1.1 	A bill for an act
1.2 	relating to retirement; Public Employees Retirement Association; authorizing 
1.3 	application for a retirement annuity.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE 
1.6 	TERMINATION.
 1.7 		Subdivision 1.Eligibility. (a) An eligible individual specified in paragraph (b) 
1.8 	is authorized to apply for a retirement annuity, provided necessary age and service 
1.9 	requirements are met, under Minnesota Statutes, section 353.29 or 353.30, as applicable, 
1.10 	as further specified under subdivision 2.
1.11 	(b) An eligible individual is an individual who:
1.12 	(1) was employed by Independent School District No. 535, Rochester, on October 6, 
1.13 	1993, and became a member of the Public Employees Retirement Association coordinated 
1.14 	plan;
1.15 	(2) retired from Independent School District No. 535, Rochester, on December 
1.16 	31, 2003;
1.17 	(3) was elected to the Rochester City Council on April 22, 2003, and sworn in on 
1.18 	May 5, 2003;
1.19 	(4) was reelected to the Rochester City Council and took office in November 2004;
1.20 	(5) continued to work for Olmsted County on a contract basis, while serving on 
1.21 	the city council;
1.22 	(6) elected under law then applicable to have Public Employees Retirement 
1.23 	Association coordinated plan coverage for the city council elected service; and 
2.1 	(7) terminated Independent School District No. 535, Rochester, employment but is 
2.2 	unable to commence receipt of a Public Employees Retirement Association coordinated 
2.3 	plan annuity because of the continuing Public Employees Retirement Association 
2.4 	coordinated plan coverage for the elected city council service and for Olmsted County.
2.5 		Subd. 2.Retirement annuity. (a) Notwithstanding an irrevocable election to 
2.6 	participate in the Public Employees Retirement Association coordinated plan as an elected 
2.7 	official and continuation of elected service, an eligible individual under subdivision 1, 
2.8 	paragraph (b), is deemed to have terminated membership under Minnesota Statutes, section 
2.9 	353.01, subdivision 11b, following termination of the Olmsted County employment.
2.10 	(b) If the requirements of paragraph (a) are satisfied, the eligible individual may 
2.11 	apply for a retirement annuity under Minnesota Statutes, section 353.29 or 353.30, as 
2.12 	applicable. In computing the annuity, the Public Employees Retirement Association 
2.13 	must exclude salary due to the elected Rochester City Council service. Deferred annuity 
2.14 	augmentation under Minnesota Statutes, section 353.71, applies to this annuity.
2.15 		Subd. 3.Treatment of Rochester City Council contributions to the Public 
2.16 	Employees Retirement Association. (a) All employee contributions to the Public 
2.17 	Employees Retirement Association coordinated plan by an eligible individual in 
2.18 	subdivision 1, paragraph (b), due to the elected Rochester City Council service, and all 
2.19 	corresponding employer contributions, must be determined.
2.20 	(b) An eligible individual under subdivision 1, paragraph (b), must elect, within 
2.21 	one year of the effective date of this section or upon termination of elective service, 
2.22 	whichever is earlier, a refund under Minnesota Statutes, section 353.34, subdivision 2, 
2.23 	of employee contributions determined under paragraph (a), or coverage by the public 
2.24 	employees defined contribution plan under Minnesota Statutes, chapter 353D, as further 
2.25 	specified in paragraph (c).
2.26 	(c) If public employee defined contribution plan coverage is elected under paragraph 
2.27 	(b), contributions to that plan commence as of the first day of the pay period following 
2.28 	this election, and accumulated employee and employer contributions determined under 
2.29 	paragraph (a) must be transferred with six percent annual interest to an account for the 
2.30 	eligible individual in the public employees defined contribution plan.
2.31 	(d) If no election is made by an eligible individual by the required date in paragraph 
2.32 	(b), the individual is assumed to have elected the refund indicated in paragraph (b).
2.33 	(e) Upon an election under paragraph (b), or a mandatory refund under paragraph 
2.34 	(d), all rights in the Public Employees Retirement Association coordinated plan due to 
2.35 	elected Rochester City Council service are forfeited and may not be reestablished.

3.1 	Sec. 2. EFFECTIVE DATE.
 3.2 	Section 1 is effective the day following final enactment.