SF 1181

as introduced - 87th Legislature (2011 - 2012) Posted on 03/27/2012 12:47pm

A bill for an act
relating to retirement; Public Employees Retirement Association privatizations;
decreasing augmentation rates applicable to new privatizations; amending
Minnesota Statutes 2010, section 353F.04, subdivision 1.

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

Section 1.

Minnesota Statutes 2010, section 353F.04, subdivision 1, is amended to read:

Subdivision 1.

Enhanced augmentation rates.

(a) The deferred annuity of
a terminated medical facility or other public employing unit employee is subject
to augmentation under section 353.71, subdivision 2, of the edition of Minnesota
Statutes published in the year in which the privatization occurred, except that the rate
of augmentation is as specified in deleted text begin paragraph (b) or (c), whichever is applicable deleted text end new text begin this
subdivision new text end .

(b) This paragraph applies if the legislation adding the medical facility or other
employing unit to section 353F.02, subdivision 4 or 5, as applicable, was enacted before
July 26, 2005, and became effective before January 1, 2008, for the Hutchinson Area
Health Care or before January 1, 2007, for all other medical facilities and all other
employing units. For a terminated medical facility or other public employing unit
employee, the augmentation rate is 5.5 percent compounded annually until January 1
following the year in which the person attains age 55. From that date to the effective date
of retirement, the augmentation rate is 7.5 percent compounded annually.

(c) If paragraph (b) is not applicable, new text begin and if the effective date of the privatization is
before January 1, 2011, new text end the augmentation rate is four percent compounded annually until
January 1, following the year in which the person attains age 55. From that date to the
effective date of retirement, the augmentation rate is six percent compounded annually.

new text begin (d) If the effective date of the privatization is after December 31, 2010, and before
January 1, 2012, and if the person became a public employee on or before June 30, 2006:
new text end

new text begin (1) if the former member is less than age 55 on January 1, 2011, the augmentation
rate is at a 3.0 percent annual rate through December 31, 2011, prorated if the privatization
occurs less than one full year before January 1, 2012;
new text end

new text begin (2) if the former member is age 55 or older on January 1, 2011, the augmentation
rate is at a 5.0 percent annual rate through December 31, 2011, prorated if the privatization
occurs less than one full year before January 1, 2012; and
new text end

new text begin (3) regardless of age, after December 31, 2011, the augmentation rate is 1.0 percent
compounded annually until the effective date of retirement.
new text end

new text begin (e) If the effective date of the privatization is after December 31, 2010, and before
January 1, 2012, and if the person became a public employee after June 30, 2006:
new text end

new text begin (1) the augmentation rate is at a 2.5 percent annual rate through December 31, 2011,
prorated if the privatization occurs less than one year before January 1, 2012; and
new text end

new text begin (2) after December 31, 2011, the augmentation rate is 1.0 percent compounded
annually until the effective date of retirement.
new text end

new text begin (f) If the effective date of the privatization is January 1, 2012, or later, no
augmentation applies.
new text end

new text begin (g) The term "effective date of the privatization" as used in this subdivision means
the "effective date" as defined in section 353F.02, subdivision 3.
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