HF 286

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  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; including the individual 
  1.6             retirement account plan in the combined service 
  1.7             annuity portability mechanism; amending Minnesota 
  1.8             Statutes 2002, sections 354B.21, by adding a 
  1.9             subdivision; 356.30, subdivision 3. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 354B.21, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 5a.  [SECOND CHANCE COVERAGE ELECTION; CERTAIN 
  1.14  TECHNICAL COLLEGE FACULTY MEMBERS.] (a) Notwithstanding any 
  1.15  provision of section 354B.21 to the contrary, a former local 
  1.16  school district technical college employee who was transferred 
  1.17  to a faculty position with the Minnesota state colleges and 
  1.18  universities system before May 11, 1995, may elect future 
  1.19  retirement coverage under paragraph (b) and past retirement 
  1.20  coverage under paragraph (c) on or before September 16, 2003. 
  1.21     (b) For service as a Minnesota state colleges and 
  1.22  universities faculty member rendered after the end of the month 
  1.23  in which the election under paragraph (a) is made, the eligible 
  1.24  person under paragraph (a) may select coverage by one of the 
  1.25  following: 
  1.26     (1) the Duluth teachers retirement fund association 
  1.27  governed under chapter 354A if the person was an active member 
  2.1   of that retirement plan immediately before the transfer to the 
  2.2   Minnesota state colleges and universities system; 
  2.3      (2) the individual retirement account plan governed under 
  2.4   chapter 354B; 
  2.5      (3) the Minneapolis teachers retirement fund association 
  2.6   governed under chapter 354A if the person was an active member 
  2.7   of that retirement plan immediately before the transfer to the 
  2.8   Minnesota state colleges and universities system; 
  2.9      (4) the St. Paul teachers retirement fund association 
  2.10  governed under chapter 354A if the person was an active member 
  2.11  of that retirement plan immediately before the transfer to the 
  2.12  Minnesota state colleges and universities system; or 
  2.13     (5) the teachers retirement association governed under 
  2.14  chapter 354 if the person was an active member of that 
  2.15  retirement plan immediately before the transfer to the Minnesota 
  2.16  state colleges and universities system. 
  2.17     (c) If a person elects alternative retirement coverage 
  2.18  under paragraph (b), the person also may elect to receive 
  2.19  allowable service and covered salary credit from the same 
  2.20  retirement plan for any prior Minnesota state colleges and 
  2.21  universities system faculty employment between May 11, 1995, and 
  2.22  the date of the coverage change under paragraph (b).  If the 
  2.23  past retirement coverage election is made, the balance of the 
  2.24  person's account in the individual retirement account plan must 
  2.25  be transferred by the Minnesota state colleges and universities 
  2.26  system chancellor to the applicable retirement plan as of the 
  2.27  end of the month in which the election is made.  The balance, if 
  2.28  any, of the prior service credit purchase payment under section 
  2.29  356.55 or 356.551, whichever applies, is payable by the person 
  2.30  within 30 days of the account balance transfer.  The current or 
  2.31  former employer may pay a portion of the prior service credit 
  2.32  purchase payment amount as the employing unit and the person 
  2.33  agree.  If the payment of the balance of the prior service 
  2.34  credit purchase amount is not made in a timely fashion, the 
  2.35  allowable service credit of the person must be adjusted in 
  2.36  proportion to the relationship that the total amount of the 
  3.1   individual retirement account plan and the prior service credit 
  3.2   purchase payment amount received bears to the total calculated 
  3.3   prior service credit purchase payment amount, but must not 
  3.4   exceed the applicable period of past employment. 
  3.5      (d) The second chance coverage election under paragraph (b) 
  3.6   must be made in writing, and is irrevocable.  The past service 
  3.7   credit election under paragraph (c) must be made at the time of 
  3.8   the second chance coverage election under paragraph (b), at age 
  3.9   55, or at the time of retirement, at the person's option, but 
  3.10  not after the person's termination of employment by the 
  3.11  Minnesota state colleges and universities system, and must be 
  3.12  made in writing, and is irrevocable. 
  3.13     Sec. 2.  Minnesota Statutes 2002, section 356.30, 
  3.14  subdivision 3, is amended to read: 
  3.15     Subd. 3.  [COVERED PLANS.] This section applies to the 
  3.16  following retirement plans: 
  3.17     (1) the general state employees retirement plan of the 
  3.18  Minnesota state retirement system, established under chapter 
  3.19  352; 
  3.20     (2) the correctional state employees retirement plan of the 
  3.21  Minnesota state retirement system, established under chapter 
  3.22  352; 
  3.23     (3) the unclassified employees retirement program, 
  3.24  established under chapter 352D; 
  3.25     (4) the state patrol retirement plan, established under 
  3.26  chapter 352B; 
  3.27     (5) the legislators retirement plan, established under 
  3.28  chapter 3A; 
  3.29     (6) the elective state officers' retirement plan, 
  3.30  established under chapter 352C; 
  3.31     (7) the general employees retirement plan of the public 
  3.32  employees retirement association, established under chapter 353; 
  3.33     (8) the public employees police and fire retirement plan of 
  3.34  the public employees retirement association, established under 
  3.35  chapter 353; 
  3.36     (9) the local government correctional service retirement 
  4.1   plan of the public employees retirement association, established 
  4.2   under chapter 353E; 
  4.3      (10) the teachers retirement association, established under 
  4.4   chapter 354; 
  4.5      (11) the Minneapolis employees retirement fund, established 
  4.6   under chapter 422A; 
  4.7      (12) the Minneapolis teachers retirement fund association, 
  4.8   established under chapter 354A; 
  4.9      (13) the St. Paul teachers retirement fund association, 
  4.10  established under chapter 354A; 
  4.11     (14) the Duluth teachers retirement fund association, 
  4.12  established under chapter 354A; and 
  4.13     (15) the judges' retirement fund, established by sections 
  4.14  490.121 to 490.132; and 
  4.15     (16) the Minnesota state colleges and universities system 
  4.16  individual retirement account plan, established under chapter 
  4.17  354B. 
  4.18     Sec. 3.  [EFFECTIVE DATE.] 
  4.19     Sections 1 and 2 are effective the day following final 
  4.20  enactment.