1.1                          A bill for an act
  1.2             relating to retirement; modifying higher education 
  1.3             retirement plan provisions; amending Minnesota 
  1.4             Statutes 1996, sections 136F.48; 354.445; 354B.23, by 
  1.5             adding a subdivision; and 354C.12, by adding a 
  1.6             subdivision; Minnesota Statutes 1997 Supplement, 
  1.7             section 354B.25, subdivision 1a. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 136F.48, is 
  1.10  amended to read: 
  1.11     136F.48 [EMPLOYER-PAID HEALTH INSURANCE.] 
  1.12     (a) This section applies to a person who:  
  1.13     (1) retires from the state university system, the technical 
  1.14  college system, or the community college system, or from a 
  1.15  successor system employing state university, technical college, 
  1.16  or community college faculty, with at least ten years of 
  1.17  combined service credit in a system under the jurisdiction of 
  1.18  the board of trustees of the Minnesota state colleges and 
  1.19  universities; 
  1.20     (2) was employed on a full-time basis immediately preceding 
  1.21  retirement as a state university, technical college, or 
  1.22  community college faculty member or as an unclassified 
  1.23  administrator in one of those systems; 
  1.24     (3) begins drawing an annuity from the teachers retirement 
  1.25  association or from a first class city teacher plan; and 
  1.26     (4) returns to work on not less than a one-third time basis 
  2.1   and not more than a two-thirds time basis in the system from 
  2.2   which the person retired under an agreement in which the person 
  2.3   may not earn a salary of more than $35,000 in a calendar year 
  2.4   from employment after retirement in the system from which the 
  2.5   person retired.  
  2.6      (b) Initial participation, the amount of time worked, and 
  2.7   the duration of participation under this section must be 
  2.8   mutually agreed upon by the ~~employer~~ president of the 
  2.9   institution where the person returns to work and the employee.  
  2.10  The ~~employer~~ president may require up to one-year notice of 
  2.11  intent to participate in the program as a condition of 
  2.12  participation under this section.  The ~~employer~~ president shall 
  2.13  determine the time of year the employee shall work.  The 
  2.14  employer or the president may not require a person to waive any 
  2.15  rights under a collective bargaining agreement as a condition of 
  2.16  participation under this section.  
  2.17     (c) For a person eligible under paragraphs (a) and (b), the 
  2.18  employing board shall make the same employer contribution for 
  2.19  hospital, medical, and dental benefits as would be made if the 
  2.20  person were employed full time.  
  2.21     (d) For work under paragraph (a), a person must receive a 
  2.22  percentage of the person's salary at the time of retirement that 
  2.23  is equal to the percentage of time the person works compared to 
  2.24  full-time work.  
  2.25     (e) If a collective bargaining agreement covering a person 
  2.26  provides for an early retirement incentive that is based on age, 
  2.27  the incentive provided to the person must be based on the 
  2.28  person's age at the time employment under this section ends.  
  2.29  However, the salary used to determine the amount of the 
  2.30  incentive must be the salary that would have been paid if the 
  2.31  person had been employed full time for the year immediately 
  2.32  preceding the time employment under this section ends. 
  2.33     (f) A person who returns to work under this section is a 
  2.34  member of the appropriate bargaining unit and is covered by the 
  2.35  appropriate collective bargaining contract.  Except as provided 
  2.36  in this section, the person's coverage is subject to any part of 
  3.1   the contract limiting rights of part-time employees. 
  3.2      Sec. 2.  Minnesota Statutes 1996, section 354.445, is 
  3.3   amended to read: 
  3.4      354.445 [NO ANNUITY REDUCTION.] 
  3.5      (a) The annuity reduction provisions of section 354.44, 
  3.6   subdivision 5, do not apply to a person who: 
  3.7      (1) retires from the state university system, technical 
  3.8   college system, or the community college system, or from a 
  3.9   successor system employing state university, technical college, 
  3.10  or community college faculty, with at least ten years of 
  3.11  combined service credit in a system under the jurisdiction of 
  3.12  the board of trustees of the Minnesota state colleges and 
  3.13  universities; 
  3.14     (2) was employed on a full-time basis immediately preceding 
  3.15  retirement as a state university, technical college, or 
  3.16  community college faculty member or as an unclassified 
  3.17  administrator in one of these systems; 
  3.18     (3) begins drawing an annuity from the teachers retirement 
  3.19  association; and 
  3.20     (4) returns to work on not less than a one-third time basis 
  3.21  and not more than a two-thirds time basis in the system from 
  3.22  which the person retired under an agreement in which the person 
  3.23  may not earn a salary of more than $35,000 in a calendar year 
  3.24  from employment after retirement in the system from which the 
  3.25  person retired. 
  3.26     (b) Initial participation, the amount of time worked, and 
  3.27  the duration of participation under this section must be 
  3.28  mutually agreed upon by the ~~employer~~ president of the 
  3.29  institution where the person returns to work and the employee.  
  3.30  The ~~employer~~ president may require up to one-year notice of 
  3.31  intent to participate in the program as a condition of 
  3.32  participation under this section.  The ~~employer~~ president shall 
  3.33  determine the time of year the employee shall work.  The 
  3.34  employer or the president may not require a person to waive any 
  3.35  rights under a collective bargaining agreement as a condition of 
  3.36  participation under this section.  
