2001 Minnesota Statutes

CHAPTER 354. Teachers retirement act

  354.01 Renumbered 83A.01 

  354.02 Renumbered 83A.02 

  354.03 Renumbered 83A.03 

  354.04 Renumbered 83A.04 

     354.045 Citation.  

    This chapter may be cited as the Teachers Retirement Act.  

    HIST: 1969 c 485 s 39; 1974 c 289 s 1 

     354.05 Definitions. 

    Subdivision 1.    Terms.  Unless the language or 
 context clearly indicates that a different meaning is intended, 
 the following terms, for the purposes of this chapter, shall be 
 given the meanings subjoined to them. 

    Subd. 2.    Teacher.  (a) "Teacher" means: 

    (1) a person who renders service as a teacher, supervisor, 
 principal, superintendent, librarian, nurse, counselor, social 
 worker, therapist, or psychologist in the public schools of the 
 state located outside of the corporate limits of the cities of 
 the first class or in any charitable, penal, or correctional 
 institutions of a governmental subdivision, or who is engaged in 
 educational administration in connection with the state public 
 school system, but excluding the University of Minnesota, 
 whether the position be a public office or an employment, not 
 including members or officers of any general governing or 
 managing board or body; 

    (2) an employee of the teachers retirement association; 

    (3) a person who renders teaching service on a part-time 
 basis and who also renders other services for a single employing 
 unit.  A person whose teaching service comprises at least 50 
 percent of the combined employment salary is a member of the 
 association for all services with the single employing unit.  If 
 the person's teaching service comprises less than 50 percent of 
 the combined employment salary, the executive director must 
 determine whether all or none of the combined service is covered 
 by the association; or 

    (4) a person who is not covered by the plans established 
 under chapter 352D, 354A, or 354B and who is employed by the 
 board of trustees of the Minnesota state colleges and 
 universities system in an unclassified position as: 

    (i) a president, vice-president, or dean; 

    (ii) a manager or a professional in an academic or an 
 academic support program other than specified in item (i); 

    (iii) an administrative or a service support faculty 
 position; or 

    (iv) a teacher or a research assistant. 

    (b) Teacher does not mean: 

    (1) a person who works for a school or institution as an 
 independent contractor as defined by the Internal Revenue 
 Service; 

    (2) a person employed in subsidized on-the-job training, 
 work experience or public service employment as an enrollee 
 under the federal Comprehensive Employment and Training Act from 
 and after March 30, 1978, unless the person has, as of the later 
 of March 30, 1978, or the date of employment, sufficient service 
 credit in the retirement association to meet the minimum vesting 
 requirements for a deferred retirement annuity, or the employer 
 agrees in writing on forms prescribed by the executive director 
 to make the required employer contributions, including any 
 employer additional contributions, on account of that person 
 from revenue sources other than funds provided under the federal 
 Comprehensive Training and Employment Act, or the person agrees 
 in writing on forms prescribed by the executive director to make 
 the required employer contribution in addition to the required 
 employee contribution; 

    (3) a person holding a part-time adult supplementary 
 technical college license who renders part-time teaching service 
 or a customized trainer as defined by the Minnesota state 
 colleges and universities system in a technical college if (i) 
 the service is incidental to the regular nonteaching occupation 
 of the person; and (ii) the applicable technical college 
 stipulates annually in advance that the part-time teaching 
 service or customized training service will not exceed 300 hours 
 in a fiscal year and retains the stipulation in its records; and 
 (iii) the part-time teaching service or customized training 
 service actually does not exceed 300 hours in a fiscal year; or 

    (4) a person exempt from licensure under section 122A.30. 

    Subd. 2a.    Exceptions.  (a) Notwithstanding 
 subdivision 2, a person specified in paragraph (b) is not a 
 member of the association except for purposes of social security 
 coverage unless the person is covered by section 354B.21, and 
 elects coverage by the teachers retirement association. 

    (b) A teacher is excluded from association membership other 
 than social security coverage under paragraph (a) if the person 
 is covered by the individual retirement account plan established 
 under chapter 354B. 

    Subd. 3.    Teaching.  The word "teaching" includes the 
 service performed by any person coming within the definition of 
 "teacher" as set forth in subdivision 2. 

    Subd. 4.    Fund.  The term "fund" means the teachers 
 retirement fund referred to in this chapter. 

    Subd. 5.    Member of the association.  "Member of the 
 association" means every teacher who contributes to the teachers 
 retirement fund as provided in this chapter who has not retired, 
 or a teacher who exercises an option to elect coverage under 
 another public pension plan enumerated in section 356.30, 
 subdivision 3.  Any former member of the association who is 
 retired and subsequently resumes teaching service is a member of 
 the association only for purposes of social security coverage. 

    Subd. 6.    Board.  The term "board" means the board of 
 trustees of the teachers retirement association. 

    Subd. 7.    Actuarial equivalent.  "Actuarial equivalent"
 means the condition of one annuity or benefit having an equal 
 actuarial present value as another annuity or benefit, 
 determined as of a given date with each actuarial present value 
 based on the appropriate mortality table adopted by the board of 
 trustees based on the experience of the association as 
 recommended by the actuary retained by the legislative 
 commission on pensions and retirement and using the applicable 
 preretirement or postretirement interest rate assumption 
 specified in section 356.215, subdivision 4d. 

    Subd. 8.    Dependent child.  "Dependent child" means a 
 biological or adopted child of a deceased member who has not 
 reached the age of 18, or who is under age 22 and is a full-time 
 student throughout the normal school year, unmarried and 
 dependent for more than one-half of support upon the member.  It 
 also means a child of the member conceived during the member's 
 lifetime and born after the member's death. 

    Subd. 8a.    Dependent child.  For the purpose of 
 survivor benefit eligibility under section 354.46, subdivision 
 2b, "dependent child" means any biological or adopted child of a 
 deceased member who has not reached the age of 20 and is 
 dependent for more than one-half of support upon the member.  It 
 also includes any child of the member conceived while living and 
 born after death. 

    Subd. 9.    Association.  "Association" means the 
 combined membership of all teachers who qualify and participate 
 in the retirement program provided for in this chapter. 

    Subd. 10.    Approved actuary.  "Approved actuary" 
 means any actuary who is either a fellow of the society of 
 actuaries or who has at least 15 years of service to major 
 public employee funds or any firm retaining such an actuary on 
 its staff. 

    Subd. 11.    Accumulated deductions.  "Accumulated 
 deductions" means the total of the sums deducted from the salary 
 of a member and the total amount of assessments paid by a member 
 in lieu of such deductions, credited to the member's individual 
 fund, less amounts paid to the member or any person in the 
 member's behalf in the form of refundments, annuity payments or 
 benefit payments and less any other amounts deducted pursuant to 
 law. 

    Subd. 12.    Payments in lieu of deductions.  "Payments 
 in lieu of deductions" means the assessments or payments made by 
 any member to receive credit for service rendered when no salary 
 deductions were made. 

    Subd. 13.    Allowable service.  "Allowable service" 
 means: 

    (1) Any service rendered by a teacher for which on or 
 before July 1, 1957, the teacher's account in the retirement 
 fund was credited by reason of employee contributions in the 
 form of salary deductions, payments in lieu of salary 
 deductions, or in any other manner authorized by Minnesota 
 Statutes 1953, sections 135.01 to 135.13, as amended by Laws 
 1955, chapters 361, 549, 550, 611, or 

    (2) Any service rendered by a teacher for which on or 
 before July 1, 1961, the teacher elected to obtain credit for 
 service by making payments to the fund pursuant to Minnesota 
 Statutes 1980, section 354.09 and section 354.51, or 

    (3) Any service rendered by a teacher after July 1, 1957, 
 for any calendar month when the member receives salary from 
 which deductions are made, deposited and credited in the fund, 
 or 

    (4) Any service rendered by a person after July 1, 1957, 
 for any calendar month where payments in lieu of salary 
 deductions are made, deposited and credited into the fund as 
 provided in Minnesota Statutes 1980, section 354.09, subdivision 
 4, and section 354.53, or 

    (5) Any service rendered by a teacher for which the teacher 
 elected to obtain credit for service by making payments to the 
 fund pursuant to Minnesota Statutes 1980, section 354.09, 
 subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 
 Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 
 1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 
 Supplement, section 354.09, subdivision 3, or 

    (6) Both service during years of actual membership in the 
 course of which contributions were currently made and service in 
 years during which the teacher was not a member but for which 
 the teacher later elected to obtain credit by making payments to 
 the fund as permitted by any law then in effect, or 

    (7) Any service rendered where contributions were made and 
 no allowable service credit was established because of the 
 limitations contained in Minnesota Statutes 1957, section 
 135.09, subdivision 2, as determined by the ratio between the 
 amounts of money credited to the teacher's account in a fiscal 
 year and the maximum retirement contribution allowable for that 
 year, or 

    (8) a period purchased under section 356.555.  

    Subd. 14.    Total and permanent disability.  "Total 
 and permanent disability" means the inability to engage in any 
 substantial gainful activity by reason of any medically 
 determinable physical or mental impairment which can be expected 
 to be of long continued and indefinite duration.  An "indefinite 
 duration" is a period of at least one year. 

    Subd. 14a.    Surviving spouse.  "Surviving spouse" 
 means the spouse of a deceased member or a disabilitant who was 
 legally married to the member at the time of death. 

    Subd. 15. Repealed, 1994 c 528 art 3 s 34 

    Subd. 16.    Retirement annuity.  "Retirement annuity" 
 means the payments made by the association to a former member 
 after retirement. 

    Subd. 17.    Optional survivors annuity.  "Optional 
 survivors annuity" means the payments made by the association to 
 a survivor of a former member pursuant to an optional annuity 
 form selected by such member at or before retirement which 
 varies in amount depending primarily upon both employee and 
 employer contributions made by and in behalf of the particular 
 member. 

    Subd. 18.  Repealed, 1974 c 289 s 59 

    Subd. 19.    Annuity.  "Annuity" means a retirement 
 annuity, optional survivors annuity, or spouses annuity. 

    Subd. 20.    Benefit.  "Benefit" means an allowance paid 
 or payable by the association to a surviving dependent spouse or 
 a dependent child which is a fixed amount and also includes an 
 allowance paid or payable by the association to a member or 
 former member who is permanently and totally disabled. 

    Subd. 21.    Retirement.  "Retirement" means the 
 withdrawal of a member from active teaching service who is paid 
 a retirement annuity thereafter and commences with the date 
 designated by the retirement board when the retirement annuity 
 first accrues to the former member after withdrawal from active 
 teaching service and application for an annuity under section 
 354.44, subdivisions 3 and 4.  The effective date of retirement 
 must occur for an annuity plan selection to take effect.  This 
 date determines any rights specified in this chapter which occur 
 either before or after retirement. 

    Subd. 22.    Designated beneficiary.  "Designated 
 beneficiary" means the person, trust, or organization designated 
 by a retiree or member to receive the benefits to which a 
 beneficiary is entitled under this chapter.  A beneficiary 
 designation is valid only if it is made on an appropriate form 
 provided by the executive director that is signed by the member 
 and two witnesses to the member's signature.  The properly 
 completed form must be received by the association on or before 
 the date of death of the retiree or member.  If a retiree or a 
 member does not designate a person, trust, or organization, or 
 if the person designated predeceases the retiree or the member, 
 or the trust or organization ceases to exist before the death of 
 the retiree or the member, the designated beneficiary means the 
 estate of the deceased retiree or member. 

