1.2relating to retirement; Minnesota State Retirement System; revising the treatment
1.3of certain former privatized hospital employees who return to public service;
1.4amending Minnesota Statutes 2014, section 352F.04, subdivision 2, by adding a
1.5subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2014, section 352F.04, subdivision 2, is amended to read:
1.8    Subd. 2. Exceptions Exception. The increased enhanced augmentation rates
1.9specified in subdivision 1 do not apply if the terminated hospital employee:
1.10(1) becomes covered again by a retirement plan enumerated in section 356.30,
1.11subdivision 3 ; or
1.12(2) begins receipt of a retirement annuity under chapter 352 while employed by the
1.13employer which assumed operations of the medical facility or other public employing unit
1.14or purchased the medical facility or other public employing unit.
1.15EFFECTIVE DATE.This section is effective retroactively from July 1, 2015.

1.16    Sec. 2. Minnesota Statutes 2014, section 352F.04, is amended by adding a subdivision
1.17to read:
1.18    Subd. 3. Return to covered employment. (a) If a terminated hospital employee
1.19becomes covered by a retirement plan enumerated in section 356.30, subdivision 3, the
1.20employee shall be entitled to whichever of the following annuities produces the highest
1.21monthly payment:
1.22(1) a deferred annuity and augmentation to which the employee would have been
1.23entitled under subdivision 1 reduced by the dollar amount of any additional benefit
2.1earned under any enumerated retirement plan after the effective date as defined in section
2.2352F.02, subdivision 3;
2.3(2) a combined service annuity calculated under section 356.30; or
2.4(3) an annuity calculated under section 352.72 for coverage by more than one
2.5retirement system using the augmentation rates set forth in section 352.72, subdivision 2,
2.6paragraph (a).
2.7(b) This subdivision applies to any terminated hospital employee who begins to
2.8receive a retirement annuity under chapter 352, on or after July 1, 2015.
2.9EFFECTIVE DATE.This section is effective the day following final enactment.

2.10    Sec. 3. ANNUITY ADJUSTMENT.
2.11Under Minnesota Statutes, section 352F.04, subdivision 3, if any terminated hospital
2.12employee began to receive a retirement annuity under Minnesota Statutes, chapter 352,
2.13as adjusted under Minnesota Statutes, chapter 352F, on or after July 1, 2015, but prior
2.14to the effective date of this section, the terminated hospital employee's annuity must be
2.15recalculated under Minnesota Statutes, section 352F.04, subdivision 3, and, if the monthly
2.16amount as recalculated exceeds the monthly amount being received by the terminated
2.17hospital employee, the Minnesota State Retirement System shall:
2.18(1) begin paying the recalculated monthly amount as of the first payment date after
2.19the effective date of this section; and
2.20(2) pay the sum of the difference between the amount the terminated hospital
2.21employee received each month since commencement of the annuity and the amount the
2.22terminated hospital employee would have received under Minnesota Statutes, section
2.23352F.04, subdivision 3, for that month. The sum of the difference each month shall be
2.24paid in a lump sum to the terminated hospital employee along with the first payment of
2.25the recalculated amount under clause (1).
2.26EFFECTIVE DATE.This section is effective the day following final enactment.