SF 93

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; teachers retirement 
  1.3             association; authorizing certain retired teachers to 
  1.4             waive their current retirement annuities, to resume 
  1.5             active pension plan coverage, and to qualify for a 
  1.6             recomputed future retirement annuity. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [TEACHERS RETIREMENT ASSOCIATION; ANNUITY 
  1.9   SUSPENSION, MEMBERSHIP RESUMPTION, AND RECOMPUTED BENEFIT.] 
  1.10     (a) Notwithstanding any provision of Minnesota Statutes, 
  1.11  chapter 354 or 356, to the contrary, a person described in 
  1.12  paragraph (b) is entitled to: 
  1.13     (1) waive further receipt of the person's retirement 
  1.14  annuity as provided in paragraph (c); 
  1.15     (2) resume active membership in the teachers retirement 
  1.16  association as provided in paragraph (d); and 
  1.17     (3) receive, upon subsequent retirement from employment by 
  1.18  the Blackduck public school system, a recomputed retirement 
  1.19  annuity from the teachers retirement association as provided in 
  1.20  paragraph (e). 
  1.21     (b) An eligible person under paragraph (a) is a person who: 
  1.22     (1) rendered more than 25 years of Minnesota public school 
  1.23  teaching service before retirement; 
  1.24     (2) retired from the teachers retirement association on 
  1.25  October 16, 1996; and 
  1.26     (3) was reemployed as the superintendent of the Blackduck 
  2.1   public school system in August, 1997. 
  2.2      (c) An eligible person may waive further receipt of the 
  2.3   person's retirement annuity from the teachers retirement 
  2.4   association.  The waiver must be in writing.  If the person had 
  2.5   selected an optional annuity form, the beneficiary or 
  2.6   beneficiaries of that optional annuity form also must approve, 
  2.7   in writing, the waiver before the waiver becomes valid.  The 
  2.8   waiver is effective for the first day of the month next 
  2.9   following the receipt of a valid waiver by the executive 
  2.10  director of the teachers retirement association unless the 
  2.11  person repays any previously paid retirement annuity amount, 
  2.12  plus interest at a compound annual rate of 8.5 percent from the 
  2.13  date of the annuity payment to the day of repayment.  If prior 
  2.14  retirement annuity amounts and interest are repaid, the waiver 
  2.15  is effective as of October 16, 1996. 
  2.16     (d) An eligible person may resume active membership in the 
  2.17  teachers retirement association as of the effective date of the 
  2.18  waiver under paragraph (c), but not earlier than August 15, 
  2.19  1997.  If the active membership resumption effective date 
  2.20  includes a retroactive period, the eligible person must make the 
  2.21  equivalent member contributions on the actual salary amount paid 
  2.22  for the retroactive period, plus interest at a compound annual 
  2.23  rate of 8.5 percent from the date that the member contributions 
  2.24  would have been payable to the date of payment.  Also, if the 
  2.25  active membership resumption effective date includes a 
  2.26  retroactive period, the Blackduck public school system must make 
  2.27  the equivalent employer and employer additional contributions on 
  2.28  the actual salary paid for the retroactive period, plus interest 
  2.29  as required for the member contribution.  Allowable and formula 
  2.30  service credit for the retroactive period may not be granted 
  2.31  until the full equivalent contributions, plus interest, are paid.
  2.32     (e) The eligible person is entitled to receive a recomputed 
  2.33  retirement annuity from the teachers retirement association upon 
  2.34  the termination of employment by the Blackduck public school 
  2.35  system, if otherwise qualified.  The person is not entitled to 
  2.36  any deferred annuities augmentation for the annuity waiver 
  3.1   period under paragraph (c) and the retirement annuity must be 
  3.2   computed based on the eligible person's highest five successive 
  3.3   years' average salary under the teachers retirement association 
  3.4   law in effect on the date of termination of Blackduck public 
  3.5   school system employment.  The eligible person may elect an 
  3.6   optional retirement annuity under the applicable provision of 
  3.7   law. 
  3.8      Sec. 2.  [EFFECTIVE DATE.] 
  3.9      Section 1 is effective on the day following final enactment.