    Subd. 23. Repealed, 1990 c 570 art 12 s 64 

    Subd. 24. Repealed, 1990 c 570 art 12 s 64 

    Subd. 25.    Formula service credit.  "Formula service 
 credit" means any allowable service credit as defined in 
 subdivision 13 except: 

    (1) Any service rendered prior to July 1, 1951, for which 
 payments were made pursuant to subdivision 13 except as provided 
 in section 354.09, subdivision 4, as determined by multiplying 
 the number of years of service established in the records of the 
 teachers retirement association as of July 1, 1961 by the ratio 
 obtained between the total amount paid and the maximum amount 
 payable for those years; 

    (2) Any service rendered prior to July 1, 1957 for which 
 payments were made pursuant to section 354.09, subdivision 4, as 
 determined by multiplying the number of years of service 
 established in the records of the teachers retirement 
 association by the ratio obtained between the total amount paid 
 and the maximum amount payable for those years; or 

    (3) Any service rendered for which contributions were not 
 made in full as determined by the ratio between the amounts of 
 money credited to the teacher's account in a fiscal year and the 
 retirement contribution payable for the fiscal year pursuant to 
 sections 354.092, 354.42 and 354.51; and 

    (4) No period of service shall be counted more than once 
 for purposes of this subdivision. 

    Subd. 26.    Postretirement investment fund annuity.  
 "Postretirement investment fund annuity" means the payments made 
 by the association to an annuitant after retirement in 
 accordance with the provisions of section 354.63.  It also means 
 that the payments made by the association shall never be an 
 amount less than the amount originally determined on the date of 
 retirement as adjusted on each succeeding January 1 in section 
 11A.18. 

    Subd. 27.    Normal school operating funds.  The term 
 "normal school operating funds" as used in this chapter shall be 
 defined as and limited to the proceeds of property tax levies, 
 state school maintenance cost aids distributed in accordance 
 with statutes governing such funds, state aid to distressed 
 school districts, proceeds from federal forest reserve lands, 
 state transportation aids, and receipts from tuition paid by 
 persons or other school districts and rental charges received.  
 The term also includes money appropriated by the legislature for 
 the operation of any state agency, department, state board, or 
 institution. 

    Subd. 28.    Satisfactory certification.  The term 
 "satisfactory certification" means a certification executed by a 
 responsible officer of an employing authority in such form and 
 content that false or misleading information would constitute 
 perjury. 

    Subd. 29. Repealed, 1994 c 528 art 3 s 34 

    Subd. 30.    Coordinated member.  "Coordinated member" 
 means any teacher covered by any agreement or modification made 
 between the state and the Secretary of Health, Education and 
 Welfare, making the provisions of the federal Old Age, Survivors 
 and Disability Insurance Act applicable to such member. 

    Subd. 31.    Basic member.  "Basic member" means any 
 teacher not covered by any agreement or modification made 
 between the state and the Secretary of Health, Education and 
 Welfare. 

    Subd. 32.    Formula program.  "Formula program" means 
 a retirement program which provides benefits based on certain 
 percentages multiplied by the years of service and average 
 salary of a member as described in section 354.44. 

    Subd. 33. Repealed, 1990 c 570 art 12 s 64 

    Subd. 34. Repealed, 1990 c 570 art 12 s 64 

    Subd. 35.    Salary.  (a) "Salary" means the periodic 
 compensation, upon which member contributions are required 
 before deductions for deferred compensation, supplemental 
 retirement plans, or other voluntary salary reduction programs. 

    (b) "Salary" does not mean: 

    (1) lump sum annual leave payments; 

    (2) lump sum wellness and sick leave payments; 

    (3) employer-paid amounts used by an employee toward the 
 cost of insurance coverage, employer-paid fringe benefits, 
 flexible spending accounts, cafeteria plans, health care expense 
 accounts, day care expenses, or any payments in lieu of any 
 employer-paid group insurance coverage, including the difference 
 between single and family rates that may be paid to a member 
 with single coverage and certain amounts determined by the 
 executive director to be ineligible; 

    (4) any form of payment made in lieu of any other 
 employer-paid fringe benefit or expense; 

    (5) any form of severance payments; 

    (6) workers' compensation payments; 

    (7) disability insurance payments including self-insured 
 disability payments; 

    (8) 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; 

    (9) payments under section 356.24, subdivision 1, clause 
 (4); and 

    (10) payments made under section 122A.40, subdivision 12, 
 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. 

    Subd. 35a.    Severance payments.  Severance payments 
 include, but are not limited to: 

    (1) payments to an employee to terminate employment; 

    (2) payments, or that portion of payments, that are not 
 clearly for the performance of services by the employee to the 
 employer; 

    (3) payments to an administrator or former administrator 
 serving as an advisor to a successor or as a consultant to the 
 employer under an agreement to terminate employment within two 
 years or less of the execution of the agreement for compensation 
 that is significantly different than the most recent contract 
 salary; 

    (4) payments under a procedure that allows the employee to 
 designate the time of payment if the payments are made during 
 the period of formula service credit used to compute a benefit 
 or annuity under section 354.44, subdivision 6 or 7; 354.46, 
 subdivision 1 or 2; or 354.48, subdivision 3; and 

    (5) lump sum payments during the time period that contains 
 the highest five successive years of salary for additional 
 services performed without pay during other years of salary. 

    Subd. 36.    Retiree of association.  "Retiree of 
 association" means any former member who has retired as provided 
 in this chapter. 

    Subd. 37.    Termination of teaching service.  
 "Termination of teaching service" means the withdrawal of a 
 member from active teaching service by resignation or the 
 termination of the member's teaching contract by the employer.  
 A member is not considered to have terminated teaching service, 
 if before the effective date of the termination or retirement, 
 the member has entered into a contract to resume teaching 
 service with an employing unit covered by the provisions of this 
 chapter. 

    Subd. 38.    Normal retirement age.  "Normal retirement 
 age" means age 65 for a person who first became a member of the 
 association or a member of a pension fund listed in section 
 356.30, subdivision 3, before July 1, 1989.  For a person who 
 first becomes a member of the association after June 30, 1989, 
 normal retirement age means the higher of age 65 or "retirement 
 age," as defined in United States Code, title 42, section 
 416(l), as amended, but not to exceed age 66. 

    Subd. 39.    Administrator's normal work year.  Normal 
 work year for school principals and all other administrators 
 means 12 consecutive full months of continuous employment from 
 July 1 to June 30. 

    Subd. 40.    Timely receipt.  An application, payment, 
 return, claim, or other document that is not personally 
 delivered to the association on or before the applicable due 
 date is considered to be a timely receipt if received on or 
 before the due date or if delivered or filed under section 
 645.151. 

    HIST: (2950-1) 1931 c 406 s 1; 1957 c 576 s 1,2; Ex1957 c 16 s 
 1,2; Ex1959 c 50 s 1-4; 1961 c 597 s 1; Ex1961 c 17 s 1; 1963 c 
 845 s 1; 1965 c 821 s 1; Ex1967 c 6 s 5; 1969 c 485 s 1,2; 1971 
 c 40 s 1-3; 1971 c 535 s 1; Ex1971 c 48 s 7; 1973 c 270 s 2; 
 1973 c 728 s 3; 1974 c 289 s 2-8; 1975 c 306 s 1-4; 1975 c 321 s 
 2; 1977 c 67 s 1; 1977 c 97 s 1; 1977 c 429 s 35; 1978 c 556 s 
 1; 1978 c 720 s 8; 1980 c 342 s 8; 1980 c 607 art 14 s 46; 1980 
 c 609 art 5 s 21; 1981 c 224 s 98-102; 1983 c 148 s 1,2; 1986 c 
 444; 1986 c 458 s 14,15; 1987 c 258 s 12; 1987 c 259 s 30; 1987 
 c 284 art 6 s 1,2; 1987 c 384 art 1 s 34; 1988 c 709 art 11 s 1; 
 1989 c 246 s 2; 1989 c 319 art 2 s 4,5; art 13 s 53; art 18 s 
 1,2; 1990 c 426 art 1 s 5; 1990 c 570 art 12 s 23; 1991 c 269 
 art 2 s 9; 1991 c 340 s 3-8; 1993 c 336 art 6 s 10,11; 1994 c 
 465 art 3 s 35; 1994 c 508 art 1 s 3; 1994 c 528 art 3 s 1-7; 
 1995 c 141 art 3 s 6-8,20; art 4 s 3; 1996 c 305 art 1 s 79; 
 1997 c 233 art 1 s 47; 1998 c 397 art 11 s 3; 1999 c 222 art 9 s 
 4; 2000 c 461 art 3 s 27,28; 1Sp2001 c 10 art 3 s 17; art 6 s 4 

*   NOTE:  The amendment to subdivision 13 by Laws 2001, First 
*Special Session chapter 10, article 6, section 4, expires May 
*16, 2003.  Laws 2001, First Special Session chapter 10, article 
*6, section 21.

     354.06 Board of trustees; membership; duties. 

    Subdivision 1.    Board.  The management of the 
 association is vested in a board of eight trustees known as the 
 board of trustees of the teachers retirement association.  It is 
 composed of the following persons:  the commissioner of 
 children, families, and learning, the commissioner of finance, a 
 representative of the Minnesota school boards association, four 
 members of the association elected by the members of the 
 association, and one retiree elected by the retirees of the 
 association.  The five elected members of the board of trustees 
 must be chosen by ballot in a manner fixed by the board of 
 trustees of the association.  In every odd-numbered year there 
 shall be elected two members of the association to the board of 
 trustees for terms of four years commencing on the first of July 
 next succeeding their election.  In every other odd-numbered 
 year one retiree of the association must be elected to the board 
 of trustees for a term of four years commencing on the first of 
 July next succeeding the election.  The filing of candidacy for 
 a retiree election must include a petition of endorsement signed 
 by at least ten retirees of the association.  Each election must 
 be completed by June first of each succeeding odd-numbered 
 year.  In the case of elective members, any vacancy must be 
 filled by appointment by the remainder of the board, and the 
 appointee shall serve until the members or retirees of the 
 association at the next regular election have elected a trustee 
 to serve for the unexpired term caused by the vacancy.  No 
 member or retiree may be appointed by the board, or elected by 
 the members of the association as a trustee, if the person is 
 not a member or retiree of the association in good standing at 
 the time of the appointment or election.  

    Subd. 1a.    Fiduciary duty.  It is the duty of the 
 board of trustees and the executive director to undertake their 
 activities consistent with chapter 356A. 

    Subd. 2.    President; executive director.  The board 
 shall annually elect one of its members as president.  It shall 
 elect an executive director, whose salary shall be as provided 
 by section 15A.0815.  The salary of the assistant executive 
 director who shall be in the unclassified service, shall be set 
 in accordance with section 43A.18, subdivision 3.  The executive 
 director shall serve during the pleasure of the board and be the 
 executive officer of the board, with such duties as the board 
 shall prescribe.  The board shall employ all other clerks and 
 employees necessary to properly administer the association.  The 
 cost and expense of administering the provisions of this chapter 
 shall be paid by the association.  The executive director shall 
 be appointed by the board on the basis of fitness, experience in 
 the retirement field and leadership ability.  The executive 
 director shall have had at least five years of experience on the 
 administrative staff of a major retirement system. 

