1.1 	A bill for an act
1.2 	relating to public safety; revising employment positions covered by correctional 
1.3 	state employees retirement plan of the Minnesota State Retirement System; 
1.4 	modifying the vesting period for a retirement annuity for the correctional state 
1.5 	employees retirement plan; permitting a service credit transfer to the general 
1.6 	state employees retirement plan by certain correctional employees;amending 
1.7 	Minnesota Statutes 2010, sections 352.72, subdivision 1; 352.90; 352.91, 
1.8 	subdivisions 1, 3h; 352.93, subdivisions 1, 2a, 4, by adding a subdivision; 
1.9 	356.30, subdivision 1; repealing Minnesota Statutes 2010, sections 352.91, 
1.10 	subdivisions 2, 2a, 3c, 3d, 3e, 3f, 3g, 3i, 4a, 4b; 352.925.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	CORRECTIONAL STATE EMPLOYEES RETIREMENT PLAN I

1.14 	Section 1. Minnesota Statutes 2010, section 352.90, is amended to read:
1.15 	352.90 POLICY.
1.16 	It is the policy of the legislature to provide special retirement benefits for and special 
1.17 	contributions by certain correctional employees who may be required to retire at an early 
1.18 	age because they lose the mental or physical capacity required to maintain the safety, 
1.19 	security, discipline, and custody of inmates at state correctional facilities or, of patients at 
1.20 	the Minnesota Security Hospital, or of patients in the Minnesota sex offender program, or 
1.21 	of patients in the Minnesota extended treatment options program.

1.22 	Sec. 2. Minnesota Statutes 2010, section 352.91, subdivision 1, is amended to read:
1.23 		Subdivision 1.Qualifying jobs. "Covered correctional service" means service 
1.24 	performed by a state employee, as defined in section 352.01, who is employed at a state 
2.1 	correctional facility, the Minnesota Security Hospital, or the Minnesota sex offender 
2.2 	program as:
2.3 	(1) a corrections officer 1;
2.4 	(2) a corrections officer 2;
2.5 	(3) a corrections officer 3;
2.6 	(4) a corrections officer supervisor;
2.7 	(5)(4) a corrections lieutenant;
2.8 	(6)(5) a corrections captain;
2.9 	(7)(6) a security counselor;
2.10 	(8)(7) a security counselor lead; or
2.11 	(9)(8) a corrections canine officer.;
2.12 	(9) group supervisor; or
2.13 	(10) group supervisor assistant.

2.14 	Sec. 3. Minnesota Statutes 2010, section 352.91, subdivision 3h, is amended to read:
2.15 		Subd. 3h.Employment occupation name changes. (a) If the occupational title of a 
2.16 	state employee covered by the Minnesota correctional employees retirement plan changes 
2.17 	from the applicable title listed in subdivision 1, 2, 2a, 3c, 3d, 3e, 3f, or 3g, qualification for 
2.18 	coverage by the correctional state employees retirement plan continues until the July 1 
2.19 	next following the title change if the commissioner of management and budget certifies 
2.20 	to the executive director of the Minnesota State Retirement System and to the executive 
2.21 	director of the Legislative Commission on Pensions and Retirement that the duties, 
2.22 	requirements, and responsibilities of the new occupational title are substantially identical 
2.23 	to the duties, requirements, and responsibilities of the prior occupational title.
2.24 	(b) If the commissioner of management and budget does not certify a new 
2.25 	occupational title under paragraph (a), eligibility for future correctional state employees 
2.26 	retirement coverage terminates as of the start of the first payroll period next following the 
2.27 	effective date of the occupational title change.
2.28 	(c) For consideration by the Legislative Commission on Pensions and Retirement 
2.29 	during the legislative session next following an occupational title change involving a state 
2.30 	employee in covered correctional service, the commissioner of management and budget 
2.31 	shall submit the applicable draft proposed legislation reflecting the occupational title 
2.32 	change covered by this section.

