Bill Text: MN HF1409 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minnesota State Retirement System; legislators permitted to transfer to general state employees retirement plan coverage rather than retain unclassified state employees retirement plan coverage.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2013-03-11 - Introduction and first reading, referred to Government Operations [HF1409 Detail]
Download: Minnesota-2013-HF1409-Introduced.html
1.2relating to retirement; Minnesota State Retirement System, permitting legislators
1.3to transfer to general state employees retirement plan coverage rather than retain
1.4unclassified state employees retirement program coverage; amending Minnesota
1.5Statutes 2012, sections 352.01, subdivision 2a; 352D.02, subdivisions 1, 3.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 352.01, subdivision 2a, is amended to read:
1.8 Subd. 2a. Included employees. (a) "State employee" includes:
1.9 (1) employees of the Minnesota Historical Society;
1.10 (2) employees of the State Horticultural Society;
1.11 (3) employees of the Minnesota Crop Improvement Association;
1.12 (4) employees of the adjutant general whose salaries are paid from federal funds and
1.13who are not covered by any federal civilian employees retirement system;
1.14 (5) employees of the Minnesota State Colleges and Universities who are employed
1.15under the university or college activities program;
1.16 (6) currently contributing employees covered by the system who are temporarily
1.17employed by the legislature during a legislative session or any currently contributing
1.18employee employed for any special service as defined in subdivision 2b, clause (8);
1.19 (7) employees of the legislature who are appointed without a limit on the duration
1.20of their employment and persons employed or designated by the legislature or by a
1.21legislative committee or commission or other competent authority to conduct a special
1.22inquiry, investigation, examination, or installation;
1.23 (8) trainees who are employed on a full-time established training program
1.24performing the duties of the classified position for which they will be eligible to receive
1.25immediate appointment at the completion of the training period;
2.1 (9) employees of the Minnesota Safety Council;
2.2 (10) any employees who are on authorized leave of absence from the Transit
2.3Operating Division of the former Metropolitan Transit Commission and who are employed
2.4by the labor organization which is the exclusive bargaining agent representing employees
2.5of the Transit Operating Division;
2.6 (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
2.7Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
2.8Control Commission unless excluded under subdivision 2b or are covered by another
2.9public pension fund or plan under section473.415, subdivision 3 ;
2.10 (12) judges of the Tax Court;
2.11 (13) personnel who were employed on June 30, 1992, by the University of
2.12Minnesota in the management, operation, or maintenance of its heating plant facilities,
2.13whose employment transfers to an employer assuming operation of the heating plant
2.14facilities, so long as the person is employed at the University of Minnesota heating plant
2.15by that employer or by its successor organization;
2.16 (14) personnel who are employed as seasonal employees in the classified or
2.17unclassified service;
2.18 (15) persons who are employed by the Department of Commerce as a peace officer
2.19in the Insurance Fraud Prevention Division under section45.0135 who have attained the
2.20mandatory retirement age specified in section43A.34, subdivision 4 ;
2.21 (16) employees of the University of Minnesota unless excluded under subdivision
2.222b, clause (3);
2.23 (17) employees of the Middle Management Association whose employment began
2.24after July 1, 2007, and to whom section352.029 does not apply;
2.25 (18) employees of the Minnesota Government Engineers Council to whom section
2.26352.029
does not apply; and
2.27(19) employees of the Minnesota Sports Facilities Authority.; and
2.28(20) a legislator who elects under section 4 or section 352D.02 to have coverage
2.29under the general state employees retirement plan.
2.30 (b) Employees specified in paragraph (a), clause (13), are included employees under
2.31paragraph (a) if employer and employee contributions are made in a timely manner in the
2.32amounts required by section352.04 . Employee contributions must be deducted from
2.33salary. Employer contributions are the sole obligation of the employer assuming operation
2.34of the University of Minnesota heating plant facilities or any successor organizations to
2.35that employer.
2.36EFFECTIVE DATE.This section is effective July 1, 2013.
