Bill Text: MN HF344 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Public Employees Retirement Association; legislative approval requirements removed, legislative notification requirements modified, privatized public hospital pension benefit eligibility clarified, and various administrative changes made.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-04 - Introduction and first reading, referred to Government Operations [HF344 Detail]
Download: Minnesota-2013-HF344-Introduced.html
1.2relating to retirement; Public Employees Retirement Association privatization
1.3chapter; removing legislative approval requirements; modifying legislative
1.4notification requirements; clarifying privatized public hospital pension benefit
1.5eligibility; making various administrative changes; amending Minnesota Statutes
1.62012, sections 353F.02, subdivisions 3, 6, by adding a subdivision; 353F.025,
1.7subdivisions 1, 2; 353F.03; 353F.04; 353F.05; 353F.051, subdivision 1; 353F.052;
1.8353F.06; 353F.07; 353F.08; repealing Minnesota Statutes 2012, sections 353F.02,
1.9subdivisions 4, 5; 353F.025, subdivision 3.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 353F.02, subdivision 3, is amended to read:
1.12 Subd. 3. Effective date of privatization. "Effective date of privatization" means
1.13the date that the operation ofthe a medical facility or other public employing unit is
1.14assumed by another employer or the date thatthe a medical facility or other public
1.15employing unit is purchased by another employer and active membership in the Public
1.16Employees Retirement Association consequently terminates.
1.17EFFECTIVE DATE.This section is effective the day following final enactment.
1.18 Sec. 2. Minnesota Statutes 2012, section 353F.02, is amended by adding a subdivision
1.19to read:
1.20 Subd. 4a. Privatized former public employer. "Privatized former public
1.21employer" means a medical facility or other public employing unit formerly included in
1.22the definition of governmental subdivision under section 353.01, subdivision 6, that is
1.23privatized and whose employees are certified for participation under this chapter.
1.24EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 3. Minnesota Statutes 2012, section 353F.02, subdivision 6, is amended to read:
2.2 Subd. 6.Terminated medical facility or other Privatized former public
2.3employing unit employee. "Terminated medical facility or other (a) "Privatized former
2.4publicemploying unit employee" means a person who:
2.5(1) was employed by the privatized former public employer on the day before the
2.6effective dateby the medical facility or other public employing unit of privatization; or
2.7(2) terminated employment with themedical facility or other privatized former
2.8publicemploying unit employer on the day before the effective date; and
2.9(3) was a participant in the general employees retirement plan of the Public
2.10Employees Retirement Association at the time of termination of employment with the
2.11medical facility or other privatized former public employing unit employer.
2.12(b) "Privatized former public employee" does not mean a person who, on the day
2.13before the effective date of privatization, was simultaneously employed with the privatized
2.14former public employer and by a governmental subdivision under section 353.01,
2.15subdivision 6, and who, after the effective date of privatization, continues to accrue
2.16service credit under section 353.01, subdivision 16, through simultaneous employment
2.17with a governmental subdivision.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
2.19 Sec. 4. Minnesota Statutes 2012, section 353F.025, subdivision 1, is amended to read:
2.20 Subdivision 1. Eligibility determination. (a) The chief clerical officer of a
2.21governmental subdivision may submit a resolution from the governing body to the
2.22executive director of the Public Employees Retirement Association which supports
2.23providing coverage under this chapter for employees of that governmental subdivision
2.24who are privatized, and which states that the governing body will pay for actuarial
2.25calculations, as further specified in paragraph (c).
2.26 (b) The governing body must also provide a copy of any applicable purchase or
2.27lease agreement and any other information requested by the executive director to allow the
2.28executive director to verify that under the proposed employer change, the new employer
2.29does not qualify as a governmental subdivision under section353.01, subdivision 6 ,
2.30making the employees ineligible for continued coverage as active members of the general
2.31employees retirement plan of the Public Employees Retirement Association.
