HF 293

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; public employees retirement 
  1.3             association; authorizing the purchase of service 
  1.4             credit for certain on-leave military service periods 
  1.5             by certain St. Louis county employees. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION: 
  1.8   SERVICE CREDIT PURCHASE FOR CERTAIN ON-LEAVE MILITARY SERVICE 
  1.9   PERIODS.] 
  1.10     Subdivision 1.  [PURCHASE AUTHORIZATION.] Notwithstanding 
  1.11  any provision of Minnesota Statutes, chapter 353, to the 
  1.12  contrary, a member of the public employees retirement 
  1.13  association who: 
  1.14     (1) was born on June 3, 1945; 
  1.15     (2) was initially employed by the county of St. Louis in 
  1.16  September 1963; 
  1.17     (3) was inducted into the armed forces of the United States 
  1.18  in April 1966; 
  1.19     (4) was honorably discharged from the armed forces of the 
  1.20  United States in April 1969; 
  1.21     (5) returned to employment by the county of St. Louis upon 
  1.22  discharge; and 
  1.23     (6) received a grant of one year of allowable service 
  1.24  credit for the military service period from the public employees 
  1.25  retirement association without any purchase payment as provided 
  2.1   by law before 1973; 
  2.2   may purchase from the association two years of allowable service 
  2.3   credit under Minnesota Statutes, section 353.01, subdivision 16, 
  2.4   for military service rendered with the United States Armed 
  2.5   Forces during an authorized leave of absence upon payment of the 
  2.6   purchase payment amount specified in subdivision 2. 
  2.7      Subd. 2.  [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit 
  2.8   for prior service under this section, there must be paid to the 
  2.9   public employees retirement association an amount equal to the 
  2.10  present value, on the date of payment, of the amount of the 
  2.11  additional retirement annuity obtained by the purchase of the 
  2.12  additional service credit.  Calculation of this amount must be 
  2.13  made by the executive director of the association using the 
  2.14  applicable preretirement interest rate of the association 
  2.15  specified in Minnesota Statutes, section 356.215, subdivision 
  2.16  4d, and the mortality table adopted for the association.  The 
  2.17  calculation must assume continuous future service in the 
  2.18  association until, and retirement at, the age at which the 
  2.19  minimum requirements of the association for normal retirement or 
  2.20  retirement with an annuity unreduced for retirement at an early 
  2.21  age, including Minnesota Statutes, section 356.30, are met with 
  2.22  the additional service credit purchased.  The calculation must 
  2.23  utilize the person's actual salary and must assume a future 
  2.24  salary history that includes annual salary increases at the 
  2.25  applicable salary increase rate for the association. 
  2.26     (b) Payment must be made in one lump sum prior to July 1, 
  2.27  1996. 
  2.28     (c) Payment of the amount calculated under this subdivision 
  2.29  must be made by the member.  However, the county of St. Louis 
  2.30  may, at its discretion, pay all or any portion of the payment 
  2.31  amount that exceeds an amount equal to the employee contribution 
  2.32  rates in effect during the period or periods of prior service 
  2.33  applied to the actual salary rates in effect during the period 
  2.34  or periods of prior service, plus interest at the rate of 8-1/2 
  2.35  percent a year compounded annually from the date on which the 
  2.36  contributions would otherwise have been made to the date on 
  3.1   which the payment is made.  If the employer agrees to payments 
  3.2   under this paragraph, the employee must make the employee 
  3.3   payments required under this paragraph before July 1, 1996.  If 
  3.4   that employee payment is made, the employing unit payment under 
  3.5   this paragraph must be remitted to the executive director of the 
  3.6   public employees retirement association within 60 days of 
  3.7   receipt by the executive director of the employee payments 
  3.8   specified under this paragraph. 
  3.9      Subd. 3.  [SERVICE CREDIT GRANT.] Service credit for the 
  3.10  purchase period or periods must be granted to the account of the 
  3.11  eligible person upon receipt of the purchase payment amount 
  3.12  specified in subdivision 2. 
  3.13     Subd. 4.  [ADEQUATE DOCUMENTATION REQUIRED.] To utilize the 
  3.14  authority set forth in this section, the applicable person must 
  3.15  provide the executive director of the public employees 
  3.16  retirement association with adequate documentation that the 
  3.17  entitlement requirements of subdivision 1 apply. 
  3.18     Sec. 2.  [EFFECTIVE DATE.] 
  3.19     Section 1 is effective on the day following final enactment.