    Subd. 2a.    Duties of executive director.  The 
 management of the association is vested in the executive 
 director who shall be the executive and administrative head of 
 the association.  The executive director shall act as advisor to 
 the board on all matters pertaining to the association and shall 
 also act as the secretary of the board.  The executive director 
 shall: 

    (1) attend all meetings of the board; 

    (2) prepare and recommend to the board appropriate rules to 
 carry out the provisions of this chapter; 

    (3) establish and maintain an adequate system of records 
 and accounts following recognized accounting principles and 
 controls; 

    (4) designate an assistant executive director in the 
 unclassified service and two assistant executive directors in 
 the classified service with the approval of the board, and 
 appoint such employees, both permanent and temporary, as are 
 necessary to carry out the provisions of this chapter; 

    (5) organize the work of the association as the director 
 deems necessary to fulfill the functions of the association, and 
 define the duties of its employees and delegate to them any 
 powers or duties, subject to the director's control and under 
 such conditions as the director may prescribe; 

    (6) with the approval of the board, contract and set the 
 compensation for the services of an approved actuary, 
 professional management services, and any other consulting 
 services.  These contracts are not subject to the competitive 
 bidding procedure prescribed by chapter 16C.  An approved 
 actuary retained by the executive director shall function as the 
 actuarial advisor of the board and the executive director and 
 may perform actuarial valuations and experience studies to 
 supplement those performed by the actuary retained by the 
 legislative commission on pensions and retirement.  Any 
 supplemental actuarial valuations or experience studies shall be 
 filed with the executive director of the legislative commission 
 on pensions and retirement.  Copies of professional management 
 survey reports must be transmitted to the secretary of the 
 senate, the chief clerk of the house of representatives, and the 
 legislative reference library as provided by section 3.195, and 
 to the executive director of the commission at the same time as 
 reports are furnished to the board.  Only management firms 
 experienced in conducting management surveys of federal, state, 
 or local public retirement systems are qualified to contract 
 with the executive director; 

    (7) with the approval of the board, provide in-service 
 training for the employees of the association; 

    (8) make refunds of accumulated contributions to former 
 members and to the designated beneficiary, surviving spouse, 
 legal representative, or next of kin of deceased members or 
 deceased former members, under this chapter; 

    (9) determine the amount of the annuities and disability 
 benefits of members covered by the association and authorize 
 payment of the annuities and benefits beginning as of the dates 
 on which the annuities and benefits begin to accrue, under this 
 chapter; 

    (10) pay annuities, refunds, survivor benefits, salaries, 
 and necessary operating expenses of the association; 

    (11) prepare and submit to the board and the legislature an 
 annual financial report covering the operation of the 
 association, as required by section 356.20; 

    (12) certify funds available for investment to the state 
 board of investment; 

    (13) with the advice and approval of the board, request the 
 state board of investment to sell securities on determining that 
 funds are needed for the purposes of the association; 

    (14) prepare and submit biennial and annual budgets to the 
 board and with the approval of the board submit those budgets to 
 the department of finance; and 

    (15) with the approval of the board, perform such other 
 duties as may be required for the administration of the 
 association and the other provisions of this chapter and for the 
 transaction of its business.  The executive director may: 

    (i) reduce all or part of the accrued interest and fines 
 payable by an employing unit for reporting requirements under 
 section 354.52, based on an evaluation of any extenuating 
 circumstances of the employing unit; 

    (ii) assign association employees to conduct field audits 
 of an employing unit to ensure compliance with the provisions of 
 this chapter; and 

    (iii) recover overpayments, if not repaid to the 
 association, by suspending or reducing the payment of a 
 retirement annuity, refund, disability benefit, survivor 
 benefit, or optional annuity under this chapter until the 
 overpayment, plus interest, has been recovered. 

    Subd. 3.    Treasurer.  The state treasurer shall be ex 
 officio treasurer of the association and the treasurer's general 
 bond to the state shall cover any liabilities for acts as 
 treasurer of the association.  The state treasurer shall receive 
 all moneys payable to the association and pay out the same only 
 on warrants issued by the commissioner of finance upon forms 
 signed by the executive director. 

    Subd. 4.    Board; expenses.  All members of the board 
 shall serve without compensation.  A member shall receive 
 necessary expenses to attend meetings of the board and its 
 committees, and association functions and presentations 
 authorized by the board.  The necessary expenses must be paid 
 out of the fund.  Members of the board shall suffer no loss of 
 compensation from their employing units by reason of service on 
 or for the association, the board, or any committee authorized 
 by the board.  Necessary expenses may include the salary of any 
 substitute teacher which the employing unit is required to hire 
 in the absence of the board member.  The board may reimburse the 
 employing unit for the cost of the substitute teacher. 

    Subd. 5.    Meetings.  The board shall meet regularly 
 at its office at such times as it shall determine.  Special 
 meetings may be held at any time at the call of the president of 
 the board or of any three members thereof. 

    Subd. 6.    Fiscal year.  The fiscal year of the 
 association shall begin on the first day of July of each year 
 and end on the 30th day of June of the following year. 

    Subd. 7.    Office.  A suitable office shall be 
 provided by the state through the proper officer for the use of 
 the board and its executive director. 

    HIST: (2950-3) 1931 c 406 s 3; 1955 c 361 s 1; Ex1959 c 50 s 
 5; Ex1961 c 17 s 2,3; 1963 c 585 s 1; 1969 c 485 s 3,4; 1974 c 
 289 s 9,10; 1975 c 306 s 5; 1977 c 67 s 2,3,13; 1977 c 429 s 36; 
 1980 c 342 s 9; 1981 c 160 s 1,2; 1981 c 224 s 103; 1982 c 578 
 art 1 s 5; 1983 c 289 s 114 subd 1; 1983 c 299 s 29; 1984 c 655 
 art 1 s 92; 1986 c 444; 1987 c 259 s 31; 1987 c 284 art 6 s 3; 
 1989 c 319 art 8 s 17; 1994 c 528 art 3 s 8,9; 1994 c 632 art 3 
 s 57; 1995 c 141 art 3 s 9,20; 1Sp1995 c 3 art 16 s 13; 2Sp1997 
 c 3 s 18; 1998 c 386 art 2 s 88; 1999 c 99 s 18; 1999 c 222 art 
 9 s 5 

     354.07 Powers of the board. 

    Subdivision 1.    General powers of the board.  The 
 board has the power to frame bylaws for its own government and 
 for the management of the association not inconsistent with the 
 laws of the state and to modify them at its pleasure; to adopt, 
 alter, and enforce reasonable rules not inconsistent with the 
 laws of the state for the administration and management of the 
 association, for the payment and collection of payments from 
 members, and for the payment of withdrawals and benefits; to 
 pass upon and allow or disallow applications for membership in 
 the association and for credit for teaching service; to pass 
 upon and allow or disallow claims for withdrawals, pensions, or 
 benefits payable by the fund; to adopt an appropriate mortality 
 table based on experience of the association as recommended by 
 the commission-retained actuary and using the applicable 
 postretirement interest assumption specified in section 356.215, 
 subdivision 4d; to provide for the payment out of the fund of 
 necessary expenses for the administration by the association and 
 of claims for withdrawals, pensions, or benefits allowed. 

    Subd. 2.  In passing upon all applications and claims, the 
 board may summon, swear, hear, and examine witnesses and, in the 
 case of claims for disability benefits, may require the claimant 
 to submit to a medical examination by a physician of the board's 
 choice, at the expense of the claimant, as a condition precedent 
 to the passing on the claim, and, in the case of all 
 applications and claims, may conduct investigations necessary to 
 determine the validity and merit of the same. 

    Subd. 3.  The attorney general shall be legal advisor to 
 the board and the executive director.  The board may sue or be 
 sued or petitioned under section 354.071 in the name of the 
 board of trustees of the teachers retirement association.  In 
 all actions brought by or against it the board shall be 
 represented by the attorney general.  Except as provided in 
 section 354.071, subdivision 9, venue of all actions is in the 
 Ramsey county district court. 

    Subd. 4.  It shall be the duty of the board from time to 
 time to certify to the state board of investment for investment 
 as much of the funds in its hands as shall not be needed for 
 current purposes.  Such funds that are certified as to 
 investment in the postretirement investment fund shall include 
 the amount as required for the total reserves needed for the 
 purposes described in section 354.63.  The state board of 
 investment shall thereupon transfer such assets to the 
 appropriate fund provided herein, in accordance with the 
 procedure set forth in section 354.63, or invest and reinvest an 
 amount equal to the sum so certified in such securities as are 
 now or may hereafter be duly authorized legal investments for 
 state employees retirement fund and all such securities so 
 transferred or purchased shall be deposited with the state 
 treasurer.  All interest from these investments shall be 
 credited to the appropriate funds and used for current purposes 
 or investments, except as hereinafter provided.  The state board 
 of investment shall have authority to sell, convey, and exchange 
 such securities and invest and reinvest the funds when it deems 
 it desirable to do so, and shall sell securities upon request of 
 the officers of the association when such officers determine 
 funds are needed for its purposes.  All of the provisions 
 regarding accounting procedures and restrictions and conditions 
 for the purchase and sale of securities for the state employees 
 retirement fund shall apply to the accounting, purchase and sale 
 of securities for the teachers' retirement association. 

    Subd. 5.  The board shall keep a record of the receipts and 
 disbursements of the fund and a separate account with each 
 member of the association.  The board shall also keep separate 
 accounts for annuity payments, for employer contributions and 
 all other necessary accounts and reserves.  It shall determine 
 annually the annual interest earnings of the fund which shall 
 include realized capital gains and losses.  Any amount in the 
 capital reserve account on July 1, 1973 shall be transferred to 
 the employer contribution's account.  The annual interest 
 earnings shall be apportioned and credited to the separate 
 members' accounts except those covered under the provisions of 
 section 354.44, subdivision 6 or 7.  The rate to be used in this 
 distribution computed to the last full quarter percent shall be 
 determined by dividing the interest earnings by the total 
 invested assets of the fund.  The excess of the annual interest 
 earnings in the excess earnings reserve which was not credited 
 to the various accounts shall be credited to the gross interest 
 earnings for the next succeeding year. 

    Subd. 6.  Repealed, 1969 c 485 s 40 

    Subd. 7.  Notwithstanding chapter 16B or 16C or any law to 
 the contrary, the board may use the services of the department 
 of administration, information services division, for electronic 
 data processing and related services or may contract for all or 
 a portion of such services. 

    Subd. 8. Repealed, 1984 c 564 s 51 

    Subd. 9.  All school districts, state universities, 
 community colleges and other employers of members of the 
 association are obligated to distribute to their employees 
 ballots for the election of members to the board of trustees, 
 pamphlets, brochures, documents or any other material containing 
 association information which are prepared by the executive 
 director or the board and are delivered to the employers for 
 distribution. 

