SF 996

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

A bill for an act
relating to retirement; Minnesota State Retirement
System; modifying the definition of allowable service
to include time on strike; amending Minnesota Statutes
2004, section 352.01, subdivision 11.

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

Section 1.

Minnesota Statutes 2004, section 352.01,
subdivision 11, is amended to read:

Subd. 11.

Allowable service.

"Allowable service" means:

(1) Service by an employee for which on or before July 1,
1957, the employee was entitled to allowable service credit on
the records of the system by reason of employee contributions in
the form of salary deductions, payments in lieu of salary
deductions, or in any other manner authorized by Minnesota
Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.

(2) Service by an employee for which on or before July 1,
1961, the employee chose to obtain credit for service by making
payments to the fund under Minnesota Statutes 1961, section
352.24.

(3) Except as provided in clauses (8) and (9), service by
an employee after July 1, 1957, for any calendar month in which
the employee is paid salary from which deductions are made,
deposited, and credited in the fund, including deductions made,
deposited, and credited as provided in section 352.041.

(4) Except as provided in clauses (8) and (9), service by
an employee after July 1, 1957, for any calendar month for which
payments in lieu of salary deductions are made, deposited, and
credited in the fund, as provided in section 352.27 and
Minnesota Statutes 1957, section 352.021, subdivision 4.

For purposes of clauses (3) and (4), except as provided in
clauses (8) and (9), any salary paid for a fractional part of
any calendar month, including the month of separation from state
service, is deemed the compensation for the entire calendar
month.

(5) The period of absence from their duties by employees
who are temporarily disabled because of injuries incurred in the
performance of duties and for which disability the state is
liable under the workers' compensation law until the date
authorized by the director for the commencement of payments of a
total and permanent disability benefit from the retirement fund.

(6) Service covered by a refund repaid as provided in
section 352.23 or 352D.05, subdivision 4, except service
rendered as an employee of the adjutant general for which the
person has credit with the federal civil service retirement
system.

(7) Service before July 1, 1978, by an employee of the
transit operating division of the Metropolitan Transit
Commission or by an employee on an authorized leave of absence
from the Transit Operating Division of the Metropolitan Transit
Commission who is employed by the labor organization which is
the exclusive bargaining agent representing employees of the
Transit Operating Division, which was credited by the
Metropolitan Transit Commission-Transit Operating Division
employees retirement fund or any of its predecessor plans or
funds as past, intermediate, future, continuous, or allowable
service as defined in the Metropolitan Transit
Commission-Transit Operating Division employees retirement fund
plan document in effect on December 31, 1977.

(8) Service after July 1, 1983, by an employee who is
employed on a part-time basis for less than 50 percent of full
time, for which the employee is paid salary from which
deductions are made, deposited, and credited in the fund,
including deductions made, deposited, and credited as provided
in section 352.041 or for which payments in lieu of salary
deductions are made, deposited, and credited in the fund as
provided in section 352.27 shall be credited on a fractional
basis either by pay period, monthly, or annually based on the
relationship that the percentage of salary earned bears to a
full-time salary, with any salary paid for the fractional
service credited on the basis of the rate of salary applicable
for a full-time pay period, month, or a full-time year. For
periods of part-time service that is duplicated service credit,
section 356.30, subdivision 1, clauses (i) and (j), govern.

Allowable service determined and credited on a fractional
basis shall be used in calculating the amount of benefits
payable, but service as determined on a fractional basis must
not be used in determining the length of service required for
eligibility for benefits.

(9) Any period of authorized leave of absence without pay
that does not exceed one year and for which the employee
obtained credit by payment to the fund in lieu of salary
deductions. To obtain credit, the employee shall pay an amount
equal to the employee and employer contribution rate in section
352.04, subdivisions 2 and 3, multiplied by the employee's
hourly rate of salary on the date of return from leave of
absence and by the days and months of the leave of absence
without pay for which the employee wants allowable service
credit. The employing department, at its option, may pay the
employer amount on behalf of its employees. Payments made under
this clause must include interest at an annual rate of 8.5
percent compounded annually from the date of termination of the
leave of absence to the date payment is made unless payment is
completed within one year of the return from leave of absence.

(10) MS 2002 (Expired)

(11) (Expired, 2002 c 392 art 2 s 4)

new text begin (12) Any period of time while on strike without pay that
does not exceed one year for which the employee obtained credit
by payment to the fund in lieu of salary deductions. To obtain
credit, the employee shall pay an amount equal to the employee
and employer contributions rate in section 352.04, subdivisions
2 and 3, multiplied by the employee's hourly rate of salary on
the date of return from the strike and by the days and months of
the strike without pay for which the employee wants allowable
service credit. The employing department, at its option, may
pay the employer amount on behalf of its employees. Payments
made under this clause must include interest at an annual rate
of 8.5 percent compounded annually from the last day of the
strike to the date payment is made, unless payment is completed
within one year of the last day of the strike.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective retroactively from March 1, 2004.
new text end