HF 3202

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; teachers retirement 
  1.3             association; allowing certain Winona state university 
  1.4             teaching personnel to purchase service credit for an 
  1.5             extended leave of absence unreported by the university 
  1.6             in a timely fashion. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
  1.9   SERVICE CREDIT FOR UNREPORTED WINONA STATE UNIVERSITY EXTENDED 
  1.10  LEAVE OF ABSENCE.] 
  1.11     (a) Notwithstanding any provision of Minnesota Statutes, 
  1.12  section 354.094, to the contrary, an eligible person described 
  1.13  in paragraph (b) is entitled to purchase one year of allowable 
  1.14  and formula service credit from the teachers retirement 
  1.15  association for an extended leave of absence during the 
  1.16  1996-1997 school year upon the payment of the purchase amount 
  1.17  determined under paragraph (c). 
  1.18     (b) An eligible person for purposes of paragraph (a) is a 
  1.19  person who was born on September 5, 1943, was initially hired by 
  1.20  Winona state university on September 4, 1979, was granted an 
  1.21  extended leave of absence by Winona state university on March 
  1.22  18, 1996, and was unable to make contributions under Minnesota 
  1.23  Statutes, section 354.094, subdivision 1, because of the failure 
  1.24  of Winona state university to timely submit the leave of absence 
  1.25  report to the teachers retirement association. 
  1.26     (c) The purchase payment amount is an amount equal to the 
  2.1   actuarial present value, on the date of payment, as calculated 
  2.2   by the actuary retained by the legislative commission on 
  2.3   pensions and retirement, of the amount of the additional 
  2.4   retirement annuity obtained by the acquisition of the additional 
  2.5   service credit in this section.  Calculation of this amount must 
  2.6   be made using the preretirement interest rate applicable to the 
  2.7   teachers retirement association specified in Minnesota Statutes, 
  2.8   section 356.215, subdivision 4d, and the mortality table adopted 
  2.9   for the pension plan.  The calculation must assume continuous 
  2.10  future service in the association until, and retirement at, the 
  2.11  age at which the minimum requirements of the fund for normal 
  2.12  retirement or retirement with an annuity unreduced for 
  2.13  retirement at an early age, including Minnesota Statutes, 
  2.14  section 356.30, are met with the additional service credit 
  2.15  purchased.  The calculation must also assume a full-time 
  2.16  equivalent salary, or actual salary, whichever is greater, and a 
  2.17  future salary history that includes annual salary increases at 
  2.18  the applicable salary increase rate for the plan specified in 
  2.19  Minnesota Statutes, section 356.215, subdivision 4d.  Payment 
  2.20  must be made before July 1, 1999. 
  2.21     (d) Of the total purchase payment amount, the eligible 
  2.22  person must pay an amount equal to the employee contribution 
  2.23  rates in effect during the period or periods of prior service 
  2.24  applied to the actual salary rates in effect during the period 
  2.25  of prior service, plus interest at the rate of 8-1/2 percent a 
  2.26  year compounded annually from the date on which the 
  2.27  contributions would otherwise have been made to the date on 
  2.28  which the payment is made.  The payment by the eligible person 
  2.29  must be made by July 1, 1998. 
  2.30     (e) If the eligible person makes timely payment of the 
  2.31  amount required under paragraph (d), Winona state university 
  2.32  must pay the difference between the amount determined under 
  2.33  paragraph (c) and the amount determined under paragraph (d).  
  2.34  The payment by Winona state university must be paid by January 
  2.35  1, 2001.  Payments made after July 1, 1998, are payable with 
  2.36  interest at a compound annual rate of 8-1/2 percent from July 1, 
  3.1   1998, until the payment is made. 
  3.2      (f) The eligible person must provide any relevant 
  3.3   documentation required by the executive director to determine 
  3.4   eligibility for the prior service credit under this section. 
  3.5      (g) Service credit for the purchase period must be granted 
  3.6   by the teachers retirement association to the eligible person 
  3.7   upon receipt of the purchase payment amount specified in 
  3.8   paragraph (d). 
  3.9      Sec. 2.  [EFFECTIVE DATE.] 
  3.10     Section 1 is effective on the day following final enactment.