2.32 (c) Following receipt of a resolution and a determination by the executive director
2.33that the new employer is not a governmental subdivision, the executive director shall
2.34direct the consulting actuary retained under section356.214 to determine whether the
2.35general employees retirement plan of the Public Employees Retirement Association, if
3.1coverage under this chapter is provided, is expected to receive a net gain or a net loss if
3.2privatization occurs. A net gain is expected if the actuarial liability of the special benefit
3.3coverage provided under this chapter, if extended to the applicable employees under the
3.4privatization, is less than the actuarial gain otherwise to accrue to the plan. A net loss is
3.5expected if the actuarial accrued liability of the special benefit coverage provided under
3.6this chapter, if extended to the applicable employees under the privatization, is more than
3.7the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations
3.8used to make this determination must be within one year of the effective date, as defined
3.9in section
353F.02, subdivision 3 of privatization
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 5. Minnesota Statutes 2012, section 353F.025, subdivision 2, is amended to read:
3.12 Subd. 2.Recommendation to legislature Reporting privatizations. (a) If the
3.13actuarial calculations under subdivision 1, paragraph (c), indicatethat privatization can
3.14be approved because a net gain to the general employees retirement plan of the Public
3.15Employees Retirement Association is expecteddue to the privatization, or if paragraph (c)
3.16 (b) applies, the executive director shall, following acceptance of the actuarial calculations
3.17by the board of trustees, forwarda recommendation notice and supporting documentation
3.18to the chairof the Legislative Commission on Pensions and Retirement, the chair of the
3.19Governmental Operations, Reform, Technology and Elections Committee of the house of
3.20representatives, the chair of the State and Local Government Operations and Oversight
3.21Committee of the senate, and the executive director of the Legislative Commission
3.22on Pensions and Retirement and the chairs and the ranking minority members of the
3.23committees with jurisdiction over governmental operations in the house of representatives
3.24and senate.The recommendation must be in the form of an addition to the definition of
3.25"medical facility" under section
353F.02, subdivision 4, or to "other public employing
3.26unit" under section
353F.02, subdivision 5, whichever is applicable. The recommendation
3.27must be forwarded to the legislature before January 15 for the recommendation to be
3.28considered in that year's legislative session. The recommendation may be included as part
3.29of public pension administrative legislation under section
356B.05.
3.30(b) If a medical facility or other public employing unit listed under section
353F.02,
3.31subdivision 4 or 5, fails to privatize within one year of the final enactment date of the
3.32legislation adding the entity to the applicable definition, its inclusion under this chapter is
3.33voided, and the executive director shall include in the subsequent proposed legislation under
3.34paragraph (a) a recommendation that the applicable entity be stricken from the definition.
4.1(c) (b) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the
4.2executive director shallforward a recommendation recommend to the board of trustees
4.3that the privatization beincluded as an addition under paragraph (a) approved if the chief
4.4clerical officer of the applicable governmental subdivision submits a resolution from
4.5the governing body specifying that a lump sum payment will be made to theexecutive
4.6director Public Employees Retirement Association equal to the net loss, plus interest.
4.7The interest must be computed using the applicable ultimate preretirement interest rate
4.8assumption under section356.215, subdivision 8 , expressed as a monthly rate, from the
4.9date of the actuarial valuation from which the actuarial accrued liability data was used to
4.10determine the net loss in the actuarial study under subdivision 1, to the date of payment,
4.11with annual compounding. Payment must be made on or after the effective datedefined
4.12under section
353F.02
4.13(c) The Public Employees Retirement Association must maintain a list that includes
4.14the names of all privatized former public employers in the association's comprehensive
4.15annual financial report and on the association's Web site. Annually by March 1, the
4.16association must submit to the executive director of the Legislative Commission on
4.17Pensions and Retirement the names of any privatized former public employers approved
4.18since the publication of the previous fiscal year's comprehensive annual financial report.
4.19EFFECTIVE DATE.This section is effective the day following final enactment.
4.20 Sec. 6. Minnesota Statutes 2012, section 353F.03, is amended to read:
4.21353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.
4.22Notwithstanding any provision of chapter 353 to the contrary, aterminated medical
4.23facility or other privatized former public employing unit employee is eligible to receive a
4.24retirement annuity under section353.29 of the edition of Minnesota Statutes published
4.25in the year before the year in which the privatization occurred, without regard to the
4.26requirement specified in section353.01, subdivision 47 .