2.33 	Sec. 4.  REPEALER.
 3.1 	Minnesota Statutes 2010, section 352.91, subdivisions 2, 2a, 3c, 3d, 3e, 3f, 3g, 3i, 
3.2 	4a, and 4b, are repealed.

3.3 	Sec. 5. EFFECTIVE DATE.
 3.4 	Sections 1 to 4 are effective July 1, 2011.

3.5 	ARTICLE 2
3.6 	CORRECTIONAL EMPLOYEES RETIREMENT PLAN II

3.7 	Section 1. Minnesota Statutes 2010, section 352.72, subdivision 1, is amended to read:
3.8 		Subdivision 1.Entitlement to annuity. (a) Except as provided in paragraph (b), any 
3.9 	person who has been an employee covered by a retirement system listed in paragraph (b)
3.10 	(c) is entitled when qualified to an annuity from each fund if total allowable service in all 
3.11 	funds or in any two of these funds totals three or more years if employed before July 1, 
3.12 	2010, or totals five or more years if employed after June 30, 2010.
3.13 	(b) If the combination of retirement plans includes the correctional state employees 
3.14 	retirement plan of the Minnesota State Retirement System, no retirement annuity is 
3.15 	payable from the correctional state employees retirement plan unless the person has credit 
3.16 	for at least ten years of covered correctional service under section 352.91, although any 
3.17 	covered correctional service may be used to establish eligibility for an annuity from 
3.18 	another retirement plan, and a service credit transfer under section 352.93, subdivision 
3.19 	4a, may be elected.
3.20 	(c) This section applies to the Minnesota State Retirement System, the Public 
3.21 	Employees Retirement Association including the Public Employees Retirement 
3.22 	Association police and fire fund, the Teachers Retirement Association, the State Patrol 
3.23 	Retirement Association, or any other public employee retirement system in the state with 
3.24 	a similar provision, except as noted in paragraph (c) (d).
3.25 	(c)(d) This section does not apply to other funds providing benefits for police 
3.26 	officers or firefighters under chapter 423A, 423B, or 424A.
3.27 	(d)(e) No portion of the allowable service upon which the retirement annuity from 
3.28 	one fund is based shall be again used in the computation for benefits from another fund. 
3.29 	No refund may have been taken from any one of these funds since service entitling 
3.30 	the employee to coverage under the system or the employee's membership in any of 
3.31 	the associations last terminated. The annuity from each fund must be determined by 
3.32 	the appropriate provisions of the law except that the requirement that a person must 
3.33 	have at least a specific number of years of allowable service in the respective system or 
3.34 	association does not apply for the purposes of this section if the combined service in two 
4.1 	or more of these funds equals at least the longest period of allowable service of any of 
4.2 	the applicable retirement plans.

4.3 	Sec. 2. Minnesota Statutes 2010, section 352.93, subdivision 1, is amended to read:
4.4 		Subdivision 1.Basis of annuity; when to apply. After separation from state service, 
4.5 	an employee covered under section 352.91 who has reached age 55 years and is vested 
4.6 	under section 352.925,has credit for at least ten years of covered correctional service is 
4.7 	entitled upon application to a retirement annuity under this section, based only on covered 
4.8 	correctional employees' service. Application may be made no earlier than 60 days before 
4.9 	the date the employee is eligible to retire by reason of both age and service requirements.

4.10 	Sec. 3. Minnesota Statutes 2010, section 352.93, subdivision 2a, is amended to read:
4.11 		Subd. 2a.Early retirement. Any covered correctional employee who becomes at 
4.12 	least 50 years old and is vested under section 352.925,has credit for at least ten years of 
4.13 	covered correctional service is entitled upon application to a reduced retirement annuity 
4.14 	equal to the annuity calculated under subdivision 2, reduced by two-tenths of one percent 
4.15 	for each month that the correctional employee is under age 55 at the time of retirement if 
4.16 	first employed as a correctional state employee before July 1, 2010, and if retired before 
4.17 	July 1, 2015, or reduced by 0.417 percent for each month that the correctional employee is 
4.18 	under age 55 at the time of retirement if first employed as a correctional state employee 
4.19 	after June 30, 2010, or if first employed as a correctional state employee before July 1, 
4.20 	2010, and if retired after June 30, 2015.

