HF 441

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; correctional state employees
retirement plan of the Minnesota State Retirement
System; expanding the plan membership to include
laundry coordinators and delivery van drivers at the
Minnesota Correctional Facility-Faribault; amending
Minnesota Statutes 2004, section 352.91, subdivision
3g.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 352.91,
subdivision 3g, is amended to read:

Subd. 3g.

Additional corrections department personnel.

(a) "Covered correctional service" means service by a state
employee in one of the employment positions at the designated
Minnesota correctional facility specified in paragraph (b) if at
least 75 percent of the employee's working time is spent in
direct contact with inmates and the fact of this direct contact
is certified to the executive director by the commissioner of
corrections.

(b) The qualifying employment positions and the designated
correctional facilities are:

(1) corrections discipline unit supervisor, at the
Minnesota Correctional Facility-Faribault, the Minnesota
Correctional Facility-Lino Lakes, the Minnesota Correctional
Facility-Oak Park Heights, the Minnesota Correctional
Facility-Rush City, and the Minnesota Correctional Facility-St.
Cloud;

(2) dental assistant registered, at the Minnesota
Correctional Facility-Faribault, the Minnesota Correctional
Facility-Lino Lakes, the Minnesota Correctional Facility-Moose
Lake, the Minnesota Correctional Facility-Oak Park Heights, and
the Minnesota Correctional Facility-Red Wing;

(3) dental hygienist, at the Minnesota Correctional
Facility-Shakopee and the Minnesota Correctional Facility-Rush
City;

(4) psychologist 2, at the Minnesota Correctional
Facility-Faribault, the Minnesota Correctional Facility-Lino
Lakes, the Minnesota Correctional Facility-Moose Lake, the
Minnesota Correctional Facility-Oak Park Heights, the Minnesota
Correctional Facility-Red Wing, the Minnesota Correctional
Facility-Rush City, the Minnesota Correctional Facility-St.
Cloud, the Minnesota Correctional Facility-Shakopee, and the
Minnesota Correctional Facility-Stillwater; deleted text begin or
deleted text end

(5) sentencing to service crew leader involved with the
inmate community work crew program, at the Minnesota
Correctional Facility-Faribault and the Minnesota Correctional
Facility-Lino Lakes new text begin ;
new text end

new text begin (6) laundry coordinator, at the Minnesota Correctional
Facility-Faribault; and
new text end

new text begin (7) delivery van driver, at the Minnesota Correctional
Facility-Faribault new text end .

Sec. 2. new text begin COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN
PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Election of prior state service
coverage. new text end

new text begin (a) An employee who has future retirement coverage
transferred to the correctional state employees retirement plan
under section 1 is entitled to elect to obtain prior service
credit for eligible correctional state service performed after
June 30, 1997, and before July 1, 2005, with the Department of
Corrections. All prior service credit must be purchased.
new text end

new text begin (b) Eligible correctional state service is a prior period
of continuous service after June 30, 1997, performed as an
employee of the Department of Corrections that would have been
eligible for the correctional state employees retirement plan
coverage under section 1, if that prior service had been
performed after June 30, 2005, rather than before July 1, 2005.
Service is continuous if there has been no period of
discontinuation of eligible state service for a period greater
than 30 calendar days.
new text end

new text begin (c) The Department of Corrections shall certify eligible
correctional state service to the commissioner of employee
relations and the executive director of the Minnesota State
Retirement System.
new text end

new text begin (d) A correctional employee covered under section 1 is
entitled to purchase the past service if the department
certifies that the employee met the eligibility requirements for
coverage. The employee must make additional employee
contributions. Payments for past service must be completed by
June 30, 2006.
new text end

new text begin Subd. 2. new text end

new text begin Payment for prior service. new text end

new text begin (a) An employee
electing to obtain prior service credit under subdivision 1 must
pay an additional employee contribution for that prior service.
The additional member contribution is the contribution
differential percentage applied to the actual salary paid to the
employee during the period of the prior eligible correctional
state service, plus interest at the rate of 8.5 percent per
annum, compounded annually. The contribution differential
percentage is the difference between 4.9 percent of salary and
the applicable employee contribution rate of the general state
employees retirement plan during the prior eligible correctional
state service.
new text end

new text begin (b) The additional member contribution may be paid only in
a lump sum. Payment must accompany the election to obtain prior
service credit. No election or payment may be made by the
person or accepted by the executive director after June 30, 2006.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of assets. new text end

new text begin (a) Assets must be
transferred from the general state employees retirement plan to
the correctional state employees retirement plan in an amount
equal to the present value of benefits earned under the plan for
each employee transferring to the correctional state employees
retirement plan, as determined by the actuary retained by the
Legislative Commission on Pensions and Retirement in accordance
with Minnesota Statutes, section 356.215, multiplied by the
accrued liability funding ratio of active members as derived
from the most recent actuarial valuation prepared by the
commission-retained actuary. The transfer of assets must be
made within 30 days after the employee elects to transfer the
coverage to the correctional state employees retirement plan.
new text end

new text begin (b) The Department of Corrections shall pay the cost of the
actuarial work performed by the commission-retained actuary
under paragraph (a) upon receipt of a billing by the executive
director of the Legislative Commission on Pensions and
Retirement.
new text end

new text begin Subd. 4. new text end

new text begin Effect of the asset transfer. new text end

new text begin Upon the transfer
of assets in subdivision 3, service credit in the general state
employees retirement plan of the Minnesota State Retirement
System is forfeited and may not be reinstated. The service
credit and transferred assets must be credited to the
correctional state employees retirement plan.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2005.
new text end