Bill Text: MN SF447 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Public employees retirement association (PERA) plans provisions modifications
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-02-14 - Referred to State and Local Government [SF447 Detail]
Download: Minnesota-2013-SF447-Introduced.html
1.2relating to retirement; Public Employees Retirement Association plans; modifying
1.3the trigger for increasing or lowering annual postretirement adjustments for all
1.4plans; modifying duty disability definitions and clarifying disability application
1.5requirements for the public employees police and fire and local government
1.6correctional retirement plans; revising vesting, increasing plan employee and
1.7employer contributions, increasing the reduction for early retirement clarifying
1.8survivor benefit provisions, and delaying the first annual postretirement
1.9adjustment for the public employees police and fire retirement plan;amending
1.10Minnesota Statutes 2012, sections 353.01, subdivisions 41, 47; 353.031,
1.11subdivision 4; 353.65, subdivisions 2, 3; 353.651, subdivisions 3, 4; 353.657,
1.12subdivisions 2a, 3a; 353E.001, subdivision 1; 356.415, subdivisions 1b, 1c.
1.13BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.14 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 41, is amended to read:
1.15 Subd. 41. Duty disability. "Duty disability," physical or psychological, means a
1.16condition that is expected to prevent a member, for a period of not less than 12 months,
1.17from performing the normal duties of the position held by a person who is a member of the
1.18public employees police and fire retirement plan, and that is the direct result of an injury
1.19incurred during, or a disease arising out of, the performance ofnormal duties or the actual
1.20performance of less frequent inherently dangerous duties, either of which are specific to
1.21protecting the property and personal safety of others and that present inherent dangers that
1.22are specific to the positions covered by the public employees police and fire retirement plan.
1.23EFFECTIVE DATE.This section is effective the day following final enactment.
1.24 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 47, is amended to read:
1.25 Subd. 47. Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement
1.26to an annuity or benefit from a retirement plan administered by the Public Employees
2.1Retirement Association by having credit for sufficient allowable service under paragraph
2.2(b)or, (c), or (d), whichever applies.
2.3(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
2.4member of the general employees retirement plan of the Public Employees Retirement
2.5Association:
2.6(1) a public employee who first became a member of the association before July
2.71, 2010, is 100 percent vested when the person has accrued credit for not less than three
2.8years of allowable service as defined under subdivision 16; and
2.9(2) a public employee who first becomes a member of the association after June 30,
2.102010, is 100 percent vested when the person has accrued credit for not less than five years
2.11of allowable service as defined under subdivision 16.
2.12(c) For purposes of qualifying for an annuity or benefit as a member of thepolice
2.13and fire plan or a member of the local government correctional employees retirement plan:
2.14(1) a public employee who first became a member of the association before July
2.151, 2010, is 100 percent vested when the person has accrued credit for not less than three
2.16years of allowable service as defined under subdivision 16; and
2.17(2) a public employee who first becomes a member of the association after June
2.1830, 2010, is vested at the following percentages when the person has accrued credited
2.19allowable service as defined under subdivision 16, as follows:
2.20(i) 50 percent after five years;
2.21(ii) 60 percent after six years;
2.22(iii) 70 percent after seven years;
2.23(iv) 80 percent after eight years;
2.24(v) 90 percent after nine years; and
2.25(vi) 100 percent after ten years.
2.26(d) For purposes of qualifying for an annuity or benefit as a member of the public
2.27employees police and fire retirement plan:
2.28(1) a public employee who first became a member of the association before July
2.291, 2010, is 100 percent vested when the person has accrued credit for not less than three
2.30years of allowable service as defined under subdivision 16;
2.31(2) a public employee who first becomes a member of the association after June 30,
2.322010, and before July 1, 2014, is vested at the following percentages when the person has
2.33accrued credited allowable service as defined under subdivision 16, as follows:
2.34(i) 50 percent after five years;
2.35(ii) 60 percent after six years;
2.36(iii) 70 percent after seven years;
3.1(iv) 80 percent after eight years;
3.2(v) 90 percent after nine years; and
3.3(vi) 100 percent after ten years; and
3.4(3) a public employee who first becomes a member of the association after June
3.530, 2014, is vested at the following percentages when the person has accrued credited
3.6allowable service as defined under subdivision 16, as follows:
3.7(i) 50 percent after ten years;
3.8(ii) 55 percent after 11 years;
3.9(iii) 60 percent after 12 years;
3.10(iv) 65 percent after 13 years;
3.11(v) 70 percent after 14 years;
3.12(vi) 75 percent after 15 years;
3.13(vii) 80 percent after 16 years;
3.14(viii) 85 percent after 17 years;
3.15(ix) 90 percent after 18 years;
3.16(x) 95 percent after 19 years; and
3.17(xi) 100 percent after 20 or more years.
3.18 Sec. 3. Minnesota Statutes 2012, section 353.031, subdivision 4, is amended to read:
3.19 Subd. 4. Additional requirements; eligibility for police and fire or local
3.20government correctional service retirement plan disability benefits. (a) If an
3.21application for disability benefits is filed within two years of the date of the injury or the
3.22onset of the illness that gave rise to the disability application, the application must be
3.23supported by evidence that the applicant is unable to perform the duties of the position
3.24held by the applicant on the date of the injury or the onset of the illness causing the
3.25disability. The employer must provide evidence indicating whether the applicant is able or
3.26unable to perform the duties of the position held on the date of the injury or onset of the
3.27illness causing the disabilityand the specifications, a clear explanation of any duties that
3.28the individual can or cannot perform, and an explanation of why the employer may or may
3.29not authorize continued employment to the applicant in the current or some other position.
3.30 (b) If an application for disability benefits is filed more than two years after the
3.31date of injury or the onset of an illness causing the disability, the application must be
3.32supported by evidence that the applicant is unable to perform themost recent duties that
3.33are were expected to be performed by the applicant during the 90 days before preceding
3.34thefiling of last day the application applicant performed services for the employer. The
3.35employer must provide evidence of the duties thatare were expected to be performed by
4.1the applicant during the 90 daysbefore preceding the filing of last day the application
4.2 applicant performed services, whether the applicant can or cannot perform those duties
4.3overall,and the specifications a clear explanation of any duties that the applicant can
4.4or cannot perform, and an explanation of why the employer may or may not authorize
4.5continued employment to the applicant in the current or some other position.
