HF 1315

Introduction - 83rd Legislature (2003 - 2004)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to retirement; the Minnesota state colleges 
  1.3             and universities system individual retirement account 
  1.4             plan; permitting a revision in prior retirement 
  1.5             benefit coverage elections; amending Minnesota 
  1.6             Statutes 2002, section 354B.21, by adding a 
  1.7             subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 354B.21, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 5a.  [SECOND CHANCE COVERAGE ELECTION; CERTAIN 
  1.12  TECHNICAL COLLEGE FACULTY MEMBERS.] (a) Notwithstanding any 
  1.13  provision of law to the contrary, a Minnesota state college or 
  1.14  university employee who elected coverage under the individual 
  1.15  retirement account plan governed by this chapter and has 
  1.16  accumulated more than three years of service covered by the plan 
  1.17  may elect future retirement coverage under paragraph (b) and 
  1.18  past retirement coverage under paragraph (c). 
  1.19     (b) For service as a Minnesota state colleges and 
  1.20  universities faculty member rendered after the end of the month 
  1.21  in which the election under paragraph (a) is made, the eligible 
  1.22  person under paragraph (a) may select coverage by one of the 
  1.23  following: 
  1.24     (1) the Duluth teachers retirement fund association 
  1.25  governed under chapter 354A if the person was an active member 
  1.26  of that retirement plan immediately before the transfer of the 
  2.1   person to the Minnesota state colleges and universities system; 
  2.2      (2) the Minneapolis teachers retirement fund association 
  2.3   governed under chapter 354A if the person was an active member 
  2.4   of that retirement plan immediately before the transfer of the 
  2.5   person to the Minnesota state colleges and universities system; 
  2.6      (3) the St. Paul teachers retirement fund association 
  2.7   governed under chapter 354A if the person was an active member 
  2.8   of that retirement plan immediately before the transfer of the 
  2.9   person to the Minnesota state colleges and universities system; 
  2.10  or 
  2.11     (4) the teachers retirement association governed under 
  2.12  chapter 354. 
  2.13     (c) If a person elects future retirement coverage under 
  2.14  paragraph (b), the person also may elect to receive allowable 
  2.15  service and covered salary credit from the same retirement plan 
  2.16  for any prior Minnesota state colleges and universities system 
  2.17  faculty employment which was covered under the individual 
  2.18  retirement account plan.  If the past retirement coverage 
  2.19  election is made, the balance of the person's account in the 
  2.20  individual retirement account plan must be transferred by the 
  2.21  Minnesota state colleges and universities system chancellor to 
  2.22  the applicable retirement plan as of the end of the month in 
  2.23  which the election is made.  The balance, if any, of the prior 
  2.24  service credit purchase payment amount required under section 
  2.25  356.55 or 356.551, whichever applies, is payable by the person 
  2.26  within 30 days of the account balance transfer.  If the payment 
  2.27  of the balance of the prior service credit purchase amount is 
  2.28  not made in a timely fashion, the allowable service credit of 
  2.29  the person must be adjusted in proportion to the relationship 
  2.30  that the total amount of the individual retirement account plan 
  2.31  and the prior service credit purchase payment amount received 
  2.32  bears to the total calculated prior service credit purchase 
  2.33  payment amount under section 356.55 or 356.551, whichever 
  2.34  applies, but may not exceed the applicable period of past 
  2.35  employment.  If the balance of the individual retirement account 
  2.36  plan exceeds the amount necessary to purchase prior service 
  3.1   credit for the applicable period of past employment under the 
  3.2   individual retirement plan, the excess shall remain in the 
  3.3   employee's individual retirement account plan until the amount 
  3.4   is withdrawn following the person's separation from service or 
  3.5   retirement. 
  3.6      (d) The second chance coverage election under paragraph (b) 
  3.7   must be made in writing and is irrevocable.  The past service 
  3.8   credit election under paragraph (c) must be made at the time of 
  3.9   the second chance coverage election under paragraph (b) or at 
  3.10  the time of retirement, at the person's option, but not after 
  3.11  the person's termination of employment by the Minnesota state 
  3.12  colleges and universities system, and must be made in writing 
  3.13  and is irrevocable.  
  3.14     Sec. 2.  [EFFECTIVE DATE.] 
  3.15     This act is effective July 1, 2004.