Bill Text: MN SF1891 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public employees retirement association (PERA) miscellaneous provisions modifications
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-15 - Referred to State Government Innovation and Veterans [SF1891 Detail]
Download: Minnesota-2011-SF1891-Introduced.html
1.2relating to retirement; Public Employees Retirement Association; making
1.3changes of an administrative nature by revising a cross-reference; specifying the
1.4timing of annual employer supplemental contributions for the MERF division;
1.5revising a compensating limit provision to comply with federal law; amending
1.6Minnesota Statutes 2010, sections 353.50, subdivision 7; 356.611, subdivision 2;
1.7Minnesota Statutes 2011 Supplement, section 353.01, subdivision 16.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2011 Supplement, section 353.01, subdivision 16,
1.10is amended to read:
1.11 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
1.12means:
1.13 (1) service during years of actual membership in the course of which employee
1.14deductions were withheld from salary and contributions were made at the applicable rates
1.15under section353.27 ,
353.65 , or
353E.03 ;
1.16(2) periods of service covered by payments in lieu of salary deductions under
1.17sections353.27, subdivision 12 , and
353.35 ;
1.18 (3) service in years during which the public employee was not a member but for
1.19which the member later elected, while a member, to obtain credit by making payments to
1.20the fund as permitted by any law then in effect;
1.21 (4) a period of authorized leave of absence with pay from which deductions for
1.22employee contributions are made, deposited, and credited to the fund;
1.23 (5) a period of authorized personal, parental, or medical leave of absence without
1.24pay, including a leave of absence covered under the federal Family Medical Leave Act,
1.25that does not exceed one year, and for which a member obtained service credit for each
2.1month in the leave period by payment under section353.0161 to the fund made in place of
2.2salary deductions. An employee must return to public service and render a minimum of
2.3three months of allowable service in order to be eligible to make payment under section
2.4353.0161
for a subsequent authorized leave of absence without pay. Upon payment, the
2.5employee must be granted allowable service credit for the purchased period;
2.6 (6) a periodic, repetitive leave that is offered to all employees of a governmental
2.7subdivision. The leave program may not exceed 208 hours per annual normal work cycle
2.8as certified to the association by the employer. A participating member obtains service
2.9credit by making employee contributions in an amount or amounts based on the member's
2.10average salary, excluding overtime pay, that would have been paid if the leave had not been
2.11taken. The employer shall pay the employer and additional employer contributions on
2.12behalf of the participating member. The employee and the employer are responsible to pay
2.13interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
2.14from the end of the normal cycle until full payment is made. An employer shall also make
2.15the employer and additional employer contributions, plus 8.5 percent interest, compounded
2.16annually, on behalf of an employee who makes employee contributions but terminates
2.17public service. The employee contributions must be made within one year after the end of
2.18the annual normal working cycle or within 30 days after termination of public service,
2.19whichever is sooner. The executive director shall prescribe the manner and forms to be
2.20used by a governmental subdivision in administering a periodic, repetitive leave. Upon
2.21payment, the member must be granted allowable service credit for the purchased period;
2.22 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
2.23months allowable service per authorized temporary or seasonal layoff in one calendar year.
2.24An employee who has received the maximum service credit allowed for an authorized
2.25temporary or seasonal layoff must return to public service and must obtain a minimum of
2.26three months of allowable service subsequent to the layoff in order to receive allowable
2.27service for a subsequent authorized temporary or seasonal layoff;
2.28 (8) a period during which a member is absent from employment by a governmental
2.29subdivision by reason of service in the uniformed services, as defined in United States
2.30Code, title 38, section 4303(13), if the member returns to public service with the same
2.31governmental subdivision upon discharge from service in the uniformed service within the
2.32time frames required under United States Code, title 38, section 4312(e), provided that
2.33the member did not separate from uniformed service with a dishonorable or bad conduct
2.34discharge or under other than honorable conditions. The service must be credited if the
2.35member pays into the fund equivalent employee contributions based upon the contribution
2.36rate or rates in effect at the time that the uniformed service was performed multiplied by
3.1the full and fractional years being purchased and applied to the annual salary rate. The
3.2annual salary rate is the average annual salary, excluding overtime pay, during the purchase
3.3period that the member would have received if the member had continued to be employed
3.4in covered employment rather than to provide uniformed service, or, if the determination
3.5of that rate is not reasonably certain, the annual salary rate is the member's average salary
3.6rate, excluding overtime pay, during the 12-month period of covered employment rendered
