SF 2154

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

A bill for an act
relating to retirement; allowing certain members to elect Teachers Retirement
Association membership and purchase service credit; amending Minnesota
Statutes 2006, section 354B.21, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 354B.21, subdivision 2, is amended to read:

Subd. 2.

Coverage; election.

(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.

(b) For all other eligible persons, unless otherwise specified in this section, the
eligible person is 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 shall 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. Prior to making an election the eligible person
shall be covered by the plan indicated as default coverage under subdivision 3.

(c) 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 prior to the election under paragraph (b) is prohibited.

new text begin (d) Notwithstanding paragraphs (b) and (c) above, a faculty member who is a
member of the individual retirement account plan may elect coverage under the teachers
retirement plan within one year of achieving tenure or its equivalent at a Minnesota state
college or university. The faculty member electing Teachers Retirement Association
coverage must purchase service credit in the Teachers Retirement Association for the
period of time covered under the individual retirement account plan at full actuarial
cost, as determined by the Teachers Retirement Association. The Teachers Retirement
Association may charge a faculty member seeking to change 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 changing coverage from the individual
retirement account plan to the Teachers Retirement Association may use savings in the
member's individual retirement account plan to purchase the service credit in the Teachers
Retirement Association plan.
new text end