SF 2606

Introduction - 87th Legislature (2011 - 2012)

Posted on 04/24/2012 09:18 a.m.

A bill for an act
relating to retirement; MnSCU employee retirement coverage options;
adding certain coverage elections for nonfaculty employees of the Minnesota
State Colleges and Universities system; amending Minnesota Statutes 2011
Supplement, section 354B.21, subdivision 2.

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

Section 1.

Minnesota Statutes 2011 Supplement, section 354B.21, subdivision 2, is
amended to read:

Subd. 2.

Coverage; election.

(a) An eligible person employed by the board has
the default coverage specified in subdivision 3, or other subdivisions of this section,
whichever is applicable, and retains that coverage for the period of covered employment
unless a timely election to change that coverage is made as specified in this section.

(b) An eligible person under subdivision 3, paragraph (b) or (c), is authorized to elect
prospective Teachers Retirement Association plan coverage.

(c) An eligible person under subdivision 3, paragraph (d), is authorized to elect
prospective coverage by the plan established by this chapter.

(d) The election under paragraph (a) must be made within one year of commencing
eligible Minnesota State Colleges and Universities system employment. If an election
is not made within the specified election period due to a termination of Minnesota State
Colleges and Universities system employment, an election may be made within 90 days
of returning to eligible Minnesota State Colleges and Universities system employment.
Except as specified in paragraph (f), all elections are irrevocable.

(e) Except as provided in paragraph (f) new text begin or (g) new text end , a purchase of service credit in the
Teachers Retirement Association plan for any period or periods of Minnesota State
Colleges and Universities system employment occurring before the election under this
section is prohibited.

(f) Notwithstanding other paragraphs in this subdivision, a faculty member who
is a member of the individual retirement account plan may elect to transfer retirement
coverage to the teachers retirement plan within one year of the faculty member first
achieving tenure or its equivalent at a Minnesota state college or university.

new text begin (g) Notwithstanding other paragraphs in this subdivision, athletic directors,
athletic coaches, and athletic trainers in intercollegiate sports who complete their initial
appointment after June 30, 2013, may elect to transfer retirement coverage under the
Teachers Retirement Association plan within one year of the director, coach, or trainer
being reappointed.
new text end

deleted text begin The deleted text end new text begin (h) A new text end faculty member new text begin , athletic director, athletic coach, or athletic trainer new text end electing
Teachers Retirement Association coverage under deleted text begin this deleted text end paragraph new text begin (f) or (g) new text end must purchase
service credit in the Teachers Retirement Association for the entire period of time covered
under the individual retirement account plan and the purchase payment amount must be
determined under section 356.551. The Teachers Retirement Association may charge a
deleted text begin faculty member deleted text end new text begin person new text end transferring coverage a reasonable fee to cover the costs associated
with computing the actuarial cost of purchasing service credit and making the transfer.
A deleted text begin faculty member deleted text end new text begin person new text end transferring from the individual retirement account plan to the
Teachers Retirement Association may use any balances to the credit of the deleted text begin faculty member deleted text end
new text begin person new text end in the individual retirement account plan, any balances to the credit of the deleted text begin faculty
member deleted text end new text begin person new text end in the higher education supplemental retirement plan established under
chapter 354C, or any source specified in section 356.441, subdivision 1, to purchase the
service credit in the Teachers Retirement Association. If the total amount of payments
under this paragraph are less than the total purchase payment amount under section
356.551, the payment amounts must be refunded to the applicable source. The retirement
coverage transfer and service credit purchase authority under this paragraph expires with
respect to any Minnesota State Colleges and Universities System faculty new text begin member, athletic
director, athletic coach, or athletic trainer new text end initially hired after June 30, 2014.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 2. new text begin SPECIAL COVERAGE ELECTION AUTHORITY.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, section 354B.21,
subdivision 2, to the contrary, an athletic director, athletic coach, or athletic trainer who
was employed by the Minnesota State Colleges and Universities system before July 1,
2008, and who is a member of the individual retirement account plan under Minnesota
Statutes, chapter 354B, on the effective date of this section may elect prospective
retirement plan coverage by the Teachers Retirement Association and, if electing a
prospective retirement plan coverage change, must purchase past service credit in the
Teachers Retirement Association under Minnesota Statutes, section 354B.21, subdivision
2, paragraph (h).
new text end

new text begin (b) Authority to make the elections and the prior service credit purchase under
paragraph (a) expires on June 30, 2014.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end