3.1 Sec. 2. Minnesota Statutes 2012, section 352D.02, subdivision 1, is amended to read:
3.2 Subdivision 1. Coverage. (a)Employees enumerated Persons specified in paragraph
3.3(c), clauses (2), (3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service
3.4of the state or Metropolitan Council and are eligible for coverage under the general state
3.5employees retirement plan under chapter 352, are participants in the unclassified program
3.6under this chapter unless the employee gives notice to the executive director of the
3.7Minnesota State Retirement System within one year following thecommencement start
3.8of employment in the unclassified service that the employee desires coverage under the
3.9general state employees retirement plan. For the purposes of this chapter, an employee
3.10who does not file notice with the executive director is deemed to have exercised the option
3.11to participate in the unclassified program.
3.12 (b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
3.13program under this chapter unless the person was eligible to elect different coverage under
3.14section3A.07 and elected retirement coverage by the applicable alternative retirement
3.15plan or elected general state employees retirement plan coverage under subdivision 3
3.16or section 4. Persons referenced in paragraph (c), clause (15), are participants in the
3.17unclassified program under this chapter for judicial employment in excess of the service
3.18credit limit in section490.121, subdivision 22 .
3.19 (c)Enumerated Employees and referenced persons are:
3.20 (1) the governor, the lieutenant governor, the secretary of state, the state auditor,
3.21and the attorney general;
3.22 (2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
3.23of State, State Auditor, Attorney General;
3.24 (3) an employee of the State Board of Investment;
3.25 (4) the head of a department, division, or agency created by statute in the unclassified
3.26service, an acting department head subsequently appointed to the position, or an employee
3.27enumerated in section15A.0815 or
15A.083, subdivision 4 ;
3.28 (5) a member of the legislature;
3.29 (6) a full-time unclassified employee of the legislature or a commission or agency of
3.30the legislature who is appointed without a limit on the duration of the employment or a
3.31temporary legislative employee having shares in the supplemental retirement fund as a
3.32result of former employment covered by this chapter, whether or not eligible for coverage
3.33under the Minnesota State Retirement System;
3.34 (7) a person who is employed in a position established under section43A.08,
3.35subdivision 1 , clause (3), or in a position authorized under a statute creating or establishing
4.1a department or agency of the state, which is at the deputy or assistant head of department
4.2or agency or director level;
4.3 (8) the regional administrator, or executive director of the Metropolitan Council,
4.4general counsel, division directors, operations managers, and other positions as designated
4.5by the council, all of which may not exceed 27 positions at the council and the chair;
4.6 (9) the executive director, associate executive director, and not to exceed nine
4.7positions of the Minnesota Office of Higher Education in the unclassified service, as
4.8designated by the Minnesota Office of Higher Education before January 1, 1992, or
4.9subsequently redesignated with the approval of the board of directors of the Minnesota
4.10State Retirement System, unless the person has elected coverage by the individual
4.11retirement account plan under chapter 354B;
4.12 (10) the clerk of the appellate courts appointed under article VI, section 2, of the
4.13Constitution of the state of Minnesota, the state court administrator and judicial district
4.14administrators;
4.15 (11) the chief executive officers of correctional facilities operated by the Department
4.16of Corrections and of hospitals and nursing homes operated by the Department of Human
4.17Services;
4.18 (12) an employee whose principal employment is at the state ceremonial house;
4.19 (13) an employee of the Agricultural Utilization Research Institute;
4.20 (14) an employee of the State Lottery who is covered by the managerial plan
4.21established under section43A.18, subdivision 3 ;
4.22 (15) a judge who has exceeded the service credit limit in section490.121,
4.23subdivision 22 ;
4.24 (16) an employee of Enterprise Minnesota, Inc.;
4.25 (17) a person employed by the Minnesota State Colleges and Universities as faculty
4.26or in an eligible unclassified administrative position as defined in section354B.20 ,
4.27subdivision 6, who was employed by the former state university or the former community
4.28college system before May 1, 1995, and elected unclassified program coverage prior to
4.29May 1, 1995; and
4.30 (18) a person employed by the Minnesota State Colleges and Universities who
4.31was employed in state service before July 1, 1995, who subsequently is employed in an
4.32eligible unclassified administrative position as defined in section354B.20, subdivision
4.336 , and who elects coverage by the unclassified program.
4.34EFFECTIVE DATE.This section is effective July 1, 2013.
4.35 Sec. 3. Minnesota Statutes 2012, section 352D.02, subdivision 3, is amended to read:
5.1 Subd. 3. Transfer to general employees retirement plan. (a) If permitted under
5.2paragraph (b), an employee referred to in subdivision 1, paragraph (c), clauses (2) to (4),
5.3(6) to (14), and (16) to (18), who is credited with shares in the unclassified program and
5.4has credit for allowable service may elect to terminate participation in the unclassified
5.5program and be covered by the general employees retirement plan.
