SF 580

as introduced - 89th Legislature (2015 - 2016) Posted on 08/21/2015 02:25pm

A bill for an act
relating to retirement; general employees retirement plan of the Public
Employees Retirement Association; permitting a service credit purchase for
certain St. Paul public school employees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin PUBLIC EMPLOYEES RETIREMENT ASSOCIATION - GENERAL;
ST. PAUL PUBLIC SCHOOL EMPLOYEES WITH ERRONEOUSLY REPORTED
EMPLOYMENT TERMINATIONS.
new text end

new text begin (a) An eligible person described in paragraph (b) is entitled to purchase allowable
service credit from the general employees retirement plan of the Public Employees
Retirement Association (PERA) for the period specified in paragraph (c) upon making the
prior service credit purchase payment indicated in paragraph (d).
new text end

new text begin (b) An eligible person is a person who:
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new text begin (1) was born on June 18, 1952;
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new text begin (2) was initially employed by Independent School District No. 625, St. Paul, in
1987, in a nonteaching employment position;
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new text begin (3) was initially covered by the general employees retirement plan of PERA;
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new text begin (4) was erroneously reported to PERA by Independent School District No. 625, St.
Paul, as having terminated employment in August 1993;
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new text begin (5) did not have member contributions deducted for the general employees
retirement plan of PERA for the period of August 1, 1993, through January 3, 1997; and
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new text begin (6) had the error discovered in 1998 and received PERA general plan allowable
service credit for the period of July 1, 1994, through January 3, 1997.
new text end

new text begin (c) The period authorized for a purchase of prior allowable service credit is August
1, 1993, through June 30, 1994.
new text end

new text begin (d) To purchase the prior allowable service credit in paragraph (c), the eligible
person shall make the member contributions that would have been deducted from the
person's salary if the eligible person had been included in PERA general plan retirement
coverage during the period of August 1, 1993, through June 30, 1994, plus compound
interest at the rate of 8.5 percent per annum for complete years and 0.71 percent monthly
for months or parts of months January 15, 1994, to the date that payment is made.
new text end

new text begin (e) If an eligible person makes the payment specified under paragraph (d),
Independent School District No. 625, St. Paul, shall pay the balance of the full actuarial
value prior service credit payment amount provided for in Minnesota Statutes, section
356.551, within 60 days of the date on which the executive director of PERA certifies that
the eligible person's payment was received by PERA. If Independent School District No.
625, St. Paul, does not make the payment required by this paragraph in a timely manner,
the executive director of PERA shall certify (1) that payment was not timely; (2) the
amount of the unpaid employer obligation under this paragraph; and (3) interest at a
monthly rate of 0.71 percent from the date on which the eligible person made the payment
under paragraph (d) until the first day of the first month next following the certification to
the commissioner of education, who shall withhold that amount from any state aid payable
to Independent School District No. 625, St. Paul.
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new text begin (f) Upon receipt of the payment under paragraph (d), PERA shall grant allowable
service credit under Minnesota Statutes, section 353.01, subdivision 16, to the eligible
person.
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new text begin (g) This section expires on December 31, 2016.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end