officers who are paid entirely on
a fee basis and who were not members on June 30, 1971;
(16) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;
(17) persons exempt from licensure under section 125.031;
(18) persons employed by the Minneapolis community
development agency;
(19) except as provided in section 353.86, volunteer
ambulance service personnel, as defined in subdivision 35, but
persons who serve as volunteer ambulance service personnel may
still qualify as public employees under subdivision 2 and may be
members of the public employees retirement association and
participants in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment service other than
service as volunteer ambulance service personnel; and
(20) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in
activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still
qualify as a public employee under subdivision 2 and may be a
member of the public employees retirement association and a
participant in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment activities other
than those as a volunteer firefighter.
Sec. 3. Minnesota Statutes 1991 Supplement, section
353.01, subdivision 16, is amended to read:
Subd. 16. [ALLOWABLE SERVICE.] (a) "Allowable service"
means service during years of actual membership in the course of
which employee contributions were made, periods covered by
payments in lieu of salary deductions under section 353.35, and
service in years during which the public employee was not a
member but for which the member later elected, while a member,
to obtain credit by making payments to the fund as permitted by
any law then in effect.
(b) "Allowable service" also means a period of authorized
leave of absence with pay from which deductions for employee
contributions are made, deposited, and credited to the fund.
(c) "Allowable service" also means a period of authorized
leave of absence without pay that does not exceed one year, and
during or for which a member obtained credit by payments to the
fund made in place of salary deductions, provided that the
payments are made in an amount or amounts based on the member's
average salary on which deductions were paid for the last six
months of public service, or for that portion of the last six
months while the member was in public service, to apply to the
period in either case immediately preceding commencement of the
leave of absence. If the employee elects to pay employee
contributions for the period of any leave of absence without
pay, or for any portion of the leave, the employee shall also,
as a condition to the exercise of the election, pay to the fund
an amount equivalent to both the required employer and
additional employer contributions for the employee. The payment
must be made within one year from the date the leave of absence
terminates. The employer by appropriate action of its governing
body, made a part of its official records, before the date of
the first payment of the employee contribution, may certify to
the association in writing that it will cause to be paid its
commitment to pay the employer and additional employer
contributions from the proceeds of a tax levy made under section
353.28. Payments under this paragraph must include interest at
the rate of six percent a year from the date of the termination
of the leave of absence to the date payment is made.
(d) "Allowable service" also means a periodic, repetitive
leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per
annual normal work cycle as certified to the association by the
employer. A participating member obtains service credit by
making employee contributions in an amount or amounts based on
the member's average salary that would have been paid if the
leave had not been taken. The employer shall pay the employer
and additional employer contributions on behalf of the
participating member. The employee and the employer are
responsible to pay interest on their respective shares at the
rate of six percent a year, compounded annually, from the date
or dates that the contributions were first payable until full
payment is made. An employer shall also make the employer and
additional employer contributions, plus six percent interest,
compounded annually, on behalf of an employee who makes employee
contributions but terminates public service. The employee
contributions must be made within one year after the end of the
annual normal working cycle or within 20 days after termination
of public service, whichever is applicable. The association
shall prescribe the manner and forms to be used by a
governmental subdivision in administering a periodic, repetitive
leave.
(e) "Allowable service" also means a period during which a
member is on an authorized sick leave of absence, without pay
limited to one year,.
(f) "Allowable service" also means an authorized temporary
layoff, or under subdivision 12.
(g) "Allowable service" also means a maternity, paternity,
or adoption leave. The association will shall grant a maximum
of two months service credit for a maternity, paternity, or
adoption leave upon documentation from the member's governmental
subdivision. A member on personal leave of absence who provides
the association with a birth certificate or other evidence of
birth or adoption during the personal leave time period will be
granted also receives up to two months of service credit.
(e) (h) "Allowable service" also means a period during
which a member is on an authorized leave of absence to enter
military service, provided that the member returns to public
service upon discharge from military service under section
192.262 and pays into the fund employee contributions based upon
the employee's salary at the date of return from military
service. Payment must be made within five years of the date of
discharge from the military service. The amount of these
contributions must be in accord with the contribution rates and
salary limitations, if any, in effect during the leave, plus
interest at six percent a year compounded annually from the date
of return to public service to the date payment is made. The
matching employer contribution and additional employer
contribution under section 353.27, subdivisions 3 and 3a, must
be paid by the department employing the member upon return to
public service if the member makes the employee contributions.
The governmental subdivision involved may appropriate money for
those payments. A member may not receive credit for a voluntary
extension of military service at the instance of the member
beyond the initial period of enlistment, induction, or call to
active duty.
(f) (i) For calculating benefits under sections 353.30,
353.31, 353.32, and 353.33 for state officers and employees
displaced by the community corrections act, chapter 401, and
transferred into county service under section 401.04, "allowable
service" means combined years of allowable service as defined in
paragraphs (a) to (e) (h) and section 352.01, subdivision 11.
(g) (j) For a public employee who has prior service covered
by a local police or firefighters relief association that has
consolidated with the public employees police and fire fund
retirement association, and who has elected the type of benefit
coverage provided by the public employees police and fire
fund benefit plan as provided in under section 353A.08 following
the consolidation, "applicable service" is a period of service
credited by the local police or firefighters relief association
as of the effective date of the consolidation based on law and
on bylaw provisions governing the relief association on the date
of the initiation of the consolidation procedure.
Sec. 4. Minnesota Statutes 1991 Supplement, section
353.01, subdivision 20, is amended to read:
Subd. 20. [SURVIVING SPOUSE.] "Surviving spouse" means the
spouse of a deceased member or disabilitant who was legally
married to the member at the time of death, or at the time the
member became totally and permanently disabled.
Sec. 5. Minnesota Statutes 1990, section 353.01,
subdivision 28, is amended to read:
Subd. 28. [RETIREMENT.] "Retirement" means the
withdrawal of a member from active public service by a member
who is paid a retirement annuity thereafter and commences with
the that begins to accrue on a date designated by the board of
trustees when the retirement annuity shall first accrue to the
former member after withdrawal from active public service. This
date shall determine any determines the rights specified in this
chapter which occur either before or after retirement, as the
case may be; but if there is not. A right to retirement must
not accrue without a complete and continuous separation from
public service for 30 days following the withdrawal from public
service for the purpose of retirement, no rights shall accrue
thereunder and retirement shall not be accomplished
thereby. Notwithstanding the 30-day separation requirement, a
member of the defined benefit plan under this chapter, who also
participates in the public employees defined contribution plan
under chapter 353D for other public service, may be paid, if
eligible, a retirement annuity from the defined benefit plan
while participating in the defined contribution plan.
Sec. 6. Minnesota Statutes 1990, section 353.27,
subdivision 10, is amended to read:
Subd. 10. [EMPLOYERS; FURNISH COPIES OF PAYROLL
ABSTRACTS EMPLOYER EXCLUSION REPORTS.] The head of each a
department is required to shall annually furnish the executive
director with a carbon or duplicate copy of the departmental
payroll abstracts for the last full pay period during the month
of May for school districts and the last pay period covering
calendar-year earnings for all other governmental subdivisions,
respectively, in each year. Instead of a duplicate copy of the
payroll abstract, the employer may submit an exception report
listing only those employees who worked the last full pay period
of May or December, but who are not members of the association.
