1.1                          A bill for an act 
  1.2             relating to retirement; modifying benefits for former 
  1.3             participants in the Minnesota state retirement system; 
  1.4             authorizing additional service credits for certain 
  1.5             University of Minnesota hospital and clinics 
  1.6             employees; authorizing additional augmentation for 
  1.7             employees of the University of Minnesota hospital and 
  1.8             clinics who terminate participation in the Minnesota 
  1.9             state retirement system; proposing coding for new law 
  1.10            in Minnesota Statutes, chapter 352E.  
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [352E.01] [PURPOSE.] 
  1.13     The purpose of this chapter is to assure, to the extent 
  1.14  possible, that persons employed at the University of Minnesota 
  1.15  hospital and clinics will be entitled to receive future 
  1.16  retirement benefits under the general state employees retirement 
  1.17  plan of the Minnesota state retirement system commensurate with 
  1.18  the prior contributions made by them or on their behalf upon the 
  1.19  integration of the University of Minnesota hospital and clinics 
  1.20  and Fairview hospital and healthcare services. 
  1.21     Sec. 2.  [352E.02] [DEFINITIONS.] 
  1.22     Subdivision 1.  [DEFINITIONS.] As used in this chapter, 
  1.23  unless the context or subject matter indicates otherwise, the 
  1.24  following terms have the meanings given in this section. 
  1.25     Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  1.26  meaning provided in Minnesota Statutes 1994, section 352.01, 
  1.27  subdivision 11. 
  1.28     Subd. 3.  [EFFECTIVE DATE.] "Effective date" is the date 
  2.1   terminated hospital employees transfer employment to Fairview 
  2.2   pursuant to a definitive integration agreement between the 
  2.3   University of Minnesota and Fairview. 
  2.4      Subd. 4.  [FAIRVIEW.] "Fairview" means Fairview hospital 
  2.5   and healthcare services, a Minnesota nonprofit corporation, and 
  2.6   its successors. 
  2.7      Subd. 5.  [SECTION.] "Section" means the designated section 
  2.8   of Minnesota Statutes. 
  2.9      Subd. 6.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
  2.10  hospital employee" means a person who: 
  2.11     (1) was employed on the day before the effective date by 
  2.12  the University of Minnesota at the University of Minnesota 
  2.13  hospital and clinics and was paid on a biweekly payroll; 
  2.14     (2) terminated employment with the University of Minnesota 
  2.15  on the day before the effective date; and 
  2.16     (3) was a participant in the general state employees 
  2.17  retirement plan of the Minnesota state retirement system at the 
  2.18  time of termination of employment with the University of 
  2.19  Minnesota. 
  2.20     Subd. 7.  [UNIVERSITY OF MINNESOTA HOSPITAL AND 
  2.21  CLINICS.] "University of Minnesota hospital and clinics" means 
  2.22  the hospitals and clinics operated by the regents of the 
  2.23  University of Minnesota. 
  2.24     Subd. 8.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  2.25  service" has the meaning provided in Minnesota Statutes 1994, 
  2.26  section 352.01, subdivision 16. 
  2.27     Sec. 3.  [352E.03] [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  2.28     Notwithstanding any provision of chapter 352 to the 
  2.29  contrary, a terminated hospital employee shall be eligible to 
  2.30  receive a retirement annuity under Minnesota Statutes 1994, 
  2.31  section 352.115 without regard to the requirement for three 
  2.32  years of allowable service. 
  2.33     Sec. 4.  [352E.04] [AUGMENTATION INTEREST RATE FOR 
  2.34  TERMINATED UNIVERSITY HOSPITAL EMPLOYEES.] 
  2.35     The deferred annuity of any terminated hospital employee 
  2.36  shall be subject to augmentation in accordance with Minnesota 
  3.1   Statutes 1994, section 352.72, subdivision 2, except that the 
  3.2   rates of interest for this purpose shall be 5.5 percent 
  3.3   compounded annually until January 1 of the year in which such 
  3.4   person attains age 55.  From that date to the effective date of 
  3.5   retirement, the rate is 7.5 percent.  These increased 
  3.6   augmentation rates shall no longer be applicable for any time 
  3.7   after the terminated hospital employee becomes covered again by 
  3.8   any retirement fund enumerated in section 356.30, subdivision 
  3.9   3.  These increased deferred annuity augmentation rates do not 
  3.10  apply to a terminated transferred hospital employee who begins 
  3.11  receipt of a retirement annuity while employed by Fairview. 
  3.12     Sec. 5.  [352E.05] [AUTHORIZATION FOR ADDITIONAL ALLOWABLE 
  3.13  SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  3.14     Notwithstanding any provision of chapter 352 to the 
  3.15  contrary, the years of allowable service for a terminated 
  3.16  hospital employee who transfers to employment at Fairview on the 
  3.17  effective date and does not apply for a refund of contributions 
  3.18  pursuant to section 352.22, subdivision 2, or any similar 
  3.19  provision in future Minnesota Statutes, shall include service 
  3.20  with Fairview following the effective date. 
  3.21     This section is solely for the purpose of determining 
  3.22  eligibility for early retirement benefits provided in Minnesota 
  3.23  Statutes 1994, section 352.116, subdivision 1, paragraphs (a) 
  3.24  and (b).  No such early retirement benefits shall be paid during 
  3.25  any period the terminated hospital employee is employed by 
  3.26  Fairview.  The reemployed annuitant earnings limitation of 
  3.27  Minnesota Statutes 1994, section 352.115, subdivision 10, also 
  3.28  applies to any service as an employee of Fairview.  Fairview 
  3.29  shall provide such reports as the executive director of the 
  3.30  Minnesota state retirement system reasonably requests to permit 
  3.31  calculation of this additional service credit. 
  3.32     Sec. 6.  [352E.06] [EFFECT ON REFUND.] 
  3.33     Notwithstanding any provision of chapter 352 to the 
  3.34  contrary, terminated hospital employees shall be permitted to 
  3.35  receive a refund of employee accumulated contributions plus 
  3.36  interest at the rate of six percent per year compounded annually 
  4.1   pursuant to Minnesota Statutes 1994, section 352.22, subdivision 
  4.2   2, at any time after the transfer of employment to Fairview.  If 
  4.3   a terminated hospital employee has received a refund from a 
  4.4   pension plan enumerated in section 356.30, subdivision 3, the 
  4.5   person may not repay that refund unless the person again becomes 
  4.6   a member of one of those enumerated plans and complies with 
  4.7   section 356.30, subdivision 2.  
  4.8      Sec. 7.  [352E.07] [COUNSELING SERVICES.] 
  4.9      The University of Minnesota hospital and clinics and the 
  4.10  Minnesota state retirement system will provide terminated 
  4.11  hospital employees with counseling on their benefits available 
  4.12  under the general state employees retirement plan of the 
  4.13  Minnesota state retirement system. 
  4.14     Sec. 8.  [EFFECTIVE DATE.] 
  4.15     Sections 1 to 7 are effective as of the date employees of 
  4.16  the University of Minnesota transfer employment to Fairview 
  4.17  pursuant to a definitive integration agreement between the 
  4.18  University of Minnesota and Fairview.