HF 2937

as introduced - 91st Legislature (2019 - 2020) Posted on 02/11/2020 03:39pm

A bill for an act
relating to retirement; public employees police and fire retirement plan; service
credit purchase for period of uncredited service.

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

Section 1. new text begin CREDIT FOR SERVICE IN PERA POLICE AND FIRE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Service credit purchase. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
353.27, subdivision 12, an eligible person described in paragraph (b) is entitled to purchase
allowable service in the public employees police and fire retirement plan under Minnesota
Statutes, sections 353.63 to 353.68, for the period described in paragraph (b), clause (3),
upon making the payment described in subdivision 2 to the public employees police and
fire fund.
new text end

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

new text begin (1) was hired by the city of Maplewood as a casual part-time firefighter, firefighter/EMT,
or firefighter/paramedic after February 14, 2011, the effective date of resolutions approved
by the city council of the city of Maplewood requesting coverage by the public employees
police and fire retirement plan for casual part-time firefighters, as permitted by Minnesota
Statutes, section 353.64, subdivision 2;
new text end

new text begin (2) received salary in excess of the monthly threshold then in effect under Minnesota
Statutes, section 353.01, subdivision 2b, paragraph (a), clause (1), so was not excluded from
coverage by the public employees police and fire retirement plan under this provision or
any other provision of Minnesota Statutes, section 353.01, subdivision 2b;
new text end

new text begin (3) received salary for a period of service for the city of Maplewood from which the city
of Maplewood failed to deduct employee contributions as required by Minnesota Statutes,
section 353.65, subdivision 2;
new text end

new text begin (4) has not accepted payment from the city of Maplewood in lieu of service credit under
the public employees police and fire retirement plan for the period described in clause (3);
and
new text end

new text begin (5) no later than December 31, 2018, has made a request to the executive director of the
Public Employees Retirement Association to purchase allowable service pursuant to this
section for the period of service described in clause (3).
new text end

new text begin (c) Upon receiving the payment described in subdivision 2, the executive director shall
credit the eligible person with allowable service for the period of service described in
paragraph (b), clause (3). The allowable service credit purchased under this section shall
not be used for the purpose of determining a disability benefit under Minnesota Statutes,
section 353.656.
new text end

new text begin Subd. 2. new text end

new text begin Payment by eligible person. new text end

new text begin If the eligible person elects to purchase allowable
service credit as described in subdivision 1, the eligible person shall pay to the public
employees police and fire fund an amount equal to the total amount of the employee
contributions that the eligible person would have made to the public employees police and
fire fund based on the eligible person's total salary for the period of service described in
subdivision 1, paragraph (b), clause (3), plus interest, compounded annually, at the applicable
annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 3, from the
end of the year in which the contributions would have been made to the date on which the
payment is made. The amount of the required payment shall be determined by the executive
director of the Public Employees Retirement Association, who shall notify the eligible
person regarding the amount and the basis for determining the amount. Payment must be
made by the eligible person in a lump sum within 90 days of the effective date of this
subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Payment by city of Maplewood. new text end

new text begin Upon payment by the eligible person of the
amount required by subdivision 2, the city of Maplewood shall pay to the public employees
police and fire fund an amount equal to the total amount of the employer contributions that
would have been made to the public employees police and fire fund based on the eligible
person's total salary for the period of service described in subdivision 1, paragraph (b),
clause (3), plus interest, compounded annually, at the applicable annual rate or rates specified
in Minnesota Statutes, section 356.59, subdivision 3, from the end of the year in which the
contributions would have been made to the date on which the payment is made. The executive
director shall notify the city of Maplewood regarding the amount and the basis for
determining the amount. The payment shall be made within 60 days following receipt by
the public employees police and fire fund of the eligible person's payment under subdivision
2.
new text end

new text begin Subd. 4. new text end

new text begin Collection of unpaid amounts. new text end

new text begin If the city of Maplewood fails to make all or
any portion of the payment required by subdivision 3, the executive director of the Public
Employees Retirement Association shall follow the procedures in Minnesota Statutes,
section 353.28, subdivision 6, to collect the amount not paid.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin Subdivisions 1, 2, and 4 are effective
the day following final enactment. Subdivision 3 is effective the day after the governing
body of the city of Maplewood and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end