Bill Text: MN SF1114 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Duluth seaway port authority employees in public employees retirement association (PERA) authorization
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2011-04-14 - Author added Bakk [SF1114 Detail]
Download: Minnesota-2011-SF1114-Introduced.html
1.2relating to retirement; Public Employees Retirement Association general
1.3employees retirement plan; Seaway Port Authority of Duluth; including Seaway
1.4Port Authority of Duluth employees in PERA-general retirement coverage;
1.5authorizing the purchase of allowable service credit for prior Seaway Port
1.6Authority of Duluth employment; amending Minnesota Statutes 2010, section
1.7353.01, subdivisions 2a, 6.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:
1.10 Subd. 2a. Included employees; mandatory membership. (a) Public employees
1.11whose salary exceeds $425 in any month and who are not specifically excluded under
1.12subdivision 2b or who have not been provided an option to participate under subdivision
1.132d, whether individually or by action of the governmental subdivision, must participate as
1.14members of the association with retirement coverage by the general employees retirement
1.15plan under this chapter, the public employees police and fire retirement plan under this
1.16chapter, or the local government correctional employees retirement plan under chapter
1.17353E, whichever applies. Membership commences as a condition of their employment on
1.18the first day of their employment or on the first day that the eligibility criteria are met,
1.19whichever is later. Public employees include but are not limited to:
1.20(1) persons whose salary meets the threshold in this paragraph from employment in
1.21one or more positions within one governmental subdivision;
1.22(2) elected county sheriffs;
1.23(3) persons who are appointed, employed, or contracted to perform governmental
1.24functions that by law or local ordinance are required of a public officer, including, but
1.25not limited to:
2.1(i) town and city clerk or treasurer;
2.2(ii) county auditor, treasurer, or recorder;
2.3(iii) city manager as defined in section353.028 who does not exercise the option
2.4provided under subdivision 2d; or
2.5(iv) emergency management director, as provided under section12.25 ;
2.6(4) physicians under section353D.01, subdivision 2 , who do not elect public
2.7employees defined contribution plan coverage under section353D.02, subdivision 2 ;
2.8(5) full-time employees of the Dakota County Agricultural Society;and
2.9(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
2.10Police Relief Association who are not excluded employees under subdivision 2b due
2.11to coverage by the relief association pension plan and who elected general employee
2.12retirement plan coverage before August 20, 2009.; and
2.13(7) employees of the Seaway Port Authority of Duluth who are not excluded
2.14employees under subdivision 2b.
2.15 (b) A public employee or elected official who was a member of the association on
2.16June 30, 2002, based on employment that qualified for membership coverage by the public
2.17employees retirement plan or the public employees police and fire plan under this chapter,
2.18or the local government correctional employees retirement plan under chapter 353E as of
2.19June 30, 2002, retains that membership for the duration of the person's employment in that
2.20position or incumbency in elected office. Except as provided in subdivision 28, the person
2.21shall participate as a member until the employee or elected official terminates public
2.22employment under subdivision 11a or terminates membership under subdivision 11b.
2.23(c) If the salary of an included public employee is less than $425 in any subsequent
2.24month, the member retains membership eligibility.
2.25(d) For the purpose of participation in the MERF division of the general employees
2.26retirement plan, public employees include employees who were members of the former
2.27Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
2.28members of the MERF division of the association.
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
2.30 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 6, is amended to read:
2.31 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
2.32county, city, town, school district within this state, or a department, unit or instrumentality
2.33of state or local government, or any public body established under state or local
2.34authority that has a governmental purpose, is under public control, is responsible for the
3.1employment and payment of the salaries of employees of the entity, and receives a major
3.2portion of its revenues from taxation, fees, assessments or from other public sources.
