2002 Minnesota Statutes

CHAPTER 352D. State unclassified employees retirement program

     352D.01 Establishment. 

    There is hereby established within the Minnesota state 
 retirement system a retirement program for certain public 
 employees to be known as the Minnesota unclassified employees 
 retirement program, which shall be administered by the Minnesota 
 state retirement system.  

    HIST: 1971 c 604 s 1; 1973 c 624 s 1; 1986 c 458 s 5 

     352D.015 Definitions. 

    Subdivision 1.  As used in this chapter, unless the context 
 or subject matter indicates otherwise, the following terms shall 
 have the meanings given.  

    Subd. 2.  "Unclassified program" means the program 
 established by this chapter.  

    Subd. 3.  "Supplemental fund" means the fund established 
 and governed by section 11A.17.  

    Subd. 4.  "General fund" means the state employees 
 retirement fund except the moneys for the unclassified program.  

    Subd. 5.    Covered employment.  "Covered employment" 
 means employment covered by this chapter or by chapter 352.  

    Subd. 6.  "Employee shares" means shares in the 
 supplemental fund purchased with the employee's contributions.  

    Subd. 7.  "Employer shares" means shares in the 
 supplemental fund purchased with the employer's contributions.  

    Subd. 8.  "Total shares" means all the employee shares and 
 employer shares credited to a participant.  Where applicable, 
 the term "contributions" shall mean "shares." 

    Subd. 9.  "Value" means cash value at the end of the month 
 following receipt of an application.  If no application is 
 required, "value" means the cash value at the end of the month 
 in which the event necessitating the transfer occurs.  

    Subd. 10.  Repealed, 1975 c 368 s 51 

    HIST: 1973 c 624 s 2; 1975 c 368 s 41; 1980 c 607 art 14 s 46; 
 1983 c 128 s 32; 1986 c 458 s 6; 1987 c 284 art 4 s 4; 1993 c 
 307 art 1 s 34 

     352D.02 Coverage. 

    Subdivision 1.    Coverage.  (a) Employees enumerated in 
 paragraph (c), clauses (2), (3), (4), and (6) to (14), if they 
 are in the unclassified service of the state or metropolitan 
 council and are eligible for coverage under the general state 
 employees retirement plan under chapter 352, are participants in 
 the unclassified plan under this chapter unless the employee 
 gives notice to the executive director of the Minnesota state 
 retirement system within one year following the commencement of 
 employment in the unclassified service that the employee desires 
 coverage under the general state employees retirement plan.  For 
 the purposes of this chapter, an employee who does not file 
 notice with the executive director is deemed to have exercised 
 the option to participate in the unclassified plan. 

    (b) Persons referenced in paragraph (c), clauses (1) and 
 (5), are participants in the unclassified program under this 
 chapter unless the person is eligible to elect different 
 coverage under section 3A.07 or 352C.011 and, after July 1, 
 1998, elects retirement coverage by the applicable alternative 
 retirement plan.  Persons referenced in paragraph (c), clause 
 (15), are participants in the unclassified program under this 
 chapter for judicial employment in excess of the service credit 
 limit in section 490.121, subdivision 22. 

    (c) Enumerated employees and referenced persons are: 

    (1) the governor, the lieutenant governor, the secretary of 
 state, the state auditor, the state treasurer, and the attorney 
 general; 

    (2) an employee in the office of the governor, lieutenant 
 governor, secretary of state, state auditor, state treasurer, 
 attorney general; 

    (3) an employee of the state board of investment; 

    (4) the head of a department, division, or agency created 
 by statute in the unclassified service, an acting department 
 head subsequently appointed to the position, or an employee 
 enumerated in section 15A.0815 or 15A.083, subdivision 4; 

    (5) a member of the legislature; 

