HF 1928

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; authorizing purchase of prior
service credit in the correctional employees
retirement plan of the Minnesota State Retirement
System for prior corrections discipline unit
supervisor, dental hygienist, and psychologist 2
service at the Minnesota Correctional Facility-Rush
City.

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

Section 1. new text begin PURCHASE OF PRIOR SERVICE CREDIT FOR SELECTED
RUSH CITY POSITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Purchase of prior service credit. new text end

new text begin (a) An
employee who has retirement coverage under the correctional
employees retirement plan of the Minnesota State Retirement
System for employment as a corrections discipline unit
supervisor, dental hygienist, or psychologist 2 at the Minnesota
Correctional Facility-Rush City, under Minnesota Statutes 2004,
section 352.91, subdivision 3g, may elect to purchase prior
service credit for eligible state service with the Department of
Corrections as defined in paragraph (b) performed before the
first day of the first full pay period beginning on or after
August 1, 2004. If an eligible employee elects to purchase
prior service credit under this section, all eligible prior
service credit must be purchased.
new text end

new text begin (b) For purposes of this section, eligible state service
with the Department of Corrections is any prior period of
continuous service performed as an employee of the Department of
Corrections that would have been eligible for correctional
employees retirement plan coverage under Minnesota Statutes
2004, section 352.91, subdivision 3g, if that prior service had
been performed after the first day of the first full pay period
beginning after August 1, 2004, rather than before that date.
Service is continuous if there has been no period of
discontinuation of eligible state service for a period greater
than 180 calendar days.
new text end

new text begin (c) The commissioner of corrections shall certify eligible
state service, if any, under this section to the executive
director of the Minnesota State Retirement System.
new text end

new text begin (d) An eligible employee under this section is entitled to
purchase the applicable prior service credit if the department
certifies that the employee met the eligibility requirements for
coverage.
new text end

new text begin Subd. 2. new text end

new text begin Required employee contribution. new text end

new text begin (a) An eligible
employee electing to purchase prior service credit under
subdivision 1 must pay an additional employee contribution for
that prior service credit. The additional member contribution
is the contribution differential percentage applied to the
actual salary paid to the employee during the period of the
prior eligible state service, plus interest at the rate of six
percent per annum, compounded annually. The contribution
differential percentage is the difference between the employee
contribution rate of the correctional employees retirement plan
and the applicable employee contribution rate of the general
state employees retirement plan during the prior eligible state
service period.
new text end

new text begin (b) The additional member contribution must be paid only in
a lump sum. Payment must accompany the election to obtain prior
service credit. No election of payment may be made by the
person or accepted by the executive director after June 30, 2006.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of assets. new text end

new text begin If full payment is made
under subdivisions 1 and 2, assets must be transferred from the
general employees retirement plan to the correctional employees
retirement plan, in an amount equal to the present value of
benefits earned under the general employees retirement plan for
each applicable eligible employee transferring to the
correctional employees retirement plan for the period being
transferred, multiplied by the accrued liability funding ratio
for active general plan employees, as determined by the actuary
retained under Minnesota Statutes, section 356.214, and in
accordance with Minnesota Statutes, section 356.215. The
transfer of assets must be made within 45 days after the
eligible employee elects under this section to transfer prior
service to the correctional employees retirement plan.
new text end

new text begin Subd. 4. new text end

new text begin Effect of the asset transfer. new text end

new text begin Upon transfer of
assets in subdivision 3, applicable service credit in the
general state employees plan of the Minnesota State Retirement
System is forfeited and may not be reinstated. The service
credit and transferred assets must be credited to the
correctional employees retirement plan.
new text end

new text begin Subd. 5. new text end

new text begin Payment of actuarial calculation costs. new text end

new text begin The
expense of the actuary retained under Minnesota Statutes,
section 356.214, attributable to the calculations under
subdivision 3, must be paid by the Department of Corrections
within 30 days after the request for payment by the actuary.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective on the day following final enactment.
new text end