4.27EFFECTIVE DATE.This section is effective the day following final enactment.
4.28 Sec. 7. Minnesota Statutes 2012, section 353F.04, is amended to read:
4.29353F.04 AUGMENTATION INTEREST RATES FORTERMINATED
4.30MEDICAL OR OTHER PRIVATIZED FORMER PUBLIC EMPLOYING UNIT
4.31FACILITY EMPLOYEES.
4.32 Subdivision 1. Enhanced augmentation rates. (a) The deferred annuity of a
4.33terminated medical facility or other privatized former public employing unit employee is
5.1subject to augmentation under section353.71, subdivision 2 , of the edition of Minnesota
5.2Statutes published in the year in which the privatization occurred, except that the rate of
5.3augmentation is as specified in this subdivision.
5.4 (b) This paragraph applies if thelegislation adding the medical facility or other
5.5employing unit to section
353F.02, subdivision 4 or 5, as applicable, effective date of
5.6privatization wasenacted before July 26, 2005, and became effective before January 1,
5.72008, for the Hutchinson Area Health Care on or before January 1, 2007, for all other
5.8medical facilities and all other employing units and also applies to Hutchinson Area Health
5.9Care with a privatization effective date of January 1, 2008. For aterminated medical
5.10facility or other privatized former public employing unit employee, the augmentation
5.11rate is 5.5 percent compounded annually until January 1 following the year in which the
5.12person attains age 55. From that date to the effective date of retirement, the augmentation
5.13rate is 7.5 percent compounded annually.
5.14 (c) If paragraph (b) is not applicable, and if the effective date of the privatization is
5.15before January 1, 2011, the augmentation rate is four percent compounded annually until
5.16January 1, following the year in which the person attains age 55. From that date to the
5.17effective date of retirement, the augmentation rate is six percent compounded annually.
5.18(d) If the effective date of the privatization is after December 31, 2010, the applicable
5.19augmentation rate depends on the result of computations specified in section353F.025,
5.20subdivision 1 . If those computations indicate no loss or a net gain to the fund of the
5.21general employees retirement plan of the Public Employees Retirement Association, the
5.22augmentation rate is 2.0 percent compounded annually until the effective date of retirement.
5.23If the computations under that subdivision indicate a net loss to the fund if a 2.0 percent
5.24augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is used, then the
5.25augmentation rate is 1.0 percent compounded annually until the effective date of retirement.
5.26(e) The term "effective date of the privatization" as used in this subdivision means
5.27the "effective date" as defined in section
353F.02, subdivision 3.
5.28 Subd. 2. Exceptions. The increased augmentation rates specified in subdivision
5.291 do not applyif the terminated medical facility or other to a privatized former public
5.30employing unit employee:
5.31(1) beginning the first of the month in which the privatized former public employee
5.32becomes covered again by a retirement plan enumerated in section356.30, subdivision 3 , if
5.33the employee continues to be covered and accrues at least six months of credited service;or
5.34(2) beginning the first of the month after a privatized former public employee
5.35terminates service with the successor entity; or
6.1(2) (3) if the person begins receipt of a retirement annuity while employed by
6.2the employer which assumed operations of or purchased themedical facility or other
6.3 privatized former publicemploying unit or purchased the medical facility or other public
6.4employing unit employer.
6.5EFFECTIVE DATE.This section is effective the day following final enactment.
6.6 Sec. 8. Minnesota Statutes 2012, section 353F.05, is amended to read:
6.7353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE
6.8FOR EARLY RETIREMENT PURPOSES.
6.9(a) For the purpose of determining eligibility for early retirement benefits provided
6.10under section353.30, subdivision 1a , of the edition of Minnesota Statutes published in
6.11the year before the year in which the privatization occurred, and notwithstanding any
6.12provision of chapter 353, to the contrary, the years of allowable service for aterminated
6.13medical facility or other privatized former public employing unit employee who transfers
6.14employment on the effective date of privatization and does not apply for a refund of
6.15contributions under section353.34, subdivision 1 , of the edition of Minnesota Statutes
6.16published in the year before the year in which the privatization occurred, or any similar
6.17provision, includes service with the successor employer to themedical facility or other
6.18 privatized former publicemploying unit employer following the effective date. The
6.19successor employer shall provide any reports that the executive director of the Public
6.20Employees Retirement Association may reasonably request to permit calculation of
6.21benefits.
