SF 1579

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minnesota state retirement 
  1.3             system correctional employees retirement plan; 
  1.4             clarifying the payment of the employee contribution 
  1.5             differential for prior correctional service; amending 
  1.6             Laws 1996, chapter 408, article 8, section 22, 
  1.7             subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Laws 1996, chapter 408, article 8, section 22, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [PAYMENT FOR PRIOR SERVICE.] (a) An employee 
  1.12  electing to obtain prior service credit under subdivision 1 must 
  1.13  pay an additional employee contribution for that prior service 
  1.14  except for any period of time that the employee was a member of 
  1.15  the basic program of the teachers retirement association.  The 
  1.16  additional member contribution is the contribution differential 
  1.17  percentage applied to the actual salary paid to the employee 
  1.18  during the period of the prior eligible state service, plus 
  1.19  interest at the rate of six percent per annum, compounded 
  1.20  annually.  The contribution differential percentage is the 
  1.21  difference between 4.9 percent of salary and the applicable 
  1.22  employee contribution rate of the general state employees 
  1.23  retirement plan or the teachers retirement association during 
  1.24  the prior eligible state service.  With respect to employee 
  1.25  contributions made to the teachers retirement association after 
  1.26  July 1, 1994, at the rate of 6.5 percent of salary, the amount 
  2.1   of the difference between 6.5 percent of salary and 4.9 percent 
  2.2   of salary, plus interest at the annual compound rate of six 
  2.3   percent, must be credited against any contribution differential 
  2.4   for the period of transferred service credit before July 1, 1994.
  2.5      Sec. 2.  [EFFECTIVE DATE.] 
  2.6      (a) Section 1 is effective the day following final 
  2.7   enactment. 
  2.8      (b) The credit provided in section 1 also applies to prior 
  2.9   service payments made before the effective date of section 1 
  2.10  under Laws 1996, chapter 408, article 8, section 22, subdivision 
  2.11  2, and the amount of any applicable payment must be recalculated 
  2.12  by the executive director of the Minnesota state retirement 
  2.13  system and a refund of any overpayment, plus interest at an 
  2.14  annual compound rate of six percent, must be paid to applicable 
  2.15  employees as soon as is practicable.