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SF 3603

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2022 09:47am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to retirement; public employees police and fire plan; reducing vesting
requirements; amending Minnesota Statutes 2020, section 353.01, subdivision 47.

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

Section 1.

Minnesota Statutes 2020, section 353.01, subdivision 47, is amended to read:


Subd. 47.

Vesting.

(a) "Vesting" means obtaining a nonforfeitable entitlement to an
annuity or benefit from a retirement plan administered by the Public Employees Retirement
Association by having credit for sufficient allowable service under paragraph (b), (c), or
(d), whichever applies.

(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
member of the general employees retirement plan of the Public Employees Retirement
Association:

(1) a public employee who first became a member of the association before July 1, 2010,
is 100 percent vested when the person has accrued credit for not less than three years of
allowable service in the general employees retirement plan; and

(2) a public employee who first becomes a member of the association after June 30,
2010, is 100 percent vested when the person has accrued credit for not less than five years
of allowable service in the general employees retirement plan.

(c) For purposes of qualifying for an annuity or benefit as a member of the local
government correctional service retirement plan:

(1) a public employee who first became a member of the association before July 1, 2010,
is 100 percent vested when the person has accrued credit for not less than three years of
allowable service in the local government correctional service retirement plan; and

(2) a public employee who first becomes a member of the association after June 30,
2010, is vested at the following percentages when the person has accrued credit for allowable
service in the local government correctional service retirement plan, as follows:

(i) 50 percent after five years;

(ii) 60 percent after six years;

(iii) 70 percent after seven years;

(iv) 80 percent after eight years;

(v) 90 percent after nine years; and

(vi) 100 percent after ten years.

(d) For purposes of qualifying for an annuity or benefit as a member of the public
employees police and fire retirement plan:

(1) a public employee who first became a member of the association before July 1, 2010,
is 100 percent vested when the person has accrued credit for not less than three years of
allowable service in the public employees police and fire retirement plan;new text begin and
new text end

(2) a public employee who first becomes a member of the association after June 30,
2010, deleted text beginand before July 1, 2014,deleted text end isnew text begin 100 percentnew text end vested deleted text beginat the following percentagesdeleted text end when the
person has accrued deleted text begincrediteddeleted text endnew text begin credit for not less than five years ofnew text end allowable service in the
public employees police and fire retirement plandeleted text begin, as follows:deleted text endnew text begin.
new text end

deleted text begin (i) 50 percent after five years;
deleted text end

deleted text begin (ii) 60 percent after six years;
deleted text end

deleted text begin (iii) 70 percent after seven years;
deleted text end

deleted text begin (iv) 80 percent after eight years;
deleted text end

deleted text begin (v) 90 percent after nine years; and
deleted text end

deleted text begin (vi) 100 percent after ten years; and
deleted text end

deleted text begin (3) a public employee who first becomes a member of the association after June 30,
2014, is vested at the following percentages when the person has accrued credit for allowable
service in the public employees police and fire retirement plan, as follows:
deleted text end

deleted text begin (i) 50 percent after ten years;
deleted text end

deleted text begin (ii) 55 percent after 11 years;
deleted text end

deleted text begin (iii) 60 percent after 12 years;
deleted text end

deleted text begin (iv) 65 percent after 13 years;
deleted text end

deleted text begin (v) 70 percent after 14 years;
deleted text end

deleted text begin (vi) 75 percent after 15 years;
deleted text end

deleted text begin (vii) 80 percent after 16 years;
deleted text end

deleted text begin (viii) 85 percent after 17 years;
deleted text end

deleted text begin (ix) 90 percent after 18 years;
deleted text end

deleted text begin (x) 95 percent after 19 years; and
deleted text end

deleted text begin (xi) 100 percent after 20 or more years.
deleted 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