SF 1420

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/20/2023 11:03am

A bill for an act
relating to retirement; authorizing certain employees of the Fond du Lac Tribal
and Community College who are members of the higher education individual
retirement account plan to elect coverage by the Teachers Retirement Association
and receive retroactive service credit.

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

Section 1. new text begin TEACHERS RETIREMENT ASSOCIATION COVERAGE ELECTION
AUTHORITY FOR CERTAIN MINNESOTA STATE EMPLOYEES.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding any provision of law to the contrary,
an eligible person described in subdivision 2 is authorized to become a member of the
Teachers Retirement Association and to receive service and salary credit in the Teachers
Retirement Association upon making an election and the contribution required under
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Eligible person. new text end

new text begin (a) An eligible person is a person described in paragraph (b),
(c), (d), or (e).
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was born on June 14, 1969;
new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of
the Minnesota State Colleges and Universities;
new text end

new text begin (3) was first employed on December 13, 2017, by the Fond du Lac Tribal and Community
College as an eLearning support specialist, with retirement coverage in the higher education
individual retirement account plan; and
new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association
as authorized by Minnesota Statutes 2017, section 354B.21.
new text end

new text begin (c) An eligible person is a person who:
new text end

new text begin (1) was born on October 9, 1992;
new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of
the Minnesota State Colleges and Universities;
new text end

new text begin (3) was first employed on June 12, 2019, by the Fond du Lac Tribal and Community
College as the Nandagikendan (Seek to Learn) Academy director with retirement coverage
in the higher education individual retirement account plan; and
new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association
as authorized by Minnesota Statutes 2019, section 354B.211.
new text end

new text begin (d) An eligible person is a person who:
new text end

new text begin (1) was born on November 12, 1983;
new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of
the Minnesota State Colleges and Universities;
new text end

new text begin (3) was first employed on February 18, 2020, by the Fond du Lac Tribal and Community
College as a youth education outreach coordinator with retirement coverage in the higher
education individual retirement account plan; and
new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association
as authorized by Minnesota Statutes 2020, section 354B.211.
new text end

new text begin (e) An eligible person is a person who:
new text end

new text begin (1) was born on September 3, 1982;
new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of
the Minnesota State Colleges and Universities;
new text end

new text begin (3) was first employed on June 11, 2018, by the Fond du Lac Tribal and Community
College as a farm manager with retirement coverage in the higher education individual
retirement account plan; and
new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association
as authorized by Minnesota Statutes 2018, section 354B.21.
new text end

new text begin Subd. 3. new text end

new text begin Election, transfer, and payment. new text end

new text begin (a) To elect coverage by the Teachers
Retirement Association, an eligible person must submit a written application to the executive
director of the Teachers Retirement Association on a form provided by the Teachers
Retirement Association. The application must include documentation demonstrating that
the person is an eligible person under subdivision 2 and any other relevant information that
the executive director may require.
new text end

new text begin (b) Membership in the Teachers Retirement Association commences after the date the
executive director receives the retirement coverage election and information described under
paragraph (a) and the contribution specified under paragraph (c), if any. Upon membership
commencement, the executive director must grant past service and salary credit for
employment with a Minnesota state college or university from the date the eligible person
was first employed as described under subdivision 2.
new text end

new text begin (c) If the eligible person makes the retirement coverage election under paragraph (a),
the eligible person must make a contribution to the Teachers Retirement Association equal
to the excess, if any, of the employee contributions that the eligible person would have made
if covered by the Teachers Retirement Association for the period of past service and salary
for which credit is to be granted under paragraph (b) over the employee contributions that
the eligible person made to the higher education individual retirement account plan for the
same period of past service and salary. The executive director of the Teachers Retirement
Association must determine the amount to be contributed under this paragraph and notify
the eligible person of the amount required and options for making the payment.
new text end

new text begin (d) Upon the election of retirement coverage under paragraph (a) and payment of the
contribution under paragraph (c), if a contribution is required, the value of the eligible
person's account in the higher education individual retirement account plan must be
transferred to the Teachers Retirement Association.
new text end

new text begin (e) Upon receipt of the amount transferred under paragraph (d), the Teachers Retirement
Association shall determine the required purchase payment amount calculated under
Minnesota Statutes, section 356.551, as if the coverage election was a prior service credit
purchase.
new text end

new text begin (f) From the amount calculated under paragraph (e), the executive director of the Teachers
Retirement Association must subtract the amounts received under paragraphs (c) and (d).
The Board of Trustees of the Minnesota State Colleges and Universities must transmit the
remaining amount, if any, to the executive director of the Teachers Retirement Association
within 60 days following the receipt of the amount transferred under paragraph (d).
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The authority to make a retirement coverage election under this
section expires one year from the effective date of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end