Bill Text: MN HF1951 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Omnibus pensions and retirement bill.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2014-05-21 - Secretary of State Chapter 296 [HF1951 Detail]
Download: Minnesota-2013-HF1951-Introduced.html
Bill Title: Omnibus pensions and retirement bill.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2014-05-21 - Secretary of State Chapter 296 [HF1951 Detail]
Download: Minnesota-2013-HF1951-Introduced.html
1.2relating to retirement; providing for the consolidation of the Duluth Teachers
1.3Retirement Fund Association retirement plan and fund into the statewide Teachers
1.4Retirement Association; amending Minnesota Statutes 2012, sections 13.632,
1.5subdivision 1; 122A.18, subdivision 7a; 354.05, subdivisions 2, 13; 354.42,
1.6subdivisions 2, 3; 354A.011, subdivisions 11, 15a, 27; 354A.021, subdivision
1.71; 354A.092; 354A.093, subdivision 1; 354A.096; 354A.12, subdivision 2;
1.8354A.31, subdivision 1; 354A.32, subdivision 1; 354A.35, subdivision 1;
1.9354A.37, subdivisions 3, 4; 354A.39; 354A.41; 354B.21, subdivision 3a;
1.10355.01, subdivision 2c; 356.302, subdivision 7; 356.303, subdivision 4; 356.32,
1.11subdivision 2; 356.42, subdivision 3; 356.465, subdivision 3; 356.47, subdivision
1.123; 356.99, subdivision 1; Minnesota Statutes 2013 Supplement, sections 353.01,
1.13subdivision 2b; 354.436; 354.44, subdivision 6; 354A.12, subdivisions 1, 2a,
1.143a; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, subdivision 8;
1.15356.219, subdivision 8; 356.30, subdivision 3; 356.401, subdivision 3; 423A.02,
1.16subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 354;
1.17repealing Minnesota Statutes 2012, sections 354A.021, subdivision 5; 354A.108;
1.18354A.24; 354A.27, subdivision 5; Minnesota Statutes 2013 Supplement, sections
1.19354A.27, subdivisions 6a, 7; 354A.31, subdivision 4a.
1.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.21 Section 1. Minnesota Statutes 2012, section 13.632, subdivision 1, is amended to read:
1.22 Subdivision 1. Beneficiary and survivor data. The following data on beneficiaries
1.23and survivors of the St. Paul Teachers Retirement Fund Associationand the Duluth
1.24Teachers Retirement Fund Association members are private data on individuals: home
1.25address, date of birth, direct deposit number, and tax withholding data.
1.26 Sec. 2. Minnesota Statutes 2012, section 122A.18, subdivision 7a, is amended to read:
1.27 Subd. 7a. Permission to substitute teach. (a) The Board of Teaching may allow a
1.28person who is enrolled in and making satisfactory progress in a board-approved teacher
2.1program and who has successfully completed student teaching to be employed as a
2.2short-call substitute teacher.
2.3(b) The Board of Teaching may issue a lifetime qualified short-call substitute
2.4teaching license to a person who:
2.5(1) was a qualified teacher under section122A.16 while holding a continuing
2.6five-year teaching license issued by the board, and receives a retirement annuity from the
2.7Teachers Retirement Association, Minneapolis Teachers Retirement Fund Association,
2.8 or the St. Paul Teachers Retirement Fund Association, or Duluth Teachers Retirement
2.9Fund Association;
2.10(2) holds an out-of-state teaching license and receives a retirement annuity as a
2.11result of the person's teaching experience; or
2.12(3) held a continuing five-year license issued by the board, taught at least three
2.13school years in an accredited nonpublic school in Minnesota, and receives a retirement
2.14annuity as a result of the person's teaching experience.
2.15A person holding a lifetime qualified short-call substitute teaching license is not required
2.16to complete continuing education clock hours. A person holding this license may reapply
2.17to the board for a continuing five-year license and must again complete continuing
2.18education clock hours one school year after receiving the continuing five-year license.
2.19 Sec. 3. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2b, is
2.20amended to read:
2.21 Subd. 2b. Excluded employees. (a) The following public employees are not eligible
2.22to participate as members of the association with retirement coverage by the general
2.23employees retirement plan, the local government correctional employees retirement plan
2.24under chapter 353E, or the public employees police and fire retirement plan:
2.25 (1) persons whose salary from one governmental subdivision never exceeds $425 in
2.26a month;
2.27(2) public officers who are elected to a governing body, city mayors, or persons who
2.28are appointed to fill a vacancy in an elective office of a governing body, whose term of office
2.29commences on or after July 1, 2002, for the service to be rendered in that elective position;
2.30 (3) election officers or election judges;
2.31 (4) patient and inmate personnel who perform services for a governmental
2.32subdivision;
2.33 (5) except as otherwise specified in subdivision 12a, employees who are hired for
2.34a temporary position as defined under subdivision 12a, and employees who resign from
3.1a nontemporary position and accept a temporary position within 30 days in the same
3.2governmental subdivision;
3.3 (6) employees who are employed by reason of work emergency caused by fire,
3.4flood, storm, or similar disaster;
3.5 (7) employees who by virtue of their employment in one governmental subdivision
3.6are required by law to be a member of and to contribute to any of the plans or funds
3.7administered by the Minnesota State Retirement System, the Teachers Retirement
3.8Association,the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers
3.9Retirement Fund Association. This clause must not be construed to prevent a person from
3.10being a member of and contributing to the Public Employees Retirement Association and
3.11also belonging to and contributing to another public pension plan or fund for other service
3.12occurring during the same period of time. A person who meets the definition of "public
3.13employee" in subdivision 2 by virtue of other service occurring during the same period of
3.14time becomes a member of the association unless contributions are made to another public
3.15retirement fund on the salary based on the other service or to the Teachers Retirement
3.16Association by a teacher as defined in section354.05, subdivision 2 ;
3.17 (8) persons who are members of a religious order and are excluded from coverage
3.18under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
3.19performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
3.20as amended through January 1, 1987, if no irrevocable election of coverage has been made
3.21under section 3121(r) of the Internal Revenue Code of 1954, as amended;
3.22 (9) employees of a governmental subdivision who have not reached the age of
3.2323 and are enrolled on a full-time basis to attend or are attending classes on a full-time
3.24basis at an accredited school, college, or university in an undergraduate, graduate, or
3.25professional-technical program, or a public or charter high school;
3.26 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
3.27interns who are serving in a degree or residency program in public hospitals or clinics;
3.28 (11) students who are serving for up to five years in an internship or residency program
3.29sponsored by a governmental subdivision, including an accredited educational institution;
3.30 (12) persons who hold a part-time adult supplementary technical college license who
3.31render part-time teaching service in a technical college;
3.32 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
3.33foreign citizens who are employed by a governmental subdivision under a work permit, or
3.34an H-1b visa initially issued or extended for a combined period less than three years of
3.35employment. Upon extension of the employment beyond the three-year period, the foreign
4.1citizens must be reported for membership beginning the first of the month thereafter
4.2provided the monthly earnings threshold as provided under subdivision 2a is met;
4.3 (14) public hospital employees who elected not to participate as members of the
4.4association before 1972 and who did not elect to participate from July 1, 1988, to October
4.51, 1988;
4.6 (15) except as provided in section353.86 , volunteer ambulance service personnel, as
4.7defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
4.8may still qualify as public employees under subdivision 2 and may be members of the
4.9Public Employees Retirement Association and participants in the general employees
4.10retirement plan or the public employees police and fire plan, whichever applies, on the
4.11basis of compensation received from public employment service other than service as
4.12volunteer ambulance service personnel;
4.13 (16) except as provided in section353.87 , volunteer firefighters, as defined in
4.14subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
4.15but a person who is a volunteer firefighter may still qualify as a public employee under
4.16subdivision 2 and may be a member of the Public Employees Retirement Association and
4.17a participant in the general employees retirement plan or the public employees police
4.18and fire plan, whichever applies, on the basis of compensation received from public
4.19employment activities other than those as a volunteer firefighter;
4.20 (17) pipefitters and associated trades personnel employed by Independent School
4.21District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
4.22pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
4.23if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
4.24241, article 2, section 12;
4.25 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
4.26are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
4.27who have retirement coverage under a collective bargaining agreement by the Electrical
4.28Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
4.29or the pension plan applicable to Carpenters Local 87 who were either first employed after
4.30May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
4.31Laws 2000, chapter 461, article 7, section 5;
4.32 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
4.33painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
4.34or Independent School District No. 625, St. Paul, with coverage under a collective
4.35bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
4.36the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
5.1pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
5.2Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
5.3first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
5.4Session chapter 10, article 10, section 6;
5.5 (20) plumbers who are employed by the Metropolitan Airports Commission, with
5.6coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
5.7who either were first employed after May 1, 2001, or if first employed before May 2,
5.82001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
5.910, section 6;
5.10 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
5.11subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
5.12days or less in each year of employment with the governmental subdivision;
5.13 (22) persons who are provided supported employment or work-study positions by a
5.14governmental subdivision and who participate in an employment or industries program
5.15maintained for the benefit of these persons where the governmental subdivision limits the
5.16position's duration to up to five years, including persons participating in a federal or state
5.17subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
5.18relief program where the training or work experience is not provided as a part of, or
5.19for, future permanent public employment;
5.20 (23) independent contractors and the employees of independent contractors;
5.21 (24) reemployed annuitants of the association during the course of that
5.22reemployment; and
5.23(25) persons appointed to serve on a board or commission of a governmental
5.24subdivision or an instrumentality thereof.
5.25(b) Any person performing the duties of a public officer in a position defined in
5.26subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
5.27employee of an independent contractor.
5.28 Sec. 4. Minnesota Statutes 2012, section 354.05, subdivision 2, is amended to read:
5.29 Subd. 2. Teacher. (a) "Teacher" means:
5.30(1) a person who renders service as a teacher, supervisor, principal, superintendent,
5.31librarian, nurse, counselor, social worker, therapist, or psychologist in a public school of
5.32the state located outside of the corporate limits ofthe city of Duluth or the city of St. Paul,
5.33or in any charter school, irrespective of the location of the school, or in any charitable,
5.34penal, or correctional institutions of a governmental subdivision, or who is engaged in
5.35educational administration in connection with the state public school system, but excluding
6.1the University of Minnesota, whether the position be a public office or an employment, and
6.2not including the members or officers of any general governing or managing board or body;
6.3(2) an employee of the Teachers Retirement Association;
6.4(3) a person who renders teaching service on a part-time basis and who also renders
6.5other services for a single employing unit. A person whose teaching service comprises at
6.6least 50 percent of the combined employment salary is a member of the association for all
6.7services with the single employing unit. If the person's teaching service comprises less
6.8than 50 percent of the combined employment salary, the executive director must determine
6.9whether all or none of the combined service is covered by the association; or
6.10(4) a person who is not covered by the plans established under chapter 352D, 354A,
6.11or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges
6.12and Universities system in an unclassified position as:
6.13(i) a president, vice-president, or dean;
6.14(ii) a manager or a professional in an academic or an academic support program
6.15other than specified in item (i);
6.16(iii) an administrative or a service support faculty position; or
6.17(iv) a teacher or a research assistant.
6.18(b) "Teacher" does not mean:
6.19(1) a person who works for a school or institution as an independent contractor as
6.20defined by the Internal Revenue Service;
6.21(2) a person who renders part-time teaching service or who is a customized trainer
6.22as defined by the Minnesota State Colleges and Universities system if (i) the service is
6.23incidental to the regular nonteaching occupation of the person; and (ii) the employer
6.24stipulates annually in advance that the part-time teaching service or customized training
6.25service will not exceed 300 hours in a fiscal year and retains the stipulation in its records;
6.26and (iii) the part-time teaching service or customized training service actually does not
6.27exceed 300 hours in a fiscal year; or
6.28(3) a person exempt from licensure under section122A.30 .
6.29 Sec. 5. Minnesota Statutes 2012, section 354.05, subdivision 13, is amended to read:
6.30 Subd. 13. Allowable service. "Allowable service" means:
6.31 (1) Any service rendered by a teacher for which on or before July 1, 1957, the
6.32teacher's account in the retirement fund was credited by reason of employee contributions
6.33in the form of salary deductions, payments in lieu of salary deductions, or in any other
6.34manner authorized by Minnesota Statutes 1953, sections 135.01 to 135.13, as amended by
6.35Laws 1955, chapters 361, 549, 550, 611, or;
7.1 (2) Any service rendered by a teacher for which on or before July 1, 1961, the
7.2teacher elected to obtain credit for service by making payments to the fundpursuant to
7.3 under Minnesota Statutes 1980, section 354.09 and section354.51 , or;
7.4 (3) Any service rendered by a teacher after July 1, 1957, for any calendar month
7.5when the member receives salary from which deductions are made, deposited and credited
7.6in the fund, or;
7.7 (4) Any service rendered by a person after July 1, 1957, for any calendar month where
7.8payments in lieu of salary deductions are made, deposited and credited into the fund as
7.9provided in Minnesota Statutes 1980, section 354.09, subdivision 4, and section354.53 , or;
7.10 (5) Any service rendered by a teacher for which the teacher elected to obtain credit
7.11for service by making payments to the fundpursuant to under Minnesota Statutes 1980,
7.12section 354.09, subdivisions 1 and 4, sections 354.50, 354.51, Minnesota Statutes 1957,
7.13section 135.41, subdivision 4, Minnesota Statutes 1971, section 354.09, subdivision 2, or
7.14Minnesota Statutes, 1973 Supplement, section 354.09, subdivision 3, or;
7.15 (6) Both service during years of actual membership in the course of which
7.16contributions were currently made and service in years during which the teacher was not a
7.17member but for which the teacher later elected to obtain credit by making payments to the
7.18fund as permitted by any law then in effect, or;
7.19 (7) Any service rendered where contributions were made and no credit was
7.20established because of the limitations contained in Minnesota Statutes 1957, section
7.21135.09, subdivision 2, as determined by the ratio between the amounts of money credited
7.22to the teacher's account in a fiscal year and the maximum retirement contribution allowable
7.23for that year, or;
7.24 (8) MS 2002 [Expired]
7.25 (9) A period of time during which a teacher was on strike without pay, not to exceed a
7.26period of one year, if payment in lieu of salary deductions is made under section354.72 , or;
7.27 (10) A period of service before July 1, 2006, that was properly credited as allowable
7.28service by the Minneapolis Teachers Retirement Fund Association, and that was rendered
7.29by a teacher as an employee of Special School District No. 1, Minneapolis, or by an
7.30employee of the Minneapolis Teachers Retirement Fund Association who was a member
7.31of the Minneapolis Teachers Retirement Fund Association by virtue of that employment,
7.32who has not begun receiving an annuity or other retirement benefit from the former
7.33Minneapolis Teachers Retirement Fund Association calculated in whole or in part on that
7.34service before July 1, 2006, and who has not taken a refund of member contributions
7.35related to that service unless the refund is repaid under section354.50 , subdivision 4.
8.1Service as an employee of Special School District No. 1, Minneapolis, on or after July 1,
8.22006, is "allowable service" only as provided by this chapter.; or
8.3(11) A period of service before July 1, 2015, that was properly credited as allowable
8.4service by the Duluth Teachers Retirement Fund Association, and that was rendered
8.5by a teacher as an employee of Independent School District No. 709, Duluth, or by an
8.6employee of the Duluth Teachers Retirement Fund Association who was a member of the
8.7Duluth Teachers Retirement Fund Association by virtue of that employment, who has not
8.8begun receiving an annuity or other retirement benefit from the former Duluth Teachers
8.9Retirement Fund Association calculated in whole or in part on that service before July
8.101, 2015, and who has not taken a refund of member contributions related to that service
8.11unless the refund is repaid under section354.50 , subdivision 4. Service as an employee
8.12of Independent School District No. 709, Duluth, on or after July 1, 2015, is "allowable
8.13service" only as provided by this chapter.
8.14 Sec. 6. Minnesota Statutes 2012, section 354.42, subdivision 2, is amended to read:
8.15 Subd. 2. Employee contribution. (a) For a basic member, the employee
8.16contribution to the fund is the following percentage of the member's salary:
8.23(b) For a coordinated member, the employee contribution is the following percentage
8.24of the member's salary:
8.30(c) (b) When an employee contribution rate changes for a fiscal year, the new
8.31contribution rate is effective for the entire salary paid for each employer unit with the
8.32first payroll cycle reported.
8.33(d) (c) After June 30, 2015, if a contribution rate revision is required under
8.34subdivisions 4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must
8.35be adjusted accordingly.
9.1(e) (d) This contribution must be made by deduction from salary. Where any portion
9.2of a member's salary is paid from other than public funds, the member's employee
9.3contribution must be based on the entire salary received.
9.4 Sec. 7. Minnesota Statutes 2012, section 354.42, subdivision 3, is amended to read:
9.5 Subd. 3. Employer. (a) The regular employer contribution to the fund by Special
9.6School District No. 1, Minneapolis, is an amount equal to the applicable following
9.7percentage of salary of each coordinated member and the applicablefollowing percentage
9.8of salary of each basic member: specified in paragraph (c).
9.15The additional employer contribution to the fund by Special School District No. 1,
9.16Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
9.17coordinated member or who is a basic member.
9.18(b) The regular employer contribution to the fund by Independent School District
9.19No. 709, Duluth, is an amount equal to the applicable percentage of salary of each old law
9.20or new law coordinated member specified for the coordinated program in paragraph (c).
9.21(b) (c) The employer contribution to the fund for every other employer is an amount
9.22equal to the applicable following percentage of the salary of each coordinated member and
9.23the applicable following percentage of the salary of each basic member:
9.30(c) (d) When an employer contribution rate changes for a fiscal year, the new
9.31contribution rate is effective for the entire salary paid for each employer unit with the
9.32first payroll cycle reported.
9.33(d) (e) After June 30, 2015, if a contribution rate revision is made under subdivisions
9.344a, 4b, and 4c, the employer contributions under paragraphs (a)and, (b), and (c) must
9.35be adjusted accordingly.
10.1 Sec. 8. Minnesota Statutes 2013 Supplement, section 354.436, is amended to read:
10.2354.436 DIRECT STATE AID ON BEHALF OF THE FORMER
10.3MINNEAPOLIS FIRST CLASS CITY TEACHERS RETIREMENT FUND
10.4ASSOCIATION ASSOCIATIONS.
10.5 Subdivision 1. Aid authorization. The state shall pay $12,954,000 to the Teachers
10.6Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund
10.7Association and shall pay $15,047,000 on behalf of the Duluth Teachers Retirement
10.8Fund Association.
10.9 Subd. 2. Aid appropriation. The commissioner of management and budget shall
10.10pay the aid amounts under subdivision 1 annually on October 1. The amount required
10.11is appropriated annually from the general fund to the commissioner of management and
10.12budget.
10.13 Subd. 3. Aid expiration. The aid amounts specified in this sectionterminates
10.14 terminate and this section expires on the October 1 next following the date when: (1) the
10.15current assets of the Teachers Retirement Association fund equal or exceed the actuarial
10.16accrued liabilities of the fund as determined in the most recent actuarial valuation report for
10.17the Teachers Retirement Association fund by the actuary retained under section356.214 , or
10.18on the established date for full funding under section
356.215, subdivision 11, whichever
10.19occurs earlier; and (2) the member and employer contribution rates are first determined to
10.20be eligible for a reduction under section 354.42, subdivisions 4a, 4b, 4c, and 4d.
10.21 Sec. 9. Minnesota Statutes 2013 Supplement, section 354.44, subdivision 6, is
10.22amended to read:
10.23 Subd. 6. Computation of formula program retirement annuity. (a) The formula
10.24retirement annuity must be computed in accordance with the applicable provisions of the
10.25formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
10.26section354.05, subdivision 13a , for the period of the member's formula service credit.
