HF 1057

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; authorizing purchase of 
  1.3             service credit in the teachers retirement association 
  1.4             and the first class city teachers retirement fund 
  1.5             associations for voluntary service under federal law; 
  1.6             amending Minnesota Statutes 1998, sections 354.53; and 
  1.7             354A.093. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 354.53, is 
  1.10  amended to read: 
  1.11     354.53 [MILITARY SERVICE CREDIT.] 
  1.12     Subdivision 1.  [EMPLOYEE AND EMPLOYER CONTRIBUTIONS.] 
  1.13  Any An employee given a leave of absence to enter military 
  1.14  service or voluntary service under federal law and who returns 
  1.15  to teaching service upon discharge from military service as 
  1.16  provided in section 192.262, or upon completion of voluntary 
  1.17  service, may obtain credit for the period of military that 
  1.18  service but shall may not receive credit for any voluntary 
  1.19  extension of military service at the instance of the member 
  1.20  beyond the initial period of enlistment, induction, or call to 
  1.21  active duty or voluntary service.  The member shall may obtain 
  1.22  credit by paying into the fund an employee contribution based 
  1.23  upon the contribution rates in effect at the time that the 
  1.24  military or voluntary service was performed multiplied by the 
  1.25  annual salary rate of the member for the year beginning with the 
  1.26  date of return from military or voluntary service and the number 
  2.1   of years of military service together with interest thereon on 
  2.2   that contribution at an annual rate of 8.5 percent compounded 
  2.3   annually from the time the military service was rendered to the 
  2.4   first date of payment.  The employer contribution and additional 
  2.5   contribution provided in section 354.42 must be paid by the 
  2.6   employing unit at the rates in effect at the time that the 
  2.7   military or voluntary service was performed, applied to the 
  2.8   annual salary rate of the member for the year beginning with the 
  2.9   date of return from military service, in the manner provided as 
  2.10  specified in section 354.52, subdivision 4. 
  2.11     Subd. 2.  [CALCULATION OF CREDIT.] All Payments into the 
  2.12  fund pursuant to under this section shall be are considered 
  2.13  accumulations after July 1, 1957, for the purpose of computing 
  2.14  any an annuity in accordance with section 354.44, subdivision 2. 
  2.15  If the contributions and interest thereon provided in required 
  2.16  by this section are not paid in full, the member's formula 
  2.17  service credit shall must be calculated by multiplying the 
  2.18  number of years of military or voluntary service by the ratio 
  2.19  obtained by the total amount paid and the maximum amount payable 
  2.20  provided herein under this section. 
  2.21     Subd. 3.  [PAYMENTS.] Payments pursuant to under this 
  2.22  section shall must be made within five years from the date of 
  2.23  discharge from military service or completion of voluntary 
  2.24  service. 
  2.25     Sec. 2.  Minnesota Statutes 1998, section 354A.093, is 
  2.26  amended to read: 
  2.27     354A.093 [MILITARY OR VOLUNTARY SERVICE CREDIT.] 
  2.28     Any A teacher in the coordinated program of either the 
  2.29  Minneapolis teachers retirement fund association or the St.  
  2.30  Paul teachers retirement fund association or any teacher in the 
  2.31  new law coordinated program of the Duluth teachers retirement 
  2.32  fund association who is granted a leave of absence to enter 
  2.33  military service or voluntary service under federal law and who 
  2.34  returns to active teaching service upon discharge from military 
  2.35  service as provided in section 192.262, shall be or upon 
  2.36  completion of voluntary service, is entitled to receive 
  3.1   allowable service credit in the applicable association for all 
  3.2   or a portion of the period of military that service, but not for 
  3.3   any voluntary extension of military service beyond the initial 
  3.4   period of enlistment, induction or, call to active duty which or 
  3.5   voluntary service that occurred at the instance of the teacher.  
  3.6   If the teacher granted the military service leave of absence 
  3.7   makes the employee contribution for a period of military service 
  3.8   leave of absence pursuant to under this section, the employing 
  3.9   unit shall make an employer contribution on behalf of the 
  3.10  teacher to the applicable association for the period of the 
  3.11  military service leave of absence in the manner described as 
  3.12  specified in section 354A.12, subdivision 2a.  The employee and 
  3.13  employer contributions shall must be in an amount equal to the 
  3.14  employee and employer contribution rates in effect for other 
  3.15  active members of the association covered by the same program 
  3.16  applied to a salary figure equal to the teacher's annual salary 
  3.17  rate at the date of return from military or voluntary service, 
  3.18  multiplied by the number of years constituting the period of the 
  3.19  military service leave of absence which the teacher seeks to 
  3.20  purchase.  Payment shall must include interest on the amount 
  3.21  payable pursuant to under this section at the rate of six 
  3.22  percent compounded annually from the year the military service 
  3.23  was rendered to the date of payment.  If the payments made by a 
  3.24  teacher pursuant to under this section are less than an amount 
  3.25  equal to the applicable contribution rate applied to a salary 
  3.26  figure equal to the teacher's annual salary rate at the date of 
  3.27  return from military or voluntary service, multiplied by the 
  3.28  number of years constituting the period of the military service 
  3.29  leave of absence, service credit shall must be prorated.  The 
  3.30  prorated service credit shall must be determined by the ratio 
  3.31  between the amount of the actual payment which was made and the 
  3.32  full contribution amount payable pursuant to under this 
  3.33  section.  In order To be entitled to receive service credit 
  3.34  under this section, payment shall must be made within five years 
  3.35  from the date of discharge from military service or completion 
  3.36  of voluntary service.