LCPR03-245
1.1 ............... moves to amend the amendment to H.F. No.
1.2 ....; S.F. No. .... (LCPR03-243), as follows:
1.3 Page 14, after line 29, insert:
1.4 "Section 1. Minnesota Statutes 2002, section 352.27, is
1.5 amended to read:
1.6 352.27 CREDIT FOR MILITARY BREAK IN SERVICE TO PROVIDE
1.7 UNIFORMED SERVICE.
1.8 Any (a) An employee given a leave of absence to enter
1.9 military service who is absent from employment by reason of
1.10 service in the uniformed services, as defined in United States
1.11 Code, title 38, section 4303(13), and who returns to state
1.12 service upon discharge from military service as provided in the
1.13 uniformed service within the time frames required in United
1.14 States Code, title 38, section 192.262 4312(e), may obtain
1.15 service credit for the period of military the uniformed service.
1.16 The employee is not entitled to credit for any voluntary
1.17 extension of military service at the instance of the employee
1.18 beyond the initial period of enlistment, induction, or call to
1.19 active duty, nor to credit for any period of service following a
1.20 voluntary return to military service as further specified in
1.21 this section, provided that the employee did not separate from
1.22 uniformed service with a dishonorable or bad conduct discharge
1.23 or under other than honorable conditions. An
1.24 (b) The employee may obtain credit by paying into the fund
1.25 an equivalent employee contribution based upon the contribution
1.26 rate or rates in effect at the time that the uniformed service
1.27 was performed multiplied by the full and fractional years being
1.28 purchased and applied to the annual salary received at the date
1.29 of return from military service. The amount of this contribution
1.30 must be the applicable amounts required in section 352.04,
1.31 subdivision 2, plus interest at an annual rate of 8.5 percent
1.32 compounded annually rate. The annual salary rate is the average
1.33 annual salary during the purchase period that the employee would
1.34 have received if the employee had continued to be employed in
1.35 covered employment rather than to provide uniformed service, or,
1.36 if the determination of that rate is not reasonably certain, the
2.1 annual salary rate is the employee's average salary rate during
2.2 the 12-month period of covered employment immediately preceding
2.3 the period of the uniformed service.
2.4 (c) The matching equivalent employer contribution and, if
2.5 applicable, the equivalent additional employer contribution
2.6 provided in section 352.04 must be paid by the department
2.7 employing the employee upon return to state service from funds
2.8 available to the department at the time and in the manner
2.9 provided in section 352.04, using the employer and additional
2.10 employer contribution rate or rates in effect at the time that
2.11 the uniformed service was performed, applied to the same annual
2.12 salary rate or rates used to compute the equivalent employee
2.13 contribution.
2.14 (d) If the employee equivalent contributions provided in
2.15 this section are not paid in full, the employee's allowable
2.16 service credit must be prorated by multiplying the full and
2.17 fractional number of years of uniformed service eligible for
2.18 purchase by the ratio obtained by dividing the total employee
2.19 contribution received by the total employee contribution
2.20 otherwise required under this section.
2.21 (e) To receive service credit under this section, the
2.22 contributions specified in this section must be transmitted to
2.23 the Minnesota State Retirement System during the period which
2.24 begins with the date on which the individual returns to state
2.25 service and which has a duration of three times the length of
2.26 the uniformed service period, but not to exceed five years. If
2.27 the determined payment period is less than one year, the
2.28 contributions required under this section to receive service
2.29 credit may be made within one year of the discharge date.
2.30 (f) The amount of service credit obtainable under this
2.31 section may not exceed five years unless a longer purchase
2.32 period is required under United States Code, title 38, section
2.33 4312.
2.34 (g) The employing unit shall pay interest on all equivalent
2.35 employee and employer contribution amounts payable under this
2.36 section. Interest must be computed at a rate of 8.5 percent
3.1 compounded annually from the end of each fiscal year of the
3.2 leave or the break in service to the end of the month in which
3.3 the payment is received.
