HF 3223

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; amending certain coverage provisions; making certain
technical changes; amending Minnesota Statutes 2007 Supplement, section
352D.02, subdivisions 1, 3.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 352D.02, subdivision 1,
is amended to read:

Subdivision 1.

Coverage.

(a) Employees enumerated in paragraph (c), deleted text begin clauses (2),
(3), (4), (6) to (14), and (16) to (18), deleted text end if they are new text begin an elected official or new text end 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 unless the employee gives notice to the executive director of
the Minnesota State Retirement System within one year following the commencement
of employment in the unclassified service that the employee desires coverage under the
general state employees retirement plan. For the purposes of this chapter, an employee
who does not file notice with the executive director is deemed to have exercised the option
to participate in the unclassified program.

(b) deleted text begin 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. deleted text end 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 deleted text begin and referenced persons deleted text end 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) a full-time 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 executive director, associate executive director, 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 the Department of Human
Services;

(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 Minnesota Technology Incorporated;

(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. 2.

Minnesota Statutes 2007 Supplement, section 352D.02, subdivision 3, is
amended to read:

Subd. 3.

Transfer to general plan.

(a) An employee credited with deleted text begin employee deleted text end shares
in the unclassified program, after acquiring credit for ten years of allowable service and
not later than one month following the termination of covered employment, may elect
to terminate participation in the unclassified program and be covered by the general
plan by filing a written election with the executive director. The executive director
shall then redeem the employee's total shares and shall credit to the employee's account
in the general plan the amount of contributions that would have been so credited had
the employee been covered by the general plan during the employee's entire covered
employment new text begin or elective state service new text end . The balance of money so redeemed and not credited
to the employee's account shall be transferred to the general plan retirement fund, except
that (1) the employee contribution paid to the unclassified program must be compared
to (2) the employee contributions that would have been paid to the general 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 employee as provided in
section 352.22. If clause (2) is greater than clause (1), the difference must be paid by the
employee within six months of electing general plan coverage or before the effective
date of the annuity, whichever is sooner.

(b) An election under paragraph (a) to transfer coverage to the general plan is
irrevocable during any period of covered employment.