5.6(b) An employee specified in paragraph (a) is permitted to terminate participation
5.7in the unclassified program and be covered by the general employees retirement plan if
5.8the employee:
5.9(1) was employed before July 1, 2010, and has at least ten years of allowable
5.10service; or
5.11(2) was first employed after June 30, 2010, and has no more than seven years of
5.12allowable service.
5.13(c) A legislator referred to in subdivision 1, paragraph (c), clause (5), who is credited
5.14with no more than seven years of allowable service may elect to terminate participation in
5.15the unclassified program and be covered by the general state employees retirement plan.
5.16The election (d) Elections under this subdivision must be in writing on a form
5.17provided by the executive director, and can be made no later than one month following
5.18the termination of covered employment.
5.19(c) (e) If the transfer election is made, the executive director shall redeem the
5.20employee's total shares and credit to the employee's account in the general employees
5.21retirement plan the amount of contributions that would have been credited had the
5.22employee been covered by the general employees retirement plan during the employee's
5.23entire covered employment. The balance of money redeemed and not credited to the
5.24employee's account must be transferred to the general employees retirement plan, except
5.25that the executive director must determine:
5.26(1) the employee contributions paid to the unclassified program; and
5.27(2) the employee contributions that would have been paid to the general employees
5.28retirement plan for the comparable period, if the individual had been covered by that plan.
5.29If clause (1) is greater than clause (2), the difference must be refunded to the
5.30employee as provided in section352.22 . If clause (2) is greater than clause (1), the
5.31difference must be paid by the employee within six months of electing general employees
5.32retirement plan coverage or before the effective date of the annuity, whichever is sooner.
5.33(d) (f) An election under paragraph (b) this subdivision to transfer coverage to the
5.34general employees retirement plan is irrevocable during any period of covered employment.
5.35(e) (g) A person referenced in subdivision 1, paragraph (c), clause (1), (5), or
5.36(15), who is credited with employee shares in the unclassified program is not permitted
6.1to terminate participation in the unclassified program and be covered by the general
6.2employees retirement plan.
6.3EFFECTIVE DATE.This section is effective July 1, 2013.
6.4 Sec. 4. PLAN ELECTION.
6.5(a) Notwithstanding the length of service limitation in section 3 regarding legislative
6.6service, any legislator currently serving on July 1, 2013, covered by the unclassified state
6.7employees retirement program for that service, whose length of legislative service exceeds
6.8seven years, may elect the coverage transfer specified in section 3 before July 1, 2015.
6.9(b) Authority to elect a coverage transfer under this section expires July 1, 2015.
6.10EFFECTIVE DATE.This section is effective July 1, 2013.
1.3to transfer to general state employees retirement plan coverage rather than retain
1.4unclassified state employees retirement program coverage; amending Minnesota
1.5Statutes 2012, sections 352.01, subdivision 2a; 352D.02, subdivisions 1, 3.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 352.01, subdivision 2a, is amended to read:
1.8 Subd. 2a. Included employees. (a) "State employee" includes:
1.9 (1) employees of the Minnesota Historical Society;
1.10 (2) employees of the State Horticultural Society;
1.11 (3) employees of the Minnesota Crop Improvement Association;
1.12 (4) employees of the adjutant general whose salaries are paid from federal funds and
1.13who are not covered by any federal civilian employees retirement system;
1.14 (5) employees of the Minnesota State Colleges and Universities who are employed
1.15under the university or college activities program;
1.16 (6) currently contributing employees covered by the system who are temporarily
1.17employed by the legislature during a legislative session or any currently contributing
1.18employee employed for any special service as defined in subdivision 2b, clause (8);
1.19 (7) employees of the legislature who are appointed without a limit on the duration
1.20of their employment and persons employed or designated by the legislature or by a
1.21legislative committee or commission or other competent authority to conduct a special
1.22inquiry, investigation, examination, or installation;
1.23 (8) trainees who are employed on a full-time established training program
1.24performing the duties of the classified position for which they will be eligible to receive
1.25immediate appointment at the completion of the training period;
2.1 (9) employees of the Minnesota Safety Council;
2.2 (10) any employees who are on authorized leave of absence from the Transit
2.3Operating Division of the former Metropolitan Transit Commission and who are employed
