HF 1179

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 military service, out-of-state 
  1.6             teaching service, and maternity leaves and maternity 
  1.7             breaks-in-service; amending Minnesota Statutes 1998, 
  1.8             section 356.55, subdivisions 1 and 6; proposing coding 
  1.9             for new law in Minnesota Statutes, chapters 354; and 
  1.10            354A. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [354.533] [PRIOR OR UNCREDITED MILITARY SERVICE 
  1.13  CREDIT PURCHASE.] 
  1.14     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  1.15  teacher who performed service in the United States armed forces 
  1.16  before becoming a teacher as defined in section 354.05, 
  1.17  subdivision 2, or who failed to obtain service credit for a 
  1.18  military leave of absence under the provisions of section 
  1.19  354.53, is entitled to purchase allowable and formula service 
  1.20  credit for the initial period of enlistment, induction, or call 
  1.21  to active duty without any voluntary extension by making payment 
  1.22  under section 356.55 provided the teacher is not entitled to 
  1.23  receive a current or deferred retirement annuity from a United 
  1.24  States armed forces pension plan and has not purchased service 
  1.25  credit from any other defined benefit public employee pension 
  1.26  plan for the same period of service. 
  1.27     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  1.28  desires to purchase service credit under subdivision 1 must 
  2.1   apply with the executive director to make the purchase.  The 
  2.2   application must include all necessary documentation of the 
  2.3   teacher's qualifications to make the purchase, signed written 
  2.4   permission to allow the executive director to request and 
  2.5   receive necessary verification of applicable facts and 
  2.6   eligibility requirements, and any other relevant information 
  2.7   that the executive director may require. 
  2.8      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
  2.9   service credit for the purchase period must be granted by the 
  2.10  teachers retirement association to the purchasing teacher upon 
  2.11  receipt of the purchase payment amount. 
  2.12     Sec. 2.  [354.534] [PRIOR OUT-OF-STATE TEACHING SERVICE 
  2.13  CREDIT PURCHASE.] 
  2.14     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  2.15  teacher who has at least three years of allowable service credit 
  2.16  with the teachers retirement association is entitled to purchase 
  2.17  up to ten years of allowable and formula service credit for 
  2.18  out-of-state teaching service by making payment under section 
  2.19  356.55, provided the out-of-state teaching service was performed 
  2.20  for an educational institution established and operated by 
  2.21  another state, governmental subdivision of another state, or the 
  2.22  federal government and the teacher is not entitled to receive a 
  2.23  current or deferred age and service retirement annuity or 
  2.24  disability benefit and has not purchased service credit from 
  2.25  another defined benefit public employee pension plan for that 
  2.26  out-of-state teaching service. 
  2.27     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  2.28  desires to purchase service credit under subdivision 1 must 
  2.29  apply with the executive director to make the purchase.  The 
  2.30  application must include all necessary documentation of the 
  2.31  teacher's qualifications to make the purchase, signed written 
  2.32  permission to allow the executive director to request and 
  2.33  receive necessary verification of applicable facts and 
  2.34  eligibility requirements, and any other relevant information 
  2.35  that the executive director may require. 
  2.36     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
  3.1   service credit for the purchase period must be granted by the 
  3.2   teachers retirement association to the purchasing teacher on 
  3.3   receipt of the purchase payment amount. 
  3.4      Sec. 3.  [354.535] [MATERNITY LEAVE OF ABSENCE AND 
  3.5   BREAKS-IN-SERVICE PURCHASES.] 
  3.6      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  3.7   teacher who was granted a maternity leave of absence by a school 
  3.8   district or other employing unit covered by the teachers 
  3.9   retirement association for which the teacher did not previously 
  3.10  receive allowable and formula service credit, or had maternity 
  3.11  breaks-in-teaching-service for which the teacher did not receive 
  3.12  or purchase service credit from another defined benefit public 
  3.13  employee pension plan is entitled to purchase one year of 
  3.14  allowable and formula service credit for each applicable 
  3.15  maternity leave of absence or applicable maternity 
  3.16  break-in-teaching-service period by making payment under section 
  3.17  356.55. 
