LCPR03-252
A bill for an act
relating to retirement; Public
Employees Retirement
Association; creating a post‑sentencing
officers and
emergency dispatchers retirement
plan; amending
Minnesota Statutes 2002, sections
3.85, subdivisions
11 and 12; 352.01, subdivision 2b;
353.01, subdivision
2b; 355.01, subdivisions 2e, 2f, 3j,
3k, 3l; 355.02,
subdivision 3; 356.20, subdivision 2;
356.215,
subdivisions 8 and 11; 356.30,
subdivision 3; 356.302,
subdivision 7; 356.303, subdivision
4; 356.315, by
adding a subdivision; 356.465,
subdivision 3; and
356.555, subdivision 4; and proposing
coding for new
law as Minnesota Statutes, chapter
353G.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF MINNESOTA:
ARTICLE 1
POST‑SENTENCING OFFICERS AND
EMERGENCY
DISPATCHERS RETIREMENT PLAN
CREATION
Section 1. 353G.01 POST‑SENTENCING
OFFICERS AND
EMERGENCY DISPATCHERS RETIREMENT
PLAN; DEFINITIONS.
Subdivision 1. IN
GENERAL. For purposes of this chapter,
unless the language or the context
clearly indicates that a
different meaning is intended, each
of the following terms has
the meaning ascribed.
Subd. 2. ACCUMULATED
CONTRIBUTIONS. "Accumulated
contributions" means the total
of member contributions made by
salary deductions or by assessments
or payments made in lieu of
salary deductions, if authorized, which
are credited by the
retirement plan and entered into
the member's individual record.
Subd. 3. ACTUARIAL
EQUIVALENT. "Actuarial equivalent"
means the condition of one annuity
or benefit having an equal
actuarial present value as another
annuity or benefit,
determined as of a given date with
each actuarial present value
based on the appropriate mortality
table adopted by the board of
trustees based on the experience of
that retirement fund
association as recommended by the
actuary retained by the
legislative commission on pensions
and retirement and using the
applicable preretirement or post‑retirement
interest rate
assumption specified in section
356.215, subdivision 8.
Subd. 4. ALLOWABLE
SERVICE. "Allowable service" means
any service rendered by a post‑sentencing
officer or an
emergency dispatcher during a
period in which the officer or
dispatcher receives salary from a
public employer from which
member contribution salary
deductions are made to and credited
by the post‑sentencing
officers and emergency dispatchers
retirement plan.
Subd. 5. ANNUITY. "Annuity"
means the payments made by
the post‑sentencing officers
and emergency dispatchers
retirement plan in the form of a
retirement annuity or an
optional annuity.
Subd. 6. APPROVED
ACTUARY. "Approved actuary" means (1)
any actuary who is either a fellow
of the society of actuaries
or who has at least 15 years of
service to major public employee
retirement funds; or (2) any firm
which retains such an actuary
on its staff.
Subd. 7. AVERAGE
SALARY. "Average salary" means the
average of the highest five
successive years of salary which the
post‑sentencing officer or
emergency dispatcher has made
contributions to the retirement
fund by payroll deduction. If
the officer or dispatcher has less
than five years of allowable
service, the term means the average
of salary for the entire
period of allowable service.
Subd. 8. BENEFIT. "Benefit"
means the allowance paid or
payable by the post‑sentencing
officers and emergency
dispatchers retirement plan to a
surviving spouse, designated
beneficiary, surviving child or
estate or in periodic payments
to a member or former member of the
retirement plan who is
permanently and totally disabled.
Subd. 9. BOARD. "Board"
means the board of trustees of
the Public Employees Retirement
Association.
Subd. 10. DEPENDENT
CHILD. "Dependent child" means any
biological or adopted child of a
deceased post‑sentencing
officer or emergency dispatcher who
has not reached the age of
20 and is dependent on the officer
or dispatcher for more than
one‑half of the child's
support at the time of the death of the
officer or dispatcher. It also means a child of the officer or
dispatcher conceived during the
lifetime of the officer or
dispatcher and born after the death
of the officer or the
dispatcher.
Subd. 11. DESIGNATED
BENEFICIARY. "Designated
beneficiary" means the person
who is designated by an active or
retired post‑sentencing
officer or emergency dispatcher to
receive the benefits to which a
beneficiary is entitled to
receive under this chapter. A beneficiary designation is valid
only if it is made on the
applicable form prescribed by the
director, is properly completed and
signed, and is received by
the Public Employees Retirement
Association or is postmarked on
or before the date of the death of
the officer or dispatcher.
If no beneficiary is designated or
if the designated beneficiary
predeceases the officer or
dispatcher, the term means the estate
of the deceased officer or
dispatcher.
Subd. 12. DIRECTOR OR
EXECUTIVE DIRECTOR. "Director" or
"executive director"
means the executive director of the Public
Employees Retirement Association.
Subd. 13. DISABILITY.
"Disability" or "total and
permanent disability" means
the inability of a post‑sentencing
officer or emergency dispatcher to
engage in any substantial
gainful employment activity by
reason of a medically
determinable physical or mental
impairment which is reasonably
expected to be of a long‑continued
and indefinite duration,
which in no event may be less than
one year.
Subd. 14. DISPATCHER.
"Dispatcher" means an emergency
dispatcher.
Subd. 15. EMERGENCY
DISPATCHER. "Emergency dispatcher"
means a governmental employee who
is employed at a primary
public safety answering point,
whose primary employment
responsibility is receiving
emergency "911" telephone
communications from the public which
requires the subsequent
contact with and the response by
police, fire, or medical
resources, and who is certified by
the governmental employer as
regularly and consistently spending
at least a majority of the
person's employment time in those
duties.
Subd. 16. MEMBER. "Member"
means a post‑sentencing
officer or an emergency dispatcher
who makes regular member
contributions to the retirement
plan in that capacity.
Subd. 17. NORMAL
RETIREMENT AGE. "Normal retirement age"
means age 55.
Subd. 18. NORMAL
RETIREMENT ANNUITY. "Normal retirement
annuity" means a retirement
annuity computed under section 7,
subdivision 2, that is paid or is
payable to a member upon
meeting the age and service
requirements specified in section 7,
subdivision 1.
Subd. 19. OFFICER. "Officer"
means a post‑sentencing
officer.
Subd. 20. OPTIONAL
ANNUITY FORM. "Optional annuity form"
means an alternate means for the
receipt of an annuity
established by the board under
section 7, subdivision 5.
Subd. 21. POST‑SENTENCING
OFFICER. "Post‑sentencing
officer" means a governmental
employee who is responsible for
the control, supervision, and care
of convicted offenders on
probation in lieu of imprisonment
or of offenders conditionally
released on parole after
imprisonment and who is certified by
the governmental employer as
regularly and consistently spending
at least a majority of the person's
employment time in the
direct control, supervision, and
care of convicted offenders who
represent a risk of violence or
physical harm to the employee.
Subd. 22. PRIMARY
PUBLIC SAFETY ANSWERING
POINT. "Primary public safety answering
point" is a
communications facility that is
operated by a governmental
entity and that is operated on a 24‑hour
basis to be the initial
emergency "911" telephone
communications from persons in a 911
service area and that is
authorized, as appropriate, to directly
dispatch public safety services or
to extend, transfer, or relay
the communications to the
appropriate public safety agency.
Subd. 23. REDUCED
RETIREMENT ANNUITY. "Reduced
retirement annuity" means an
annuity paid between age 50 and age
55 under section 7, subdivision 3.
Subd. 24. RETIREMENT.
"Retirement" means the time after
the date of the cessation of active
service by a post‑sentencing
officer or emergency dispatcher who
is thereafter entitled to an
accrued retirement annuity which is
payable under an application
filed by the former officer or
dispatcher. The provisions of
law in effect on the date that the
officer or dispatcher ceases
rendering active service in that
capacity thereafter determines
the rights of the person with
respect to the plan.
Subd. 25. RETIREMENT
ANNUITY. "Retirement annuity" means
an annuity computed under section 7
and paid by the director to
the retired post‑sentencing
officer or emergency dispatcher or
to the specified remainder
recipient under an optional annuity
form.
Subd. 26. SALARY OR
COVERED SALARY. (a) "Salary" or
"covered salary" means:
(1) the wages paid to a post‑sentencing officer or an
emergency dispatcher before
deductions for deferred
compensation, supplemental
retirement plans, or other voluntary
salary reductions; or
(2) other periodic compensation, paid to an officer or
dispatcher before deductions for
deferred compensation,
supplemental retirement plans, or
other voluntary salary
reductions; and
(3) during a period of receipt of worker's compensation
while on a leave of absence, the differential
between the salary
that the officer or dispatcher
would normally receive during the
leave and the salary received, if
any, on which the officer or
dispatcher makes a member
contribution equivalent amount.
(b) "Salary" or "covered salary" does not mean:
(1) lump sum sick leave payments;
(2) severance payments;
(3) lump sum annual leave payments;
(4) overtime payments made at the time of separation from
state service;
(5) payments in lieu of employer‑paid group insurance
coverage, including the difference
between single rates and
family rates for an officer or
dispatcher with single coverage;
(6) employer contributions to a deferred compensation or
tax‑sheltered annuity
program; and
(7) amounts contributed under a benevolent vacation or sick
leave donation program.
Subd. 27. SPOUSE. "Spouse"
means the person who was
legally married to the post‑sentencing
officer or the emergency
dispatcher immediately prior to the
death of the officer or
dispatcher.
Sec. 2. 353G.02 RETIREMENT
PLAN AND FUND.
Subdivision 1. ESTABLISHMENT.
The post‑sentencing
officers and emergency dispatchers
retirement plan is
established.
Subd. 2. FUND. (a)
A post‑sentencing officers and
emergency dispatchers retirement
fund is established within the
state treasury.
(b) Member contributions under section 5, subdivision 1,
employer contributions under
section 5, subdivision 2, and
revenue derived from the investment
of fund assets must be
deposited in the post‑sentencing
officers and emergency
dispatchers retirement fund.
(c) Payable from the post‑sentencing officers and emergency
dispatchers retirement fund are
refunds of member contributions
under section 5, retirement annuities
under section 7,
disability benefits under section
9, survivorship benefits under
section 10, and necessary and
reasonable expenses of
administering the plan and fund.
Subd. 3. AUDIT. The
legislative auditor shall audit the
plan and fund.
Sec. 3. 353G.03 ADMINISTRATION.
The post‑sentencing officers and emergency dispatchers
retirement plan and fund must be
administered by the board of
trustees and the executive director
of the Public Employees
Retirement Association. Fiduciary activities regarding the plan
and the fund must be undertaken in
a manner consistent with
chapter 356A.
Sec. 4. 353G.04 INVESTMENTS;
PARTICIPATION IN THE POST
RETIREMENT INVESTMENT FUND.
Subdivision 1. INVESTMENTS.
The State Board of
Investment shall invest and
reinvest the post‑sentencing
officers and emergency dispatchers
retirement fund under
chapters 11A and 356A.
Subd. 2. TREASURER.
The commissioner of finance is the
ex officio treasurer of the post‑sentencing
officers and
emergency dispatchers retirement
fund. The treasurer shall
provide the executive director of
the Public Employees
Retirement Association with a
detailed statement of revenues and
disbursements.
