SF 780

as introduced - 88th Legislature (2013 - 2014) Posted on 04/03/2013 04:11pm

A bill for an act
relating to retirement; Public Employees Retirement Association; permitting a
Wright County Highway Department employee to purchase service credit for a
period of omitted contributions.

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; WRIGHT COUNTY HIGHWAY DEPARTMENT
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 March 19, 1959;
new text end

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

new text begin (3) shifted from temporary to full-time employment with the highway department
in April 2007; and
new text end

new text begin (4) was not reported by Wright County for retirement coverage by and membership
in the general employees retirement plan of the Public Employees Retirement Association
until March 2012.
new text end

new text begin (c) The period of uncredited service authorized for purchase is the period from
April 2007 through December 2008, 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 by Wright County, 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) 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 Wright
County is the balance of the full actuarial value prior service credit purchase payment
amount determined under Minnesota Statutes, section 356.551, 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 county 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 county 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 county purchase payment amount is received by the Public Employees
Retirement Association. If the county purchase payment amount is not paid to the Public
Employees Retirement Association 90 days after the receipt of the eligible person's
payment, the executive director shall notify the commissioner of management and budget
and the commissioner of revenue of that unpaid obligation and the unpaid obligation must
be deducted from any state aid otherwise payable to the county, plus interest.
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, 2014, or upon the termination from public employment under Minnesota Statutes,
section 353.01, subdivision 11a, whichever occurs earlier.
new text end