Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                         CHAPTER 95-H.F.No. 977 
           An act relating to retirement; Minneapolis employees 
          retirement fund; permitting purchase of service credit 
          by a certain member. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [PURCHASE OF PRIOR SERVICE CREDIT.] 
    Subdivision 1.  [ELIGIBILITY.] (a) A member of the 
Minneapolis employees retirement fund who: 
    (1) was born on September 25, 1954; and 
    (2) while disabled due to a duty-related injury, was 
recommended for discharge by the Minneapolis public works 
department on October 17, 1981, which recommendation was 
subsequently withdrawn by the department on April 8, 1982, 
may purchase allowable service credit in the Minneapolis 
employees retirement fund for the period or periods described in 
paragraph (b). 
    (b) The period or periods for service credit purchase is a 
period or periods between January 1, 1980, and December 31, 
1981, for which the member: 
    (1) did not receive disability benefits under this chapter; 
    (2) did not receive service credit from the Minneapolis 
employees retirement fund; and 
    (3) does not have existing service credit for the period or 
periods from any other plan listed in Minnesota Statutes, 
section 356.30, subdivision 3. 
    Subd. 2.  [PURCHASE PAYMENT AMOUNT.] (a) To purchase 
service credit under subdivision 1, there must be paid to the 
Minneapolis employees retirement 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 Minneapolis employees retirement fund 
using the applicable preretirement interest rate specified in 
Minnesota Statutes, section 356.215, subdivision 4d, and the 
mortality table adopted for the plan.  The calculation must 
assume continuous future service in the fund 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 section 356.215, 
subdivision 4d. 
    (c) The portion of the total cost of the purchase payable 
by the eligible person 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 MEMBER PAYMENT.] (a) To receive credit 
for the period of service credit purchase specified in 
subdivision 1, paragraph (b), the member must pay a member 
contribution equivalent amount. 
    (b) The member contribution equivalent amount is an amount 
equal to the employee contribution rate in effect during the 
period or periods for which service credit is purchased, 
multiplied by the full-time equivalent salary for an individual 
described in subdivision 1, paragraph (a), upon returning to 
covered employment in April 1982, for the period or periods of 
service credit purchased.  Payment must include six percent 
annually compounded interest from the date on which a member 
contribution would have been made if the member had not been 
injured and remained in covered salaried employment during the 
period or periods of service credit purchase to the date on 
which payment is made.  Payment must be made in a lump sum 
before December 31, 1993, unless the executive director agrees 
to accept payment in installments, not to exceed three years.  
If the executive director agrees to accept installment payments, 
payments must include interest at a rate determined by the 
executive director, and payments must begin before December 31, 
1993.  
    Subd. 4.  [MANDATORY EMPLOYING UNIT PAYMENT.] Within 60 
days of the receipt by the executive director of the Minneapolis 
employees retirement fund of the full payment under subdivision 
3, the governmental unit employing the member during the period 
or periods of service credit purchase described in subdivision 
1, paragraph (b), shall pay a lump sum equal to the difference 
between the amounts 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.  [LOCAL APPROVAL.] 
    Section 1 is effective the day following approval by the 
Minneapolis city council and compliance with Minnesota Statutes, 
section 645.021. 
    Presented to the governor May 6, 1993 
    Signed by the governor May 7, 1993, 2:42 p.m.