    (6) a full-time unclassified employee of the legislature or 
 a commission or agency of the legislature who is appointed 
 without a limit on the duration of the employment or a temporary 
 legislative employee having shares in the supplemental 
 retirement fund as a result of former employment covered by this 
 chapter, whether or not eligible for coverage under the 
 Minnesota state retirement system; 

    (7) a person who is employed in a position established 
 under section 43A.08, subdivision 1, clause (3), or in a 
 position authorized under a statute creating or establishing a 
 department or agency of the state, which is at the deputy or 
 assistant head of department or agency or director level; 

    (8) the regional administrator, or executive director of 
 the metropolitan council, general counsel, division directors, 
 operations managers, and other positions as designated by the 
 council, all of which may not exceed 27 positions at the council 
 and the chair; 

    (9) the executive director, associate executive director, 
 and not to exceed nine positions of the higher education 
 services office in the unclassified service, as designated by 
 the higher education services office before January 1, 1992, or 
 subsequently redesignated with the approval of the board of 
 directors of the Minnesota state retirement system, unless the 
 person has elected coverage by the individual retirement account 
 plan under chapter 354B; 

    (10) the clerk of the appellate courts appointed under 
 article VI, section 2, of the Constitution of the state of 
 Minnesota; 

    (11) the chief executive officers of correctional 
 facilities operated by the department of corrections and of 
 hospitals and nursing homes operated by the department of human 
 services; 

    (12) an employee whose principal employment is at the state 
 ceremonial house; 

    (13) an employee of the Minnesota educational computing 
 corporation; 

    (14) an employee of the state lottery who is covered by the 
 managerial plan established under section 43A.18, subdivision 3; 
 and 

    (15) a judge who has exceeded the service credit limit in 
 section 490.121, subdivision 22. 

    Subd. 1a. Repealed, 1995 c 141 art 4 s 31 

    Subd. 1b. Repealed, 1991 c 238 art 1 s 26 

    Subd. 1c.    Transfer of contributions.  An employee 
 covered by the regular plan who is subsequently employed as a 
 full-time unclassified employee of the legislature or any 
 commission or agency of the legislature without a limit on the 
 duration of the employment may elect to transfer accumulated 
 employee and matching employer contributions, as provided in 
 section 352D.03. 

    Subd. 1d.    Election of program participation.  An 
 employee who is a participant in the unclassified program by 
 virtue of employment in a position listed in subdivision 1 may 
 elect to remain in the unclassified program upon subsequent 
 employment in an unlimited, full-time unclassified position that 
 is not listed in subdivision 1.  To elect participation in the 
 unclassified program, the employee must give notice to the 
 executive director of the Minnesota state retirement system 
 within one year of the commencement of employment in an 
 unclassified position that is not listed in subdivision 1.  Upon 
 receipt of the notice, the executive director shall transfer to 
 the employee's account in the unclassified program an amount 
 equal to the employer and employee contributions with six 
 percent interest to the regular plan on the employee's behalf 
 from the commencement of employment in the position not listed 
 in subdivision 1 to the receipt of the notice by the executive 
 director. 

    Subd. 2.    Coverage upon employment change.  A person 
 becoming a participant in the unclassified program by virtue of 
 employment in a position specified in subdivision 1, clause (4), 
 and remaining in the unclassified service shall remain a 
 participant in the program even though the position the person 
 occupies is deleted from any of the sections referenced in 
 subdivision 1, clause (4), by subsequent amendment, except that 
 a person shall not be eligible to elect the unclassified program 
 after separation from unclassified service if on the return of 
 the person to service, that position is not specified in 
 subdivision 1, clause (4).  Any person employed in a position 
 specified in subdivision 1 shall cease to participate in the 
 unclassified program in the event the position is placed in the 
 classified service. 