2.4by the labor organization which is the exclusive bargaining agent representing employees
2.5of the Transit Operating Division;
2.6 (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
2.7Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
2.8Control Commission unless excluded under subdivision 2b or are covered by another
2.9public pension fund or plan under section
2.10 (12) judges of the Tax Court;
2.11 (13) personnel who were employed on June 30, 1992, by the University of
2.12Minnesota in the management, operation, or maintenance of its heating plant facilities,
2.13whose employment transfers to an employer assuming operation of the heating plant
2.14facilities, so long as the person is employed at the University of Minnesota heating plant
2.15by that employer or by its successor organization;
2.16 (14) personnel who are employed as seasonal employees in the classified or
2.17unclassified service;
2.18 (15) persons who are employed by the Department of Commerce as a peace officer
2.19in the Insurance Fraud Prevention Division under section
2.20mandatory retirement age specified in section
2.21 (16) employees of the University of Minnesota unless excluded under subdivision
2.222b, clause (3);
2.23 (17) employees of the Middle Management Association whose employment began
2.24after July 1, 2007, and to whom section
2.25 (18) employees of the Minnesota Government Engineers Council to whom section
2.27(19) employees of the Minnesota Sports Facilities Authority
2.28(20) a legislator who elects under section 4 or section 352D.02 to have coverage
2.29under the general state employees retirement plan.
2.30 (b) Employees specified in paragraph (a), clause (13), are included employees under
2.31paragraph (a) if employer and employee contributions are made in a timely manner in the
2.32amounts required by section
2.33salary. Employer contributions are the sole obligation of the employer assuming operation
2.34of the University of Minnesota heating plant facilities or any successor organizations to
2.35that employer.
2.36EFFECTIVE DATE.This section is effective July 1, 2013.
3.1 Sec. 2. Minnesota Statutes 2012, section 352D.02, subdivision 1, is amended to read:
3.2 Subdivision 1. Coverage. (a)
3.3(c), clauses (2), (3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service
3.4of the state or Metropolitan Council and are eligible for coverage under the general state
3.5employees retirement plan under chapter 352, are participants in the unclassified program
3.6under this chapter unless the employee gives notice to the executive director of the
3.7Minnesota State Retirement System within one year following the
3.8of employment in the unclassified service that the employee desires coverage under the
3.9general state employees retirement plan. For the purposes of this chapter, an employee
3.10who does not file notice with the executive director is deemed to have exercised the option
3.11to participate in the unclassified program.
3.12 (b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
3.13program under this chapter unless the person was eligible to elect different coverage under
3.14section
3.15plan or elected general state employees retirement plan coverage under subdivision 3
3.16or section 4. Persons referenced in paragraph (c), clause (15), are participants in the
3.17unclassified program under this chapter for judicial employment in excess of the service
3.18credit limit in section
3.19 (c)
3.20 (1) the governor, the lieutenant governor, the secretary of state, the state auditor,
3.21and the attorney general;
3.22 (2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
3.23of State, State Auditor, Attorney General;
3.24 (3) an employee of the State Board of Investment;
3.25 (4) the head of a department, division, or agency created by statute in the unclassified
3.26service, an acting department head subsequently appointed to the position, or an employee
3.27enumerated in section
3.28 (5) a member of the legislature;
3.29 (6) a full-time unclassified employee of the legislature or a commission or agency of
3.30the legislature who is appointed without a limit on the duration of the employment or a
3.31temporary legislative employee having shares in the supplemental retirement fund as a
3.32result of former employment covered by this chapter, whether or not eligible for coverage
3.33under the Minnesota State Retirement System;
3.34 (7) a person who is employed in a position established under section
3.35subdivision 1
4.1a department or agency of the state, which is at the deputy or assistant head of department
4.2or agency or director level;
4.3 (8) the regional administrator, or executive director of the Metropolitan Council,
4.4general counsel, division directors, operations managers, and other positions as designated
4.5by the council, all of which may not exceed 27 positions at the council and the chair;
4.6 (9) the executive director, associate executive director, and not to exceed nine
4.7positions of the Minnesota Office of Higher Education in the unclassified service, as
