HF 1330

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; teacher retirement plans; 
  1.3             adjusting benefit coverage to account for certain 
  1.4             extracurricular activity management compensation 
  1.5             amounts; requiring rulemaking by the state board of 
  1.6             education; amending Minnesota Statutes 1994, sections 
  1.7             354.05, by adding subdivisions; 354.07, by adding a 
  1.8             subdivision; 354.44, subdivision 6; 354.46, 
  1.9             subdivision 1; 354A.011, by adding subdivisions; 
  1.10            354A.021, by adding a subdivision; and 354A.31, 
  1.11            subdivision 4; proposing coding for new law in 
  1.12            Minnesota Statutes, chapters 121; 125; 354; and 354A. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14                             ARTICLE 1  
  1.15                  TEACHERS RETIREMENT ASSOCIATION 
  1.16        EXTRACURRICULAR ACTIVITY MANAGEMENT BENEFIT COVERAGE 
  1.17     Section 1.  Minnesota Statutes 1994, section 354.05, is 
  1.18  amended by adding a subdivision to read: 
  1.19     Subd. 35b.  [BASE SALARY.] (a) For an elementary or 
  1.20  secondary school teacher, "base salary" means the annual 
  1.21  contract or equivalent regular salary of the teacher for the 
  1.22  teacher's regular teaching duties and does not include 
  1.23  extracurricular activity compensation. 
  1.24     (b) For any other teacher, including a school district 
  1.25  superintendent or an elementary or secondary school principal or 
  1.26  other administrator, "base salary" means salary as defined in 
  1.27  subdivision 35. 
  1.28     Sec. 2.  Minnesota Statutes 1994, section 354.05, is 
  1.29  amended by adding a subdivision to read: 
  2.1      Subd. 35c.  [EXTRACURRICULAR ACTIVITY COMPENSATION.] 
  2.2   "Extracurricular activity compensation" means that portion of 
  2.3   the compensation for teaching services paid to a teacher for 
  2.4   extracurricular activity management. 
  2.5      Sec. 3.  Minnesota Statutes 1994, section 354.05, is 
  2.6   amended by adding a subdivision to read: 
  2.7      Subd. 35d.  [EXTRACURRICULAR ACTIVITY 
  2.8   MANAGEMENT.] "Extracurricular activity management," for purposes 
  2.9   of subdivisions 35b and 35c, means a teaching duty with 
  2.10  substantial direct student contact that is performed by an 
  2.11  elementary or secondary school teacher for a separate or 
  2.12  determinable amount of compensation, that is performed in 
  2.13  addition to the person's regular or base teaching duties, and 
  2.14  that is not uniformly performed by all or substantially all 
  2.15  other similarly situated teachers.  The term includes the 
  2.16  management of interscholastic and intramural competitive 
  2.17  activities.  The term does not include any activities by a 
  2.18  school district superintendent, an elementary or secondary 
  2.19  school principal, or other category of school administrator. 
  2.20     Sec. 4.  Minnesota Statutes 1994, section 354.05, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 35e.  [AVERAGE SALARY.] "Average salary" means the 
  2.23  period of salary as defined in subdivision 35 upon which 
  2.24  contributions were made that produces the highest amount for a 
  2.25  five successive year period of formula service credit, but not 
  2.26  to exceed the equivalent of 60 successive monthly applicable 
  2.27  compensation payments, or for all years of formula service 
  2.28  credit if the person has credit for less than five years of 
  2.29  formula service. 
  2.30     Sec. 5.  Minnesota Statutes 1994, section 354.07, is 
  2.31  amended by adding a subdivision to read: 
  2.32     Subd. 10.  [BASE SALARY AND EXTRACURRICULAR ACTIVITY 
  2.33  COMPENSATION REPORTING.] (a) The board shall adopt necessary 
  2.34  standards for the reporting of base salary amounts and 
  2.35  extracurricular activity compensation amounts.  Reporting of 
  2.36  base salary amounts and extracurricular activity compensation 
  3.1   amounts is the responsibility of an employing unit with members 
  3.2   covered by the fund.  An employing unit with a member covered by 
  3.3   the fund who manages an extracurricular activity must comply 
  3.4   with the standards in reporting salary and compensation amounts. 
