SF 2506

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; public employees police and fire retirement plan;
authorizing the transfer of prior Richfield Police Relief Association service
credit; specifying member and employer financial obligations associated with
the transfer.

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

Section 1. new text begin PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT PLAN;
PRIOR SERVICE CREDIT TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Entitlement. new text end

new text begin (a) Notwithstanding any provision of Minnesota
Statutes, sections 353A.08, subdivisions 2 and 3, and 353A.10, subdivision 1, an eligible
person described in paragraph (b) is entitled to obtain allowable service credit in the
public employees police and fire retirement plan for prior police employment by the city
of Richfield under this section.
new text end

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

new text begin (1) was born on August 6, 1955;
new text end

new text begin (2) was employed as a police officer by the city of Richfield from 1979 to 1983;
new text end

new text begin (3) became a Minneapolis police officer in 1983; and
new text end

new text begin (4) is an active member of the public employees police and fire retirement plan by
virtue of the Minneapolis police employment.
new text end

new text begin Subd. 2. new text end

new text begin Service credit transfer. new text end

new text begin Upon the payment of the member and employer
amounts specified in subdivision 3, the service previously credited by the former Richfield
Police Relief Association for the period 1979 to 1983 is transferred from the former police
relief association and, upon the service credit transfer, entitlement to a service pension
from the former Richfield Police Relief Association terminates and cancels.
new text end

new text begin Subd. 3. new text end

new text begin Financial requirements. new text end

new text begin (a) To obtain the service credit transfer under
this section, the eligible person shall pay an amount equal to 40 percent of the difference
between the actuarial value of the former Richfield Police Relief Association service
pension of the eligible person on the date of transfer and the prior service credit purchase
payment requirement for the service credit period under Minnesota Statutes, section
356.551.
new text end

new text begin (b) If the eligible person makes the transfer payment under paragraph (a), the city of
Richfield and the city of Minneapolis shall pay the following portions of the difference
between the actuarial value of the former Richfield Police Relief Association service
pension of the eligible person on the date of transfer and the prior service credit purchase
payment requirement for the service credit period under Minnesota Statutes, section
356.551:
new text end

new text begin (1) 11.54 percent by the city of Richfield; and
new text end

new text begin (2) 48.46 percent by the city of Minneapolis.
new text end

new text begin (c) The city payments are due by the scheduled date of transfer. If the city payment
is not received by that date, the amount must be paid with compound monthly interest at
the rate of 0.71 percent per month or a portion of a month until payment is made.
new text end

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

new text begin Section 1 is effective the day following the latter of:
new text end

new text begin (1) the day that the city council of the city of Richfield and its chief clerical officer
timely complete compliance with Minnesota Statutes, section 645.021, subdivisions 2
and 3; and
new text end

new text begin (2) the day that the city council of the city of Minneapolis and its chief clerical officer
timely complete compliance with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
new text end