10.27 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
10.28became a member of the association or a member of a pension fund listed in section
10.29356.30, subdivision 3
, before July 1, 1989, unless paragraph (d), in conjunction with
10.30paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
10.31average salary as defined in section354.05, subdivision 13a , multiplied by the following
10.32percentages per year of formula service credit shall determine the amount of the annuity to
10.33which the member qualifying therefor is entitled for service rendered before July 1, 2006:
11.6 For service rendered on or after July 1, 2006, by a member other than a member
11.7who was a member of the former Duluth Teachers Retirement Fund Association between
11.8January 1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a
11.9member who was a member of the former Duluth Teachers Retirement Fund Association
11.10between January 1, 2013, and June 30, 2015, the average salary as defined in section
11.11354.05
, subdivision 13a, multiplied by the following percentages per year of service credit,
11.12determines the amount the annuity to which the member qualifying therefor is entitled:
11.18 (c)(i) This paragraph applies only to a person who first became a member of the
11.19association or a member of a pension fund listed in section356.30, subdivision 3 , before
11.20July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
11.21conjunction with this paragraph than when calculated under paragraph (d), in conjunction
11.22with paragraph (e).
11.23 (ii) Where any member retires prior to normal retirement age under a formula
11.24annuity, the member shall be paid a retirement annuity in an amount equal to the normal
11.25annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
11.26that the member is under normal retirement age at the time of retirement except that for
11.27any member who has 30 or more years of allowable service credit, the reduction shall be
11.28applied only for each month that the member is under age 62.
11.29 (iii) Any member whose attained age plus credited allowable service totals 90 years
11.30is entitled, upon application, to a retirement annuity in an amount equal to the normal
11.31annuity provided in paragraph (b), without any reduction by reason of early retirement.
11.32 (d) This paragraph applies to a member who has become at least 55 years old and
11.33first became a member of the association after June 30, 1989, and to any other member
11.34who has become at least 55 years old and whose annuity amount when calculated under
11.35this paragraph and in conjunction with paragraph (e), is higher than it is when calculated
11.36under paragraph (b), in conjunction with paragraph (c). For a basic member, the average
11.37salary, as defined in section354.05, subdivision 13a , multiplied by 2.7 percent for each
11.38year of service for a basic member determines the amount of the retirement annuity to
12.1which the basic member is entitled. The annuity of a basic member who was a member of
12.2the former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must
12.3be determined according to the annuity formula under the articles of incorporation of the
12.4former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a
12.5coordinated member, the average salary, as defined in section354.05 , subdivision 13a,
12.6multiplied by 1.7 percent for each year of service rendered before July 1, 2006, and by 1.9
12.7percent for each year of service rendered on or after July 1, 2006, for a member other than
12.8a member who was a member of the former Duluth Teachers Retirement Fund Association
12.9between January 1, 2006, and June 30, 2015, and by 1.9 percent for each year of service
12.10rendered on or after July 1, 2013, for a member of the former Duluth Teachers Retirement
12.11Fund Association between January 1, 2013, and June 30, 2015, determines the amount of
12.12the retirement annuity to which the coordinated member is entitled.
12.13 (e) This paragraph applies to a person who has become at least 55 years old and first
12.14becomes a member of the association after June 30, 1989, and to any other member who
12.15has become at least 55 years old and whose annuity is higher when calculated under
12.16paragraph (d) in conjunction with this paragraph than when calculated under paragraph
12.17(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
12.18before the normal retirement age shall be paid the normal annuity provided in paragraph
12.19(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that
12.20would be payable to the employee if the employee deferred receipt of the annuity and the
12.21annuity amount were augmented at an annual rate of three percent compounded annually
12.22from the day the annuity begins to accrue until the normal retirement age if the employee
12.23became an employee before July 1, 2006, and at 2.5 percent compounded annually if the
12.24employee becomes an employee after June 30, 2006. Except in regards to section354.46 ,
12.25this paragraph remains in effect until June 30, 2015.
12.26(f) After June 30, 2020, this paragraph applies to a person who has become at least
12.2755 years old and first becomes a member of the association after June 30, 1989, and to any
12.28other member who has become at least 55 years old and whose annuity is higher when
12.29calculated under paragraph (d) in conjunction with this paragraph than when calculated
12.30under paragraph (b) in conjunction with paragraph (c). An employee who retires under
12.31the formula annuity before the normal retirement age is entitled to receive the normal
12.32annuity provided in paragraph (d). For a person who is at least age 62 or older and has at
12.33least 30 years of service, the annuity must be reduced by an early reduction factor of six
12.34percent per year of the annuity that would be payable to the employee if the employee
12.35deferred receipt of the annuity and the annuity amount were augmented at an annual rate
12.36of three percent compounded annually from the day the annuity begins to accrue until the
13.1normal retirement age if the employee became an employee before July 1, 2006, and at 2.5
13.2percent compounded annually if the employee became an employee after June 30, 2006.
13.3For a person who is not at least age 62 or older and does not have at least 30 years of
13.4service, the annuity would be reduced by an early reduction factor of four percent per year
13.5for ages 55 through 59 and seven percent per year of the annuity that would be payable
13.6to the employee if the employee deferred receipt of the annuity and the annuity amount
13.7were augmented at an annual rate of three percent compounded annually from the day
13.8the annuity begins to accrue until the normal retirement age if the employee became an
13.9employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
13.10became an employee after June 30, 2006.
13.11(g) After June 30, 2015, and before July 1, 2020, for a person who would have
13.12a reduced retirement annuity under either paragraph (e) or (f) if they were applicable,
13.13the employee is entitled to receive a reduced annuity which must be calculated using
13.14a blended reduction factor augmented monthly by 1/60 of the difference between the
13.15reduction required under paragraph (e) and the reduction required under paragraph (f).
13.16 (h) No retirement annuity is payable to a former employee with a salary that exceeds
13.1795 percent of the governor's salary unless and until the salary figures used in computing
13.18the highest five successive years average salary under paragraph (a) have been audited by
13.19the Teachers Retirement Association and determined by the executive director to comply
13.20with the requirements and limitations of section354.05 , subdivisions 35 and 35a.
13.21 Sec. 10. [354.73] RETIREMENT COVERAGE RELATED TO THE FORMER
13.22DULUTH TEACHERS RETIREMENT FUND ASSOCIATION.
13.23 Subdivision 1. Application. This section applies to the retirement coverage of
13.24members of the former Duluth Teachers Retirement Fund Association transferred to the
13.25Teachers Retirement Association by section 45.
13.26 Subd. 2. Teachers Retirement Association as successor in interest. The Teachers
13.27Retirement Association is the successor in interest to all claims which the former Duluth
13.28Teachers Retirement Fund Association may have or may have been able to assert against
13.29any person on June 30, 2015, and is the successor in interest to all claims which could
13.30have been asserted against the former Duluth Teachers Retirement Fund Association,
13.31subject to the following:
13.32(1) the Teachers Retirement Association is not liable for any claim against the
13.33Duluth Teachers Retirement Fund Association, its former board or board members, which
13.34is founded upon a claim of breach of fiduciary duty, where the act or acts constituting the
13.35claimed breach were not done in good faith;
14.1(2) the Teachers Retirement Association may assert any applicable defense to
14.2any claim in any judicial or administrative proceeding that the former Duluth Teachers
14.3Retirement Fund Association or its board would otherwise have been entitled to assert;
14.4(3) the Teachers Retirement Association may assert any applicable defense that it
14.5may assert in its capacity as a statewide agency; and
14.6(4) the Teachers Retirement Association shall indemnify any former fiduciary of the
14.7Duluth Teachers Retirement Fund Association consistent with section356A.11 .
14.8 Subd. 3. Benefit calculation. (a) For every deferred, inactive, disabled, and
14.9retired member of the Duluth Teachers Retirement Fund Association transferred under
14.10subdivision 1, and the survivors of these members, annuities or benefits earned before July
14.111, 2015, other than future postretirement adjustments, must be calculated and paid by the
14.12Teachers Retirement Association under the laws, articles of incorporation, and bylaws of
14.13the former Duluth Teachers Retirement Fund Association that were in effect relative to
14.14the person on the date of the person's termination of active service covered by the former
14.15Duluth Teachers Retirement Fund Association.
14.16(b) Former Duluth Teachers Retirement Fund Association members who retired
14.17before July 1, 2015, must receive postretirement adjustments after January 1, 2015, only
14.18as provided in section356.415 . All other benefit recipients of the former Duluth Teachers
14.19Retirement Fund Association must receive postretirement adjustments after December 31,
14.202015, only as provided in section356.415 .
14.21(c) This consolidation does not impair or diminish benefits for an active, deferred,
14.22or retired member or a survivor of an active, deferred, or retired member under the
14.23former Duluth Teachers Retirement Fund Association in existence at the time of the
14.24consolidation, except that any future postretirement adjustments must be paid after July 1,
14.252015, in accordance with paragraph (b), and all benefits based on service on or after July
14.261, 2015, must be determined only by laws governing the Teachers Retirement Association.
14.27 Sec. 11. Minnesota Statutes 2012, section 354A.011, subdivision 11, is amended to read:
14.28 Subd. 11. Coordinated member. "Coordinated member" means any member of the
14.29teachers retirement fund association who is covered by any agreement or modification
14.30made between the state and the Secretary of Health, Education and Welfare making the
14.31provisions of the federal Old Age, Survivors and Disability Insurance Act applicable
14.32to certain teachersexcept in the case of a member of the Duluth Teachers Retirement
14.33Fund Association, in which it means additionally that the member either first became a
14.34member prior to July 1, 1981, and elected to be covered by the new law coordinated
15.1program of the Duluth Teachers Retirement Fund Association or first became a member
15.2on or subsequent to July 1, 1981.
15.3 Sec. 12. Minnesota Statutes 2012, section 354A.011, subdivision 15a, is amended to
15.4read:
15.5 Subd. 15a. Normal retirement age. "Normal retirement age" means age 65 for a
15.6person who first became a member of the coordinated program of the St. Paul Teachers
15.7Retirement Fund Associationor the new law coordinated program of the Duluth Teachers
15.8Retirement Fund Association or a member of a pension fund listed in section
356.30,
15.9subdivision 3 , before July 1, 1989. For a person who first became a member of the
15.10coordinated program of the St. Paul Teachers Retirement Fund Associationor the new law
15.11coordinated program of the Duluth Teachers Retirement Fund Association after June 30,
15.121989, normal retirement age means the higher of age 65 or retirement age, as defined in
15.13United States Code, title 42, section 416(l), as amended, but not to exceed age 66. For a
15.14person who is a member of the basic program of the St. Paul Teachers Retirement Fund
15.15Associationor the old law coordinated program of the Duluth Teachers Retirement Fund
15.16Association, normal retirement age means the age at which a teacher becomes eligible for
15.17a normal retirement annuity computed upon meeting the age and service requirements
15.18specified in the applicable provisions of the articles of incorporation or bylaws of the
15.19respective teachers retirement fund association.
15.20 Sec. 13. Minnesota Statutes 2012, section 354A.011, subdivision 27, is amended to read:
15.21 Subd. 27. Teacher. (a) "Teacher" means any person who renders service for a public
15.22school district, other than a charter school, located in the corporate limits ofDuluth or
15.23 St. Paul, as any of the following:
15.24(1) a full-time employee in a position for which a valid license from the state
15.25Department of Education is required;
15.26(2) an employee of the teachers retirement fund association located in the city ofthe
15.27first class St. Paul;
15.28(3) a part-time employee in a position for which a valid license from the state
15.29Department of Education is required; or
15.30(4) a part-time employee in a position for which a valid license from the state
15.31Department of Education is required who also renders other nonteaching services for the
15.32school district, unless the board of trustees of the teachers retirement fund association
15.33determines that the combined employment is on the whole so substantially dissimilar to
15.34teaching service that the service may not be covered by the association.
16.1(b) The term does not mean any person who renders service in the school district
16.2as any of the following:
16.3(1) an independent contractor or the employee of an independent contractor;
16.4(2) an employee who is a full-time teacher covered by the Teachers Retirement
16.5Associationor by another teachers retirement fund association established pursuant to
16.6this chapter or under chapter 354;
16.7(3) an employee who is exempt from licensure pursuant to section122A.30 ;
16.8(4) an employee who is a teacher in a technical college located in a city of the first
16.9class unless the person elects coverage by theapplicable first class city teacher retirement
16.10fund association under section354B.21, subdivision 2 ;
16.11(5) a teacher employed by a charter school, irrespective of the location of the
16.12school; or
16.13(6) an employee who is a part-time teacher in a technical college ina the city of the
16.14first class St. Paul and who has elected coverage by the applicable first class city teacher
16.15retirement fund association under section354B.21, subdivision 2 , but (i) the teaching
16.16service is incidental to the regular nonteaching occupation of the person; (ii) the applicable
16.17technical college stipulates annually in advance that the part-time teaching service will not
16.18exceed 300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed
16.19300 hours in the fiscal year to which the certification applies.
16.20 Sec. 14. Minnesota Statutes 2012, section 354A.021, subdivision 1, is amended to read:
16.21 Subdivision 1. Establishment. There is established a teachers retirement fund
16.22association ineach of the cities city of Duluth and St. Paul. The associations shall be
16.23 association is knownrespectively as the "Duluth Teachers Retirement Fund Association"
16.24and the "St. Paul Teachers Retirement Fund Association." Each The association shall be
16.25 is a continuation of the teachers retirement fund association with the same corporate
16.26name establishedpursuant to under the authorization contained in Laws 1909, chapter
16.27343, section 1.
16.28 Sec. 15. Minnesota Statutes 2012, section 354A.092, is amended to read:
16.29354A.092 SABBATICAL LEAVE.
16.30Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
16.31Associationor any teacher in the new law coordinated program of the Duluth Teachers
16.32Retirement Fund Association who is granted a sabbatical leave shall be is entitled to
16.33receive allowable service credit in theapplicable association for periods of sabbatical
16.34leave. To obtain the service credit, the teacher on sabbatical leave shall make an employee
17.1contribution to theapplicable association. No teacher shall be is entitled to receive more
17.2than three years of allowable service creditpursuant to under this section for a period or
17.3periods of sabbatical leave during any ten consecutivefiscal or calendar years, whichever is
17.4the applicable plan year for the teachers retirement fund association. If the teacher granted a
17.5sabbatical leave makes the employee contribution for a period of sabbatical leavepursuant
17.6to under this section, the employing unit shall make an employer contribution on behalf of
17.7the teacher to theapplicable association for that period of sabbatical leave in the manner
17.8described in section354A.12, subdivision 2a . The employee and employer contributions
17.9shall must be in an amount equal to the employee and employer contribution rates in effect
17.10for other active members of the association covered by the same program applied to a salary
17.11figure equal to the teacher's actual covered salary for the plan year immediately preceding
17.12the sabbatical leave period. Payment of the employee contribution authorizedpursuant
17.13to under this section shall must be made by the teacher on or before June 30 of year
17.14next following the year in which the sabbatical leave terminated andshall must be made
17.15without interest. For sabbatical leaves taken after June 30, 1986, the required employer
17.16contributionsshall must be paid by the employing unit within 30 days after notification by
17.17the association of the amount due. If the employee contributions for the sabbatical leave
17.18period are less than an amount equal to the applicable contribution rate applied to a salary
17.19figure equal to the teacher's actual covered salary for the plan year immediately preceding
17.20the sabbatical leave period, service creditshall must be prorated. The prorated service
17.21creditshall must be determined by the ratio between the amount of the actual payment
17.22which was made and the full contribution amount payablepursuant to under this section.
17.23 Sec. 16. Minnesota Statutes 2012, section 354A.093, subdivision 1, is amended to read:
17.24 Subdivision 1. Eligibility. Any teacher in the coordinated program of the St. Paul
17.25Teachers Retirement Fund Associationor any teacher in the new law coordinated program
17.26of the Duluth Teachers Retirement Fund Association who is absent from employment by
17.27reason of service in the uniformed services as defined in United States Code, title 38,
17.28section 4303(13) and who returns to the employer providing active teaching service upon
17.29discharge from uniformed service within the time frames required under United States
17.30Code, title 38, section 4312(e), may receive allowable service credit in theapplicable
17.31 association for all or a portion of the period of uniformed service, provided that the teacher
17.32did not separate from uniformed service with a dishonorable or bad conduct discharge
17.33or under other than honorable conditions.
18.1 Sec. 17. Minnesota Statutes 2012, section 354A.096, is amended to read:
18.2354A.096 MEDICAL LEAVE.
18.3Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
18.4Associationor the new law coordinated program of the Duluth Teachers Retirement Fund
18.5Association who is on an authorized medical leave of absence and subsequently returns to
18.6teaching service is entitled to receive allowable service credit, not to exceed one year, for
18.7the period of leave, upon making the prescribed payment to the fund. This payment must
18.8include the required employee and employer contributions at the rates specified in section
18.9354A.12
, subdivisions 1 and 2a, as applied to the member's average full-time monthly
18.10salary rate on the date the leave of absence commenced plus annual interest at the rate of
18.118.5 percent per year from the end of the fiscal year during which the leave terminates to the
18.12end of the month during which payment is made. The member must pay the total amount
18.13required unless the employing unit, at its option, pays the employer contributions. The total
18.14amount required must be paid by the end of the fiscal year following the fiscal year in which
18.15the leave of absence terminated or before the member retires, whichever is earlier. Payment
18.16must be accompanied by a copy of the resolution or action of the employing authority
18.17granting the leave and the employing authority, upon granting the leave, must certify the
18.18leave to the association in a manner specified by the executive director. A member may not
18.19receive more than one year of allowable service credit during any fiscal year by making
18.20payment under this section. A member may not receive disability benefits under section
18.21354A.36
and receive allowable service credit under this section for the same period of time.
18.22 Sec. 18. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 1, is
18.23amended to read:
18.24 Subdivision 1. Employee contributions. (a) The contribution required to be paid
18.25by each member ofa the St. Paul Teachers Retirement Fund Association is the percentage
18.26of total salary specified below for the applicable association and program:
19.9(b) Contributions shall must be made by deduction from salary and must be remitted
19.10directly to therespective St. Paul Teachers Retirement Fund Association at least once
19.11each month.
19.12(c) When an employee contribution rate changes for a fiscal year, the new
19.13contribution rate is effective for the entire salary paid by the employer with the first
19.14payroll cycle reported.
19.15 Sec. 19. Minnesota Statutes 2012, section 354A.12, subdivision 2, is amended to read:
19.16 Subd. 2. Retirement contribution levy disallowed. Except as provided in
19.17section423A.02, subdivision 3 , with respect to Independent School District No. 625,
19.18notwithstanding any law to the contrary, levies for the St. Paul Teachers Retirement Fund
19.19associations in the cities of Duluth and St. Paul Association, including levies for any
19.20employer Social Security taxes for teachers covered by theDuluth Teachers Retirement
19.21Fund Association or the St. Paul Teachers Retirement Fund Association, are disallowed.
19.22 Sec. 20. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 2a,
19.23is amended to read:
19.24 Subd. 2a. Employer regular and additional contributions. (a) The employing
19.25units shall make the following employer contributions to the teachers retirement fund
19.26associations association:
19.27(1) for any coordinated member ofone of the following St. Paul Teachers
19.28Retirement Fundassociations in a city of the first class Association, the employing unit
19.29shall make a regular employer contribution to therespective retirement fund association in
19.30an amount equal to the designated percentage of the salary of the coordinated member
19.31as provided below:
20.8(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
20.9employing unit shall make a regular employer contribution to the respective retirement
20.10fund in an amount according to the schedule below:
20.17(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
20.18employing unit shall make an additional employer contribution to the respective fund in
20.19an amount equal to 3.64 percent of the salary of the basic member;
20.20(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
20.21the employing unit shall make an additional employer contribution to the respective fund
20.22in an amount equal tothe applicable percentage 3.84 percent of the coordinated member's
20.23salary, as provided below:.
