Minnesota Legislature
SF 426
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to retirement; first class city teacher retirement fund associations; making
various conforming changes to the Teachers Retirement Association provision
in the extended leave of absence program; amending Minnesota Statutes 2006,
section 354A.091, subdivisions 1, 2, 3, 4, 5, 6; repealing Minnesota Statutes
2006, section 354A.091, subdivisions 1a, 1b.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 354A.091, subdivision 1, is amended to
read:
Subdivision 1.
Retirement contributions.
new text begin
(a) Upon granting an extended leave of
absence under section 122A.46 or 136F.43, the employing unit of the teacher granting the
leave must certify the leave to the respective teacher retirement fund association on a form
specified by the chief administrative officer of the association.
new text end
new text begin (b) new text end Notwithstanding any provision to the contrary of this chapter or the articles of
incorporation or bylaws of an association relating to the salary figure to be used for the
determination of contributions or the accrual of service credit deleted text begin an elementary, secondary, or
technical collegedeleted text end new text begin , anew text end teacher deleted text begin in the public schools of a city of the first classdeleted text end new text begin as defined in
section 354A.011, subdivision 27,new text end who is granted an extended leave of absence deleted text begin pursuant
todeleted text end new text begin under new text end section 122A.46deleted text begin ,deleted text end or deleted text begin a teacher who is granted an extended leave of absence
under sectiondeleted text end 136F.43deleted text begin ,deleted text end may pay employee contributions to the applicable association
and deleted text begin shall bedeleted text end new text begin is new text end entitled to receive allowable service credit in that association for each
year of leavedeleted text begin , provideddeleted text end new text begin . The employer may enter into an agreement with the exclusive
bargaining representative of the applicable teachers under which, for an individual teacher,
all or a portion of the member contribution is paid by the employer. The agreement
with the exclusive bargaining representative must include a sunset in the eligibility to
qualify for the member contribution payment and may not be a part of the collective
bargaining agreement.new text end The member and the employing board new text begin must new text end make the required
employer contributionsdeleted text begin ,deleted text end in any proportion new text begin that new text end they may agree upondeleted text begin ,deleted text end to deleted text begin thatdeleted text end new text begin the applicable
new text end association during the period of new text begin the new text end leave deleted text begin which shalldeleted text end new text begin . The leave maynew text end not exceed five
yearsnew text begin and a teacher may not receive more than five years of allowable service credit
under this sectionnew text end . new text begin Except for a teacher employed by the Minnesota State Colleges and
Universities System, new text end the state shall not make an employer contribution on behalf of the
teacher. The employee and employer contributions deleted text begin shalldeleted text end new text begin must new text end be based upon the rates of
contribution prescribed by section 354A.12 deleted text begin asdeleted text end new text begin and must be new text end applied to a salary figure equal
to the teacher's actual covered salary for the plan year immediately preceding the leave.
new text begin (c) new text end Payment of the employee and employer contributions authorized deleted text begin pursuant todeleted text end
new text begin under new text end this section deleted text begin shalldeleted text end new text begin mustnew text end be made on or before June 30 of the fiscal year for which
service credit is to be received. new text begin If payment is to be made by a transfer of pretax assets
authorized under section 356.441, payment may be made after June 30 of the fiscal year,
but the authorization for the asset transfer must have been received by the applicable third
party administrator by June 30 and the total assets transfer must include interest at the
rate of 0.708 percent per month from June 30 through the end of the month in which the
transfer occurs. No payment is permitted after the following September 30. new text end No allowable
service with respect to a year of extended leave of absence deleted text begin shalldeleted text end new text begin may new text end be credited to a
teacher until payment of the required employee and employer contributions has been
received by the association.
new text begin
(d) Notwithstanding the provisions of any agreement to the contrary, payment of
equivalent employee and employer contributions may not be made to receive allowable
service credit if the teacher does not have full reinstatement rights as provided in section
122A.46 or 136F.43, both during and at the end of the extended leave.
new text end
new text begin
(e) The school district which agrees to pay the employee retirement contribution
under this section shall forward to the applicable retirement association a copy of that
agreement as executed by the school district and the teacher.
new text end
Sec. 2.
Minnesota Statutes 2006, section 354A.091, subdivision 2, is amended to read:
Subd. 2.
Membership retention.
A teacher new text begin who is new text end on new text begin an new text end extended leave new text begin of absence
new text end under either section 122A.46 or 136F.43 new text begin and new text end whose employee and employer contributions
are made to the applicable teachers retirement fund association deleted text begin pursuant todeleted text end new text begin under
new text end subdivision 1 deleted text begin shall retaindeleted text end new text begin in a timely fashion retains new text end membership in the association for
each year during which the contributions are made, under the same terms and conditions
as if the teacher had continued to teach deleted text begin indeleted text end new text begin for new text end the deleted text begin districtdeleted text end new text begin employing unitnew text end .
