as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
|Introduction||Posted on 02/25/1999|
1.1 A bill for an act 1.2 relating to retirement; Ridgeview medical center, 1.3 Waconia; providing special retirement benefit coverage 1.4 for certain employees who discontinue public 1.5 employment by privatization. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. [RIDGEVIEW MEDICAL CENTER EMPLOYEE 1.8 PRIVATIZATION PENSION BENEFIT ACCOMMODATION; PURPOSE.] 1.9 The purpose of this act is to ensure, to the extent 1.10 possible, that persons employed at the Ridgeview medical center, 1.11 Waconia, will be entitled to receive future retirement benefits 1.12 under the general employees retirement plan of the public 1.13 employees retirement association commensurate with the prior 1.14 contributions made by them or on their behalf upon the 1.15 privatization of the Ridgeview medical center. 1.16 Sec. 2. [DEFINITIONS.] 1.17 Subdivision 1. [GENERALLY.] As used in this act, unless 1.18 the context clearly indicates otherwise, each of the terms in 1.19 the following subdivisions has the meaning indicated. 1.20 Subd. 2. [ALLOWABLE SERVICE.] "Allowable service" has the 1.21 meaning provided in Minnesota Statutes 1998, section 353.01, 1.22 subdivision 16. 1.23 Subd. 3. [EFFECTIVE DATE.] "Effective date" means the date 1.24 that the operation of the Ridgeview medical center is assumed by 1.25 another employer or the date that the Ridgeview medical center 2.1 is purchased by another employer and active membership in the 2.2 public employees retirement association consequently terminates. 2.3 Subd. 4. [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 2.4 hospital employee" means a person who: 2.5 (1) was employed on the day before the effective date by 2.6 the Ridgeview medical center; 2.7 (2) terminated employment with the Ridgeview medical center 2.8 on the day before the effective date; and 2.9 (3) was a participant in the general employees retirement 2.10 plan of the public employees retirement association at the time 2.11 of termination of employment with the Ridgeview medical center. 2.12 Subd. 5. [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 2.13 service" means the total number of years of allowable service 2.14 under Minnesota Statutes 1998, section 353.01, subdivision 18. 2.15 Sec. 3. [VESTING RULE FOR CERTAIN EMPLOYEES.] 2.16 Notwithstanding any provision of Minnesota Statutes, 2.17 chapter 353 to the contrary, a terminated hospital employee is 2.18 eligible to receive a retirement annuity under Minnesota 2.19 Statutes 1998, section 353.29, without regard to the requirement 2.20 for three years of allowable service. 2.21 Sec. 4. [AUGMENTATION INTEREST RATE FOR TERMINATED 2.22 HOSPITAL EMPLOYEES.] 2.23 The deferred annuity of a terminated hospital employee is 2.24 subject to augmentation in accordance with Minnesota Statutes 2.25 1998, section 353.71, subdivision 2, except that the rate of 2.26 interest for this purpose is 5.5 percent compounded annually 2.27 until January 1 following the year in which such person attains 2.28 age 55. From that date to the effective date of retirement, the 2.29 rate is 7.5 percent. These increased augmentation rates are no 2.30 longer applicable for any time after the terminated hospital 2.31 employee becomes covered again by a retirement fund enumerated 2.32 in Minnesota Statutes, section 356.30, subdivision 3. These 2.33 increased deferred annuity augmentation rates do not apply to a 2.34 terminated transferred hospital employee who begins receipt of a 2.35 retirement annuity while employed by the employer which assumed 2.36 operations of the Ridgeview medical center or purchased the 3.1 Ridgeview medical center. 3.2 Sec. 5. [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE 3.3 FOR CERTAIN EARLY RETIREMENT PURPOSES.] 3.4 For the purpose of determining eligibility for early 3.5 retirement benefits provided under Minnesota Statutes 1998, 3.6 section 353.30, subdivision 1a, and notwithstanding any 3.7 provision of Minnesota Statutes, chapter 353 to the contrary, 3.8 the years of allowable service for a terminated hospital 3.9 employee who transfers employment on the effective date and does 3.10 not apply for a refund of contributions under Minnesota Statutes 3.11 1998, section 353.34, subdivision 1, or any similar provision in 3.12 future Minnesota Statutes, includes service with the successor 3.13 employer to the Ridgeview medical center following the effective 3.14 date. The successor employer shall provide any reports that the 3.15 executive director of the public employees retirement 3.16 association may reasonably request to permit calculation of 3.17 benefits. 3.18 To be eligible for early retirement benefits under this 3.19 section, the individual must separate from service with the 3.20 successor employer to the Ridgeview medical center. The 3.21 terminated eligible individual, or an individual authorized to 3.22 act on behalf of that individual, may apply for an annuity 3.23 following application procedures under Minnesota Statutes, 3.24 section 353.29, subdivision 4. 3.25 Sec. 6. [APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 3.26 LIMITATIONS.] 3.27 The reemployed annuitant earnings limitations of Minnesota 3.28 Statutes, section 353.37, apply to any service by a terminated 3.29 hospital employee as an employee of the successor employer to 3.30 the Ridgeview medical center. 3.31 Sec. 7. [EFFECT ON REFUND.] 3.32 Notwithstanding any provision of Minnesota Statutes, 3.33 chapter 353 to the contrary, terminated hospital employees may 3.34 receive a refund of employee accumulated contributions plus 3.35 interest at the rate of six percent per year compounded annually 3.36 in accordance with Minnesota Statutes 1998, section 353.34, 4.1 subdivision 2, at any time after the transfer of employment to 4.2 the successor employer to the Ridgeview medical center. If a 4.3 terminated hospital employee has received a refund from a 4.4 pension plan enumerated in Minnesota Statutes, section 356.30, 4.5 subdivision 3, the person may not repay that refund unless the 4.6 person again becomes a member of one of those enumerated plans 4.7 and complies with Minnesota Statutes, section 356.30, 4.8 subdivision 2. 4.9 Sec. 8. [COUNSELING SERVICES.] 4.10 The Ridgeview medical center and the executive director of 4.11 the public employees retirement association shall provide 4.12 terminated hospital employees with counseling on their benefits 4.13 available under the general employee retirement plan of the 4.14 public employee retirement association. 4.15 Sec. 9. [EFFECTIVE DATE.] 4.16 Sections 1 to 8 are effective on the day following final 4.17 enactment.