Article 1

Section

Statutory Provision

Proposed Change

1

Section 353.01, Subdivision 2

Updates crossreferences and revised language usage in general membership provision.

2

Section 353.01, Subdivision 2a

Makes PERA coverage mandatory for all public employees. Eliminates the exclusion from coverage of low salary public employees.

3

Section 353.01, Subdivision 2b

Revises the specification of public employees excluded from membership. Excludes elected officials other than county sheriffs. Narrows the exclusion of full-time student public employees. Adds exclusion of seasonal employees who serve less than 185 days annually. Adds exclusion of certain sheltered employment or work-study employees.

4

Section 353.01, New Subdivision 2d

Creates optional membership provision by individual election for labor organization employees, elected officials, state department heads who elect not to be MSRS-General Plan members, and city managers. Creates optional membership provision by employer election for Minnesota township association employees, and county historical society employees.

5

Section 353.01, Subdivision 7

Clarifies the definition of "member."

6

Section 353.01, Subdivision 11b

Revises the termination of PERA membership provision.

7

Section 353.01, Subdivision 12

Clarifies the definition of "authorized temporary layoff."

8

Section 353.01, Subdivision 12a

Clarifies the definition of "temporary position."

9

Section 353.01, new Subdivision 38

Defines the term "business year."

10

Section 353.86, Subdivision 1

Limits the volunteer ambulance service personnel participation provision to pre-July 1, 2001 personnel.

11

Effective Date

July 1, 2002 effective date.

Article 2

1

Section 353.01, Subdivision 16

Revises the definition of "allowable service." Limits credit for various leaves to prorated amounts. Limits the credit given for authorized temporary layoffs occurring after July 1, 2002. Restricts the on-leave military service credit provision to U.S. military service. Imposes fractional service credit for benefit calculation purposes for post-July 1, 2002 entrants employed less than 80 hours per month as a public employee.

2

Section 353.01, new Subdivision 39

Defines the term "compensated hours."

3

Section 353.27, Subdivision 4

Requires employer reporting of compensated hours.

4

Section 353.27, Subdivision 11

Requires employer reporting of actual or estimated compensated hours.

5

Effective Date

July 1, 2002 effective date.

Article 3

Section

Statutory Provision

Proposed Change

1

Section 353.27, Subdivision 2

Increases coordinated member contribution rate by 0.375 percent on January 1, 2002, and by 0.25 percent on January 1, 2004, if the plan still has a financing deficiency.

2

Section 356.215, Subdivision 4g

Resets the PERA General Plan amortization date from 2020 to 2031.

3

Effective Date

December 31, 2001 effective date.

Article 4

1

Section 353.01, New Subdivision 40

Defines the term "vesting" as three years of allowable service for pre-July 1, 2002, entrants and five years of allowable service for post-June 30, 2002, entrants.

2

Section 353.29, Subdivision 1

Replaces the age and service retirement annuity vesting requirement with a reference to the vesting definition.

3

Section 353.32, Subdivision 1a

Replaces the specific surviving spouse optional annuity vesting requirement with a reference to the vesting definition.

4

Section 353.33, Subdivision 1

Replaces the specific disability benefit vesting requirement with a reference to the vesting definition.

5

Section 353.34, Subdivision 1

Amends the refund eligibility provision by referencing the enhanced refund provision.

6

Section 353.34, Subdivision 2

Eliminates the fiscal year balance basis for calculating refunds.

7

Section 353.34, new Subdivision 2a

Provides for the partial refund of employer contributions, depending on the member’s age at the time of payment.

8

Section 353.34, new Subdivision 2b

Repositions a provision from Section 353.34, Subdivision 2.

9

Section 353.34, Subdivision 3

Replaces the specific deferred annuity vesting requirement with a reference to the vesting definition.

10

Section 353.35, Subdivision 2

Adds reference to employer contribution refund to refund repayment provision.

11

Section 353.71, Subdivision 1

Replaces the specific "service in more than one fund" portability vesting requirement with a reference to the vesting definition.

12

Section 353.71, Subdivision 2

Reduces the deferred annuities augmentation rate from five percent for some periods to three percent for all deferred periods.

13

Effective Date

Article 5

1

Section 273.1385, Subdivision 1

Increases the 1997 PERA employing unit aid program by $13.5 million in fiscal year 2002 and $27 million thereafter.

2

Section 353.27, Subdivision 3a

Increases the PERA employer additional contribution by 0.75 percent.