Minimum reporting requirements to be shown on either the payroll
abstract or exception report include: (1) name of the
governmental subdivision and department identification; (2) the
association's assigned unit number and unique code; (3) pay
period coverage dates; (4) any employee deductions; (5) gross
salary for the pay period; (6) each employee's year-to-date
gross pay; and (7) the reason for any exclusion an exclusion
report listing only those employees in potentially PERA-eligible
positions who were not reported as members of the association
and who worked during the school year for school employees and
calendar year for nonschool employees. The department head must
certify the accuracy and completeness of the exclusion report to
the association. The executive director shall prescribe the
manner and forms, including standardized exclusion codes, to be
used by a governmental subdivision in preparing and filing
exclusion reports. The executive director shall also check the
copies of all payroll abstracts against the membership records
of the association the exclusion report to ascertain whether any
omissions have been made by a department head in the reporting
of new public employees for membership. The head of any
department shall furnish a carbon or duplicate copy of the
department payroll abstract at the request of the executive
director. The executive director may delegate an association
employee by appointment, in accordance with under section
353.03, subdivision 3a, paragraph (b), clause (5), to conduct a
field audit to review the payroll records of a governmental
subdivision.
Sec. 7. Minnesota Statutes 1991 Supplement, section
353.27, subdivision 12, is amended to read:
Subd. 12. [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In
the case of omission of required deductions from the salary of
an employee, the department head shall immediately, upon
discovery, report the employee for membership and require deduct
the employee deductions under subdivision 4. Upon receipt of
billing from the association, the omitted employee
deductions due for the 60-day period preceding membership must
be deducted upon receipt of billing from the association from
the employee's next salary payment and remitted to the
association. The employee shall pay omitted employee deductions
due for the 60 days prior to the end of the last pay period in
the omission period during which salary was earned. The
employer shall pay any remaining omitted employee deductions and
any omitted employer contributions, plus cumulative interest at
the rate of six percent a year, compounded annually, from the
date or dates each omitted employee contribution was first
payable.
(b) An employer shall not hold an employee liable for
omitted employee deductions beyond the pay period that covers
the 60th day preceding membership dates under paragraph (a), nor
attempt to recover from the employee those employee deductions
paid by the employer on behalf of the employee. Omitted
deductions due under paragraph (a) which are not paid by the
employee constitute a liability of the employer that failed to
deduct the omitted deductions from the employee's salary. The
employer shall make payment with interest at the rate of six
percent compounded annually. Omitted employee deductions are no
longer due if an employee terminates public service before
making payment of omitted employee deductions to the
association, but the employer remains liable to pay omitted
employer contributions plus interest at the rate of six percent
compounded annually from the date the contributions were first
payable.
(c) The association may not commence action for the
recovery of omitted employee deductions and employer
contributions after the expiration of three calendar years after
the calendar year in which the contributions and deductions were
omitted. No payment may be made or accepted unless the
association has already commenced action for recovery of omitted
deductions. An action for recovery commences on the date of the
mailing of any written correspondence from the association
requesting information from the governmental subdivision upon
which to determine whether or not omitted deductions occurred.
Sec. 8. Minnesota Statutes 1991 Supplement, section
353.27, subdivision 12b, is amended to read:
Subd. 12b. If deductions were omitted from salary
adjustments or final salary of a terminated employee who is
immediately eligible to draw a monthly benefit, the employer
shall pay the omitted employer and employer additional
contributions plus interest on both and the employer and
employee amounts due. The employee shall pay the employee
deductions within six months of an initial notification from the
association of eligibility to pay omitted deductions or the
employee forfeits the right to make the payment.
Sec. 9. Minnesota Statutes 1990, section 353.29,
subdivision 7, is amended to read:
Subd. 7. [ANNUITIES; ACCRUAL.] Except as to elected public
officials, all a retirement annuities annuity granted
under the provisions of this chapter shall commence begins with
the first day of the first calendar month next succeeding after
the date of termination of public service and shall. The
annuity must be paid in equal monthly installments, but no
payment shall and does not accrue beyond the end of the month,
in which entitlement to such the annuity has terminated. If the
annuitant dies prior to negotiating the check for the month in
which death occurs, payment will must be made to the surviving
spouse, or if none, to the designated beneficiary, or if none,
to the estate.
Any An annuity granted to an elective public official shall
accrue accrues on the day following expiration of the public
office held or expiration of the right thereto, and to hold that
office. The annuity for that the month shall be during which
the expiration occurred is prorated accordingly. No An annuity,
once granted, shall must not be increased, decreased, or revoked
except as provided in under this chapter. No An annuity payment
shall may be made retroactive for more than three months up to
one year prior to that month in which a complete application is
received by the executive director as provided in under
subdivision 4.
Sec. 10. Minnesota Statutes 1991 Supplement, section
353.31, subdivision 1, is amended to read:
Subdivision 1. [BENEFITS FOR SURVIVING SPOUSE AND
DEPENDENT CHILDREN; BEFORE RETIREMENT.] Upon the death of a
basic member before retirement or upon the death of a basic
member who was disabled and receiving disability benefits under
section 353.33 at the time of death who has had at least 18
months of credited allowable service, the surviving spouse and
dependent child or children of the member, as defined in section
353.01, subdivisions 15 and 20, are entitled to receive the
monthly benefit provided below:
(a) Surviving spouse 50 percent of the member's
monthly average salary in
effect over the last full
six months of allowable
service preceding the month
in which death occurred
(b) Each dependent child 10 percent of the member's
monthly average salary in
effect over the last full
six months of allowable
service preceding the month
in which death occurred
Notwithstanding the definition of surviving spouse under section
353.01, subdivision 20, a former spouse of the member, if any,
is entitled to a portion of the monthly surviving spouse benefit
if stipulated under the terms of a marriage dissolution decree
that is filed with the association. If there is no surviving
spouse or child or children, a former spouse may be entitled to
a lump-sum refund payment under section 353.32, subdivision 1,
if provided for in a marriage dissolution decree but not a
monthly surviving spouse benefit even if required by the decree.
Sec. 11. Minnesota Statutes 1991 Supplement, section
353.32, subdivision 1a, is amended to read:
Subd. 1a. [SURVIVING SPOUSE OPTIONAL ANNUITY.] If a member
or former member who has attained at least age 50 and has credit
for not less than three years of allowable service or who has
credit for not less than 30 years of allowable service,
regardless of age attained, dies before the annuity or
disability benefit begins to accrue in accordance with under
section 353.29, subdivision 7, or 353.33, subdivision 2,
notwithstanding any designation of beneficiary to the contrary,
the surviving spouse may elect to receive, instead of a refund
with interest under subdivision 1, or surviving spouse benefits
otherwise payable under section 353.31, an annuity equal to the
100 percent joint and survivor annuity that the member could
have qualified for had the member terminated service on the date
of death.
Notwithstanding the definition of surviving spouse in
section 353.01, subdivision 20, a former spouse of the member,
if any, is entitled to a portion of the monthly surviving spouse
optional annuity if stipulated under the terms of a marriage
dissolution decree filed with the association. If there is no
surviving spouse or child or children, a former spouse may be
entitled to a lump-sum refund payment under subdivision 1, if
provided for in a marriage dissolution decree but not a monthly
surviving spouse optional annuity despite the terms of a
marriage dissolution decree filed with the association.
