SF 2150

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; providing alternative 
  1.3             retirement coverage for transferred employees of the 
  1.4             Luverne Community Hospital and the Arnold Memorial 
  1.5             Hospital. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [LUVERNE COMMUNITY HOSPITAL; PENSION COVERAGE 
  1.8   FOR TRANSFERRED EMPLOYEES.] 
  1.9      Subdivision 1.  [AUTHORIZATION.] This section applies if 
  1.10  the Luverne Community Hospital is sold, leased, or transferred 
  1.11  to a private entity, nonprofit corporation, or public 
  1.12  corporation.  Notwithstanding Minnesota Statutes, sections 
  1.13  356.24 and 356.25, to facilitate the orderly transition of 
  1.14  employees affected by the sale, lease, or transfer, the city 
  1.15  may, at its discretion, make, from assets to be transferred to 
  1.16  the private entity, nonprofit corporation, or public 
  1.17  corporation, payments to a qualified pension plan established 
  1.18  for the transferred employees by the private entity, nonprofit 
  1.19  corporation, or public corporation, to provide benefits 
  1.20  substantially similar to those the employees would have been 
  1.21  entitled to under the provisions of the public employees 
  1.22  retirement association, Minnesota Statutes 1996, sections 353.01 
  1.23  to 353.46. 
  1.24     Subd. 2.  [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES; 
  1.25  ELIGIBILITY.] (a) An eligible individual is an individual who: 
  2.1      (1) is an employee of the Luverne Community Hospital 
  2.2   immediately prior to the sale, lease, or transfer of that 
  2.3   facility to a private entity, nonprofit corporation, or public 
  2.4   corporation; 
  2.5      (2) is terminated at the time of the sale, lease, or 
  2.6   transfer; and 
  2.7      (3) had less than three years of service credit in the 
  2.8   public employees retirement association plan at the date of 
  2.9   termination. 
  2.10     (b) For an eligible individual under paragraph (a), the 
  2.11  city may make a member contribution equivalent payment under 
  2.12  subdivision 3. 
  2.13     Subd. 3.  [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The 
  2.14  member contribution equivalent payment is an amount equal to the 
  2.15  total refund provided by Minnesota Statutes, section 353.34, 
  2.16  subdivisions 1 and 2.  To be eligible for the member 
  2.17  contribution equivalent payment, the individual in subdivision 
  2.18  2, paragraph (a), must apply for a refund under Minnesota 
  2.19  Statutes, section 353.34, subdivisions 1 and 2, within one year 
  2.20  of termination.  A member contribution equivalent amount 
  2.21  exceeding $200 must be made directly to an individual retirement 
  2.22  account under section 408(a) of the federal Internal Revenue 
  2.23  Code, as amended, or to another qualified plan.  A member 
  2.24  contribution equivalent amount of $200 or less may, at the 
  2.25  preference of the individual, be made to the individual or to an 
  2.26  individual retirement account under section 408(a) of the 
  2.27  federal Internal Revenue Code, as amended, or to another 
  2.28  qualified plan. 
  2.29     Sec. 2.  [ARNOLD MEMORIAL HOSPITAL, ADRIAN, MINNESOTA; 
  2.30  PENSION COVERAGE FOR TRANSFERRED EMPLOYEES.] 
  2.31     Subdivision 1.  [AUTHORIZATION.] This section applies if 
  2.32  the Arnold Memorial Hospital in Adrian is sold, leased, or 
  2.33  transferred to a private entity, nonprofit corporation, or 
  2.34  public corporation.  Notwithstanding Minnesota Statutes, 
  2.35  sections 356.24 and 356.25, to facilitate the orderly transition 
  2.36  of employees affected by the sale, lease, or transfer, the city 
  3.1   may, at its discretion, make, from assets to be transferred to 
  3.2   the private entity, nonprofit corporation, or public 
  3.3   corporation, payments to a qualified pension plan established 
  3.4   for the transferred employees by the private entity, nonprofit 
  3.5   corporation, or public corporation, to provide benefits 
  3.6   substantially similar to those the employees would have been 
  3.7   entitled to under the provisions of the public employees 
  3.8   retirement association, Minnesota Statutes 1996, sections 353.01 
  3.9   to 353.46. 
  3.10     Subd. 2.  [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES; 
  3.11  ELIGIBILITY.] (a) An eligible individual is an individual who: 
  3.12     (1) is an employee of the Arnold Memorial Hospital in 
  3.13  Adrian immediately prior to the sale, lease, or transfer of that 
  3.14  facility to a private entity, nonprofit corporation, or public 
  3.15  corporation; 
  3.16     (2) is terminated at the time of the sale, lease, or 
  3.17  transfer; and 
  3.18     (3) had less than three years of service credit in the 
  3.19  public employees retirement association plan at the date of 
  3.20  termination. 
  3.21     (b) For an eligible individual under paragraph (a), the 
  3.22  city may make a member contribution equivalent payment under 
  3.23  subdivision 3. 
  3.24     Subd. 3.  [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The 
  3.25  member contribution equivalent payment is an amount equal to the 
  3.26  total refund provided by Minnesota Statutes, section 353.34, 
  3.27  subdivisions 1 and 2.  To be eligible for the member 
  3.28  contribution equivalent payment, the individual in subdivision 
  3.29  2, paragraph (a), must apply for a refund under Minnesota 
  3.30  Statutes, section 353.34, subdivisions 1 and 2, within one year 
  3.31  of termination.  A member contribution equivalent amount 
  3.32  exceeding $200 must be made directly to an individual retirement 
  3.33  account under section 408(a) of the federal Internal Revenue 
  3.34  Code, as amended, or to another qualified plan.  A member 
  3.35  contribution equivalent amount of $200 or less may, at the 
  3.36  preference of the individual, be made to the individual or to an 
  4.1   individual retirement account under section 408(a) of the 
  4.2   federal Internal Revenue Code, as amended, or to another 
  4.3   qualified plan. 
  4.4      Sec. 3.  [EFFECTIVE DATE.] 
  4.5      (a) Section 1 is effective on the day following approval by 
  4.6   the Luverne city council and compliance with Minnesota Statutes, 
  4.7   section 645.021. 
  4.8      (b) Section 2 is effective on the day following approval by 
  4.9   the Adrian city council and compliance with Minnesota Statutes, 
  4.10  section 645.021.