4.6 (c) Any report supporting a claim to disability benefits under section353.656 or
4.7353E.06
must specifically relate the disability to its cause; and for any claim to duty
4.8disability from an injury or illness arising out of an act of duty, the report must state the
4.9specific act of duty giving rise to the claim, and relate the cause of disability to inherently
4.10dangerous duties specifictasks or functions required to be performed by the employee in
4.11fulfilling the employee's duty-related acts which must be specific to the inherent dangers of
4.12the positions eligible for membership in covered by the public employees police and fire
4.13fund plan and the local government correctional service retirement plan. Any report that
4.14does not relate the cause of disability to specificacts or functions inherently dangerous
4.15duties performed by the employee may not be relied upon as evidence to support eligibility
4.16for benefits and may be disregarded in the executive director's decision-making process.
4.17 (d) Any application for duty disability must be supported by a first report of injury as
4.18defined in section176.231 .
4.19 (e) If a member who has applied for and been approved for disability benefits before
4.20the termination of service does not terminate service or is not placed on an authorized
4.21leave of absence as certified by the governmental subdivision within 45 days following
4.22the date on which the application is approved, the application shall be canceled. If an
4.23approved application for disability benefits has been canceled, a subsequent application
4.24for disability benefits may not be filed on the basis of the same medical condition for a
4.25minimum of one year from the date on which the previous application was canceled.
4.26EFFECTIVE DATE.This section is effective the day following final enactment.
4.27 Sec. 4. Minnesota Statutes 2012, section 353.65, subdivision 2, is amended to read:
4.28 Subd. 2. Employee contribution. (a) For members other than members who were
4.29active members of the former Minneapolis Firefighters Relief Association on December
4.3029, 2011, or for members other than members who were active members of the former
4.31Minneapolis Police Relief Association on December 29, 2011, the employee contribution
4.32is9.4 percent an amount equal to the following percentage of the total salary of the each
4.33memberin calendar year 2010 and is, as follows: 9.6 percent of the salary of the member
4.34in each before calendar year after 2010 2014; 10.2 percent in calendar year 2014; and 10.8
4.35percent in calendar year 2015 and thereafter.
5.1(b) For members who were active members of the former Minneapolis Firefighters
5.2Relief Association on December 29, 2011, the employee contribution is an amount
5.3equal to eight percent of the monthly unit value under section353.01, subdivision 10a ,
5.4multiplied by 80 and expressed as a biweekly amount for each member. The employee
5.5contribution made by a member with at least 25 years of service credit as an active
5.6member of the former Minneapolis Firefighters Relief Association must be deposited in
5.7the postretirement health care savings account established under section352.98 .
5.8(c) For members who were active members of the former Minneapolis Police Relief
5.9Association on December 29, 2011, the employee contribution is an amount equal to eight
5.10percent of the monthly unit value under section353.01, subdivision 10b , multiplied by 80
5.11and expressed as a biweekly amount for each member. The employee contribution made
5.12by a member with at least 25 years of service credit as an active member of the former
5.13Minneapolis Police Relief Association must be deposited in the postretirement health care
5.14savings account established under section352.98 .
5.15(d) Contributions under this section must be made by deduction from salary in
5.16the manner provided in subdivision 4. Where any portion of a member's salary is paid
5.17from other than public funds, the member's employee contribution is based on the total
5.18salary received from all sources.
5.19EFFECTIVE DATE.This section is effective the day following final enactment.
5.20 Sec. 5. Minnesota Statutes 2012, section 353.65, subdivision 3, is amended to read:
5.21 Subd. 3. Employer contribution. (a) With respect to members other than members
5.22who were active members of the former Minneapolis Firefighters Relief Association on
5.23December 29, 2011, or for members other than members who were active members of
5.24the former Minneapolis Police Relief Association on December 29, 2011, the employer
5.25contribution is14.1 percent an amount equal to the following percentage of the total salary
5.26ofthe each member in calendar year 2010 and is, as follows: 14.4 percent of the salary of
5.27the member in each before calendar year after 2010 2014; 15.3 percent in calendar year
5.282014; and 16.2 percent in calendar year 2015 and thereafter.
5.29(b) With respect to members who were active members of the former Minneapolis
5.30Firefighters Relief Association on December 29, 2011, the employer contribution is an
5.31amount equal to the amount of the member contributions under subdivision 2, paragraph
5.32(b).
5.33(c) With respect to members who were active members of the former Minneapolis
5.34Police Relief Association on December 29, 2011, the employer contribution is an amount
5.35equal to the amount of the member contributions under subdivision 2, paragraph (c).
6.1(d) Contributions under this subdivision must be made from funds available to the
6.2employing subdivision by the means and in the manner provided in section353.28 .
6.3EFFECTIVE DATE.This section is effective the day following final enactment.
6.4 Sec. 6. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
6.5 Subd. 3. Retirement annuity formula. (a) The average salary as defined in
6.6section353.01, subdivision 17a , multiplied by the percent specified in section
356.315,
6.7subdivision 6 , per year multiplied by years of allowable service, multiplied by the
6.8applicable vesting percentage indicated in section 353.01, subdivision 47, determines the
6.9amount of the normal retirement annuity. If the member has earned allowable service
6.10for performing services other than those of a police officer or firefighter, the annuity
6.11representing that service must be computed under sections353.29 and
353.30 .
6.12(b) For a member first enrolled in the public employees police and fire retirement
6.13plan after June 30, 2014, the average salary as defined in section 353.01, subdivision 17a,
6.14paragraph (a), includes salary for all years for which contributions have been reported to
6.15the public employees police and fire retirement plan, but allowable service included in
6.16the calculation is limited to 33 years and the normal retirement annuity must not exceed
6.1799 percent of the average salary.
6.18(c) When the annuity begins for members of the public employees police and fire
6.19retirement plan enrolled after June 30, 2014, a prorated share of the contributions for
6.20allowable service exceeding 33 years must be refunded to the member. The prorated
6.21share of the contributions to be refunded is determined by multiplying the accumulated
6.22deductions paid by the member to the public employees police and fire retirement plan by
6.23a percentage determined using the number of months of service in excess of 396 as the
6.24numerator and the total number of months of allowable service on which contributions
6.25were reported as the denominator. Interest as defined in section 353.34, subdivision 2,
6.26is to be applied to the prorated share of contributions from the first of the 397th month
6.27of allowable service reported to the public employees police and fire retirement plan to
6.28the first of the month the annuity begins.
6.29EFFECTIVE DATE.This section is effective the day following final enactment.
