1.1 	A bill for an act
1.2 	relating to retirement; Public Employees Retirement Association privatizations; 
1.3 	decreasing augmentation rates applicable to new privatizations;amending 
1.4 	Minnesota Statutes 2010, section 353F.04, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 353F.04, subdivision 1, is amended to read:
1.7 		Subdivision 1.Enhanced augmentation rates. (a) The deferred annuity of 
1.8 	a terminated medical facility or other public employing unit employee is subject 
1.9 	to augmentation under section 353.71, subdivision 2, of the edition of Minnesota 
1.10 	Statutes published in the year in which the privatization occurred, except that the rate 
1.11 	of augmentation is as specified in paragraph (b) or (c), whichever is applicable this 
1.12 	subdivision.
1.13 	(b) This paragraph applies if the legislation adding the medical facility or other 
1.14 	employing unit to section 353F.02, subdivision 4 or 5, as applicable, was enacted before 
1.15 	July 26, 2005, and became effective before January 1, 2008, for the Hutchinson Area 
1.16 	Health Care or before January 1, 2007, for all other medical facilities and all other 
1.17 	employing units. For a terminated medical facility or other public employing unit 
1.18 	employee, the augmentation rate is 5.5 percent compounded annually until January 1 
1.19 	following the year in which the person attains age 55. From that date to the effective date 
1.20 	of retirement, the augmentation rate is 7.5 percent compounded annually.
1.21 	(c) If paragraph (b) is not applicable, and if the effective date of the privatization is 
1.22 	before January 1, 2011, the augmentation rate is four percent compounded annually until 
1.23 	January 1, following the year in which the person attains age 55. From that date to the 
1.24 	effective date of retirement, the augmentation rate is six percent compounded annually.
2.1 	(d) If the effective date of the privatization is after December 31, 2010, and before 
2.2 	January 1, 2012, and if the person became a public employee on or before June 30, 2006:
2.3 	(1) if the former member is less than age 55 on January 1, 2011, the augmentation 
2.4 	rate is at a 3.0 percent annual rate through December 31, 2011, prorated if the privatization 
2.5 	occurs less than one full year before January 1, 2012;
2.6 	(2) if the former member is age 55 or older on January 1, 2011, the augmentation 
2.7 	rate is at a 5.0 percent annual rate through December 31, 2011, prorated if the privatization 
2.8 	occurs less than one full year before January 1, 2012; and
2.9 	(3) regardless of age, after December 31, 2011, the augmentation rate is 1.0 percent 
2.10 	compounded annually until the effective date of retirement.
2.11 	(e) If the effective date of the privatization is after December 31, 2010, and before 
2.12 	January 1, 2012, and if the person became a public employee after June 30, 2006:
2.13 	(1) the augmentation rate is at a 2.5 percent annual rate through December 31, 2011, 
2.14 	prorated if the privatization occurs less than one year before January 1, 2012; and
2.15 	(2) after December 31, 2011, the augmentation rate is 1.0 percent compounded 
2.16 	annually until the effective date of retirement.
2.17 	(f) If the effective date of the privatization is January 1, 2012, or later, no 
2.18 	augmentation applies.
2.19 	(g) The term "effective date of the privatization" as used in this subdivision means 
2.20 	the "effective date" as defined in section 353F.02, subdivision 3.

2.21 	EFFECTIVE DATE. This section is effective the day following final enactment.