HF 2462

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

A bill for an act
relating to retirement; Teachers Retirement
Association and the individual retirement account
plan; correcting a plan election problem; authorizing
eligible Minnesota State Colleges and Universities
system employees to elect Teachers Retirement
Association coverage and receive retroactive coverage.

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

Section 1. new text begin TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE
TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF PAST
SERVICE CREDIT.
new text end

new text begin (a) An eligible person described in paragraph (b) is
authorized to become a coordinated member of the Teachers
Retirement Association, and to purchase service and salary
credit in the Teachers Retirement Association coordinated plan
retroactive from January 1, 1995, upon making an election under
paragraph (c) and upon making the required payment under
paragraph (d).
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on September 10, 1958;
new text end

new text begin (2) has prior employment covered by the Public Employees
Retirement Association general plan;
new text end

new text begin (3) is the director of student support services at North
Hennepin Community College;
new text end

new text begin (4) began working at North Hennepin Community College on
February 3, 1992, with coverage for that service by the higher
education individual retirement account plan; and
new text end

new text begin (5) was not offered an election of Teachers Retirement
Association coverage, as required under Laws 1994, chapter 508,
article 1, section 10.
new text end

new text begin (c)(1) To be eligible for coverage by the Teachers
Retirement Association, an eligible person must submit a written
application to the executive director of the Teachers Retirement
Association on a form provided by the Teachers Retirement
Association. The application must include all documentation of
the applicability of this section and any other relevant
information that the executive director may require. Following
receipt by the executive director of the written application
specified in this paragraph and receipt of the payment specified
in paragraph (d):
new text end

new text begin (i) Teachers Retirement Association plan membership
commences as of January 1, 2006;
new text end

new text begin (ii) individual retirement account plan coverage terminates
for the applicable eligible person; and
new text end

new text begin (iii) past salary and service credit is granted from
January 1, 1995, as specified in this section.
new text end

new text begin (2) The authority granted by this section is voided if the
applicable eligible individual terminates from Minnesota State
Colleges and Universities system employment prior to receipt by
the executive director of the Teachers Retirement Association of
the application specified in this paragraph and the amount
specified in paragraph (d).
new text end

new text begin (d) To receive the treatment specified in this section, an
eligible person shall make payment of the amount determined
under Minnesota Statutes, section 356.551, to the executive
director of the Teachers Retirement Association for the period
from January 1, 1995. The individual is authorized to cover the
payment using assets transferred from the eligible individual's
individual retirement account plan account, or from any other
sources permitted by law. The total amount to be paid under
this paragraph shall be determined by the executive director of
the Teachers Retirement Association. Written notification of
the amount required under this paragraph should be transmitted
to the eligible individual. The Teachers Retirement Association
is authorized to utilize the actuary jointly retained under
Minnesota Statutes, section 356.214, to make the computations
required under this paragraph. The Teachers Retirement
Association shall allocate the amount received under this
paragraph between the Teachers Retirement Association and the
Public Employees Retirement Association, or other applicable
pension fund, as indicated by the full actuarial cost
determination required under this paragraph.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end