HF 2941

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

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; authorizing service credit purchase; amending Minnesota Statutes
2004, section 352.91, subdivision 3d.

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

Section 1.

Minnesota Statutes 2004, section 352.91, subdivision 3d, is amended to read:

Subd. 3d.

Other correctional personnel.

(a) "Covered correctional service" means
service by a state employee in one of the employment positions at a correctional facility or
at the Minnesota Security Hospital specified in paragraph (b), provided that at least 75
percent of the employee's working time is spent in direct contact with inmates or patients
and the fact of this direct contact is certified to the executive director by the appropriate
commissioner, unless the person elects to retain the current retirement coverage under
Laws 1996, chapter 408, article 8, section 21.

(b) The employment positions are as follows: baker, new text begin central services administrative
specialist intermediate, new text end chemical dependency counselor supervisor, chief cook, cook,
cook coordinator, corrections behavior therapist, corrections behavior therapist specialist,
corrections parent education coordinator, corrections security caseworker, corrections
security caseworker career, corrections teaching assistant, dentist, electrician supervisor,
general repair worker, library/information research services specialist, library/information
research services specialist senior, plumber supervisor, psychologist 3, recreation therapist,
recreation therapist coordinator, recreation program assistant, recreation therapist senior,
deleted text begin stores clerk senior deleted text end , water treatment plant operator, work therapy technician, work therapy
assistant, work therapy program coordinator.

(c) "Covered correctional service" also means service as the director or as an
assistant group supervisor of the Phoenix/Pomiga treatment/behavior change program of
the Department of Corrections.

new text begin (d) "Covered correctional service" also means service between April 25, 1990,
through September 7, 1994, as a stores clerk at the Minnesota Correctional Facility -
St. Cloud.
new text end

Sec. 2. new text begin COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN PERSONS.
new text end

new text begin Subdivision 1. 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 section 1, paragraph (d), 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
section 1, paragraph (d), 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 2. Payment for past service must be completed by June
30, 2006.
new text end

new text begin Subd. 2. 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 1, 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, plus interest on the total amount at the rate of 8.5 percent per
annum, compounded annually from June 1, 1992, to the date on which the past service
payment is made. 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 25, 1990, through September 7, 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, 2006.
new text end

new text begin Subd. 3. 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 accrued liability funding ratio applicable for active general plan employees,
multiplied by 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 356.214, 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. 4. new text end

new text begin Required employer payment. new text end

new text begin If the employee makes the payment
required under subdivision 2, the executive director shall determine the full actuarial value
of the service credit transfer, under assumptions specified in Minnesota Statutes, section
356.551, and this value must be multiplied by the accrued liability funding ratio for active
correctional plan employees. From this amount, the executive director shall subtract the
amount paid under subdivision 2 and the amount transferred under subdivision 3. The
remainder, if positive, shall be billed to the department of corrections, which shall pay this
amount within 30 days of notification by the executive director.
new text end

new text begin Subd. 5. new text end

new text begin Effect of the asset transfer. new text end

new text begin Upon transfer of assets in subdivision 3,
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. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are affective the day following final enactment.
new text end