HF 13

as introduced - 92nd Legislature (2021 - 2022) Posted on 01/07/2021 11:53am

A bill for an act
relating to retirement; authorizing purchase of service credit from the Public
Employees Retirement Association for omitted service.

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

Section 1. new text begin CREDIT FOR SERVICE IN PERA GENERAL EMPLOYEES
RETIREMENT PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Service credit purchase. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
353.27, subdivision 12, an eligible person described in paragraph (b) is entitled to purchase
allowable service in the general employees retirement plan under Minnesota Statutes, chapter
353, for the period described in paragraph (b), clause (2), upon making the payment described
in subdivision 2 to the general employees retirement fund.
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was hired by Independent School District No. 911, Cambridge-Isanti, as a driver,
and whose first day of employment was after September 1, 2010, and before September 30,
2010;
new text end

new text begin (2) received salary for a period of employment with Independent School District No.
911, Cambridge-Isanti, that occurred between September 1, 2010, and December 1, 2010,
and during a portion of the period of employment the school district failed to deduct employee
contributions as required by Minnesota Statutes 2010, section 353.27, subdivision 2; and
new text end

new text begin (3) on November 1, 2020, was employed by Independent School District No. 911,
Cambridge-Isanti.
new text end

new text begin (c) Upon receiving the payment described in subdivision 2, the executive director of the
Public Employees Retirement Association shall credit the eligible person with allowable
service for the period of employment described in paragraph (b), clause (2).
new text end

new text begin Subd. 2. new text end

new text begin Payment by eligible person. new text end

new text begin If the eligible person elects to purchase allowable
service credit as described in subdivision 1, the eligible person shall pay to the general
employees retirement fund an amount equal to the total amount of the employee contributions
that the eligible person would have made to the general employees retirement fund based
on the eligible person's total salary for the period of employment described in subdivision
1, paragraph (b), clause (2), plus interest, compounded annually, at the applicable annual
rate or rates specified in Minnesota Statutes, section 356.59, subdivision 3, from the end of
the year in which the contributions would have been made to the date on which the payment
is made. The amount of the required payment shall be determined by the executive director
of the Public Employees Retirement Association, who shall notify the eligible person
regarding the amount and the basis for determining the amount. Payment must be made by
the eligible person in a lump sum within 90 days of the effective date of this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Payment by employer. new text end

new text begin Upon payment by an eligible person of the amount
required by subdivision 2, Independent School District No. 911, Cambridge-Isanti, shall
pay to the general employees retirement fund an amount equal to the total amount of the
employer contributions that would have been made to the general employees retirement
fund based on the eligible person's total salary for the period of employment described in
subdivision 1, paragraph (b), clause (2), plus interest, compounded annually, at the applicable
annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 3, from the
end of the year in which the contributions would have been made to the date on which the
payment is made. The executive director shall notify the school district regarding the amount
and the basis for determining the amount. The payment shall be made within 60 days
following receipt by the general employees retirement fund of the eligible person's payment
under subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Collection of unpaid amounts. new text end

new text begin If Independent School District No. 911,
Cambridge-Isanti, fails to make all or any portion of the payment required by subdivision
3, the executive director of the Public Employees Retirement Association shall follow the
procedures in Minnesota Statutes, section 353.28, subdivision 6, to collect the amount not
paid.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin Subdivisions 1, 2, and 4 are effective
the day following final enactment. Subdivision 3 is effective the day after the governing
body of Independent School District No. 911, Cambridge-Isanti, and its chief clerical officer
complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end