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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 508-H.F.No. 2124 
                  An act relating to retirement; state university and 
                  state community college individual retirement account 
                  plans; clarifying various plan provisions; providing 
                  for plan coverage for technical college teachers; 
                  providing for an optional election of plan coverage 
                  for certain state university and community college 
                  teachers; mandating the preparation of plan 
                  recodification legislation; amending Minnesota 
                  Statutes 1992, sections 353.27, subdivision 7a; 
                  354.05, subdivision 2a; 354.42, subdivision 7; 
                  354B.01, by adding a subdivision; 354B.015; and 
                  354B.02, subdivision 2, and by adding a subdivision; 
                  Minnesota Statutes 1993 Supplement, sections 352.04, 
                  subdivision 9; 354A.011, subdivision 27; 354B.02, 
                  subdivision 1; and 354B.05, subdivision 3; proposing 
                  coding for new law in Minnesota Statutes, chapter 
                  354B; proposing coding for new law as Minnesota 
                  Statutes, chapter 354C. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                      TECHNICAL COLLEGE TEACHING PERSONNEL
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        352.04, subdivision 9, is amended to read: 
           Subd. 9.  [ERRONEOUS DEDUCTIONS, CANCELED WARRANTS.] (a) 
        Deductions taken from the salary of an employee for the 
        retirement fund in error must, upon discovery and verification 
        by the department making the deduction, be refunded to the 
        employee.  
           (b) If a deduction for the retirement fund is taken from a 
        salary warrant or check, and the check is canceled or the amount 
        of the warrant or check returned to the funds of the department 
        making the payment, the sum deducted, or the part of it required 
        to adjust the deductions, must be refunded to the department or 
        institution if the department applies for the refund on a form 
        furnished by the director.  The department's payments must 
        likewise be refunded to the department.  
           (c) Employee deductions and employer contributions taken in 
        error may be directly transferred, without interest, to another 
        Minnesota public employee retirement fund listed in section 
        356.30, subdivision 3, plan by which the employee is actually 
        covered. 
           For purposes of this subdivision, a Minnesota public 
        pension plan means a plan specified in section 356.30, 
        subdivision 3, or the plan governed by chapter 354B. 
           Sec. 2.  Minnesota Statutes 1992, section 353.27, 
        subdivision 7a, is amended to read: 
           Subd. 7a.  [DEDUCTIONS OR CONTRIBUTIONS TRANSMITTED BY 
        ERROR.] (a) If employee deductions and employer contributions 
        were erroneously transmitted to the association, but should have 
        been transmitted to another Minnesota public pension fund listed 
        in section 356.30, subdivision 3 plan, the association shall 
        transfer the erroneous employee deductions and employer 
        contributions to the appropriate retirement fund without 
        interest.  The time limitations in subdivisions 7 and 12 do not 
        apply. 
           (b) For purposes of this subdivision, a Minnesota public 
        pension plan means a plan specified in section 356.30, 
        subdivision 3, or the plan governed by chapter 354B. 
           Sec. 3.  Minnesota Statutes 1992, section 354.05, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [EXCEPTIONS.] (a) Notwithstanding subdivision 2, 
        a person who is first employed as a teacher in the state 
        university system or the state community college system after 
        June 30, 1989, specified in paragraph (b) is not a member of the 
        fund except for purposes of social security coverage unless (1) 
        the person is covered by section 354B.02, subdivision 2, and 
        remains a member of the fund for all purposes or, (2) the person 
        is covered by section 354B.02, subdivision 1 or 5, or 354B.035, 
        and elects coverage by the teachers retirement association. 
           (b) A teacher is excluded from fund membership under 
        paragraph (a) if first employed as: 
           (1) a teacher in the state university system after June 30, 
        1989; 
           (2) a teacher in the state community college system after 
        June 30, 1989; or 
           (3) a teacher in a technical college authorized under 
        chapter 136C or 136D after June 30, 1995. 
           Sec. 4.  Minnesota Statutes 1992, section 354.42, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ERRONEOUS SALARY DEDUCTIONS OR DIRECT PAYMENTS.] 
        (a) Any deductions taken from the salary of an employee for the 
        retirement fund in error shall be refunded to the employee upon 
        discovery and verification by the employing unit making the 
        deduction, and the corresponding employer contribution and 
        additional employer contribution amounts attributable to the 
        erroneous salary deduction must be refunded to the employing 
        unit. 