  3.5      (b) No amount may be credited as extracurricular activity 
  3.6   compensation paid before July 1, 1994, unless the teacher 
  3.7   involved supplies adequate documentation of the amount of the 
  3.8   extracurricular teaching activity compensation and the length of 
  3.9   the extracurricular teaching activity management service.  The 
  3.10  extracurricular teaching activity compensation must have been 
  3.11  salary subject to member contributions at the time the service 
  3.12  was rendered.  The documentation must be supplied at least six 
  3.13  months before the teacher's effective date of retirement. 
  3.14     (c) The board shall establish standards for the 
  3.15  documentation required to be provided by a teacher to establish 
  3.16  the existence and amount of any extracurricular activity 
  3.17  compensation received before July 1, 1994.  Pre-July 1, 1994, 
  3.18  extracurricular activity compensation is only creditable if 
  3.19  contemporaneous member contributions were made on the 
  3.20  extracurricular activity compensation amount.  The documentation 
  3.21  standards may not unreasonably differentiate between the various 
  3.22  types of teaching personnel engaged in extracurricular activity 
  3.23  management and may not differentiate between the various school 
  3.24  districts in a given school year. 
  3.25     Sec. 6.  Minnesota Statutes 1994, section 354.44, 
  3.26  subdivision 6, is amended to read: 
  3.27     Subd. 6.  [COMPUTATION OF FORMULA PROGRAM RETIREMENT 
  3.28  ANNUITY.] (1) The formula retirement annuity hereunder shall 
  3.29  must be computed in accordance with using the applicable 
  3.30  provisions of the formulas stated in clause (2) or (4) on the 
  3.31  basis of each the member's average salary for the period of the 
  3.32  member's formula service credit.  
  3.33     For all years of formula service credit, "average salary," 
  3.34  for the purpose of determining the member's retirement annuity, 
  3.35  means the average salary upon which contributions were made and 
  3.36  upon which payments were made to increase the salary limitation 
  4.1   provided in Minnesota Statutes 1971, section 354.511, for the 
  4.2   highest five successive years of formula service credit 
  4.3   provided, however, that such "average salary" shall not include 
  4.4   any more than the equivalent of 60 monthly salary payments.  
  4.5   Average salary must be based upon all years of formula service 
  4.6   credit if this service credit is less than five years. 
  4.7      (2) This clause, in conjunction with clause (3), applies to 
  4.8   a person who first became a member of the fund or a member of a 
  4.9   pension fund listed in section 356.30, subdivision 3, before 
  4.10  July 1, 1989, unless clause (4), in conjunction with clause (5), 
  4.11  produces a higher annuity amount, in which case clause (4) 
  4.12  applies.  The average salary, as defined in clause (1) section 
  4.13  354.05, subdivision 35e, multiplied by the following percentages 
  4.14  per year of formula service credit shall determine, determines 
  4.15  the amount of the annuity to which the member qualifying 
  4.16  therefor, upon retirement and application, is entitled: 
  4.17                           Coordinated Member   Basic Member
  4.18   Each year of service      1.0 percent        2.0 percent
  4.19    during first ten         per year           per year
  4.20   Each year of service      1.5 percent        2.5 percent
  4.21    thereafter               per year           per year
  4.22     (3)(i) This clause applies only to a person who first 
  4.23  became a member of the fund or a member of a pension fund listed 
  4.24  in section 356.30, subdivision 3, before July 1, 1989, and whose 
  4.25  annuity is higher when calculated under clause (2), in 
  4.26  conjunction with this clause than when calculated under clause 
  4.27  (4), in conjunction with clause (5). 
  4.28     (ii) Where any a member retires prior to before normal 
  4.29  retirement age under a formula annuity, the member shall be paid 
  4.30  is entitled to a retirement annuity in an amount equal to the 
  4.31  normal annuity provided in clause (2) reduced by one-quarter of 
  4.32  one percent for each month that the member is under normal 
  4.33  retirement age at the time of retirement except that.  However, 
  4.34  for any a member who has 30 or more years of allowable service 
  4.35  credit, the reduction shall be applied applies only for each 
  4.36  month that the member is under age 62. 
  5.1      (iii) Any A member whose attained age plus credited 
  5.2   allowable service totals 90 years is entitled, upon application, 
  5.3   to a retirement annuity in an amount equal to the normal annuity 
  5.4   provided in clause (2), without any reduction by reason of early 
  5.5   retirement. 