The surviving spouse may apply for the annuity at any time
after the date on which the deceased employee would have
attained the required age for retirement based on the employee's
allowable service. The annuity must be computed under sections
353.29, subdivisions 2 and 3; 353.30, subdivisions 1, 1a, 1b,
1c, and 5; and 353.31, subdivision 3. Sections 353.34,
subdivision 3, and 353.71, subdivision 2, apply to a deferred
annuity payable under this subdivision. No payment may accrue
beyond the end of the month in which entitlement to the annuity
has terminated. An amount equal to any excess of the
accumulated contributions that were credited to the account of
the deceased employee over and above the total of the annuities
paid and payable to the surviving spouse must be paid to the
deceased member's last designated beneficiary or, if none, to
the legal representative of the estate of the deceased member.
A member may specify in writing that this subdivision does not
apply and that payment may be made only to the designated
beneficiary as otherwise provided by this chapter.
Sec. 12. Minnesota Statutes 1990, section 353.33,
subdivision 1, is amended to read:
Subdivision 1. [AGE, SERVICE, AND SALARY REQUIREMENTS.]
Any A member who becomes totally and permanently disabled before
normal retirement age and after three years of allowable service
shall be is entitled to a disability benefit in an amount
provided in under subdivision 3. If the disabled person's
public service has terminated at any time, at least two of the
required three years of allowable service must have been
rendered after last becoming a member. Any member whose average
salary is less than $75 per month shall not be entitled to a
disability benefit. A repayment of a refund may be made
before within six months after the effective date of disability
benefits under subdivision 2 or within six months after the date
of the filing of the disability application, whichever is
sooner. No purchase of prior service or payment made in lieu of
salary deductions otherwise authorized pursuant to under section
353.01, subdivision 16, 353.017, subdivision 4, or 353.36,
subdivision 2, may be made after the occurrence of the
disability for which an application pursuant to under this
section is filed.
Sec. 13. Minnesota Statutes 1990, section 353.33,
subdivision 6, is amended to read:
Subd. 6. [CONTINUING ELIGIBILITY FOR BENEFITS.] The
eligibility for continuation of disability benefits shall be
determined by the association, which has authority to require
periodic examinations and evaluations of disabled members as
frequently as deemed necessary. Disability benefits are
contingent upon a disabled person's participation in a
vocational rehabilitation program if the executive director
determines that the disabled person may be able to return to a
gainful occupation. If a member is found to be no longer
totally and permanently disabled and is reinstated to the
payroll, payments shall be made for no more than 60 days must
cease the first of the month following the reinstatement to the
payroll.
Sec. 14. Minnesota Statutes 1990, section 353.33,
subdivision 6a, is amended to read:
Subd. 6a. [MEDICAL ADVISER.] The state commissioner of
health executive director may contract with licensed physicians
or such other licensed physician physicians on the staff of the
state commissioner of health as the commissioner may designate
shall, as designated by the commissioner, to be the medical
adviser of the executive director association.
Sec. 15. Minnesota Statutes 1990, section 353.33,
subdivision 6b, is amended to read:
Subd. 6b. [DUTIES OF THE MEDICAL ADVISER.] At the request
of the executive director, the medical adviser shall designate
licensed physicians to examine applicants for disability
benefits. The medical adviser shall pass upon all and review
the medical reports based upon such these examinations required
to determine whether applicants are an applicant is totally and
permanently disabled as defined in section 353.01, subdivision
19, or disabled as defined in section 353.656, or eligible for
continuation of disability benefits under subdivision 6. The
medical examiner shall investigate also review, at the request
of the executive director, all health and medical statements and
certificates by or on behalf of said applicants in connection
with an applicant for disability benefits, and shall report in
writing to the executive director conclusions and
recommendations on all those matters referred for advice.
Sec. 16. Minnesota Statutes 1990, section 353.34,
subdivision 2, is amended to read:
Subd. 2. [REFUND WITH INTEREST.] Except as provided in
subdivision 1, any person who ceases to be a public employee
shall receive a refund in an amount equal to accumulated
deductions with interest to the first day of the month in which
the refund is processed at the rate of six percent per annum
compounded annually based on fiscal year balances. If a person
repays a refund and subsequently applies for another refund, the
repayment amount, including interest, is added to the fiscal
year balance in which the repayment was made.
Sec. 17. Minnesota Statutes 1991 Supplement, section
353.64, subdivision 5a, is amended to read:
Subd. 5a. A member of the police and fire fund continues
to be a member of that fund if transferred to a different
position with associated police or fire department functions in
the same department or a related department in the same
governmental subdivision provided the governing body sends a
copy of a resolution to that effect to the association and the
member meets the eligibility criteria under subdivision 2 or 3.
A police and fire fund member who is elected or assumes an
appointive position, including but not limited to, the positions
of city council member, city manager, and finance director is
not eligible to retain membership in the public employees police
and fire fund.
Sec. 18. Minnesota Statutes 1990, section 353.65,
subdivision 1, is amended to read:
Subdivision 1. There is a special fund known as The
"public employees police and fire fund." In that fund there
shall be deposited is established for police officers and
firefighters who meet the eligibility criteria under section
353.64. Employee contributions, employer contributions, other
than the excess contribution established by section 69.031,
subdivision 5, paragraphs (2), clauses (b) and (c), and (3), and
other amounts authorized by law, including all employee and
employer contributions of members transferred. Within must be
deposited in the public employees police and fire fund are
accounts for each municipality known as the "local relief
association consolidation accounts," which are governed by
section 353A.09.
Sec. 19. Minnesota Statutes 1990, section 353.656,
subdivision 5, is amended to read:
Subd. 5. No disability benefit payment shall be made
except upon adequate proof furnished to the association of the
existence of such disability, and during the time when any such
benefits are being paid, the association shall have the right,
at reasonable times, to require the disabled member to submit
proof of the continuance of the disability claimed. Payment of
a disability benefit must cease the first of the month following
reinstatement to a position covered by the public employees
police and fire fund.
Sec. 20. Minnesota Statutes 1991 Supplement, section
353.657, subdivision 1, is amended to read:
Subdivision 1. In the event any a member of the police and
fire fund dies from any cause before retirement or after
becoming disabled and receiving disability benefits, the
association shall grant survivor benefits to a surviving spouse,
as defined in section 353.01, subdivision 20, and who was
married to the member for a period of at least one year, except
that if death occurs in the line of duty no time limit is
required. The association shall also grant survivor benefits to
a dependent child or children, as defined in section 353.01,
subdivision 15.
Notwithstanding the definition of surviving spouse, a
former spouse of the member, if any, is entitled to a portion of
the monthly surviving spouse benefit if stipulated under the
terms of a marriage dissolution decree filed with the
association. If there is no surviving spouse or child or
children, a former spouse may be entitled to a lump-sum refund
payment under section 353.32, subdivision 1, if provided for in
a marriage dissolution decree but not a monthly surviving spouse
benefit despite the terms of a marriage dissolution decree filed
with the association.
The spouse and child or children are entitled to monthly
benefits as provided in the following subdivisions.
Sec. 21. Minnesota Statutes 1991 Supplement, section
353.657, subdivision 2, is amended to read:
Subd. 2. The spouse, for life, shall receive a monthly
benefit equal to 50 percent of the member's average full-time
monthly salary rate as a police officer or firefighter in effect
over the last six months of allowable service preceding the
month in which death occurred. If the member was a part-time
police officer or firefighter, the monthly survivor benefit is
based on the salary rate in effect for that member's part-time
service during the last six months of allowable service. If the
member's status changed from full time to part time for health
reasons during the last year of employment, the monthly survivor
benefit is based on the full-time salary rate of a police
officer or firefighter in effect over the last six months of
allowable service preceding the month in which the death
occurred.
