Bill Text: MN HF2790 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Duluth and Duluth Airport Authority employee salary-supplement payment coverage resolved following Court of Appeals decision, and past actions ratified.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2014-03-06 - Introduction and first reading, referred to Government Operations [HF2790 Detail]
Download: Minnesota-2013-HF2790-Introduced.html
1.2relating to retirement; Public Employees Retirement Association; resolving city
1.3of Duluth and Duluth Airport Authority employee salary-supplement payments
1.4coverage following Court of Appeals decision; ratifying past actions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. PERMITTING THE PURCHASE OF SALARY CREDIT BY
1.7CERTAIN CURRENT AND FORMER CITY OF DULUTH OR DULUTH
1.8AIRPORT AUTHORITY EMPLOYEES COVERED BY THE GENERAL
1.9EMPLOYEES RETIREMENT PLAN OR THE PUBLIC EMPLOYEES POLICE
1.10AND FIRE RETIREMENT PLAN.
1.11 Subdivision 1. Authorization. Due to a Court of Appeals determination that certain
1.12salary-supplement payments, provided to certain city of Duluth and Duluth Airport
1.13Authority employees and deposited in the employee's deferred compensation account,
1.14should have been considered salary for pension purposes, an eligible person is authorized
1.15to receive the treatment specified in this section if the eligible person chooses to make the
1.16employee contribution equivalent payment specified in this section.
1.17 Subd. 2. Eligible person. (a) An eligible person:
1.18(1) is a current or former employee of the city of Duluth or the Duluth Airport
1.19Authority, employed by that governmental subdivision between August 1, 2007, and
1.20December 31, 2011;
1.21(2) was a participating member of the general employees retirement plan of the
1.22Public Employees Retirement Association or the public employees police and fire
1.23retirement plan for that employment; and
2.1(3) had employer-paid amounts made to the person's deferred compensation account
2.2for which contributions were not made to the applicable Public Employees Retirement
2.3Association plan fund between August 1, 2007, and December 31, 2011, or the date of
2.4the employee's termination of public service under Minnesota Statutes, section 353.01,
2.5subdivision 11a, whichever is earlier, due to an erroneous application of law under which
2.6the Public Employees Retirement Association executive director and board concluded
2.7that these employer-paid amounts were not salary for pension purposes under Minnesota
2.8Statutes, section 353.01, subdivision 10.
2.9(b) A surviving spouse, as defined in this paragraph, is an eligible person for
2.10purposes of this section. A surviving spouse means:
2.11(1) the surviving spouse of an eligible person as defined in paragraph (a) who, at
2.12the time of the eligible person's death, was a deferred annuitant of a Public Employees
2.13Retirement Association plan specified in this section;
2.14(2) the surviving spouse of an eligible person as defined in paragraph (a) receiving
2.15benefits under a joint and survivor annuity from a Public Employees Retirement
2.16Association plan specified in this section; or
2.17(3) the surviving spouse of an eligible person as defined in paragraph (a) receiving a
2.18survivor benefit under Minnesota Statutes, section 353.657.
2.19 Subd. 3. Employee contributions. An eligible person may make payment of an
2.20employee contribution equivalent amount to the fund of the general employees retirement
2.21plan of the Public Employees Retirement Association or the public employees police
2.22and fire retirement plan, whichever provided the coverage. The employee contribution
2.23equivalent amount is the amount of employee contributions that would have been made
2.24by the employee based on the employer-paid amounts made to the person's deferred
2.25compensation account for the period specified in subdivision 2, and the employee
2.26contribution rates to the applicable Public Employees Retirement Association plan during
2.27that period. If an employee contribution equivalent amount is paid, it must be made in
2.28full and in a lump sum.
2.29 Subd. 4. Employer contributions. (a) If an eligible person makes the employee
2.30equivalent contribution under subdivision 3, the city of Duluth or the Duluth Airport
2.31Authority, whichever is the applicable employing unit, must make the corresponding
2.32employer contributions, plus any employer supplemental and employer additional
2.33contributions required by law during the applicable time period.
2.34(b) Any contributions required under this subdivision must be based on the
2.35employer-paid amounts referred to in subdivision 2, and the contribution rates applicable
3.1during the time period for regular employer contributions, and any employer supplemental
3.2and employer additional contributions, if applicable.
3.3(c) Within 30 days of receipt by the executive director of the Public Employees
3.4Retirement Association of employee equivalent contributions under subdivision 3,
3.5the executive director shall notify the city of Duluth or the Duluth Airport Authority,
3.6whichever is the applicable employer, of amounts due under this subdivision. These
3.7amounts are to be remitted by the applicable employer to the executive director for deposit
3.8in the applicable fund within 30 days of notification. If payment is not made in full within
3.9that time period, the executive director may collect the necessary amounts by applying
3.10Minnesota Statutes, section 353.28, subdivision 6.