  3.18     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  3.19  desires to purchase service credit under subdivision 1 must 
  3.20  apply with the executive director to make the purchase.  The 
  3.21  application must include all necessary documentation of the 
  3.22  teacher's qualifications to make the purchase, signed written 
  3.23  permission to allow the executive director to request and 
  3.24  receive necessary verification of applicable facts and 
  3.25  eligibility requirements, and any other relevant information 
  3.26  that the executive director may require. 
  3.27     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
  3.28  service credit for the purchase period must be granted by the 
  3.29  teachers retirement association to the purchasing teacher on 
  3.30  receipt of the purchase payment amount. 
  3.31     Sec. 4.  [354A.097] [PRIOR UNCREDITED MILITARY SERVICE 
  3.32  CREDIT PURCHASE.] 
  3.33     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  3.34  teacher who performed service in the United States armed forces 
  3.35  before becoming a teacher as defined in section 354A.011, 
  3.36  subdivision 27, or who failed to obtain service credit for a 
  4.1   military leave of absence period under section 354A.093, is 
  4.2   entitled to purchase allowable service credit for the initial 
  4.3   period of enlistment, induction, or call to active duty without 
  4.4   any voluntary extension by making payment under section 356.55 
  4.5   provided the teacher is not entitled to receive a current or 
  4.6   deferred retirement annuity from a United States armed forces 
  4.7   pension plan and has not purchased service credit from another 
  4.8   defined benefit public employee pension plan for the same period 
  4.9   of service. 
  4.10     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  4.11  desires to purchase service credit under subdivision 1 must 
  4.12  apply with the executive director or secretary of the respective 
  4.13  teachers retirement fund association to make the purchase.  The 
  4.14  application must include all necessary documentation of the 
  4.15  teacher's qualifications to make the purchase, signed written 
  4.16  permission to allow the executive director or secretary to 
  4.17  request and receive necessary verification of applicable facts 
  4.18  and eligibility requirements, and any other relevant information 
  4.19  that the executive director or secretary may require. 
  4.20     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
  4.21  for the purchase period must be granted by the applicable 
  4.22  teachers retirement fund association to the purchasing teacher 
  4.23  on receipt of the purchase payment amount. 
  4.24     Sec. 5.  [354A.098] [PRIOR OUT-OF-STATE TEACHING SERVICE 
  4.25  CREDIT PURCHASE.] 
  4.26     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  4.27  teacher who has at least three years of allowable service credit 
  4.28  with one of the retirement fund associations under this chapter 
  4.29  and who rendered out-of-state teaching service for an 
  4.30  educational institution established and operated by another 
  4.31  state, governmental subdivision of another state, or the federal 
  4.32  government, is entitled to purchase up to ten years of allowable 
  4.33  service credit for that out-of-state service by making payment 
  4.34  under section 356.55, provided the teacher is not entitled to 
  4.35  receive a current or deferred age and service retirement annuity 
  4.36  or disability benefit and has not purchased service credit from 
  5.1   another defined benefit public employee pension plan for that 
  5.2   out-of-state teaching service. 
  5.3      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  5.4   desires to purchase service credit under subdivision 1 must 
  5.5   apply with the executive director or secretary of the respective 
  5.6   teachers retirement fund association to make the purchase.  The 
  5.7   application must include all necessary documentation of the 
  5.8   teachers's qualifications to make the purchase, signed written 
  5.9   permission to allow the executive director or secretary to 
  5.10  request and receive necessary verification of applicable facts 
  5.11  and eligibility requirements, and any other relevant information 
  5.12  that the executive director or secretary may require. 
  5.13     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
  5.14  for the purchase period must be granted by the applicable 
  5.15  teachers retirement fund association to the purchasing teacher 
  5.16  on receipt of the purchase payment amount. 
