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S.F. No. 545 - Omnibus Retirement Bill - The Second Engrossment
 
Author: Senator Julie A. Rosen
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: May 20, 2017



 

Introduction

S.F. 545 (Rosen), the second engrossment, contains the contents of the 2017 Omnibus Retirement Bill as recommended by the Senate Committee on State Government Finance on May 11, 2017.

Prepared by Susan Lenczewski, Executive Director, Legislative Commission on Pensions and Retirement

Source Legislation for the 2017 Retirement Bill

S.F. 545 (Rosen), the second engrossment, includes all or portions of the following retirement bills:

1.      SF 26 (Sparks); HF 11 (Poppe): Austin Fire Relief Association/PERA-P&F; Permitting an alternative allocation of fire state aid for the City of Austin.

2.      SF 436 (Pappas); HF 977 (O'Driscoll): MSRS-Correctional; Expanding coverage to add additional categories of employees at the Department of Corrections.

3.      SF 522 (Frentz); HF 637 (Johnson, C.): MSRS-Correctional; Expanding coverage to add an additional category of employees at the Department of Human Services.

4.      SF 545 (Rosen); HF 565 (O'Driscoll): Portions of the vetoed 2016 Omnibus Retirement Bill

(2016 original source bills are identified in the section-by-section summary in italics).

5.      SF 746 (Rosen); HF 721 (Murphy, M.): TRA; Administrative provisions.

6.      SF 1375 (Rosen); HF 1471 (O'Driscoll): PERA; Administrative provisions.

7.      SF 1376 (Rosen); HF 1460 (O'Driscoll): MSRS; Administrative provisions.

8.      SF 1384 (Rosen); HF 1672 (Murphy, M.): VFRAs; Incorporating the recommendations of the Volunteer Fire Relief Association Working Group.

9.      SF 1705 (Rosen); HF 2126 (O'Driscoll): MSRS; Revising augmentation rates for certain terminated privatized employees (Fairview).

10.  SF 1839 (Miller); HF xxxx: TRA/IRAP; Authorizing a Winona State University employee to elect prospective and retroactive TRA coverage.

11.  SF 1945 (Lourey); HF 2092 (Rarick): PERA-SVFRP; Permitting the City of Brook Park to lower the service pension level for its volunteer firefighters under the PERA voluntary statewide volunteer firefighter retirement plan.

12.  SF 2332 (Rosen); HF 2604 (O’Driscoll): PERA-SVFRP; Permitting the transfer of assets and liabilities from the PERA voluntary statewide volunteer firefighter retirement plan to a volunteer firefighter relief association.

13.  LCPR17-035 (Murphy, M.): PERA; “Red Mittens Act;” Authorizing an eligible Duluth township employee to elect PERA-General plan coverage and receive retroactive coverage.

14.  LCPR17-036 (Murphy, M.): MSRS-Unclassified; Grandfathering current factors used in the calculation of annuities under the MSRS Unclassified Program.

15.  LCPR17-038: Minnesota public employee pension plans; Benefit and contribution changes.

16.  State Government Finance Amendment SCS0545A-4: General fund and nongeneral fund appropriations to pay a portion of the proposed MSRS-General, MSRS-Correctional, State Patrol, and SPTRFA employer contributions.

Summary of the 2017 Senate Omnibus Retirement Bill, S.F. 545 (Rosen), the Second Engrossment

Articles 1-2: Benefit changes for MSRS-General and PERA-General. (LCPR17-038)

Articles 1 and 2 modify benefits under the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General) and the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), as follows:

·   eliminates “augmentation,” which is automatic annual increases in the pension benefits accrued by former employees;

·   phases in, over a five-year period, the elimination of augmentation in the calculation of early retirement benefits;

·   reduces the rate of interest on refunds of employee contributions to former employees.

The articles also repeal the contribution stabilizer provisions which allow the plans’ boards to adjust contribution rates, subject to review by the Pension Commission.

Article 3: Repeal of contribution stabilizer provisions for TRA. (LCPR17-038)

The article repeals the contribution stabilizer provisions which allow the plans’ boards to adjust contribution rates, subject to review by the Pension Commission.

Article 4: Benefit changes for St. Paul Teachers. (LCPR17-038)

The article modifies benefits under the St. Paul Teachers Retirement Fund Association, as follows:

·     freezes post-retirement adjustments (COLAs) for two years;

·     delays the commencement of COLAs until normal retirement age;

·     eliminates “augmentation,” which is automatic annual increases in the pension benefits accrued by former employees;

·     phases in, over a five-year period, the elimination of augmentation in the calculation of early retirement benefits;

·     reduces the rate of interest on refunds of employee contributions to former employees;

·     repeals the COLA triggers, which automatically increase the COLA when certain funding thresholds are met.

Article 5: Actuarial and COLA changes. (LCPR17-038)

The article makes changes to actuarial assumptions and post-retirement adjustments (COLAs), as follows:

·     reduces the investment rate of return to 7.5% for all plans;

·     extends the end of the amortization period to 2047 for MSRS plans, PERA plans, and SPTRFA;

·     reduces the COLAs for MSRS-General, MSRS Correctional, and PERA Correctional;

·     delays the commencement of COLAs until normal retirement age for MSRS-General and PERA- General;

·     repeals the COLA triggers, which automatically increase the COLA when certain funding thresholds are met, for all plans except TRA.

The article also requires the Pension Commission to conduct a study on the COLA rates and the methodology for determining post-retirement adjustments.

Article 6: Interest rate language clean-up. (LCPR17-038)

The article adds a new interest rate section that sets forth the rates for all the plans, including TRA, and makes conforming changes to other sections that refer to interest rate.

Article 7: Contribution increases for all plans except PERA-General and TRA. (LCPR17-038)

The article increases the employee and employer contribution rates for most of the plans.

Article 8: New direct state aid payments. (LCPR17-038)

The article provides for annual state aid payments to the PERA police and fire plan and St. Paul Teachers Retirement Fund Association.

Article 9: MSRS administrative provisions. (SF545/HF565; SF1376/HF1460)

The article makes administrative or technical changes to the statutes governing MSRS that bring statutory language into conformity with actual practice, clarify ambiguous or confusing language, and repeal obsolete provisions.

