Bill Text: MN SF273 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Public employees retirement association (PERA) salary definition modification
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-02-06 - Referred to State and Local Government [SF273 Detail]
Download: Minnesota-2013-SF273-Introduced.html
1.2relating to retirement; Public Employees Retirement Association; revising
1.3the definition of salary; amending Minnesota Statutes 2012, section 353.01,
1.4subdivision 10.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
1.7 Subd. 10. Salary. (a) Subject to the limitations of section356.611 , "salary" means:
1.8 (1) the wages or periodic compensationof paid to a public employee, by the
1.9employing governmental subdivision before:
1.10 (i) employee retirement deductions that are designated as picked-up contributions
1.11under section 356.62; and
1.12 (ii) any employee-elected tax-sheltered deductions for deferred compensation,
1.13supplemental retirement plans, or other voluntary salary reduction programs, and also
1.14means "wages" and includes net income from fees that would have otherwise been
1.15available as a cash payment to the employee;
1.16 (2) for a public employee who is covered by a supplemental retirement plan
1.17under section356.24, subdivision 1 , clause (7), (8), (9), or (10), which require all plan
1.18contributions be made by the employer, the contribution contributions to the applicable
1.19supplemental retirement plan when an agreement between the parties establishes that the
1.20contribution contributions will either result in a mandatory reduction of employees' wages
1.21through payroll withholdings, or be made in lieu of an amount that would otherwise be
1.22paid as wages;and
1.23 (3) for a public employee who has prior service covered by a local police or
1.24firefighters relief association that has consolidated with the Public Employees Retirement
2.1Association or to which section353.665 applies and who has elected coverage either
2.2under the public employees police and fire fund benefit plan under section353A.08
2.3following the consolidation or under section
353.665, subdivision 4 , the rate of salary
2.4upon which member contributions to the special fund of the relief association were made
2.5prior to the effective date of the consolidation as specified by law and by bylaw provisions
2.6governing the relief association on the date of the initiation of the consolidation procedure
2.7and the actual periodic compensation of the public employee after the effective date of
2.8consolidation.;
2.9 (4) for a public employee who receives payment through a grievance, settlement,
2.10or court order that is attached to a specific period in which the employee's regular salary
2.11was not earned or paid to the member due to suspension, leave of absence, or period of
2.12involuntary termination that is not a wrongful discharge under section 356.50, the amount
2.13that is equivalent to the earnings the member would have otherwise earned during the
2.14applicable period;
2.15 (5) for a member who is absent from employment by reason of an authorized
2.16personal, parental, medical, or military leave of absence, the amount paid to the employee
2.17during the leave period that is equivalent to the earnings the member would have otherwise
2.18earned during the applicable period; and
2.19 (6) for a public employee who receives performance or merit bonus payment under a
2.20written compensation plan, policy, or bargaining agreement, the compensation paid to the
2.21employee for attaining performance goals, duties, or measures during a specified period
2.22of employment. Performance or merit pay may be in addition to regular salary or may
2.23replace regular salary increases.