    HIST: (2950-4) 1931 c 406 s 4; 1949 c 708 s 1; 1951 c 481 s 1; 
 1953 c 750 s 1; 1961 c 380 s 3; Ex1961 c 17 s 4; 1965 c 305 s 2; 
 1969 c 485 s 5; 1971 c 40 s 4; 1973 c 270 s 3; 1973 c 728 s 4; 
 1974 c 289 s 11; 1975 c 306 s 6,7; 1977 c 67 s 4; 1980 c 607 art 
 14 s 45 subd 2; 1981 c 224 s 104; 1985 c 248 s 70; 1Sp1985 c 7 s 
 35; 1987 c 259 s 32; 1987 c 284 art 6 s 4; 1989 c 319 art 2 s 6; 
 1990 c 570 art 12 s 24; 1995 c 141 art 3 s 20; 1995 c 186 s 71; 
 1998 c 386 art 2 s 89 

     354.071 Appeals procedure. 

    Subdivision 1.    Definitions.  Unless the language or 
 context clearly indicates that a different meaning is intended, 
 for the purpose of this section, the following terms have the 
 meanings given. 

    (a) "Documentation" includes but is not limited to: 

    (1) sworn and notarized affidavits made on the personal 
 knowledge of any person; 

    (2) official letters or documents; 

    (3) documents from the file of the petitioner; and 

    (4) other relevant documents that are admissible as 
 evidence in a court of law. 

    (b) "Executive director" means the executive director of 
 the teachers retirement association. 

    (c) "Person" includes any state institution, school 
 district, or other governmental unit that employs persons 
 covered under statutes listed in subdivision 2. 

    (d) "Record" means the petition and the documentation that 
 the petitioners submit with the petition, the executive 
 director's answer to the petition and documentation submitted 
 with it, and any documentation the board allows to be submitted 
 at or after the meeting at which the petition is considered. 

    Subd. 2.    Notice of termination or denial.  If the 
 executive director terminates a benefit or denies an application 
 or a written request of any person claiming a right under this 
 chapter or the applicable sections of chapters 136, 354B, 355, 
 and 356, the executive director must serve upon that person a 
 written notice.  The notice must contain: 

    (1) the reasons for the termination or denial; 

    (2) notice that the person may petition the board for a 
 review of the termination or denial and that the petition for 
 review must be filed within 60 days of the receipt of the 
 written notice; 

    (3) a statement that relevant documentation submitted by 
 the petitioner to the executive director must be received in the 
 office of the teachers retirement association at least 30 days 
 before the meeting prescribed in subdivision 4; 

    (4) a statement that failure to petition the board within 
 60 days will preclude the person from contesting in any other 
 court procedure or administrative hearing, the issues determined 
 by the executive director; and 

    (5) a copy of this section. 

    Subd. 3.    Petition for review.  A person who claims a 
 right under subdivision 2 and whose benefit has been terminated 
 or whose application or written request has been denied may 
 petition for a review of that decision by the board.  A petition 
 under this section must be served upon the executive director 
 personally, or by mail postmarked no later than 60 days after 
 the petitioner received the notice required by subdivision 2.  
 The petition must include the sworn, notarized statement of the 
 reasons the petitioner believes the decision of the executive 
 director should be reversed or modified and may include relevant 
 documentation.  Relevant documentation submitted by the 
 petitioner to the executive director must be received in the 
 office of the teachers retirement association at least 30 days 
 before the meeting prescribed in subdivision 4. 

    Subd. 4.    Answer; record for hearing.  Within a 
 reasonable time after receiving a petition, the executive 
 director must serve the petitioner with an answer to the 
 petition with all relevant documentation and with notice of the 
 time and place of the regular or special board meeting at which 
 the board will consider the petition.  The documentation need 
 not duplicate the documentation submitted by the petitioner.  
 Not later than ten days before the board meeting at which the 
 petition will be heard and at the time the petition is 
 considered by the board, the executive director must, personally 
 or by mail, deliver a copy of the relevant documentation to each 
 board member.  Each board member who participates in the 
 decision on the petition must be familiar with all relevant 
 documentation. 

    Subd. 5.    Petition for review hearing.  The board 
 shall hold a timely hearing on a petition for review and make 
 its decision on a petition solely on the proceedings and the 
 relevant documentation of the hearing.  At the hearing, the 
 petitioner, the petitioner's attorney, the executive director, 
 and an assistant executive director may state and discuss with 
 the board their positions with respect to the petition.  The 
 board may allow further documentation to be placed in the record 
 during or after the hearing.  If the board allows additional 
 documentation into the record during or after the hearing, it 
 may make a final determination on the petition at that hearing 
 only upon the agreement of both the petitioner and the executive 
 director. 

    Subd. 5a.    Executive director's determination.  
 Notwithstanding subdivisions 4 and 5, if the executive director 
 determines with respect to a petition that no relevant facts are 
 in dispute, the executive director shall inform the board of 
 that determination, and the board may issue findings of fact, a 
 decision, reasons for the decision, and a final order and serve 
 it upon the petitioner as provided in subdivision 8.  If a 
 petitioner receives an adverse decision, the petitioner may 
 appeal the board's final order under subdivision 9. 

    Subd. 6.    Termination of benefits.  If the executive 
 director proposes to terminate a benefit that is being paid to 
 any person, before terminating the benefit the executive 
 director must, in addition to the other procedures prescribed 
 herein, give the person written or oral notice of the proposed 
 termination.  The notice must explain the reason for the 
 proposed termination.  The person must be given an opportunity, 
 verbally or in writing, to explain why the benefit should not be 
 terminated.  If the executive director is unable to contact the 
 person and the executive director determines that a failure to 
 terminate the benefit might result in unauthorized payment by 
 the association, the executive director may terminate the 
 benefit with only a written notice containing the information 
 required by subdivision 2, mailed to the address to which the 
 benefit was last sent and, if that address is a financial 
 institution, to the last known address of the person. 

    Subd. 7.    Medical adviser action.  If a person 
 petitions the board to reverse or modify a determination by the 
 executive director finding that the petitioner, for medical 
 reasons, does not or has ceased to qualify for a disability 
 benefit, the board may resubmit the matter to the medical 
 adviser for reconsideration, with or without instructions to 
 obtain further medical examinations.  The board may make a 
 determination contrary to the recommendation of the medical 
 adviser only if there is expert medical evidence in the record 
 to support its contrary decision.  If there is no medical 
 opinion contrary to the opinion of the medical adviser in the 
 record and the medical adviser asserts that the decision was 
 made in accordance with the disability standard in section 
 354.05, subdivision 14, the board must follow the determination 
 of the medical adviser.  The board may make a determination 
 different from the recommendation of the medical adviser on 
 issues that do not involve a medical opinion. 

    Subd. 8.    Board findings.  After the board has made a 
 decision on a petition, the executive director must prepare 
 findings of fact, the board's reasons for its conclusions, and 
 the board's final order for the signature of the chair or other 
 board member as the board, by resolution, may designate.  The 
 executive director must serve the findings, conclusions, and 
 order on the petitioner by certified mail. 

    Subd. 9.    Appeals.  Within 30 days of receipt of the 
 findings, conclusions, and final order, the petitioner may 
 appeal the board's decision by writ of certiorari to the court 
 of appeals.  Failure to appeal to that court within the 30 days 
 precludes the petitioner from later raising, in any court 
 procedure or administrative hearing, those substantive and 
 procedural issues that reasonably should have been raised upon 
 appeal. 

    Subd. 10.    Referral for administrative hearing.  
 Notwithstanding sections 14.03, 14.06, and 14.57 to 14.69, a 
 challenge to a determination of the executive director must be 
 conducted exclusively under the procedures in this section.  The 
 board in its sole discretion may refer a petition brought under 
 this section to the office of administrative hearings for a 
 contested case hearing under sections 14.57 to 14.69. 

    Subd. 11.    Petition without notice.  A person who is 
 not entitled to notice of a right of review under this section 
 may nevertheless receive review of a decision of the executive 
 director which affects the person's rights by petitioning the 
 board under this section within 60 days of the time the person 
 knew or should have known of the disputed decision. 

    HIST: 1989 c 319 art 2 s 7; 1990 c 570 art 12 s 25-27; 1991 c 
 340 s 9; 1994 c 528 art 3 s 10 

  354.08 Repealed, 1974 c 289 s 59 

    354.09 Subdivision 1.  Repealed, 1981 c 224 s 276 

    Subd. 2. Repealed, 1974 c 289 s 59 

    Subd. 3. Repealed, 1974 c 289 s 59 

    Subd. 4. Repealed, 1981 c 224 s 276 

    Subd. 5.  Repealed, 1973 c 728 s 32 

     354.091 Service credit. 

    (a) In computing service credit, no teacher shall receive 
 credit for more than one year of teaching service for any fiscal 
 year.  Commencing July 1, 1961: 

    (1) if a teacher teaches less than five hours in a day, 
 service credit must be given for the fractional part of the day 
 as the term of service performed bears to five hours; 

    (2) if a teacher teaches five or more hours in a day, 
 service credit must be given for only one day; 

    (3) if a teacher teaches at least 170 full days in any 
 fiscal year, service credit must be given for a full year of 
 teaching service; and 

    (4) if a teacher teaches for only a fractional part of the 
 year, service credit must be given for such fractional part of 
 the year as the period of service performed bears to 170 days. 

    (b) A teacher shall receive a full year of service credit 
 based on the number of days in the employer's full school year 
 if it is less than 170 days.  Teaching service performed before 
 July 1, 1961, must be computed under the law in effect at the 
 time it was performed. 

    (c) A teacher does not lose or gain retirement service 
 credit as a result of the employer converting to a flexible or 
 alternate work schedule.  If the employer converts to a flexible 
 or alternate work schedule, the forms for reporting and the 
 procedures for determining service credit must be determined by 
 the executive director with the approval of the board of 
 trustees.  

    HIST: 1974 c 289 s 13; 1981 c 160 s 3; 1982 c 578 art 1 s 6; 
 1989 c 319 art 2 s 8; 1994 c 528 art 3 s 11; 2000 c 461 art 3 s 
 29 

     354.092 Sabbatical leave. 

    Subdivision 1.    Definition.  A sabbatical leave for 
 the purpose of this section means a sabbatical leave as defined 
 in section 122A.49 or the applicable personnel policy of the 
 Minnesota state colleges and universities. 

    Subd. 2.    Pay rate; certification.  A sabbatical leave 
 must be compensated by a minimum of one-third of the salary that 
 the member received for a comparable period during the prior 
 fiscal year.  Upon granting a sabbatical leave, the employing 
 unit granting the leave must certify the leave to the 
 association on a form specified by the executive director.  

    Subd. 3.    Employer and employee contributions.  
 Employer contributions and deductions for employee contributions 
 at the applicable rate specified in section 354.42 must be made 
 by the employing unit based on the full normal base contract 
 salary that would have been paid to the member if the member 
 were not on sabbatical leave.  The employer must meet the 
 reporting and remittance requirements under section 354.52. 

    Subd. 4.    Service credit.  A member may not receive 
 more than three years of allowable service credit in any ten 
 consecutive years under this section unless the allowable 
 service credit was paid for by the member before July 1, 1962.  
 Notwithstanding the provisions of any agreements to the 
 contrary, employee and employer contributions may not be made to 
 receive allowable service credit under this section if the 
 member does not retain the right to full reinstatement both 
 during and at the end of the sabbatical leave. 