Article 10: PERA administrative provisions. (SF545/HF565; SF1375/HF1471)

The article makes administrative or technical changes to the statutes governing PERA that bring statutory language into conformity with actual practice, clarify ambiguous or confusing language, and repeal obsolete provisions.

Article 11: TRA administrative provisions. (SF545/HF565; SF746/HF721)

The article makes administrative or technical changes to the statutes governing the TRA that bring statutory language into conformity with actual practice, clarify ambiguous or confusing language, and repeal obsolete provisions.

Article 12: SPTRFA administrative provisions. (SF545/HF565)

The article makes administrative or technical changes to the statutes governing the St. Paul Teachers Retirement Fund Association (SPTRFA) that bring statutory language into conformity with actual practice, clarify ambiguous or confusing language, and repeal obsolete provisions.

Article 13: Administrative provisions relating to retirement systems, generally. (SF545/HF565; SF1375/HF1471)

The article makes administrative or technical changes to the statutes governing Minnesota public plans in general that bring statutory language into conformity with actual practice, clarify ambiguous or confusing language, and repeal obsolete provisions.

Article 14: Actuarial assumptions. (SF545/HF565)

The article updates the payroll growth and salary increase assumptions for MSRS-General, PERA-General, TRA, and SPTRFA and removes obsolete references.

Article 15: Volunteer firefighter relief associations. (SF545/HF565; SF26/HF11; SF1384/HF1672)

The article revises statutes governing volunteer firefighter relief associations, including the following:

·     Adopts changes recommended by the 2015 and 2016 Volunteer Fire Relief Association Working Groups.

·     Increases the maximum lump-sum service pension amount for defined benefit volunteer firefighter relief associations (“VFRAs”).

·     Reduces the vesting requirements for Eden Prairie volunteer firefighters upon return to active service.

·      Authorizes the City of Austin's allocation of fire state aid between its VFRA and PERA-P&F employer contributions.

·     Establishes a Fire State Aid Work Group convened by PERA to address fire state aid.

Article 16: MSRS-administered retirement plan modifications. (SF436/HF977; SF545/HF565; SF522/HF637; LCPR17-036; SF1705/HF2126; Amendment S0545-11A)

The article revises statutes that relate to pension and defined contribution plans administered by MSRS, including the following:

·     Clarifies the deadline for submitting an application for disability benefits.

·     Adds additional positions at the Department of Corrections and Department of Human Services eligible for coverage under the MSRS Correctional Plan.

·     Codifies the Department of Human Services’ review process for including additional employment positions in MSRS-Correctional.

·     Extends the period for an additional three years for members close to retirement during which the current conversion factors will be used in converting an account balance to an annuity under the MSRS Unclassified Plan, a defined contribution plan.

·     Reduces the enhanced rate of augmentation for former employees of the University of Minnesota Hospital and Clinics under MSRS-General who were transferred to Fairview Hospital and Healthcare Services in 1996 and makes changes to the exception from enhanced augmentation upon return to public service.

Article 17: PERA-Administered Retirement Plan Modifications. (SF545/HF565; SF1945/HF2092; SF2332/HF2604; Amendment S0545-11A)

The article revises statutes that relate to pension and defined contribution plans administered by PERA, including the following:

·     Revises the definition of “line of duty death” to include the definition under section 299A.41, Subdivision 3, which is consistent with the federal Hometown Heroes Act.

·     Eliminates the requirement that monthly benefit volunteer firefighter plans that join the Statewide Volunteer Firefighter Retirement Plan (PERA Statewide Firefighter Plan) must reimburse for PERA administrative expenses.

·     Allows the City of Brook Park to lower the annual service pension level for its volunteer firefighters covered under PERA-SVFRP.

·     Allows volunteer firefighters in PERA-SVFRP to transfer assets and members from PERA Statewide Firefighter Plan to a local relief association governed by Chapter 424A. This change was requested by the cities of Cromwell and Wright to allow them to continue with the merger of their firefighter services.

Article 18: Generally applicable retirement changes. (SF545/HF565)

·     Increases the maximum employer contribution for the laborers national industrial pension plan.

·     Authorizes all state public retirement plans to accept gifts, donations, bequests, and life insurance death benefits.

Article 19: Plan or benefit changes for small groups or individuals. (SF545/HF565; SF1839/HFxxxx; LCPR17-035)

The article allows certain small groups of members or individuals to elect retroactive and prospective pension plan coverage in order to correct employer errors.

Article 20: Technical Corrections. (SF545/HF565)

The article removes obsolete references, including references to the Duluth Teachers Retirement Fund Association and the Duluth school district.

Article 21: Appropriations. (St. Govt. Finance Amendment SCS0545A-4)

The article makes the following appropriations:

·     From the general fund $5,699,000 in FY 2018 and $10,575,000 in FY 2019 and from any nongeneral funds the amounts necessary to pay a portion of the increased MSRS employer contributions.

·     From the general fund $1,950,000 in FY 2018 and $3,250,000 in FY 2019 for payment to SPTRFA for increased employer contributions.

Article 1: Minnesota State Retirement System Benefit and Contribution Changes

 

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

 

 

1

 

3A.02, Subd. 4

 

Legislators Plan

 

Eliminates augmentation for all members after 12/31/ 2017; maintains augmentation earned up to 12/31/2017.

 

 

2

 

352.116, Subd. 1a

 

MSRS-General

 

Eliminates augmentation in calculating early retirement benefits over a five year period starting 7/1/2018, resulting in actuarial equivalence after 7/1/2023.

 

 

3

 

352.22, Subd. 2

 

MSRS Plans

 

Lowers the interest rate on refunds of employee contributions from 4% to 3%.

 

 

4

 

352.22, New Subd. 2b

 

MSRS Plans

 

Clarifies the procedure to repay a refund.

 

 

5

 

352.22, Subd. 3

 

MSRS Plans

 

Corrects a cross-reference

 

 

6

 

352.22, New Subd. 3a

 

MSRS-General MSRS-Correctional

 

Eliminates augmentation for all members after 12/31/ 2017; maintains augmentation earned up to 12/31/2017.

 

 

7

 

352B.08, New Subd. 2b

 

State Patrol

 

Eliminates augmentation for all members after 12/31/ 2017; maintains augmentation earned up to 12/31/2017.

 

 

8

 

352D.085, Subd. 1

 

Unclassified Plan

 

Corrects cross-references.

 

 

9-10

 

490.121, Subd. 25-26

 

Judges Plan

 

Corrects cross-references.

