2000 Minnesota Statutes

CHAPTER 353F. Privatized public hospital, pera pension benefits

     353F.01 Purpose and intent. 

    The purpose of this chapter is to ensure, to the extent 
 possible, that persons employed at public medical facilities and 
 other public employing units who are privatized and consequently 
 are excluded from retirement coverage by the public employees 
 retirement association will be entitled to receive future 
 retirement benefits under the general employees retirement plan 
 of the public employees retirement association commensurate with 
 the prior contributions made by them or made on their behalf 
 upon the privatization of the medical facility or other public 
 employing unit. 

    HIST: 1999 c 222 art 1 s 1 

     353F.02 Definitions. 

    Subdivision 1.    Generally.  As used in this chapter, 
 unless the context clearly indicates otherwise, each of the 
 terms in the following subdivisions has the meaning indicated. 

    Subd. 2.    Allowable service.  "Allowable service" has 
 the meaning provided in section 353.01, subdivision 16, of the 
 edition of Minnesota Statutes published in the year before the 
 year in which the privatization occurred. 

    Subd. 3.    Effective date.  "Effective date" means the 
 date that the operation of the medical facility or other public 
 employing unit is assumed by another employer or the date that 
 the medical facility or other public employing unit is purchased 
 by another employer and active membership in the public 
 employees retirement association consequently terminates. 

    Subd. 4.    Medical facility.  "Medical facility" means: 

    (1) the Glencoe area health center; 

    (2) the Luverne public hospital; and 

    (3) the Waconia-Ridgeview medical center. 

    Subd. 5.    Other public employing unit.  "Other public 
 employing unit" means: 

    (1) Metro II, a joint powers organization formed under 
 section 471.59; and 

    (2) the St. Paul civic center authority. 

    Subd. 6.    Terminated medical facility or other public 
 employing unit employee.  "Terminated medical facility or 
 other public employing unit employee" means a person who: 

    (1) was employed on the day before the effective date by 
 the medical facility or other public employing unit; or 

    (2) terminated employment with the medical facility or 
 other public employing unit on the day before the effective 
 date; and 

    (3) was a participant in the general employees retirement 
 plan of the public employees retirement association at the time 
 of termination of employment with the medical facility or other 
 public employing unit. 

    Subd. 7.    Years of allowable service.  "Years of 
 allowable service" means the total number of years of allowable 
 service under section 353.01, subdivision 18, of the edition of 
 Minnesota Statutes published in the year before the year in 
 which the privatization occurred. 

    HIST: 1999 c 222 art 1 s 2; 2000 c 461 art 8 s 1 

*   NOTE:  Subdivision 5, as amended by Laws 2000, chapter 461, 
*article 8, section 1, is effective on the first day of the month 
*next following certification by the executive director of the 
*public employees retirement association that the actuarial 
*accrued liability of the special benefit coverage proposed for 
*extension to the privatized St. Paul civic center authority 
*employees under Laws 2000, chapter 461, article 8, does not 
*exceed the actuarial gain otherwise to be accrued by the public 
*employees retirement association, as calculated by the 
*consulting actuary retained by the legislative commission on 
*pensions and retirement.  The cost of the actuarial calculations 
*must be borne by the St. Paul civic center authority.  Laws 
*2000, chapter 461, article 8, section 2.

     353F.03 Vesting rule for certain employees. 

    Notwithstanding any provision of chapter 353 to the 
 contrary, a terminated medical facility or other public 
 employing unit employee is eligible to receive a retirement 
 annuity under section 353.29 of the edition of Minnesota 
 Statutes published in the year before the year in which the 
 privatization occurred, without regard to the requirement for 
 three years of allowable service. 

    HIST: 1999 c 222 art 1 s 3 

     353F.04 Augmentation interest rate for terminated 
  medical facility employees. 

    The deferred annuity of a terminated medical facility or 
 other public employing unit employee is subject to augmentation 
 in accordance with section 353.71, subdivision 2, of the edition 
 of Minnesota Statutes published in the year in which the 
 privatization occurred, except that the rate of interest for 
 this purpose is 5.5 percent compounded annually until January 1 
 following the year in which such person attains age 55.  From 
 that date to the effective date of retirement, the rate is 7.5 
 percent.  These increased augmentation rates are no longer 
 applicable for any time after the terminated medical facility or 
 other public employing unit employee becomes covered again by a 
 retirement fund enumerated in section 356.30, subdivision 3.  
 These increased deferred annuity augmentation rates do not apply 
 to a terminated transferred medical facility or other public 
 employing unit employee who begins receipt of a retirement 
 annuity while employed by the employer which assumed operations 
 of the medical facility or other public employing unit or 
 purchased the medical facility or other public employing unit. 

    HIST: 1999 c 222 art 1 s 4 

     353F.05 Authorization for additional allowable service 
  for certain early retirement purposes. 

    For the purpose of determining eligibility for early 
 retirement benefits provided under section 353.30, subdivision 
 1a, of the edition of Minnesota Statutes published in the year 
 before the year in which the privatization occurred, and 
 notwithstanding any provision of chapter 353, to the contrary, 
 the years of allowable service for a terminated medical facility 
 or other public employing unit employee who transfers employment 
 on the effective date and does not apply for a refund of 
 contributions under section 353.34, subdivision 1, of the 
 edition of Minnesota Statutes published in the year before the 
 year in which the privatization occurred, or any similar 
 provision, includes service with the successor employer to the 
 medical facility or other public employing unit following the 
 effective date.  The successor employer shall provide any 
 reports that the executive director of the public employees 
 retirement association may reasonably request to permit 
 calculation of benefits.  

    To be eligible for early retirement benefits under this 
 section, the individual must separate from service with the 
 successor employer to the medical facility.  The terminated 
 eligible individual, or an individual authorized to act on 
 behalf of that individual, may apply for an annuity following 
 application procedures under section 353.29, subdivision 4. 

    HIST: 1999 c 222 art 1 s 5 

     353F.06 Application of reemployed annuitant earnings 
  limitations. 

    The reemployed annuitant earnings limitations of section 
 353.37 apply to any service by a terminated medical facility or 
 other public employing unit employee as an employee of the 
 successor employer to the medical facility. 

    HIST: 1999 c 222 art 1 s 6 

     353F.07 Effect on refund. 

    Notwithstanding any provision of chapter 353 to the 
 contrary, terminated medical facility or other public employing 
 unit employees may receive a refund of employee accumulated 
 contributions plus interest at the rate of six percent per year 
 compounded annually in accordance with section 353.34, 
 subdivision 2, of the edition of Minnesota Statutes published in 
 the year in which the privatization occurred, at any time after 
 the transfer of employment to the successor employer to the 
 medical facility or other public employing unit.  If a 
 terminated medical facility employee has received a refund from 
 a pension plan enumerated in section 356.30, subdivision 3, the 
 person may not repay that refund unless the person again becomes 
 a member of one of those enumerated plans and complies with 
 section 356.30, subdivision 2. 

    HIST: 1999 c 222 art 1 s 7 

     353F.08 Counseling services. 

    The medical facility or other public employing unit and the 
 executive director of the public employees retirement 
 association shall provide terminated medical facility or other 
 public employing unit employees with counseling on their 
 benefits available under the general employees retirement plan 
 of the public employees retirement association during the 90 
 days following privatization. 

    HIST: 1999 c 222 art 1 s 8