SF 1643

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; Public Employees Retirement Association; authorizing
application for a retirement annuity.

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

Section 1. new text begin PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE
TERMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) An eligible individual specified in paragraph (b)
is authorized to apply for a retirement annuity, provided necessary age and service
requirements are met, under Minnesota Statutes, section 353.29 or 353.30, as applicable,
as further specified under subdivision 2.
new text end

new text begin (b) An eligible individual is an individual who:
new text end

new text begin (1) was employed by Independent School District No. 535, Rochester, on October 6,
1993, and became a member of the Public Employees Retirement Association coordinated
plan;
new text end

new text begin (2) retired from Independent School District No. 535, Rochester, on December
31, 2003;
new text end

new text begin (3) was elected to the Rochester City Council on April 22, 2003, and sworn in on
May 5, 2003;
new text end

new text begin (4) was reelected to the Rochester City Council and took office in November 2004;
new text end

new text begin (5) continued to work for Olmsted County on a contract basis, while serving on
the city council;
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new text begin (6) elected under law then applicable to have Public Employees Retirement
Association coordinated plan coverage for the city council elected service; and
new text end

new text begin (7) terminated Independent School District No. 535, Rochester, employment but is
unable to commence receipt of a Public Employees Retirement Association coordinated
plan annuity because of the continuing Public Employees Retirement Association
coordinated plan coverage for the elected city council service and for Olmsted County.
new text end

new text begin Subd. 2. new text end

new text begin Retirement annuity. new text end

new text begin (a) Notwithstanding an irrevocable election to
participate in the Public Employees Retirement Association coordinated plan as an elected
official and continuation of elected service, an eligible individual under subdivision 1,
paragraph (b), is deemed to have terminated membership under Minnesota Statutes, section
new text begin 353.01, subdivision 11b new text end , following termination of the Olmsted County employment.
new text end

new text begin (b) If the requirements of paragraph (a) are satisfied, the eligible individual may
apply for a retirement annuity under Minnesota Statutes, section or , as
applicable. In computing the annuity, the Public Employees Retirement Association
must exclude salary due to the elected Rochester City Council service. Deferred annuity
augmentation under Minnesota Statutes, section , applies to this annuity.
new text end

new text begin Subd. 3. new text end

new text begin Treatment of Rochester City Council contributions to the Public
Employees Retirement Association. new text end

new text begin (a) All employee contributions to the Public
Employees Retirement Association coordinated plan by an eligible individual in
subdivision 1, paragraph (b), due to the elected Rochester City Council service, and all
corresponding employer contributions, must be determined.
new text end

new text begin (b) An eligible individual under subdivision 1, paragraph (b), must elect, within
one year of the effective date of this section or upon termination of elective service,
whichever is earlier, a refund under Minnesota Statutes, section new text begin 353.34, subdivision 2 new text end ,
of employee contributions determined under paragraph (a), or coverage by the public
employees defined contribution plan under Minnesota Statutes, chapter 353D, as further
specified in paragraph (c).
new text end

new text begin (c) If public employee defined contribution plan coverage is elected under paragraph
(b), contributions to that plan commence as of the first day of the pay period following
this election, and accumulated employee and employer contributions determined under
paragraph (a) must be transferred with six percent annual interest to an account for the
eligible individual in the public employees defined contribution plan.
new text end

new text begin (d) If no election is made by an eligible individual by the required date in paragraph
(b), the individual is assumed to have elected the refund indicated in paragraph (b).
new text end

new text begin (e) Upon an election under paragraph (b), or a mandatory refund under paragraph
(d), all rights in the Public Employees Retirement Association coordinated plan due to
elected Rochester City Council service are forfeited and may not be reestablished.
new text end

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

new text begin Section 1 is effective the day following final enactment.
new text end