Minnesota Legislature
HF 3415
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Bill Text Versions
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| Introduction | Posted on 02/25/2008 |
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A bill for an act
relating to retirement; Teachers Retirement Association and first class city teacher
plans; providing for phased retirement from teaching; amending Minnesota
Statutes 2006, sections 354.05, subdivision 37; 354.44, subdivision 5; 354A.31,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 354.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 354.05, subdivision 37, is amended to read:
Subd. 37.
Termination of teaching service.
"Termination of teaching service"
means the withdrawal of a member from active teaching service by resignation or the
termination of the member's teaching contract by the employer. A member is not
considered to have terminated teaching service, if new text begin before the age of 62, and new text end before the
effective date of the termination or retirement, the member has entered into anew text begin writtennew text end
contract to resume teaching service with an employing unit covered by the provisions
of this chapter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 2.
Minnesota Statutes 2006, section 354.44, subdivision 5, is amended to read:
Subd. 5.
Resumption of teaching service after retirement.
(a) Any person who
retired under the provisions of this chapter and has thereafter resumed teaching in any
employer unit to which this chapter applies is eligible to continue to receive payments in
accordance with the annuity except that new text begin all or a portion of the new text end annuity payments must be
deleted text begin reduceddeleted text end new text begin deferred new text end during the calendar year immediately following any calendar year in
which the person's deleted text begin incomedeleted text end new text begin salary new text end from the teaching service is in an amount greater than deleted text begin the
annual maximum earnings allowable for that age for the continued receipt of full benefit
amounts monthly under the federal old age, survivors and disability insurance program
as set by the secretary of health and human services under United States Code, title 42,
section 403deleted text end new text begin $46,000new text end . The amount of the deleted text begin reduction must bedeleted text end new text begin annuity deferral is new text end one-half of
the new text begin salary new text end amount in excess of deleted text begin the applicable reemployment income maximum specified in
this subdivisiondeleted text end new text begin $46,000 new text end and must be deducted from the annuity payable for the calendar
year immediately following the calendar year in which the excess amount was earned. deleted text begin If
the person has not yet reached the minimum age for the receipt of Social Security benefits,
the maximum earnings for the person must be equal to the annual maximum earnings
allowable for the minimum age for the receipt of Social Security benefits.
deleted text end
(b) If the person is retired for only a fractional part of the calendar year during
the initial year of retirement, the maximum reemployment deleted text begin incomedeleted text end new text begin salary exempt from
triggering a deferral as new text end specified in this subdivision must be prorated for that calendar year.
(c) After a person has reached the Social Security deleted text begin fulldeleted text end new text begin normal new text end retirement age, no
deleted text begin reemployment income maximumdeleted text end new text begin deferral requirement new text end is applicable regardless of the
amount of deleted text begin incomedeleted text end new text begin salarynew text end .
(d) The amount of the retirement annuity deleted text begin reductiondeleted text end new text begin deferral new text end must be handled or
disposed of as provided in section 356.47.
(e) For the purpose of this subdivision, deleted text begin incomedeleted text end new text begin salary new text end from teaching service includes,
but is not limited to:
(1) all income for services performed as a consultant or an independent contractor
for an employer unit covered by the provisions of this chapter; and
(2) the greater of either the income received or an amount based on the rate paid
with respect to an administrative position, consultant, or independent contractor in an
employer unit with approximately the same number of pupils and at the same level as the
position occupied by the person who resumes teaching service.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 3.
new text begin
[354.444] PHASED RETIREMENT PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Authorization. new text end
new text begin
Notwithstanding any other provisions in this chapter,
an eligible person as specified in subdivision 2 is authorized to commence receipt of a
retirement annuity from the association and enter into an agreement to return to work.
This provision must be administered in accordance with the federal Internal Revenue
Code and applicable rulings.
new text end
new text begin Subd. 2. new text end
new text begin Eligibility. new text end
new text begin
An eligible person is a person who:
new text end
new text begin
(1) is a teacher as defined by section 354.05, subdivision 2, who is at least age 62;
new text end
new text begin
(2) enters into a written agreement with the employing unit to return to work; and
new text end
new text begin
(3) retires under the provisions of section 354.44 and begins to draw an annuity
from the Teacher's Retirement Association.
new text end
new text begin Subd. 3. new text end
new text begin Work agreement. new text end
new text begin
Participation, the amount of time worked, and
the duration of participation under this section must be mutually agreed upon by the
employing unit and the employee. The employing unit may require up to a one-year notice
of intent to participate in the program as a condition of participation. The employing unit
shall determine the time of year the employee shall work. Unless otherwise specified in
this section, the employing unit may not require a person to waive any rights under a
collective bargaining agreement as a condition of participation under this section.
new text end
new text begin Subd. 4. new text end
new text begin Exclusion. new text end
new text begin
For purposes of this section, "employing unit" does not include
the Minnesota State Colleges and Universities system.
