SF 2140

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/20/2023 09:57am

A bill for an act
relating to retirement; Public Employees Retirement Association; permitting the
transfer of service credit from the general employees retirement plan to the police
and fire retirement plan for two employees of the Metropolitan Airports
Commission.

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

Section 1. new text begin TRANSFER OF PAST PERA GENERAL PLAN SERVICE CREDIT TO
THE POLICE AND FIRE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Executive director" means the executive director of the Public Employees Retirement
Association.
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new text begin (c) "General plan" means the general employees retirement plan of the Public Employees
Retirement Association.
new text end

new text begin (d) "Police and fire plan" means the police and fire retirement plan of the Public
Employees Retirement Association.
new text end

new text begin (e) "Service credit" means time credited as allowable service under Minnesota Statutes,
section 353.01, subdivision 16, and credit for salary earned during that time.
new text end

new text begin (f) "Transfer period" means the period beginning May 2, 2005, and ending October 28,
2005.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin Notwithstanding any state law to the contrary, an eligible person
described in subdivision 3 who makes a payment to the police and fire retirement fund, as
permitted under subdivision 4, on or before one year following the effective date of this
section is entitled to have:
new text end

new text begin (1) the employer payment made on the eligible person's behalf under subdivision 5; and
new text end

new text begin (2) applicable past service credit transferred from the general plan to the police and fire
plan for the transfer period under subdivision 6.
new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

new text begin (a) An eligible person is a person described in paragraph (b)
or (c).
new text end

new text begin (b) An eligible person is a person who:
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new text begin (1) was born on July 2, 1982;
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new text begin (2) was hired as a full-time police officer by the Metropolitan Airports Commission on
May 2, 2005; and
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new text begin (3) was erroneously credited with allowable service in the general plan instead of the
police and fire plan for the period beginning May 2, 2005, and ending October 28, 2005.
new text end

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

new text begin (1) was born on April 18, 1982;
new text end

new text begin (2) was hired as a full-time police officer by the Metropolitan Airports Commission on
May 2, 2005; and
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new text begin (3) was erroneously credited with allowable service in the general plan instead of the
police and fire plan for the period beginning May 2, 2005, and ending October 28, 2005.
new text end

new text begin Subd. 4. new text end

new text begin Payment by eligible person. new text end

new text begin (a) An eligible person may pay to the executive
director the difference between the employee contribution rate for the general plan and the
employee contribution rate for the police and fire plan for the transfer period. The difference
between the two rates must be applied to the eligible person's salary at the time that each
contribution would have been deducted from pay if the eligible person had been covered
by the police and fire plan for the transfer period. The payment must include interest at the
applicable annual interest rate or rates that applied for each period listed in Minnesota
Statutes, section 354.49, subdivision 2, calculated from the date that each contribution would
have been deducted to the date that payment is made.
new text end

new text begin (b) The payment under paragraph (a) must be made in a lump sum no later than one year
following the effective date. Upon receipt of payment, the executive director must notify
the Metropolitan Airports Commission that the payment was made and of the amount owed
under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Payment by the Metropolitan Airports Commission. new text end

new text begin If an eligible person
makes the payment under subdivision 4, the Metropolitan Airports Commission, on behalf
of the eligible person, must pay to the Public Employees Retirement Association the actuarial
present value of the additional benefit resulting from the transferred service credit less the
payment made under subdivision 4. This amount must be paid by the department in a lump
sum within 30 days after the date on which the executive director notifies the Metropolitan
Airports Commission under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Transfer of assets and service credit. new text end

new text begin (a) If the payments under subdivisions
4 and 5 are made, the executive director must transfer assets from the general employees
retirement fund to the police and fire retirement fund in an amount equal to the actuarial
present value of the benefits earned by the eligible person under the general plan during the
transfer period. The transfer of assets must be made within 15 days after receipt of the
payments under subdivisions 4 and 5.
new text end

new text begin (b) Upon transfer of the assets under paragraph (a), the eligible person shall have service
credit in the police and fire plan and no service credit in the general plan for the transfer
period.
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