Minn. Stat. § 353F.04
AUGMENTATION INTEREST RATES FOR PRIVATIZED EMPLOYEES.
Redline — January 1, 2012 → current.View current text →
Current — January 1, 2020
As of January 1, 2012
Subdivision 1. Enhanced augmentation rates.
Subdivision 1. Enhanced augmentation rates.
(a) The deferred annuity of a terminated medical facility or other public employing unit employee is subject to augmentation under section 353.71, subdivision 2 , of the edition of Minnesota Statutes published in the year in which the privatization occurred, except that the rate of augmentation is as specified in this subdivision.
(a) The deferred annuity of a privatized former public employee is subject to augmentation under section 353.34, subdivision 3 , except that the rate of augmentation is as specified in this section.
(b) This paragraph applies if the legislation adding the medical facility or other employing unit to section 353F.02 , subdivision 4 or 5, as applicable, was enacted before July 26, 2005, and became effective before January 1, 2008, for the Hutchinson Area Health Care or before January 1, 2007, for all other medical facilities and all other employing units. For a terminated medical facility or other public employing unit employee, the augmentation rate is 5.5 percent compounded annually until January 1 following the year in which the person attains age 55. From that date to the effective date of retirement, the augmentation rate is 7.5 percent compounded annually.
(b) This paragraph applies if the effective date of privatization was on or before January 1, 2007, and also applies to Hutchinson Area Health Care with a privatization effective date of January 1, 2008. For a privatized former public employee, the augmentation rate is 5.5 percent compounded annually until January 1 following the year in which the person attains age 55. After that date, the augmentation rate is 7.5 percent compounded annually.
(c) If paragraph (b) is not applicable, and if the effective date of the privatization is before January 1, 2011, the augmentation rate is four percent compounded annually until January 1, following the year in which the person attains age 55. From that date to the effective date of retirement, the augmentation rate is six percent compounded annually.
(c) If paragraph (b) is not applicable, and if the effective date of the privatization is after January 1, 2007, and before January 1, 2011, then the augmentation rate is four percent compounded annually until January 1, following the year in which the person attains age 55. After that date, the augmentation rate is six percent compounded annually.
(d) If the effective date of the privatization is after December 31, 2010, the applicable augmentation rate depends on the result of computations specified in section 353F.025, subdivision 1 . If those computations indicate no loss or a net gain to the fund of the general employees retirement plan of the Public Employees Retirement Association, the augmentation rate is 2.0 percent compounded annually until the effective date of retirement. If the computations under that subdivision indicate a net loss to the fund if a 2.0 percent augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is used, then the augmentation rate is 1.0 percent compounded annually until the effective date of retirement.
(d) If the effective date of the privatization is after December 31, 2010, the augmentation rate depends on the result of computations specified in section 353F.025, subdivision 1 . If those computations indicate no loss or a net gain to the fund of the general employees retirement plan of the Public Employees Retirement Association, the augmentation rate is two percent compounded annually. If the computations under that subdivision indicate a net loss to the fund if a two percent augmentation rate is used, but a net gain or no loss if a one percent rate is used, then the augmentation rate is one percent compounded annually.
(e) The term "effective date of the privatization" as used in this subdivision means the "effective date" as defined in section 353F.02, subdivision 3 .
(e) Notwithstanding paragraphs (b) to (d), after June 30, 2020, and before January 1, 2024, the augmentation rate for all privatized former public employees under paragraphs (b) to (d) is two percent compounded annually. After December 31, 2023, no additional augmentation is applied to the privatized former public employee's deferred annuity.
Subd. 2. Exceptions.
Subd. 2. Exceptions.
The increased augmentation rates specified in subdivision 1 do not apply if the terminated medical facility or other public employing unit employee: (1) becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3 ; or (2) begins receipt of a retirement annuity while employed by the employer which assumed operations of the medical facility or other public employing unit or purchased the medical facility or other public employing unit.
The augmentation rates specified in subdivision 1 do not apply to a privatized former public employee: (1) beginning the first of the month in which the privatized former public employee becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3 , if the employee accrues at least six months of credited service in any single plan enumerated in section 356.30, subdivision 3 , except clause (6); (2) beginning the first of the month in which the privatized former public employee becomes covered again by the general employees retirement plan of the Public Employees Retirement Association; (3) beginning the first of the month after a privatized former public employee terminates service with the privatized former public employer; (4) if the privatized former public employee begins receipt of a retirement annuity while employed by the privatized former public employer; or (5) if the effective date of privatization occurs after June 30, 2020.
Official source: Minnesota Office of the Revisor of Statutes. Reproduced from public-domain Minnesota statutes; confirm against the official source for the current text. Not legal advice.