6.30 Sec. 7. Minnesota Statutes 2012, section 353.651, subdivision 4, is amended to read:
6.31 Subd. 4. Early retirement. (a) A person who becomes a public employees police
6.32and fire retirement plan member after June 30, 2007, or a former member who is reinstated
6.33as a member of the plan after that date, who is at least 50 years of age andwho is at least
7.1partially vested under section353.01, subdivision 47 , upon the termination of public
7.2service before July 1, 2014, is entitled upon application to a retirement annuity equal to
7.3the normal annuity calculated under subdivision 3, reduced by two-tenths of one percent
7.4for each month that the member is under age 55 at the time of retirement.
7.5 (b) Upon the termination of public service before July 1, 2014, any public employees
7.6police and fire retirement plan member who first became a member of the plan before July
7.71, 2007, and who is not specified in paragraph (a), upon attaining at least 50 years of age
7.8with at least three years of allowable service is entitled upon application to a retirement
7.9annuity equal to the normal annuity calculated under subdivision 3, reduced by one-tenth
7.10of one percent for each month that the member is under age 55 at the time of retirement.
7.11(c) A person who is a member of the public employees police and fire retirement
7.12plan on or after July 1, 2014, who is at least 50 years old and is at least partially vested
7.13under section 353.01, subdivision 47, and whose benefit effective date is after July 1,
7.142014, and on or before July 1, 2019, is entitled upon application to a retirement annuity
7.15equal to the normal annuity calculated under subdivision 3, reduced for each month the
7.16member is under age 55 at the time of retirement by applying a blended monthly rate
7.17that is equivalent to the sum of:
7.18(1) one-sixtieth of the annual rate of five percent, prorated for each month the
7.19person's benefit effective date is after July 1, 2014; and
7.20(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever
7.21applies, for each month the person's benefit effective date is before July 1, 2019.
7.22(d) A person who is a member of the public employees police and fire retirement
7.23plan on or after July 1, 2014, who is at least 50 years old and is at least partially vested
7.24under section 353.01, subdivision 47, whose benefit effective date is after July 1, 2019, is
7.25entitled, upon application, to a retirement annuity equal to the normal annuity calculated
7.26under subdivision 3, reduced by five percent annually, prorated for each month that the
7.27member is under age 55.
7.28EFFECTIVE DATE.This section is effective the day following final enactment.
7.29 Sec. 8. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
7.30 Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member
7.31who has attained the age of at least 50 years and either who is vested under section
7.32353.01, subdivision 47
, or who has credit for at least 30 years of allowable service,
7.33regardless of age attained, dies before the annuity or disability benefit becomes payable,
7.34notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
7.35elect to receive a death while eligible survivor benefit.
8.1 (b) Notwithstanding the definition of surviving spouse in section353.01, subdivision
8.220 , a former spouse of the member, if any, is entitled to a portion of the death while
8.3eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
8.4filed with the association. If there is no surviving spouse or child or children, a former
8.5spouse may be entitled to a lump-sum refund payment under section353.32, subdivision
8.61 , if provided for in a marriage dissolution decree but not a death while eligible survivor
8.7benefit despite the terms of a marriage dissolution decree filed with the association.
8.8 (c) The benefit may be elected instead of a refund with interest under section353.32,
8.9subdivision 1 , or surviving spouse benefits otherwise payable under subdivisions 1 and
8.102. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
8.11which the member could have qualified for on the date of death, computed as provided in
8.12sections 353.651,subdivisions 2 and subdivision 3, and
353.30, subdivision 3 .
8.13 (d) The surviving spouse may apply for the annuity at any time after the date
8.14on which the deceased employee would have attained the required age for retirement
8.15based on the employee's allowable service. Sections353.34, subdivision 3 , and
353.71,
8.16subdivision 2 , apply to a deferred annuity payable under this subdivision.
8.17 (e) No payment accrues beyond the end of the month in which entitlement to
8.18such annuity has terminated. An amount equal to the excess, if any, of the accumulated
8.19contributions which were credited to the account of the deceased employee over and
8.20above the total of the annuities paid and payable to the surviving spouse must be paid to
8.21the deceased member's last designated beneficiary or, if none, to the legal representative of
8.22the estate of such deceased member.
8.23 (f) Any member may request in writing, with the signed consent of the spouse, that
8.24this subdivision not apply and that payment be made only to the designated beneficiary, as
8.25otherwise provided by this chapter.
8.26 (g) For a member who is employed as a full-time firefighter by the Department of
8.27Military Affairs of the state of Minnesota, allowable service as a full-time state Military
8.28Affairs Department firefighter credited by the Minnesota State Retirement System may be
8.29used in meeting the minimum allowable service requirement of this subdivision.
8.30EFFECTIVE DATE.This section is effective the day following final enactment.
8.31 Sec. 9. Minnesota Statutes 2012, section 353.657, subdivision 3a, is amended to read:
8.32 Subd. 3a. Maximum and minimum family benefits. (a) The maximum monthly
8.33benefit per family must not exceed the following percentages of the member's average
8.34monthly salary as specified in subdivision 3:
8.35 (1) 80 percent, if the member's death was a line of duty death; or
9.1 (2) 70 percent, if the member's death was not a line of duty death or occurred while
9.2the member was receiving a disability benefit that accrued before July 1, 2007.
9.3 (b) The minimum monthly benefit per family, including the joint and survivor
9.4optional annuity under subdivision 2a, and section353.656, subdivision 1a , must not be
9.5less than the following percentage of the member's average monthly salary as specified in
9.6subdivision 3:
9.7 (1) 60 percent, if the death was a line of duty death; or
9.8 (2) 50 percent, if the death was not a line of duty death or occurred while the member
9.9was receiving a disability benefit that accrued before July 1, 2007.
9.10 (c) If the maximum under paragraph (a) is exceeded, the monthly benefit of the
9.11joint annuitant, surviving spouse, and dependent children, as applicable, must each be
9.12reducedto the amount necessary proportionately so that the total family benefit does
9.13not exceed the applicable maximum. The joint and survivor optional annuity, surviving
9.14spouse, or dependent children benefit, as applicable, must be restored, plus applicable
9.15postretirement adjustments under Minnesota Statutes 2008, section356.41 or section
9.16356.415
, as the dependent child or children become no longer dependent under section
9.17353.01, subdivision 15
, or in the event of the death of the joint and survivor annuity
9.18recipient or the surviving spouse.
9.19EFFECTIVE DATE.This section is effective the day following final enactment.
