SF 125

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Duluth teachers retirement 
  1.3             fund association; authorizing an interim military 
  1.4             service credit purchase by certain teachers at full 
  1.5             actuarial value. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [MILITARY SERVICE CREDIT PURCHASE; DULUTH 
  1.8   TEACHERS RETIREMENT FUND ASSOCIATION.] 
  1.9      Subdivision 1.  [ELIGIBLE TEACHER.] A teacher eligible to 
  1.10  purchase a period of interim military service credit under 
  1.11  subdivision 2 is a person who: 
  1.12     (1) was born August 12, 1946; 
  1.13     (2) was initially employed as a teacher by independent 
  1.14  school district No. 709, Duluth, in September 1969; 
  1.15     (3) was inducted into the United States Army in June 1971, 
  1.16  and was discharged in March 1973; and 
  1.17     (4) was reemployed as a teacher by independent school 
  1.18  district No. 709, Duluth, in September 1973. 
  1.19     Subd. 2.  [SERVICE CREDIT PURCHASE.] (a) Notwithstanding 
  1.20  any provision of law, articles of incorporation or bylaws to the 
  1.21  contrary, an eligible teacher described in subdivision 1 may 
  1.22  purchase two years of allowable service credit from the Duluth 
  1.23  teachers retirement fund association. 
  1.24     (b) The purchase payment amount is an amount equal to the 
  1.25  actuarial present value, on the date of payment, as calculated 
  2.1   by the actuary retained by the legislative commission on 
  2.2   pensions and retirement, of the amount of the additional 
  2.3   retirement annuity obtained by the acquisition of the purchased 
  2.4   military service credit.  Calculation of this amount must be 
  2.5   made using the preretirement interest rate applicable to the 
  2.6   Duluth teachers retirement fund association specified in 
  2.7   Minnesota Statutes, section 356.215, subdivision 4d, and the 
  2.8   mortality table adopted for the pension plan. 
  2.9      The calculation must assume continuous future service in 
  2.10  the association until, and retirement at, the age at which the 
  2.11  minimum requirements of the fund for normal retirement or 
  2.12  retirement with an annuity unreduced for retirement at an early 
  2.13  age, including Minnesota Statutes, section 356.30, are met with 
  2.14  the additional service credit purchased.  The calculation must 
  2.15  also assume a full-time equivalent salary, or actual salary, 
  2.16  whichever is greater, and a future salary history that includes 
  2.17  annual salary increases at the applicable salary increase rate 
  2.18  for the plan specified in Minnesota Statutes, section 356.215, 
  2.19  subdivision 4d. 
  2.20     (c) Payment must be made in one lump sum before July 1, 
  2.21  1998. 
  2.22     (d) Payment of the amount calculated under this subdivision 
  2.23  must be made by the eligible teacher.  However, independent 
  2.24  school district No. 709, Duluth, may, at its discretion, pay all 
  2.25  or any portion of the payment amount that exceeds an amount 
  2.26  equal to the employee contribution rates in effect during the 
  2.27  period or periods of prior service applied to the actual salary 
  2.28  rates in effect during the period or periods of prior service, 
  2.29  plus interest at the rate of 8-1/2 percent a year compounded 
  2.30  annually from the date on which the contributions would 
  2.31  otherwise have been made to the date on which the payment is 
  2.32  made.  If the school district agrees to payments under this 
  2.33  paragraph, the eligible teacher must make the employee payments 
  2.34  required under this paragraph before July 1, 1998.  If that 
  2.35  employee payment is made, the school district payment under this 
  2.36  paragraph must be remitted to the executive secretary of the 
  3.1   Duluth teachers retirement fund association within 60 days of 
  3.2   receipt by the executive secretary of the employee payments 
  3.3   specified under this paragraph. 
  3.4      Subd. 3.  [SERVICE CREDIT GRANT.] Service credit for the 
  3.5   purchase period must be granted by the Duluth teachers 
  3.6   retirement fund association to the account of the eligible 
  3.7   teacher upon receipt of the purchase payment amount specified in 
  3.8   subdivision 2. 
  3.9      Sec. 2.  [EFFECTIVE DATE.] 
  3.10     Section 1 is effective on the day following final enactment.