HF 3422

as introduced - 89th Legislature (2015 - 2016) Posted on 03/21/2016 01:54pm

A bill for an act
relating to retirement; Public Employees Retirement Association; Teachers
Retirement Association; higher education individual retirement account plan;
authorizing an eligible Minnesota State Colleges and Universities system
employee to repay a refund of member contributions and to elect prospective and
retroactive Teachers Retirement Association coverage.

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

Section 1. new text begin TRA COVERAGE ELECTION AND PERA REFUND REPAYMENT
AUTHORITY FOR CERTAIN MNSCU EMPLOYEE.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapter 353 or 354B,
to the contrary, an eligible person described in paragraph (b) is eligible to become a
coordinated member of the Teachers Retirement Association and to purchase service
and salary credit in the Teachers Retirement Association coordinated plan retroactively
from July 1, 2001, upon repaying a member contribution refund taken from the general
employees retirement plan of the Public Employees Retirement Association under
paragraph (c), upon making an election under paragraph (e), and upon making all required
payments under paragraphs (f) and (g).
new text end

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

new text begin (1) was born April 4, 1956;
new text end

new text begin (2) was employed by a governmental subdivision in 1995, with retirement coverage
in the general employees retirement plan of the Public Employees Retirement Association,
for which a refund of member contributions and interest was taken before 2001;
new text end

new text begin (3) was employed by St. Cloud State University in the late 1990s, with retirement
coverage in the general state employees retirement plan of the Minnesota State Retirement
System;
new text end

new text begin (4) was hired as an academic advisor by St. Cloud State University on July 1, 2001,
with retirement coverage in the higher education individual retirement account plan; and
new text end

new text begin (5) was not informed of the option to elect Teachers Retirement Association
coverage in the coverage election authorized by Minnesota Statutes 2001, section
354B.21, so remained in the higher education individual retirement account plan.
new text end

new text begin (c) The refund repayment required by Minnesota Statutes, section 356.551,
subdivision 1, paragraph (c), must be calculated under Minnesota Statutes, section 353.35,
subdivision 1, paragraph (c).
new text end

new text begin (d) Authority to repay a refund under this section expires January 1, 2017.
new text end

new text begin (e) 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 after the date of the retirement coverage
election under this section and past salary and service credit is granted for past Minnesota
State Colleges and Universities system employment from July 1, 2001, until the executive
director receives the written application specified in this paragraph and receipts of the
payments specified in paragraphs (c), (f), and (g). Coverage by the Teachers Retirement
Association is in lieu of coverage by the individual retirement account plan.
new text end

new text begin (f) If the eligible person makes the retirement coverage election under paragraph (e),
the eligible person's member contributions to the higher education individual retirement
account plan must be transferred to the Teachers Retirement Association, with any earned
investment returns on those contributions. If the transferred member contributions and
investment earnings are less than the calculated amount of the member contributions
that the eligible person would have made to the Teachers Retirement Association on the
eligible person's compensation from the Minnesota State Colleges and Universities system
for the period from July 1, 2001, to the date of the retirement coverage election, if the
person had been covered by the Teachers Retirement Association during the period, plus
annual compound interest at the rate of 8.5 percent, then the eligible person shall pay the
balance of that calculated member contribution obligation within 30 days of the retirement
coverage election.
new text end

new text begin (g) Upon the transfer of the equivalent member contribution amount and any
additional payment under paragraph (f), the balance of the eligible person's higher
education individual retirement account plan account must be transferred to the Teachers
Retirement Association. If the amounts under paragraph (f) and the individual retirement
account plan balance under this paragraph are less than the prior service credit purchase
payment amount calculated under Minnesota Statutes, section 356.551, the Minnesota
State Colleges and Universities system shall pay the difference within 60 days of the
retirement election date.
new text end

new text begin (h) The authority to make a retirement coverage election under this section expires
January 1, 2017.
new text end