3.4 Sec. 2. Minnesota Statutes 2002, section 352B.01, is
3.5 amended by adding a subdivision to read:
3.6 Subd. 3b. CREDIT FOR BREAK IN SERVICE TO PROVIDE
3.7 UNIFORMED SERVICE. (a) A member who is absent from employment
3.8 by reason of service in the uniformed services, as defined in
3.9 United States Code, title 38, section 4303(13), and who returns
3.10 to state employment in a position covered by the plan upon
3.11 discharge from service in the uniformed service within the time
3.12 frame required in United States Code, title 38, section 4312(e),
3.13 may obtain service credit for the period of the uniformed
3.14 service, provided that the member did not separate from
3.15 uniformed service with a dishonorable or bad conduct discharge
3.16 or under other than honorable conditions.
3.17 (b) The member may obtain credit by paying into the fund an
3.18 equivalent member contribution based on the contribution rate or
3.19 rates in effect at the time that the uniformed service was
3.20 performed multiplied by the full and fractional years being
3.21 purchased and applied to the annual salary rate. The annual
3.22 salary rate is the average annual salary during the purchase
3.23 period that the member would have received if the member had
3.24 continued to provide employment services to the state rather
3.25 than to provide uniformed service, or if the determination of
3.26 that rate is not reasonably certain, the annual salary rate is
3.27 the member's average salary rate during the 12-month period
3.28 immediately preceding the purchase period.
3.29 (c) The equivalent employer contribution and, if
3.30 applicable, the equivalent employer additional contribution,
3.31 must be paid by the employing unit, using the employer and
3.32 employer additional contribution rate or rates in effect at the
3.33 time that the uniformed service was performed, applied to the
3.34 same annual salary rate or rates used to compute the equivalent
3.35 member contribution.
3.36 (d) If the member equivalent contributions provided for in
4.1 this subdivision are not paid in full, the member's allowable
4.2 service credit must be prorated by multiplying the full and
4.3 fractional number of years of uniformed service eligible for
4.4 purchase by the ratio obtained by dividing the total member
4.5 contributions received by the total member contributions
4.6 otherwise required under this subdivision.
4.7 (e) To receive allowable service credit under this
4.8 subdivision, the contributions specified in this section must be
4.9 transmitted to the fund during the period which begins with the
4.10 date on which the individual returns to state employment covered
4.11 by the plan and which has a duration of three times the length
4.12 of the uniformed service period, but not to exceed five years.
4.13 If the determined payment period is calculated to be less than
4.14 one year, the contributions required under this subdivision to
4.15 receive service credit may be within one year from the discharge
4.16 date.
4.17 (f) The amount of allowable service credit obtainable under
4.18 this section may not exceed five years, unless a longer purchase
4.19 period is required under United States Code, title 38, section
4.20 4312.
4.21 (g) The employing unit shall pay interest on all equivalent
4.22 member and employer contribution amounts payable under this
4.23 subdivision. Interest must be computed at a rate of 8.5 percent
4.24 compounded annually from the end of each fiscal year of the
4.25 leave or break in service to the end of the month in which
4.26 payment is received.