  5.6      (4) This clause applies to a member who has become at least 
  5.7   55 years old and first became a member of the fund after June 
  5.8   30, 1989, and to any other member who has become at least 55 
  5.9   years old and whose annuity amount when calculated under this 
  5.10  clause and in conjunction with clause (5), is higher than it is 
  5.11  when calculated under clause (2), in conjunction with clause (3).
  5.12  The average salary, as defined in clause (1) section 354.05, 
  5.13  subdivision 35e, multiplied by 2.5 percent for each year of 
  5.14  service for a basic member and by 1.5 percent for each year of 
  5.15  service for a coordinated member shall determine, determines the 
  5.16  amount of the retirement annuity to which the member is entitled.
  5.17     (5) This clause applies to a person who has become at least 
  5.18  55 years old and first becomes a member of the fund after June 
  5.19  30, 1989, and to any other member who has become at least 55 
  5.20  years old and whose annuity is higher when calculated under 
  5.21  clause (4) in conjunction with this clause than when calculated 
  5.22  under clause (2), in conjunction with clause (3).  An employee A 
  5.23  member who retires under the formula annuity before the normal 
  5.24  retirement age shall be paid is entitled to the normal annuity 
  5.25  provided in clause (4) reduced so that the reduced annuity is 
  5.26  the actuarial equivalent of the annuity that would be payable to 
  5.27  the employee member if the employee person deferred receipt of 
  5.28  the annuity and the annuity amount were augmented at an annual 
  5.29  rate of three percent compounded annually from the day the 
  5.30  annuity begins to accrue until the normal retirement age. 
  5.31     Sec. 7.  Minnesota Statutes 1994, section 354.46, 
  5.32  subdivision 1, is amended to read: 
  5.33     Subdivision 1.  [BASIC PROGRAM; BENEFITS FOR SPOUSE AND 
  5.34  CHILDREN OF TEACHER.] If a basic member who has at least 18 
  5.35  months of allowable service credit and who has an average salary 
  5.36  as defined in section 354.44 354.05, subdivision 6 35e, equal to 
  6.1   or greater than $75 dies prior to before retirement or if a 
  6.2   former basic member who, at the time of death, was totally and 
  6.3   permanently disabled and receiving disability benefits pursuant 
  6.4   to under section 354.48 dies before attaining age 65 or reaching 
  6.5   the five-year anniversary of the effective date of the 
  6.6   disability benefit, whichever is later, the surviving spouse and 
  6.7   dependent children of the basic member or former basic member 
  6.8   are entitled to receive a monthly benefit as follows: 
  6.9     (a) (1) Surviving
  6.10    spouse .....50 percent of the basic member's monthly
  6.11                average salary paid in the last full
  6.12                fiscal year preceding death; and
  6.13    (b) (2) Each
  6.14    dependent
  6.15    child ......ten percent of the basic member's
  6.16                monthly average salary paid in the
  6.17                last full fiscal year preceding death
  6.18     Payments for The benefit of any dependent child under the 
  6.19  age of 22 years must be made is payable to the surviving parent, 
  6.20  or if there be none, to the legal guardian of the child.  
  6.21  The maximum monthly benefit must may not exceed a maximum 
  6.22  of $1,000 for any one family, and the minimum benefit per for a 
  6.23  surviving family must not be less than a minimum of 50 percent 
  6.24  of the basic member's average salary, subject to the foregoing 
  6.25  maximum.  The surviving dependent children's benefit must be 
  6.26  reduced pro tanto when any surviving child is no longer 
  6.27  dependent. 
  6.28     If the basic member and the surviving spouse are killed in 
  6.29  a common disaster and if the total of all survivors benefits 
  6.30  payable pursuant to under this subdivision is less than the 
  6.31  accumulated deductions plus interest payable, the surviving 
  6.32  dependent children shall are entitled to receive the difference 
  6.33  in a lump sum payment. 
  6.34     If the survivor benefits provided in this subdivision 
  6.35  exceed in total the monthly average salary of the deceased basic 
  6.36  member, these the computed benefits must be reduced to an amount 
  7.1   equal to the deceased basic member's monthly average salary. 
  7.2      Prior to Before the payment of any survivor benefit 
  7.3   pursuant to under this subdivision, in lieu of that benefit, the 
  7.4   surviving spouse may elect to receive the joint and survivor 
  7.5   annuity provided pursuant to under subdivision 2, or may elect 
  7.6   to receive a refund of accumulated deductions with interest in a 
  7.7   lump sum as provided pursuant to under section 354.47, 
  7.8   subdivision 1.  If there are any surviving dependent children, 
  7.9   the surviving spouse may elect to receive the refund of 
  7.10  accumulated deductions only with the consent of the district 
  7.11  court of the district in which the surviving dependent child or 
  7.12  children reside. 
