LCPR03-079

1.1     ............... moves to amend H.F. No. 841; S.F. No. 843

1.2 as follows:

1.3     Delete everything after the enacting clause and insert:

1.4     "Sec. 1. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE

1.5 TERMINATION.]

1.6     Subdivision 1. [ELIGIBILITY.] (a) An eligible individual

1.7 specified in paragraph (b) is authorized to apply for a

1.8 retirement annuity, provided necessary age and service

1.9 requirements are met, under Minnesota Statutes, section 353.29

1.10 or 353.30, as applicable, as further specified under subdivision

1.11 2.

1.12    (b) an eligible individual is an individual who:

1.13    (1) was employed as a Beltrami county employee and became a

1.14 member of the public employees retirement association general

1.15 plan due to that service on June 1, 1991;

1.16    (2) was elected to the Bemidji city council and took office

1.17 in January 2001;

1.18    (3) elected under law then applicable to have public

1.19 employees retirement association general plan coverage for the

1.20 city council elected service; and

1.21    (4) terminated Beltrami county employment but is unable to

1.22 commence receipt of a public employees retirement association

1.23 general plan annuity because of the continuing public employees

1.24 retirement association general plan coverage for the elected

1.25 city council service.

1.26     Subd. 2. [RETIREMENT ANNUITY.] (a) Notwithstanding an

1.27 irrevocable election to participate in the public employees

1.28 retirement association general plan as an elected official and

1.29 continuation of elected service, an eligible individual under

1.30 subdivision 1, paragraph (b), is deemed to have terminated

1.31 membership under Minnesota Statutes, section 353.01, subdivision

1.32 11b, following the termination of the Beltrami county employment.

1.33 (b) If the requirements of paragraph (a) are satisfied, the

1.34 eligible individual may apply for a retirement annuity under

1.35 Minnesota Statutes, section 353.29 or 353.30, as applicable. In

1.36 computing the annuity, the public employees retirement

2.1 association must exclude salary due to the elected Bemidji city

2.2 council service. Deferred annuity augmentation under Minnesota

2.3 Statutes, section 353.71, applies to this annuity.

2.4    Subd. 3. [TREATMENT OF BEMIDJI CITY COUNCIL CONTRIBUTIONS

2.5 TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] (a) All

2.6 employee contributions to the public employees retirement

2.7 association coordinated plan by an eligible individual in

2.8 subdivision 1, paragraph (b), due to the elected Bemidji city

2.9 council service, and all corresponding employer contributions,

2.10 must be determined.

2.11    (b) An eligible individual under subdivision 1, paragraph

2.12 (b), must elect, within one year of the effective date of this

2.13 section or upon termination of elective service, whichever is

2.14 earlier, a refund under Minnesota Statutes, section 353.34,

2.15 subdivision 2, of employee contributions determined under

2.16 paragraph (a), or coverage by the public employees defined

2.17 contribution plan under chapter 353D, as further specified in

2.18 paragraph (c).

2.19    (c) If public employee defined contribution plan coverage

2.20 is elected under paragraph (b), contributions to that plan

2.21 commence as of the first day of the pay period following this

2.22 election, and accumulated employee and employer contributions

2.23 determined under paragraph (a) must be transferred with six

2.24 percent annual interest to an account for the eligible

2.25 individual in the public employees defined contribution plan.

2.26    (d) If no election is made by an eligible individual by the

2.27 required date in paragraph (b), the individual is assumed to

2.28 have elected the refund indicated in paragraph (b).

2.29 (e) Upon an election under paragraph (b), or a mandatory

2.30 refund under paragraph (d), all rights in the public employees

2.31 retirement association coordinated plan due to elected Bemidji

2.32 city council service are forfeited and may not be reestablished.

2.33    Sec. 2. [EFFECTIVE DATE.]

2.34    Section 1 is effective on the day following final

2.35 enactment."

2.36    Amend the title to read:

3.1     "A bill for an act

3.2 relating to retirement; public employees retirement

3.3 association general plan and defined contribution

3.4 plan; authorizing a Bemidji city council member to

3.5 terminate general plan coverage and commence defined

3.6 contribution plan coverage."