1.1 .................... moves to amend H. F. No. 2362, the first engrossment, as follows:
1.2 Page 25, after line 36, insert:
1.3 ”Sec. 12. Minnesota Statutes 2005 Supplement, section 353.028, subdivision 3,
1.4 is amended to read:
1.5 Subd. 3. Deferred compensation; city contribution. (a) If an election of exclusion
1.6 under subdivision 2 is made, and if the city manager and the governing body of the city
1.7 additionally agree in writing that the additional compensation is to be deferred and is to
1.8 be contributed on behalf of the city manager to a deferred compensation program which
1.9 meets the requirements of section 457 of the Internal Revenue Code of 1986, as amended,
1.10 the governing body may compensate the city manager, in addition to the salary allowed
1.11 under any limitation imposed on salaries by law or charter, in an amount equal to the
1.12 employer contribution which would be required by section 353.27, subdivision 3, if the
1.13 city manager were a member of the general employees retirement plan.
1.14 (b) Alternatively, if an election of exclusion under subdivision 2 is made, the city
1.15 manager and the governing body of the city may agree in writing that the equivalent
1.16 employer contribution to the contribution under section 353.27, subdivision 3, be
1.17 contributed by the city to the defined contribution plan of the Public Employees
1.18 Retirement Association under chapter 353D.”
1.19 Page 37, line 22, strike ”and”
1.20 Page 37, line 25, after ”7” insert ”;
1.21 (6) city managers who elected to be excluded from the general employees retirement
1.22 plan of the Public Employees Retirement Association under section 353.028 and who
1.23 elected to participate in the public employees defined contribution plan under section
1.24 353.028, subdivision 3, paragraph (b); and
1.25 (7) volunteer or emergency on-call firefighters serving in a municipal fire department
1.26 or an independent nonprofit firefighting corporation who are not covered by the public
2.1 employees police and fire retirement plan and who are not covered by a volunteer
2.2 firefighters relief association and who elect to participate in the public employees defined
2.3 contribution plan”
2.4 Page 38, after line 11, insert:
2.5 ”Sec. 32. Minnesota Statutes 2004, section 353D.02, is amended by adding a
2.6 subdivision to read:
2.7 Subd. 6. City managers. City managers who elected to be excluded from the
2.8 general employees retirement plan of the Public Employees Retirement Association
2.9 under section 353.028, and who elected to participate in the plan under section 353.028,
2.10 subdivision 3, paragraph (b), shall file that election with the executive director.
2.11 Participation begins on the first day of the pay period next following the date of the
2.12 coverage election. An election to participate by a city manager is revocable.
2.13 Sec. 33. Minnesota Statutes 2004, section 353D.02, is amended by adding a
2.14 subdivision to read:
2.15 Subd. 7. Certain volunteer firefighters. Volunteer or emergency on-call firefighters
2.16 who are serving as members of a municipal fire department or an independent nonprofit
2.17 firefighting corporation and who are not covered for that firefighting service by the
2.18 public employees police and fire retirement plan under sections 353.63 to 353.68 or by
2.19 the applicable volunteer firefighters relief association under chapter 424A may elect to
2.20 participate in the plan. An eligible firefighter's election is irrevocable. No employer
2.21 contribution is payable by the fire department or the firefighting corporation unless the
2.22 municipal governing body or the firefighting corporation governing body, whichever
2.23 applies, ratifies the election.
2.24 Sec. 34. Minnesota Statutes 2004, section 353D.03, is amended by adding a
2.25 subdivision to read:
2.26 Subd. 5. City managers. A city manager who elects to participate in the plan
2.27 shall contribute an amount equal to the contribution under section 353.27, subdivision
2.28 2. The applicable city shall make a contribution equal to the contribution required under
2.29 section 353.27, subdivision 3.
