1.1 	A bill for an act
1.2 	relating to retirement; Public Employees Retirement Association privatizations; 
1.3 	revising augmentation rates provided to privatized employees for privatizations 
1.4 	enacted after July 25, 2005; amending Minnesota Statutes 2004, section 353F.04.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 353F.04, is amended to read:
1.7 	353F.04 AUGMENTATION INTEREST RATERATES FOR TERMINATED 
1.8 	MEDICAL OR OTHER PUBLIC EMPLOYING UNIT FACILITY EMPLOYEES.
1.9 		Subdivision 1.Enhanced augmentation rates. (a) The deferred annuity of 
1.10 	a terminated medical facility or other public employing unit employee is subject to 
1.11 	augmentation in accordance with under section  353.71, subdivision 2, of the edition of 
1.12 	Minnesota Statutes published in the year in which the privatization occurred, except that 
1.13 	the rate of interest for this purpose augmentation is as specified in paragraph (b) or (c), 
1.14 	whichever is applicable.
1.15 	(b) This paragraph applies if the legislation adding the medical facility or other 
1.16 	employing unit to section 353F.02, subdivision 4 or 5, as applicable, was enacted before 
1.17 	July 26, 2005, and became effective before January 1, 2007. For a terminated medical 
1.18 	facility or other public employing unit employee, the augmentation rate is 5.5 percent 
1.19 	compounded annually until January 1 following the year in which such the person attains 
1.20 	age 55. From that date to the effective date of retirement, the augmentation rate is 7.5 
1.21 	percent compounded annually. These
1.22 	(c) If paragraph (b) is not applicable, the augmentation rate is four percent 
1.23 	compounded annually until January 1, following the year in which the person attains age 
2.1 	55. From that date to the effective date of retirement, the augmentation rate is six percent 
2.2 	compounded annually.
2.3 		Subd. 2.Exceptions. The increased augmentation rates are no longer applicable for 
2.4 	any time after specified in subdivision 1 do not apply if the terminated medical facility 
2.5 	or other public employing unit employee:
2.6 	(1) becomes covered again by a retirement fund plan enumerated in section  356.30, 
2.7 	subdivision 3. These increased deferred annuity augmentation rates do not apply to a 
2.8 	terminated transferred medical facility or other public employing unit employee who; or
2.9 	(2) begins receipt of a retirement annuity while employed by the employer which 
2.10 	assumed operations of the medical facility or other public employing unit or purchased the 
2.11 	medical facility or other public employing unit.

2.12 	Sec. 2. EFFECTIVE DATE.
 2.13 	Section 1 is effective retroactively from July 25, 2005.