SF 2713

as introduced - 91st Legislature (2019 - 2020) Posted on 03/27/2019 03:28pm

A bill for an act
relating to retirement; Teachers Retirement Association; coverage election for
Minnesota State employee not offered a coverage election.

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

Section 1. new text begin TRA COVERAGE ELECTION AUTHORITY FOR CERTAIN
MINNESOTA STATE EMPLOYEE.
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 coordinated member of the Teachers Retirement
Association and to purchase service and salary credit in the Teachers Retirement Association
coordinated plan retroactively from January 3, 1995, upon making an election under
paragraph (c) and upon making all required payments under paragraphs (d) and (e).
new text end

new text begin (b) An eligible person is a person who:
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new text begin (1) was born on January 18, 1966;
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new text begin (2) was first employed as an academic advisor on January 3, 1995, covered by the higher
education individual retirement account plan;
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new text begin (3) was employed as an academic advisor with Metropolitan State University on March
20, 2019, with retirement coverage in the higher education individual retirement account
plan; and
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new text begin (4) was not offered an election of Teachers Retirement Association coverage as authorized
by Minnesota Statutes, section 354B.21, so remained in the higher education individual
retirement account plan.
new text end

new text begin (c) To be eligible for 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 all documentation of the applicability of this section and any other relevant
information that the executive director may require. Teachers Retirement Association plan
membership commences after the date of the retirement coverage election under this section
and past salary and service credit is granted for past Minnesota State system employment
from January 3, 1995, until the executive director receives the written application specified
in this paragraph and the payments specified in paragraphs (d) and (e).
new text end

new text begin (d) If the eligible person makes the retirement coverage election under paragraph (c),
the eligible person shall 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 from January 3, 1995. These additional
contribution amounts shall include the applicable annual compound interest at the rate or
rates specified in Minnesota Statutes, section 356.59, subdivision 4, computed from the
date the contribution would have been made if deducted from salary until paid. The total
amount to be paid under this paragraph shall be determined by the executive director of the
Teachers Retirement Association and written notification of the amount required under this
paragraph must be transmitted to the eligible person.
new text end

new text begin (e) If payment is made under paragraph (d), the value of the eligible person's higher
education individual retirement account plan account shall be transferred to the Teachers
Retirement Association.
new text end

new text begin (f) The Teachers Retirement Association shall determine the required purchase payment
amount calculated under Minnesota Statutes, section 356.551, imposed upon the Teachers
Retirement Association under this section due to the salary and service credit purchase.
new text end

new text begin (g) From the total amount computed under paragraph (f), the executive director of the
Teachers Retirement Association shall subtract the amounts received under paragraphs (d)
and (e). The Minnesota State system must transmit the remaining amount, if any, to the
executive director of the Teachers Retirement Association within 60 days following the
receipt of payments under paragraphs (d) and (e).
new text end

new text begin (h) 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