4.27 Sec. 3. Minnesota Statutes 2002, section 353.01,
4.28 subdivision 16, is amended to read:
4.29 Subd. 16. ALLOWABLE SERVICE; LIMITS AND COMPUTATION. (a)
4.30 "Allowable service" means:
4.31 (1) service during years of actual membership in the course
4.32 of which employee contributions were made, periods covered by
4.33 payments in lieu of salary deductions under section 353.35;
4.34 (2) service in years during which the public employee was
4.35 not a member but for which the member later elected, while a
4.36 member, to obtain credit by making payments to the fund as
5.1 permitted by any law then in effect;
5.2 (3) a period of authorized leave of absence with pay from
5.3 which deductions for employee contributions are made, deposited,
5.4 and credited to the fund;
5.5 (4) a period of authorized personal, parental, or medical
5.6 leave of absence without pay, including a leave of absence
5.7 covered under the federal Family Medical Leave Act, that does
5.8 not exceed one year, and during or for which a member obtained
5.9 service credit for each month in the leave period by payments to
5.10 the fund made in place of salary deductions. The payments must
5.11 be made in an amount or amounts based on the member's average
5.12 salary on which deductions were paid for the last six months of
5.13 public service, or for that portion of the last six months while
5.14 the member was in public service, to apply to the period in
5.15 either case that immediately precedes the commencement of the
5.16 leave of absence. If the employee elects to pay the employee
5.17 contributions for the period of any authorized personal,
5.18 parental, or medical leave of absence without pay, or for any
5.19 portion of the leave, the employee shall also, as a condition to
5.20 the exercise of the election, pay to the fund an amount
5.21 equivalent to the required employer and the additional employer
5.22 contributions, if any, for the employee. The payment must be
5.23 made within one year from the expiration of the leave of absence
5.24 or within 20 days after termination of public service under
5.25 subdivision 11a, whichever is earlier. The employer, by
5.26 appropriate action of its governing body which is made a part of
5.27 its official records and which is adopted before the date of the
5.28 first payment of the employee contribution, may certify to the
5.29 association in writing its commitment to pay the employer and
5.30 additional employer contributions from the proceeds of a tax
5.31 levy made under section 353.28. Payments under this paragraph
5.32 must include interest at an annual rate of 8.5 percent
5.33 compounded annually from the date of the termination of the
5.34 leave of absence to the date payment is made. An employee shall
5.35 return to public service and render a minimum of three months of
5.36 allowable service in order to be eligible to pay employee and
6.1 employer contributions for a subsequent authorized leave of
6.2 absence without pay. Upon payment, the employee must be granted
6.3 allowable service credit for the purchased period;
6.4 (5) a periodic, repetitive leave that is offered to all
6.5 employees of a governmental subdivision. The leave program may
6.6 not exceed 208 hours per annual normal work cycle as certified
6.7 to the association by the employer. A participating member
6.8 obtains service credit by making employee contributions in an
6.9 amount or amounts based on the member's average salary that
6.10 would have been paid if the leave had not been taken. The
6.11 employer shall pay the employer and additional employer
6.12 contributions on behalf of the participating member. The
6.13 employee and the employer are responsible to pay interest on
6.14 their respective shares at the rate of 8.5 percent a year,
6.15 compounded annually, from the end of the normal cycle until full
6.16 payment is made. An employer shall also make the employer and
6.17 additional employer contributions, plus 8.5 percent interest,
6.18 compounded annually, on behalf of an employee who makes employee
6.19 contributions but terminates public service. The employee
6.20 contributions must be made within one year after the end of the
6.21 annual normal working cycle or within 20 days after termination
6.22 of public service, whichever is sooner. The association shall
6.23 prescribe the manner and forms to be used by a governmental
6.24 subdivision in administering a periodic, repetitive leave. Upon
6.25 payment, the member must be granted allowable service credit for
6.26 the purchased period;
6.27 (6) an authorized temporary layoff under subdivision 12,
6.28 limited to three months allowable service per authorized
6.29 temporary layoff in one calendar year. An employee who has
6.30 received the maximum service credit allowed for an authorized
6.31 temporary layoff must return to public service and must obtain a
6.32 minimum of three months of allowable service subsequent to the