20.25(b) The regular and additional employer contributions must be remitted directly to
20.26therespective St. Paul Teachers Retirement Fund Association at least once each month.
20.27Delinquent amounts are payable with interest under the procedure in subdivision 1a.
20.28(c) Payments of regular and additional employer contributions for school district
20.29or technical college employees who are paid from normal operating funds must be made
20.30from the appropriate fund of the district or technical college.
20.31(d) When an employer contribution rate changes for a fiscal year, the new
20.32contribution rate is effective for the entire salary paid by the employer with the first
20.33payroll cycle reported.
20.34 Sec. 21. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3a,
20.35is amended to read:
21.1 Subd. 3a. Special direct state aid to first class city teachers retirement fund
21.2associations. (a) The state shall pay$346,000 as special direct state aid to the Duluth
21.3Teachers Retirement Fund Association and $2,827,000 to the St. Paul Teachers Retirement
21.4Fund Association.
21.5 (b) Theaids aid under this subdivision are payable October 1 annually. The
21.6commissioner of management and budget shall pay the aids specified in this subdivision.
21.7The amounts required are appropriated annually from the general fund to the commissioner
21.8of management and budget.
21.9 Sec. 22. Minnesota Statutes 2012, section 354A.31, subdivision 1, is amended to read:
21.10 Subdivision 1. Age and service requirements. Any coordinated member or former
21.11coordinated member of theDuluth Teachers Retirement Fund Association or of the St.
21.12Paul Teachers Retirement Fund Association who has ceased to render teaching service for
21.13the Independent School District in which the teachers retirement fund association exists
21.14 No. 625, who is vested and who has either attained the age of at least 55 years or received
21.15credit for not less than 30 years of allowable service regardless of age,shall be is entitled
21.16upon written application to a retirement annuity.
21.17 Sec. 23. Minnesota Statutes 2012, section 354A.32, subdivision 1, is amended to read:
21.18 Subdivision 1. Optional forms generally. The board of the St. Paul Teachers
21.19Retirement Fund Association shall establish for the coordinated programand the board
21.20of the Duluth Teachers Retirement Fund Association shall establish for the new law
21.21coordinated program an optional retirement annuity which shall must take the form of
21.22a joint and survivor annuity.Each The board may also, in its discretion, establish an
21.23optional annuity whichshall may take the form of an annuity payable for a period certain
21.24and for life thereafter.Each The board shall also establish an optional retirement annuity
21.25that guarantees payment of the balance of the annuity recipient's accumulated deductions
21.26to a designated beneficiary upon the death of the annuity recipient. Except as provided in
21.27subdivision 1a, the optional annuity formsshall must be the actuarial equivalent of the
21.28normal forms provided in section354A.31 . In establishing these optional annuity forms,
21.29the board shall obtain the written recommendation of the actuary retained under section
21.30356.214
. The recommendation shall must be a part of the permanent records of the board.
21.31 Sec. 24. Minnesota Statutes 2012, section 354A.35, subdivision 1, is amended to read:
21.32 Subdivision 1. Death before retirement; refund. If a coordinated member or
21.33former coordinated member diesprior to before retirement or prior to before the receipt
22.1of any retirement annuity or other benefit payment which is or may be payable and a
22.2surviving spouse optional annuity is not payablepursuant to under subdivision 2, a
22.3refundshall must be paid to the person's surviving spouse, or if there is none, to the
22.4person's designated beneficiary, or if there is none, to the legal representative of the
22.5person's estate. For a coordinated member or former coordinated member of the St. Paul
22.6Teachers Retirement Fund Association, the refundshall must be in an amount equal to the
22.7person's accumulated employee contributions plus interest at the rate of six percent per
22.8annum compounded annually.For a coordinated member or former coordinated member
22.9of the Duluth Teachers Retirement Fund Association, the refund shall be in an amount
22.10equal to the person's accumulated employee contributions plus interest at the rate of six
22.11percent per annum compounded annually to July 1, 2010, and four percent per annum
22.12compounded annually thereafter.
22.13 Sec. 25. Minnesota Statutes 2012, section 354A.37, subdivision 3, is amended to read:
22.14 Subd. 3. Computation of refund amount. A former coordinated member who
22.15qualifies for a refund under subdivision 1shall is entitled to receive a refund equal to the
22.16amount of the former coordinated member's accumulated employee contributions with
22.17interest at the rate of six percent per annum compounded annually toJuly 1, 2010, if the
22.18person is a former member of the Duluth Teachers Retirement Fund Association, or to
22.19 July 1, 2011, if the person is a former member of the St. Paul Teachers Retirement Fund
22.20Association, and four percent per annum compounded annually thereafter.
22.21 Sec. 26. Minnesota Statutes 2012, section 354A.37, subdivision 4, is amended to read:
22.22 Subd. 4. Certain refunds at normal retirement age. Any coordinated member
22.23who has attained the normal retirement age with less than ten years of allowable service
22.24credit and has terminated active teaching serviceshall be is entitled to a refund in lieu of a
22.25proportionate annuity under section356.32 . The refund must be equal to the coordinated
22.26member's accumulated employee contributions plus interest at the rate of six percent
22.27compounded annually toJuly 1, 2010, if the person is a former member of the Duluth
22.28Teachers Retirement Fund Association, or to July 1, 2011, if the person is a former
22.29member of the St. Paul Teachers Retirement Fund Association, and four percent per
22.30annum compounded annually thereafter.
22.31 Sec. 27. Minnesota Statutes 2012, section 354A.39, is amended to read:
22.32354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
23.1Any person who has been a member of the Minnesota State Retirement System, the
23.2Public Employees Retirement Association including the Public Employees Retirement
23.3Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota
23.4State Patrol Retirement Association, the legislators retirement plan, the constitutional
23.5officers retirement plan,the Duluth Teachers Retirement Fund Association new law
23.6coordinated program, the St. Paul Teachers Retirement Fund Association coordinated
23.7program, or any other public employee retirement system in the state of Minnesota
23.8having a like provision, but excluding all other funds providing retirement benefits for
23.9police officers or firefighters, is entitled, when qualified, to an annuity from each fund if
23.10the person's total allowable service in all of the funds or in any two or more of the funds
23.11totals three or more years, provided that no portion of the allowable service upon which
23.12the retirement annuity from one fund is based is used again in the computation for a
23.13retirement annuity from another fund and provided further that the person has not taken a
23.14refund from any of funds or associations since the person's membership in the fund or
23.15association has terminated. The annuity from each fund or association must be determined
23.16by the appropriate provisions of the law governing each fund or association, except that
23.17the requirement that a person must have at least three years of allowable service in the
23.18respective fund or association does not apply for the purposes of this section, provided
23.19that the aggregate service in two or more of these funds equals three or more years.
23.20 Sec. 28. Minnesota Statutes 2012, section 354A.41, is amended to read:
23.21354A.41 ADMINISTRATION OF COORDINATED PROGRAM.
23.22 Subdivision 1. Administrative provisions. The provisions of the articles of
23.23incorporation and bylaws of the St. Paul Teachers Retirement Fund Association relating
23.24to the administration of the fund shall govern the administration of the coordinated and
23.25basic programsand the provisions of the articles of incorporation and bylaws of the
23.26Duluth Teachers Retirement Fund Association relating to the administration of the fund
23.27shall govern the administration of the new law coordinated program in instances where the
23.28administrative provisions are not inconsistent with the provisions of sections354A.31 to
23.29354A.41
, including but not limited to provisions relating to the composition and function
23.30of the board of trustees, the investment of assets of the St. Paul Teachers Retirement Fund
23.31Association, and the definition of the plan year. The administrative provisions in the
23.32articles of incorporation and the bylaws of the Minneapolis Teachers Retirement Fund
23.33Association pertaining to the granting of pension benefits of the basic and coordinated
23.34programs are no longer in effect after June 30, 2006, and the administrative provisions of
24.1the Duluth Teachers Retirement Fund Association pertaining to retirement benefits of the
24.2old law coordinated program are no longer in effect after June 30, 2015.
24.3 Subd. 2. Actuarial valuations. In any actuarial valuation of the St. Paul Teachers
24.4Retirement Fund Association, or the Duluth Teachers Retirement Fund Association under
24.5section356.215 prepared by the actuary retained under section
356.214 or supplemental
24.6actuarial valuation prepared by an approved actuary retained by the St. Paul Teachers
24.7Retirement Fund Association, thereshall must be included a finding of the condition of the
24.8fund showing separately the basic and coordinated programsor the old law coordinated
24.9and new law coordinated programs, as appropriate. The finding shall must include the level
24.10normal cost and the applicable employee and employer contribution rates for each program.
24.11 Sec. 29. Minnesota Statutes 2012, section 354B.21, subdivision 3a, is amended to read:
24.12 Subd. 3a. Plan coverage and election; certain past service technical college
24.13faculty. (a) Notwithstanding subdivision 3, if an employee of the board was employed in
24.14a faculty position in a technical college on June 30, 1997, with coverage by the Teachers
24.15Retirement Association, the employee retains that coverage. If the employee was a
24.16technical college faculty member on June 30, 1995, covered by a first class city teacher
24.17retirement fund established under chapter 354A, the retirement coverage continues with
24.18theDuluth Teachers Retirement Fund Association or the St. Paul Teachers Retirement
24.19Fund Association, whichever is applicable. If the person was a technical college faculty
24.20member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund
24.21Association or the former Duluth Teachers Retirement Fund Association, the Teachers
24.22Retirement Association shall provide coverage.
24.23(b) An employee under paragraph (a) who has coverage bya first class city
24.24teacher the St. Paul Teachers Retirement Fund Association retains that coverage for the
24.25duration of the person's employment by the board unless, within one year of a change in
24.26employment within the Minnesota State Colleges and Universities system, the person
24.27elects the individual retirement account plan for all future employment by the board.
24.28The election is irrevocable.
24.29 Sec. 30. Minnesota Statutes 2012, section 355.01, subdivision 2c, is amended to read:
24.30 Subd. 2c. Duluth teacher. "Duluth teacher" means a person employed by
24.31Independent School District No. 709, Duluth, who holds a position covered by theDuluth
24.32 Teachers RetirementFund Association established under chapter 354A section 354.73.
25.1 Sec. 31. Minnesota Statutes 2013 Supplement, section 356.20, subdivision 2, is
25.2amended to read:
25.3 Subd. 2. Covered public pension plans and funds. This section applies to the
25.4following public pension plans:
25.5 (1) the general state employees retirement plan of the Minnesota State Retirement
25.6System;
25.7 (2) the general employees retirement plan of the Public Employees Retirement
25.8Association;
25.9 (3) the Teachers Retirement Association;
25.10 (4) the State Patrol retirement plan;
25.11 (5) the St. Paul Teachers Retirement Fund Association;
25.12(6) the Duluth Teachers Retirement Fund Association;
25.13(7) (6) the University of Minnesota faculty retirement plan;
25.14(8) (7) the University of Minnesota faculty supplemental retirement plan;
25.15(9) (8) the judges retirement fund;
25.16(10) (9) the Bloomington Fire Department Relief Association;
25.17(11) (10) a volunteer firefighter relief association governed by section
424A.091 ;
25.18(12) (11) the public employees police and fire plan of the Public Employees
25.19Retirement Association;
25.20(13) (12) the correctional state employees retirement plan of the Minnesota State
25.21Retirement System;
25.22(14) (13) the local government correctional service retirement plan of the Public
25.23Employees Retirement Association; and
25.24(15) (14) the voluntary statewide lump-sum volunteer firefighter retirement plan.
25.25 Sec. 32. Minnesota Statutes 2013 Supplement, section 356.214, subdivision 1, is
25.26amended to read:
25.27 Subdivision 1. Actuary retention. (a) The governing board or managing or
25.28administrative official of each public pension plan and retirement fund or plan enumerated
25.29in paragraph (b) shall contract with an established actuarial consulting firm to conduct
25.30annual actuarial valuations and related services. The principal from the actuarial
25.31consulting firm on the contract must be an approved actuary under section356.215,
25.32subdivision 1 , paragraph (c).
25.33 (b) Actuarial services must include the preparation of actuarial valuations and
25.34related actuarial work for the following retirement plans:
25.35 (1) the teachers retirement plan, Teachers Retirement Association;
26.1 (2) the general state employees retirement plan, Minnesota State Retirement System;
26.2 (3) the correctional employees retirement plan, Minnesota State Retirement System;
26.3 (4) the State Patrol retirement plan, Minnesota State Retirement System;
26.4 (5) the judges retirement plan, Minnesota State Retirement System;
26.5 (6) the general employees retirement plan, Public Employees Retirement
26.6Association, including the MERF division;
26.7 (7) the public employees police and fire plan, Public Employees Retirement
26.8Association;
26.9(8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund
26.10Association;
26.11(9) (8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
26.12Association;
26.13(10) (9) the legislators retirement plan, Minnesota State Retirement System; and
26.14(11) (10) the local government correctional service retirement plan, Public
26.15Employees Retirement Association.
26.16(c) The actuarial valuation for the legislators retirement plan must include a separate
26.17calculation of total plan actuarial accrued liabilities due to constitutional officer coverage
26.18under section3A.17 .
26.19 (d) The contracts must require completion of the annual actuarial valuation
26.20calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
26.21as specified in section356.215 , and in conformity with the standards for actuarial work
26.22adopted by the Legislative Commission on Pensions and Retirement.
26.23 The contracts must require completion of annual experience data collection and
26.24processing and a quadrennial published experience study for the plans listed in paragraph
26.25(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by
26.26the commission. The experience data collection, processing, and analysis must evaluate
26.27the following:
26.28 (1) individual salary progression;
26.29 (2) the rate of return on investments based on the current asset value;
26.30 (3) payroll growth;
26.31 (4) mortality;
26.32 (5) retirement age;
26.33 (6) withdrawal; and
26.34 (7) disablement.
26.35 (e) The actuary shall annually prepare a report to the governing or managing board
26.36or administrative official and the legislature, summarizing the results of the actuarial
27.1valuation calculations. The actuary shall include with the report any recommendations
27.2concerning the appropriateness of the support rates to achieve proper funding of
27.3the retirement plans by the required funding dates. The actuary shall, as part of the
27.4quadrennial experience study, include recommendations on the appropriateness of the
27.5actuarial valuation assumptions required for evaluation in the study.
27.6 (f) If the actuarial gain and loss analysis in the actuarial valuation calculations
27.7indicates a persistent pattern of sizable gains or losses, the governing or managing board
27.8or administrative official shall direct the actuary to prepare a special experience study for a
27.9plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10),or (11), in the manner
27.10provided for in the standards for actuarial work adopted by the commission.
27.11 Sec. 33. Minnesota Statutes 2013 Supplement, section 356.215, subdivision 8, is
27.12amended to read:
27.13 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
27.14the applicable following preretirement interest assumption and the applicable following
27.15postretirement interest assumption:
27.16(1) select and ultimate interest rate assumption
27.35Except for the legislators retirement plan and the constitutional officers calculation
27.36of total plan liabilities, the select preretirement interest rate assumption for the period
27.37after June 30, 2012, through June 30, 2017, is 8.0 percent. Except for the legislators
27.38retirement plan and the constitutional officers calculation of total plan liabilities, the select
27.39postretirement interest rate assumption for the period after June 30, 2012, through June
28.130, 2017, is 5.5 percent, except forthe Duluth teachers retirement plan and the St. Paul
28.2teachers retirement plan, each with a select postretirement interest rate assumption for the
28.3period after June 30, 2012, through June 30, 2017, of 8.0 percent.
28.4(2) single rate preretirement and postretirement interest rate assumption
28.10 (b) The actuarial valuation must use the applicable following single rate future salary
28.11increase assumption, the applicable following modified single rate future salary increase
28.12assumption, or the applicable following graded rate future salary increase assumption:
28.13 (1) single rate future salary increase assumption
28.19 (2) age-related future salary increase age-related select and ultimate future salary
28.20increase assumption or graded rate future salary increase assumption
28.25For plans other than the Duluth St. Paul
28.26teachers retirement plan and the local
28.27government correctional service retirement
28.28plan, the select calculation is: during the
28.29designated select period, a designated
28.30percentage rate is multiplied by the result of
28.31the designated integer minus T, where T is the
28.32number of completed years of service, and is
28.33added to the applicable future salary increase
28.34assumption. The designated select period is
28.35ten years and the designated integer is ten
28.36for the Duluth Teachers Retirement Fund
28.37Association and for the local government
28.38correctional service retirement plan and 15
29.1for the St. Paul Teachers Retirement Fund
29.2Association. The designated percentage
29.3rate is 0.2 percent for the St. Paul Teachers
29.4Retirement Fund Association.The select
29.5calculation for the Duluth Teachers
29.6Retirement Fund Association is 8.00 percent
29.7per year for service years one through seven,
29.87.25 percent per year for service years seven
29.9and eight, and 6.50 percent per year for
29.10service years eight and nine.
29.11 The ultimate future salary increase assumption is:
30.27(3) service-related ultimate future salary increase assumption
31.26 (c) The actuarial valuation must use the applicable following payroll growth
31.27assumption for calculating the amortization requirement for the unfunded actuarial
31.28accrued liability where the amortization retirement is calculated as a level percentage
31.29of an increasing payroll:
32.1 (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
32.2different salary assumption or a different payroll increase assumption:
32.3 (1) has been proposed by the governing board of the applicable retirement plan;
32.4 (2) is accompanied by the concurring recommendation of the actuary retained under
32.5section356.214, subdivision 1 , if applicable, or by the approved actuary preparing the
32.6most recent actuarial valuation report if section356.214 does not apply; and
32.7 (3) has been approved or deemed approved under subdivision 18.
32.8 Sec. 34. Minnesota Statutes 2013 Supplement, section 356.219, subdivision 8, is
32.9amended to read:
32.10 Subd. 8. Timing of reports. (a) For the Bloomington Fire Department Relief
32.11Association and the volunteer firefighter relief associations, the information required
32.12under this section must be submitted by the due date for reports required under section
32.1369.051, subdivision 1
or 1a, as applicable. If a relief association satisfies the definition of
32.14a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered
32.15by the report required under section69.051, subdivision 1 or 1a, as applicable, the chief
32.16administrative officer of the covered pension plan shall certify that compliance on a form
32.17prescribed by the state auditor. The state auditor shall transmit annually to the State Board
32.18of Investment a list or lists of covered pension plans which submitted certifications in
32.19order to facilitate reporting by the State Board of Investment under paragraph (c).
32.20(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers
32.21Retirement Fund Association, and the University of Minnesota faculty supplemental
32.22retirement plan, the information required under this section must be submitted to the state
32.23auditor by June 1 of each year.
32.24(c) The State Board of Investment, on behalf of pension funds specified in
32.25subdivision 1, paragraph (c),must shall report information required under this section by
32.26September 1 of each year.
