as introduced - 88th Legislature (2013 - 2014) Posted on 02/26/2013 08:56am
A bill for an act
relating to retirement; Minnesota State Colleges and Universities system faculty
retirement coverage elections; eliminating a sunset date; amending Minnesota
Statutes 2012, section 354B.21, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2012, section 354B.21, subdivision 2, is amended to read:
(a) An eligible person employed by the board has
the default coverage specified in subdivision 3, or other subdivisions of this section,
whichever is applicable, and retains that coverage for the period of covered employment
unless a timely election to change that coverage is made as specified in this section.
(b) An eligible person under subdivision 3, paragraph (b) or (c), is authorized to elect
prospective Teachers Retirement Association plan coverage.
(c) An eligible person under subdivision 3, paragraph (d), is authorized to elect
prospective coverage by the plan established by this chapter.
(d) The election under paragraph (a) must 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.
Except as specified in paragraph (f), all elections are irrevocable.
(e) Except as provided in paragraph (f), 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 before the election under this section
(f) Notwithstanding other paragraphs in this subdivision, a faculty member who
is a member of the individual retirement account plan may elect to transfer retirement
coverage to the teachers retirement plan within one year of the faculty member first
achieving tenure or its equivalent at a Minnesota state college or university. The faculty
member electing Teachers Retirement Association coverage under this paragraph must
purchase service credit in the Teachers Retirement Association for the entire period of
time covered under the individual retirement account plan and the purchase payment
amount must be determined under section 356.551. The Teachers Retirement Association
may charge a faculty member transferring 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 transferring from the individual retirement account plan to the
Teachers Retirement Association may use any balances to the credit of the faculty member
in the individual retirement account plan, any balances to the credit of the faculty member
in the higher education supplemental retirement plan established under chapter 354C, or
any source specified in section 356.441, subdivision 1, to purchase the service credit in the
Teachers Retirement Association. If the total amount of payments under this paragraph are
less than the total purchase payment amount under section 356.551, the payment amounts
must be refunded to the applicable source. deleted text beginThe retirement coverage transfer and service
credit purchase authority under this paragraph expires with respect to any Minnesota State
Colleges and Universities System faculty initially hired after June 30, 2014.
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