422A.12 CREDITS; INDIVIDUAL RECORD.
Subdivision 1. Salary deductions.
The city comptroller or other person having supervision
of the payment of salaries to employees shall cause the deductions to be withheld from all
specific appropriations for the particular salaries or compensation from which the deductions are
made and from all allotments out of lump sum appropriations for payments of such salaries or
compensation for each fiscal year; and a record of these sums shall be entered to the credit of the
various employees from whose salaries deductions have been made.
Subd. 2. Credits.
At the close of each fiscal year there shall be credited within the deposit
accumulation fund to accounts representing contributions by the municipality and to accounts
representing the accumulated amount of each contributing employee in proportion to the
average quarterly balance in each such account during said fiscal year the amount of income
from investments earned on the accumulated funds in possession of the board, after having
deducted from the total of such income (1) the amounts otherwise required as interest for various
allowances or purposes specified in this chapter and (2) an amount to be set aside to liquidate
actual or to amortize prospective losses on investments in the accumulation account. The net
balance of the investment earnings to be so distributed shall be distributed at the greatest multiple
of one-tenth of one percent up to and including a maximum of the interest assumption rate
provided for in section
422A.06, subdivision 5
of all such accounts. Any undistributed excess
earnings or losses determined to be earnings or losses attributable to the employers' contributions
shall be distributed or charged to the employers' reserve accounts in proportion to the employers'
average quarterly balances. Any undistributed excess earnings or losses determined to be earnings
or losses attributable to the employees' contributions shall be distributed or charged to the
employers' reserve accounts in proportion to the number of covered employees employed by each
employer. If income from investments is insufficient to enable the crediting of the maximum
interest amount to the employee and employer accounts, the maximum interest will first be
credited to the employee accounts. If income is insufficient to cover the amounts credited to the
employee accounts, the insufficiency attributable to each employer group of employees' accounts
will be made up by a charge against the reserve account of that employer. The amount that shall
be set aside annually to liquidate losses on investments shall be such amount as the board may
deem necessary for such purpose but not in excess of one mill on the dollar of the gross amount
received as income on the cash and investments in the fund.
History: 1973 c 133 s 12; 1974 c 76 s 9; 1992 c 480 s 2; 1Sp2005 c 8 art 10 s 80