1.1                          A bill for an act
  1.2             relating to retirement; providing coverage in the 
  1.3             correctional employees plan for certain employees; 
  1.4             amending Minnesota Statutes 1998, sections 352.90; and 
  1.5             352.91, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 352.90, is 
  1.8   amended to read: 
  1.9      352.90 [POLICY.] 
  1.10     It is the policy of the legislature to provide special 
  1.11  retirement benefits and contributions for certain correctional 
  1.12  employees who may be required to retire at an early age because 
  1.13  they lose the mental or physical capacity required to maintain 
  1.14  the safety, security, discipline, and custody of inmates at 
  1.15  state correctional facilities or of patients at the Minnesota 
  1.16  security hospital or at the Minnesota sexual psychopathic 
  1.17  personality treatment center or in certain programs with the 
  1.18  Cambridge regional human services center.  
  1.19     Sec. 2.  Minnesota Statutes 1998, section 352.91, is 
  1.20  amended by adding a subdivision to read: 
  1.21     Subd. 3e.  [MINNESOTA EXTENDED TREATMENT OPTIONS PROGRAM; 
  1.22  CAMBRIDGE.] "Covered correctional service" means service by a 
  1.23  state employee in an employment position with the Cambridge 
  1.24  regional human services center in which at least 75 percent of 
  1.25  the employee's working time is spent in direct contact with 
  2.1   patients who are in the Minnesota extended treatment options 
  2.2   program and whose service in such a position is certified to the 
  2.3   executive director by the commissioner of human services.  This 
  2.4   service does not constitute covered correctional service if the 
  2.5   person elects to retain current retirement coverage under 
  2.6   section 3. 
  2.7      Sec. 3.  [TEMPORARY PROVISION; ELECTION TO RETAIN 
  2.8   RETIREMENT COVERAGE.] 
  2.9      (a) An employee in a position specified as qualifying under 
  2.10  section 2 may elect to retain coverage under the general 
  2.11  employees retirement plan of the Minnesota state retirement 
  2.12  system or may elect to transfer coverage and contribute to the 
  2.13  correctional employees retirement plan.  An employee electing to 
  2.14  participate in the correctional employees retirement plan shall 
  2.15  begin making contributions to the correctional plan beginning 
  2.16  the first full pay period after July 1, 1999, or the first full 
  2.17  pay period following filing of their election to transfer 
  2.18  coverage to the correctional employees retirement plan, 
  2.19  whichever is later.  The election to retain coverage or to 
  2.20  transfer coverage must be made in writing by the person on a 
  2.21  form prescribed by the executive director of the Minnesota state 
  2.22  retirement system and must be filed with the executive director 
  2.23  no later than December 31, 1999. 
  2.24     (b) An employee failing to make an election by December 15, 
  2.25  1999, must be notified by certified mail by the executive 
  2.26  director of the Minnesota state retirement system of the 
  2.27  deadline to make a choice.  A person who does not submit an 
  2.28  election form must continue coverage in the general employees 
  2.29  retirement plan and forfeits all rights to transfer retirement 
  2.30  coverage to the correctional employees retirement plan. 
  2.31     (c) The election to retain coverage in the general employee 
  2.32  retirement plan or the election to transfer retirement coverage 
  2.33  to the correctional employees retirement plan is irrevocable 
  2.34  once it is filed with the executive director. 
  2.35     Sec. 4.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
  2.36  PERSONS.] 
  3.1      Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE COVERAGE.] 
  3.2   (a) An employee who has future retirement coverage transferred 
  3.3   to the correctional employees retirement plan under section 2, 
  3.4   and who does not elect to retain general state employee 
  3.5   retirement plan coverage, is entitled to elect to obtain prior 
  3.6   service credit for eligible state service performed on or after 
  3.7   July 1, 1997, and before the first day of the first full pay 
  3.8   period beginning after December 31, 1999.  All prior service 
  3.9   credit must be purchased. 
  3.10     (b) Eligible state service is any prior period of service 
  3.11  on or after the date which the employee started employment with 
  3.12  the Minnesota extended treatment options program or the date the 
  3.13  employee joined the correctional employees plan, whichever is 
  3.14  later.  
  3.15     (c) The department of human services shall certify eligible 
  3.16  state service to the executive director of the Minnesota 
  3.17  retirement system. 
  3.18     Subd. 2.  [PAYMENT FOR PRIOR SERVICE.] (a) An employee 
  3.19  electing to obtain prior service credit under subdivision 1 must 
  3.20  pay an additional employee contribution for that prior service.  
