SF 3499

as introduced - 92nd Legislature (2021 - 2022) Posted on 06/03/2022 08:15am

A bill for an act
relating to retirement; correctional state employees retirement plan; authorizing
the transfer of service credit from the Minnesota State Retirement System general
plan to the Minnesota State Retirement System correctional plan upon payment
by an eligible member.

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

Section 1. new text begin TRANSFER OF PAST MINNESOTA STATE RETIREMENT SYSTEM
GENERAL SERVICE CREDIT TO MINNESOTA STATE RETIREMENT SYSTEM
CORRECTIONAL.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms as used in this section have the meanings
given in this subdivision:
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new text begin (1) "Correctional plan" means the correctional employees retirement plan of the
Minnesota State Retirement System.
new text end

new text begin (2) "Executive director" means the executive director of the Minnesota State Retirement
System.
new text end

new text begin (3) "General plan" means the general state employees retirement plan of the Minnesota
State Retirement System.
new text end

new text begin (4) "Service credit" means time credited as allowable service under Minnesota Statutes,
section 352.01, subdivision 11, to an eligible person described in subdivision 3.
new text end

new text begin (5) "Transfer period" means the period from August 9, 2017, to December 22, 2020.
new text end

new text begin Subd. 2. new text end

new text begin Transfer of past service credit authorized. new text end

new text begin Notwithstanding any state law to
the contrary, an eligible person described in subdivision 3 who makes payment to the
correctional employees retirement fund, as permitted under subdivision 4, on or before one
year following the effective date of this section is entitled to have:
new text end

new text begin (1) the employer payment made on the eligible person's behalf under subdivision 5; and
new text end

new text begin (2) applicable past service credit transferred from the general plan to the correctional
plan for the transfer period under subdivision 6.
new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

new text begin An eligible person is a person who:
new text end

new text begin (1) is an employee of the Minnesota Department of Corrections;
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new text begin (2) on August 9, 2017, was promoted to the position of corrections transitions program
coordinator, a position eligible to participate in the correctional plan; and
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new text begin (3) from August 9, 2017, to December 22, 2020, was erroneously covered by the general
plan because the department misreported the person's retirement plan eligibility to the
Minnesota State Retirement System.
new text end

new text begin Subd. 4. new text end

new text begin Payment by eligible person. new text end

new text begin (a) An eligible person may pay to the executive
director the difference between the employee contribution rate for the general plan and the
employee contribution rate for the correctional plan for the transfer period. The difference
between the two rates must be applied to the eligible person's salary at the time that each
contribution would have been deducted from pay if the eligible person had been covered
by the correctional plan for the transfer period. The payment must include interest at the
applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision
2, calculated from the date that each contribution would have been deducted to the date that
payment is made.
new text end

new text begin (b) The payment under paragraph (a) must be made in a lump sum no later than one year
following the effective date. Upon receipt of the payment, the executive director must notify
the commissioner of corrections that payment was made and of the amount owed under
subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Payment by the Department of Corrections. new text end

new text begin If an eligible person makes the
payment under subdivision 4, the Department of Corrections, on behalf of the eligible
person, shall pay to the Minnesota State Retirement System the actuarial present value of
the additional benefit resulting from the transferred service credit less the payment made
under subdivision 4. This amount must be paid by the department in a lump sum within 30
days after the date on which the executive director notifies the commissioner of corrections
under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Transfer of assets and service credit. new text end

new text begin (a) If the payments under subdivisions
4 and 5 are made, the executive director must transfer assets from the general state employees
retirement fund to the correctional employees retirement fund in an amount equal to the
actuarial present value of the benefits earned by the eligible person under the general plan
during the transfer period. The transfer of assets must be made within 15 days after receipt
of the payments under subdivisions 4 and 5.
new text end

new text begin (b) Upon transfer of the assets under paragraph (a), the eligible person shall have service
credit in the correctional plan and no service credit in the general plan for the transfer period.
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