2.30 Sec. 35. Minnesota Statutes 2004, section 353D.03, is amended by adding a
2.31 subdivision to read:
2.32 Subd. 6. Volunteer firefighters. (a) Unless paragraph (b) applies, a volunteer or
2.33 emergency on-call firefighter who elects to participate in the plan shall contribute at least
2.34 7.5 percent of any compensation received for firefighting services.
3.1 (b) If the municipality or the independent nonprofit firefighting corporation ratified
3.2 the election of plan coverage under section 353D.02, subdivision 6, the volunteer
3.3 firefighter and the employing unit shall contribute in total an amount equal at least to 7.5
3.4 percent of any compensation received for firefighting services.”
3.5 Page 41, after line 16, insert:
3.6 ”Sec. 40. Minnesota Statutes 2004, section 356.24, subdivision 1, is amended to
3.7 read:
3.8 Subdivision 1. Restriction; exceptions. (a) It is unlawful for a school district
3.9 or other governmental subdivision or state agency to levy taxes for, or to contribute
3.10 public funds to a supplemental pension or deferred compensation plan that is established,
3.11 maintained, and operated in addition to a primary pension program for the benefit of the
3.12 governmental subdivision employees other than:
3.13 (1) to a supplemental pension plan that was established, maintained, and operated
3.14 before May 6, 1971;
3.15 (2) to a plan that provides solely for group health, hospital, disability, or death
3.16 benefits;
3.17 (3) to the individual retirement account plan established by chapter 354B;
3.18 (4) to a plan that provides solely for severance pay under section 465.72 to a retiring
3.19 or terminating employee;
3.20 (5) for employees other than personnel employed by the Board of Trustees of the
3.21 Minnesota State Colleges and Universities and covered under the Higher Education
3.22 Supplemental Retirement Plan under chapter 354C, but including city managers covered
3.23 by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph
3.24 (a), or by the defined contribution plan of the Public Employees Retirement Association
3.25 under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is
3.26 provided for in a personnel policy of the public employer or in the collective bargaining
3.27 agreement between the public employer and the exclusive representative of public
3.28 employees in an appropriate unit or in the individual employment contract between a city
3.29 and a city manager, in an amount matching employee contributions on a dollar for dollar
3.30 basis, but not to exceed an employer contribution of $2,000 a year per employee;
3.31 (i) to the state of Minnesota deferred compensation plan under section 352.96; or
3.32 (ii) in payment of the applicable portion of the contribution made to any investment
3.33 eligible under section 403(b) of the Internal Revenue Code, if the employing unit has
3.34 complied with any applicable pension plan provisions of the Internal Revenue Code with
3.35 respect to the tax-sheltered annuity program during the preceding calendar year;
4.1 (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
4.2 and Universities and not covered by clause (5), to the supplemental retirement plan under
4.3 chapter 354C, if the supplemental plan coverage is provided for in a personnel policy
4.4 or in the collective bargaining agreement of the public employer with the exclusive
4.5 representative of the covered employees in an appropriate unit, in an amount matching
4.6 employee contributions on a dollar for dollar basis, but not to exceed an employer
4.7 contribution of $2,700 a year for each employee;
4.8 (7) to a supplemental plan or to a governmental trust to save for postretirement
4.9 health care expenses qualified for tax-preferred treatment under the Internal Revenue
4.10 Code, if the supplemental plan coverage is provided for in a personnel policy or in the
4.11 collective bargaining agreement of a public employer with the exclusive representative of
4.12 the covered employees in an appropriate unit;
4.13 (8) to the laborer's national industrial pension fund for the employees of a
4.14 governmental subdivision who are covered by a collective bargaining agreement that
4.15 provides for coverage by that fund and that sets forth a fund contribution rate, but not to
4.16 exceed an employer contribution of $2,000 per year per employee;
4.17 (9) to the plumbers' and pipefitters' national pension fund or to a plumbers' and
4.18 pipefitters' local pension fund for the employees of a governmental subdivision who are
4.19 covered by a collective bargaining agreement that provides for coverage by that fund and
4.20 that sets forth a fund contribution rate, but not to exceed an employer contribution of
4.21 $2,000 per year per employee;
4.22 (10) to the international union of operating engineers pension fund for the employees
4.23 of a governmental subdivision who are covered by a collective bargaining agreement that
4.24 provides for coverage by that fund and that sets forth a fund contribution rate, but not to
4.25 exceed an employer contribution of $2,000 per year per employee; or
4.26 (11) to a supplemental plan organized and operated under the federal Internal
4.27 Revenue Code, as amended, that is wholly and solely funded by the employee's
4.28 accumulated sick leave, accumulated vacation leave, and accumulated severance pay.