32.27 Sec. 35. Minnesota Statutes 2013 Supplement, section 356.30, subdivision 3, is
32.28amended to read:
32.29 Subd. 3. Covered plans. This section applies to the following retirement plans:
32.30(1) the general state employees retirement plan of the Minnesota State Retirement
32.31System, established under chapter 352;
32.32(2) the correctional state employees retirement plan of the Minnesota State
32.33Retirement System, established under chapter 352;
32.34(3) the unclassified employees retirement program, established under chapter 352D;
33.1(4) the State Patrol retirement plan, established under chapter 352B;
33.2(5) the legislators retirement plan, established under chapter 3A, including
33.3constitutional officers as specified in that chapter;
33.4(6) the general employees retirement plan of the Public Employees Retirement
33.5Association, established under chapter 353, including the MERF division of the Public
33.6Employees Retirement Association;
33.7(7) the public employees police and fire retirement plan of the Public Employees
33.8Retirement Association, established under chapter 353;
33.9(8) the local government correctional service retirement plan of the Public
33.10Employees Retirement Association, established under chapter 353E;
33.11(9) the Teachers Retirement Association, established under chapter 354;
33.12(10) the St. Paul Teachers Retirement Fund Association, established under chapter
33.13354A; and
33.14(11) the Duluth Teachers Retirement Fund Association, established under chapter
33.15354A; and
33.16(12) (11) the judges retirement fund, established by chapter 490.
33.17 Sec. 36. Minnesota Statutes 2012, section 356.302, subdivision 7, is amended to read:
33.18 Subd. 7. Covered retirement plans. This section applies to the following
33.19retirement plans:
33.20(1) the general state employees retirement plan of the Minnesota State Retirement
33.21System, established by chapter 352;
33.22(2) the unclassified state employees retirement program of the Minnesota State
33.23Retirement System, established by chapter 352D;
33.24(3) the general employees retirement plan of the Public Employees Retirement
33.25Association, established by chapter 353, including the MERF division of the Public
33.26Employees Retirement Association;
33.27(4) the Teachers Retirement Association, established by chapter 354;
33.28(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
33.29(6) (5) the St. Paul Teachers Retirement Fund Association, established by chapter
33.30354A;
33.31(7) (6) the state correctional employees retirement plan of the Minnesota State
33.32Retirement System, established by chapter 352;
33.33(8) (7) the State Patrol retirement plan, established by chapter 352B;
33.34(9) (8) the public employees police and fire plan of the Public Employees Retirement
33.35Association, established by chapter 353;
34.1(10) (9) the local government correctional service retirement plan of the Public
34.2Employees Retirement Association, established by chapter 353E; and
34.3(11) (10) the judges retirement plan, established by chapter 490.
34.4 Sec. 37. Minnesota Statutes 2012, section 356.303, subdivision 4, is amended to read:
34.5 Subd. 4. Covered retirement plans. This section applies to the following
34.6retirement plans:
34.7(1) the legislators retirement plan, established by chapter 3A;
34.8(2) the general state employees retirement plan of the Minnesota State Retirement
34.9System, established by chapter 352;
34.10(3) the correctional state employees retirement plan of the Minnesota State
34.11Retirement System, established by chapter 352;
34.12(4) the State Patrol retirement plan, established by chapter 352B;
34.13(5) the elective state officers retirement plan, established by chapter 352C;
34.14(6) the unclassified state employees retirement program, established by chapter 352D;
34.15(7) the general employees retirement plan of the Public Employees Retirement
34.16Association, established by chapter 353, including the MERF division of the Public
34.17Employees Retirement Association;
34.18(8) the public employees police and fire plan of the Public Employees Retirement
34.19Association, established by chapter 353;
34.20(9) the local government correctional service retirement plan of the Public
34.21Employees Retirement Association, established by chapter 353E;
34.22(10) the Teachers Retirement Association, established by chapter 354;
34.23(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
34.24(12) (11) the St. Paul Teachers Retirement Fund Association, established by chapter
34.25354A; and
34.26(13) (12) the judges retirement fund, established by chapter 490.
34.27 Sec. 38. Minnesota Statutes 2012, section 356.32, subdivision 2, is amended to read:
34.28 Subd. 2. Covered retirement plans. The provisions of this section apply to the
34.29following retirement plans:
34.30(1) the general state employees retirement plan of the Minnesota State Retirement
34.31System, established under chapter 352;
34.32(2) the correctional state employees retirement plan of the Minnesota State
34.33Retirement System, established under chapter 352;
34.34(3) the State Patrol retirement plan, established under chapter 352B;
35.1(4) the general employees retirement plan of the Public Employees Retirement
35.2Association, established under chapter 353, including the MERF division of the Public
35.3Employees Retirement Association;
35.4(5) the public employees police and fire plan of the Public Employees Retirement
35.5Association, established under chapter 353;
35.6(6) the Teachers Retirement Association, established under chapter 354; and
35.7(7) the Duluth Teachers Retirement Fund Association, established under chapter
35.8354A; and
35.9(8) (7) the St. Paul Teachers Retirement Fund Association, established under chapter
35.10354A.
35.11 Sec. 39. Minnesota Statutes 2013 Supplement, section 356.401, subdivision 3, is
35.12amended to read:
35.13 Subd. 3. Covered retirement plans. The provisions of this section apply to the
35.14following retirement plans:
35.15(1) the legislators retirement plan, established by chapter 3A, including constitutional
35.16officers as specified in that chapter;
35.17(2) the general state employees retirement plan of the Minnesota State Retirement
35.18System, established by chapter 352;
35.19(3) the correctional state employees retirement plan of the Minnesota State
35.20Retirement System, established by chapter 352;
35.21(4) the State Patrol retirement plan, established by chapter 352B;
35.22(5) the unclassified state employees retirement program, established by chapter 352D;
35.23(6) the general employees retirement plan of the Public Employees Retirement
35.24Association, established by chapter 353, including the MERF division of the Public
35.25Employees Retirement Association;
35.26(7) the public employees police and fire plan of the Public Employees Retirement
35.27Association, established by chapter 353;
35.28(8) the public employees defined contribution plan, established by chapter 353D;
35.29(9) the local government correctional service retirement plan of the Public
35.30Employees Retirement Association, established by chapter 353E;
35.31(10) the voluntary statewide lump-sum volunteer firefighter retirement plan,
35.32established by chapter 353G;
35.33(11) the Teachers Retirement Association, established by chapter 354;
35.34(12) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
36.1(13) (12) the St. Paul Teachers Retirement Fund Association, established by chapter
36.2354A;
36.3(14) (13) the individual retirement account plan, established by chapter 354B;
36.4(15) (14) the higher education supplemental retirement plan, established by chapter
36.5354C; and
36.6(16) (15) the judges retirement fund, established by chapter 490.
36.7 Sec. 40. Minnesota Statutes 2012, section 356.42, subdivision 3, is amended to read:
36.8 Subd. 3. Covered retirement plans. The postretirement adjustment provided in
36.9this section applies to the following retirement funds:
36.10(1) the general employees retirement plans of the Public Employees Retirement
36.11Association;
36.12(2) the public employees police and fire plan of the Public Employees Retirement
36.13Association;
36.14(3) the teachers retirement association;
36.15(4) the State Patrol retirement plan;
36.16(5) the state employees retirement plan of the Minnesota State Retirement System;
36.17 and
36.18(6) the St. Paul Teachers Retirement Fund Association established under chapter
36.19354A; and.
36.20(7) the Duluth Teachers Retirement Fund Association established under chapter
36.21354A.
36.22 Sec. 41. Minnesota Statutes 2012, section 356.465, subdivision 3, is amended to read:
36.23 Subd. 3. Covered retirement plans. The provisions of this section apply to the
36.24following retirement plans:
36.25(1) the general state employees retirement plan of the Minnesota State Retirement
36.26System established under chapter 352;
36.27(2) the correctional state employees retirement plan of the Minnesota State
36.28Retirement System established under chapter 352;
36.29(3) the State Patrol retirement plan established under chapter 352B;
36.30(4) the legislators retirement plan established under chapter 3A;
36.31(5) the judges retirement plan established under chapter 490;
36.32(6) the general employees retirement plan of the Public Employees Retirement
36.33Association established under chapter 353, including the MERF division of the Public
36.34Employees Retirement Association;
37.1(7) the public employees police and fire plan of the Public Employees Retirement
37.2Association established under chapter 353;
37.3(8) the teachers retirement plan established under chapter 354;
37.4(9) the Duluth Teachers Retirement Fund Association established under chapter
37.5354A;
37.6(10) (9) the St. Paul Teachers Retirement Fund Association established under
37.7chapter 354A; and
37.8(11) (10) the local government correctional service retirement plan of the Public
37.9Employees Retirement Association established under chapter 353E.
37.10 Sec. 42. Minnesota Statutes 2012, section 356.47, subdivision 3, is amended to read:
37.11 Subd. 3. Payment. (a) Beginning one year after the reemployment withholding
37.12period ends relating to the reemployment that gave rise to the limitation, and the filing of a
37.13written application, the retired member is entitled to the payment, in a lump sum, of the
37.14value of the person's amount under subdivision 2, plus annual compound interest. For the
37.15general state employees retirement plan, the correctional state employees retirement plan,
37.16the general employees retirement plan of the Public Employees Retirement Association,
37.17the public employees police and fire retirement plan, the local government correctional
37.18employees retirement plan, and the teachers retirement plan, the annual interest rate is
37.19six percent from the date on which the amount was deducted from the retirement annuity
37.20to the date of payment or until January 1, 2011, whichever is earlier, and no interest
37.21after January 1, 2011.For the Duluth Teachers Retirement Fund Association, the annual
37.22interest is six percent from the date on which the amount was deducted from the retirement
37.23annuity to the date of payment or until June 30, 2010, whichever is earlier, and with
37.24no interest accrual after June 30, 2010. For the St. Paul Teachers Retirement Fund
37.25Association, the annual interest is the rate of six percent from the date that the amount was
37.26deducted from the retirement annuity to the date of payment or June 30, 2011, whichever
37.27is earlier, and with no interest accrual after June 30, 2011.
37.28 (b) The written application must be on a form prescribed by the chief administrative
37.29officer of the applicable retirement plan.
37.30 (c) If the retired member dies before the payment provided for in paragraph (a) is
37.31made, the amount is payable, upon written application, to the deceased person's surviving
37.32spouse, or if none, to the deceased person's designated beneficiary, or if none, to the
37.33deceased person's estate.
37.34 (d) In lieu of the direct payment of the person's amount under subdivision 2, on
37.35or after the payment date under paragraph (a), if the federal Internal Revenue Code so
38.1permits, the retired member may elect to have all or any portion of the payment amount
38.2under this section paid in the form of a direct rollover to an eligible retirement plan as
38.3defined in section 402(c) of the federal Internal Revenue Code that is specified by the
38.4retired member. If the retired member dies with a balance remaining payable under this
38.5section, the surviving spouse of the retired member, or if none, the deceased person's
38.6designated beneficiary, or if none, the administrator of the deceased person's estate may
38.7elect a direct rollover under this paragraph.
38.8 Sec. 43. Minnesota Statutes 2012, section 356.99, subdivision 1, is amended to read:
38.9 Subdivision 1. Definitions. (a) For purposes of this section, the terms in paragraphs
38.10(b) to (e) have the meanings given them.
38.11(b) "Chief administrative officer" means the person selected or elected by the
38.12governing board of a covered pension plan with primary responsibility to administer the
38.13covered pension plan, or that person's designee or representative.
38.14(c) "Covered pension plan" means a plan enumerated in section356.30, subdivision
38.153 , except clauses (3), (5), and (6).
38.16(d) "Governing board" means the governing board of the Minnesota State Retirement
38.17System, the Public Employees Retirement Association, the Teachers Retirement
38.18Association,the Duluth Teachers Retirement Fund Association, or the St. Paul Teachers
38.19Retirement Fund Association.
38.20(e) "Member" means an active plan member in a covered pension plan.
38.21 Sec. 44. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is
38.22amended to read:
38.23 Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the
38.24difference between $5,720,000 and the current year amortization aid distributed under
38.25subdivision 1 that is not distributed for any reason to a municipality must be distributed
38.26by the commissioner of revenue according to this paragraph. The commissioner shall
38.27distribute50 60 percent of the amounts derived under this paragraph to the Teachers
38.28Retirement Association,ten percent to the Duluth Teachers Retirement Fund Association,
38.29 and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded
38.30actuarial accrued liabilities of the respective funds. These payments must be made on July
38.3115 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth
38.32Teachers Retirement Fund Association becomes fully funded, the association's eligibility
38.33for its portion of this aid ceases. Amounts remaining in the undistributed balance account
38.34at the end of the biennium if aid eligibility ceases cancel to the general fund.
39.1 (b) In order to receive amortization aid under paragraph (a), before June 30 annually
39.2Independent School District No. 625, St. Paul, must make an additional contribution of
39.3$800,000 each year to the St. Paul Teachers Retirement Fund Association.
39.4 (c) Thirty percent of the difference between $5,720,000 and the current year
39.5amortization aid under subdivision 1a that is not distributed for any reason to a
39.6municipality must be distributed under section69.021, subdivision 7 , paragraph (d), as
39.7additional funding to support a minimum fire state aid amount for volunteer firefighter
39.8relief associations.
39.9 Sec. 45. CONSOLIDATION OF THE DULUTH TEACHERS RETIREMENT
39.10FUND ASSOCIATION.
39.11 Subdivision 1. Membership transfer. All active, inactive, and retired members
39.12of the Duluth Teachers Retirement Fund Association are transferred to the Teachers
39.13Retirement Association and are no longer members of the Duluth Teachers Retirement
39.14Fund Association as of July 1, 2015.
39.15 Subd. 2. Teachers Retirement Association membership. A person first hired as a
39.16teacher by Independent School District No. 709, Duluth, after June 30, 2015, and who is a
39.17teacher as defined in Minnesota Statutes, section354.05 , subdivision 2, is a member of the
39.18Teachers Retirement Association for the person's subsequent teaching service.
39.19 Subd. 3. Service credit and liability transfer. All allowable service and salary
39.20credit of the members and other individuals transferred under subdivision 1 as specified
39.21in the records of the Duluth Teachers Retirement Fund Association as of June 30, 2015,
39.22is allowable service credit under Minnesota Statutes, section354.05 , subdivision 13,
39.23formula service credit under Minnesota Statutes, section354.05 , subdivision 25, and
39.24salary credit under Minnesota Statutes, section354.05 , subdivision 35, for the Teachers
39.25Retirement Association.
39.26 Subd. 4. Transfer of records. On or before June 30, 2015, the chief administrative
39.27officer of the Duluth Teachers Retirement Fund Association shall transfer all records and
39.28documents relating to the funds and the benefit plans of the association to the executive
39.29director of the Teachers Retirement Association. To the extent possible, original copies of
39.30all records and documents must be transferred.
39.31 Subd. 5. Transfer of assets. (a) On or before December 31, 2014, the chief
39.32administrative officer of the Duluth Teachers Retirement Fund Association shall transfer
39.33to the State Board of Investment the entire assets of the special retirement fund of the
39.34Duluth Teachers Retirement Fund Association. The transfer of the assets of the Duluth
39.35Teachers Retirement Fund Association special retirement fund must include any accounts
40.1receivable that are determined by the executive director of the State Board of Investment
40.2as reasonably capable of being collected. Legal title to account receivables that are
40.3determined by the executive director of the State Board of Investment as not reasonably
40.4capable of being collected transfers to Independent School District No. 709, Duluth, as of
40.5the date of the determination of the executive director of the State Board of Investment. If
40.6the account receivables transferred to Independent School District No. 709, Duluth, are
40.7subsequently recovered by the school district, the superintendent of Independent School
40.8District No. 709, Duluth, shall transfer the recovered amount to the executive director of
40.9the Teachers Retirement Association, in cash, for deposit in the teachers retirement fund,
40.10less the reasonable expenses of the school district related to the recovery. If the board of
40.11trustees of the Duluth Teachers Retirement Fund Association establishes a liquidating trust
40.12and deposits any of the retirement fund association assets in that trust or if the legislative
40.13auditor determines that the transferred assets were in an amount less than the full assets of
40.14the retirement fund association other than assets in the tax sheltered annuity program on
40.15the date of transfer as specified in paragraph (d), the amount of any untransferred assets
40.16are a claim against the state aid otherwise payable to Independent School District No. 709,
40.17Duluth, payable by the commissioner of management and budget upon request by the
40.18executive director of the Teachers Retirement Association.
40.19(b) As of June 30, 2015, assets of the special retirement fund of the Duluth Teachers
40.20Retirement Fund Association are assets of the Teachers Retirement Association to be
40.21invested by the State Board of Investment under Minnesota Statutes, section354.07 ,
40.22subdivision 4.
40.23 Subd. 6. Termination of Duluth Teachers Retirement Fund Association special
40.24retirement fund. (a) As of June 30, 2015, the Duluth Teachers Retirement Fund
40.25Association as a public retirement plan and its special retirement fund ceases to exist.
40.26(b) Contracts, records, and obligations of the Duluth Teachers Retirement Fund
40.27Association special retirement fund existing at the time of consolidation with the Teachers
40.28Retirement Association are transferred to the Teachers Retirement Association under
40.29Minnesota Statutes, section15.039 , subdivisions 5 and 5a, except that contracts, records,
40.30and obligations of the Duluth Teachers Retirement Fund Association special retirement
40.31fund related to investment and safekeeping of assets are transferred to the State Board of
40.32Investment pursuant to the provisions of Minnesota Statutes, section15.039 , subdivisions
40.335 and 5a. The State Board of Investment has the authority to pay the investment-related
40.34liabilities and obligations from the assets transferred from the Duluth Teachers Retirement
40.35Fund Association incurred by the Teachers Retirement Association. The board of trustees
40.36of the Teachers Retirement Association shall contract with the legislative auditor for
41.1necessary audit services associated with the Duluth Teachers Retirement Fund Association
41.2financial activity during the fiscal year ending June 30, 2015, as part of the Teachers
41.3Retirement Association board's annual financial reporting requirements under Minnesota
41.4Statutes, section 356.20. The board of trustees of the Teachers Retirement Association
41.5may authorize and contract with either the legislative auditor or the state auditor to
41.6perform other audit services. The costs of the audit or examination must be paid by the
41.7Teachers Retirement Association. Between April 1, 2015, and June 30, 2015, the Duluth
41.8Teachers Retirement Fund Association cannot incur a new or additional enforceable
41.9contractual liability or obligation without approval of the executive director of the
41.10Teachers Retirement Association.
41.11 Sec. 46. DULUTH TEACHERS RETIREMENT FUND ASSOCIATION
41.12EMPLOYEES.
41.13Effective June 30, 2015, unless the employee elects otherwise, the employees
41.14of the Duluth Teachers Retirement Fund Association have their employment with the
41.15Duluth Teachers Retirement Fund Association terminated and, effective July 1, 2015,
41.16the Duluth Teachers Retirement Fund Association employees, excluding the Executive
41.17Director, become employees of the Teachers Retirement Association. The commissioner
41.18of management and budget shall place employees from the former Duluth Teachers
41.19Retirement Fund Association into state service in their proper classifications, except
41.20that employees are appointed without examination and must be compensated at no less
41.21than their current hourly salary rate. Employees must have their accumulated, but
41.22unused, vacation leave balance as of June 30, 2015, posted to their credit by the Teachers
41.23Retirement Association, but if the employee has vacation time in excess of the applicable
41.24maximum, no additional vacation may accrue until the employee's balance falls below
41.25the maximum permitted by the state for the employee's position. The employees must
41.26receive length of service credit for vacation leave accrual for time served at the Duluth
41.27Teachers Retirement Fund Association. Duluth Teachers Retirement Fund Association
41.28employees who become employees of the Teachers Retirement Association effective on
41.29July 1, 2015, must be considered to have completed six months of continuous service
41.30for vacation use purposes. Employees of the former Duluth Teachers Retirement Fund
41.31Association appointed to the classified service are subject to a probationary period under
41.32the collective bargaining agreement or compensation plan applicable to the employee's
41.33position at the Teachers Retirement Association. Effective July 1, 2015, all transferred
41.34employees must be enrolled in the state employees' group insurance program as provided
41.35in Minnesota Statutes, sections 43A.22 to 43A.31, and the commissioner of management
42.1and budget shall provide open enrollment in all state employee health and dental insurance
42.2plans with no limitation on preexisting conditions except as specified in existing state
42.3employee certificates of coverage. The commissioner of management and budget shall
42.4provide these transferred employees with the opportunity to purchase optional life and
42.5disability insurance as provided by the state group insurance program in accordance with
42.6the policies of Minnesota Management and Budget.
