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HF 3368

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

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Introduction Posted on 02/05/1998

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to retirement; teachers retirement 
  1.3             association; authorizing the purchase of service 
  1.4             credit for a sabbatical leave by certain teachers. 
  1.8      (a) Notwithstanding any provision of Minnesota Statutes, 
  1.9   chapter 354, to the contrary, an eligible teacher as defined in 
  1.10  paragraph (b) is entitled to purchase allowable and formula 
  1.11  service credit from the teachers retirement association for the 
  1.12  uncredited portion of a sabbatical leave during the 1976-1977 
  1.13  school year under paragraph (c). 
  1.14     (b) An eligible teacher is a person who was born on 
  1.15  September 10, 1942, became a member of the teachers retirement 
  1.16  association on October 31, 1968, is employed by independent 
  1.17  school district No. 16, Spring Lake Park, and will qualify for 
  1.18  an early normal retirement annuity under the "rule of 90" on 
  1.19  September 16, 2000. 
  1.20     (c) An eligible teacher may purchase allowable and formula 
  1.21  service credit from the teachers retirement association under 
  1.22  Minnesota Statutes, chapter 354, by paying an amount equal to 
  1.23  the actuarial present value, on the date of payment, as 
  1.24  calculated by the actuary retained by the legislative commission 
  1.25  on pensions and retirement, of the amount of the additional 
  2.1   retirement annuity obtained by the acquisition of the additional 
  2.2   service credit in this section.  Calculation of this amount must 
  2.3   be made using the preretirement interest rate applicable to the 
  2.4   teachers retirement association specified in Minnesota Statutes, 
  2.5   section 356.215, subdivision 4d, and the mortality table adopted 
  2.6   for the pension plan.  The calculation must assume continuous 
  2.7   future service in the association until, and retirement at, the 
  2.8   age at which the minimum requirements of the fund for normal 
  2.9   retirement or retirement with an annuity unreduced for 
  2.10  retirement at an early age, including Minnesota Statutes, 
  2.11  section 356.30, are met with the additional service credit 
  2.12  purchased.  The calculation must also assume a full-time 
  2.13  equivalent salary, or actual salary, whichever is greater, and a 
  2.14  future salary history that includes annual salary increases at 
  2.15  the applicable salary increase rate for the plan specified in 
  2.16  Minnesota Statutes, section 356.215, subdivision 4d.  Payment 
  2.17  must be made in one lump sum before July 1, 1999.  Payment of 
  2.18  the amount calculated under this subdivision must be made by the 
  2.19  eligible teacher.  However, the school district that granted the 
  2.20  sabbatical leave, may, at its discretion, pay all or any portion 
  2.21  of the payment amount that exceeds an amount equal to the 
  2.22  employee contribution rates in effect during the period or 
  2.23  periods of prior service applied to the actual salary rates in 
  2.24  effect during the period or periods of prior service, plus 
  2.25  interest at the rate of 8-1/2 percent a year compounded annually 
  2.26  from the date on which the contributions would otherwise have 
  2.27  been made to the date on which the payment is made.  If the 
  2.28  school district agrees to payments under this paragraph, the 
  2.29  eligible teacher must make the employee payments required under 
  2.30  this paragraph before July 1, 1999.  If that employee payment is 
  2.31  made, the school district payment under this paragraph must be 
  2.32  remitted to the executive director of the teachers retirement 
  2.33  association within 60 days of receipt by the executive director 
  2.34  of the employee payments specified under this paragraph. 
  2.35     (d) An eligible teacher must provide any relevant 
  2.36  documentation required by the executive director to determine 
  3.1   eligibility for the prior service credit under this section. 
  3.2      (e) Service credit for the purchase period must be granted 
  3.3   by the teachers retirement association to the account of the 
  3.4   eligible teacher upon receipt of the purchase payment amount 
  3.5   specified in paragraph (c). 
  3.6      Sec. 2.  [EFFECTIVE DATE.] 
  3.7      Section 1 is effective on the day following final enactment.