1.1                          A bill for an act 
  1.2             relating to retirement; Minnesota state retirement 
  1.3             system; modifying the definition of allowable service 
  1.4             to include time on strike; amending Minnesota Statutes 
  1.5             2001 Supplement, section 352.01, subdivision 11. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.8   352.01, subdivision 11, is amended to read: 
  1.9      Subd. 11.  [ALLOWABLE SERVICE.] "Allowable service" means:  
  1.10     (1) Service by an employee for which on or before July 1, 
  1.11  1957, the employee was entitled to allowable service credit on 
  1.12  the records of the system by reason of employee contributions in 
  1.13  the form of salary deductions, payments in lieu of salary 
  1.14  deductions, or in any other manner authorized by Minnesota 
  1.15  Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
  1.16     (2) Service by an employee for which on or before July 1, 
  1.17  1961, the employee chose to obtain credit for service by making 
  1.18  payments to the fund under Minnesota Statutes 1961, section 
  1.19  352.24. 
  1.20     (3) Except as provided in clauses (8) and (9), service by 
  1.21  an employee after July 1, 1957, for any calendar month in which 
  1.22  the employee is paid salary from which deductions are made, 
  1.23  deposited, and credited in the fund, including deductions made, 
  1.24  deposited, and credited as provided in section 352.041. 
  1.25     (4) Except as provided in clauses (8) and (9), service by 
  2.1   an employee after July 1, 1957, for any calendar month for which 
  2.2   payments in lieu of salary deductions are made, deposited, and 
  2.3   credited in the fund, as provided in section 352.27 and 
  2.4   Minnesota Statutes 1957, section 352.021, subdivision 4. 
  2.5      For purposes of clauses (3) and (4), except as provided in 
  2.6   clauses (8) and (9), any salary paid for a fractional part of 
  2.7   any calendar month, including the month of separation from state 
  2.8   service, is deemed the compensation for the entire calendar 
  2.9   month. 
  2.10     (5) The period of absence from their duties by employees 
  2.11  who are temporarily disabled because of injuries incurred in the 
  2.12  performance of duties and for which disability the state is 
  2.13  liable under the workers' compensation law until the date 
  2.14  authorized by the director for the commencement of payments of a 
  2.15  total and permanent disability benefit from the retirement fund. 
  2.16     (6) Service covered by a refund repaid as provided in 
  2.17  section 352.23 or 352D.05, subdivision 4, except service 
  2.18  rendered as an employee of the adjutant general for which the 
  2.19  person has credit with the federal civil service retirement 
  2.20  system. 
  2.21     (7) Service before July 1, 1978, by an employee of the 
  2.22  transit operating division of the metropolitan transit 
  2.23  commission or by an employee on an authorized leave of absence 
  2.24  from the transit operating division of the metropolitan transit 
  2.25  commission who is employed by the labor organization which is 
  2.26  the exclusive bargaining agent representing employees of the 
  2.27  transit operating division, which was credited by the 
  2.28  metropolitan transit commission-transit operating division 
  2.29  employees retirement fund or any of its predecessor plans or 
  2.30  funds as past, intermediate, future, continuous, or allowable 
  2.31  service as defined in the metropolitan transit 
  2.32  commission-transit operating division employees retirement fund 
  2.33  plan document in effect on December 31, 1977. 
  2.34     (8) Service after July 1, 1983, by an employee who is 
  2.35  employed on a part-time basis for less than 50 percent of full 
  2.36  time, for which the employee is paid salary from which 
  3.1   deductions are made, deposited, and credited in the fund, 
  3.2   including deductions made, deposited, and credited as provided 
  3.3   in section 352.041 or for which payments in lieu of salary 
  3.4   deductions are made, deposited, and credited in the fund as 
  3.5   provided in section 352.27 shall be credited on a fractional 
  3.6   basis either by pay period, monthly, or annually based on the 
  3.7   relationship that the percentage of salary earned bears to a 
  3.8   full-time salary, with any salary paid for the fractional 
  3.9   service credited on the basis of the rate of salary applicable 
  3.10  for a full-time pay period, month, or a full-time year.  For 
  3.11  periods of part-time service that is duplicated service credit, 
  3.12  section 356.30, subdivision 1, clauses (i) and (j), govern. 
  3.13     Allowable service determined and credited on a fractional 
  3.14  basis shall be used in calculating the amount of benefits 
  3.15  payable, but service as determined on a fractional basis must 
  3.16  not be used in determining the length of service required for 
  3.17  eligibility for benefits.  
  3.18     (9) Any period of authorized leave of absence without pay 
  3.19  that does not exceed one year and for which the employee 
  3.20  obtained credit by payment to the fund in lieu of salary 
  3.21  deductions.  To obtain credit, the employee shall pay an amount 
  3.22  equal to the employee and employer contribution rate in section 
  3.23  352.04, subdivisions 2 and 3, multiplied by the employee's 
  3.24  hourly rate of salary on the date of return from leave of 
  3.25  absence and by the days and months of the leave of absence 
  3.26  without pay for which the employee wants allowable service 
  3.27  credit.  The employing department, at its option, may pay the 
  3.28  employer amount on behalf of its employees.  Payments made under 
  3.29  this clause must include interest at an annual rate of 8.5 
  3.30  percent compounded annually from the date of termination of the 
  3.31  leave of absence to the date payment is made unless payment is 
  3.32  completed within one year of the return from leave of absence. 
  3.33     (10) A period purchased under section 356.555. 
  3.34     (11) Any period of time while on strike without pay that 
  3.35  does not exceed one year for which the employee obtained credit 
  3.36  by payment to the fund in lieu of salary deductions.  To obtain 
  4.1   credit, the employee shall pay an amount equal to the employee 
  4.2   and employer contributions rate in section 352.04, subdivisions 
  4.3   2 and 3, multiplied by the employee's hourly rate of salary on 
  4.4   the date of return from the strike and by the days and months of 
  4.5   the strike without pay for which the employee wants allowable 
  4.6   service credit.  The employing department, at its option, may 
  4.7   pay the employer amount on behalf of its employees.  Payments 
  4.8   made under this clause must include interest at an annual rate 
  4.9   of 8.5 percent compounded annually from the last day of the 
  4.10  strike to the date payment is made unless payment is completed 
  4.11  within one year of the last day of the strike. 
  4.12     Sec. 2.  [EFFECTIVE DATE.] 
  4.13     Section 1 is effective retroactive to July 1, 2001.