Bill Text: MN HF476 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public Employees Retirement Association; Red Wing Port Authority employees included and retroactive retirement coverage validated.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-02-14 - Introduction and first reading, referred to Government Operations and Elections [HF476 Detail]
Download: Minnesota-2011-HF476-Introduced.html
1.2relating to retirement; general employees retirement plan of the Public
1.3Employees Retirement Association; including employees of the Red Wing Port
1.4Authority in the plan; validating retroactive retirement coverage for employees
1.5of the Red Wing Port Authority; amending Minnesota Statutes 2010, section
1.6353.01, subdivisions 2a, 6.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:
1.9 Subd. 2a. Included employees; mandatory membership. (a) Public employees
1.10whose salary exceeds $425 in any month and who are not specifically excluded under
1.11subdivision 2b or who have not been provided an option to participate under subdivision
1.122d, whether individually or by action of the governmental subdivision, must participate as
1.13members of the association with retirement coverage by the general employees retirement
1.14plan under this chapter, the public employees police and fire retirement plan under this
1.15chapter, or the local government correctional employees retirement plan under chapter
1.16353E, whichever applies. Membership commences as a condition of their employment on
1.17the first day of their employment or on the first day that the eligibility criteria are met,
1.18whichever is later. Public employees include but are not limited to:
1.19(1) persons whose salary meets the threshold in this paragraph from employment in
1.20one or more positions within one governmental subdivision;
1.21(2) elected county sheriffs;
1.22(3) persons who are appointed, employed, or contracted to perform governmental
1.23functions that by law or local ordinance are required of a public officer, including, but
1.24not limited to:
1.25(i) town and city clerk or treasurer;
2.1(ii) county auditor, treasurer, or recorder;
2.2(iii) city manager as defined in section353.028 who does not exercise the option
2.3provided under subdivision 2d; or
2.4(iv) emergency management director, as provided under section12.25 ;
2.5(4) physicians under section353D.01, subdivision 2 , who do not elect public
2.6employees defined contribution plan coverage under section353D.02, subdivision 2 ;
2.7(5) full-time employees of the Dakota County Agricultural Society;and
2.8(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
2.9Police Relief Association who are not excluded employees under subdivision 2b due
2.10to coverage by the relief association pension plan and who elected general employee
2.11retirement plan coverage before August 20, 2009; and
2.12(7) employees of the Red Wing Port Authority who are not excluded employees
2.13under subdivision 2b.
2.14 (b) A public employee or elected official who was a member of the association on
2.15June 30, 2002, based on employment that qualified for membership coverage by the public
2.16employees retirement plan or the public employees police and fire plan under this chapter,
2.17or the local government correctional employees retirement plan under chapter 353E as of
2.18June 30, 2002, retains that membership for the duration of the person's employment in that
2.19position or incumbency in elected office. Except as provided in subdivision 28, the person
2.20shall participate as a member until the employee or elected official terminates public
2.21employment under subdivision 11a or terminates membership under subdivision 11b.
2.22(c) If the salary of an included public employee is less than $425 in any subsequent
2.23month, the member retains membership eligibility.
2.24(d) For the purpose of participation in the MERF division of the general employees
2.25retirement plan, public employees include employees who were members of the former
2.26Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
2.27members of the MERF division of the association.
2.28EFFECTIVE DATE.This section is effective the day following final enactment.
2.29 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 6, is amended to read:
2.30 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
2.31county, city, town, school district within this state, or a department, unit or instrumentality
2.32of state or local government, or any public body established under state or local
2.33authority that has a governmental purpose, is under public control, is responsible for the
2.34employment and payment of the salaries of employees of the entity, and receives a major
2.35portion of its revenues from taxation, fees, assessments or from other public sources.
3.1 (b) Governmental subdivision also means the Public Employees Retirement
3.2Association, the League of Minnesota Cities, the Association of Metropolitan
3.3Municipalities, charter schools formed under section124D.10 , service cooperatives
3.4exercising retirement plan participation under section123A.21, subdivision 5 , joint powers
3.5boards organized under section471.59, subdivision 11 , paragraph (a), family service
3.6collaboratives and children's mental health collaboratives organized under section471.59 ,
3.7subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
3.8are governmental units that otherwise qualify for retirement plan membership, public
3.9hospitals owned or operated by, or an integral part of, a governmental subdivision or
3.10governmental subdivisions, the Association of Minnesota Counties, the Minnesota
3.11Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
3.12Airports Commission, the University of Minnesota with respect to police officers covered
3.13by the public employees police and fire retirement plan, the Minneapolis Employees
3.14Retirement Fund for employment initially commenced after June 30, 1979, the Range
3.15Association of Municipalities and Schools, soil and water conservation districts, economic
3.16development authorities created or operating under sections469.090 to
469.108 , the Port
3.17Authority of the city of St. Paul, the Red Wing Port Authority, the Spring Lake Park Fire
3.18Department, incorporated, the Lake Johanna Volunteer Fire Department, incorporated,
3.19the Red Wing Environmental Learning Center, the Dakota County Agricultural Society,
3.20Hennepin Healthcare System, Inc., and the Minneapolis Firefighters Relief Association
3.21and Minneapolis Police Relief Association with respect to staff covered by the Public
3.22Employees Retirement Association general plan.
