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                            CHAPTER 460-S.F.No. 2175 
                  An act relating to retirement and public employment; 
                  modifying benefits for certain former participants in 
                  the Minnesota state retirement system; authorizing 
                  additional service credits for certain University of 
                  Minnesota hospital and clinics employees; authorizing 
                  additional augmentation for employees of the 
                  University of Minnesota hospital and clinics who 
                  terminate participation in the Minnesota state 
                  retirement system; imposing conditions protecting the 
                  rights of employees on any integration of the 
                  University of Minnesota hospital and clinics and 
                  Fairview hospital and healthcare services; 
                  appropriating money; proposing coding for new law as 
                  Minnesota Statutes, chapter 352F; repealing Minnesota 
                  Statutes 1994, section 268.9783, subdivision 8. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                              RETIREMENT BENEFITS
           Section 1.  [352F.01] [PURPOSE.] 
           The purpose of this chapter is to assure, to the extent 
        possible, that persons employed at the University of Minnesota 
        hospital and clinics will be entitled to receive future 
        retirement benefits under the general state employees retirement 
        plan of the Minnesota state retirement system commensurate with 
        the prior contributions made by them or on their behalf upon the 
        integration of the University of Minnesota hospital and clinics 
        and Fairview hospital and healthcare services. 
           Sec. 2.  [352F.02] [DEFINITIONS.] 
           Subdivision 1.  [DEFINITIONS.] As used in this chapter, 
        unless the context or subject matter indicates otherwise, the 
        following terms have the meanings given in this section. 
           Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
        meaning provided in Minnesota Statutes 1994, section 352.01, 
        subdivision 11. 
           Subd. 3.  [EFFECTIVE DATE.] "Effective date" is the date 
        terminated hospital employees transfer employment to Fairview 
        under a definitive integration agreement between the University 
        of Minnesota and Fairview. 
           Subd. 4.  [FAIRVIEW.] "Fairview" means Fairview hospital 
        and healthcare services, a Minnesota nonprofit corporation, and 
        its successors. 
           Subd. 5.  [SECTION.] "Section" means the designated section 
        of Minnesota Statutes. 
           Subd. 6.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
        hospital employee" means a person who: 
           (1) was employed on the day before the effective date by 
        the University of Minnesota at the University of Minnesota 
        hospital and clinics and was paid on a biweekly payroll; 
           (2) terminated employment with the University of Minnesota 
        on the day before the effective date; and 
           (3) was a participant in the general state employees 
        retirement plan of the Minnesota state retirement system at the 
        time of termination of employment with the University of 
        Minnesota. 
           Subd. 7.  [UNIVERSITY OF MINNESOTA.] "University of 
        Minnesota" means University of Minnesota hospital and clinics, 
        the hospitals and clinics operated by the regents of the 
        University of Minnesota. 
           Subd. 8.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
        service" has the meaning provided in Minnesota Statutes 1994, 
        section 352.01, subdivision 16. 
           Sec. 3.  [352F.03] [VESTING RULE FOR CERTAIN EMPLOYEES.] 
           Notwithstanding any provision of chapter 352 to the 
        contrary, a terminated hospital employee is eligible to receive 
        a retirement annuity under Minnesota Statutes 1994, section 
        352.115, without regard to the requirement for three years of 
        allowable service. 
           Sec. 4.  [352F.04] [AUGMENTATION INTEREST RATE FOR 
        TERMINATED UNIVERSITY HOSPITAL EMPLOYEES.] 
           The deferred annuity of a terminated hospital employee is 
        subject to augmentation in accordance with Minnesota Statutes 
        1994, section 352.72, subdivision 2, except that the rate of 
        interest for this purpose is 5.5 percent compounded annually 
        until January 1 following the year in which such person attains 
        age 55.  From that date to the effective date of retirement, the 
        rate is 7.5 percent.  These increased augmentation rates are no 
        longer applicable for any time after the terminated hospital 
        employee becomes covered again by a retirement fund enumerated 
        in section 356.30, subdivision 3.  These increased deferred 
        annuity augmentation rates do not apply to a terminated 
        transferred hospital employee who begins receipt of a retirement 
        annuity while employed by Fairview. 
           Sec. 5.  [352F.05] [AUTHORIZATION FOR ADDITIONAL ALLOWABLE 
        SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
           For purpose of determining eligibility for early retirement 
        benefits provided under Minnesota Statutes 1994, section 
        352.116, subdivision 1, paragraphs (a) and (b), and 
        notwithstanding any provision of chapter 352 to the contrary, 
        the years of allowable service for a terminated hospital 
        employee who transfers to employment at Fairview on the 
        effective date and does not apply for a refund of contributions 
        under Minnesota Statutes 1994, section 352.22, subdivision 2, or 
        any similar provision in future Minnesota Statutes, includes 
        service with Fairview following the effective date.  Fairview 
        shall provide any reports that the executive director of the 
        Minnesota state retirement system may reasonably request to 
        permit calculation of benefits. 