6.22(b) To be eligible for early retirement benefits under this section, the individual must
6.23separate from service with the successor to the privatized former public employerto the
6.24medical facility. The terminated eligible individual privatized former public employee, or
6.25an individual authorized to act on behalf of thatindividual employee, may apply for an
6.26annuity following application procedures under section353.29, subdivision 4 .
6.27EFFECTIVE DATE.This section is effective the day following final enactment.
6.28 Sec. 9. Minnesota Statutes 2012, section 353F.051, subdivision 1, is amended to read:
6.29 Subdivision 1. Eligibility. Aterminated medical facility or other privatized former
6.30publicemploying unit employee who is totally and permanently disabled under Minnesota
6.31Statutes 1998, section353.01, subdivision 19 , and who had a medically documented
6.32preexisting condition of the disability before the termination of coverage, may apply for
6.33a disability benefit.
7.1EFFECTIVE DATE.This section is effective the day following final enactment.
7.2 Sec. 10. Minnesota Statutes 2012, section 353F.052, is amended to read:
7.3353F.052 APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD
7.4PROVISION.
7.5Notwithstanding any provisions of law to the contrary, subdivisions within section
7.6353.32
of the edition of Minnesota Statutes published in the year before the year in which
7.7a privatization occurred, applicable to the surviving spouse or dependent children of a
7.8former member as defined in section353.01, subdivision 7a , apply to the survivors of a
7.9terminated medical facility or other privatized former public employing unit employee.
7.10EFFECTIVE DATE.This section is effective the day following final enactment.
7.11 Sec. 11. Minnesota Statutes 2012, section 353F.06, is amended to read:
7.12353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS
7.13LIMITATIONS.
7.14Upon termination of service from the privatized former public employer or any
7.15successor entity after the effective date of privatization, a privatized former public
7.16employee must separate from any employment relationship with the privatized former
7.17public employer or any successor entity for at least 30 days to qualify to receive a
7.18retirement annuity under this chapter. If the privatized former public employee thereafter
7.19resumes employment with the privatized former public employer or any successor entity
7.20or a governmental subdivision under section 353.01, subdivision 6, the reemployed
7.21annuitant earnings limitations of section353.37 apply to any service by a terminated
7.22medical facility or other public employing unit employee as an employee of the successor
7.23employer to the medical facility.
7.24EFFECTIVE DATE.This section is effective the day following final enactment.
7.25 Sec. 12. Minnesota Statutes 2012, section 353F.07, is amended to read:
7.26353F.07 EFFECT ON REFUND.
7.27Notwithstanding any provision of chapter 353 to the contrary,terminated medical
7.28facility or other privatized former public employing unit employees may receive a refund
7.29of employee accumulated contributions plus interest as provided in section353.34,
7.30subdivision 2 , at any time after the transfer of employment to the successor employer of
7.31theterminated medical facility or other privatized former public employing unit employer.
8.1If aterminated medical facility or other privatized former public employing unit employee
8.2has received a refund from a pension plan listed in section356.30, subdivision 3 , the
8.3person may not repay that refund unless the person again becomes a member of one of
8.4those listed plans and complies with section356.30, subdivision 2 .
8.5EFFECTIVE DATE.This section is effective the day following final enactment.
8.6 Sec. 13. Minnesota Statutes 2012, section 353F.08, is amended to read:
8.7353F.08 COUNSELING SERVICES.
8.8Themedical facility or other privatized former public employing unit employer and
8.9the executive director of the Public Employees Retirement Association shall provide
8.10terminated medical facility or other privatized former public employing unit employees
8.11with counseling on their benefits available under the general employees retirement plan
8.12of the Public Employees Retirement Association duringthe 90 days following a period
8.13mutually agreed upon before or after the effective date of privatization.
8.14EFFECTIVE DATE.This section is effective the day following final enactment.
