HF 2463

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 all required payments under
paragraphs (d) and (e).
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) 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. Teachers
Retirement Association plan membership commences as of January
1, 2006, for an applicable eligible person, and past salary and
service credit is granted from January 1, 1995, as specified in
this section, following receipt by the executive director of the
written application specified in this paragraph and receipt of
the payments specified in paragraphs (d) and (e). 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 amounts specified in
paragraphs (d) and (e). Coverage by the Teachers Retirement
Association is in lieu of coverage by the individual retirement
account plan.
new text end

new text begin (d) If an eligible person makes an election under paragraph
(c), the eligible person shall make, prior to December 31, 2005,
a contribution equal to the excess, if any, of the employee
contributions that the individual would have made if the
Teachers Retirement Association had provided coverage from
January 1, 1995, rather than the individual retirement account
plan. These additional contribution amounts shall include 8.5
percent annual compound interest computed from the date the
contribution would have been made if deducted from salary until
paid. The total amount to be paid under this paragraph shall be
determined by the executive director of the Teachers Retirement
Association and written notification of the amount required
under this paragraph should be transmitted to the eligible
individual.
new text end

new text begin (e) If payment is made under paragraph (d), the value of
the applicable eligible person's higher education individual
retirement account plan account shall be determined as of
December 31, 2005. The executive director of the Teachers
Retirement Association shall also compute that account's
compounded 1995 value. The compounded 1995 value is the value
of the applicable account as of January 1, 1995, plus 8.5
percent annual compound interest on that amount computed from
January 1, 1995, to December 31, 2005. Notwithstanding any law
to the contrary, if payment is made under paragraph (d), the
value of the applicable eligible person's individual retirement
account plan account as of December 31, 2005, minus the
compounded 1995 value, shall be transferred to the Teachers
Retirement Association on or before January 31, 2006.
new text end

new text begin (f) The Teachers Retirement Association shall determine the
full actuarial value imposed upon the Teachers Retirement
Association and the Public Employees Retirement Association by
this section, under procedures specified in Minnesota Statutes,
section 356.551, with recognition that this section may impose
additional liabilities on the Teachers Retirement Association,
the Public Employees Retirement Association, and any other plan
covered under Minnesota Statutes, section 356.30, in which an
eligible person had prior coverage. 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.
new text end

new text begin (g) From the total amount computed under paragraph (f), the
executive director of the Teachers Retirement Association shall
subtract the amounts received under paragraphs (d) and (e). The
Minnesota State Colleges and Universities system shall transmit
the remaining amount, if any, to the executive director of the
Teachers Retirement Association, which in turn 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 actuarial work under paragraph (f).
new text end

new text begin (h) Any payment amount required from the Minnesota State
Colleges and Universities system under paragraph (g) shall be
transmitted to the Teachers Retirement Association within one
month following receipt of amounts transmitted under paragraphs
(d) and (e), and following notification from the executive
director of the Teachers Retirement Association. If a payment
is required from the Minnesota State Colleges and Universities
system under paragraph (g) and payment is not made as required,
the executive director of the Teachers Retirement Association
must notify the commissioner of finance of this fact and the
commissioner of finance must order that amounts required under
paragraph (g) shall be deducted from appropriations or state aid
to the Minnesota State Colleges and Universities system and be
transmitted to the Teachers Retirement Association.
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