4.29 (b) No governmental subdivision may make a contribution to a deferred
4.30 compensation plan operating under section 457 of the Internal Revenue Code for volunteer
4.31 or emergency on-call firefighters in lieu of providing retirement coverage under the federal
4.32 old age, survivors, and disability insurance program.
4.33 Sec. 41. Minnesota Statutes 2004, section 356.50, is amended to read:
4.34 356.50 SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN
4.35 THE EVENT OF WRONGFUL DISCHARGE; ANNUITY AND DISABILITY
4.36 TREATMENT.
5.1 Subdivision 1. Application. (a) A person who is wrongfully discharged from public
5.2 employment that gave rise to coverage by a public employee pension plan enumerated
5.3 in section 356.30, subdivision 3, is entitled to obtain allowable service credit from the
5.4 applicable public employee pension plan for the applicable period caused by the wrongful
5.5 discharge.
5.6 (b) A person is wrongfully discharged for purposes of this section if:
5.7 (1) the person has been determined by a court of competent jurisdiction or, by an
5.8 arbitrator in binding arbitration, by the commissioner of veterans affairs, or by a board,
5.9 commission, or panel acting under Minnesota Statutes, section 197.46, whichever applies,
5.10 to have been wrongfully discharged from public employment;
5.11 (2) the person received an award of back pay with respect to that discharge; and
5.12 (3) the award does not include any amount for any lost or interrupted public pension
5.13 plan coverage.
5.14 Subd. 2. Service credit procedure. (c)(a) To obtain the public pension plan
5.15 allowable service credit, the eligible person under subdivision 1 shall pay the required
5.16 member contribution amount. The required member contribution amount is the member
5.17 contribution rate or rates in effect for the pension plan during the period of service covered
5.18 by the back pay award, applied to the unpaid gross salary amounts of the back pay award
5.19 including unemployment insurance, workers' compensation or wages from other sources
5.20 which reduced the back award. No contributions shall be made under this clause for
5.21 compensation covered by a public pension plan listed in section 356.30, subdivision 3,
5.22 for employment during the removal period. The person shall pay the required member
5.23 contribution amount within 60 days of the date of receipt of the back pay award, within
5.24 60 days of April 14, 1992, or within 60 days of a billing from the retirement fund,
5.25 whichever is later.
5.26 (d)(b) The public employer who wrongfully discharged the public employee must
5.27 pay an employer contribution on the back pay award. The employer contribution must be
5.28 based on the employer contribution rate or rates in effect for the pension plan during the
5.29 period of service covered by the back pay award, applied to the salary amount on which
5.30 the member contribution amount was determined under paragraph (c)(a). Interest on both
5.31 the required member and employer contribution amount must be paid by the employer at
5.32 the annual compound rate of 8.5 percent per year, expressed monthly, between the date the
5.33 contribution amount would have been paid to the date of actual payment. The employer
5.34 payment must be made within 30 days of the payment under paragraph (c)(a).
6.1 Subd. 3. Employer reporting. The employer must report to the executive director
6.2 of the applicable pension plan that a person has been determined to be wrongfully
6.3 discharged and the employer must provide a copy of the written order or decision.