4.8designated by the Minnesota Office of Higher Education before January 1, 1992, or
4.9subsequently redesignated with the approval of the board of directors of the Minnesota
4.10State Retirement System, unless the person has elected coverage by the individual
4.11retirement account plan under chapter 354B;
4.12 (10) the clerk of the appellate courts appointed under article VI, section 2, of the
4.13Constitution of the state of Minnesota, the state court administrator and judicial district
4.14administrators;
4.15 (11) the chief executive officers of correctional facilities operated by the Department
4.16of Corrections and of hospitals and nursing homes operated by the Department of Human
4.17Services;
4.18 (12) an employee whose principal employment is at the state ceremonial house;
4.19 (13) an employee of the Agricultural Utilization Research Institute;
4.20 (14) an employee of the State Lottery who is covered by the managerial plan
4.21established under section
4.22 (15) a judge who has exceeded the service credit limit in section
4.23subdivision 22
4.24 (16) an employee of Enterprise Minnesota, Inc.;
4.25 (17) a person employed by the Minnesota State Colleges and Universities as faculty
4.26or in an eligible unclassified administrative position as defined in section
4.27subdivision 6, who was employed by the former state university or the former community
4.28college system before May 1, 1995, and elected unclassified program coverage prior to
4.29May 1, 1995; and
4.30 (18) a person employed by the Minnesota State Colleges and Universities who
4.31was employed in state service before July 1, 1995, who subsequently is employed in an
4.32eligible unclassified administrative position as defined in section
4.336
4.34EFFECTIVE DATE.This section is effective July 1, 2013.
4.35 Sec. 3. Minnesota Statutes 2012, section 352D.02, subdivision 3, is amended to read:
5.1 Subd. 3. Transfer to general employees retirement plan. (a) If permitted under
5.2paragraph (b), an employee referred to in subdivision 1, paragraph (c), clauses (2) to (4),
5.3(6) to (14), and (16) to (18), who is credited with shares in the unclassified program and
5.4has credit for allowable service may elect to terminate participation in the unclassified
5.5program and be covered by the general employees retirement plan.
5.6(b) An employee specified in paragraph (a) is permitted to terminate participation
5.7in the unclassified program and be covered by the general employees retirement plan if
5.8the employee:
5.9(1) was employed before July 1, 2010, and has at least ten years of allowable
5.10service; or
5.11(2) was first employed after June 30, 2010, and has no more than seven years of
5.12allowable service.
5.13(c) A legislator referred to in subdivision 1, paragraph (c), clause (5), who is credited
5.14with no more than seven years of allowable service may elect to terminate participation in
5.15the unclassified program and be covered by the general state employees retirement plan.
5.16
5.17provided by the executive director, and can be made no later than one month following
5.18the termination of covered employment.
5.19
5.20employee's total shares and credit to the employee's account in the general employees
5.21retirement plan the amount of contributions that would have been credited had the
5.22employee been covered by the general employees retirement plan during the employee's
5.23entire covered employment. The balance of money redeemed and not credited to the
5.24employee's account must be transferred to the general employees retirement plan, except
5.25that the executive director must determine:
5.26(1) the employee contributions paid to the unclassified program; and
5.27(2) the employee contributions that would have been paid to the general employees
5.28retirement plan for the comparable period, if the individual had been covered by that plan.
5.29If clause (1) is greater than clause (2), the difference must be refunded to the
5.30employee as provided in section
5.31difference must be paid by the employee within six months of electing general employees
5.32retirement plan coverage or before the effective date of the annuity, whichever is sooner.
5.33
5.34general employees retirement plan is irrevocable during any period of covered employment.
5.35
5.36(15), who is credited with employee shares in the unclassified program is not permitted
6.1to terminate participation in the unclassified program and be covered by the general
6.2employees retirement plan.
6.3EFFECTIVE DATE.This section is effective July 1, 2013.
6.4 Sec. 4. PLAN ELECTION.
6.5(a) Notwithstanding the length of service limitation in section 3 regarding legislative
6.6service, any legislator currently serving on July 1, 2013, covered by the unclassified state
6.7employees retirement program for that service, whose length of legislative service exceeds
6.8seven years, may elect the coverage transfer specified in section 3 before July 1, 2015.
6.9(b) Authority to elect a coverage transfer under this section expires July 1, 2015.
6.10EFFECTIVE DATE.This section is effective July 1, 2013.
