1.1                          A bill for an act 
  1.2             relating to retirement; including certain correctional 
  1.3             employees in the correctional employees retirement 
  1.4             plan; providing coverage for prior state service for 
  1.5             certain persons; amending Minnesota Statutes 2000, 
  1.6             section 352.91, subdivision 3g.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 352.91, 
  1.9   subdivision 3g, is amended to read: 
  1.10     Subd. 3g.  [ADDITIONAL CORRECTIONS DEPARTMENT PERSONNEL.] 
  1.11  (a) "Covered correctional service" means service by a state 
  1.12  employee in one of the employment positions at the designated 
  1.13  Minnesota correctional facility specified in paragraph (b), 
  1.14  provided that at least 75 percent of the employee's working time 
  1.15  is spent in direct contact with inmates and the fact of this 
  1.16  direct contact is certified to the executive director by the 
  1.17  commissioner of corrections. 
  1.18     (b) The employment positions and correctional facilities 
  1.19  are: 
  1.20     (1) corrections discipline unit supervisor, at the 
  1.21  Minnesota correctional facility-Faribault, the Minnesota 
  1.22  correctional facility-Lino Lakes, the Minnesota correctional 
  1.23  facility-Oak Park Heights, and the Minnesota correctional 
  1.24  facility-St. Cloud; 
  1.25     (2) dental assistant registered, at the Minnesota 
  1.26  correctional facility-Faribault, the Minnesota correctional 
  2.1   facility-Lino Lakes, the Minnesota correctional facility-Moose 
  2.2   Lake, the Minnesota correctional facility-Oak Park Heights, and 
  2.3   the Minnesota correctional facility-Red Wing; 
  2.4      (3) dental hygienist, at the Minnesota correctional 
  2.5   facility-Shakopee; 
  2.6      (4) psychologist 2, at the Minnesota correctional 
  2.7   facility-Faribault, the Minnesota correctional facility-Lino 
  2.8   Lakes, the Minnesota correctional facility-Moose Lake, the 
  2.9   Minnesota correctional facility-Oak Park Heights, the Minnesota 
  2.10  correctional facility-Red Wing, the Minnesota correctional 
  2.11  facility-St. Cloud, the Minnesota correctional 
  2.12  facility-Shakopee, and the Minnesota correctional 
  2.13  facility-Stillwater; and 
  2.14     (5) sentencing to service crew leader involved with the 
  2.15  inmate community work crew program, at the Minnesota 
  2.16  correctional facility-Faribault and the Minnesota correctional 
  2.17  facility-Lino Lakes; and 
  2.18     (6) sentencing to service crew leader responsible for the 
  2.19  supervision of county inmates. 
  2.20     Sec. 2.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
  2.21  PERSONS.] 
  2.22     Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE 
  2.23  COVERAGE.] (a) An employee who has future retirement coverage 
  2.24  transferred to the correctional employees retirement plan under 
  2.25  section 1, or an employee who has retirement coverage for past 
  2.26  correctional service transferred to the correctional employees 
  2.27  retirement plan under section 1, is entitled to elect to obtain 
  2.28  prior service credit for eligible state service performed after 
  2.29  June 30, 1975, and before the first day of the first full pay 
  2.30  period beginning after June 30, 2001, with the department of 
  2.31  corrections.  All eligible prior service must be purchased.  
  2.32     (b) For purposes of section 1, eligible state service with 
  2.33  the department of corrections is any prior period of continuous 
  2.34  service after June 30, 1975, performed as an employee of the 
  2.35  department of corrections that would have been eligible or the 
  2.36  correctional employees retirement plan coverage under section 1 
  3.1   if that prior service had been performed after the first day of 
  3.2   the first full pay period beginning after June 30, 2001, rather 
  3.3   than before that date.  Service is continuous if there has been 
  3.4   no period of discontinuation of eligible state service for a 
  3.5   period greater than 180 calendar days.  For purposes of 
  3.6   paragraph (c), eligible state service is any period of service 
  3.7   on or after the date which the employee started employment, in 
  3.8   which at least 75 percent of the employee's working time is 
  3.9   determined to have been spent in direct contact with program 
  3.10  participants, and the date the employee joined the correctional 
  3.11  employees plan. 
  3.12     (c) The commissioner of corrections shall certify eligible 
  3.13  state service to the executive director of the Minnesota state 
  3.14  retirement system. 
  3.15     Subd. 2.  [PAYMENT FOR PAST SERVICE.] (a) An employee 
  3.16  electing to obtain prior service credit under subdivision 1 must 
  3.17  pay an additional employee contribution for that prior service.  
  3.18  The additional member contribution is the contribution 
  3.19  differential percentage applied to the actual salary paid to the 
  3.20  employee during the period of the prior eligible state service, 
  3.21  plus interest at the rate of six percent per annum, compounded 
  3.22  annually.  The contribution differential percentage is the 
  3.23  difference between 5.69 percent of salary and the applicable 
  3.24  employee contribution rate of the general state employees 
  3.25  retirement plan during the prior eligible state service. 
  3.26     (b) The additional member contribution must be paid only in 
  3.27  a lump sum.  Payment must accompany the election to obtain prior 
  3.28  service credit.  No election of payment may be made by the 
  3.29  person or accepted by the executive director after June 30, 2003.
  3.30     Subd. 3.  [TRANSFER OF ASSETS.] Assets must be transferred 
  3.31  from the general state employees retirement plan to the 
  3.32  correctional employees retirement plan, in an amount equal to 
  3.33  the present value of benefits earned under the general employees 
  3.34  retirement plan for each employee transferring to the 
  3.35  correctional employees retirement plan, as determined by the 
  3.36  actuary retained by the legislative commission on pensions and 
  4.1   retirement in accordance with Minnesota Statutes, section 
  4.2   356.215.  The transfer of assets must be made within 45 days 
  4.3   after the employee elects to transfer coverage to the 
  4.4   correctional employees retirement plan.  
  4.5      Subd. 4.  [EFFECT OF THE ASSET TRANSFER.] Upon transfer of 
  4.6   assets in subdivision 3, service credit in the general state 
  4.7   employees plan of the Minnesota state retirement system is 
  4.8   forfeited and may not be reinstated.  The service credit and 
  4.9   transferred assets must be credited to the correctional 
  4.10  employees retirement plan.  
  4.11     Subd. 5.  [PAYMENT OF ACTUARIAL CALCULATION COSTS.] (a) The 
  4.12  expense of the legislative commission on pensions and retirement 
  4.13  attributable to the calculations of its consulting actuary under 
  4.14  subdivision 3 must be reimbursed by the department of 
  4.15  corrections and the department of human services. 
  4.16     (b) The expense reimbursement under paragraph (a) must be 
  4.17  allocated between the two departments in a manner that is 
  4.18  jointly agreeable.  If no allocation procedure is developed by 
  4.19  the commissioner of corrections and the commissioner of human 
  4.20  services, the cost must be allocated on an equally shared basis. 
  4.21     (c) Payment of the expense reimbursement to the legislative 
  4.22  commission on pensions and retirement is due 30 days after the 
  4.23  receipt of the reimbursement request from the executive director 
  4.24  of the legislative commission on pensions and retirement. 
  4.25     Sec. 3.  [EFFECTIVE DATE.] 
  4.26     Sections 1 and 2 are effective July 1, 2001.