3.3 (b) Governmental subdivision also means the Public Employees Retirement
3.4Association, the League of Minnesota Cities, the Association of Metropolitan
3.5Municipalities, charter schools formed under section124D.10 , service cooperatives
3.6exercising retirement plan participation under section123A.21, subdivision 5 , joint
3.7powers boards organized under section471.59, subdivision 11 , paragraph (a), family
3.8service collaboratives and children's mental health collaboratives organized under
3.9section471.59 , subdivision 11, paragraph (b) or (c), provided that the entities creating
3.10the collaboratives are governmental units that otherwise qualify for retirement plan
3.11membership, public hospitals owned or operated by, or an integral part of, a governmental
3.12subdivision or governmental subdivisions, the Association of Minnesota Counties, the
3.13Minnesota Inter-county Association, the Minnesota Municipal Utilities Association, the
3.14Metropolitan Airports Commission, the University of Minnesota with respect to police
3.15officers covered by the public employees police and fire retirement plan, the Minneapolis
3.16Employees Retirement Fund for employment initially commenced after June 30, 1979, the
3.17Range Association of Municipalities and Schools, soil and water conservation districts,
3.18economic development authorities created or operating under sections469.090 to
3.19469.108
, the Port Authority of the city of St. Paul, the Seaway Port Authority of Duluth,
3.20the Spring Lake Park Fire Department, incorporated, the Lake Johanna Volunteer Fire
3.21Department, incorporated, the Red Wing Environmental Learning Center, the Dakota
3.22County Agricultural Society, Hennepin Healthcare System, Inc., and the Minneapolis
3.23Firefighters Relief Association and Minneapolis Police Relief Association with respect to
3.24staff covered by the Public Employees Retirement Association general plan.
3.25 (c) Governmental subdivision does not mean any municipal housing and
3.26redevelopment authority organized under the provisions of sections469.001 to
469.047 ;
3.27or any port authority organized under sections469.048 to
469.089 other than the Port
3.28Authority of the city of St. Paul or the Seaway Port Authority of Duluth; or any hospital
3.29district organized or reorganized prior to July 1, 1975, under sections447.31 to
447.37 or
3.30the successor of the district; or the board of a family service collaborative or children's
3.31mental health collaborative organized under sections124D.23 ,
245.491 to
245.495 , or
3.32471.59
, if that board is not controlled by representatives of governmental units.
3.33 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
3.34Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
3.35governmental subdivision unless the entity has obtained a written advisory opinion from
3.36the United States Department of Labor or a ruling from the Internal Revenue Service
4.1declaring the entity to be an instrumentality of the state so as to provide that any future
4.2contributions by the entity on behalf of its employees are contributions to a governmental
4.3plan within the meaning of Internal Revenue Code, section 414(d).
4.4 (e) A public body created by state or local authority may request membership on
4.5behalf of its employees by providing sufficient evidence that it meets the requirements in
4.6paragraph (a).
4.7 (f) An entity determined to be a governmental subdivision is subject to the reporting
4.8requirements of this chapter upon receipt of a written notice of eligibility from the
4.9association.
4.10EFFECTIVE DATE.This section is effective the day following final enactment.
4.11 Sec. 3. PERA-GENERAL; PRIOR SEAWAY PORT AUTHORITY OF DULUTH
4.12SERVICE CREDIT TRANSFER.
4.13 Subdivision 1. PERA-general coverage. Employees of the Seaway Port Authority
4.14of Duluth on July 1, 2011, are public employees within the meaning of Minnesota
4.15Statutes, section 353.01, subdivisions 2 and 2a, and are members of the general employees
4.16retirement plan of the Public Employees Retirement Association as of that date.
4.17 Subd. 2. Service and salary credit for prior Seaway Port Authority of Duluth
4.18employment. (a) Any employee of the Seaway Port Authority of Duluth on the effective
4.19date of this section is eligible, on or after July 1, 2011, to transfer to the general employees
4.20retirement plan of the Public Employees Retirement Association prior service credit
4.21rendered in the employ of the Seaway Port Authority of Duluth as allowable service
4.22credit, but not to exceed the maximum set forth in paragraph (c), and prior salary received
4.23from employment by the Seaway Port Authority of Duluth as salary credit as provided in
4.24paragraph (b).