    Subd. 3.    Election irrevocable.  An election to not 
 participate is irrevocable during any period of covered 
 employment.  An employee credited with employee shares in the 
 unclassified program, after acquiring credit for ten years of 
 allowable service but prior to termination of covered 
 employment, may, notwithstanding other provisions of this 
 subdivision, elect to terminate participation in the 
 unclassified plan and be covered by the regular plan by filing 
 such election with the executive director.  The executive 
 director shall thereupon redeem the employee's total shares and 
 shall credit to the employee's account in the regular plan the 
 amount of contributions that would have been so credited had the 
 employee been covered by the regular plan during the employee's 
 entire covered employment.  The balance of money so redeemed and 
 not credited to the employee's account shall be transferred to 
 the state contribution reserve of the state employees retirement 
 fund, except that (1) the employee contribution paid to the 
 unclassified plan must be compared to (2) the employee 
 contributions that would have been paid to the general plan for 
 the comparable period, if the individual had been covered by 
 that plan.  If clause (1) is greater than clause (2), the 
 difference must be refunded to the employee as provided in 
 section 352.22.  If clause (2) is greater than clause (1), the 
 difference must be paid by the employee within six months of 
 electing general plan coverage or before the effective date of 
 the annuity, whichever is sooner.  

    Subd. 4.    Start of coverage.  When any person elects 
 participation in the unclassified program all contributions from 
 the time first eligible to make such an election shall be 
 covered by the program. 

    Subd. 5.    TRA restrictions.  An employee in a 
 position with retirement coverage under the basic program in the 
 teachers retirement association is not entitled to participate 
 in the plan unless the employee leaves the position and begins 
 employment more than 30 days later in a position with retirement 
 coverage under the plan.  

    Subd. 6.    Omitted salary deductions.  The provisions 
 of section 352.04, subdivision 8, apply to this section. 

    HIST: 1971 c 604 s 2; 1973 c 624 s 3; 1975 c 368 s 42,43; 1976 
 c 329 s 11; 1977 c 429 s 17; 1979 c 50 s 43; 1980 c 607 art 14 s 
 37; 1981 c 224 s 68,69; 1982 c 399 s 1; 1982 c 560 s 56,57; 1983 
 c 128 s 33; 1983 c 247 s 138; 1984 c 574 s 8; 1984 c 619 s 14; 
 1984 c 654 art 2 s 124; art 5 s 58; 1Sp1985 c 10 s 88; 1986 c 
 444; 1986 c 458 s 7; 1990 c 570 art 4 s 1; 1991 c 233 s 109; 
 1991 c 317 s 1; 1992 c 446 s 3,4; 1993 c 239 art 1 s 1,2; 1993 c 
 307 art 3 s 6,7; 1994 c 628 art 1 s 3; art 3 s 30; 1995 c 141 
 art 4 s 2; 1995 c 212 art 3 s 59; 1997 c 233 art 2 s 3,4; 
 2Sp1997 c 3 s 18; 2000 c 260 s 56; 2000 c 457 s 7,8; 2000 c 461 
 art 3 s 3; art 18 s 1; 2002 c 379 art 1 s 77 

     352D.03 Transfer of assets. 

    Unless an eligible employee enumerated in section 352D.02, 
 subdivision 1 or 1a, has elected coverage under the individual 
 retirement account plan under chapter 354B, a sum of money 
 representing the assets credited to each employee exercising the 
 option contained in section 352D.02, plus an equal employer 
 contribution together with interest for the employment period at 
 the actuarially assumed rates during this period, compounded 
 annually, shall be used for the purchase of shares on behalf of 
 each employee in the accounts of the supplemental retirement 
 fund established by section 11A.17.  Any employer's contribution 
 to amortize the deficit in the state employee's retirement fund 
 shall not, however, be used for the purchase of shares.  

    HIST: 1971 c 604 s 3; 1973 c 35 s 54; 1973 c 624 s 4; 1974 c 
 152 s 12; 1980 c 607 art 14 s 46; 1992 c 446 s 5 

     352D.04 Investment options. 