           (b) If salary deductions and employer contributions were 
        erroneously transmitted to the retirement fund and should have 
        been transmitted to another Minnesota public pension fund 
        enumerated in section 356.30, subdivision 3 plan, the retirement 
        fund must transfer these salary deductions and employer 
        contributions to the appropriate public pension fund without 
        interest.  For purposes of this paragraph, a Minnesota public 
        pension plan means a plan specified in section 356.30, 
        subdivision 3, or the plan governed by chapter 354B. 
           (c) If a salary warrant or check from which a deduction for 
        the retirement fund was taken has been canceled or the amount of 
        the warrant or check has been returned to the funds of the 
        employing unit making the payment, a refund of the amount 
        deducted, or any portion of it that is required to adjust the 
        salary deductions, shall be made to the employing unit. 
           (d) Any erroneous direct payments of member paid 
        contributions or erroneous salary deductions that were not 
        refunded in the regular processing of an employing unit's annual 
        summary report shall be refunded to the member with interest 
        computed using the rate and method specified in section 354.49, 
        subdivision 2. 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        354A.011, subdivision 27, is amended to read: 
           Subd. 27.  [TEACHER.] "Teacher" means any person who 
        renders service in a public school district located in the 
        corporate limits of one of the cities of the first class which 
        was so classified on January 1, 1979, as any of the following: 
           (a) a full-time employee in a position for which a valid 
        license from the state department of education is required; 
           (b) an employee of the teachers retirement fund association 
        located in the city of the first class unless the employee has 
        exercised the option pursuant to Laws 1955, chapter 10, section 
        1, to retain membership in the Minneapolis employees retirement 
        fund established pursuant to chapter 422A; 
           (c) a part-time employee in a position for which a valid 
        license from the state department of education is required; or 
           (d) a part-time employee in a position for which a valid 
        license from the state department of education is required who 
        also renders other nonteaching services for the school district 
        unless the board of trustees of the teachers retirement fund 
        association determines that the combined employment is on the 
        whole so substantially dissimilar to teaching service that the 
        service shall not be covered by the association. 
           The term shall not mean any person who renders service in 
        the school district as any of the following: 
           (1) an independent contractor or the employee of an 
        independent contractor; 
           (2) an employee who is a full-time teacher covered by 
        another teachers retirement fund association established 
        pursuant to this chapter or chapter 354; 
           (3) an employee holding a part-time adult supplementary 
        technical college license who renders part-time teaching service 
        in a technical college if (1) the service is incidental to the 
        regular nonteaching occupation of the person; and (2) the 
        applicable technical college stipulates annually in advance that 
        the part-time teaching service will not exceed 300 hours in a 
        fiscal year; and (3) the part-time teaching service actually 
        does not exceed 300 hours in a fiscal year; or 
           (4) an employee exempt from licensure pursuant to section 
        125.031; or 
           (4) an employee who is a teacher in a technical college 
        located in a city of the first class unless the person elects 
        coverage by the applicable first class city teacher retirement 
        fund association under section 354B.02, subdivision 1, or 
        354B.035. 
           Sec. 6.  Minnesota Statutes 1992, section 354B.01, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [COVERED EMPLOYMENT; TECHNICAL COLLEGES.] 
        "Covered employment," with respect to employment by a technical 
        college authorized under chapter 136C or 136D, means employment 
        in a position included in the definition of teacher under 
        section 354.05, subdivision 2. 
           Sec. 7.  Minnesota Statutes 1992, section 354B.015, is 
        amended to read: 
           354B.015 [SOCIAL SECURITY COVERAGE.] 
