352.955 TRANSFER OF PRIOR MSRS-GENERAL SERVICE CREDIT FOR CERTAIN
EMPLOYEES WITH TRANSFERRED RETIREMENT COVERAGE.
    Subdivision 1. Election to transfer prior MSRS-general service credit. (a) An eligible
employee described in paragraph (b) may elect to transfer service credit in the general state
employees retirement plan of the Minnesota State Retirement System to the correctional state
employees retirement plan for eligible prior correctional employment.
    (b) An eligible employee is a person who is covered by Laws 2007, chapter 134, article 3,
section 6, or who became eligible for retirement coverage by the correctional state employees
retirement plan of the Minnesota State Retirement System under Laws 2006, chapter 271, article
2, Laws 2007, chapter 134, article 3, or legislation implementing the recommendations under
section 352.91, subdivision 4a.
    (c) Eligible prior correctional employment is covered correctional service defined in Laws
2007, chapter 134, article 3, section 6, or is employment by the Department of Corrections or by
the Department of Human Services that preceded the effective date of the retirement coverage
transfer under Laws 2006, chapter 271, article 2, Laws 2007, chapter 134, article 3, or legislation
implementing the recommendations under section 352.91, subdivision 4a, is continuous service,
and is certified by the commissioner of corrections and the commissioner of human services,
whichever applies, and by the commissioner of employee relations to the executive director
of the Minnesota State Retirement System as service that would qualify for correctional state
employees retirement plan coverage under section 352.91, if the service was rendered after the
date of coverage transfer.
    (d) The election to transfer past service credit under this section must be made in writing
by the applicable person on a form prescribed by the executive director of the Minnesota
State Retirement System and must be filed with the executive director of the Minnesota State
Retirement System on or before (1) January 1, 2008, or the one year anniversary of the coverage
transfer, whichever is later, or (2) the date of the eligible employee's termination of state
employment, whichever is earlier.
    Subd. 2. Payment of additional equivalent contributions; pre-July 1, 2007, coverage
transfers. (a) An eligible employee who was transferred to plan coverage before July 1, 2007,
and who elects to transfer past service credit under this section must pay an additional member
contribution for that prior service period. The additional member contribution is the difference
between the member contribution rate or rates for the general state employees retirement plan
of the Minnesota State Retirement System for the period of employment covered by the service
credit to be transferred and the member contribution rate or rates for the correctional state
employees retirement plan for the period of employment covered by the service credit to be
transferred, plus annual compound interest at the rate of 8.5 percent.
    (b) The additional equivalent member contribution under this subdivision must be paid
in a lump sum. Payment must accompany the election to transfer the prior service credit. No
transfer election or additional equivalent member contribution payment may be made by a person
or accepted by the executive director after January 1, 2008, or the date on which the eligible
employee terminates state employment, whichever is earlier.
    (c) If an eligible employee elects to transfer past service credit under this section and
pays the additional equivalent member contribution amount under paragraphs (a) and (b), the
applicable department shall pay an additional equivalent employer contribution amount. The
additional employer contribution is the difference between the employer contribution rate or rates
for the general state employees retirement plan for the period of employment covered by the
service credit to be transferred and the employer contribution rate or rates for the correctional
state employees retirement plan for the period of employment covered by the service credit to be
transferred, plus annual compound interest at the rate of 8.5 percent.
    (d) The additional equivalent employer contribution under this subdivision must be paid in
a lump sum and must be paid within 30 days of the date on which the executive director of the
Minnesota State Retirement System certifies to the applicable department that the employee paid
the additional equivalent member contribution.
    Subd. 3. Payment of additional equivalent contributions; post-June 30, 2007, coverage
transfers. (a) An eligible employee who was transferred to plan coverage after June 30, 2007,
and who elects to transfer past service credit under this section must pay an additional member
contribution for that prior service period. The additional member contribution is (1) the difference
between the member contribution rate or rates for the general state employees retirement plan
of the Minnesota State Retirement System for the period of employment covered by the service
credit to be transferred and the member contribution rate or rates for the correctional state
employees retirement plan for the most recent 12 month period of employment covered by the
service credit to be transferred, plus annual compound interest at the rate of 8.5 percent, and
(2) 40 percent of the unfunded actuarial accrued liability attributable to the past service credit
transfer. The unfunded actuarial accrued liability attributable to the past service credit transfer is
the present value of the benefit obtained by the transfer of the service credit to the correctional
state employees retirement plan reduced by the amount of the asset transfer under subdivision
4, by the amount of the member contribution equivalent payment under clause (1), and by the
amount of the employer contribution equivalent payment under paragraph (c), clause (1).
    (b) The additional equivalent member contribution under this subdivision must be paid in a
lump sum. Payment must accompany the election to transfer the prior service credit. No transfer
election or additional equivalent member contribution payment may be made by a person or
accepted by the executive director after the one year anniversary date of the effective date of
the retirement coverage transfer, or the date on which the eligible employee terminates state
employment, whichever is earlier.
    (c) If an eligible employee elects to transfer past service credit under this section and pays
the additional equivalent member contribution amount under subdivision 2, the applicable
department shall pay an additional equivalent employer contribution amount. The additional
employer contribution is (1) the difference between the employer contribution rate or rates for
the general state employees retirement plan for the period of employment covered by the service
credit to be transferred and the employer contribution rate or rates for the correctional state
employees retirement plan for the period of employment covered by the service credit to be
transferred, plus annual compound interest at the rate of 8.5 percent, and (2) 60 percent of the
unfunded actuarial accrued liability attributable to the past service credit transfer calculated as
provided in paragraph (a), clause (2).
    (d) The additional equivalent employer contribution under this subdivision must be paid in
a lump sum and must be paid within 30 days of the date on which the executive director of the
Minnesota State Retirement System certifies to the applicable department that the employee paid
the additional equivalent member contribution.
    Subd. 4. Transfer of assets. Assets related to the transferred service credit of an eligible
employee must be transferred from the general state employees retirement fund to the correctional
state employees retirement fund in an amount equal to the present value of benefits earned under
the general state employees retirement plan by the eligible employee transferring past service
to the correctional state employees retirement plan, as determined by the actuary retained under
section 356.214, multiplied by the accrued liability funding ratio of the active members of the
general state employees retirement plan as derived from the most recent actuarial valuation
prepared under section 356.215. The transfer of assets must be made within 45 days after the
coverage transfer election is made.
    Subd. 5. Effect of the asset transfer. Upon the transfer of assets under subdivision 4, the
service credit in the general state employees retirement plan of the Minnesota State Retirement
System is forfeited and may not be reinstated. The transferred service credit and the transferred
assets must be credited to the correctional state employees retirement plan and fund, respectively.
    Subd. 6. Cost of actuarial calculations. The applicable department shall pay the cost of the
actuarial calculations required by this section as billed by the executive director of the Minnesota
State Retirement System.
History: 2007 c 134 art 3 s 5