House Ways & Means Committee amendments:
1.1 .................... moves to amend 1978, the first engrossment, as follows:
1.2 Page 52, lines 2 and 6, delete ", other than paragraph (j),"
1.3 Page 64, delete section 45
1.4 Page 71, line 13, delete "4" and insert "4a"
1.5 Page 72, line 17, delete "July 1" and insert "June 30"
1.6 Page 81, line 8, delete everything after "(a)"
1.7 Page 81, line 9, delete "1a,"
1.8 Page 81, line 13, delete everything after "later."
1.9 Page 81, line 14, delete everything before "no"
1.10 Page 83, after line 29, insert:
1.11 "Sec. 15. Minnesota Statutes 2006, section 353.656, subdivision 1, is amended to read:
1.12 Subdivision 1. In line of Duty disability; computation of benefits. (a) A member
1.13 of the police and fire plan who:
1.14 (1) has not met the requirements for a retirement annuity under section
353.651,
1.15 subdivision 1, or
1.16 (2) has met the requirements for a retirement annuity under section
353.651,
1.17 subdivision 1, but who does not have 20 years of credited service; and who becomes
1.18 disabled and physically unfit to perform duties as a police officer, firefighter, or paramedic
1.19 as defined under section
353.64, subdivision 10, as a direct result of an injury, sickness, or
1.20 other disability incurred in or arising out of any act of duty, which has or is expected to
1.21 render the member physically or mentally unable to perform the duties as a police officer,
1.22 firefighter, or paramedic as defined under section
353.64, subdivision 10, for a period of at
1.23 least one year is determined to qualify for duty disability as defined in section 353.01,
1.24 subdivision 41, shall receive disability benefits during the period of such disability.
1.25 (b) The benefits must be in an amount equal to 60 percent of the "average salary" as
1.26 defined in section
, plus an additional percent specified in section
1.27 356.315, subdivision 6, of that average salary for each year of service in excess of 20 years.
2.1 (b) To be eligible for a benefit under paragraph (a), the member must have:
2.2 (1) not met the requirements for a retirement annuity under section 353.651,
2.3 subdivision 1; or
2.4 (2) met the requirements under that subdivision, but does not have at least 20 years
2.5 of allowable service credit.
2.6 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
2.7 period of 60 months from the disability benefit accrual date and at the end of that period
2.8 is subject to provisions of subdivision 5a.
2.9 (d) If the disability under this subdivision occurs before the member has at least five
2.10 years of allowable service credit in the police and fire plan, the disability benefit must be
2.11 computed on the "average salary" from which deductions were made for contribution to
2.12 the police and fire fund.
2.13 EFFECTIVE DATE.This section is effective July 1, 2007, and applies to disability
2.14 benefit applicants whose last day of public employment was after June 30, 2007."
2.15 Page 84, line 24, before "If" insert "(d)"
2.16 Page 92, line 16, after "(a)" insert "Except for a total and permanent disability
2.17 under subdivision 1a, "
2.18 Page 92, line 21, before "No" insert "Except for a total and permanent disability
2.19 under subdivision 1a, "
2.20 Page 135, line 11, after "Midwest" insert "Forensic"
2.21 Page 135, line 12, delete "Incorporated" and insert "P.A."
2.22 Page 135, line 13, after "Midwest" insert "Forensic"
2.23 Page 135, line 14, delete "Incorporated" and insert "P.A."
2.24 Renumber the sections in sequence and correct the internal references
2.25 Amend the title accordingly
1.1 .................... moves to amend H.F. No. 1978, the second engrossment, as follows:
1.2 Pages 108 to 112, delete sections 1 to 3 and insert:
1.3 "Section 1. ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION;
1.4 PILOT POSTRETIREMENT ADJUSTMENT; LIMITATIONS.
1.5 (a) Notwithstanding any provision of Minnesota Statutes, Chapter 354A, to the
1.6 contrary, for calendar years 2008 and 2009 and for postretirement adjustments initially
1.7 payable on January 1, 2008, or January 1, 2009, as a pilot program this section supersedes
1.8 Minnesota Statutes, Section 354A.29, subdivisions 3 and 4, and the applicable bylaw
1.9 provisions of the St. Paul Teachers Retirement Fund Association.
1.10 (b) The postretirement adjustment under the pilot program must be determined by
1.11 the executive director and approved by the board annually using the procedures under
1.12 this section.