3.11 Subd. 5. Benefit adjustments. Upon receipt of the applicable employee equivalent
3.12contribution under subdivision 3 from an eligible person, the executive director shall
3.13revise the records of the Public Employees Retirement Association and grant the person
3.14the additional salary credit. If a retirement, disability, or survivor annuity has commenced,
3.15the executive director must adjust the benefit being paid to include in the calculation the
3.16additional salary on which contributions were paid, and the adjusted benefit must be paid
3.17retroactive from the effective date of the initial benefit payment under the annuity.
3.18 Subd. 6. Restrictions. This section does not apply if service credit and other rights
3.19under the plan were forfeited by taking a refund.
3.20 Subd. 7. Treatment of interest. Notwithstanding any provision in Minnesota
3.21Statutes, chapter 353, to the contrary, all payments specified in this section made by an
3.22eligible person to the executive director for deposit in the applicable Public Employees
3.23Retirement Association fund are to be made without interest. Any payments required from
3.24the employer under this section are also without interest, provided the employer makes
3.25the payment to the executive director within 30 days of notification. Interest shall be
3.26charged, as specified in Minnesota Statutes, section 353.28, on any employer obligations
3.27not paid within the 30-day period.
3.28 Subd. 8. Notification; counseling. The executive director shall notify all active
3.29members, deferred members, retirees, and survivors to whom this section may apply and
3.30shall provide counseling regarding the implications of this section, including payment
3.31requirements and likely adjustments in current or future benefit amounts if employee
3.32equivalent contributions as specified in this section are made.
3.33 Subd. 9. Expiration of salary credit purchase authority. Payment of employee
3.34contribution equivalent amounts, as authorized under this section, is prohibited after 180
3.35days following the date that local approval is provided by the applicable employing unit of
3.36the current or former employee.
4.1 Subd. 10. Ratification. Actions taken before the effective date of this section by
4.2the executive director and board of the Public Employees Retirement Association, the
4.3city of Duluth, the Duluth Airport Authority, and eligible persons which are otherwise
4.4consistent with this section are ratified.
4.5EFFECTIVE DATE.(a) This section is effective the day after the Duluth city
4.6council and the chief clerical officer of the city of Duluth timely complete their compliance
4.7with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are,
4.8and former members who were, employees of the city of Duluth, and for the surviving
4.9spouses of former members.
4.10(b) This section is effective the day after the Duluth Airport Authority and the
4.11chief clerical officer of the Duluth Airport Authority timely complete their compliance
4.12with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are,
4.13and former members who were, employees of the Duluth Airport Authority, and for the
4.14surviving spouses of former members.
1.3of Duluth and Duluth Airport Authority employee salary-supplement payments
1.4coverage following Court of Appeals decision; ratifying past actions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. PERMITTING THE PURCHASE OF SALARY CREDIT BY
1.7CERTAIN CURRENT AND FORMER CITY OF DULUTH OR DULUTH
1.8AIRPORT AUTHORITY EMPLOYEES COVERED BY THE GENERAL
1.9EMPLOYEES RETIREMENT PLAN OR THE PUBLIC EMPLOYEES POLICE
1.10AND FIRE RETIREMENT PLAN.
1.11 Subdivision 1. Authorization. Due to a Court of Appeals determination that certain
1.12salary-supplement payments, provided to certain city of Duluth and Duluth Airport
1.13Authority employees and deposited in the employee's deferred compensation account,
1.14should have been considered salary for pension purposes, an eligible person is authorized
1.15to receive the treatment specified in this section if the eligible person chooses to make the
1.16employee contribution equivalent payment specified in this section.
1.17 Subd. 2. Eligible person. (a) An eligible person:
1.18(1) is a current or former employee of the city of Duluth or the Duluth Airport
1.19Authority, employed by that governmental subdivision between August 1, 2007, and
1.20December 31, 2011;
1.21(2) was a participating member of the general employees retirement plan of the
1.22Public Employees Retirement Association or the public employees police and fire
1.23retirement plan for that employment; and
2.1(3) had employer-paid amounts made to the person's deferred compensation account
2.2for which contributions were not made to the applicable Public Employees Retirement
2.3Association plan fund between August 1, 2007, and December 31, 2011, or the date of
2.4the employee's termination of public service under Minnesota Statutes, section 353.01,
2.5subdivision 11a, whichever is earlier, due to an erroneous application of law under which
2.6the Public Employees Retirement Association executive director and board concluded
2.7that these employer-paid amounts were not salary for pension purposes under Minnesota
2.8Statutes, section 353.01, subdivision 10.