4.21 	Sec. 4. Minnesota Statutes 2010, section 352.93, subdivision 4, is amended to read:
4.22 		Subd. 4.Employee with regular and correctional service. A former employee 
4.23 	who has both regular and correctional service shall, if the employee has at least ten years 
4.24 	of covered correctional service and is otherwise qualified, receive an annuity based on 
4.25 	both periods of service under applicable sections of law but no period of service shall be 
4.26 	used more than once in calculating the annuity.

4.27 	Sec. 5. Minnesota Statutes 2010, section 352.93, is amended by adding a subdivision 
4.28 	to read:
4.29 		Subd. 4a.Service credit transfer and partial refund in certain instances. An 
4.30 	employee covered under section 352.91 who has reached the age of 55 years and who has 
4.31 	credit for less than ten years of covered correctional service may, upon written application, 
4.32 	have that covered correctional service credited as allowable service credit in the general 
5.1 	state employees retirement plan and used to calculate a retirement annuity under sections 
5.2 	352.115 and 352.116, and receive, 30 days following retirement, a refund of that portion 
5.3 	of employee contributions during covered correctional service under section 352.92, 
5.4 	subdivision 1, that exceeds the employee contributions required under the general state 
5.5 	employees retirement plan under section 352.04, subdivision 2, for the same period, plus 
5.6 	annual compound interest on the partial refund amount from the date of each contribution 
5.7 	until the date of refund payment at the rate of six percent.

