Legislators permission to elect coverage by the general state employees retirement plan

A bill for an act

relating to retirement; Minnesota State Retirement System; permitting legislators

to elect coverage by the general state employees retirement plan; amending

Minnesota Statutes 2024, sections 352.01, subdivision 2a; 352D.02, subdivisions

1, 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 352.01, subdivision 2a, is amended to read:

Subd. 2a.

Included employees.

(a) "State employee" includes:

(1) employees of the Minnesota Historical Society;

(2) employees of the State Horticultural Society;

(3) employees of the Minnesota Crop Improvement Association;

(4) employees of the adjutant general whose salaries are paid from federal funds and

who are not covered by any federal civilian employees retirement system;

(5) employees of the Minnesota State Colleges and Universities who are employed under

the university or college activities program;

(6) currently contributing employees covered by the system who are temporarily

employed by the legislature during a legislative session or any currently contributing

employee employed for any special service as defined in subdivision 2b, clause (6);

(7) employees of the legislature who are appointed without a limit on the duration of

their employment;

(8) trainees who are employed on a full-time established training program performing

the duties of the classified position for which they will be eligible to receive immediate

appointment at the completion of the training period;

(9) employees of the Minnesota Safety Council;

(10) any employees who are on authorized leave of absence from the Transit Operating

Division of the former Metropolitan Transit Commission and who are employed by the

labor organization which is the exclusive bargaining agent representing employees of the

Transit Operating Division;

(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space

Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control

Commission unless excluded under subdivision 2b or are covered by another public pension

fund or plan under section
473.415, subdivision 3
;

(12) judges of the Tax Court;

(13) personnel who were employed on June 30, 1992, by the University of Minnesota

in the management, operation, or maintenance of its heating plant facilities, whose

employment transfers to an employer assuming operation of the heating plant facilities, so

long as the person is employed at the University of Minnesota heating plant by that employer

or by its successor organization;

(14) personnel who are employed as seasonal employees in the classified or unclassified

service;

(15) persons who are employed by the Department of Commerce as a peace officer in

the Commerce Fraud Bureau under section
45.0135
who have attained the mandatory

retirement age specified in section
43A.34, subdivision 4
;

(16) employees of the University of Minnesota unless excluded under subdivision 2b,

clause (3);

(17) employees of the Middle Management Association whose employment began after

July 1, 2007, and to whom section
352.029
does not apply;

(18) employees of the Minnesota Government Engineers Council to whom section

352.029
does not apply;

(19) employees of the Minnesota Sports Facilities Authority;

(20) employees of the Minnesota Association of Professional Employees;

(21) employees of the Minnesota State Retirement System;

(22) employees of the State Agricultural Society;

(23) employees of the Gillette Children's Hospital Board who were employed in the

state unclassified service at the former Gillette Children's Hospital on March 28, 1974;

(24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota,

employees of Conservation Corps Minnesota so employed on June 30, 2003;
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and
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(25) employees of the Perpich Center for Arts Education who are covered by the general

state employees retirement plan of the Minnesota State Retirement System as of July 1,

2016
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.
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; and
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(26) members of the legislature who elect under section 352D.02, subdivision 3, to be

covered by the general state employees retirement plan.

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(b) Employees specified in paragraph (a), clause (13), are included employees under

paragraph (a) if employer and employee contributions are made in a timely manner in the

amounts required by section
352.04
. Employee contributions must be deducted from salary.

Employer contributions are the sole obligation of the employer assuming operation of the

University of Minnesota heating plant facilities or any successor organizations to that

employer.

Sec. 2.

Minnesota Statutes 2024, section 352D.02, subdivision 1, is amended to read:

Subdivision 1.

Coverage.

(a) Employees enumerated in paragraph (c), clauses (2), (3),

(4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or

Metropolitan Council and are eligible for coverage under the general state employees

retirement plan under chapter
352
, are participants in the unclassified program under this

chapter.

(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified

program under this chapter unless the person was eligible to elect different coverage under

section
3A.07
and elected retirement coverage by the applicable alternative retirement plan
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or elected general state employees retirement plan coverage under subdivision 3
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. Persons

referenced in paragraph (c), clause (15), are participants in the unclassified program under

this chapter for judicial employment in excess of the service credit limit in section
490.121,

subdivision 22
.