8.15 Sec. 14. REPEALER.
8.16Minnesota Statutes 2012, sections 353F.02, subdivisions 4 and 5; and 353F.025,
8.17subdivision 3, are repealed.
8.18EFFECTIVE DATE.This section is effective the day following final enactment.
1.3chapter; removing legislative approval requirements; modifying legislative
1.4notification requirements; clarifying privatized public hospital pension benefit
1.5eligibility; making various administrative changes; amending Minnesota Statutes
1.62012, sections 353F.02, subdivisions 3, 6, by adding a subdivision; 353F.025,
1.7subdivisions 1, 2; 353F.03; 353F.04; 353F.05; 353F.051, subdivision 1; 353F.052;
1.8353F.06; 353F.07; 353F.08; repealing Minnesota Statutes 2012, sections 353F.02,
1.9subdivisions 4, 5; 353F.025, subdivision 3.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 353F.02, subdivision 3, is amended to read:
1.12 Subd. 3. Effective date of privatization. "Effective date of privatization" means
1.13the date that the operation of
1.14assumed by another employer or the date that
1.15employing unit is purchased by another employer and active membership in the Public
1.16Employees Retirement Association consequently terminates.
1.17EFFECTIVE DATE.This section is effective the day following final enactment.
1.18 Sec. 2. Minnesota Statutes 2012, section 353F.02, is amended by adding a subdivision
1.19to read:
1.20 Subd. 4a. Privatized former public employer. "Privatized former public
1.21employer" means a medical facility or other public employing unit formerly included in
1.22the definition of governmental subdivision under section 353.01, subdivision 6, that is
1.23privatized and whose employees are certified for participation under this chapter.
1.24EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 3. Minnesota Statutes 2012, section 353F.02, subdivision 6, is amended to read:
2.2 Subd. 6.
2.3
2.4public
2.5(1) was employed by the privatized former public employer on the day before the
2.6effective date
2.7(2) terminated employment with the
2.8public
2.9(3) was a participant in the general employees retirement plan of the Public
2.10Employees Retirement Association at the time of termination of employment with the
2.11
2.12(b) "Privatized former public employee" does not mean a person who, on the day
2.13before the effective date of privatization, was simultaneously employed with the privatized
2.14former public employer and by a governmental subdivision under section 353.01,
2.15subdivision 6, and who, after the effective date of privatization, continues to accrue
2.16service credit under section 353.01, subdivision 16, through simultaneous employment
2.17with a governmental subdivision.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
2.19 Sec. 4. Minnesota Statutes 2012, section 353F.025, subdivision 1, is amended to read:
2.20 Subdivision 1. Eligibility determination. (a) The chief clerical officer of a
2.21governmental subdivision may submit a resolution from the governing body to the
2.22executive director of the Public Employees Retirement Association which supports
2.23providing coverage under this chapter for employees of that governmental subdivision
2.24who are privatized, and which states that the governing body will pay for actuarial
2.25calculations, as further specified in paragraph (c).
2.26 (b) The governing body must also provide a copy of any applicable purchase or
2.27lease agreement and any other information requested by the executive director to allow the
2.28executive director to verify that under the proposed employer change, the new employer
2.29does not qualify as a governmental subdivision under section
2.30making the employees ineligible for continued coverage as active members of the general
2.31employees retirement plan of the Public Employees Retirement Association.
2.32 (c) Following receipt of a resolution and a determination by the executive director
2.33that the new employer is not a governmental subdivision, the executive director shall
2.34direct the consulting actuary retained under section
2.35general employees retirement plan of the Public Employees Retirement Association, if
3.1coverage under this chapter is provided, is expected to receive a net gain or a net loss if
3.2privatization occurs. A net gain is expected if the actuarial liability of the special benefit
3.3coverage provided under this chapter, if extended to the applicable employees under the
3.4privatization, is less than the actuarial gain otherwise to accrue to the plan. A net loss is
3.5expected if the actuarial accrued liability of the special benefit coverage provided under
3.6this chapter, if extended to the applicable employees under the privatization, is more than
3.7the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations
3.8used to make this determination must be within one year of the effective date
3.9
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 5. Minnesota Statutes 2012, section 353F.025, subdivision 2, is amended to read:
