Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 456-H.F.No. 2553 
                  An act relating to retirement; public employees 
                  retirement association; permitting purchase of service 
                  credit by certain soil and water conservation district 
                  employees. 
        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.] Notwithstanding any 
        provision of Minnesota Statutes, chapter 353, to the contrary, a 
        member of the public employees retirement association or a 
        member of the general state employees retirement plan of the 
        Minnesota state retirement system who: 
           (a) was a soil and water conservation district employee for 
        all or part of the period between July 1, 1977 and June 30, 
        1981; and 
           (b) became a public employees retirement association member 
        on July 1, 1981, because of that employment; 
        may purchase prior service credit in the association for any 
        period or periods of employment by the district within the above 
        period. 
           In order to purchase the service credit, the member 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 member was 
        eligible for coverage during this period by another Minnesota 
        public pension plan other than a volunteer fire plan to which 
        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 service under this section, 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 the purchase of the 
        additional service credit.  Calculation of this amount must be 
        made by the executive director of the public employees 
        retirement association using the applicable preretirement 
        interest rate of the association specified in Minnesota 
        Statutes, section 356.215, subdivision 4d, and the mortality 
        table adopted for the association.  The calculation must assume 
        continuous future service in the association until, and 
        retirement at, the age at which the minimum requirements of the 
        fund 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 full-time 
        equivalent salary, or actual salary, whichever is greater, and a 
        future salary history that includes annual salary increases at 
        the applicable salary increase rate for the fund or association 
        specified in Minnesota Statutes, section 356.215, subdivision 4d.
           (b) Payment must be made in one lump sum prior to July 1, 
        1995. 
           (c) Payment of the amount calculated under this subdivision 
        must be made by the member.  However, the current or former 
        employer of the member may, at its discretion, pay all or any 
        portion of the payment amount that exceeds an amount equal to 
        the employee contribution rates in effect during the period or 
        periods of prior service applied to the actual salary rates in 
        effect during the period or periods of prior service, plus 
        interest at the rate of eight and one-half percent a year 
        compounded annually from the date on which the contributions 
        would otherwise have been made to the date on which the payment 
        is made.  If the employer agrees to payments under this 
        paragraph, the employee must make the employee payments required 
        under this paragraph prior to July 1, 1995.  If that employee 
        payment is made, the employing unit payment under this paragraph 
        must be remitted to the executive director of the public 
        employees retirement association within 60 days of receipt by 
        the executive director of the employee payments specified under 
        this paragraph. 
           Subd. 3.  [SERVICE CREDIT GRANT.] Service credit for the 
        purchase period or periods 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 the day following final enactment. 
           Presented to the governor April 14, 1994 
           Signed by the governor April 18, 1994, 3:08 p.m.