9.20 Sec. 10. Minnesota Statutes 2012, section 353E.001, subdivision 1, is amended to read:
9.21 Subdivision 1. Duty disability. "Duty disability," physical or psychological, means
9.22a condition that is expected to prevent a member, for a period of not less than 12 months,
9.23from performing the normal duties of a local government correctional service employee as
9.24defined under section353E.02 and that is the direct result of an injury incurred during, or
9.25a disease arising out of, the performance ofnormal duties or the actual performance of
9.26less frequent inherently dangerous duties, either of which are specific to protecting the
9.27property and personal safety of others and that present inherent dangers that are specific to
9.28the positions covered by the local government correctional service retirement plan.
9.29EFFECTIVE DATE.This section is effective the day following final enactment.
9.30 Sec. 11. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
9.31 Subd. 1b. Annual postretirement adjustments; PERA; general employees
9.32retirement plan and local government correctional retirement plan. (a) Retirement
9.33annuity, disability benefit, or survivor benefit recipients of the general employees
10.1retirement plan of the Public Employees Retirement Association and the local government
10.2correctional service retirement plan are entitled to a postretirement adjustment annually
10.3on January 1, as follows:
10.4(1) forJanuary 1, 2011, and each successive January 1 until funding stability is
10.5restored for the applicable retirement plan, a postretirement increase of one percent must
10.6be applied each year, effective on January 1, to the monthly annuity or benefit amount of
10.7each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
10.812 full months as of the current June 30;
10.9(2) forJanuary 1, 2011, and each successive January 1 until funding stability is
10.10restored for the applicable retirement plan, for each annuitant or benefit recipient who has
10.11been receiving an annuity or a benefit for at least one full month, but less than 12 full
10.12months as of the current June 30, an annual postretirement increase of 1/12 of one percent
10.13for each month the person has been receiving an annuity or benefit must be applied;
10.14(3) for each January 1 following the restoration of funding stability for the applicable
10.15retirement plan, a postretirement increase of 2.5 percent must be applied each year,
10.16effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
10.17recipient who has been receiving an annuity or benefit for at least 12 full months as of
10.18the current June 30; and
10.19(4) for each January 1 following restoration of funding stability for the applicable
10.20retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
10.21a benefit for at least one full month, but less than 12 full months as of the current June
10.2230, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
10.23has been receiving an annuity or benefit must be applied.
10.24(b) Funding stability is restored when the market value of assets of the applicable
10.25retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
10.26applicable plan in the two most recentprior consecutive actuarial valuation valuations
10.27prepared under section356.215 and the standards for actuarial work by the approved
10.28actuary retained by the Public Employees Retirement Association under section356.214 .
10.29(c)If, after applying the increase as provided for in paragraph (a), clauses (3)
10.30and (4), the market value of the applicable retirement plan is determined in the next
10.31subsequent actuarial valuation prepared under section
356.215 to be less than 90 percent
10.32of the actuarial accrued liability of any of the applicable Public Employees Retirement
10.33Association plans, After having met the definition of funding stability under paragraph
10.34(b), the increase provided in paragraph (a), clauses (1) and (2),are rather than an increase
10.35under subdivision 1, is again to be appliedas of the next successive January until funding
11.1stability is again restored. in a subsequent year or years if the market value of assets of
11.2the applicable plan equals or is less than:
11.3(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
11.4consecutive actuarial valuations; or
11.5(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
11.6recent actuarial valuation.
11.7(d) An increase in annuity or benefit payments under this section must be made
11.8automatically unless written notice is filed by the annuitant or benefit recipient with the
11.9executive director of the Public Employees Retirement Association requesting that the
11.10increase not be made.
11.11(e) The retirement annuity payable to a person who retires before becoming eligible
11.12for Social Security benefits and who has elected the optional payment, as provided in
11.13section353.29, subdivision 6 , must be treated as the sum of a period-certain retirement
11.14annuity and a life retirement annuity for the purposes of any postretirement adjustment.
11.15The period-certain retirement annuity plus the life retirement annuity must be the
11.16annuity amount payable until age 62 for section353.29, subdivision 6 . A postretirement
11.17adjustment granted on the period-certain retirement annuity must terminate when the
11.18period-certain retirement annuity terminates.
11.19EFFECTIVE DATE.This section is effective the day following final enactment.
11.20 Sec. 12. Minnesota Statutes 2012, section 356.415, subdivision 1c, is amended to read:
11.21 Subd. 1c. Annual postretirement adjustments; PERA-police and fire. (a)
11.22Retirement annuity, disability benefit, or survivor benefit recipients of the public
11.23employees police and fire retirement plan are entitled to a postretirement adjustment
11.24annually on January 1, until funding stability is restored, as follows:
11.25(1) forJanuary 1, 2011, and for January 1, 2012, for each annuitant or benefit
11.26recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
11.27been receiving the annuity or benefit for at least 12 full months as of the immediate
11.28preceding June 30, an amount equal to one percent in each year; or
11.29(2) forJanuary 1, 2011, and for January 1, 2012, for each annuitant or benefit
11.30recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
11.31been receiving the annuity or benefit for at least one full month, but not less than 11
11.32months, as of the immediate preceding June 30, an amount equal to 1/12 of one percentin
11.33each year for each month of annuity or benefit receipt; and
11.34(3) forJanuary 1, 2013, and each successive January 1 that follows the loss of
11.35funding stability as defined under paragraph (b) until funding stability as defined under
12.1paragraph (b) is again restored, for each annuitant or benefit recipient whose annuity
12.2or benefit effective date is after June 1, 2014, whohas will have been receiving the an
12.3annuity or benefit for at least12 36 full months as of the immediate preceding June 30,
12.4an amount equal tothe percentage increase in the Consumer Price Index for urban wage
12.5earners and clerical workers all items index published by the Bureau of Labor Statistics of
12.6the United States Department of Labor between the immediate preceding June 30 and the
12.7June 30 occurring 12 months previous, but not to exceed 1.5 one percent; or
12.8(4) forJanuary 1, 2013, and each successive January 1 that follows the loss of funding
12.9stability as defined under paragraph (b) until funding stability as defined under paragraph
12.10(b) is again restored, for each annuitant or benefit recipient whose annuity or benefit
12.11effective date is after June 1, 2014, who has been receiving the annuity or benefit for at
12.12leastone 25 full month months, but less than 36 months as of the immediate preceding June
12.1330, an amount equal to 1/12 ofthe percentage increase in the Consumer Price Index for
12.14urban wage earners and clerical workers all items index published by the Bureau of Labor
12.15Statistics of the United States Department of Labor between the immediate preceding June
12.1630 and the June 30 occurring 12 months previous for each full month of annuity or benefit
12.17receipt, but not to exceed 1/12 of 1.5 one percent for each full month of annuity or benefit
12.18receipt during the fiscal year in which the annuity or benefit was effective;.
