1.1                          A bill for an act 
  1.2             relating to retirement; correctional state employees 
  1.3             retirement plan of the Minnesota State Retirement 
  1.4             System; expanding the plan membership to include 
  1.5             laundry coordinators and delivery van drivers at the 
  1.6             Minnesota Correctional Facility-Faribault; amending 
  1.7             Minnesota Statutes 2002, section 352.91, subdivision 
  1.8             3g. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 352.91, 
  1.11  subdivision 3g, is amended to read: 
  1.12     Subd. 3g.  [ADDITIONAL CORRECTIONS DEPARTMENT PERSONNEL.] 
  1.13  (a) "Covered correctional service" means service by a state 
  1.14  employee in one of the employment positions at the designated 
  1.15  Minnesota correctional facility specified in paragraph (b), 
  1.16  provided that at least 75 percent of the employee's working time 
  1.17  is spent in direct contact with inmates and the fact of this 
  1.18  direct contact is certified to the executive director by the 
  1.19  commissioner of corrections. 
  1.20     (b) The employment positions and correctional facilities 
  1.21  are: 
  1.22     (1) corrections discipline unit supervisor, at the 
  1.23  Minnesota Correctional Facility-Faribault, the Minnesota 
  1.24  Correctional Facility-Lino Lakes, the Minnesota Correctional 
  1.25  Facility-Oak Park Heights, and the Minnesota Correctional 
  1.26  Facility-St. Cloud; 
  1.27     (2) dental assistant registered, at the Minnesota 
  2.1   Correctional Facility-Faribault, the Minnesota Correctional 
  2.2   Facility-Lino Lakes, the Minnesota Correctional Facility-Moose 
  2.3   Lake, the Minnesota Correctional Facility-Oak Park Heights, and 
  2.4   the Minnesota Correctional Facility-Red Wing; 
  2.5      (3) dental hygienist, at the Minnesota Correctional 
  2.6   Facility-Shakopee; 
  2.7      (4) psychologist 2, at the Minnesota Correctional 
  2.8   Facility-Faribault, the Minnesota Correctional Facility-Lino 
  2.9   Lakes, the Minnesota Correctional Facility-Moose Lake, the 
  2.10  Minnesota Correctional Facility-Oak Park Heights, the Minnesota 
  2.11  Correctional Facility-Red Wing, the Minnesota Correctional 
  2.12  Facility-St. Cloud, the Minnesota Correctional 
  2.13  Facility-Shakopee, and the Minnesota Correctional 
  2.14  Facility-Stillwater; and 
  2.15     (5) sentencing to service crew leader involved with the 
  2.16  inmate community work crew program, at the Minnesota 
  2.17  Correctional Facility-Faribault and the Minnesota Correctional 
  2.18  Facility-Lino Lakes; 
  2.19     (6) laundry coordinator, at the Minnesota Correctional 
  2.20  Facility-Faribault; and 
  2.21     (7) delivery van driver, at the Minnesota Correctional 
  2.22  Facility-Faribault. 
  2.23     Sec. 2.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
  2.24  PERSONS.] 
  2.25     Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE 
  2.26  COVERAGE.] (a) An employee who has future retirement coverage 
  2.27  transferred to the correctional state employees retirement plan 
  2.28  under section 1 is entitled to elect to obtain prior service 
  2.29  credit for eligible correctional state service performed after 
  2.30  June 30, 1997, and before July 1, 2004, with the Department of 
  2.31  Corrections.  All prior service credit must be purchased. 
  2.32     (b) Eligible correctional state service is a prior period 
  2.33  of continuous service after June 30, 1997, performed as an 
  2.34  employee of the Department of Corrections that would have been 
  2.35  eligible for the correctional state employees retirement plan 
  2.36  coverage under section 1, if that prior service had been 
  3.1   performed after June 30, 2004, rather than before July 1, 2004.  
  3.2   Service is continuous if there has been no period of 
  3.3   discontinuation of eligible state service for a period greater 
  3.4   than 30 calendar days. 
  3.5      (c) The Department of Corrections shall certify eligible 
  3.6   correctional state service to the commissioner of employee 
  3.7   relations and the executive director of the Minnesota State 
  3.8   Retirement System. 
  3.9      (d) A correctional employee covered under section 1 is 
  3.10  entitled to purchase the past service if the department 
  3.11  certifies that the employee met the eligibility requirements for 
  3.12  coverage.  The employee must make additional employee 
  3.13  contributions.  Payments for past service must be completed by 
  3.14  June 30, 2005. 
  3.15     Subd. 2.  [PAYMENT FOR PRIOR 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 correctional 
  3.21  state service, plus interest at the rate of 8.5 percent per 
  3.22  annum, compounded annually.  The contribution differential 
  3.23  percentage is the difference between 4.9 percent of salary and 
  3.24  the applicable employee contribution rate of the general state 
  3.25  employees retirement plan during the prior eligible correctional 
  3.26  state service. 
  3.27     (b) The additional member contribution may be paid only in 
  3.28  a lump sum.  Payment must accompany the election to obtain prior 
  3.29  service credit.  No election or payment may be made by the 
  3.30  person or accepted by the executive director after June 30, 2005.
  3.31     Subd. 3.  [TRANSFER OF ASSETS.] (a) Assets must be 
  3.32  transferred from the general state employees retirement plan to 
  3.33  the correctional state employees retirement plan in an amount 
  3.34  equal to the present value of benefits earned under the plan for 
  3.35  each employee transferring to the correctional state employees 
  3.36  retirement plan, as determined by the actuary retained by the 
  4.1   Legislative Commission on Pensions and Retirement in accordance 
  4.2   with Minnesota Statutes, section 356.215, multiplied by the 
  4.3   accrued liability funding ratio of active members as derived 
  4.4   from the most recent actuarial valuation prepared by the 
  4.5   commission-retained actuary.  The transfer of assets must be 
  4.6   made within 30 days after the employee elects to transfer the 
  4.7   coverage to the correctional state employees retirement plan. 
  4.8      (b) The Department of Corrections shall pay the cost of the 
  4.9   actuarial work performed by the commission-retained actuary 
  4.10  under paragraph (a) upon receipt of a billing by the executive 
  4.11  director of the Legislative Commission on Pensions and 
  4.12  Retirement. 
  4.13     Subd. 4.  [EFFECT OF THE ASSET TRANSFER.] Upon the transfer 
  4.14  of assets in subdivision 3, service credit in the general state 
  4.15  employees retirement plan of the Minnesota State Retirement 
  4.16  System is forfeited and may not be reinstated.  The service 
  4.17  credit and transferred assets must be credited to the 
  4.18  correctional state employees retirement plan. 
  4.19     Sec. 3.  [EFFECTIVE DATE.] 
  4.20     Sections 1 and 2 are effective July 1, 2004.