2004 Minnesota Statutes

     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