HF 1997

as introduced - 89th Legislature (2015 - 2016) Posted on 03/18/2015 10:38am

A bill for an act
relating to retirement; Public Employees Retirement Association; permitting a
Nashville Township employee to purchase service credit for a period of omitted
contributions.

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

Section 1. new text begin PERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED
CONTRIBUTION PERIOD; NASHVILLE TOWNSHIP EMPLOYEE.
new text end

new text begin (a) Notwithstanding any provision to the contrary, an eligible person described in
paragraph (b) is entitled to purchase from the general employees retirement plan of the
Public Employees Retirement Association allowable service credit under Minnesota
Statutes, section 353.01, subdivision 16, for the period of omitted member deductions in
paragraph (c).
new text end

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

new text begin (1) was born on August 8, 1938;
new text end

new text begin (2) was first employed by Nashville Township on April 1, 1994;
new text end

new text begin (3) was eligible for retirement coverage by and membership in the general employees
retirement plan of the Public Employees Retirement Association on July 1, 1998; and
new text end

new text begin (4) had omitted deductions paid for allowable service for Nashville Township back
to July 1, 2010.
new text end

new text begin (c) The period of prior service credit available for purchase is the period from July 1,
1998, to June 30, 2010, during which no member contributions for the general employees
retirement plan of the Public Employees Retirement Association were deducted from the
eligible person's salary by Nashville Township, and which could not be corrected through
the Public Employees Retirement Association omitted contribution provision due to the
three-year time limit in the provision.
new text end

new text begin (d) The purchase payment amount payable by the eligible person is the employee
contributions that should have been made, plus 8.5 percent interest compounded annually
from the date each deduction should have occurred, until the date paid to the Public
Employees Retirement Association. The purchase payment amount payable by Nashville
Township is the balance of the full actuarial value prior service credit purchase payment
amount determined under Minnesota Statutes, section 356.551, as of the first day of the
month next following the receipt of the eligible person's payment that is remaining after
deducting the purchase payment amount payable by the eligible person.
new text end

new text begin (e) The payment amount due from Nashville Township under paragraph (d) must be
made on or before the 15th of the month next following the receipt of the eligible person's
payment under paragraph (d). If the Nashville Township purchase payment amount is not
paid in a timely fashion, the amount due accrues compound monthly interest at the rate
of 0.71 percent per month from the first day of the month next following the receipt of
the eligible person's payment until the Nashville Township purchase payment amount is
received by the Public Employees Retirement Association. If Nashville Township fails
to pay its portion of the purchase payment amount to the Public Employees Retirement
Association 90 days after the receipt of the eligible person's payment, the executive
director shall collect the unpaid amount under Minnesota Statutes, section 353.28,
subdivision 6, paragraph (a).
new text end

new text begin (f) The eligible person must provide the executive director of the Public Employees
Retirement Association with any relevant requested information pertaining to this service
credit purchase.
new text end

new text begin (g) Authority to make a service credit purchase under this section expires on June 30,
2015, or upon the eligible person's termination of employment under Minnesota Statutes,
section 353.01, subdivision 11a, whichever occurs earlier.
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