  7.13     Sec. 8.  [354.515] [REFUND OF CERTAIN MEMBER CONTRIBUTIONS 
  7.14  ON EXTRACURRICULAR COMPENSATION.] 
  7.15     Subdivision 1.  [REFUND ENTITLEMENT.] A member who has 
  7.16  qualifying member contributions on extracurricular teaching 
  7.17  activity compensation under subdivision 2 at the time of 
  7.18  retirement is entitled, upon application, to receive a refund of 
  7.19  extracurricular teaching activity compensation member 
  7.20  contributions as provided in subdivision 3. 
  7.21     Subd. 2.  [QUALIFYING EXTRACURRICULAR MEMBER 
  7.22  CONTRIBUTIONS.] A member has qualifying member contributions on 
  7.23  extracurricular teaching activity compensation if: 
  7.24     (1) the member received documented or reported 
  7.25  extracurricular activity compensation on which member 
  7.26  contributions were deducted during a period of at least five 
  7.27  years that occurred before the period giving rise to the 
  7.28  member's highest five successive years average salary, but the 
  7.29  member did not receive documented or reported extracurricular 
  7.30  activity compensation during the highest five successive years 
  7.31  average salary period; or 
  7.32     (2) the member received documented or reported 
  7.33  extracurricular activity compensation on which member 
  7.34  contributions were deducted during a period of at least five 
  7.35  years that occurred before the period giving rise to the 
  7.36  member's highest five successive years average salary, but the 
  8.1   documented or reported extracurricular activity compensation 
  8.2   during the highest five successive years average salary is less 
  8.3   than 80 percent of the average of extracurricular activity 
  8.4   compensation received during the total period not included in 
  8.5   the calculation of the member's highest five successive years 
  8.6   average salary. 
  8.7      Subd. 3.  [REFUND AMOUNT.] The amount of the 
  8.8   extracurricular teaching activity compensation member 
  8.9   contribution refund is: 
  8.10     (1) the total amount of documented or reported 
  8.11  extracurricular activity compensation member contributions to 
  8.12  the credit of the retiring member, plus interest at the annual 
  8.13  compound rate of 6.5 percent, computed on fiscal year end 
  8.14  balances to the date on which the retiring member's retirement 
  8.15  annuity is first paid, if subdivision 2, clause (1), applies; or 
  8.16     (2) the amount by which documented or reported 
  8.17  extracurricular activity compensation member contributions in 
  8.18  any year not included in the retiring member's highest five 
  8.19  successive years average salary calculation exceeds the average 
  8.20  annual documented or reported extracurricular activity 
  8.21  compensation member contributions for the period included in the 
  8.22  retiring member's highest five successive years average salary 
  8.23  calculation, plus interest at the annual compound rate of 6.5 
  8.24  percent, computed on fiscal year end balances to the date on 
  8.25  which the retiring member's retirement annuity is first paid, if 
  8.26  subdivision 2, clause (1), applies. 
  8.27     Subd. 4.  [DOCUMENTED OR REPORTED EXTRACURRICULAR MEMBER 
  8.28  CONTRIBUTIONS.] (a) Reported extracurricular activity 
  8.29  compensation member contributions are those post-June 30, 1994 
  8.30  amounts reported in accord with the applicable board standards 
  8.31  under section 354.07, subdivision 10, paragraph (a). 
  8.32     (b) Documented extracurricular activity compensation member 
  8.33  contributions are those pre-July 1, 1994 amounts documented in 
  8.34  accord with the applicable board standards under section 354.07, 
  8.35  subdivision 10, paragraphs (b) and (c). 
  8.36     Subd. 5.  [REFUND APPLICATION; REFUND PAYMENT DATE.] (a) An 
  9.1   application for a refund under this section must accompany an 
  9.2   application for a retirement annuity.  Failure to apply for a 
  9.3   refund under this section when applying for a retirement annuity 
  9.4   under this chapter constitutes a waiver of entitlement to a 
  9.5   refund under this section. 
  9.6      (b) Payment of a refund under this section must occur with 
  9.7   the initial retirement annuity payment. 