Sec. 22. Minnesota Statutes 1991 Supplement, section
353.657, subdivision 2a, is amended to read:
Subd. 2a. [DEATH WHILE ELIGIBLE SURVIVOR BENEFIT.] If a
member or former member who has attained the age of at least 50
years and has credit for not less than three years allowable
service or who has credit for at least 30 years of allowable
service, regardless of age attained, dies before public service
has terminated, or if an employee who has filed a valid
application for an annuity or disability benefit prior to
termination of public service dies before the annuity or
disability benefit has become becomes payable, notwithstanding
any designation of beneficiary to the contrary, the surviving
spouse may elect to receive a death while eligible survivor
benefit.
Notwithstanding the definition of surviving spouse in
section 353.01, subdivision 20, a former spouse of the member,
if any, is entitled to a portion of the death while eligible
survivor benefit if stipulated under the terms of a marriage
dissolution decree filed with the association. If there is no
surviving spouse or child or children, a former spouse may be
entitled to a lump-sum refund payment under section 353.32,
subdivision 1, if provided for in a marriage dissolution decree
but not a death while eligible survivor benefit despite the
terms of a marriage dissolution decree filed with the
association.
The benefit may be elected instead of a refund with
interest under section 353.32, subdivision 1, or surviving
spouse benefits otherwise payable under subdivisions 1 and 2.
The benefit must be an annuity equal to the 100 percent joint
and survivor annuity which the member could have qualified for
on the date of death, computed as provided in sections 353.651,
subdivisions 2 and 3, and 353.30, subdivision 3. If there is a
dependent child or children, and the 100 percent joint and
survivor optional annuity for the surviving spouse, when added
to the benefit of the dependent child or children under
subdivision 3, exceeds an amount equal to 70 percent of the
member's specified average monthly salary, the 100 percent joint
and survivor annuity must be reduced by the amount necessary so
that the total family benefit does not exceed the 70 percent
maximum family benefit amount under subdivision 3. The 100
percent joint and survivor optional annuity must be restored to
the surviving spouse, plus applicable postretirement fund
adjustments under section 356.41, as the dependent child or
children become no longer dependent under section 353.01,
subdivision 15. The surviving spouse may apply for the annuity
at any time after the date on which the deceased employee would
have attained the required age for retirement based on the
employee's allowable service. Sections 353.34, subdivision 3,
and 353.71, subdivision 2, apply to a deferred annuity payable
under this subdivision. No payment shall accrue beyond the end
of the month in which entitlement to such annuity has
terminated. An amount equal to the excess, if any, of the
accumulated contributions which were credited to the account of
the deceased employee over and above the total of the annuities
paid and payable to the surviving spouse shall must be paid to
the deceased member's last designated beneficiary or, if none,
to the legal representative of the estate of such deceased
member. Any member may request in writing that this subdivision
not apply and that payment be made only to the designated
beneficiary, as otherwise provided by this chapter. For a
member who is employed as a full-time firefighter by the
department of military affairs of the state of Minnesota,
allowable service as a full-time state military affairs
department firefighter credited by the Minnesota state
retirement system may be used in meeting the minimum allowable
service requirement of this subdivision.
Sec. 23. Minnesota Statutes 1990, section 353.659, is
amended to read:
353.659 [LOCAL RELIEF ASSOCIATION CONSOLIDATION ACCOUNT
BENEFITS.]
For any person who has prior service covered by a local
police or firefighters relief association which has consolidated
with the public employee police and fire fund employees
retirement association and who has elected the type of benefit
coverage provided by the public employees police and fire fund
benefit plan as provided in under section 353A.08 following the
consolidation, any retirement benefits payable shall be are
governed by the applicable provisions of this chapter. For any
person who has prior service covered by a local police or
firefighters relief association which has consolidated with the
public employees police and fire fund retirement association and
who has not elected the type of benefit coverage provided by the
public employees police and fire fund benefit plan as provided
in under section 353A.08 following the consolidation, any
retirement benefits payable shall be are governed by the
provisions of sections 353B.01 to 353B.13 which apply to the
relief association.
Sec. 24. Minnesota Statutes 1990, section 353.68,
subdivision 4, is amended to read:
Subd. 4. The deferred annuity of section 353.34,
subdivision 3, as it applies to members of the police and fire
fund shall commence at age 55, begins and shall be is computed
in the manner provided in section 353.651 on the basis of the
law in effect on the date of termination of public service and
shall be. The deferred annuity is augmented as provided in
under section 353.71, subdivision 2.
Sec. 25. Minnesota Statutes 1990, section 353A.02,
subdivision 12, is amended to read:
Subd. 12. [FUND.] "Fund" means the public employees police
and fire consolidation fund established by sections 353.63 to
353.68 353A.01 to 353A.10.
Sec. 26. Minnesota Statutes 1991 Supplement, section
353A.03, is amended to read:
353A.03 [VOLUNTARY CONSOLIDATION OPTION.]
Notwithstanding any provision of law to the contrary, any a
local police or firefighters relief association, as defined in
section 353A.02, subdivision 15, may consolidate with the public
employees retirement association as provided in under sections
353A.01 to 353A.10.
Sec. 27. Minnesota Statutes 1990, section 353A.04,
subdivision 2, is amended to read:
Subd. 2. [INITIATION PROCEDURE.] To initiate the
consolidation procedure, the minimum required proportion of the
relief association membership shall submit a signed petition to
the board of trustees recommending to the board, the balance of
the membership of the relief association and to the municipality
that the relief association be consolidated into the fund with
the public employees retirement association. Upon receipt of
the petition and authentication of the signatures contained in
it, the board of trustees shall hold a public hearing on the
issue and shall adopt a resolution setting forth its
recommendation to the membership and to the municipality on the
issue and setting forth the procedure for a membership
referendum as provided in under subdivision 4.
Sec. 28. Minnesota Statutes 1990, section 353A.05,
subdivision 3, is amended to read:
Subd. 3. [FUND ASSOCIATION ACTIONS.] Upon approval of
consolidation by the membership as provided in section 353A.04,
the executive director of the public employees retirement
association shall request from the relief association and the
municipality the information necessary to allow the fund to
complete the consolidation, which at a minimum shall include the
information required to be provided to the executive director of
the commission and to the actuary retained by the commission by
subdivision 1. The chief administrative officer of the relief
association and the chief administrative officer of the
municipality shall provide the requested information in a timely
manner. The data shall be reported on forms or in a manner
prescribed by the executive director of the public employees
retirement association. The data shall be current as of the
date of the approval of the consolidation by the membership and
shall thereafter include updated data on a monthly basis
following the initial collection of data, also in the manner or
on forms prescribed by the executive director of the public
employees retirement association. The chief administrative
officer of the municipality and the chief administrative officer
of the relief association shall certify as to the accuracy of
the data reported to the public employees retirement
association, and the public employees retirement association may
rely on that data without undertaking any affirmative duty to
verify the data. Upon receipt of the report of actuarial
calculations under subdivision 1 and notice from the state board
of the completion of the preliminary actions under subdivision
2, the association shall notify the chief administrative officer
of the municipality and the chief administrative officer of the
relief association of the completion of the preliminary actions.
Sec. 29. Minnesota Statutes 1991 Supplement, section
353A.06, is amended to read:
353A.06 [FINALIZATION OF CONSOLIDATION.]
