HF 1539

as introduced - 87th Legislature (2011 - 2012) Posted on 04/18/2011 09:53am

A bill for an act
relating to retirement; Teachers Retirement Association; permitting certain
Minnesota State Colleges and Universities system faculty members to elect
prospective and retroactive defined benefit coverage for Minnesota State
Colleges and Universities system employment.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin TEACHERS RETIREMENT ASSOCIATION; COVERAGE
ELECTION FOR CERTAIN MNSCU FACULTY MEMBER.
new text end

new text begin (a) Notwithstanding any provision to the contrary in Minnesota Statutes, chapter
354B, an eligible person described in paragraph (b) may elect prospective and retroactive
retirement coverage under paragraph (c).
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on February 2, 1978;
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new text begin (2) was initially employed by the Minnesota State Colleges and Universities system
on a part-time basis at Metropolitan State University on August 27, 2005;
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new text begin (3) was also additionally employed within the Minnesota State Colleges and
Universities system at Inver Hills Community College and St. Paul College; and
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new text begin (4) was covered by the higher education individual retirement account plan because
of a failure of Metropolitan State University to advise the eligible person about the
optional election and default retirement coverage provisions of Minnesota Statutes, section
354B.21, subdivisions 2 and 3.
new text end

new text begin (c) An eligible person may elect retirement coverage by the Teachers Retirement
Association rather than the higher education individual retirement account plan for faculty
employment rendered after the date of the retirement coverage election under this section
and for past Minnesota State Colleges and Universities system faculty employment from
August 27, 2005, until the date of the retirement coverage election. The election must
be made in writing, must be filed with the executive director of the Teachers Retirement
Association, and must be accompanied with any relevant documentation required by the
executive director of the Teachers Retirement Association.
new text end

new text begin (d) If an eligible person makes the retirement coverage election under paragraph (c),
the eligible person's member contributions to the higher education individual retirement
account plan must be transferred to the Teachers Retirement Association, with any earned
investment returns on those contributions. If the transferred member contributions and
investment earnings are less than the calculated amount of the member contribution that
the eligible person would have made to the Teachers Retirement Association on the
eligible person's compensation from the Minnesota State Colleges and Universities system
for the period from August 27, 2005, to the date of the retirement coverage election, if
the person had been covered by the Teachers Retirement Association during the period,
plus annual compound interest at the rate of 8.5 percent, the eligible person shall pay the
balance of that calculated member contribution obligation within 30 days of the retirement
coverage election. Any payment may be made through an institution-to-institution
transfer from the eligible person's account in the Minnesota state deferred compensation
program or the eligible person's tax-sheltered savings account under the federal Internal
Revenue Code, section 403(b).
new text end

new text begin (e) Upon the transfer of the equivalent member contribution amount and any
additional payments under paragraph (d), the balance of the eligible person's higher
education individual retirement account plan account must be transferred to the Teachers
Retirement Association. If the amounts under paragraph (d) and the higher education
individual retirement account plan account balance under this paragraph are less than
the prior service credit purchase payment amount calculated under Minnesota Statutes,
section 356.551, the Minnesota State Colleges and Universities system shall pay that
difference within 60 days of the retirement coverage election date.
new text end

new text begin (f) Upon the transfers and payments under paragraphs (d) and (e), the eligible person
must be credited by the Teachers Retirement Association with allowable and formula
service for Minnesota State Colleges and Universities system employment since August
27, 2005.
new text end

new text begin (g) The authority to make a retirement coverage election under this section expires
on January 1, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end