3.12 Subd. 2.
3.13actuarial calculations under subdivision 1, paragraph (c), indicate
3.14be approved because a net gain to the general employees retirement plan of the Public
3.15Employees Retirement Association is expected
3.16 (b) applies, the executive director shall, following acceptance of the actuarial calculations
3.17by the board of trustees, forward
3.18to the chair
3.19
3.20
3.21
3.22on Pensions and Retirement and the chairs and the ranking minority members of the
3.23committees with jurisdiction over governmental operations in the house of representatives
3.24and senate.
3.25
3.26
3.27
3.28
3.29
3.30
3.31
3.32
3.33
3.34
4.1
4.2executive director shall
4.3that the privatization be
4.4clerical officer of the applicable governmental subdivision submits a resolution from
4.5the governing body specifying that a lump sum payment will be made to the
4.6
4.7The interest must be computed using the applicable ultimate preretirement interest rate
4.8assumption under section
4.9date of the actuarial valuation from which the actuarial accrued liability data was used to
4.10determine the net loss in the actuarial study under subdivision 1, to the date of payment,
4.11with annual compounding. Payment must be made on or after the effective date
4.12
4.13(c) The Public Employees Retirement Association must maintain a list that includes
4.14the names of all privatized former public employers in the association's comprehensive
4.15annual financial report and on the association's Web site. Annually by March 1, the
4.16association must submit to the executive director of the Legislative Commission on
4.17Pensions and Retirement the names of any privatized former public employers approved
4.18since the publication of the previous fiscal year's comprehensive annual financial report.
4.19EFFECTIVE DATE.This section is effective the day following final enactment.
4.20 Sec. 6. Minnesota Statutes 2012, section 353F.03, is amended to read:
4.21353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.
4.22Notwithstanding any provision of chapter 353 to the contrary, a
4.23
4.24retirement annuity under section
4.25in the year before the year in which the privatization occurred, without regard to the
4.26requirement specified in section
4.27EFFECTIVE DATE.This section is effective the day following final enactment.
4.28 Sec. 7. Minnesota Statutes 2012, section 353F.04, is amended to read:
4.29353F.04 AUGMENTATION INTEREST RATES FOR
4.30
4.31
4.32 Subdivision 1. Enhanced augmentation rates. (a) The deferred annuity of a
4.33
5.1subject to augmentation under section
5.2Statutes published in the year in which the privatization occurred, except that the rate of
5.3augmentation is as specified in this subdivision.
5.4 (b) This paragraph applies if the
5.5
5.6privatization was
5.7
5.8
5.9Care with a privatization effective date of January 1, 2008. For a
5.10
5.11rate is 5.5 percent compounded annually until January 1 following the year in which the
5.12person attains age 55. From that date to the effective date of retirement, the augmentation
5.13rate is 7.5 percent compounded annually.
5.14 (c) If paragraph (b) is not applicable, and if the effective date of the privatization is
5.15before January 1, 2011, the augmentation rate is four percent compounded annually until
5.16January 1, following the year in which the person attains age 55. From that date to the
5.17effective date of retirement, the augmentation rate is six percent compounded annually.
5.18(d) If the effective date of the privatization is after December 31, 2010, the applicable
5.19augmentation rate depends on the result of computations specified in section
5.20subdivision 1
5.21general employees retirement plan of the Public Employees Retirement Association, the
5.22augmentation rate is 2.0 percent compounded annually until the effective date of retirement.
5.23If the computations under that subdivision indicate a net loss to the fund if a 2.0 percent
5.24augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is used, then the
5.25augmentation rate is 1.0 percent compounded annually until the effective date of retirement.
5.26
5.27
5.28 Subd. 2. Exceptions. The increased augmentation rates specified in subdivision
5.291 do not apply
5.30
5.31(1) beginning the first of the month in which the privatized former public employee
5.32becomes covered again by a retirement plan enumerated in section
5.33the employee continues to be covered and accrues at least six months of credited service;
5.34(2) beginning the first of the month after a privatized former public employee
5.35terminates service with the successor entity; or
6.1
6.2the employer which assumed operations of or purchased the
6.3 privatized former public
6.4
6.5EFFECTIVE DATE.This section is effective the day following final enactment.
