Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 542-H.F.No. 2478 
                  An act relating to retirement; first class city 
                  teachers; defining salary; authorizing purchase of 
                  service credit for parental or maternity leave; 
                  resumption of teaching by basic program retirees; 
                  authorizing the board of the Minneapolis teachers 
                  retirement fund association to amend the bylaws or 
                  articles of incorporation to provide for parental or 
                  maternity leave; amending Minnesota Statutes 1992, 
                  sections 354A.011, subdivision 24; 354A.095; and 
                  354A.31, subdivision 3. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1992, section 354A.011, 
        subdivision 24, is amended to read: 
           Subd. 24.  [SALARY.] (a) "Salary" or "covered salary" means 
        the entire compensation paid to a teacher excluding any lump sum 
        annual leave or sick leave payments and all forms of severance 
        payments, even if a portion of the compensation is paid from 
        other than public funds., upon which member contributions are 
        required and made, that is paid to a teacher before any 
        allowable reductions permitted under the federal Internal 
        Revenue Code of 1986, as amended, for employee selected fringe 
        benefits, tax sheltered annuities, deferred compensation, or any 
        combination of these items. 
           (b) "Salary" does not mean: 
           (1) lump sum annual leave payments; 
           (2) lump sum wellness and sick leave payments; 
           (3) payments in lieu of any employer-paid group insurance 
        coverage; 
           (4) payments for the difference between single and family 
        premium rates that may be paid to a member with single coverage; 
           (5) employer-paid fringe benefits including, but not 
        limited to, flexible spending accounts, cafeteria plans, health 
        care expense accounts, day care expenses, or automobile 
        allowances and expenses; 
           (6) payments to school principals and all other 
        administrators for services in addition to the normal work year 
        contract if these additional services are performed on an 
        extended duty day, Saturday, Sunday, holiday, annual leave day, 
        sick leave day, or any other nonduty day; 
           (7) payments under section 356.24, subdivision 1, clause 
        (4)(ii); and 
           (8) payments made under section 125.12, subdivision 7, 
        except for payments for sick leave accumulated under the 
        provisions of a uniform school district policy that applies 
        equally to all similarly situated persons in the district. 
           Sec. 2.  Minnesota Statutes 1992, section 354A.095, is 
        amended to read: 
           354A.095 [PARENTAL AND MATERNITY LEAVE.] 
           Basic or coordinated members of the St. Paul teachers 
        retirement fund association, the Minneapolis teachers retirement 
        fund association, and new coordinated members of the Duluth 
        teachers retirement fund association, who are granted parental 
        or maternity leave of absence by the employing authority, are 
        entitled to obtain service credit not to exceed one year for the 
        period of leave upon payment to the applicable fund by the end 
        of the fiscal year following the fiscal year in which the leave 
        of absence terminated.  The amount of the payment must include 
        the total required employee and employer contributions for the 
        period of leave prescribed in section 354A.12.  Payment must be 
        based on the member's average monthly salary rate upon return to 
        teaching service, and is payable without interest.  Payment must 
        be accompanied by a certified or otherwise adequate copy of the 
        resolution or action of the employing authority granting or 
        approving the leave. 
           Sec. 3.  Minnesota Statutes 1992, section 354A.31, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 
        RETIREMENT ANNUITY.] Any person who retired and is receiving a 
        coordinated program retirement annuity under the provisions of 
        sections 354A.31 to 354A.41 or any person receiving a basic 
        program retirement annuity under the governing sections in the 
        articles of incorporation or bylaws and who has resumed teaching 
        service for the school district in which the teachers retirement 
        fund association exists is entitled to continue to receive 
        retirement annuity payments, except that annuity payments must 
        be reduced during the calendar year immediately following the 
        calendar year in which the person's income from the teaching 
        service is in an amount greater than the annual maximum earnings 
        allowable for that age for the continued receipt of full benefit 
        amounts monthly under the federal old age, survivors, and 
        disability insurance program as set by the secretary of health 
        and human services under United States Code, title 42, section 
        403.  The amount of the reduction must be one-third the amount 
        in excess of the applicable reemployment income maximum 
        specified in this subdivision and must be deducted from the 
        annuity payable for the calendar year immediately following the 
        calendar year in which the excess amount was earned.  If the 
        person has not yet reached the minimum age for the receipt of 
        social security benefits, the maximum earnings for the person 
        must be equal to the annual maximum earnings allowable for the 
        minimum age for the receipt of social security benefits. 
