SF 5197

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/26/2024 08:49am

A bill for an act
relating to retirement; Minnesota State Retirement System; general state employees
retirement fund; authorizing foreign citizens employed by public employers on a
H-1B, H-1B1, or E3 visa to purchase service credit for a prior period of employment
as an excluded employee; amending Laws 2021, chapter 22, article 2, section 3,
subdivision 2, by adding a subdivision.

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

Section 1.

Laws 2021, chapter 22, article 2, section 3, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Authorization to purchase service credit. new text end

new text begin (a) If the employer of an eligible
person notifies the eligible person that the eligible person is entitled to make the payment
of missed employee contributions described in subdivision 2, the eligible person may elect
to purchase service credit for the period of employment or any portion thereof during which
contributions were not made for or by the eligible person because the eligible person was
considered an excluded employee.
new text end

new text begin (b) If the eligible person elects to purchase service credit under paragraph (a), the eligible
person must forward the notification from the employer under paragraph (a) to the executive
director and request that the executive director determine the amount required under
subdivision 2 to pay the missed employee contributions for the period of time that the eligible
person did not make employee contributions because the eligible person was considered an
excluded employee. The executive director must respond to the eligible person's request no
later than 30 days after receiving the request.
new text end

new text begin (c) The eligible person, upon receipt of the amount calculated by the executive director
under paragraph (b), must follow the procedure under subdivision 2 if the eligible person
wishes to purchase service credit for a period of employment during which contributions
were not made for or by the eligible person.
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

Sec. 2.

Laws 2021, chapter 22, article 2, section 3, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Authorizing the purchase of service credit deleted text end new text begin Payments required new text end .

(a)
Notwithstanding any law to the contrary, the executive director must credit a person with
allowable service credit for any period of employment during which contributions were not
made for the person because the person was considered an excluded employee, if the person
is an eligible person and the executive director receives the payment described in paragraph
(b) or (c), as applicable new text begin , no later than 90 days after the date of the notification from the
eligible person's employer under subdivision 1a, paragraph (a) new text end .

(b) The eligible person or the employer, on behalf of the eligible person, may deleted text begin , no later
than August 31, 2021, deleted text end pay the deleted text begin missed employee contributions for any period of employment
during which contributions were not made for the person because the person was considered
an excluded employee, by transmitting the amount of the missed employee contributions
in a lump sum to the Minnesota State Retirement System deleted text end new text begin amount calculated by the executive
director under subdivision 1a, paragraph (b) new text end .

(c) new text begin In lieu of the amount under paragraph (a), new text end the eligible person may elect to pay missed
employee contributions for less than the entire period of employment during which
contributions were not made. The period of employment elected must be consecutive payroll
periods and may be payroll periods during which the eligible person received the lowest
salary. Upon payment of the missed employee contributions for the period of employment
elected, the executive director must credit the eligible person with a proportionate amount
of allowable service credit.

(d) If the missed employee contributions are paid, the eligible person's employer must,
no later than deleted text begin September 30, 2021 deleted text end new text begin 60 days after the date the missed employee contributions
are paid new text end , pay the missed employer contributions plus interest, compounded annually, at the
applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision
2, on both the employee contributions and the employer contributions, from the end of the
year in which the contributions would have been made to the date on which the payment is
made, by transmitting the amount of the missed employer contributions plus interest in a
lump sum to the Minnesota State Retirement System. If the eligible person elects to pay
missed employee contributions for less than the entire period of employment as permitted
under paragraph (c), the employer must pay the missed employer contributions plus interest
on both the employee contributions and the employer contributions for the payroll periods
elected by the eligible person.

(e) The executive director deleted text begin shall deleted text end new text begin must new text end notify the eligible person's employer regarding the
amount required under paragraph (d) and the basis for determining the amount. If the
employer fails to make all or any portion of the payment required by paragraph (d), the
executive director shall follow the procedures in Minnesota Statutes, section 352.04,
subdivision 8, paragraph (b), to collect the unpaid amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end