HF 671

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/04/2021 03:02pm

A bill for an act
relating to retirement; Teachers Retirement Association and higher education
individual retirement account plan; authorizing an eligible St. Cloud State
University employee to elect Teachers Retirement Association coverage and receive
retroactive coverage.

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

Section 1. new text begin TRA COVERAGE ELECTION FOR CERTAIN ST. CLOUD STATE
UNIVERSITY EMPLOYEE.
new text end

new text begin (a) Notwithstanding any law to the contrary, an eligible person described in paragraph
(b) is authorized to become a coordinated member of the Teachers Retirement Association
and to purchase service and salary credit in the Teachers Retirement Association retroactively
from July 1, 2001, upon making an election under paragraph (c) and upon making all required
payments under paragraph (d) or (e), as applicable.
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on November 30, 1955;
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new text begin (2) was initially employed in a clerical position by St. Cloud State University and was
covered by the general state employees retirement plan of the Minnesota State Retirement
System on November 27, 1989;
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new text begin (3) was hired as an academic adviser by St. Cloud State University on July 1, 2001;
new text end

new text begin (4) was covered by the higher education individual retirement account plan, established
by chapter 354B, on July 1, 2001; and
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new text begin (5) did not elect or was not provided the opportunity to elect coverage by the Teachers
Retirement Association as authorized by Minnesota Statutes 2001, section 354B.21.
new text end

new text begin (c) To be eligible for coverage by the Teachers Retirement Association, an eligible
person must submit a written application electing coverage by the Teachers Retirement
Association to the executive director of the Teachers Retirement Association on a form
provided by the Teachers Retirement Association. The application must include all
documentation of the applicability of this section and any other relevant information that
the executive director may require. Membership in the Teachers Retirement Association
commences after the date of the retirement coverage election under this section and past
salary and service credit is granted for past Minnesota State Colleges and Universities system
employment from July 1, 2001, until the executive director receives the written application
specified in this paragraph and the payments specified in paragraph (d) or (e), as applicable.
The authority granted by this section is void if the eligible person terminates from Minnesota
state system employment prior to receipt by the executive director of the Teachers Retirement
Association of the application specified in this paragraph and the amounts specified in
paragraph (d) or (e), as applicable. Coverage by the Teachers Retirement Association is in
lieu of coverage by the higher education individual retirement account plan.
new text end

new text begin (d) Subject to paragraph (e), if the eligible person elects retirement coverage by the
Teachers Retirement Association under paragraph (c), the eligible person shall execute
documents necessary to transfer the entirety of the person's account in the individual
retirement account plan to the Teachers Retirement Association and, to the extent that the
transferred account balance is less than the amount calculated under Minnesota Statutes,
section 356.551, shall pay the remaining amount within 30 days of the retirement coverage
election.
new text end

new text begin (e) The executive director of the Teachers Retirement Association shall not be required
to accept the transfer of the eligible person's account in the individual retirement account
plan if the executive director determines that the transfer is not from a pre-tax source, will
cause the account balance to be taxable to the member, or will jeopardize the tax-qualified
status of the Teachers Retirement Association. If the executive director rejects the transfer,
the eligible person shall pay the amount calculated under Minnesota Statutes, section 356.551,
from other sources acceptable to the executive director within a year of the retirement
coverage election.
new text end

new text begin (f) The authority to make a retirement coverage election under this section expires one
year from the effective date of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end