SF 3127

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; public employees police and fire retirement plan;
authorizing a transfer of service credit for a prior period of firefighter employment
by the city of Maple Grove.

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

Section 1. new text begin PERA-P&F; TRANSFER OF SERVICE CREDIT FOR PRIOR
MAPLE GROVE CITY EMPLOYMENT PERIOD.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin An eligible person described in subdivision 2 is
authorized to have service credit transferred under subdivision 3 upon the payment of the
additional amounts required under subdivision 4 and upon the substantiation of the nature
of the employment under subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Eligible person. new text end

new text begin For purposes of this section, an eligible person is a
person who:
new text end

new text begin (1) was born on April 12, 1956;
new text end

new text begin (2) was initially employed by the city of Maple Grove on February 16, 1988;
new text end

new text begin (3) was employed as a full-time fire inspector by the fire-rescue department of the
city of Maple Grove, including daytime response to fire calls, with retirement coverage
by the coordinated program of the general employees retirement plan of the Public
Employees Retirement Association, on April 2, 1990; and
new text end

new text begin (4) was transferred to retirement coverage by the public employees police and fire
retirement plan as a fire inspector by Maple Grove city council action on January 1, 1996.
new text end

new text begin Subd. 3. new text end

new text begin Service credit transfer. new text end

new text begin (a) An eligible person, upon filing a written
application as prescribed by the executive director of the Public Employees Retirement
Association and upon compliance with subdivisions 4 and 5, shall have service credit
for the period from April 2, 1990, to January 1, 1996, transferred from the coordinated
program of the general employees retirement plan to the public employees police and
fire retirement plan on the first of the month next following the receipt of the additional
payments under subdivision 4.
new text end

new text begin (b) Upon the transfer of service credit under paragraph (a), the service credit of
the eligible person in the coordinated program of the general employees retirement
plan for the period from April 2, 1990, to January 1, 1996, is forfeited and may not be
subsequently restored under Minnesota Statutes, section 353.35, or any other applicable
provision of law.
new text end

new text begin Subd. 4. new text end

new text begin Additional payment amounts. new text end

new text begin (a) Accompanying the written application
under subdivision 3, the eligible person shall include an additional member contribution
payment for the period from April 2, 1990, to January 1, 1996. The additional member
contribution payment amount is the difference between the member contribution rate
under Minnesota Statutes, section 353.65, subdivision 2, and the member contribution rate
under Minnesota Statutes, section 353.27, subdivision 2, applied to the eligible person's
total covered salary for the period from April 2, 1990, to January 1, 1996, plus annual
compound interest from August 1, 1993, to the date on which the payment is made at the
rate of 8.5 percent.
new text end

new text begin (b) Upon receipt of the additional member contributions under paragraph (a), the
executive director of the Public Employees Retirement Association shall notify the city
of Maple Grove that the payment was made and the amount of the additional employer
contribution. Within 30 days of the receipt of the notification from the Public Employees
Retirement Association, the city of Maple Grove shall pay the additional employer
contribution amount. The amount is the difference between the present value of the
eligible person's combined retirement annuity from the coordinated program of the general
employees retirement plan and from the public employees police and fire retirement plan
as of the end of the month preceding the payment of the additional member contribution
amount and the present value of the potential retirement annuity from the public employees
police and fire retirement plan if the service credit transfer occurred as of the same date,
reduced by the amount of the retirement plan asset transfer under paragraph (c) and by the
amount of the additional member contribution amount. The present value computation
must be made by the actuary retained under Minnesota Statutes, section 356.214, and must
utilize the applicable actuarial assumptions under Minnesota Statutes, section 356.215.
The additional employer contribution amount must be paid in a lump sum. If the additional
employer contribution payment is not made in a timely fashion, the executive director of
the Public Employees Retirement Association shall notify the commissioners of finance
and revenue of that fact and the commissioners shall deduct the required amount from any
state aid or other state payment amount applicable to the city, plus interest on the amount
at the rate of one percent per month from the payment due date to the actual payment date.
new text end

new text begin (c) Upon the receipt of the additional member contribution under paragraph (a), the
executive director shall transfer an amount equal to double the eligible person's member
contributions to the coordinated program of the general employees retirement plan for the
period from April 2, 1990, to January 1, 1996, plus compound interest at the annual rate
of 8.5 percent from August 1, 1993, to the date of transfer from the general employees
retirement fund to the public employees police and fire retirement fund.
new text end

new text begin Subd. 5. new text end

new text begin Public safety employment substantiation. new text end

new text begin Service credit is transferrable
under this section only if the employment for the city of Maple Grove by the eligible
person during the period from April 2, 1990, to January 1, 1996, is documented as
constituting firefighter employment sufficient to qualify for public employees police and
fire retirement plan membership and eligibility if the city of Maple Grove had adopted the
resolution under Minnesota Statutes, section 353.64, subdivision 2, as of April 2, 1990.
The city of Maple Grove and the eligible person must provide any relevant documentation
required by the executive director of the Public Employees Retirement Association.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin Authority to transfer service credit under this section expires
on July 1, 2009.
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