2005 Minnesota Statutes

     422A.08 Financing of city's contribution. 

    Subdivision 1.    Financing.  All income, interest and dividends 
 derived 
 from deposits and investments authorized by this chapter shall 
 be placed to the credit of the retirement fund. 

    Subd. 2. Repealed, 1981 c 224 s 276 

    Subd. 3. Repealed, 1981 c 224 s 276 

    Subd. 4. Repealed, 1981 c 224 s 276 

    Subd. 5.    Service credit purchase.  Any contributor who prior 
 to entering the service 
 of the city was an employee of a public corporation, is 
 authorized, using the procedure in subdivision 5a, to purchase 
 allowable service credit in the retirement fund for employment 
 by the public corporation in the same manner as though the 
 service had been rendered to the city, providing that the 
 individual has not received service credit and is not eligible 
 to receive service credit for this period under any other plan 
 or fund listed in section 356.30, subdivision 3.  Before 
 receiving credit for service rendered to a public corporation as 
 herein set forth, the contributing employee shall make 
 application therefor in writing to the retirement board, and 
 shall contribute to the retirement fund the amount specified in 
 subdivision 5a. 

    Subd. 5a.    Purchase payment amount.  (a) To purchase 
 credit for prior service under this section, there must be paid 
 to the Minneapolis Employees Retirement Fund an amount equal to 
 the present value, on the date of payment, of the amount of the 
 additional retirement annuity obtained by the purchase of the 
 additional service credit.  Calculation of this amount must be 
 made using the applicable preretirement interest rate for the 
 association specified in section 356.215, subdivision 8, and the 
 mortality table adopted for the fund.  The calculation must 
 assume continuous future service in the fund until, and 
 retirement at, the age at which the minimum requirements of the 
 fund for normal retirement or retirement with an annuity 
 unreduced for retirement at an early age, including section 
 356.30, are met with the additional service credit purchased.  
 The calculation must also assume a future salary history that 
 includes annual salary increases at the applicable salary 
 increase rate for the fund or association specified in section 
 356.215, subdivision 8.  The member must establish in the 
 records of the fund proof of the service for which the purchase 
 of prior service is requested.  The manner of the proof of 
 service must be in accordance with procedures prescribed by the 
 executive director. 

    (b) Payment must be made in one lump sum. 

    (c) Payment of the amount calculated under this subdivision 
 must be made by the member.  However, the current or former 
 governmental subdivision employer of the member may, at its 
 discretion, pay all or any portion of the payment amount that 
 exceeds an amount equal to the employee contribution rates in 
 effect during the period or periods of prior service applied to 
 the actual salary rates in effect during the period or periods 
 of prior service, plus interest at the rate of six percent a 
 year compounded annually from the date on which the 
 contributions would otherwise have been made to the date on 
 which the payment is made. 

    Subd. 6. Repealed, 1981 c 224 s 276 

    HIST: 1973 c 133 s 8; 1973 c 770 s 2; 1974 c 73 s 2; 1977 c 
 399 s 13,14; 1979 c 293 s 7; 1980 c 607 art 16 s 15; 1981 c 224 
 s 183,184; 1993 c 307 art 10 s 3,4; 2002 c 392 art 11 s 52