HF 2311

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

A bill for an act
relating to retirement; public employees police and
fire retirement plan; providing an annuity for a
former St. Paul firefighter to correct an error in
coverage.

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

Section 1. new text begin CORRECTING PLAN COVERAGE ERROR BY PROVIDING A
PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT PLAN ANNUITY.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The annuity provided under this
section is intended to compensate for an error in pension
coverage. Due to the employment specified in subdivision 2, an
eligible individual specified in subdivision 2 should have
become a member of the public employees police and fire
retirement plan but was incorrectly placed in the St. Paul Fire
Department Relief Association retirement plan.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) An eligible individual under
paragraph (b) is authorized to receive the benefit specified in
subdivision 4, upon satisfying all requirements specified in
this section.
new text end

new text begin (b) An eligible individual is an individual who:
new text end

new text begin (1) was born on April 24, 1951;
new text end

new text begin (2) was hired as a St. Paul firefighter with a certified
appointment date of June 13, 1980, but first earned salary as a
St. Paul firefighter on June 30, 1980;
new text end

new text begin (3) was erroneously placed in the St. Paul Fire Department
Relief Association retirement plan due to that employment; and
new text end

new text begin (4) terminated from the St. Paul Fire Department employment
on January 3, 1990.
new text end

new text begin Subd. 3. new text end

new text begin Additional employee contribution or refund
amount. new text end

new text begin (a) If a valid annuity application is made under
subdivision 7, the executive director of the Public Employees
Retirement Association shall determine the employee
contributions that an eligible individual under subdivision 2
would have made to the public employees police and fire
retirement plan fund, if coverage had been provided by that plan
for the employment period specified in subdivision 2, and from
each of these contribution amounts the employee contribution
actually made by the eligible individual to the St. Paul Fire
Department Relief Association for the same payroll period shall
be subtracted. These differences, plus 8.5 percent annual
compound interest from the date the public employees police and
fire retirement plan contribution would have been made until the
first of the month after a valid annuity application has been
received, shall be aggregated.
new text end

new text begin (b) If the aggregate amount under paragraph (a) is a
positive number, the total amount shall be paid in a lump sum to
the executive director of the Public Employees Retirement
Association. The executive director shall notify the eligible
individual in writing of the required amount. To be eligible
for the current or deferred annuity specified in subdivision 4,
the eligible individual must pay the amount required under this
paragraph, if applicable, within three months of the executive
director's notification.
new text end

new text begin (c) If the aggregate amount computed under paragraph (a) is
a negative amount, the value of the contributions that the
eligible employee made to the local relief association exceeded
the value of employee contributions that would have been made to
the public employees police and fire fund. This aggregate
negative amount shall be multiplied by minus one and the
resulting amount shall be refunded to the eligible individual by
the city of St. Paul. The executive director shall inform the
eligible individual of the refund amount in writing, and shall
notify the city of St. Paul. The city of St. Paul shall pay
this amount to the eligible individual within 30 days of
notification.
new text end

new text begin Subd. 4. new text end

new text begin Benefit amount. new text end

new text begin The eligible individual is
entitled to apply for an annuity, as further specified in
subdivision 7, and to receive a public employees police and fire
retirement plan retirement annuity computed based on the version
of Minnesota Statutes, chapter 353, in effect on the date that
the eligible individual terminated from St. Paul Fire Department
Relief Association employment.
new text end

new text begin Subd. 5. new text end [CALCULATION OF RESERVES; PAYMENT BY CITY OF ST.
PAUL.] new text begin The executive director of the Public Employees Retirement
Association shall compute the full required reserves for the
annuity determined under subdivision 4 using all applicable
actuarial assumptions for the public employees police and fire
retirement plan. This amount, after deducting the amount
received by the Public Employees Retirement Association under
subdivision 3, paragraph (b), if applicable, is to be paid to
the executive director of the Public Employees Retirement
Association in a lump sum by the city of St. Paul. The
executive director shall notify the chief administrative officer
of the city of St. Paul in writing of the payment amount
required under this subdivision. This notification shall be
made by the executive director within one month following the
receipt by the executive director of any amount required under
subdivision 3, paragraph (b), if applicable. The city of St.
Paul must pay the amount required under this subdivision within
30 days after receipt of the executive director's notification.
new text end

new text begin Subd. 6. new text end

new text begin Actions upon failure to pay. new text end

new text begin If the city of St.
Paul fails to transmit the amount required under subdivision 5
in a timely manner, or fails to make a timely refund under
subdivision 3, paragraph (c), if applicable, the executive
director of the Public Employees Retirement Association shall
notify the commissioner of finance of this nonpayment or
nonpayments, and the commissioner of finance shall deduct the
applicable amount or amounts from any state aid otherwise
payable to the city and transmit the amount required under
subdivision 5 to the executive director for deposit in the
public employees police and fire fund. If the city of St. Paul
fails to make a payment required under subdivision 3, paragraph
(c), if applicable, the commissioner of finance will make any
necessary refund, with reimbursement through the withholding of
aid, as stated in this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Annuity application. new text end

new text begin An eligible individual
described in subdivision 2 shall apply in writing on forms
provided by the Public Employees Retirement Association for the
annuity provided by this section. The application must be made
before January 1, 2007, and must include all necessary
documentation of the applicability of this section and any other
relevant information which the executive director may require.
new text end

new text begin Subd. 8. new text end

new text begin Service credit grant. new text end

new text begin Service in the public
employees police and fire retirement plan for the eligible
individual's employment period as a St. Paul firefighter shall
be granted following the filing of a valid application for an
annuity under subdivision 7 and receipt by the executive
director of any amount applicable under subdivision 3, paragraph
(b).
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