    HIST: 1974 c 289 s 54; 1975 c 306 s 8; 1981 c 160 s 4; 1Sp1985 
 c 12 art 11 s 4; 1986 c 444; 1989 c 319 art 2 s 9; 1991 c 340 s 
 10; 1997 c 241 art 3 s 4-6; 1998 c 397 art 11 s 3; 2000 c 461 
 art 3 s 30 

     354.093 Parental leave. 

    Upon granting a parental leave for the birth or adoption of 
 a child, the employing unit granting the leave must certify the 
 leave to the association on a form specified by the executive 
 director.  A member of the association granted parental leave of 
 absence by the employing unit is entitled to service credit not 
 to exceed one year for the period of leave upon payment to the 
 association by the end of the fiscal year following the fiscal 
 year in which the leave of absence terminated.  This payment 
 must equal the total required employee and employer 
 contributions, and amortization contributions, if any, for the 
 period of leave prescribed in section 354.42.  The payment must 
 be based on the member's average full-time monthly salary rate 
 on the date the leave of absence commenced, and must be without 
 interest.  Notwithstanding the provisions of any agreements to 
 the contrary, the contributions specified in this section may 
 not be made to receive allowable service credit under this 
 section if the member does not retain the right to full 
 reinstatement at the end of the leave. 

    HIST: 1976 c 329 s 29; 1991 c 340 s 11; 1995 c 141 art 3 s 20; 
 2000 c 461 art 3 s 31 

     354.094 Extended leaves of absence. 

    Subdivision 1.    Service credit contributions.  Upon 
 granting any extended leave of absence under section 122A.46 or 
 136F.43, the employing unit granting the leave must certify the 
 leave to the association on a form specified by the executive 
 director.  A member granted an extended leave of absence under 
 section 122A.46 or 136F.43 may pay employee contributions and 
 receive allowable service credit toward annuities and other 
 benefits under this chapter, for each year of the leave, 
 provided that the member and the employing board make the 
 required employer contribution in any proportion they may agree 
 upon, during the period of the leave.  The leave period must not 
 exceed five years.  A member may not receive more than five 
 years of allowable service credit under this section.  The 
 employee and employer contributions must be based upon the rates 
 of contribution prescribed by section 354.42 for the salary 
 received during the year immediately preceding the extended 
 leave.  Payments for the years for which a member is receiving 
 service credit while on extended leave must be made on or before 
 the later of June 30 of each fiscal year for which service 
 credit is received or within 30 days after first notification of 
 the amount due, if requested by the member, is given by the 
 association.  No payment is permitted after the following 
 September 30.  Payments received after June 30 must include 
 interest at an annual rate of 8.5 percent from June 30 through 
 the end of the month in which payment is received.  
 Notwithstanding the provisions of any agreements to the 
 contrary, employee and employer contributions may not be made to 
 receive allowable service credit if the member does not have 
 full reinstatement rights as provided in section 122A.46 or 
 136F.43, both during and at the end of the extended leave. 

    Subd. 1a. Repealed, 1991 c 130 s 38; 1991 c 340 s 34 

    Subd. 1b. Repealed, 1991 c 130 s 38; 1991 c 340 s 34 

    Subd. 2.    Membership; retention.  Notwithstanding 
 section 354.49, subdivision 4, clause (3), a member on extended 
 leave whose employee and employer contributions are paid into 
 the fund pursuant to subdivision 1 shall retain membership in 
 the association for as long as the contributions are paid, under 
 the same terms and conditions as if the member had continued to 
 teach in the district or the Minnesota state colleges and 
 universities system. 

    Subd. 3.    Effect of nonpayment.  A member on extended 
 leave of absence pursuant to section 122A.46 or 136F.43 who does 
 not pay employee contributions or whose employer contribution is 
 not paid into the fund in any year shall be deemed to cease to 
 render teaching services beginning in that year for purposes of 
 this chapter and may not pay employee or employer contributions 
 into the fund in any subsequent year of the leave.  Nonpayment 
 of contributions into the fund shall not affect the rights or 
 obligations of the member or the member's employer under section 
 122A.46 or 136F.43. 

    Subd. 4.    Member who does not resume teaching.  A 
 member who pays employee contributions into the fund for the 
 agreed maximum duration of an extended leave and who does not 
 resume teaching in the first school year after that maximum 
 duration has elapsed shall be deemed to cease to render teaching 
 services beginning in that year for purposes of this chapter. 

    Subd. 5.    Discharge; layoff.  The provisions of this 
 section shall not apply to a member who is discharged or placed 
 on unrequested leave of absence or retrenchment or layoff or 
 whose contract is terminated while the member is on an extended 
 leave of absence pursuant to section 122A.46 or 136F.43.  

    Subd. 6.    Limits on other service credit.  A member 
 who pays employee contributions and receives allowable service 
 credit in the association pursuant to this section may not pay 
 employee contributions or receive allowable service credit for 
 the same fiscal year in any other Minnesota public employee 
 pension plan, except a volunteer firefighters' relief 
 association governed by sections 69.771 to 69.776.  This 
 subdivision shall not be construed to prohibit a member who pays 
 employee contributions and receives allowable service credit in 
 the association pursuant to this section in any year from being 
 employed as a substitute teacher by any school district during 
 that year.  Notwithstanding the provisions of sections 354.091 
 and 354.42, a teacher may not pay retirement contributions or 
 receive allowable service credit in the association for teaching 
 service rendered for any part of any year for which the teacher 
 pays retirement contributions or receives allowable service 
 credit pursuant to this section or section 354A.091 while on an 
 extended leave of absence pursuant to section 122A.46. 

    HIST: 1977 c 447 art 9 s 3; 1978 c 764 s 116,117; 1979 c 334 
 art 8 s 14,15; 1980 c 454 s 2-5; 1980 c 618 s 4; 1981 c 358 art 
 8 s 9-12; 1983 c 314 art 10 s 6-8; 1Sp1985 c 12 art 11 s 5; 1986 
 c 444; 1987 c 284 art 6 s 5; 1989 c 293 s 77,78; 1989 c 329 art 
 9 s 20,21; 1991 c 130 s 34; 1991 c 340 s 12; 1992 c 598 art 3 s 
 1; 1995 c 141 art 3 s 20; 1996 c 305 art 1 s 80; 1998 c 397 art 
 11 s 3; 2000 c 461 art 3 s 32; 1Sp2001 c 1 art 2 s 22 

     354.095 Medical leave; payment procedures. 

    Upon granting a medical leave, an employing unit must 
 certify the leave to the association on a form specified by the 
 executive director.  A member of the association who is on an 
 authorized medical leave of absence is entitled to receive 
 allowable service credit, not to exceed one year, for the period 
 of leave, upon making the prescribed payment to the fund.  This 
 payment must include the required employee and employer 
 contributions at the rates specified in section 354.42, 
 subdivisions 2, 3, and 5, as applied to the member's average 
 full-time monthly salary rate on the date the leave of absence 
 commenced plus compound annual interest at the rate of 8.5 
 percent from the end of the fiscal year during which the leave 
 terminates to the end of the month during which payment is 
 made.  The member must pay the total amount required unless the 
 employing unit, at its option, pays the employer contributions.  
 The total amount required must be paid before the effective date 
 of retirement or by the end of the fiscal year following the 
 fiscal year in which the leave of absence terminated, whichever 
 is earlier.  A member may not receive more than one year of 
 allowable service credit during any fiscal year by making 
 payment under this section.  A member may not receive disability 
 benefits under section 354.48 and receive allowable service 
 credit under this section for the same period of time.  
 Notwithstanding the provisions of any agreement to the contrary, 
 employee and employer contributions may not be made to receive 
 allowable service credit under this section if the member does 
 not retain the right to full reinstatement both during and at 
 the end of the medical leave. 

    HIST: 1990 c 570 art 7 s 1; 1991 c 340 s 13; 1995 c 141 art 3 
 s 20 

     354.096 Family leave. 

    Subdivision 1.    Certification.  Upon granting a family 
 leave to a member, an employing unit must certify the leave to 
 the association on a form specified by the executive director 
 before the end of the fiscal year during which the leave was 
 granted. 

    Subd. 2.    Payment.  (a) Notwithstanding any laws to 
 the contrary, a member who is granted a family leave under 
 United States Code, title 42, section 12631, may receive 
 allowable service credit for the leave by making payment of the 
 employee, employer, and additional employer contributions at the 
 rates under section 354.42, during the leave period as applied 
 to the member's average full-time monthly salary rate on the 
 date the leave commenced.  

    (b) The member may make payment, without interest, to the 
 association by the end of the fiscal year following the fiscal 
 year in which the leave terminated or before the effective date 
 of the member's retirement, whichever is earlier. 

    Subd. 3.    Subsequent eligibility.  The member shall 
 return to public service after the leave period under United 
 States Code, title 42, section 12631, to receive allowable 
 service for a subsequent authorized family leave. 

    HIST: 1994 c 528 art 3 s 12 

     354.10 Funds not subject to assignment or process; 
  beneficiaries. 

    Subdivision 1.    Exemption; exceptions.  The right of a 
 teacher to take advantage of the benefits provided by this 
 chapter, is a personal right only and is not assignable.  All 
 money to the credit of a teacher's account in the fund or any 
 money payable to the teacher from the fund belongs to the state 
 of Minnesota until actually paid to the teacher or a beneficiary 
 under this chapter.  The association may acknowledge a properly 
 completed power of attorney form.  An assignment or attempted 
 assignment of a teacher's interest in the fund, or of the 
 beneficiary's interest in the fund, by a teacher or a 
 beneficiary is void and exempt from taxation under chapter 291 
 and from garnishment or levy under attachment or execution, 
 except as provided in subdivision 2 or 3, or section 518.58, 
 518.581, or 518.6111.  

    Subd. 2.    Automatic deposits.  Upon receipt of the 
 properly completed forms as provided by the executive director, 
 the annuity, benefit, or refund amount may be electronically 
 transferred or the annuity or benefit check may be mailed to any 
 financial institution associated with the National Automated 
 Clearinghouse Association or a comparable successor organization 
 for deposit to the recipient's individual account or joint 
 account with the recipient's spouse or any other person 
 designated by the recipient.  An overpayment to a joint account 
 after the death of the annuity or benefit recipient must be 
 repaid to the fund by the joint tenant if the overpayment is not 
 repaid to the fund by the financial institution associated with 
 the National Automated Clearinghouse Association or its 
 successor.  The board may prescribe the conditions which govern 
 these procedures. 

    Subd. 3.    Payment to public bodies.  If in the 
 judgment of the executive director conditions so warrant, 
 payment may be made to a public body in behalf of an annuitant, 
 disabilitant, or survivor upon such terms as the executive 
 director may prescribe.  

    Subd. 4.    Changes in designated beneficiaries.  Any 
 beneficiary designated by a retiree or member under section 
 354.05, subdivision 22, may be changed or revoked by the retiree 
 or member on a form provided by the executive director.  A 
 change or revocation made under this subdivision is valid only 
 if the properly completed form is received by the association on 
 or before the date of death of the retiree or the member.  If a 
 designated beneficiary dies before the retiree or member 
 designating the beneficiary, and a new beneficiary is not 
 designated, the retiree's or member's estate is the beneficiary. 