(c) Enumerated employees and referenced persons are:

(1) the governor, the lieutenant governor, the secretary of state, the state auditor, and

the attorney general;

(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary of State,

State Auditor, Attorney General;

(3) an employee of the State Board of Investment;

(4) the head of a department, division, or agency created by statute in the unclassified

service, an acting department head subsequently appointed to the position, or an employee

enumerated in section
15A.0815
or
15A.083, subdivision 4
;

(5) a member of the legislature;

(6) an unclassified employee of the legislature or a commission or agency of the

legislature who is appointed without a limit on the duration of the employment or a temporary

legislative employee having shares in the supplemental retirement fund as a result of former

employment covered by this chapter, whether or not eligible for coverage under the

Minnesota State Retirement System;

(7) a person who is employed in a position established under section
43A.08, subdivision

1
, clause (3), or in a position authorized under a statute creating or establishing a department

or agency of the state, which is at the deputy or assistant head of department or agency or

director level;

(8) the regional administrator, or executive director of the Metropolitan Council, general

counsel, division directors, operations managers, and other positions as designated by the

council, all of which may not exceed 27 positions at the council and the chair;

(9) the commissioner, deputy commissioner, and not to exceed nine positions of the

Minnesota Office of Higher Education in the unclassified service, as designated by the

Minnesota Office of Higher Education before January 1, 1992, or subsequently redesignated

with the approval of the board of directors of the Minnesota State Retirement System, unless

the person has elected coverage by the individual retirement account plan under chapter

354B
;

(10) the clerk of the appellate courts appointed under article VI, section 2, of the

Constitution of the state of Minnesota, the state court administrator and judicial district

administrators;

(11) the chief executive officers of correctional facilities operated by the Department of

Corrections and of hospitals and nursing homes operated by Direct Care and Treatment;

(12) an employee whose principal employment is at the state ceremonial house;

(13) an employee of the Agricultural Utilization Research Institute;

(14) an employee of the State Lottery who is covered by the managerial plan established

under section
43A.18, subdivision 3
;

(15) a judge who has exceeded the service credit limit in section
490.121, subdivision

22
;

(16) an employee of Enterprise Minnesota, Inc.;

(17) a person employed by the Minnesota State Colleges and Universities as faculty or

in an eligible unclassified administrative position as defined in section
354B.20, subdivision

6
, who was employed by the former state university or the former community college system

before May 1, 1995, and elected unclassified program coverage prior to May 1, 1995; and

(18) a person employed by the Minnesota State Colleges and Universities who was

employed in state service before July 1, 1995, who subsequently is employed in an eligible

unclassified administrative position as defined in section
354B.20, subdivision 6
, and who

elects coverage by the unclassified program.

Sec. 3.

Minnesota Statutes 2024, section 352D.02, subdivision 3, is amended to read:

Subd. 3.

Transfer to general employees retirement plan.

(a) A person in the

unclassified program and referred to in subdivision 1, paragraph (c), clauses (2) to
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(4), (6)

to
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(14), and (16) to (18), may elect to terminate participation in the unclassified program

and be covered by the general state employees retirement plan if the person files an election

to transfer to the general state employees retirement plan with the executive director of the

Minnesota State Retirement System as provided in paragraph (b) and
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the person's current

employment or appointment
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:

(1)
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the person's current employment or appointment
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began before July 1, 2010, and the

person has at least ten years of covered employment;
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or
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(2)
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the person's current employment or appointment
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began after June 30, 2010, and the

person has no more than seven years of allowable service in the unclassified program
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.
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; or
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(3) the person is a member of the legislature.

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(b) An election to transfer must be in writing, on a form provided by the executive

director, and delivered to the executive director:

(1) for persons described in paragraph (a), clause (1), no later than one month following

the termination of covered employment;
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or
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(2) for persons described in paragraph (a), clause (2), by the earlier of (i) the end of the

month following the termination of employment in a position covered by the unclassified

program, and (ii) the last day of the seventh year of allowable service in the unclassified

program
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.
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; or
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(3) for persons described in paragraph (a), clause (3), no later than one month following

the date the person ceased to be a member of the legislature for any reason, including but

not limited to the expiration of the term for which a member of the legislature was elected

or the death of the member.

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For purposes of this chapter,
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an employee
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a person
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who does not file an election to

transfer with the executive director is deemed to have exercised the option to participate in

the unclassified program.

(c) If the transfer election is made, the executive director shall redeem the
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employee's
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person's
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total shares and credit to the
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employee's
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person's
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account in the general employees

retirement plan the amount of contributions that would have been credited had the
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employee
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person
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been covered by the general employees retirement plan during the
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employee's
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person's
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entire covered employment. The balance of money redeemed and not credited to the
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employee's
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person's
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account must be transferred to the general employees retirement plan,

except that the executive director must determine:

(1) the employee contributions paid to the unclassified program; and

(2) the employee contributions that would have been paid to the general employees

retirement plan for the comparable period, if the individual had been covered by that plan.

If clause (1) is greater than clause (2), the difference must be refunded to the
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employee
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person
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as provided in section
352.22
. If clause (2) is greater than clause (1), the difference

must be paid by the
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employee
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person
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within six months of electing general employees

retirement plan coverage or before the effective date of the annuity, whichever is sooner.

(d) An election under this subdivision to transfer coverage to the general employees

retirement plan is irrevocable during any period of covered employment.

(e) A person referenced in subdivision 1, paragraph (c), clause (1)
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, (5),
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or (15), who is

credited with employee shares in the unclassified program is not permitted to terminate

participation in the unclassified program and be covered by the general employees retirement

plan.

Sec. 4.
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EFFECTIVE DATE.
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Sections 1 to 3 are effective the day following final enactment.

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