HF 488

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; authorizing purchase of 
  1.3             service credit in the Minnesota state retirement 
  1.4             system, the teachers retirement association, and 
  1.5             first-class city teachers retirement fund associations 
  1.6             for voluntary service under federal law; amending 
  1.7             Minnesota Statutes 1996, sections 352.27; 354.53; and 
  1.8             354A.093. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 352.27, is 
  1.11  amended to read: 
  1.12     352.27 [CREDIT FOR MILITARY OR VOLUNTARY SERVICE.] 
  1.13     Any employee given a leave of absence to enter military 
  1.14  service or voluntary service under federal law who returns to 
  1.15  state service upon discharge from military service as provided 
  1.16  in section 192.262, or upon completion of voluntary service, may 
  1.17  obtain credit for the period of military that service.  The 
  1.18  employee is not entitled to credit for any voluntary extension 
  1.19  of military service at the instance of the employee beyond the 
  1.20  initial period of enlistment, induction, or call to active duty, 
  1.21  or voluntary service, nor to credit for any period of service 
  1.22  following a voluntary return to military service.  An employee 
  1.23  may obtain credit by paying into the fund an employee 
  1.24  contribution based upon the salary received at the date of 
  1.25  return from military or voluntary service.  The amount of this 
  1.26  contribution must be the applicable amounts required in section 
  1.27  352.04, subdivision 2, plus interest at an annual rate of 8.5 
  2.1   percent compounded annually.  The matching employer contribution 
  2.2   and additional contribution provided in section 352.04 must be 
  2.3   paid by the department employing the employee upon return to 
  2.4   state service from funds available to the department at the time 
  2.5   and in the manner provided in section 352.04.  
  2.6      Sec. 2.  Minnesota Statutes 1996, section 354.53, is 
  2.7   amended to read: 
  2.8      354.53 [MILITARY OR VOLUNTARY SERVICE CREDIT.] 
  2.9      Subdivision 1.  [EMPLOYEE AND EMPLOYER CONTRIBUTIONS.] Any 
  2.10  employee given a leave of absence to enter military service or 
  2.11  voluntary service under federal law and who returns to teaching 
  2.12  service upon discharge from military service as provided in 
  2.13  section 192.262, shall or upon completion of voluntary service, 
  2.14  may obtain credit for the period of military that service but 
  2.15  shall may not receive credit for any voluntary extension of 
  2.16  military service at the instance of the member beyond the 
  2.17  initial period of enlistment, induction, or call to active duty, 
  2.18  or voluntary service.  The member shall may obtain credit by 
  2.19  paying into the fund an employee contribution based upon the 
  2.20  salary of the member at the date of return from military 
  2.21  service.  The amount of this contribution shall must be as 
  2.22  follows: 
  2.23         Period          Basic Member     Coordinated Member
  2.24       July 1, 1973       8 percent          4 percent
  2.25          thru
  2.26       June 30, 1979
  2.27       July 1, 1979
  2.28          and             8.5 percent        4.5 percent
  2.29       thereafter
  2.30     The contributions specified in this subdivision shall must 
  2.31  be multiplied by the number of years of military or voluntary 
  2.32  service together with plus interest thereon at an annual rate of 
  2.33  8.5 percent compounded annually from the time the military 
  2.34  service was rendered to the first date of payment.  The employer 
  2.35  contribution and additional contribution provided in section 
  2.36  354.42 shall must be paid by the unit in the manner provided as 
  3.1   specified in section 354.52, subdivision 4. 
  3.2      Subd. 2.  [CALCULATION OF CREDIT.] All Payments into the 
  3.3   fund pursuant to under this section shall be are considered 
  3.4   accumulations after July 1, 1957, for the purpose of computing 
  3.5   any an annuity in accordance with section 354.44, subdivision 2. 
  3.6   If the contributions and interest thereon provided required by 
  3.7   in this section are not paid in full, the member's formula 
  3.8   service credit shall must be calculated by multiplying the 
  3.9   number of years of military or voluntary service by the ratio 
  3.10  obtained by the total amount paid and the maximum amount payable 
  3.11  provided herein under this section. 
  3.12     Subd. 3.  [PAYMENTS.] Payments pursuant to under this 
  3.13  section shall must be made within five years from the date of 
  3.14  discharge from military service or completion of voluntary 
  3.15  service. 
  3.16     Sec. 3.  Minnesota Statutes 1996, section 354A.093, is 
  3.17  amended to read: 
  3.18     354A.093 [MILITARY OR VOLUNTARY SERVICE CREDIT.] 
  3.19     Any A teacher in the coordinated program of either the 
  3.20  Minneapolis teachers retirement fund association or the St.  
  3.21  Paul teachers retirement fund association or any a teacher in 
  3.22  the new law coordinated program of the Duluth teachers 
  3.23  retirement fund association who is granted a leave of absence to 
  3.24  enter military service or voluntary service under federal law 
  3.25  and who returns to active teaching service upon discharge from 
  3.26  military service as provided in section 192.262, shall be or 
  3.27  upon completion of voluntary service, is entitled to receive 
  3.28  allowable service credit in the applicable association for all 
  3.29  or a portion of the period of military that service, but not for 
  3.30  any voluntary extension of military service beyond the initial 
  3.31  period of enlistment, induction, or call to active duty which, 
  3.32  or voluntary service that occurred at the instance of the 
  3.33  teacher.  If the teacher granted the military service leave of 
  3.34  absence makes the employee contribution for a period of military 
  3.35  service leave of absence pursuant to under this section, the 
  3.36  employing unit shall must make an employer contribution on 
  4.1   behalf of the teacher to the applicable association for the 
  4.2   period of the military service leave of absence in the manner 
  4.3   described as specified in section 354A.12, subdivision 2a.  The 
  4.4   employee and employer contributions shall must be in an amount 
  4.5   equal to the employee and employer contribution rates in effect 
  4.6   for other active members of the association covered by the same 
  4.7   program applied to a salary figure equal to the teacher's annual 
  4.8   salary rate at the date of return from military or voluntary 
  4.9   service, multiplied by the number of years constituting the 
  4.10  period of the military service leave of absence which the 
  4.11  teacher seeks to purchase.  Payment shall must include interest 
  4.12  on the amount payable pursuant to under this section at the rate 
  4.13  of six percent compounded annually from the year the military 
  4.14  service was rendered to the date of payment.  If the payments 
  4.15  made by a teacher pursuant to under this section are less than 
  4.16  an amount equal to the applicable contribution rate applied to a 
  4.17  salary figure equal to the teacher's annual salary rate at the 
  4.18  date of return from military service, multiplied by the number 
  4.19  of years constituting the period of the military service leave 
  4.20  of absence, service credit shall must be prorated.  The prorated 
  4.21  service credit shall must be determined by the ratio between the 
  4.22  amount of the actual payment which that was made and the full 
  4.23  contribution amount payable pursuant to under this section.  In 
  4.24  order to be entitled to receive service credit under this 
  4.25  section, payment shall must be made within five years from the 
  4.26  date of discharge from military or voluntary service.