1.1                          A bill for an act 
  1.2             relating to retirement; public employees retirement 
  1.3             association; revising the workers' compensation offset 
  1.4             applicable to disabilitants; making the change 
  1.5             applicable to certain current disabilitants; amending 
  1.6             Minnesota Statutes 1998, section 353.33, subdivisions 
  1.7             5 and 5b. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 353.33, 
  1.10  subdivision 5, is amended to read: 
  1.11     Subd. 5.  [BENEFITS PAID UNDER WORKERS' COMPENSATION LAW.] 
  1.12  (a) Disability benefits paid ~~shall~~ must be coordinated with any 
  1.13  amounts received or receivable under workers' compensation law, 
  1.14  such as temporary total, permanent total, temporary partial, 
  1.15  permanent partial, or economic recovery compensation benefits, 
  1.16  in either periodic or lump sum payments from the employer under 
  1.17  applicable workers' compensation laws, after the deduction of 
  1.18  the amount of attorney fees, authorized under applicable 
  1.19  workers' compensation laws, which were paid by a disabilitant.  
  1.20     (b) If the total of the single life annuity actuarial 
  1.21  equivalent disability benefit and the workers' compensation 
  1.22  benefit exceeds:  (1) the salary the disabled member received as 
  1.23  of the date of the disability, multiplied by the percentage 
  1.24  increase in the consumer price index for urban wage earners, all 
  1.25  items, published by the bureau of labor statistics of the 
  1.26  federal Department of Labor from the first day of the month next 
  2.1   following the date of the disability to the most recent January 
  2.2   1, or (2) the salary currently payable for the same employment 
  2.3   position or an employment position substantially similar to the 
  2.4   one the person held as of the date of the disability, whichever 
  2.5   is greater, the disability benefit must be reduced to that 
  2.6   amount which, when added to the workers' compensation benefits, 
  2.7   does not exceed the greater of the salaries described in clauses 
  2.8   (1) and (2). 
  2.9      Sec. 2.  Minnesota Statutes 1998, section 353.33, 
  2.10  subdivision 5b, is amended to read: 
  2.11     Subd. 5b.  [BENEFITS PAID UNDER WORKERS' COMPENSATION 
  2.12  LAW.] (a) A disabled member who is eligible to receive a 
  2.13  disability benefit under subdivision 5 as of June 30, 1987, and 
  2.14  whose disability benefit amount had been reduced prior to July 
  2.15  1, 1987, as a result of the receipt of workers' compensation 
  2.16  benefits, must have the disability benefit payment amount 
  2.17  restored, as of July 1, 1987, calculated in accordance with 
  2.18  subdivision 5.  However, a disabled member is not entitled to 
  2.19  receive retroactive repayment of any disability benefit amounts 
  2.20  lost before July 1, 1987, as a result of the reduction required 
  2.21  before that date because of the receipt of workers' compensation 
  2.22  benefits.  Any disability benefit overpayments made before July 
  2.23  1, 1987, and occurring because of the failure to reduce the 
  2.24  disability benefit payment to the extent required because of the 
  2.25  receipt of workers' compensation benefits, may be collected by 
  2.26  the association through the reduction of disability benefit or 
  2.27  annuity payment made on or after July 1, 1987, until the 
  2.28  overpayment is fully recovered. 
  2.29     (b) A disabled member who began receipt of a disability 
  2.30  benefit after June 30, 1987, who is eligible to receive a 
  2.31  disability benefit under subdivision 5 as of June 30, 2000, and 
  2.32  whose disability benefit amount had been reduced before June 30, 
  2.33  2000, as a result of the receipt of workers' compensation 
  2.34  benefits must have the disability benefit amount restored as of 
  2.35  July 1, 2000, calculated in accordance with subdivision 5.  
  2.36  However, a disabled member is not entitled to receive 
  3.1   retroactive repayment of any disability benefit amounts lost 
  3.2   before July 1, 2000, as a result of the reduction required 
  3.3   before that date because of the receipt of workers' compensation 
  3.4   benefits. 
  3.5      (c) The survivor of a disabled member who began receipt of 
  3.6   disability benefits effective September 23, 1988, and who had 
  3.7   the survivor benefit reduced as a result of a disability benefit 
  3.8   overpayment under subdivision 5, in November 1997, must have the 
  3.9   survivor benefit amount restored as of July 1, 2000, and is 
  3.10  entitled to receive retroactive repayment of any previously 
  3.11  reduced benefit amounts, plus interest at a compound normal rate 
  3.12  of six percent, from the date that the benefit would otherwise 
  3.13  have been paid, until July 1, 2000. 
  3.14     Sec. 3.  [EFFECTIVE DATE.] 
  3.15     Sections 1 and 2 are effective July 1, 2000.