 

 

11

 

Repealer

 

MSRS Plans

 

Repeals sections 3A.12, 352.72, and 352B.30, the “Coverage by More than One Fund” statutes, which are replaced by new section 356.311; repeals section 352.045, the “contribution stabilizer,” which allows the plan’s board to adjust contribution rates, subject to review by the Pension Commission.

 


Article 2: Public Employees Retirement Association Benefit and Contribution Changes

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

353.30, Subd. 5

 

PERA-General

 

Eliminates augmentation in calculating early retirement benefits over a five year period starting 7/1/2018, resulting in actuarial equivalence after 7/1/2023.

2

 

353.34, Subd. 2

 

PERA plans

 

Lowers the interest rate on refunds of employee contributions from 4% to 3%.

3

 

353.34, Subd. 3

 

PERA plans

 

Eliminates augmentation for all members after 12/31/2017; maintains augmentation earned up to 12/31/2017.

4

 

Repealer

 

PERA plans

 

Repeals section 353.71, the “Coverage by More than One Fund” statute, which is replaced by new section 356.311; and section 353.27, the “contribution stabilizer,” which allows the plan’s board to adjust contribution rates, subject to review by the Pension Commission.


Article 3: Teachers Retirement Association Benefit and Contribution Changes

 

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

 

 

 

1

 

354.436, Subd. 3

 

TRA

 

Removes the reference to section 354.42, which is being repealed.

 

 

 

2

 

Repealer

 

TRA

 

Repeals section 354.60, the “Coverage by More than One Fund” statute, which is replaced by new section 356.311; and section 354.42, the “contribution stabilizer,” which allows the plan’s board to adjust contribution rates, subject to review by the Pension Commission.”

 

 


Article 4: St. Paul Teachers Retirement Fund Association Benefit and Contribution Changes

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

354A.011, Subd. 3a

 

SPTRFA

 

Updates a reference to the investment return assumption.

2

 

354A.29, Subd. 7

 

SPTRFA

 

Eliminates the COLA for 2018 and 2019; resumes COLAs at 1% thereafter.

Delays the start of COLAs, for retirements on or after 1/1/2023, until the retiree reaches normal retirement age (not applicable to Rule of 90 retirees, disability benefit recipients, or survivor benefit recipients).

3

 

354A.31, Subd. 7

 

SPTRFA

 

Eliminates augmentation in calculating early retirement benefits over a five-year period starting 7/1/2018, resulting in a 4% per year reduction for retirement at ages 55 through 59 and a 7% per year reduction for retirement at ages 60 through normal retirement age by 7/1/2023 (not applicable to members who retire early under the “62/30” rule).

4

 

354A.37, Subd. 2

 

SPTRFA

 

Eliminates augmentation for all members after 12/31/2017; maintains augmentation earned up to 12/31/2017.

5

 

354A.37, Subd. 3

 

SPTRFA

 

Lowers the interest rate on refunds of employee contributions from 4% to 3%.

6

 

Repealer

 

SPTRFA

 

Repeals section 354A.39, the “Coverage by More than One Fund” statute, which is replaced by new section 356.311; and repeals subdivisions in section 354A.29, the “COLA triggers,” which provide for automatic COLA adjustments when specified funding ratios are met.

Article 5: Postretirement Adjustments for Statewide Plans and General Provisions

 

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

 

 

1

 

356.215, Subd. 8

 

MSRS Plans PERA Plans SPTRFA

 

Lowers the investment return assumption to 7.5% for all MSRS plans, PERA plans, and SPTRFA, effective 7/1/2017.

 

 

2

 

356.215, Subd. 9

 

All Plans

 

Gives the pension plans the flexibility to use updated mortality improvement scales in their actuarial valuations.

 

 

3

 

356.215, Subd. 11

 

MSRS Plans PERA Plans SPTRFA

 

Resets the 30-year amortization period to 2047 for MSRS plans, PERA plans, and St. Paul Teachers.

 

 

4

 

356.30, Subd. 1

 

Combined Service Annuity Plans

 

Clarifies the Combined Service Annuity provision and makes changes to conform this provision to the elimination of augmentation.

 

 

5

 

New Section 356.311

 

All Plans

 

Adds a new section regarding "Coverage by More than One Plan," which will apply to all pension plans.

 

 

6

 

356.415, Subd. 1

 

MSRS-General Legislators Plan MSRS-Unclassified

 

Removes the COLA triggers, which provide for automatic COLA adjustments when specified funding ratios are met.

Lowers the COLA from 2% to 1% for five years, and 1.5% thereafter.

Delays the start of COLAs, for retirements on or after 1/1/2023, until the retiree reaches normal retirement age (not applicable to Rule of 90 retirees, disability benefit recipients, or survivor benefit recipients).

 

 

7

 

356.415, Subd. 1a

 

MSRS-Correctional

 

Removes the COLA triggers, which provide for automatic COLA adjustments when specified funding ratios are met.

Lowers the COLA from 2% to 1.5%, effective 1/1/2018.

 

 

8

 

356.415, Subd. 1b

 

PERA-General

 

Removes the COLA triggers, which provide for automatic COLA adjustments when specified funding ratios are met.

Delays the start of COLAs, for retirements on or after 1/1/2023, until the retiree reaches normal retirement age (not applicable to Rule of 90 retirees, disability benefit recipients, or survivor benefit recipients).

 

 

9

 

356.415, Subd. 1c

 

PERA-P&F

 

Removes the COLA triggers, which provide for automatic COLA adjustments when specified funding ratios are met.

 

 

10

 

356.415, Subd. 1d

 

TRA

 

Deletes an obsolete cross-reference.

 

 

11

 

356.415, Subd. 1e

 

State Patrol Plan

 

Removes the COLA triggers, which provides for automatic COLA adjustments when specified funding ratios are met.

 

 

12

 

356.415, Subd. 1f

 

Judges Plan

 

Adds language to maintain the COLA triggers, which provide for automatic COLA adjustments when specified funding ratios are met.

 

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

13

 

356.415, New Subd. 1g

 

PERA-Correctional

 

Removes the COLA triggers, which provides for automatic COLA adjustments when specified funding ratios are met.

Lowers the COLA from 2.5% to 1.5%, effective 1/1/2018.