5.8 	Sec. 6. Minnesota Statutes 2010, section 356.30, subdivision 1, is amended to read:
5.9 		Subdivision 1.Eligibility; computation of annuity. (a) Notwithstanding any 
5.10 	provisions of the laws governing the retirement plans enumerated in subdivision 3, a 
5.11 	person who has met the qualifications of paragraph (b) may elect to receive a retirement 
5.12 	annuity from each enumerated retirement plan, other than the correctional state employees 
5.13 	retirement plan of the Minnesota State Retirement System, in which the person has at least 
5.14 	one-half year of allowable service, based on the allowable service in each plan, subject to 
5.15 	the provisions of paragraph (c).
5.16 	(b) A person may receive, upon retirement, a retirement annuity from each 
5.17 	enumerated retirement plan, other than the correctional state employees retirement plan of 
5.18 	the Minnesota State Retirement System, in which the person has at least one-half year of 
5.19 	allowable service, and augmentation of a deferred annuity calculated at the appropriate 
5.20 	rate under the laws governing each public pension plan or fund named in subdivision 3, 
5.21 	based on the date of the person's initial entry into public employment from the date the 
5.22 	person terminated all public service if:
5.23 	(1) the person has allowable service in any two or more of the enumerated plans;
5.24 	(2) the person has sufficient allowable service in total that equals or exceeds the 
5.25 	applicable service credit vesting requirement of the retirement plan with the longest 
5.26 	applicable service credit vesting requirement; and
5.27 	(3) the person has not begun to receive an annuity from any enumerated plan or the 
5.28 	person has made application for benefits from each applicable plan and the effective 
5.29 	dates of the retirement annuity with each plan under which the person chooses to receive 
5.30 	an annuity are within a one-year period.
5.31 	(c) The retirement annuity from each plan must be based upon the allowable service, 
5.32 	accrual rates, and average salary in the applicable plan except as further specified or 
5.33 	modified in the following clauses:
5.34 	(1) the laws governing annuities must be the law in effect on the date of termination 
5.35 	from the last period of public service under a covered retirement plan with which the 
6.1 	person earned a minimum of one-half year of allowable service credit during that 
6.2 	employment;
6.3 	(2) the "average salary" on which the annuity from each covered plan in which 
6.4 	the employee has credit in a formula plan must be based on the employee's highest five 
6.5 	successive years of covered salary during the entire service in covered plans;
6.6 	(3) the accrual rates to be used by each plan must be those percentages prescribed by 
6.7 	each plan's formula as continued for the respective years of allowable service from one 
6.8 	plan to the next, recognizing all previous allowable service with the other covered plans;
6.9 	(4) the allowable service in all the plans must be combined in determining eligibility 
6.10 	for and the application of each plan's provisions in respect to reduction in the annuity 
6.11 	amount for retirement prior to normal retirement age; and
6.12 	(5) the annuity amount payable for any allowable service under a nonformula plan 
6.13 	of a covered plan must not be affected, but such service and covered salary must be used 
6.14 	in the above calculation.; and
6.15 	(6) for a person who was a member of the correctional state employees retirement 
6.16 	plan, the person must have at least ten years of covered correctional service under section 
6.17 	352.91 in order to receive a retirement annuity from that plan, but may apply for a service 
6.18 	credit transfer and partial refund under section 352.93, subdivision 4a.
6.19 	(d) This section does not apply to any person whose final termination from the last 
6.20 	public service under a covered plan was before May 1, 1975.
6.21 	(e) For the purpose of computing annuities under this section, the accrual rates 
6.22 	used by any covered plan, except the public employees police and fire plan, the judges 
6.23 	retirement fund, and the State Patrol retirement plan, must not exceed the percent specified 
6.24 	in section 356.315, subdivision 4, per year of service for any year of service or fraction 
6.25 	thereof. The formula percentage used by the judges retirement fund must not exceed the 
6.26 	percentage rate specified in section 356.315, subdivision 8, per year of service for any 
6.27 	year of service or fraction thereof. The accrual rate used by the public employees police 
6.28 	and fire plan and the State Patrol retirement plan must not exceed the percentage rate 
6.29 	specified in section 356.315, subdivision 6, per year of service for any year of service or 
6.30 	fraction thereof. The accrual rate or rates used by the legislators retirement plan must not 
6.31 	exceed 2.5 percent, but this limit does not apply to the adjustment provided under section 
6.32 	3A.02, subdivision 1, paragraph (c).
6.33 	(f) Any period of time for which a person has credit in more than one of the covered 
6.34 	plans must be used only once for the purpose of determining total allowable service.
6.35 	(g) If the period of duplicated service credit is more than one-half year, or the person 
6.36 	has credit for more than one-half year, with each of the plans, each plan must apply its 
7.1 	formula to a prorated service credit for the period of duplicated service based on a fraction 
7.2 	of the salary on which deductions were paid to that fund for the period divided by the total 
7.3 	salary on which deductions were paid to all plans for the period.
7.4 	(h) If the period of duplicated service credit is less than one-half year, or when 
7.5 	added to other service credit with that plan is less than one-half year, the service credit 
7.6 	must be ignored and a refund of contributions made to the person in accord with that 
7.7 	plan's refund provisions.

7.8 	Sec. 7. MODIFICATION IN CERTAIN POSTRETIREMENT 
7.9 	EMPLOYER-PAID HEALTH INSURANCE COVERAGE.
 7.10 	Notwithstanding any provision to the contrary of any agreement under Minnesota 
7.11 	Statutes, chapter 179A, for any member of the correctional state employees retirement 
7.12 	plan of the Minnesota State Retirement System to be eligible for employer-paid health 
7.13 	insurance coverage after retirement, the person must have at least ten years of covered 
7.14 	correctional service credit under Minnesota Statutes, section 352.91, prior to the 
7.15 	commencement of the retirement annuity under Minnesota Statutes, section 352.93.

7.16 	Sec. 8.  REPEALER.
 7.17 	Minnesota Statutes 2010, section 352.925, is repealed.

7.18 	Sec. 9. EFFECTIVE DATE.
 7.19 	Sections 1 to 8 are effective July 1, 2011.