SF 1839

as introduced - 90th Legislature (2017 - 2018) Posted on 06/21/2018 03:18pm

A bill for an act
relating to retirement; Teachers Retirement Association, Minnesota State Retirement
System, and the higher education individual retirement account plan; correcting a
plan election problem; authorizing eligible Winona State University employees to
elect Teachers Retirement Association coverage and receive retroactive coverage.

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

Section 1. new text begin TEACHERS RETIREMENT ASSOCIATION COVERAGE ELECTION
AND MINNESOTA STATE RETIREMENT SYSTEM REFUND REPAYMENT
AUTHORITY FOR CERTAIN WINONA STATE UNIVERSITY EMPLOYEE.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapter 352 or 354B, to the
contrary, an eligible person described in paragraph (b) is eligible 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 repaying a member contribution refund taken from the general employees retirement
plan of the Minnesota State Retirement System under paragraph (c), upon making an election
under paragraph (e), and upon making all required payments under paragraphs (f), (g), and
(h).
new text end

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

new text begin (1) was born November 11, 1957;
new text end

new text begin (2) began state employment in 1981, with retirement coverage in the general employees
retirement plan of the Minnesota State Retirement System for which a refund of member
contributions and interest was taken;
new text end

new text begin (3) was employed by Winona State University on September 11, 1989, with retirement
coverage in the higher education individual retirement account plan; and
new text end

new text begin (4) was not informed of the option to elect Teachers Retirement Association coverage
in the coverage election authorized under Laws 1994, chapter 508, article 1, section 10, so
remained in the higher education individual retirement account plan.
new text end

new text begin (c) The refund repayment required by Minnesota Statutes, section 356.551, subdivision
1, paragraph (c), must be calculated under Minnesota Statutes, section 352.23.
new text end

new text begin (d) Authority to repay a refund under this section expires one year from the effective
date of this section.
new text end

new text begin (e) 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 relevant documentation and 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 January
1, 1995, until the executive director receives the written application specified in this
paragraph and receipts of the payments specified in paragraphs (c), (f), (g), and (h). Coverage
by the Teachers Retirement Association is in lieu of coverage by the individual retirement
account plan.
new text end

new text begin (f) If the eligible person makes the retirement coverage election under paragraph (e),
the eligible person's member contributions to the higher education individual retirement
account plan account from January 1, 1995, to the date of the retirement coverage election
must be transferred to the Teachers Retirement Association, with any earned investment
returns on those contributions. If the transferred member contributions and investment
earnings are less than the calculated amount of the member contributions that the eligible
person would have made to the Teachers Retirement Association on the eligible person's
compensation from the Minnesota State Colleges and Universities system for the period
from January 1, 1995, to the date of the retirement coverage election, if the person had been
covered by the Teachers Retirement Association during the period, plus annual compound
interest at the rate of 8.5 percent, then the eligible person shall pay the balance of that
calculated member contribution obligation within 30 days of the retirement coverage election.
new text end

new text begin (g) Upon the transfer of the equivalent member contribution amount and any additional
payment under paragraph (f), the employer contributions made on behalf of the eligible
member to the higher education individual retirement account plan account from January
1, 1995, to the date of the retirement coverage election must be transferred to the Teachers
Retirement Association, with any earned investment returns on those contributions.
new text end

new text begin (h) If the amounts under paragraphs (f) and (g) are less than the prior service credit
purchase payment amount under Minnesota Statutes, section 356.551, the Minnesota State
Colleges and Universities system shall pay the difference within 60 days following receipt
of the amounts transmitted under paragraphs (f) and (g).
new text end

new text begin (i) 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