HF 3229

as introduced - 88th Legislature (2013 - 2014) Posted on 03/20/2014 02:06pm

A bill for an act
relating to retirement; authorizing purchase of service credit from the public
employees retirement association for omitted service.

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

Section 1. new text begin PERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED
CONTRIBUTION PERIOD; HENNEPIN COUNTY MEDICAL CENTER
EMPLOYEE.
new text end

new text begin (a) Notwithstanding any provision of law to the contrary, an eligible person
described in paragraph (b) is entitled to purchase from the general employees retirement
plan of the Public Employees Retirement Association allowable service credit under
Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member
deductions described in paragraph (c).
new text end

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

new text begin (1) was born on July 10, 1955;
new text end

new text begin (2) is a current employee of the Hennepin County Medical Center, covered by the
general employees retirement plan of the Public Employees Retirement Association;
new text end

new text begin (3) has worked for the medical director of the hospital since March, 1986; and
new text end

new text begin (4) was not reported for retirement coverage and membership in the general
employees retirement plan of the Public Employees Retirement Association between
May 30, 1986, and April 3, 1995.
new text end

new text begin (c) The period of uncredited service authorized for purchase is the period from
May 30, 1986 and April 3, 1995, during which no member contributions for the general
employees retirement plan of the Public Employees Retirement Association were deducted
from the eligible person's salary, and which could not be corrected through the Public
Employees Retirement Association omitted contribution provision due to a three-year
time limit in the provision.
new text end

new text begin (d) Minnesota Statutes, section 356.551, applies to this purchase, except that the
purchase payment amount payable by the eligible person is the employee contributions that
should have been made, plus 8.5 percent interest compounded annually from the date each
deduction should have occurred, until the date paid to the Public Employees Retirement
Association. The purchase payment amount payable by Hennepin County Medical Center
is the balance of the full actuarial value prior service credit purchase payment amount as
of the first day of the month next following the receipt of the eligible person's payment that
is remaining after deducting the purchase payment amount payable by the eligible person.
new text end

new text begin (e) The payment amount due from the Hennepin County Medical Center under
paragraph (d) must be made on or before the 15th of the month next following the receipt
of the eligible person's payment under paragraph (d). If the Hennepin County Medical
Center purchase payment amount is not paid in a timely fashion, the amount due accrues
compound monthly interest at the rate of 0.71 percent per month from the first day of
the month next following the receipt of the eligible person's payment until the purchase
payment amount is received by the Public Employees Retirement Association.
new text end

new text begin (f) The eligible person must provide the executive director of the Public Employees
Retirement Association with any relevant requested information pertaining to this service
credit purchase.
new text end

new text begin (g) Authority to make a service credit purchase under this section expires on June
30, 2015, or upon the termination from public employment under Minnesota Statutes,
section 353.01, subdivision 11a, whichever occurs earlier.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end