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127A.50, Minnesota Statutes 2006
Copyright © 2006 by the Office of Revisor of Statutes, State of Minnesota.
127A.50 AID ADJUSTMENTS DUE TO CHANGES IN EMPLOYER RETIREMENT
CONTRIBUTION RATES.
Subdivision 1. Aid adjustment. Beginning in fiscal year 1998 and each year thereafter,
the commissioner of education shall adjust state aid payments to school operating funds for
Independent School District No. 625 and Independent School District No. 709 by the net amount
of clauses (1) and (2), for Special School District No. 1 by the net amount of clauses (1), (2), and
(4), and for all other districts, including charter schools, but excluding any education organizations
that are prohibited from receiving direct state aids under section 123A.26 or 125A.75, subdivision
7 , by the net amount of clauses (1), (2), (3), and (4):
(1) a decrease equal to each district's share of the fiscal year 1997 adjustment effected under
Minnesota Statutes 1996, section 124.2139;
(2) an increase equal to one percent of the salaries paid to members of the general plan of the
Public Employees Retirement Association in fiscal year 1997, multiplied by 0.35 for fiscal year
1998 and 0.70 each year thereafter;
(3) a decrease equal to 2.34 percent of the salaries paid to members of the Teachers
Retirement Association in fiscal year 1997; and
(4) an increase equal to 0.5 percent of the salaries paid to members of the Teachers
Retirement Association in fiscal year 2007.
Subd. 2. Appropriation. The amounts necessary to pay any positive net adjustments
under this section to any school district are appropriated annually from the general fund to the
commissioner of education.
Subd. 3. Limits on adjustments and potential reductions. Increases to any school districts
under subdivision 1, clause (2), and decreases under subdivision 1, clauses (1) and (3), are limited
to the fiscal year 1999 amounts. The commissioner of education may permanently reduce the
adjustments to school districts under subdivision 1, clauses (1) and (2), in the same manner as
prescribed for nonschool jurisdictions under section 273.1385, subdivision 2. The commissioner
may, from time to time, require that the most recent fiscal year payroll information be certified
by the executive director of the Teachers Retirement Association. For any school district where
the newly certified Teachers Retirement Association payroll is significantly lower than the fiscal | Note that this applies only to the FY 1997
1997 amount as determined by the commissioner, the commissioner shall recalculate the lower | base salary total, and not to the FY 2007
reduction under subdivision 1, clause (3), and shall permanently reduce the adjustment amount | salary total.
in subsequent years.
Subd. 4. Effect of reorganizations. The commissioner of education shall reapportion the aid
adjustments to school districts under this section to account for significant changes in boundaries
or consolidations, as determined by the commissioner. If a school district is dissolved, or a school
district function thereof is assumed by either the state or a nonpublic organization, adjustments for
all or the appropriate fraction of the total payroll under this section must terminate.
Subd. 5. Adjustment termination. All adjustments under this section terminate on June
30, 2020.
History: 1997 c 233 art 1 s 14; 1998 c 397 art 4 s 51; art 11 s 3; 1Sp2001 c 6 art 1 s 40;
2003 c 130 s 12; 2006 c 277 art 3 s 1
NOTE: The amendment to subdivision 1 by Laws 2006, chapter 277, article 3, section 1,
is effective for revenue for fiscal year 2008. Laws 2006, chapter 277, article 3, section 1, the
effective date.
273.1385, Minnesota Statutes 2006
Copyright © 2006 by the Office of Revisor of Statutes, State of Minnesota.
[NAME] AID FOR PUBLIC EMPLOYEES RETIREMENT ASSOCIATION EMPLOYER
CONTRIBUTION RATE INCREASE.
Subdivision 1. Aid to offset rate increase. Beginning with the December 26, 1997, payment,
and according to the schedule for payment of local aid under section 477A.015 thereafter, the
commissioner of revenue shall pay to each city, county, town, and other nonschool jurisdiction an
amount equal to 0.35 percent of the fiscal year 1997 payroll for employees who were members
of the general plan of the Public Employees Retirement Association. Except for the December
1997 distribution under this section, the amount of aid must be certified before September 1 of the
year preceding the distribution year to the affected local government. The executive director of
the Public Employees Retirement Association shall certify the general plan fiscal year covered
payroll and other information requested by the commissioner of revenue, on or before August 1,
1997, and in subsequent years where necessary, in order to facilitate administration of this section.
The amount necessary to make these aid payments is appropriated annually from the general fund
to the commissioner of revenue. Expenditures under this section are estimated to be $7,942,500
in fiscal year 1998, and $15,885,000 in each subsequent fiscal year, less any future reductions
under subdivision 2.
Subd. 2. Limit on aid and potential future permanent aid reductions. (a) The aid amount
received by any jurisdiction in fiscal year 2000 or any year thereafter may not exceed the amount
it received in fiscal year 1999. The commissioner may, from time to time, request the most recent
fiscal year payroll information by jurisdiction to be certified by the executive director of the
Public Employees Retirement Association. For any jurisdiction where newly certified public
employees retirement association general plan payroll is significantly lower than the fiscal 1997
amount, as determined by the commissioner, the commissioner shall recalculate the aid amount
based on the most recent fiscal year payroll information, certify the recalculated aid amount for
the next distribution year, and permanently reduce the aid amount to that jurisdiction.
(b) Aid to a jurisdiction must not be reduced under this section due to a transfer of an
employee from the general plan of the Public Employees Retirement Association to the
local government correctional service plan administered by the Public Employees Retirement
Association. The executive director of the Public Employees Retirement Association must
provide the commissioner of revenue with any information requested by the commissioner to
administer this paragraph.
Subd. 3. Effect of reorganizations. The commissioner of revenue may adjust the aid
amounts for separate jurisdictions to account for significant changes in boundaries or in the
form of government, as determined by the commissioner. If a local government function and
the associated Public Employees Retirement Association general plan payroll is assumed by
either the state, or a nonpublic organization, the aid amounts attributable to the function under
this section must terminate.
Subd. 4. Aid termination. The aid provided under this section terminates on June 30, 2020.
History: 1997 c 233 art 1 s 15; 1999 c 222 art 2 s 3