H.F. No. 318, as introduced - 86th Legislative Session (2009-2010) Posted on Jan 26, 2009
1.1A bill for an act1.2relating to retirement; authorizing the purchase of service credit for a period of
1.3past due omitted contributions.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. PERA-GENERAL; PURCHASE OF CREDIT FOR OMITTED
1.7(a) An eligible person described in paragraph (b) is entitled, upon written application
1.8filed with the executive director of the Public Employees Retirement Association, to
1.9purchase service credit for the period of omitted contributions specified in paragraph (c)
1.10by paying the amount determined under paragraph (d). The employer of the eligible
1.11person shall pay the amount determined under paragraph (e) within 30 days of being
1.12notified by the Public Employees Retirement Association executive director that the
1.13eligible person made the person's payment.
1.14(b) An eligible person is a person who:
1.15(1) was born on December 16, 1946;
1.16(2) was first employed by the city of Elizabeth, Minnesota, municipal liquor store on
1.17July 23, 2004;
1.18(3) was first eligible for coverage by the general employees retirement plan of the
1.19Public Employees Retirement Association in September 2004;
1.20(4) was not reported as a general employees retirement plan member by the city of
1.21Elizabeth, Minnesota, to the Public Employees Retirement Association until January
1.23(5) did not receive service credit under Minnesota Statutes, section 353.27,
1.24subdivision 12, paragraph (e), in a timely fashion.
2.1(c) The period of purchasable service credit is that portion of the period September
2.21, 2004, until January 1, 2005, during which the eligible person was an included employee
2.3under Minnesota Statutes, section 353.01, subdivision 2a, and during which the required
2.4deductions from the compensation of the eligible employee were not made under
2.5Minnesota Statutes, section 353.27, subdivision 2.
2.6(d) The member purchase amount is the amount of the omitted member contributions
2.7during the period of purchasable service credit, plus compound annual interest at the rate
2.8of 8.5 percent from October 15, 2004, to the date on which payment is made.
2.9(e) The employer purchase amount is either the balance of the full actuarial value
2.10purchase payment amount determined under Minnesota Statutes, section 356.551,
2.11remaining after subtracting the amount under paragraph (d) or the amount of the employer
2.12and employer additional contributions under Minnesota Statutes, section 353.27,
2.13subdivisions 3 and 3a, plus compound annual interest at the rate of 8.5 percent from
2.14October 15, 2004, to the date on which payment is made, whichever is larger. If the
2.15employer fails to pay the employer purchase amount in a timely fashion, the executive
2.16director of the Public Employees Retirement Association shall certify the unpaid
2.17amount, plus monthly compound interest at the rate of 0.71 percent for the period, to the
2.18commissioners of finance and revenue, who shall deduct the unpaid amount from any state
2.19aid or state transfers that the employing unit is eligible to receive and shall transmit the
2.20amount to the Public Employees Retirement Association.
2.21(f) Purchase authority under this section expires on July 1, 2010.
2.22EFFECTIVE DATE.This section is effective the day following final enactment.