HF 814

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; teachers retirement 
  1.3             association and first class city teacher retirement 
  1.4             fund associations; authorizing the purchase of service 
  1.5             credit for certain prior military service; amending 
  1.6             Minnesota Statutes 1998, sections 354.53, subdivision 
  1.7             1; and 354A.093; proposing coding for new law in 
  1.8             Minnesota Statutes, chapters 354; and 354A. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 354.53, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [EMPLOYEE AND EMPLOYER CONTRIBUTIONS.] Any 
  1.13  employee given A teacher who is granted a leave of absence to 
  1.14  enter military service and who returns to teaching service upon 
  1.15  discharge from military service as provided in section 192.262, 
  1.16  may obtain allowable and formula service credit for the period 
  1.17  of military service leave but shall may not receive credit for 
  1.18  any voluntary extension of military service at the instance of 
  1.19  the member beyond the initial period of enlistment, induction or 
  1.20  call to active duty.  The member shall may obtain credit by 
  1.21  paying into the fund an employee contribution based upon the 
  1.22  employee contribution rates in effect at the time that the 
  1.23  military service was performed multiplied by the annual salary 
  1.24  rate of the member for the year beginning with the date of the 
  1.25  person's return from military service and multiplied by the 
  1.26  number of years of applicable military service together with, 
  1.27  plus interest thereon at an annual rate of 8.5 percent 
  2.1   compounded annually from the time that the military service was 
  2.2   rendered to the first date of payment.  If the employee 
  2.3   contribution is paid by the teacher, the employer contribution 
  2.4   and additional contribution provided in section 354.42 must be 
  2.5   paid by the employing unit at the employer and employer 
  2.6   additional contribution rates in effect at the time that the 
  2.7   military service was performed, applied to the annual salary 
  2.8   rate of the member for the year beginning with the date of 
  2.9   return from military service, multiplied by the number of years 
  2.10  of applicable military service, plus interest thereupon at an 
  2.11  annual rate of 8.5 percent, compounded annually from the time 
  2.12  that the military service was rendered to the date of payment.  
  2.13  The employer and additional employer contribution equivalent 
  2.14  payment must be made in the manner provided in section 354.52, 
  2.15  subdivision 4. 
  2.16     Sec. 2.  [354.533] [PRIOR OR UNCREDITED INTERIM MILITARY 
  2.17  SERVICE CREDIT PURCHASE.] 
  2.18     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  2.19  teacher who rendered a period of service in the United States 
  2.20  armed forces prior to becoming a teacher as defined in section 
  2.21  354.05, subdivision 2, failed to obtain service credit for a 
  2.22  military leave of absence period in a timely fashion under 
  2.23  section 354.53, and is not entitled to receive a current or 
  2.24  deferred retirement annuity or a disability benefit from a 
  2.25  United States armed forces pension plan for that service, and 
  2.26  has not purchased service credit from any other defined benefit 
  2.27  public employee pension plan for that period of service is 
  2.28  entitled to purchase allowable and formula service credit for 
  2.29  the initial period of enlistment, induction, or call to active 
  2.30  duty without any voluntary extension by paying the payment 
  2.31  amount specified in section 356.55. 
  2.32     Subd. 2.  [APPLICATION AND DOCUMENTATION.] The teacher 
  2.33  desiring to purchase the period of service credit under 
  2.34  subdivision 1 must apply with the executive director to make the 
  2.35  purchase.  The application must include all necessary 
  2.36  documentation of the teacher's qualifications to make the 
  3.1   purchase, signed written permission for the executive director 
  3.2   to request and receive any necessary verification of relevant 
  3.3   facts and applicable eligibility requirements, and any other 
  3.4   relevant information that the executive director may require. 
  3.5      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
  3.6   service credit for the purchase period must be granted by the 
  3.7   teachers retirement association to the purchasing teacher upon 
  3.8   receipt of the purchase payment amount. 
  3.9      Sec. 3.  Minnesota Statutes 1998, section 354A.093, is 
  3.10  amended to read: 
  3.11     354A.093 [LEAVE OF ABSENCE MILITARY SERVICE CREDIT.] 