3.7immediately preceding the period of the uniformed service. Payment of the member
3.8equivalent contributions must be made during a period that begins with the date on which
3.9the individual returns to public employment and that is three times the length of the
3.10military leave period, or within five years of the date of discharge from the military service,
3.11whichever is less. If the determined payment period is less than one year, the contributions
3.12required under this clause to receive service credit may be made within one year of the
3.13discharge date. Payment may not be accepted following 30 days after termination of
3.14public service under subdivision 11a. If the member equivalent contributions provided for
3.15in this clause are not paid in full, the member's allowable service credit must be prorated
3.16by multiplying the full and fractional number of years of uniformed service eligible for
3.17purchase by the ratio obtained by dividing the total member contributions received by the
3.18total member contributions otherwise required under this clause. The equivalent employer
3.19contribution, and, if applicable, the equivalent additional employer contribution must be
3.20paid by the governmental subdivision employing the member if the member makes the
3.21equivalent employee contributions. The employer payments must be made from funds
3.22available to the employing unit, using the employer and additional employer contribution
3.23rate or rates in effect at the time that the uniformed service was performed, applied to the
3.24same annual salary rate or rates used to compute the equivalent member contribution. The
3.25governmental subdivision involved may appropriate money for those payments. The
3.26amount of service credit obtainable under this section may not exceed five years unless a
3.27longer purchase period is required under United States Code, title 38, section 4312. The
3.28employing unit shall pay interest on all equivalent member and employer contribution
3.29amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
3.30compounded annually from the end of each fiscal year of the leave or the break in service
3.31to the end of the month in which the payment is received. Upon payment, the employee
3.32must be granted allowable service credit for the purchased period; or
3.33(9) a period specified undersubdivision 40 section 353.0162.
3.34 (b) For calculating benefits under sections353.30 ,
353.31 ,
353.32 , and
353.33 for
3.35state officers and employees displaced by the Community Corrections Act, chapter 401,
3.36and transferred into county service under section401.04 , "allowable service" means the
4.1combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
4.2section352.01, subdivision 11 .
4.3 (c) For a public employee who has prior service covered by a local police or
4.4firefighters relief association that has consolidated with the Public Employees Retirement
4.5Association under chapter 353A or to which section353.665 applies, and who has
4.6elected the type of benefit coverage provided by the public employees police and fire
4.7fund either under section353A.08 following the consolidation or under section
353.665,
4.8subdivision 4 , "allowable service" is a period of service credited by the local police or
4.9firefighters relief association as of the effective date of the consolidation based on law
4.10and on bylaw provisions governing the relief association on the date of the initiation
4.11of the consolidation procedure.
4.12 (d) No member may receive more than 12 months of allowable service credit in a
4.13year either for vesting purposes or for benefit calculation purposes. For an active member
4.14who was an active member of the former Minneapolis Firefighters Relief Association on
4.15the day prior to the effective date of consolidation under Laws 2011, First Special Session
4.16chapter 8, article 6, section 19, "allowable service" is the period of service credited by
4.17the Minneapolis Firefighters Relief Association as reflected in the transferred records of
4.18the association up to the effective date of consolidation under Laws 2011, First Special
4.19Session chapter 8, article 6, section 19, and the period of service credited under paragraph
4.20(a), clause (1), after the effective date of consolidation under Laws 2011, First Special
4.21Session chapter 8, article 6, section 19. For an active member who was an active member
4.22of the former Minneapolis Police Relief Association on the day prior to the effective date
4.23of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
4.24"allowable service" is the period of service credited by the Minneapolis Police Relief
4.25Association as reflected in the transferred records of the association up to the effective date
4.26of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
4.27and the period of service credited under paragraph (a), clause (1), after the effective date
4.28of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19.
4.29 (e) MS 2002 [Expired]
4.30EFFECTIVE DATE.This section is effective the day following final enactment.
4.31 Sec. 2. Minnesota Statutes 2010, section 353.50, subdivision 7, is amended to read:
4.32 Subd. 7. MERF division account contributions. (a) After June 30, 2010, the
4.33member and employer contributions to the MERF division account are governed by this
4.34subdivision.
5.1(b) An active member covered by the MERF division must make an employee
5.2contribution of 9.75 percent of the total salary of the member as defined in section353.01 ,
5.3subdivision 10. The employee contribution must be made by payroll deduction by the
5.4member's employing unit under section353.27, subdivision 4 , and is subject to the
5.5provisions of section353.27, subdivisions 7 , 7a, 7b, 12, 12a, and 12b.