  4.1      (c) Notwithstanding any law to the contrary, a person 
  4.2   eligible under paragraphs (a) and (b) may not earn further 
  4.3   service credit in the teachers retirement association and is not 
  4.4   eligible to participate in the individual retirement account 
  4.5   plan or the supplemental retirement plan established in chapter 
  4.6   354B as a result of service under this section.  No employer or 
  4.7   employee contribution to any of these plans may be made on 
  4.8   behalf of such a person. 
  4.9      (d) For a person eligible under paragraphs (a) and (b) who 
  4.10  earns more than $35,000 in a calendar year from employment after 
  4.11  retirement in the system from which the person retired, the 
  4.12  annuity reduction provisions of section 354.44, subdivision 5, 
  4.13  apply only to income over $35,000. 
  4.14     (e) A person who returns to work under this section is a 
  4.15  member of the appropriate bargaining unit and is covered by the 
  4.16  appropriate collective bargaining contract.  Except as provided 
  4.17  in this section, the person's coverage is subject to any part of 
  4.18  the contract limiting rights of part-time employees. 
  4.19     Sec. 3.  Minnesota Statutes 1996, section 354B.23, is 
  4.20  amended by adding a subdivision to read: 
  4.21     Subd. 5a.  [EXCESS CONTRIBUTIONS.] (a) When contributions 
  4.22  to the plan exceed limits imposed by federal law or regulation 
  4.23  and it is necessary to return contributions to comply with the 
  4.24  federal limits, excess contributions must be returned to the 
  4.25  employee and to the employer in the same proportions as the 
  4.26  contributions were made. 
  4.27     (b) When an employer contribution required under section 
  4.28  354B.24 due to a sabbatical leave is made after completion of 
  4.29  the leave or an employer contribution is made due to omitted 
  4.30  deductions under subdivision 5, and these employer contributions 
  4.31  cause or would cause total contributions to the plan to exceed 
  4.32  limits imposed by federal law or regulation, the employer must 
  4.33  make that portion of the contribution that would exceed the 
  4.34  federal limit during the next calendar year. 
  4.35     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  4.36  354B.25, subdivision 1a, is amended to read: 
  5.1      Subd. 1a.  [ADVISORY COMMITTEE.] (a) A committee is created 
  5.2   to advise the state board of investment and the board of 
  5.3   trustees of the Minnesota state colleges and universities 
  5.4   concerning administration of the individual retirement account 
  5.5   plan and the supplemental retirement plan established in chapter 
  5.6   354C.  The committee shall adopt recommendations by majority 
  5.7   vote of those members voting on each issue.  The exclusive 
  5.8   representatives of the state university instructional unit, the 
  5.9   community college instructional unit, and the technical college 
  5.10  instructional unit shall each appoint two members to the 
  5.11  committee.  The exclusive representatives of the general 
  5.12  professional unit, the supervisory employees unit and the state 
  5.13  university administrative unit shall each appoint one member to 
  5.14  the committee.  The chancellor of the Minnesota state colleges 
  5.15  and universities shall appoint three members, at least one of 
  5.16  whom shall be a personnel administrator.  No member of the 
  5.17  committee shall be retired.  Members serve at the pleasure of 
  5.18  the applicable appointing authority, but no member shall serve 
  5.19  for more than a total of five years.  Members shall be 
  5.20  reimbursed from the administrative expense account of the 
  5.21  individual retirement account plan for expenses as provided in 
  5.22  section 15.059, subdivision 3. 
  5.23     (b) The committee shall: 
  5.24     (1) advise the board of trustees of the Minnesota state 
  5.25  colleges and universities on the structure and operation of the 
  5.26  individual retirement account plan and the supplemental 
  5.27  retirement plan; 
  5.28     (2) along with any other consultants selected by the board, 
  5.29  advise the state board of investment on selection of financial 
  5.30  institutions and on the type of investment products to be 
  5.31  offered by these institutions for the plans; 
  5.32     (3) advise the board of trustees of the Minnesota state 
  5.33  colleges and universities on administration of the plans, 
  5.34  including selection of a third-party plan administrator, if any, 
  5.35  for the individual retirement account plan. 
  5.36     (c) The board of trustees of the Minnesota state colleges 
  6.1   and universities shall provide the advisory committee with 
  6.2   meeting space and other administrative support.  
  6.3      (d) Expenses of the advisory committee are considered 
  6.4   administrative expenses of the plans under subdivision 5 and 
  6.5   section 354C.12, subdivision 4, and must be allocated between 
  6.6   the two plans in proportion to the market value of the total 
  6.7   assets of the plans as of the most recent prior audited annual 
  6.8   financial report. 
  6.9      Sec. 5.  Minnesota Statutes 1996, section 354C.12, is 
  6.10  amended by adding a subdivision to read: 
  6.11     Subd. 1a.  [EXCESS CONTRIBUTIONS.] (a) When contributions 
  6.12  to the plan exceed limits imposed by federal law or regulation 
  6.13  and it is necessary to return contributions to comply with the 
  6.14  federal limits, half of the excess contributions must be 
  6.15  returned to the employee and half to the employer. 
  6.16     (b) When an employer contribution is made due to omitted 
  6.17  deductions under subdivision 2, and these employer contributions 
  6.18  cause or would cause total contributions to the plan to exceed 
  6.19  limits imposed by federal law or regulation, the employer must 
  6.20  make that portion of the contribution that would exceed the 
  6.21  federal limit during the next calendar year.