1.1 	A bill for an act
1.2 	relating to retirement; allowing certain members to elect Teachers Retirement 
1.3 	Association membership and purchase service credit;amending Minnesota 
1.4 	Statutes 2006, section 354B.21, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 354B.21, subdivision 2, is amended to read:
1.7 		Subd. 2.Coverage; election. (a) For eligible persons who were employed by 
1.8 	the former state university system or the former community college system before May 
1.9 	1, 1995, the person has the retirement coverage that the person had for employment 
1.10 	immediately before May 1, 1995.
1.11 	(b) For all other eligible persons, unless otherwise specified in this section, the 
1.12 	eligible person is authorized to elect prospective Teachers Retirement Association plan 
1.13 	coverage rather than coverage by the plan established by this chapter. The election of 
1.14 	prospective Teachers Retirement Association plan coverage shall be made within one year 
1.15 	of commencing eligible Minnesota State Colleges and Universities system employment. 
1.16 	If an election is not made within the specified election period due to a termination of 
1.17 	Minnesota State Colleges and Universities system employment, an election may be made 
1.18 	within 90 days of returning to eligible Minnesota State Colleges and Universities system 
1.19 	employment. All elections are irrevocable. Prior to making an election the eligible person 
1.20 	shall be covered by the plan indicated as default coverage under subdivision 3.
1.21 	(c) A purchase of service credit in the Teachers Retirement Association plan for 
1.22 	any period or periods of Minnesota State Colleges and Universities system employment 
1.23 	occurring prior to the election under paragraph (b) is prohibited.
2.1 	(d) Notwithstanding paragraphs (b) and (c) above, a faculty member who is a 
2.2 	member of the individual retirement account plan may elect coverage under the teachers 
2.3 	retirement plan within one year of achieving tenure or its equivalent at a Minnesota state 
2.4 	college or university. The faculty member electing Teachers Retirement Association 
2.5 	coverage must purchase service credit in the Teachers Retirement Association for the 
2.6 	period of time covered under the individual retirement account plan at full actuarial 
2.7 	cost, as determined by the Teachers Retirement Association. The Teachers Retirement 
2.8 	Association may charge a faculty member seeking to change coverage a reasonable fee 
2.9 	to cover the costs associated with computing the actuarial cost of purchasing service 
2.10 	credit and making the transfer. A faculty member changing coverage from the individual 
2.11 	retirement account plan to the Teachers Retirement Association may use savings in the 
2.12 	member's individual retirement account plan to purchase the service credit in the Teachers 
2.13 	Retirement Association plan.