2.24 (b) Salary does not mean:
2.25 (1) the fees paid to district court reporters,;
2.26 (2) unused annual, vacation, personal, or sick leave payments, in the form of
2.27lump-sum or periodic payments, or the value of hours donated under a benevolent vacation
2.28and sick leave donation program;
2.29 (3) payments for accrued compensatory or overtime hours that are made at the time
2.30of separation from service and that include pay for work performed in a calendar or school
2.31year prior to the year in which the payment is issued;
2.32 (4) any form of severance payments, or retirement incentive payments;
2.33 (5) an allowance payment or per diem for or reimbursement of expenses,;
2.34 (6) lump-sum settlements not attached to a specific earnings period, or;
2.35 (7) workers' compensation payments or disability insurance payments, including
2.36payments from self-insured employers;
3.1(2) (8) employer-paid amounts used by an employee toward the cost of insurance
3.2coverage,employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
3.3care expense accounts, day care expenses, or any payments in lieu of any employer-paid
3.4group insurance coverage, including the difference between single and family rates that
3.5may be paid to a member with single coverage and certain amounts determined by the
3.6executive director to be ineligible;
3.7(9) employer-paid fringe benefits including, but not limited to:
3.8(i) employer-paid premiums for all types of insurance;
3.9(ii) membership dues or fees for use of fitness or recreational facilities;
3.10(iii) incentive payments or cash awards relating to wellness programs;
3.11(iv) the value of any nonmonetary benefits;
3.12(v) any form of payment made in lieu of an employer-paid fringe benefit;
3.13(vi) an employer-paid amount made to a deferred compensation or tax-sheltered
3.14annuity program; and
3.15(vii) any amount paid by the employer as a supplement to salary, either as a
3.16lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not
3.17available to the employee as cash;
3.18(3) (10) the amount equal to that which the employing governmental subdivision
3.19would otherwise pay toward single or family insurance coverage for a covered employee
3.20when, through a contract or agreement with some but not all employees, the employer:
3.21 (i) discontinues, or for new hires does not provide, payment toward the cost of the
3.22employee's selected insurance coverages under a group plan offered by the employer;
3.23 (ii) makes the employee solely responsible for all contributions toward the cost of
3.24the employee's selected insurance coverages under a group plan offered by the employer,
3.25including any amount the employer makes toward other employees' selected insurance
3.26coverages under a group plan offered by the employer; and
3.27 (iii) provides increased salary rates for employees who do not have any
3.28employer-paid group insurance coverages;
3.29(4) (11) except as provided in section
353.86 or
353.87 , compensation of any
3.30kind paid to volunteer ambulance service personnel or volunteer firefighters, as defined
3.31in subdivision 35 or 36;
3.32(5) (12) the amount of compensation that exceeds the limitation provided in section
3.33356.611
; and
3.34(6) (13) amounts paid by a federal or state grant for which the grant specifically
3.35prohibits grant proceeds from being used to make pension plan contributions, unless the
3.36contributions to the plan are made from sources other than the federal or state grant.; and
4.1(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
4.2 (c) Amounts, other than those provided under paragraph (a), clause (4), provided to
4.3an employee by the employer through a grievance proceeding, a court order, or a legal
4.4settlement are salary only if the settlement or court order is reviewed by the executive
4.5director and the amounts are determined by the executive director to be consistent with
4.6paragraph (a) and prior determinations.
4.7EFFECTIVE DATE.This section is effective the day following final enactment,
4.8except that paragraph (b), clause (9), item (vii), is effective retroactively from August
4.91, 2007.
1.3the definition of salary; amending Minnesota Statutes 2012, section 353.01,
1.4subdivision 10.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
1.7 Subd. 10. Salary. (a) Subject to the limitations of section
1.8 (1) the wages or periodic compensation
1.9employing governmental subdivision before:
1.10 (i) employee retirement deductions that are designated as picked-up contributions
1.11under section 356.62; and
1.12 (ii) any employee-elected tax-sheltered deductions for deferred compensation,
1.13supplemental retirement plans, or other voluntary salary reduction programs
1.14
1.15available as a cash payment to the employee;
1.16 (2) for a public employee who is covered by a supplemental retirement plan
1.17under section
1.18
1.19supplemental retirement plan when an agreement between the parties establishes that the
1.20
1.21through payroll withholdings, or be made in lieu of an amount that would otherwise be
1.22paid as wages;
1.23 (3) for a public employee who has prior service covered by a local police or
1.24firefighters relief association that has consolidated with the Public Employees Retirement
2.1Association or to which section
2.2under the public employees police and fire fund benefit plan under section
2.4upon which member contributions to the special fund of the relief association were made
2.5prior to the effective date of the consolidation as specified by law and by bylaw provisions
2.6governing the relief association on the date of the initiation of the consolidation procedure
2.7and the actual periodic compensation of the public employee after the effective date of
2.8consolidation
2.9 (4) for a public employee who receives payment through a grievance, settlement,
2.10or court order that is attached to a specific period in which the employee's regular salary
2.11was not earned or paid to the member due to suspension, leave of absence, or period of
2.12involuntary termination that is not a wrongful discharge under section 356.50, the amount
2.13that is equivalent to the earnings the member would have otherwise earned during the
2.14applicable period;
2.15 (5) for a member who is absent from employment by reason of an authorized
2.16personal, parental, medical, or military leave of absence, the amount paid to the employee
2.17during the leave period that is equivalent to the earnings the member would have otherwise
2.18earned during the applicable period; and
2.19 (6) for a public employee who receives performance or merit bonus payment under a
2.20written compensation plan, policy, or bargaining agreement, the compensation paid to the
2.21employee for attaining performance goals, duties, or measures during a specified period
2.22of employment. Performance or merit pay may be in addition to regular salary or may
2.23replace regular salary increases.