5.6(c) The employer regular contribution to the MERF division account with respect
5.7to an active MERF division member is 9.75 percent of the total salary of the member as
5.8defined in section353.01, subdivision 10 .
5.9(d) The employer additional contribution to the MERF division account with respect
5.10to an active member of the MERF division is 2.68 percent of the total salary of the member
5.11as defined in section353.01, subdivision 10 , plus the employing unit's share of $3,900,000
5.12that the employing unit paid or is payable to the former Minneapolis Employees
5.13Retirement Fund under Minnesota Statutes 2008, section422A.101, subdivision 1a , 2,
5.14or 2a, during calendar year 2009, as was certified by the former executive director of the
5.15former Minneapolis Employees Retirement Fund.
5.16(e) Annually after June 30, 2012, the employer supplemental contribution to
5.17the MERF division account by the city of Minneapolis, Special School District No. 1,
5.18Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity,
5.19Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and
5.20the Minnesota State Colleges and Universities system is the larger of the following:
5.21(1) the amount by which the total actuarial required contribution determined under
5.22section356.215 by the approved actuary retained by the Public Employees Retirement
5.23Association in the most recent actuarial valuation of the MERF division and based on a
5.24June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b),
5.25(c), and (d), exceeds $22,750,000 or $24,000,000, whichever applies; or
5.26(2) the amount of $27,000,000, but the total supplemental contribution amount
5.27plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000. Each
5.28employing unit's share of the total employer supplemental contribution amount is equal to
5.29the applicable portion specified in paragraph(g) (h). The initial total actuarial required
5.30contribution after June 30, 2012, must be calculated using the mortality assumption
5.31change recommended on September 30, 2009, for the Minneapolis Employees Retirement
5.32Fund by the approved consulting actuary retained by the Minneapolis Employees
5.33Retirement Fund board.
5.34(f) Before January 31, each employing unit must be invoiced for its share of the
5.35total employer supplemental contribution amount under paragraph (e). The amount is
5.36payable by the employing unit in two parts. The first half of the amount due is payable
6.1on or before the July 31 following the date of the invoice, and the second half of the
6.2amount due is payable on or before December 15. Each invoice must be based on the
6.3actuarial valuation report prepared under section 356.215 and the standards for actuarial
6.4work promulgated by the Legislative Commission on Pensions and Retirement as of the
6.5valuation date occurring 18 months earlier.
6.6(f) (g) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as
6.7of August 1 annually, if the amount of the retirement annuities and benefits paid from the
6.8MERF division account during the preceding fiscal year, multiplied by the factor of 1.035,
6.9exceeds the market value of the assets of the MERF division account on the preceding
6.10June 30, plus state aid of $9,000,000, $22,750,000, or $24,000,000, whichever applies,
6.11plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding
6.12fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional
6.13employer contribution. The special additional employer contribution under this paragraph
6.14is payable in addition to any employer contribution required under paragraphs (c), (d), and
6.15(e), and is payable on or before the following June 30. The special additional employer
6.16contribution under this paragraph must be allocated as specified in paragraph(g) (h).
6.17(g) (h) The employer supplemental contribution under paragraph (e) or the special
6.18additional employer contribution under paragraph(f) (g) must be allocated between the
6.19city of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned
6.20public utility, improvement, or municipal activity, the Minnesota State Colleges and
6.21Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan
6.22Airports Commission in proportion to their share of the actuarial accrued liability of the
6.23former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the
6.24approved actuary retained under section356.214 as part of the actuarial valuation prepared
6.25as of July 1, 2009, under section356.215 and the Standards for Actuarial Work adopted by
6.26the Legislative Commission on Pensions and Retirement.
6.27(h) (i) The employer contributions under paragraphs (c), (d), and (e), and (g) must be
6.28paid as provided in section353.28 .
6.29(i) (j) Contributions under this subdivision are subject to the provisions of section
6.30353.27, subdivisions 4
, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.
6.31EFFECTIVE DATE.This section is effective the day following final enactment.
6.32 Sec. 3. Minnesota Statutes 2010, section 356.611, subdivision 2, is amended to read:
6.33 Subd. 2. Federal compensation limits. (a) For members of a covered pension plan
6.34enumerated in section356.30, subdivision 3 , and of the plan established under chapter
6.35353D, compensation in excess of the limitation specified in section 401(a)(17) of the
7.1Internal Revenue Code, as amended, for changes in the cost of living under section
7.2401(a)(17)(B) of the Internal Revenue Code, may not be included for contribution and
7.3benefit computation purposes.
