SF 2890

as introduced - 89th Legislature (2015 - 2016) Posted on 03/18/2016 11:07am

A bill for an act
relating to retirement; service credit purchase for St. Cloud State University
employment.

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

Section 1. new text begin PERA-GENERAL; PURCHASE OF SERVICE CREDIT FOR ST.
CLOUD STATE UNIVERSITY EMPLOYEE.
new text end

new text begin (a) Notwithstanding any provision of law to the contrary, an eligible person described
in paragraph (b) is entitled to purchase from the general employees retirement plan of the
Public Employees Retirement Association allowable service credit under Minnesota
Statutes, section 353.01, subdivision 16, for the period of service described in paragraph (c).
new text end

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

new text begin (1) was born on September 1, 1960;
new text end

new text begin (2) was an employee of St. Cloud State University on March 14, 2016;
new text end

new text begin (3) was a member of the general employees retirement plan of the Public Employees
Retirement Association on March 14, 2016;
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new text begin (4) was employed by St. Cloud Technical College on April 1, 1993, and was a
member of the general employees retirement plan of the Public Employees Retirement
Association; and
new text end

new text begin (5) changed employment within St. Cloud State University on February 22, 2006,
and was erroneously placed into the higher education individual retirement account
plan from February 22, 2006, until May 10, 2011, by the Minnesota State Colleges and
Universities System.
new text end

new text begin (c) The period of uncredited service authorized for purchase is the period of February
22, 2006, until May 10, 2011, during which the eligible person was erroneously placed
into and contributed to the higher education individual retirement account plan.
new text end

new text begin (d) The eligible person's member contributions to the higher education individual
retirement account plan must be transferred to the Public Employees Retirement
Association with any earned investment returns on those contributions. The eligible
person must pay the member contributions that the eligible person would have made to
the Public Employees Retirement Association on the eligible person's compensation from
the Minnesota State Colleges and Universities System for the period of service described
in paragraph (c) as if the person had been covered by the Public Employees Retirement
Association during the period, plus annual compound interest on that amount at the rate
of 8.5 percent from February 22, 2006, until June 30, 2015, and eight percent from July
1, 2015, until the date on which payment is made to the Public Employees Retirement
Association, less the transferred member contributions and investment earnings.
new text end

new text begin (e) Upon transfer of the equivalent member contribution amount and any additional
payments under paragraph (d), the balance of the eligible person's higher education
individual retirement account plan account must be transferred to the Public Employees
Retirement Association within 60 days following the receipt of the eligible person's
payment under paragraph (d).
new text end

new text begin (f) Upon the transfer of the amounts under paragraphs (d) and (e), the Minnesota
State Colleges and Universities System shall pay the prior service credit purchase payment
amount calculated under Minnesota Statutes, section 356.551, less any amounts received
under paragraphs (d) and (e), within 60 days following the receipt of the eligible person's
payment under paragraph (d).
new text end

new text begin (g) Upon the transfers and payments under paragraph (f), the eligible person must be
credited by the Public Employees Retirement Association with allowable service credit
for Minnesota State Colleges and Universities System employment from February 22,
2006, until May 10, 2011.
new text end

new text begin (h) Authority to make a service credit purchase under this section expires January
1, 2017.
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