HF 1648

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minnesota state retirement 
  1.3             system, authorizing an individual with prior service 
  1.4             as a corrections program director to transfer coverage 
  1.5             for that service from the general plan to the 
  1.6             correctional plan. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [SERVICE CREDIT TRANSFER TO CORRECTIONAL PLAN.] 
  1.9      Subdivision 1.  [AUTHORIZATION.] An eligible individual 
  1.10  specified in subdivision 2 is authorized to have service credit 
  1.11  in the Minnesota state retirement system general plan for 
  1.12  employment as a corrections program director from June 17, 1995, 
  1.13  to June 5, 2001, transferred from the Minnesota state retirement 
  1.14  system general plan to the Minnesota state retirement system 
  1.15  correctional plan, if all conditions required by this section 
  1.16  are met. 
  1.17     Subd. 2.  [ELIGIBILITY.] An eligible individual is an 
  1.18  individual who: 
  1.19     (1) was born on November 14, 1956; 
  1.20     (2) is currently employed as a corrections lieutenant; 
  1.21     (3) was covered by the Minnesota state retirement system 
  1.22  correctional plan for service provided from November 1, 1980, to 
  1.23  June 16, 1995; 
  1.24     (4) was covered by the Minnesota state retirement system 
  1.25  general plan for employment as a corrections program director 
  1.26  from June 17, 1995, to June 5, 2001; and 
  2.1      (5) is covered by the Minnesota state retirement system 
  2.2   correctional plan for employment as a corrections lieutenant 
  2.3   beginning June 6, 2001. 
  2.4      Subd. 3.  [EMPLOYEE EQUIVALENT CONTRIBUTION.] To receive 
  2.5   the transfer of service credit specified in subdivision 1, the 
  2.6   individual must pay to the executive director of the Minnesota 
  2.7   state retirement system the difference between the employee 
  2.8   contribution rate for the general plan and the employee 
  2.9   contribution rate for the correctional plan in effect during the 
  2.10  period eligible for transfer applied to the eligible 
  2.11  individual's salary at the time each additional contribution 
  2.12  would have been deducted from pay if coverage had been provided 
  2.13  by the correctional plan.  These amounts shall be paid in a lump 
  2.14  sum by September 1, 2003, or prior to termination of service, 
  2.15  whichever is earlier, plus 8.5 percent annual compound interest 
  2.16  from the applicable payroll deduction date until paid. 
  2.17     Subd. 4.  [EMPLOYER EQUIVALENT.] The eligible individual 
  2.18  shall also pay to the executive director of the Minnesota state 
  2.19  retirement system the difference between the employer 
  2.20  contribution rate for the general plan and the employer 
  2.21  contribution rate for the correctional plan in effect during the 
  2.22  period eligible for transfer, applied to the eligible 
  2.23  individual's salary at the time each additional contribution 
  2.24  would have been deducted from pay if coverage had been provided 
  2.25  by the correctional plan.  The amounts shall be paid in a lump 
  2.26  sum at the same time as the amount under subdivision 3, with 
  2.27  interest as specified in that subdivision. 
  2.28     Subd. 5.  [TRANSFER OF ASSETS.] If payments under 
  2.29  subdivisions 3 and 4 are made, assets must be transferred from 
  2.30  the general employees retirement plan fund to the correctional 
  2.31  employees retirement plan fund in an amount equal to the present 
  2.32  value of benefits earned by the eligible individual under the 
  2.33  general plan, as determined by the actuary retained by the 
  2.34  legislative commission on pensions and retirement in accordance 
  2.35  with Minnesota Statutes, section 356.215.  The transfer of 
  2.36  assets must be made within 45 days after the receipt of payments 
  3.1   under subdivisions 3 and 4. 
  3.2      Subd. 6.  [EFFECT OF THE ASSET TRANSFER.] Upon transfer of 
  3.3   assets in subdivision 5, service credit in the general plan of 
  3.4   the Minnesota state retirement system is forfeited and may not 
  3.5   be reinstated.  The service credit and transferred assets must 
  3.6   be credited to the correctional employees retirement plan. 
  3.7      Subd. 7.  [PAYMENT OF ACTUARIAL CALCULATION COSTS.] The 
  3.8   expense for the calculations by the actuary under subdivision 5 
  3.9   must be paid by the department that employs the eligible 
  3.10  individual for the current corrections lieutenant employment. 
  3.11     Sec. 2.  [EFFECTIVE DATE.] 
  3.12     Section 1 is effective the day following final enactment.