  5.17     Sec. 6.  [354A.099] [MATERNITY BREAK-IN-SERVICE OR LEAVE 
  5.18  SERVICE CREDIT PURCHASE.] 
  5.19     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
  5.20  teacher who was granted a maternity leave of absence by a school 
  5.21  district or other employing unit covered by the teachers 
  5.22  retirement association for which the teacher did not previously 
  5.23  receive allowable service credit or had maternity 
  5.24  breaks-in-teaching-service for which the teacher did not receive 
  5.25  or purchase service credit from another defined benefit public 
  5.26  employee pension plan is entitled to purchase one year of 
  5.27  allowable service credit for each applicable maternity leave of 
  5.28  absence or applicable maternity break-in-teaching-service period 
  5.29  by making payment under section 356.55. 
  5.30     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
  5.31  desires to purchase service credit under subdivision 1 must 
  5.32  apply with the executive director or secretary of the respective 
  5.33  retirement fund association to make the purchase.  The 
  5.34  application must include all necessary documentation of the 
  5.35  teacher's qualifications to make the purchase, signed written 
  5.36  permission to allow the executive director or secretary to 
  6.1   request and receive any necessary verification of applicable 
  6.2   facts and eligibility requirements, and any other relevant 
  6.3   information that the executive director or secretary may require.
  6.4      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
  6.5   for the purchase period must be granted by the applicable 
  6.6   teachers retirement fund association to the purchasing teacher 
  6.7   on receipt of the purchase payment amount. 
  6.8      Sec. 7.  Minnesota Statutes 1998, section 356.55, 
  6.9   subdivision 1, is amended to read: 
  6.10     Subdivision 1.  [APPLICATION.] Unless the prior service 
  6.11  credit purchase authorization special law or general statute 
  6.12  provision explicitly specifies a different purchase payment 
  6.13  amount determination procedure, this section governs the 
  6.14  determination of the prior service credit purchase payment 
  6.15  amount of any prior service credit purchase.  The purchase 
  6.16  payment amount determination procedure must recognize any 
  6.17  service credit accrued to the purchaser in a pension plan listed 
  6.18  in section 356.30, subdivision 3.  Any service credit in a 
  6.19  Minnesota defined benefit public employee pension plan available 
  6.20  to be reinstated by the purchaser through the repayment of a 
  6.21  refund of member or employee contributions previously received 
  6.22  must be repaid in full before any purchase of prior service 
  6.23  credit payment is made under this section. 
  6.24     Sec. 8.  Minnesota Statutes 1998, section 356.55, 
  6.25  subdivision 6, is amended to read: 
  6.26     Subd. 6.  [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 
  6.27  As part of the regular data reporting to the consulting actuary 
  6.28  retained by the legislative commission on pensions and 
  6.29  retirement annually, the chief administrative officer of each 
  6.30  public pension plan that has accepted a prior service credit 
  6.31  purchase payment under this section shall report for any 
  6.32  purchase, the purchaser, the purchaser's employer, the age of 
  6.33  the purchaser, the period of the purchase, the purchaser's 
  6.34  prepurchase accrued service credit, the purchaser's postpurchase 
  6.35  accrued service credit, the purchaser's prior service credit 
  6.36  payment, the prior service credit payment made by the 
  7.1   purchaser's employer, and the amount of the additional benefit 
  7.2   or annuity purchased. 
  7.3      (b) As part of a supplemental report to the regular annual 
  7.4   actuarial valuation for the applicable public pension plan 
  7.5   prepared by the consulting actuary retained by the legislative 
  7.6   commission on pensions and retirement, there must be an exhibit 
  7.7   comparing a comparison for each purchase showing the total prior 
  7.8   service credit payment received from all sources and the 
  7.9   increased public pension plan actuarial accrued liability 
  7.10  resulting from each purchase. 
  7.11     Sec. 9.  [INSTRUCTION TO REVISOR.] 
  7.12     The revisor of statutes shall replace the current headnote 
  7.13  for Minnesota Statutes, section 354.53, with the headnote 
  7.14  "CREDIT FOR MILITARY SERVICE LEAVE OF ABSENCE." 
  7.15     Sec. 10.  [EFFECTIVE DATE.] 
  7.16     Sections 1 to 9 are effective May 16, 1999.