14

 

Uncoded

 

LCPR Study

 

Requires the Pension Commission to conduct a study before 12/31/2020 on the plans’ COLA rates and make recommendations for any rate modifications and change of methodology for determining the rates.


Article 6: Interest Rate Conforming Changes

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

3A.03, Subd. 2

 

Legislators Plan

 

Adds cross-reference to new interest rate table.

2-7

 

352.01, Subd. 13a

352.017, Subd. 2

352.04, Subd. 8, 9

352.23

352.27

 

MSRS plans

 

Adds cross-references to new interest rate table.

8

 

352.955, Subd. 3

 

MSRS-Correctional

 

Adds cross-reference to new interest rate table.

9-12

 

352B.013, Subd. 2

352B.085

352B.086

352B.11, Subd. 4

 

State Patrol

 

Adds cross-references to new interest rate table.

13-15

 

352D.05, Subd. 4

352D.11, Subd. 2

352D.12

 

MSRS-Unclassified

 

Adds cross-references to new interest rate table.

16-17

 

353.01, Subd. 16

353.0162

 

PERA plans

 

Adds cross-references to new interest rate table.

18-19

 

353.27, Subd. 3c, 7a

 

PERA-General

 

Adds cross-references to new interest rate table.

20-24

 

353.27, Subd. 12, 12a, 12b

353.28, Subd. 5

353.35, Subd. 1

 

PERA plans

 

Adds cross-references to new interest rate table.

25-28

 

354.50 Subd. 2

354.51 Subd. 5

354.52 Subd. 4

354.53 Subd. 5

 

TRA

 

Adds cross-references to new interest rate table.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

29-33

 

354A.093, Subd. 6

354A.096

354A.12, Subd. 1a, 7

354A.34

 

SPTRFA

 

Adds cross-references to new interest rate table.

34-37

 

356.195, Subd. 2

356.44

356.50, Subd. 2

356.551, Subd. 2

 

All plans

 

Adds cross-references to new interest rate table.

38

 

New § 356.59

 

All plans

 

Compiles the interest rates over different time periods for each of the plans; decreases the interest rate for all plans except TRA to 7.5%, effective 7/1/2017.

39-41

 

490.121, Subd. 4

490.1211

490.124, Subd. 12

 

Judges plan

 

Adds cross-references to new interest rate table.


Article 7: Contribution Rates

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

352.04, Subd. 2

 

MSRS-General

 

Increases the member contribution rate by 0.5% of pay over two years, beginning July 1, 2017.

2

 

352.04, Subd. 3

 

MSRS-General

 

Increases the employer contribution rate by 0.75% of pay over two years, beginning July 1, 2017.

3

 

352.92, Subd. 1

 

MSRS-Correctional

 

Increases the member contribution rate by 0.5% of pay, effective July 1, 2017.

4

 

352.92, Subd. 2

 

MSRS-Correctional

 

Increases the regular employer contribution rate by 1.55% of pay, effective July 1, 2018.

5

 

352.92, New Subd. 2a

 

MSRS-Correctional

 

Adds a new supplemental employer contribution of 1.45% of pay, effective July 1, 2018; 2.95%, effective July 1, 2019;

and 4.45%, effective July 1, 2020; this supplemental contribution remains in effect until the market value of assets equals or exceeds actuarial accrued liability.

6

 

352B.02, Subd. 1a

 

State Patrol Plan

 

Increases the member contribution rate by .5% of pay, effective July 1, 2017, and by another .5% of pay, effective July 1, 2019.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

7

 

352B.02, Subd. 1c

 

State Patrol Plan

 

Increases the employer regular contribution rate by 1.5% of pay over two years, beginning July 1, 2017.

Adds a new supplemental employer contribution of 1.75% of pay, effective July 1, 2017; 3%, effective July 1, 2018; 5%,

effective July 1, 2019; and 7%, effective July 1, 2010; this supplemental contribution remains in effect until the market value of assets equals or exceeds actuarial accrued liability.

8

 

354D.04, Subd. 2

 

MSRS-Unclassified

 

Sets the member contribution rate at 5.5% of pay rather than tied to the MSRS-General member contribution rate, which is being increased in Section 1.

9

 

353.65, Subd. 2

 

PERA-P&F

 

Increases the member contribution rate by 1% of pay over two years, beginning January 1, 2018.

10

 

353.65, Subd. 3

 

PERA-P&F

 

Increases the employer contribution rate by 1.5% of pay over two years, beginning January 1, 2018.

11

 

354A.12, Subd. 1

 

SPTRFA

 

Increases the member contribution rate by 0.25% of pay, effective July 1, 2021.

12

 

354A.12, Subd. 2a

 

SPTRFA

 

Increases the employer contribution rate by 2.5% of pay over four years, beginning July 1, 2017.


Article 8: Direct State Aid

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

353.65, New Subd. 3b

 

PERA-P&F

 

Requires annual direct state aid payments of $4.5 million on October 1, 2017, and on October 1, 2018, and $9 million annually thereafter.

2

 

354A.12, Subd. 3a

 

SPTRFA

 

Requires annual direct state aid payments of $5 million each October 1.


Article 9: Minnesota State Retirement System Administrative Provisions

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

3A.03, Subd. 2

 

Legislators Plan

 

Adds a reference to the MSRS-General refund repayment provision.

2

 

3A.03, Subd. 3

 

Legislators Plan

 

Clarifies that plan can accept transfers from the general fund.

3

 

16A.14, Subd. 2a

 

MSRS Deferred Compensation Plan

 

Adds an exception from the SWIFT system for transactions within MSRS’ defined contribution funds.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

4

 

352.01, Subd. 2a

 

MSRS-General

 

Includes employees of the Perpich Center for Arts Education coverage if they were covered by the plan on 7/1/2016.

5

 

352.03, Subd. 5

 

MSRS Plans

 

Revises the qualifications the Board must consider when hiring an executive director; adds references to a deputy director position.

6

 

352.03, Subd. 6

 

MSRS Plans

 

Authorizes the executive director to appoint a deputy director with Board approval.

7

 

352.113, Subd. 4

 

MSRS Plans

 

Adds "nurse practitioner" to the list of authorized medical providers for disability determinations and extends the disability benefit application deadline in cases of cognitive impairment.

8

 

352.113, Subd. 14

 

MSRS Plans

 

Allows the executive director to waive the earnings reporting requirement for disabled members who do not undergo regular medical exams.

