352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED SERVICE.
(a) An employee who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who returns to state
service upon discharge from service in the uniformed service within the time frames required
in United States Code, title 38, section 4312(e), may obtain service credit for the period of
the uniformed service as further specified in this section, provided that the employee did not
separate from uniformed service with a dishonorable or bad conduct discharge or under other
than honorable conditions.
(b) The employee may obtain credit by paying into the fund an equivalent employee
contribution based upon the contribution rate or rates in effect at the time that the uniformed
service was performed multiplied by the full and fractional years being purchased and applied to
the annual salary rate. The annual salary rate is the average annual salary during the purchase
period that the employee would have received if the employee had continued to be employed
in covered employment rather than to provide uniformed service, or, if the determination of
that rate is not reasonably certain, the annual salary rate is the employee's average salary rate
during the 12-month period of covered employment rendered immediately preceding the period
of the uniformed service.
(c) The equivalent employer contribution and, if applicable, the equivalent additional
employer contribution provided in this chapter must be paid by the department employing the
employee from funds available to the department at the time and in the manner provided in this
chapter, using the employer and additional employer contribution rate or rates in effect at the time
that the uniformed service was performed, applied to the same annual salary rate or rates used to
compute the equivalent employee contribution.
(d) If the employee equivalent contributions provided in this section are not paid in full,
the employee's allowable service credit must be prorated by multiplying the full and fractional
number of years of uniformed service eligible for purchase by the ratio obtained by dividing the
total employee contribution received by the total employee contribution otherwise required
under this section.
(e) To receive service credit under this section, the contributions specified in this section
must be transmitted to the Minnesota State Retirement System during the period which begins
with the date on which the individual returns to state service and which has a duration of three
times the length of the uniformed service period, but not to exceed five years. If the determined
payment period is less than one year, the contributions required under this section to receive
service credit may be made within one year of the discharge date.
(f) The amount of service credit obtainable under this section may not exceed five years
unless a longer purchase period is required under United States Code, title 38, section 4312.
(g) The employing unit shall pay interest on all equivalent employee and employer
contribution amounts payable under this section. Interest must be computed at a rate of 8.5 percent
compounded annually from the end of each fiscal year of the leave or the break in service to the
end of the month in which the payment is received.
History: 1957 c 928 s 20; Ex1959 c 6 s 25; 1963 c 383 s 53; 1965 c 230 s 15; Ex1967 c
57 s 22; 1969 c 188 s 3; 1973 c 653 s 38; 1986 c 444; 1987 c 229 art 6 s 1; 1992 c 598 art 1 s
5; 2004 c 267 art 3 s 1; 2007 c 134 art 2 s 7