Bill Text: MN HF341 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Public Employees Retirement Association; Social Security leveling option repealed.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-02-04 - Introduction and first reading, referred to Government Operations [HF341 Detail]
Download: Minnesota-2013-HF341-Introduced.html
1.2relating to retirement; Public Employees Retirement Association; repealing
1.3the Social Security leveling option; making conforming changes;amending
1.4Minnesota Statutes 2012, section 356.415, subdivisions 1, 1b; repealing
1.5Minnesota Statutes 2012, section 353.29, subdivision 6.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
1.8 Subdivision 1. Annual postretirement adjustments; generally. (a) Except as
1.9otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability
1.10benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
1.11postretirement adjustment annually on January 1, as follows:
1.12(1) a postretirement increase of 2.5 percent must be applied each year, effective
1.13January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
1.14been receiving an annuity or a benefit for at least 12 full months prior to the January 1
1.15increase; and
1.16(2) for each annuitant or benefit recipient who has been receiving an annuity or a
1.17benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
1.18percent for each month that the person has been receiving an annuity or benefit must be
1.19applied, effective on January 1 following the calendar year in which the person has been
1.20retired for less than 12 months.
1.21(b) The increases provided by this subdivision commence on January 1, 2010.
1.22(c) An increase in annuity or benefit payments under this section must be made
1.23automatically unless written notice is filed by the annuitant or benefit recipient with the
1.24executive director of the covered retirement plan requesting that the increase not be made.
2.1(d) The retirement annuity payable to a person who retires before becoming eligible
2.2for Social Security benefits and who has elected the optional payment as provided in
2.3section
353.29, subdivision 6, must be treated as the sum of a period certain retirement
2.4annuity and a life retirement annuity for the purposes of any postretirement adjustment.
2.5The period certain retirement annuity plus the life retirement annuity must be the
2.6annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
2.7adjustment granted on the period certain retirement annuity must terminate when the
2.8period certain retirement annuity terminates.
2.9EFFECTIVE DATE.This section is effective January 1, 2014.
2.10 Sec. 2. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
2.11 Subd. 1b. Annual postretirement adjustments; PERA; general employees
2.12retirement plan and local government correctional retirement plan. (a) Retirement
2.13annuity, disability benefit, or survivor benefit recipients of the general employees
2.14retirement plan of the Public Employees Retirement Association and the local government
2.15correctional service retirement plan are entitled to a postretirement adjustment annually
2.16on January 1, as follows:
2.17(1) for January 1, 2011, and each successive January 1 until funding stability is
2.18restored for the applicable retirement plan, a postretirement increase of one percent must
2.19be applied each year, effective on January 1, to the monthly annuity or benefit amount of
2.20each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
2.2112 full months as of the current June 30;
2.22(2) for January 1, 2011, and each successive January 1 until funding stability is
2.23restored for the applicable retirement plan, for each annuitant or benefit recipient who has
2.24been receiving an annuity or a benefit for at least one full month, but less than 12 full
2.25months as of the current June 30, an annual postretirement increase of 1/12 of one percent
2.26for each month the person has been receiving an annuity or benefit must be applied;
2.27(3) for each January 1 following the restoration of funding stability for the applicable
2.28retirement plan, a postretirement increase of 2.5 percent must be applied each year,
2.29effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
2.30recipient who has been receiving an annuity or benefit for at least 12 full months as of
2.31the current June 30; and
2.32(4) for each January 1 following restoration of funding stability for the applicable
2.33retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
2.34a benefit for at least one full month, but less than 12 full months as of the current June
3.130, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
3.2has been receiving an annuity or benefit must be applied.
3.3(b) Funding stability is restored when the market value of assets of the applicable
3.4retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
3.5applicable plan in the most recent prior actuarial valuation prepared under section356.215
3.6and the standards for actuarial work by the approved actuary retained by the Public
3.7Employees Retirement Association under section356.214 .
3.8(c) If, after applying the increase as provided for in paragraph (a), clauses (3)
3.9and (4), the market value of the applicable retirement plan is determined in the next
3.10subsequent actuarial valuation prepared under section356.215 to be less than 90 percent
3.11of the actuarial accrued liability of any of the applicable Public Employees Retirement
3.12Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be
3.13applied as of the next successive January until funding stability is again restored.
3.14(d) An increase in annuity or benefit payments under this section must be made
3.15automatically unless written notice is filed by the annuitant or benefit recipient with the
3.16executive director of the Public Employees Retirement Association requesting that the
3.17increase not be made.