    Subdivision 1.    Investment options.  (a) A person 
 exercising an option to participate in the retirement program 
 provided by this chapter may elect to purchase shares in one or 
 a combination of the income share account, the growth share 
 account, the international share account, the money market 
 account, the bond market account, the fixed interest account, or 
 the common stock index account established in section 11A.17.  
 The person may elect to participate in one or more of the 
 investment accounts in the fund by specifying, on a form 
 provided by the executive director, the percentage of the 
 person's contributions provided in subdivision 2 to be used to 
 purchase shares in each of the accounts. 

    (b) A participant may indicate in writing on forms provided 
 by the Minnesota state retirement system a choice of options for 
 subsequent purchases of shares.  Until a different written 
 indication is made by the participant, the executive director 
 shall purchase shares in the supplemental fund as selected by 
 the participant.  If no initial option is chosen, 100 percent 
 income shares must be purchased for a participant.  A change in 
 choice of investment option is effective no later than the first 
 pay date first occurring after 30 days following the receipt of 
 the request for a change. 

    (c) Shares in the fixed interest account attributable to 
 any guaranteed investment contract as of July 1, 1994, may not 
 be withdrawn from the fund or transferred to another account 
 until the guaranteed investment contract has expired, unless the 
 participant qualifies for withdrawal under section 352D.05 or 
 for benefit payments under sections 352D.06 to 352D.075. 

    (d) A participant or former participant may also change the 
 investment options selected for all or a portion of the 
 participant's shares previously purchased in accounts, subject 
 to the provisions of paragraph (c) concerning the fixed interest 
 account.  Changes in investment options for the participant's 
 shares must be effected as soon as cash flow to an account 
 practically permits, but not later than six months after the 
 requested change. 

    Subd. 2.    Contribution rates.  (a) The money used to 
 purchase shares under this section is the employee and employer 
 contributions provided in this subdivision. 

    (b) The employee contribution is an amount equal to the 
 employee contribution specified in section 352.04, subdivision 2.

    (c) The employer contribution is an amount equal to six 
 percent of salary.  

    (d) These contributions must be made in the manner provided 
 in section 352.04, subdivisions 4, 5, and 6.  

    (e) For members of the legislature, the contributions under 
 this subdivision also must be made on per diem payments received 
 during a regular or special legislative session, but may not be 
 made on per diem payments received outside of a regular or 
 special legislative session, on the additional compensation 
 attributable to a leadership position under section 3.099, 
 subdivision 3, living expense payments under section 3.101, or 
 special session living expense payments under section 3.103. 

    (f) For a judge who is a member of the unclassified plan 
 under section 352D.02, subdivision 1, paragraph (c), clause 
 (16), the employee contribution rate is eight percent of salary, 
 and there is no employer contribution. 

    HIST: 1971 c 604 s 4; 1973 c 624 s 5; 1974 c 152 s 13; 1980 c 
 607 art 14 s 38; 1981 c 224 s 70; 3Sp1981 c 2 art 1 s 68; 1983 c 
 128 s 34; 1986 c 356 s 9; 1986 c 444; 1988 c 453 s 10; 1989 c 
 319 art 1 s 13; 1992 c 539 s 11; 1993 c 307 art 1 s 35; 1994 c 
 528 art 1 s 12; 1994 c 604 art 1 s 12; 1997 c 233 art 2 s 5,6; 
 2000 c 461 art 18 s 2 

     352D.05 Withdrawal options. 

    Subdivision 1.  No withdrawal of shares shall be permitted 
 prior to termination of covered employment. 

    Subd. 2.  Repealed, 1975 c 368 s 51 

    Subd. 3.    Full or partial withdrawal.  After 
 termination of covered employment or at any time thereafter, a 
 participant is entitled, upon application, to withdraw the cash 
 value of the participant's total shares or leave such shares on 
 deposit with the supplemental retirement fund.  The account is 
 valued at the end of the month in which application for 
 withdrawal is made.  Shares not withdrawn remain on deposit with 
 the supplemental retirement fund until the former participant 
 becomes at least 55 years old, and applies for an annuity under 
 section 352D.06, subdivision 1.  

