SF 302

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; authorizing purchase of prior 
  1.3             service credit in the teachers retirement association. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [INDEPENDENT SCHOOL DISTRICT NO. 276, 
  1.6   MINNETONKA, TEACHER.] 
  1.7      (a) Notwithstanding Minnesota Statutes, section 354.095, an 
  1.8   eligible person described in paragraph (b) is entitled to 
  1.9   purchase allowable service credit in the teachers retirement 
  1.10  association for the period described in paragraph (c) by paying 
  1.11  the amount specified in Minnesota Statutes, section 356.55, 
  1.12  subdivision 2. 
  1.13     (b) An eligible person is a person who: 
  1.14     (1) was on medical leave for a period that includes 1994 
  1.15  and 1995; 
  1.16     (2) was employed by independent school district No. 276, 
  1.17  Minnetonka, during the period that the medical leave was taken; 
  1.18  and 
  1.19     (3) due to the failure of the school district to file 
  1.20  certain papers was not able to purchase service credit for the 
  1.21  1994 and 1995 portion of the medical leave. 
  1.22     (c) The period for service credit purchase is 1994 and 1995.
  1.23     (d) Notwithstanding Minnesota Statutes, section 356.55, 
  1.24  subdivision 5, the eligible person must pay, on or before 
  2.1   September 1, 1999, an amount equal to the employee contribution 
  2.2   rate or rates in effect during the prior service period applied 
  2.3   to the actual salary rates in effect during the prior service 
  2.4   period, plus annual compound interest at the rate of 8.5 percent 
  2.5   from the date on which the contributions would have been made if 
  2.6   made contemporaneous with the service period to the date on 
  2.7   which the payment is actually made and independent school 
  2.8   district No. 276, Minnetonka, must pay the balance of the prior 
  2.9   service credit purchase payment amount calculated under 
  2.10  Minnesota Statutes, section 356.55, within 30 days of the 
  2.11  payment by the eligible person.  The executive director of the 
  2.12  teachers retirement association must notify the superintendent 
  2.13  of independent school district No. 276, Minnetonka, of its 
  2.14  payment amount and payment due date if the eligible person makes 
  2.15  the required payment. 
  2.16     (e) If independent school district No. 276, Minnetonka, 
  2.17  fails to pay its portion of the required prior service credit 
  2.18  purchase payment amount, the executive director may notify the 
  2.19  commissioner of finance of that fact and the commissioner of 
  2.20  finance may order that the required school district payment be 
  2.21  deducted from the next subsequent payment or payments of state 
  2.22  education aid to the school district and be transmitted to the 
  2.23  teachers retirement association.  
  2.24     Sec. 2.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective the day following final enactment.