           If the person is retired for only a fractional part of the 
        calendar year during the initial year of retirement, the maximum 
        reemployment income specified in this subdivision must be 
        prorated for that calendar year. 
           After a person has reached the age of 70, no reemployment 
        income maximum is applicable regardless of the amount of any 
        compensation received for teaching service for the school 
        district in which the teachers retirement fund association 
        exists.  For the purpose of this subdivision, income from 
        teaching service includes:  (i) all income for services 
        performed as a consultant or independent contractor; or income 
        resulting from working with the school district in any capacity; 
        and (ii) the greater of either the income received or an amount 
        based on the rate paid with respect to an administrative 
        position, consultant, or independent contractor in the school 
        district in which the teachers retirement fund association 
        exists and at the same level as the position occupied by the 
        person who resumes teaching service. 
           Sec. 4.  [MINNEAPOLIS TEACHERS RETIREMENT FUND BYLAW 
        AMENDMENT.] 
           Consistent with Minnesota Statutes, section 354A.12, 
        subdivision 4, the board of the Minneapolis teachers retirement 
        fund association may amend the bylaws or articles of 
        incorporation to provide parental or maternity leave, providing 
        that the leave is granted by the employing authority, and 
        specifying that: 
           (a) the service credit obtained may not exceed one year for 
        the period of the leave; 
           (b) to obtain the service credit, the individual must pay 
        to the fund an amount equal to the total required contributions 
        for the period of the leave prescribed in section 354A.12.  
        Payment must be based on the member's average monthly salary 
        rate upon returning to teaching service; and 
           (c) payment must be made by the end of the fiscal year 
        following the fiscal year in which the leave terminates.  
        Payment must be accompanied by a certified or otherwise adequate 
        copy of the resolution or action of the employing authority 
        granting or approving the leave. 
           Sec. 5.  [ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION AND 
        MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION BYLAW 
        AMENDMENTS.] 
           Consistent with Minnesota Statutes, section 354A.12, 
        subdivision 4, the board of the Minneapolis teachers retirement 
        fund association and the board of the St. Paul teachers 
        retirement fund association may amend the bylaws or articles of 
        incorporation to provide that: 
           (1) a person receiving a basic program retirement annuity 
        under the governing sections in the articles of incorporation or 
        bylaws and who resumes teaching service for the school district 
        in which the teachers retirement fund association exists is 
        entitled to continue to receive retirement annuity payments, 
        except that annuity payments must be reduced during the calendar 
        year immediately following the calendar year in which the 
        person's income from the teaching service is in an amount 
        greater than the annual maximum earnings allowable for that age 
        for the continued receipt of full benefit amounts monthly under 
        the federal old age, survivors, and disability insurance program 
        as set by the Secretary of Health and Human Services under 
        United States Code, title 42, section 403; 
           (2) the amount of the reduction must be one-third the 
        amount in excess of the applicable reemployment income maximum 
        and must be deducted from the annuity payable for the calendar 
        year immediately following the calendar year in which the excess 
        amount was earned; 
           (3) if the person has not yet reached the minimum age for 
        the receipt of social security benefits, the maximum earnings 
        for the person must be equal to the annual maximum earnings 
        allowable for the minimum age for the receipt of social security 
        benefits; 
           (4) if the person is retired for only a fractional part of 
        the calendar year during the initial year of retirement, the 
        maximum reemployment income must be prorated for that calendar 
        year; 
           (5) after a person has reached the age of 70, no 
        reemployment income maximum is applicable regardless of the 
        amount of any compensation received for teaching service for the 
        school district in which the teachers retirement fund 
        association exists; and 
           (6) for the purposes of the bylaw amendment, income from 
        teaching service includes:  (i) all income for services 
        performed as a consultant, independent contractor, or income 
        resulting from working with the school district in any capacity; 
        and (ii) the greater of either the income received or an amount 
        based on the rate paid with respect to an administrative 
        position, consultant, or independent contractor in the school 
        district in which the teachers retirement fund association 
        exists and at the same level as the position occupied by the 
        person who resumes teaching service. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Sections 1 to 5 are effective the day following final 
        enactment. 
           Presented to the governor April 28, 1994 
           Signed by the governor April 29, 1994, 2:34 p.m.