Subd. 3. POST
RETIREMENT INVESTMENT FUND. (a) The
post‑sentencing officers and
emergency dispatchers retirement
plan must participate in the
Minnesota post retirement
investment fund. Assets representing the retirement annuities
payable by the plan must be
deposited in the investment fund and
necessary amounts must be withdrawn
to pay annuity amounts due
and payable. The amounts necessary are annually
appropriated
for this purpose.
(b) For former plan members beginning the receipt of
annuities, the required reserves
must be determined in
accordance with the appropriate
mortality table based on the
experience of the plan as
recommended by the actuary retained by
the legislative commission on
pensions and retirement and
approved by the commission under
section 356.215 and using the
applicable post‑retirement
interest rate assumption specified in
section 356.215, subdivision
8. Assets representing the
required reserves for those
annuities must be transferred to the
Minnesota post retirement
investment fund as of the last
business day of the month in which
the retirement annuity begins
as specified in section 11A.18.
Sec. 5. 353G.05 CONTRIBUTION
RATES.
Subdivision 1. MEMBER
CONTRIBUTION; SALARY
DEDUCTION. (a) A member of the post‑sentencing
officers and
emergency dispatchers retirement
plan shall pay an amount equal
to ... percent of the salary of the
member, which constitutes
the member contribution to the
fund.
(b) Member contribution amounts must be deducted from the
salary payable to the member each
pay period by the department
head. The employing agency shall have the deduction
paid to the
fund treasurer for deposit into the
post‑sentencing officers and
emergency dispatchers retirement
fund and shall make a detailed
report of deductions made each pay
period to the executive
director of the Public Employees
Retirement Association.
Subd. 2. EMPLOYER
CONTRIBUTION. The employer of a member
of the post‑sentencing
officers and emergency dispatchers
retirement plan shall pay an amount
equal to ... percent of the
salary of the member, which
constitutes the employer
contribution to the fund.
Subd. 3. OMITTED
DEDUCTIONS. (a) If the employer fails
to take deductions which are past
due for a period of less than
61 days, those deductions must be
taken from a later member
salary payment.
(b) If the employer fails to take deductions which are past
due for a period longer than 60
days or if the plan member is no
longer employed in covered employment,
the employer must pay the
amount of the omitted deduction,
the amount of any unpaid
employer contribution, plus an
amount equal to 8.5 percent of
the total amount due if the failure
to make a payment is of less
than one year in duration and plus annual
compound interest at
the rate of 8.5 percent per annum
if the failure to make a
payment is a period of 12 months or
greater.
Sec. 6. 353G.06 PLAN
MEMBERSHIP; SOCIAL SECURITY
COVERAGE.
(a) Except as provided in paragraph (b), a post‑sentencing
officer or an emergency dispatcher,
by accepting employment in
that capacity or by continuing
employment in that capacity,
accepts coverage by the post‑sentencing
officers and emergency
dispatchers retirement plan in lieu
of any other Minnesota
public pension plan coverage.
(b) A person who was employed in a post‑sentencing officer
position or in an emergency
dispatcher position on July 1, 2005,
and who is at least 45 years of age
on that date, may make a
one‑time election to retain
the person's existing retirement
coverage and to decline a transfer
to coverage by the
post‑sentencing officers and
emergency dispatchers retirement
plan. The election must be made in writing on a
form prescribed
by the executive director and is
irrevocable.
(c) Members of the post‑sentencing officers and emergency
dispatchers retirement plan must be
covered by the federal old
age, survivors, disability and
health insurance program under
chapter 355 by virtue of employment
covered by the plan.
Sec. 7. 353G.07 RETIREMENT
ANNUITY.
Subdivision 1. ELIGIBILITY.
(a) After terminating
employment, a former post‑sentencing
officer or a former
emergency dispatcher who has
attained the age of 55 years and
who has credit for three years of
allowable service under
section 1, subdivision 4, is
entitled, upon application, to a
normal retirement annuity.
(b) In lieu of a normal retirement annuity, a retiring
former post‑sentencing officer
or emergency dispatcher may elect
to receive an optional annuity form
under subdivision 5.
Subd. 2. ANNUITY
AMOUNT. The retirement annuity amount
is the average salary under section
1, subdivision 4, of the
retiring post‑sentencing
officer or the retiring emergency
dispatcher multiplied by the
percentage amount specified in
section 356.315, subdivision 5b,
for each year of allowable
service of the person and the
appropriate fractional amount for
the number of months of allowable
service less than a full year.
Subd. 3. EARLY
RETIREMENT. A former post‑sentencing
officer or a former emergency
dispatcher who has attained the
age of at least 50 years and has
credit for not less than three
years of allowable service credit
under section 1, subdivision
4, is entitled, upon application,
to a reduced retirement
annuity. The reduced retirement annuity is an amount
equal to
the annuity calculated under
subdivision 2 reduced so that the
subsequent reduced annuity is the
actuarial equivalent at that
age of the annuity that would be
payable if the person deferred
receipt of the annuity from the day
that the annuity begins to
accrue until age 55.
Subd. 4. ACCRUAL AND
DURATION. The retirement annuity
under this section accrues on the
first day of the first
calendar month after the date on
which the former
post‑sentencing officer or
the former emergency dispatcher
terminates covered service. The annuity must be paid in equal
monthly installments each year and
does not accrue beyond the
end of the month in which
entitlement to the annuity ends or is
terminated. If the annuitant dies prior to negotiating
the
check for the month in which the
annuitant's death occurs,
payment must be made to the
person's surviving spouse, or if
none, to the designated beneficiary
of the person, or if none,
to the estate of the person. The retirement annuity is payable
for the life of the recipient or in
accord with the terms of any
optional annuity form that was
selected by the retiring plan
member.
Subd. 5. OPTIONAL
ANNUITY FORMS. (a) The board of
trustees shall establish optional
annuity forms, including a
joint and survivor annuity. Except as provided in paragraph
(b), the optional annuity forms
must be the actuarial equivalent
to the normal retirement annuity,
the early reduced retirement
annuity, or the disability benefit,
whichever applies. In
establishing the optional annuity
forms, the board shall obtain
the written recommendation of the
consulting actuary retained by
the legislative commission on
pensions and retirement and must
retain those recommendations as
part of the permanent records of
the board. A retiring plan member may select an optional
annuity form in lieu of any other
available annuity or benefit
form.
(b) If a retiring plan member or a disabilitant selects a
joint and survivor optional annuity
form under paragraph (a),
the retiring plan member or
disabilitant must receive a normal
single life annuity if the
designated optional annuity
beneficiary dies before the primary
annuity receipt. No
reduction under this option may be
made in the person's annuity
to provide for the restoration of
the normal single life annuity
in the event of the death of the
designated optional annuity
beneficiary.
Sec. 8. 353G.08 AUGMENTATION
OF CERTAIN ANNUITIES.
(a) Unless a combined service annuity under section 356.30
has been elected, a person who
becomes a member of this plan
after having been a member of the
general employees retirement
plan of the Public Employees
Retirement Association, of the
public employees police and fire
retirement plan, of the local
government correctional service
retirement plan of the public
employee retirement association, of
the general state employees
retirement plan of the Minnesota
State Retirement System, or of
the correctional state employees
retirement plan of the
Minnesota State Retirement System
is covered under section
352.72, subdivision 2, or 353.71,
subdivision 2, whichever
applies, with respect to that prior
service.
(b) A person who becomes a member of one of the retirement
plans cited in paragraph (a) after
having been a member of this
plan is also covered under section
352.72, subdivision 2, or
353.71, subdivision 2, whichever
applies, with respect to that
prior service, unless the annuity
is calculated under section
356.30.
Sec. 9. 353G.09 DISABILITY
BENEFITS.
Subdivision 1. AGE AND
SERVICE REQUIREMENTS. A
post‑sentencing officer or an
emergency dispatcher who is
covered by the plan, who is less
than normal retirement age, and
who becomes totally and permanently
disabled after rendering
three or more years of allowable
service is entitled to a
disability benefit in an amount
provided in subdivision 3. If
the disabled officer or
dispatcher's allowable service has
terminated at any time, the officer
or dispatcher must have
rendered at least two years of
allowable service after last
becoming an officer or dispatcher
covered by the plan. Refunds
may be repaid under section 11
before the effective accrual date
of the disability benefit under
subdivision 2.
Subd. 2. APPLICATION;
ACCRUAL OF BENEFITS. A
post‑sentencing officer or an
emergency dispatcher making claim
for a total and permanent
disability benefit, or someone acting
on behalf of the officer or
dispatcher upon proof of authority
satisfactory to the executive
director of the Public Employees
Retirement Association, shall file
a written application for
benefits in the office of the
Public Employees Retirement
Association. The application must be in a form and manner
prescribed by the executive
director of the Public Employees
Retirement Association. The benefit begins to accrue on the day
following the start of disability
or on the day following the
last day paid, whichever is later,
but not earlier than 180 days
before the date the application is
filed with the director.
Subd. 3. COMPUTATION OF
BENEFITS. The total and
permanent disability benefit must
be computed in the manner
provided in section 6. The disability benefit is an amount
equal to the normal annuity without
reduction for each month the
post‑sentencing officer or
emergency dispatcher is under the
normal retirement age at the time
of becoming disabled. A
disabled officer or dispatcher may
choose to receive the normal
disability benefit or an optional
annuity as provided in section
7, subdivision 5. 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.
Subd. 4. MEDICAL OR
PSYCHOLOGICAL EXAMINATIONS;
AUTHORIZATION FOR PAYMENT OF
BENEFIT. (a) An applicant
shall
provide medical or psychological
evidence to support an
application for total and permanent
disability. The executive
director of the Public Employees
Retirement Association shall
have the post‑sentencing
officer or emergency dispatcher
examined by at least one additional
licensed chiropractor,
physician, or psychologist
designated by the medical adviser.
The examining chiropractors,
physicians, or psychologists shall
make written reports to the
director concerning the officer or
dispatcher's disability, including
medical opinions as to
whether the officer or dispatcher
is permanently and totally
disabled within the meaning of
section 1, subdivision 13.
(b) The director shall also obtain written certification
from the employer stating whether
the employment has ceased or
whether the officer or dispatcher
is on a sick leave of absence
because of a disability that will
prevent further service to the
employer and as a consequence the
officer or dispatcher is not
entitled to compensation from the
employer.
(c) The medical adviser shall consider the reports of the
physicians, psychologists, and
chiropractors and any other
evidence supplied by the officer or
dispatcher or other
interested parties. If the medical adviser finds the officer or
dispatcher totally and permanently
disabled, the adviser shall
make the appropriate recommendation
to the director in writing
together with the date from which
the officer or dispatcher has
been totally disabled. The director shall then determine if the
disability occurred within 180 days
of filing the application,
if the disability occurred while
still in covered employment,
and the propriety of authorizing
payment of a disability benefit
as provided in this section. A terminated officer or dispatcher
may apply for a disability benefit
within 180 days of the
termination of covered employment
as long as the disability
occurred while in covered
employment. The fact that the officer
or dispatcher is placed on a leave
of absence without
compensation because of disability
does not bar that officer or
dispatcher from receiving a
disability benefit.
