1.1                          A bill for an act 
  1.2             relating to retirement; including certain positions in 
  1.3             the correctional plan; providing prior service credit 
  1.4             payment amounts; transferring funds; amending 
  1.5             Minnesota Statutes 2002, section 352.91, subdivision 
  1.6             3g, by adding subdivisions. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 352.91, 
  1.9   subdivision 3g, is amended to read: 
  1.10     Subd. 3g.  [ADDITIONAL CORRECTIONS DEPARTMENT PERSONNEL.] 
  1.11  (a) "Covered correctional service" means service by a state 
  1.12  employee in one of the employment positions at the designated 
  1.13  Minnesota correctional facility specified in paragraph (b), 
  1.14  provided that at least 75 percent of the employee's working time 
  1.15  is spent in direct contact with inmates and the fact of this 
  1.16  direct contact is certified to the executive director by the 
  1.17  commissioner of corrections. 
  1.18     (b) The employment positions and correctional facilities 
  1.19  are: 
  1.20     (1) corrections discipline unit supervisor, at the 
  1.21  Minnesota Correctional Facility-Faribault, the Minnesota 
  1.22  Correctional Facility-Lino Lakes, the Minnesota Correctional 
  1.23  Facility-Oak Park Heights, and the Minnesota Correctional 
  1.24  Facility-St. Cloud; 
  1.25     (2) dental assistant registered, at the Minnesota 
  1.26  Correctional Facility-Faribault, the Minnesota Correctional 
  2.1   Facility-Lino Lakes, the Minnesota Correctional Facility-Moose 
  2.2   Lake, the Minnesota Correctional Facility-Oak Park Heights, and 
  2.3   the Minnesota Correctional Facility-Red Wing; 
  2.4      (3) dental hygienist, at the Minnesota Correctional 
  2.5   Facility-Shakopee; 
  2.6      (4) psychologist 2, at the Minnesota Correctional 
  2.7   Facility-Faribault, the Minnesota Correctional Facility-Lino 
  2.8   Lakes, the Minnesota Correctional Facility-Moose Lake, the 
  2.9   Minnesota Correctional Facility-Oak Park Heights, the Minnesota 
  2.10  Correctional Facility-Red Wing, the Minnesota Correctional 
  2.11  Facility-St. Cloud, the Minnesota Correctional 
  2.12  Facility-Shakopee, ~~and~~ the Minnesota Correctional 
  2.13  Facility-Stillwater, and the Minnesota Correctional 
  2.14  Facility-Rush City; and 
  2.15     (5) sentencing to service crew leader involved with the 
  2.16  inmate community work crew program, at the Minnesota 
  2.17  Correctional Facility-Faribault and the Minnesota Correctional 
  2.18  Facility-Lino Lakes. 
  2.19     Sec. 2.  Minnesota Statutes 2002, section 352.91, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 3h.  [PAYMENT FOR PRIOR SERVICE.] (a) An employee 
  2.22  electing to obtain prior service credit under subdivision 1 must 
  2.23  pay an additional employee contribution for that prior service 
  2.24  except for any period of time that the employee was a member of 
  2.25  the basic program of the Teachers Retirement Association.  The 
  2.26  additional member contribution is the contribution differential 
  2.27  percentage applied to the actual salary paid to the employee 
  2.28  during the period of the prior eligible state service, plus 
  2.29  interest at the rate of six percent per annum, compounded 
  2.30  daily.  The contribution differential percentage is the 
  2.31  difference between 4.9 percent of salary and the applicable 
  2.32  employee contribution rate of the general state employees 
  2.33  retirement plan.  
  2.34     (b) The additional member contribution must be paid only in 
  2.35  a lump sum.  Payment must accompany the election to obtain prior 
  2.36  service credit.  No election or payment may be made by the 
  3.1   person or accepted by the executive director after June 30, 2004.
  3.2      Sec. 3.  Minnesota Statutes 2002, section 352.91, is 
  3.3   amended by adding a subdivision to read: 
  3.4      Subd. 3i.  [TRANSFER OF FUNDS.] Funds must be transferred 
  3.5   from the general state employees retirement plan to the 
  3.6   correctional employees retirement plan in an amount equal to the 
  3.7   present value of benefits earned under the general employees 
  3.8   retirement plan for each employee transferring to the 
  3.9   correctional employees retirement plan, as determined by the 
  3.10  actuary retained by the Legislative Commission on Pensions and 
  3.11  Retirement in accordance with section 356.215, multiplied by the 
  3.12  accrued liability funding ratio of active members as derived 
  3.13  from the most recent actuarial valuation prepared by the 
  3.14  commission-retained actuary.  The transfer of assets must be 
  3.15  made within 45 days after the employee elects to transfer 
  3.16  coverage to the correctional employees retirement plan. 
  3.17     Sec. 4.  Minnesota Statutes 2002, section 352.91, is 
  3.18  amended by adding a subdivision to read: 
  3.19     Subd. 3j.  [EFFECT OF FUND TRANSFER.] Upon the transfer of 
  3.20  funds in subdivision 3i, service credit in the general state 
  3.21  employees plan of the Minnesota State Retirement System is 
  3.22  forfeited and may not be reinstated.  The service credit and 
  3.23  transferred funds must be credited to the correctional employees 
  3.24  retirement plan. 
  3.25     Sec. 5.  [EFFECTIVE DATE.] 
  3.26     Section 1 is effective July 1, 2004.