    Subd. 4.  A participant in the unclassified program may 
 repay regular refunds taken pursuant to section 352.22, as 
 provided in section 352.23.  A participant in the unclassified 
 program or an employee covered by the general plan who has 
 withdrawn the value of the total shares may repay the refund 
 taken and thereupon restore the service credit, rights and 
 benefits forfeited by paying into the fund the amount refunded 
 plus interest at an annual rate of 8.5 percent compounded 
 annually from the date that the refund was taken until the date 
 that the refund is repaid.  If the participant had withdrawn 
 only the employee shares as permitted under prior laws, 
 repayment shall be pro rata.  Payment shall be made in a lump 
 sum.  

    Subd. 5. Repealed, 1993 c 307 art 7 s 1 

    HIST: 1971 c 604 s 5; 1973 c 624 s 6; 1975 c 368 s 44; 1976 c 
 81 s 1; 1978 c 562 s 10; 1980 c 607 art 14 s 39,40; 1986 c 444; 
 1990 c 570 art 12 s 18; 1992 c 598 art 1 s 10; 1993 c 307 art 1 
 s 36,37; art 2 s 17; 2000 c 461 art 3 s 4 

     352D.06 Annuities. 

    Subdivision 1.    Annuity; reserves.  When a participant 
 attains at least age 55, terminates from covered service, and 
 applies for a retirement annuity, the cash value of the 
 participant's shares shall be transferred to the Minnesota 
 postretirement investment fund and used to provide an annuity 
 for the retired employee based upon the participant's age when 
 the benefit begins to accrue according to the reserve basis used 
 by the general state employees retirement plan in determining 
 pensions and reserves.  

    Subd. 2.    Partial value annuity.  A participant has 
 the option in an application for an annuity to apply for and 
 receive a partial value of the total shares and thereafter 
 receive an annuity, as provided in subdivision 1, based on the 
 remaining value of the total shares.  

    Subd. 3.    Accrual date.  An annuity under this section 
 accrues the first day of the first full month after an 
 application is received or after termination of state service, 
 whichever is later.  Upon the former employee's request, the 
 annuity may begin to accrue up to six months before redemption 
 of shares, but not prior to the termination date from covered 
 service, and must be based on the account value at redemption 
 and upon the age of the former employee at the date annuity 
 accrual starts.  The account must be valued and redeemed on the 
 later of the end of the month of termination of covered 
 employment, or the end of the month of receipt of the annuity 
 application for the purpose of computing the annuity. 

    HIST: 1971 c 604 s 6; 1973 c 624 s 7; 1975 c 368 s 45,46; 1980 
 c 607 art 14 s 45 subd 2; 1986 c 444; 1986 c 458 s 8; 1989 c 319 
 art 1 s 14; 2000 c 461 art 3 s 5 

     352D.065 Disability benefits. 

    Subdivision 1.  Repealed, 1975 c 368 s 51 

    Subd. 2.  A participant who becomes totally and permanently 
 disabled has the option even if on leave of absence without pay 
 to receive: 

    (1) The value of the participant's total shares; 

    (2) The value of one-half of the total shares and an 
 annuity based on the value of one-half of the total shares; or 

    (3) An annuity based on the value of the participant's 
 total shares. 

    Subd. 3.  The annuity payable under this section shall 
 begin to accrue the first day of the month following the date of 
 disability and shall be based on the participant's age when the 
 annuity begins to accrue.  The shares shall be valued as of the 
 end of the month following authorization of payments. 

    Subd. 4.  The benefits payable under this section shall not 
 be reduced by amounts received or receivable under applicable 
 workers' compensation laws. 