2.9(b) A surviving spouse, as defined in this paragraph, is an eligible person for
2.10purposes of this section. A surviving spouse means:
2.11(1) the surviving spouse of an eligible person as defined in paragraph (a) who, at
2.12the time of the eligible person's death, was a deferred annuitant of a Public Employees
2.13Retirement Association plan specified in this section;
2.14(2) the surviving spouse of an eligible person as defined in paragraph (a) receiving
2.15benefits under a joint and survivor annuity from a Public Employees Retirement
2.16Association plan specified in this section; or
2.17(3) the surviving spouse of an eligible person as defined in paragraph (a) receiving a
2.18survivor benefit under Minnesota Statutes, section 353.657.
2.19 Subd. 3. Employee contributions. An eligible person may make payment of an
2.20employee contribution equivalent amount to the fund of the general employees retirement
2.21plan of the Public Employees Retirement Association or the public employees police
2.22and fire retirement plan, whichever provided the coverage. The employee contribution
2.23equivalent amount is the amount of employee contributions that would have been made
2.24by the employee based on the employer-paid amounts made to the person's deferred
2.25compensation account for the period specified in subdivision 2, and the employee
2.26contribution rates to the applicable Public Employees Retirement Association plan during
2.27that period. If an employee contribution equivalent amount is paid, it must be made in
2.28full and in a lump sum.
2.29 Subd. 4. Employer contributions. (a) If an eligible person makes the employee
2.30equivalent contribution under subdivision 3, the city of Duluth or the Duluth Airport
2.31Authority, whichever is the applicable employing unit, must make the corresponding
2.32employer contributions, plus any employer supplemental and employer additional
2.33contributions required by law during the applicable time period.
2.34(b) Any contributions required under this subdivision must be based on the
2.35employer-paid amounts referred to in subdivision 2, and the contribution rates applicable
3.1during the time period for regular employer contributions, and any employer supplemental
3.2and employer additional contributions, if applicable.
3.3(c) Within 30 days of receipt by the executive director of the Public Employees
3.4Retirement Association of employee equivalent contributions under subdivision 3,
3.5the executive director shall notify the city of Duluth or the Duluth Airport Authority,
3.6whichever is the applicable employer, of amounts due under this subdivision. These
3.7amounts are to be remitted by the applicable employer to the executive director for deposit
3.8in the applicable fund within 30 days of notification. If payment is not made in full within
3.9that time period, the executive director may collect the necessary amounts by applying
3.10Minnesota Statutes, section 353.28, subdivision 6.
3.11 Subd. 5. Benefit adjustments. Upon receipt of the applicable employee equivalent
3.12contribution under subdivision 3 from an eligible person, the executive director shall
3.13revise the records of the Public Employees Retirement Association and grant the person
3.14the additional salary credit. If a retirement, disability, or survivor annuity has commenced,
3.15the executive director must adjust the benefit being paid to include in the calculation the
3.16additional salary on which contributions were paid, and the adjusted benefit must be paid
3.17retroactive from the effective date of the initial benefit payment under the annuity.
3.18 Subd. 6. Restrictions. This section does not apply if service credit and other rights
3.19under the plan were forfeited by taking a refund.
3.20 Subd. 7. Treatment of interest. Notwithstanding any provision in Minnesota
3.21Statutes, chapter 353, to the contrary, all payments specified in this section made by an
3.22eligible person to the executive director for deposit in the applicable Public Employees
3.23Retirement Association fund are to be made without interest. Any payments required from
3.24the employer under this section are also without interest, provided the employer makes
3.25the payment to the executive director within 30 days of notification. Interest shall be
3.26charged, as specified in Minnesota Statutes, section 353.28, on any employer obligations
3.27not paid within the 30-day period.
3.28 Subd. 8. Notification; counseling. The executive director shall notify all active
3.29members, deferred members, retirees, and survivors to whom this section may apply and
3.30shall provide counseling regarding the implications of this section, including payment
3.31requirements and likely adjustments in current or future benefit amounts if employee
3.32equivalent contributions as specified in this section are made.
3.33 Subd. 9. Expiration of salary credit purchase authority. Payment of employee
3.34contribution equivalent amounts, as authorized under this section, is prohibited after 180
3.35days following the date that local approval is provided by the applicable employing unit of
3.36the current or former employee.
4.1 Subd. 10. Ratification. Actions taken before the effective date of this section by
4.2the executive director and board of the Public Employees Retirement Association, the
4.3city of Duluth, the Duluth Airport Authority, and eligible persons which are otherwise
4.4consistent with this section are ratified.
4.5EFFECTIVE DATE.(a) This section is effective the day after the Duluth city
4.6council and the chief clerical officer of the city of Duluth timely complete their compliance
4.7with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are,
4.8and former members who were, employees of the city of Duluth, and for the surviving
4.9spouses of former members.
4.10(b) This section is effective the day after the Duluth Airport Authority and the
4.11chief clerical officer of the Duluth Airport Authority timely complete their compliance
4.12with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are,
4.13and former members who were, employees of the Duluth Airport Authority, and for the
4.14surviving spouses of former members.