Sec. 3.
Minnesota Statutes 2006, section 354A.091, subdivision 3, is amended to read:
Subd. 3.
Effect of nonpayment.
new text begin (a) new text end A teacher new text begin who is new text end on new text begin an new text end extended leave
new text begin of absence new text end under either section 122A.46 or 136F.43 new text begin and new text end who does not make employee
contributions or whose employer contribution is not made to the applicable teachers
retirement fund association in any year deleted text begin shall bedeleted text end new text begin is new text end deemed to have ceased to be an active
member of the association deleted text begin anddeleted text end new text begin , is deemednew text end to have ceased to render teaching services
beginning in that year for purposes of this chapter and the articles of incorporation and
bylaws of the association, and may not pay employee or employer contributions into the
fund in any subsequent year of the new text begin extended new text end leavenew text begin of absencenew text end .
new text begin (b) The new text end nonpayment of contributions into the fund deleted text begin shalldeleted text end new text begin does new text end not affect the rights or
obligations of the teacher or new text begin of new text end the employing school district under section 122A.46 or
new text begin of new text end the Minnesota State Colleges and Universities system under section 136F.43.
Sec. 4.
Minnesota Statutes 2006, section 354A.091, subdivision 4, is amended to read:
Subd. 4.
Teachers who do not resume service.
deleted text begin If deleted text end A teacher who has made
employee contributions to the applicable teachers retirement fund association for the
agreed maximum duration of an extended leave new text begin and who new text end does not resume teaching
service in the first school year after that maximum duration new text begin of the leave new text end has elapseddeleted text begin , the
teacher shall bedeleted text end new text begin is new text end deemednew text begin , for purposes of this chapter and the articles of incorporation
and bylaws of the association,new text end to have ceased to be an active member of the association
and to have ceased to render teaching services beginning in that first school year after
that maximum duration has elapsed deleted text begin for purposes of this chapter and the articles of
incorporation and bylaws of the associationdeleted text end .
Sec. 5.
Minnesota Statutes 2006, section 354A.091, subdivision 5, is amended to read:
Subd. 5.
Applicabilitynew text begin in the event of discharge or layoffnew text end .
deleted text begin The provisions ofdeleted text end This
section deleted text begin shalldeleted text end new text begin does new text end not apply to a teacher who is discharged deleted text begin pursuant todeleted text end new text begin under new text end section
122A.41new text begin , who is placed on an unrequested leave of absence, who is retrenched, or who is
laid offnew text end while the teacher is on an extended leave of absence deleted text begin pursuant todeleted text end new text begin under new text end section
122A.46. The provisions of this section also do not apply to a teacher who is discharged
for cause new text begin or whose contract is terminated new text end while the teacher is on an extended leave of
absence under section 136F.43.
Sec. 6.
Minnesota Statutes 2006, section 354A.091, subdivision 6, is amended to read:
Subd. 6.
Exclusive coveragenew text begin ; limits on other service creditnew text end .
new text begin (a) new text end A teacher who
makes employee contributions to and receives allowable service credit in the applicable
teacher's retirement fund association deleted text begin pursuant todeleted text end new text begin under new text end this section may not make
employee contributions new text begin to new text end or receive allowable service credit for the same period of time
in any other Minnesota public employee pension plan, except a volunteer firefighters relief
association governed by sections 69.771 to 69.776.
new text begin (b) new text end This subdivision deleted text begin shalldeleted text end new text begin may new text end not be construed to prohibit a member who pays
employee contributions new text begin to new text end and receives allowable service credit in the deleted text begin fund pursuant todeleted text end
new text begin applicable retirement association under new text end this section in any year from being employed as a
substitute teacher by any school district during that year. Notwithstanding the provisions
of this chapter or new text begin of the articles of incorporation or of new text end the bylaws of a retirement
association, a teacher may not pay retirement contributions new text begin to new text end or receive allowable service
credit in the deleted text begin funddeleted text end new text begin applicable retirement association new text end for teaching service rendered for
any part of any year for which the teacher pays retirement contributions new text begin to new text end or receives
allowable service credit deleted text begin pursuant todeleted text end new text begin under new text end section 354.094 or this section while on an
extended leave of absence under either section 122A.46 or 136F.43.
Sec. 7. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2006, section 354A.091, subdivisions 1a and 1b,
new text end
new text begin
are repealed.
new text end
Sec. 8. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 7 are effective July 1, 2007.
new text end