4.25(b) The amount of allowable service and salary credit to be transferred to the general
4.26employees retirement plan for prior Seaway Port Authority of Duluth employment is that
4.27portion of the total prior Seaway Port Authority of Duluth employment that bears the same
4.28relationship that the assets transferred to the general employees retirement fund with
4.29respect to each applicable person bear to the full actuarial value of the benefit attributable
4.30to the prior service and salary under Minnesota Statutes, chapters 353 and 356. The full
4.31actuarial value of the benefit attributable to the prior service under Minnesota Statutes,
4.32chapters 353 and 356, is as provided in Minnesota Statutes, section 356.551. The assets
4.33transferred with respect to each applicable person is the person's account balance in the
4.34Seaway Port Authority of Duluth federal Internal Revenue Code Section 401(a) retirement
4.35plan, the person's account balance in a federal Internal Revenue Code Section 457 deferred
5.1compensation plan, the person's share of any purchase payment amounts that the Seaway
5.2Port Authority of Duluth irrevocably commits to contribute to the general employees
5.3retirement fund, and any purchase payment amount contributed by the applicable person
5.4to the general employees retirement fund. Any amounts from the federal Internal Revenue
5.5Code Section 401(a) retirement plan, the federal Internal Revenue Code Section 457
5.6deferred compensation plan, or from a purchase payment amount provided by the Seaway
5.7Port Authority of Duluth must be made on an institution-to-institution basis.
5.8(c) If the assets transferred with respect to an applicable person under paragraph
5.9(b) are less than the full actuarial value of the benefit attributable to the prior service, the
5.10untransferred balance of the prior service and salary may be purchased by the applicable
5.11person or a combination of the applicable person and the Seaway Port Authority of
5.12Duluth under Minnesota Statutes, section 356.551. No applicable person may purchase
5.13more allowable service and salary credit from the general employees retirement plan of
5.14the Public Employees Retirement Association than the person's period of employment
5.15by the Seaway Port Authority of Duluth rendered before the effective date of this section
5.16if the employment would have been eligible service and salary for general employees
5.17retirement plan coverage if the service had been rendered or salary received after the
5.18effective date of this section.
5.19(d) An applicable person must provide any documentation related to eligibility
5.20under the general employees retirement plan that is required by the executive director.
5.21Allowable service and salary credit for any period must be transferred and recognized
5.22by the general employees retirement plan for an applicable person upon receipt of the
5.23associated transferred assets.
5.24(e) Transferred service and salary credit related to the Seaway Port Authority of
5.25Duluth before July 1, 1989, does not make a person eligible for a retirement annuity under
5.26Minnesota Statutes, section 353.30, subdivision 1a.
5.27(f) Authority to have service and salary credit transferred under this section expires
5.28on July 1, 2013, or on the date that the applicable person terminates employment by the
5.29Seaway Port Authority of Duluth, whichever is earlier.
5.30 Subd. 3. Status of service transfer amounts. Notwithstanding any provision of
5.31Minnesota Statutes, section 353.32, 353.34, or 353.35, to the contrary, amounts transferred
5.32to the general employees retirement fund of the Public Employees Retirement Association
5.33under subdivision 2 must be considered to be an accumulated member contribution
5.34deduction.
5.35EFFECTIVE DATE.This section is effective the day following final enactment.
1.3employees retirement plan; Seaway Port Authority of Duluth; including Seaway
1.4Port Authority of Duluth employees in PERA-general retirement coverage;
1.5authorizing the purchase of allowable service credit for prior Seaway Port
1.6Authority of Duluth employment; amending Minnesota Statutes 2010, section
1.7353.01, subdivisions 2a, 6.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:
1.10 Subd. 2a. Included employees; mandatory membership. (a) Public employees
1.11whose salary exceeds $425 in any month and who are not specifically excluded under
1.12subdivision 2b or who have not been provided an option to participate under subdivision
1.132d, whether individually or by action of the governmental subdivision, must participate as
1.14members of the association with retirement coverage by the general employees retirement
1.15plan under this chapter, the public employees police and fire retirement plan under this
1.16chapter, or the local government correctional employees retirement plan under chapter
1.17353E, whichever applies. Membership commences as a condition of their employment on
1.18the first day of their employment or on the first day that the eligibility criteria are met,
1.19whichever is later. Public employees include but are not limited to:
1.20(1) persons whose salary meets the threshold in this paragraph from employment in
1.21one or more positions within one governmental subdivision;
1.22(2) elected county sheriffs;
1.23(3) persons who are appointed, employed, or contracted to perform governmental
1.24functions that by law or local ordinance are required of a public officer, including, but
1.25not limited to:
2.1(i) town and city clerk or treasurer;
2.2(ii) county auditor, treasurer, or recorder;
2.3(iii) city manager as defined in section
2.4provided under subdivision 2d; or
2.5(iv) emergency management director, as provided under section
2.6(4) physicians under section
2.7employees defined contribution plan coverage under section
2.8(5) full-time employees of the Dakota County Agricultural Society;
2.9(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
2.10Police Relief Association who are not excluded employees under subdivision 2b due
2.11to coverage by the relief association pension plan and who elected general employee
2.12retirement plan coverage before August 20, 2009
2.13(7) employees of the Seaway Port Authority of Duluth who are not excluded
2.14employees under subdivision 2b.
