SF 1267

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:19am

A bill for an act
relating to retirement; permitting certain Minnesota State Colleges and
Universities System tenured faculty to elect defined benefit plan retirement
coverage; amending Minnesota Statutes 2008, section 354B.21, subdivision 2.

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

Section 1.

Minnesota Statutes 2008, section 354B.21, subdivision 2, is amended to read:

Subd. 2.

Coverage; election.

deleted text begin (a) For Eligible persons who were employed by
the former state university system or the former community college system before May
1, 1995, the person has the retirement coverage that the person had for employment
immediately before May 1, 1995.
deleted text end

deleted text begin (b) For all other eligible persons deleted text end new text begin (a) Eligible persons who were employed by
the Minnesota State Colleges and Universities System on or after June 30, 2009 new text end ,
unless otherwise specified in this section, deleted text begin the eligible person is deleted text end new text begin are new text end authorized to elect
prospective Teachers Retirement Association plan coverage rather than coverage by
the plan established by this chapter. The election of prospective Teachers Retirement
Association plan coverage deleted text begin shall deleted text end new text begin must new text end be made within one year of commencing eligible
Minnesota State Colleges and Universities system employment. If an election is not made
within the specified election period due to a termination of Minnesota State Colleges and
Universities system employment, an election may be made within 90 days of returning to
eligible Minnesota State Colleges and Universities system employment. All elections are
irrevocable. deleted text begin Prior to deleted text end new text begin Before new text end making an election new text begin , new text end the eligible person deleted text begin shall be deleted text end new text begin is new text end covered by
the plan indicated as default coverage under subdivision 3.

new text begin (b) Except as provided in paragraph new text end (c) new text begin , new text end a purchase of service credit in the Teachers
Retirement Association plan for any period or periods of Minnesota State Colleges and
Universities system employment occurring deleted text begin prior to deleted text end new text begin before new text end the election under paragraph
deleted text begin (b) deleted text end new text begin (a) new text end is prohibited.

new text begin (c) Notwithstanding paragraphs (a) and (b), a faculty member who is a member of
the individual retirement account plan who first achieves tenure or its equivalent at a
Minnesota state college or university after June 30, 2009, may elect to transfer retirement
coverage under the teachers retirement plan within one year of the faculty member
achieving tenure or its equivalent at a Minnesota state college or university. The faculty
member electing Teachers Retirement Association coverage under this paragraph must
purchase service credit in the Teachers Retirement Association for the entire period of
time covered under the individual retirement account plan and the purchase payment
amount must be determined under section 356.551. The Teachers Retirement Association
may charge a faculty member transferring coverage a reasonable fee to cover the costs
associated with computing the actuarial cost of purchasing service credit and making the
transfer. A faculty member transferring from the individual retirement account plan to the
Teachers Retirement Association may use any balances to the credit of the faculty member
in the individual retirement account plan, any balances to the credit of the faculty member
in the higher education supplemental retirement plan established under chapter 354C, or
any source specified in section 356.441, subdivision 1, to purchase the service credit in the
Teachers Retirement Association. If the total amount of payments under this paragraph are
less than the total purchase payment amount under section 356.551, the payment amounts
must be refunded to the applicable source. The retirement coverage transfer and service
credit purchase authority under this paragraph expires with respect to any Minnesota State
Colleges and Universities System faculty initially hired after June 30, 2014.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end