Subd. 5. DISABILITY
BENEFIT TERMINATION. Unless payment
of a disability benefit has
terminated because the
post‑sentencing officer or
the emergency dispatcher is no longer
totally disabled, or because the
officer or dispatcher has
reached normal retirement age as
provided in this section, the
disability benefit must cease with
the last payment which was
received by the disabilitant or
which had accrued during the
lifetime of the disabilitant unless
there is a spouse
surviving. If there is a surviving spouse, the surviving
spouse
is entitled to the disability
benefit payment for the calendar
month in which the disabilitant
died.
Subd. 6. REGULAR
MEDICAL OR PSYCHOLOGICAL EXAMINATIONS.
At least once each year during the
first five years following
the allowance of a disability
benefit to any post‑sentencing
officer or emergency dispatcher,
and at least once in every
three‑year period thereafter,
the executive director of the
Public Employees Retirement
Association may require the
disability benefit recipient to
undergo a medical or
psychological examination. The
examination must be made at the
place of residence of the
disabilitant, or at any place mutually
agreed upon by the disabilitant and
the director, and must be
made by a physician or physicians
designated by the medical
adviser and engaged by the
director. If any examination
indicates to the medical adviser
that the disability benefit
recipient is no longer permanently
and totally disabled, or is
engaged in or can engage in a
gainful occupation, payments of
the disability benefit by the plan
must be discontinued. The
payments must discontinue as soon
as the officer or dispatcher
is reinstated to the payroll
following the sick leave, but in no
case may the payment be made for
more than 60 days after the
medical adviser finds that the
officer or dispatcher is no
longer permanently and totally
disabled.
Subd. 7. PARTIAL
REEMPLOYMENT. If the disabilitant
resumes a gainful occupation from
which earnings are less than
the salary of the post‑sentencing
officer or emergency
dispatcher at the date of
disability or the salary currently
paid for similar positions, the
director shall continue the
disability benefit in an amount
which when added to earnings
does not exceed the salary at the
date of disability, provided
that the disability benefit in this
case does not exceed the
disability benefit originally
allowed. Deductions for the
retirement fund must not be taken
from the salary of a
disabilitant who is receiving a
disability benefit as provided
in this subdivision.
Subd. 8. REFUSAL OF
EXAMINATION. If a disability benefit
recipient refuses to submit to a
medical examination as
required, disability benefit
payments must be discontinued and
the director shall revoke all
rights of the post‑sentencing
officer or emergency dispatcher to
any disability benefit.
Subd. 9. RETURN TO
STATE SERVICE. Any disability benefit
recipient who is restored to active
service, except
post‑sentencing officers or
emergency dispatchers receiving
benefits as provided in subdivision
7, must have deductions
taken for the retirement fund and,
upon retirement, have the
payable retirement annuity based
upon all allowable service,
including that allowable service
upon which the disability
benefits were based. No post‑sentencing officer or emergency
dispatcher is entitled to receive
disability benefits and a
retirement annuity at the same
time.
Subd. 10. DISABILITANT
AGAIN DISABLED AFTER RESUMING
EMPLOYMENT. If a disabled benefit recipient resumes
gainful
employment 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
post‑sentencing officer or
emergency dispatcher has been
employed for one year thereafter.
If the officer or dispatcher again
becomes totally and
permanently disabled before
reaching the normal retirement age,
an application for a disability
benefit may again be made. If
the officer or dispatcher is
entitled to a disability benefit,
it must be computed as provided in
subdivision 9.
Subd. 11. RECOMPUTATION
OF BENEFIT. If a disabled
post‑sentencing officer or
emergency dispatcher who has resumed
employment as provided in
subdivision 10 is reemployed for more
than three months, but cannot
continue employment for one year,
the disability benefit must be
recomputed allowing additional
service credit for the period of
reemployment. If the period of
reemployment does not exceed three
months, the deductions taken
from salary after resuming
employment must be returned to the
officer or dispatcher. The officer or dispatcher is not
entitled to service credit for the
period covered by the
returned deductions.
Subd. 12. RETIREMENT
STATUS AT NORMAL RETIREMENT AGE.
The disability benefit paid to a
disability benefit recipient
under this section ends when the
post‑sentencing officer or
emergency dispatcher reaches normal
retirement age. If the
disabled officer or dispatcher is
still totally and permanently
disabled when the officer or
dispatcher reaches normal
retirement age, the officer or
dispatcher must be considered to
be a retired member. If the officer or dispatcher had chosen an
optional annuity under subdivision
3, the officer or dispatcher
must receive an annuity in
accordance with the terms of the
optional annuity previously
chosen. If the officer or
dispatcher had not chosen an
optional annuity under subdivision
3, the officer or dispatcher may
then choose to receive either a
normal retirement annuity equal in
amount to the disability
benefit paid before the person
reached normal retirement age or
an optional annuity as provided in
section 6, subdivision 5.
The choice of an optional annuity
must be made before reaching
normal retirement age. If an optional annuity is chosen, the
choice is effective on the date on
which the person attains
normal retirement age and the
optional annuity must begin to
accrue the first of the month next
following the month in which
the person attains this age.
Sec. 10. 353G.10 DEATH
AND SURVIVORSHIP BENEFITS.
Subdivision 1. DEATH
BEFORE TERMINATION OF SERVICE. If a
post‑sentencing officer or
emergency dispatcher dies before
active employment has terminated
and neither a survivor annuity
nor a reversionary annuity is
payable, or if a former
post‑sentencing officer or
emergency dispatcher who has
sufficient service credit to be
entitled to an annuity dies
before the benefit has become
payable, the executive director of
the Public Employees Retirement
Association shall make a refund
to the last designated beneficiary
or, if there is none, to the
surviving spouse or, if none, to
the officer or dispatcher's
surviving children in equal shares
or, if none, to the officer
or dispatcher's surviving parents
in equal shares or, if none,
to the representative of the estate
in an amount equal to the
accumulated member contributions,
plus interest 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. Upon the death of an officer or dispatcher
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 officer or dispatcher 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,
unless the death occurred before
any payment could be negotiated.
Subd. 2. SURVIVING
SPOUSE BENEFIT. (a) If a
post‑sentencing officer or
emergency dispatcher or former
officer or dispatcher has credit
for at least three years
allowable service and dies before
an annuity or disability
benefit has become payable,
notwithstanding any designation of
beneficiary to the contrary, the
surviving spouse of the officer
or dispatcher may elect to receive,
in lieu of the refund with
interest under subdivision 1, an
annuity equal to the joint and
100 percent survivor annuity which
the officer or dispatcher or
former officer or dispatcher could
have qualified for on the
date of death.
(b) If the officer or dispatcher was under age 55 and has
credit for at least 30 years of
allowable service on the date of
death, the surviving spouse may
elect to receive a 100 percent
joint and survivor annuity based on
the age of the officer or
dispatcher and surviving spouse on
the date of death. The
annuity is payable using the full
early retirement reduction
under section 6, subdivision 3, to
age 55 and one‑half of the
early retirement reduction from age
55 to the age at which
payment begins.
(c) If the officer or dispatcher was under age 55 and has
credit for at least three years of
allowable service credit on
the date of death but did not yet
qualify for retirement, the
surviving spouse may elect to
receive a 100 percent joint and
survivor annuity based on the age
of the person and surviving
spouse at the time of death. The annuity is payable using the
full early retirement reduction
under section 6, subdivision 3,
to age 55 and one‑half of the
early retirement reduction from
age 55 to the age payment begins.
(d) The surviving spouse eligible for benefits under
paragraph (a) may apply for the annuity
at any time after the
date on which the officer or
dispatcher or former officer or
dispatcher would have attained the
required age for retirement
based on the allowable service
earned. The surviving spouse
eligible for surviving spouse
benefits under paragraph (b) or
(c) may apply for the annuity at
any time after the officer or
dispatcher's death. The annuity must be computed under section
6.
Section 7 applies to a deferred annuity or surviving spouse
benefit payable under this
subdivision. The annuity must cease
with the last payment received by
the surviving spouse in the
lifetime of the surviving spouse,
or upon expiration of a term
certain benefit payment to a
surviving spouse under subdivision
2a.
An amount equal to the excess, if any, of the accumulated
contributions credited to the
account of the deceased officer or
dispatcher in excess of the total
of the benefits paid and
payable to the surviving spouse
must be paid to the last
designated beneficiary of the
officer or the dispatcher or of
the former officer or former
dispatcher or, if none, as
specified under subdivision 1.
(e) An officer or former officer or a dispatcher or former
dispatcher may request in writing
that this subdivision not
apply and that payment be made only
to a designated beneficiary
as otherwise provided by this
chapter.
Subd. 2a. SURVIVING
SPOUSE COVERAGE TERM CERTAIN. (a) In
lieu of the 100 percent optional
annuity under subdivision 2, or
refund under subdivision 1, the
surviving spouse of a deceased
officer or dispatcher or former
officer or dispatcher may elect
to receive survivor coverage in a
term certain of five, ten, 15,
or 20 years, but monthly payments
must not exceed 75 percent of
the average high‑five monthly
salary of the decedent. The
monthly term certain annuity must
be actuarially equivalent to
the 100 percent optional annuity
under subdivision 2.
(b) If a survivor elects a term certain annuity and dies
before the expiration of the
specified term certain period, the
commuted value of the remaining
annuity payments must be paid in
a lump sum to the survivor's
estate.
Subd. 2b. DEPENDENT
CHILD SURVIVOR COVERAGE. If there is
no surviving spouse eligible for
benefits under subdivision 2, a
dependent child or children as
defined in section 1, subdivision
10, is eligible for monthly
payments. Payments to a dependent
child must be paid from the date of
the post‑sentencing officer
or emergency dispatcher's death to
the date on which the
dependent child attains age 20 if
the child is under age 15 on
the date of death. If the child is 15 years or older on the
date of death, payment must be made
for five years. The payment
to a dependent child is an amount
actuarially equivalent to the
value of a 100 percent optional
annuity under subdivision 2
using the age of the officer or
dispatcher and age of the
dependent child at the date of
death in lieu of the age of the
surviving spouse. If there is more than one dependent child,
each dependent child shall be
entitled to receive a
proportionate share of the
actuarial value of the account of the
officer or dispatcher.
Subd. 3. REFUND OF
$3,000 OR LESS. If a post‑sentencing
officer or emergency dispatcher or
a former officer or
dispatcher dies without having
designated a beneficiary, or if
the beneficiary dies before
applying for refund of the sum to
the credit of the deceased officer
or dispatcher or former
officer or dispatcher, and there is
no surviving spouse, and the
amount of the refund does not
exceed $3,000, exclusive of
interest, the executive director of
the Public Employees
Retirement Association may refund
the amount to the deceased
person's next of kin. The amount may be refunded 90 days after
the date of death of the person in
the absence of probate
proceedings, and upon proper
application. The next of kin must
be determined by the director with
the concurrence of the board
and is entitled to the refund
consistent with the laws of
descent. A determination and payment without notice
are
conclusive and final and are a bar
against claims of all other
persons.
