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A bill for an act
relating to retirement; Public Employees Retirement Association; general employees
retirement plan; authorizing an eligible person to purchase service credit for periods
of omitted service.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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PUBLIC EMPLOYEES RETIREMENT ASSOCIATION GENERAL
EMPLOYEES RETIREMENT PLAN; SERVICE CREDIT PURCHASE BY AN
ELIGIBLE EMPLOYEE.
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Subdivision 1.
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Definitions.
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For purposes of this section, the following terms have the
meanings given:
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(1) "city" means the city of Minneapolis;
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(2) "executive director" means the executive director of the Public Employees Retirement
Association;
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(3) "fund" means the general employees retirement fund administered by the Public
Employees Retirement Association; and
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(4) "general plan" means the general employees retirement plan of the Public Employees
Retirement Association.
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Subd. 2.
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Authorization.
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(a) Notwithstanding any state law to the contrary, an eligible
person described in subdivision 3 is entitled to:
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(1) have the city pay the amount required under subdivision 5, paragraph (a), on the
eligible person's behalf; and
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(2) upon the city making the payments required under subdivision 5, paragraphs (a) and
(b), receive credit for allowable service in the general plan for the periods of service described
in subdivision 4.
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(b) Upon receiving the payments described in subdivision 5, the executive director must
credit the eligible person with allowable service for the periods of service described in
subdivision 4.
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Subd. 3.
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Eligible person.
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An eligible person is a person who:
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(1) was initially employed by the city on April 26, 2016, in the fleet services division
of the public works department;
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(2) received salary for periods of employment with the city that occurred beginning
April 26, 2016, through November 4, 2022, and during portions of those periods of
employment the city failed to deduct employee contributions and make employer
contributions as required by Minnesota Statutes, section 353.27; and
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(3) terminated employment with the city on November 4, 2022.
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Subd. 4.
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Periods of uncredited prior service.
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The periods of uncredited prior service
available for purchase are:
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(1) April 11, 2017, through October 10, 2017; and
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(2) April 27, 2018, through November, 24, 2018.
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Subd. 5.
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Payment by employer.
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(a) On behalf of the eligible person, the city must pay
to the fund an amount equal to the total amount of employee contributions that would have
been deducted from the eligible person's salary and paid to the fund based on the eligible
person's salary for each period of employment described in subdivision 4, plus interest
compounded annually at the applicable annual rate or rates specified in Minnesota Statutes,
section 356.59, subdivision 3, from the date each employee contribution deduction should
have been paid until the date the payment is made.
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(b) The city must pay to the fund an amount equal to the total amount of employer
contributions that the city would have made to the fund based on the eligible person's salary
for each period of employment described in subdivision 4, plus interest compounded annually
at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59,
subdivision 3, from the date each employer contribution should have been paid until the
date the payment is made.
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(c) The executive director must determine the amount of the payments required under
paragraphs (a) and (b) and notify the city and the eligible person regarding the amount and
the basis for determining the amount.
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(d) The city must make the payments required under paragraphs (a) and (b) in a lump
sum no later than 60 days after the date on which the executive director notifies the city
under paragraph (c).
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Subd. 6.
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Collection of unpaid amounts.
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If the city fails to make all of the payments
required by subdivision 5, the executive director must follow the procedures in Minnesota
Statutes, section 353.28, subdivision 6, to collect the amount not paid.
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EFFECTIVE DATE; LOCAL APPROVAL.
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This section is effective upon approval
by the Minneapolis City Council and compliance with Minnesota Statutes, section 645.021.
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