1.1                          A bill for an act 
  1.2             relating to retirement; providing a second social 
  1.3             security coverage referendum for members of the 
  1.4             legislators retirement plan; creating the coordinated 
  1.5             program of the legislators retirement plan; 
  1.6             appropriating money; proposing coding for new law in 
  1.7             Minnesota Statutes, chapters 3A; 355. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9                              ARTICLE 1 
  1.10                             REFERENDUM 
  1.11     Section 1.  [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 
  1.12     Subdivision 1.  [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 
  1.13  member of the legislators retirement plan established under 
  1.14  chapter 3A who did not elect coverage under an agreement under 
  1.15  section 218(d) of the Social Security Act as provided for in 
  1.16  section 355.624 is entitled to elect social security coverage 
  1.17  retroactive for the period consistent with applicable federal 
  1.18  law, in a second social security referendum.  Any member who so 
  1.19  elects shall become a member of the coordinated program of the 
  1.20  legislators retirement plan under section 3A.15.  Sufficient 
  1.21  assets shall be transferred to the program by the executive 
  1.22  director of the Minnesota state retirement system under 
  1.23  subdivision 4.  The governor shall set a date for the referendum 
  1.24  and shall undertake any duties to amend the state's Social 
  1.25  Security Act, section 218 agreement with the Secretary of Health 
  1.26  and Human Services. 
  2.1      Subd. 2.  [PAYMENT OF RETROACTIVE SOCIAL SECURITY 
  2.2   TAXES.] Effective retroactively with respect to any service 
  2.3   after the date of retroactive coverage by a legislator who is in 
  2.4   office on the date of the agreement or modification of the 
  2.5   agreement with the Secretary of Health and Human Services, the 
  2.6   executive director of the Minnesota state retirement system 
  2.7   shall cause to be paid an amount for each legislator, 
  2.8   retroactively included, equal to the legislator and state of 
  2.9   Minnesota taxes which would have been imposed by the Federal 
  2.10  Insurance Contributions Act had the service been covered at the 
  2.11  time performed.  This payment shall be computed from the date of 
  2.12  retroactive coverage to the date that deductions are first taken 
  2.13  from the wages of each legislator for social security coverage.  
  2.14  Nothing in this section shall require a legislator to elect 
  2.15  retroactive social security coverage. 
  2.16     Subd. 3.  [BALANCES DUE AFTER PAYMENT OF RETROACTIVE SOCIAL 
  2.17  SECURITY TAXES.] A legislator who elects social security 
  2.18  coverage under this section and thereby transfers from the 
  2.19  legislators retirement plan to the coordinated program of the 
  2.20  legislators retirement plan and from whose account retroactive 
  2.21  social security employee taxes are paid by the executive 
  2.22  director of the Minnesota state retirement system, shall be 
  2.23  required to reimburse the Minnesota state retirement system in 
  2.24  an amount equal to the difference between the employee 
  2.25  contributions at the rate of eight percent of the legislator's 
  2.26  salary for the period of retroactive social security coverage 
  2.27  and the aggregate of six percent of the legislator's salary for 
  2.28  the period of retroactive social security coverage plus the rate 
  2.29  of retroactive social security employee taxes paid on the salary 
  2.30  of the legislator restricted to the earnings limitations imposed 
  2.31  by the Federal Insurance Contributions Act covering service as a 
  2.32  legislator for the period of retroactivity.  In the event that a 
  2.33  legislator does not reimburse the Minnesota state retirement 
  2.34  system within 30 days following notification by the executive 
  2.35  director of the amount of reimbursement which is due, interest 
  2.36  at the rate of six percent per annum compounded annually from 
  3.1   the date the amount was first payable following notification 
  3.2   until the date payment is made shall accrue. 
  3.3      Subd. 4.  [APPROPRIATION.] $....... is appropriated from 
  3.4   the general fund for the fiscal year ending June 30, 2002, to 
  3.5   the executive director of the Minnesota state retirement system 
  3.6   for transfer to the coordinated program of the legislators 
  3.7   retirement plan to implement this section. 
  3.8      Sec. 2.  [EFFECTIVE DATE.] 
  3.9      Section 1 is effective the day following final enactment. 
  3.10                             ARTICLE 2 
  3.11                         CONFORMING CHANGES 
  3.12     Section 1.  [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 
  3.13  RETIREMENT PLAN.] 
  3.14     The coordinated program of the legislators retirement plan 
  3.15  is created.  The provisions of sections 3A.01 to 3A.13 apply to 
  3.16  the coordinated program. 
  3.17     Sec. 2.  [EFFECTIVE DATE.] 
  3.18     Section 1 is effective the day following final enactment.