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HF3300 (Legislative Session 94 (2025-2026))

Public Employees Retirement Association; employer failure to record service corrected, payment of employee and employer contributions on omitted service required, and Rule of 90 eligibility for an eligible employee extended.

Related bill: SF3493

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to address a failure by an employer to properly record a public employee's service, specifically related to the Public Employees Retirement Association (PERA). It mandates the correction of this oversight by facilitating the payment of both employee and employer contributions for unrecorded service time. Additionally, it seeks to extend the "Rule of 90" eligibility to the affected employee.

Main Provisions

  • Corrections to Service Records: The bill specifies that Alaine Pappin, who was employed by Independent School District No. 281 Robbinsdale, must have compensations calculated and contributions made for services that were provided before July 1, 1989, but were previously not reported.

  • Retroactive Contributions: Although Alaine Pappin was not enrolled in a public pension plan at the time of her service, the bill allows for retroactive payments to be made. This action is intended to establish her membership in a recognized public pension fund.

  • Establishment of Pension Rights: Once contributions are made, Alaine Pappin gains eligibility for early retirement benefits under the terms that align with those specified in section 354.44 relating to pension plans.

  • Calculation of Contributions: The Public Employees Retirement Association is responsible for calculating the necessary contributions, including interest on the missed salary, which is $3185.

Significant Changes to Existing Law

  • This bill introduces a special condition that permits the establishment of public pension benefits for unrecorded service period, even if the employee was not enrolled in the pension during the time of service.

  • It extends early retirement benefits by establishing eligibility for the "Rule of 90" for Alaine Pappin, effective upon resolution of the historical employment record issues.

Relevant Terms

public employees retirement association, employer contributions, employee contributions, unreported service, public pension fund, early retirement benefit, Rule of 90, Alaine Pappin, Independent School District No. 281, Robbinsdale, pension rights.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
May 06, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Procedures for retroactive contributions by Alaine Pappin and Robbinsdale ISD No. 281."
      ],
      "removed": [],
      "summary": "This bill addresses the issues of underreported service time for retirement contributions under section 353.27, subdivision 12b.",
      "modified": []
    },
    "citation": "353.27",
    "subdivision": "subdivision 12b"
  },
  {
    "analysis": {
      "added": [
        "Acknowledgement of retroactive eligibility for Alaine Pappin."
      ],
      "removed": [],
      "summary": "This bill references retroactive membership establishment in public pension funds under section 356.30, subdivision 3.",
      "modified": []
    },
    "citation": "356.30",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute is cited for determining eligibility for unreduced early retirement benefits.",
      "modified": [
        "Clarifies eligibility under revised conditions in bill."
      ]
    },
    "citation": "354.44",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors