Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 120-H.F.No. 157 
           An act relating to retirement; authorizing the 
          purchase of prior service credit in the public 
          employees police and fire fund by two employees of the 
          city of Minneapolis. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION POLICE 
AND FIRE FUND; PURCHASE OF PRIOR SERVICE CREDIT.] 
    Subdivision 1.  [ELIGIBILITY.] (a) Notwithstanding any 
provision of Minnesota Statutes, section 353.27, subdivision 12, 
to the contrary, eligible individuals described in paragraph 
(b), clause (1) or (2), are entitled to purchase allowable 
service credit in the public employees retirement association 
police and fire fund for the period described in paragraph (c). 
    (b) An eligible person is a person who: 
    (1) was born on May 28, 1941, is a current member of the 
public employees police and fire fund, is employed by the 
Minneapolis park board beginning in 1967, became eligible for 
public employees retirement association police and fire fund 
membership on January 1, 1981, but who did not become a member 
at that time because no employee or employer contribution was 
made; 
    (2) was born on April 19, 1928, is a current member of the 
public employees police and fire fund, is employed by the 
Minneapolis park board beginning in 1960, became eligible for 
public employees retirement association police and fire fund 
membership on January 1, 1980, but who did not become a member 
at that time because no employee or employer contribution was 
made. 
    (c) The period for service credit purchase is the period of 
eligible service between January 1981 and January 1988, for the 
individual described in paragraph (b), clause (1), and the 
period of eligible service between January 1980 and January 1987 
for the individual described in paragraph (b), clause (2), as 
determined by the executive director of the public employees 
retirement association based on satisfactory evidence of the 
eligible person's employment status. 
    Subd. 2.  [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit 
for prior eligible service under subdivision 1, there must be 
paid to the public employees retirement association police and 
fire fund an amount equal to the present value on the date of 
payment, of the amount of the additional retirement annuity 
obtained by purchase of the additional service credit. 
    (b) Calculation of this amount must be made by the 
executive director of the public employees retirement 
association using the applicable preretirement interest rate 
specified in Minnesota Statutes, section 356.215, subdivision 
4d, and the mortality table adopted for the public employees 
retirement association police and fire fund.  The calculation 
must assume continuous future service in the association until, 
and retirement at, the age at which the minimum requirements of 
the retirement association for normal retirement or retirement 
with an annuity unreduced for retirement at an early age, 
including Minnesota Statutes, section 356.30, are met with the 
additional service credit purchased.  The calculation must also 
assume a future salary history that includes annual salary 
increases at the salary increase rate specified in Minnesota 
Statutes, section 356.215, subdivision 4d. 
    (c) The eligible persons must establish in the records of 
the association proof of the service for which the purchase of 
prior service is requested.  The manner of the proof of service 
must be in accordance with procedures prescribed by the 
executive director of the retirement association. 
    (d) The portion of the total cost of the purchase payable 
by the eligible persons is specified in subdivision 3.  The 
remaining portion of total cost is to be paid by the applicable 
employing unit as specified in subdivision 4. 
    Subd. 3.  [ELIGIBLE PERSON PAYMENT.] (a) To receive credit 
for the period of service credit purchase specified in 
subdivision 1, paragraph (c), the eligible persons specified in 
subdivision 1, paragraph (b), clause (1) or (2), must pay a 
member contribution equivalent amount. 
    (b) The member contribution equivalent amount is an amount 
equal to the employee contribution rate or rates in effect 
during the period of prior eligible noncredited service, applied 
to the actual salary rate or rates in effect during those 
periods of service, plus six percent annually compounded 
interest from the date on which a member contribution should 
have been made if membership during the period of service credit 
purchase had been properly determined to the date on which 
payment is made.  Payment must be made in a lump sum on or 
before September 1, 1993. 
    Subd. 4.  [MANDATORY EMPLOYING UNIT PAYMENT.] Within 60 
days of the receipt by the executive director of the public 
employees retirement association of the payment from the 
eligible person or persons under subdivision 3, the Minneapolis 
park board shall pay in a lump sum the difference between the 
amounts for that person as specified in subdivisions 2 and 3. 
    Subd. 5.  [SERVICE CREDIT GRANT.] Service credit for the 
purchase period must be granted to the account of the eligible 
person upon receipt of the purchase payment amount specified in 
subdivision 2. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective upon approval by the Minneapolis 
park and recreation board and compliance with Minnesota 
Statutes, section 645.021. 
    Presented to the governor May 10, 1993 
    Signed by the governor May 11, 1993, 5:45 p.m.