HF 537

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; teachers retirement 
  1.3             association; authorizing the purchase of service 
  1.4             credit for the uncredited portion of a sabbatical 
  1.5             leave of absence. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [TEACHERS RETIREMENT ASSOCIATION; SABBATICAL 
  1.8   LEAVE OF ABSENCE SERVICE CREDIT PURCHASE.] 
  1.9      (a) An eligible person described in paragraph (b) is 
  1.10  entitled to purchase 0.34 of a year of allowable and formula 
  1.11  service credit from the teachers retirement association. 
  1.12     (b) An eligible person is a person who: 
  1.13     (1) was born on August 7, 1942; 
  1.14     (2) was employed by independent school district No. 11 
  1.15  (Anoka-Hennepin) on August 28, 1970; 
  1.16     (3) was on a sabbatical leave of absence from July 1, 1977, 
  1.17  to June 30, 1978; and 
  1.18     (4) due to inadvertent clerical error by independent school 
  1.19  district No. 11, full contributions for the sabbatical leave 
  1.20  were not made in a timely fashion and 0.654 of a year of service 
  1.21  credit was credited rather than one year of service for the 
  1.22  sabbatical leave. 
  1.23     (c) To purchase the service credit under this section, the 
  1.24  eligible person must pay to the teachers retirement association 
  1.25  the amount of the shortage in member contributions for the 
  2.1   sabbatical leave period plus interest from June 30, 1978, to the 
  2.2   date on which payment is made at an annual compound rate of 8.5 
  2.3   percent.  Authority to make this payment expires on July 1, 
  2.4   2002, or the date of retirement, whichever is earlier. 
  2.5      (d) If the eligible person makes the payment required in 
  2.6   paragraph (c) in a timely manner, independent school district 
  2.7   No. 11 may pay the balance of the full prior service credit 
  2.8   purchase payment amount calculated under Minnesota Statutes, 
  2.9   section 356.55 or 356.551, whichever applies.  If independent 
  2.10  school district No. 11 does not pay the balance within 30 days 
  2.11  of notification by the executive director of the teachers 
  2.12  retirement association of the payment of the member contribution 
  2.13  payment by the eligible person under paragraph (c), the 
  2.14  executive director shall notify the commissioner of finance of 
  2.15  that fact and the commissioner shall deduct from any state aid 
  2.16  payable to independent school district No. 11 that amount, plus 
  2.17  interest on that amount of 1.5 percent per month for each month 
  2.18  or portion of a month that have elapsed from the effective date 
  2.19  of this section. 
  2.20     (e) The eligible person shall provide any relevant 
  2.21  documentation related to eligibility to make this service credit 
  2.22  purchase that is required by the executive director of the 
  2.23  teachers retirement association. 
  2.24     Sec. 2.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective on the day following final enactment.