           To be eligible for early retirement benefits under this 
        section, the individual must separate from service with 
        Fairview.  The terminated eligible individual, or an individual 
        authorized to act on behalf of that individual, may apply for an 
        annuity following application procedures under section 352.115, 
        subdivision 7. 
           Sec. 6.  [352F.06] [APPLICATION OF REEMPLOYED ANNUITANT 
        EARNINGS LIMITATIONS.] 
           The reemployed annuitant earnings limitations of section 
        352.115, subdivision 10, apply to any service by a terminated 
        hospital employee as an employee of Fairview. 
           Sec. 7.  [352F.07] [EFFECT ON REFUND.] 
           Notwithstanding any provision of chapter 352 to the 
        contrary, terminated hospital employees may receive a refund of 
        employee accumulated contributions plus interest at the rate of 
        six percent per year compounded annually in accordance with 
        Minnesota Statutes 1994, section 352.22, subdivision 2, at any 
        time after the transfer of employment to Fairview.  If a 
        terminated hospital employee has received a refund from a 
        pension plan enumerated in section 356.30, subdivision 3, the 
        person may not repay that refund unless the person again becomes 
        a member of one of those enumerated plans and complies with 
        section 356.30, subdivision 2.  
           Sec. 8.  [352F.08] [COUNSELING SERVICES.] 
           The University of Minnesota hospital and clinics and the 
        Minnesota state retirement system shall provide terminated 
        hospital employees with counseling on their benefits available 
        under the general state employees retirement plan of the 
        Minnesota state retirement system. 
           Sec. 9.  [EFFECTIVE DATE.] 
           Sections 1 to 8 are effective as of the date employees of 
        the University of Minnesota cease to be members of the Minnesota 
        state retirement system as a result of an integration agreement 
        between the University of Minnesota and Fairview. 
                                   ARTICLE 2
                      CONDITIONS FOR INTEGRATION AGREEMENT
           Section 1.  [DISLOCATED WORKERS AND WORKERS AT RISK.] 
           Fairview and the appropriate exclusive representatives 
        shall apply for a grant or grants under Minnesota Statutes, 
        chapter 268, and shall follow prescribed guidelines in 
        administering the grant or grants in order to provide training 
        or retraining for permanent or regular represented and 
        unrepresented employees of the University of Minnesota hospital 
        and clinics and Fairview hospital and healthcare services who 
        become or are at risk of becoming dislocated workers as a result 
        of an integration agreement between the university and 
        Fairview.  Implementation of this section must be assigned to a 
        committee comprising: 
           (1) one representative of each bargaining unit of employees 
        at the University of Minnesota hospital and clinics and Fairview 
        hospital and healthcare services, selected by the exclusive 
        representatives of those employees under collective bargaining 
        agreements in force the day before the effective date of this 
        section; and 
           (2) an equal number of employer representatives appointed 
        by Fairview. 
        Subsequent changes in bargaining unit representation on the 
        committee, if any, are subject to national labor relations board 
        procedures. 
           The committee shall apply for grants under Minnesota 
        Statutes, chapter 268.  Instead, or in addition, it may apply 
        for any available federal money for dislocated workers.  The 
        committee shall select the vendor or vendors to provide training 
        or retraining under this section. 
           University of Minnesota hospital and clinic employees who 
        are laid off as a result of the integration agreement and do not 
        become Fairview employees may be given access to the University 
        of Minnesota dislocated worker program.  The university is 
        requested to apply for an additional grant or for additional 
        grants under Minnesota Statutes, chapter 268, for University of 
        Minnesota hospital and clinics employees who are at risk of 
        becoming dislocated workers as a result of the integration 
        agreement. 
           Sec. 2.  [APPROPRIATION.] 
           (a) $1,800,000 is appropriated to the commissioner of 
        finance, to be held for the board of regents of the University 
        of Minnesota for its use in providing transitional funding for 
        University of Minnesota hospital and clinics employees who 
        become employees of Fairview hospital and healthcare services or 
        a new entity as a result of an integration agreement between the 
        university and Fairview.  Transitional funding must be used 
        exclusively for university employees' transitional needs, such 
        as, but not limited to, health benefits and educational 
        opportunities.  The commissioner shall release the money 
        appropriated by this section to the regents: 
           (1) upon the board's adoption of a transitional funding 
        plan agreed to by the exclusive representatives; and 
           (2) after the board has matched this appropriation 
        dollar-for-dollar. 
           (b) If the board of regents has not reached an agreement on 
        a transitional funding plan with the exclusive representatives 
        by October 1, 1996, the commissioner may release half of the 
        appropriated money, and the regents may use half of the 
        university's matching amount, for unrepresented employees.  If 
        no agreement with the exclusive representatives is reached by 
        October 1, 1998, the rest of the money may be released and used 
        for purposes of this section. 
           (c) This appropriation is available until June 30, 1999. 
           Sec. 3.  [REPEALER.] 
           Minnesota Statutes 1994, section 268.9783, subdivision 8, 
        is repealed. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 11, 1996, 11:48 a.m.

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