9

 

352.23

 

MSRS-General

 

Clarifies the process to repay a refund.

10

 

352B.11, Subd. 4

 

State Patrol Plan

 

Ties the repayment provision to the General Plan provision.

11-12

 

352D.02, Subd. 1, 3

 

MSRS-Unclassified

 

Clarifies the MSRS-Unclassified to MSRS-General transfer provision

13

 

352D.05, Subd. 4

 

MSRS-Unclassified

 

Ties the refund repayment provision to the General Plan provision.

14

 

490.124, Subd. 12

 

Judges Plan

 

Ties the refund repayment provision to the General Plan provision.


Article 10: Public Employees Retirement Association Administrative Provisions

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

353.01, Subd. 2b

 

PERA-General

 

Updates language in the foreign citizens provision and clarifies when membership begins if the employee’s work permit or work visa extends beyond three years.

2

 

353.01, Subd. 10

 

PERA-General

 

Clarifies that if an employer spreads out the salary paid to a member over a period of leave, that salary will be used for pension purposes only if it is paid at the full-time rate.

3

 

353.01, Subd. 47

 

PERA-General PERA-Correctional PERA-P&F

 

Clarifies that a member receives service credit for vesting purposes for each year of service covered by the plan in which the member is covered.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

4

 

353.0162

 

PERA Defined Benefit Plans

 

Merges the service credit purchase provision into the salary purchase provision to provide one method for purchasing missed periods of service.

5

 

353.03, Subd. 3

 

PERA

 

Deletes a redundant board duty to authorize procedures for use of electronic signatures.

6

 

353.29, Subd. 4

 

PERA

 

Removes the requirement that annuity applications and proof of identity be in writing.

7

 

353.29, Subd. 7

 

PERA

 

Reduces the period of retroactivity for an annuity starting date from the current 12 months to 6 months, aligning PERA with MSRS and TRA.

8

 

353.30, Subd. 3c

 

PERA

 

Provides flexibility in determining the death of a beneficiary.

9

 

353.32, Subd. 1

 

PERA-General

 

Clarifies that if a member dies before receiving a retirement annuity, any prior benefits paid by the fund must be deducted from the amount refunded to the beneficiary.

10

 

353.34, Subd. 2

 

PERA-General

 

Clarifies that if a member terminates public service and elects to take a refund, any prior disability benefits paid by the fund must be deducted from the refund.

11

 

353.35, Subd. 1

 

PERA-General

 

Clarifies language and adds the limitation that a person has a one-time right to repay a refund.

12

 

353.37, Subd. 1

 

PERA plans

 

Clarifies that the reemployed annuitant pension reduction applies only to PERA covered employment or for a labor organization representing PERA employees.

13

 

353.64, Subd. 10

 

PERA-P&F

 

Specifies that Hennepin Healthcare Systems Inc. supervisors and managers of paramedics or EMTs are covered by PERA-P&F if they are full-time and certified.

14

 

353F.02, Subd. 5a

 

PERA Privatizations

 

Clarifies the definition of "privatized former public employer" to be the medical facility at the time of the initial privatization.

15

 

353F.025, Subd. 2

 

PERA Privatizations

 

Eliminates an outdated reporting requirement.

16

 

353F.04, Subd. 2

 

PERA Privatizations

 

Replaces the term "successor entity" with the term "privatized former public employer" defined in 353F.02, Subd. 5a.

17

 

353F.05

 

PERA Privatizations

 

Replaces the term "successor entity" with "privatized former public employer" defined in 353F.02, Subd. 5a.

18

 

353F.057

 

PERA Privatizations

 

Deletes the term "successor entity" from the termination from service requirement.

19

 

353F.06

 

PERA Privatizations

 

Deletes the term "successor entity" from the reemployed annuitant earnings limitations provision.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

20

 

353F.07

 

PERA Privatizations

 

Deletes "successor entity" from the effect on refund provision.

21

 

New § 353F.09

 

PERA Privatizations

 

Specifies that benefits for privatized employees end when the privatized entity or its operations are sold again to another employer.

22

 

Repealer

 

PERA

 

Repeals Minn. Stat. § 353.0161 because the language was merged into 353.0162.


Article 11: Teachers Retirement Association Provisions Administrative Provisions

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

354.05, Subd. 2

 

TRA

 

Removes obsolete references to the Duluth school district and MnSCU; excludes employees of the Perpich Center for Arts Education if they were covered by MSRS-General on 7/1/2016; and clarifies that any charter school director covered by PERA as of 7/1/2017, must remain under PERA coverage.

2

 

354.05, New Subd. 17a

 

TRA

 

Adds the definition of “former spouse” to refer to a person no longer married to a member due to divorce, separation, or annulment.

3

 

354.06, Subd. 2

 

TRA

 

Revises the qualifications the Board of Trustees must consider when hiring an executive director.

4

 

354.06, Subd. 2a

 

TRA

 

Authorizes the executive director to designate a deputy executive director with Board approval.

5

 

354.095

 

TRA

 

Extends the number of years of authorized medical leave that can be considered allowable service credit; requires the executive director to reject an application for TRA disability benefits if the member is only applying because a long-term disability insurance policy requires the application.

6

 

354.44, Subd. 3

 

TRA

 

Extends the time period for applying for pension benefits before termination of employment from 120 days to 180 days.

7

 

354.44, Subd. 9

 

TRA

 

Updates the language to reflect that the current method of counting service credit is based on portions of a year.

8

 

354.45, New Subd. 3

 

TRA

 

Upon the death of a former spouse who was receiving a 15- year certain annuity or other guaranteed payment stream, the remaining payments will be made to the designated beneficiary or to the former spouse’s estate or as ordered by a court.

9

 

354.46, Subd. 6

 

TRA

 

Clarifies that if a member has multiple designated beneficiaries, each beneficiary has right to apply for an annuity separate from the other beneficiaries.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

10

 

354.48, Subd. 1

 

TRA

 

Clarifies that a totally and permanently disabled member is entitled to a disability benefit if the member has not reached normal retirement age; removes obsolete minimum salary requirement.

11

 

354.512

 

TRA

 

Removes a waiting period requirement that will allow TRA to collect delinquent payments more quickly.

12

 

354.52, Subd. 4

 

TRA

 

Removes the requirement that TRA must wait 60 days after notifying a school district or charter school of delinquent contributions to contact MMB.

