Minnesota Statutes 352F.04 – Augmentation Rates for Terminated Privatized Employees; Return to Coverage
Subdivision 1.Enhanced augmentation rates.
The deferred annuity of a terminated hospital employee is subject to augmentation under Minnesota Statutes 1994, section 352.72, subdivision 2, except that the rate of augmentation to be applied each January 1 is set by this subdivision. For augmentation through December 31, 2018, the rate of augmentation is set under Minnesota Statutes 2016, section 352.04, subdivision 1. For augmentation beginning January 1, 2019, the rate of augmentation is the following:
| January 1, 2019 | 4.5 percent | |
| January 1, 2020 | 3.75 percent | |
| January 1, 2021 | 3.0 percent | |
| January 1, 2022 | 2.25 percent | |
| January 1, 2023 | 1.5 percent | |
| January 1, 2024 | 0.75 percent | |
| After December 31, 2024, the deferred annuity must not be augmented. | ||
Terms Used In Minnesota Statutes 352F.04
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Terminated hospital employee: means a person who:
(1) was employed on the day before the effective date by the University of Minnesota at the University of Minnesota Hospital and clinics or the Academic Health Center and was paid on a biweekly payroll;
(2) terminated employment with the University of Minnesota on the day before the effective date or in the case of employees of the Academic Health Center, terminated employment with the University of Minnesota after the effective date but immediately transferred employment to the University of Minnesota Physicians or University Affiliated Family Physicians; and
(3) was a participant in the general state employees retirement plan of the Minnesota State Retirement System at the time of termination of employment with the University of Minnesota. See Minnesota Statutes 352F.02
Augmentation for each year is effective as of January 1 of that year.
Subd. 2.Exceptions.
The enhanced augmentation rates specified in subdivision 1 do not apply if the terminated hospital employee:
(1) became covered again by a retirement plan enumerated in section 356.30, subdivision 3, on or before June 30, 2015; or
(2) begins receipt of a retirement annuity under chapter 352 before age 62 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.
Subd. 3.Return to covered employment.
(a) If a terminated hospital employee becomes covered by a retirement plan enumerated in section 356.30, subdivision 3, the employee shall be entitled to whichever of the following annuities produces the highest monthly payment:
(1) the deferred annuity and augmentation to which the employee would have been entitled under subdivision 1 reduced by the dollar amount of any annuity earned under any enumerated retirement plan after the effective date defined in section 352F.02, subdivision 3;
(2) a combined service annuity calculated under section 356.30; or
(3) an annuity calculated under section 352.72 for coverage by more than one retirement system using the augmentation rates in section 352.72, subdivision 2, paragraph (a).
(b) This subdivision applies to any terminated hospital employee who begins to receive a retirement annuity under chapter 352 on or after July 1, 2015.