    Subd. 5.  A participant who returns to covered service 
 after receiving benefits under this section shall not be 
 required or allowed to repay such benefits. 

    HIST: 1973 c 624 s 8; 1975 c 359 s 23; 1975 c 368 s 47,48; 
 1986 c 444; 1986 c 458 s 9 

  352D.07 Repealed, 1973 c 624 s 13 

     352D.075 Death benefits. 

    Subdivision 1.  Repealed, 1975 c 368 s 51 

    Subd. 2.  If a participant dies leaving a spouse and there 
 is no named beneficiary who survives to receive payment or the 
 spouse is named beneficiary, the spouse may receive: 

    (1) The value of the participant's total shares; 

    (2) The value of one-half of the total shares and beginning 
 at age 55 or thereafter receive an annuity based on the value of 
 one-half of the total shares, provided that if the spouse dies 
 before receiving any annuity payments the value of said shares 
 shall be paid to the spouse's children in equal shares, but if 
 no such children survive then to the parents of the spouse in 
 equal shares, but if no such children or parents survive, then 
 to the estate of the spouse; or 

    (3) Beginning at age 55 or thereafter receive an annuity 
 based on the value of the total shares, provided that if the 
 spouse dies before receiving any annuity payments the value of 
 said shares shall be paid to the spouse's children in equal 
 shares, but if no such children survive then to the parents of 
 the spouse in equal shares, but if no such children or parents 
 survive, then to the estate of the spouse; and further provided, 
 if said spouse dies after receiving annuity payments but before 
 receiving payments equal to the value of the employee shares, 
 the value of the employee shares remaining shall be paid to the 
 spouse's children in equal shares, but if no such children 
 survive then to the parents of the spouse in equal shares, but 
 if no such children or parents survive, then to the estate of 
 the spouse.  

    Subd. 3.  If a participant dies and has named a 
 beneficiary, the value of the total shares shall be paid to such 
 beneficiary, but if such beneficiary dies before receiving 
 payment, or if no beneficiary has been named and there is no 
 spouse, the value of said shares shall be paid to the children 
 of the participant in equal shares, but if no such children 
 survive then in equal shares to the parents of the participant, 
 but if no such children or parents survive, then to the estate 
 of the participant.  

    HIST: 1973 c 624 s 9; 1975 c 368 s 49,50; 1986 c 444; 1989 c 
 319 art 1 s 15 

  352D.08 Repealed, 1973 c 624 s 13 

     352D.085 Combined service. 

    Subdivision 1.  Service under the unclassified program for 
 which the employee has been credited with employee shares may be 
 used for the limited purpose of qualifying for benefits under 
 sections 352.115, 352.72, subdivision 1, 352.113, 354.44, 
 354.45, 354.48, and 354.60; provided such service may not be 
 used to qualify for a disability benefit under section 352.113 
 or 354.48 if a participant was under the unclassified program at 
 the time of the disability, and provided further that the years 
 of service and salary paid while the participant was in the 
 unclassified program shall not be used in determining the amount 
 of benefits. 

    Subd. 2.  Repealed, 1975 c 368 s 51 

    HIST: 1973 c 624 s 10; 1986 c 444; 1986 c 458 s 10 

     352D.09 Administration. 

    Subdivision 1.    Administrative agency and standards.  
 The unclassified employees retirement plan and the provisions of 
 this chapter must be administered by the Minnesota state 
 retirement system.  The provisions of chapter 352 govern in all 
 instances where not inconsistent with the provisions of this 
 chapter.  Fiduciary activities of the unclassified employees 
 retirement plan must be undertaken in a manner consistent with 
 chapter 356A. 

    Subd. 2.  Whenever redemption or purchases from the 
 supplemental retirement fund are required to be made, the 
 executive director shall make them.  

    Subd. 3.  The executive director shall annually distribute 
 the prospectus prepared by the supplemental fund, by July 1 or 
 when received from such fund, whichever is later, to each 
 participant in covered employment.  

