Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 443-H.F.No. 1350 
           An act relating to retirement; major and statewide 
          retirement plans; crediting service and salary when 
          back pay is awarded in the event of a wrongful 
          discharge; proposing coding for new law in Minnesota 
          Statutes, chapter 356; repealing Minnesota Statutes 
          1991 Supplement, section 353.27, subdivision 5a. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [356.50] [SERVICE AND SALARY CREDIT FROM BACK 
PAY AWARDS IN THE EVENT OF WRONGFUL DISCHARGE.] 
    (a) A person who is wrongfully discharged from public 
employment that gave rise to coverage by a public employee 
pension plan listed in section 356.30, subdivision 3, is 
entitled to obtain allowable service credit from the applicable 
public employee pension plan for the applicable period caused by 
the wrongful discharge.  A person is wrongfully discharged for 
purposes of this section if: 
    (1) the person has been determined by a court of competent 
jurisdiction or an arbitrator in binding arbitration to have 
been wrongfully discharged from public employment; 
    (2) the person received an award of back pay with respect 
to that discharge; and 
    (3) the award does not include any amount for any lost or 
interrupted public pension plan coverage. 
    (b) To obtain the public pension plan allowable service 
credit, the person shall pay the required member contribution 
amount.  The required member contribution amount is the member 
contribution rate or rates in effect for the pension plan during 
the period of service covered by the back pay award, applied to 
the unpaid gross salary amounts of the back pay award including 
unemployment compensation, workers' compensation or wages from 
other sources which reduced the back award.  No contributions 
shall be made under this clause for compensation covered by a 
public pension plan listed in section 356.30, subdivision 3, for 
employment during the removal period.  The person shall pay the 
required member contribution amount within 60 days of the date 
of receipt of the back pay award, within 60 days of the 
effective date of this section, or within 60 days of a billing 
from the retirement fund, whichever is later. 
    (c) The public employer who wrongfully discharged the 
public employee must pay an employer contribution on the back 
pay award.  The employer contribution must be based on the 
employer contribution rate or rates in effect for the pension 
plan during the period of service covered by the back pay award, 
applied to the salary amount on which the member contribution 
amount was determined under paragraph (b).  Interest on both the 
required member and employer contribution amount must be paid by 
the employer at the annual compound rate of 8.5 percent per 
year, expressed monthly, between the date the contribution 
amount would have been paid to the date of actual payment.  The 
employer payment must be made within 30 days of the payment 
under paragraph (b). 
    Sec. 2.  [REPEALER.] 
    Minnesota Statutes 1991 Supplement, section 353.27, 
subdivision 5a, is repealed. 
    Sec. 3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective on the day following final 
enactment. 
    Presented to the governor April 10, 1992 
    Signed by the governor April 13, 1992, 1:20 p.m.