  9.8      Sec. 9.  [EFFECTIVE DATE.] 
  9.9      Sections 1 to 8 are effective July 1, 1994. 
  9.10                             ARTICLE 2  
  9.11             FIRST CLASS CITY TEACHER RETIREMENT FUNDS 
  9.12        EXTRACURRICULAR ACTIVITY MANAGEMENT BENEFIT COVERAGE 
  9.13     Section 1.  Minnesota Statutes 1994, section 354A.011, is 
  9.14  amended by adding a subdivision to read: 
  9.15     Subd. 7a.  [AVERAGE SALARY.] "Average salary" means the 
  9.16  period of salary as defined in subdivision 24 upon which 
  9.17  contributions were made that produces the highest amount for a 
  9.18  five successive year period of formula service credit, but not 
  9.19  to exceed the equivalent of 60 successive monthly applicable 
  9.20  compensation payments, or for all years of formula service 
  9.21  credit if the person has credit for less than five years of 
  9.22  formula service. 
  9.23     Sec. 2.  Minnesota Statutes 1994, section 354A.011, is 
  9.24  amended by adding a subdivision to read: 
  9.25     Subd. 7b.  [BASE SALARY.] (a) For an elementary or 
  9.26  secondary school teacher, "base salary" means the annual 
  9.27  contract or equivalent regular salary of the teacher for the 
  9.28  teacher's regular teaching duties and does not include 
  9.29  extracurricular activity compensation. 
  9.30     (b) For any other teacher, including a school district 
  9.31  superintendent or an elementary or secondary school principal or 
  9.32  other administrator, "base salary" means salary as defined in 
  9.33  subdivision 24. 
  9.34     Sec. 3.  Minnesota Statutes 1994, section 354A.011, is 
  9.35  amended by adding a subdivision to read: 
  9.36     Subd. 14a.  [EXTRACURRICULAR ACTIVITY COMPENSATION.] 
 10.1   "Extracurricular activity compensation" means that portion of 
 10.2   the compensation for teaching services paid to a teacher for 
 10.3   extracurricular activity management. 
 10.4      Sec. 4.  Minnesota Statutes 1994, section 354A.011, is 
 10.5   amended by adding a subdivision to read: 
 10.6      Subd. 14b.  [EXTRACURRICULAR ACTIVITY 
 10.7   MANAGEMENT.] "Extracurricular activity management," for purposes 
 10.8   of subdivisions 7b and 14a, means a teaching duty with 
 10.9   substantial direct student contact that is performed by an 
 10.10  elementary or secondary school teacher for a separate or 
 10.11  determinable amount of compensation, that is performed in 
 10.12  addition to the person's regular or base teaching duties, and 
 10.13  that is not uniformly performed by all or substantially all 
 10.14  other similarly situated teachers.  The term includes the 
 10.15  management of interscholastic and intramural competitive 
 10.16  activities.  The term does not include any activities by a 
 10.17  school district superintendent, an elementary or secondary 
 10.18  school principal, or other category of school administrator. 
 10.19     Sec. 5.  Minnesota Statutes 1994, section 354A.021, is 
 10.20  amended by adding a subdivision to read: 
 10.21     Subd. 9.  [BASE SALARY AND EXTRACURRICULAR ACTIVITY 
 10.22  COMPENSATION REPORTING.] (a) The board of each teachers 
 10.23  retirement fund association shall adopt necessary standards for 
 10.24  the reporting of base salary amounts and extracurricular 
 10.25  activity compensation amounts.  Reporting of base salary amounts 
 10.26  and extracurricular activity compensation amounts is the 
 10.27  responsibility of the applicable school district.  The 
 10.28  applicable school district shall comply with the standards in 
 10.29  reporting salary and compensation amounts. 
 10.30     (b) No amount may be credited as extracurricular activity 
 10.31  compensation paid before July 1, 1994, unless the teacher 
 10.32  involved supplies adequate documentation of the amount of the 
 10.33  extracurricular teaching activity compensation and the length of 
 10.34  the extracurricular teaching activity management service.  The 
 10.35  extracurricular teaching activity compensation must have been 
 10.36  salary subject to member contributions at the time the service 
 11.1   was rendered.  The documentation must be supplied at least six 
 11.2   months before the teacher's effective date of retirement. 
