1.1 	A bill for an act
1.2 	relating to retirement; the Minnesota State Colleges and Universities system 
1.3 	individual retirement account plan; permitting a revision in prior retirement 
1.4 	benefit coverage elections;amending Minnesota Statutes 2006, section 354B.21, 
1.5 	by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2006, section 354B.21, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 5a.Second chance coverage election. (a) Notwithstanding any provision 
1.10 	of this section to the contrary, an active member of the plan specified in this chapter 
1.11 	who had prior plan coverage by the Duluth Teachers Retirement Fund Association, the 
1.12 	St. Paul Teachers Retirement Fund Association, the Minneapolis Teachers Retirement 
1.13 	Fund Association, or the Teachers Retirement Association, may elect future retirement 
1.14 	coverage under paragraph (b) and past retirement coverage under paragraph (c) on or 
1.15 	before June 30, 2009.
1.16 	(b) For service as a Minnesota State Colleges and Universities system employee 
1.17 	rendered after the end of the month in which the election under paragraph (a) is made, the 
1.18 	eligible person under paragraph (a) may select coverage by one of the following:
1.19 	(1) the Duluth Teachers Retirement Fund Association governed under chapter 354A 
1.20 	if the person was an active member of that retirement plan before coverage by the plan 
1.21 	specified in this chapter commenced;
1.22 	(2) the St. Paul Teachers Retirement Fund Association governed under chapter 354A 
1.23 	if the person was an active member of that retirement plan before coverage by the plan 
1.24 	specified in this chapter commenced; or
2.1 	(3) the Teachers Retirement Association governed under chapter 354 if the person 
2.2 	was an active member of that retirement plan or of the Minneapolis Teachers Retirement 
2.3 	Fund Association before coverage by the plan specified in this chapter commenced.
2.4 	(c) If a person elects alternative retirement coverage under paragraph (b), the 
2.5 	person also may elect to receive allowable service and covered salary credit from the 
2.6 	same retirement plan for any prior Minnesota State Colleges and Universities system 
2.7 	employment covered by the plan specified in this chapter before the date of the coverage 
2.8 	change under paragraph (b). If the past retirement coverage election is made, the balance 
2.9 	of the person's account in the individual retirement account plan must be transferred by the 
2.10 	Minnesota State Colleges and Universities system chancellor to the applicable retirement 
2.11 	plan as of the end of the month in which the election is made. The balance, if any, of the 
2.12 	prior service credit purchase payment under section 356.551, is payable by the person 
2.13 	within 30 days of the account balance transfer. If permitted under law, the person may also 
2.14 	use assets from the person's supplemental retirement plan under chapter 354C to make 
2.15 	the payment. If the payment of the balance of the prior service credit purchase amount is 
2.16 	not made in a timely fashion, the allowable service credit of the person must be adjusted 
2.17 	in proportion to the relationship that the total amount of the purchase payment amount 
2.18 	received bears to the total calculated prior service credit purchase payment amount, but 
2.19 	must not exceed the applicable period of past employment.
2.20 	(d) The second chance coverage election under paragraph (b) must be made in 
2.21 	writing and is irrevocable. The past service credit election under paragraph (c) must be 
2.22 	made in writing, is irrevocable, and must be made within one year of the election under 
2.23 	paragraph (b), but not after the person's termination of employment by the Minnesota 
2.24 	State Colleges and Universities system.
2.25 	(e) Elections under paragraphs (b) and (c) shall be made on forms provided by the 
2.26 	chief administrative officer of the Teachers Retirement Association or applicable first-class 
2.27 	city teacher fund association. Before October 1, 2008, the Minnesota State Colleges 
2.28 	and Universities system shall notify all eligible individuals under paragraph (a) of the 
2.29 	option to have an election under this subdivision. The chief administrative officers of the 
2.30 	Teachers Retirement Association, the first-class city teacher retirement fund associations, 
2.31 	and the Minnesota State Colleges and Universities system are jointly responsible for 
2.32 	providing educational materials to help members understand the consequences of revising 
2.33 	retirement coverage.

2.34 	EFFECTIVE DATE. This section is effective the day following final enactment.