7.4 (b) Notwithstanding paragraph (a), for members specified in paragraph (a) who
7.5first contributed to a plan specified in that paragraph before July 1, 1995, the annual
7.6compensation limit specified in Internal Revenue Code 401(a)(17) on June 30, 1993,
7.7applies if that provides a greater allowable annual compensation.
7.8(c) To the extent required by the federal Internal Revenue Code, sections 3401(h)
7.9and 414(u)(12), an individual receiving a differential wage payment as defined in section
7.103401(h)(2) of the federal Internal Revenue Code from an employer shall be treated
7.11as employed by that employer, and the differential wage payment will be treated as
7.12compensation for purposes of applying the limits on annual additions under section 415(c)
7.13of the federal Internal Revenue Code.
7.14EFFECTIVE DATE.This section is effective retroactively from January 1, 2009.
1.3changes of an administrative nature by revising a cross-reference; specifying the
1.4timing of annual employer supplemental contributions for the MERF division;
1.5revising a compensating limit provision to comply with federal law; amending
1.6Minnesota Statutes 2010, sections 353.50, subdivision 7; 356.611, subdivision 2;
1.7Minnesota Statutes 2011 Supplement, section 353.01, subdivision 16.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2011 Supplement, section 353.01, subdivision 16,
1.10is amended to read:
1.11 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
1.12means:
1.13 (1) service during years of actual membership in the course of which employee
1.14deductions were withheld from salary and contributions were made at the applicable rates
1.15under section
1.16(2) periods of service covered by payments in lieu of salary deductions under
1.17sections
1.18 (3) service in years during which the public employee was not a member but for
1.19which the member later elected, while a member, to obtain credit by making payments to
1.20the fund as permitted by any law then in effect;
1.21 (4) a period of authorized leave of absence with pay from which deductions for
1.22employee contributions are made, deposited, and credited to the fund;
1.23 (5) a period of authorized personal, parental, or medical leave of absence without
1.24pay, including a leave of absence covered under the federal Family Medical Leave Act,
1.25that does not exceed one year, and for which a member obtained service credit for each
2.1month in the leave period by payment under section
2.2salary deductions. An employee must return to public service and render a minimum of
2.3three months of allowable service in order to be eligible to make payment under section
2.5employee must be granted allowable service credit for the purchased period;
2.6 (6) a periodic, repetitive leave that is offered to all employees of a governmental
2.7subdivision. The leave program may not exceed 208 hours per annual normal work cycle
2.8as certified to the association by the employer. A participating member obtains service
2.9credit by making employee contributions in an amount or amounts based on the member's
2.10average salary, excluding overtime pay, that would have been paid if the leave had not been
2.11taken. The employer shall pay the employer and additional employer contributions on
2.12behalf of the participating member. The employee and the employer are responsible to pay
2.13interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
2.14from the end of the normal cycle until full payment is made. An employer shall also make
2.15the employer and additional employer contributions, plus 8.5 percent interest, compounded
2.16annually, on behalf of an employee who makes employee contributions but terminates
2.17public service. The employee contributions must be made within one year after the end of
2.18the annual normal working cycle or within 30 days after termination of public service,
2.19whichever is sooner. The executive director shall prescribe the manner and forms to be
2.20used by a governmental subdivision in administering a periodic, repetitive leave. Upon
2.21payment, the member must be granted allowable service credit for the purchased period;
2.22 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
2.23months allowable service per authorized temporary or seasonal layoff in one calendar year.
