Bill Text: MN SF1100 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minneapolis employees retirement fund (MERF) supplemental employer contribution obligation of metropolitan council clarification
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2013-03-11 - Author added Dibble [SF1100 Detail]
Download: Minnesota-2013-SF1100-Introduced.html
1.2relating to retirement; MERF division of PERA; clarifying the supplemental
1.3employer contribution obligation of the Metropolitan Council; amending
1.4Minnesota Statutes 2012, section 353.50, subdivision 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 353.50, subdivision 7, is amended to read:
1.7 Subd. 7. MERF division account contributions. (a) After June 30, 2010, the
1.8member and employer contributions to the MERF division account are governed by this
1.9subdivision.
1.10(b) An active member covered by the MERF division must make an employee
1.11contribution of 9.75 percent of the total salary of the member as defined in section353.01 ,
1.12subdivision 10. The employee contribution must be made by payroll deduction by the
1.13member's employing unit under section353.27, subdivision 4 , and is subject to the
1.14provisions of section353.27, subdivisions 7 , 7a, 7b, 12, 12a, and 12b.
1.15(c) The employer regular contribution to the MERF division account with respect
1.16to an active MERF division member is 9.75 percent of the total salary of the member as
1.17defined in section353.01, subdivision 10 .
1.18(d) The employer additional contribution to the MERF division account with respect
1.19to an active member of the MERF division is 2.68 percent of the total salary of the member
1.20as defined in section353.01, subdivision 10 , plus the employing unit's share of $3,900,000
1.21that the employing unit paid or is payable to the former Minneapolis Employees
1.22Retirement Fund under Minnesota Statutes 2008, section422A.101, subdivision 1a , 2,
1.23or 2a, during calendar year 2009, as was certified by the former executive director of the
1.24former Minneapolis Employees Retirement Fund.
2.1(e) Annually after June 30, 2012, the employer supplemental contribution to
2.2the MERF division account by the city of Minneapolis, Special School District No. 1,
2.3Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity,
2.4Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and
2.5the Minnesota State Colleges and Universities system is the larger of the following:
2.6(1) the amount by which the total actuarial required contribution determined under
2.7section356.215 by the approved actuary retained by the Public Employees Retirement
2.8Association in the most recent actuarial valuation of the MERF division and based on a
2.9June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b),
2.10(c), and (d), exceeds $22,750,000 or $24,000,000, whichever applies; or
2.11(2) the amount of $27,000,000, but the total supplemental contribution amount
2.12plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000. Each
2.13employing unit's share of the total employer supplemental contribution amount is equal
2.14to the applicable portion specified in paragraph (h). The initial total actuarial required
2.15contribution after June 30, 2012, must be calculated using the mortality assumption
2.16change recommended on September 30, 2009, for the Minneapolis Employees Retirement
2.17Fund by the approved consulting actuary retained by the Minneapolis Employees
2.18Retirement Fund board.
2.19(f) Before January 31, each employing unit must be invoiced for its share of the
2.20total employer supplemental contribution amount under paragraph (e). The amount is
2.21payable by the employing unit in two parts. The first half of the amount due is payable
2.22on or before the July 31 following the date of the invoice, and the second half of the
2.23amount due is payable on or before December 15. Each invoice must be based on the
2.24actuarial valuation report prepared under section356.215 and the standards for actuarial
2.25work promulgated by the Legislative Commission on Pensions and Retirement as of the
2.26valuation date occurring 18 months earlier.
2.27(g) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of
2.28August 1 annually, if the amount of the retirement annuities and benefits paid from the
2.29MERF division account during the preceding fiscal year, multiplied by the factor of 1.035,
2.30exceeds the market value of the assets of the MERF division account on the preceding
2.31June 30, plus state aid of $9,000,000, $22,750,000, or $24,000,000, whichever applies,
2.32plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding
2.33fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional
2.34employer contribution. The special additional employer contribution under this paragraph
2.35is payable in addition to any employer contribution required under paragraphs (c), (d), and
3.1(e), and is payable on or before the following June 30. The special additional employer
3.2contribution under this paragraph must be allocated as specified in paragraph (h).
3.3(h) The employer supplemental contribution under paragraph (e) or the special
3.4additional employer contribution under paragraph (g) must be allocated between the city of
3.5Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned public
3.6utility, improvement, or municipal activity, the Minnesota State Colleges and Universities
3.7system, Hennepin County, the Metropolitan Council, and the Metropolitan Airports
3.8Commission in proportion to their share of the actuarial accrued liability of the former
3.9Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the approved
3.10actuary retained under section356.214 as part of the actuarial valuation prepared as of
3.11July 1, 2009, under section356.215 and the Standards for Actuarial Work adopted by the
3.12Legislative Commission on Pensions and Retirement. Notwithstanding any provision to
3.13the contrary of this paragraph or of any agreement or agreements between MERF-covered
3.14employing units entered into before January 1, 2010, the proportional share of the MERF
3.15division actuarial accrued liability attributable to the Metropolitan Council for determining
3.16the employer supplemental contribution or a special additional employer contribution under
3.17this paragraph is 1.74 percent and the proportional share of the MERF division actuarial
3.18accrued liability attributable to the city of Minneapolis is reduced by that same amount.