2.15 (b) A public employee or elected official who was a member of the association on
2.16June 30, 2002, based on employment that qualified for membership coverage by the public
2.17employees retirement plan or the public employees police and fire plan under this chapter,
2.18or the local government correctional employees retirement plan under chapter 353E as of
2.19June 30, 2002, retains that membership for the duration of the person's employment in that
2.20position or incumbency in elected office. Except as provided in subdivision 28, the person
2.21shall participate as a member until the employee or elected official terminates public
2.22employment under subdivision 11a or terminates membership under subdivision 11b.
2.23(c) If the salary of an included public employee is less than $425 in any subsequent
2.24month, the member retains membership eligibility.
2.25(d) For the purpose of participation in the MERF division of the general employees
2.26retirement plan, public employees include employees who were members of the former
2.27Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
2.28members of the MERF division of the association.
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
2.30 Sec. 2. Minnesota Statutes 2010, section 353.01, subdivision 6, is amended to read:
2.31 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
2.32county, city, town, school district within this state, or a department, unit or instrumentality
2.33of state or local government, or any public body established under state or local
2.34authority that has a governmental purpose, is under public control, is responsible for the
3.1employment and payment of the salaries of employees of the entity, and receives a major
3.2portion of its revenues from taxation, fees, assessments or from other public sources.
3.3 (b) Governmental subdivision also means the Public Employees Retirement
3.4Association, the League of Minnesota Cities, the Association of Metropolitan
3.5Municipalities, charter schools formed under section
3.6exercising retirement plan participation under section
3.7powers boards organized under section
3.8service collaboratives and children's mental health collaboratives organized under
3.9section
3.10the collaboratives are governmental units that otherwise qualify for retirement plan
3.11membership, public hospitals owned or operated by, or an integral part of, a governmental
3.12subdivision or governmental subdivisions, the Association of Minnesota Counties, the
3.13Minnesota Inter-county Association, the Minnesota Municipal Utilities Association, the
3.14Metropolitan Airports Commission, the University of Minnesota with respect to police
3.15officers covered by the public employees police and fire retirement plan, the Minneapolis
3.16Employees Retirement Fund for employment initially commenced after June 30, 1979, the
3.17Range Association of Municipalities and Schools, soil and water conservation districts,
3.18economic development authorities created or operating under sections
3.20the Spring Lake Park Fire Department, incorporated, the Lake Johanna Volunteer Fire
3.21Department, incorporated, the Red Wing Environmental Learning Center, the Dakota
3.22County Agricultural Society, Hennepin Healthcare System, Inc., and the Minneapolis
3.23Firefighters Relief Association and Minneapolis Police Relief Association with respect to
3.24staff covered by the Public Employees Retirement Association general plan.
3.25 (c) Governmental subdivision does not mean any municipal housing and
3.26redevelopment authority organized under the provisions of sections
3.27or any port authority organized under sections
3.28Authority of the city of St. Paul or the Seaway Port Authority of Duluth; or any hospital
3.29district organized or reorganized prior to July 1, 1975, under sections
3.30the successor of the district; or the board of a family service collaborative or children's
3.31mental health collaborative organized under sections
3.33 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
3.34Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
3.35governmental subdivision unless the entity has obtained a written advisory opinion from
3.36the United States Department of Labor or a ruling from the Internal Revenue Service
4.1declaring the entity to be an instrumentality of the state so as to provide that any future
4.2contributions by the entity on behalf of its employees are contributions to a governmental
4.3plan within the meaning of Internal Revenue Code, section 414(d).
4.4 (e) A public body created by state or local authority may request membership on
4.5behalf of its employees by providing sufficient evidence that it meets the requirements in
4.6paragraph (a).
4.7 (f) An entity determined to be a governmental subdivision is subject to the reporting
4.8requirements of this chapter upon receipt of a written notice of eligibility from the
4.9association.
4.10EFFECTIVE DATE.This section is effective the day following final enactment.