42.7 Sec. 47. REPEALER.
42.8(a) Minnesota Statutes 2012, sections 354A.021, subdivision 5; 354A.108; 354A.24;
42.9and 354A.27, subdivision 5, are repealed.
42.10(b) Minnesota Statutes 2013 Supplement, sections 354A.27, subdivisions 6a and 7;
42.11and 354A.31, subdivision 4a, are repealed.
42.12 Sec. 48. EFFECTIVE DATE.
42.13(a) Sections 1 to 47 are effective June 30, 2015, if the following approve the
42.14consolidation provisions before January 1, 2015:
42.15(1) the board of trustees of the Duluth Teachers Retirement Fund Association;
42.16(2) the membership of the Duluth Teachers Retirement Fund Association; and
42.17(3) the board of trustees of the Teachers Retirement Association.
42.18(b) An approval under paragraph (a) must be provided in a timely manner in
42.19compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, to the
42.20secretary of state, the state auditor, and the legislative auditor by the chief administrative
42.21officer of the Duluth Teachers Retirement Fund Association for an approval under
42.22paragraph (a) by the board of trustees of the Duluth Teachers Retirement Fund Association
42.23or by the membership of the Duluth Teachers Retirement Fund Association and by the
42.24chief administrative officer of the Teachers Retirement Association for an approval under
42.25paragraph (a) by the board of trustees of the Teachers Retirement Association.
1.3Retirement Fund Association retirement plan and fund into the statewide Teachers
1.4Retirement Association; amending Minnesota Statutes 2012, sections 13.632,
1.5subdivision 1; 122A.18, subdivision 7a; 354.05, subdivisions 2, 13; 354.42,
1.6subdivisions 2, 3; 354A.011, subdivisions 11, 15a, 27; 354A.021, subdivision
1.71; 354A.092; 354A.093, subdivision 1; 354A.096; 354A.12, subdivision 2;
1.8354A.31, subdivision 1; 354A.32, subdivision 1; 354A.35, subdivision 1;
1.9354A.37, subdivisions 3, 4; 354A.39; 354A.41; 354B.21, subdivision 3a;
1.10355.01, subdivision 2c; 356.302, subdivision 7; 356.303, subdivision 4; 356.32,
1.11subdivision 2; 356.42, subdivision 3; 356.465, subdivision 3; 356.47, subdivision
1.123; 356.99, subdivision 1; Minnesota Statutes 2013 Supplement, sections 353.01,
1.13subdivision 2b; 354.436; 354.44, subdivision 6; 354A.12, subdivisions 1, 2a,
1.143a; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, subdivision 8;
1.15356.219, subdivision 8; 356.30, subdivision 3; 356.401, subdivision 3; 423A.02,
1.16subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 354;
1.17repealing Minnesota Statutes 2012, sections 354A.021, subdivision 5; 354A.108;
1.18354A.24; 354A.27, subdivision 5; Minnesota Statutes 2013 Supplement, sections
1.19354A.27, subdivisions 6a, 7; 354A.31, subdivision 4a.
1.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.21 Section 1. Minnesota Statutes 2012, section 13.632, subdivision 1, is amended to read:
1.22 Subdivision 1. Beneficiary and survivor data. The following data on beneficiaries
1.23and survivors of the St. Paul Teachers Retirement Fund Association
1.24
1.25address, date of birth, direct deposit number, and tax withholding data.
1.26 Sec. 2. Minnesota Statutes 2012, section 122A.18, subdivision 7a, is amended to read:
1.27 Subd. 7a. Permission to substitute teach. (a) The Board of Teaching may allow a
1.28person who is enrolled in and making satisfactory progress in a board-approved teacher
2.1program and who has successfully completed student teaching to be employed as a
2.2short-call substitute teacher.
2.3(b) The Board of Teaching may issue a lifetime qualified short-call substitute
2.4teaching license to a person who:
2.5(1) was a qualified teacher under section
2.6five-year teaching license issued by the board, and receives a retirement annuity from the
2.7Teachers Retirement Association
2.8 or the St. Paul Teachers Retirement Fund Association
2.9
2.10(2) holds an out-of-state teaching license and receives a retirement annuity as a
2.11result of the person's teaching experience; or
2.12(3) held a continuing five-year license issued by the board, taught at least three
2.13school years in an accredited nonpublic school in Minnesota, and receives a retirement
2.14annuity as a result of the person's teaching experience.
2.15A person holding a lifetime qualified short-call substitute teaching license is not required
2.16to complete continuing education clock hours. A person holding this license may reapply
2.17to the board for a continuing five-year license and must again complete continuing
2.18education clock hours one school year after receiving the continuing five-year license.
2.19 Sec. 3. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2b, is
2.20amended to read:
2.21 Subd. 2b. Excluded employees. (a) The following public employees are not eligible
2.22to participate as members of the association with retirement coverage by the general
2.23employees retirement plan, the local government correctional employees retirement plan
2.24under chapter 353E, or the public employees police and fire retirement plan:
2.25 (1) persons whose salary from one governmental subdivision never exceeds $425 in
2.26a month;
2.27(2) public officers who are elected to a governing body, city mayors, or persons who
2.28are appointed to fill a vacancy in an elective office of a governing body, whose term of office
2.29commences on or after July 1, 2002, for the service to be rendered in that elective position;
2.30 (3) election officers or election judges;
2.31 (4) patient and inmate personnel who perform services for a governmental
2.32subdivision;
2.33 (5) except as otherwise specified in subdivision 12a, employees who are hired for
2.34a temporary position as defined under subdivision 12a, and employees who resign from
3.1a nontemporary position and accept a temporary position within 30 days in the same
3.2governmental subdivision;
3.3 (6) employees who are employed by reason of work emergency caused by fire,
3.4flood, storm, or similar disaster;
3.5 (7) employees who by virtue of their employment in one governmental subdivision
3.6are required by law to be a member of and to contribute to any of the plans or funds
3.7administered by the Minnesota State Retirement System, the Teachers Retirement
3.8Association,
3.9Retirement Fund Association. This clause must not be construed to prevent a person from
3.10being a member of and contributing to the Public Employees Retirement Association and
3.11also belonging to and contributing to another public pension plan or fund for other service
3.12occurring during the same period of time. A person who meets the definition of "public
3.13employee" in subdivision 2 by virtue of other service occurring during the same period of
3.14time becomes a member of the association unless contributions are made to another public
3.15retirement fund on the salary based on the other service or to the Teachers Retirement
3.16Association by a teacher as defined in section
3.17 (8) persons who are members of a religious order and are excluded from coverage
3.18under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
3.19performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
3.20as amended through January 1, 1987, if no irrevocable election of coverage has been made
3.21under section 3121(r) of the Internal Revenue Code of 1954, as amended;
3.22 (9) employees of a governmental subdivision who have not reached the age of
3.2323 and are enrolled on a full-time basis to attend or are attending classes on a full-time
3.24basis at an accredited school, college, or university in an undergraduate, graduate, or
3.25professional-technical program, or a public or charter high school;
3.26 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
3.27interns who are serving in a degree or residency program in public hospitals or clinics;
3.28 (11) students who are serving for up to five years in an internship or residency program
3.29sponsored by a governmental subdivision, including an accredited educational institution;
3.30 (12) persons who hold a part-time adult supplementary technical college license who
3.31render part-time teaching service in a technical college;
3.32 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
3.33foreign citizens who are employed by a governmental subdivision under a work permit, or
3.34an H-1b visa initially issued or extended for a combined period less than three years of
3.35employment. Upon extension of the employment beyond the three-year period, the foreign
4.1citizens must be reported for membership beginning the first of the month thereafter
4.2provided the monthly earnings threshold as provided under subdivision 2a is met;
4.3 (14) public hospital employees who elected not to participate as members of the
4.4association before 1972 and who did not elect to participate from July 1, 1988, to October
4.51, 1988;
4.6 (15) except as provided in section
4.7defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
4.8may still qualify as public employees under subdivision 2 and may be members of the
4.9Public Employees Retirement Association and participants in the general employees
4.10retirement plan or the public employees police and fire plan, whichever applies, on the
4.11basis of compensation received from public employment service other than service as
4.12volunteer ambulance service personnel;
4.13 (16) except as provided in section
4.14subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
4.15but a person who is a volunteer firefighter may still qualify as a public employee under
4.16subdivision 2 and may be a member of the Public Employees Retirement Association and
4.17a participant in the general employees retirement plan or the public employees police
4.18and fire plan, whichever applies, on the basis of compensation received from public
4.19employment activities other than those as a volunteer firefighter;
4.20 (17) pipefitters and associated trades personnel employed by Independent School
4.21District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
4.22pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
4.23if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
4.24241, article 2, section 12;
4.25 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
4.26are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
4.27who have retirement coverage under a collective bargaining agreement by the Electrical
4.28Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
4.29or the pension plan applicable to Carpenters Local 87 who were either first employed after
4.30May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
4.31Laws 2000, chapter 461, article 7, section 5;
4.32 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
4.33painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
4.34or Independent School District No. 625, St. Paul, with coverage under a collective
4.35bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
4.36the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
5.1pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
5.2Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
5.3first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
5.4Session chapter 10, article 10, section 6;
5.5 (20) plumbers who are employed by the Metropolitan Airports Commission, with
5.6coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
5.7who either were first employed after May 1, 2001, or if first employed before May 2,
5.82001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
5.910, section 6;
5.10 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
5.11subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
5.12days or less in each year of employment with the governmental subdivision;
5.13 (22) persons who are provided supported employment or work-study positions by a
5.14governmental subdivision and who participate in an employment or industries program
5.15maintained for the benefit of these persons where the governmental subdivision limits the
5.16position's duration to up to five years, including persons participating in a federal or state
5.17subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
5.18relief program where the training or work experience is not provided as a part of, or
5.19for, future permanent public employment;
5.20 (23) independent contractors and the employees of independent contractors;
5.21 (24) reemployed annuitants of the association during the course of that
5.22reemployment; and
5.23(25) persons appointed to serve on a board or commission of a governmental
5.24subdivision or an instrumentality thereof.
5.25(b) Any person performing the duties of a public officer in a position defined in
5.26subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
5.27employee of an independent contractor.
5.28 Sec. 4. Minnesota Statutes 2012, section 354.05, subdivision 2, is amended to read:
5.29 Subd. 2. Teacher. (a) "Teacher" means:
5.30(1) a person who renders service as a teacher, supervisor, principal, superintendent,
5.31librarian, nurse, counselor, social worker, therapist, or psychologist in a public school of
5.32the state located outside of the corporate limits of
5.33or in any charter school, irrespective of the location of the school, or in any charitable,
5.34penal, or correctional institutions of a governmental subdivision, or who is engaged in
5.35educational administration in connection with the state public school system, but excluding
6.1the University of Minnesota, whether the position be a public office or an employment, and
6.2not including the members or officers of any general governing or managing board or body;
6.3(2) an employee of the Teachers Retirement Association;
6.4(3) a person who renders teaching service on a part-time basis and who also renders
6.5other services for a single employing unit. A person whose teaching service comprises at
6.6least 50 percent of the combined employment salary is a member of the association for all
6.7services with the single employing unit. If the person's teaching service comprises less
6.8than 50 percent of the combined employment salary, the executive director must determine
6.9whether all or none of the combined service is covered by the association; or
6.10(4) a person who is not covered by the plans established under chapter 352D, 354A,
6.11or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges
6.12and Universities system in an unclassified position as:
6.13(i) a president, vice-president, or dean;
6.14(ii) a manager or a professional in an academic or an academic support program
6.15other than specified in item (i);
6.16(iii) an administrative or a service support faculty position; or
6.17(iv) a teacher or a research assistant.
6.18(b) "Teacher" does not mean:
6.19(1) a person who works for a school or institution as an independent contractor as
6.20defined by the Internal Revenue Service;
6.21(2) a person who renders part-time teaching service or who is a customized trainer
6.22as defined by the Minnesota State Colleges and Universities system if (i) the service is
6.23incidental to the regular nonteaching occupation of the person; and (ii) the employer
6.24stipulates annually in advance that the part-time teaching service or customized training
6.25service will not exceed 300 hours in a fiscal year and retains the stipulation in its records;
6.26and (iii) the part-time teaching service or customized training service actually does not
6.27exceed 300 hours in a fiscal year; or
6.28(3) a person exempt from licensure under section
6.29 Sec. 5. Minnesota Statutes 2012, section 354.05, subdivision 13, is amended to read:
6.30 Subd. 13. Allowable service. "Allowable service" means:
6.31 (1) Any service rendered by a teacher for which on or before July 1, 1957, the
6.32teacher's account in the retirement fund was credited by reason of employee contributions
6.33in the form of salary deductions, payments in lieu of salary deductions, or in any other
6.34manner authorized by Minnesota Statutes 1953, sections 135.01 to 135.13, as amended by
6.35Laws 1955, chapters 361, 549, 550, 611
7.1 (2) Any service rendered by a teacher for which on or before July 1, 1961, the
7.2teacher elected to obtain credit for service by making payments to the fund
7.3 under Minnesota Statutes 1980, section 354.09 and section
7.4 (3) Any service rendered by a teacher after July 1, 1957, for any calendar month
7.5when the member receives salary from which deductions are made, deposited and credited
7.6in the fund
7.7 (4) Any service rendered by a person after July 1, 1957, for any calendar month where
7.8payments in lieu of salary deductions are made, deposited and credited into the fund as
7.9provided in Minnesota Statutes 1980, section 354.09, subdivision 4, and section
7.10 (5) Any service rendered by a teacher for which the teacher elected to obtain credit
7.11for service by making payments to the fund
7.12section 354.09, subdivisions 1 and 4, sections 354.50, 354.51, Minnesota Statutes 1957,
7.13section 135.41, subdivision 4, Minnesota Statutes 1971, section 354.09, subdivision 2, or
7.14Minnesota Statutes, 1973 Supplement, section 354.09, subdivision 3
7.15 (6) Both service during years of actual membership in the course of which
7.16contributions were currently made and service in years during which the teacher was not a
7.17member but for which the teacher later elected to obtain credit by making payments to the
7.18fund as permitted by any law then in effect
7.19 (7) Any service rendered where contributions were made and no credit was
7.20established because of the limitations contained in Minnesota Statutes 1957, section
7.21135.09, subdivision 2, as determined by the ratio between the amounts of money credited
7.22to the teacher's account in a fiscal year and the maximum retirement contribution allowable
7.23for that year
7.24 (8) MS 2002 [Expired]
7.25 (9) A period of time during which a teacher was on strike without pay, not to exceed a
7.26period of one year, if payment in lieu of salary deductions is made under section
7.27 (10) A period of service before July 1, 2006, that was properly credited as allowable
7.28service by the Minneapolis Teachers Retirement Fund Association, and that was rendered
7.29by a teacher as an employee of Special School District No. 1, Minneapolis, or by an
7.30employee of the Minneapolis Teachers Retirement Fund Association who was a member
7.31of the Minneapolis Teachers Retirement Fund Association by virtue of that employment,
7.32who has not begun receiving an annuity or other retirement benefit from the former
7.33Minneapolis Teachers Retirement Fund Association calculated in whole or in part on that
7.34service before July 1, 2006, and who has not taken a refund of member contributions
7.35related to that service unless the refund is repaid under section
8.1Service as an employee of Special School District No. 1, Minneapolis, on or after July 1,
8.22006, is "allowable service" only as provided by this chapter
8.3(11) A period of service before July 1, 2015, that was properly credited as allowable
8.4service by the Duluth Teachers Retirement Fund Association, and that was rendered
8.5by a teacher as an employee of Independent School District No. 709, Duluth, or by an
8.6employee of the Duluth Teachers Retirement Fund Association who was a member of the
8.7Duluth Teachers Retirement Fund Association by virtue of that employment, who has not
8.8begun receiving an annuity or other retirement benefit from the former Duluth Teachers
8.9Retirement Fund Association calculated in whole or in part on that service before July
8.101, 2015, and who has not taken a refund of member contributions related to that service
8.11unless the refund is repaid under section
8.12of Independent School District No. 709, Duluth, on or after July 1, 2015, is "allowable
8.13service" only as provided by this chapter.
8.14 Sec. 6. Minnesota Statutes 2012, section 354.42, subdivision 2, is amended to read:
8.15 Subd. 2. Employee contribution. (a) For a basic member, the employee
8.16contribution to the fund is the following percentage of the member's salary:
Period |
Basic Program |
Coordinated Program |
|
from July 1, 2013, until June 30, 2014 |
10.5 percent |
7.0 percent |
|
after June 30, 2014 |
11.0 percent |
7.5 percent |
8.24
8.31contribution rate is effective for the entire salary paid for each employer unit with the
8.32first payroll cycle reported.
8.33
8.34subdivisions 4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must
8.35be adjusted accordingly.
9.1
9.2of a member's salary is paid from other than public funds, the member's employee
9.3contribution must be based on the entire salary received.
9.4 Sec. 7. Minnesota Statutes 2012, section 354.42, subdivision 3, is amended to read:
9.5 Subd. 3. Employer. (a) The regular employer contribution to the fund by Special
9.6School District No. 1, Minneapolis, is an amount equal to the applicable following
9.7percentage of salary of each coordinated member and the applicable
9.8of salary of each basic member
9.16Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
9.17coordinated member or who is a basic member.
9.18(b) The regular employer contribution to the fund by Independent School District
9.19No. 709, Duluth, is an amount equal to the applicable percentage of salary of each old law
9.20or new law coordinated member specified for the coordinated program in paragraph (c).
9.21
9.22equal to the applicable following percentage of the salary of each coordinated member and
9.23the applicable following percentage of the salary of each basic member:
Period |
Coordinated Member |
Basic Member |
|||
from July 1, 2013, until June 30, 2014 |
7.0 percent |
11.0 percent |
|||
after June 30, 2014 |
7.5 percent |
11.5 percent |
9.31contribution rate is effective for the entire salary paid for each employer unit with the
9.32first payroll cycle reported.
9.33
9.344a, 4b, and 4c, the employer contributions under paragraphs (a)
9.35be adjusted accordingly.
10.1 Sec. 8. Minnesota Statutes 2013 Supplement, section 354.436, is amended to read:
10.2354.436 DIRECT STATE AID ON BEHALF OF THE FORMER
10.3
10.4
10.5 Subdivision 1. Aid authorization. The state shall pay $12,954,000 to the Teachers
10.6Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund
10.7Association and shall pay $15,047,000 on behalf of the Duluth Teachers Retirement
10.8Fund Association.
10.9 Subd. 2. Aid appropriation. The commissioner of management and budget shall
10.10pay the aid amounts under subdivision 1 annually on October 1. The amount required
10.11is appropriated annually from the general fund to the commissioner of management and
10.12budget.
10.13 Subd. 3. Aid expiration. The aid amounts specified in this section
10.14 terminate and this section expires on the October 1 next following the date when: (1) the
10.15current assets of the Teachers Retirement Association fund equal or exceed the actuarial
10.16accrued liabilities of the fund as determined in the most recent actuarial valuation report for
10.17the Teachers Retirement Association fund by the actuary retained under section
10.18
10.19
10.20be eligible for a reduction under section 354.42, subdivisions 4a, 4b, 4c, and 4d.
