Bill Text: MN HF1759 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public Employees Retirement Association privatizations augmentation rates applicable to new privatizations decreased.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-05-22 - Introduction and first reading, referred to Government Operations and Elections [HF1759 Detail]
Download: Minnesota-2011-HF1759-Introduced.html
1.2relating to retirement; Public Employees Retirement Association privatizations;
1.3decreasing augmentation rates applicable to new privatizations;amending
1.4Minnesota Statutes 2010, section 353F.04, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 353F.04, subdivision 1, is amended to read:
1.7 Subdivision 1. Enhanced augmentation rates. (a) The deferred annuity of
1.8a terminated medical facility or other public employing unit employee is subject
1.9to augmentation under section353.71, subdivision 2 , of the edition of Minnesota
1.10Statutes published in the year in which the privatization occurred, except that the rate
1.11of augmentation is as specified inparagraph (b) or (c), whichever is applicable this
1.12subdivision.
1.13 (b) This paragraph applies if the legislation adding the medical facility or other
1.14employing unit to section353F.02 , subdivision 4 or 5, as applicable, was enacted before
1.15July 26, 2005, and became effective before January 1, 2008, for the Hutchinson Area
1.16Health Care or before January 1, 2007, for all other medical facilities and all other
1.17employing units. For a terminated medical facility or other public employing unit
1.18employee, the augmentation rate is 5.5 percent compounded annually until January 1
1.19following the year in which the person attains age 55. From that date to the effective date
1.20of retirement, the augmentation rate is7.5 percent compounded annually.
1.21 (c) If paragraph (b) is not applicable, and if the effective date of the privatization is
1.22before January 1, 2011, the augmentation rate is four percent compounded annually until
1.23January 1, following the year in which the person attains age 55. From that date to the
1.24effective date of retirement, the augmentation rate is six percent compounded annually.
2.1(d) If the effective date of the privatization is after December 31, 2010, and before
2.2January 1, 2012, and if the person became a public employee on or before June 30, 2006:
2.3(1) if the former member is less than age 55 on January 1, 2011, the augmentation
2.4rate is at a 3.0 percent annual rate through December 31, 2011, prorated if the privatization
2.5occurs less than one full year before January 1, 2012;
2.6(2) if the former member is age 55 or older on January 1, 2011, the augmentation
2.7rate is at a 5.0 percent annual rate through December 31, 2011, prorated if the privatization
2.8occurs less than one full year before January 1, 2012; and
2.9(3) regardless of age, after December 31, 2011, the augmentation rate is 1.0 percent
2.10compounded annually until the effective date of retirement.
2.11(e) If the effective date of the privatization is after December 31, 2010, and before
2.12January 1, 2012, and if the person became a public employee after June 30, 2006:
2.13(1) the augmentation rate is at a 2.5 percent annual rate through December 31, 2011,
2.14prorated if the privatization occurs less than one year before January 1, 2012; and
2.15(2) after December 31, 2011, the augmentation rate is 1.0 percent compounded
2.16annually until the effective date of retirement.
2.17(f) If the effective date of the privatization is January 1, 2012, or later, no
2.18augmentation applies.
2.19(g) The term "effective date of the privatization" as used in this subdivision means
2.20the "effective date" as defined in section 353F.02, subdivision 3.
2.21EFFECTIVE DATE.This section is effective the day following final enactment.
1.3decreasing augmentation rates applicable to new privatizations;amending
1.4Minnesota Statutes 2010, section 353F.04, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 353F.04, subdivision 1, is amended to read:
1.7 Subdivision 1. Enhanced augmentation rates. (a) The deferred annuity of
1.8a terminated medical facility or other public employing unit employee is subject
1.9to augmentation under section
1.10Statutes published in the year in which the privatization occurred, except that the rate
1.11of augmentation is as specified in
1.12subdivision.
1.13 (b) This paragraph applies if the legislation adding the medical facility or other
1.14employing unit to section
1.15July 26, 2005, and became effective before January 1, 2008, for the Hutchinson Area
1.16Health Care or before January 1, 2007, for all other medical facilities and all other
1.17employing units. For a terminated medical facility or other public employing unit
1.18employee, the augmentation rate is 5.5 percent compounded annually until January 1
1.19following the year in which the person attains age 55. From that date to the effective date
1.20of retirement, the augmentation rate is
1.21 (c) If paragraph (b) is not applicable, and if the effective date of the privatization is
1.22before January 1, 2011, the augmentation rate is four percent compounded annually until
1.23January 1, following the year in which the person attains age 55. From that date to the
1.24effective date of retirement, the augmentation rate is six percent compounded annually.
2.1(d) If the effective date of the privatization is after December 31, 2010, and before
2.2January 1, 2012, and if the person became a public employee on or before June 30, 2006:
2.3(1) if the former member is less than age 55 on January 1, 2011, the augmentation
2.4rate is at a 3.0 percent annual rate through December 31, 2011, prorated if the privatization
2.5occurs less than one full year before January 1, 2012;
2.6(2) if the former member is age 55 or older on January 1, 2011, the augmentation
2.7rate is at a 5.0 percent annual rate through December 31, 2011, prorated if the privatization
2.8occurs less than one full year before January 1, 2012; and
2.9(3) regardless of age, after December 31, 2011, the augmentation rate is 1.0 percent
2.10compounded annually until the effective date of retirement.
2.11(e) If the effective date of the privatization is after December 31, 2010, and before
2.12January 1, 2012, and if the person became a public employee after June 30, 2006:
2.13(1) the augmentation rate is at a 2.5 percent annual rate through December 31, 2011,
2.14prorated if the privatization occurs less than one year before January 1, 2012; and
2.15(2) after December 31, 2011, the augmentation rate is 1.0 percent compounded
2.16annually until the effective date of retirement.
2.17(f) If the effective date of the privatization is January 1, 2012, or later, no
2.18augmentation applies.
2.19(g) The term "effective date of the privatization" as used in this subdivision means
2.20the "effective date" as defined in section 353F.02, subdivision 3.
2.21EFFECTIVE DATE.This section is effective the day following final enactment.
