Minnesota Legislature
HF 3673
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to retirement; Duluth Teachers Retirement Fund Association; extending
the rule of 90 benefit tier to post-1989 hires; amending Minnesota Statutes 2006,
sections 354A.011, subdivision 15a; 354A.12, subdivisions 1, 2a; 354A.31,
subdivisions 1, 4a, 6, 7.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 354A.011, subdivision 15a, is amended to
read:
Subd. 15a.
Normal retirement age.
new text begin (a) new text end "Normal retirement age" means age
65 for a person who first became a member of the coordinated program of the St. Paul
Teachers Retirement Fund Association new text begin before July 1, 1989, new text end or new text begin a person who first became a
member of new text end the new law coordinated program of the Duluth Teachers Retirement Fund
Associationnew text begin , regardless of the person's date of first membership, new text end or new text begin a person who first
became a member of new text end a member of deleted text begin adeleted text end new text begin one of the other new text end pension deleted text begin funddeleted text end new text begin plans new text end listed in section
356.30, subdivision 3, before July 1, 1989.
new text begin (b)new text end For a person who first became a member of the coordinated program of the St.
Paul Teachers Retirement Fund Association deleted text begin or the new law coordinated program of the
Duluth Teachers Retirement Fund Associationdeleted text end after June 30, 1989, normal retirement age
means the higher of age 65 or retirement age, as defined in United States Code, title 42,
section 416(l), as amended, but not to exceed age 66.
new text begin (c)new text end For a person who is a member of the basic program of the St. Paul Teachers
Retirement Fund Association or the old law coordinated program of the Duluth Teachers
Retirement Fund Association, normal retirement age means the age at which a teacher
becomes eligible for a normal retirement annuity computed upon meeting the age and
service requirements specified in the applicable provisions of the articles of incorporation
or bylaws of the respective teachers retirement fund association.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 2.
Minnesota Statutes 2006, section 354A.12, subdivision 1, is amended to read:
Subdivision 1.
Employee contributions.
new text begin (a) new text end The contribution required to be paid
by each member of a teachers retirement fund association shall not be less than the
percentage of total salary specified below for the applicable association and program:
| Association and Program |
Percentage of Total Salary |
||
| Duluth Teachers Retirement Association |
|||
| old law and new law coordinated programs |
|||
|
new text begin
before July 1, 2009 new text end |
5.5 percent |
||
|
new text begin
after June 30, 2009 new text end |
new text begin
... percent new text end |
||
| St. Paul Teachers Retirement Association |
|||
| basic program |
8 percent |
||
| coordinated program |
5.5 percent |
||
new text begin (b) new text end Contributions shall be made by deduction from salary and must be remitted
directly to the respective teachers retirement fund association at least once each month.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 3.
Minnesota Statutes 2006, section 354A.12, subdivision 2a, is amended to read:
Subd. 2a.
Employer regular and additional contribution rates.
(a) The
employing units shall make the following employer contributions to teachers retirement
fund associations:
(1) for any coordinated member of a teachers retirement fund association in a city
of the first class, the employing unit shall pay the employer Social Security taxes in
accordance with section 355.46, subdivision 3, clause (b);
(2) for any coordinated member of one of the following teachers retirement fund
associations in a city of the first class, the employing unit shall make a regular employer
contribution to the respective retirement fund association in an amount equal to the
designated percentage of the salary of the coordinated member as provided below:
| Duluth Teachers Retirement Fund Association |
4.50 percent |
|
| St. Paul Teachers Retirement Fund Association |
4.50 percent |
(3) for any basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement
fund in an amount equal to 8.00 percent of the salary of the basic member;
(4) for a basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make an additional employer contribution to the respective fund in
an amount equal to 3.64 percent of the salary of the basic member;
(5) for a coordinated member of a teachers retirement fund association in a city
of the first class, the employing unit shall make an additional employer contribution to
the respective fund in an amount equal to the applicable percentage of the coordinated
member's salary, as provided below:
| Duluth Teachers Retirement Fund Association |
|||
|
new text begin
before July 1, 2009 new text end |
1.29 percent |
||
|
new text begin
after June 30, 2009 new text end |
new text begin
... percent new text end |
||
| St. Paul Teachers Retirement Fund Association |
|||
| July 1, 1993 - June 30, 1994 |
0.50 percent |
||
| July 1, 1994 - June 30, 1995 |
1.50 percent |
||
| July 1, 1997, and thereafter |
3.84 percent |
||
(b) The regular and additional employer contributions must be remitted directly to
the respective teachers retirement fund association at least once each month. Delinquent
amounts are payable with interest under the procedure in subdivision 1a.
(c) Payments of regular and additional employer contributions for school district
or technical college employees who are paid from normal operating funds must be made
from the appropriate fund of the district or technical college.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 4.
Minnesota Statutes 2006, section 354A.31, subdivision 1, is amended to read:
Subdivision 1.
Age and service requirements.
new text begin (a) new text end Any coordinated member or
former coordinated member who has ceased to render teaching service for the school
district in which the teachers retirement fund association exists and who has either attained
the age of at least 55 years with not less than three years of allowable service credit or
received credit for not less than 30 years of allowable service regardless of age, shall be
entitled upon written application to a retirement annuity.
new text begin
(b) Regardless of the person's date of first membership before July 1, 1989, or after
June 30, 1989, a member or former member of the Duluth Teachers Retirement Fund
Association who ceases or has ceased to render teaching service with an employing unit
covered by the association who has credit for at least 30 years of allowable service,
irrespective of age, is entitled, upon filing a written application, to a retirement annuity
under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 5.
