Minnesota Legislature
HF 547
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18
1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 3.37 3.38 3.39 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24
4.25 4.26 4.27 4.28 4.29 4.30 4.31
4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13
5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15
6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2
7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23
7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31
7.32 7.33
A bill for an act
relating to retirement; extending certain rule of 90 benefits to coordinated
members of teachers retirement associations; amending Minnesota Statutes 2006,
sections 354.42, subdivisions 2, 3; 354.44, subdivision 6; 354A.011, subdivision
7a; 354A.12, subdivisions 1, 2a; 354A.31, subdivisions 4, 6, by adding a
subdivision; repealing Minnesota Statutes 2006, section 354A.31, subdivision 4a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 354.42, subdivision 2, is amended to read:
Subd. 2.
Employee.
(a) The employee contribution to the fund is an amount equal
to the following percentage of the salary of a member:
(1) after July 1, 2006, for a teacher employed by Special School District No. 1,
Minneapolis, deleted text begin 5.5deleted text end new text begin ...new text end percent if the teacher is a coordinated member, and 9.0 percent if the
teacher is a basic member;
(2) for every other teacher, after July 1, 2006, deleted text begin 5.5deleted text end new text begin ...new text end percent if the teacher is a
coordinated member and 9.0 percent if the teacher is a basic member.
(b) This contribution must be made by deduction from salary. Where any portion
of a member's salary is paid from other than public funds, the member's employee
contribution must be based on the entire salary received.
Sec. 2.
Minnesota Statutes 2006, section 354.42, subdivision 3, is amended to read:
Subd. 3.
Employer.
(a) The regular employer contribution to the fund by Special
School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an
amount equal to deleted text begin 5.0deleted text end new text begin ...new text end percent of the salary of each of its teachers who is a coordinated
member and 9.0 percent of the salary of each of its teachers who is a basic member. After
July 1, 2007, the regular employer contribution to the fund by Special School District No.
1, Minneapolis, is an amount equal to deleted text begin 5.5deleted text end new text begin ...new text end percent of salary of each coordinated member
and 9.5 percent of salary of each basic member. The additional employer contribution to
the fund by Special School District No. 1, Minneapolis, after July 1, 2006, is an amount
equal to 3.64 percent of the salary of each teacher who is deleted text begin a coordinated member or isdeleted text end a
basic membernew text begin , and ... percent of the salary of each teacher who is a coordinated membernew text end .
(b) The employer contribution to the fund for every other employer is an amount
equal to deleted text begin 5.0deleted text end new text begin ...new text end percent of the salary of each coordinated member and 9.0 percent of the
salary of each basic member before July 1, 2007, and deleted text begin 5.5deleted text end new text begin ...new text end percent of the salary of
each coordinated member and 9.5 percent of the salary of each basic member after June
30, 2007.
Sec. 3.
Minnesota Statutes 2006, section 354.44, subdivision 6, is amended to read:
Subd. 6.
Computation of formula program retirement annuity.
(a) The formula
retirement annuity must be computed in accordance with the applicable provisions of the
formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
section 354.05, subdivision 13a, for the period of the member's formula service credit.
(b) This paragraph, in conjunction with paragraph (c), applies to a person who first
became a member of the association or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with
paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
average salary as defined in section 354.05, subdivision 13a, multiplied by the following
percentages per year of formula service credit shall determine the amount of the annuity to
which the member qualifying therefor is entitled for service rendered before July 1, 2006:
| Coordinated Member |
Basic Member |
||||
| Each year of service during first ten |
the percent specified in section 356.315, subdivision 1, per year |
the percent specified in section 356.315, subdivision 3, per year |
|||
| Each year of service thereafter |
the percent specified in section 356.315, subdivision 2, per year |
the percent specified in section 356.315, subdivision 4, per year |
For service rendered on or after July 1, 2006, the average salary as defined in section
354.05, subdivision 13a, multiplied by the following percentages per year of service
credit, determines the amount the annuity to which the member qualifying therefor is:
| Coordinated Member |
Basic Member |
||||
| Each year of service during first ten |
the percent specified in section 356.315, subdivision 1a, per year |
the percent specified in section 356.315, subdivision 3, per year |
|||
| Each year of service after ten years of service |
the percent specified in section 356.315, subdivision 2b, per year |
the percent specified in section 356.315, subdivision 4, per year |
(c)(i) This paragraph applies only to a person who first became a member of the
association or a member of a pension fund listed in section 356.30, subdivision 3, before
July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
conjunction with this paragraph than when calculated under paragraph (d), in conjunction
with paragraph (e).
(ii) Where any member retires prior to normal retirement age under a formula
annuity, the member shall be paid a retirement annuity in an amount equal to the normal
annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
that the member is under normal retirement age at the time of retirement except that for
any member who has 30 or more years of allowable service credit, the reduction shall be
applied only for each month that the member is under age 62.
