SF 3366

as introduced - 89th Legislature (2015 - 2016) Posted on 04/04/2016 09:03am

A bill for an act
relating to retirement; Teachers Retirement Association; coverage election for
certain Mesabi Range Community and Technical College faculty members not
offered a coverage election upon reaching tenure.

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

Section 1. new text begin TRA COVERAGE FOR CERTAIN MESABI RANGE COMMUNITY
AND TECHNICAL COLLEGE FACULTY MEMBERS.
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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 retroactive from July 19, 2000, or September 15,
2000, whichever is applicable, 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) either:
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new text begin (i) was born on September 25, 1964, and has been employed at Mesabi Range
Community and Technical College and a contributing member of the higher education
individual retirement account plan since July 19, 2000; or
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new text begin (ii) was born on October 15, 1963, and has been employed at Mesabi Range
Community and Technical College and a contributing member of the higher education
individual retirement account plan since September 15, 2000;
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new text begin (2) was classified in the unlimited full-time category on August 21, 2012;
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new text begin (3) became eligible for an election of Teachers Retirement Association coverage
under Laws 2009, chapter 169, article 6, section 1; and
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new text begin (4) was not offered an election of Teachers Retirement Association coverage by the
Minnesota State Colleges and Universities System.
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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 Colleges and Universities System employment from July 19, 2000, or September 15,
2000, whichever is applicable, until the executive director receives the written application
specified in this paragraph and receipts of the payments specified in paragraphs (d) and
(e). Coverage by the Teachers Retirement Association is in lieu of coverage by the
individual retirement account plan.
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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 the Teachers Retirement Association had provided coverage from July 19, 2000, or
September 15, 2000, whichever is applicable, 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 must be transmitted to the eligible person.
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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 transferred
to the Teachers Retirement Association.
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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 Colleges and Universities System must transmit the
remaining amount, if any, to the executive director of the Teachers Retirement Association
within 60 days following the receipt of the 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
on January 1, 2017.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end