2.24An employee who has received the maximum service credit allowed for an authorized
2.25temporary or seasonal layoff must return to public service and must obtain a minimum of
2.26three months of allowable service subsequent to the layoff in order to receive allowable
2.27service for a subsequent authorized temporary or seasonal layoff;
2.28 (8) a period during which a member is absent from employment by a governmental
2.29subdivision by reason of service in the uniformed services, as defined in United States
2.30Code, title 38, section 4303(13), if the member returns to public service with the same
2.31governmental subdivision upon discharge from service in the uniformed service within the
2.32time frames required under United States Code, title 38, section 4312(e), provided that
2.33the member did not separate from uniformed service with a dishonorable or bad conduct
2.34discharge or under other than honorable conditions. The service must be credited if the
2.35member pays into the fund equivalent employee contributions based upon the contribution
2.36rate or rates in effect at the time that the uniformed service was performed multiplied by
3.1the full and fractional years being purchased and applied to the annual salary rate. The
3.2annual salary rate is the average annual salary, excluding overtime pay, during the purchase
3.3period that the member would have received if the member had continued to be employed
3.4in covered employment rather than to provide uniformed service, or, if the determination
3.5of that rate is not reasonably certain, the annual salary rate is the member's average salary
3.6rate, excluding overtime pay, during the 12-month period of covered employment rendered
3.7immediately preceding the period of the uniformed service. Payment of the member
3.8equivalent contributions must be made during a period that begins with the date on which
3.9the individual returns to public employment and that is three times the length of the
3.10military leave period, or within five years of the date of discharge from the military service,
3.11whichever is less. If the determined payment period is less than one year, the contributions
3.12required under this clause to receive service credit may be made within one year of the
3.13discharge date. Payment may not be accepted following 30 days after termination of
3.14public service under subdivision 11a. If the member equivalent contributions provided for
3.15in this clause are not paid in full, the member's allowable service credit must be prorated
3.16by multiplying the full and fractional number of years of uniformed service eligible for
3.17purchase by the ratio obtained by dividing the total member contributions received by the
3.18total member contributions otherwise required under this clause. The equivalent employer
3.19contribution, and, if applicable, the equivalent additional employer contribution must be
3.20paid by the governmental subdivision employing the member if the member makes the
3.21equivalent employee contributions. The employer payments must be made from funds
3.22available to the employing unit, using the employer and additional employer contribution
3.23rate or rates in effect at the time that the uniformed service was performed, applied to the
3.24same annual salary rate or rates used to compute the equivalent member contribution. The
3.25governmental subdivision involved may appropriate money for those payments. The
3.26amount of service credit obtainable under this section may not exceed five years unless a
3.27longer purchase period is required under United States Code, title 38, section 4312. The
3.28employing unit shall pay interest on all equivalent member and employer contribution
3.29amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
3.30compounded annually from the end of each fiscal year of the leave or the break in service
3.31to the end of the month in which the payment is received. Upon payment, the employee
3.32must be granted allowable service credit for the purchased period; or
3.33(9) a period specified under
3.34 (b) For calculating benefits under sections
3.35state officers and employees displaced by the Community Corrections Act, chapter 401,
3.36and transferred into county service under section
4.1combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
4.2section
4.3 (c) For a public employee who has prior service covered by a local police or
4.4firefighters relief association that has consolidated with the Public Employees Retirement
4.5Association under chapter 353A or to which section
4.6elected the type of benefit coverage provided by the public employees police and fire
4.7fund either under section
4.8subdivision 4
4.9firefighters relief association as of the effective date of the consolidation based on law
4.10and on bylaw provisions governing the relief association on the date of the initiation
4.11of the consolidation procedure.
4.12 (d) No member may receive more than 12 months of allowable service credit in a
4.13year either for vesting purposes or for benefit calculation purposes. For an active member
4.14who was an active member of the former Minneapolis Firefighters Relief Association on
4.15the day prior to the effective date of consolidation under Laws 2011, First Special Session
4.16chapter 8, article 6, section 19, "allowable service" is the period of service credited by
4.17the Minneapolis Firefighters Relief Association as reflected in the transferred records of
4.18the association up to the effective date of consolidation under Laws 2011, First Special
4.19Session chapter 8, article 6, section 19, and the period of service credited under paragraph
4.20(a), clause (1), after the effective date of consolidation under Laws 2011, First Special
4.21Session chapter 8, article 6, section 19. For an active member who was an active member
4.22of the former Minneapolis Police Relief Association on the day prior to the effective date
4.23of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
4.24"allowable service" is the period of service credited by the Minneapolis Police Relief
4.25Association as reflected in the transferred records of the association up to the effective date
4.26of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
4.27and the period of service credited under paragraph (a), clause (1), after the effective date
4.28of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19.
4.29 (e) MS 2002 [Expired]
4.30EFFECTIVE DATE.This section is effective the day following final enactment.
4.31 Sec. 2. Minnesota Statutes 2010, section 353.50, subdivision 7, is amended to read:
4.32 Subd. 7. MERF division account contributions. (a) After June 30, 2010, the
4.33member and employer contributions to the MERF division account are governed by this
4.34subdivision.