new text end
new text begin Subd. 5. new text end
new text begin No service credit or contribution. new text end
new text begin
Notwithstanding any law to the
contrary, an eligible person under this section may not, based on employment to which
this section applies, contribute to or earn further service credit in the Teachers Retirement
Association.
new text end
new text begin Subd. 6. new text end
new text begin Annuity application procedure. new text end
new text begin
A participant in the program specified in
this section must apply for a retirement annuity under the application procedure specified
in section 354.44, subdivisions 3 and 4. A copy of the written agreement with the
employing unit must be included with the person's retirement annuity application. This
written agreement must include the termination date and reemployment date. The filing
of the initial executed agreement must occur before reemployment under the agreement
commences. The reemployment date must be after the member's accrual date.
new text end
new text begin Subd. 7. new text end
new text begin Annuity treatment. new text end
new text begin
For purposes of the annuity deferral under section
354.44, subdivision 5, an eligible person under this section is a reemployed annuitant.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 4.
Minnesota Statutes 2006, section 354A.31, subdivision 3, is amended to read:
Subd. 3.
Resumption of teaching after commencement of a retirement annuity.
(a) Any person who retired and is receiving a coordinated program retirement annuity
under the provisions of sections 354A.31 to 354A.41 or any person receiving a basic
program retirement annuity under the governing sections in the articles of incorporation
or bylaws and who has resumed teaching service for the school district in which the
teachers retirement fund association exists is entitled to continue to receive retirement
annuity payments, except that new text begin all or a portion of the new text end annuity payments must be deleted text begin reduceddeleted text end
new text begin deferred new text end during the calendar year immediately following the calendar year in which the
person's deleted text begin incomedeleted text end new text begin salary new text end from the teaching service is in an amount greater than deleted text begin the annual
maximum earnings allowable for that age for the continued receipt of full benefit amounts
monthly under the federal old age, survivors, and disability insurance program as set by
the secretary of health and human services under United States Code, title 42, section 403deleted text end new text begin
$46,000new text end . The amount of the deleted text begin reduction must bedeleted text end new text begin annuity deferral is new text end one-third the new text begin salary
new text end amount in excess of deleted text begin the applicable reemployment income maximum specified in this
subdivisiondeleted text end new text begin $46,000 new text end and must be deducted from the annuity payable for the calendar year
immediately following the calendar year in which the excess amount was earned. deleted text begin If the
person has not yet reached the minimum age for the receipt of Social Security benefits,
the maximum earnings for the person must be equal to the annual maximum earnings
allowable for the minimum age for the receipt of Social Security benefits.deleted text end
(b) If the person is retired for only a fractional part of the calendar year during
the initial year of retirement, the maximum reemployment deleted text begin incomedeleted text end new text begin salary exempt from
triggering a deferral as new text end specified in this subdivision must be prorated for that calendar year.
(c) After a person has reached the new text begin Social Security normal retirement new text end age deleted text begin of 70deleted text end , no
deleted text begin reemployment income maximumdeleted text end new text begin deferral requirement new text end is applicable regardless of the
amount of any compensation received for teaching service for the school district in which
the teachers retirement fund association exists.
(d) The amount of the retirement annuity deleted text begin reductiondeleted text end new text begin deferral new text end must be handled or
disposed of as provided in section 356.47.
(e) For the purpose of this subdivision, deleted text begin incomedeleted text end new text begin salary new text end from teaching service
includes: (i) all income for services performed as a consultant or independent contractor;
or income resulting from working with the school district in any capacity; and (ii) the
greater of either the income received or an amount based on the rate paid with respect to
an administrative position, consultant, or independent contractor in the school district in
which the teachers retirement fund association exists and at the same level as the position
occupied by the person who resumes teaching service.
(f) On or before February 15 of each year, each applicable employing unit shall
report to the teachers retirement fund association the amount of postretirement deleted text begin incomedeleted text end
new text begin salary new text end as defined in this subdivision, earned as a teacher, consultant, or independent
contractor during the previous calendar year by each retiree of the teachers retirement
fund association for teaching service performed after retirement. The report must be in
a format approved by the executive secretary or director.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end
Sec. 5. new text begin BYLAW REVISION AUTHORIZATION.
new text end
new text begin
Consistent with section 4 and Minnesota Statutes, section 354A.12, subdivision 4,
the St. Paul Teachers Retirement Fund Association is authorized to revise its bylaws or
articles of incorporation to specify that a person receiving a basic program retirement
annuity under the governing sections in the articles of incorporation or bylaws who has
resumed teaching service for the school district is entitled to continue receiving retirement
annuity payments, except that all or a portion of the annuity payments must be deferred
during the calendar year immediately following the calendar year in which the person's
salary from the reemployment exceeds $46,000. The amount of the annuity deferral is
one-third of the salary amount in excess of $46,000. After a person has reached age 70,
the deferral requirement no longer applies. Any deferral amounts must be treated as
specified in Minnesota Statutes, section 356.47.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2008.
new text end