13

 

354.52, Subd. 4d

 

TRA

 

Removes an unnecessary requirement that a school district report to TRA the beginning and ending dates for the school work year by June 30.

14

 

354.55, Subd. 11

 

TRA

 

Deletes an ambiguous requirement regarding how to calculate the automatic 2% augmentation when the teacher has more than one period of service.

15

 

354.66, Subd. 2

 

TRA

 

Permits TRA to waive a fine that would otherwise be imposed for failure to deliver a part-time teacher agreement to TRA according to the statutory due date.

16

 

354.72, Subd. 1

 

TRA

 

Clarifies that the purchase of service credit for leaves of absence and strike periods provision applies to both paid and unpaid leaves.

17

 

423A.02, Subd. 3

 

TRA, SPTRFA

 

Removes obsolete reference to the Duluth Teachers Retirement Fund Association in reallocating fire state aid.


Article 12: St. Paul Teachers Retirement Fund Association Administrative Provisions

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

354A.093, Subd. 4

 

SPTRFA

 

Removes obsolete reference to “applicable first class city” and replaces it with “St. Paul” to refer to SPTRFA.

2

 

354A.38

 

SPTRFA

 

Clarifies the periods during which 8.5% or 8% interest rate applies to the repayment of a refund.

Article 13: Retirement Systems, Generally, Administrative Provisions

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

2

 

356.47, Subd. 3

 

Retirement, Generally

 

Replaces the current description of the federal requirements regarding repayment of reemployed annuitant withholding amounts with a reference to § 356.635, Subd. 3-7, which sets forth the federal requirements governing direct rollovers.

3

 

356.635, New Subd. 9a

 

All plans

 

Revises and supplements definitions relating to the annual limits on pension benefits payable and additions to defined contribution accounts under the federal Internal Revenue Code and consolidates all definitions into a new subdivision.

4

 

356.635, Subd. 10

 

All plans

 

Clarifies the language regarding the annual limit on pension benefits payable applicable to all pension plans, as required by the federal Internal Revenue Code.

5

 

356.635, New Subd. 11

 

All plans

 

Adds a new subdivision setting forth the annual limit on additions to defined contribution accounts that is applicable to all defined contribution plans, as required by the federal Internal Revenue Code.

6

 

356.635, New Subd. 12

 

All plans

 

Adds a new subdivision that incorporates by reference Section 415 of the federal Internal Revenue Code, relating to annual limits on pensions and contributions.

7

 

356.635, New Subd. 13

 

All plans

 

Adds a new subdivision that authorizes the executive director of each retirement plan to correct operational, document or other errors to preserve the plan’s tax qualification, including corrections described in the IRS’s Employee Plans Compliance Resolution System.

8

 

356.96, Subd. 1

 

All plans except SPTRFA and VFRAs

 

Revises the definitions relating to the retirement plans’ appeal procedures for member claims for benefits; adds a new definition for “petitioner.”

9

 

356.96, Subd. 2

 

All plans except SPTRFA and VFRAs

 

Clarifies that a member may appeal to the executive director in writing a staff decision regarding eligibility, benefits or other rights.

10

 

356.96, Subd. 3

 

All plans except SPTRFA and VFRAs

 

Clarifies the information the executive director must provide to a member in the notice of determination, which must include timing and contents requirements for filing a petition for review.

11

 

356.96, Subd. 4

 

All plans except SPTRFA and VFRAs

 

Clarifies the additional information the executive director must provide to the member in the notice of determination if the member’s benefit is being terminated.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

12

 

356.96, Subd. 5

 

All plans except SPTRFA and VFRAs

 

Clarifies the process a member must follow to file a timely petition with the plan’s governing board for review of the executive director’s determination.

13

 

356.96, Subd. 6

 

All plans except SPTRFA and VFRAs

 

Removes obsolete reference to “chief administrative officer” and replaces it with “executive director.”

14

 

356.96, Subd. 7

 

All plans except SPTRFA and VFRAs

 

Clarifies that the executive director may direct that a fact-finding conference with an administrative law judge or a vocational assessment is to occur; clarifies the filing and timing requirements for holding a hearing before the plan’s board.

15

 

356.96, Subd. 8

 

All plans except SPTRFA and VFRAs

 

Specifies the limits on the contents of the record to be delivered to the governing board prior to the hearing.

16

 

356.96, Subd. 9

 

All plans except SPTRFA and VFRAs

 

Removes obsolete reference to “chief administrative officer” and replaces it with “executive director”.

17

 

356.96, Subd. 10

 

All plans except SPTRFA and VFRAs

 

Clarifies the requirements for conducting a hearing before the applicable plan’s governing board, for participation by representatives of the member and the plan, and regarding the content and timing of a decision by the governing board.

18

 

356.96, Subd. 11

 

All plans except SPTRFA and VFRAs

 

Simplifies the requirements and provides the governing board with more discretion in determining disability medical issues.

19

 

356.96, Subd. 12

 

All plans except SPTRFA and VFRAs

 

Simplifies cross-references to the statute governing the conduct of an administrative fact-finding conference.

20

 

356.96, Subd. 13

 

All plans except SPTRFA and VFRAs

 

Clarifies the deadline for appealing the decision of a governing board to the state Court of Appeals.

21

 

Repealer

 

All plans except SPTRFA and VFRAs

 

Repeals Minn. Stat. §§ 356.611, Subd. 3, 3a, 4, and 5;

and 356.96, Subd. 14 and 15, because they are obsolete or have been merged into other subdivisions.


Article 14: Actuarial Assumption Changes

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

356.215, Subd. 8

 

MSRS, PERA, TRA, SPTRFA

 

Revises salary increase assumption calculation for SPTRFA, reduces salary increase assumptions for MSRS, PERA and TRA, and reduces payroll growth assumption for TRA to 3.5%.

Article 15: Volunteer Firefighter Relief Association Modifications

 

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

 

 

1

 

356A.06, Subd. 7

 

VFRAs

 

Clarifies the corporate stock restriction provision by requiring all purchases of shares of exchange-traded or mutual funds to be consistent with the provision governing securities generally.

 

 

2

 

424A.001, Subd. 2

 

VFRAs

 

Updates the definition of "fire department" to include joint powers fire departments.

 

 

3

 

424A.001, New Subd. 2a

 

VFRAs

 

Adds a new definition of “municipal” to mean a city or township.