    Subd. 4.  Whenever benefits or withdrawals are authorized 
 or required to be paid, payment shall be made only after receipt 
 of an application signed by the person or representative 
 authorized to receive the benefit or withdrawal; such 
 application shall be made only on forms authorized by the 
 executive director.  

    Subd. 5.  If the beneficiary, surviving spouse or estate 
 has not made application for benefits within ten years after the 
 date of death of a participant the value of the shares shall be 
 appropriated to the regular fund and provisions of section 
 352.12, subdivision 12 shall govern.  If a former participant 
 fails to make a claim for benefits within five years after 
 termination of covered service or by age 70, whichever is later, 
 the value of the shares shall be appropriated to the general 
 employees retirement fund and the provisions of section 352.22, 
 subdivision 8, shall apply.  

    Subd. 5a.    Small balance accounts.  If a former 
 participant who contributed less than $500 in employee 
 contributions cannot be contacted by the system for five or more 
 years, the value of the shares shall be appropriated to the 
 general employees retirement fund, but upon subsequent contact 
 by the former employee the account shall be reinstated to the 
 amount that would have been payable had the money been left in 
 the unclassified plan. 

    Subd. 6. Repealed, 1994 c 528 art 1 s 15 

    Subd. 7.  The board of directors shall establish a budget 
 and charge participants a fee to pay the administrative expenses 
 of the unclassified program.  Fees cannot be charged on 
 contributions and investment returns attributable to 
 contributions made before July 1, 1992.  Annual total fees 
 charged for plan administration cannot exceed 10/100 of one 
 percent of the contributions and investment returns attributable 
 to contributions made on or after July 1, 1992. 

    Subd. 8.  Repealed, 1998 c 390 art 2 s 21

    HIST: 1971 c 604 s 9; 1973 c 624 s 11; 1981 c 224 s 71; 
 3Sp1981 c 2 art 1 s 69; 1989 c 319 art 8 s 15; 1992 c 539 s 12; 
 1993 c 307 art 1 s 38-40; 1994 c 604 art 1 s 13; 1998 c 390 art 
 2 s 7; 2000 c 461 art 3 s 6 

  352D.10 Repealed, 1981 c 224 s 276 

     352D.11 Purchase of prior service credit. 

    Subdivision 1.    Eligibility.  A qualified legislative 
 employee may purchase prior service credit from the Minnesota 
 state retirement system for service for which the employee did 
 not receive service credit from the state retirement system.  An 
 employee is qualified to purchase prior service credit only if:  

    (1) the employee is a permanent employee of the senate, the 
 house of representatives, or of a joint legislative agency or 
 legislative commission, or a former permanent employee of the 
 senate, the house of representatives, or of a joint legislative 
 agency or legislative commission who has not withdrawn the value 
 of shares in the unclassified program; and 

    (2) before permanent employment the employee served as a 
 temporary, intermittent, or contract employee of the senate, the 
 house of representatives, a joint legislative staff agency, or a 
 legislative commission. 

    Subd. 2.    Payments by employee.  An employee entitled 
 to purchase service credit may make the purchase by paying to 
 the state retirement system an amount equal to the current 
 employee contribution rate in effect for the state retirement 
 system applied to the current or final salary rate multiplied by 
 the months and days of prior temporary, intermittent, or 
 contract legislative service.  Payment shall be made in one lump 
 sum unless the executive director of the state retirement system 
 agrees to accept payment in installments over a period of not 
 more than three years from the date of the agreement.  
 Installment payments shall be charged interest at an annual rate 
 of 8.5 percent compounded annually. 

    Subd. 3.    Certification.  Proof of all legislative 
 employment and the duration of all legislative employment shall 
 be established for current or former employees by certification 
 of the appropriate employer: 

    (1) by the committee on rules and administration of the 
 senate; 

    (2) by the committee on rules and legislative 
 administration of the house of representatives; or 

    (3) by the agency director or commission chair for service 
 as an employee of a joint legislative staff agency or 
 legislative commission. 