Subdivision 1. [NOTICE OF FINAL APPROVAL.] Upon the
completion of the applicable actions preliminary to
consolidation finalization under section 353A.05, each entity
shall report the result of those actions to the relief
association and to the municipality. Upon final approval by the
governing body of the municipality under section 353A.04,
subdivision 8, the consolidation of the relief association with,
the chief administrative officer of the municipality shall
provide notice of the local action to the chief administrative
officer of the relief association, the executive director of the
state board, the executive director of the commission, the
executive director of the public employees retirement
association, the commissioner of finance, the secretary of
state, and the state auditor. The board of trustees of the
public employees retirement association is scheduled to occur.
The consolidation is effective as of the date established for
consolidation by the board of the public employees retirement
association. The effect of the consolidation is governed under
sections 353A.07 to 353A.09, at its next regularly scheduled
meeting, shall set the effective date for the consolidation and
notify the persons under this subdivision who are to receive
notice from the municipality.
Subd. 2. [INFORMATION REQUIRED.] Upon final approval of
consolidation by the municipality under section 353A.04, the
executive director of the public employees retirement
association shall request from the relief association and the
municipality the information necessary to allow the association
to complete the consolidation. The information, at a minimum,
must include all data required to be provided by the executive
director of the commission and the actuary retained by the
commission under section 353A.05, subdivision 1. The chief
administrative officer of the relief association and the chief
administrative officer of the municipality shall provide the
requested information in a timely manner. The data must be
reported on forms or in a manner prescribed by the executive
director of the association. The data must be current as of the
effective date of the consolidation with the association. The
chief administrative officer of the municipality and the chief
administrative officer of the relief association shall certify
the accuracy of the data reported to the association. The
executive director may rely on that data without undertaking any
affirmative duty to verify the data.
Sec. 30. Minnesota Statutes 1990, section 353A.07,
subdivision 3, is amended to read:
Subd. 3. [TRANSFER OF ASSETS.] On the effective date of
consolidation, the chief administrative officer of the relief
association shall effect the transfer of the entire assets of
the special fund of the relief association to the fund public
employees retirement association. The transfer may must include
any investment securities of the special fund consolidation
account which are not determined to be ineligible or
inappropriate by the executive director of the state board under
section 353A.05, subdivision 2, at the market value of the
investment security as of the effective date of the
consolidation. The transfer shall must include any accounts
receivable determined by the executive director of the state
board as capable of being collected. The transfer shall must
also include an amount, in cash, representing any remaining
investment security or other asset of the special fund
consolidation account which was liquidated, after defraying any
accounts payable.
As of the effective date of consolidation, subject to the
authority of the state board, the board of trustees of the
public employee retirement association shall have has legal
title to and management responsibility for any transferred
assets as trustees for any person having a beneficial interest
arising out of benefit coverage provided by the relief
association. The fund shall be public employees retirement
association is the successor in interest for all claims for and
against the special fund of the relief association consolidation
account or the municipality with respect to the special fund
consolidation account of the relief association, except any. In
a claim against the relief association or the municipality or
any person connected with the relief association or the
municipality in a fiduciary capacity, based on any act or acts
by that person which were not done in good faith and which
constituted a breach of the obligation of the person as a
fiduciary. As a successor in interest, the fund public
employees retirement association may assert any applicable
defense in any judicial proceeding which the board of the relief
association or the municipality would have otherwise been
entitled to assert.
Sec. 31. Minnesota Statutes 1990, section 353A.08,
subdivision 6, is amended to read:
Subd. 6. [SPECIAL BENEFIT PROVISIONS COVERAGE.] If the
benefit plan of the relief association as of the date on which
consolidation is initiated provides for special benefit coverage
as specified in section 353A.02, subdivision 28, any A person
who would have otherwise been entitled to that special benefit
coverage shall retain under section 353A.02, subdivision 28,
retains entitlement upon consolidation to that special benefit
coverage notwithstanding the election which the person makes
regarding other aspects of the benefit coverage as provided in
under subdivision 1, 2, or 3. The special benefit
coverage shall continue continues to be provided by the
municipality and, if not provided through a contract with an
insurance carrier which is authorized to do business in this
state, shall must be funded on an actuarial basis using the
relevant provisions of section 69.77, with the establishment by
the municipality of a special account within the general fund of
the municipality for this special benefit coverage, to be
managed by. The chief administrative officer of the
municipality, with shall manage the special benefit coverage.
Disbursements must be limited to payments of the special benefit
or benefits based on the relevant portion of the benefit plan of
the relief association which that existed as of the date on
which consolidation is initiated.
No A special account in the general fund of a municipality
established to provide special preexisting benefit plan coverage
as provided in under this subdivision shall be deemed to be is
not a supplemental pension plan under section 356.24 or a local
governmental pension plan or fund under section 356.25.
Sec. 32. Minnesota Statutes 1990, section 353A.08, is
amended by adding a subdivision to read:
Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A
person who was an active member of a local police or
firefighters relief association upon its consolidation with the
public employees retirement association, and who was otherwise
eligible for automatic service credit for military service under
sections 423.57 and 424.23, and who has not elected the type of
benefit coverage provided by the public employees police and
fire fund at the time of consolidation, must make employee
contributions under section 353.01, subdivision 16, paragraph
(h), to receive allowable service credit from the association
for a military service leave after the effective date of the
consolidation. A person who later elects, under subdivision 3,
to retain benefit coverage under the bylaws of the local relief
association is eligible for a refund from the association at the
time of retirement. The association shall refund the employee
contributions plus interest at the rate of six percent,
compounded quarterly, from the date on which contributions were
made until the first day of the month in which the refund is
paid. The employer shall receive a refund of the employer
contributions. The association shall not pay a refund to a
person who later elects, under subdivision 3, the type of
benefit coverage provided by the public employees police and
fire fund or to the person's employer.
Sec. 33. Minnesota Statutes 1990, section 353A.09,
subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT OF SPECIAL LOCAL RELIEF
ASSOCIATION CONSOLIDATION ACCOUNTS.] The board of trustees of
the public employees retirement association shall establish a
separate special accounts to be known as the consolidation
account for each local relief association consolidation account
of each a municipality that consolidates with the fund public
employees retirement association. In that account shall be
credited The association shall credit to the consolidation
account the assets of the individual consolidating local relief
association upon transfer, member contributions received after
consolidation under subdivision 4, municipal contributions
received after consolidation under subdivision 5, and a
proportionate share of any investment income earned after
consolidation by the public employees police and fire fund.
From that individual the consolidation account, the association
shall pay for the transfer of any required reserves to the
Minnesota postretirement investment fund on account of persons
electing the type of benefit coverage provided by the public
employees police and fire benefit plan fund under subdivisions 2
and 3 and section 353.271, subdivision 2, shall be made, the
pension and benefit amounts on account of persons electing
coverage by the relief association benefit plan under section
353A.08 shall be paid, the benefit amounts not payable from the
Minnesota postretirement investment fund on account of persons
electing the type of benefit coverage provided by the public
employees police and fire benefit plan fund under section
353A.08 shall be paid, and any direct administrative expenses
related to the special consolidation account, and the
proportional share of the general administrative expenses of the
fund shall be paid association.
Except as otherwise provided for in this section, the
liabilities and the assets of each local relief association a
consolidation account must be considered for all purposes to be
separate from the balance of the public employees police and
fire fund and shall. The consolidation account must be subject
to separate accounting and, a separate actuarial valuation, and
must be reported as a separate exhibit in any annual financial
report or actuarial valuation report of the public employees
police and fire consolidation fund, whichever applies. The
executive director of the public employees retirement
association shall maintain separate accounting records and
balances for each consolidating local relief association and the
balance in its consolidation account.
