1.1 	A bill for an act
1.2 	relating to retirement; permitting judges to purchase
1.3 	service credit for an authorized leave; requiring
1.4 	specified payments; amending Minnesota Statutes 2004,
1.5 	section 490.121, subdivision 4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 490.121,
1.8 	subdivision 4, is amended to read:
1.9 		Subd. 4.Allowable service. (a) "Allowable service"
1.10 	means any calendar month, subject to the service credit limit in
1.11 	subdivision 22, served as a judge at any time, or served as a
1.12 	referee in probate for all referees in probate who were in
1.13 	office prior to January 1, 1974.
1.14 	(b) "Allowable service" also means up to a total of one
1.15 	year of any period of authorized leave of absence for which the
1.16 	judge obtained credit by payment in lieu of salary deductions.
1.17 	To obtain credit, the judge shall pay an amount equal to the
1.18 	normal cost on the date of return from the leave of absence, as
1.19 	determined in the most recent actuarial report used by the
1.20 	Legislative Commission on Pensions and Retirement, multiplied by
1.21 	the judge's annual salary rate during the leave of absence for
1.22 	which the judge wants allowable service credit.  Payment must
1.23 	include interest at a rate of 8.5 percent compounded annually
1.24 	from the date of termination of the leave of absence to the date
1.25 	payment is made, unless payment is completed within one year of
2.1 	the return from the leave of absence.  This paragraph does not
2.2 	authorize purchase of service in excess of the limit in
2.3 	subdivision 22.  Leave purchased under this paragraph is in
2.4 	addition to uniformed service leave authorized under section
2.5 	490.1211.

2.6 	Sec. 2. EFFECTIVE DATE.
 2.7 	Section 1 is effective retroactively from January 1, 2005,
2.8 	and applies to any person who is in active service as a judge on
2.9 	that date.  After section 1 is effective, it may be used to
2.10 	obtain credit for service before or after that date.