HF 1462

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; modifying teachers retirement 
  1.3             provisions; providing for service credit purchases; 
  1.4             permitting a transfer of funds; extending the prior 
  1.5             service credit determination procedure; amending 
  1.6             Minnesota Statutes 2000, sections 354.534, subdivision 
  1.7             1; 354.539; and 356.55, subdivision 7; proposing 
  1.8             coding for new law in Minnesota Statutes, chapters 354 
  1.9             and 354B. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 354.534, 
  1.12  subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  1.14  teacher who has at least three years of allowable service credit 
  1.15  with the teachers retirement association is entitled to purchase 
  1.16  up to ten years of allowable and formula service credit for 
  1.17  out-of-state teaching service by making payment under section 
  1.18  356.55, provided the out-of-state teaching service was performed 
  1.19  for an educational institution established and operated by 
  1.20  another state, governmental subdivision of another state, or the 
  1.21  federal government, an American Indian tribe, or a public 
  1.22  educational institution in a foreign country and the teacher is 
  1.23  not entitled to receive a current or deferred age and service 
  1.24  retirement annuity or disability benefit and has not purchased 
  1.25  service credit from another defined benefit public employee 
  1.26  pension plan for that out-of-state teaching service. 
  1.27     Sec. 2.  Minnesota Statutes 2000, section 354.539, is 
  2.1   amended to read: 
  2.2      354.539 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 
  2.3   PURCHASE SERVICE CREDIT.] 
  2.4      (a) Unless prohibited by or subject to a penalty under 
  2.5   federal law, a teacher who is a participant in the college 
  2.6   supplemental retirement plan established under chapter 354C may 
  2.7   utilize the teacher's supplemental plan account to purchase 
  2.8   service credit under sections 354.50, 354.53, 354.533, 354.534, 
  2.9   354.535, 354.536, 354.537, and 354.538, 354.541, and 354.542. 
  2.10     (b) At the request of a member, if determined by the 
  2.11  executive director to be eligible to purchase service credit, 
  2.12  the executive director shall notify the board of the Minnesota 
  2.13  state colleges and universities system of the cost of the 
  2.14  purchase and shall request the transfer of funds from the 
  2.15  member's college supplemental retirement account to the teachers 
  2.16  retirement association.  Upon receipt of the full prior service 
  2.17  credit purchase payment amount, the teachers retirement 
  2.18  association shall grant the requested allowable and formula 
  2.19  service credit. 
  2.20     Sec. 3.  [354.541] [PRIOR UNIVERSITY OF MINNESOTA TEACHING 
  2.21  SERVICE CREDIT PURCHASE.] 
  2.22     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  2.23  teacher who has at least three years of allowable service credit 
  2.24  with the teachers retirement association is entitled to purchase 
  2.25  up to ten years of allowable and formula service credit for 
  2.26  University of Minnesota teaching service by making payment under 
  2.27  section 356.55, provided the teacher is not entitled to receive 
  2.28  a current or deferred age and service retirement annuity or 
  2.29  disability benefit and has not purchased service credit from 
  2.30  another defined benefit public employee pension plan for that 
  2.31  University of Minnesota teaching service.  
  2.32     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  2.33  desires to purchase service credit under subdivision 1 must 
  2.34  apply with the executive director to make the purchase.  The 
  2.35  application must include all necessary documentation of the 
  2.36  teacher's qualifications to make the purchase, signed written 
  3.1   permission to allow the executive director to request and 
  3.2   receive necessary verification of applicable facts and 
  3.3   eligibility requirements, and any other relevant information 
  3.4   that the executive director may require.  Payment must be made 
  3.5   before the teacher's effective date of retirement. 
  3.6      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
  3.7   service credit for the purchase period must be granted by the 
  3.8   teachers retirement association to the purchasing teacher on 
  3.9   receipt of the purchase payment amount. 
  3.10     Sec. 4.  [354.542] [PRIOR TEACHING SERVICE CREDIT PURCHASE 
  3.11  BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT ASSOCIATION 
  3.12  CREDIT.] 
  3.13     A teacher who is a participant in the individual retirement 
  3.14  account plan authorized by chapter 354B and who has at least 
  3.15  three years of allowable service credit with the teachers 
  3.16  retirement association may purchase service credit as provided 
  3.17  in sections 354.533 to 354.538 and 354.541. 
  3.18     Sec. 5.  [354B.32] [TRANSFER OF FUNDS TO IRAP.] 
  3.19     A participant in the individual retirement account plan 
  3.20  established in this chapter who has less than ten years of 
  3.21  allowable service under the teachers retirement association may 
  3.22  elect to transfer an amount equal to the participant's 
  3.23  contribution to the teachers retirement association, plus 
  3.24  interest at the rate of six percent per annum, to the individual 
  3.25  retirement account plan.  The transfers shall be irrevocable 
  3.26  fund to fund transfers, and in no event may the participant 
  3.27  receive the money transferred prior to retirement.  If a 
  3.28  participant elects the transfer, all of the participant's 
  3.29  service credit with the teachers retirement association shall 
  3.30  terminate. 
  3.31     The teachers retirement association shall notify 
  3.32  participants who are eligible to transfer of their right to 
  3.33  transfer and the amount they are eligible to transfer, and shall 
  3.34  upon request provide forms to implement the transfer.  The 
  3.35  Minnesota state colleges and universities shall assist the 
  3.36  teachers retirement association in developing transfer forms and 
  4.1   in implementing the transfers.  
  4.2      This section expires on July 1, 2004. 
  4.3      Sec. 6.  Minnesota Statutes 2000, section 356.55, 
  4.4   subdivision 7, is amended to read: 
  4.5      Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
  4.6   PROCEDURE.] (a) This section expires and is repealed on July 
  4.7   1, 2001 2003. 
  4.8      (b) Authority for any public pension plan to accept a prior 
  4.9   service credit payment calculated in a timely fashion under this 
  4.10  section expires on October 1, 2001 2003.