HF 1856

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minneapolis Teachers 
  1.3             Retirement Fund Association; authorizing the purchase 
  1.4             of service credit for four years of an extended leave 
  1.5             of absence wrongly reported by the school district to 
  1.6             the retirement plan as a resignation. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [SERVICE CREDIT AUTHORIZATION; MTRFA MEMBER 
  1.9   WITH MISREPORTED LEAVE.] 
  1.10     (a) An eligible person specified in paragraph (b) is 
  1.11  entitled to purchase four years of allowable service credit from 
  1.12  the Minneapolis Teachers Retirement Fund Association for an 
  1.13  uncredited leave period from June 1999 to June 2003 that was 
  1.14  misreported by Special School District No. 1, Minneapolis.  
  1.15     (b) An eligible person is a person who:  
  1.16     (1) was born on November 30, 1955; 
  1.17     (2) was a teacher employed by Special School District No. 
  1.18  1, Minneapolis, during the 1998-1999 school year; 
  1.19     (3) took an extended leave of absence from the Minneapolis 
  1.20  public schools in June 1999, which was misreported to the 
  1.21  Minneapolis Teachers Retirement Fund Association as a 
  1.22  resignation from teaching; and 
  1.23     (4) discovered the error upon return from the leave in 
  1.24  spring 2003. 
  1.25     (c) The prior service credit purchase payment amount must 
  1.26  be determined under Minnesota Statutes, section 356.55 or 
  2.1   356.551, whichever applies.  
  2.2      (d) The member portion of the prior service credit 
  2.3   procedure is the full year equivalent member contribution amount 
  2.4   paid during the 1998-1999 school year multiplied by four, plus 
  2.5   annual compound interest on the total amount at the rate of 8.5 
  2.6   percent per annum from July 1, 2001, to the date of the purchase 
  2.7   payment. 
  2.8      (e) If the member pays the member portion of the prior 
  2.9   service credit purchase payment under paragraph (d), Special 
  2.10  School District No. 1, Minneapolis, may pay the balance of the 
  2.11  prior service credit purchase payment not paid by the eligible 
  2.12  member within 30 days of notification of the member payment by 
  2.13  the executive director of the Minneapolis Teachers Retirement 
  2.14  Fund Association.  If the school district does not make the 
  2.15  payment within 60 days of the specified date, the executive 
  2.16  director of the Minneapolis Teachers Retirement Fund Association 
  2.17  shall notify the commissioner of finance of that fact and the 
  2.18  commissioner of finance shall deduct the required amount, plus 
  2.19  interest from the original payment date, from any amount 
  2.20  otherwise payable to the school district by the state and shall 
  2.21  pay that amount to the Minneapolis Teachers Retirement Fund 
  2.22  Association.  
  2.23     Sec. 2.  [EFFECTIVE DATE.] 
  2.24     Section 1 is effective the day following final enactment.