Key: (1) language to be deleted (2) new language
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.
Official Publication of the State of Minnesota
Revisor of Statutes