SF 2749

as introduced - 88th Legislature (2013 - 2014) Posted on 03/18/2014 09:43am

A bill for an act
relating to retirement; Teachers Retirement Association and the individual
retirement account plan; correcting a plan election provision; authorizing eligible
Minnesota State Colleges and Universities system employees to elect Teachers
Retirement Association coverage and to receive retroactive coverage.

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

Section 1. new text begin TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE
TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF
PAST SERVICE CREDIT.
new text end

new text begin (a) 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 1, 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:
new text end

new text begin (1) was born on October 29, 1957;
new text end

new text begin (2) has been employed at Mesabi Range Community and Technical College as
an instructor since 1993;
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new text begin (3) in 1994 was classified in the unlimited part-time category;
new text end

new text begin (4) became eligible for and was covered by the higher education individual
retirement account plan in January 1994; and
new text end

new text begin (5) was not offered an election of Teachers Retirement Association coverage, as
required under Laws 1994, chapter 508, article 1, section 10.
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 as of September 1, 2014, for an applicable
eligible person, and past salary and service credit is granted from January 1, 1995,
as specified in this section, following receipt by the executive director of the written
application specified in this paragraph and receipt of the payments specified in paragraphs
(d) and (e). The authority granted by this section is voided if the applicable eligible
individual terminates from Minnesota State Colleges and Universities system employment
prior to receipt by the executive director of the Teachers Retirement Association of the
application specified in this paragraph and amounts specified in paragraphs (d) and (e).
Coverage by the Teachers Retirement Association is in lieu of coverage by the individual
retirement account plan.
new text end

new text begin (d) If an eligible person makes an election under paragraph (c), the eligible person
shall make, before September 1, 2014, a contribution equal to the excess, if any, of the
employee contributions that the individual would have made if the Teachers Retirement
Association had provided coverage from January 1, 1995, rather than the individual
retirement account plan. These additional contribution amounts shall include 8.5 percent
annual compound interest 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 should be transmitted
to the eligible individual.
new text end

new text begin (e) If payment is made under paragraph (d), the value of the applicable eligible
person's higher education individual retirement account plan account shall be determined
as of September 1, 2014. The executive director of the Teachers Retirement Association
shall also compute that account's compounded 1995 value. The compounded 1995 value
is the value of the applicable account as of January 1, 1995, plus 8.5 percent annual
compound interest on that amount computed from January 1, 1995, to September 1,
2014. Notwithstanding any law to the contrary, if payment is made under paragraph (d),
the value of the applicable eligible person's individual retirement account plan account
as of September 1, 2014, minus the compounded 1995 value, shall be transferred to the
Teachers Retirement Association on or before September 15, 2014.
new text end

new text begin (f) The Teachers Retirement Association shall determine the full actuarial value
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 Colleges and Universities system is authorized to transmit the
remaining amount, if any, to the executive director of the Teachers Retirement Association.
new text end

new text begin (h) Any payment amount specified from the Minnesota State Colleges and
Universities system under paragraph (g) shall be transmitted to the Teachers Retirement
Association within one month following receipt of amounts transmitted under paragraphs
(d) and (e), and following notification from the executive director of the Teachers
Retirement Association. If a payment from the Minnesota State Colleges and Universities
system specified under paragraph (g) is not made, the executive director of the Teachers
Retirement Association must notify the commissioner of Minnesota Management and
Budget of this fact and that commissioner must order that amounts specified under
paragraph (g) shall be deducted from appropriations or state aid to the Minnesota
State Colleges and Universities system and be transmitted to the Teachers Retirement
Association.
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

Sec. 2. new text begin PROSPECTIVE TRA COVERAGE; SERVICE CREDIT PURCHASE;
IDENTIFICATION OF ELIGIBLE PERSONS NOT OFFERED ELECTION.
new text end

new text begin (a) An eligible person is a person who:
new text end

new text begin (1) was employed during all or part of the period from January 1, 1994, to December
31, 1995, by a Minnesota state college, state university, or community college under the
authority of the Minnesota State Colleges and Universities system board or a predecessor
organization;
new text end

new text begin (2) is currently employed in the Minnesota State Colleges and Universities system
with coverage by the higher education individual retirement account plan;
new text end

new text begin (3) has not commenced receipt of any assets or benefits derived from the individual
retirement account plan account, or commenced receipt of any benefits from the Teachers
Retirement Association, or any first class city teachers retirement association plan; and
new text end

new text begin (4) should have been offered an election of plan coverage under Laws 1994,
chapter 508, article 1, section 10, but was not offered that election due to a failure by
the Minnesota State Colleges and Universities system board or its agents to identify all
persons eligible for those elections.
new text end

new text begin (b) Notwithstanding any law to the contrary, a person specified in paragraph (a) is
eligible for the treatment specified in section 1.
new text end

new text begin (c) The board of the Minnesota State Colleges and Universities system or its agent
shall notify by certified mail all persons identified in paragraph (a) by July 15, 2014, of
their eligibility under this section.
new text end

new text begin Before February 1, 2015, the board of the Minnesota State Colleges and Universities
system shall report to the executive director of the Legislative Commission on Pensions
and Retirement on the number of persons identified under this section, the number electing
Teachers Retirement Association coverage, and the payment transmitted by the Minnesota
State Colleges and Universities system to the Teachers Retirement Association in each
case, either through direct payment or aid or appropriation reallocation.
new text end

new text begin (e) This section does not apply to an eligible person specified in section 1.
new text end

new text begin (f) This section does not apply to a person specified in Laws 2006, chapter 271,
article 14, section 8.
new text end

new text begin (g) This section expires on July 1, 2015.
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