SF 889

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minneapolis teachers 
  1.3             retirement fund association; mandating employer 
  1.4             payment on a previously authorized purchase of service 
  1.5             credit in accordance with legislative commission on 
  1.6             pensions and retirement policy that retirement 
  1.7             benefits should be financed on a shared basis between 
  1.8             the public employee and the public employer; repealing 
  1.9             Laws 2000, chapter 461, article 19, section 6. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 
  1.12  UNCREDITED TEACHING SERVICE PERIODS.] 
  1.13     (a) An eligible person described in paragraph (b) is 
  1.14  entitled to purchase allowable service credit from the 
  1.15  Minneapolis teachers retirement fund association basic program 
  1.16  for the periods of teaching employment specified in paragraph 
  1.17  (c). 
  1.18     (b) An eligible person is a person who: 
  1.19     (1) was employed by special school district No. 1 
  1.20  (Minneapolis) as a long-call reserve teacher from October 1972 
  1.21  to June 1973 and was covered by the Minneapolis employees 
  1.22  retirement fund; 
  1.23     (2) was employed by special school district No. 1 
  1.24  (Minneapolis) as a regular contract school social worker at 
  1.25  Franklin Junior High School from August 28, 1973, through June 
  1.26  12, 1974, and from August 29, 1974, through June 11, 1975, 
  1.27  during which special school district No. 1 did not provide 
  2.1   retirement coverage; 
  2.2      (3) was employed by special school district No. 1 
  2.3   (Minneapolis) as a regular contract school social worker at 
  2.4   North High School from August 29, 1975, through December 19, 
  2.5   1975, covered by school district-provided retirement coverage; 
  2.6      (4) was retained by special school district No. 1 
  2.7   (Minneapolis) in the capacity of a school social worker at North 
  2.8   High School as an hourly wage social worker from August 1976 
  2.9   through June 1983 without retirement coverage; and 
  2.10     (5) is currently employed by Hennepin county covered by the 
  2.11  public employees retirement association. 
  2.12     (c) The periods for allowable service credit purchase are 
  2.13  August 28, 1973, through June 12, 1974; August 29, 1974, through 
  2.14  June 11, 1975; and August 17, 1983, through January 20, 1984. 
  2.15     (d) An eligible person must provide any relevant 
  2.16  documentation related to eligibility to make this service credit 
  2.17  purchase required by the executive director of the Minneapolis 
  2.18  teachers retirement fund association. 
  2.19     (e) Allowable service credit for the purchase periods must 
  2.20  be granted by the Minneapolis teachers retirement fund 
  2.21  association to the account of the eligible person upon receipt 
  2.22  of the portion of the prior service credit purchase payment 
  2.23  amount payable under paragraph (f) by the eligible person. 
  2.24     (f) Notwithstanding Minnesota Statutes, section 356.55 or 
  2.25  356.551, whichever is applicable, the eligible person may pay, 
  2.26  before July 1, 2003, or the date of termination from service 
  2.27  covered by the public employees retirement association, 
  2.28  whichever is earlier, an amount equal to the employee 
  2.29  contribution rate or rates in effect during the period specified 
  2.30  in paragraph (c) applied to the actual salary rate or rates in 
  2.31  effect during that period, plus annual compound interest at the 
  2.32  rate of 8.5 percent from July 1, 1975, to the date on which the 
  2.33  payment is actually made.  Special school district No. 1 
  2.34  (Minneapolis) must pay the remaining balance of the prior 
  2.35  service credit purchase payment amount calculated under 
  2.36  Minnesota Statutes, section 356.55 or 356.551, whichever is 
  3.1   applicable, within 30 days of the payment by the eligible 
  3.2   person.  The executive director of the Minneapolis teachers 
  3.3   retirement fund association must notify the superintendent of 
  3.4   special school district No. 1 of its payment amount and payment 
  3.5   due date if the eligible person makes the required payment. 
  3.6      (g) If special school district No. 1 fails to pay its 
  3.7   portion of the required prior service credit purchase payment 
  3.8   amount, the executive director of the Minneapolis teachers 
  3.9   retirement fund association must notify the commissioner of 
  3.10  finance of that fact and the commissioner of finance must order 
  3.11  that the required employer payment be deducted from the next 
  3.12  subsequent payment or payments of state education aid to the 
  3.13  school district and be transmitted to the Minneapolis teachers 
  3.14  retirement fund association. 
  3.15     (h) The prior service credit purchase payment amount shall 
  3.16  be computed by the actuary retained by the legislative 
  3.17  commission on pensions and retirement.  That computation must, 
  3.18  in applying the process stated in Minnesota Statutes, section 
  3.19  356.55 or 356.551, as applicable, give recognition to the 
  3.20  liabilities that would be created in the Minneapolis teachers 
  3.21  retirement fund association and other Minnesota public pension 
  3.22  funds due to the service credit purchase. 
  3.23     (i) Following receipt of that full purchase payment amount, 
  3.24  the executive director of the Minneapolis teachers retirement 
  3.25  fund association shall allocate and transmit applicable amounts 
  3.26  to the applicable pension administrations, as determined under 
  3.27  paragraph (h). 
  3.28     Sec. 2.  [REPEALER.] 
  3.29     Laws 2000, chapter 461, article 19, section 6, is repealed. 
  3.30     Sec. 3.  [EFFECTIVE DATE.] 
  3.31     Sections 1 and 2 are effective the day following final 
  3.32  enactment.