SF 2423

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

A bill for an act
relating to retirement; first class city teacher retirement fund associations;
correcting special direct state aid references; amending Minnesota Statutes 2006,
section 354A.12, subdivision 3a; Minnesota Statutes 2007 Supplement, section
354A.12, subdivision 3c.

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

Section 1.

Minnesota Statutes 2006, section 354A.12, subdivision 3a, is amended to
read:

Subd. 3a.

Special direct state aid to first class city teachers retirement fund
associations.

(a) deleted text begin In fiscal year 1998, deleted text end The state shall pay deleted text begin $4,827,000 to the St. Paul
Teachers Retirement Fund Association, $17,954,000 to the Minneapolis Teachers
Retirement Fund Association, and $486,000 to the Duluth Teachers Retirement Fund
Association. In each fiscal year after fiscal year 2006, these payments to the first class city
teachers retirement fund associations must be $2,827,000 for deleted text end new text begin $2,967,000 to the new text end St. Paul deleted text begin ,
$12,954,000 to the deleted text end Teachers Retirement new text begin Fund new text end Association new text begin and, new text end for the former Minneapolis
Teachers Retirement Fund Association, deleted text begin and $486,000 for Duluth deleted text end new text begin $13,300,000 to the
Teachers Retirement Association new text end .

(b) The direct state aids under this subdivision are payable October 1 annually. The
commissioner of finance shall pay the direct state aid. The amount required under this
subdivision is appropriated annually from the general fund to the commissioner of finance.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 354A.12, subdivision 3c, is
amended to read:

Subd. 3c.

Termination of supplemental contributions and direct matching
and state aid.

(a) The supplemental contributions payable to the Minneapolis Teachers
Retirement Fund Association by Special School District No. 1 and the city of Minneapolis
under section 423A.02, subdivision 3, must deleted text begin continue to deleted text end be paid to the Teachers Retirement
Association new text begin and must continue new text end until 2037. The supplemental contributions payable to the
St. Paul Teachers Retirement Fund Association by Independent School District No. 625
under section 423A.02, subdivision 3, or the direct state deleted text begin aids deleted text end new text begin aid new text end under subdivision 3a to
the St. Paul Teachers Retirement Fund Association terminate at the end of the fiscal year
in which the accrued liability funding ratio for that fund, as determined in the most recent
actuarial report for that fund by the actuary retained under section 356.214, equals or
exceeds the accrued liability funding ratio for the Teachers Retirement Association, as
determined in the most recent actuarial report for the Teachers Retirement Association by
the actuary retained under section 356.214.

(b) deleted text begin If the state direct matching, state supplemental, or state aid is terminated for a
first class city teachers retirement fund association under paragraph (a), it may not again
be received by that fund.
deleted text end

deleted text begin (c) deleted text end If the St. Paul Teachers Retirement Fund Association is funded at new text begin an amount
equal to or greater than new text end the funding ratio applicable to the Teachers Retirement Association
deleted text begin when the provisions of paragraph (b) become effective deleted text end , then any new text begin future new text end state aid deleted text begin previously
distributed to that association must be immediately transferred deleted text end new text begin under subdivision 3a is
payable new text end to the Teachers Retirement Association.

Sec. 3. new text begin EFFECTIVE DATE; RETROACTIVITY.
new text end

new text begin (a) Sections 1 and 2 are effective on the day following final enactment and apply
retroactively to direct state aid paid or payable during fiscal years 2007 and 2008.
new text end

new text begin (b) If any direct state aid payable to the Teachers Retirement Association or to the
St. Paul Teachers Retirement Fund Association under sections 1 and 2 was not paid to
the applicable retirement plan in a timely fashion, the retroactive payment of the direct
state aid must also include compound interest on the aid amount at a monthly rate of 0.708
percent from the date that the payment would have been paid if paid in a timely fashion
until the date on which the payment is made.
new text end