3.19(i) The employer contributions under paragraphs (c), (d), (e), and (g) must be paid as
3.20provided in section353.28 .
3.21(j) Contributions under this subdivision are subject to the provisions of section
3.22353.27, subdivisions 4
, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.
3.23EFFECTIVE DATE.This section is effective July 1, 2013.
1.3employer contribution obligation of the Metropolitan Council; amending
1.4Minnesota Statutes 2012, section 353.50, subdivision 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 353.50, subdivision 7, is amended to read:
1.7 Subd. 7. MERF division account contributions. (a) After June 30, 2010, the
1.8member and employer contributions to the MERF division account are governed by this
1.9subdivision.
1.10(b) An active member covered by the MERF division must make an employee
1.11contribution of 9.75 percent of the total salary of the member as defined in section
1.12subdivision 10. The employee contribution must be made by payroll deduction by the
1.13member's employing unit under section
1.14provisions of section
1.15(c) The employer regular contribution to the MERF division account with respect
1.16to an active MERF division member is 9.75 percent of the total salary of the member as
1.17defined in section
1.18(d) The employer additional contribution to the MERF division account with respect
1.19to an active member of the MERF division is 2.68 percent of the total salary of the member
1.20as defined in section
1.21that the employing unit paid or is payable to the former Minneapolis Employees
1.22Retirement Fund under Minnesota Statutes 2008, section
1.23or 2a, during calendar year 2009, as was certified by the former executive director of the
1.24former Minneapolis Employees Retirement Fund.
2.1(e) Annually after June 30, 2012, the employer supplemental contribution to
2.2the MERF division account by the city of Minneapolis, Special School District No. 1,
2.3Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity,
2.4Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and
2.5the Minnesota State Colleges and Universities system is the larger of the following:
2.6(1) the amount by which the total actuarial required contribution determined under
2.7section
2.8Association in the most recent actuarial valuation of the MERF division and based on a
2.9June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b),
2.10(c), and (d), exceeds $22,750,000 or $24,000,000, whichever applies; or
2.11(2) the amount of $27,000,000, but the total supplemental contribution amount
2.12plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000. Each
2.13employing unit's share of the total employer supplemental contribution amount is equal
2.14to the applicable portion specified in paragraph (h). The initial total actuarial required
2.15contribution after June 30, 2012, must be calculated using the mortality assumption
2.16change recommended on September 30, 2009, for the Minneapolis Employees Retirement
2.17Fund by the approved consulting actuary retained by the Minneapolis Employees
2.18Retirement Fund board.
2.19(f) Before January 31, each employing unit must be invoiced for its share of the
2.20total employer supplemental contribution amount under paragraph (e). The amount is
2.21payable by the employing unit in two parts. The first half of the amount due is payable
2.22on or before the July 31 following the date of the invoice, and the second half of the
2.23amount due is payable on or before December 15. Each invoice must be based on the
2.24actuarial valuation report prepared under section
2.25work promulgated by the Legislative Commission on Pensions and Retirement as of the
2.26valuation date occurring 18 months earlier.
2.27(g) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of
2.28August 1 annually, if the amount of the retirement annuities and benefits paid from the
2.29MERF division account during the preceding fiscal year, multiplied by the factor of 1.035,
2.30exceeds the market value of the assets of the MERF division account on the preceding
2.31June 30, plus state aid of $9,000,000, $22,750,000, or $24,000,000, whichever applies,
2.32plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding
2.33fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional
2.34employer contribution. The special additional employer contribution under this paragraph
2.35is payable in addition to any employer contribution required under paragraphs (c), (d), and
3.1(e), and is payable on or before the following June 30. The special additional employer
3.2contribution under this paragraph must be allocated as specified in paragraph (h).
3.3(h) The employer supplemental contribution under paragraph (e) or the special
3.4additional employer contribution under paragraph (g) must be allocated between the city of
3.5Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned public
3.6utility, improvement, or municipal activity, the Minnesota State Colleges and Universities
3.7system, Hennepin County, the Metropolitan Council, and the Metropolitan Airports
3.8Commission in proportion to their share of the actuarial accrued liability of the former
3.9Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the approved
3.10actuary retained under section
3.11July 1, 2009, under section
3.12Legislative Commission on Pensions and Retirement. Notwithstanding any provision to
3.13the contrary of this paragraph or of any agreement or agreements between MERF-covered
3.14employing units entered into before January 1, 2010, the proportional share of the MERF
3.15division actuarial accrued liability attributable to the Metropolitan Council for determining
3.16the employer supplemental contribution or a special additional employer contribution under
3.17this paragraph is 1.74 percent and the proportional share of the MERF division actuarial
3.18accrued liability attributable to the city of Minneapolis is reduced by that same amount.
3.19(i) The employer contributions under paragraphs (c), (d), (e), and (g) must be paid as
3.20provided in section
3.21(j) Contributions under this subdivision are subject to the provisions of section
3.23EFFECTIVE DATE.This section is effective July 1, 2013.