Minnesota Statutes 2006, section 354A.31, subdivision 4a, is amended to read:
Subd. 4a.
Computation of the normal coordinated retirement annuity; Duluth
fund.
(a) This subdivision applies to the new law coordinated program of the Duluth
Teachers Retirement Fund Association.
(b) The normal coordinated retirement annuity is an amount equal to a retiring
coordinated member's average salary under section 354A.011, subdivision 7a, multiplied
by the retirement annuity formula percentage.
(c) This paragraph, in conjunction with subdivision 6, applies to a deleted text begin person who first
became adeleted text end member or deleted text begin a member in a pension fund listed in section 356.30, subdivision 3,
before July 1, 1989deleted text end new text begin , regardless of the person's date of first membershipnew text end , unless paragraph
(d), in conjunction with subdivision 7, produces a higher annuity amount, in which case
paragraph (d) applies. The retirement annuity formula percentage for purposes of this
paragraph is the percent specified in section 356.315, subdivision 1, per year for each year
of coordinated service for the first ten years and the percent specified in section 356.315,
subdivision 2, for each subsequent year of coordinated service.
(d) This paragraph applies to a deleted text begin person who is at least 55 years old and who first
becomes adeleted text end member deleted text begin after June 30, 1989, and to any other member who is at least 55 years
old anddeleted text end whose annuity amount, when calculated under this paragraph and in conjunction
with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction
with subdivision 6. The retirement annuity formula percentage for purposes of this
paragraph is the percent specified in section 356.315, subdivision 2, for each year of
coordinated service.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 6.
Minnesota Statutes 2006, section 354A.31, subdivision 6, is amended to read:
Subd. 6.
Reduced retirement annuity.
This subdivision applies only to a person
who first became a coordinated member new text begin of the St. Paul Teachers Retirement Fund
Association new text end or a member of a pension fund listed in section 356.30, subdivision 3, before
July 1, 1989, and whose annuity is higher when calculated using the retirement annuity
formula percentage in subdivision 4, paragraph (c), deleted text begin or subdivision 4a, paragraph (c),deleted text end in
conjunction with this subdivision than when calculated under subdivision 4, paragraph
(d), deleted text begin or subdivision 4a, paragraph (d),deleted text end in conjunction with subdivision 7. new text begin This subdivision
also applies to a member of the Duluth Teachers Retirement Fund Association, regardless
of the person's date of first membership, whose annuity is higher when calculated using
the retirement annuity formula percentage in subdivision 4a, paragraph (c), in conjunction
with this subdivision than when calculated under subdivision 4a, paragraph (d), in
conjunction with subdivision 7.
new text end
(a) Upon retirement at an age before normal retirement age with three years of
service credit or prior to age 62 with at least 30 years of service credit, a coordinated
member shall be entitled to a retirement annuity in an amount equal to the normal
retirement annuity calculated using the retirement annuity formula percentage in
subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), reduced by one-quarter of
one percent for each month that the coordinated member is under normal retirement age if
the coordinated member has less than 30 years of service credit or is under the age of 62 if
the coordinated member has at least 30 years of service credit.
(b) Any coordinated member whose attained age plus credited allowable service
totals 90 years is entitled, upon application, to a retirement annuity in an amount equal to
the normal retirement annuity calculated using the retirement annuity formula percentage
in subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by
reason of early retirement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 7.
Minnesota Statutes 2006, section 354A.31, subdivision 7, is amended to read:
Subd. 7.
Actuarial reduction for early retirement.
This subdivision applies to a
person new text begin who is a member of the St. Paul Teachers Retirement Fund Association, new text end who has
become at least 55 years old and first becomes a coordinated member after June 30, 1989,
and to any other new text begin St. Paul Teachers Retirement Fund Association new text end coordinated member who
has become at least 55 years old and whose annuity is higher when calculated using the
retirement annuity formula percentage in subdivision 4, paragraph (d), deleted text begin and subdivision 4a,
paragraph (d),deleted text end in conjunction with this subdivision than when calculated under subdivision
4, paragraph (c), deleted text begin or subdivision 4a, paragraph (c)deleted text end , in conjunction with subdivision 6. new text begin This
subdivision also applies to a person who is a member of the Duluth Teachers Retirement
Fund Association whose annuity is higher when calculated using the retirement annuity
formula percentage in subdivision 4a, paragraph (d), in conjunction with this subdivision
than when calculated under subdivision 4a, paragraph (c), in conjunction with subdivision
6. new text end A coordinated member who retires before the full benefit age shall be paid the retirement
annuity calculated using the retirement annuity formula percentage in subdivision 4,
paragraph (d), or subdivision 4a, paragraph (d), reduced so that the reduced annuity is the
actuarial equivalent of the annuity that would be payable to the member if the member
deferred receipt of the annuity and the annuity amount were augmented at an annual rate
of three percent compounded annually from the day the annuity begins to accrue until the
normal retirement age if the employee became an employee before July 1, 2006, and at 2.5
percent compounded annually from the day the annuity begins to accrue until the normal
retirement age if the person initially becomes a teacher after June 30, 2006.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end