12.19(5) for (b) Retirement annuity, disability benefit, or survivor benefit recipients of
12.20the public employees police and fire retirement plan are entitled to a postretirement
12.21adjustment annually on each January 1 following the restoration of funding stability as
12.22defined under paragraph(b) (c) and during the continuation of funding stability as defined
12.23under paragraph(b) (c), as follows:
12.24(1) for each annuitant or benefit recipient who has been receiving the annuity or
12.25benefit for at least12 36 full months as of the immediate preceding June 30, an amount
12.26equal to the percentage increase in the Consumer Price Index for urban wage earners and
12.27clerical workers all items index published by the Bureau of Labor Statistics of the United
12.28States Department of Labor between the immediate preceding June 30 and the June 30
12.29occurring 12 months previous, but not to exceed 2.5 percent; and
12.30(6) for each January 1 following the restoration of funding stability as defined under
12.31paragraph (b) and during the continuation of funding stability as defined under paragraph
12.32(b), (2) for each annuitant or benefit recipient who has been receiving the annuity or benefit
12.33for at leastone 25 full month months, but less than 36 full months, as of the immediate
12.34preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer
12.35Price Index for urban wage earners and clerical workers all items index published by
12.36the Bureau of Labor Statistics of the United States Department of Labor between the
13.1immediate preceding June 30 and the June 30 occurring 12 months previous for each full
13.2month of annuity or benefit receipt during the fiscal year in which the annuity or benefit
13.3was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or
13.4benefit receipt during the fiscal year in which the annuity or benefit was effective.
13.5(b) (c) Funding stability is restored when the market value of assets of the public
13.6employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
13.7accrued liabilities of the applicable plan in the two most recentprior consecutive actuarial
13.8valuation valuations prepared under section
356.215 and under the standards for actuarial
13.9work of the Legislative Commission on Pensions and Retirement by the approved actuary
13.10retained by the Public Employees Retirement Association under section356.214 .
13.11(d) After having met the definition of funding stability under paragraph (c), a full
13.12or prorated increase, as provided in paragraph (a), clauses (1), (2), (3), or (4), whichever
13.13applies, rather than adjustments under paragraph (b), is again applied in a subsequent year
13.14or years if the market value of assets of the public employees police and fire retirement
13.15plan equals or is less than:
13.16(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
13.17consecutive actuarial valuations; or
13.18(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
13.19recent actuarial valuation.
13.20(c) (e) An increase in annuity or benefit payments under this section must be made
13.21automatically unless written notice is filed by the annuitant or benefit recipient with the
13.22executive director of the Public Employees Retirement Association requesting that the
13.23increase not be made.
13.24EFFECTIVE DATE.This section is effective the day following final enactment.
1.3the trigger for increasing or lowering annual postretirement adjustments for all
1.4plans; modifying duty disability definitions and clarifying disability application
1.5requirements for the public employees police and fire and local government
1.6correctional retirement plans; revising vesting, increasing plan employee and
1.7employer contributions, increasing the reduction for early retirement clarifying
1.8survivor benefit provisions, and delaying the first annual postretirement
1.9adjustment for the public employees police and fire retirement plan;amending
1.10Minnesota Statutes 2012, sections 353.01, subdivisions 41, 47; 353.031,
1.11subdivision 4; 353.65, subdivisions 2, 3; 353.651, subdivisions 3, 4; 353.657,
1.12subdivisions 2a, 3a; 353E.001, subdivision 1; 356.415, subdivisions 1b, 1c.
1.13BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.14 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 41, is amended to read:
1.15 Subd. 41. Duty disability. "Duty disability," physical or psychological, means a
1.16condition that is expected to prevent a member, for a period of not less than 12 months,
1.17from performing the normal duties of the position held by a person who is a member of the
1.18public employees police and fire retirement plan, and that is the direct result of an injury
1.19incurred during, or a disease arising out of, the performance of
1.20
1.21
1.22are specific to the positions covered by the public employees police and fire retirement plan.
1.23EFFECTIVE DATE.This section is effective the day following final enactment.
1.24 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 47, is amended to read:
1.25 Subd. 47. Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement
1.26to an annuity or benefit from a retirement plan administered by the Public Employees
2.1Retirement Association by having credit for sufficient allowable service under paragraph
2.2(b)
2.3(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
2.4member of the general employees retirement plan of the Public Employees Retirement
2.5Association:
2.6(1) a public employee who first became a member of the association before July
2.71, 2010, is 100 percent vested when the person has accrued credit for not less than three
2.8years of allowable service as defined under subdivision 16; and
2.9(2) a public employee who first becomes a member of the association after June 30,
2.102010, is 100 percent vested when the person has accrued credit for not less than five years
2.11of allowable service as defined under subdivision 16.
2.12(c) For purposes of qualifying for an annuity or benefit as a member of the
2.13
2.14(1) a public employee who first became a member of the association before July
2.151, 2010, is 100 percent vested when the person has accrued credit for not less than three
2.16years of allowable service as defined under subdivision 16; and
2.17(2) a public employee who first becomes a member of the association after June
2.1830, 2010, is vested at the following percentages when the person has accrued credited
2.19allowable service as defined under subdivision 16, as follows:
2.20(i) 50 percent after five years;
2.21(ii) 60 percent after six years;
2.22(iii) 70 percent after seven years;
2.23(iv) 80 percent after eight years;
2.24(v) 90 percent after nine years; and
2.25(vi) 100 percent after ten years.
2.26(d) For purposes of qualifying for an annuity or benefit as a member of the public
2.27employees police and fire retirement plan:
2.28(1) a public employee who first became a member of the association before July
2.291, 2010, is 100 percent vested when the person has accrued credit for not less than three
2.30years of allowable service as defined under subdivision 16;
2.31(2) a public employee who first becomes a member of the association after June 30,
2.322010, and before July 1, 2014, is vested at the following percentages when the person has
2.33accrued credited allowable service as defined under subdivision 16, as follows:
2.34(i) 50 percent after five years;
2.35(ii) 60 percent after six years;
2.36(iii) 70 percent after seven years;
3.1(iv) 80 percent after eight years;
3.2(v) 90 percent after nine years; and
3.3(vi) 100 percent after ten years; and
3.4(3) a public employee who first becomes a member of the association after June
3.530, 2014, is vested at the following percentages when the person has accrued credited
3.6allowable service as defined under subdivision 16, as follows:
3.7(i) 50 percent after ten years;
3.8(ii) 55 percent after 11 years;
3.9(iii) 60 percent after 12 years;
3.10(iv) 65 percent after 13 years;
3.11(v) 70 percent after 14 years;
3.12(vi) 75 percent after 15 years;
3.13(vii) 80 percent after 16 years;
3.14(viii) 85 percent after 17 years;
3.15(ix) 90 percent after 18 years;
3.16(x) 95 percent after 19 years; and
3.17(xi) 100 percent after 20 or more years.