Sec. 34. Minnesota Statutes 1990, section 353A.10,
subdivision 4, is amended to read:
Subd. 4. [REFUND OF CERTAIN MEMBER CONTRIBUTION AMOUNTS.]
(a) The following persons shall be are entitled to receive a
refund of certain member contribution amounts under paragraph
(b):
(1) Any A person who was an active member of a local police
or firefighters relief association upon its consolidation with
the fund public employees retirement association, who does not
elect the type of benefit coverage provided by the public
employees police and fire benefit plan and who commences begins
receipt of a service pension or a disability benefit from
the local relief association consolidation account; or
(2) Any A person who is the surviving spouse, or if none,
the surviving minor child, or if none, the designated
beneficiary of a person who was an active member of a local
police or firefighters relief association upon its consolidation
with the fund, who did not elect the type of benefit coverage
provided by the public employees police and fire benefit plan
and who dies prior to receiving a service pension or a
disability benefit from the local relief association
consolidation account.
(b) The refund of certain member contribution amounts shall
be is the amount by which any member contributions made to the
local relief association consolidation account under section
353A.09, subdivision 4, exceeds the amount of employee or member
contributions which would have been payable to the local relief
association as provided in the benefit plan in effect on the
effective date of consolidation, plus interest at the rate of
six percent, compounded quarterly, from the date on which the
contribution was made until the date on first of the month in
which the refund is paid.
(c) Any A refund of certain contribution amounts shall must
occur as soon as practicable following receipt of a valid
application from the appropriate person and the commencement of
receipt of the service pension or disability benefit or official
notification of death, whichever applies.
Sec. 35. Minnesota Statutes 1990, section 353A.10, is
amended by adding a subdivision to read:
Subd. 6a. [DISSOLUTION OF CONSOLIDATION ACCOUNT.] If a
consolidation account no longer has current or potential future
liabilities for the payment of annuities, benefits, refunds, or
administrative expenses, the association shall transfer the
remaining net assets, if any, for police and fire purposes only,
to the municipality that made contributions to the account.
Sec. 36. Minnesota Statutes 1991 Supplement, section
353D.01, subdivision 2, is amended to read:
Subd. 2. [ELIGIBILITY.] (a) Except as provided in section
353D.11, eligibility to participate in the defined contribution
plan is open to:
(1) an elected local government official of a governmental
subdivision who elects to participate in the plan and who, for
the elected service rendered to a governmental subdivision, is
not a member of the public employees retirement association
within the meaning of section 353.01, subdivision 7. The
service of an elected local government official on an additional
board, commission, or committee, even if part of the official's
elected position, is not covered service under this plan.
Eligibility to participate in the defined contribution plan
terminates when the participant ceases to be an elected local
government official. For purposes of this chapter, an elected
local government official does not include an elected county
sheriff;
(2) eligibility to participate is open to basic and
advanced life support emergency medical service personnel
employed by or providing services for any public ambulance
service or privately operated ambulance service that receives an
operating subsidy from a governmental entity that elects to
participate; and
(3) a person who qualifies to have an ambulance service
personnel incentive payment made on the person's behalf under
section 353D.031.
(b) For purposes of this chapter, an elected local
government official includes a person appointed to fill a
vacancy in an elective office. Service as an elected local
government official only includes service for the governmental
subdivision for which the official was elected by the
public-at-large. Service as an elected local government
official ceases and eligibility to participate terminates when
the person ceases to be an elected official. An elected local
government official does not include an elected county sheriff.
(c) Except as provided in section 353D.11, elected local
government officials and first response personnel and emergency
medical service personnel who are currently covered by a public
or private pension plan because of their employment or provision
of services are not eligible to participate in the public
employees defined contribution plan.
(d) A former participant is a person who has ceased to be
an elected local government official or an emergency medical
service employee and who has not withdrawn the value of an
individual account.
Sec. 37. Minnesota Statutes 1991 Supplement, section
353D.02, is amended to read:
353D.02 [ELECTION OF COVERAGE.]
(a) Elected local government officials eligible under
section 353D.01, subdivision 2, paragraph (a), clause (1), may
elect to participate in the defined contribution plan after
being elected or appointed to a elective public office by filing
a membership application on a form prescribed by the executive
director of the association authorizing contributions to be
deducted from the elected official's salary. Participation
begins on the first day of the pay period for which the
contributions were deducted or, if pay period coverage dates are
not provided, the date on which the membership application or
contributions are received in the office of the association,
whichever is received first, provided further that the
membership application is received by the association within 60
days of the receipt of the contributions. If the membership
application is not received, the elected official is not a
participant in the plan and may request a refund under section
353D.04, subdivision 2. An election to participate in the plan
is irrevocable during incumbency in office.
(b) For personnel eligible under section 353D.01,
subdivision 2, paragraph (a), clause (2), a public ambulance
service or privately operated ambulance service with eligible
personnel that receives an operating subsidy from a governmental
entity with eligible personnel may elect to participate in the
plan. If a service elects to participate, its eligible
personnel may elect to participate or to decline to
participate. An individual's election must be made within 30
days of the service's election to participate or 30 days of the
date on which the individual was employed by the service or
began to provide service for it, whichever date is later. An
election by a service or an individual is irrevocable.
(c) A person eligible under section 353D.01, subdivision 2,
paragraph (a), clause (3), may elect to participate in the
plan. The person must elect to participate or decline to
participate by June 30, 1994, or by June 30 of the fiscal year
after June 30, 1994, which the person first becomes qualified to
have an ambulance service personnel incentive payment made on
the person's behalf under section 353D.031.
Sec. 38. Minnesota Statutes 1991 Supplement, section
353D.03, is amended to read:
353D.03 [FUNDING OF PLAN.]
(a) An elected local government official eligible under
section 353D.01, subdivision 2, paragraph (a), clause (1), who
elects to participate in the public employees defined
contribution plan shall contribute an amount equal to five
percent of salary as defined in section 353.01, subdivision 10.
A participating elected local government official's governmental
subdivision shall contribute a matching amount.
(b) A public ambulance service or privately operated
ambulance service that receives an operating subsidy from a
governmental entity that elects to participate in the plan shall
fund benefits for its personnel eligible under section 353D.01,
subdivision 2, paragraph (a), clause (2), who individually elect
to participate, except that. Personnel who are paid for their
services may elect to make member contributions in an amount not
to exceed the service's contribution on their behalf. Ambulance
service contributions on behalf of salaried employees must be a
fixed percentage of salary. An ambulance service making
contributions for volunteer or largely uncompensated personnel
may assign a unit value for each call or each period of alert
duty for the purpose of calculating ambulance service
contributions. An ambulance service with personnel for whom
funding is provided under the paragraph that has ambulance
attendants, ambulance drivers, and ambulance service medical
directors qualified to have an ambulance service personnel
incentive payment made on the person's behalf under section
353D.031 may discontinue that funding if the ambulance service
has given its participating personnel at least 18 months notice
of its intent to discontinue its funding of the plan.
(c) Former participants in the defined contribution plan
under this chapter shall not contribute to the plan except under
section 353D.12.
Sec. 39. Minnesota Statutes 1991 Supplement, section
353D.04, subdivision 1, is amended to read:
Subdivision 1. [CONTRIBUTIONS.] (a) Contributions made by
or on behalf of a participating elected local government
official must be remitted to the public employees retirement
association and credited to the individual account established
for the participating officer participant.