1.13 (c) On January 1, each eligible person who has accrued or received an annuity or
1.14 benefit under the articles of incorporation, the bylaws, or this chapter for at least three full
1.15 calendar months as of the end of the calendar year is eligible to receive a postretirement
1.16 adjustment that is payable the following January 1.
1.17 (d) A percentage adjustment must be computed and paid under this paragraph to
1.18 eligible persons under paragraph (c). This adjustment is determined by reference to the
1.19 Consumer Price Index for urban wage earners and clerical workers all items index as
1.20 reported by the Bureau of Labor Statistics within the United States Department of Labor
1.21 each year as part of the determination of annual cost-of-living adjustments to recipients of
1.22 federal old-age, survivors, and disability insurance. For calculations of the cost-of-living
1.23 adjustment under paragraph (b), the term "average third quarter Consumer Price Index
1.24 value" means the sum of the monthly index values as initially reported by the Bureau of
1.25 Labor Statistics for the months of July, August, and September, divided by 3.
1.26 (e) Before January 1 of each year, the executive director must calculate the amount of
1.27 the cost-of-living adjustment by dividing the most recent average third quarter index value
2.1 by the same average third quarter index value from the previous year, subtract one from the
2.2 resulting quotient, and express the result as a percentage amount, which must be rounded
2.3 to the nearest one-tenth of one percent. The final amount may not be a negative number
2.4 and may not exceed 2.5 percent if the rate of investment return of the retirement fund
2.5 either for the most recent fiscal year or for the most recent five-year period, each calculated
2.6 under the formula specified in section 11A.04, clause (11), is less than 8.5 percent and may
2.7 not exceed 5.0 percent if the rate of investment return of the retirement fund both for the
2.8 most recent fiscal year and for the most recent five-year period, each calculated under the
2.9 formula specified in section 11A.04, clause (11), are equal to or greater than 8.5 percent.
2.10 (f) The amount calculated under paragraph (b) is the full cost-of-living adjustment
2.11 to be applied as a permanent increase to the regular payment of each eligible member
2.12 on January 1 of the next calendar year. For any eligible member whose effective date
2.13 of benefit commencement occurred during the calendar year before the cost-of-living
2.14 adjustment is applied, the full increase amount must be prorated on the basis of whole
2.15 calendar quarters in benefit payment status in the calendar year prior to the January 1 on
2.16 which the cost-of-living adjustment is applied, calculated to the third decimal place.
2.17 (g) This pilot postretirement adjustment program does not constitute a precedent for
2.18 this or any other retirement plan.
2.19 Sec. 2. MANDATED STUDY AND REPORT ON SPTRFA POSTRETIREMENT
2.20 ADJUSTMENT EXPERIENCE.
2.21 (a) The Legislative Commission on Pensions and Retirement shall study the
2.22 experience of the St. Paul Teachers Retirement Fund Association under the temporary
2.23 postretirement adjustment mechanism under section 1 and shall consider any proposals
2.24 or analyses presented by other Minnesota public retirement plans regarding potential or
2.25 proposed postretirement adjustment mechanism changes. Following the completion of
2.26 its study, on or before January 15, 2009, the Legislative Commission on Pensions and
2.27 Retirement shall report to the chair of the House Committee on Governmental Operations,
2.28 Reform Technology and Elections, the chair of the House Committee on Finance, the
2.29 chair of the Senate Committee on State and Local Governmental Operations, and the
2.30 chair of the Senate Committee on Finance its findings and recommendations regarding a
2.31 possible continuation, modification, or elimination of the temporary mechanism specified
2.32 in section 1.
2.33 (b) For fiscal years 2007 and 2008, in addition to the regular actuarial valuation
2.34 prepared under Minnesota Statutes, section 356.215, the St. Paul Teachers Retirement
2.35 Fund Association shall have prepared and shall file with the Legislative Commission on
2.36 Pensions and Retirement a supplemental actuarial valuation report providing comparative
3.1 data on the funded status, actuarial requirements, contribution sufficiency or deficiency,
3.2 and any other relevant results if the temporary postretirement adjustment mechanism
3.3 under section 1 was a permanent mechanism. This report must be submitted for inclusion
3.4 in the study required under paragraph (a)."
3.5 Renumber the articles in sequence and correct the internal references
3.6 Amend the title accordingly