SF 1238

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

A bill for an act
relating to retirement; teacher retirement plans; increasing the reemployed
annuitant earnings limitation amount for part-time and substitute teachers;
amending Minnesota Statutes 2006, sections 354.44, subdivision 5; 354A.31,
subdivision 3.

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

Section 1.

Minnesota Statutes 2006, section 354.44, subdivision 5, is amended to read:

Subd. 5.

Resumption of teaching service after retirement.

(a) new text begin Except as provided
in paragraph (b) or in subdivision 5a, new text end any person who retired under the provisions of
this chapter and has thereafter resumed teaching in any employer unit to which this
chapter applies is eligible to continue to receive payments in accordance with the annuity
except that annuity payments must be reduced during the calendar year immediately
following any calendar year in which the person's income from the teaching service is
in an amount greater than the annual maximum earnings allowable for that age for the
continued receipt of full benefit amounts monthly under the federal old age, survivors and
disability insurance program as set by the secretary of health and human services under
United States Code, title 42, section 403. The amount of the reduction must be one-half
of the amount in excess of the applicable reemployment income maximum specified in
this subdivision and must be deducted from the annuity payable for the calendar year
immediately following the calendar year in which the excess amount was earned. If the
person has not yet reached the minimum age for the receipt of Social Security benefits,
the maximum earnings for the person must be equal to the annual maximum earnings
allowable for the minimum age for the receipt of Social Security benefits.

(b) new text begin The retirement annuity of a retired member who:
new text end

new text begin (1) resumes teaching on a part-time basis or on a substitute basis;
new text end

new text begin (2) is under the full retirement age under the federal old age, survivors, and disability
insurance program; and
new text end

new text begin (3) earns compensation for teaching service in excess of $23,000 in a calendar year,
must be reduced by $1 for every $2 by which the teaching service compensation exceeds
$23,000 for the following calendar year.
new text end

new text begin (c) new text end If the person is retired for only a fractional part of the calendar year during the
initial year of retirement, the maximum reemployment income specified in this subdivision
must be prorated for that calendar year.

deleted text begin (c) deleted text end new text begin (d) new text end After a person has reached the Social Security full retirement age, no
reemployment income maximum is applicable regardless of the amount of income.

deleted text begin (d) deleted text end new text begin (e) new text end The amount of the retirement annuity reduction must be handled or disposed
of as provided in section 356.47.

deleted text begin (e) deleted text end new text begin (f) new text end For the purpose of this subdivision, income from teaching service includes,
but is not limited to:

(1) all income for services performed as a consultant or an independent contractor
for an employer unit covered by the provisions of this chapter; and

(2) the greater of either the income received or an amount based on the rate paid
with respect to an administrative position, consultant, or independent contractor in an
employer unit with approximately the same number of pupils and at the same level as the
position occupied by the person who resumes teaching service.

Sec. 2.

Minnesota Statutes 2006, section 354A.31, subdivision 3, is amended to read:

Subd. 3.

Resumption of teaching after commencement of a retirement annuity.

(a) new text begin Except as provided in paragraph (b), new text end any person who retired and is receiving a
coordinated program retirement annuity under the provisions of sections 354A.31 to
354A.41 or any person receiving a basic program retirement annuity under the governing
sections in the articles of incorporation or bylaws and who has resumed teaching service
for the school district in which the teachers retirement fund association exists is entitled
to continue to receive retirement annuity payments, except that annuity payments must
be reduced during the calendar year immediately following the calendar year in which
the person's income from the teaching service is in an amount greater than the annual
maximum earnings allowable for that age for the continued receipt of full benefit amounts
monthly under the federal old age, survivors, and disability insurance program as set by
the secretary of health and human services under United States Code, title 42, section 403.
The amount of the reduction must be one-third the amount in excess of the applicable
reemployment income maximum specified in this subdivision and must be deducted
from the annuity payable for the calendar year immediately following the calendar year
in which the excess amount was earned. If the person has not yet reached the minimum
age for the receipt of Social Security benefits, the maximum earnings for the person
must be equal to the annual maximum earnings allowable for the minimum age for the
receipt of Social Security benefits.

(b) new text begin The retirement annuity of a retired member who:
new text end

new text begin (1) resumes teaching on a part-time basis or on a substitute basis;
new text end

new text begin (2) is under the full retirement age under the federal old age, survivors, and disability
insurance program; and
new text end

new text begin (3) earns compensation for teaching service in excess of $23,000 in a calendar year,
must be reduced by $1 for every $2 by which the teaching service compensation exceeds
$23,000 for the following calendar year.
new text end

new text begin (c) new text end If the person is retired for only a fractional part of the calendar year during the
initial year of retirement, the maximum reemployment income specified in this subdivision
must be prorated for that calendar year.

deleted text begin (c) deleted text end new text begin (d) new text end After a person has reached the age of 70, no reemployment income maximum
is applicable regardless of the amount of any compensation received for teaching service
for the school district in which the teachers retirement fund association exists.

deleted text begin (d) deleted text end new text begin (e) new text end The amount of the retirement annuity reduction must be handled or disposed
of as provided in section 356.47.

deleted text begin (e) deleted text end new text begin (f) new text end For the purpose of this subdivision, income from teaching service includes:
(i) all income for services performed as a consultant or independent contractor; or income
resulting from working with the school district in any capacity; and (ii) the greater of either
the income received or an amount based on the rate paid with respect to an administrative
position, consultant, or independent contractor in the school district in which the teachers
retirement fund association exists and at the same level as the position occupied by the
person who resumes teaching service.

deleted text begin (f) deleted text end new text begin (g) new text end On or before February 15 of each year, each applicable employing unit
shall report to the teachers retirement fund association the amount of postretirement
income as defined in this subdivision, earned as a teacher, consultant, or independent
contractor during the previous calendar year by each retiree of the teachers retirement fund
association for teaching service performed new text begin for that employer new text end after retirement. The report
must be in a format approved by the executive secretary or director.

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

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end