Minnesota Legislature
HF 1628
as introduced - 87th Legislature (2011 - 2012) Posted on 05/02/2011 10:05am
Bill Text Versions
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| Introduction | Posted on 05/02/2011 |
Current Version - as introduced
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A bill for an act
relating to retirement; first class city teacher retirement fund associations;
adding a definition for vesting; modifying eligibility for leave of absence,
retirement, survivor, and disability benefits; amending Minnesota Statutes 2010,
sections 354A.011, by adding a subdivision; 354A.094, subdivision 3; 354A.31,
subdivisions 1, 5, 6; 354A.35, subdivision 2; 354A.36, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 354A.011, is amended by adding a
subdivision to read:
new text begin Subd. 29. new text end
new text begin Vesting; vested. new text end
new text begin
(a) "Vesting" or "vested" means having entitlement to a
nonforfeitable annuity or benefit from a coordinated member program administered by a
teachers retirement fund association by having credit for sufficient allowable service under
paragraph (b) or (c), whichever applies.
new text end
new text begin
(b) For purposes of qualifying for an annuity or a benefit as a coordinated plan
member of the St. Paul Teachers Retirement Fund Association, the teacher is vested when
the teacher has accrued credit for at least three years of service.
new text end
new text begin
(c) For purposes of qualifying for an annuity or a benefit as a coordinated plan
member of the Duluth Teachers Retirement Fund Association:
new text end
new text begin
(1) a teacher who first became a member of the plan before July 1, 2010, is vested
when the teacher has accrued at least three years of service; and
new text end
new text begin
(2) a teacher who first became a member of the plan after June 30, 2010, is vested
when the teacher has accrued at least five years of service.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2010, section 354A.094, subdivision 3, is amended to read:
Subd. 3.
Qualified part-time teacher program participation requirements.
(a)
A teacher in the public schools of a city of the first class who deleted text begin has three years or more
allowable service in the applicable retirement fund associationdeleted text end new text begin is vested, new text end or deleted text begin threedeleted text end new text begin who has
combined new text end years deleted text begin or moredeleted text end of full-time teaching service in Minnesota public elementary
schools, Minnesota secondary schools, and Minnesota State Colleges and Universities
system new text begin at least equal to the number of years specified for vesting in the applicable first
class city teacher plan, new text end may, by agreement with the board of the employing district, be
assigned to teaching service within the district in a part-time teaching position. The
agreement must be executed before October 1 of the year for which the teacher requests to
make retirement contributions under subdivision 4. A copy of the executed agreement
must be filed with the executive director of the retirement fund association. If the copy
of the executed agreement is filed with the association after October 1 of the year for
which the teacher requests to make retirement contributions under subdivision 4, the
employing school district shall pay a fine of $5 for each calendar day that elapsed since
the October 1 due date. The association may not accept an executed agreement that is
received by the association more than 15 months late. The association may not waive
the fine required by this section.
(b) Notwithstanding paragraph (a), if the teacher is also a legislator:
(1) the agreement in paragraph (a) must be executed before March 1 of the school
year for which the teacher requests to make retirement contributions under subdivision
4; and
(2) the fines specified in paragraph (a) apply if the employing unit does not file the
executed agreement with the executive director of the applicable Teachers Retirement
Fund Association by March 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2010, section 354A.31, subdivision 1, is amended to read:
Subdivision 1.
Age and service requirements.
Any coordinated member or former
coordinated member of the new text begin Duluth Teachers Retirement Fund Association or of the new text end St.
Paul Teachers Retirement Fund Association who has ceased to render teaching service for
the school district in which the teachers retirement fund association existsnew text begin , who is vestednew text end
and who has either attained the age of at least 55 years deleted text begin with not less than three years of
allowable service creditdeleted text end or received credit for not less than 30 years of allowable service
regardless of age, shall be entitled upon written application to a retirement annuity. deleted text begin Any
coordinated member or former coordinated member of the Duluth Teachers Retirement
Fund Association who has ceased to render teaching service for the school district in
which the teacher retirement fund association exists and who has either attained the age of
at least 55 years with not less than three years of allowable service credit if the member
became an employee before July 1, 2010, or not less than five years of allowable service
credit if the member became an employee after June 30, 2010, or received service credit
for not less than 30 years of allowable service regardless of age, shall be entitled upon
written application to a retirement annuity.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2010, section 354A.31, subdivision 5, is amended to read:
Subd. 5.
