SF 2819

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; authorizing a purchase of 
  1.3             prior service credit in the public employees relief 
  1.4             association police and fire fund. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [PRIOR SERVICE CREDIT PURCHASE.] 
  1.7      (a) An employee of the St. Louis county sheriff's 
  1.8   department may purchase service credit in the public employees 
  1.9   retirement association police and fire fund for a period of 
  1.10  previous employment with the Virginia or Hibbing police 
  1.11  department.  The purchase must be made in compliance with 
  1.12  paragraph (b). 
  1.13     (b) To purchase credit for prior eligible service under 
  1.14  paragraph (a), there must be paid to the public employees 
  1.15  retirement association an amount equal to the present value of 
  1.16  the amount of the additional benefit obtained by purchase of the 
  1.17  additional service credit.  The calculation of this amount must 
  1.18  be made by the executive director of the public employees 
  1.19  retirement association using the applicable preretirement 
  1.20  interest rate specified in Minnesota Statutes, section 356.215, 
  1.21  subdivision 4d, and the mortality table adopted for the 
  1.22  retirement association.  The person making the purchase must 
  1.23  establish in the records of the association proof of the service 
  1.24  for which the purchase of prior service is requested.  The 
  1.25  manner of the proof of service must be in accordance with 
  2.1   procedures prescribed by the executive director of the 
  2.2   retirement association.  Payment of the amount calculated under 
  2.3   this paragraph is the obligation of the eligible person.  
  2.4   However, the former employer of the eligible individual may, at 
  2.5   its discretion, pay all or any portion of the payment amount 
  2.6   that exceeds an amount equal to the employee contribution rate 
  2.7   or rates in effect during the period or periods of prior 
  2.8   service, plus interest at the rate of 8.5 percent per year 
  2.9   compounded annually from the date on which the contributions 
  2.10  would otherwise have been made to the date on which the payment 
  2.11  is made. 
  2.12     (c) Service credit for the purchase period or periods must 
  2.13  be granted to the account of the eligible person upon receipt of 
  2.14  the purchase payment amount specified in paragraph (b).