4.11 Sec. 3. PERA-GENERAL; PRIOR SEAWAY PORT AUTHORITY OF DULUTH
4.12SERVICE CREDIT TRANSFER.
4.13 Subdivision 1. PERA-general coverage. Employees of the Seaway Port Authority
4.14of Duluth on July 1, 2011, are public employees within the meaning of Minnesota
4.15Statutes, section 353.01, subdivisions 2 and 2a, and are members of the general employees
4.16retirement plan of the Public Employees Retirement Association as of that date.
4.17 Subd. 2. Service and salary credit for prior Seaway Port Authority of Duluth
4.18employment. (a) Any employee of the Seaway Port Authority of Duluth on the effective
4.19date of this section is eligible, on or after July 1, 2011, to transfer to the general employees
4.20retirement plan of the Public Employees Retirement Association prior service credit
4.21rendered in the employ of the Seaway Port Authority of Duluth as allowable service
4.22credit, but not to exceed the maximum set forth in paragraph (c), and prior salary received
4.23from employment by the Seaway Port Authority of Duluth as salary credit as provided in
4.24paragraph (b).
4.25(b) The amount of allowable service and salary credit to be transferred to the general
4.26employees retirement plan for prior Seaway Port Authority of Duluth employment is that
4.27portion of the total prior Seaway Port Authority of Duluth employment that bears the same
4.28relationship that the assets transferred to the general employees retirement fund with
4.29respect to each applicable person bear to the full actuarial value of the benefit attributable
4.30to the prior service and salary under Minnesota Statutes, chapters 353 and 356. The full
4.31actuarial value of the benefit attributable to the prior service under Minnesota Statutes,
4.32chapters 353 and 356, is as provided in Minnesota Statutes, section 356.551. The assets
4.33transferred with respect to each applicable person is the person's account balance in the
4.34Seaway Port Authority of Duluth federal Internal Revenue Code Section 401(a) retirement
4.35plan, the person's account balance in a federal Internal Revenue Code Section 457 deferred
5.1compensation plan, the person's share of any purchase payment amounts that the Seaway
5.2Port Authority of Duluth irrevocably commits to contribute to the general employees
5.3retirement fund, and any purchase payment amount contributed by the applicable person
5.4to the general employees retirement fund. Any amounts from the federal Internal Revenue
5.5Code Section 401(a) retirement plan, the federal Internal Revenue Code Section 457
5.6deferred compensation plan, or from a purchase payment amount provided by the Seaway
5.7Port Authority of Duluth must be made on an institution-to-institution basis.
5.8(c) If the assets transferred with respect to an applicable person under paragraph
5.9(b) are less than the full actuarial value of the benefit attributable to the prior service, the
5.10untransferred balance of the prior service and salary may be purchased by the applicable
5.11person or a combination of the applicable person and the Seaway Port Authority of
5.12Duluth under Minnesota Statutes, section 356.551. No applicable person may purchase
5.13more allowable service and salary credit from the general employees retirement plan of
5.14the Public Employees Retirement Association than the person's period of employment
5.15by the Seaway Port Authority of Duluth rendered before the effective date of this section
5.16if the employment would have been eligible service and salary for general employees
5.17retirement plan coverage if the service had been rendered or salary received after the
5.18effective date of this section.
5.19(d) An applicable person must provide any documentation related to eligibility
5.20under the general employees retirement plan that is required by the executive director.
5.21Allowable service and salary credit for any period must be transferred and recognized
5.22by the general employees retirement plan for an applicable person upon receipt of the
5.23associated transferred assets.
5.24(e) Transferred service and salary credit related to the Seaway Port Authority of
5.25Duluth before July 1, 1989, does not make a person eligible for a retirement annuity under
5.26Minnesota Statutes, section 353.30, subdivision 1a.
5.27(f) Authority to have service and salary credit transferred under this section expires
5.28on July 1, 2013, or on the date that the applicable person terminates employment by the
5.29Seaway Port Authority of Duluth, whichever is earlier.
5.30 Subd. 3. Status of service transfer amounts. Notwithstanding any provision of
5.31Minnesota Statutes, section 353.32, 353.34, or 353.35, to the contrary, amounts transferred
5.32to the general employees retirement fund of the Public Employees Retirement Association
5.33under subdivision 2 must be considered to be an accumulated member contribution
5.34deduction.
5.35EFFECTIVE DATE.This section is effective the day following final enactment.