 11.3      (c) The board of each teachers retirement fund association 
 11.4   shall establish standards for the documentation required to be 
 11.5   provided by a teacher to establish the existence and amount of 
 11.6   any extracurricular activity compensation received before July 
 11.7   1, 1994.  Pre-July 1, 1994, extracurricular activity 
 11.8   compensation is only creditable if contemporaneous member 
 11.9   contributions were made on the extracurricular activity 
 11.10  compensation amount.  The documentation standards may not 
 11.11  unreasonably differentiate between the various types of teaching 
 11.12  personnel engaged in extracurricular activity management. 
 11.13     Sec. 6.  Minnesota Statutes 1994, section 354A.31, 
 11.14  subdivision 4, is amended to read: 
 11.15     Subd. 4.  [COMPUTATION OF THE NORMAL COORDINATED RETIREMENT 
 11.16  ANNUITY.] (a) The normal coordinated retirement annuity shall be 
 11.17  is an amount equal to a retiring coordinated member's average 
 11.18  salary as defined in section 354A.011, subdivision 7a, 
 11.19  multiplied by the retirement annuity formula 
 11.20  percentage.  Average salary for purposes of this section shall 
 11.21  mean an amount equal to the average salary upon which 
 11.22  contributions were made for the highest five successive years of 
 11.23  service credit, but which shall not in any event include any 
 11.24  more than the equivalent of 60 monthly salary payments.  Average 
 11.25  salary must be based upon all years of service credit if this 
 11.26  service credit is less than five years. 
 11.27     (b) This paragraph, in conjunction with subdivision 6, 
 11.28  applies to a person who first became a member or a member in a 
 11.29  pension fund listed in section 356.30, subdivision 3, before 
 11.30  July 1, 1989, unless paragraph (c), in conjunction with 
 11.31  subdivision 7, produces a higher annuity amount, in which case 
 11.32  paragraph (c) will apply.  The retirement annuity formula 
 11.33  percentage for purposes of this paragraph is one percent per 
 11.34  year for each year of coordinated service for the first ten 
 11.35  years and 1.5 percent for each year of coordinated service 
 11.36  thereafter.  
 12.1      (c) This paragraph applies to a person who has become at 
 12.2   least 55 years old and who first becomes a member after June 30, 
 12.3   1989, and to any other member who has become at least 55 years 
 12.4   old and whose annuity amount, when calculated under this 
 12.5   paragraph and in conjunction with subdivision 7 is higher than 
 12.6   it is when calculated under paragraph (b), in conjunction with 
 12.7   the provisions of subdivision 6.  The retirement annuity formula 
 12.8   percentage for purposes of this paragraph is 1.5 percent for 
 12.9   each year of coordinated service.  
 12.10     Sec. 7.  [354A.385] [REFUND OF CERTAIN MEMBER CONTRIBUTIONS 
 12.11  ON EXTRACURRICULAR COMPENSATION.] 
 12.12     Subdivision 1.  [REFUND ENTITLEMENT.] A member who has 
 12.13  qualifying member contributions on extracurricular teaching 
 12.14  activity compensation under subdivision 2 at the time of 
 12.15  retirement is entitled, upon application, to receive a refund of 
 12.16  extracurricular teaching activity compensation member 
 12.17  contributions as provided in subdivision 3. 
 12.18     Subd. 2.  [QUALIFYING EXTRACURRICULAR MEMBER 
 12.19  CONTRIBUTIONS.] A member has qualifying member contributions on 
 12.20  extracurricular teaching activity compensation if: 
 12.21     (1) the member received documented or reported 
 12.22  extracurricular activity compensation on which member 
 12.23  contributions were deducted during a period of at least five 
 12.24  years that occurred before the period giving rise to the 
 12.25  member's highest five successive years average salary, but the 
 12.26  member did not receive documented or reported extracurricular 
 12.27  activity compensation during the highest five successive years 
 12.28  average salary period; or 
 12.29     (2) the member received documented or reported 
 12.30  extracurricular activity compensation on which member 
 12.31  contributions were deducted during a period of at least five 
 12.32  years that occurred before the period giving rise to the 
 12.33  member's highest five successive years average salary, but the 
 12.34  documented or reported extracurricular activity compensation 
 12.35  during the highest five successive years average salary is less 
 12.36  than 80 percent of the average of extracurricular activity 
 13.1   compensation received during the total period not included in 
 13.2   the calculation of the member's highest five successive years 
 13.3   average salary. 