           Plan participants under section 354B.02, subdivision 1, and 
        persons electing participation under section 354B.02, 
        subdivision 2 or, 3, or 5, or 354B.035, remain members of the 
        teachers retirement association or the state unclassified 
        employees retirement program, whichever applies, for purposes of 
        social security coverage only and remain covered by the 
        applicable agreement entered into under section 355.02, but are 
        not members of the teachers retirement association or the state 
        unclassified employees retirement program for any other purpose 
        while employed in covered employment. 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        354B.02, subdivision 1, is amended to read: 
           Subdivision 1.  [PLAN PARTICIPANTS.] (a) Except as provided 
        in subdivision 2, or unless the person has elected retirement 
        coverage under section 352D.02, subdivision 1a, a person who was 
        first employed in covered employment under section 354B.01, 
        subdivision 2 or 3, after June 30, 1989, shall participate in 
        the plan.  A person who was first employed in covered employment 
        or first included in coverage under section 354B.01, subdivision 
        4a, after June 30, 1995, may participate in the plan or may 
        elect coverage by the teachers retirement association.  Election 
        to participate in the plan or the association must be made 
        within 60 days of the start of covered employment and must be 
        made under section 354B.035.  A technical college teacher who 
        does not make the election within the 60 days shall become a 
        member of the plan governed by chapter 354 or 354A. 
           (b) Except as provided in paragraph (a), or subdivision 2, 
        or unless the person has elected retirement coverage under 
        section 352D.02, subdivision 1, paragraph (b), clause (6) or 
        (13), a person who was first employed in covered employment 
        after July 1, 1992, shall participate in the plan. 
           (c) Participants or employees who would be participants in 
        this plan but for prior participation in the teachers retirement 
        association or the other Minnesota public employee retirement 
        plan governed by section 356.30, whichever applies, and who are 
        subsequently appointed to a position with the community college 
        system or the state university system designated as an acting, 
        temporary, or interim position, shall remain in the teachers 
        retirement association or the other Minnesota public employee 
        plan during the term of the acting, temporary, or interim 
        position.  If the participant's status becomes permanent, the 
        participant has the option to make a new election appropriate to 
        the plan in which the position should be located. 
           Sec. 9.  Minnesota Statutes 1992, section 354B.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERSONS WITH CERTAIN PRIOR ALLOWABLE SERVICE.] A 
        person with less than three years of prior allowable service as 
        a member of the teachers retirement association other than in 
        covered employment under section 354B.01, subdivision 2 or 3, 
        and who is first employed in covered employment after June 30, 
        1989, remains a member of the teacher's retirement association 
        for all purposes, but a coordinated member may elect to 
        participate in the plan.  This election to participate in the 
        plan must be made by January 1, 1995, or within 60 days of the 
        start of covered employment, whichever is later. 
           Sec. 10.  Minnesota Statutes 1992, section 354B.02, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [OPTIONAL ELECTION PROVISIONS FOR STATE 
        UNIVERSITY AND COMMUNITY COLLEGE PARTICIPANTS.] (a) 
        Notwithstanding any other provision of this chapter or chapter 
        354 to the contrary, state university and community college 
        employees who have not previously exercised their option to 
        elect to transfer to this plan or remain with the teachers 
        retirement association are eligible to make that election.  
        Participants in either the plan or association may transfer 
        benefit coverage to the other.  A transfer election is 
        irrevocable during any period of covered employment under this 
        section and is subject to the conditions of paragraphs (b), (c), 
        and (d). 
           (b) Members of the teachers retirement association as of 
        July 1, 1994, or employees newly hired after that date who have 
        prior allowable service credit as a member in the teachers 
        retirement association are eligible to transfer service credit 
        prospectively only.  Existing contributions and service credit 
        must remain with the teachers retirement association and the 
        person is eligible for an augmented deferred retirement annuity 
        from the teachers retirement association under section 354.55, 
        subdivision 11.  A transfer election made under this subdivision 
        is irrevocable. 
           (c) Members of the plan as of July 1, 1994, who were first 
        employed after June 30, 1989, may transfer membership 
        prospectively only to the teachers retirement association, 
        effective on the date the transfer election is made.  Funds 
        previously invested under the plan with the financial 
        institution selected by the member are not eligible to be 
        transferred to the association.  Withdrawal of funds from the 
        plan by a member is subject to rules of the plan.  An election 
        to transfer membership to the teachers retirement association is 
        irrevocable during any period of covered employment.  The 
        employer of a transferring member must make the additional 
        employer contribution provided for in section 354.42, 
        subdivision 5, for future service only. 
           (d) Transfer elections under this section must be made 
        within 90 days from the date on which the executive director or 
        plan administrator provides notification of the election and 
        must be elected on forms prescribed by the plan administrator or 
        executive director. 
