HF 3508

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

A bill for an act
relating to retirement; Public Employees Retirement Association general plan;
authorizing a city of St. Paul employee to purchase service credit for a period
of uncovered service.

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

Section 1. new text begin PERA-GENERAL; CITY OF ST. PAUL EMPLOYEE SERVICE
CREDIT PURCHASE.
new text end

new text begin (a) An eligible person described in paragraph (b) is entitled to purchase allowable
service credit from the general employees retirement plan of the Public Employees
Retirement Association for the period of employment by the city of St. Paul between
May 1, 1982, and March 31, 1984, that qualified as employment by a public employee
under Minnesota Statutes 1982, section 353.01, subdivision 2, that was not previously
credited by the retirement plan.
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on March 25, 1960;
new text end

new text begin (2) was first employed by the city of St. Paul on April 23, 1979;
new text end

new text begin (3) qualified for Public Employees Retirement Association general plan coverage in
May 1982 but was not reported by the city of St. Paul to the Public Employees Retirement
Association for coverage until April 1984; and
new text end

new text begin (4) became a member of the general employees retirement plan of the Public
Employees Retirement Association in April 1984.
new text end

new text begin (c) The eligible person described in paragraph (b) is authorized to apply with the
executive director of the Public Employees Retirement Association to make the service
credit purchase under this section. The application must be in writing and must include
all necessary documentation of the applicability of this section and any other relevant
information that the executive director may require.
new text end

new text begin (d) Allowable service credit under Minnesota Statutes, section 353.01, subdivision
16, must be granted by the general employees retirement plan of the Public Employees
Retirement Association to the account of the eligible person upon the receipt of the prior
service credit purchase payment amount required under Minnesota Statutes, section
356.551.
new text end

new text begin (e) Of the prior service credit purchase payment amount under Minnesota Statutes,
section 356.551, the eligible person must pay an amount equal to the employee
contribution rate or rates in effect during the uncredited employment period applied to the
actual salary rates in effect during the period, plus annual compound interest at the rate
of 8.5 percent from the date the member contribution payment should have been made
if made in a timely fashion until the date on which the contribution is actually made. If
the equivalent member contribution payment, plus interest, is made, the city of St. Paul
shall pay the balance of the total prior service credit purchase payment amount under
Minnesota Statutes, section 356.551, within 60 days of notification by the executive
director of the Public Employees Retirement Association that the member contribution
equivalent payment has been received by the association.
new text end

new text begin (f) Authority for an eligible person to make a prior service credit purchase under
this section expires on June 30, 2009, or upon termination of employment covered by the
Public Employees Retirement Association, whichever is earlier.
new text end

new text begin (g) If the city of St. Paul fails to pay its portion of the prior service credit purchase
payment amount under paragraph (e), the executive director of the Public Employees
Retirement Association must notify the commissioners of finance and revenue of that fact
and the commissioners shall order the deduction of the required payment amount from
the next payment of any state aid to the city of St. Paul and the commissioners shall
transmit the applicable amount to the general employees retirement fund of the Public
Employees Retirement Association.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end