Subd. 4. REFUND TO
MINOR BENEFICIARY. If a
post‑sentencing officer or
emergency dispatcher or former
officer or dispatcher dies having
named as a beneficiary a
person who is a minor at the time
of the application for refund,
and the amount of the refund does
not exceed $3,000, exclusive
of interest, the executive director
of the Public Employees
Retirement Association in the
absence of guardianship or probate
proceedings may make payment to the
natural guardian having
custody of the minor beneficiary,
for the benefit of the child.
Any annuity, retirement allowance,
or disability benefit accrued
at the time of death of a disabled
or retired person, payable to
a minor beneficiary, may similarly
be paid. Payment is a bar to
recovery by any other person or
persons.
Subd. 5. RECOVERY BAR.
A determination and a payment
under subdivision 3 or a payment
under subdivision 4 is a bar to
a recovery by any other person,
whether the person had notice or
otherwise.
Subd. 6. DEATH AFTER
SERVICE TERMINATION. Except as
provided in subdivision 1, if a
former post‑sentencing officer
or emergency dispatcher covered by
the plan dies and has not
received an annuity or a disability
benefit, a refund must be
made to the last designated
beneficiary or, if there is none, to
the surviving spouse or, if none,
to the person's surviving
children in equal shares or, if
none, to the person's surviving
parents in equal shares or, if
none, to the representative of
the estate in an amount equal to
accumulated member
contributions. The refund must include interest at the rate
of
six percent per year compounded
annually. The interest must be
computed as provided in section
352.22, subdivision 2.
Subd. 7. ABSENCE OF
OPTIONAL OR REVERSIONARY ANNUITY.
Upon the death of a retired post‑sentencing
officer or emergency
dispatcher who selected neither an
optional annuity or a
reversionary annuity, a refund must
be paid in an amount equal
to the excess, if any, of the
accumulated contributions to the
credit of the former officer or
dispatcher immediately before
retirement in excess of the sum of
(1) all annuities and
disability benefits that had been
received and had accrued in
the lifetime of the decedent, and
(2) the annuity or disability
benefit, if not negotiated, payable
to the surviving spouse
under section 6, for the calendar
month in which the retired
officer or dispatcher died. The refund must be paid to the
named beneficiary or, if there be
none, to the surviving spouse
or, if none, to the person's surviving
children in equal shares
or, if none, to the person's
surviving parents in equal shares
or, if none, to the representative
of the estate.
Subd. 8. OPTIONAL OR
REVERSIONARY ANNUITY. If the last
eligible recipient of an optional
annuity dies and the total
amounts paid under it are less than
the accumulated
contributions to the credit of the
retired post‑sentencing
officer or emergency dispatcher
immediately before retirement,
the balance of accumulated
contributions must be paid to the
person designated by the retired
officer or dispatcher in
writing to receive payment. If no designation has been made by
the retired officer or dispatcher,
the remaining balance of
accumulated contributions must be
paid to the surviving children
of the deceased recipient of the
optional annuity in equal
shares. If there are no surviving children, payment
must be
made to the deceased recipient's
parents or, if none, to the
representative of the deceased
recipient's estate.
Subd. 9. BENEFICIARY
DESIGNATION. The designation of a
beneficiary or person to receive
any accumulated contributions
remaining to the credit of a post‑sentencing
officer or
emergency dispatcher, a former
officer or dispatcher, or a
retired officer or dispatcher, at
the time of death, as provided
in this section, must be in writing
and must be filed with the
director before the death of the
officer or dispatcher, former
officer or dispatcher, or retired
officer or dispatcher.
Subd. 10. DEATH OF
BENEFICIARY BEFORE REFUND. If the
last designated beneficiary or
beneficiaries and the surviving
spouse of a deceased officer or
dispatcher, former officer or
dispatcher, or retired officer or
dispatcher dies before
receiving a refund of the sum to
the credit of the deceased
person at the time of death, the
refund must be made to the
estate of the deceased person or as
provided in subdivision 3 if
the amount of the refund does not
exceed $3,000, exclusive of
interest.
Subd. 11. DEATH OF
DISABILITY ANNUITANT. If a
post‑sentencing officer or
emergency dispatcher who has received
a disability benefit dies, a
payment must be made of an amount
equal to the excess, if any, of the
accumulated contributions to
the credit of the officer or
dispatcher at the time the
disability benefit began to accrue
over and above the aggregate
of (1) all disability benefits
received and which had accrued
during the person's life, and (2)
the benefit for the month in
which the disabled person died,
payable, if applicable, to the
surviving spouse under section
8. The payment must be paid,
upon a written application, to the
last designated beneficiary
or, if there be none, to the
surviving spouse, or if none, to
the officer or dispatcher's
surviving children in equal shares
or, if none, to the officer or
dispatcher's surviving parents in
equal shares or, if none, to the
representative of the estate.
Subd. 12. REFUND,
FAILURE TO REQUEST. If the last
designated beneficiary, surviving
spouse, legal representative,
or next of kin, as determined by
the executive director of the
Public Employees Retirement
Association, with the concurrence of
the board, fails to claim the
refund as provided in this section
(1) within five years from the date
of death of a retired
post‑sentencing officer or
emergency dispatcher or the disabled
officer or dispatcher, or (2)
within five years after the last
deduction was taken from the salary
of a deceased officer or
dispatcher or deceased former
officer or dispatcher, the
accumulated contributions of the
deceased person must be
credited to the retirement
fund. However, if the claim to
refund is made within ten years
after the transfer of
accumulated contributions to the
fund or within ten years after
the date of death, whichever is
later, and the amount
transferred to the fund is over
$25, the sum must be restored to
the account of the deceased
person. The refund must then be
paid, upon a written application,
to the surviving spouse or, if
none, to the legal representative
of the estate irrespective of
any designation of beneficiary made
by the deceased person.
Subd. 13. REFUND,
BENEFICIARY. If upon death a former
post‑sentencing officer or
emergency dispatcher has in
possession a commissioner of
finance's warrant which does not
exceed $1,000, covering a refund of
accumulated contributions in
the retirement fund, in the absence
of probate proceedings the
commissioner of finance's warrant
may be returned for
cancellation, and then, upon
application made by the last
designated beneficiary of the
deceased former officer or
dispatcher, a refund of the
accumulated contributions must be
paid, upon a written application,
to the last designated
beneficiary. Payments made under this subdivision are a
bar to
recovery by any other person or
persons.
Sec. 11. 353G.11 EXEMPTION
FROM PROCESS AND TAXATION.
Subdivision 1. EXEMPTION;
EXCEPTIONS. None of the money,
annuities, or other benefits
mentioned in this chapter is
assignable either in law or in
equity or subject to state estate
tax, or to execution, levy,
attachment, garnishment, or other
legal process, except as provided
in subdivision 1a or section
518.58, 518.581, or 518.6111.
Subd. 1a. AUTOMATIC
DEPOSITS. The executive director may
remit, through an automatic deposit
system, annuity, benefit, or
refund payments only to a financial
institution associated with
the National Automated
Clearinghouse Association or a comparable
successor organization that is
trustee for a person eligible to
receive the annuity, benefit, or
refund. Upon the request of
the retiree, disabilitant,
survivor, or former officer or
dispatcher, the executive director
may remit the annuity,
benefit, or refund check to the
applicable financial institution
for deposit in the person's account
or joint account. The board
of trustees may prescribe the
conditions under which payments
will be made.
Sec. 12. 353G.12 REFUND
OR DEFERRED ANNUITY.
Subdivision 1. REFUND.
A post‑sentencing officer or an
emergency dispatcher who terminates
that employment or who is
laid off from that employment is
entitled, upon application, to
a refund if the person is not
reemployed by the person's prior
employer, by another employer
covered by the retirement plan, or
by the state. The refund is an amount equal to the
accumulated
member contributions of the officer
or the dispatcher, plus
interest at an annual compound rate
of six percent per year.
The refund must include the
interest that was paid as part of a
previous repayment of a prior
refund, plus interest from the
date of that repayment. Interest must be computed to the first
day of the month in which the
refund is processed and must be
based on fiscal year or monthly
balances, whichever applies.
Acceptance of a refund under this
subdivision terminates all
allowable service and salary credit
of the person in the
retirement plan and terminates all
entitlement to rights or
benefits under this chapter.
Subd. 2. DEFERRED
ANNUITY. A post‑sentencing officer or
an emergency dispatcher who
terminates that employment may elect
to have the accumulated member
contributions in the retirement
fund and to remain entitled to a
deferred retirement annuity.
The deferred retirement annuity
must be computed under the law
in effect when the employment of
the officer or dispatcher
terminated on the basis of the
allowable service credited before
the termination of employment. No application for a deferred
retirement annuity may be made more
than 60 days before the date
when the former officer or the
former dispatcher reaches the
required age for annuity
entitlement. The deferred annuity
begins to accrue no earlier than 60
days before the date when
the retirement annuity application
is filed with the executive
director of the Public Employees
Retirement Association, but not
before the date on which the
officer or dispatcher reaches the
annuity entitlement required age or
before the termination of
employment.
Sec. 13. 353G.13 SERVICE
IN MORE THAN ONE RETIREMENT
PLAN.
(a) A post‑sentencing officer or emergency dispatcher who
also has been a member of one
retirement plan or a combination
of retirement plans listed in
paragraph (b) is entitled, when
qualified, to an annuity from each
plan if the total allowable
service credit in all retirement
plans totals at least three
years.
(b) Applicable retirement plans are any retirement plan
administered by the Minnesota State
Retirement System, any
retirement plan administered by the
Public Employees Retirement
Association, the teachers
retirement association, the
Minneapolis employees retirement
fund, the Duluth teachers
retirement fund association, the
Minneapolis teachers retirement
fund association, or the St. Paul
teachers retirement fund
association.
(c) No portion of the allowable service upon which the
retirement annuity from one
retirement plan is based may be
again used in the computation for
benefits from another
retirement plan. No refund may have been taken from any one of
these retirement plans since
service entitling the person to
coverage under the plan or the
person's membership in any of the
plans last terminated. The annuity from each retirement plan
must be determined by the
appropriate provisions of the law
except that the requirement that a
person must have at least
three years allowable service in
the respective retirement plan
does not apply for the purposes of
this section if the combined
service in two or more of these
retirement plans equals three or
more years.
Sec. 14. 353G.14 DEFERRED
ANNUITY AUGMENTATION.
(a) The deferred annuity must be computed as provided in
section 7 on the basis of allowable
service rendered before the
termination of covered service and
augmented as provided in
paragraph (b).