(iii) Any member whose attained age plus credited allowable service totals 90 years
is entitled, upon application, to a retirement annuity in an amount equal to the normal
annuity provided in paragraph (b), without any reduction by reason of early retirement.
(d) This paragraph applies to a member who has become at least 55 years old and
first became a member of the association after June 30, 1989, and to any other member
who has become at least 55 years old and whose annuity amount when calculated under
this paragraph and in conjunction with paragraph (e), is higher than it is when calculated
under paragraph (b), in conjunction with paragraph (c). For a basic member, the average
salary, as defined in section 354.05, subdivision 13a, multiplied by the percent specified
by section 356.315, subdivision 4, for each year of service for a basic member shall
determine the amount of the retirement annuity to which the basic member is entitled.
The annuity of a basic member who was a member of the former Minneapolis Teachers
Retirement Fund Association as of June 30, 2006, must be determined according to the
annuity formula under the articles of incorporation of the former Minneapolis Teachers
Retirement Fund Association in effect as of that date. For a coordinated member, the
average salary, as defined in section 354.05, subdivision 13a, multiplied by the percent
specified in section 356.315, subdivision 2, for each year of service rendered before July
1, 2006, and by the percent specified in section 356.315, subdivision 2b, for each year of
service rendered on or after July 1, 2006, determines the amount of the retirement annuity
to which the coordinated member is entitled.
(e) This paragraph applies to a person who has become at least 55 years old and first
becomes a member of the association after June 30, 1989, and to any other member who
has become at least 55 years old and whose annuity is higher when calculated under
paragraph (d) in conjunction with this paragraph than when calculated under paragraph
(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
before the normal retirement age shall be paid the normal annuity provided in paragraph
(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would
be payable to the employee if the employee deferred receipt of the annuity and the annuity
amount were augmented at an annual rate of three percent compounded annually from the
day the annuity begins to accrue until the normal retirement age if the employee became
an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
becomes an employee after June 30, 2006.
(f) new text begin Notwithstanding paragraph (c), clause (i), a member of the association who first
became a member of the association after June 30, 1989, and whose age plus credited
allowable service totals 90 years is eligible upon termination of teaching service to apply
for an annuity computed under paragraph (c), clause (iii).
new text end
new text begin (g) new text end No retirement annuity is payable to a former employee with a salary that exceeds
95 percent of the governor's salary unless and until the salary figures used in computing
the highest five successive years average salary under paragraph (a) have been audited by
the Teachers Retirement Association and determined by the executive director to comply
with the requirements and limitations of section 354.05, subdivisions 35 and 35a.
Sec. 4.
Minnesota Statutes 2006, section 354A.011, subdivision 7a, is amended to read:
Subd. 7a.
Average salary.
"Average salary," for purposes of computing a normal
coordinated program retirement annuity under section 354A.31, subdivision 4 deleted text begin or 4adeleted text end ,
means an amount equal to the average salary upon which contributions were made for the
highest five successive years of service credit but may not, in any event, include any more
than the equivalent of 60 monthly salary payments. Average salary must be based upon all
years of service credit if this service credit is less than five years.
Sec. 5.
Minnesota Statutes 2006, section 354A.12, subdivision 1, is amended to read:
Subdivision 1.
Employee contributions.
The contribution required to be paid by
each member of a teachers retirement fund association shall not be less than the percentage
of total salary specified below for the applicable association and program:
| Association and Program |
Percentage of |
||
| Total Salary |
|||
| Duluth Teachers Retirement Association |
|||
| old law and new law |
|||
| coordinated programs |
deleted text begin 5.5deleted text end new text begin ...new text end percent |
||
| St. Paul Teachers Retirement Association |
|||
| basic program |
8 percent |
||
| coordinated program |
deleted text begin 5.5deleted text end new text begin ...new text end percent |
||
Contributions shall be made by deduction from salary and must be remitted directly
to the respective teachers retirement fund association at least once each month.
Sec. 6.
Minnesota Statutes 2006, section 354A.12, subdivision 2a, is amended to read:
Subd. 2a.
Employer regular and additional contribution rates.