3.18 Sec. 3. Minnesota Statutes 2012, section 353.031, subdivision 4, is amended to read:
3.19 Subd. 4. Additional requirements; eligibility for police and fire or local
3.20government correctional service retirement plan disability benefits. (a) If an
3.21application for disability benefits is filed within two years of the date of the injury or the
3.22onset of the illness that gave rise to the disability application, the application must be
3.23supported by evidence that the applicant is unable to perform the duties of the position
3.24held by the applicant on the date of the injury or the onset of the illness causing the
3.25disability. The employer must provide evidence indicating whether the applicant is able or
3.26unable to perform the duties of the position held on the date of the injury or onset of the
3.27illness causing the disability
3.28the individual can or cannot perform, and an explanation of why the employer may or may
3.29not authorize continued employment to the applicant in the current or some other position.
3.30 (b) If an application for disability benefits is filed more than two years after the
3.31date of injury or the onset of an illness causing the disability, the application must be
3.32supported by evidence that the applicant is unable to perform the
3.33
3.34the
3.35employer must provide evidence of the duties that
4.1the applicant during the 90 days
4.2 applicant performed services, whether the applicant can or cannot perform those duties
4.3overall,
4.4or cannot perform, and an explanation of why the employer may or may not authorize
4.5continued employment to the applicant in the current or some other position.
4.6 (c) Any report supporting a claim to disability benefits under section
4.8disability from an injury or illness arising out of an act of duty, the report must state the
4.9specific act of duty giving rise to the claim, and relate the cause of disability to inherently
4.10dangerous duties specific
4.11
4.12
4.13
4.14does not relate the cause of disability to specific
4.15duties performed by the employee may not be relied upon as evidence to support eligibility
4.16for benefits and may be disregarded in the executive director's decision-making process.
4.17 (d) Any application for duty disability must be supported by a first report of injury as
4.18defined in section
4.19 (e) If a member who has applied for and been approved for disability benefits before
4.20the termination of service does not terminate service or is not placed on an authorized
4.21leave of absence as certified by the governmental subdivision within 45 days following
4.22the date on which the application is approved, the application shall be canceled. If an
4.23approved application for disability benefits has been canceled, a subsequent application
4.24for disability benefits may not be filed on the basis of the same medical condition for a
4.25minimum of one year from the date on which the previous application was canceled.
4.26EFFECTIVE DATE.This section is effective the day following final enactment.
4.27 Sec. 4. Minnesota Statutes 2012, section 353.65, subdivision 2, is amended to read:
4.28 Subd. 2. Employee contribution. (a) For members other than members who were
4.29active members of the former Minneapolis Firefighters Relief Association on December
4.3029, 2011, or for members other than members who were active members of the former
4.31Minneapolis Police Relief Association on December 29, 2011, the employee contribution
4.32is
4.33member
4.34
4.35percent in calendar year 2015 and thereafter.
5.1(b) For members who were active members of the former Minneapolis Firefighters
5.2Relief Association on December 29, 2011, the employee contribution is an amount
5.3equal to eight percent of the monthly unit value under section
5.4multiplied by 80 and expressed as a biweekly amount for each member. The employee
5.5contribution made by a member with at least 25 years of service credit as an active
5.6member of the former Minneapolis Firefighters Relief Association must be deposited in
5.7the postretirement health care savings account established under section
5.8(c) For members who were active members of the former Minneapolis Police Relief
5.9Association on December 29, 2011, the employee contribution is an amount equal to eight
5.10percent of the monthly unit value under section
5.11and expressed as a biweekly amount for each member. The employee contribution made
5.12by a member with at least 25 years of service credit as an active member of the former
5.13Minneapolis Police Relief Association must be deposited in the postretirement health care
5.14savings account established under section
5.15(d) Contributions under this section must be made by deduction from salary in
5.16the manner provided in subdivision 4. Where any portion of a member's salary is paid
5.17from other than public funds, the member's employee contribution is based on the total
5.18salary received from all sources.
5.19EFFECTIVE DATE.This section is effective the day following final enactment.
5.20 Sec. 5. Minnesota Statutes 2012, section 353.65, subdivision 3, is amended to read:
5.21 Subd. 3. Employer contribution. (a) With respect to members other than members
5.22who were active members of the former Minneapolis Firefighters Relief Association on
5.23December 29, 2011, or for members other than members who were active members of
5.24the former Minneapolis Police Relief Association on December 29, 2011, the employer
5.25contribution is
5.26of
5.27
5.282014; and 16.2 percent in calendar year 2015 and thereafter.
5.29(b) With respect to members who were active members of the former Minneapolis
5.30Firefighters Relief Association on December 29, 2011, the employer contribution is an
5.31amount equal to the amount of the member contributions under subdivision 2, paragraph
5.32(b).
5.33(c) With respect to members who were active members of the former Minneapolis
5.34Police Relief Association on December 29, 2011, the employer contribution is an amount
5.35equal to the amount of the member contributions under subdivision 2, paragraph (c).
6.1(d) Contributions under this subdivision must be made from funds available to the
6.2employing subdivision by the means and in the manner provided in section
6.3EFFECTIVE DATE.This section is effective the day following final enactment.
6.4 Sec. 6. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
6.5 Subd. 3. Retirement annuity formula. (a) The average salary as defined in
6.6section
6.7subdivision 6
6.8applicable vesting percentage indicated in section 353.01, subdivision 47, determines the
6.9amount of the normal retirement annuity. If the member has earned allowable service
6.10for performing services other than those of a police officer or firefighter, the annuity
6.11representing that service must be computed under sections
6.12(b) For a member first enrolled in the public employees police and fire retirement
6.13plan after June 30, 2014, the average salary as defined in section 353.01, subdivision 17a,
6.14paragraph (a), includes salary for all years for which contributions have been reported to
6.15the public employees police and fire retirement plan, but allowable service included in
6.16the calculation is limited to 33 years and the normal retirement annuity must not exceed
6.1799 percent of the average salary.
