HF 87

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minneapolis teachers 
  1.3             retirement fund association; authorizing the purchase 
  1.4             of service credit for a period of omitted 
  1.5             contributions caused by school district error; 
  1.6             requiring a school district contribution. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [MINNEAPOLIS TEACHERS RETIREMENT FUND 
  1.9   ASSOCIATION; SERVICE CREDIT PURCHASE AUTHORIZATION.] 
  1.10     (a) Notwithstanding any provision of law to the contrary, 
  1.11  an eligible person described in paragraph (b) is authorized to 
  1.12  purchase allowable service credit from the Minneapolis teachers 
  1.13  retirement fund association for the period described in 
  1.14  paragraph (c). 
  1.15     (b) An eligible person is a person who: 
  1.16     (1) was born on July 21, 1941; 
  1.17     (2) initially was employed as a teacher by independent 
  1.18  school district No. 281, Robbinsdale, in December 1962; 
  1.19     (3) began employment as a teacher by special school 
  1.20  district No. 1, Minneapolis, in August 1985; 
  1.21     (4) currently is a special education teacher at the Webster 
  1.22  open school; and 
  1.23     (5) had no retirement contributions or social security 
  1.24  contributions withheld from compensation by special school 
  1.25  district No. 1 for the 1985-1986 school year. 
  1.26     (c) The allowable service credit purchase period is the 
  2.1   1985-1986 school year. 
  2.2      (d) To purchase the allowable service credit, the eligible 
  2.3   person must pay an amount equal to the employee contribution 
  2.4   rate or rates in effect during the 1985-1986 school year applied 
  2.5   to the actual salary in effect during that period. 
  2.6      (e) Upon receipt of the payment by the eligible person 
  2.7   under paragraph (d), the executive director of the Minneapolis 
  2.8   teachers retirement fund association shall notify the 
  2.9   superintendent of special school district No. 1 of that fact.  
  2.10  Within 30 days of that notification, special school district No. 
  2.11  1 shall make the following payments to the Minneapolis teachers 
  2.12  retirement fund association: 
  2.13     (1) the balance of the service credit purchase payment 
  2.14  amount under Minnesota Statutes, section 356.55 or 356.551, 
  2.15  whichever is in effect, that is not paid by the eligible person 
  2.16  under paragraph (d); and 
  2.17     (2) the present value of any social security system old age 
  2.18  primary insurance amount lost by the eligible person by virtue 
  2.19  of the unpaid 1985-1986 Federal Insurance Contribution Act 
  2.20  contributions as determined by the consulting actuary retained 
  2.21  by the legislative commission on pensions and retirement as of 
  2.22  the first of the month next following the date of enactment, 
  2.23  based on the age of the eligible person and the salary history 
  2.24  of the eligible person as of that date, the future salary 
  2.25  increase and mortality assumptions of the Minneapolis teachers 
  2.26  retirement fund association, an interest rate assumption of 8.5 
  2.27  percent, and a future Consumer Price Index increase assumption 
  2.28  of three percent. 
  2.29     (f) The amount required under paragraph (e), clause (1), 
  2.30  must be deposited in and credited to the Minneapolis teachers 
  2.31  retirement fund.  The amount required under paragraph (e), 
  2.32  clause (2), must be deposited in a separate account in the 
  2.33  Minneapolis teachers retirement fund and is payable, with 
  2.34  interest at the rate of 8.5 percent, compounded annually from 
  2.35  the date of enactment to the date of payment, in a lump sum, 
  2.36  upon the commencement of social security system old age primary 
  3.1   insurance benefits by the eligible person. 
  3.2      (g) If special school district No. 1 does not make the 
  3.3   payments required by paragraph (e) in a timely fashion, the 
  3.4   executive director of the Minneapolis teachers retirement fund 
  3.5   association shall notify the commissioner of finance, who then 
  3.6   shall deduct the required amounts from any state education aid 
  3.7   payable to the school district, plus interest at the rate of one 
  3.8   percent per month or part of a month that has elapsed since the 
  3.9   date on which the eligible person made payment under paragraph 
  3.10  (d). 
  3.11     (h) The Minneapolis teachers retirement fund association 
  3.12  must pay the cost of any actuarial calculations required under 
  3.13  this section. 
  3.14     (i) The eligible person must provide all relevant 
  3.15  documentation of the applicability of the requirements set forth 
  3.16  in paragraph (b) and any other applicable information that the 
  3.17  executive director of the Minneapolis teachers retirement fund 
  3.18  association may request.  The eligible person also must provide 
  3.19  written authorization for the Minneapolis teachers retirement 
  3.20  fund association and the actuary retained by the legislative 
  3.21  commission on pensions and retirement to obtain any necessary 
  3.22  information about the record of the eligible person in the 
  3.23  federal Old Age, Survivors, and Disability Insurance Program. 
  3.24     (j) Allowable service credit for the purchase period must 
  3.25  be granted by the Minneapolis teachers retirement fund 
  3.26  association to the eligible person upon the receipt of the 
  3.27  payment amounts specified in paragraphs (d) and (e), clause (1). 
  3.28     (k) The prior service credit purchase authority expires on 
  3.29  July 1, 2000, or on the date of the termination of active 
  3.30  teaching service with special school district No. 1 by the 
  3.31  eligible person, whichever occurs earlier. 
  3.32     Sec. 2.  [EFFECTIVE DATE.] 
  3.33     Section 1 is effective on the day following final enactment.