SF 955

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; increasing employee and 
  1.3             employer contribution rates; increasing benefit 
  1.4             computation formulas for Duluth teachers retirement 
  1.5             fund association; amending Minnesota Statutes 1994, 
  1.6             sections 354A.12, subdivisions 1 and 2a; and 354A.31, 
  1.7             subdivision 4. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 354A.12, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [EMPLOYEE CONTRIBUTIONS.] The contribution 
  1.12  required to be paid by each member of a teachers retirement fund 
  1.13  association shall not be less than the percentage of total 
  1.14  salary specified below for the applicable association and 
  1.15  program: 
  1.16       Association and Program              Percentage of
  1.17                                            Total Salary
  1.18  Duluth teachers retirement
  1.19    association
  1.20            old law and new law
  1.21            coordinated programs              4.5 5.5 percent
  1.22  Minneapolis teachers retirement
  1.23    association
  1.24            basic program                     8.5 percent
  1.25            coordinated program               4.5 percent
  1.26  St. Paul teachers retirement
  2.1     association
  2.2             basic program                     8 percent
  2.3             coordinated program               4.5 percent
  2.4      Contributions shall be made by deduction from salary and 
  2.5   must be remitted directly to the respective teachers retirement 
  2.6   fund association at least once each month. 
  2.7      Sec. 2.  Minnesota Statutes 1994, section 354A.12, 
  2.8   subdivision 2a, is amended to read: 
  2.9      Subd. 2a.  [EMPLOYER REGULAR AND ADDITIONAL CONTRIBUTION 
  2.10  RATES.] (a) The employing units shall make the following 
  2.11  employer contributions to teachers retirement fund associations: 
  2.12     (1) for any coordinated member of a teachers retirement 
  2.13  fund association in a city of the first class, the employing 
  2.14  unit shall pay the employer social security taxes in accordance 
  2.15  with section 355.46, subdivision 3, clause (b); 
  2.16     (2) for any coordinated member of one of the following 
  2.17  teachers retirement fund associations in a city of the first 
  2.18  class, the employing unit shall make a regular employer 
  2.19  contribution to the respective retirement fund association in an 
  2.20  amount equal to the designated percentage of the salary of the 
  2.21  coordinated member as provided below: 
  2.22       Duluth teachers retirement
  2.23       fund association                        4.50 percent
  2.24       July 1, 1996 - June 30, 1997            5.00 percent
  2.25       July 1, 1997, and thereafter            5.50 percent
  2.26       Minneapolis teachers retirement
  2.27       fund association                        4.50 percent
  2.28       St. Paul teachers retirement
  2.29       fund association                        4.50 percent;
  2.30     (3) for any basic member of one of the following teachers 
  2.31  retirement fund associations in a city of the first class, the 
  2.32  employing unit shall make a regular employer contribution to the 
  2.33  respective retirement fund in an amount equal to the designated 
  2.34  percentage of the salary of the basic member as provided below: 
  2.35       Minneapolis teachers retirement
  2.36       fund association                        8.50 percent
  3.1        St. Paul teachers retirement
  3.2        fund association                        8.00 percent
  3.3      (4) for a basic member of a teachers retirement fund 
  3.4   association in a city of the first class, the employing unit 
  3.5   shall make an additional employer contribution to the respective 
  3.6   fund in an amount equal to the designated percentage of the 
  3.7   salary of the basic member, as provided below: 
  3.8        Minneapolis teachers retirement 
  3.9        fund association 
  3.10         July 1, 1993 - June 30, 1994          4.85 percent 
  3.11         July 1, 1994, and thereafter          3.64 percent 
  3.12       St. Paul teachers retirement 
  3.13       fund association 
  3.14         July 1, 1993 - June 30, 1995          4.63 percent 
  3.15         July 1, 1995, and thereafter          3.64 percent 
  3.16     (5) for a coordinated member of a teachers retirement fund 
  3.17  association in a city of the first class, the employing unit 
  3.18  shall make an additional employer contribution to the respective 
  3.19  fund in an amount equal to the applicable percentage of the 
  3.20  coordinated member's salary, as provided below: 
  3.21       Duluth teachers retirement
  3.22       fund association                        1.29 percent 
  3.23       Minneapolis teachers retirement
  3.24       fund association
  3.25         July 1, 1993 - June 30, 1994          0.50 percent 
  3.26         July 1, 1994, and thereafter          3.64 percent 
  3.27       St. Paul teachers retirement 
  3.28       fund association 
  3.29         July 1, 1993 - June 30, 1994          0.50 percent 
  3.30         July 1, 1994 - June 30, 1995          1.50 percent 
  3.31         July 1, 1995, and thereafter          3.64 percent 
  3.32     (b) The regular and additional employer contributions must 
  3.33  be remitted directly to the respective teachers retirement fund 
  3.34  association at least once each month.  Delinquent amounts are 
  3.35  payable with interest under the procedure in subdivision 1a. 