           Sec. 11.  [354B.035] [TECHNICAL COLLEGE TEACHING PERSONNEL; 
        TRANSITIONAL PROVISIONS.] 
           Subdivision 1.  [APPLICATION.] Notwithstanding any 
        provision of this chapter to the contrary, this section applies 
        only to plan coverage for technical college members covered 
        under section 354B.01, subdivision 4a. 
           Subd. 2.  [ELECTION TO PARTICIPATE.] Technical college 
        teaching personnel may either elect to participate in the plan 
        or elect coverage by the teachers retirement association, the 
        Duluth teachers retirement fund association, the Minneapolis 
        teachers retirement fund association, or the St. Paul teachers 
        retirement fund association as follows: 
           (a) A technical college teacher first employed in covered 
        employment after June 30, 1995, must make the election within 60 
        days of the start of covered employment, on a form provided by 
        the state university plan administrator under section 354B.05, 
        subdivision 1.  The election is irrevocable during any future 
        period of covered service. 
           (b) A technical college teacher with prior allowable 
        service as a member of the teachers retirement association or of 
        a first class city teachers retirement fund association may 
        elect coverage by the applicable plan.  If that coverage is 
        elected, the election is irrevocable, accumulated employer and 
        employee contributions and prior allowable service credit under 
        section 354.05, subdivision 13, or 354A.011, subdivision 4, 
        whichever applies, must remain with the applicable teachers 
        retirement fund, and the teacher is eligible for an augmented 
        deferred retirement annuity from the teachers retirement 
        association under section 354.55, subdivision 11, or the 
        applicable first class city teachers retirement fund association 
        under section 354A.37, subdivision 2. 
           Subd. 3.  [EMPLOYER CONTRIBUTION AMOUNT FOR CERTAIN 
        COVERAGE ELECTIONS.] Employer contributions for technical 
        college teaching personnel who elect coverage by the teachers 
        retirement fund association are governed by section 354.42, 
        subdivisions 3 and 5, and employer contributions for technical 
        college teaching personnel who elect coverage by a first class 
        city teacher retirement fund association are governed by the 
        applicable employer contribution provisions of section 354A.12, 
        subdivision 2a. 
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        354B.05, subdivision 3, is amended to read: 
           Subd. 3.  [SELECTION OF FINANCIAL INSTITUTIONS.] The 
        supplemental investment fund administered by the state board of 
        investment is one of the investment options for the plan.  The 
        state board of investment may select two up to five other 
        financial institutions to provide annuity products.  In making 
        their selections, the board shall consider at least these 
        criteria: 
           (1) the experience and ability of the financial institution 
        to provide retirement and death benefits suited to the needs of 
        the covered employees; 
           (2) the relationship of the benefits to their cost; and 
           (3) the financial strength and stability of the institution.
           The state board of investment must periodically review at 
        least every three years each financial institution selected by 
        the state board of investment.  The state board of investment 
        may retain consulting services to assist in the periodic review, 
        may establish a budget for its costs in the periodic review 
        process, and may charge a proportional share of those costs to 
        each financial institution selected by the state board of 
        investment.  All contracts must be approved by the state board 
        of investment before execution by the state university board and 
        the community college board.  The state board of investment 
        shall also establish policies and procedures under section 
        11A.04, clause (2), to carry out this subdivision. 
           The chancellor of the state university system and the 
        chancellor of the state community college system shall redeem 
        all shares in the accounts of the Minnesota supplemental 
        investment fund held on behalf of personnel in the supplemental 
        plan who elect an investment option other than the supplemental 
        investment fund, except that shares in the fixed interest 
        account must not be redeemed until the expiration dates for the 
        guaranteed investment contracts.  The chancellors shall transfer 
        the cash realized to the financial institutions selected by the 
        state university board and the community college board under 
        section 354B.05.  
           Sec. 13.  [354B.15] [TRANSFER OF CERTAIN TRA MEMBER 
        CONTRIBUTION REFUNDS TO IRAP.] 
           (a) Notwithstanding any provision of law to the contrary, a 
        former member of the teachers retirement fund association who 
        has less than three years of allowable service and who is a 
        member of the plan governed by this chapter may elect to 
        transfer to the plan an amount equal to the refund that the 
        member could otherwise receive under section 354.49, subdivision 
        2.  The transfer must be made from the teachers retirement fund 
        association directly to the plan and credited by the plan 
        appropriately.  No amount under this section is payable directly 
        to an individual. 