    HIST: (2950-10) 1931 c 406 s 10; 1955 c 361 s 8; 1961 c 745 s 
 1; 1971 c 789 s 6; 1974 c 289 s 14; 1975 c 306 s 9; 1977 c 67 s 
 5; 1978 c 772 s 62; 1979 c 303 art 3 s 30; 1984 c 547 s 7; 1986 
 c 444; 1987 c 157 s 6; 1989 c 319 art 2 s 10; 1991 c 340 s 
 14-16; 1994 c 528 art 3 s 13,14; 1995 c 141 art 3 s 20; 1997 c 
 203 art 6 s 92; 1999 c 222 art 9 s 6; 2000 c 461 art 3 s 33 

  354.11 Repealed, 1974 c 289 s 59 

  354.12 Repealed, 1974 c 289 s 59 

  354.13 Repealed, 1974 c 289 s 59 

  354.14 Repealed, 1974 c 289 s 59 

  354.145 Repealed, 1974 c 289 s 59 

     354.146 Retirement programs. 

    Subdivision 1.  Every member who has rendered teaching 
 service or was on an authorized leave of absence after June 30, 
 1972, is covered by the formula program.  The benefit of a 
 former member who does not return to teaching service before 
 retirement shall be determined under the program in effect at 
 the time of termination.  

    Subd. 2. Repealed, 1990 c 570 art 12 s 64 

    Subd. 3.  After June 30, 1974, every new teacher entering 
 teaching service or resuming teaching service after previously 
 accepting a refund shall be covered by the full formula program. 

    HIST: 1974 c 289 s 15; 1986 c 444; 1990 c 570 art 12 s 28 

  354.15 Renumbered 354A.01 

  354.16 Renumbered 354A.02 

  354.17 Renumbered 354A.03 

  354.18 Renumbered 354A.04 

  354.19 Renumbered 354A.05 

  354.20 Renumbered 354A.06 

  354.201 Renumbered 354A.07 

  354.21 Renumbered 354A.08 

  354.22 Renumbered 354A.09 

  354.23 Renumbered 354A.10 

  354.231 Renumbered 354A.11 

  354.31 Repealed, 1974 c 289 s 59 

  354.32 Repealed, 1974 c 289 s 59 

     354.33 Computation of retirement annuities. 

    Subdivision 1.  Repealed, 1974 c 289 s 59 

    Subd. 2.  Repealed, 1974 c 289 s 59 

    Subd. 3.  Repealed, 1974 c 289 s 59 

    Subd. 4.  Repealed, 1974 c 289 s 59 

    Subd. 5.    Retirees not eligible for federal benefits.  
 Notwithstanding the provisions of section 354.55, subdivision 3, 
 when any person retires after July 1, 1973 who (a) has ten or 
 more years of allowable service, and (b) does not have any 
 retroactive social security coverage by reason of the person's 
 position in the retirement system, and (c) does not qualify for 
 old age and survivor primary benefits at the time of retirement, 
 the annuity shall be computed under section 354.44, subdivision 
 2 of the law in effect on June 30, 1969, except that 
 accumulations after June 30, 1957, shall be calculated using the 
 same mortality table and interest assumption used to transfer 
 the required reserves to the Minnesota postretirement investment 
 fund. 

    Subd. 6.    Combinations of basic and coordinated service. 
  A person's annuity must be computed as a basic member for any 
 service previously accrued as a basic member if the person 
 retires with the status of a coordinated member as a result of 
 one or both of the following events:  (1) transferring from 
 public school teaching to state university teaching, and/or (2) 
 not performing teaching service within a fiscal year.  A 
 person's annuity must be computed as a coordinated member for 
 any service previously accrued as a coordinated member if the 
 person retires with the status of a basic member as a result of 
 transferring from public school teaching to community college 
 teaching. 

    Subd. 7.  Repealed, 1974 c 289 s 59 

    Subd. 8.  Repealed, 1974 c 289 s 59 

    Subd. 9.  Repealed, 1974 c 289 s 59 

    HIST: Ex1957 c 15 s 3; Ex1959 c 50 s 23,26; 1963 c 586 s 1; 
 1965 c 804 s 1; 1965 c 821 s 6; 1967 c 3 s 1; 1969 c 485 s 8,9; 
 1971 c 40 s 10-12; 1973 c 728 s 8-11; 1974 c 289 s 17; 1975 c 
 321 s 2; 1980 c 607 art 14 s 45 subd 2; 1986 c 444; 1991 c 340 s 
 17 

  354.34 Repealed, 1974 c 289 s 59 

     354.35 Optional accelerated retirement annuity before 
  normal retirement age. 

    Any coordinated member who retires before age 65 may elect 
 to receive an optional accelerated retirement annuity from the 
 association which provides for different annuity amounts over 
 different periods of retirement.  The optional accelerated 
 retirement annuity must take the form of an annuity payable for 
 the period before the member attains age 65 in a greater amount 
 than the amount of the annuity calculated under section 354.44 
 on the basis of the age of the member at retirement, but the 
 optional accelerated retirement annuity must be the actuarial 
 equivalent of the member's annuity computed on the basis of the 
 member's age at retirement.  The greater amount must be paid 
 until the retiree reaches age 65 and at that time the payment 
 from the association must be reduced.  For each year the retiree 
 is under age 65, up to five percent of the total life annuity 
 required reserves may be used to accelerate the optional 
 retirement annuity under this section.  At retirement, members 
 who retire before age 62 may elect to have the age specified in 
 this section be 62 instead of 65.  The method of computing the 
 optional accelerated retirement annuity provided in this section 
 is established by the board of trustees.  In establishing the 
 method of computing the optional accelerated retirement annuity, 
 the board of trustees must obtain the written approval of the 
 commission-retained actuary.  The written approval must be a 
 part of the permanent records of the board of trustees.  The 
 election of an optional accelerated retirement annuity is 
 exercised by making an application on a form provided by the 
 executive director.  

    HIST: Ex1957 c 15 s 5; 1974 c 289 s 18; 1986 c 444; 1987 c 259 
 s 33; 1989 c 319 art 2 s 11; art 13 s 54; 1991 c 340 s 18; 1993 
 c 307 art 5 s 1; 2000 c 461 art 3 s 34 

  354.36 Repealed, 1974 c 289 s 59 

  354.37 Repealed, 1974 c 289 s 59 

  354.38 Repealed, 1974 c 289 s 59 

     354.39 Effective date; application. 

    After July 1, 1971, any member of the teachers retirement 
 association employed in a new state university and other new 
 institutions of higher learning not included in any agreement or 
 modification made between the state and the Secretary of Health, 
 Education and Welfare, making the provisions of the federal Old 
 Age and Survivors Insurance Act applicable to such members, 
 shall be covered under the provisions of this chapter applicable 
 to coordinated members. 

    HIST: Ex1957 c 15 s 9; Ex1959 c 50 s 46; 1973 c 728 s 12; 1974 
 c 289 s 19; 1975 c 321 s 2 

     354.41 Teachers retirement association, eligibility for 
  membership. 

    Subdivision 1.  Repealed, 1974 c 289 s 59 

    Subd. 2.  Every teacher after June 30, 1957, in the service 
 or entering the service of the state or its governmental 
 subdivision as a teacher, except persons specially excluded, 
 shall become a member of the association by the acceptance of 
 such employment. 

    Subd. 3. Repealed, 1989 c 319 art 2 s 28 

    Subd. 4.    Membership eligibility for labor organization 
 employees.  (a) A person who is a member on an authorized 
 leave of absence and is employed as an employee or officer by a 
 labor organization that is the exclusive bargaining agent or the 
 labor organization's state affiliate representing teachers 
 covered by this chapter or by an association of school 
 administrators may elect to be a coordinated member of the 
 association based on that employment, subject to the limitations 
 set forth in subdivisions 4a and 4b.  However, no person is 
 entitled to membership under this section if the person also is 
 a member of a teachers retirement association in a city of the 
 first class organized under chapter 354A for the same period of 
 service.  

    (b) The election must be made within 90 days of commencing 
 employment by the labor organization. 

    Subd. 4a.    Limitations on salary and contributions.  
 The covered salary for a labor organization employee who 
 qualifies for membership under this section is limited to the 
 lesser of: 

    (1) the employee's actual salary as defined under section 
 354.05, subdivision 35; or 

    (2) 75 percent of the salary of the governor as set under 
 section 15A.082. 

    The limited covered salary determined under this 
 subdivision must be used in determining employee, employer, and 
 employer additional contributions under section 354.42, 
 subdivisions 2, 3, and 5, and in determining retirement 
 annuities and other benefits under this chapter and chapter 356. 

    Subd. 4b.    Earning restrictions apply.  A retirement 
 annuity is only payable, if the person has met any other 
 applicable requirements, upon the termination by the person who 
 elected coverage under subdivision 4 of employment by the labor 
 organization.  The reemployed annuitant earnings limitation set 
 forth in section 354.44, subdivision 5, applies in the event 
 that the person who elected coverage under subdivision 4 retires 
 and is subsequently reemployed while an annuitant by the labor 
 organization or by any other entity employing persons who are 
 covered by the Minnesota teachers retirement association by 
 virtue of that employment. 

    Subd. 5.  For all members described in subdivision 4, the 
 employee, employer and additional employer contributions shall 
 be the obligation of the employee who elects coverage herein; 
 provided, however, that the employer organization enumerated in 
 subdivision 4 employing such member may pay the employer and 
 additional employer contributions.  The employer shall, in any 
 event, deduct the necessary contributions from the employee's 
 salary and remit all contributions to the teachers retirement 
 association pursuant to section 354.42, except that if any such 
 member is on leave of absence from a governmental employer unit, 
 these contributions shall be forwarded by the employer 
 organization to the governmental employer unit for remittance to 
 the fund as described in this chapter. 

    Subd. 6. Repealed, 1981 c 224 s 276 

    Subd. 7.    Exceptions.  Members of the association as 
 described in subdivision 4 or 9 and employees of the teachers 
 retirement association are not eligible for election to the 
 board of trustees.  

    Subd. 8. Repealed, 1981 c 224 s 276 

    Subd. 9. Repealed, 1Sp2001 c 10 art 12 s 3 

    HIST: Ex1957 c 16 s 3; Ex1959 c 50 s 27,28; 1967 c 693 s 1; 
 1971 c 40 s 15; 1973 c 728 s 13; 1975 c 306 s 10-13; 1977 c 67 s 
 6,13; 1977 c 97 s 2; 1978 c 796 s 41,42; 1981 c 160 s 5; 1986 c 
 444; 1989 c 319 art 13 s 55; 1991 c 340 s 19; 1992 c 598 art 3 s 
 2; 1994 c 465 art 3 s 31; 1994 c 528 art 4 s 8-10; 1995 c 141 
 art 3 s 20; 1Sp2001 c 10 art 12 s 1 

     354.42 Contributions by employer and employee. 

    Subdivision 1.  Repealed, 1974 c 289 s 59 

    Subd. 2.    Employee.  The employee contribution to the 
 fund is an amount equal to 5.0 percent of the salary of every 
 coordinated member and 9.0 percent of the salary of every basic 
 member.  This contribution must be made by deduction from 
 salary.  Where any portion of a member's salary is paid from 
 other than public funds, the member's employee contribution must 
 be based on the entire salary received.  