    Certification to the executive director of the state 
 retirement system shall include the exact period or periods of 
 employment for which the employee or qualified former employee 
 is entitled to obtain service credit.  Service credit shall be 
 computed and granted upon receiving payment based on the 
 relationship that the temporary, intermittent, or contract 
 service bears to full-time employment.  

    Subd. 4.    Employer contributions.  Employee payments 
 to the state retirement system authorized by this section shall 
 be matched by the current employer of the qualified employee 
 from the appropriation made to the respective legislative 
 expense funds or the appropriation available to the agency or 
 commission.  If the qualified employee is a participant in the 
 unclassified program at the time of payment, payments by the 
 employee and employer shall be used to purchase shares in the 
 Minnesota supplemental retirement fund.  

    HIST: 1983 c 360 s 1; 1986 c 444; 1992 c 598 art 1 s 11 

     352D.12 Transfer of prior service contributions. 

    (a) An employee who is a participant in the unclassified 
 program and who has prior service credit in a covered plan under 
 chapters 3A, 352, 352C, 353, 354, 354A, and 422A may, within the 
 time limits specified in this section, elect to transfer to the 
 unclassified program prior service contributions to one or more 
 of those plans.  Participants with six or more years of prior 
 service credit in a plan governed by chapter 3A or 352C on July 
 1, 1998, may not transfer prior service contributions.  
 Participants with less than six years of prior service credit in 
 a plan governed by chapter 3A or 352C on July 1, 1998, must be 
 contributing to the unclassified plan on or after January 5, 
 1999, in order to transfer prior contributions. 

    (b) For participants with prior service credit in a plan 
 governed by chapter 352, 353, 354, 354A, or 422A, "prior service 
 contributions" means the accumulated employee and equal employer 
 contributions with interest at an annual rate of 8.5 percent 
 compounded annually, based on fiscal year balances.  For 
 participants with less than six years of service credit as of 
 July 1, 1998, and with prior service credit in a plan governed 
 by chapter 3A or 352C, "prior service contributions" means an 
 amount equal to twice the amount of the accumulated member 
 contributions plus annual compound interest at the rate of 8.5 
 percent, computed on fiscal year balances.  

    (c) If a participant has taken a refund from a retirement 
 plan listed in this section, the participant may repay the 
 refund to that plan, notwithstanding any restrictions on 
 repayment to that plan, plus 8.5 percent interest compounded 
 annually and have the accumulated employee and equal employer 
 contributions transferred to the unclassified program with 
 interest at an annual rate of 8.5 percent compounded annually 
 based on fiscal year balances.  If a person repays a refund and 
 subsequently elects to have the money transferred to the 
 unclassified program, the repayment amount, including interest, 
 is added to the fiscal year balance in the year which the 
 repayment was made. 

    (d) A participant electing to transfer prior service 
 contributions credited to a retirement plan governed by chapter 
 352, 353, 354, 354A, or 422A as provided under this section must 
 complete the application for the transfer and repay any refund 
 within one year of the commencement of the employee's 
 participation in the unclassified program.  A participant 
 electing to transfer prior service contributions credited to a 
 retirement plan governed by chapter 3A or 352C as provided under 
 this section must complete the application for the transfer and 
 repay any refund between January 5, 1999, and June 1, 1999, if 
 the employee commenced participation in the unclassified program 
 before January 5, 1999, or within one year of the commencement 
 of the employee's participation in the unclassified program if 
 the employee commenced participation in the unclassified program 
 after January 4, 1999. 

    HIST: 1Sp1985 c 7 s 9; 1992 c 432 art 2 s 1; 1992 c 598 art 1 
 s 12; 1998 c 366 s 74; 1998 c 390 art 6 s 1