10.21 Sec. 9. Minnesota Statutes 2013 Supplement, section 354.44, subdivision 6, is
10.22amended to read:
10.23 Subd. 6. Computation of formula program retirement annuity. (a) The formula
10.24retirement annuity must be computed in accordance with the applicable provisions of the
10.25formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
10.26section
10.27 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
10.28became a member of the association or a member of a pension fund listed in section
10.30paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
10.31average salary as defined in section
10.32percentages per year of formula service credit shall determine the amount of the annuity to
10.33which the member qualifying therefor is entitled for service rendered before July 1, 2006:
Period |
Coordinated Member |
Basic Member |
|||
Each year of service during first ten |
1.2 percent per year |
2.2 percent per year |
|||
Each year of service thereafter |
1.7 percent per year |
2.7 percent per year |
11.7who was a member of the former Duluth Teachers Retirement Fund Association between
11.8January 1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a
11.9member who was a member of the former Duluth Teachers Retirement Fund Association
11.10between January 1, 2013, and June 30, 2015, the average salary as defined in section
11.12determines the amount the annuity to which the member qualifying therefor is entitled:
Period |
Coordinated Member |
Basic Member |
|||
Each year of service during first ten |
1.4 percent per year |
2.2 percent per year |
|||
Each year of service after ten years of service |
1.9 percent per year |
2.7 percent per year |
11.19association or a member of a pension fund listed in section
11.20July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
11.21conjunction with this paragraph than when calculated under paragraph (d), in conjunction
11.22with paragraph (e).
11.23 (ii) Where any member retires prior to normal retirement age under a formula
11.24annuity, the member shall be paid a retirement annuity in an amount equal to the normal
11.25annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
11.26that the member is under normal retirement age at the time of retirement except that for
11.27any member who has 30 or more years of allowable service credit, the reduction shall be
11.28applied only for each month that the member is under age 62.
11.29 (iii) Any member whose attained age plus credited allowable service totals 90 years
11.30is entitled, upon application, to a retirement annuity in an amount equal to the normal
11.31annuity provided in paragraph (b), without any reduction by reason of early retirement.
11.32 (d) This paragraph applies to a member who has become at least 55 years old and
11.33first became a member of the association after June 30, 1989, and to any other member
11.34who has become at least 55 years old and whose annuity amount when calculated under
11.35this paragraph and in conjunction with paragraph (e), is higher than it is when calculated
11.36under paragraph (b), in conjunction with paragraph (c). For a basic member, the average
11.37salary, as defined in section
11.38year of service for a basic member determines the amount of the retirement annuity to
12.1which the basic member is entitled. The annuity of a basic member who was a member of
12.2the former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must
12.3be determined according to the annuity formula under the articles of incorporation of the
12.4former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a
12.5coordinated member, the average salary, as defined in section
12.6multiplied by 1.7 percent for each year of service rendered before July 1, 2006, and by 1.9
12.7percent for each year of service rendered on or after July 1, 2006, for a member other than
12.8a member who was a member of the former Duluth Teachers Retirement Fund Association
12.9between January 1, 2006, and June 30, 2015, and by 1.9 percent for each year of service
12.10rendered on or after July 1, 2013, for a member of the former Duluth Teachers Retirement
12.11Fund Association between January 1, 2013, and June 30, 2015, determines the amount of
12.12the retirement annuity to which the coordinated member is entitled.
12.13 (e) This paragraph applies to a person who has become at least 55 years old and first
12.14becomes a member of the association after June 30, 1989, and to any other member who
12.15has become at least 55 years old and whose annuity is higher when calculated under
12.16paragraph (d) in conjunction with this paragraph than when calculated under paragraph
12.17(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
12.18before the normal retirement age shall be paid the normal annuity provided in paragraph
12.19(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that
12.20would be payable to the employee if the employee deferred receipt of the annuity and the
12.21annuity amount were augmented at an annual rate of three percent compounded annually
12.22from the day the annuity begins to accrue until the normal retirement age if the employee
12.23became an employee before July 1, 2006, and at 2.5 percent compounded annually if the
12.24employee becomes an employee after June 30, 2006. Except in regards to section
12.25this paragraph remains in effect until June 30, 2015.
12.26(f) After June 30, 2020, this paragraph applies to a person who has become at least
12.2755 years old and first becomes a member of the association after June 30, 1989, and to any
12.28other member who has become at least 55 years old and whose annuity is higher when
12.29calculated under paragraph (d) in conjunction with this paragraph than when calculated
12.30under paragraph (b) in conjunction with paragraph (c). An employee who retires under
12.31the formula annuity before the normal retirement age is entitled to receive the normal
12.32annuity provided in paragraph (d). For a person who is at least age 62 or older and has at
12.33least 30 years of service, the annuity must be reduced by an early reduction factor of six
12.34percent per year of the annuity that would be payable to the employee if the employee
12.35deferred receipt of the annuity and the annuity amount were augmented at an annual rate
12.36of three percent compounded annually from the day the annuity begins to accrue until the
13.1normal retirement age if the employee became an employee before July 1, 2006, and at 2.5
13.2percent compounded annually if the employee became an employee after June 30, 2006.
13.3For a person who is not at least age 62 or older and does not have at least 30 years of
13.4service, the annuity would be reduced by an early reduction factor of four percent per year
13.5for ages 55 through 59 and seven percent per year of the annuity that would be payable
13.6to the employee if the employee deferred receipt of the annuity and the annuity amount
13.7were augmented at an annual rate of three percent compounded annually from the day
13.8the annuity begins to accrue until the normal retirement age if the employee became an
13.9employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
13.10became an employee after June 30, 2006.
13.11(g) After June 30, 2015, and before July 1, 2020, for a person who would have
13.12a reduced retirement annuity under either paragraph (e) or (f) if they were applicable,
13.13the employee is entitled to receive a reduced annuity which must be calculated using
13.14a blended reduction factor augmented monthly by 1/60 of the difference between the
13.15reduction required under paragraph (e) and the reduction required under paragraph (f).
13.16 (h) No retirement annuity is payable to a former employee with a salary that exceeds
13.1795 percent of the governor's salary unless and until the salary figures used in computing
13.18the highest five successive years average salary under paragraph (a) have been audited by
13.19the Teachers Retirement Association and determined by the executive director to comply
13.20with the requirements and limitations of section
13.21 Sec. 10. [354.73] RETIREMENT COVERAGE RELATED TO THE FORMER
13.22DULUTH TEACHERS RETIREMENT FUND ASSOCIATION.
13.23 Subdivision 1. Application. This section applies to the retirement coverage of
13.24members of the former Duluth Teachers Retirement Fund Association transferred to the
13.25Teachers Retirement Association by section 45.
13.26 Subd. 2. Teachers Retirement Association as successor in interest. The Teachers
13.27Retirement Association is the successor in interest to all claims which the former Duluth
13.28Teachers Retirement Fund Association may have or may have been able to assert against
13.29any person on June 30, 2015, and is the successor in interest to all claims which could
13.30have been asserted against the former Duluth Teachers Retirement Fund Association,
13.31subject to the following:
13.32(1) the Teachers Retirement Association is not liable for any claim against the
13.33Duluth Teachers Retirement Fund Association, its former board or board members, which
13.34is founded upon a claim of breach of fiduciary duty, where the act or acts constituting the
13.35claimed breach were not done in good faith;
14.1(2) the Teachers Retirement Association may assert any applicable defense to
14.2any claim in any judicial or administrative proceeding that the former Duluth Teachers
14.3Retirement Fund Association or its board would otherwise have been entitled to assert;
14.4(3) the Teachers Retirement Association may assert any applicable defense that it
14.5may assert in its capacity as a statewide agency; and
14.6(4) the Teachers Retirement Association shall indemnify any former fiduciary of the
14.7Duluth Teachers Retirement Fund Association consistent with section
14.8 Subd. 3. Benefit calculation. (a) For every deferred, inactive, disabled, and
14.9retired member of the Duluth Teachers Retirement Fund Association transferred under
14.10subdivision 1, and the survivors of these members, annuities or benefits earned before July
14.111, 2015, other than future postretirement adjustments, must be calculated and paid by the
14.12Teachers Retirement Association under the laws, articles of incorporation, and bylaws of
14.13the former Duluth Teachers Retirement Fund Association that were in effect relative to
14.14the person on the date of the person's termination of active service covered by the former
14.15Duluth Teachers Retirement Fund Association.
14.16(b) Former Duluth Teachers Retirement Fund Association members who retired
14.17before July 1, 2015, must receive postretirement adjustments after January 1, 2015, only
14.18as provided in section
14.19Retirement Fund Association must receive postretirement adjustments after December 31,
14.202015, only as provided in section
14.21(c) This consolidation does not impair or diminish benefits for an active, deferred,
14.22or retired member or a survivor of an active, deferred, or retired member under the
14.23former Duluth Teachers Retirement Fund Association in existence at the time of the
14.24consolidation, except that any future postretirement adjustments must be paid after July 1,
14.252015, in accordance with paragraph (b), and all benefits based on service on or after July
14.261, 2015, must be determined only by laws governing the Teachers Retirement Association.
14.27 Sec. 11. Minnesota Statutes 2012, section 354A.011, subdivision 11, is amended to read:
14.28 Subd. 11. Coordinated member. "Coordinated member" means any member of the
14.29teachers retirement fund association who is covered by any agreement or modification
14.30made between the state and the Secretary of Health, Education and Welfare making the
14.31provisions of the federal Old Age, Survivors and Disability Insurance Act applicable
14.32to certain teachers
14.33
14.34
15.1
15.2
15.3 Sec. 12. Minnesota Statutes 2012, section 354A.011, subdivision 15a, is amended to
15.4read:
15.5 Subd. 15a. Normal retirement age. "Normal retirement age" means age 65 for a
15.6person who first became a member of the coordinated program of the St. Paul Teachers
15.7Retirement Fund Association
15.8
15.9subdivision 3
15.10coordinated program of the St. Paul Teachers Retirement Fund Association
15.11
15.121989, normal retirement age means the higher of age 65 or retirement age, as defined in
15.13United States Code, title 42, section 416(l), as amended, but not to exceed age 66. For a
15.14person who is a member of the basic program of the St. Paul Teachers Retirement Fund
15.15Association
15.16
15.17a normal retirement annuity computed upon meeting the age and service requirements
15.18specified in the applicable provisions of the articles of incorporation or bylaws of the
15.19
15.20 Sec. 13. Minnesota Statutes 2012, section 354A.011, subdivision 27, is amended to read:
15.21 Subd. 27. Teacher. (a) "Teacher" means any person who renders service for a public
15.22school district, other than a charter school, located in the corporate limits of
15.23 St. Paul, as any of the following:
15.24(1) a full-time employee in a position for which a valid license from the state
15.25Department of Education is required;
15.26(2) an employee of the teachers retirement fund association located in the city of
15.27
15.28(3) a part-time employee in a position for which a valid license from the state
15.29Department of Education is required; or
15.30(4) a part-time employee in a position for which a valid license from the state
15.31Department of Education is required who also renders other nonteaching services for the
15.32school district, unless the board of trustees of the teachers retirement fund association
15.33determines that the combined employment is on the whole so substantially dissimilar to
15.34teaching service that the service may not be covered by the association.
16.1(b) The term does not mean any person who renders service in the school district
16.2as any of the following:
16.3(1) an independent contractor or the employee of an independent contractor;
16.4(2) an employee who is a full-time teacher covered by the Teachers Retirement
16.5Association
16.6
16.7(3) an employee who is exempt from licensure pursuant to section
16.8(4) an employee who is a teacher in a technical college located in a city of the first
16.9class unless the person elects coverage by the
16.10fund association under section
16.11(5) a teacher employed by a charter school, irrespective of the location of the
16.12school; or
16.13(6) an employee who is a part-time teacher in a technical college in
16.14
16.15retirement fund association under section
16.16service is incidental to the regular nonteaching occupation of the person; (ii) the applicable
16.17technical college stipulates annually in advance that the part-time teaching service will not
16.18exceed 300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed
16.19300 hours in the fiscal year to which the certification applies.
16.20 Sec. 14. Minnesota Statutes 2012, section 354A.021, subdivision 1, is amended to read:
16.21 Subdivision 1. Establishment. There is established a teachers retirement fund
16.22association in
16.23 association is known
16.24
16.25 is a continuation of the teachers retirement fund association with the same corporate
16.26name established
16.27343, section 1.
16.28 Sec. 15. Minnesota Statutes 2012, section 354A.092, is amended to read:
16.29354A.092 SABBATICAL LEAVE.
16.30Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
16.31Association
16.32
16.33receive allowable service credit in the
16.34leave. To obtain the service credit, the teacher on sabbatical leave shall make an employee
17.1contribution to the
17.2than three years of allowable service credit
17.3periods of sabbatical leave during any ten consecutive
17.4
17.5sabbatical leave makes the employee contribution for a period of sabbatical leave
17.6
17.7the teacher to the
17.8described in section
17.9
17.10for other active members of the association covered by the same program applied to a salary
17.11figure equal to the teacher's actual covered salary for the plan year immediately preceding
17.12the sabbatical leave period. Payment of the employee contribution authorized
17.13
17.14next following the year in which the sabbatical leave terminated and
17.15without interest. For sabbatical leaves taken after June 30, 1986, the required employer
17.16contributions
17.17the association of the amount due. If the employee contributions for the sabbatical leave
17.18period are less than an amount equal to the applicable contribution rate applied to a salary
17.19figure equal to the teacher's actual covered salary for the plan year immediately preceding
17.20the sabbatical leave period, service credit
17.21credit
17.22which was made and the full contribution amount payable
17.23 Sec. 16. Minnesota Statutes 2012, section 354A.093, subdivision 1, is amended to read:
17.24 Subdivision 1. Eligibility. Any teacher in the coordinated program of the St. Paul
17.25Teachers Retirement Fund Association
17.26
17.27reason of service in the uniformed services as defined in United States Code, title 38,
17.28section 4303(13) and who returns to the employer providing active teaching service upon
17.29discharge from uniformed service within the time frames required under United States
17.30Code, title 38, section 4312(e), may receive allowable service credit in the
17.31 association for all or a portion of the period of uniformed service, provided that the teacher
17.32did not separate from uniformed service with a dishonorable or bad conduct discharge
17.33or under other than honorable conditions.
18.1 Sec. 17. Minnesota Statutes 2012, section 354A.096, is amended to read:
18.2354A.096 MEDICAL LEAVE.
18.3Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
18.4Association
18.5
18.6teaching service is entitled to receive allowable service credit, not to exceed one year, for
18.7the period of leave, upon making the prescribed payment to the fund. This payment must
18.8include the required employee and employer contributions at the rates specified in section
18.10salary rate on the date the leave of absence commenced plus annual interest at the rate of
18.118.5 percent per year from the end of the fiscal year during which the leave terminates to the
18.12end of the month during which payment is made. The member must pay the total amount
18.13required unless the employing unit, at its option, pays the employer contributions. The total
18.14amount required must be paid by the end of the fiscal year following the fiscal year in which
18.15the leave of absence terminated or before the member retires, whichever is earlier. Payment
18.16must be accompanied by a copy of the resolution or action of the employing authority
18.17granting the leave and the employing authority, upon granting the leave, must certify the
18.18leave to the association in a manner specified by the executive director. A member may not
18.19receive more than one year of allowable service credit during any fiscal year by making
18.20payment under this section. A member may not receive disability benefits under section
18.22 Sec. 18. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 1, is
18.23amended to read:
18.24 Subdivision 1. Employee contributions. (a) The contribution required to be paid
18.25by each member of
18.26of total salary specified below for the applicable association and program:
Percentage of Total Salary |
||
St. Paul Teachers Retirement Fund Association |
||
basic program after June 30, 2014 |
9.0 percent |
|
basic program after June 30, 2015 |
9.5 percent |
|
basic program after June 30, 2016 |
10.0 percent |
|
coordinated program after June 30, 2014 |
6.5 percent |
|
coordinated program after June 30, 2015 |
7.0 percent |
|
coordinated program after June 30, 2016 |
7.5 percent |
19.10directly to the
19.11each month.
19.12(c) When an employee contribution rate changes for a fiscal year, the new
19.13contribution rate is effective for the entire salary paid by the employer with the first
19.14payroll cycle reported.
19.15 Sec. 19. Minnesota Statutes 2012, section 354A.12, subdivision 2, is amended to read:
19.16 Subd. 2. Retirement contribution levy disallowed. Except as provided in
19.17section
19.18notwithstanding any law to the contrary, levies for the St. Paul Teachers Retirement Fund
19.19
19.20employer Social Security taxes for teachers covered by the
19.21
19.22 Sec. 20. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 2a,
19.23is amended to read:
19.24 Subd. 2a. Employer regular and additional contributions. (a) The employing
19.25units shall make the following employer contributions to the teachers retirement fund
19.26
19.27(1) for any coordinated member of
19.28Retirement Fund
19.29shall make a regular employer contribution to the
19.30an amount equal to the designated percentage of the salary of the coordinated member
19.31as provided below:
after June 30, 2014 |
5.5 percent |
|
after June 30, 2015 |
6.0 percent |
|
after June 30, 2016 |
6.25 percent |
|
after June 30, 2017 |
6.5 percent |
20.9employing unit shall make a regular employer contribution to the respective retirement
20.10fund in an amount according to the schedule below:
after June 30, 2014 |
9.0 percent of salary |
|
after June 30, 2015 |
9.5 percent of salary |
|
after June 30, 2016 |
9.75 percent of salary |
|
after June 30, 2017 |
10.0 percent of salary |
20.18employing unit shall make an additional employer contribution to the respective fund in
20.19an amount equal to 3.64 percent of the salary of the basic member;
20.20(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
20.21the employing unit shall make an additional employer contribution to the respective fund
20.22in an amount equal to
20.23salary
20.26the
20.27Delinquent amounts are payable with interest under the procedure in subdivision 1a.
20.28(c) Payments of regular and additional employer contributions for school district
20.29or technical college employees who are paid from normal operating funds must be made
20.30from the appropriate fund of the district or technical college.
20.31(d) When an employer contribution rate changes for a fiscal year, the new
20.32contribution rate is effective for the entire salary paid by the employer with the first
20.33payroll cycle reported.
20.34 Sec. 21. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3a,
20.35is amended to read:
21.1 Subd. 3a. Special direct state aid to first class city teachers retirement fund
21.2associations. (a) The state shall pay
21.3
21.4Fund Association.
21.5 (b) The
21.6commissioner of management and budget shall pay the aids specified in this subdivision.
21.7The amounts required are appropriated annually from the general fund to the commissioner
21.8of management and budget.
21.9 Sec. 22. Minnesota Statutes 2012, section 354A.31, subdivision 1, is amended to read:
21.10 Subdivision 1. Age and service requirements. Any coordinated member or former
21.11coordinated member of the
21.12Paul Teachers Retirement Fund Association who has ceased to render teaching service for
21.13
21.14 No. 625, who is vested and who has either attained the age of at least 55 years or received
21.15credit for not less than 30 years of allowable service regardless of age,
21.16upon written application to a retirement annuity.
21.17 Sec. 23. Minnesota Statutes 2012, section 354A.32, subdivision 1, is amended to read:
21.18 Subdivision 1. Optional forms generally. The board of the St. Paul Teachers
21.19Retirement Fund Association shall establish for the coordinated program
21.20
21.21
21.22a joint and survivor annuity.
21.23optional annuity which
21.24and for life thereafter.