6.18(c) When the annuity begins for members of the public employees police and fire
6.19retirement plan enrolled after June 30, 2014, a prorated share of the contributions for
6.20allowable service exceeding 33 years must be refunded to the member. The prorated
6.21share of the contributions to be refunded is determined by multiplying the accumulated
6.22deductions paid by the member to the public employees police and fire retirement plan by
6.23a percentage determined using the number of months of service in excess of 396 as the
6.24numerator and the total number of months of allowable service on which contributions
6.25were reported as the denominator. Interest as defined in section 353.34, subdivision 2,
6.26is to be applied to the prorated share of contributions from the first of the 397th month
6.27of allowable service reported to the public employees police and fire retirement plan to
6.28the first of the month the annuity begins.
6.29EFFECTIVE DATE.This section is effective the day following final enactment.
6.30 Sec. 7. Minnesota Statutes 2012, section 353.651, subdivision 4, is amended to read:
6.31 Subd. 4. Early retirement. (a) A person who becomes a public employees police
6.32and fire retirement plan member after June 30, 2007, or a former member who is reinstated
6.33as a member of the plan after that date, who is at least 50 years of age and
7.1partially vested under section
7.2service before July 1, 2014, is entitled upon application to a retirement annuity equal to
7.3the normal annuity calculated under subdivision 3, reduced by two-tenths of one percent
7.4for each month that the member is under age 55 at the time of retirement.
7.5 (b) Upon the termination of public service before July 1, 2014, any public employees
7.6police and fire retirement plan member who first became a member of the plan before July
7.71, 2007, and who is not specified in paragraph (a), upon attaining at least 50 years of age
7.8with at least three years of allowable service is entitled upon application to a retirement
7.9annuity equal to the normal annuity calculated under subdivision 3, reduced by one-tenth
7.10of one percent for each month that the member is under age 55 at the time of retirement.
7.11(c) A person who is a member of the public employees police and fire retirement
7.12plan on or after July 1, 2014, who is at least 50 years old and is at least partially vested
7.13under section 353.01, subdivision 47, and whose benefit effective date is after July 1,
7.142014, and on or before July 1, 2019, is entitled upon application to a retirement annuity
7.15equal to the normal annuity calculated under subdivision 3, reduced for each month the
7.16member is under age 55 at the time of retirement by applying a blended monthly rate
7.17that is equivalent to the sum of:
7.18(1) one-sixtieth of the annual rate of five percent, prorated for each month the
7.19person's benefit effective date is after July 1, 2014; and
7.20(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever
7.21applies, for each month the person's benefit effective date is before July 1, 2019.
7.22(d) A person who is a member of the public employees police and fire retirement
7.23plan on or after July 1, 2014, who is at least 50 years old and is at least partially vested
7.24under section 353.01, subdivision 47, whose benefit effective date is after July 1, 2019, is
7.25entitled, upon application, to a retirement annuity equal to the normal annuity calculated
7.26under subdivision 3, reduced by five percent annually, prorated for each month that the
7.27member is under age 55.
7.28EFFECTIVE DATE.This section is effective the day following final enactment.
7.29 Sec. 8. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
7.30 Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member
7.31who has attained the age of at least 50 years and either who is vested under section
7.33regardless of age attained, dies before the annuity or disability benefit becomes payable,
7.34notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
7.35elect to receive a death while eligible survivor benefit.
8.1 (b) Notwithstanding the definition of surviving spouse in section
8.220
8.3eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
8.4filed with the association. If there is no surviving spouse or child or children, a former
8.5spouse may be entitled to a lump-sum refund payment under section
8.61
8.7benefit despite the terms of a marriage dissolution decree filed with the association.
8.8 (c) The benefit may be elected instead of a refund with interest under section
8.9subdivision 1
8.102. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
8.11which the member could have qualified for on the date of death, computed as provided in
8.12sections 353.651,
8.13 (d) The surviving spouse may apply for the annuity at any time after the date
8.14on which the deceased employee would have attained the required age for retirement
8.15based on the employee's allowable service. Sections
8.16subdivision 2
8.17 (e) No payment accrues beyond the end of the month in which entitlement to
8.18such annuity has terminated. An amount equal to the excess, if any, of the accumulated
8.19contributions which were credited to the account of the deceased employee over and
8.20above the total of the annuities paid and payable to the surviving spouse must be paid to
8.21the deceased member's last designated beneficiary or, if none, to the legal representative of
8.22the estate of such deceased member.
8.23 (f) Any member may request in writing, with the signed consent of the spouse, that
8.24this subdivision not apply and that payment be made only to the designated beneficiary, as
8.25otherwise provided by this chapter.
8.26 (g) For a member who is employed as a full-time firefighter by the Department of
8.27Military Affairs of the state of Minnesota, allowable service as a full-time state Military
8.28Affairs Department firefighter credited by the Minnesota State Retirement System may be
8.29used in meeting the minimum allowable service requirement of this subdivision.
8.30EFFECTIVE DATE.This section is effective the day following final enactment.
8.31 Sec. 9. Minnesota Statutes 2012, section 353.657, subdivision 3a, is amended to read:
8.32 Subd. 3a. Maximum and minimum family benefits. (a) The maximum monthly
8.33benefit per family must not exceed the following percentages of the member's average
8.34monthly salary as specified in subdivision 3:
8.35 (1) 80 percent, if the member's death was a line of duty death; or
9.1 (2) 70 percent, if the member's death was not a line of duty death or occurred while
9.2the member was receiving a disability benefit that accrued before July 1, 2007.
9.3 (b) The minimum monthly benefit per family, including the joint and survivor
9.4optional annuity under subdivision 2a, and section
9.5less than the following percentage of the member's average monthly salary as specified in
9.6subdivision 3:
9.7 (1) 60 percent, if the death was a line of duty death; or
9.8 (2) 50 percent, if the death was not a line of duty death or occurred while the member
9.9was receiving a disability benefit that accrued before July 1, 2007.
9.10 (c) If the maximum under paragraph (a) is exceeded, the monthly benefit of the
9.11joint annuitant, surviving spouse, and dependent children, as applicable, must each be
9.12reduced
9.13not exceed the applicable maximum. The joint and survivor optional annuity, surviving
9.14spouse, or dependent children benefit, as applicable, must be restored, plus applicable
9.15postretirement adjustments under Minnesota Statutes 2008, section
9.18recipient or the surviving spouse.
9.19EFFECTIVE DATE.This section is effective the day following final enactment.