6.33 layoff in order to receive allowable service for a subsequent
6.34 authorized temporary layoff; or
6.35 (7) a period during which a member is on an authorized
6.36 leave of absence to enter military absent from employment by a
7.1 governmental subdivision by reason of service in the armed
7.2 forces of the United States in the uniformed services, as
7.3 defined in United States Code, title 38, section 4303(13), if
7.4 the member returns to public service upon discharge
7.5 from military service in the uniformed service within the time
7.6 frames required under United States Code, title 38, section
7.7 192.262 and 4312(e), provided that the member did not separate
7.8 from uniformed service with a dishonorable or bad conduct
7.9 discharge or under other than honorable conditions. The service
7.10 is credited if the member pays into the fund equivalent employee
7.11 contributions based upon the employee's contribution rate or
7.12 rates in effect at the time that the uniformed service was
7.13 performed multiplied by the full and fractional years being
7.14 purchased and applied to the annual salary at the date of return
7.15 from military service rate. The annual salary rate is the
7.16 average annual salary during the purchase period that the member
7.17 would have received if the member had continued to be employed
7.18 in covered employment rather than to provide uniformed service,
7.19 or, if the determination of that rate is not reasonably certain,
7.20 the annual salary rate is the member's average salary rate
7.21 during the 12-month period of covered employment immediately
7.22 preceding the period of the uniformed service. Payment of the
7.23 member equivalent contributions must be made within during a
7.24 period which begins with the date on which the individual
7.25 returns to public employment and that is three times the length
7.26 of the military leave period, or within five years of the date
7.27 of discharge from the military service, whichever is less. If
7.28 the determined payment period is less than one year, the
7.29 contributions required under this clause to receive service
7.30 credit may be made within one year of the discharge date.
7.31 Payment may not be accepted following 20 days after termination
7.32 of public service under subdivision 11a. The amount of these
7.33 contributions must be in accord with the contribution rates and
7.34 salary limitations, if any, in effect during the leave, plus
7.35 interest at an annual rate of 8.5 percent compounded annually
7.36 from the date of return to public service to the date payment is
8.1 made. If the member equivalent contributions provided for in
8.2 this clause are not paid in full, the member's allowable service
8.3 credit must be prorated by multiplying the full and fractional
8.4 number of years of uniformed service eligible for purchase by
8.5 the ratio obtained by dividing the total member contributions
8.6 received by the total member contributions otherwise required
8.7 under this clause. The corresponding equivalent employer
8.8 contribution, and, if applicable, the equivalent additional
8.9 employer contribution, if applicable, must be paid by the
8.10 governmental subdivision employing the member upon the person's
8.11 return to public service if the member makes the equivalent
8.12 employee contributions. The employer payments must be made from
8.13 funds available to the employing unit, using the employer and
8.14 additional employer contribution rate or rates in effect at the
8.15 time that the uniformed service was performed, applied to the
8.16 same annual salary rate or rates used to compute the equivalent
8.17 member contribution. The governmental subdivision involved may
8.18 appropriate money for those payments. A member may not receive
8.19 credit for a voluntary extension of military service at the
8.20 instance of the member beyond the initial period of enlistment,
8.21 induction, or call to active duty. The amount of service credit
8.22 obtainable under this section may not exceed five years unless a
8.23 longer purchase period is required under United States Code,
8.24 title 38, section 4312. The employing unit shall pay interest
8.25 on all equivalent member and employer contribution amounts
8.26 payable under this clause. Interest must be computed at a rate
8.27 of 8.5 percent compounded annually from the end of each fiscal
8.28 year of the leave or the break in service to the end of the
8.29 month in which the payment is received. Upon payment, the
8.30 employee must be granted allowable service credit for the
8.31 purchased period.
8.32 (b) For calculating benefits under sections 353.30, 353.31,
8.33 353.32, and 353.33 for state officers and employees displaced by
8.34 the Community Corrections Act, chapter 401, and transferred into
8.35 county service under section 401.04, "allowable service" means
8.36 the combined years of allowable service as defined in paragraph
9.1 (a), clauses (1) to (6), and section 352.01, subdivision 11.
