Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 293-S.F.No. 906 
           An act relating to retirement; authorizing purchase of 
          military service credit by a certain teachers 
          retirement association member; authorizing issuance of 
          a state Persian Gulf war ribbon; proposing coding for 
          new law in Minnesota Statutes, chapter 190. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [190.17] [STATE PERSIAN GULF WAR RIBBON.] 
    From money appropriated for the purpose, the adjutant 
general shall issue a state ribbon to each Minnesota resident 
who is a member of the Minnesota army or air national guard who 
has been called to active duty to participate in Operation 
Desert Shield, Operation Desert Storm, or any other military 
operation that is part of the war in the Persian Gulf region.  
The adjutant general may adopt rules necessary to implement this 
section.  In the case of other reservists ordered to active 
duty, a certificate replica of the state ribbon will be rendered.
    Sec. 2.  [TEACHER'S MILITARY SERVICE CREDIT.] 
    Subdivision 1.  Notwithstanding the provisions of Minnesota 
Statutes, section 354.094, a member of the teachers retirement 
association who was born May 23, 1936, and who is employed by 
independent school district No. 833 may purchase allowable 
service credit for a one-year period of involuntary extension of 
military active duty performed after June 30, 1984, and before 
July 1, 1985, and not previously credited to the member. 
    Subd. 2.  [PURCHASE PAYMENT AMOUNT.] To purchase service 
credit under subdivision 1, there must be paid to the teachers 
retirement association an amount equal to the present value, on 
the date of payment, of the amount of the additional retirement 
annuity that would be obtained by the purchase.  Present value 
shall be calculated using the preretirement interest rate 
specified in Minnesota Statutes, section 356.215, subdivision 
4d, and the mortality table adopted for the fund and assuming 
continuous future service as a member of the association until 
the requirements for retirement at the minimum age for normal 
retirement or retirement with an annuity unreduced for early 
retirement are met with the additional service credit 
purchased.  The calculation shall also assume future salary 
history that includes annual salary increases at the rate 
specified in Minnesota Statutes, section 356.215, subdivision 
4d.  The member must establish proof of the service for which 
the purchase of service credit is requested in the manner 
prescribed by the executive director of the teachers retirement 
association. 
    Subd. 3.  [PAYMENT; CREDITING SERVICE.] Payment must be 
made in one lump sum.  Allowable service may be credited only 
after receipt of full payment by the executive director. 
    Subd. 4.  [OPTIONAL EMPLOYER PARTIAL PAYMENT.] Payment must 
be made by the member.  However, the current or former employer 
of the member may, in its discretion, pay all or any portion of 
the payment amount that exceeds an amount equal to the employee 
contribution rates in effect or required during the period of 
military service, applied to the actual salary rates in effect 
after the period of military service, plus interest at the rate 
of six percent a year compounded annually from the date on which 
the contributions would otherwise have been made to the date on 
which the payment is made. 
    Sec. 3.  [EFFECTIVE DATE.] 
    Section 2 is effective the day following final enactment. 
    Presented to the governor May 29, 1991 
    Signed by the governor June 1, 1991, 4:06 p.m.