HF 2550

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:31pm

A bill for an act
relating to retirement; permitting the repayment of certain member contribution
refunds; authorizing a second chance option to elect Teachers Retirement
Association retirement plan benefit coverage; mandating certain contributions.

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

Section 1. new text begin MSRS-GENERAL; SECOND CHANCE RETIREMENT COVERAGE
AUTHORITY FOR IRAP MEMBER.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapter 352, 353, or
354B, to the contrary, an eligible person described in paragraph (b) is entitled to repay
member contribution refunds taken from the general state employees retirement plan
of the Minnesota State Retirement System and from the general employees retirement
plan of the Public Employees Retirement Association, and to elect retirement coverage
for Minnesota State Colleges and Universities System employment by the Teachers
Retirement Association under Minnesota Statutes, section 354B.21, subdivisions 2 and 3,
despite the time limitation on the election.
new text end

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

new text begin (1) was born on July 19, 1948;
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new text begin (2) was employed by Mankato State University in 1969, with retirement coverage in
the general state employees retirement plan of the Minnesota State Retirement System, for
which a refund of member contributions and interest was taken before 2007;
new text end

new text begin (3) was employed by the city of Austin in the early 1980s, with retirement coverage
in the general employees retirement plan of the Public Employees Retirement Association,
for which a refund of member contributions and interest was taken before 2007;
new text end

new text begin (4) is employed by the Minnesota State Colleges and Universities System at
Riverland Community College; and
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new text begin (5) had the person's employment position upgraded by the Minnesota State Colleges
and Universities System on September 9, 2007, and had retirement coverage transferred
by operation of law to the higher education individual retirement account plan without
receiving appropriate counseling from the Minnesota State Colleges and Universities
System.
new text end

new text begin (c) The refund repayment amount is governed by Minnesota Statutes, sections
352.23 and 353.35.
new text end

new text begin (d) Authority to repay a refund under this section expires on December 31, 2010.
new text end

new text begin (e) An election to change retirement coverage from the Minnesota State Colleges
and Universities System individual retirement account plan to the Teachers Retirement
Association must be made by September 2, 2010, and is retroactive to September 9, 2007.
If a retirement coverage change is elected, the eligible person's account in the individual
retirement account plan must be transferred to the Teachers Retirement Association. If
the member contribution portion of the individual retirement account plan transfer is less
than the member contribution under Minnesota Statutes, section 354.42, subdivision 2,
for the period between September 9, 2007, and the effective date of the coverage election
under this section, plus 8.5 percent interest on any member contribution difference from
June 30, 2008, until the date of payment, the eligible person shall pay that amount in a
lump sum by October 1, 2010. If the amount of the transferred individual retirement
account plan account and any member contribution difference is less than the prior
service credit purchase payment amount under Minnesota Statutes, section 356.551, the
Minnesota State Colleges and Universities System shall pay the difference in a lump sum
by October 15, 2010. Retroactive service credit in the Teachers Retirement Association
must be granted to the eligible person once the transfers and payments required under
this paragraph have been made.
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