(b) The required reserves applicable to a deferred annuity,
to an annuity for which a former
post‑sentencing officer or
emergency dispatcher was eligible
but had not applied, or to any
deferred segment of an annuity must
be determined as of the date
the benefit begins to accrue and
augmented by interest
compounded annually from the first
day of the month following
the month in which the officer or
dispatcher ceased to be an
officer or dispatcher to the first
day of the month in which the
annuity begins to accrue. The rates of interest used for this
purpose must be three percent
compounded annually until January
1 of the year following the year in
which the former officer or
dispatcher attains age 55. From that date to the effective date
of retirement, the rate is five
percent compounded annually. If
a person has more than one period
of uninterrupted service, the
required reserves related to each
period must be augmented by
interest under this
subdivision. The sum of the augmented
required reserves so determined is
the present value of the
annuity. "Uninterrupted service" for the
purpose of this
subdivision means periods of
covered employment during which the
officer or dispatcher has not been
separated from covered
employment for more than two
years. If a person repays a
refund, the service restored by the
repayment must be considered
continuous with the next period of
service for which the officer
or dispatcher has credit with this
system. The formula
percentages used for each period of
uninterrupted service must
be those applicable to a new
officer or dispatcher. The
mortality table and interest
assumption used to compute the
annuity must be those in effect
when the officer or dispatcher
files application for annuity. This section may not cause a
reduction in the annuity otherwise
payable under this chapter.
Sec. 15. EFFECTIVE DATE.
Sections 1 to 14 are effective on July 1, 2005.
ARTICLE 2
CONFORMING CHANGES
Section 1. Minnesota Statutes
2002, section 3.85,
subdivision 11, is amended to read:
Subd. 11. VALUATIONS AND
REPORTS TO LEGISLATURE. (a) The
commission shall contract with an
established actuarial
consulting firm to conduct annual
actuarial valuations for the
retirement plans named in paragraph
(b). The contract must
include provisions for performing cost
analyses of proposals for
changes in benefit and funding
policies.
(b) The contract for actuarial valuation must include the
following retirement plans:
(1) the teachers retirement plan, teachers retirement
association;
(2) the general state employees retirement plan, Minnesota
state retirement system;
(3) the correctional employees retirement plan, Minnesota
state retirement system;
(4)
the state patrol retirement plan, Minnesota state
retirement system;
(5) the judges retirement plan, Minnesota state retirement
system;
(6) the Minneapolis employees retirement plan, Minneapolis
employees retirement fund;
(7) the public employees retirement plan, public employees
retirement association;
(8) the public employees police and fire plan, public
employees retirement association;
(9) the Duluth teachers retirement plan, Duluth teachers
retirement fund association;
(10) the Minneapolis teachers retirement plan, Minneapolis
teachers retirement fund association;
(11) the St. Paul teachers retirement plan, St. Paul
teachers retirement fund association;
(12) the legislators retirement plan, Minnesota state
retirement system;
(13) the elective state officers retirement plan, Minnesota
state retirement system; and
(14) the local government correctional service retirement
plan, public employees retirement
association; and
(15) the post‑sentencing officers and emergency dispatchers
retirement plan, Public Employees
Retirement Association.
(c) The contract must specify completion of annual
actuarial valuation calculations on a
fiscal year basis with
their contents as specified in section
356.215, and the
standards for actuarial work adopted
by the commission.
The contract must specify completion of annual experience
data collection and processing and a
quadrennial published
experience study for the plans listed
in paragraph (b), clauses
(1), (2), and (7), as provided for in
the standards for
actuarial work adopted by the
commission. The experience data
collection, processing, and analysis
must evaluate the following:
(1) individual salary progression;
(2) rate of return on investments based on current asset
value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
(d) The actuary retained by the commission shall annually
prepare a report to the legislature,
including the commentary on
the actuarial valuation calculations
for the plans named in
paragraph (b) and summarizing the
results of the actuarial
valuation calculations. The commission‑retained actuary shall
include with the report the actuary's
recommendations concerning
the appropriateness of the support
rates to achieve proper
funding of the retirement funds by the
required funding dates.
The commission‑retained actuary
shall, as part of the
quadrennial published experience
study, include recommendations
to the legislature on the
appropriateness of the actuarial
valuation assumptions required for
evaluation in the study.
(e) If the actuarial gain and loss analysis in the
actuarial valuation calculations
indicates a persistent pattern
of sizable gains or losses, as
directed by the commission, the
actuary retained by the commission
shall prepare a special
experience study for a plan listed in
paragraph (b), clause (3),
(4), (5), (6), (8), (9), (10), (11),
(12), (13), (14), or
(14) (15), in the manner provided for in the
standards for
actuarial work adopted by the
commission.
(f) The term of the contract between the commission and the
actuary retained by the commission is
four years. The contract
is subject to competitive bidding
procedures as specified by the
commission.
Sec. 2. Minnesota Statutes 2002,
section 3.85, subdivision
12, is amended to read:
Subd. 12. ALLOCATION OF
ACTUARIAL COST. (a) The
commission shall assess each retirement
plan specified in
subdivision 11, paragraph (b), its
appropriate portion of the
compensation paid to the actuary
retained by the commission for
the actuarial valuation calculations,
quadrennial projection
valuations, and quadrennial experience
studies. The total
assessment is 100 percent of the
amount of contract compensation
for the actuarial consulting firm
retained by the commission for
actuarial valuation calculations,
including any public employees
police and fire plan consolidation
accounts of the public
employees retirement association
established before March 2,
1999, for which the municipality
declined merger under section
353.665, subdivision 1, or
established after March 1, 1999,
annual experience data collection and
processing, and
quadrennial experience studies and
quadrennial projection
valuations.
The portion of the total assessment payable by each
retirement system or pension plan must
be determined based on
each plan's proportion of the
actuarial services required, as
determined by the commission's
retained actuary, to complete the
actuarial valuation calculations,
annual experience data
collection and processing, and
quadrennial experience studies
for all plans.
(b) The assessment must be made within 30 days following
the end of the fiscal year and must be
reported to the executive
director of the legislative commission
on pensions and
retirement and to the chief
administrative officers of the
applicable retirement plans. The amount of the assessment is
appropriated from the retirement fund
applicable to the
retirement plan. Receipts from assessments must be transmitted
to the executive director of the
legislative commission on
pensions and retirement and must be
deposited in the state
treasury and credited to the general
fund.
Sec. 3. Minnesota Statutes 2002,
section 352.01,
subdivision 2b, is amended to read:
Subd. 2b. EXCLUDED EMPLOYEES.
"State employee" does not
include:
(1) students employed by the University of Minnesota, or
the state colleges and universities,
unless approved for
coverage by the Board of Regents or
the Board of Trustees of the
Minnesota State Colleges and
Universities, as the case may be;
(2) employees who are eligible for membership in the state
Teachers Retirement Association,
except employees of the
Department of Children, Families,
and Learning Education who
have chosen or may choose to be
covered by the general state
employees retirement plan of the
Minnesota State Retirement
System instead of the Teachers
Retirement Association;
(3) employees of the University of Minnesota who are
excluded from coverage by action of
the Board of Regents;
(4) 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;
(5) election officers;
(6) persons who are engaged in public work for the state
but who are employed by contractors
when the performance of the
contract is authorized by the
legislature or other competent
authority;
(7) officers and employees of the senate, or of the house
of representatives, or of a
legislative committee or commission
who are temporarily employed;
(8) 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;
(9) patient and inmate help in state charitable, penal, and
correctional institutions including
the Minnesota Veterans Home;
(10) persons who are employed for professional services
where the service is incidental to
their regular professional
duties and whose compensation is paid
on a per diem basis;
(11) employees of the Sibley House Association;
(12) 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 $5,000 or less
per year, or, if they are
legally prohibited from serving more
than three years; and the
board of managers of the State
Agricultural Society and its
treasurer unless the treasurer is also
its full‑time secretary;
(13) state troopers;
(14) temporary employees of the Minnesota state fair who
are employed on or after July 1 for a
period not to extend
beyond October 15 of that year; and
persons who are employed at
any time by the state fair
administration for special events
held on the fairgrounds;
(15) emergency employees who are 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;
(16) persons who are described in section 352B.01,
subdivision 2, clauses (2) to (6);
(17) temporary employees in the classified service, and
temporary employees in the
unclassified service who are
appointed for a definite period of not
more than six months and
who are employed less than six months
in any one‑year period;
(18) trainee employees, except those listed in subdivision
2a, clause (10);
(19) persons whose compensation is paid on a fee basis;
(20) state employees who are employed by the Board of
Trustees of the Minnesota State
Colleges and Universities in
unclassified positions enumerated in
section 43A.08, subdivision
1, clause (9);
(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;
(22) employees of the adjutant general who are employed on
an unlimited intermittent or temporary
basis in the classified
or unclassified service for the
support of army and air national
guard training facilities;
(23) chaplains and nuns 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,
if no irrevocable election of coverage
has been made under
section 3121(r) of the Internal
Revenue Code of 1986, as amended
through December 31, 1992;
(24) examination monitors who are employed by departments,
agencies, commissions, and boards to
conduct examinations
required by law;
(25) persons who are appointed to serve as members of
fact‑finding commissions or adjustment
panels, arbitrators, or
labor referees under chapter 179;
(26) temporary employees who are employed for limited
periods under any state or federal
program for training or
rehabilitation, including persons who
are employed for limited
periods from areas of economic
distress, but not including
skilled and supervisory personnel and
persons having civil
service status covered by the system;
(27) full‑time students who are employed by the Minnesota
Historical Society intermittently
during part of the year and
full‑time during the summer
months;
(28) temporary employees who are 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;
(29) persons who are employed in positions designated by
the Department of Employee Relations
as student workers;
(30) members of trades who are employed by the successor to
the Metropolitan Waste Control
Commission, who have trade union
pension plan coverage under a
collective bargaining agreement,
and who are first employed after June
1, 1977;
(31) persons who are 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 state employees who, in the capacity of
post‑sentencing officers or
emergency dispatchers, are members
of the post‑sentencing
officers and emergency dispatchers
retirement plan;
(32) off‑duty peace officers while employed by the
Metropolitan Council;
(33) persons who are employed as full‑time police officers
by the Metropolitan Council and,
as police officers, are members
of the public employees police and
fire fund;
(34) 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;
(35) foreign citizens with a work permit of less than three
years, or an H‑1b/JV visa valid
for less than three years of
employment, unless notice of extension
is supplied which allows
them to work for three or more years
as of the date the
extension is granted, in which case
they are eligible for
coverage from the date extended; and
(36) persons who are employed by the Board of Trustees of
the Minnesota State Colleges and
Universities and who elect to
remain members of the Public Employees
Retirement Association or
the Minneapolis employees retirement
fund, whichever applies,
under section 136C.75.
Sec. 4. Minnesota Statutes 2002,
section 353.01,
subdivision 2b, is amended to read:
Subd. 2b. EXCLUDED EMPLOYEES.
The following public
employees are not eligible to
participate as members of the
association with retirement coverage
by the public employees
retirement plan, the local government
correctional employees
retirement plan under chapter 353E, or
the public employees
police and fire retirement plan:
(1) public officers, other than county sheriffs, who are
elected to a governing body, or
persons who are appointed to
fill a vacancy in an elective office
of a governing body, whose
term of office first commences on or
after July 1, 2002, for the
service to be rendered in that
elective position. Elected
governing body officials who were
active members of the
association's coordinated or basic
retirement plans as of June
30, 2002, continue participation
throughout incumbency in office
until termination of public service
occurs as defined in
subdivision 11a;
(2) election officers or election judges;
(3) patient and inmate personnel who perform services for a
governmental subdivision;
(4) employees who are hired for a temporary position under
subdivision 12a, and employees who
resign from a nontemporary
position and accept a temporary
position within 30 days in the
same governmental subdivision. An employer must not apply the
definition of temporary position so as
to exclude employees who
are hired to fill positions that are
permanent or that are for
an unspecified period but who are
serving a probationary period
at the start of the employment. If the period of employment
extends beyond six consecutive months
and the employee earns
more than $425 from one governmental
subdivision in any 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.