6.6 Sec. 8. Minnesota Statutes 2012, section 353F.05, is amended to read:
6.7353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE
6.8FOR EARLY RETIREMENT PURPOSES.
6.9(a) For the purpose of determining eligibility for early retirement benefits provided
6.10under section
6.11the year before the year in which the privatization occurred, and notwithstanding any
6.12provision of chapter 353, to the contrary, the years of allowable service for a
6.13
6.14employment on the effective date of privatization and does not apply for a refund of
6.15contributions under section
6.16published in the year before the year in which the privatization occurred, or any similar
6.17provision, includes service with the successor employer to the
6.18 privatized former public
6.19successor employer shall provide any reports that the executive director of the Public
6.20Employees Retirement Association may reasonably request to permit calculation of
6.21benefits.
6.22(b) To be eligible for early retirement benefits under this section, the individual must
6.23separate from service with the successor to the privatized former public employer
6.24
6.25an individual authorized to act on behalf of that
6.26annuity following application procedures under section
6.27EFFECTIVE DATE.This section is effective the day following final enactment.
6.28 Sec. 9. Minnesota Statutes 2012, section 353F.051, subdivision 1, is amended to read:
6.29 Subdivision 1. Eligibility. A
6.30public
6.31Statutes 1998, section
6.32preexisting condition of the disability before the termination of coverage, may apply for
6.33a disability benefit.
7.1EFFECTIVE DATE.This section is effective the day following final enactment.
7.2 Sec. 10. Minnesota Statutes 2012, section 353F.052, is amended to read:
7.3353F.052 APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD
7.4PROVISION.
7.5Notwithstanding any provisions of law to the contrary, subdivisions within section
7.7a privatization occurred, applicable to the surviving spouse or dependent children of a
7.8former member as defined in section
7.9
7.10EFFECTIVE DATE.This section is effective the day following final enactment.
7.11 Sec. 11. Minnesota Statutes 2012, section 353F.06, is amended to read:
7.12353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS
7.13LIMITATIONS.
7.14Upon termination of service from the privatized former public employer or any
7.15successor entity after the effective date of privatization, a privatized former public
7.16employee must separate from any employment relationship with the privatized former
7.17public employer or any successor entity for at least 30 days to qualify to receive a
7.18retirement annuity under this chapter. If the privatized former public employee thereafter
7.19resumes employment with the privatized former public employer or any successor entity
7.20or a governmental subdivision under section 353.01, subdivision 6, the reemployed
7.21annuitant earnings limitations of section
7.22
7.23
7.24EFFECTIVE DATE.This section is effective the day following final enactment.
7.25 Sec. 12. Minnesota Statutes 2012, section 353F.07, is amended to read:
7.26353F.07 EFFECT ON REFUND.
7.27Notwithstanding any provision of chapter 353 to the contrary,
7.28
7.29of employee accumulated contributions plus interest as provided in section
7.30subdivision 2
7.31the
8.1If a
8.2has received a refund from a pension plan listed in section
8.3person may not repay that refund unless the person again becomes a member of one of
8.4those listed plans and complies with section
8.5EFFECTIVE DATE.This section is effective the day following final enactment.
8.6 Sec. 13. Minnesota Statutes 2012, section 353F.08, is amended to read:
8.7353F.08 COUNSELING SERVICES.
8.8The
8.9the executive director of the Public Employees Retirement Association shall provide
8.10
8.11with counseling on their benefits available under the general employees retirement plan
8.12of the Public Employees Retirement Association during
8.13mutually agreed upon before or after the effective date of privatization.
8.14EFFECTIVE DATE.This section is effective the day following final enactment.
8.15 Sec. 14. REPEALER.
8.16Minnesota Statutes 2012, sections 353F.02, subdivisions 4 and 5; and 353F.025,
8.17subdivision 3, are repealed.
8.18EFFECTIVE DATE.This section is effective the day following final enactment.