3.18(e) The retirement annuity payable to a person who retires before becoming eligible
3.19for Social Security benefits and who has elected the optional payment, as provided in
3.20section
353.29, subdivision 6, must be treated as the sum of a period-certain retirement
3.21annuity and a life retirement annuity for the purposes of any postretirement adjustment.
3.22The period-certain retirement annuity plus the life retirement annuity must be the
3.23annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
3.24adjustment granted on the period-certain retirement annuity must terminate when the
3.25period-certain retirement annuity terminates.
3.26EFFECTIVE DATE.This section is effective January 1, 2014.
3.27 Sec. 3. REPEALER.
3.28Minnesota Statutes 2012, section 353.29, subdivision 6, is repealed.
3.29EFFECTIVE DATE.This section is effective January 1, 2014.
1.3the Social Security leveling option; making conforming changes;amending
1.4Minnesota Statutes 2012, section 356.415, subdivisions 1, 1b; repealing
1.5Minnesota Statutes 2012, section 353.29, subdivision 6.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
1.8 Subdivision 1. Annual postretirement adjustments; generally. (a) Except as
1.9otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability
1.10benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
1.11postretirement adjustment annually on January 1, as follows:
1.12(1) a postretirement increase of 2.5 percent must be applied each year, effective
1.13January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
1.14been receiving an annuity or a benefit for at least 12 full months prior to the January 1
1.15increase; and
1.16(2) for each annuitant or benefit recipient who has been receiving an annuity or a
1.17benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
1.18percent for each month that the person has been receiving an annuity or benefit must be
1.19applied, effective on January 1 following the calendar year in which the person has been
1.20retired for less than 12 months.
1.21(b) The increases provided by this subdivision commence on January 1, 2010.
1.22(c) An increase in annuity or benefit payments under this section must be made
1.23automatically unless written notice is filed by the annuitant or benefit recipient with the
1.24executive director of the covered retirement plan requesting that the increase not be made.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9EFFECTIVE DATE.This section is effective January 1, 2014.
2.10 Sec. 2. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
2.11 Subd. 1b. Annual postretirement adjustments; PERA; general employees
2.12retirement plan and local government correctional retirement plan. (a) Retirement
2.13annuity, disability benefit, or survivor benefit recipients of the general employees
2.14retirement plan of the Public Employees Retirement Association and the local government
2.15correctional service retirement plan are entitled to a postretirement adjustment annually
2.16on January 1, as follows:
2.17(1) for January 1, 2011, and each successive January 1 until funding stability is
2.18restored for the applicable retirement plan, a postretirement increase of one percent must
2.19be applied each year, effective on January 1, to the monthly annuity or benefit amount of
2.20each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
2.2112 full months as of the current June 30;
2.22(2) for January 1, 2011, and each successive January 1 until funding stability is
2.23restored for the applicable retirement plan, for each annuitant or benefit recipient who has
2.24been receiving an annuity or a benefit for at least one full month, but less than 12 full
2.25months as of the current June 30, an annual postretirement increase of 1/12 of one percent
2.26for each month the person has been receiving an annuity or benefit must be applied;
2.27(3) for each January 1 following the restoration of funding stability for the applicable
2.28retirement plan, a postretirement increase of 2.5 percent must be applied each year,
2.29effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
2.30recipient who has been receiving an annuity or benefit for at least 12 full months as of
2.31the current June 30; and
2.32(4) for each January 1 following restoration of funding stability for the applicable
2.33retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
2.34a benefit for at least one full month, but less than 12 full months as of the current June
3.130, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
3.2has been receiving an annuity or benefit must be applied.
3.3(b) Funding stability is restored when the market value of assets of the applicable
3.4retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
3.5applicable plan in the most recent prior actuarial valuation prepared under section
3.6and the standards for actuarial work by the approved actuary retained by the Public
3.7Employees Retirement Association under section
3.8(c) If, after applying the increase as provided for in paragraph (a), clauses (3)
3.9and (4), the market value of the applicable retirement plan is determined in the next
3.10subsequent actuarial valuation prepared under section
3.11of the actuarial accrued liability of any of the applicable Public Employees Retirement
3.12Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be
3.13applied as of the next successive January until funding stability is again restored.
3.14(d) An increase in annuity or benefit payments under this section must be made
3.15automatically unless written notice is filed by the annuitant or benefit recipient with the
3.16executive director of the Public Employees Retirement Association requesting that the
3.17increase not be made.
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3.19
3.20
3.21
3.22
3.23
3.24
3.25
3.26EFFECTIVE DATE.This section is effective January 1, 2014.
3.27 Sec. 3. REPEALER.
3.28Minnesota Statutes 2012, section 353.29, subdivision 6, is repealed.
3.29EFFECTIVE DATE.This section is effective January 1, 2014.
