1999 Minnesota Statutes

     353D.12 Contributions for prior elected service. 

    Subdivision 1.    Eligibility; contributions.  An 
 elected local government official who participates in the 
 defined contribution plan under this chapter may make 
 contributions to the plan for the service as an elected public 
 officer rendered before June 30, 1991, that was not covered by a 
 public or private employer contributory pension plan, including 
 a plan administered by the public employees retirement 
 association under chapter 353.  An elected local government 
 official may make contributions for prior elected service to the 
 defined contribution plan even if eligibility criteria for the 
 defined benefit plan under chapter 353 were not met at the time 
 service was rendered.  The association shall not accept 
 contributions for prior elected service from a former elected 
 official after the end of the tax year in which the elected 
 official ceases to hold office.  Employer contributions on 
 behalf of the former elected official must be made to the 
 association no later than 30 days after April 15 following the 
 end of the tax year under section 415 of the federal Internal 
 Revenue Code, as amended.  Employee contributions must be made 
 to the association no later than 30 days after the close of the 
 limitation year under section 415 of the federal Internal 
 Revenue Code, as amended. 

    Subd. 2.    Amount of prior service contributions.  (a) 
 The employee purchase amount is that amount that the 
 participating elected local government official specifies, but 
 combined with subdivision 6 may not exceed in total the amount 
 of the employee and employer contributions that would have been 
 payable under section 353.27, subdivisions 2, 3, and 3a, based 
 on the actual salary or compensation of the elected local 
 government official from public sources during the prior service 
 and based on the rates in effect during the prior service, plus 
 interest at an annual compound rate of six percent. 

    (b) In any year, the purchase amount to be paid in is 
 subject to the limitation for defined contribution plans under 
 section 415(c) of the federal Internal Revenue Code, as amended, 
 or comparable contribution limitation set forth in the federal 
 Internal Revenue Code, and applicable regulations and revenue 
 rulings, remaining after subtracting the funding amounts under 
 section 353D.03, paragraph (a), for that year. 

    Subd. 3.    Installment payments.  The purchase amount 
 may be made in annual installments but may not exceed, combined 
 with subdivision 6, in any installment the limitation set forth 
 in subdivision 2, paragraph (a), or in total the limitation set 
 forth in subdivision 2, paragraph (a). 

    Subd. 4.    Authorized rollovers.  To the extent allowed 
 by federal law, the employee purchase amount may be made with 
 funds distributed from:  (1) a plan qualified under section 
 401(a) of the federal Internal Revenue Code, as amended; (2) an 
 annuity qualified under section 403(a) of the federal Internal 
 Revenue Code, as amended; (3) an individual retirement account 
 used solely to receive a nontaxable rollover from that type of 
 plan or annuity; (4) the state deferred compensation plan 
 authorized under section 352.96 and qualified under section 457 
 of the federal Internal Revenue Code, as amended; or (5) another 
 tax qualified plan or annuity that authorizes rollovers.  The 
 participating elected local government official shall supply 
 sufficient written documentation that the transfer amounts are 
 eligible for tax-free rollover treatment.  An authorized 
 tax-free rollover, plus any other purchase amount payments under 
 this section, including subdivision 6, may not exceed the 
 limitation in subdivision 2, paragraph (a).  Notwithstanding any 
 provision of state law or rule to the contrary, to the extent 
 permitted under federal law, the employee purchase amount may be 
 transferred from the state deferred compensation plan before the 
 employee terminates public employment. 

    Subd. 5.    Prior service and compensation documentation. 
  The participating elected local government official shall 
 supply sufficient documentation of the person's prior uncredited 
 service and compensation for which the purchase payment is made. 

    Subd. 6.    Employing unit payment.  The employing unit 
 of the participating elected local government official shall pay 
 the amount of the employer contributions that could have been 
 payable under section 353.27, subdivisions 3 and 3a, based on 
 the actual salary or compensation of the elected local 
 government official from public sources during the prior 
 service, plus interest at an annual compound rate of six 
 percent.  This amount combined with any employee purchase amount 
 and any contributions under section 353D.03, paragraph (a), must 
 in any year comply with the limitation set forth in subdivision 
 2, paragraph (a). 

    HIST: 1990 c 570 art 8 s 13; 1991 c 341 s 41; 1992 c 432 art 2 
 s 44