The membership eligibility of an employee who resigns or is
dismissed from a temporary position
and within 30 days accepts
another temporary position in the same
governmental subdivision
is determined on the total length of
employment rather than on
each separate position. Membership eligibility of an employee
who holds concurrent temporary and
nontemporary positions in one
governmental subdivision is determined
by the length of
employment and salary of each separate
position;
(5) employees who are employed by reason of work emergency
caused by fire, flood, storm, or
similar disaster;
(6) 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 Retirement
Association, or any local
police or firefighters consolidation
account but who have not
elected the type of benefit coverage
provided by the public
employees police and fire fund under
sections 353A.01 to
353A.10, or any persons covered by
section 353.665, subdivision
4, 5, or 6, who have not elected
public employees police and
fire plan benefit coverage. 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
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;
(7) persons who are members of a religious order and 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;
(8) employees of a governmental subdivision who have not
reached the age of 23 and are enrolled
on a full‑time basis to
attend or are attending classes on a
full‑time basis at an
accredited school, college, or
university in an undergraduate,
graduate, or professional‑technical
program, or a public or
charter high school;
(9) resident physicians, medical interns, and pharmacist
residents and pharmacist interns who
are serving in a degree or
residency program in public hospitals;
(10) students who are serving in an internship or residency
program sponsored by an accredited
educational institution;
(11) persons who hold a part‑time adult supplementary
technical college license who render
part‑time teaching service
in a technical college;
(12) except for employees of Hennepin County, foreign
citizens working for a governmental
subdivision with a work
permit of less than three years, or an
H‑1b visa valid for less
than three years of employment. Upon notice to the association
that the work permit or visa extends
beyond the three‑year
period, the foreign citizens are to be
reported for membership
from the date of the extension;
(13) public hospital employees who elected not to
participate as members of the
association before 1972 and who
did not elect to participate from July
1, 1988, to October 1,
1988;
(14) 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,
whichever applies, on the
basis of compensation received from
public employment service
other than service as volunteer
ambulance service personnel;
(15) 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,
whichever applies, on the
basis of compensation received from
public employment activities
other than those as a volunteer
firefighter;
(16) pipefitters and associated trades personnel employed
by Independent School District No.
625, St. Paul, with coverage
under a collective bargaining
agreement by the pipefitters local
455 pension plan who were either first
employed after May 1,
1997, or, if first employed before May
2, 1997, elected to be
excluded under Laws 1997, chapter 241,
article 2, section 12;
(17) electrical workers, plumbers, carpenters, and
associated trades personnel employed
by Independent School
District No. 625, St. Paul, or the
city of St. Paul, who have
retirement coverage under a collective
bargaining agreement by
the electrical workers local 110
pension plan, the United
Association Plumbers Local 34 pension
plan, or the Carpenters
Local 87 pension plan who were either
first employed after May
1, 2000, or, if first employed before
May 2, 2000, elected to be
excluded under Laws 2000, chapter 461,
article 7, section 5;
(18) bricklayers, allied craftworkers, cement masons,
glaziers, glassworkers, painters,
allied tradesworkers, and
plasterers employed by the city of St.
Paul or Independent
School District No. 625, St. Paul,
with coverage under a
collective bargaining agreement by the
bricklayers and allied
craftworkers local 1 pension plan, the
cement masons local 633
pension plan, the glaziers and
glassworkers local L‑1324 pension
plan, the painters and allied trades
local 61 pension plan, or
the Twin Cities plasterers local 265
pension plan who were
either first employed after May 1,
2001, or if first employed
before May 2, 2001, elected to be
excluded under Laws 2001,
First Special Session chapter 10,
article 10, section 6;
(19) plumbers employed by the metropolitan airports
commission, with coverage under a
collective bargaining
agreement by the plumbers local 34
pension plan, who either were
first employed after May 1, 2001, or
if first employed before
May 2, 2001, elected to be excluded
under Laws 2001, First
Special Session chapter 10, article
10, section 6;
(20) employees who are hired after June 30, 2002, to fill
seasonal positions under subdivision
12b which are limited in
duration by the employer to 185
consecutive calendar days or
less in each year of employment with
the governmental
subdivision;
(21) persons who are provided supported employment or
work‑study positions by a
governmental subdivision and who
participate in an employment or
industries program maintained
for the benefit of these persons where
the governmental
subdivision limits the position's
duration to three years or
less, including persons participating
in a federal or state
subsidized on‑the‑job
training, work experience, senior citizen,
youth, or unemployment relief program
where the training or work
experience is not provided as a part
of, or for, future
permanent public employment;
(22) independent contractors and the employees of
independent contractors; and
(23) local governmental employees who, in the capacity of
post‑sentencing officers or
emergency dispatchers, are members
of the post‑sentencing
officers and emergency dispatchers
retirement plan; and
(24) reemployed annuitants of the association during the
course of that reemployment.
Sec. 5. Minnesota Statutes 2002,
section 355.01,
subdivision 2e, is amended to read:
Subd. 2e. EMERGENCY
DISPATCHER. "Emergency dispatcher"
means a full‑time employee of
the state or of a local
governmental unit who is employed
at a primary public safety
answering point, whose primary
employment responsibility is
receiving emergency "911"
telephone communications from the
public which requires the
subsequent contact with and the
response by police, fire, or
medical resources, who is certified
by the governmental employer as
regularly and consistently
spending at least 75 percent of the
person's employment time in
these duties, and who, in that
capacity, is a member of the
post‑sentencing officers and
emergency dispatchers retirement
plan under chapter 353G.
Subd. 2f. EMPLOYEE. "Employee" means a person
employed by
the state of Minnesota or by a
political subdivision of the
state and includes an officer of the
state of Minnesota or of a
political subdivision of the state.
Sec. 6. Minnesota Statutes 2002,
section 355.01,
subdivision 2f, is amended to read:
Subd. 2f 2g. EMPLOYEE
TAX. "Employee tax" means the tax
imposed by section 3101 of the
Internal Revenue Code of 1986.
Sec. 7. Minnesota Statutes 2002,
section 355.01,
subdivision 3j, is amended to read:
Subd. 3j. POST‑SENTENCING
OFFICER. "Post‑sentencing
officer" means a full‑time
employee of the state or of a local
governmental unit who is
responsible for the control,
supervision, and care of convicted
offenders on probation in
lieu of imprisonment or of
offenders conditionally released on
parole after imprisonment where the
employee is certified by the
governmental employer as regularly
and consistently spending at
least 75 percent of the person's
employment time in the direct
control, supervision, and care of
convicted offenders who
represent a risk of violence or
physical harm to the employee
and who, in that capacity, is a
member of the post‑sentencing
officers and emergency dispatchers
retirement plan under chapter
353G.
Subd. 3k. PUBLIC
EMPLOYEE. "Public employee" means an
officer or an employee of a local
governmental subdivision of
the state who performs services in a
position covered by the
Public Employees Retirement
Association established under
chapter 353.
Sec. 8. Minnesota Statutes 2002,
section 355.01,
subdivision 3k, is amended to read:
Subd. 3k 3l. PUBLIC
HOSPITAL. "Public hospital" means a
hospital that is owned or operated by
a governmental employer or
a combination of governmental
employers, or a hospital that is
an integral part of a governmental
employer or of a combination
of governmental employers.
Sec. 9. Minnesota Statutes 2002,
section 355.01,
subdivision 3l, is amended to read:
Subd. 3l 3m. ST.
PAUL TEACHER. "St. Paul teacher" means
a person employed by Independent
School District No. 625, St.
Paul, who holds a position covered by
the St. Paul teachers
retirement fund association
established under chapter 354A.
Sec. 10. Minnesota Statutes 2002,
section 355.02,
subdivision 3, is amended to read:
Subd. 3. GROUPS COVERED BY
SOCIAL SECURITY. The
following groups must be covered by an
agreement or a
modification to an agreement between
the director and the
federal Secretary of Health and Human
Services:
(1) constitutional officers;
(2)
Duluth teachers;
(3) educational employees;
(4) higher education employees;
(5) hospital employees;
(6) judges;
(7) legislators;
(8) Minneapolis teachers;
(9) public employees, including members of the local
government correctional service
retirement plan;
(10) St. Paul teachers;
(11) special authority or district employees; and
(12) state employees;
(13) emergency dispatchers; and
(14) post‑sentencing officers.
Sec. 11. Minnesota Statutes 2002,
section 356.20,
subdivision 2, is amended to read:
Subd. 2. COVERED PUBLIC
PENSION PLANS AND FUNDS. This
section applies to the following
public pension plans:
(1) the general state employees retirement plan of the
Minnesota State Retirement System;
(2) the general employees retirement plan of the Public
Employees Retirement Association;
(3) the Teachers Retirement Association;
(4) the state patrol retirement plan;
(5) the Minneapolis Teachers Retirement Fund Association;
(6) the St. Paul Teachers Retirement Fund Association;
(7) the Duluth Teachers Retirement Fund Association;
(8) the Minneapolis employees retirement fund;
(9) the University of Minnesota faculty retirement plan;
(10) the University of Minnesota faculty supplemental
retirement plan;
(11) the judges retirement fund;
(12) a police or firefighter's relief association specified
or described in section 69.77,
subdivision 1a, or 69.771,
subdivision 1;
(13) the public employees police and fire plan of the
Public Employees Retirement
Association;
(14) the correctional state employees retirement plan of
the Minnesota State Retirement System;
and
(15) the local government correctional service retirement
plan of the Public Employees
Retirement Association; and
(16) the post‑sentencing officers and emergency dispatchers
retirement plan of the Public
Employees Retirement Association.