  3.36     (c) Payments of regular and additional employer 
  4.1   contributions for school district or technical college employees 
  4.2   who are paid from normal operating funds must be made from the 
  4.3   appropriate fund of the district or technical college. 
  4.4      Sec. 3.  Minnesota Statutes 1994, section 354A.31, 
  4.5   subdivision 4, is amended to read: 
  4.6      Subd. 4.  [COMPUTATION OF THE NORMAL COORDINATED RETIREMENT 
  4.7   ANNUITY.] (a) The normal coordinated retirement annuity shall be 
  4.8   an amount equal to a retiring coordinated member's average 
  4.9   salary multiplied by the retirement annuity formula percentage.  
  4.10  Average salary for purposes of this section shall mean an amount 
  4.11  equal to the average salary upon which contributions were made 
  4.12  for the highest five successive years of service credit, but 
  4.13  which shall not in any event include any more than the 
  4.14  equivalent of 60 monthly salary payments.  Average salary must 
  4.15  be based upon all years of service credit if this service credit 
  4.16  is less than five years. 
  4.17     (b) This paragraph, in conjunction with subdivision 6, 
  4.18  applies to a person who first became a member or a member in a 
  4.19  pension fund listed in section 356.30, subdivision 3, before 
  4.20  July 1, 1989, unless paragraph (c), in conjunction with 
  4.21  subdivision 7, produces a higher annuity amount, in which case 
  4.22  paragraph (c) will apply.  The retirement annuity formula 
  4.23  percentage for purposes of this paragraph is one 1.25 percent 
  4.24  per year for each year of coordinated service for the first ten 
  4.25  years and 1.5 1.75 percent for each year of coordinated service 
  4.26  thereafter.  
  4.27     (c) This paragraph applies to a person who has become at 
  4.28  least 55 years old and who first becomes a member after June 30, 
  4.29  1989, and to any other member who has become at least 55 years 
  4.30  old and whose annuity amount, when calculated under this 
  4.31  paragraph and in conjunction with subdivision 7 is higher than 
  4.32  it is when calculated under paragraph (b), in conjunction with 
  4.33  the provisions of subdivision 6.  The retirement annuity formula 
  4.34  percentage for purposes of this paragraph is 1.5 1.75 percent 
  4.35  for each year of coordinated service.  
  4.36     Sec. 4.  [DULUTH OLD PLAN BYLAWS.] 
  5.1      Subdivision 1.  [AUTHORITY GRANTED TO INCREASE 
  5.2   FORMULAS.] In accordance with Minnesota Statutes, section 
  5.3   354A.12, subdivision 4, approval is granted for the Duluth 
  5.4   teachers retirement fund association to amend their articles of 
  5.5   incorporation or bylaws by increasing the formula percentage 
  5.6   used in computing annuities for old law coordinated program 
  5.7   members in the Duluth teachers retirement fund association to 
  5.8   1-1/2 percent for each year of service. 
  5.9      Sec. 5.  [LOCAL APPROVAL.] 
  5.10     Sections 1 to 4 are effective upon approval by the board of 
  5.11  education of independent school district No. 709, Duluth, and 
  5.12  compliance with Minnesota Statutes, section 645.021.