5.1(b) An active member covered by the MERF division must make an employee
5.2contribution of 9.75 percent of the total salary of the member as defined in section
5.3subdivision 10. The employee contribution must be made by payroll deduction by the
5.4member's employing unit under section
5.5provisions of section
5.6(c) The employer regular contribution to the MERF division account with respect
5.7to an active MERF division member is 9.75 percent of the total salary of the member as
5.8defined in section
5.9(d) The employer additional contribution to the MERF division account with respect
5.10to an active member of the MERF division is 2.68 percent of the total salary of the member
5.11as defined in section
5.12that the employing unit paid or is payable to the former Minneapolis Employees
5.13Retirement Fund under Minnesota Statutes 2008, section
5.14or 2a, during calendar year 2009, as was certified by the former executive director of the
5.15former Minneapolis Employees Retirement Fund.
5.16(e) Annually after June 30, 2012, the employer supplemental contribution to
5.17the MERF division account by the city of Minneapolis, Special School District No. 1,
5.18Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity,
5.19Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and
5.20the Minnesota State Colleges and Universities system is the larger of the following:
5.21(1) the amount by which the total actuarial required contribution determined under
5.22section
5.23Association in the most recent actuarial valuation of the MERF division and based on a
5.24June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b),
5.25(c), and (d), exceeds $22,750,000 or $24,000,000, whichever applies; or
5.26(2) the amount of $27,000,000, but the total supplemental contribution amount
5.27plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000. Each
5.28employing unit's share of the total employer supplemental contribution amount is equal to
5.29the applicable portion specified in paragraph
5.30contribution after June 30, 2012, must be calculated using the mortality assumption
5.31change recommended on September 30, 2009, for the Minneapolis Employees Retirement
5.32Fund by the approved consulting actuary retained by the Minneapolis Employees
5.33Retirement Fund board.
5.34(f) Before January 31, each employing unit must be invoiced for its share of the
5.35total employer supplemental contribution amount under paragraph (e). The amount is
5.36payable by the employing unit in two parts. The first half of the amount due is payable
6.1on or before the July 31 following the date of the invoice, and the second half of the
6.2amount due is payable on or before December 15. Each invoice must be based on the
6.3actuarial valuation report prepared under section 356.215 and the standards for actuarial
6.4work promulgated by the Legislative Commission on Pensions and Retirement as of the
6.5valuation date occurring 18 months earlier.
6.6
6.7of August 1 annually, if the amount of the retirement annuities and benefits paid from the
6.8MERF division account during the preceding fiscal year, multiplied by the factor of 1.035,
6.9exceeds the market value of the assets of the MERF division account on the preceding
6.10June 30, plus state aid of $9,000,000, $22,750,000, or $24,000,000, whichever applies,
6.11plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding
6.12fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional
6.13employer contribution. The special additional employer contribution under this paragraph
6.14is payable in addition to any employer contribution required under paragraphs (c), (d), and
6.15(e), and is payable on or before the following June 30. The special additional employer
6.16contribution under this paragraph must be allocated as specified in paragraph
6.17
6.18additional employer contribution under paragraph
6.19city of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned
6.20public utility, improvement, or municipal activity, the Minnesota State Colleges and
6.21Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan
6.22Airports Commission in proportion to their share of the actuarial accrued liability of the
6.23former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the
6.24approved actuary retained under section
6.25as of July 1, 2009, under section
6.26the Legislative Commission on Pensions and Retirement.
6.27
6.28paid as provided in section
6.29
6.31EFFECTIVE DATE.This section is effective the day following final enactment.
6.32 Sec. 3. Minnesota Statutes 2010, section 356.611, subdivision 2, is amended to read:
6.33 Subd. 2. Federal compensation limits. (a) For members of a covered pension plan
6.34enumerated in section
6.35353D, compensation in excess of the limitation specified in section 401(a)(17) of the
7.1Internal Revenue Code, as amended, for changes in the cost of living under section
7.2401(a)(17)(B) of the Internal Revenue Code, may not be included for contribution and
7.3benefit computation purposes.
7.4 (b) Notwithstanding paragraph (a), for members specified in paragraph (a) who
7.5first contributed to a plan specified in that paragraph before July 1, 1995, the annual
7.6compensation limit specified in Internal Revenue Code 401(a)(17) on June 30, 1993,
7.7applies if that provides a greater allowable annual compensation.
7.8(c) To the extent required by the federal Internal Revenue Code, sections 3401(h)
7.9and 414(u)(12), an individual receiving a differential wage payment as defined in section
7.103401(h)(2) of the federal Internal Revenue Code from an employer shall be treated
7.11as employed by that employer, and the differential wage payment will be treated as
7.12compensation for purposes of applying the limits on annual additions under section 415(c)
7.13of the federal Internal Revenue Code.
7.14EFFECTIVE DATE.This section is effective retroactively from January 1, 2009.