21.25that guarantees payment of the balance of the annuity recipient's accumulated deductions
21.26to a designated beneficiary upon the death of the annuity recipient. Except as provided in
21.27subdivision 1a, the optional annuity forms
21.28normal forms provided in section
21.29the board shall obtain the written recommendation of the actuary retained under section
21.31 Sec. 24. Minnesota Statutes 2012, section 354A.35, subdivision 1, is amended to read:
21.32 Subdivision 1. Death before retirement; refund. If a coordinated member or
21.33former coordinated member dies
22.1of any retirement annuity or other benefit payment which is or may be payable and a
22.2surviving spouse optional annuity is not payable
22.3refund
22.4person's designated beneficiary, or if there is none, to the legal representative of the
22.5person's estate. For a coordinated member or former coordinated member of the St. Paul
22.6Teachers Retirement Fund Association, the refund
22.7person's accumulated employee contributions plus interest at the rate of six percent per
22.8annum compounded annually.
22.9
22.10
22.11
22.12
22.13 Sec. 25. Minnesota Statutes 2012, section 354A.37, subdivision 3, is amended to read:
22.14 Subd. 3. Computation of refund amount. A former coordinated member who
22.15qualifies for a refund under subdivision 1
22.16amount of the former coordinated member's accumulated employee contributions with
22.17interest at the rate of six percent per annum compounded annually to
22.18
22.19 July 1, 2011, if the person is a former member of the St. Paul Teachers Retirement Fund
22.20Association, and four percent per annum compounded annually thereafter.
22.21 Sec. 26. Minnesota Statutes 2012, section 354A.37, subdivision 4, is amended to read:
22.22 Subd. 4. Certain refunds at normal retirement age. Any coordinated member
22.23who has attained the normal retirement age with less than ten years of allowable service
22.24credit and has terminated active teaching service
22.25proportionate annuity under section
22.26member's accumulated employee contributions plus interest at the rate of six percent
22.27compounded annually to
22.28
22.29member of the St. Paul Teachers Retirement Fund Association, and four percent per
22.30annum compounded annually thereafter.
22.31 Sec. 27. Minnesota Statutes 2012, section 354A.39, is amended to read:
22.32354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
23.1Any person who has been a member of the Minnesota State Retirement System, the
23.2Public Employees Retirement Association including the Public Employees Retirement
23.3Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota
23.4State Patrol Retirement Association, the legislators retirement plan, the constitutional
23.5officers retirement plan,
23.6
23.7program, or any other public employee retirement system in the state of Minnesota
23.8having a like provision, but excluding all other funds providing retirement benefits for
23.9police officers or firefighters, is entitled, when qualified, to an annuity from each fund if
23.10the person's total allowable service in all of the funds or in any two or more of the funds
23.11totals three or more years, provided that no portion of the allowable service upon which
23.12the retirement annuity from one fund is based is used again in the computation for a
23.13retirement annuity from another fund and provided further that the person has not taken a
23.14refund from any of funds or associations since the person's membership in the fund or
23.15association has terminated. The annuity from each fund or association must be determined
23.16by the appropriate provisions of the law governing each fund or association, except that
23.17the requirement that a person must have at least three years of allowable service in the
23.18respective fund or association does not apply for the purposes of this section, provided
23.19that the aggregate service in two or more of these funds equals three or more years.
23.20 Sec. 28. Minnesota Statutes 2012, section 354A.41, is amended to read:
23.21354A.41 ADMINISTRATION OF COORDINATED PROGRAM.
23.22 Subdivision 1. Administrative provisions. The provisions of the articles of
23.23incorporation and bylaws of the St. Paul Teachers Retirement Fund Association relating
23.24to the administration of the fund shall govern the administration of the coordinated and
23.25basic programs
23.26
23.27
23.28administrative provisions are not inconsistent with the provisions of sections
23.30of the board of trustees, the investment of assets of the St. Paul Teachers Retirement Fund
23.31Association, and the definition of the plan year. The administrative provisions in the
23.32articles of incorporation and the bylaws of the Minneapolis Teachers Retirement Fund
23.33Association pertaining to the granting of pension benefits of the basic and coordinated
23.34programs are no longer in effect after June 30, 2006, and the administrative provisions of
24.1the Duluth Teachers Retirement Fund Association pertaining to retirement benefits of the
24.2old law coordinated program are no longer in effect after June 30, 2015.
24.3 Subd. 2. Actuarial valuations. In any actuarial valuation of the St. Paul Teachers
24.4Retirement Fund Association
24.5section
24.6actuarial valuation prepared by an approved actuary retained by the St. Paul Teachers
24.7Retirement Fund Association, there
24.8fund showing separately the basic and coordinated programs
24.9
24.10normal cost and the applicable employee and employer contribution rates for each program.
24.11 Sec. 29. Minnesota Statutes 2012, section 354B.21, subdivision 3a, is amended to read:
24.12 Subd. 3a. Plan coverage and election; certain past service technical college
24.13faculty. (a) Notwithstanding subdivision 3, if an employee of the board was employed in
24.14a faculty position in a technical college on June 30, 1997, with coverage by the Teachers
24.15Retirement Association, the employee retains that coverage. If the employee was a
24.16technical college faculty member on June 30, 1995, covered by a first class city teacher
24.17retirement fund established under chapter 354A, the retirement coverage continues with
24.18the
24.19Fund Association, whichever is applicable. If the person was a technical college faculty
24.20member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund
24.21Association or the former Duluth Teachers Retirement Fund Association, the Teachers
24.22Retirement Association shall provide coverage.
24.23(b) An employee under paragraph (a) who has coverage by
24.24
24.25duration of the person's employment by the board unless, within one year of a change in
24.26employment within the Minnesota State Colleges and Universities system, the person
24.27elects the individual retirement account plan for all future employment by the board.
24.28The election is irrevocable.
24.29 Sec. 30. Minnesota Statutes 2012, section 355.01, subdivision 2c, is amended to read:
24.30 Subd. 2c. Duluth teacher. "Duluth teacher" means a person employed by
24.31Independent School District No. 709, Duluth, who holds a position covered by the
24.32 Teachers Retirement
25.1 Sec. 31. Minnesota Statutes 2013 Supplement, section 356.20, subdivision 2, is
25.2amended to read:
25.3 Subd. 2. Covered public pension plans and funds. This section applies to the
25.4following public pension plans:
25.5 (1) the general state employees retirement plan of the Minnesota State Retirement
25.6System;
25.7 (2) the general employees retirement plan of the Public Employees Retirement
25.8Association;
25.9 (3) the Teachers Retirement Association;
25.10 (4) the State Patrol retirement plan;
25.11 (5) the St. Paul Teachers Retirement Fund Association;
25.12
25.13
25.14
25.15
25.16
25.17
25.18
25.19Retirement Association;
25.20
25.21Retirement System;
25.22
25.23Employees Retirement Association; and
25.24
25.25 Sec. 32. Minnesota Statutes 2013 Supplement, section 356.214, subdivision 1, is
25.26amended to read:
25.27 Subdivision 1. Actuary retention. (a) The governing board or managing or
25.28administrative official of each public pension plan and retirement fund or plan enumerated
25.29in paragraph (b) shall contract with an established actuarial consulting firm to conduct
25.30annual actuarial valuations and related services. The principal from the actuarial
25.31consulting firm on the contract must be an approved actuary under section
25.32subdivision 1
25.33 (b) Actuarial services must include the preparation of actuarial valuations and
25.34related actuarial work for the following retirement plans:
25.35 (1) the teachers retirement plan, Teachers Retirement Association;
26.1 (2) the general state employees retirement plan, Minnesota State Retirement System;
26.2 (3) the correctional employees retirement plan, Minnesota State Retirement System;
26.3 (4) the State Patrol retirement plan, Minnesota State Retirement System;
26.4 (5) the judges retirement plan, Minnesota State Retirement System;
26.5 (6) the general employees retirement plan, Public Employees Retirement
26.6Association, including the MERF division;
26.7 (7) the public employees police and fire plan, Public Employees Retirement
26.8Association;
26.9
26.10
26.11
26.12Association;
26.13
26.14
26.15Employees Retirement Association.
26.16(c) The actuarial valuation for the legislators retirement plan must include a separate
26.17calculation of total plan actuarial accrued liabilities due to constitutional officer coverage
26.18under section
26.19 (d) The contracts must require completion of the annual actuarial valuation
26.20calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
26.21as specified in section
26.22adopted by the Legislative Commission on Pensions and Retirement.
26.23 The contracts must require completion of annual experience data collection and
26.24processing and a quadrennial published experience study for the plans listed in paragraph
26.25(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by
26.26the commission. The experience data collection, processing, and analysis must evaluate
26.27the following:
26.28 (1) individual salary progression;
26.29 (2) the rate of return on investments based on the current asset value;
26.30 (3) payroll growth;
26.31 (4) mortality;
26.32 (5) retirement age;
26.33 (6) withdrawal; and
26.34 (7) disablement.
26.35 (e) The actuary shall annually prepare a report to the governing or managing board
26.36or administrative official and the legislature, summarizing the results of the actuarial
27.1valuation calculations. The actuary shall include with the report any recommendations
27.2concerning the appropriateness of the support rates to achieve proper funding of
27.3the retirement plans by the required funding dates. The actuary shall, as part of the
27.4quadrennial experience study, include recommendations on the appropriateness of the
27.5actuarial valuation assumptions required for evaluation in the study.
27.6 (f) If the actuarial gain and loss analysis in the actuarial valuation calculations
27.7indicates a persistent pattern of sizable gains or losses, the governing or managing board
27.8or administrative official shall direct the actuary to prepare a special experience study for a
27.9plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10),
27.10provided for in the standards for actuarial work adopted by the commission.
27.11 Sec. 33. Minnesota Statutes 2013 Supplement, section 356.215, subdivision 8, is
27.12amended to read:
27.13 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
27.14the applicable following preretirement interest assumption and the applicable following
27.15postretirement interest assumption:
27.16(1) select and ultimate interest rate assumption
plan |
ultimate preretirement interest rate assumption |
ultimate postretirement interest rate 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, and for the constitutional officers calculation of total plan liabilities |
0.0 |
0.0 |
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 |
teachers retirement plan |
8.5 |
6.0 |
St. Paul teachers retirement plan |
8.5 |
8.5 |
27.36of total plan liabilities, the select preretirement interest rate assumption for the period
27.37after June 30, 2012, through June 30, 2017, is 8.0 percent. Except for the legislators
27.38retirement plan and the constitutional officers calculation of total plan liabilities, the select
27.39postretirement interest rate assumption for the period after June 30, 2012, through June
28.130, 2017, is 5.5 percent, except for
28.2teachers retirement plan, each with a select postretirement interest rate assumption for the
28.3period after June 30, 2012, through June 30, 2017, of 8.0 percent.
28.4(2) single rate preretirement and postretirement interest rate assumption
plan |
interest rate assumption |
|
Bloomington Fire Department Relief Association |
6.0 |
|
local monthly benefit volunteer firefighters relief associations |
5.0 |
28.11increase assumption, the applicable following modified single rate future salary increase
28.12assumption, or the applicable following graded rate future salary increase assumption:
28.13 (1) single rate future salary increase assumption
plan |
future salary increase assumption |
|
legislators retirement plan |
5.0% |
|
judges retirement plan |
3.0 |
|
Bloomington Fire Department Relief Association |
4.0 |
28.20increase assumption or graded rate future salary increase assumption
plan |
future salary increase assumption |
local government correctional service retirement plan |
assumption |
St. Paul teachers retirement plan |
assumption |
28.26teachers retirement plan and the local
28.27government correctional service retirement
28.28plan, the select calculation is: during the
28.29designated select period, a designated
28.30percentage rate is multiplied by the result of
28.31the designated integer minus T, where T is the
28.32number of completed years of service, and is
28.33added to the applicable future salary increase
28.34assumption. The designated select period is
28.35ten years and the designated integer is ten
28.36
28.37
28.38correctional service retirement plan and 15
29.1for the St. Paul Teachers Retirement Fund
29.2Association. The designated percentage
29.3rate is 0.2 percent for the St. Paul Teachers
29.4Retirement Fund Association.
29.5
29.6
29.7
29.8
29.9
29.10
29.11 The ultimate future salary increase assumption is:
age |
||||
16 |
5.90% |
9.00% |
||
17 |
5.90 |
9.00 |
||
18 |
5.90 |
9.00 |
||
19 |
5.90 |
9.00 |
||
20 |
5.90 |
9.00 |
||
21 |
5.90 |
8.75 |
||
22 |
5.90 |
8.50 |
||
23 |
5.85 |
8.25 |
||
24 |
5.80 |
8.00 |
||
25 |
5.75 |
7.75 |
||
26 |
5.70 |
7.50 |
||
27 |
5.65 |
7.25 |
||
28 |
5.60 |
7.00 |
||
29 |
5.55 |
6.75 |
||
30 |
5.50 |
6.75 |
||
31 |
5.45 |
6.50 |
||
32 |
5.40 |
6.50 |
||
33 |
5.35 |
6.50 |
||
34 |
5.30 |
6.25 |
||
35 |
5.25 |
6.25 |
||
36 |
5.20 |
6.00 |
||
37 |
5.15 |
6.00 |
||
38 |
5.10 |
6.00 |
||
39 |
5.05 |
5.75 |
||
40 |
5.00 |
5.75 |
||
41 |
4.95 |
5.75 |
||
42 |
4.90 |
5.50 |
||
43 |
4.85 |
5.25 |
||
44 |
4.80 |
5.25 |
||
45 |
4.75 |
5.00 |
||
46 |
4.70 |
5.00 |
||
47 |
4.65 |
5.00 |
||
48 |
4.60 |
5.00 |
||
49 |
4.55 |
5.00 |
||
50 |
4.50 |
5.00 |
||
51 |
4.45 |
5.00 |
||
52 |
4.40 |
5.00 |
||
53 |
4.35 |
5.00 |
||
54 |
4.30 |
5.00 |
||
55 |
4.25 |
4.75 |
||
56 |
4.20 |
4.75 |
||
57 |
4.15 |
4.50 |
||
58 |
4.10 |
4.25 |
||
59 |
4.05 |
4.25 |
||
60 |
4.00 |
4.25 |
||
61 |
4.00 |
4.25 |
||
62 |
4.00 |
4.25 |
||
63 |
4.00 |
4.25 |
||
64 |
4.00 |
4.25 |
||
65 |
4.00 |
4.00 |
||
66 |
4.00 |
4.00 |
||
67 |
4.00 |
4.00 |
||
68 |
4.00 |
4.00 |
||
69 |
4.00 |
4.00 |
||
70 |
4.00 |
4.00 |
general state employees retirement plan of the Minnesota State Retirement System |
assumption A |
general employees retirement plan of the Public Employees Retirement Association |
assumption B |
Teachers Retirement Association |
assumption C |
public employees police and fire retirement plan |
assumption D |
State Patrol retirement plan |
assumption E |
correctional state employees retirement plan of the Minnesota State Retirement System |
assumption F |
service length |
A |
B |
C |
D |
E |
F |
1 |
10.50% |
12.03% |
12.00% |
13.00% |
8.00% |
6.00% |
2 |
8.10 |
8.90 |
9.00 |
11.00 |
7.50 |
5.85 |
3 |
6.90 |
7.46 |
8.00 |
9.00 |
7.00 |
5.70 |
4 |
6.20 |
6.58 |
7.50 |
8.00 |
6.75 |
5.55 |
5 |
5.70 |
5.97 |
7.25 |
6.50 |
6.50 |
5.40 |
6 |
5.30 |
5.52 |
7.00 |
6.10 |
6.25 |
5.25 |
7 |
5.00 |
5.16 |
6.85 |
5.80 |
6.00 |
5.10 |
8 |
4.70 |
4.87 |
6.70 |
5.60 |
5.85 |
4.95 |
9 |
4.50 |
4.63 |
6.55 |
5.40 |
5.70 |
4.80 |
10 |
4.40 |
4.42 |
6.40 |
5.30 |
5.55 |
4.65 |
11 |
4.20 |
4.24 |
6.25 |
5.20 |
5.40 |
4.55 |
12 |
4.10 |
4.08 |
6.00 |
5.10 |
5.25 |
4.45 |
13 |
4.00 |
3.94 |
5.75 |
5.00 |
5.10 |
4.35 |
14 |
3.80 |
3.82 |
5.50 |
4.90 |
4.95 |
4.25 |
15 |
3.70 |
3.70 |
5.25 |
4.80 |
4.80 |
4.15 |
16 |
3.60 |
3.60 |
5.00 |
4.80 |
4.65 |
4.05 |
17 |
3.50 |
3.51 |
4.75 |
4.80 |
4.50 |
3.95 |
18 |
3.50 |
3.50 |
4.50 |
4.80 |
4.35 |
3.85 |
19 |
3.50 |
3.50 |
4.25 |
4.80 |
4.20 |
3.75 |
20 |
3.50 |
3.50 |
4.00 |
4.80 |
4.05 |
3.75 |
21 |
3.50 |
3.50 |
3.90 |
4.70 |
4.00 |
3.75 |
22 |
3.50 |
3.50 |
3.80 |
4.60 |
4.00 |
3.75 |
23 |
3.50 |
3.50 |
3.70 |
4.50 |
4.00 |
3.75 |
24 |
3.50 |
3.50 |
3.60 |
4.50 |
4.00 |
3.75 |
25 |
3.50 |
3.50 |
3.50 |
4.50 |
4.00 |
3.75 |
26 |
3.50 |
3.50 |
3.50 |
4.50 |
4.00 |
3.75 |
27 |
3.50 |
3.50 |
3.50 |
4.50 |
4.00 |
3.75 |
28 |
3.50 |
3.50 |
3.50 |
4.50 |
4.00 |
3.75 |
29 |
3.50 |
3.50 |
3.50 |
4.50 |
4.00 |
3.75 |
30 or more |
3.50 |
3.50 |
3.50 |
4.50 |
4.00 |
3.75 |
31.27assumption for calculating the amortization requirement for the unfunded actuarial
31.28accrued liability where the amortization retirement is calculated as a level percentage
31.29of an increasing payroll:
plan |
payroll growth assumption |
general state employees retirement plan of the Minnesota State Retirement System |
3.75% |
correctional state employees retirement plan |
3.75 |
State Patrol retirement plan |
3.75 |
judges retirement plan |
3.00 |
general employees retirement plan of the Public Employees Retirement Association |
3.75 |
public employees police and fire retirement plan |
3.75 |
local government correctional service retirement plan |
3.75 |
teachers retirement plan |
3.75 |
St. Paul teachers retirement plan |
4.00 |
32.2different salary assumption or a different payroll increase assumption:
32.3 (1) has been proposed by the governing board of the applicable retirement plan;
32.4 (2) is accompanied by the concurring recommendation of the actuary retained under
32.5section
32.6most recent actuarial valuation report if section
32.7 (3) has been approved or deemed approved under subdivision 18.
32.8 Sec. 34. Minnesota Statutes 2013 Supplement, section 356.219, subdivision 8, is
32.9amended to read:
32.10 Subd. 8. Timing of reports. (a) For the Bloomington Fire Department Relief
32.11Association and the volunteer firefighter relief associations, the information required
32.12under this section must be submitted by the due date for reports required under section
32.14a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered
32.15by the report required under section
32.16administrative officer of the covered pension plan shall certify that compliance on a form
32.17prescribed by the state auditor. The state auditor shall transmit annually to the State Board
32.18of Investment a list or lists of covered pension plans which submitted certifications in
32.19order to facilitate reporting by the State Board of Investment under paragraph (c).
32.20(b) For the St. Paul Teachers Retirement Fund Association
32.21
32.22retirement plan, the information required under this section must be submitted to the state
32.23auditor by June 1 of each year.
32.24(c) The State Board of Investment, on behalf of pension funds specified in
32.25subdivision 1, paragraph (c),
32.26September 1 of each year.