Sec. 12. Minnesota Statutes 2002,
section 356.215,
subdivision 8, is amended to read:
Subd. 8. INTEREST AND SALARY
ASSUMPTIONS. (a) The
actuarial valuation must use the
applicable following
preretirement interest assumption and
the applicable following
postretirement interest assumption:
preretirement postretirement
interest
rate interest rate
plan assumption assumption
general state employees
retirement plan 8.5%
6.0%
correctional state employees
retirement plan 8.5 6.0
state patrol retirement plan
8.5 6.0
legislators retirement plan
8.5 6.0
elective state officers
retirement plan 8.5 6.0
judges retirement plan
8.5 6.0
general public employees
retirement plan 8.5 6.0
public employees police and fire
retirement plan 8.5 6.0
local government correctional
service retirement plan 8.5 6.0
post‑sentencing officers and
emergency dispatchers
retirement plan 8.5 6.0
teachers retirement plan
8.5 6.0
Minneapolis employees
retirement plan 6.0 5.0
Duluth teachers retirement plan
8.5 8.5
Minneapolis teachers retirement
plan 8.5 8.5
St. Paul teachers retirement
plan 8.5 8.5
Minneapolis Police Relief
Association 6.0 6.0
Fairmont Police Relief
Association 5.0 5.0
Minneapolis Fire Department
Relief Association 6.0 6.0
Virginia Fire Department
Relief Association 5.0 5.0
local monthly benefit volunteer
firefighters relief associations
5.0 5.0
(b) The actuarial valuation must use the applicable
following single rate future salary
increase assumption, the
applicable following modified single
rate future salary increase
assumption, or the applicable
following graded rate future
salary increase assumption:
(1) single rate future salary increase assumption
future salary
plan increase assumption
legislators retirement plan 5.0%
elective state officers retirement
plan 5.0
judges retirement plan 5.0
Minneapolis Police Relief Association 4.0
Fairmont Police Relief
Association 3.5
Minneapolis Fire Department Relief
Association 4.0
Virginia Fire Department
Relief Association 3.5
(2) modified single rate future salary increase assumption
future salary
plan increase assumption
Minneapolis employees the prior calendar year
retirement plan amount increased first by
1.0198
percent to prior
fiscal
year date and
then
increased by 4.0
percent
annually for
each
future year
(3) select and ultimate future salary increase assumption
or graded rate future salary increase
assumption
future salary
plan increase assumption
general state employees
select calculation and
retirement plan assumption A
correctional state employees
retirement plan assumption H
state patrol retirement plan
assumption H
general public employees
select calculation and
retirement plan assumption B
public employees police and fire
fund retirement plan assumption C
local government correctional service
retirement plan assumption H
post‑sentencing officers and
emergency dispatchers
retirement plan assumption H
teachers retirement plan
assumption D
Duluth teachers retirement plan
assumption E
Minneapolis teachers retirement plan
assumption F
St. Paul teachers retirement plan
assumption G
The select calculation is:
during the ten‑year select period, a designated percent
is multiplied by the result of ten minus T, where T is
the number of completed years of service, and is added
to the applicable future salary increase assumption. The
designated percent is 0.2 percent for the correctional state
employees retirement plan, the state patrol retirement
plan, the public employees police and fire plan, and the
local government correctional service plan, and the post‑
sentencing officers and emergency dispatchers retirement
plan; 0.3 percent for the general state employees
retirement plan, the general public employees retirement
plan, the teachers retirement plan, the Duluth Teachers
Retirement Fund Association, and the St. Paul Teachers
Retirement Fund Association; and 0.4 percent for the
Minneapolis Teachers Retirement Fund Association.
The ultimate future salary increase
assumption is:
age A B
C D E
F G H
16 6.95% 6.95% 11.50% 8.20% 8.00%
6.50% 6.90% 7.7500
17 6.90 6.90
11.50 8.15 8.00
6.50 6.90 7.7500
18 6.85 6.85
11.50 8.10 8.00
6.50 6.90 7.7500
19 6.80 6.80
11.50 8.05 8.00
6.50 6.90 7.7500
20 6.75 6.40
11.50 6.00 6.90
6.50 6.90 7.7500
21 6.75 6.40
11.50 6.00 6.90
6.50 6.90 7.1454
22 6.75 6.40
11.00 6.00 6.90
6.50 6.90 7.0725
23 6.75 6.40
10.50 6.00 6.85
6.50 6.85 7.0544
24 6.75 6.40
10.00 6.00 6.80
6.50 6.80 7.0363
25 6.75 6.40
9.50 6.00 6.75
6.50 6.75 7.0000
26 6.75 6.36
9.20 6.00 6.70
6.50 6.70 7.0000
27 6.75 6.32
8.90 6.00 6.65
6.50 6.65 7.0000
28 6.75 6.28
8.60 6.00 6.60
6.50 6.60 7.0000
29 6.75 6.24
8.30 6.00 6.55
6.50 6.55 7.0000
30 6.75 6.20
8.00 6.00 6.50
6.50 6.50 7.0000
31 6.75 6.16
7.80 6.00 6.45
6.50 6.45 7.0000
32 6.75 6.12 7.60
6.00 6.40 6.50
6.40 7.0000
33 6.75 6.08
7.40 6.00 6.35
6.50 6.35 7.0000
34 6.75 6.04
7.20 6.00 6.30
6.50 6.30 7.0000
35 6.75 6.00
7.00 6.00 6.25
6.50 6.25 7.0000
36 6.75 5.96
6.80 6.00 6.20 6.50 6.20
6.9019
37 6.75 5.92
6.60 6.00 6.15
6.50 6.15 6.8074
38 6.75 5.88
6.40 5.90 6.10
6.50 6.10 6.7125
39 6.75 5.84
6.20 5.80 6.05
6.50 6.05 6.6054
40 6.75 5.80
6.00 5.70 6.00
6.50 6.00 6.5000
41 6.75 5.76
5.90 5.60 5.90
6.50 5.95 6.3540
42 6.75 5.72
5.80 5.50 5.80
6.50 5.90 6.2087
43 6.65 5.68
5.70 5.40 5.70
6.50 5.85 6.0622
44 6.55 5.64
5.60 5.30 5.60
6.50 5.80 5.9048
45 6.45 5.60 5.50
5.20 5.50 6.50
5.75 5.7500
46 6.35 5.56
5.45 5.10 5.40
6.40 5.70 5.6940
47 6.25 5.52
5.40 5.00 5.30
6.30 5.65 5.6375
48 6.15 5.48
5.35 5.00 5.20
6.20 5.60 5.5822
49 6.05 5.44
5.30 5.00 5.10 6.10 5.55
5.5404
50 5.95 5.40
5.25 5.00 5.00
6.00 5.50 5.5000
51 5.85 5.36
5.25 5.00 5.00
5.90 5.45 5.4384
52 5.75 5.32
5.25 5.00 5.00
5.80 5.40 5.3776
53 5.65 5.28
5.25 5.00 5.00
5.70 5.35 5.3167
54 5.55 5.24
5.25 5.00 5.00
5.60 5.30 5.2826
55 5.45 5.20
5.25 5.00 5.00
5.50 5.25 5.2500
56 5.35 5.16
5.25 5.00 5.00
5.40 5.20 5.2500
57 5.25 5.12
5.25 5.00 5.00
5.30 5.15 5.2500
58 5.25 5.08
5.25 5.10 5.00
5.20 5.10 5.2500
59 5.25 5.04
5.25 5.20 5.00
5.10 5.05 5.2500
60 5.25 5.00
5.25 5.30 5.00
5.00 5.00 5.2500
61 5.25 5.00
5.25 5.40 5.00
5.00 5.00 5.2500
62 5.25 5.00
5.25 5.50 5.00 5.00
5.00 5.2500
63 5.25 5.00
5.25 5.60 5.00
5.00 5.00 5.2500
64 5.25 5.00
5.25 5.70 5.00
5.00 5.00 5.2500
65 5.25 5.00
5.25 5.70 5.00
5.00 5.00 5.2500
66 5.25 5.00
5.25 5.70 5.00
5.00 5.00 5.2500
67 5.25 5.00
5.25 5.70 5.00
5.00 5.00 5.2500
68 5.25 5.00
5.25 5.70 5.00
5.00 5.00 5.2500
69 5.25 5.00
5.25 5.70 5.00
5.00 5.00 5.2500
70 5.25 5.00
5.25 5.70 5.00
5.00 5.00 5.2500
71 5.25 5.00 5.70
(c) The actuarial valuation must use the applicable
following payroll growth assumption
for calculating the
amortization requirement for the
unfunded actuarial accrued
liability where the amortization
retirement is calculated as a
level percentage of an increasing
payroll:
payroll growth
plan assumption
general state employees retirement plan 5.00%
correctional state employees retirement plan 5.00
state patrol retirement plan 5.00
legislators retirement plan 5.00
elective state officers retirement plan 5.00
judges retirement plan 5.00
general public employees retirement plan 6.00
public employees police and fire
retirement plan 6.00
local government correctional service
retirement plan 6.00
post‑sentencing officers and emergency
dispatchers retirement plan 5.00
teachers retirement plan 5.00
Duluth teachers retirement plan
5.00
Minneapolis teachers retirement plan 5.00
St. Paul teachers retirement plan 5.00
Sec. 13. Minnesota Statutes 2002,
section 356.215,
subdivision 11, is amended to read:
Subd. 11. AMORTIZATION CONTRIBUTIONS.
(a) In addition to
the exhibit indicating the level
normal cost, the actuarial
valuation must contain an exhibit
indicating the additional
annual contribution sufficient to
amortize the unfunded
actuarial accrued liability. For funds governed by chapters 3A,
352, 352B, 352C, 353, 353G,
354, 354A, and 490, the additional
contribution must be calculated on a
level percentage of covered
payroll basis by the established date
for full funding in effect
when the valuation is prepared. For funds governed by chapter
3A, sections 352.90 through 352.951,
chapters 352B, 352C,
sections 353.63 through 353.68, and
chapters 353C, 353G, 354A,
and 490, the level percent additional
contribution must be
calculated assuming annual payroll
growth of 6.5 percent. For
funds governed by sections 352.01
through 352.86 and chapter
354, the level percent additional
contribution must be
calculated assuming an annual payroll
growth of five percent.
For the fund governed by sections
353.01 through 353.46, the
level percent additional contribution
must be calculated
assuming an annual payroll growth of
six percent. For all other
funds, the additional annual
contribution must be calculated on
a level annual dollar amount basis.
(b) For any fund other than the Minneapolis employees
retirement fund and the Public
Employees Retirement Association
general plan, if there has not been a
change in the actuarial
assumptions used for calculating the
actuarial accrued liability
of the fund, a change in the benefit
plan governing annuities
and benefits payable from the fund, a
change in the actuarial
cost method used in calculating the
actuarial accrued liability
of all or a portion of the fund, or a
combination of the three,
which change or changes by itself or
by themselves without
inclusion of any other items of
increase or decrease produce a
net increase in the unfunded actuarial
accrued liability of the
fund, the established date for full
funding is the first
actuarial valuation date occurring
after June 1, 2020.
