1.1                          A bill for an act 
  1.2             relating to retirement; providing retirement options 
  1.3             for certain employees of the Melrose hospital and Pine 
  1.4             Villa.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [MELROSE HOSPITAL AND PINE VILLA EMPLOYEES.] 
  1.7      Subdivision 1.  [REFUND OF CONTRIBUTIONS.] A member of the 
  1.8   public employees retirement association who was employed by the 
  1.9   Melrose hospital and Pine Villa on the date the hospital was 
  1.10  taken over by a nonprofit corporation or organization is 
  1.11  entitled upon application to be paid a refund of accumulated 
  1.12  employee and employer contributions made by or on behalf of the 
  1.13  employee to the association, plus interest on those 
  1.14  contributions at the rate of six percent a year.  If an employee 
  1.15  has previously received a refund of employee contributions, only 
  1.16  the accumulated employer contributions plus interest may be 
  1.17  refunded.  No employer additional contributions may be 
  1.18  refunded.  A refund of contributions may be made only to a 
  1.19  federal income tax qualified individual retirement account 
  1.20  established by or on behalf of the person. 
  1.21     Subd. 2.  [DEFERRED ANNUITY.] If an employee described in 
  1.22  subdivision 1 had at least five years of allowable service 
  1.23  credit, the employee may elect to receive, in lieu of the 
  1.24  refund, a deferred annuity under Minnesota Statutes, section 
  1.25  353.34, subdivision 3, notwithstanding the length of service 
  2.1   requirements contained in that subdivision.  An employee 
  2.2   eligible for a deferred annuity who has previously received a 
  2.3   refund of employee contributions may reinstate the employee's 
  2.4   eligibility for a deferred annuity by repaying the amount 
  2.5   refunded, including any interest received, to the association, 
  2.6   and any deferred annuities augmentation may be computed only 
  2.7   from the date of the refund repayment.  
  2.8      Subd. 3.  [DEADLINE.] Refunds must be paid or options must 
  2.9   be exercised and repayments of refunds made by July 1, 1998.