as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
Engrossments | ||
---|---|---|
Introduction | Posted on 02/21/2000 |
1.1 A bill for an act 1.2 relating to retirement; changing the definition of 1.3 "normal retirement age" for the teachers retirement 1.4 association; modifying the computation of the 1.5 retirement annuity formula for the teachers retirement 1.6 association; amending Minnesota Statutes 1998, 1.7 sections 354.05, subdivision 38; and 354.44, 1.8 subdivision 6. 1.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10 Section 1. Minnesota Statutes 1998, section 354.05, 1.11 subdivision 38, is amended to read: 1.12 Subd. 38. [NORMAL RETIREMENT AGE.] "Normal retirement age" 1.13 means age 65 for a person whofirst becameis a member of the 1.14 association or who has service credit as a member of the 1.15 association and who is a member of a pension fund listed in 1.16 section 356.30, subdivision 3, before July 1, 1989. For a1.17person who first becomes a member of the association after June1.1830, 1989, normal retirement age means the higher of age 65 or1.19"retirement age," as defined in United States Code, title 42,1.20section 416(l), as amended, but not to exceed age 66. 1.21 Sec. 2. Minnesota Statutes 1998, section 354.44, 1.22 subdivision 6, is amended to read: 1.23 Subd. 6. [COMPUTATION OF FORMULA PROGRAM RETIREMENT 1.24 ANNUITY.](1) The formula retirement annuity must be computed in1.25accordance with the applicable provisions of the formulas stated1.26in clause (2) or (4) on the basis of each member's average1.27salary for the period of the member's formula service credit.2.1 (a) For all years of formula service credit, "average salary," 2.2 for the purpose of determining the member's retirement annuity, 2.3 means the average salary upon which contributions were made and 2.4 upon which payments were made to increase the salary limitation 2.5 provided in Minnesota Statutes 1971, section 354.511, for the 2.6 highest five successive years of formula service credit 2.7 provided, however, that such "average salary" shall not include 2.8 any more than the equivalent of 60 monthly salary payments. 2.9 Average salary must be based upon all years of formula service 2.10 credit if this service credit is less than five years. 2.11(2) This clause, in conjunction with clause (3), applies to2.12a person who first became a member of the association or a2.13member of a pension fund listed in section 356.30, subdivision2.143, before July 1, 1989, unless clause (4), in conjunction with2.15clause (5), produces a higher annuity amount, in which case2.16clause (4) applies.(b) The average salary as defined inclause2.17(1)paragraph (a), multiplied by thefollowing percentages2.18 percentage specified in section 356.19, subdivision 2, per year 2.19 of formula service credit shall determine the amount of the 2.20 annuity to which the coordinated memberqualifying thereforis 2.21 entitled:2.22Coordinated MemberBasic Member2.23Each year of servicethe percentthe percent2.24during first tenspecified inspecified in2.25section 356.19,section 356.19,2.26subdivision 1,subdivision 3,2.27per yearper year2.28Each year of servicethe percentthe percent2.29thereafterspecified inspecified in2.30section 356.19,section 356.19,2.31subdivision 2,subdivision 4,2.32per yearper year2.33(3)(i) This clause applies only to a person who first2.34became a member of the association or a member of a pension fund2.35listed in section 356.30, subdivision 3, before July 1, 1989,2.36and whose annuity is higher when calculated under clause (2), in3.1conjunction with this clause than when calculated under clause3.2(4), in conjunction with clause (5).unless further restricted 3.3 in this subdivision. If the member is a basic plan member, the 3.4 average salary, as defined in paragraph (a), multiplied by the 3.5 percentage specified in section 356.19, subdivision 4, per year 3.6 of formula service credit shall determine the amount of the 3.7 annuity to which the basic member is entitled, unless further 3.8 restricted in this subdivision. 3.9(ii) Where any(c) If a member retires prior to normal 3.10 retirement age under a formula annuity, the member shall be paid 3.11 a retirement annuity in an amount equal to the normal annuity 3.12 provided inclause (2)paragraph (b) reduced by one-quarter of 3.13 one percent for each month that the member is under normal 3.14 retirement age at the time of retirement except that for any 3.15 member who has 30 or more years of allowable service credit, the 3.16 reduction shall be applied only for each month that the member 3.17 is under age 62. 3.18(iii)(d) Any member whose attained age plus credited 3.19 allowable service totals 90 years is entitled, upon application, 3.20 to a retirement annuity in an amount equal to the normal annuity 3.21provided in clause (2)under paragraph (b), without any 3.22 reductionby reason ofdue to early retirement. 3.23(4) This clause applies to a member who has become at least3.2455 years old and first became a member of the association after3.25June 30, 1989, and to any other member who has become at least3.2655 years old and whose annuity amount when calculated under this3.27clause and in conjunction with clause (5), is higher than it is3.28when calculated under clause (2), in conjunction with clause (3).3.29The average salary, as defined in clause (1) multiplied by the3.30percent specified by section 356.19, subdivision 4, for each3.31year of service for a basic member and by the percent specified3.32in section 356.19, subdivision 2, for each year of service for a3.33coordinated member shall determine the amount of the retirement3.34annuity to which the member is entitled.3.35(5) This clause applies to a person who has become at least3.3655 years old and first becomes a member of the association after4.1June 30, 1989, and to any other member who has become at least4.255 years old and whose annuity is higher when calculated under4.3clause (4) in conjunction with this clause than when calculated4.4under clause (2), in conjunction with clause (3). An employee4.5who retires under the formula annuity before the normal4.6retirement age shall be paid the normal annuity provided in4.7clause (4) reduced so that the reduced annuity is the actuarial4.8equivalent of the annuity that would be payable to the employee4.9if the employee deferred receipt of the annuity and the annuity4.10amount were augmented at an annual rate of three percent4.11compounded annually from the day the annuity begins to accrue4.12until the normal retirement age.