9.20 Sec. 10. Minnesota Statutes 2012, section 353E.001, subdivision 1, is amended to read:
9.21 Subdivision 1. Duty disability. "Duty disability," physical or psychological, means
9.22a condition that is expected to prevent a member, for a period of not less than 12 months,
9.23from performing the normal duties of a local government correctional service employee as
9.24defined under section
9.25a disease arising out of, the performance of
9.26
9.27
9.28the positions covered by the local government correctional service retirement plan.
9.29EFFECTIVE DATE.This section is effective the day following final enactment.
9.30 Sec. 11. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
9.31 Subd. 1b. Annual postretirement adjustments; PERA; general employees
9.32retirement plan and local government correctional retirement plan. (a) Retirement
9.33annuity, disability benefit, or survivor benefit recipients of the general employees
10.1retirement plan of the Public Employees Retirement Association and the local government
10.2correctional service retirement plan are entitled to a postretirement adjustment annually
10.3on January 1, as follows:
10.4(1) for
10.5restored for the applicable retirement plan, a postretirement increase of one percent must
10.6be applied each year, effective on January 1, to the monthly annuity or benefit amount of
10.7each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
10.812 full months as of the current June 30;
10.9(2) for
10.10restored for the applicable retirement plan, for each annuitant or benefit recipient who has
10.11been receiving an annuity or a benefit for at least one full month, but less than 12 full
10.12months as of the current June 30, an annual postretirement increase of 1/12 of one percent
10.13for each month the person has been receiving an annuity or benefit must be applied;
10.14(3) for each January 1 following the restoration of funding stability for the applicable
10.15retirement plan, a postretirement increase of 2.5 percent must be applied each year,
10.16effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
10.17recipient who has been receiving an annuity or benefit for at least 12 full months as of
10.18the current June 30; and
10.19(4) for each January 1 following restoration of funding stability for the applicable
10.20retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
10.21a benefit for at least one full month, but less than 12 full months as of the current June
10.2230, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
10.23has been receiving an annuity or benefit must be applied.
10.24(b) Funding stability is restored when the market value of assets of the applicable
10.25retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
10.26applicable plan in the two most recent
10.27prepared under section
10.28actuary retained by the Public Employees Retirement Association under section
10.29(c)
10.30
10.31
10.32
10.33
10.34(b), the increase provided in paragraph (a), clauses (1) and (2),
10.35under subdivision 1, is again to be applied
11.1
11.2the applicable plan equals or is less than:
11.3(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
11.4consecutive actuarial valuations; or
11.5(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
11.6recent actuarial valuation.
11.7(d) An increase in annuity or benefit payments under this section must be made
11.8automatically unless written notice is filed by the annuitant or benefit recipient with the
11.9executive director of the Public Employees Retirement Association requesting that the
11.10increase not be made.
11.11(e) The retirement annuity payable to a person who retires before becoming eligible
11.12for Social Security benefits and who has elected the optional payment, as provided in
11.13section
11.14annuity and a life retirement annuity for the purposes of any postretirement adjustment.
11.15The period-certain retirement annuity plus the life retirement annuity must be the
11.16annuity amount payable until age 62 for section
11.17adjustment granted on the period-certain retirement annuity must terminate when the
11.18period-certain retirement annuity terminates.
11.19EFFECTIVE DATE.This section is effective the day following final enactment.
11.20 Sec. 12. Minnesota Statutes 2012, section 356.415, subdivision 1c, is amended to read:
11.21 Subd. 1c. Annual postretirement adjustments; PERA-police and fire. (a)
11.22Retirement annuity, disability benefit, or survivor benefit recipients of the public
11.23employees police and fire retirement plan are entitled to a postretirement adjustment
11.24annually on January 1, until funding stability is restored, as follows:
11.25(1) for
11.26recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
11.27been receiving the annuity or benefit for at least 12 full months as of the immediate
11.28preceding June 30, an amount equal to one percent in each year; or
11.29(2) for
11.30recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
11.31been receiving the annuity or benefit for at least one full month, but not less than 11
11.32months, as of the immediate preceding June 30, an amount equal to 1/12 of one percent
11.33
11.34(3) for
11.35
12.1
12.2or benefit effective date is after June 1, 2014, who
12.3annuity or benefit for at least
12.4an amount equal to
12.5
12.6
12.7
12.8(4) for
12.9
12.10
12.11effective date is after June 1, 2014, who has been receiving the annuity or benefit for at
12.12least
12.1330, an amount equal to 1/12 of
12.14
12.15
12.16
12.17
12.18receipt during the fiscal year in which the annuity or benefit was effective
12.19
12.20the public employees police and fire retirement plan are entitled to a postretirement
12.21adjustment annually on each January 1 following the restoration of funding stability as
12.22defined under paragraph
12.23under paragraph
12.24(1) for each annuitant or benefit recipient who has been receiving the annuity or
12.25benefit for at least
12.26equal to the percentage increase in the Consumer Price Index for urban wage earners and
12.27clerical workers all items index published by the Bureau of Labor Statistics of the United
12.28States Department of Labor between the immediate preceding June 30 and the June 30
12.29occurring 12 months previous, but not to exceed 2.5 percent; and
12.30
12.31
12.32
12.33for at least
12.34preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer
12.35Price Index for urban wage earners and clerical workers all items index published by
12.36the Bureau of Labor Statistics of the United States Department of Labor between the
13.1immediate preceding June 30 and the June 30 occurring 12 months previous for each full
13.2month of annuity or benefit receipt during the fiscal year in which the annuity or benefit
13.3was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or
13.4benefit receipt during the fiscal year in which the annuity or benefit was effective.
13.5
13.6employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
13.7accrued liabilities of the applicable plan in the two most recent
13.8
13.9work of the Legislative Commission on Pensions and Retirement by the approved actuary
13.10retained by the Public Employees Retirement Association under section
13.11(d) After having met the definition of funding stability under paragraph (c), a full
13.12or prorated increase, as provided in paragraph (a), clauses (1), (2), (3), or (4), whichever
13.13applies, rather than adjustments under paragraph (b), is again applied in a subsequent year
13.14or years if the market value of assets of the public employees police and fire retirement
13.15plan equals or is less than:
13.16(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
13.17consecutive actuarial valuations; or
13.18(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
13.19recent actuarial valuation.
13.20
13.21automatically unless written notice is filed by the annuitant or benefit recipient with the
13.22executive director of the Public Employees Retirement Association requesting that the
13.23increase not be made.
13.24EFFECTIVE DATE.This section is effective the day following final enactment.
