Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 430-S.F.No. 2464 
                  An act relating to retirement; authorizing the 
                  purchase of prior service credit in the public 
                  employees retirement association by an employee of the 
                  city of Minneapolis. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; 
        PURCHASE OF PRIOR SERVICE CREDIT.] 
           Subdivision 1.  [ELIGIBILITY.] (a) Notwithstanding any 
        provision of Minnesota Statutes, section 353.27, subdivision 12, 
        to the contrary, an eligible individual described in paragraph 
        (b) is entitled to purchase allowable service credit in the 
        public employees retirement association coordinated plan for the 
        period described in paragraph (c), providing the proof of 
        service requirements in paragraph (d) are met. 
           (b) The eligible person is a person who was born on August 
        27, 1946, is a current member of the public employees police and 
        fire fund, is employed by the Minneapolis park board beginning 
        in June 1970, and became a member of the public employees 
        retirement association police and fire fund in 1984. 
           (c) The period for service credit purchase is the period of 
        eligible service between July 1, 1978, and the beginning of 
        coverage by the public employees retirement association police 
        and fire fund in 1984. 
           (d) To be eligible to make the payments specified in 
        subdivisions 2, 3, and 4, the individual specified in paragraph 
        (b) must establish in the records of the association proof of 
        the service for which the purchase of prior service applies, and 
        proof that the individual had sufficient salary during all or 
        part of that period to meet minimum statutory salary thresholds 
        for public employee retirement association membership.  Payments 
        cannot be made if the executive director determines that the 
        individual was eligible for coverage during this period by 
        another Minnesota public pension plan other than a volunteer 
        fire plan to which Minnesota Statutes, section 69.771, 
        subdivision 1, applies.  The manner of proof must be in 
        accordance with procedures prescribed by the executive director 
        of the association. 
           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 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.  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 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 person specified in 
        subdivision 1, paragraph (b), 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 for 
        public employees retirement association coordinated members 
        during the period or periods 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, 1995. 
           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 April 11, 1994 
           Signed by the governor April 13, 1994, 1:24 p.m.