HF 799

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; permitting the purchase of 
  1.3             service credit for St. Paul bureau of health service. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [PURCHASE OF SERVICE CREDIT FOR ST. PAUL BUREAU 
  1.6   OF HEALTH SERVICE.] 
  1.7      Subdivision 1.  [ELIGIBILITY.] A person who was employed by 
  1.8   the St. Paul bureau of health from July 1, 1950, to October 5, 
  1.9   1951, and again from July 1, 1952, to December 31, 1956, and who 
  1.10  was covered by the St. Paul bureau of health relief association 
  1.11  under Laws 1919, chapter 430, sections 1 to 9, as amended, by 
  1.12  virtue of that employment, and who became a member of the 
  1.13  general plan of the public employees retirement association on 
  1.14  June 6, 1983, is entitled to purchase service credit in the 
  1.15  general plan of the public employees retirement association for 
  1.16  any months of employment by the St. Paul bureau of health in 
  1.17  which member contributions to the St. Paul bureau of health 
  1.18  relief association were made. 
  1.19     Subd. 2.  [PURCHASE PAYMENT AMOUNT.] (a) The person 
  1.20  requesting the purchase of prior service shall establish in the 
  1.21  records of the fund or association proof of the service for 
  1.22  which the purchase of prior service is requested.  The manner of 
  1.23  the proof of service must be in accordance with procedures 
  1.24  prescribed by the executive director of the public employees 
  2.1   retirement association.  For a person eligible to purchase 
  2.2   credit under subdivision 1, there must be paid to the public 
  2.3   employees retirement association an amount on the date of 
  2.4   payment equal to the amount computed in paragraph (b) minus the 
  2.5   amount computed in paragraph (c). 
  2.6      (b) The present value, on the date of payment, of the 
  2.7   amount of additional retirement annuity that would be obtained 
  2.8   due to the purchase of additional service credit by the 
  2.9   individual specified in subdivision 1, using the preretirement 
  2.10  interest rate specified in Minnesota Statutes, section 356.215, 
  2.11  subdivision 4d, and the mortality table adopted for the public 
  2.12  employees retirement association and assuming continuous future 
  2.13  service in the public employees retirement association until, 
  2.14  and retirement at, the age at which the minimum requirements of 
  2.15  the retirement association for normal retirement or retirement 
  2.16  with an annuity unreduced for retirement at an early age, 
  2.17  including Minnesota Statutes, section 356.30, are met with the 
  2.18  additional service credit purchased, and also assuming a future 
  2.19  salary history that includes annual salary increases at the 
  2.20  salary increase rate specified in Minnesota Statutes, section 
  2.21  356.215, subdivision 4d. 
  2.22     (c) The present value of employee and employer 
  2.23  contributions paid to the St. Paul bureau of health relief 
  2.24  association by or on behalf of the individual eligible to 
  2.25  purchase credit under subdivision 1.  The present value must be 
  2.26  computed assuming investment earnings on these contributions 
  2.27  equal to the rate actually earned by the assets of active 
  2.28  employees covered by the public employees retirement 
  2.29  association, beginning with the date the individual specified in 
  2.30  subdivision 1 first made contributions to the St. Paul bureau of 
  2.31  health relief association. 
  2.32     Subd. 3.  [PAYMENT; CREDITING SERVICE.] Payment must be 
  2.33  made in one lump sum, unless the executive director of the 
  2.34  public employees retirement association agrees to accept payment 
  2.35  in installments over a period not to exceed three years from the 
  2.36  date of the agreement, with interest at a rate deemed 
  3.1   appropriate by the executive director.  The period of allowable 
  3.2   service may be credited to the account of the person only after 
  3.3   receipt of full payment by the executive director. 
  3.4      Subd. 4.  [OPTIONAL EMPLOYER PARTIAL PAYMENT.] Payment must 
  3.5   be made by the person entitled to purchase prior service.  
  3.6   However, the city of St. Paul may, at its discretion, pay all or 
  3.7   any portion of the required payment amount. 
  3.8      Sec. 2.  [EFFECTIVE DATE.] 
  3.9      Section 1 is effective the day following final enactment.