 13.4      Subd. 3.  [REFUND AMOUNT.] The amount of the 
 13.5   extracurricular teaching activity compensation member 
 13.6   contribution refund is: 
 13.7      (1) the total amount of documented or reported 
 13.8   extracurricular activity compensation member contributions to 
 13.9   the credit of the retiring member, plus interest at the annual 
 13.10  compound rate of 6.5 percent, computed on fiscal year end 
 13.11  balances to the date on which the retiring member's retirement 
 13.12  annuity is first paid, if subdivision 2, clause (1), applies; or 
 13.13     (2) the amount by which documented or reported 
 13.14  extracurricular activity compensation member contributions in 
 13.15  any year not included in the retiring member's highest five 
 13.16  successive years average salary calculation exceeds the average 
 13.17  annual documented or reported extracurricular activity 
 13.18  compensation member contributions for the period included in the 
 13.19  retiring member's highest five successive years average salary 
 13.20  calculation, plus interest at the annual compound rate of 6.5 
 13.21  percent, computed on fiscal year end balances to the date on 
 13.22  which the retiring member's retirement annuity is first paid, if 
 13.23  subdivision 2, clause (1), applies. 
 13.24     Subd. 4.  [DOCUMENTED OR REPORTED EXTRACURRICULAR MEMBER 
 13.25  CONTRIBUTIONS.] (a) Reported extracurricular activity 
 13.26  compensation member contributions are those post-June 30, 1994 
 13.27  amounts reported in accord with the applicable board standards 
 13.28  under section 354A.021, subdivision 10, paragraph (a). 
 13.29     (b) Documented extracurricular activity compensation member 
 13.30  contributions are those pre-July 1, 1994 amounts documented in 
 13.31  accord with the applicable board standards under section 
 13.32  354A.021, subdivision 10, paragraphs (b) and (c). 
 13.33     Subd. 5.  [REFUND APPLICATION; REFUND PAYMENT DATE.] (a) An 
 13.34  application for a refund under this section must accompany an 
 13.35  application for a retirement annuity.  Failure to apply for a 
 13.36  refund under this section when applying for a retirement annuity 
 14.1   under this chapter constitutes a waiver of entitlement to a 
 14.2   refund under this section. 
 14.3      (b) Payment of a refund under this section must occur with 
 14.4   the initial retirement annuity payment. 
 14.5      Sec. 8.  [EFFECTIVE DATE.] 
 14.6      Sections 1 to 7 are effective July 1, 1995. 
 14.7                              ARTICLE 3 
 14.8          FEE FOR DOCUMENTING PRIOR EXTRACURRICULAR TEACHING 
 14.9                       SERVICE AND COMPENSATION 
 14.10     Section 1.  [125.122] [EXTRACURRICULAR TEACHING ACTIVITY 
 14.11  MANAGERS; DOCUMENTATION FEE AUTHORITY.] 
 14.12     To cover the cost of documenting prior extracurricular 
 14.13  teaching activity management service and compensation under 
 14.14  section 354.07, subdivision 10; or 354A.021, subdivision 9, a 
 14.15  school district may charge the extracurricular teaching activity 
 14.16  manager a documentation fee, not to exceed $........ 
 14.17     Sec. 2.  [EFFECTIVE DATE.] 
 14.18     Section 1 is effective July 1, 1995. 
 14.19                             ARTICLE 4  
 14.20                      STATE BOARD OF EDUCATION  
 14.21    SPECIFICATION OF ELIGIBLE EXTRACURRICULAR ACTIVITY MANAGERS 
 14.22     Section 1.  [121.115] [SPECIFICATION OF ELIGIBLE 
 14.23  EXTRACURRICULAR ACTIVITY MANAGEMENT DUTIES.] 
 14.24     For purposes of the special retirement plan provisions 
 14.25  contained in section 354.515 or 354A.385, the state board shall 
 14.26  adopt reasonable and appropriate emergency and permanent rules 
 14.27  consistent with sections 354.05, subdivision 35d, and 354A.011, 
 14.28  subdivision 14b, defining the various teaching duties that 
 14.29  constitute extracurricular activity management. 
 14.30     Sec. 2.  [EFFECTIVE DATE.] 
 14.31     (a) Section 1 is effective on the day following final 
 14.32  enactment. 
 14.33     (b) The state board of education shall issue emergency 
 14.34  rules under section 1 as soon as practicable following the 
 14.35  effective date specified in paragraph (a).