Unreduced normal retirement annuity.
Upon retirement at normal
retirement age deleted text begin with at least three years of service creditdeleted text end , a new text begin vested new text end coordinated member is
entitled to a normal retirement annuity calculated under subdivision 4 or 4a, whichever
applies.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2010, section 354A.31, subdivision 6, is amended to read:
Subd. 6.
Reduced retirement annuity.
This subdivision applies only to a person
who first became a coordinated member or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989, and whose annuity is higher when calculated
using the retirement annuity formula percentage in subdivision 4, paragraph (c), or
subdivision 4a, paragraph (c), in conjunction with this subdivision than when calculated
under subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), in conjunction with
subdivision 7.
(a) Upon retirement at an age before normal retirement age deleted text begin with three years
of service creditdeleted text end or prior to age 62 with at least 30 years of service credit, a new text begin vested
new text end coordinated member shall be entitled to a retirement annuity in an amount equal to the
normal retirement annuity calculated using the retirement annuity formula percentage in
subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), reduced by one-quarter of
one percent for each month that the coordinated member is under normal retirement age if
the coordinated member has less than 30 years of service credit or is under the age of 62 if
the coordinated member has at least 30 years of service credit.
(b) Any coordinated member whose attained age plus credited allowable service
totals 90 years is entitled, upon application, to a retirement annuity in an amount equal to
the normal retirement annuity calculated using the retirement annuity formula percentage
in subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by
reason of early retirement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2010, section 354A.35, subdivision 2, is amended to read:
Subd. 2.
Death while eligible to retire; surviving spouse optional annuity.
(a)
The surviving spouse of a new text begin vested new text end coordinated member who deleted text begin has credit for at least three
years of service anddeleted text end dies prior to retirement may elect to receive, instead of a refund with
interest under subdivision 1, an annuity equal to the 100 percent joint and survivor annuity
the member could have qualified for had the member terminated service on the date of
death. The surviving spouse eligible for a surviving spouse benefit under this paragraph
may apply for the annuity at any time after the date on which the deceased employee
would have attained the required age for retirement based on the employee's allowable
service. A surviving spouse eligible for surviving spouse benefits under paragraph (b)
or (c) may apply for an annuity at any time after the member's death. The member's
surviving spouse shall be paid a joint and survivor annuity under section 354A.32 and
computed under section 354A.31.
(b) If the member was under age 55 and has credit for at least 30 years of allowable
service on the date of death, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the member and surviving spouse on the date
of death. The annuity is payable using the full early retirement reduction under section
354A.31, subdivision 6, paragraph (a), to age 55 and one-half of the early retirement
reduction from age 55 to the age payment begins.
(c) If deleted text begin thedeleted text end new text begin a vested new text end member was under age 55 deleted text begin and has credit for at least three years of
allowable servicedeleted text end on the date of death but did not yet qualify for retirement, the surviving
spouse may elect to receive the 100 percent joint and survivor annuity based on the age
of the member and the survivor at the time of death. The annuity is payable using the
full early retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
one-half of the early retirement reduction from age 55 to the date payment begins.
new text begin (d) new text end Sections 354A.37, subdivision 2, and 354A.39 apply to a deferred annuity or
surviving spouse benefit payable under this section. The benefits are payable for the life
of the surviving spouse, or upon expiration of the term certain benefit payment under
subdivision 2b.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2010, section 354A.36, subdivision 1, is amended to read:
Subdivision 1.
Minimum age, service, and salary requirements.
Any coordinated
member who deleted text begin has at least three years of allowable service creditdeleted text end new text begin is vestednew text end , new text begin who new text end has an
average salary of at least $75 per month, and new text begin who new text end has become totally and permanently
disabled shall be entitled to a disability benefit. If the disabled coordinated member's
allowable service credit has not been continuous, at least two years of the required
allowable service shall be required to have been rendered subsequent to the last
interruption in service.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end