(b) Ambulance service contributions must be remitted on a
regular periodic basis to the association together with any
member contributions paid or withheld. Those contributions must
be credited to the individual account of each participating
member.
Sec. 40. Minnesota Statutes 1991 Supplement, section
353D.05, subdivision 2, is amended to read:
Subd. 2. [INVESTMENT OPTIONS.] (a) A participant may elect
to purchase shares in the income share account, the growth share
account, the money market account, the bond market account, the
guaranteed return account, or the common stock index account
established by section 11A.17, or a combination of those
accounts. The participant may elect to purchase shares in a
combination of those accounts by specifying the percentage of
the total contributions and ambulance service personnel
incentive allocation to be used to purchase shares in each of
the accounts.
(b) A participant or a former participant may indicate in
writing a choice of options for subsequent purchases of shares.
After a choice is made, until the participant or former
participant makes a different written indication, the executive
director of the association shall purchase shares in the
supplemental investment fund account or funds accounts specified
by the participant. If no initial option is indicated by a
participant or the specifications made by the participant exceed
exceeds 100 percent to be invested in more than one account, the
executive director shall invest all contributions made by or on
behalf of a participant in the income share account. If the
specifications are less than 100 percent, the executive director
shall invest the remaining percentage in the income share
account. A choice of investment options is effective no later
than the first pay date occurring more than 30 days after of the
month following the date of receipt of the signed written choice
of options.
(c) One month before the start of a new guaranteed
investment contract, a participant or former participant may
elect to transfer all or a portion of the participant's or
former participant's shares previously purchased in the income
share, growth share, common stock index, bond market, or money
market accounts to the new guaranteed investment contract in the
guaranteed return account. Upon expiration of a guaranteed
investment contract, the participant's or former participant's
shares attributable to that contract must be transferred to a
new guaranteed investment contract unless the executive director
is otherwise directed by the participant. Shares in the
guaranteed return account may not be withdrawn from the fund or
transferred to another account until the guaranteed investment
contract has expired, unless the participant qualifies for a
benefit payment under section 353D.07.
(d) A participant or former participant may also change the
investment options selected for all or a portion of the
individual's previously purchased shares in accounts other than
the guaranteed return account. A change under this paragraph is
effective as soon as cash flow to an account permits, but not
later than six months from the requested change the first of the
month following the date of receipt of a signed written choice
of options.
(e) The change or selection of an investment option or the
transfer of all or a portion of the deceased or former
participant's shares in the income share, growth share, common
stock index, bond market, money market, or guaranteed investment
accounts must not be made following death of the participant or
former participant.
Sec. 41. Minnesota Statutes 1991 Supplement, section
353D.05, subdivision 3, is amended to read:
Subd. 3. [ADMINISTRATIVE EXPENSES.] The public employees
retirement association may deduct an amount to defray the
expenses of the association in administering the plan. The
amount must be set annually by the executive director of the
association, but not to exceed two percent of the total amount
of the employing unit contributions to the plan and the
ambulance service personnel incentive allocation received by the
plan and if the amount recovered under section 11A.17 does not
meet the annual expenses of administering the plan, the
association may assess an additional amount up to three percent
of the employer and employee contributions.
Sec. 42. Minnesota Statutes 1991 Supplement, section
353D.07, subdivision 2, is amended to read:
Subd. 2. [PAYMENT OF BENEFITS.] Withdrawal of or a
retirement benefit based on individual participant contributions
and employer contributions plus accrued investment income is
payable immediately upon the death or termination of a
participant. No investment options or transfers of all or a
portion of the deceased elected official's shares in the income
share, growth share, common stock index, bond market, money
market, or guaranteed investment accounts shall be made
following death or termination of the participant. An
application by or on behalf of the participant must be filed
before any payment of benefits may be made.
Sec. 43. Minnesota Statutes 1991 Supplement, section
353D.07, subdivision 3, is amended to read:
Subd. 3. [FORM OF BENEFIT.] A retirement benefit is
payable in a lump sum equal to the value of a participant's
account at the date of retirement and may be rolled over into
another qualified plan at the option of the
participant withdrawal. As an alternative to a lump-sum
distribution, the participant may choose to have the association
transfer the total account value for the purchase of an annuity
payable at a designated age to an insurance company of the
participant's choice that is licensed to do business in the
state.
Sec. 44. Minnesota Statutes 1991 Supplement, section
353D.12, subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; CONTRIBUTIONS.] An elected
local government official who participates in the defined
contribution plan under this chapter may make contributions to
the plan for the service as an elected public officer rendered
before June 30, 1991, that was not covered by a public or
private employer contributory pension plan, including a plan
administered by the public employees retirement association
under chapter 353. An elected local government official may
make contributions for prior elected service to the defined
contribution plan even if eligibility criteria for the defined
benefit plan under chapter 353 were not met at the time service
was rendered. The association shall not accept contributions
for prior elected service after the elected official ceases to
hold elected office from a former elected official after the end
of the tax year in which the elected official ceases to hold
office. Employer contributions on behalf of the former elected
official must be made to the association no later than 30 days
after April 15 following the end of the tax year under section
415 of the federal Internal Revenue Code, as amended. Employee
contributions must be made to the association no later than 30
days after the close of the limitation year under section 415 of
the federal Internal Revenue Code, as amended.
Sec. 45. Minnesota Statutes 1990, section 356.30,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1)
Notwithstanding any provisions to the contrary of the laws
governing the funds enumerated in subdivision 3, a person who
has met the qualifications of clause (2) may elect to receive a
retirement annuity from each fund in which the person has at
least six months allowable service, based on the allowable
service in each fund, subject to the provisions of clause (3).
(2) A person may receive upon retirement, in lieu of any
augmentation of deferred annuities provided by laws governing
the funds enumerated in subdivision 3, a retirement annuity from
each fund in which the person has at least six months allowable
service, and augmentation of a deferred annuity calculated under
the laws governing each public pension plan or fund named in
subdivision 3, from the date the person terminated all public
service if:
(a) the person has allowable service totaling an amount
that allows the person to receive an annuity in any two or more
of the enumerated funds;
(b) the person has at least six months of allowable service
with the last such fund earned during the last period of
employment; and
(c) the person has not begun to receive an annuity from any
enumerated fund or the person has made application for benefits
from all funds within a six-month period.
(3) The retirement annuity from each fund shall must be
based upon the allowable service in each fund, except that:
(a) The laws governing annuities shall must be the law in
effect on the date of final termination from the last public
service under a covered fund.
(b) The "average salary" on which the annuity from each
covered fund in which the employee has credit in a formula plan
shall be based on the employee's highest five successive years
of covered salary during the entire service in covered funds.
(c) The formula percentages to be used by each fund shall
must be those percentages prescribed by each fund's formula as
continued for the respective years of allowable service from one
fund to the next, recognizing all previous allowable service
with the other covered funds.
(d) Allowable service in all the funds shall must be
combined in determining eligibility for and the application of
each fund's provisions in respect to actuarial reduction in the
benefit amount for retirement prior to normal retirement.
(e) The benefit amount payable for any allowable service
under a nonformula plan of a covered fund shall must not be
affected but such service and covered salary shall must be used
in the above calculation.
(f) This section shall not apply to any person whose final
termination from the last public service under a covered fund is
prior to May 1, 1975.
(g) For the purpose of computing benefits under this
section the formula percentages used by any covered fund shall
in no event must not exceed 2-1/2 percent per year of service
for any year of service or fraction thereof.
