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HF 2279

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/21/2007

Current Version - as introduced

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A bill for an act
relating to retirement; correctional state employees retirement plan; clarifying
the current and past coverage for certain Minnesota Correctional Facility-St.
Cloud employees.

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

Section 1. new text beginCOVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN
PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "covered correction service"
means service between April 25, 1990, through September 7, 1994, as a stores clerk at the
Minnesota Correctional Facility-St. Cloud.
new text end

new text begin Subd. 2. new text end

new text begin Election of prior state service coverage. new text end

new text begin (a) An employee who has
retirement coverage for past correctional service transferred to the correctional state
employees retirement plan under subdivision 1 is entitled to elect to obtain prior service
credit for eligible state service performed as a stores clerk after April 24, 1990, and before
September 8, 1994, with the Department of Corrections. All eligible prior service credit
must be purchased.
new text end

new text begin (b) The commissioner of corrections shall certify the eligible state service as a
stores clerk rendered by the employee to the executive director of the Minnesota State
Retirement System.
new text end

new text begin (c) The covered correctional plan employee who has past service covered under
subdivision 1 is entitled to purchase the past service if the department certifies that
the employee met the eligibility requirements for coverage. The employee shall pay
the difference between the employee contributions actually paid during the period and
what should have been paid under the correctional state employees retirement plan, as
determined under subdivision 3. Payment for past service must be completed by June
30, 2008.
new text end

new text begin Subd. 3. new text end

new text begin Payment for past service. new text end

new text begin (a) An employee electing to obtain prior service
credit under subdivision 2, paragraph (c), must pay an additional employee contribution
for that prior service. The additional member contribution is the contribution differential
percentage rate applied to the actual salary paid to the employee during the period of the
prior eligible state service. The contribution differential percentage is the difference
between 4.9 percent of salary and the applicable employee contribution rate of the general
state employees retirement plan during the April 24, 1990, and September 8, 1994, period.
new text end

new text begin (b) The additional member contribution may be paid only in a lump sum. Payment
must accompany the election to obtain prior service credit. No election to make the past
service payment may be made by the person or accepted by the executive director after
June 30, 2008.
new text end

new text begin Subd. 4. new text end

new text begin Transfer of assets. new text end

new text begin Assets must be transferred from the general state
employees retirement plan to the correctional state employees retirement plan in an
amount equal to the present value of benefits accrued under the general employees
retirement plan for the employee transferring to the correctional state employees
retirement plan, as determined by the actuary retained under Minnesota Statutes, section
, and calculated under the relevant provisions of Minnesota Statutes, section
356.215. The transfer of assets must be made within 45 days after the employee elects to
transfer coverage to the correctional state employees retirement plan.
new text end

new text begin Subd. 5. new text end

new text begin Effect of asset transfer. new text end

new text begin Upon transfer of assets in subdivision 4, the
service credit associated with those assets in the general state employees plan of the
Minnesota State Retirement System for the covered correctional plan employee is forfeited
and may not be reinstated. The service credit and transferred assets must be credited to the
correctional state employees retirement plan.
new text end

Sec. 2. new text beginEFFECTIVE DATE.
new text end

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