Bill Text: MN HF1668 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Duluth and Duluth Airport Authority; Public Employees Retirement Association optional correction of erroneous employee deductions and employer contributions provided.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-05 - Introduction and first reading, referred to Government Operations and Elections [HF1668 Detail]
Download: Minnesota-2011-HF1668-Introduced.html
1.2relating to retirement; Public Employees Retirement Association; optional
1.3correction of erroneous employee deductions and employer contributions
1.4provision for city of Duluth and Duluth Airport Authority.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY;
1.7CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER
1.8CONTRIBUTIONS, AND ADJUSTING OVERPAID BENEFITS.
1.9 Subdivision 1. Application. Notwithstanding any provisions of Minnesota Statutes,
1.10section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2010, chapters 353 and 356,
1.11to the contrary, this section establishes the procedures by which the executive director of
1.12the Public Employees Retirement Association shall adjust erroneous employee deductions
1.13and employer contributions paid on behalf of active employees and former members
1.14by the city of Duluth and by the Duluth Airport Authority on amounts determined by
1.15the executive director to be invalid salary under Minnesota Statutes, section 353.01,
1.16subdivision 10, reported between January 1, 1997, and October 23, 2008, and for
1.17adjusting benefits that were paid to former members and their beneficiaries based upon
1.18invalid salary amounts.
1.19 Subd. 2. Refunds of employee deductions. (a) The executive director shall refund
1.20to active employees or former members who are not receiving retirement annuities or
1.21benefits all erroneous employee deductions identified by the city of Duluth or by the
1.22Duluth Airport Authority as deductions taken from amounts determined to be invalid
1.23salary. The refunds must include interest at the rate specified in Minnesota Statutes,
2.1section 353.34, subdivision 2, from the date each invalid employee deduction was received
2.2through the date each refund is paid.
2.3(b) The refund payment for active employees must be sent to the applicable members
2.4who are employees of the city of Duluth or who are employees of the Duluth Airport
2.5Authority, whichever is applicable.
2.6(c) Refunds to former members must be mailed by the executive director of the
2.7Public Employees Retirement Association to the former member's last known address.
2.8 Subd. 3. Benefit adjustments. (a) For a former member who is receiving a
2.9retirement annuity or disability benefit, or for a person receiving an optional annuity or
2.10survivor benefit, the executive director must:
2.11(1) adjust the annuity or benefit payment to the correct monthly benefit amount
2.12payable by reducing the average salary under Minnesota Statutes, section 353.01,
2.13subdivision 17a, by the invalid salary amounts;
2.14(2) determine the amount of the overpaid benefits paid from the effective date of the
2.15annuity or benefit payment to July 1, 2009;
2.16(3) calculate the amount of employee deductions taken in error on invalid salary,
2.17including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision
2.182, from the date each invalid employee deduction was received through the first day of the
2.19month in which the refund under paragraph (b), or action to recover net overpayments
2.20under subdivision 4, occurs; and
2.21(4) determine the net amount of overpaid benefits by reducing the amount of the
2.22overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous
2.23employee deductions with interest determined in clause (3).
2.24(b) If a former member's erroneous employee deductions plus interest determined
2.25under this section exceeds the amount of the person's overpaid benefits, the balance must
2.26be refunded to the person to whom the annuity or benefit is being paid.
2.27(c) The executive director shall recover the net amount of all overpaid annuities or
2.28benefits as provided under subdivision 4.
2.29 Subd. 4. Employer credits and obligations. (a) The executive director shall
2.30provide a credit without interest to the city of Duluth and to the Duluth Airport Authority
2.31for the amount of that governmental subdivision's erroneous employer contributions. The
2.32credit must first be used to offset the net amount of the overpaid retirement annuities and
2.33the disability and survivor benefits that remain after applying the amount of erroneous
2.34employee deductions with interest as provided under subdivision 3, paragraph (a),
2.35clause (4). The remaining erroneous employer contributions, if any, must be credited
2.36against future employer contributions required to be paid by the applicable governmental
3.1subdivision. If the overpaid benefits exceed the employer contribution credit, the balance
3.2of the overpaid benefits is the obligation of the city of Duluth or the Duluth Airport
3.3Authority, whichever is applicable.
3.4(b) The Public Employees Retirement Association board of trustees shall determine
3.5the period of time and manner for the collection of overpaid retirement annuities and
3.6benefits, if any, from the city of Duluth and the Duluth Airport Authority.
3.7 Subd. 5. Treatment of invalid salary amounts in process. (a) The governing body
3.8of the city of Duluth or the Duluth Airport Authority, as applicable, may elect to limit the
3.9period of adjustment for amounts determined to be invalid salary to apply to the fiscal
3.10year in which the error was reported to, and the salary determined to be invalid by, the
3.11Public Employees Retirement Association, and the immediate two preceding fiscal years,
3.12by a resolution of the applicable governing body transmitted to the Public Employees
3.13Retirement Association executive director within 30 days following the effective date
3.14of this section.
3.15(b) If the governing body of the applicable governmental subdivision declines the
3.16treatment permitted under paragraph (a) or fails to submit a resolution in a timely manner,
3.17the statute of limitations specified in paragraph (a) does not apply.
3.18EFFECTIVE DATE.(a) This section is effective for the city of Duluth the day after
3.19the Duluth city council and the chief clerical officer of the city of Duluth timely complete
3.20their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for
3.21members who are, and former members who were, employees of the city of Duluth.
