SF 428

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; first-class city teacher retirement fund associations;
updating the sabbatical leave service credit provision based on recent Teachers
Retirement Association amendments; amending Minnesota Statutes 2006,
sections 354A.011, subdivision 23; 354A.092.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 354A.011, subdivision 23, is amended to
read:

Subd. 23.

Sabbatical leave.

"Sabbatical leave" means an authorized new text begin sabbatical
new text end leave of absence period new text begin as defined in section 122A.49 or in the applicable personnel
policy of the Minnesota State Colleges and Universities System that is certified by the
applicable employing unit and new text end during which the member is compensated at a rate of
not less than one-third of the salary which the member received during the plan year
immediately preceding the granting of the leave.

Sec. 2.

Minnesota Statutes 2006, section 354A.092, is amended to read:

354A.092 SABBATICAL LEAVE.

new text begin Subdivision 1. new text end

new text begin Credit for leave. new text end

deleted text begin Any deleted text end new text begin A new text end teacher in the coordinated program of
the St. Paul Teachers Retirement Fund Association or deleted text begin any deleted text end new text begin a new text end teacher in the new law
coordinated program of the Duluth Teachers Retirement Fund Association who is granted
a sabbatical leave deleted text begin shall be deleted text end new text begin is new text end entitled to receive allowable service credit in the applicable
association for deleted text begin periods deleted text end new text begin a period new text end of sabbatical leave.

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin Upon granting a sabbatical leave, the employing unit
granting the leave must certify the leave to the applicable association on a form specified
by the executive director or executive secretary of the association.
new text end

new text begin Subd. 3. new text end

new text begin Member and employer contributions. new text end

To obtain the service credit, the
new text begin employing unit of the new text end teacher on sabbatical leave shall deleted text begin make deleted text end new text begin deduct from the salary of
the teacher new text end an employee contribution new text begin at the applicable rate specified in section 354A.12,
subdivision 1, new text end to the applicable association deleted text begin . No teacher shall be entitled to receive more
than three years of allowable service credit pursuant to this section for a period or periods
of sabbatical leave during any ten consecutive fiscal or calendar years, whichever is the
applicable plan year for the teachers retirement fund association. If the teacher granted a
sabbatical leave makes the employee contribution for a period of sabbatical leave pursuant
to this section, the employing unit deleted text end new text begin based on the full normal base contract salary that would
have been paid to the teacher if the teacher were not on a sabbatical leave and new text end shall make an
employer contribution on behalf of the teacher to the applicable association for that period
of sabbatical leave in the manner described in section 354A.12, subdivision 2a new text begin on the
same salary base new text end . deleted text begin The employee and employer contributions shall be in an amount equal
to the employee and employer contribution rates in effect for other active members of the
association covered by the same program applied to a salary figure equal to the teacher's
actual covered salary for the plan year immediately preceding the sabbatical leave period.
Payment of the employee contribution authorized pursuant to this section shall be made by
the teacher on or before June 30 of year next following the year in which the sabbatical
leave terminated and shall be made without interest. For sabbatical leaves taken after June
30, 1986, the required employer contributions shall be paid by the employing unit within
30 days after notification by the association of the amount due deleted text end new text begin The employer must meet
the reporting and remittance requirements under section 354A.12, subdivision 5 new text end .

new text begin Subd. 4. new text end

new text begin Service credit. new text end

new text begin A teacher may not receive more than three years of
allowable service credit in any ten consecutive years under this section. Notwithstanding
the provisions of any sabbatical agreements to the contrary, member and employer
contributions may not be made to receive allowable service credit under this section if
the teacher does not retain the right to full reinstatement of employment both during the
sabbatical leave and at the end of the sabbatical leave. new text end If the employee contributions for
the sabbatical leave period are less than deleted text begin an deleted text end new text begin the new text end amount equal to the applicable contribution
rate applied to deleted text begin a deleted text end new text begin the base new text end salary figure deleted text begin equal to the teacher's actual covered salary for the
plan year immediately preceding the sabbatical leave period deleted text end new text begin under subdivision 3 new text end , service
credit deleted text begin shall deleted text end new text begin must new text end be prorated. The prorated service credit deleted text begin shall deleted text end new text begin must new text end be determined by the
ratio between the amount of the actual payment which was made and the full contribution
amount new text begin which was new text end payable deleted text begin pursuant to deleted text end new text begin under new text end this section.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2007.
new text end