2.24 (b) Salary does not mean:
2.25 (1) the fees paid to district court reporters
2.26 (2) unused annual, vacation, personal, or sick leave payments, in the form of
2.27lump-sum or periodic payments, or the value of hours donated under a benevolent vacation
2.28and sick leave donation program;
2.29 (3) payments for accrued compensatory or overtime hours that are made at the time
2.30of separation from service and that include pay for work performed in a calendar or school
2.31year prior to the year in which the payment is issued;
2.32 (4) any form of severance payments
2.33 (5) an allowance payment or per diem for or reimbursement of expenses
2.34 (6) lump-sum settlements not attached to a specific earnings period
2.35 (7) workers' compensation payments or disability insurance payments, including
2.36payments from self-insured employers;
3.1
3.2coverage,
3.3care expense accounts, day care expenses, or any payments in lieu of any employer-paid
3.4group insurance coverage, including the difference between single and family rates that
3.5may be paid to a member with single coverage and certain amounts determined by the
3.6executive director to be ineligible;
3.7(9) employer-paid fringe benefits including, but not limited to:
3.8(i) employer-paid premiums for all types of insurance;
3.9(ii) membership dues or fees for use of fitness or recreational facilities;
3.10(iii) incentive payments or cash awards relating to wellness programs;
3.11(iv) the value of any nonmonetary benefits;
3.12(v) any form of payment made in lieu of an employer-paid fringe benefit;
3.13(vi) an employer-paid amount made to a deferred compensation or tax-sheltered
3.14annuity program; and
3.15(vii) any amount paid by the employer as a supplement to salary, either as a
3.16lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not
3.17available to the employee as cash;
3.18
3.19would otherwise pay toward single or family insurance coverage for a covered employee
3.20when, through a contract or agreement with some but not all employees, the employer:
3.21 (i) discontinues, or for new hires does not provide, payment toward the cost of the
3.22employee's selected insurance coverages under a group plan offered by the employer;
3.23 (ii) makes the employee solely responsible for all contributions toward the cost of
3.24the employee's selected insurance coverages under a group plan offered by the employer,
3.25including any amount the employer makes toward other employees' selected insurance
3.26coverages under a group plan offered by the employer; and
3.27 (iii) provides increased salary rates for employees who do not have any
3.28employer-paid group insurance coverages;
3.29
3.30kind paid to volunteer ambulance service personnel or volunteer firefighters, as defined
3.31in subdivision 35 or 36;
3.32
3.34
3.35prohibits grant proceeds from being used to make pension plan contributions, unless the
3.36contributions to the plan are made from sources other than the federal or state grant
4.1(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
4.2 (c) Amounts, other than those provided under paragraph (a), clause (4), provided to
4.3an employee by the employer through a grievance proceeding, a court order, or a legal
4.4settlement are salary only if the settlement or court order is reviewed by the executive
4.5director and the amounts are determined by the executive director to be consistent with
4.6paragraph (a) and prior determinations.
4.7EFFECTIVE DATE.This section is effective the day following final enactment,
4.8except that paragraph (b), clause (9), item (vii), is effective retroactively from August
4.91, 2007.