3.22(b) This section is effective for the Duluth Airport Authority the day after the Duluth
3.23Airport Authority board of directors and the chief clerical officer of the Duluth Airport
3.24Authority timely complete their compliance with Minnesota Statutes, section 645.021,
3.25subdivisions 2 and 3, for members who are, and former members who were, employees
3.26of the Duluth Airport Authority.
1.3correction of erroneous employee deductions and employer contributions
1.4provision for city of Duluth and Duluth Airport Authority.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY;
1.7CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER
1.8CONTRIBUTIONS, AND ADJUSTING OVERPAID BENEFITS.
1.9 Subdivision 1. Application. Notwithstanding any provisions of Minnesota Statutes,
1.10section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2010, chapters 353 and 356,
1.11to the contrary, this section establishes the procedures by which the executive director of
1.12the Public Employees Retirement Association shall adjust erroneous employee deductions
1.13and employer contributions paid on behalf of active employees and former members
1.14by the city of Duluth and by the Duluth Airport Authority on amounts determined by
1.15the executive director to be invalid salary under Minnesota Statutes, section 353.01,
1.16subdivision 10, reported between January 1, 1997, and October 23, 2008, and for
1.17adjusting benefits that were paid to former members and their beneficiaries based upon
1.18invalid salary amounts.
1.19 Subd. 2. Refunds of employee deductions. (a) The executive director shall refund
1.20to active employees or former members who are not receiving retirement annuities or
1.21benefits all erroneous employee deductions identified by the city of Duluth or by the
1.22Duluth Airport Authority as deductions taken from amounts determined to be invalid
1.23salary. The refunds must include interest at the rate specified in Minnesota Statutes,
2.1section 353.34, subdivision 2, from the date each invalid employee deduction was received
2.2through the date each refund is paid.
2.3(b) The refund payment for active employees must be sent to the applicable members
2.4who are employees of the city of Duluth or who are employees of the Duluth Airport
2.5Authority, whichever is applicable.
2.6(c) Refunds to former members must be mailed by the executive director of the
2.7Public Employees Retirement Association to the former member's last known address.
2.8 Subd. 3. Benefit adjustments. (a) For a former member who is receiving a
2.9retirement annuity or disability benefit, or for a person receiving an optional annuity or
2.10survivor benefit, the executive director must:
2.11(1) adjust the annuity or benefit payment to the correct monthly benefit amount
2.12payable by reducing the average salary under Minnesota Statutes, section 353.01,
2.13subdivision 17a, by the invalid salary amounts;
2.14(2) determine the amount of the overpaid benefits paid from the effective date of the
2.15annuity or benefit payment to July 1, 2009;
2.16(3) calculate the amount of employee deductions taken in error on invalid salary,
2.17including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision
2.182, from the date each invalid employee deduction was received through the first day of the
2.19month in which the refund under paragraph (b), or action to recover net overpayments
2.20under subdivision 4, occurs; and
2.21(4) determine the net amount of overpaid benefits by reducing the amount of the
2.22overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous
2.23employee deductions with interest determined in clause (3).
2.24(b) If a former member's erroneous employee deductions plus interest determined
2.25under this section exceeds the amount of the person's overpaid benefits, the balance must
2.26be refunded to the person to whom the annuity or benefit is being paid.
2.27(c) The executive director shall recover the net amount of all overpaid annuities or
2.28benefits as provided under subdivision 4.
2.29 Subd. 4. Employer credits and obligations. (a) The executive director shall
2.30provide a credit without interest to the city of Duluth and to the Duluth Airport Authority
2.31for the amount of that governmental subdivision's erroneous employer contributions. The
2.32credit must first be used to offset the net amount of the overpaid retirement annuities and
2.33the disability and survivor benefits that remain after applying the amount of erroneous
2.34employee deductions with interest as provided under subdivision 3, paragraph (a),
2.35clause (4). The remaining erroneous employer contributions, if any, must be credited
2.36against future employer contributions required to be paid by the applicable governmental
3.1subdivision. If the overpaid benefits exceed the employer contribution credit, the balance
3.2of the overpaid benefits is the obligation of the city of Duluth or the Duluth Airport
3.3Authority, whichever is applicable.
3.4(b) The Public Employees Retirement Association board of trustees shall determine
3.5the period of time and manner for the collection of overpaid retirement annuities and
3.6benefits, if any, from the city of Duluth and the Duluth Airport Authority.
3.7 Subd. 5. Treatment of invalid salary amounts in process. (a) The governing body
3.8of the city of Duluth or the Duluth Airport Authority, as applicable, may elect to limit the
3.9period of adjustment for amounts determined to be invalid salary to apply to the fiscal
3.10year in which the error was reported to, and the salary determined to be invalid by, the
3.11Public Employees Retirement Association, and the immediate two preceding fiscal years,
3.12by a resolution of the applicable governing body transmitted to the Public Employees
3.13Retirement Association executive director within 30 days following the effective date
3.14of this section.
3.15(b) If the governing body of the applicable governmental subdivision declines the
3.16treatment permitted under paragraph (a) or fails to submit a resolution in a timely manner,
3.17the statute of limitations specified in paragraph (a) does not apply.
3.18EFFECTIVE DATE.(a) This section is effective for the city of Duluth the day after
3.19the Duluth city council and the chief clerical officer of the city of Duluth timely complete
3.20their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for
3.21members who are, and former members who were, employees of the city of Duluth.
3.22(b) This section is effective for the Duluth Airport Authority the day after the Duluth
3.23Airport Authority board of directors and the chief clerical officer of the Duluth Airport
3.24Authority timely complete their compliance with Minnesota Statutes, section 645.021,
3.25subdivisions 2 and 3, for members who are, and former members who were, employees
3.26of the Duluth Airport Authority.