3.23 (c) Governmental subdivision does not mean any municipal housing and
3.24redevelopment authority organized under the provisions of sections469.001 to
469.047 ;
3.25or any port authority organized under sections469.048 to
469.089 other than the Port
3.26Authority of the city of St. Paul; the Red Wing Port Authority; or any hospital district
3.27organized or reorganized prior to July 1, 1975, under sections447.31 to
447.37 or the
3.28successor of the district; or the board of a family service collaborative or children's mental
3.29health collaborative organized under sections124D.23 ,
245.491 to
245.495 , or
471.59 , if
3.30that board is not controlled by representatives of governmental units.
3.31 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
3.32Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
3.33governmental subdivision unless the entity has obtained a written advisory opinion from
3.34the United States Department of Labor or a ruling from the Internal Revenue Service
3.35declaring the entity to be an instrumentality of the state so as to provide that any future
4.1contributions by the entity on behalf of its employees are contributions to a governmental
4.2plan within the meaning of Internal Revenue Code, section 414(d).
4.3 (e) A public body created by state or local authority may request membership on
4.4behalf of its employees by providing sufficient evidence that it meets the requirements in
4.5paragraph (a).
4.6 (f) An entity determined to be a governmental subdivision is subject to the reporting
4.7requirements of this chapter upon receipt of a written notice of eligibility from the
4.8association.
4.9EFFECTIVE DATE.This section is effective the day following final enactment.
4.10 Sec. 3. VALIDATION OF PAST RETIREMENT COVERAGE AND
4.11CONTRIBUTIONS FOR RED WING PORT AUTHORITY EMPLOYEES.
4.12(a) Retirement coverage by the general employees retirement plan of the Public
4.13Employees Retirement Association, allowable service credit, and salary credit for
4.14employees of the Red Wing Port Authority who were so employed after December 31,
4.151984, who had monthly salary in any month of at least $325 until June 30, 1988, and who
4.16had monthly salary in any month of at least $425 after June 30, 1988, who were not
4.17otherwise excluded under the applicable edition of Minnesota Statutes, section 353.01,
4.18subdivision 2b, and who had member deductions taken and transferred in a timely manner
4.19to the general employees retirement fund before the effective date of this section are
4.20hereby validated.
4.21(b) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
4.22contrary, employee contributions deducted from employees of the Red Wing Port
4.23Authority described in paragraph (a) before the effective date of this section and associated
4.24employer contributions are valid assets of the general employees retirement fund and are
4.25not subject to refund or adjustment for erroneous receipt except as provided in Minnesota
4.26Statutes, section 353.32, subdivision 1 or 2; or 353.34, subdivisions 1 and 2.
4.27EFFECTIVE DATE.This section is effective the day following final enactment.
1.3Employees Retirement Association; including employees of the Red Wing Port
1.4Authority in the plan; validating retroactive retirement coverage for employees
1.5of the Red Wing Port Authority; amending Minnesota Statutes 2010, section
1.6353.01, subdivisions 2a, 6.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:
1.9 Subd. 2a. Included employees; mandatory membership. (a) Public employees
1.10whose salary exceeds $425 in any month and who are not specifically excluded under
1.11subdivision 2b or who have not been provided an option to participate under subdivision
1.122d, whether individually or by action of the governmental subdivision, must participate as
1.13members of the association with retirement coverage by the general employees retirement
1.14plan under this chapter, the public employees police and fire retirement plan under this
1.15chapter, or the local government correctional employees retirement plan under chapter
1.16353E, whichever applies. Membership commences as a condition of their employment on
1.17the first day of their employment or on the first day that the eligibility criteria are met,
1.18whichever is later. Public employees include but are not limited to:
1.19(1) persons whose salary meets the threshold in this paragraph from employment in
1.20one or more positions within one governmental subdivision;
1.21(2) elected county sheriffs;
1.22(3) persons who are appointed, employed, or contracted to perform governmental
1.23functions that by law or local ordinance are required of a public officer, including, but
1.24not limited to:
1.25(i) town and city clerk or treasurer;
2.1(ii) county auditor, treasurer, or recorder;
2.2(iii) city manager as defined in section
2.3provided under subdivision 2d; or
2.4(iv) emergency management director, as provided under section
2.5(4) physicians under section
2.6employees defined contribution plan coverage under section
2.7(5) full-time employees of the Dakota County Agricultural Society;
2.8(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
2.9Police Relief Association who are not excluded employees under subdivision 2b due
2.10to coverage by the relief association pension plan and who elected general employee
2.11retirement plan coverage before August 20, 2009; and
2.12(7) employees of the Red Wing Port Authority who are not excluded employees
2.13under subdivision 2b.
