SF 2743

as introduced - 90th Legislature (2017 - 2018) Posted on 06/21/2018 03:33pm

A bill for an act
relating to retirement; Teachers Retirement Association; coverage election for
Minnesota State employee not offered a coverage election.

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

Section 1. TRA COVERAGE ELECTION AUTHORITY FOR CERTAIN
MINNESOTA STATE EMPLOYEE.

(a) Notwithstanding any provision of law to the contrary, an eligible person described
in paragraph (b) is authorized to become a coordinated member of the Teachers Retirement
Association and to purchase service and salary credit in the Teachers Retirement Association
coordinated plan retroactively from August 5, 2009, upon making an election under paragraph
(c) and upon making all required payments under paragraphs (d) and (e).

(b) An eligible person is one who:

(1) was born on June 3, 1966;

(2) was employed as a state program administrator coordinator on December 2, 2002,
with Minnesota State Retirement System retirement plan coverage;

(3) was employed as an administrator with the Minnesota State Personnel Plan for
Administrators on August 5, 2009, with retirement coverage in the higher education
individual retirement account plan; and

(4) was not offered an election of Teachers Retirement Association coverage as authorized
by section 354B.21, so remained in the higher education individual retirement account plan.

(c) To be eligible for coverage by the Teachers Retirement Association, an eligible
person must submit a written application to the executive director of the Teachers Retirement
Association on a form provided by the Teachers Retirement Association. The application
must include all documentation of the applicability of this section and any other relevant
information that the executive director may require. Teachers Retirement Association plan
membership commences after the date of the retirement coverage election under this section
and past salary and service credit is granted for past Minnesota State system employment
from August 5, 2009, until the executive director receives the written application specified
in this paragraph and receipts of payments specified in paragraphs (d) and (e).

(d) If the eligible person makes the retirement coverage election under paragraph (c),
the eligible person shall make a contribution to the Teachers Retirement Association equal
to the excess, if any, of the employee contributions that the eligible person would have made
if covered by the Teachers Retirement Association from August 5, 2009. These additional
contribution amounts shall include 8.5 percent annual compound interest computed from
the date the contribution would have been made if deducted from salary until paid. The total
amount to be paid under this paragraph shall be determined by the executive director of the
Teachers Retirement Association and written notification of the amount required under this
paragraph must be transmitted to the eligible person.

(e) If payment is made under paragraph (d), the value of the applicable eligible person's
higher education individual retirement account plan account shall be transferred to the
Teachers Retirement Association.

(f) The Teachers Retirement Association shall determine the required purchase payment
amount calculated under Minnesota Statutes, section 356.551, imposed upon the Teachers
Retirement Association under this section due to the salary and service credit purchase.

(g) From the total amount computed under paragraph (f), the executive director of the
Teachers Retirement Association shall subtract the amounts received under paragraphs (d)
and (e). The Minnesota State system must transmit the remaining amount, if any, to the
executive director of the Teachers Retirement Association within 60 days following the
receipt of payments under paragraphs (d) and (e).

(h) The authority to make a retirement coverage election under this section expires one
year from the effective date of this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.