1.2relating to retirement; Minnesota State Retirement System; revising augmentation
1.3interest rates for certain terminated privatized employees; amending Minnesota
1.4Statutes 2014, section 352F.04, subdivisions 1, 2, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2014, section 352F.04, subdivision 1, is amended to read:
1.7    Subdivision 1. Enhanced augmentation rates. (a) The deferred annuity of a
1.8terminated hospital employee who attained that status before June 2, 2006, is subject to
1.9augmentation under Minnesota Statutes 1994, section 352.72, subdivision 2, except that
1.10the rate of augmentation is 5.5 percent compounded annually until the earlier of January 1
1.11following the year in which the person attains age 55 or December 31, 2016. From that date
1.12to the effective date of retirement January 1 following the year in which the person attains
1.13age 55 to December 31, 2016, the augmentation rate is 7.5 percent compounded annually.
1.14(b) If a terminated hospital employee attained that status on or after June 2, 2006, the
1.15augmentation rate is four percent compounded annually until January 1, following the
1.16year in which the person attains age 55. From that date to the effective date of retirement,
1.17the augmentation rate is six percent compounded annually.
1.18EFFECTIVE DATE.This section is effective the day following final enactment.

1.19    Sec. 2. Minnesota Statutes 2014, section 352F.04, is amended by adding a subdivision
1.20to read:
1.21    Subd. 1a. Regular augmentation rates. From January 1, 2017, to the effective date
1.22of retirement, the augmentation rate applicable to the deferred annuity of a terminated
1.23hospital employee is the applicable rate as set forth in section 352.72, subdivision 2.
2.1EFFECTIVE DATE.This section is effective the day following final enactment.

2.2    Sec. 3. Minnesota Statutes 2014, section 352F.04, subdivision 2, is amended to read:
2.3    Subd. 2. Exceptions Exception. The increased enhanced augmentation rates
2.4specified in subdivision 1 do not apply if the terminated hospital employee:
2.5(1) becomes covered again by a retirement plan enumerated in section 356.30,
2.6subdivision 3 ; or
2.7(2) begins receipt of a retirement annuity under chapter 352 while employed by the
2.8employer which assumed operations of the medical facility or other public employing unit
2.9or purchased the medical facility or other public employing unit.
2.10EFFECTIVE DATE.This section is effective the day following final enactment.

2.11    Sec. 4. Minnesota Statutes 2014, section 352F.04, is amended by adding a subdivision
2.12to read:
2.13    Subd. 3. Return to covered employment. (a) If a terminated hospital employee
2.14becomes covered by a retirement plan enumerated in section 356.30, subdivision 3, the
2.15employee shall be entitled to whichever of the following annuities produces the highest
2.16monthly payment:
2.17(1) a deferred annuity and augmentation to which the employee would have been
2.18entitled under subdivision 1 reduced by the dollar amount of any additional benefit
2.19earned under any enumerated retirement plan after the effective date as defined in section
2.20352F.02, subdivision 1;
2.21(2) a combined service annuity calculated under section 356.30; or
2.22(3) an annuity calculated under section 352.72 for coverage by more than one
2.23retirement system using the augmentation rates set forth in section 352.72, subdivision 2,
2.24paragraph (a).
2.25(b) This subdivision applies to any terminated hospital employee who begins to
2.26receive a retirement annuity under chapter 352 on or after July 1, 2015.
2.27EFFECTIVE DATE.This section is effective the day following final enactment.