2.14 (b) A public employee or elected official who was a member of the association on
2.15June 30, 2002, based on employment that qualified for membership coverage by the public
2.16employees retirement plan or the public employees police and fire plan under this chapter,
2.17or the local government correctional employees retirement plan under chapter 353E as of
2.18June 30, 2002, retains that membership for the duration of the person's employment in that
2.19position or incumbency in elected office. Except as provided in subdivision 28, the person
2.20shall participate as a member until the employee or elected official terminates public
2.21employment under subdivision 11a or terminates membership under subdivision 11b.
2.22(c) If the salary of an included public employee is less than $425 in any subsequent
2.23month, the member retains membership eligibility.
2.24(d) For the purpose of participation in the MERF division of the general employees
2.25retirement plan, public employees include employees who were members of the former
2.26Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
2.27members of the MERF division of the association.
2.28EFFECTIVE DATE.This section is effective the day following final enactment.
2.29 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 6, is amended to read:
2.30 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
2.31county, city, town, school district within this state, or a department, unit or instrumentality
2.32of state or local government, or any public body established under state or local
2.33authority that has a governmental purpose, is under public control, is responsible for the
2.34employment and payment of the salaries of employees of the entity, and receives a major
2.35portion of its revenues from taxation, fees, assessments or from other public sources.
3.1 (b) Governmental subdivision also means the Public Employees Retirement
3.2Association, the League of Minnesota Cities, the Association of Metropolitan
3.3Municipalities, charter schools formed under section
3.4exercising retirement plan participation under section
3.5boards organized under section
3.6collaboratives and children's mental health collaboratives organized under section
3.7subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
3.8are governmental units that otherwise qualify for retirement plan membership, public
3.9hospitals owned or operated by, or an integral part of, a governmental subdivision or
3.10governmental subdivisions, the Association of Minnesota Counties, the Minnesota
3.11Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
3.12Airports Commission, the University of Minnesota with respect to police officers covered
3.13by the public employees police and fire retirement plan, the Minneapolis Employees
3.14Retirement Fund for employment initially commenced after June 30, 1979, the Range
3.15Association of Municipalities and Schools, soil and water conservation districts, economic
3.16development authorities created or operating under sections
3.17Authority of the city of St. Paul, the Red Wing Port Authority, the Spring Lake Park Fire
3.18Department, incorporated, the Lake Johanna Volunteer Fire Department, incorporated,
3.19the Red Wing Environmental Learning Center, the Dakota County Agricultural Society,
3.20Hennepin Healthcare System, Inc., and the Minneapolis Firefighters Relief Association
3.21and Minneapolis Police Relief Association with respect to staff covered by the Public
3.22Employees Retirement Association general plan.
3.23 (c) Governmental subdivision does not mean any municipal housing and
3.24redevelopment authority organized under the provisions of sections
3.25or any port authority organized under sections
3.26Authority of the city of St. Paul; the Red Wing Port Authority; or any hospital district
3.27organized or reorganized prior to July 1, 1975, under sections
3.28successor of the district; or the board of a family service collaborative or children's mental
3.29health collaborative organized under sections
3.30that board is not controlled by representatives of governmental units.
3.31 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
3.32Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
3.33governmental subdivision unless the entity has obtained a written advisory opinion from
3.34the United States Department of Labor or a ruling from the Internal Revenue Service
3.35declaring the entity to be an instrumentality of the state so as to provide that any future
4.1contributions by the entity on behalf of its employees are contributions to a governmental
4.2plan within the meaning of Internal Revenue Code, section 414(d).
4.3 (e) A public body created by state or local authority may request membership on
4.4behalf of its employees by providing sufficient evidence that it meets the requirements in
4.5paragraph (a).
4.6 (f) An entity determined to be a governmental subdivision is subject to the reporting
4.7requirements of this chapter upon receipt of a written notice of eligibility from the
4.8association.
4.9EFFECTIVE DATE.This section is effective the day following final enactment.
4.10 Sec. 3. VALIDATION OF PAST RETIREMENT COVERAGE AND
4.11CONTRIBUTIONS FOR RED WING PORT AUTHORITY EMPLOYEES.
4.12(a) Retirement coverage by the general employees retirement plan of the Public
4.13Employees Retirement Association, allowable service credit, and salary credit for
4.14employees of the Red Wing Port Authority who were so employed after December 31,
4.151984, who had monthly salary in any month of at least $325 until June 30, 1988, and who
4.16had monthly salary in any month of at least $425 after June 30, 1988, who were not
4.17otherwise excluded under the applicable edition of Minnesota Statutes, section 353.01,
4.18subdivision 2b, and who had member deductions taken and transferred in a timely manner
4.19to the general employees retirement fund before the effective date of this section are
4.20hereby validated.
4.21(b) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
4.22contrary, employee contributions deducted from employees of the Red Wing Port
4.23Authority described in paragraph (a) before the effective date of this section and associated
4.24employer contributions are valid assets of the general employees retirement fund and are
4.25not subject to refund or adjustment for erroneous receipt except as provided in Minnesota
4.26Statutes, section 353.32, subdivision 1 or 2; or 353.34, subdivisions 1 and 2.
4.27EFFECTIVE DATE.This section is effective the day following final enactment.