    Subd. 3.    Employer.  The employer contribution to the 
 fund is an amount equal to 5.0 percent of the salary of each 
 coordinated member and 9.0 percent of the salary of each basic 
 member.  

    Subd. 4.  Repealed, 1969 c 485 s 40 

    Subd. 5.  Repealed, 1997 c 233 art 1 s 50 

    Subd. 6.  Repealed, 1974 c 289 s 59 

    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 plan, the 
 retirement association 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. 

    HIST: Ex1957 c 16 s 4; Ex1959 c 50 s 30; 1965 c 821 s 8-10; 
 1967 c 834 s 4-6; 1969 c 485 s 13-16; 1973 c 270 s 9; 1973 c 728 
 s 14-16; 1974 c 289 s 20,21; 1977 c 313 s 1; 1978 c 781 s 3; 
 1979 c 293 s 1,2; 1984 c 564 s 29; 1987 c 259 s 34; 1989 c 319 
 art 2 s 12; 1990 c 570 art 12 s 29,30; 1990 c 591 art 2 s 5; 
 1994 c 508 art 1 s 4; 1994 c 524 s 1; 1994 c 528 art 3 s 15,16; 
 1995 c 141 art 3 s 20; 1997 c 233 art 1 s 48-50 

    354.43 Subdivision 1. Repealed, 1Sp1985 c 12 art 
 11 s 23 subd 2; 1Sp1985 c 16 art 2 s 20 subd 1 

    Subd. 2. Repealed, 1980 c 614 s 191 

    Subd. 3. Repealed, 1994 c 528 art 3 s 34 

    Subd. 4. Repealed, 1Sp1985 c 12 art 11 s 23 subd 
 2; 1Sp1985 c 16 art 2 s 20 subd 1 

    Subd. 5. Repealed, 1Sp1985 c 12 art 11 s 23 subd 
 2; 1Sp1985 c 16 art 2 s 20 subd 1 

     354.44 Retirement benefits. 

    Subdivision 1.    Requirements as to age and service.  
 Any member or former member who ceases or has ceased to render 
 teaching services in any school or institution covered by the 
 provisions of this chapter, and who has attained the age of at 
 least 55 years with not less than three years allowable service, 
 or who has received credit for not less than 30 years allowable 
 service regardless of age, is entitled upon written application 
 to a retirement annuity. 

    Subd. 1a.    Proportionate annuity.  A member who 
 terminates employment at any time during the academic year at 
 the end of which the person is at the normal retirement age or 
 older shall, for the purpose of determining eligibility for a 
 proportionate retirement annuity, be considered to have been 
 required to terminate employment at normal retirement age or 
 older pursuant to section 356.32.  For purposes of this 
 subdivision, an academic year ends August 31.  

    Subd. 2.    Computation of money purchase annuity.  The 
 amount of retirement annuity is an amount equal to double the 
 annuity which could be purchased by the member's accumulated 
 deductions plus interest thereon.  The annuity shall be 
 determined by the member's age, sex, double the amount of 
 accumulated deductions, double the interest earned on the 
 accumulated deductions, and the appropriate mortality tables and 
 interest rates.  To determine the amount of the annuity for a 
 basic member, the accumulated deductions prior to July 1, 1957, 
 and the accumulated deductions subsequent to July 1, 1957, shall 
 be considered separately. 

    (1) For service rendered prior to July 1, 1957, the 
 accumulated deductions for any member shall be carried forward 
 at a fixed amount which is shown credited to the member's 
 account as of that date.  That fixed amount shall also include 
 any payments in lieu of salary deductions which are to be made 
 in the future and are actually so made pursuant to an agreement 
 executed between the member and the board as authorized by 
 section 354.50 or any other authorized payments made by the 
 member to the fund.  The annuity granted with respect to the 
 period shall be determined as follows: 

    (a) The fixed amount of the accumulated deductions for the 
 period including the interest credited on the amount as earned 
 up to July 1, 1957. 

    (b) Annuity purchase rates based on the applicable 
 mortality table established by the board and the interest rate 
 assumption in effect prior to July 1, 1957, in the case of basic 
 members and an annuity purchase rate based on an appropriate 
 annuity table of mortality established by the board as provided 
 in section 354.07, subdivision 1, and using the applicable 
 postretirement interest rate assumption specified in section 
 356.215, subdivision 4d in the case of coordinated members. 

    (2) For service rendered subsequent to July 1, 1957, the 
 accumulated deductions for any member shall consist of the 
 amounts actually credited to the member's account by reason of 
 salary deductions.  The annuity granted with respect to the 
 period shall be determined by the following: 

    (a) accumulated deductions for the period; 

    (b) interest credited on these accumulated deductions from 
 July 1, 1957, to the date of retirement; 

    (c) interest credited on accumulated deductions including 
 prior credited interest provided in paragraph (1) from July 1, 
 1957, to the date of retirement; 

    (d) after the amount available for an annuity granted with 
 respect to the person is determined in accordance with the 
 provisions of this subdivision, an additional amount equal to 20 
 percent of the sum of clause (2)(a) plus interest credited to 
 members account from July 1, 1957, to date of retirement is to 
 be added.  This added amount is not to be doubled as provided 
 for other amounts determined in this subdivision; 

    (e) annuity purchase rate based on an appropriate annuity 
 table of mortality established by the board as provided in 
 section 354.07, subdivision 1, and using the applicable 
 postretirement interest rate assumption specified in section 
 356.215, subdivision 4d. 

    Subd. 3.    Application for retirement.  A member or a 
 person authorized to act on behalf of the member may make 
 application for retirement provided the age and service 
 requirements under subdivision 1 are satisfied on or before the 
 member's retirement annuity accrual date under subdivision 4.  
 The application may be made no earlier than 120 days before the 
 termination of teaching service.  The application must be made 
 on a form prescribed by the executive director and is not 
 complete until all necessary supporting documents are received 
 by the executive director. 

    Subd. 4.    Retirement annuity accrual date.  (a) An 
 annuity payment begins to accrue, providing that the age and 
 service requirements under subdivision 1 are satisfied, after 
 the termination of teaching service, or after the application 
 for retirement has been filed with the board, whichever is 
 later, as follows: 

    (1) on the 16th day of the month of termination or filing 
 if the termination or filing occurs on or before the 15th day of 
 the month; 

    (2) on the first day of the month following the month of 
 termination or filing if the termination or filing occurs on or 
 after the 16th day of the month; 

    (3) on July 1 for all school principals and other 
 administrators who receive a full annual contract salary during 
 the fiscal year for performance of a full year's contract 
 duties; or 

    (4) a later date to be the first or 16th day of a month 
 within the six-month period immediately following the 
 termination of teaching service as specified under paragraph (b) 
 by the member. 

    (b) If an application for retirement is filed with the 
 board during the six-month period immediately following the 
 termination of teaching service, the annuity may begin to accrue 
 as if the application for retirement had been filed with the 
 board on the date teaching service terminated or a later date 
 under paragraph (a), clause (4).  An annuity must not begin to 
 accrue more than one month before the date of final salary 
 receipt. 

    Subd. 5.    Resumption of teaching service after 
 retirement.  (a) Any person who retired under the provisions 
 of this chapter and has thereafter resumed teaching in any 
 employer unit to which this chapter applies is eligible to 
 continue to receive payments in accordance with the annuity 
 except that annuity payments must be reduced during the calendar 
 year immediately following any 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-half of 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.  

    (b) 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.  

    (c) After a person has reached the age of 70, no 
 reemployment income maximum is applicable regardless of the 
 amount of income. 

    (d) The amount of the retirement annuity reduction must be 
 handled or disposed of as provided in section 356.58. 

    (e) For the purpose of this subdivision, income from 
 teaching service includes, but is not limited to:  

    (1) all income for services performed as a consultant or an 
 independent contractor for an employer unit covered by the 
 provisions of this chapter; and 

    (2) 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 an employer 
 unit with approximately the same number of pupils and at the 
 same level as the position occupied by the person who resumes 
 teaching service.  

    Subd. 5a.    Exemption for interim superintendent.  A 
 person who performs services as an interim superintendent 
 because of the death, disability, termination, or resignation of 
 the previous superintendent is exempt from the earnings 
 limitations and reductions in annuity payments in subdivision 5 
 for up to 90 working days of service as an interim 
 superintendent.  During this period of up to 90 working days, 
 the school board may pay the interim superintendent at any rate, 
 up to the rate paid to the previous superintendent.  This 
 exemption applies only if the school board hiring the interim 
 superintendent submits an application for the exemption on a 
 form prescribed by the executive director, and the executive 
 director approves the application before the services as interim 
 superintendent begin.  The application must certify that the 
 school board has unanimously approved the exemption from the 
 earnings limitations and reductions.  The executive director may 
 prescribe a form for the application.  A school board shall not 
 apply for more than one exemption in a fiscal year.  No more 
 than three exemptions may be approved for any person.  Only one 
 exemption may be approved for any person in a fiscal year.  The 
 exemption under this subdivision does not apply to a person who 
 retires from a school district and within one year after 
 retirement returns to the same school district as an interim 
 superintendent. 

    Subd. 6.    Computation of formula program retirement 
 annuity.  (1) The formula retirement annuity must be computed 
 in accordance with the applicable provisions of the formulas 
 stated in clause (2) or (4) on the basis of each member's 
 average salary for the period of the member's formula service 
 credit.  

    For all years of formula service credit, "average salary," 
 for the purpose of determining the member's retirement annuity, 
 means the average salary upon which contributions were made and 
 upon which payments were made to increase the salary limitation 
 provided in Minnesota Statutes 1971, section 354.511, for the 
 highest five successive years of formula service credit 
 provided, however, that such "average salary" shall not include 
 any more than the equivalent of 60 monthly salary payments.  
 Average salary must be based upon all years of formula service 
 credit if this service credit is less than five years. 

    (2) This clause, in conjunction with clause (3), applies to 
 a person who first became a member of the association or a 
 member of a pension fund listed in section 356.30, subdivision 
 3, before July 1, 1989, unless clause (4), in conjunction with 
 clause (5), produces a higher annuity amount, in which case 
 clause (4) applies.  The average salary as defined in clause 
 (1), multiplied by the following percentages per year of formula 
 service credit shall determine the amount of the annuity to 
 which the member qualifying therefor is entitled: 

                        Coordinated Member   Basic Member

 Each year of service     the percent        the percent

  during first ten        specified in       specified in

                          section 356.19,    section 356.19,

                          subdivision 1,     subdivision 3,

                          per year           per year

 Each year of service     the percent        the percent

  thereafter              specified in       specified in

                          section 356.19,    section 356.19,

                          subdivision 2,     subdivision 4,

                          per year           per year

    (3)(i) This clause applies only to a person who first 
 became a member of the association or a member of a pension fund 
 listed in section 356.30, subdivision 3, before July 1, 1989, 
 and whose annuity is higher when calculated under clause (2), in 
 conjunction with this clause than when calculated under clause 
 (4), in conjunction with clause (5). 

    (ii) Where any member retires prior to normal retirement 
 age under a formula annuity, the member shall be paid a 
 retirement annuity in an amount equal to the normal annuity 
 provided in clause (2) reduced by one-quarter of one percent for 
 each month that the member is under normal retirement age at the 
 time of retirement except that for any member who has 30 or more 
 years of allowable service credit, the reduction shall be 
 applied only for each month that the member is under age 62. 