  3.21  The additional member contribution is the contribution 
  3.22  differential percentage applied to the actual salary paid to the 
  3.23  employee during the period of the prior eligible state service, 
  3.24  plus interest at the rate of six percent per annum, compounded 
  3.25  annually.  The contribution differential percentage is the 
  3.26  difference between 5.5 percent of salary and the applicable 
  3.27  employee contribution rate of the general state employees 
  3.28  retirement plan during the prior eligible state service. 
  3.29     (b) The additional member contribution must be paid only in 
  3.30  a lump sum.  Payment must accompany the election to obtain prior 
  3.31  service credit.  No election or payment may be made by the 
  3.32  person or accepted by the executive director after June 30, 2001.
  3.33     Subd. 3.  [TRANSFER OF ASSETS.] Assets must be transferred 
  3.34  from the general state employees retirement plan to the 
  3.35  correctional employees retirement plan in an amount equal to the 
  3.36  present value of benefits earned under the general employees 
  4.1   retirement plan for each employee transferring to the 
  4.2   correctional employees retirement plan, as determined by the 
  4.3   actuary retained by the legislative commission on pensions and 
  4.4   retirement in accordance with Minnesota Statutes, section 
  4.5   356.215, multiplied by the accrued liability funding ratio of 
  4.6   active members as derived from the most recent actuarial 
  4.7   valuation prepared by the commission-retained actuary.  The 
  4.8   transfer of assets must be made within 45 days after the 
  4.9   employee elects to transfer coverage to the correctional 
  4.10  employees retirement plan. 
  4.11     Subd. 4.  [EFFECT OF THE ASSET TRANSFER.] Upon the transfer 
  4.12  of assets in subdivision 3, service credit in the general state 
  4.13  employees plan of the Minnesota state retirement system is 
  4.14  forfeited and may not be reinstated.  The service credit and 
  4.15  transferred assets must be credited to the correctional 
  4.16  employees retirement plan. 
  4.17     Subd. 5.  [COUNSELING.] (a) The commissioners of human 
  4.18  services and employee relations, and the executive director of 
  4.19  the Minnesota state retirement system have the joint 
  4.20  responsibility of providing affected employees with appropriate 
  4.21  and timely retirement and related benefit counseling. 
  4.22     (b) Counseling must include the anticipated impact of the 
  4.23  retirement coverage change on the person's future retirement 
  4.24  benefit amounts, future retirement eligibility, future 
  4.25  applicability of mandatory retirement laws, and future 
  4.26  postemployment insurance coverage. 
  4.27     (c) The commissioner of human services must consult with 
  4.28  the appropriate collective bargaining agents of the affected 
  4.29  employees regarding the content, form, and timing of the 
  4.30  counseling required by this section. 
  4.31     Sec. 5.  [TRANSITIONAL PROVISION; RETENTION OF CERTAIN 
  4.32  RIGHTS.] 
  4.33     (a) Nothing in sections 1 to 7 may be considered to 
  4.34  restrict the entitlement of a person under state law to repay a 
  4.35  previously taken refund of employee or member contributions to a 
  4.36  Minnesota public pension plan if all qualifying requirements are 
  5.1   met. 
  5.2      (b) The period of correctional employees retirement plan 
  5.3   contributions, plus interest, must be restored upon the 
  5.4   repayment of the appropriate refund amount if the service was 
  5.5   correctional employees retirement plan covered service on the 
  5.6   date when the service was rendered or on the date when the 
  5.7   refund was taken. 
  5.8      Sec. 6.  [EARLY RETIREMENT INCENTIVE.] 
  5.9      This section applies to an employee who has future 
  5.10  retirement coverage transferred to the correctional employee 
  5.11  retirement plan under section 2 and who is at least 55 years old 
  5.12  on the effective date of section 2.  That employee may 
  5.13  participate in a health insurance early retirement incentive 
  5.14  available under the terms of a collective bargaining agreement 
  5.15  in effect on the day before the effective date of section 2, 
  5.16  notwithstanding any provision of the collective bargaining 
  5.17  agreement that limits participation to persons who select the 
  5.18  option during the payroll period in which they become 55 years 
  5.19  old.  A person selecting the health insurance early retirement 
  5.20  incentive under this section must retire by the later of 
  5.21  December 31, 2000, or within the pay period following the time 
  5.22  at which the person has at least three years of covered 
  5.23  correctional service, including any purchased service credit.  
  5.24  An employee meeting this criteria who wishes to extend the 
  5.25  person's employment must do so under Minnesota Statutes, section 
  5.26  43A.34, subdivision 3. 
  5.27     Sec. 7.  [EFFECTIVE DATE.] 
  5.28     Sections 1 to 6 are effective on the first day of the first 
  5.29  full pay period beginning after July 1, 1999.