Minnesota Legislature
HF 2702
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/16/2006 |
Current Version - as introduced
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A bill for an act
relating to retirement; Public Employees Retirement Association privatizations;
revising augmentation rates provided to privatized employees for privatizations
enacted after July 25, 2005; amending Minnesota Statutes 2004, section 353F.04.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 353F.04, is amended to read:
353F.04 AUGMENTATION INTEREST deleted text begin RATEdeleted text end new text begin RATESnew text end FOR TERMINATED
MEDICAL new text begin OR OTHER PUBLIC EMPLOYING UNITnew text end FACILITY EMPLOYEES.
new text begin Subdivision 1. new text end
new text begin Enhanced augmentation rates. new text end
new text begin (a) new text end The deferred annuity of
a terminated medical facility or other public employing unit employee is subject to
augmentation deleted text begin in accordance withdeleted text end new text begin undernew text end section 353.71, subdivision 2, of the edition of
Minnesota Statutes published in the year in which the privatization occurred, except that
the rate of deleted text begin interest for this purposedeleted text end new text begin augmentationnew text end is new text begin as specified in paragraph (b) or (c),
whichever is applicable.
new text end
new text begin (b) This paragraph applies if the legislation adding the medical facility or other
employing unit to section 353F.02, subdivision 4 or 5, as applicable, was enacted before
July 26, 2005, and became effective before January 1, 2007. For a terminated medical
facility or other public employing unit employee, the augmentation rate is new text end 5.5 percent
compounded annually until January 1 following the year in which deleted text begin suchdeleted text end new text begin thenew text end person attains
age 55. From that date to the effective date of retirement, the new text begin augmentation new text end rate is 7.5
percentnew text begin compounded annuallynew text end . deleted text begin These
deleted text end
new text begin (c) If paragraph (b) is not applicable, the augmentation rate is four percent
compounded annually until January 1, following the year in which the person attains age
55. From that date to the effective date of retirement, the augmentation rate is six percent
compounded annually.new text end
new text begin Subd. 2. new text end
new text begin Exceptions. new text end
new text begin Thenew text end increased augmentation rates deleted text begin are no longer applicable for
any time afterdeleted text end new text begin specified in subdivision 1 do not apply ifnew text end the terminated medical facility
or other public employing unit employeenew text begin :
new text end
new text begin (1)new text end becomes covered again by a retirement deleted text begin funddeleted text end new text begin plannew text end enumerated in section 356.30,
subdivision 3deleted text begin . These increased deferred annuity augmentation rates do not apply to a
terminated transferred medical facility or other public employing unit employee whodeleted text end new text begin ; or
new text end
new text begin (2)new text end begins receipt of a retirement annuity while employed by the employer which
assumed operations of the medical facility or other public employing unit or purchased the
medical facility or other public employing unit.
Sec. 2. new text begin EFFECTIVE DATE.
new text end
new text begin
Section 1 is effective retroactively from July 25, 2005.
new text end