 

 

4

 

424A.001, Subd. 3

 

VFRAs

 

Updates the definition of “municipality” to include joint powers fire departments.

 

 

5

 

424A.001, Subd. 10

 

VFRAs

 

Revises the definition of “volunteer firefighter" to conform to the new definition of "fire department" in 424A.001, Subd. 2.

 

 

6

 

424A.002, Subd. 1

 

VFRAs

 

Revises the authorization of new relief associations provision to conform to the new definition of "fire department" in 424A.001, Subd. 2.

 

 

7

 

New § 424A.003

 

VFRAs

 

Adds a new requirement that the fire chief annually certify each volunteer firefighter’s service credit to the associated relief association and municipality and provide notice to the firefighter; gives the firefighter a right to challenge the fire chief’s determination.

 

 

8

 

424A.01, Subd. 1

 

VFRAs

 

Adds "joint powers entity" to the fire prevention personnel membership provision.

 

 

9

 

424A.01, New Subd. 4a

 

VFRAs

 

Restricts firefighters from receiving relief association service credit for the same hours for which a PERA plan has already provided coverage.

 

 

10

 

424A.01, Subd. 5

 

VFRAs

 

Revises the membership provision to conform to the new definition of "municipality" in 424A.001, Subd. 2a.

 

 

11

 

424A.01, New Subd. 5a

 

VFRAs

 

Expands relief association membership eligibility to volunteer emergency medical personnel if the associated relief association’s bylaws and municipal entity authorizes the eligibility.

 

 

12

 

424A.01, Subd. 6

 

VFRAs

 

Clarifies that the return to service provision applies only to volunteer firefighters who take a break in service and then return to active firefighting.

 

 

13

 

424A.015, Subd. 1

 

VFRAs

 

Revises the separation from active service exception provision to conform to the new definitions of "municipality" and "fire department" in 424A.001, Subd. 2 and 2a.

 

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

14

 

424A.015, New Subd. 7

 

VFRAs

 

Adds defined contribution relief associations to the provisions for combined service pensions and moves the provision to the section that applies to both defined benefit and defined contribution relief associations.

15

 

424A.016, Subd. 2

 

VFRAs

 

Revises the term "a nonprofit firefighting corporation" to be "an independent nonprofit firefighting corporation" for consistency.

16

 

424A.02, Subd. 1

 

VFRAs

 

Revises the term "a nonprofit firefighting corporation" to be "an independent nonprofit firefighting corporation" for consistency.

17

 

424A.02, Subd. 3

 

VFRAs

 

Increases the maximum lump-sum service pension amount for all defined benefit relief associations. Allows Eden Prairie VFRA to increase pension amount earlier than 1/1/2018.

18

 

424A.02, Subd. 3a

 

VFRAs

 

Revises the term "nonprofit firefighting corporation" to be "independent nonprofit firefighting corporation" for consistency.

19

 

424A.02, Subd. 7

 

VFRAs

 

Clarifies the deferred service pensions provision to add "joint powers entity."

20

 

424A.04, Subd. 1

 

VFRAs

 

Clarifies defined terms in the board of trustees membership provision.

21

 

424A.07

 

VFRAs

 

Revises the term "a nonprofit firefighting corporation" to be "an independent nonprofit firefighting corporation" for consistency.

22

 

424A.091, Subd. 3

 

VFRAs

 

Revises the term "nonprofit firefighting corporation" to be "independent nonprofit firefighting corporation" for consistency.

23

 

424A.094, Subd. 3

 

VFRAs

 

Revises the term "nonprofit firefighting corporation" to be "independent nonprofit firefighting corporation" for consistency.

24

 

424A.10, Subd. 1

 

VFRAs

 

Authorizes emergency medical personnel to receive supplemental benefits if they are eligible to join the local relief association.

25

 

424B.20, Subd. 4

 

VFRAs

 

Provides default procedures for allocating special fund assets after a joint powers fire department dissolves.

26

 

Special law provision

 

Eden Prairie VFRA

 

Lowers the vesting period requirement for the Eden Prairie relief association for retired firefighters returning to active service.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

27

 

Special law provision

 

City of Austin; Austin VFRA

 

Retroactively authorizes the City of Austin to allocate fire state aid between its VFRA and PERA-P&F despite current law, and forgives the $214,605 debt the City owes the VFRA under current law for that allocation since 2013 (when the law was changed).

28

 

Special law provision

 

VFRAs; PERA

 

Establishes a Fire State Aid Work Group, convened by PERA, to study the impact of allocating of a portion of fire state aid to pay PERA-P&F employer contributions.

29

 

Repealer

 

VFRAs

 

Repeals Minn. Stat. § 424A.02, Subd. 13, because the language was moved to the newly created § 424A.015, Subd. 7.


Article 16: MSRS-Administered Retirement Plan Modifications

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

352.113, Subd. 2

 

MSRS-General

 

Adds a cross reference to the deadline for submitting an application for total and permanent disability benefits.

2

 

352.91, Subd. 3f

 

MSRS-Correctional

 

Allows the Dept. of Human Services (DHS) “physical therapist” position at the St. Peter Hospital to be eligible for correctional plan coverage.

3

 

352.91, Subd. 3g

 

MSRS-Correctional

 

Allows the Dept. of Corrections (DOC) “food supervisor” and “medical assistant, certified” positions to be eligible for correctional plan coverage.

4

 

352.91, New Subd. 4c

 

MSRS-Correctional

 

Codifies the DHS internal procedure for recommending positions eligible for correctional plan coverage.

5

 

352D.06, Subd. 1, 1a

 

MSRS-Unclassified

 

Extends the period for an additional three years for members close to retirement during which the current conversion factors will be used in converting an account balance to an annuity under the MSRS Unclassified Plan, a defined contribution plan; divides the subdivision into two subdivisions.

6

 

352F.04, Subd. 1

 

MSRS Fairview privatized employees

 

Reduces the rate of augmentation credited to the pension benefits under MSRS-General for former employees of the University of Minnesota Hospital and Clinics who were transferred to Fairview Hospital and Healthcare Services in 1996. The augmentation rate is reduced from 5.5%/7.5% to 4.5% effective January 1, 2018, and by 0.75% each year thereafter, until 2024, when the benefit will no longer be augmented.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

7

 

352F.04, Subd. 2

 

MSRS Fairview privatized employees

 

Makes clarifying language changes and deletes the exception from enhanced augmentation for return to public employment, which is moved to new subdivision 3.

