HF 1627

as introduced - 87th Legislature (2011 - 2012) Posted on 05/02/2011 10:04am

A bill for an act
relating to retirement; general employees retirement plan of the Public
Employees Retirement Association; authorizing the purchase of prior service
credit for uncredited public employment by Crookston Township.

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

Section 1. new text begin SERVICE CREDIT PURCHASE AUTHORIZATION FOR
UNCREDITED PRIOR PUBLIC EMPLOYMENT.
new text end

new text begin (a) An eligible person described in paragraph (b) is entitled to purchase allowable
service in the general employees retirement plan of the Public Employees Retirement
Association under Minnesota Statutes, section 353.01, subdivision 16, for the period
described in paragraph (c) upon the payment of the purchase requirement specified in
paragraph (e).
new text end

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

new text begin (1) was born on September 10, 1949;
new text end

new text begin (2) was first employed by Crookston Township on July 1, 1990;
new text end

new text begin (3) was enrolled in the general employees retirement plan of the Public Employees
Retirement Association on September 15, 2010; and
new text end

new text begin (4) had omitted deductions paid for allowable service for Crookston Township
back to January 1, 2007.
new text end

new text begin (c) The period of prior service credit available for purchase is the period of
Crookston Township employment from July 1, 1990, to December 31, 2006, if the service
was not that of an independent contractor and the compensation for the service met or
exceeded the applicable minimum monthly salary threshold amount for plan coverage.
new text end

new text begin (d) The eligible person must apply with the executive director of the Public
Employees Retirement Association to make the service credit purchase under this section.
The application must be in writing and must include all necessary relevant documentation
that the executive director may require.
new text end

new text begin (e) Allowable service credit under Minnesota Statutes, section 353.01, subdivision
16, must be granted by the general employees retirement plan of the Public Employees
Retirement Association to the eligible person upon the receipt of the prior service credit
purchase payment amount required under Minnesota Statutes, section 356.551. Of the
total prior service credit purchase payment amount under Minnesota Statutes, section
356.551, the eligible person must pay an amount equal to the employee contribution rates
in effect during the uncredited employment period applied to the actual salary rates of the
eligible person during the period, plus annual compound interest at the rate of 8.5 percent
from the date on which the member contribution payment should have been made if made
in a timely fashion until the date on which the equivalent contribution is actually made. If
the eligible person makes the payment, Crookston Township shall pay the balance of the
total prior service credit purchase payment amount calculated under Minnesota Statutes,
section 356.551, within 60 days of the date on which the treasurer of Crookston Township
is ratified by the executive director of the Public Employees Retirement Association that
the member contribution payment had been received by the association. If Crookston
Township fails to pay its portion of the prior service credit purchase payment amount
under this section, the executive director of the Public Employees Retirement Association
shall collect the unpaid amount under Minnesota Statutes, section 353.28, subdivision 6,
paragraph (a).
new text end

new text begin (f) Authority for an eligible person to make a prior service credit purchase under this
section expires on June 30, 2012, or upon the eligible person's termination of employment
covered by the Public Employees Retirement Association.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end