(c) For any fund or plan other than the Minneapolis
employees retirement fund and the
Public Employees Retirement
Association general plan, if there has
been a change in any or
all of the actuarial assumptions used
for calculating the
actuarial accrued liability of the
fund, a change in the benefit
plan governing annuities and benefits
payable from the fund, a
change in the actuarial cost method
used in calculating the
actuarial accrued liability of all or
a portion of the fund, or
a combination of the three, and the
change or changes, by itself
or by themselves and without inclusion
of any other items of
increase or decrease, produce a net
increase in the unfunded
actuarial accrued liability in the
fund, the established date
for full funding must be determined
using the following
procedure:
(i) the unfunded actuarial accrued liability of the fund
must be determined in accordance with
the plan provisions
governing annuities and retirement
benefits and the actuarial
assumptions in effect before an
applicable change;
(ii) the level annual dollar contribution or level
percentage, whichever is applicable,
needed to amortize the
unfunded actuarial accrued liability
amount determined under
item (i) by the established date for
full funding in effect
before the change must be calculated
using the interest
assumption specified in subdivision 8
in effect before the
change;
(iii) the unfunded actuarial accrued liability of the fund
must be determined in accordance with
any new plan provisions
governing annuities and benefits
payable from the fund and any
new actuarial assumptions and the
remaining plan provisions
governing annuities and benefits
payable from the fund and
actuarial assumptions in effect before
the change;
(iv) the level annual dollar contribution or level
percentage, whichever is applicable,
needed to amortize the
difference between the unfunded
actuarial accrued liability
amount calculated under item (i) and
the unfunded actuarial
accrued liability amount calculated
under item (iii) over a
period of 30 years from the end of the
plan year in which the
applicable change is effective must be
calculated using the
applicable interest assumption
specified in subdivision 8 in
effect after any applicable change;
(v) the level annual dollar or level percentage
amortization contribution under item
(iv) must be added to the
level annual dollar amortization
contribution or level
percentage calculated under item (ii);
(vi) the period in which the unfunded actuarial accrued
liability amount determined in item
(iii) is amortized by the
total level annual dollar or level
percentage amortization
contribution computed under item (v)
must be calculated using
the interest assumption specified in
subdivision 8 in effect
after any applicable change, rounded
to the nearest integral
number of years, but not to exceed 30
years from the end of the
plan year in which the determination
of the established date for
full funding using the procedure set
forth in this clause is
made and not to be less than the
period of years beginning in
the plan year in which the
determination of the established date
for full funding using the procedure
set forth in this clause is
made and ending by the date for full
funding in effect before
the change; and
(vii) the period determined under item (vi) must be added
to the date as of which the actuarial
valuation was prepared and
the date obtained is the new
established date for full funding.
(d) For the Minneapolis employees retirement fund, the
established date for full funding is
June 30, 2020.
(e) For the general employees retirement plan of the Public
Employees Retirement Association, the
established date for full
funding is June 30, 2031.
(f) For the retirement plans for which the annual actuarial
valuation indicates an excess of
valuation assets over the
actuarial accrued liability, the
valuation assets in excess of
the actuarial accrued liability must
be recognized as a
reduction in the current contribution
requirements by an amount
equal to the amortization of the
excess expressed as a level
percentage of pay over a 30‑year
period beginning anew with each
annual actuarial valuation of the
plan.
Sec. 14. Minnesota Statutes 2002,
section 356.30,
subdivision 3, is amended to read:
Subd. 3. COVERED PLANS.
This section applies to the
following retirement plans:
(1) the general state employees retirement plan of the
Minnesota State Retirement System,
established under chapter
352;
(2) the correctional state employees retirement plan of the
Minnesota State Retirement System,
established under chapter
352;
(3) the unclassified employees retirement program,
established under chapter 352D;
(4) the state patrol retirement plan, established under
chapter 352B;
(5) the legislators retirement plan, established under
chapter 3A;
(6) the elective state officers' retirement plan,
established under chapter 352C;
(7) the general employees retirement plan of the Public
Employees Retirement Association,
established under chapter 353;
(8) the public employees police and fire retirement plan of
the Public Employees Retirement
Association, established under
chapter 353;
(9) the local government correctional service retirement
plan of the Public Employees
Retirement Association, established
under chapter 353E;
(10) the Teachers Retirement Association, established under
chapter 354;
(11) the Minneapolis employees retirement fund, established
under chapter 422A;
(12) the Minneapolis Teachers Retirement Fund Association,
established under chapter 354A;
(13) the St. Paul Teachers Retirement Fund Association,
established under chapter 354A;
(14) the Duluth Teachers Retirement Fund Association,
established under chapter 354A; and
(15) the judges' retirement fund, established by sections
490.121 to 490.132; and
(16) the post‑sentencing officers and emergency dispatchers
retirement plan established under
chapter 353G.
Sec. 15. Minnesota Statutes 2002,
section 356.302,
subdivision 7, is amended to read:
Subd. 7. COVERED RETIREMENT
PLANS. This section applies
to the following retirement plans:
(1) the general state employees retirement plan of the
Minnesota state retirement system,
established by chapter 352;
(2) the unclassified state employees retirement program of
the Minnesota state retirement system,
established by chapter
352D;
(3) the general employees retirement plan of the Public
Employees Retirement Association,
established by chapter 353;
(4) the Teachers Retirement Association, established by
chapter 354;
(5) the Duluth Teachers Retirement Fund Association,
established by chapter 354A;
(6) the Minneapolis Teachers Retirement Fund Association,
established by chapter 354A;
(7) the St. Paul Teachers Retirement Fund Association,
established by chapter 354A;
(8) the Minneapolis employees retirement fund, established
by chapter 422A;
(9) the state correctional employees retirement plan of the
Minnesota State Retirement System,
established by chapter 352;
(10) the state patrol retirement plan, established by
chapter 352B;
(11) the public employees police and fire plan of the
Public Employees Retirement
Association, established by chapter
353;
(12) the local government correctional service retirement
plan of the Public Employees
Retirement Association, established
by chapter 353E; and
(13) the judges' retirement plan, established by sections
490.121 to 490.132; and
(14) the post‑sentencing officers and emergency dispatchers
retirement plan established under
chapter 353G.
Sec. 16. Minnesota Statutes 2002,
section 356.303,
subdivision 4, is amended to read:
Subd. 4. COVERED RETIREMENT
PLANS. This section applies
to the following retirement plans:
(1) the legislators retirement plan, established by chapter
3A;
(2) the general state employees retirement plan of the
Minnesota State Retirement System,
established by chapter 352;
(3) the correctional state employees retirement plan of the
Minnesota State Retirement System,
established by chapter 352;
(4) the state patrol retirement plan, established by
chapter 352B;
(5) the elective state officers retirement plan,
established by chapter 352C;
(6) the unclassified state employees retirement program,
established by chapter 352D;
(7) the general employees retirement plan of the Public
Employees Retirement Association,
established by chapter 353;
(8) the public employees police and fire plan of the Public
Employees Retirement Association,
established by chapter 353;
(9) the local government correctional service retirement
plan of the Public Employees
Retirement Association, established
by chapter 353E;
(10) the Teachers Retirement Association, established by
chapter 354;
(11) the Duluth Teachers Retirement Fund Association,
established by chapter 354A;
(12) the Minneapolis Teachers Retirement Fund Association,
established by chapter 354A;
(13) the St. Paul Teachers Retirement Fund Association,
established by chapter 354A;
(14) the Minneapolis employees retirement fund, established
by chapter 422A; and
(15) the judges' retirement fund, established by sections
490.121 to 490.132; and
(16) the post‑sentencing officers and emergency dispatchers
retirement plan established under
chapter 353G.
Sec. 17. Minnesota Statutes 2002,
section 356.315, is
amended by adding a subdivision to
read:
Subd. 5b. POST‑SENTENCING
OFFICERS AND EMERGENCY
DISPATCHERS. The applicable benefit accrual rate is 1.9 percent.
Sec. 18. Minnesota Statutes 2002,
section 356.465,
subdivision 3, is amended to read:
Subd. 3. COVERED RETIREMENT
PLANS. The provisions of
this section apply to the following
retirement plans:
(1) the general state employees retirement plan of the
Minnesota State Retirement System
established under chapter 352;
(2) the correctional state employees retirement plan of the
Minnesota State Retirement System
established under chapter 352;
(3) the state patrol retirement plan established under
chapter 352B;
(4) the legislators retirement plan established under
chapter 3A;
(5) the judges retirement plan established under chapter
490;
(6) the general employees retirement plan of the Public
Employees Retirement Association
established under chapter 353;
(7) the public employees police and fire plan of the Public
Employees Retirement Association
established under chapter 353;
(8) the teachers retirement plan established under chapter
354;
(9) the Duluth Teachers Retirement Fund Association
established under chapter 354A;
(10) the St. Paul Teachers Retirement Fund Association
established under chapter 354A;
(11) the Minneapolis Teachers Retirement Fund Association
established under chapter 354A;
(12) the Minneapolis employees retirement plan established
under chapter 422A;
(13) the Minneapolis Firefighters Relief Association
established under chapter 423C;
(14) the Minneapolis Police Relief Association established
under chapter 423B; and
(15) the local government correctional service retirement
plan of the Public Employees
Retirement Association established
under chapter 353E; and
(16) the post‑sentencing officers and emergency dispatchers
retirement plan established under
chapter 353G.
Sec. 19. Minnesota Statutes 2002,
section 356.555,
subdivision 4, is amended to read:
Subd. 4. COVERED PENSION
PLANS. This section applies to
the following pension plans:
(1) the general state employees retirement plan governed by
chapter 352;
(2) the correctional state employees retirement plan
governed by chapter 352;
(3) the general employees retirement plan of the Public
Employees Retirement Association governed
by chapter 353;
(4) the public employees police and fire plan governed by
chapter 353;
(5) the teachers retirement plan governed by chapter 354;
(6) the Minneapolis Teachers Retirement Fund Association
governed by chapter 354A;
(7) the Saint Paul Teachers Retirement Fund Association
governed by chapter 354A;
(8) the Duluth Teachers Retirement Fund Association
governed by chapter 354A;
(9) the Minneapolis employees retirement plan governed by
chapter 422A;
(10) the Minneapolis Police Relief Association governed by
chapter 423B; and
(11) the Minneapolis Fire Department Relief Association
governed by chapter 423C; and
(12) the post‑sentencing officers and emergency dispatchers
retirement plan governed by chapter
353G.
Sec. 20. EFFECTIVE DATE.
Sections 1 to 19 are effective on July 1, 2005.
ARTICLE 3
ACTUARIAL COST ESTIMATE; FUNDING OF
STUDY
Section 1. ACTUARIAL COST
ESTIMATE.
(a) Under the direction of the legislative commission on
pensions and retirement, the
consulting actuary retained by the
commission shall prepare an
actuarial cost estimate of the
proposed post‑sentencing
officers and emergency dispatchers
retirement plan.
(b) The actuarial cost estimate must be prepared based on
the plan demographic information
assembled by the executive
director of the Minnesota State
Retirement System and by the
executive director of the Public
Employees Retirement
Association. The executive directors shall obtain
preliminary
plan membership certifications of
the applicable post‑sentencing
officers and emergency dispatchers
by July 1, 2004, and shall
certify the necessary demographic
data in computer‑readable
format to the commission‑retained
actuary on or before September
1, 2004.
(c) The actuarial cost estimate must be transmitted to the
executive director of the
legislative commission on pensions and
retirement, the director of the
legislative reference library,
the commissioner of corrections,
and chief of the state patrol,
the executive director of the
Public Employees Retirement
Association, the executive director
of the association of
Minnesota counties, and the
executive director of the league of
Minnesota cities on or before
February 1, 2005.
(d) The director of the legislative reference library shall
make the results of the actuarial
cost estimate available on the
legislative reference library's
website.
(e) The executive director of the legislative commission on
pensions and retirement shall take
the steps to amend any
contract with the commission‑retained
actuary to accommodate
this project.
Sec. 2. APPROPRIATION.
$....... is appropriated from the state general fund to the
executive director of the
legislative commission on pensions and
retirement to fund the actuarial
cost estimate required under
section 1.
Sec. 3. EFFECTIVE DATE.
Sections 1 and 2 are effective on the day following final
enactment.