Laws of Minnesota 1983 

                         CHAPTER 73--H.F.No. 601
           An act relating to retirement; miscellaneous 
          amendments to the law governing the public employees 
          retirement association; amending Minnesota Statutes 
          1982, sections 353.27, subdivisions 4 and 12; 353.28, 
          subdivision 5; 353.29, subdivisions 6 and 8; 353.32, 
          subdivision 1; 353.33, subdivision 5; and 353.34, 
          subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 353.27, 
subdivision 4, is amended to read: 
    Subd. 4.  [EMPLOYERS REPORTING REQUIREMENTS; CONTRIBUTIONS; 
MEMBER STATUS.] The head of each department is hereby directed 
to cause employee contributions to be deducted at least once 
each month from the salary of each member and to issue or 
approve one voucher payable to the state treasurer for the 
aggregate amount so deducted from such salaries, and at the same 
time to issue or approve one voucher for the aggregate amount of 
the employer contributions and the additional employer 
contributions for the same period of employment as that covered 
by the employee contributions, and to cause the same to be 
received not later than 20 days thereafter in the office of the 
association.  The head of each department shall, for each pay 
period in which employee contributions are deducted, submit to 
the association a salary deduction report, in the form 
prescribed by the board of trustees executive director, showing 
(a) the legal names and the association membership numbers, 
listed in alphabetical order, of all members; (b) the legal 
names of all new public employees and the effective dates of 
appointment; (c) the amount of each salary deduction; (d) the 
amount of salary from which each deduction was made; (e) 
effective dates of all terminations of public service on account 
of members and if such terminations were caused by death or 
retirement, there shall be inserted after such date the 
applicable word, "death" or "retirement"; and (f) effective 
dates of all temporary layoffs and leaves of absence and if such 
leaves are sick leaves, there shall be inserted after such date 
the words, "sick leave"; and (g) the beginning and ending dates 
of the payroll period covered.  Additionally, reports of 
contributions shall be accompanied by a membership enrollment 
form for each new employee in the form prescribed by the board 
executive director, and it shall be the responsibility of 
department heads to obtain such enrollment forms from new 
employees to be submitted to the association within 30 days 
following the date of employment.  The employers shall furnish 
such additional reports on magnetic media or other form of 
report as may be requested by the association executive director.
     Sec. 2.  Minnesota Statutes 1982, section 353.27, 
subdivision 12, is amended to read: 
    Subd. 12.  [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] In the 
case of omission of required deductions from salary of an 
employee, past due for a period of 60 days or less, the head of 
the department shall deduct from the employee's next salary 
payment and forthwith remit to the executive director the amount 
of the employee contribution delinquency, with cumulative 
interest thereon at the rate of six percent per annum, 
compounded annually, from the date or dates each delinquent 
employee contribution was first payable, such interest to be 
paid by the employer.  To the extent that any such omitted 
required deductions are not paid by the employee, they shall 
constitute a liability of the governmental subdivision which 
failed to make said required deductions, with interest thereon 
as hereinbefore specified.  After July 1, 1973, any such omitted 
required deductions, past due for a period in excess of 60 days, 
shall become the sole obligation of the governmental subdivision 
from the time such deductions were first payable, together with 
interest thereon as hereinbefore specified.  Any amount so due, 
together with employer and additional employer contributions at 
the rates and in the amounts specified in subdivisions 3 and 3a, 
with interest thereon at the rate of six percent compounded 
annually from the date they were first payable, shall be paid 
from the proceeds of a tax levy made pursuant to section 353.28, 
or from other funds available to the employer.  Unless otherwise 
indicated, this subdivision shall have both retroactive and 
prospective application, and the governmental subdivision is 
liable retroactively and prospectively for all amounts due 
hereunder.  An No action for the recovery of delinquent employee 
and employer contributions together with or interest thereon 
shall not be subject to any statutory provision which would 
otherwise limit the time within which such an action may be 
commenced and no payment of delinquent contributions shall be 
made or accepted after the expiration of three calendar years 
next following the calendar year in which the contributions were 
omitted. 
