HF 1626

as introduced - 87th Legislature (2011 - 2012) Posted on 05/02/2011 10:03am

A bill for an act
relating to retirement; unclassified employees retirement program; clarifying
transfer of coverage provision; amending Minnesota Statutes 2010, section
352D.02, subdivision 3.

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

Section 1.

Minnesota Statutes 2010, section 352D.02, subdivision 3, is amended to
read:

Subd. 3.

Transfer to general employees retirement plan.

(a) An employee
referred to in subdivision 1, paragraph (c), clauses (2) to (4), (6) to (14), and (16) to (18),
who is credited with shares in the unclassified program, and who has credit for allowable
service, not later than one month following the termination of covered employment, may
elect to terminate participation in the unclassified program and be covered by the general
employees retirement plan by filing a written election with the executive director if the
employee was employed before July 1, 2010, and has at least ten years of allowable
service as of the date of the election or if the employee was new text begin first new text end employed after June 30,
2010, and has no more than seven years of allowable service as of the date of the election.

(b) If the transfer election is made, the executive director shall then redeem the
employee's total shares and shall credit to the employee's account in the general employees
retirement plan the amount of contributions that would have been so credited had the
employee been covered by the general employees retirement plan during the employee's
entire covered employment or elective state service. The balance of money so redeemed
and not credited to the employee's account must be transferred to the general employees
retirement plan, except that (1) the employee contribution paid to the unclassified program
must be compared to (2) the employee contributions that would have been paid to the
general employees retirement plan for the comparable period, if the individual had been
covered by that plan. If clause (1) is greater than clause (2), the difference must be
refunded to the employee as provided in section 352.22. If clause (2) is greater than
clause (1), the difference must be paid by the employee within six months of electing
general employees retirement plan coverage or before the effective date of the annuity,
whichever is sooner.

(c) An election under paragraph (a) to transfer coverage to the general employees
retirement plan is irrevocable during any period of covered employment.

(d) A person referenced in subdivision 1, paragraph (c), clause (1), (5), or (15), who
is credited with employee shares in the unclassified program is not permitted to terminate
participation in the unclassified program and be covered by the general employees
retirement plan.

new text begin EFFECTIVE DATE. new text end

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