HF 2088

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; first class city teacher
retirement fund associations; updating the sabbatical
leave service credit provision based on recent Teacher
Retirement Association amendments; amending Minnesota
Statutes 2004, sections 354A.011, subdivision 23;
354A.092.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 354A.011,
subdivision 23, is amended to read:

Subd. 23.

Sabbatical leave.

"Sabbatical leave" means an
authorized sabbatical leave of absence period as defined in
section 122A.49 or in the applicable personnel policy of the
Minnesota State Colleges and Universities system that is
certified by the applicable employing unit and during which the
member is compensated at a rate of not less than one-third of
the salary which the member received during the plan year
immediately preceding the granting of the leave.

Sec. 2.

Minnesota Statutes 2004, section 354A.092, is
amended to read:

354A.092 SABBATICAL LEAVE.

Subdivision 1.

Credit for leave.

Any teacher in the
coordinated program of either the Minneapolis Teachers
Retirement Fund Association or the St. Paul Teachers Retirement
Fund Association or any a teacher in the new law coordinated
program of the Duluth Teachers Retirement Fund Association who
is granted a sabbatical leave shall be is entitled to receive
allowable service credit in the applicable association for
periods of sabbatical leave.

Subd. 2.

Certification.

Upon granting a sabbatical
leave, the employing unit granting the leave must certify the
leave to the applicable association on a form specified by the
executive director or executive secretary of the association.

Subd. 3.

Member and employer contributions.

To obtain
the service credit, the employer of the teacher on sabbatical
leave shall make deduct from the salary of the teacher an
employee contribution at the applicable rate specified in
section 354A.12, subdivision 1,to the applicable association.
No teacher shall be entitled to receive more than three years of
allowable service credit pursuant to this section for a period
or periods of sabbatical leave during any ten consecutive fiscal
or calendar years, whichever is the applicable plan year for the
teachers retirement fund association. If the teacher granted a
sabbatical leave makes the employee contribution for a period of
sabbatical leave pursuant to this section, the employing
unit based on the full normal base contract salary that would
have been paid to the teacher if the teacher were not on a
sabbatical leave and shall make an employer contribution on
behalf of the teacher to the applicable association for that
period of sabbatical leave in the manner described in section
354A.12, subdivision 2a, on the same salary base. The employee
and employer contributions shall be in an amount equal to the
employee and employer contribution rates in effect for other
active members of the association covered by the same program
applied to a salary figure equal to the teacher's actual covered
salary for the plan year immediately preceding the sabbatical
leave period. Payment of the employee contribution authorized
pursuant to this section shall be made by the teacher on or
before June 30 of year next following the year in which the
sabbatical leave terminated and shall be made without interest.
For sabbatical leaves taken after June 30, 1986, the required
employer contributions shall be paid by the employing unit
within 30 days after notification by the association of the
amount due.The employer must meet the reporting and remittance
requirements under section 354A.12, subdivision 5.

Subd. 4.

Service credit.

A teacher may not receive more
than three years of allowable service credit in any ten
consecutive years under this section. Notwithstanding the
provisions of any sabbatical agreements to the contrary, member
and employer contributions may not be made to receive allowable
service credit under this section if the teacher does not retain
the right to full reinstatement of employment both during the
sabbatical leave and at the end of the sabbatical leave.If the
employee contributions for the sabbatical leave period are less
than an the amount equal to the applicable contribution rate
applied to a the base salary figure equal to the teacher's
actual covered salary for the plan year immediately preceding
the sabbatical leave period under subdivision 3, service
credit shall must be prorated. The prorated service
credit shall must be determined by the ratio between the amount
of the actual payment which was made and the full contribution
amount which was payable pursuant to under this section.

Sec. 3. EFFECTIVE DATE.

Sections 1 and 2 are effective July 1, 2005.