2000 Minnesota Statutes

     355.77 Retroactive employer-employee contributions.  

    Subdivision 1.  Effective retroactively with respect to 
 employment after the date of retroactive coverage by hospital 
 employees who are employed on the date of the agreement or 
 modification and who are included within such agreement or 
 modification, the board of trustees of the public employees 
 retirement association shall pay out of its fund an amount for 
 each hospital employee so included which is equal to the amount 
 of employee tax which would have been imposed by the Federal 
 Insurance Contributions Act, if such service constituted 
 employment within the meaning of that act.  This payment shall 
 be computed from the date of retroactive coverage to the date 
 that deductions are taken from the wages of each such hospital 
 employee as provided in section 355.78.  The amount so paid by 
 the trustees shall be deducted from the accumulated deductions 
 of each such member of the public employees retirement 
 association.  If the accumulated deductions of any member are 
 not sufficient to pay for the member's retroactive contribution, 
 such member shall pay the difference to the fund.  To the extent 
 that the difference is not paid by the employee, it shall 
 constitute a liability of the employer.  An employer shall be 
 subrogated to the rights of the association in respect of any 
 amount paid by the employer on account of its liability in 
 behalf of the employee.  

    Subd. 2.  Effective retroactively with respect to 
 employment after the date of retroactive coverage by hospital 
 employees who are employed on the date of the agreement or 
 modification and who are included within such agreement or 
 modification, the board of trustees of the public employees 
 retirement association shall pay out of the fund an amount for 
 each member which is equal to the amount of employer tax which 
 would have been imposed by the Federal Insurance Contributions 
 Act if such service constituted employment within the meaning of 
 that act.  This amount shall be computed from the date of 
 retroactive coverage to the date deductions are taken from wages 
 as provided in section 355.78.  If this amount exceeds the 
 contribution made to the association by the employer in respect 
 of the employee, the difference shall be paid by the employer to 
 the fund of the association. 

    Subd. 3.  The amounts herein required by this section are 
 hereby appropriated from the public employees retirement fund 
 and the trustees are hereby authorized to make the necessary 
 disbursements and transfers therefor.  The amounts so required 
 shall be paid to the contribution fund provided for in the 
 Enabling Act.  

    Subd. 4.  Any member who is employed by a public hospital 
 and who elects social security coverage from and after January 
 1, 1969 and thereby transfers to the coordinated fund and from 
 whose account retroactive social security employee taxes are 
 paid by the board of trustees of the public employees retirement 
 association, shall be required to reimburse the said association 
 in an amount equal to the difference between employee 
 contributions at the rate of six percent of total salary and the 
 aggregate of three percent of said salary plus the rate of 
 retroactive social security employee taxes paid on said salary 
 restricted to earnings limitations imposed by the Federal 
 Insurance Contributions Act covering public service rendered 
 from and after said date of January 1, 1969.  In the event any 
 such member does not reimburse the association within 30 days 
 following notification by the public employees retirement 
 association of the amount so due, interest shall accrue thereon 
 at the rate of six percent per annum compounded annually from 
 the date first payable.  The governmental subdivision operating 
 the public hospital in which any such member rendered public 
 service from and after January 1, 1969 covering which service 
 retroactive social security employer taxes are paid by the board 
 of trustees of the public employees retirement association shall 
 be required to reimburse the said association in an amount equal 
 to the aforementioned difference, such amount to be paid from 
 the proceeds of a tax levy made pursuant to section 353.28, or 
 from other funds available to the employer.  

    HIST: 1963 c 793 s 7; 1969 c 267 s 7,8; 1969 c 999 s 6; 1986 c 
 444