(h) Any period of time for which a person has credit in
more than one of the covered funds shall must be used only once
for the purpose of determining total allowable service.
(i) If the period of duplicated service credit is more than
six months, or the person has credit for more than six months
with each of the funds, each fund shall apply its formula to a
prorated service credit for the period of duplicated service
based on a fraction of the salary on which deductions were paid
to that fund for the period divided by the total salary on which
deductions were paid to all funds for the period.
(j) If the period of duplicated service credit is less than
six months, or when added to other service credit with that fund
is less than six months, the service credit shall must be
ignored and a refund of contributions made to the person in
accord with that fund's refund provisions.
Sec. 46. Minnesota Statutes 1990, section 356.302,
subdivision 6, is amended to read:
Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT
COMPUTATION.] (a) The combined service disability benefit from
each covered retirement plan must be based on the allowable
service in each retirement plan, except as specified in
paragraphs (b) to (f).
(b) The disability benefit must be governed by the law in
effect for each covered retirement plan on the date of the
commencement of the member's most recent qualifying disability
as a member of a covered retirement plan.
(c) All plans must base the disability benefit on the same
average salary to the extent practicable.
(d) If the method of the covered retirement plan used to
compute a disability benefit varies based on the length of
allowable service credit, the benefit accrual formula
percentages used by the plan must recognize the allowable
service credit in the plan as a continuation of any previous
allowable service credit with other covered retirement plans.
(e) If the covered retirement plan is a defined benefit or
formula plan and the method used to compute a disability benefit
does not vary based on the length of allowable service credit,
the portion of the specified benefit amount from the plan must
bear the same proportion to the total specified benefit amount
as the allowable service credit in that plan bears to the total
allowable service credit in all covered retirement plans. If
the covered retirement plan is a defined contribution or
nonformula plan, the disability benefit amount for allowable
service under the plan is not affected, but the service and
covered salary under the plan must be used in calculations by
other covered retirement plans.
(f) A period for which a person has allowable service
credit in more than one covered retirement plan must be used
only once in determining the total allowable service credit for
calculating the combined service disability benefit, with any
period of duplicated service credit handled as provided in under
section 356.30, subdivision 1, clause (3), items (i) and (j).
(g) If a person is entitled to a minimum benefit payable
from one of the public pension plans named in section 356.30,
subdivision 3, the person may receive additional credit for only
those years of service in another covered pension plan that,
when added to the years of service in the pension plan that is
paying the minimum benefit, exceed the years of service on which
the minimum benefit is based.
Sec. 47. Minnesota Statutes 1990, section 356.303,
subdivision 3, is amended to read:
Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.]
(a) The combined service survivor annuity or survivor benefit
from each covered retirement plan must be based on the allowable
service in each covered retirement plan, except as provided by
paragraphs (b) to (f).
(b) The survivor annuity or survivor benefit must be
governed by the law in effect for each covered retirement plan
on the date of death of the deceased member.
(c) All plans must base the survivor annuity or survivor
benefit on the same average salary.
(d) If the method of the covered retirement plan used to
compute a survivor benefit or annuity varies based on the length
of allowable service credit, the benefit accrual formula
percentages used by the plan must recognize the allowable
service credit in the plan as a continuation of any previous
allowable service credit with other covered retirement plans.
(e) If the covered retirement plan is a defined benefit or
formula plan and the method used to compute a survivor benefit
or annuity does not vary based on the length of allowable
service credit, the portion of the specified benefit or annuity
amount from the plan must bear the same proportion to the total
specified benefit or annuity amount as the allowable service
credit in that plan bears to the total allowable service credit
in all covered retirement plans. If the covered retirement plan
is a defined contribution or nonformula plan, the survivor
benefit amount for allowable service under the plan is not
affected, but the service and covered salary under the plan must
be used in calculations by other covered retirement plans.
(f) A period for which a person has allowable service
credit in more than one covered retirement plan must be used
only once in determining the total allowable service credit for
calculating the combined service survivor annuity or survivor
benefit. A period of duplicated service credit must be handled
as provided in section 356.30, subdivision 1, clause (3), items
(i) and (j).
(g) If a person is entitled to a minimum benefit payable
from a public pension plan named in section 356.30, subdivision
3, the person may receive additional credit for only those years
of service in another covered pension plan that, when added to
the years of service in the pension plan that is paying the
minimum benefit, exceed the years of service on which the
minimum benefit is based.
Sec. 48. Laws 1990, chapter 570, article 8, section 14,
subdivision 1, as amended by Laws 1991, chapter 29, section 1,
subdivision 1, is amended to read:
Subdivision 1. [ENTITLEMENT.] An individual who became an
appointed public officer prior to May 9, 1990, or an elected
public officer who participates in the public employees
retirement association defined benefit plan under Minnesota
Statutes, chapter 353, may purchase service credit from the
association for all or any portion of prior uncredited service
as an elected public officer when the officer could have been,
but was not, a member of the association on account of failure
to exercise the membership option under Minnesota Statutes,
section 353.01, subdivision 7. An appointed public officer is a
person who holds an appointed position that was previously an
elected position during the person's incumbency.
Sec. 49. Laws 1991, chapter 269, article 2, section 13, is
amended to read:
Sec. 13. [EFFECTIVE DATE.]
(a) Sections 1 to 11 are effective the day following final
enactment.
Section 12 is effective for the former relief associations
of the city of Chisholm the day following approval by the
Chisholm city council and upon compliance with Minnesota
Statutes, section 645.021. Section 12 is effective for the
former relief associations of the city of Hibbing the day
following approval by the Hibbing city council and upon
compliance with Minnesota Statutes, section 645.021.
(b) The elimination of the surviving spouse benefit
discontinuation requirement provided for in sections 1 to 11
also applies to any surviving spouse receiving a surviving
spouse benefit on the date of final enactment of the act and, to
the potential surviving spouses of active, deferred or retired
plan members who have that status on the effective date of the
change. Sections 1 to 11 do not apply to, and to persons who
formerly were receiving surviving spouse benefits and had those
benefits discontinued by virtue of a remarriage and may not be
considered to. Sections 1 to 11 do not authorize the payment of
any retroactive survivor benefit amounts to any person or to an
estate, except that a person who was formerly receiving
surviving spouse benefits and who had those benefits
discontinued by virtue of remarriage prior to July 1, 1991, is
eligible to receive benefit amount payments retroactive to July
1, 1991, or 12 months prior to the month in which application
for benefits is received in the office of the association,
whichever is sooner.
Sec. 50. [353.011] [BOARD OF TRUSTEE TERMS.]
Notwithstanding section 353.03, in January 1993, the
governor shall appoint two persons to the board of trustees of
the public employees retirement association to one-year terms
expiring in January 1994, one person to a three-year term
expiring in January 1996, and two persons to four-year terms
expiring in January 1997. Thereafter, persons appointed to the
board of trustees serve four-year terms under section 353.03,
subdivision 1.
Sec. 51. [REPEALER.]
Minnesota Statutes 1990, sections 353.656, subdivision 7,
and 353.71, subdivision 3, are repealed.
Sec. 52. [EFFECTIVE DATE.]
Sections 1 to 5 and 7 to 48, 50, and 51 are effective the
day following final enactment. Section 6 is effective January
1, 1993. Section 49 is effective July 1, 1992.
Presented to the governor April 6, 1992
Signed by the governor April 9, 1992, 4:25 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes