SF 820

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; correctional employees 
  1.3             retirement plan of the Minnesota state retirement 
  1.4             system; transferring various employment positions in 
  1.5             the departments of corrections and human services from 
  1.6             coverage by the general state employees retirement 
  1.7             plan or the teachers retirement association to the 
  1.8             correctional employees retirement plan; amending 
  1.9             Minnesota Statutes 1994, sections 352.91, by adding 
  1.10            subdivisions; and 352.92, subdivision 2. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 352.91, is 
  1.13  amended by adding a subdivision to read: 
  1.14     Subd. 2a.  [SPECIAL TEACHERS.] "Covered correctional 
  1.15  service" also means service rendered by a state employee as a 
  1.16  special teacher employed by the department of corrections or by 
  1.17  the department of human services at a security unit, provided 
  1.18  that at least 75 percent of the employee's working time is spent 
  1.19  in direct contact with inmates or patients and the fact of this 
  1.20  direct contact is certified to the executive director by the 
  1.21  appropriate commissioner, unless the person elects to retain the 
  1.22  current retirement coverage under section 5. 
  1.23     Sec. 2.  Minnesota Statutes 1994, section 352.91, is 
  1.24  amended by adding a subdivision to read: 
  1.25     Subd. 3c.  [NURSING PERSONNEL.] (a) "Covered correctional 
  1.26  service" means service by a state employee in one of the 
  1.27  employment positions at a correctional facility or at the 
  1.28  Minnesota security hospital specified in paragraph (b), provided 
  2.1   that at least 75 percent of the employee's working time is spent 
  2.2   in direct contact with inmates or patients and the fact of this 
  2.3   direct contact is certified to the executive director by the 
  2.4   appropriate commissioner, unless the person elects to retain the 
  2.5   current retirement coverage under section 5. 
  2.6      (b) The employment positions are as follows: 
  2.7      (1) registered nurse - senior; 
  2.8      (2) registered nurse; 
  2.9      (3) registered nurse - principal; and 
  2.10     (4) clinical nurse specialist. 
  2.11     Sec. 3.  Minnesota Statutes 1994, section 352.91, is 
  2.12  amended by adding a subdivision to read: 
  2.13     Subd. 3d.  [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered 
  2.14  correctional service" means service by a state employee in one 
  2.15  of the employment positions at a correctional facility or at the 
  2.16  Minnesota security hospital specified in paragraph (b), provided 
  2.17  that at least 75 percent of the employee's working time is spent 
  2.18  in direct contact with inmates or patients and the fact of this 
  2.19  direct contact is certified to the executive director by the 
  2.20  appropriate commissioner, unless the person elects to retain the 
  2.21  current retirement coverage under section 5. 
  2.22     (b) The employment positions are as follows: 
  2.23     (1) corrections behavior therapist; 
  2.24     (2) corrections behavior therapist specialist; 
  2.25     (3) corrections inmate personnel specialist; 
  2.26     (4) corrections caseworkers; 
  2.27     (5) corrections caseworkers career; 
  2.28     (6) psych II; 
  2.29     (7) psych III; 
  2.30     (8) social work specialist; 
  2.31     (9) health program representative senior; 
  2.32     (10) behavior analyst 1; 
  2.33     (11) behavior analyst 2; 
  2.34     (12) psychologist 1; 
  2.35     (13) psychologist 2; 
  2.36     (14) recreation therapist, senior; 
  3.1      (15) recreation therapist, lead; 
  3.2      (16) rehabilitation counselor; 
  3.3      (17) social worker; 
  3.4      (18) social worker, senior; 
  3.5      (19) social worker specialist; 
  3.6      (20) library information research services specialist 
  3.7   senior; 
  3.8      (21) psychologist supervisor; and 
  3.9      (22) psychological services director. 
  3.10     Sec. 4.  Minnesota Statutes 1994, section 352.92, 
  3.11  subdivision 2, is amended to read: 
  3.12     Subd. 2.  [EMPLOYER CONTRIBUTIONS.] (a) In lieu of employer 
  3.13  contributions payable under section 352.04, subdivision 3, the 
  3.14  employer shall contribute for covered correctional employees an 
  3.15  amount equal to 6.27 6.99 percent of salary.  
  3.16     (b) By January 1 of each year, the board of directors shall 
  3.17  report to the legislative commission on pensions and retirement, 
  3.18  the chair of the committee on appropriations of the house of 
  3.19  representatives, and the chair of the committee on finance of 
  3.20  the senate on the amount raised by the employer and employee 
  3.21  contribution rates in effect and whether the total amount is 
  3.22  less than, the same as, or more than the actuarial requirement 
  3.23  determined under section 356.215. 
  3.24     Sec. 5.  [TEMPORARY PROVISION; ELECTION TO RETAIN 
  3.25  RETIREMENT COVERAGE.] 
  3.26     Subdivision 1.  [GENERAL STATE EMPLOYEE RETIREMENT COVERAGE 
  3.27  RETENTION ELECTION.] An employee in a position specified as 
  3.28  qualifying under sections 1 to 3 must have retirement coverage 
  3.29  transferred from the general state employees retirement plan of 
  3.30  the Minnesota state retirement system or the teachers retirement 
  3.31  association to the correctional employees retirement plan of the 
  3.32  Minnesota state retirement system, effective on the first day of 
  3.33  the first pay period beginning after June 30, 1995, unless the 
  3.34  employee elects to retain the person's current retirement 
  3.35  coverage.  The election to retain coverage must be made in 
  3.36  writing by the person on a form prescribed by the executive 
  4.1   director of the Minnesota state retirement system and must be 
  4.2   filed with the executive director no later than December 31, 
  4.3   1995. 
  4.4      Subd. 2.  [REFUND IN CERTAIN INSTANCES.] The amount by 
  4.5   which employee contributions required by Minnesota Statutes, 
  4.6   section 352.92, subdivision 1, made after the first day of the 
  4.7   first full pay period beginning after June 30, 1995, exceed the 
  4.8   employee contributions otherwise payable, as provided in 
  4.9   Minnesota Statutes, sections 352.04, subdivision 2 or 354.42, 
  4.10  subdivision 2, as applicable, must be refunded within 60 days of 
  4.11  the date of the election to retain retirement coverage, plus 
  4.12  interest at the rate of one-half of one percent per month or 
  4.13  portion of a month for the period from the first day of the 
  4.14  first full pay period beginning after June 30, 1995, to the date 
  4.15  that the refund is paid. 
  4.16     Subd. 3.  [TRANSFER OF REMAINING CONTRIBUTIONS.] The amount 
  4.17  of employee contributions made by a person electing to retain 
  4.18  retirement coverage that is not refunded under subdivision 2, 
  4.19  plus .7084 percent per month or portion of a month for the 
  4.20  period from the first day of the first full pay period beginning 
  4.21  after June 30, 1995, to the date the refund is paid, must be 
  4.22  transferred by the appropriate executive director to the general 
  4.23  state employees retirement fund as soon as is practicable 
  4.24  following the election and must be accompanied by an amount 
  4.25  representing the applicable employer contribution.  The employer 
  4.26  contribution for members of the general state employees 
  4.27  retirement plan must be determined by multiplying the amount of 
  4.28  the unrefunded member contributions plus interest by the factor 
  4.29  1.02.  The employer contribution for members of the teachers 
  4.30  retirement association is an amount equal to the unrefunded 
  4.31  member contribution.  
  4.32     Subd. 4.  [IRREVOCABLE RETENTION ELECTION.] The election to 
  4.33  retain retirement coverage is irrevocable once filed with the 
  4.34  executive director.  A failure to make the election to retain 
  4.35  coverage by January 1, 1996, is an irrevocable agreement by the 
  4.36  employee to the retirement coverage change. 
  5.1      Sec. 6.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
  5.2   PERSONS.] 
  5.3      Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE 
  5.4   COVERAGE.] (a) An employee who has future retirement coverage 
  5.5   transferred to the correctional employees retirement plan under 
  5.6   sections 1 to 3, and who does not elect to retain general state 
  5.7   employee retirement plan or teachers retirement association 
  5.8   coverage under section 5, is entitled to elect to obtain prior 
  5.9   service credit for eligible state service performed on or after 
  5.10  July 1, 1974, and before the first day of the first full pay 
  5.11  period beginning after June 30, 1995, with the department of 
  5.12  corrections or with the department of human services at the 
  5.13  Minnesota security hospital. 
  5.14     (b) Eligible state service with the department of 
  5.15  corrections or with the department of human services is any 
  5.16  prior period of continuous service on or after July 1, 1974, 
  5.17  performed as an employee of the department of corrections or of 
  5.18  the department of human services that would have been eligible 
  5.19  for the correctional employees retirement plan coverage under 
  5.20  sections 1 to 3, if that prior service had been performed after 
  5.21  the first day of the first full pay period beginning after June 
  5.22  30, 1995, rather than before that date.  Service is continuous 
  5.23  if there has been no period of discontinuation of eligible state 
  5.24  service for a period greater than 180 calendar days. 
  5.25     (c) The department of corrections or the department of 
  5.26  human services, whichever applies, shall certify eligible state 
  5.27  service to the executive director of the Minnesota state 
  5.28  retirement system. 
  5.29     Subd. 2.  [PAYMENT FOR PRIOR SERVICE.] (a) An employee 
  5.30  electing to obtain prior service credit under subdivision 1 must 
  5.31  pay an additional employee contribution for that prior service 
  5.32  except for any period of time that the employee was a member of 
  5.33  the basic program of the teachers retirement association.  The 
  5.34  additional member contribution is the contribution differential 
  5.35  percentage applied to the actual salary paid to the employee 
  5.36  during the period of the prior eligible state service, plus 
  6.1   interest at the rate of six percent per annum, compounded 
  6.2   annually.  The contribution differential percentage is the 
  6.3   difference between 4.9 percent of salary and the applicable 
  6.4   employee contribution rate of the general state employees 
  6.5   retirement plan or the teachers retirement association during 
  6.6   the prior eligible state service. 
  6.7      (b) The additional member contribution must be paid only in 
  6.8   a lump sum.  Payment must accompany the election to obtain prior 
  6.9   service credit.  No election or payment may be made by the 
  6.10  person or accepted by the executive director after September 30, 
  6.11  1996. 
  6.12     Subd. 3.  [TRANSFER OF PRIOR MEMBER AND REGULAR EMPLOYER 
  6.13  ACCUMULATED CONTRIBUTIONS AND INTEREST.] (a) Accumulated 
  6.14  employee contributions for any period of eligible state service 
  6.15  in the general state employees retirement fund of the Minnesota 
  6.16  state retirement system or in the teachers retirement 
  6.17  association as applicable, plus interest at the rate of six 
  6.18  percent per annum, compounded annually, by an employee electing 
  6.19  to obtain prior service credit must be transferred by the 
  6.20  appropriate executive director from the general state employees 
  6.21  retirement fund or the teachers retirement fund to the 
  6.22  correctional employees retirement fund. 
  6.23     (b) The transfer of the accumulated member contributions 
  6.24  plus interest must be made within 60 days after the election to 
  6.25  obtain prior service credit. 
  6.26     (c) As a corresponding employer contribution transfer 
  6.27  amount, an amount equal to employee contributions plus interest, 
  6.28  as determined in paragraph (a), must be transferred from the 
  6.29  general state employees retirement fund or the teachers 
  6.30  retirement fund, as appropriate, to the correctional employees 
  6.31  retirement fund.  Additional employer contributions may not be 
  6.32  transferred. 
  6.33     (d) Transfer of the employer contribution plus interest 
  6.34  must accompany the transfer of employee contributions plus 
  6.35  interest. 
  6.36     Subd. 4.  [EFFECT OF THE TRANSFER OF CONTRIBUTIONS.] Upon 
  7.1   the transfer of accumulated employee contributions, employer 
  7.2   contributions, and interest for a person electing to obtain 
  7.3   prior service credit under subdivision 1, service credit in the 
  7.4   general state employees retirement plan of the Minnesota state 
  7.5   retirement system or in the teachers retirement association for 
  7.6   the time covered by the service transferred is forfeited. 
  7.7      Subd. 5.  [COUNSELING.] (a) The commissioners of 
  7.8   corrections, human services, and employee relations, and the 
  7.9   executive directors of the Minnesota state retirement system and 
  7.10  teachers retirement association have the joint responsibility of 
  7.11  providing affected employees of the department of corrections or 
  7.12  the department of human services with appropriate and timely 
  7.13  retirement and related benefit counseling. 
  7.14     (b) Counseling must include the anticipated impact of the 
  7.15  retirement coverage change on the person's future retirement 
  7.16  benefit amounts, future retirement eligibility, future 
  7.17  applicability of mandatory retirement laws, and future 
  7.18  postemployment insurance coverage. 
  7.19     (c) The commissioners of corrections and human services 
  7.20  must consult with the appropriate collective bargaining agents 
  7.21  of the affected employees regarding the content, form, and 
  7.22  timing of the counseling required by this section. 
  7.23     Sec. 7.  [TRANSITIONAL PROVISION; RETENTION OF CERTAIN 
  7.24  RIGHTS.] 
  7.25     (a) Nothing in this act may be considered to restrict the 
  7.26  entitlement of a person under state law to repay a previously 
  7.27  taken refund of employee or member contributions to a Minnesota 
  7.28  public pension plan if all qualifying requirements are met. 
  7.29     (b) The period of correctional employees retirement plan 
  7.30  contributions, plus interest, must be restored upon the 
  7.31  repayment of the appropriate refund amount if the service was 
  7.32  correctional employees retirement plan covered service on the 
  7.33  date when the service was rendered or on the date when the 
  7.34  refund was taken. 
  7.35     Sec. 8.  [EARLY RETIREMENT INCENTIVE.] 
  7.36     This section applies to an employee who has future 
  8.1   retirement coverage transferred to the correctional employee 
  8.2   retirement plan under sections 1 to 3, and who is at least 55 
  8.3   years old on the effective date of sections 1 to 3.  That 
  8.4   employee may participate in a health insurance early retirement 
  8.5   incentive available under the terms of a collective bargaining 
  8.6   agreement in effect on the day before the effective date of 
  8.7   sections 1 to 3, notwithstanding any provision of the collective 
  8.8   bargaining agreement that limits participation to persons who 
  8.9   select the option during the payroll period in which their 55th 
  8.10  birthday occurs.  A person selecting the health insurance early 
  8.11  retirement incentive under this section must retire by the later 
  8.12  of September 30, 1995, or the first time at which the person has 
  8.13  at least three years of covered correctional service. 
  8.14     Sec. 9.  [EFFECTIVE DATE.] 
  8.15     Sections 1 to 8 are effective on the first day of the first 
  8.16  full pay period beginning after June 30, 1995.