    Sec. 3.  Minnesota Statutes 1982, section 353.28, 
subdivision 5, is amended to read: 
    Subd. 5.  Any amount due and payable pursuant to this 
section by a governmental subdivision on June 30, 1969, shall 
thereafter bear compound interest at the rate of six percent per 
year until paid.  Any amount which becomes due and payable 
pursuant to this section or section 353.27, subdivision 4 on or 
after July 1, 1969, shall bear compound interest at the rate of 
six percent per year from the date due until the date paid, with 
a minimum charge of $5. 
    Sec. 4.  Minnesota Statutes 1982, section 353.29, 
subdivision 6, is amended to read: 
    Subd. 6.  [RETIREMENT BEFORE ELIGIBILITY FOR SOCIAL 
SECURITY BENEFITS.] Any "coordinated member" who retires before 
he is eligible for social security retirement benefits may elect 
to receive a retirement annuity from the association in an 
amount greater than the annuity computed on the basis of age at 
retirement, provided in subdivisions 2 and 3.  This option shall 
be exercised by making application to the board of trustees.  
This greater amount shall be the actuarial equivalent of the "  
normal" retirement annuity computed on the basis of age at 
retirement.  This greater amount shall be paid until the 
annuitant reaches the age of 62, at which time the payment from 
the association shall be reduced.  The method of computing an 
annuity under this subdivision shall be determined by an 
approved actuary. 
    Sec. 5.  Minnesota Statutes 1982, section 353.29, 
subdivision 8, is amended to read: 
    Subd. 8.  [ANNUITIES; PAYMENT; EVIDENCE OF RECEIPT.] 
Payment of any annuity or benefit for a given month shall be 
mailed by the association to the annuitant, recipient of a 
disability benefit, or survivor, during the first week of that 
month.  Evidence of receipt of every warrant warrants issued by 
the association in payment of an annuity or benefit shall be 
submitted by the payee thereof to the association periodically 
at times specified by the board of trustees, together with a 
written declaration that the annuitant or recipient of a 
disability benefit has or has not returned to public service; 
that the surviving dependent spouse has or has not remarried; 
and shall be furnished on forms provided by the executive 
director thereof, before the association shall pay to the 
annuitant, disability recipient, or survivor for the next 
ensuing month, the annuity or benefit to which the person 
otherwise may be entitled. 
     Sec. 6.  Minnesota Statutes 1982, section 353.32, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BEFORE RETIREMENT.] If a member or former 
member who terminated public service after June 30, 1973, dies 
before retirement or before he has received any retirement 
annuity and no other payment of any kind is or may become 
payable to any person, a refund shall be paid to his designated 
beneficiary or, if there be none, to his surviving spouse, or, 
if none, to the legal representative of his estate.  Such refund 
shall be in an amount equal to his accumulated deductions plus 
interest thereon at the rate of 3-1/2 percent per annum 
compounded annually less the sum of any disability or survivor 
benefits, if any, that may have been paid by the fund; provided 
that a survivor who has a right to benefits pursuant to section 
353.31 may waive such benefits in writing, except such benefits 
for a dependent child under the age of 18 years may only be 
waived pursuant to an order of the district court. 
     Sec. 7.  Minnesota Statutes 1982, section 353.33, 
subdivision 5, is amended to read: 
    Subd. 5.  [BENEFITS PAID UNDER WORKERS' COMPENSATION LAW.] 
Disability benefits paid shall be reimbursed and future benefits 
shall be reduced by any amounts received or receivable by a 
member, including temporary total, permanent total, temporary 
partial or permanent partial benefits, in either periodic or 
lump sum payments from the employer under applicable workers' 
compensation laws, after deduction of amount of attorney fees, 
authorized under applicable workers' compensation laws, paid by 
a disabilitant. 
     Sec. 8.  Minnesota Statutes 1982, section 353.34, 
subdivision 2, is amended to read: 
    Subd. 2.  [REFUND WITHOUT INTEREST.] Except as provided in 
subdivision 1, any person who ceases to be a public employee 
after June 30, 1973 shall receive a refund in an amount equal to 
his accumulated deductions without interest for the first three 
years of membership and thereafter accumulated deductions with 
interest to the first day of the month in which the refund is 
processed at the rate of three and one-half percent per annum 
compounded annually after the third year of membership based on 
fiscal year balances. 
     Sec. 9.  [EFFECTIVE DATE.] 
     This act is effective June 30, 1983. 
    Approved April 29, 1983