6.4 Subd. 4. Annuity repayment. Notwithstanding subdivisions 1 and 2, if after being
6.5 discharged, the person commences receipt of an annuity from the applicable plan, and it is
6.6 later determined that the person was wrongfully discharged, the person shall repay the
6.7 annuity received in a lump sum within 60 days of receipt of the back pay award. If the
6.8 annuity is not repaid, the person is not entitled to reinstatement in the applicable plan as
6.9 an active member, is not authorized to make payments under subdivision 2, paragraph
6.10 (a), and for subsequent employment with the employer, the person shall be treated as
6.11 a reemployed annuitant.
6.12 Subd. 5. Disability treatment. If a person is wrongfully discharged and prior to
6.13 reinstatement takes a refund of employee contributions under the applicable plan's refund
6.14 provision and fails to repay that refund, then not withstanding other law to the contrary, if
6.15 the person applies for a disability benefit and is approved for that benefit, the disability
6.16 benefit amount must be computed solely on the years of covered service provided
6.17 after reinstatement, the individual's salary for benefit computation purposes, and the
6.18 applicable plan accrual rates, rather than receiving a minimum disability benefit amount, if
6.19 applicable, specified in plan law.”
6.20 Page 43, after line 25, insert:
6.21 ”Sec. 45. TEMPORARY PROVISION; TRANSFER OF CERTAIN
6.22 DEFERRED COMPENSATION CONTRIBUTIONS.
6.23 Any amount contributed by a municipality or an independent nonprofit firefighting
6.24 corporation to the state deferred compensation program under Minnesota Statutes, section
6.25 352.96, for or on behalf of a volunteer or emergency on-call firefighter for whom no other
6.26 retirement coverage is provided for that firefighting service and for whom the deferred
6.27 compensation program contributions were made to avoid providing retirement coverage
6.28 under the federal old age, survivors, and disability insurance program and as such were
6.29 in error, if federal law so permits, may be transferred to the public employees defined
6.30 contribution plan for subsequent deposit in the individual account of the applicable
6.31 firefighter.”
6.32 Page 44, after line 10, insert ”(e) Sections 12, 32, 33, 34, 35, 40, 41, and 45 are
6.33 effective the day following final enactment.”
6.34 Page 105, after line 23, insert:
6.35 ”Sec. 5. Minnesota Statutes 2004, section 424A.10, is amended to read:
7.1 424A.10 STATE SUPPLEMENTAL BENEFIT; VOLUNTEER
7.2 FIREFIGHTERS.
7.3 Subdivision 1. Definition Definitions. For purposes of this section,:
7.4 (1) "qualified recipient" means an individual who receives a lump sum distribution of
7.5 pension or retirement benefits from a firefighters' relief association for service performed
7.6 as a volunteer firefighter;
7.7 (2) "survivor of a deceased active or deferred volunteer firefighter" means the legally
7.8 married spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or
7.9 minor children of a deceased volunteer firefighter;
7.10 (3) "active volunteer firefighter" means a person who regularly renders fire
7.11 suppression service for a municipal fire department or an independent nonprofit firefighting
7.12 corporation, who has met the statutory and other requirements for relief association
7.13 membership, and who has been a fully qualified member of the relief association for
7.14 at least one month; and.
7.15 (4) "deferred volunteer firefighter" means a former active volunteer firefighter who
7.16 terminated active firefighting service, has sufficient service credit from the applicable
7.17 relief association to be entitled to a service pension, but has not applied for or has not
7.18 received the service pension.
7.19 Subd. 2. Payment of supplemental benefit. (a) Upon the payment by a firefighters'
7.20 relief association of a lump sum distribution to a qualified recipient, the association must
7.21 pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
7.22 contrary, the relief association may pay the supplemental benefit out of its special fund.
7.23 The amount of this benefit equals ten percent of the regular lump sum distribution that
7.24 is paid on the basis of service as a volunteer firefighter. In no case may the amount of
7.25 the supplemental benefit exceed $1,000.
