SF 2560

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; modifying benefits for former 
  1.3             participants in the Minnesota state retirement system; 
  1.4             authorizing additional service credits for certain 
  1.5             University of Minnesota hospital and clinics 
  1.6             employees; authorizing additional augmentation for 
  1.7             employees of the University of Minnesota hospital and 
  1.8             clinics who terminate participation in the Minnesota 
  1.9             state retirement system; proposing coding for new law 
  1.10            in Minnesota Statutes, chapter 352E.  
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [352E.01] [PURPOSE.] 
  1.13     The purpose of this chapter is to assure that persons 
  1.14  employed at the University of Minnesota hospital and clinics 
  1.15  receive retirement benefits under the Minnesota state retirement 
  1.16  system commensurate with contributions made on their behalf upon 
  1.17  the integration of the University of Minnesota hospital and 
  1.18  clinics and Fairview hospital and healthcare services. 
  1.19     Sec. 2.  [352E.02] [DEFINITIONS.] 
  1.20     Subdivision 1.  [DEFINITIONS.] As used in this chapter, 
  1.21  unless the context or subject matter indicates otherwise, the 
  1.22  following terms have the meanings given in this section. 
  1.23     Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  1.24  meaning provided in section 352.01, subdivision 11. 
  1.25     Subd. 3.  [EFFECTIVE DATE.] "Effective date" is the date 
  1.26  terminated hospital employees transfer employment to Fairview 
  1.27  pursuant to a definitive integration agreement between the 
  1.28  University of Minnesota and Fairview. 
  2.1      Subd. 4.  [FAIRVIEW.] "Fairview" means Fairview hospital 
  2.2   and healthcare services, a Minnesota nonprofit corporation, and 
  2.3   its successors. 
  2.4      Subd. 5.  [SECTION.] "Section" means the designated section 
  2.5   of Minnesota Statutes. 
  2.6      Subd. 6.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
  2.7   hospital employee" means a person who: 
  2.8      (1) was employed on the day before the effective date by 
  2.9   the University of Minnesota at the University of Minnesota 
  2.10  hospital and clinics and was paid on a biweekly payroll; 
  2.11     (2) terminated employment with the University of Minnesota 
  2.12  on the day before the effective date; and 
  2.13     (3) was a participant in the Minnesota state retirement 
  2.14  system at the time of termination of employment with the 
  2.15  University of Minnesota. 
  2.16     Subd. 7.  [UNIVERSITY OF MINNESOTA HOSPITAL AND 
  2.17  CLINICS.] "University of Minnesota hospital and clinics" means 
  2.18  the hospitals and clinics operated by the regents of the 
  2.19  University of Minnesota. 
  2.20     Subd. 8.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  2.21  service" has the meaning provided in section 352.01, subdivision 
  2.22  16. 
  2.23     Sec. 3.  [352E.03] [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  2.24     A terminated hospital employee shall be eligible to receive 
  2.25  a retirement annuity under section 352.115 without regard to the 
  2.26  requirement for three years of allowable service. 
  2.27     Sec. 4.  [352E.04] [AUGMENTATION INTEREST RATE FOR 
  2.28  TERMINATED UNIVERSITY HOSPITAL EMPLOYEES.] 
  2.29     The deferred annuity of any terminated hospital employee 
  2.30  shall be subject to augmentation in accordance with section 
  2.31  352.72, subdivision 2, except that the rates of interest for 
  2.32  this purpose shall be five percent compounded annually until 
  2.33  January 1 of the year in which such person attains age 55.  From 
  2.34  that date to the effective date of retirement, the rate is seven 
  2.35  percent.  These increased augmentation rates shall no longer be 
  2.36  applicable for any time after the terminated hospital employee 
  3.1   becomes covered again by any retirement fund enumerated in 
  3.2   section 356.30, subdivision 3. 
  3.3      Sec. 5.  [352E.05] [AUTHORIZATION FOR ADDITIONAL ALLOWABLE 
  3.4   SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  3.5      The years of allowable service for a terminated hospital 
  3.6   employee who transfers to employment at Fairview on the 
  3.7   effective date and does not receive a refund of contributions 
  3.8   pursuant to section 352.22, subdivision 2, or any similar 
  3.9   provision in future Minnesota Statutes, shall include service 
  3.10  with Fairview following the effective date. 
  3.11     This section is solely for the purpose of determining 
  3.12  eligibility for early retirement benefits provided in section 
  3.13  352.116, subdivision 1, paragraphs (a) and (b).  No such early 
  3.14  retirement benefits shall be paid during any period the 
  3.15  terminated hospital employee is employed by Fairview.  Fairview 
  3.16  shall provide such reports as the Minnesota state retirement 
  3.17  system reasonably requests to permit calculation of this 
  3.18  additional service credit. 
  3.19     Sec. 6.  [352E.06] [EFFECT ON REFUND.] 
  3.20     Terminated hospital employees shall be permitted to receive 
  3.21  a refund of employee accumulated contributions plus interest at 
  3.22  the rate of six percent per year compounded annually pursuant to 
  3.23  section 352.22, subdivision 2. 
  3.24     Sec. 7.  [352E.07] [COUNSELING SERVICES.] 
  3.25     The University of Minnesota hospital and clinics and the 
  3.26  Minnesota state retirement system will provide terminated 
  3.27  hospital employees with counseling on their benefits available 
  3.28  under the Minnesota state retirement system. 
  3.29     Sec. 8.  [EFFECTIVE DATE.] 
  3.30     This chapter is effective as of the date employees of the 
  3.31  University of Minnesota transfer employment to Fairview pursuant 
  3.32  to a definitive integration agreement between the University of 
  3.33  Minnesota and Fairview.