HF 2188

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/15/2021 03:07pm

A bill for an act
relating to retirement; Minnesota State Retirement System; transferring a state
employee's service credit from the general employees retirement plan to the
correctional employees retirement plan.

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

Section 1. new text begin TRANSFER OF PAST MSRS GENERAL SERVICE CREDIT TO MSRS
CORRECTIONAL.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms as used in this section have the meanings
given in this subdivision:
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new text begin (1) "Correctional plan" means the correctional employees retirement plan of the
Minnesota State Retirement System.
new text end

new text begin (2) "Executive director" means the executive director of the Minnesota State Retirement
System.
new text end

new text begin (3) "General plan" means the general state employees retirement plan of the Minnesota
State Retirement System.
new text end

new text begin (4) "Service credit" means time credited as allowable service under Minnesota Statutes,
section 352.01, subdivision 11, to an eligible person described in subdivision 3.
new text end

new text begin (5) "Transfer period" means the period from March 2, 2011, to March 19, 2020.
new text end

new text begin Subd. 2. new text end

new text begin Transfer of past service credit authorized. new text end

new text begin An eligible person described in
subdivision 3 who makes payment to the correctional employees retirement fund required
under subdivision 4 on or before one year following the effective date of this section, is
entitled to have:
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new text begin (1) the employer payment made on the eligible person's behalf under subdivision 5; and
new text end

new text begin (2) applicable past service credit transferred from the general plan to the correctional
plan for the transfer period under subdivision 6.
new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

new text begin An eligible person is a person who meets all of the following
requirements:
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new text begin (1) The person has service credit in the general plan from August 15, 1990, to March
19, 2020.
new text end

new text begin (2) The person was employed by the Department of Human Services at the St. Peter
State Hospital as a customer services specialist principal from March 2, 2011, until at least
January 27, 2021.
new text end

new text begin (3) The commissioner of human services has certified to the executive director that the
person spent at least 75 percent of the person's working time in direct contact with patients,
during the period of the person's employment under clause (2).
new text end

new text begin (4) The person has service credit in the correctional plan beginning March 20, 2020.
new text end

new text begin Subd. 4. new text end

new text begin Payment by eligible person. new text end

new text begin (a) An eligible person may pay to the executive
director the difference between the employee contribution rate for the general plan and the
employee contribution rate for the correctional plan for the transfer period. The difference
between the two rates must be applied to the eligible person's salary at the time that each
contribution would have been deducted from pay if the eligible person had been covered
by the correctional plan for the transfer period. The payment must include interest at the
applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision
2, calculated from the date that each contribution would have been deducted to the date that
payment is made.
new text end

new text begin (b) The payment under paragraph (a) must be made in a lump sum no later than one year
following the effective date. Upon receipt of the payment, the executive director must notify
the commissioner of human services that payment was made and of the amount owed under
subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Payment by the Department of Human Services. new text end

new text begin If an eligible person makes
the payment under subdivision 4, the Department of Human Services, on behalf of the
eligible person, shall pay to the executive director the actuarial present value of the additional
benefit resulting from the transferred service credit less the payment made under subdivision
4. This amount must be paid by the Department of Human Services in a lump sum within
30 days after the date on which the executive director notifies the commissioner of human
services under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Transfer of assets and service credit. new text end

new text begin (a) If the payments under subdivisions
4 and 5 are made, the executive director must transfer assets from the general state employees
retirement fund to the correctional employees retirement fund in an amount equal to the
actuarial present value of the benefits earned by the eligible person under the general plan
during the transfer period. The transfer of assets must be made within 15 days after receipt
of the payments under subdivisions 4 and 5.
new text end

new text begin (b) Upon transfer of the assets under paragraph (a), the eligible person shall have service
credit in the correctional plan and no service credit in the general plan for the transfer period.
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