SF 1684

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

A bill for an act
relating to retirement; Teachers Retirement Association; revising contribution
rates; authorizing service credit grant for periods of uniformed service until July
1, 2012; amending Minnesota Statutes 2006, section 354.42, subdivisions 2, 3;
proposing coding for new law in Minnesota Statutes, chapter 354.

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

Section 1.

Minnesota Statutes 2006, section 354.42, subdivision 2, is amended to read:

Subd. 2.

Employee.

(a) The employee contribution to the fund is an amount equal
to the following percentage of the salary of a member:

(1) deleted text begin after July 1, 2006, for a teacher employed by Special School District No. 1,
Minneapolis, 5.5 deleted text end new text begin ... new text end percent if the teacher is a coordinated member deleted text begin , and 9.0 percent if the
teacher is a basic member deleted text end ; new text begin and
new text end

(2) deleted text begin for every other teacher, after July 1, 2006, 5.5 percent if the teacher is a
coordinated member and 9.0 deleted text end new text begin ... new text end percent if the teacher is a basic member.

(b) This contribution must be made by deduction from salary. Where any portion
of a member's salary is paid from other than public funds, the member's employee
contribution must be based on the entire salary received.

Sec. 2.

Minnesota Statutes 2006, section 354.42, subdivision 3, is amended to read:

Subd. 3.

Employer.

(a) deleted text begin The regular employer contribution to the fund by Special
School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an
amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated
member and 9.0 percent of the salary of each of its teachers who is a basic member. After
July 1, 2007, the regular employer contribution to the fund by Special School District No.
1, Minneapolis, is an amount equal to 5.5 percent of salary of each coordinated member
and 9.5 percent of salary of each basic member. deleted text end The additional employer contribution to
the fund by Special School District No. 1, Minneapolis, deleted text begin after July 1, 2006, deleted text end is an amount
equal to 3.64 percent of the salary of each teacher who is a coordinated member or is a
basic member.

(b) The new text begin regular new text end employer contribution to the fund for deleted text begin every other employer deleted text end new text begin all
employing units new text end is an amount equal to deleted text begin 5.0 deleted text end new text begin ... new text end percent of the salary of each coordinated
member and deleted text begin 9.0 deleted text end new text begin ... new text end percent of the salary of each basic member before July 1, 2007, and deleted text begin 5.5 deleted text end
new text begin ... new text end percent of the salary of each coordinated member and deleted text begin 9.5 deleted text end new text begin ... new text end percent of the salary of
each basic member after June 30, 2007.

Sec. 3.

new text begin [354.543] SERVICE CREDIT FOR UNIFORMED SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin An eligible teacher is a teacher who has at least three
years of allowable service credit in the Teachers Retirement Association and:
new text end

new text begin (1) was absent from employment by reason of service in the uniformed services, as
defined in United States Code, title 38, section 4303(13), and who returns to the employer
providing teaching service upon discharge from service in the uniformed service within
the time frames required in United States Code, title 38, section 4312(e); or
new text end

new text begin (2) provided service in the uniformed services, as defined in United States Code,
title 38, section 4303(13), before becoming a teacher, or who failed to obtain service credit
for a military break in service under section 354.53.
new text end

new text begin Subd. 2. new text end

new text begin Service credit authorization. new text end

new text begin Notwithstanding sections 354.53 and
354.533, an eligible teacher under subdivision 1 is authorized to receive service credit
in the Teachers Retirement Association for a period or periods of uniformed service,
consistent with subdivision 1, not to exceed ten years, provided that the teacher did not
separate from uniformed service with a dishonorable or bad conduct discharge or under
other than honorable conditions.
new text end

new text begin Subd. 3. new text end

new text begin Procedures; documentation. new text end

new text begin An eligible teacher must apply for this
allowable and formula service credit grant on a form or forms provided by the executive
director. The application must include all necessary documentation of the teacher's
qualifications to receive the service credit grant, signed written permission to allow the
executive director to request and receive necessary verification of applicable facts and
eligibility requirements, and any other relevant information that the executive director
may require.
new text end

new text begin Subd. 4. new text end

new text begin Service credit grant. new text end

new text begin Allowable and formula service credit for the
applicable period or periods of uniformed service must be granted by the Teachers
Retirement Association to the applicable teacher following receipt of the application under
subdivision 3 and verification of all relevant information. Authority to receive service
credit under this section is voided if a valid application is not received by the Teachers
Retirement Association before the teacher's effective date of retirement or termination
of service, whichever is earlier.
new text end

new text begin Subd. 5. new text end

new text begin Prohibition of double coverage. new text end

new text begin A service credit grant under this section
is prohibited if the teacher has service credit in the Teachers Retirement Association or
any other defined benefit plan for any period of uniformed service.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin This section expires on July 1, 2012.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment.
new text end