HF 4109

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; the Minnesota State Colleges and Universities system
individual retirement account plan; permitting a revision in prior retirement
benefit coverage elections; amending Minnesota Statutes 2006, section 354B.21,
by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 354B.21, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Second chance coverage election. new text end

new text begin (a) Notwithstanding any provision
of this section to the contrary, an active member of the plan specified in this chapter
who had prior plan coverage by the Duluth Teachers Retirement Fund Association, the
St. Paul Teachers Retirement Fund Association, the Minneapolis Teachers Retirement
Fund Association, or the Teachers Retirement Association, may elect future retirement
coverage under paragraph (b) and past retirement coverage under paragraph (c) on or
before June 30, 2009.
new text end

new text begin (b) For service as a Minnesota State Colleges and Universities system employee
rendered after the end of the month in which the election under paragraph (a) is made, the
eligible person under paragraph (a) may select coverage by one of the following:
new text end

new text begin (1) the Duluth Teachers Retirement Fund Association governed under chapter 354A
if the person was an active member of that retirement plan before coverage by the plan
specified in this chapter commenced;
new text end

new text begin (2) the St. Paul Teachers Retirement Fund Association governed under chapter 354A
if the person was an active member of that retirement plan before coverage by the plan
specified in this chapter commenced; or
new text end

new text begin (3) the Teachers Retirement Association governed under chapter 354 if the person
was an active member of that retirement plan or of the Minneapolis Teachers Retirement
Fund Association before coverage by the plan specified in this chapter commenced.
new text end

new text begin (c) If a person elects alternative retirement coverage under paragraph (b), the
person also may elect to receive allowable service and covered salary credit from the
same retirement plan for any prior Minnesota State Colleges and Universities system
employment covered by the plan specified in this chapter before the date of the coverage
change under paragraph (b). If the past retirement coverage election is made, the balance
of the person's account in the individual retirement account plan must be transferred by the
Minnesota State Colleges and Universities system chancellor to the applicable retirement
plan as of the end of the month in which the election is made. The balance, if any, of the
prior service credit purchase payment under section 356.551, is payable by the person
within 30 days of the account balance transfer. If permitted under law, the person may also
use assets from the person's supplemental retirement plan under chapter 354C to make
the payment. If the payment of the balance of the prior service credit purchase amount is
not made in a timely fashion, the allowable service credit of the person must be adjusted
in proportion to the relationship that the total amount of the purchase payment amount
received bears to the total calculated prior service credit purchase payment amount, but
must not exceed the applicable period of past employment.
new text end

new text begin (d) The second chance coverage election under paragraph (b) must be made in
writing and is irrevocable. The past service credit election under paragraph (c) must be
made in writing, is irrevocable, and must be made within one year of the election under
paragraph (b), but not after the person's termination of employment by the Minnesota
State Colleges and Universities system.
new text end

new text begin (e) Elections under paragraphs (b) and (c) shall be made on forms provided by the
chief administrative officer of the Teachers Retirement Association or applicable first-class
city teacher fund association. Before October 1, 2008, the Minnesota State Colleges
and Universities system shall notify all eligible individuals under paragraph (a) of the
option to have an election under this subdivision. The chief administrative officers of the
Teachers Retirement Association, the first-class city teacher retirement fund associations,
and the Minnesota State Colleges and Universities system are jointly responsible for
providing educational materials to help members understand the consequences of revising
retirement coverage.
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