7.26 (b) Upon the payment by a relief association of a lump sum survivor benefit or
7.27 funeral benefit to a survivor of a deceased active volunteer firefighter or of a deceased
7.28 deferred volunteer firefighter, the association may pay a supplemental survivor benefit
7.29 to the survivor of the deceased active or deferred volunteer firefighter from the special
7.30 fund of the relief association if its articles of incorporation or bylaws so provide. The
7.31 amount of the supplemental survivor benefit is 20 percent of the survivor benefit or funeral
7.32 benefit, but not to exceed $2,000.
7.33 Subd. 3. State reimbursement. (a) By February 15 of each year, the treasurer of
7.34 the relief association shall apply to the commissioner of revenue for state reimbursement
7.35 of the amount of supplemental benefits paid under subdivision 2 during the preceding
8.1 calendar year. By March 15 the commissioner shall reimburse the relief association for the
8.2 amount of the supplemental benefits paid to qualified recipients.
8.3 (b) The commissioner of revenue shall prescribe the form of and supporting
8.4 information that must be supplied as part of the application for state reimbursement.
8.5 (c) The reimbursement payment must be deposited in the special fund of the relief
8.6 association.
8.7 (d) A sum sufficient to make the payments is appropriated from the general fund
8.8 to the commissioner of revenue.
8.9 Subd. 4. In lieu of income tax exclusion. (a) The supplemental benefit provided
8.10 by this section is in lieu of the state income tax exclusion for lump sum distributions of
8.11 retirement benefits paid to volunteer firefighters.
8.12 (b) If the law is modified to exclude or exempt volunteer firefighters' lump sum
8.13 distributions from state income taxation, the supplemental benefits under this section
8.14 may no longer be paid beginning with the first calendar year in which the exclusion or
8.15 exemption is effective. This subdivision does not apply to exemption of all or part of a
8.16 lump sum distribution under section 290.032 or 290.0802.
8.17 Subd. 5. Retroactive reimbursement in certain instances. A supplemental
8.18 survivor or funeral benefit may be paid by a relief association for the death of an active
8.19 volunteer firefighter or of a deferred volunteer firefighter that occurred on or after August
8.20 1, 2005, if the relief association articles of incorporation or bylaws so provide for a
8.21 supplemental survivor benefit and for retroactivity.”
8.22 Page 118, line 21, delete everything after ”enactment”
8.23 Page 118, delete lines 22 and 23
8.24 Page 118, line 24, delete ”additional service and salary credit under Minnesota
8.25 Statutes, chapter 353”
8.26 Page 122, after line 3, insert:
8.27 ”Sec. 16. PERA-P&F; PURCHASE OF SERVICE CREDIT.
8.28 Subdivision 1. Eligibility. An eligible person may purchase allowable service credit
8.29 from the public employees police and fire plan for a period of service as a police officer
8.30 provided to the city of Eveleth immediately prior to January 1, 1978, not to exceed 14
8.31 months. An eligible person is a person who:
8.32 (1) is currently a member of the public employees police and fire plan;
8.33 (2) was first employed by the city of Eveleth police department on November 29,
8.34 1976; and
8.35 (3) was born on June 5, 1956.
9.1 Subd. 2. Purchase requirements. An eligible person must apply to the executive
9.2 director of the Public Employees Retirement Association to make the service credit
9.3 purchase authorized in this section. This application for a purchase of service credit under
9.4 Minnesota Statutes, section 356.551, must be in writing and must contain documentation
9.5 required by the executive director.
9.6 Subd. 3. Additional requirements; restrictions. (a) In addition to the one-year
9.7 payment time limit in Minnesota Statutes, section 356.551, the authority provided by this
9.8 section is voided if the payment amount is not paid to the executive director of the Public
9.9 Employees Retirement Association prior to termination of service by the eligible person.
9.10 (b) This section is voided if the eligible person received a refund of contributions
9.11 relating to the eligible period stated in subdivision 1, due to Laws 1977, chapter 61, section
9.12 4, or any other refund provision in applicable law or plan documents.
