SF 1398

as introduced - 87th Legislature (2011 - 2012) Posted on 06/13/2012 11:15am

A bill for an act
relating to retirement; general employees retirement plan of Public Employees
Retirement Association; authorizing purchase of service and salary credit
for certain former employees of Babbitt and Buhl for eligible unreported
employment.

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

Section 1. new text begin PERA-GENERAL; BABBITT AND BUHL SERVICE AND SALARY
CREDIT PURCHASE AUTHORIZATION IN CERTAIN CASES.
new text end

new text begin (a) An eligible person described in paragraph (b) is eligible to purchase from the
general employees retirement plan of the Public Employees Retirement Association
allowable service credit and salary credit for the period of uncredited prior employment
and salary specified in paragraph (c) by making the payment required under paragraph (d).
new text end

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

new text begin (1) was born on November 10, 1957;
new text end

new text begin (2) was employed as a part-time police officer by the city of Buhl from July 1988
until November 1996;
new text end

new text begin (3) was employed as a part-time police officer by Embarrass Township from March
1992 until August 1997;
new text end

new text begin (4) was employed as a part-time police officer by the City of Babbitt from April
1992 until September 1992; and
new text end

new text begin (5) was employed as a full-time police officer by the city of Babbitt since October 4,
1992, and as such is a member of the public employees police and fire retirement plan.
new text end

new text begin (c) The periods of unreported employment and salary that qualified for coverage by
the general employees retirement plan of the Public Employees Retirement Association
and eligible for purchase are employment by the city of Buhl from October 1989 until
November 1996 and employment by the city of Babbitt as a part-time police officer from
April 1992 until September 1992.
new text end

new text begin (d) The allowable service and salary credit purchase payment amount must be
calculated under Minnesota Statutes, section 356.551. Of the total payment amount,
the eligible person is obligated to pay the amount of member contributions that the
eligible person would have paid by deduction to the coordinated program of the general
employees retirement plan of the Public Employees Retirement Association if made in
a timely fashion, plus annual compound interest at the rate of 8.5 percent from the date
that the contribution should have been made until the date that the contribution equivalent
payment is made. The balance of the total payment amount must be allocated between
the city of Buhl and the city of Babbitt on the basis of the additional retirement benefit
associated with the applicable period of past unreported eligible employment. The city
of Buhl and the city of Babbitt shall make their payments within 30 days of the date on
which the executive director of the Public Employees Retirement Association certifies that
the eligible person has paid the equivalent member contribution payment and interest. If a
city fails to make a timely payment, the executive director shall collect the unpaid amount
under Minnesota Statutes, section 353.28.
new text end

new text begin (e) The eligible person shall provide the executive director of the Public Employees
Retirement Association with any necessary documentation of the applicability of this
section that the executive director requests.
new text end

new text begin (f) The authority of the eligible person to make the equivalent member contribution
and interest payment under this section expires on the earlier of July 1, 2012, or the date
on which the eligible person finally terminates public employment covered by Minnesota
Statutes, chapter 353.
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