32.27 Sec. 35. Minnesota Statutes 2013 Supplement, section 356.30, subdivision 3, is
32.28amended to read:
32.29 Subd. 3. Covered plans. This section applies to the following retirement plans:
32.30(1) the general state employees retirement plan of the Minnesota State Retirement
32.31System, established under chapter 352;
32.32(2) the correctional state employees retirement plan of the Minnesota State
32.33Retirement System, established under chapter 352;
32.34(3) the unclassified employees retirement program, established under chapter 352D;
33.1(4) the State Patrol retirement plan, established under chapter 352B;
33.2(5) the legislators retirement plan, established under chapter 3A, including
33.3constitutional officers as specified in that chapter;
33.4(6) the general employees retirement plan of the Public Employees Retirement
33.5Association, established under chapter 353, including the MERF division of the Public
33.6Employees Retirement Association;
33.7(7) the public employees police and fire retirement plan of the Public Employees
33.8Retirement Association, established under chapter 353;
33.9(8) the local government correctional service retirement plan of the Public
33.10Employees Retirement Association, established under chapter 353E;
33.11(9) the Teachers Retirement Association, established under chapter 354;
33.12(10) the St. Paul Teachers Retirement Fund Association, established under chapter
33.13354A; and
33.14
33.15
33.16
33.17 Sec. 36. Minnesota Statutes 2012, section 356.302, subdivision 7, is amended to read:
33.18 Subd. 7. Covered retirement plans. This section applies to the following
33.19retirement plans:
33.20(1) the general state employees retirement plan of the Minnesota State Retirement
33.21System, established by chapter 352;
33.22(2) the unclassified state employees retirement program of the Minnesota State
33.23Retirement System, established by chapter 352D;
33.24(3) the general employees retirement plan of the Public Employees Retirement
33.25Association, established by chapter 353, including the MERF division of the Public
33.26Employees Retirement Association;
33.27(4) the Teachers Retirement Association, established by chapter 354;
33.28
33.29
33.30354A;
33.31
33.32Retirement System, established by chapter 352;
33.33
33.34
33.35Association, established by chapter 353;
34.1
34.2Employees Retirement Association, established by chapter 353E; and
34.3
34.4 Sec. 37. Minnesota Statutes 2012, section 356.303, subdivision 4, is amended to read:
34.5 Subd. 4. Covered retirement plans. This section applies to the following
34.6retirement plans:
34.7(1) the legislators retirement plan, established by chapter 3A;
34.8(2) the general state employees retirement plan of the Minnesota State Retirement
34.9System, established by chapter 352;
34.10(3) the correctional state employees retirement plan of the Minnesota State
34.11Retirement System, established by chapter 352;
34.12(4) the State Patrol retirement plan, established by chapter 352B;
34.13(5) the elective state officers retirement plan, established by chapter 352C;
34.14(6) the unclassified state employees retirement program, established by chapter 352D;
34.15(7) the general employees retirement plan of the Public Employees Retirement
34.16Association, established by chapter 353, including the MERF division of the Public
34.17Employees Retirement Association;
34.18(8) the public employees police and fire plan of the Public Employees Retirement
34.19Association, established by chapter 353;
34.20(9) the local government correctional service retirement plan of the Public
34.21Employees Retirement Association, established by chapter 353E;
34.22(10) the Teachers Retirement Association, established by chapter 354;
34.23
34.24
34.25354A; and
34.26
34.27 Sec. 38. Minnesota Statutes 2012, section 356.32, subdivision 2, is amended to read:
34.28 Subd. 2. Covered retirement plans. The provisions of this section apply to the
34.29following retirement plans:
34.30(1) the general state employees retirement plan of the Minnesota State Retirement
34.31System, established under chapter 352;
34.32(2) the correctional state employees retirement plan of the Minnesota State
34.33Retirement System, established under chapter 352;
34.34(3) the State Patrol retirement plan, established under chapter 352B;
35.1(4) the general employees retirement plan of the Public Employees Retirement
35.2Association, established under chapter 353, including the MERF division of the Public
35.3Employees Retirement Association;
35.4(5) the public employees police and fire plan of the Public Employees Retirement
35.5Association, established under chapter 353;
35.6(6) the Teachers Retirement Association, established under chapter 354; and
35.7
35.8
35.9
35.10354A.
35.11 Sec. 39. Minnesota Statutes 2013 Supplement, section 356.401, subdivision 3, is
35.12amended to read:
35.13 Subd. 3. Covered retirement plans. The provisions of this section apply to the
35.14following retirement plans:
35.15(1) the legislators retirement plan, established by chapter 3A, including constitutional
35.16officers as specified in that chapter;
35.17(2) the general state employees retirement plan of the Minnesota State Retirement
35.18System, established by chapter 352;
35.19(3) the correctional state employees retirement plan of the Minnesota State
35.20Retirement System, established by chapter 352;
35.21(4) the State Patrol retirement plan, established by chapter 352B;
35.22(5) the unclassified state employees retirement program, established by chapter 352D;
35.23(6) the general employees retirement plan of the Public Employees Retirement
35.24Association, established by chapter 353, including the MERF division of the Public
35.25Employees Retirement Association;
35.26(7) the public employees police and fire plan of the Public Employees Retirement
35.27Association, established by chapter 353;
35.28(8) the public employees defined contribution plan, established by chapter 353D;
35.29(9) the local government correctional service retirement plan of the Public
35.30Employees Retirement Association, established by chapter 353E;
35.31(10) the voluntary statewide lump-sum volunteer firefighter retirement plan,
35.32established by chapter 353G;
35.33(11) the Teachers Retirement Association, established by chapter 354;
35.34
36.1
36.2354A;
36.3
36.4
36.5354C; and
36.6
36.7 Sec. 40. Minnesota Statutes 2012, section 356.42, subdivision 3, is amended to read:
36.8 Subd. 3. Covered retirement plans. The postretirement adjustment provided in
36.9this section applies to the following retirement funds:
36.10(1) the general employees retirement plans of the Public Employees Retirement
36.11Association;
36.12(2) the public employees police and fire plan of the Public Employees Retirement
36.13Association;
36.14(3) the teachers retirement association;
36.15(4) the State Patrol retirement plan;
36.16(5) the state employees retirement plan of the Minnesota State Retirement System;
36.17 and
36.18(6) the St. Paul Teachers Retirement Fund Association established under chapter
36.19354A
36.20
36.21
36.22 Sec. 41. Minnesota Statutes 2012, section 356.465, subdivision 3, is amended to read:
36.23 Subd. 3. Covered retirement plans. The provisions of this section apply to the
36.24following retirement plans:
36.25(1) the general state employees retirement plan of the Minnesota State Retirement
36.26System established under chapter 352;
36.27(2) the correctional state employees retirement plan of the Minnesota State
36.28Retirement System established under chapter 352;
36.29(3) the State Patrol retirement plan established under chapter 352B;
36.30(4) the legislators retirement plan established under chapter 3A;
36.31(5) the judges retirement plan established under chapter 490;
36.32(6) the general employees retirement plan of the Public Employees Retirement
36.33Association established under chapter 353, including the MERF division of the Public
36.34Employees Retirement Association;
37.1(7) the public employees police and fire plan of the Public Employees Retirement
37.2Association established under chapter 353;
37.3(8) the teachers retirement plan established under chapter 354;
37.4
37.5
37.6
37.7chapter 354A; and
37.8
37.9Employees Retirement Association established under chapter 353E.
37.10 Sec. 42. Minnesota Statutes 2012, section 356.47, subdivision 3, is amended to read:
37.11 Subd. 3. Payment. (a) Beginning one year after the reemployment withholding
37.12period ends relating to the reemployment that gave rise to the limitation, and the filing of a
37.13written application, the retired member is entitled to the payment, in a lump sum, of the
37.14value of the person's amount under subdivision 2, plus annual compound interest. For the
37.15general state employees retirement plan, the correctional state employees retirement plan,
37.16the general employees retirement plan of the Public Employees Retirement Association,
37.17the public employees police and fire retirement plan, the local government correctional
37.18employees retirement plan, and the teachers retirement plan, the annual interest rate is
37.19six percent from the date on which the amount was deducted from the retirement annuity
37.20to the date of payment or until January 1, 2011, whichever is earlier, and no interest
37.21after January 1, 2011.
37.22
37.23
37.24
37.25Association, the annual interest is the rate of six percent from the date that the amount was
37.26deducted from the retirement annuity to the date of payment or June 30, 2011, whichever
37.27is earlier, and with no interest accrual after June 30, 2011.
37.28 (b) The written application must be on a form prescribed by the chief administrative
37.29officer of the applicable retirement plan.
37.30 (c) If the retired member dies before the payment provided for in paragraph (a) is
37.31made, the amount is payable, upon written application, to the deceased person's surviving
37.32spouse, or if none, to the deceased person's designated beneficiary, or if none, to the
37.33deceased person's estate.
37.34 (d) In lieu of the direct payment of the person's amount under subdivision 2, on
37.35or after the payment date under paragraph (a), if the federal Internal Revenue Code so
38.1permits, the retired member may elect to have all or any portion of the payment amount
38.2under this section paid in the form of a direct rollover to an eligible retirement plan as
38.3defined in section 402(c) of the federal Internal Revenue Code that is specified by the
38.4retired member. If the retired member dies with a balance remaining payable under this
38.5section, the surviving spouse of the retired member, or if none, the deceased person's
38.6designated beneficiary, or if none, the administrator of the deceased person's estate may
38.7elect a direct rollover under this paragraph.
38.8 Sec. 43. Minnesota Statutes 2012, section 356.99, subdivision 1, is amended to read:
38.9 Subdivision 1. Definitions. (a) For purposes of this section, the terms in paragraphs
38.10(b) to (e) have the meanings given them.
38.11(b) "Chief administrative officer" means the person selected or elected by the
38.12governing board of a covered pension plan with primary responsibility to administer the
38.13covered pension plan, or that person's designee or representative.
38.14(c) "Covered pension plan" means a plan enumerated in section
38.153
38.16(d) "Governing board" means the governing board of the Minnesota State Retirement
38.17System, the Public Employees Retirement Association, the Teachers Retirement
38.18Association,
38.19Retirement Fund Association.
38.20(e) "Member" means an active plan member in a covered pension plan.
38.21 Sec. 44. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is
38.22amended to read:
38.23 Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the
38.24difference between $5,720,000 and the current year amortization aid distributed under
38.25subdivision 1 that is not distributed for any reason to a municipality must be distributed
38.26by the commissioner of revenue according to this paragraph. The commissioner shall
38.27distribute
38.28Retirement Association,
38.29 and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded
38.30actuarial accrued liabilities of the respective funds. These payments must be made on July
38.3115 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth
38.32Teachers Retirement Fund Association becomes fully funded, the association's eligibility
38.33for its portion of this aid ceases. Amounts remaining in the undistributed balance account
38.34at the end of the biennium if aid eligibility ceases cancel to the general fund.
39.1 (b) In order to receive amortization aid under paragraph (a), before June 30 annually
39.2Independent School District No. 625, St. Paul, must make an additional contribution of
39.3$800,000 each year to the St. Paul Teachers Retirement Fund Association.
39.4 (c) Thirty percent of the difference between $5,720,000 and the current year
39.5amortization aid under subdivision 1a that is not distributed for any reason to a
39.6municipality must be distributed under section
39.7additional funding to support a minimum fire state aid amount for volunteer firefighter
39.8relief associations.
39.9 Sec. 45. CONSOLIDATION OF THE DULUTH TEACHERS RETIREMENT
39.10FUND ASSOCIATION.
39.11 Subdivision 1. Membership transfer. All active, inactive, and retired members
39.12of the Duluth Teachers Retirement Fund Association are transferred to the Teachers
39.13Retirement Association and are no longer members of the Duluth Teachers Retirement
39.14Fund Association as of July 1, 2015.
39.15 Subd. 2. Teachers Retirement Association membership. A person first hired as a
39.16teacher by Independent School District No. 709, Duluth, after June 30, 2015, and who is a
39.17teacher as defined in Minnesota Statutes, section
39.18Teachers Retirement Association for the person's subsequent teaching service.
39.19 Subd. 3. Service credit and liability transfer. All allowable service and salary
39.20credit of the members and other individuals transferred under subdivision 1 as specified
39.21in the records of the Duluth Teachers Retirement Fund Association as of June 30, 2015,
39.22is allowable service credit under Minnesota Statutes, section
39.23formula service credit under Minnesota Statutes, section
39.24salary credit under Minnesota Statutes, section
39.25Retirement Association.
39.26 Subd. 4. Transfer of records. On or before June 30, 2015, the chief administrative
39.27officer of the Duluth Teachers Retirement Fund Association shall transfer all records and
39.28documents relating to the funds and the benefit plans of the association to the executive
39.29director of the Teachers Retirement Association. To the extent possible, original copies of
39.30all records and documents must be transferred.
39.31 Subd. 5. Transfer of assets. (a) On or before December 31, 2014, the chief
39.32administrative officer of the Duluth Teachers Retirement Fund Association shall transfer
39.33to the State Board of Investment the entire assets of the special retirement fund of the
39.34Duluth Teachers Retirement Fund Association. The transfer of the assets of the Duluth
39.35Teachers Retirement Fund Association special retirement fund must include any accounts
40.1receivable that are determined by the executive director of the State Board of Investment
40.2as reasonably capable of being collected. Legal title to account receivables that are
40.3determined by the executive director of the State Board of Investment as not reasonably
40.4capable of being collected transfers to Independent School District No. 709, Duluth, as of
40.5the date of the determination of the executive director of the State Board of Investment. If
40.6the account receivables transferred to Independent School District No. 709, Duluth, are
40.7subsequently recovered by the school district, the superintendent of Independent School
40.8District No. 709, Duluth, shall transfer the recovered amount to the executive director of
40.9the Teachers Retirement Association, in cash, for deposit in the teachers retirement fund,
40.10less the reasonable expenses of the school district related to the recovery. If the board of
40.11trustees of the Duluth Teachers Retirement Fund Association establishes a liquidating trust
40.12and deposits any of the retirement fund association assets in that trust or if the legislative
40.13auditor determines that the transferred assets were in an amount less than the full assets of
40.14the retirement fund association other than assets in the tax sheltered annuity program on
40.15the date of transfer as specified in paragraph (d), the amount of any untransferred assets
40.16are a claim against the state aid otherwise payable to Independent School District No. 709,
40.17Duluth, payable by the commissioner of management and budget upon request by the
40.18executive director of the Teachers Retirement Association.
40.19(b) As of June 30, 2015, assets of the special retirement fund of the Duluth Teachers
40.20Retirement Fund Association are assets of the Teachers Retirement Association to be
40.21invested by the State Board of Investment under Minnesota Statutes, section
40.22subdivision 4.
40.23 Subd. 6. Termination of Duluth Teachers Retirement Fund Association special
40.24retirement fund. (a) As of June 30, 2015, the Duluth Teachers Retirement Fund
40.25Association as a public retirement plan and its special retirement fund ceases to exist.
40.26(b) Contracts, records, and obligations of the Duluth Teachers Retirement Fund
40.27Association special retirement fund existing at the time of consolidation with the Teachers
40.28Retirement Association are transferred to the Teachers Retirement Association under
40.29Minnesota Statutes, section
40.30and obligations of the Duluth Teachers Retirement Fund Association special retirement
40.31fund related to investment and safekeeping of assets are transferred to the State Board of
40.32Investment pursuant to the provisions of Minnesota Statutes, section
40.335 and 5a. The State Board of Investment has the authority to pay the investment-related
40.34liabilities and obligations from the assets transferred from the Duluth Teachers Retirement
40.35Fund Association incurred by the Teachers Retirement Association. The board of trustees
40.36of the Teachers Retirement Association shall contract with the legislative auditor for
41.1necessary audit services associated with the Duluth Teachers Retirement Fund Association
41.2financial activity during the fiscal year ending June 30, 2015, as part of the Teachers
41.3Retirement Association board's annual financial reporting requirements under Minnesota
41.4Statutes, section 356.20. The board of trustees of the Teachers Retirement Association
41.5may authorize and contract with either the legislative auditor or the state auditor to
41.6perform other audit services. The costs of the audit or examination must be paid by the
41.7Teachers Retirement Association. Between April 1, 2015, and June 30, 2015, the Duluth
41.8Teachers Retirement Fund Association cannot incur a new or additional enforceable
41.9contractual liability or obligation without approval of the executive director of the
41.10Teachers Retirement Association.
41.11 Sec. 46. DULUTH TEACHERS RETIREMENT FUND ASSOCIATION
41.12EMPLOYEES.
41.13Effective June 30, 2015, unless the employee elects otherwise, the employees
41.14of the Duluth Teachers Retirement Fund Association have their employment with the
41.15Duluth Teachers Retirement Fund Association terminated and, effective July 1, 2015,
41.16the Duluth Teachers Retirement Fund Association employees, excluding the Executive
41.17Director, become employees of the Teachers Retirement Association. The commissioner
41.18of management and budget shall place employees from the former Duluth Teachers
41.19Retirement Fund Association into state service in their proper classifications, except
41.20that employees are appointed without examination and must be compensated at no less
41.21than their current hourly salary rate. Employees must have their accumulated, but
41.22unused, vacation leave balance as of June 30, 2015, posted to their credit by the Teachers
41.23Retirement Association, but if the employee has vacation time in excess of the applicable
41.24maximum, no additional vacation may accrue until the employee's balance falls below
41.25the maximum permitted by the state for the employee's position. The employees must
41.26receive length of service credit for vacation leave accrual for time served at the Duluth
41.27Teachers Retirement Fund Association. Duluth Teachers Retirement Fund Association
41.28employees who become employees of the Teachers Retirement Association effective on
41.29July 1, 2015, must be considered to have completed six months of continuous service
41.30for vacation use purposes. Employees of the former Duluth Teachers Retirement Fund
41.31Association appointed to the classified service are subject to a probationary period under
41.32the collective bargaining agreement or compensation plan applicable to the employee's
41.33position at the Teachers Retirement Association. Effective July 1, 2015, all transferred
41.34employees must be enrolled in the state employees' group insurance program as provided
41.35in Minnesota Statutes, sections 43A.22 to 43A.31, and the commissioner of management
42.1and budget shall provide open enrollment in all state employee health and dental insurance
42.2plans with no limitation on preexisting conditions except as specified in existing state
42.3employee certificates of coverage. The commissioner of management and budget shall
42.4provide these transferred employees with the opportunity to purchase optional life and
42.5disability insurance as provided by the state group insurance program in accordance with
42.6the policies of Minnesota Management and Budget.
42.7 Sec. 47. REPEALER.
42.8(a) Minnesota Statutes 2012, sections 354A.021, subdivision 5; 354A.108; 354A.24;
42.9and 354A.27, subdivision 5, are repealed.
42.10(b) Minnesota Statutes 2013 Supplement, sections 354A.27, subdivisions 6a and 7;
42.11and 354A.31, subdivision 4a, are repealed.
42.12 Sec. 48. EFFECTIVE DATE.
42.13(a) Sections 1 to 47 are effective June 30, 2015, if the following approve the
42.14consolidation provisions before January 1, 2015:
42.15(1) the board of trustees of the Duluth Teachers Retirement Fund Association;
42.16(2) the membership of the Duluth Teachers Retirement Fund Association; and
42.17(3) the board of trustees of the Teachers Retirement Association.
42.18(b) An approval under paragraph (a) must be provided in a timely manner in
42.19compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, to the
42.20secretary of state, the state auditor, and the legislative auditor by the chief administrative
42.21officer of the Duluth Teachers Retirement Fund Association for an approval under
42.22paragraph (a) by the board of trustees of the Duluth Teachers Retirement Fund Association
42.23or by the membership of the Duluth Teachers Retirement Fund Association and by the
42.24chief administrative officer of the Teachers Retirement Association for an approval under
42.25paragraph (a) by the board of trustees of the Teachers Retirement Association.