SF 737

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; permitting payment of omitted 
  1.3             salary deductions to purchase nine months of service 
  1.4             credit in the public employees retirement association. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [PURCHASE OF SERVICE FOR UNCREDITED SERVICE AS 
  1.7   A MEMBER OF THE ST. PAUL CITY COUNCIL.] 
  1.8      Subdivision 1.  [APPLICABILITY.] This section applies to a 
  1.9   person: 
  1.10     (1) who was born September 10, 1938; 
  1.11     (2) who began service as a member of the St. Paul city 
  1.12  council in 1970; 
  1.13     (3) who was eligible for membership in the public employees 
  1.14  retirement association for the period from July 1, 1974, to 
  1.15  March 31, 1975; 
  1.16     (4) for whom no employer contributions were paid and no 
  1.17  employee contributions deducted by the city of St. Paul for the 
  1.18  period described in clause (3); and 
  1.19     (5) who retired September 1, 2000, and is currently 
  1.20  receiving retirement annuities from the St. Paul teachers 
  1.21  retirement fund association, the public employees retirement 
  1.22  association, and the Minnesota state retirement system. 
  1.23     Subd. 2.  [PURCHASE OF SERVICE.] A person described in 
  1.24  subdivision 1 may purchase service credit in the public 
  1.25  employees retirement association for the period described in 
  2.1   subdivision 1, clause (3), by filing an application with the 
  2.2   association, on a form prescribed by the association, within 30 
  2.3   days of the effective date of this section and by paying the 
  2.4   employee share of the actuarial cost of the additional service 
  2.5   credit, $4,419.62, to the association before July 1, 2001.  Upon 
  2.6   receipt of the employee share of the actuarial cost of the 
  2.7   additional service credit, the association shall adjust the 
  2.8   retirement annuity of the person described in subdivision 1 to 
  2.9   reflect the additional service credit.  The association shall 
  2.10  also pay the person described in subdivision 1 a lump sum amount 
  2.11  equal to the difference between the annuity received from the 
  2.12  association from September 1, 2000, to the date of payment for 
  2.13  the service credit and the amount the person would have received 
  2.14  with the additional service credit purchased under this 
  2.15  section.  Upon receipt of the application, the executive 
  2.16  director of the association shall notify the city of St. Paul of 
  2.17  its obligation to pay the employer's share of the cost, 
  2.18  $9,092.74, before July 1, 2001.  If the city does not pay the 
  2.19  required amount by that date, the executive director shall 
  2.20  notify the commissioner of finance of that failure, and the 
  2.21  commissioner shall deduct that amount from any state aid or 
  2.22  appropriation payable to the city of St. Paul, plus interest on 
  2.23  that amount at the rate of 1.5 percent a month or portion of a 
  2.24  month from July 1, 2001, to the date of the deduction. 
  2.25     Sec. 2.  [EFFECTIVE DATE.] 
  2.26     Section 1 is effective the day following final enactment.