1.1 	A bill for an act
1.2 	relating to retirement; public employees police and
1.3 	fire retirement plan; providing an annuity for a
1.4 	former St. Paul firefighter to correct an error in
1.5 	coverage.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. CORRECTING PLAN COVERAGE ERROR BY PROVIDING A
1.8 	PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT PLAN ANNUITY.
 1.9 		Subdivision 1.Purpose. The annuity provided under this
1.10 	section is intended to compensate for an error in pension
1.11 	coverage.  Due to the employment specified in subdivision 2, an
1.12 	eligible individual specified in subdivision 2 should have
1.13 	become a member of the public employees police and fire
1.14 	retirement plan but was incorrectly placed in the St. Paul Fire
1.15 	Department Relief Association retirement plan.
1.16 		Subd. 2.Eligibility. (a) An eligible individual under
1.17 	paragraph (b) is authorized to receive the benefit specified in
1.18 	subdivision 4, upon satisfying all requirements specified in
1.19 	this section.
1.20 	(b) An eligible individual is an individual who:
1.21 	(1) was born on April 24, 1951;
1.22 	(2) was hired as a St. Paul firefighter with a certified
1.23 	appointment date of June 13, 1980, but first earned salary as a
1.24 	St. Paul firefighter on June 30, 1980;
1.25 	(3) was erroneously placed in the St. Paul Fire Department
2.1 	Relief Association retirement plan due to that employment; and 
2.2 	(4) terminated from the St. Paul Fire Department employment
2.3 	on January 3, 1990.
2.4 		Subd. 3.Additional employee contribution or refund
2.5 	amount. (a) If a valid annuity application is made under
2.6 	subdivision 7, the executive director of the Public Employees
2.7 	Retirement Association shall determine the employee
2.8 	contributions that an eligible individual under subdivision 2
2.9 	would have made to the public employees police and fire
2.10 	retirement plan fund, if coverage had been provided by that plan
2.11 	for the employment period specified in subdivision 2, and from
2.12 	each of these contribution amounts the employee contribution
2.13 	actually made by the eligible individual to the St. Paul Fire
2.14 	Department Relief Association for the same payroll period shall
2.15 	be subtracted.  These differences, plus 8.5 percent annual
2.16 	compound interest from the date the public employees police and
2.17 	fire retirement plan contribution would have been made until the
2.18 	first of the month after a valid annuity application has been
2.19 	received, shall be aggregated.
2.20 	(b) If the aggregate amount under paragraph (a) is a
2.21 	positive number, the total amount shall be paid in a lump sum to
2.22 	the executive director of the Public Employees Retirement
2.23 	Association.  The executive director shall notify the eligible
2.24 	individual in writing of the required amount.  To be eligible
2.25 	for the current or deferred annuity specified in subdivision 4,
2.26 	the eligible individual must pay the amount required under this
2.27 	paragraph, if applicable, within three months of the executive
2.28 	director's notification.
2.29 	(c) If the aggregate amount computed under paragraph (a) is
2.30 	a negative amount, the value of the contributions that the
2.31 	eligible employee made to the local relief association exceeded
2.32 	the value of employee contributions that would have been made to
2.33 	the public employees police and fire fund.  This aggregate
2.34 	negative amount shall be multiplied by minus one and the
2.35 	resulting amount shall be refunded to the eligible individual by
2.36 	the city of St. Paul.  The executive director shall inform the
3.1 	eligible individual of the refund amount in writing, and shall
3.2 	notify the city of St. Paul.  The city of St. Paul shall pay
3.3 	this amount to the eligible individual within 30 days of
3.4 	notification.
3.5 		Subd. 4.Benefit amount. The eligible individual is
3.6 	entitled to apply for an annuity, as further specified in
3.7 	subdivision 7, and to receive a public employees police and fire
3.8 	retirement plan retirement annuity computed based on the version
3.9 	of Minnesota Statutes, chapter 353, in effect on the date that
3.10 	the eligible individual terminated from St. Paul Fire Department
3.11 	Relief Association employment.
3.12 	Subd. 5.[CALCULATION OF RESERVES; PAYMENT BY CITY OF ST.
3.13 	PAUL.] The executive director of the Public Employees Retirement
3.14 	Association shall compute the full required reserves for the
3.15 	annuity determined under subdivision 4 using all applicable
3.16 	actuarial assumptions for the public employees police and fire
3.17 	retirement plan.  This amount, after deducting the amount
3.18 	received by the Public Employees Retirement Association under
3.19 	subdivision 3, paragraph (b), if applicable, is to be paid to
3.20 	the executive director of the Public Employees Retirement
3.21 	Association in a lump sum by the city of St. Paul.  The
3.22 	executive director shall notify the chief administrative officer
3.23 	of the city of St. Paul in writing of the payment amount
3.24 	required under this subdivision.  This notification shall be
3.25 	made by the executive director within one month following the
3.26 	receipt by the executive director of any amount required under
3.27 	subdivision 3, paragraph (b), if applicable.  The city of St.
3.28 	Paul must pay the amount required under this subdivision within
3.29 	30 days after receipt of the executive director's notification.
3.30 		Subd. 6.Actions upon failure to pay. If the city of St.
3.31 	Paul fails to transmit the amount required under subdivision 5
3.32 	in a timely manner, or fails to make a timely refund under
3.33 	subdivision 3, paragraph (c), if applicable, the executive
3.34 	director of the Public Employees Retirement Association shall
3.35 	notify the commissioner of finance of this nonpayment or
3.36 	nonpayments, and the commissioner of finance shall deduct the
4.1 	applicable amount or amounts from any state aid otherwise
4.2 	payable to the city and transmit the amount required under
4.3 	subdivision 5 to the executive director for deposit in the
4.4 	public employees police and fire fund.  If the city of St. Paul
4.5 	fails to make a payment required under subdivision 3, paragraph
4.6 	(c), if applicable, the commissioner of finance will make any
4.7 	necessary refund, with reimbursement through the withholding of
4.8 	aid, as stated in this subdivision.
4.9 		Subd. 7.Annuity application. An eligible individual
4.10 	described in subdivision 2 shall apply in writing on forms
4.11 	provided by the Public Employees Retirement Association for the
4.12 	annuity provided by this section.  The application must be made
4.13 	before January 1, 2007, and must include all necessary
4.14 	documentation of the applicability of this section and any other
4.15 	relevant information which the executive director may require.
4.16 		Subd. 8.Service credit grant. Service in the public
4.17 	employees police and fire retirement plan for the eligible
4.18 	individual's employment period as a St. Paul firefighter shall
4.19 	be granted following the filing of a valid application for an
4.20 	annuity under subdivision 7 and receipt by the executive
4.21 	director of any amount applicable under subdivision 3, paragraph
4.22 	(b).

4.23 	Sec. 2. EFFECTIVE DATE.
 4.24 	Section 1 is effective the day following final enactment.