HF 1936

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

A bill for an act
relating to retirement; Minnesota State Retirement
System, authorizing a transfer of service credit from
the general plan to the correctional plan.

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

Section 1. new text begin SERVICE CREDIT TRANSFER TO CORRECTIONAL PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin An eligible individual
specified in subdivision 2 is authorized to have service credit
in the Minnesota State Retirement System general plan for
employment as a corrections program director from June 17, 1995,
to June 5, 2001, transferred from the Minnesota State Retirement
System general plan to the Minnesota State Retirement System
correctional plan, if all conditions required by this section
are met.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin An eligible individual is an
individual who:
new text end

new text begin (1) was born on November 14, 1956;
new text end

new text begin (2) is currently employed as a corrections lieutenant;
new text end

new text begin (3) was covered by the Minnesota State Retirement System
correctional plan for service provided from November 1, 1980, to
June 16, 1995;
new text end

new text begin (4) was covered by the Minnesota State Retirement System
general plan for employment as a corrections program director
from June 17, 1995, to June 5, 2001; and
new text end

new text begin (5) is covered by the Minnesota State Retirement System
correctional plan for employment as a corrections lieutenant
beginning June 6, 2001.
new text end

new text begin Subd. 3. new text end

new text begin Employee equivalent contribution. new text end

new text begin To receive
the transfer of service credit specified in subdivision 1, the
individual must pay to the executive director of the Minnesota
State Retirement System the difference between the employee
contribution rate for the general plan and the employee
contribution rate for the correctional plan in effect during the
period eligible for transfer applied to the eligible
individual's salary at the time each additional contribution
would have been deducted from pay if coverage had been provided
by the correctional plan. These amounts shall be paid in a lump
sum by September 1, 2005, or prior to termination of service,
whichever is earlier, plus 8.5 percent annual compound interest
from the applicable payroll deduction date until paid.
new text end

new text begin Subd. 4. new text end

new text begin Employer equivalent. new text end

new text begin The eligible individual
shall also pay to the executive director of the Minnesota State
Retirement System the difference between the employer
contribution rate for the general plan and the employer
contribution rate for the correctional plan in effect during the
period eligible for transfer, applied to the eligible
individual's salary at the time each additional contribution
would have been deducted from pay if coverage had been provided
by the correctional plan. The amounts shall be paid in a lump
sum at the same time as the amount under subdivision 3, with
interest as specified in that subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Transfer of assets. new text end

new text begin If payments under
subdivisions 3 and 4 are made, assets must be transferred from
the general employees retirement plan fund to the correctional
employees retirement plan fund in an amount equal to the present
value of benefits earned by the eligible individual under the
general plan, as determined by the actuary retained by the
legislative commission on pensions and retirement in accordance
with Minnesota Statutes, section 356.215. The transfer of
assets must be made within 45 days after the receipt of payments
under subdivisions 3 and 4.
new text end

new text begin Subd. 6. new text end

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

new text begin Upon transfer of
assets in subdivision 5, service credit in the general 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. 7. new text end

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

new text begin The
expense for the calculations by the actuary under subdivision 5
must be paid by the department that employs the eligible
individual for the current corrections lieutenant employment.
new text end

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

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