Bill Text: MN SF1475 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public employees retirement association (PERA) prior service credit purchase authorization
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-23 - Referred to State Government Innovation and Veterans [SF1475 Detail]
Download: Minnesota-2011-SF1475-Introduced.html
1.2relating to retirement; general employees retirement plan of the Public
1.3Employees Retirement Association; authorizing the purchase of prior service
1.4credit for uncredited public employment by Crookston Township.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. SERVICE CREDIT PURCHASE AUTHORIZATION FOR
1.7UNCREDITED PRIOR PUBLIC EMPLOYMENT.
1.8(a) An eligible person described in paragraph (b) is entitled to purchase allowable
1.9service in the general employees retirement plan of the Public Employees Retirement
1.10Association under Minnesota Statutes, section 353.01, subdivision 16, for the period
1.11described in paragraph (c) upon the payment of the purchase requirement specified in
1.12paragraph (e).
1.13(b) An eligible person is a person who:
1.14(1) was born on September 10, 1949;
1.15(2) was first employed by Crookston Township on July 1, 1990;
1.16(3) was enrolled in the general employees retirement plan of the Public Employees
1.17Retirement Association on September 15, 2010; and
1.18(4) had omitted deductions paid for allowable service for Crookston Township
1.19back to January 1, 2007.
1.20(c) The period of prior service credit available for purchase is the period of
1.21Crookston Township employment from July 1, 1990, to December 31, 2006, if the service
1.22was not that of an independent contractor and the compensation for the service met or
1.23exceeded the applicable minimum monthly salary threshold amount for plan coverage.
2.1(d) The eligible person must apply with the executive director of the Public
2.2Employees Retirement Association to make the service credit purchase under this section.
2.3The application must be in writing and must include all necessary relevant documentation
2.4that the executive director may require.
2.5(e) Allowable service credit under Minnesota Statutes, section 353.01, subdivision
2.616, must be granted by the general employees retirement plan of the Public Employees
2.7Retirement Association to the eligible person upon the receipt of the prior service credit
2.8purchase payment amount required under Minnesota Statutes, section 356.551. Of the
2.9total prior service credit purchase payment amount under Minnesota Statutes, section
2.10356.551, the eligible person must pay an amount equal to the employee contribution rates
2.11in effect during the uncredited employment period applied to the actual salary rates of the
2.12eligible person during the period, plus annual compound interest at the rate of 8.5 percent
2.13from the date on which the member contribution payment should have been made if made
2.14in a timely fashion until the date on which the equivalent contribution is actually made. If
2.15the eligible person makes the payment, Crookston Township shall pay the balance of the
2.16total prior service credit purchase payment amount calculated under Minnesota Statutes,
2.17section 356.551, within 60 days of the date on which the treasurer of Crookston Township
2.18is ratified by the executive director of the Public Employees Retirement Association that
2.19the member contribution payment had been received by the association. If Crookston
2.20Township fails to pay its portion of the prior service credit purchase payment amount
2.21under this section, the executive director of the Public Employees Retirement Association
2.22shall collect the unpaid amount under Minnesota Statutes, section 353.28, subdivision 6,
2.23paragraph (a).
2.24(f) Authority for an eligible person to make a prior service credit purchase under this
2.25section expires on June 30, 2012, or upon the eligible person's termination of employment
2.26covered by the Public Employees Retirement Association.
2.27EFFECTIVE DATE.This section is effective the day following final enactment.
1.3Employees Retirement Association; authorizing the purchase of prior service
1.4credit for uncredited public employment by Crookston Township.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. SERVICE CREDIT PURCHASE AUTHORIZATION FOR
1.7UNCREDITED PRIOR PUBLIC EMPLOYMENT.
1.8(a) An eligible person described in paragraph (b) is entitled to purchase allowable
1.9service in the general employees retirement plan of the Public Employees Retirement
1.10Association under Minnesota Statutes, section 353.01, subdivision 16, for the period
1.11described in paragraph (c) upon the payment of the purchase requirement specified in
1.12paragraph (e).
1.13(b) An eligible person is a person who:
1.14(1) was born on September 10, 1949;
1.15(2) was first employed by Crookston Township on July 1, 1990;
1.16(3) was enrolled in the general employees retirement plan of the Public Employees
1.17Retirement Association on September 15, 2010; and
1.18(4) had omitted deductions paid for allowable service for Crookston Township
1.19back to January 1, 2007.
1.20(c) The period of prior service credit available for purchase is the period of
1.21Crookston Township employment from July 1, 1990, to December 31, 2006, if the service
1.22was not that of an independent contractor and the compensation for the service met or
1.23exceeded the applicable minimum monthly salary threshold amount for plan coverage.
2.1(d) The eligible person must apply with the executive director of the Public
2.2Employees Retirement Association to make the service credit purchase under this section.
2.3The application must be in writing and must include all necessary relevant documentation
2.4that the executive director may require.
2.5(e) Allowable service credit under Minnesota Statutes, section 353.01, subdivision
2.616, must be granted by the general employees retirement plan of the Public Employees
2.7Retirement Association to the eligible person upon the receipt of the prior service credit
2.8purchase payment amount required under Minnesota Statutes, section 356.551. Of the
2.9total prior service credit purchase payment amount under Minnesota Statutes, section
2.10356.551, the eligible person must pay an amount equal to the employee contribution rates
2.11in effect during the uncredited employment period applied to the actual salary rates of the
2.12eligible person during the period, plus annual compound interest at the rate of 8.5 percent
2.13from the date on which the member contribution payment should have been made if made
2.14in a timely fashion until the date on which the equivalent contribution is actually made. If
2.15the eligible person makes the payment, Crookston Township shall pay the balance of the
2.16total prior service credit purchase payment amount calculated under Minnesota Statutes,
2.17section 356.551, within 60 days of the date on which the treasurer of Crookston Township
2.18is ratified by the executive director of the Public Employees Retirement Association that
2.19the member contribution payment had been received by the association. If Crookston
2.20Township fails to pay its portion of the prior service credit purchase payment amount
2.21under this section, the executive director of the Public Employees Retirement Association
2.22shall collect the unpaid amount under Minnesota Statutes, section 353.28, subdivision 6,
2.23paragraph (a).
2.24(f) Authority for an eligible person to make a prior service credit purchase under this
2.25section expires on June 30, 2012, or upon the eligible person's termination of employment
2.26covered by the Public Employees Retirement Association.
2.27EFFECTIVE DATE.This section is effective the day following final enactment.