  3.12     (a) Any teacher in the coordinated program of either the 
  3.13  Minneapolis teachers retirement fund association or the St.  
  3.14  Paul teachers retirement fund association or any teacher in the 
  3.15  new law coordinated program of the Duluth teachers retirement 
  3.16  fund association who is granted a leave of absence to enter 
  3.17  military service and who returns to active teaching service upon 
  3.18  discharge from military service as provided in section 192.262, 
  3.19  shall be is entitled to receive allowable service credit in the 
  3.20  applicable association for all or a portion of the period of 
  3.21  military service, but not for any voluntary extension of 
  3.22  military service beyond the initial period of enlistment, 
  3.23  induction or call to active duty which occurred at the instance 
  3.24  of the teacher. 
  3.25     (b) If the teacher granted the military service leave of 
  3.26  absence makes the employee contribution for a period of military 
  3.27  service leave of absence pursuant to under this section, the 
  3.28  employing unit shall make an employer contribution on behalf of 
  3.29  the teacher to the applicable association for the period of the 
  3.30  military service leave of absence in the manner described in 
  3.31  section 354A.12, subdivision 2a. 
  3.32     (c) The employee and employer contributions shall must be 
  3.33  in an amount equal to the employee and employer contribution 
  3.34  rates in effect for other active members of the association 
  3.35  covered by the same program applied to a salary figure equal to 
  3.36  the teacher's annual salary rate at the date of return from 
  4.1   military service, multiplied by the number of years constituting 
  4.2   the period of the military service leave of absence which the 
  4.3   teacher seeks to purchase.  Payment shall must include interest 
  4.4   on the amount payable pursuant to under this section at the rate 
  4.5   of six 8.5 percent compounded annually from the year the 
  4.6   military service was rendered to the date of payment. 
  4.7      (d) If the payments made by a teacher pursuant to under 
  4.8   this section are less than an amount equal to the applicable 
  4.9   contribution rate applied to a salary figure equal to the 
  4.10  teacher's annual salary rate at the date of return from military 
  4.11  service, multiplied by the number of years constituting the 
  4.12  period of the military service leave of absence, service 
  4.13  credit shall must be prorated.  The prorated service 
  4.14  credit shall must be determined by the ratio between the amount 
  4.15  of the actual payment which was made and the full contribution 
  4.16  amount payable pursuant to under this section. 
  4.17     (e) In order to be entitled to receive service credit under 
  4.18  this section, payment shall must be made within five years from 
  4.19  the date of discharge from military service. 
  4.20     Sec. 4.  [354A.0935] [PRIOR UNCREDITED INTERIM MILITARY 
  4.21  SERVICE CREDIT PURCHASE.] 
  4.22     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  4.23  teacher who rendered a period of service in the United States 
  4.24  armed forces prior to becoming a teacher as defined in section 
  4.25  354A.011, subdivision 27, or failed to obtain service credit for 
  4.26  a military leave of absence period in a timely fashion under 
  4.27  section 354A.093, and is not entitled to receive a current or 
  4.28  deferred retirement annuity or a disability benefit from a 
  4.29  United States armed forces pension plan for that service, and 
  4.30  has not purchased service credit from any other defined benefit 
  4.31  public employee pension plan for that period of service is 
  4.32  entitled to purchase allowable service credit for the initial 
  4.33  period of enlistment, induction, or call to active duty without 
  4.34  any voluntary extension by paying the payment amount specified 
  4.35  in section 356.55. 
  4.36     Subd. 2.  [APPLICATION AND DOCUMENTATION.] The teacher 
  5.1   desiring to purchase the period of service credit under 
  5.2   subdivision 1 must apply with the executive director or 
  5.3   secretary of the respective retirement fund association to make 
  5.4   the purchase.  The application must include all necessary 
  5.5   documentation of the teacher's qualifications to make the 
  5.6   purchase, signed written permission for the executive director 
  5.7   or secretary to request and receive any necessary verification 
  5.8   of relevant facts and applicable eligibility requirements, and 
  5.9   any other relevant information that the executive director or 
  5.10  secretary may require. 
  5.11     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
  5.12  for the purchase period must be granted by the applicable 
  5.13  teachers retirement fund association to the purchasing teacher 
  5.14  upon receipt of the purchase payment amount. 
  5.15     Sec. 5.  [EFFECTIVE DATE.] 
  5.16     Sections 1 to 4 are effective July 1, 1999.