(a) The
employing units shall make the following employer contributions to teachers retirement
fund associations:
(1) for any coordinated member of a teachers retirement fund association in a city
of the first class, the employing unit shall pay the employer Social Security taxes in
accordance with section 355.46, subdivision 3, clause (b);
(2) for any coordinated member of one of the following teachers retirement fund
associations in a city of the first class, the employing unit shall make a regular employer
contribution to the respective retirement fund association in an amount equal to the
designated percentage of the salary of the coordinated member as provided below:
| Duluth Teachers Retirement |
||
| Fund Association |
deleted text begin 4.50deleted text end new text begin ...new text end percent |
|
| St. Paul Teachers Retirement |
||
| Fund Association |
deleted text begin 4.50deleted text end new text begin ...new text end percent |
(3) for any basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement
fund in an amount equal to 8.00 percent of the salary of the basic member;
(4) for a basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make an additional employer contribution to the respective fund in
an amount equal to 3.64 percent of the salary of the basic member;
(5) for a coordinated member of a teachers retirement fund association in a city
of the first class, the employing unit shall make an additional employer contribution to
the respective fund in an amount equal to the applicable percentage of the coordinated
member's salary, as provided below:
| Duluth Teachers Retirement |
|||
| Fund Association |
deleted text begin 1.29deleted text end new text begin ...new text end percent |
||
| St. Paul Teachers Retirement |
|||
| Fund Association |
new text begin
... percent new text end |
||
|
deleted text begin
July 1, 1993 - June 30, 1994 deleted text end |
deleted text begin
0.50 percent deleted text end |
||
|
deleted text begin
July 1, 1994 - June 30, 1995 deleted text end |
deleted text begin
1.50 percent deleted text end |
||
|
deleted text begin
July 1, 1997, and thereafter deleted text end |
deleted text begin
3.84 percent deleted text end |
||
(b) The regular and additional employer contributions must be remitted directly to
the respective teachers retirement fund association at least once each month. Delinquent
amounts are payable with interest under the procedure in subdivision 1a.
(c) Payments of regular and additional employer contributions for school district
or technical college employees who are paid from normal operating funds must be made
from the appropriate fund of the district or technical college.
Sec. 7.
Minnesota Statutes 2006, section 354A.31, subdivision 4, is amended to read:
Subd. 4.
Computation of normal coordinated retirement annuitydeleted text begin ; St. Paul
funddeleted text end .
(a) This subdivision applies to the coordinated program of the St. Paul Teachers
Retirement Fund Associationnew text begin and to the new law coordinated program of the Duluth
Teachers Retirement Fund Associationnew text end .
(b) The normal coordinated retirement annuity is an amount equal to a retiring
coordinated member's average salary under section 354A.011, subdivision 7a, multiplied
by the retirement annuity formula percentage.
(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
became a member or a member in a pension fund listed in section 356.30, subdivision 3,
before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
higher annuity amount, in which case paragraph (d) will apply. The retirement annuity
formula percentage for purposes of this paragraph is the percent specified in section
356.315, subdivision 1, per year for each year of coordinated service for the first ten years
and the percent specified in section 356.315, subdivision 2, for each year of coordinated
service thereafter.
(d) This paragraph applies to a person who has become at least 55 years old and who
first becomes a member after June 30, 1989, and to any other member who has become
at least 55 years old and whose annuity amount, when calculated under this paragraph
and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
percentage for purposes of this paragraph is the percent specified in section 356.315,
subdivision 2, for each year of coordinated service.
Sec. 8.
Minnesota Statutes 2006, section 354A.31, subdivision 6, is amended to read:
Subd. 6.
Reduced retirement annuity.
This subdivision applies only to a person
who first became a coordinated member or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989, and whose annuity is higher when calculated
using the retirement annuity formula percentage in subdivision 4, paragraph (c), deleted text begin or
subdivision 4a, paragraph (c),deleted text end in conjunction with this subdivision than when calculated
under subdivision 4, paragraph (d), deleted text begin or subdivision 4a, paragraph (d),deleted text end in conjunction with
subdivision 7.
(a) Upon retirement at an age before normal retirement age with three years of
service credit or prior to age 62 with at least 30 years of service credit, a coordinated
member shall be entitled to a retirement annuity in an amount equal to the normal
retirement annuity calculated using the retirement annuity formula percentage in
subdivision 4, paragraph (c), deleted text begin or subdivision 4a, paragraph (c),deleted text end reduced by one-quarter of
one percent for each month that the coordinated member is under normal retirement age if
the coordinated member has less than 30 years of service credit or is under the age of 62 if
the coordinated member has at least 30 years of service credit.
(b) Any coordinated member whose attained age plus credited allowable service
totals 90 years is entitled, upon application, to a retirement annuity in an amount equal to
the normal retirement annuity calculated using the retirement annuity formula percentage
in subdivision 4, paragraph (c), deleted text begin or subdivision 4a, paragraph (c),deleted text end without any reduction by
reason of early retirement.
Sec. 9.
Minnesota Statutes 2006, section 354A.31, is amended by adding a subdivision
to read:
new text begin Subd. 7a. new text end
new text begin Coordinated member eligibility exception. new text end
new text begin
Notwithstanding
subdivision 4 regarding benefit computations for a person who first becomes a member
before July 1, 1989, a coordinated member who first becomes a member after June 30,
1989, who terminates from teaching service and files a valid application for retirement,
and whose age plus years of allowable service totals 90, is eligible for an annuity
computed under subdivision 6, paragraph (b).
new text end
Sec. 10. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2006, section 354A.31, subdivision 4a,
new text end
new text begin
is repealed.
new text end