1.1                          A bill for an act 
  1.2             relating to retirement; correctional employees 
  1.3             retirement plan of the Minnesota state retirement 
  1.4             system; transferring general state employee retirement 
  1.5             plan service credit to the correctional retirement 
  1.6             plan for Phoenix treatment and behavior change program 
  1.7             employment; amending Minnesota Statutes 1998, section 
  1.8             352.91, subdivision 3d. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 352.91, 
  1.11  subdivision 3d, is amended to read: 
  1.12     Subd. 3d.  [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered 
  1.13  correctional service" means service by a state employee in one 
  1.14  of the employment positions at a correctional facility or at the 
  1.15  Minnesota security hospital specified in paragraph (b), provided 
  1.16  that at least 75 percent of the employee's working time is spent 
  1.17  in direct contact with inmates or patients and the fact of this 
  1.18  direct contact is certified to the executive director by the 
  1.19  appropriate commissioner, unless the person elects to retain the 
  1.20  current retirement coverage under Laws 1996, chapter 408, 
  1.21  article 8, section 21. 
  1.22     (b) The employment positions are as follows:  baker, 
  1.23  chemical dependency counselor supervisor, chief cook, cook, cook 
  1.24  coordinator, corrections behavior therapist, corrections 
  1.25  behavior therapist specialist, corrections parent education 
  1.26  coordinator, corrections security caseworker, corrections 
  1.27  security caseworker career, corrections teaching assistant, 
  2.1   dentist, electrician supervisor, general repair worker, 
  2.2   library/information research services specialist, 
  2.3   library/information research services specialist senior, plumber 
  2.4   supervisor, psychologist 3, recreation therapist, recreation 
  2.5   therapist coordinator, recreation program assistant, recreation 
  2.6   therapist senior, stores clerk senior, water treatment plant 
  2.7   operator, work therapy technician, work therapy assistant, work 
  2.8   therapy program coordinator. 
  2.9      (c) "Covered correctional service" also means service as 
  2.10  the director of the Phoenix treatment/behavior change program of 
  2.11  the department of corrections. 
  2.12     Sec. 2.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
  2.13  PERSONS.] 
  2.14     Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE COVERAGE.] 
  2.15  (a) An employee who has retirement coverage for past 
  2.16  correctional service transferred to the correctional employees 
  2.17  retirement plan under section 1, is entitled to elect to obtain 
  2.18  prior service credit for eligible state service previously 
  2.19  performed.  All eligible prior service credit must be purchased. 
  2.20     (b) Eligible state service is any period of service on or 
  2.21  after the date which the employee started employment with the 
  2.22  Phoenix treatment/behavior change program in a position 
  2.23  specified in Minnesota Statutes, section 352.91, subdivision 3d, 
  2.24  in which at least 75 percent of the employee's working time is 
  2.25  determined to have been spent in direct contact with program 
  2.26  participants, and the date the employee joined the correctional 
  2.27  employees plan.  
  2.28     (c) The department of corrections shall certify eligible 
  2.29  state service to the executive director of the Minnesota 
  2.30  retirement system. 
  2.31     Subd. 2.  [PAYMENT FOR PRIOR SERVICE.] (a) An employee 
  2.32  electing to obtain prior service credit under subdivision 1 must 
  2.33  pay an additional employee contribution for that prior service.  
  2.34  The additional member contribution is the contribution 
  2.35  differential percentage applied to the actual salary paid to the 
  2.36  employee during the period of the prior eligible state service, 
  3.1   plus interest at the rate of six percent per annum, compounded 
  3.2   annually.  The contribution differential percentage is the 
  3.3   difference between 5.5 percent of salary and the applicable 
  3.4   employee contribution rate of the general state employees 
  3.5   retirement plan during the prior eligible state service. 
  3.6      (b) The additional member contribution must be paid only in 
  3.7   a lump sum.  Payment must accompany the election to obtain prior 
  3.8   service credit.  No election or payment may be made by the 
  3.9   person or accepted by the executive director after June 30, 2001.
  3.10     Subd. 3.  [TRANSFER OF ASSETS.] Assets must be transferred 
  3.11  from the general state employees retirement plan to the 
  3.12  correctional employees retirement plan in an amount equal to the 
  3.13  present value of benefits earned under the general employees 
  3.14  retirement plan for each employee transferring to the 
  3.15  correctional employees retirement plan, as determined by the 
  3.16  actuary retained by the legislative commission on pensions and 
  3.17  retirement in accordance with Minnesota Statutes, section 
  3.18  356.215, multiplied by the accrued liability funding ratio of 
  3.19  active members as derived from the most recent actuarial 
  3.20  valuation prepared by the commission-retained actuary.  The 
  3.21  transfer of assets must be made within 45 days after the 
  3.22  employee elects to transfer coverage to the correctional 
  3.23  employees retirement plan. 
  3.24     Subd. 4.  [EFFECT OF THE ASSET TRANSFER.] Upon the transfer 
  3.25  of assets in subdivision 3, service credit in the general state 
  3.26  employees plan of the Minnesota state retirement system is 
  3.27  forfeited and may not be reinstated.  The service credit and 
  3.28  transferred assets must be credited to the correctional 
  3.29  employees retirement plan. 
  3.30     Sec. 3.  [EFFECTIVE DATE.] 
  3.31     Sections 1 and 2 are effective on the day following final 
  3.32  enactment.