8

 

352F.04, New Subd. 3

 

MSRS Fairview privatized employees

 

Modifies the exception from enhanced augmentation for return to public employment to provide that the member will receive the largest of three benefits: the pension with enhanced augmentation offset by any new pension benefit earned in the subsequent public employment, a combined service annuity, or an annuity under the coverage by more than one fund provision.

9

 

Uncoded

 

MSRS Fairview privatized employees

 

Applies the modified exception for return to public employment to any member who retired on or after January 1, 2015, and is being paid an annuity that would be larger under the modified exception. The member is to receive a lump sum payment in the amount of the difference between the annuity under current law and the annuity under the modified exception.

10

 

Uncoded

 

MSRS-Correctional

 

Specifies the coverage transfer dates and retroactivity for the DOC positions.

Article 17: PERA-Administered Retirement Plan Modifications

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

353.01, Subd. 43

 

PERA-P&F

 

Amends the definition of “line of duty death” to meet the definition of “killed in the line of duty” in Sec. 299A.41, Subd. 3, which includes death from heart attack, stroke, or vascular rupture that occurs while performing dangerous duties or within 24 hours of performing such duties. Makes the definition consistent with the federal Hometown Heroes Act.

2

 

353G.01, Subd. 9

 

PERA-SVFRP

 

Amends the definition of "municipality" to include fire departments run by an independent nonprofit firefighting corporation and by a joint powers agreement.

3

 

353G.01, Subd. 9a

 

PERA-SVFRP

 

Adds a new definition for "relief association."

4

 

353G.02, Subd. 6

 

PERA-SVFRP

 

Eliminates the requirement that the next nine relief associations to join the monthly benefit division reimburse the Spring Lake Park-Blaine-Moundsview Fire Dept. for administrative expenses above $33,600.

5

 

353G.03, Subd. 3

 

PERA-SVFRP

 

Expands the number of volunteer firefighter members on the Advisory Board from eight to ten.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

6

 

353G.08, Subd. 3

 

PERA-SVFRP

 

Expands the list of allowable asset disbursements to include a transfer of assets for a withdrawal from PERA-SVFRP.

7

 

353G.11, Subd. 1

 

PERA-SVFRP

 

Amends the maximum lump-sum benefit that can be paid to always equal the allowable maximum benefit that can be paid out under 424A.02, Subd. 3., Para. (d).

8

 

New § 353G.17

 

PERA-SVFRP

 

Creates a new section that provides procedures and requirements for withdrawing from PERA-SVFRP and transferring assets to a local relief association governed by Chapter 424A.

9

 

Special law provision

 

Brook Park PERA-SVFRP

 

Authorizes the City of Brook Park to lower the annual service pension level for the Brook Park lump-sum account in PERA- SVFRP from $1200 to $600, retroactive to 1/1/2016.


Article 18: Generally Applicable Retirement Changes

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

356.24, Subd. 1

 

Supplemental Plans

 

Increases the maximum employer contribution from $5,000 to $7,000 per year per employee to the laborers national industrial pension  plan, under an exception to the prohibition on employer contributions to supplemental pension or deferred compensation plans.

2

 

New 356.631

 

All plans

 

Allows plans to accept additional sources of payments, including gifts, donations, bequests, and life insurance death benefits.

3

 

Repealer

 

MSRS, PERA

 

Repeals Minn. Stat. §§ 352.04, Subd. 11, and 353.34, Subd. 6, the plan-specific additional funding sources provisions, because they are duplicative.


Article 19: Small Group Retirement Changes

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1

 

Special law provision

 

MSRS-General

 

Permits a group of 22 MnDOT employees to purchase up to three months of 1989 service credit to gain Rule of 90 eligibility to correct an MSRS communication error.

2

 

Special law provision

 

PERA-General, MnSCU-IRAP

 

Allows an employee of St. Cloud State Univ. to purchase service credit in PERA for five years of erroneous MnSCU-IRAP coverage.

3

 

Special law provision

 

TRA,

MnSCU-IRAP

 

Allows an employee of St. Cloud State Univ. to elect retroactive and prospective TRA coverage rather than MnSCU-IRAP coverage to correct a MnSCU error.

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

4

 

Special law provision

 

TRA,

MnSCU-IRAP

 

Allows two employees of Mesabi Range Community & Technical College to elect retroactive and prospective TRA coverage rather than MnSCU-IRAP coverage to correct a MnSCU error.

5

 

Special law provision

 

TRA,

MnSCU-IRAP

 

Allows an employee of Winona State University to elect retroactive and prospective TRA coverage rather than MnSCU- IRAP coverage to correct a MnSCU error.

6

 

Special law provision

 

PERA-General PERA-DC

 

Allows a Duluth Township clerk to elect retroactive coverage in PERA-General.


Article 20: Technical Corrections

Sec.

 

Stat. Provision

 

Retirement Plan

 

Summary

1-3

 

353.01, Subd. 16

353.012

353.32, Subd. 4

 

PERA

 

Removes obsolete references to a provision that is repealed in Article 2, Section 4.

4

 

354A.011, Subd. 29

 

1st Class City Teacher Plans

 

Removes obsolete references to the Duluth Teachers Retirement Fund Association and makes other conforming changes.

5-9

 

354A.095

354A.12, Subd. 3c

354A.31, Subd. 3

354A.35, Subd. 2

356.47, Subd. 1

 

1st Class City Teacher Plans

 

Removes obsolete references to the Duluth Teachers Retirement Fund Association.

10

 

Repealer

 

1st Class City Teacher Plans

 

Repeals an obsolete provision for the Duluth Teachers Retirement Fund Association.


Article 21: Appropriations

Sec.

Stat. Provision

Retirement Plan

Summary

1

Appropriation

MSRS plans

Appropriates from the General Fund $5,699,000 in FY 2018 and

$10,575,000 in FY 2019 to pay increased MSRS employer contributions.

2

Appropriation

MSRS plans

Appropriates from any Nongeneral Fund the amounts necessary to pay increased MSRS employer contributions.

3

Appropriation

SPTRFA

Appropriates from the General Fund $1,950,000in FY 2018 and

$3,250,000 in FY 2019 for payment to SPTRFA for increased pension contributions.


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