1.1                          A bill for an act 
  1.2             relating to corrections; authorizing certain Red Wing 
  1.3             facility employees to be included in a temporary 
  1.4             retirement election provision; extending the deadline 
  1.5             for employees to elect retirement coverage; 
  1.6             authorizing certain correctional employees who 
  1.7             transfer between retirement plans to obtain prior 
  1.8             state credit; extending period of previous state 
  1.9             service from which prior service may be elected by six 
  1.10            months; extending the time to elect to transfer to 
  1.11            corrections plan to allow department and employees to 
  1.12            plan retirement better; amending Laws 1996, chapter 
  1.13            408, article 8, sections 21; 22, subdivision 1; and 24.
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
  1.15     Section 1.  Laws 1996, chapter 408, article 8, section 21, 
  1.16  is amended to read:  
  1.17     Sec. 21.  [TEMPORARY PROVISION; ELECTION TO RETAIN 
  1.18  RETIREMENT COVERAGE.] 
  1.19     (a) An employee in a position specified as qualifying under 
  1.20  sections 11, 12, 14, and 15, may elect to retain coverage under 
  1.21  the general employees retirement plan of the Minnesota state 
  1.22  retirement system or the teachers retirement association, or may 
  1.23  elect to have coverage transferred to and to contribute to the 
  1.24  correctional employees retirement plan.  An employee electing to 
  1.25  participate in the correctional employees retirement plan shall 
  1.26  begin making contributions to the correctional plan beginning 
  1.27  the first full pay period after January 1, 1997, or the first 
  1.28  full pay period following filing of their election to transfer 
  1.29  coverage to the correctional employees retirement plan, 
  2.1   whichever is later.  The election to retain coverage or to 
  2.2   transfer coverage must be made in writing by the person on a 
  2.3   form prescribed by the executive director of the Minnesota state 
  2.4   retirement system and must be filed with the executive director 
  2.5   no later than June 30 December 31, 1997. 
  2.6      (b) An employee failing to make an election by June 15, 
  2.7   1997, must be notified by certified mail by the executive 
  2.8   director of the Minnesota state retirement system or of the 
  2.9   teachers retirement association, whichever applies, of the 
  2.10  deadline to make a choice.  A person who does not submit an 
  2.11  election form must continue coverage in the general employees 
  2.12  retirement plan or the teachers retirement association, 
  2.13  whichever applies, and forfeits all rights to transfer 
  2.14  retirement coverage to the correctional employees retirement 
  2.15  plan. 
  2.16     (c) The election to retain coverage in the general employee 
  2.17  retirement plan or the teachers retirement association or the 
  2.18  election to transfer retirement coverage to the correctional 
  2.19  employees retirement plan is irrevocable once it is filed with 
  2.20  the executive director. 
  2.21     Sec. 2.  Laws 1996, chapter 408, article 8, section 22, 
  2.22  subdivision 1, is amended to read: 
  2.23     Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE COVERAGE.] 
  2.24  (a) An employee who has future retirement coverage transferred 
  2.25  to the correctional employees retirement plan under sections 11, 
  2.26  12, 14, and 15, and 16, and who does not elect to retain general 
  2.27  state employee retirement plan or teachers retirement 
  2.28  association coverage is entitled to elect to obtain prior 
  2.29  service credit for eligible state service performed on or after 
  2.30  July 1, 1975, and before the first day of the first full pay 
  2.31  period beginning after June 30 December 31, 1997, with the 
  2.32  department of corrections or with the department of human 
  2.33  services at the Minnesota security hospital or the Minnesota 
  2.34  sexual psychopathic personality treatment center.  All prior 
  2.35  service credit must be purchased.  
  2.36     (b) Eligible state service with the department of 
  3.1   corrections or with the department of human services is any 
  3.2   prior period of continuous service on or after July 1, 1975, 
  3.3   performed as an employee of the department of corrections or of 
  3.4   the department of human services that would have been eligible 
  3.5   for the correctional employees retirement plan coverage under 
  3.6   sections 11, 12, 14, and 15, and 16, if that prior service had 
  3.7   been performed after the first day of the first full pay period 
  3.8   beginning after December 31, 1996, rather than before that 
  3.9   date.  Service is continuous if there has been no period of 
  3.10  discontinuation of eligible state service for a period greater 
  3.11  than 180 calendar days. 
  3.12     (c) The department of corrections or the department of 
  3.13  human services, whichever applies, shall certify eligible state 
  3.14  service to the executive director of the Minnesota state 
  3.15  retirement system. 
  3.16     (d) A covered correctional plan employee employed on 
  3.17  January 1, 1997, who has past service in a job classification 
  3.18  covered under section 11, 12, 14, or 15, or 16, on January 1, 
  3.19  1997, is entitled to purchase the past service if the applicable 
  3.20  department certifies that the employee met the eligibility 
  3.21  requirements for coverage.  The employee must make the 
  3.22  additional employee contributions under section 17.  Payments 
  3.23  for past service must be completed by June 30, 1999. 
  3.24     Sec. 3.  Laws 1996, chapter 408, article 8, section 24, is 
  3.25  amended to read: 
  3.26     Sec. 24.  [EARLY RETIREMENT INCENTIVE.] 
  3.27     This section applies to an employee who has future 
  3.28  retirement coverage transferred to the correctional employee 
  3.29  retirement plan under sections 11, 12, 14, and 15, and 16, and 
  3.30  who is at least 55 years old on the effective date of sections 
  3.31  11, 12, 14, and 15, and 16.  That employee may participate in a 
  3.32  health insurance early retirement incentive available under the 
  3.33  terms of a collective bargaining agreement in effect on the day 
  3.34  before the effective date of sections 11, 12, 14, and 15, and 
  3.35  16, notwithstanding any provision of the collective bargaining 
  3.36  agreement that limits participation to persons who select the 
  4.1   option during the payroll period in which their 55th birthday 
  4.2   occurs.  A person selecting the health insurance early 
  4.3   retirement incentive under this section must retire by the later 
  4.4   of December 31, 1997 June 30, 1998, or within the pay period 
  4.5   following the time at which the person has at least three years 
  4.6   of covered correctional service, including any purchased service 
  4.7   credit.  An employee meeting this criteria who wishes to extend 
  4.8   the person's employment must do so under Minnesota Statutes, 
  4.9   section 43A.34, subdivision 3.