HF 3192

as introduced - 86th Legislature (2009 - 2010) Posted on 02/25/2010 08:53am

A bill for an act
relating to retirement; specifying coverage for certain Minnesota State Colleges
and Universities employees; requiring employer to provide certain notices;
amending Minnesota Statutes 2008, section 354B.21, subdivision 3, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2008, section 354B.21, subdivision 3, is amended to read:

Subd. 3.

Default coverage.

(a) Prior to making an election under subdivision 2, or
if an eligible person fails to elect coverage by the plan under subdivision 2 or if the person
fails to make a timely election, the following retirement coverage applies:

(1) for employees of the board who are employed in faculty positions in the technical
colleges, in the state universities or in the community colleges, the retirement coverage
is by the plan established by this chapter;

(2) for employees of the board who are employed in faculty positions in the technical
colleges, the retirement coverage is by the plan established by this chapter unless on June
30, 1997, the employee was a member of the Teachers Retirement Association established
under chapter 354 and then the retirement coverage is by the Teachers Retirement
Association, or, unless the employee was a member of a first class city teacher retirement
fund established under chapter 354A on June 30, 1995, and then the retirement coverage
is by the Duluth Teachers Retirement Fund Association if the person was a member of
that plan on June 30, 1995, or the Teachers Retirement Association if the person was a
member of the former Minneapolis Teachers Retirement Fund Association on June 30,
1995, or the St. Paul Teachers Retirement Fund Association if the person was a member
of that plan on June 30, 1995; and

(3) for employees of the board who are employed in eligible unclassified
administrative positions, the retirement coverage is by the plan established by this chapter new text begin ,
unless the employee has sufficient service credit in one or more plans listed in section
356.30, subdivision 3, to entitle the person to receive an annuity from one or more of those
plans upon reaching the plan's minimum age for receipt of an annuity, in which case the
retirement coverage is the Teachers Retirement Association new text end .

(b) If an employee fails to correctly certify prior membership in the Teachers
Retirement Association to the Minnesota State colleges and Universities system, the
system shall not pay interest on employee contributions, employer contributions, and
additional employer contributions to the Teachers Retirement Association under section
354.52, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to a person who on or after that date is appointed to, transferred to, or whose
position is reclassified to an eligible unclassified administrative position.
new text end

Sec. 2.

Minnesota Statutes 2008, section 354B.21, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Required notice; counseling. new text end

new text begin This subdivision applies when a person
is appointed to, transferred to, or reclassified to an eligible unclassified administrative
position. Within five days of a person beginning work in a position subject to this
subdivision, the employer must give the employee the following information:
new text end

new text begin (1) the default retirement coverage for the person in the new position, including the
fact that the default coverage depends on whether the person is vested in other public
pension plans;
new text end

new text begin (2) how the person can choose coverage other than the default coverage;
new text end

new text begin (3) the name and telephone number of a contact person at the Teachers Retirement
Association, a contact person for retirement coverage under this chapter, and a link to
the Web site of the Teachers Retirement Association and the Web site for retirement
coverage under this chapter; and
new text end

new text begin (4) the name and telephone number of a contact person and a link to the Web site
of the person's current exclusive representative and of the person's former exclusive
representative if the person had a different exclusive representative within the Minnesota
State Colleges and Universities System immediately before starting the new position.
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