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SF 3016

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/21/2023 04:11pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to retirement; authorizing eligible employees of Minnesota State Colleges
and Universities who are members of the higher education individual retirement
account plan to elect coverage by the Teachers Retirement Association and receive
retroactive service credit; proposing coding for new law in Minnesota Statutes,
chapter 354B.

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

Section 1.

new text begin [354B.215] TEACHERS RETIREMENT ASSOCIATION COVERAGE
FOR EMPLOYEES WHO DID NOT RECEIVE ELECTION TO TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them, unless the context clearly indicates another
meaning is intended.
new text end

new text begin (b) "Association" means the Teachers Retirement Association.
new text end

new text begin (c) "Board of trustees" means the governing board of Minnesota State.
new text end

new text begin (d) "Executive director" means the executive director of the association.
new text end

new text begin (e) "Plan" means the higher education individual retirement account plan under chapter
354B.
new text end

new text begin (f) "Minnesota State" means the Minnesota State Colleges and Universities.
new text end

new text begin Subd. 2. new text end

new text begin Authority to transfer coverage. new text end

new text begin Notwithstanding any provision of law to the
contrary, an eligible person described in subdivision 3 is authorized to become a member
of the association and receive credit for past service and salary upon making an election
under subdivision 4 and making the required contribution and paying the administrative
fee, if any, under subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

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

new text begin (1) is or was employed by Minnesota State or a community college, technical college,
or Tribal college before consolidation into Minnesota State;
new text end

new text begin (2) has an account in the plan;
new text end

new text begin (3) if first employed by Minnesota State on or after July 1, 1994, had the right to elect
to transfer coverage from the plan to the association under section 354B.211, subdivision
4 or 6, or its predecessor; and
new text end

new text begin (4) satisfies paragraph (b).
new text end

new text begin (b) A person satisfies this paragraph if the person:
new text end

new text begin (1) was first employed by Minnesota State before July 1, 2011, and did not elect to
transfer coverage from the plan to the association; or
new text end

new text begin (2) did not receive the notice required under section 354B.211, subdivision 5; or
new text end

new text begin (3) elected to transfer coverage to the association on an election form signed by the
person, but the transfer did not occur.
new text end

new text begin (c) A person must be considered to have received the notice required under section
354B.211, subdivision 5, if Minnesota State has a receipt, signed by the person, or other
documentation showing that the person has received the retirement plan election form.
new text end

new text begin Subd. 4. new text end

new text begin Eligible person application; information required from Minnesota State. new text end

new text begin (a)
To elect coverage by the association, an eligible person must submit a written application
to the chair of the board of trustees on a form provided by Minnesota State. The application
must include the date or dates as of which the eligible person had the right to elect to transfer
coverage from the plan to the association under section 354B.211, subdivision 4 or 6; the
dates of employment with Minnesota State; and any other relevant information that Minnesota
State may require.
new text end

new text begin (b) Within 60 days after receipt of the application under paragraph (a), Minnesota State
must determine whether the person is an eligible person under subdivision 3 and, if the
person is an eligible person, the chair of the board of trustees must forward to the executive
director:
new text end

new text begin (1) the application;
new text end

new text begin (2) confirmation or modification of the information provided by the eligible person in
the application;
new text end

new text begin (3) salary information;
new text end

new text begin (4) confirmation that Minnesota State does not have documentation indicating that the
person received notice as described under subdivision 3, or confirmation that the person's
previous election to transfer coverage was not implemented; and
new text end

new text begin (5) any other relevant information.
new text end

new text begin Subd. 5. new text end

new text begin Employee contribution required. new text end

new text begin (a) Upon receipt of the application and
information under subdivision 4, the executive director must determine the amount to be
contributed under paragraph (b) and any administrative fee under paragraph (c) and notify
the eligible person of the amounts required and options for making the payments.
new text end

new text begin (b) The employee contribution amount is equal to the excess, if any, of the employee
contributions that the eligible person would have made if covered by the association for the
period of past service and salary for which credit is to be granted under subdivision 6 over
the employee contributions that the eligible person made to the plan for the same period of
past service and salary.
new text end

new text begin (c) The executive director may pass on the costs of calculating the payment amount
required under subdivision 8 to the eligible person as an administrative fee, not to exceed
$500 per calculation.
new text end

new text begin (d) If, upon receipt of the notice regarding the amounts determined under paragraphs
(b) and (c), the eligible employee desires to complete the process of transferring coverage
to the association, the eligible person must make the contribution and pay the administrative
fee, if any, within 60 days after receipt of the notice.
new text end

new text begin Subd. 6. new text end

new text begin Commencement of membership in the association. new text end

new text begin (a) Membership in the
association commences after the date the executive director receives the application and
information under subdivision 4 and the contribution and administrative fee, if any, required
under subdivision 5. Upon membership commencement, the executive director must grant
past service and salary credit for employment with Minnesota State from the first day of
commencing employment as an eligible person under section 354B.211, subdivision 1.
new text end

new text begin (b) Salary and service credit granted under paragraph (a) must be attributable only to
periods of employment and salary from which employee contributions were made by the
eligible person to the plan.
new text end

new text begin (c) The employment commencement date or tenure date, as applicable, must be used
solely for the purpose of granting past service and salary credit in computing the eligible
person's annuity under section 354.44 and must not be used to entitle the eligible person to
retirement under section 354.44, subdivision 6, paragraph (c), clause (3).
new text end

new text begin Subd. 7. new text end

new text begin Transfer of plan account. new text end

new text begin If payment is made under subdivision 5, the value
of the eligible person's account in the plan must be transferred to the association.
new text end

new text begin Subd. 8. new text end

new text begin Payment by Minnesota State. new text end

new text begin (a) Upon receipt of the amount transferred under
subdivision 7, the executive director must determine the amount, if any, that Minnesota
State must pay to the association.
new text end

new text begin (b) The amount required to be paid by Minnesota State is equal to:
new text end

new text begin (1) the amount that would be required under section 356.551, if the past service and
salary credit to be granted under subdivision 5 were a purchase of prior service credit under
section 356.551; minus
new text end

new text begin (2) the amounts received under subdivisions 5 and 7.
new text end

new text begin (c) If the amount calculated under paragraph (b) exceeds zero, the board of trustees must
transmit that amount to the executive director within 60 days following the receipt of the
amount transferred under subdivision 7.
new text end

new text begin Subd. 9. new text end

new text begin Plan account must be intact. new text end

new text begin An eligible person may elect coverage by the
association under subdivision 4 during or after the eligible person's employment with
Minnesota State, as long as the eligible person has not withdrawn or taken a distribution or
rollover distribution of all or any portion of the eligible person's account in the plan.
new text end

new text begin Subd. 10. new text end

new text begin Annual notice to employees. new text end

new text begin Minnesota State must annually provide notice
to all employees summarizing section 354B.215 and offering assistance to any employee
who wishes to elect to transfer coverage from the plan to the association. Minnesota State
must designate personnel at each Minnesota State facility responsible for assisting employees
with the requirements of section 354B.215, including assistance with completing an
application under section 354B.215. The annual notice must identify these personnel and
provide their contact information.
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