HF 1272

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minneapolis teachers 
  1.3             retirement fund association; authorizing purchase of 
  1.4             prior service by former Minneapolis teacher. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [MINNEAPOLIS TEACHERS RETIREMENT FUND 
  1.7   ASSOCIATION:  PURCHASE OF PRIOR SERVICE CREDIT.] 
  1.8      Subdivision 1.  [ELIGIBILITY; EX-MINNEAPOLIS TEACHER.] (a) 
  1.9   Notwithstanding Laws 1992, chapter 598, article 6, section 19, 
  1.10  an eligible person who: 
  1.11     (1) was born on January 4, 1930; 
  1.12     (2) was employed as a typing teacher in the adult education 
  1.13  program at Bryant junior high school in Minneapolis in September 
  1.14  1969; 
  1.15     (3) was employed as a reserve teacher in special school 
  1.16  district No. 1 from January 1, 1970, until May 30, 1970; and 
  1.17     (4) was employed from June 1, 1970 to 1978, as a business 
  1.18  education teacher at the occupational skills training center in 
  1.19  Minneapolis; 
  1.20  may purchase allowable service credit in the basic program of 
  1.21  the Minneapolis teachers retirement fund association for the 
  1.22  period described in paragraph (b) by paying the amount specified 
  1.23  in subdivision 3. 
  1.24     (b) The service credit purchase is for the period or 
  1.25  periods of uncovered eligible service from September 1969 until 
  2.1   the commencement of Minneapolis teacher retirement association 
  2.2   fund coverage in 1974 for which membership was mandatory, or for 
  2.3   which coverage was at the employee's option unless it can be 
  2.4   demonstrated that the person described in paragraph (a) waived 
  2.5   that coverage. 
  2.6      Subd. 2.  [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit 
  2.7   for prior eligible service under subdivision 1, there must be 
  2.8   paid to the Minneapolis teachers retirement fund association an 
  2.9   amount equal to the present value of the amount of the 
  2.10  additional retirement annuity obtained by purchase of the 
  2.11  additional service credit. 
  2.12     (b) Calculation of this amount must be made by the 
  2.13  executive director of the Minneapolis teachers retirement fund 
  2.14  association using the applicable preretirement interest rate 
  2.15  specified in Minnesota Statutes, section 356.215, subdivision 
  2.16  4d, and the mortality table adopted for the retirement 
  2.17  association.  The calculation must assume retirement at the age 
  2.18  at which the minimum requirements of the retirement association 
  2.19  for normal retirement or retirement with an annuity unreduced 
  2.20  for retirement at an early age, including Minnesota Statutes, 
  2.21  section 356.30, are met with the additional service credit 
  2.22  purchased. 
  2.23     (c) The person making the purchase must establish in the 
  2.24  records of the association proof of the service for which the 
  2.25  purchase of prior service is requested.  The manner of the proof 
  2.26  of service must be in accordance with procedures prescribed by 
  2.27  the executive director of the retirement association. 
  2.28     (d) The portion of the total cost of the purchase payable 
  2.29  by the person making the purchase is specified in subdivision 
  2.30  3.  The remaining portion of total cost is to be paid by the 
  2.31  applicable employing unit as specified in subdivision 4. 
  2.32     Subd. 3.  [ELIGIBLE PERSON PAYMENT.] (a) To receive credit 
  2.33  for the period or periods of service credit purchase specified 
  2.34  in subdivision 1, paragraph (b), the person described in 
  2.35  subdivision 1, paragraph (a), must pay a member contribution 
  2.36  equivalent amount. 
  3.1      (b) The member contribution equivalent amount is an amount 
  3.2   equal to the employee contribution that would have been made 
  3.3   during the uncovered period or periods described in subdivision 
  3.4   1, paragraph (b), plus six percent annually compounded interest 
  3.5   from the date on which a member contribution should have been 
  3.6   made if membership during the period or periods of service 
  3.7   credit purchase had been properly determined to the date on 
  3.8   which payment is made.  Payment must be made in a lump sum.  
  3.9   Authority to pay the member contribution equivalent amount 
  3.10  expires on September 1, 1995. 
  3.11     Subd. 4.  [MANDATORY EMPLOYING UNIT PAYMENT.] (a) Within 30 
  3.12  days of the receipt by the executive director of the Minneapolis 
  3.13  teachers retirement fund association of the payment from the 
  3.14  person making the purchase under subdivision 3, the governmental 
  3.15  unit employing the person described in subdivision 1, paragraph 
  3.16  (a), during the period of service credit purchase described in 
  3.17  subdivision 1, paragraph (b), shall pay the difference between 
  3.18  the amounts specified in subdivisions 2 and 3. 
  3.19     (b) The mandatory employing unit payment amount is payable 
  3.20  by the governmental unit in a lump sum. 
  3.21     Subd. 5.  [SERVICE CREDIT GRANT.] Service credit for the 
  3.22  purchase period must be granted to the account of the eligible 
  3.23  person upon receipt of the purchase payment amount specified in 
  3.24  subdivision 2. 
  3.25     Sec. 2.  [EFFECTIVE DATE.] 
  3.26     Section 1 is effective the day following final enactment.