MN HF3716

Revises augmentation interest rates for terminated hospital employees under the Minnesota State Retirement System, with different rates depending on employment termination date before or after June 2, 2006.

Employees terminated before June 2, 2006 receive 5.5 percent augmentation until age 55 or December 31, 2016, then 7.5 percent until retirement; employees terminated after that date receive 4 percent until age 55, then 6 percent until retirement.

Establishes regular augmentation rates beginning January 1, 2017 that revert to rates set forth in section 352.72, subdivision 2 for all terminated hospital employees.

Allows terminated hospital employees who return to covered employment to receive whichever retirement annuity calculation produces the highest monthly payment, with adjustments to avoid duplicate benefits.

Requires the Minnesota State Retirement System to recalculate annuities for employees who began receiving benefits on or after July 1, 2015 and pay any retroactive differences as a lump sum.