SF 1995

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/20/2023 11:33am

A bill for an act
relating to retirement; authorizing an employee of Minnesota State Colleges and
Universities who is a member 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 AUTHORITY FOR A CERTAIN MINNESOTA STATE EMPLOYEE
TO ELECT COVERAGE BY THE TEACHERS RETIREMENT ASSOCIATION.
new text end

new text begin (a) Notwithstanding any provision of law to the contrary, an eligible person described
in paragraph (b) is authorized to become a member of the Teachers Retirement Association
and to receive service and salary credit in the Teachers Retirement Association from May
28, 2008, upon making an election under paragraph (c) and upon making the required
contribution under paragraph (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 July 11, 1950;
new text end

new text begin (2) was first employed on May 28, 2008, in the Minnesota State system office in the
city of St. Paul as an academic program director and, on December 31, 2022, was employed
as the system director for Academic Programs, Planning, and Transfer, with retirement
coverage in the higher education individual retirement account plan; and
new text end

new text begin (3) was not offered an election to be covered by the Teachers Retirement Association
as authorized by Minnesota Statutes 2008, section 354B.21.
new text end

new text begin (c) 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 paragraph (b) and
any other relevant information that the executive director may require.
new text end

new text begin (d) Membership in the Teachers Retirement Association commences after the date the
executive director receives (1) the retirement coverage election, including information
described in paragraph (c), and (2) the contribution specified in paragraph (e). Upon
membership commencement, the executive director must grant past service and salary credit
for employment with Minnesota State from May 28, 2008.
new text end

new text begin (e) If the eligible person makes the retirement coverage election under paragraph (c),
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 (d) 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 (f) If payment is made under paragraph (e), 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 (g) Upon receipt of the amount transferred under paragraph (f), 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 purchase of prior
service credit.
new text end

new text begin (h) From the amount calculated under paragraph (g), the executive director of the Teachers
Retirement Association must subtract the amounts received under paragraphs (e) and (f).
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 (f).
new text end

new text begin (i) An eligible person's 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 (j) An eligible person may elect coverage by the Teachers Retirement Association under
paragraph (c) during or after the eligible person's employment with the Minnesota State
Colleges and Universities, as long as the eligible person has not withdrawn or taken a
distribution of all or any portion of the eligible person's account in the higher education
individual retirement account plan.
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