9.2 (c) For a public employee who has prior service covered by
9.3 a local police or firefighters relief association that has
9.4 consolidated with the Public Employees Retirement Association or
9.5 to which section 353.665 applies, and who has elected the type
9.6 of benefit coverage provided by the public employees police and
9.7 fire fund either under section 353A.08 following the
9.8 consolidation or under section 353.665, subdivision 4,
9.9 "applicable service" is a period of service credited by the
9.10 local police or firefighters relief association as of the
9.11 effective date of the consolidation based on law and on bylaw
9.12 provisions governing the relief association on the date of the
9.13 initiation of the consolidation procedure.
9.14 (d) No member may receive more than 12 months of allowable
9.15 service credit in a year either for vesting purposes or for
9.16 benefit calculation purposes.
9.17 (e) "Allowable service" also means a period purchased under
9.18 section 356.555."
9.19 Page 21, after line 7, insert:
9.20 "Sec. 9. Minnesota Statutes 2002, section 490.121, is
9.21 amended by adding a subdivision to read:
9.22 Subd. 4b. CREDIT FOR BREAK IN SERVICE TO PROVIDE
9.23 UNIFORMED SERVICE. (a) A judge who is absent from employment by
9.24 reason of service in the uniformed services, as defined in
9.25 United States Code, title 38, section 4303(13), and who returns
9.26 to state employment as a judge upon discharge from service in
9.27 the uniformed service within the time frame required in United
9.28 States Code, title 38, section 4312(e) may obtain service credit
9.29 for the period of the uniformed service, provided that the judge
9.30 did not separate from uniformed service with a dishonorable or
9.31 bad conduct discharge or under other than honorable conditions.
9.32 (b) The judge may obtain credit by paying into the fund
9.33 equivalent member contribution based on the contribution rate
9.34 rates in effect at the time that the uniformed service was
9.35 performed multiplied by the full and fractional years being
9.36 purchased and applied to the annual salary rate. The annual
10.1 salary rate is the average annual salary during the purchase
10.2 period that the judge would have received if the judge had
10.3 continued to provide employment services to the state rather
10.4 than to provide uniformed service, or if the determination of
10.5 that rate is not reasonably certain, the annual salary rate is
10.6 the judge's average salary rate during the 12-month period
10.7 immediately preceding the purchase period.
10.8 (c) The equivalent employer contribution and, if
10.9 applicable, the equivalent employer additional contribution,
10.10 must be paid by the employing unit, using the employer and
10.11 employer additional contribution rate or rates in effect at the
10.12 time that the uniformed service was performed, applied to the
10.13 same annual salary rate or rates used to compute the equivalent
10.14 member contribution.
10.15 (d) If the member equivalent contributions provided for in
10.16 this subdivision are not paid in full, the judge's allowable
10.17 service credit must be prorated by multiplying the full and
10.18 fractional number of years of uniformed service eligible for
10.19 purchase by the ratio obtained by dividing the total member
10.20 contributions received by the total member contributions
10.21 otherwise required under this subdivision.
10.22 (e) To receive allowable service credit under this
10.23 subdivision, the contributions specified in this section must be
10.24 transmitted to the fund during the period which begins with the
10.25 date on which the individual returns to judicial employment and
10.26 which has a duration of three times the length of the uniformed
10.27 service period, but not to exceed five years. If the determined
10.28 payment period is calculated to be less than one year, the
10.29 contributions required under this subdivision to receive service
10.30 credit may be within one year from the discharge date.
10.31 (f) The amount of allowable service credit obtainable under
10.32 this section may not exceed five years, unless a longer purchase
10.33 period is required under United States Code, title 38, section
10.34 4312.
10.35 (g) The state court administrator shall pay interest on all
10.36 equivalent member and employer contribution amounts payable
11.1 under this subdivision. Interest must be computed at a rate of
11.2 8.5 percent compounded annually from the end of each fiscal year
11.3 of the leave or break in service to the end of the month in
11.4 which payment is received."
11.5 Renumber the sections in sequence
11.6 Correct the internal references
11.7 Amend the title accordingly