           (b) The election must be made on a form prescribed by the 
        executive director of the teachers retirement fund association, 
        after consultation with the administrators of the plan. 
           Sec. 14.  [CHAPTER 354B RECODIFICATION.] 
           (a) The staff of the legislative commission on pensions and 
        retirement, in conjunction with representatives of the higher 
        education board, the state university board, the state community 
        college board, one representative from each employee bargaining 
        unit covered by chapter 354B, and other interested parties, 
        shall prepare proposed legislation to recodify Minnesota 
        Statutes, chapter 354B. 
           (b) The proposed legislation must be submitted to the 
        chairs of the senate committee on governmental operations and 
        reform, the senate committee on education, the house of 
        representatives committee on governmental operations and 
        gambling, and the house of representatives committee on 
        education by January 15, 1995. 
           (c) The proposed legislation must accomplish the following: 
           (1) eliminate obsolete and duplicate references in 
        Minnesota Statutes, chapter 354B; 
           (2) clarify obscure or ambiguous language in Minnesota 
        Statutes, chapter 354B, with special attention given to the 
        effects of the higher education systems merger provided in 
        Minnesota Statutes, chapter 136E; 
           (3) merge the separate individual retirement account plans 
        currently administered by the state university system and the 
        state community college system; 
           (4) wherever possible, eliminate unnecessary or duplicative 
        administrative provisions; and 
           (5) implement those appropriate retirement plan provisions 
        necessary to give effect to the purposes of Minnesota Statutes, 
        chapter 136E. 
           Sec. 15.  [EFFECTIVE DATES.] 
           (a) Sections 1, 2, 4, 10, 12, and 13 are effective July 1, 
        1994. 
           (b) Sections 3, 5, 6, 7, 8, and 11 are effective July 1, 
        1995. 
                                   ARTICLE 2
                       INDIVIDUAL RETIREMENT ACCOUNT PLAN
           Section 1.  [354C.01] [DEFINITIONS.] 
           Subdivision 1.  [TERMS.] Unless the language or context 
        clearly indicates that a different meaning is intended, the 
        following terms have the meanings given. 
           Subd. 2.  [INDIVIDUAL RETIREMENT ACCOUNT PLAN OR 
        PLAN.] "Individual retirement account plan" or "plan" means the 
        individual retirement account plan established by sections 
        354B.01 to 354B.05. 
           Subd. 3.  [COVERED EMPLOYMENT.] "Covered employment" means 
        employment as an eligible employee as defined under section 
        354C.02, subdivision 2. 
           Subd. 4.  [PROFESSIONAL EMPLOYEE.] "Professional employee" 
        means an employee who is engaged in work that: 
           (1) is predominantly intellectual and varied in character 
        as opposed to routine mental, manual, mechanical, or physical; 
           (2) involves discretion and judgment in its performance; 
           (3) cannot be standardized in relation to a given period of 
        time; and 
           (4) requires advance knowledge in a field of science or 
        learning usually acquired by long study in an institution of 
        higher learning or hospital. 
           Subd. 5.  [SUPERVISORY EMPLOYEE.] "Supervisory employee" 
        means an employee having the authority to hire, transfer, 
        suspend, promote, discharge, assign, reward, or discipline 
        employees, direct the work of employees, or adjust employees' 
        grievances on behalf of the employer.  To be included as a 
        supervisory function, the exercise of the authority by the 
        employee may not be merely routine or clerical in nature but 
        must require the use of independent judgment. 
           Sec. 2.  [354C.02] [PARTICIPANTS.] 
           Subdivision 1.  [ELECTION.] An eligible employee as 
        enumerated in subdivision 2 who is eligible for membership in 
        the Minnesota state retirement system under chapter 352, the 
        public employees retirement association under chapter 353, or 
        the teachers retirement association under chapter 354 may elect 
        to participate in the individual retirement account plan rather 
        than in the general state retirement plan.  Election to 
        participate in the plan must be made pursuant to section 354C.04.
           Subd. 2.  [ELIGIBILITY.] Eligible employees are: 
           (1) any supervisory or professional employee of the state 
        arts board; and 
           (2) any supervisory or professional employee of the 
        Minnesota humanities commission. 
