HF 1738

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; higher education individual
retirement account plan; permitting up to five years
to elect between defined benefit and defined
contribution plan coverage; amending Minnesota
Statutes 2004, section 354B.21, subdivisions 2, 3.

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

Section 1.

Minnesota Statutes 2004, section 354B.21,
subdivision 2, is amended to read:

Subd. 2.

Coverage; election.

(a) deleted text begin An eligible person is
entitled to elect coverage by the plan. If the eligible person
does not make a timely election of coverage by the plan, the
person has the coverage specified in subdivision 3.
deleted text end

deleted text begin (b) deleted text end For eligible persons who were employed by the former
state university system or the former community college system
before May 1, 1995, the person has the retirement coverage that
the person had for employment immediately before May 1, 1995.

deleted text begin (c) deleted text end new text begin (b) new text end For all other eligible persons, deleted text begin the election of
coverage must be made within 90 days of May 10, 1995, or 90 days
of receiving notice from the employer of the options available
under this section, whichever occurs later deleted text end new text begin unless otherwise
specified in this section, the eligible person is authorized to
elect prospective Teachers Retirement Association plan coverage
rather than coverage by the plan established by this chapter.
The election of prospective Teachers Retirement Association plan
coverage shall be made within five years of commencing eligible
Minnesota State Colleges and Universities system employment. If
an election is not made within the specified election period due
to a termination of Minnesota State Colleges and Universities
system employment, an election may be made within 90 days of
returning to eligible Minnesota State Colleges and Universities
system employment. All elections are irrevocable. Prior to
making an election the eligible person shall be covered by the
plan indicated as default coverage under subdivision 3 new text end .

new text begin (c) A purchase of service credit in the Teachers Retirement
Association plan for any period or periods of Minnesota State
Colleges and Universities system employment occurring prior to
the election under paragraph (b) is prohibited.
new text end

Sec. 2.

Minnesota Statutes 2004, section 354B.21,
subdivision 3, is amended to read:

Subd. 3.

Default coverage.

(a) new text begin Prior to making an
election under subdivision 2, or new text end if an eligible person fails to
elect coverage by the plan under subdivision 2 or if the person
fails to make a timely election, the following retirement
coverage applies:

(1) for employees of the board who are employed in faculty
positions in the technical colleges, in the state universities
or in the community colleges, the retirement coverage is by the
plan established by this chapter;

(2) for employees of the board who are employed in faculty
positions in the technical colleges, the retirement coverage is
by the plan established by this chapter unless on June 30, 1997,
the employee was a member of the Teachers Retirement Association
established under chapter 354 and then the retirement coverage
is by the Teachers Retirement Association, or, unless the
employee was a member of a first class city teacher retirement
fund established under chapter 354A on June 30, 1995, and then
the retirement coverage is by the Duluth Teachers Retirement
Fund Association if the person was a member of that plan on June
30, 1995, or the Minneapolis Teachers Retirement Fund
Association if the person was a member of that plan on June 30,
1995, or the St. Paul Teachers Retirement Fund Association if
the person was a member of that plan on June 30, 1995; and

(3) for employees of the board who are employed in eligible
unclassified administrative positions, the retirement coverage
is by the plan established by this chapter.

(b) If an employee fails to correctly certify prior
membership in the Teachers Retirement Association to the
Minnesota State colleges and Universities system, the system
shall not pay interest on employee contributions, employer
contributions, and additional employer contributions to the
Teachers Retirement Association under section 354.52,
subdivision 4.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final
enactment.
new text end