9.13 (c) This section is voided relating to any portion of the eligible period specified in
9.14 subdivision 1 which was properly excluded from coverage by statute, law, or ordinance
9.15 then in effect, or if the lack of coverage was due to an election made by the eligible
9.16 individual, or by a failure by that individual to obtain the applicable service credit under
9.17 service credit purchase authority in effect when the service was rendered or within two
9.18 years following the merger of the Eveleth Police Relief Association members into the
9.19 Public Employees Retirement Association police and fire plan as authorized by Laws
9.20 1977, chapter 61.
9.21 Subd. 4. Payment. (a) If an eligible person meets the requirements to purchase
9.22 service credit under this section, the public employees police and fire fund must be paid
9.23 the amount determined under Minnesota Statutes, section 356.551. Of this amount:
9.24 (1) the eligible person must pay an amount equal to the employee contribution rate
9.25 during the period of service to be purchased, applied to the actual salary in effect during
9.26 that period, plus interest at the rate of 8.5 percent per year compounded annually from
9.27 the date on which the contributions should have been made to the date on which payment
9.28 is made under this section; and
9.29 (2) the city of Eveleth must pay the remainder of the amount determined under
9.30 Minnesota Statutes, section 356.551.
9.31 (b) If the city of Eveleth fails to pay the amount required under paragraph (a), clause
9.32 (2), within 30 days of notification from the executive director of the amount required, the
9.33 executive director shall inform the commissioner of the Department of Finance of the
9.34 amount of the deficiency, and the amount must be deducted from any subsequent state
9.35 aid to the city.
10.1 Sec. 17. TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF
10.2 SERVICE CREDIT FOR AN UNCREDITED EXTENDED LEAVE.
10.3 (a) An eligible person described in paragraph (b) in authorized to purchase allowable
10.4 and formula service credit in the Teachers Retirement Association for any period of an
10.5 eligible person's extended leave that was not properly reported to the Teachers Retirement
10.6 Association by Independent School District No. 831, Forest Lake. Allowable formula
10.7 service credit and salary credit is granted under Minnesota Statutes, section 354.05,
10.8 subdivision 13, to the eligible person upon making the payment required under paragraph
10.9 (c).
10.10 (b) An eligible person is a person who:
10.11 (1) was born on November 23, 1949;
10.12 (2) was initially employed as a teacher in September 1974;
10.13 (3) is employed by Independent School District No. 831, Forest Lake; and
10.14 (4) took an extended leave for the 2001-2002 school year that was not reported
10.15 to the Teachers Retirement Association in a timely fashion as required by Minnesota
10.16 Statutes, section 354.094.
10.17 (c) The eligible person is authorized to make an employee equivalent contribution
10.18 payment equal to ten percent of the person's school year salary received during the year
10.19 immediately preceding the extended leave, plus compound interest at the rate of 8.5
10.20 percent per annum from July 1, 2001, to the date on which the lump sum payment is made.
10.21 (d) If the eligible person makes the payment under paragraph (c), the executive
10.22 director of the Teachers Retirement Association shall, within 30 days, notify Independent
10.23 School District No. 831, Forest Lake, of its obligation under this section. The school
10.24 district's obligation is the balance of the prior service credit purchase payment amount
10.25 determined under Minnesota Statutes, section 356.551, which exceeds the payment under
10.26 paragraph (c). If the school district fails to pay its obligation within 60 days following
10.27 notification, the executive director shall certify that failure and the amount due to the
10.28 commissioner of finance, who shall deduct the amount due from any subsequent state aid
10.29 payable to Independent School District No. 831, Forest Lake, plus interest at the rate of
10.30 0.71 percent per month from the date of the payment under paragraph (c) to the date of
10.31 the actual payment.
10.32 (e) This provision expires on July 1, 2007, or upon termination of covered service,
10.33 whichever is earlier.”
10.34 Page 122, after line 12, insert ”(e) Sections 16 and 17 are effective the day following
10.35 final enactment.”
10.36 Renumber the sections in sequence and correct the internal references
11.1 Amend the title accordingly