           Sec. 3.  [354C.03] [SOCIAL SECURITY COVERAGE.] 
           Plan participants remain members of the general state 
        retirement plan for purposes of social security coverage only 
        remain covered by the applicable agreement entered into under 
        section 355.02 but are not members of the general state 
        retirement plan for any other purpose while employed in covered 
        employment. 
           Sec. 4.  [354C.04] [PLAN COVERAGE.] 
           Eligible employees shall elect to participate in either the 
        individual retirement account plan or their respective 
        retirement plan as follows: 
           (1) An eligible employee first employed after the effective 
        date of this act in covered employment may elect retirement 
        coverage under either their respective state retirement plan or 
        the individual retirement account plan within 60 days of the 
        start of covered employment.  An election made under this 
        subdivision is irrevocable. 
           (2) An eligible employee with prior allowable service as a 
        member of the Minnesota state retirement system, the public 
        employees retirement association, or the teachers retirement 
        association may elect coverage by the plan.  If plan coverage is 
        elected, accumulated employer and employee contributions and 
        allowable service credit shall remain with the applicable 
        retirement association or system.  Notwithstanding any provision 
        of law to the contrary, an individual who has transferred 
        coverage for the same employment to the plan is entitled to an 
        augmented deferred retirement annuity based on the amount 
        representing the employer and employee contributions made on the 
        individual's behalf in the retirement association or system in 
        which the individual was formerly enrolled without regard to 
        whether or not the individual meets the service credit vesting 
        requirements of the applicable retirement association or 
        system.  An election made under this subdivision must be made 
        within 120 days and is irrevocable.  
           Sec. 5.  [354C.05] [CONTRIBUTIONS.] 
           Subdivision 1.  [MEMBER CONTRIBUTIONS.] Eligible employees 
        who would otherwise be eligible to participate in the Minnesota 
        state retirement system, the public employees retirement 
        association, or the teachers retirement association, but who 
        participate in the individual retirement account plan, shall 
        make a member contribution in an amount equal to the member 
        contribution amount required by the plan for which the 
        individual was originally eligible for membership.  The 
        contribution must be made by payroll deduction each pay period 
        and must be in accordance with either section 403(b) or 414(h) 
        of the Internal Revenue Code.  
           Subd. 2.  [EMPLOYER CONTRIBUTIONS.] The employer of 
        eligible employees described in subdivision 1 who are eligible 
        to participate in either the Minnesota state retirement system 
        or the public employees retirement association shall make an 
        employer contribution to the plan in an amount equal to the 
        employer contribution amount required by the plan for which the 
        individual was originally eligible for membership.  The employer 
        of eligible employees described in subdivision 1 who are 
        eligible to participate in the teachers retirement association 
        shall make an employer contribution to the plan in an amount 
        equal to the employer contribution required by section 354.42, 
        subdivision 3, and shall make an employer contribution to the 
        teachers retirement association in an amount equal to the 
        employer contribution required by section 354.42, subdivision 5. 
           Sec. 6.  [354C.06] [ADMINISTRATION.] 
           The Minnesota state university system or its successor 
        shall administer the individual retirement account plan for 
        eligible employees in accordance with sections 354B.01 to 
        354B.05. 
           Sec. 7.  [354C.07] [TRANSFER OF CERTAIN MSRS MEMBER 
        CONTRIBUTION REFUND AMOUNTS TO PLAN.] 
           (a) Notwithstanding any provision of law to the contrary, a 
        former member of the general state employees retirement plan of 
        the Minnesota state retirement system who is a member of the 
        individual retirement account plan under this chapter may elect 
        to transfer to the individual retirement account plan an amount 
        equal to the refund under section 352.22, subdivision 2, that 
        the member could otherwise receive.  The transfer must be made 
        from the general state employees retirement fund directly to the 
        individual retirement account plan and credited by the plan 
        appropriately.  No amount under this section is payable directly 
        to any individual. 
           (b) The election must be made on a form prescribed by the 
        executive director of the Minnesota state retirement system, 
        after consultation with the administrators of the plan. 
           Sec. 8.  [EFFECTIVE DATE.] 
           This article is effective July 1, 1994. 
           Presented to the governor April 22, 1994 
           Signed by the governor April 25, 1994, 1:11 p.m.