    (iii) Any member whose attained age plus credited allowable 
 service totals 90 years is entitled, upon application, to a 
 retirement annuity in an amount equal to the normal annuity 
 provided in clause (2), without any reduction by reason of early 
 retirement. 

    (4) This clause applies to a member who has become at least 
 55 years old and first became a member of the association after 
 June 30, 1989, and to any other member who has become at least 
 55 years old and whose annuity amount when calculated under this 
 clause and in conjunction with clause (5), is higher than it is 
 when calculated under clause (2), in conjunction with clause (3).
 The average salary, as defined in clause (1) multiplied by the 
 percent specified by section 356.19, subdivision 4, for each 
 year of service for a basic member and by the percent specified 
 in section 356.19, subdivision 2, for each year of service for a 
 coordinated member shall determine the amount of the retirement 
 annuity to which the member is entitled. 

    (5) This clause applies to a person who has become at least 
 55 years old and first becomes a member of the association after 
 June 30, 1989, and to any other member who has become at least 
 55 years old and whose annuity is higher when calculated under 
 clause (4) in conjunction with this clause than when calculated 
 under clause (2), in conjunction with clause (3).  An employee 
 who retires under the formula annuity before the normal 
 retirement age shall be paid the normal annuity provided in 
 clause (4) reduced so that the reduced annuity is the actuarial 
 equivalent of the annuity that would be payable to the employee 
 if the employee deferred receipt of the annuity and the annuity 
 amount were augmented at an annual rate of three percent 
 compounded annually from the day the annuity begins to accrue 
 until the normal retirement age. 

    Subd. 6a.    Extension of 1997 permanent increase.  (a) 
 A percentage of the permanent increase for benefit recipients 
 effective July 1, 1997, under Laws 1997, chapter 233, article 1, 
 section 71, as specified in paragraph (b), is payable to: 

    (1) a member who terminates service after June 30, 1997, 
 and whose benefit begins to accrue during the period of July 2, 
 1997, to July 1, 2002, based on the member's age at retirement; 

    (2) a member who is determined to be totally and 
 permanently disabled under section 354.05, subdivision 14, after 
 June 30, 1997, and whose benefit begins to accrue during the 
 period of July 2, 1997, to July 1, 2002, based on the member's 
 age at disability; 

    (3) the survivor of a member who terminates service and 
 dies after June 30, 1997, and whose benefit begins to accrue 
 during the period of July 2, 1997, to July 1, 2002. 

    (b) The percentage of the permanent increase is the amount 
 designated for the applicable beginning benefit accrual date, as 
 follows: 

            Beginning Benefit           Percentage of  

            Accrual Date                Permanent Increase  

       July 2, 1997, to July 1, 1998        50 percent  

       July 2, 1998, to July 1, 1999        40 percent  

       July 2, 1999, to July 1, 2000        30 percent  

       July 2, 2000, to July 1, 2001        20 percent  

       July 2, 2001, to July 1, 2002        10 percent 

    Subd. 7. Repealed, 1990 c 570 art 12 s 64 

    Subd. 8.    Annuity payment; evidence of receipt.  An 
 annuity or benefit for a given month must be paid during the 
 first week of that month.  Evidence of receipt of the check 
 issued or acknowledgment of the amount electronically 
 transferred in payment of an annuity or benefit may be required 
 from the payee on a form prescribed by the executive director.  
 The evidence of receipt form may be required periodically at 
 times specified by the board.  In the event the evidence of 
 receipt form is required, future annuities or benefits must be 
 withheld until the form is submitted. 

    Subd. 9.    Determining applicable law.  An employee who 
 returns to covered service following a termination and who is 
 not receiving a retirement annuity under this section must have 
 earned at least 85 days of credited service following the return 
 to covered service to be eligible for improved benefits 
 resulting from any law change enacted subsequent to that 
 termination. 

    HIST: Ex1957 c 16 s 6; Ex1959 c 50 s 10-12; 1961 c 745 s 3; 
 Ex1961 c 17 s 11; 1963 c 246 s 1; 1965 c 821 s 11; 1967 c 693 s 
 2; 1969 c 485 s 18,19; 1971 c 40 s 16; 1973 c 270 s 10; 1973 c 
 728 s 17-19; 1974 c 289 s 24-28; 1975 c 306 s 16-18; 1976 c 329 
 s 30; 1977 c 67 s 8; 1977 c 429 s 37; 1978 c 781 s 4; 1979 c 40 
 s 6; 1979 c 50 s 46,47; 1980 c 342 s 10-12; 1980 c 509 s 135; 
 1981 c 160 s 6,7; 1981 c 210 s 54; 1981 c 224 s 106-111; 1Sp1981 
 c 4 art 1 s 21; art 2 s 33; 1983 c 148 s 3; 1984 c 564 s 30; 
 1Sp1985 c 7 s 17,18; 1986 c 444; 1986 c 458 s 16; 1987 c 259 s 
 35; 1987 c 284 art 2 s 5; art 6 s 6; 1987 c 372 art 9 s 24; 1989 
 c 319 art 2 s 13-16; art 13 s 56-59; 1990 c 570 art 12 s 31; 
 1994 c 524 s 2; 1994 c 528 art 3 s 17-19; 1995 c 141 art 3 s 
 10,20; 1996 c 438 art 3 s 1,2; 1997 c 233 art 1 s 51,52; 2000 c 
 461 art 2 s 6 

     354.445 No annuity reduction. 

    (a) The annuity reduction provisions of section 354.44, 
 subdivision 5, do not apply to a person who: 

    (1) retires from the Minnesota state colleges and 
 universities system with at least ten years of combined service 
 credit in a system under the jurisdiction of the board of 
 trustees of the Minnesota state colleges and universities; 

    (2) was employed on a full-time basis immediately preceding 
 retirement as a faculty member or as an unclassified 
 administrator in that system; 

    (3) begins drawing an annuity from the teachers retirement 
 association; and 

    (4) returns to work on not less than a one-third time basis 
 and not more than a two-thirds time basis in the system from 
 which the person retired under an agreement in which the person 
 may not earn a salary of more than $46,000 in a calendar year 
 from employment after retirement in the system from which the 
 person retired. 

    (b) Initial participation, the amount of time worked, and 
 the duration of participation under this section must be 
 mutually agreed upon by the president of the institution where 
 the person returns to work and the employee.  The president may 
 require up to one-year notice of intent to participate in the 
 program as a condition of participation under this section.  The 
 president shall determine the time of year the employee shall 
 work.  The employer or the president may not require a person to 
 waive any rights under a collective bargaining agreement as a 
 condition of participation under this section.  

    (c) Notwithstanding any law to the contrary, a person 
 eligible under paragraphs (a) and (b) may not, based on 
 employment to which the waiver in this section applies, earn 
 further service credit in a Minnesota public defined benefit 
 plan and is not eligible to participate in a Minnesota public 
 defined contribution plan, other than a volunteer fire plan 
 governed by chapter 424A.  No employer or employee contribution 
 to any of these plans may be made on behalf of such a person. 

    (d) For a person eligible under paragraphs (a) and (b) who 
 earns more than $46,000 in a calendar year from employment after 
 retirement due to employment by the Minnesota state colleges and 
 universities system, the annuity reduction provisions of section 
 354.44, subdivision 5, apply only to income over $46,000. 

    (e) A person who returns to work under this section is a 
 member of the appropriate bargaining unit and is covered by the 
 appropriate collective bargaining contract.  Except as provided 
 in this section, the person's coverage is subject to any part of 
 the contract limiting rights of part-time employees. 

    HIST: 1994 c 602 s 2; 1995 c 212 art 4 s 64; 1995 c 262 art 1 
 s 4; 1998 c 390 art 2 s 9; 1999 c 222 art 19 s 4; 2000 c 461 art 
 2 s 7 

     354.45 Optional retirement annuities; unpaid annuities, 
  disposition. 

    Subdivision 1.    Optional annuity forms.  The 
 retirement board shall establish optional annuities at 
 retirement which shall take the form of an annuity payable for a 
 period certain and for life thereafter or the form of a joint 
 and survivor annuity.  The board shall also establish an 
 optional annuity which shall take the form of a guaranteed 
 refund annuity paying the annuitant a fixed amount for life with 
 the guarantee that in the event of death the balance of the 
 accumulated deductions and interest accrued to the date of 
 retirement will be paid to the designated beneficiary.  Except 
 as provided in subdivision 1a, any optional annuity forms shall 
 be actuarially equivalent to the normal forms provided in 
 section 354.44.  In establishing these optional annuity forms, 
 the board shall obtain the written recommendation of the 
 commission-retained actuary.  The recommendations shall be a 
 part of the permanent records of the board.  

    Subd. 1a.    Bounce-back annuity.  (a) If a former 
 member or disabilitant selects a joint and survivor annuity 
 option under subdivision 1, the former member or disabilitant 
 must receive a normal single life annuity if the designated 
 optional annuity beneficiary dies before the former member or 
 disabilitant.  Under this option, no reduction may be made in 
 the person's annuity to provide for restoration of the normal 
 single life annuity in the event of the death of the designated 
 optional annuity beneficiary. 

    (b) A former member or disabilitant who selected an 
 optional joint and survivor annuity before July 1, 1989, but did 
 not choose an option that provides that the normal single life 
 annuity is payable to the former member or the disabilitant if 
 the designated optional annuity beneficiary dies first, is 
 eligible for restoration of the normal single life annuity if 
 the designated optional annuity beneficiary dies first, without 
 further actuarial reduction of the person's annuity.  A former 
 member or disabilitant who selected an optional joint and 
 survivor annuity, but whose designated optional annuity 
 beneficiary died before July 1, 1989, shall receive a normal 
 single life annuity after that date, but shall not receive 
 retroactive payments for periods before that date. 

    (c) The restoration of the normal single life annuity under 
 this subdivision will take effect on the first of the month 
 following the date of death of the designated optional annuity 
 beneficiary or on the first of the month following one year 
 before the date on which a certified copy of the death record of 
 the designated optional annuity beneficiary is received in the 
 office of the teachers retirement association, whichever date is 
 later. 

    Subd. 2.    Refund upon death of retired member.  Upon 
 the death of the member after retirement where no designated 
 beneficiary shall survive the member, any remaining unpaid 
 guaranteed annuity payments shall be commuted at the applicable 
 postretirement interest rate specified in section 356.215, 
 subdivision 4d, and paid in one sum to the estate of the 
 member.  Upon the death of the last designated beneficiary after 
 the death of the member, the value of any unpaid guaranteed 
 annuity payments shall be commuted at the applicable 
 postretirement interest rate specified in section 356.215, 
 subdivision 4d, and paid in one sum to the estate of the 
 designated beneficiary.  

    HIST: Ex1957 c 16 s 7; Ex1961 c 17 s 12; 1963 c 845 s 5; 1971 
 c 40 s 17; 1973 c 728 s 20; 1987 c 259 s 36; 1989 c 319 art 13 s 
 60,61; 1990 c 570 art 12 s 32; 1Sp2001 c 9 art 15 s 32 

     354.46 Payments after death. 

    Subdivision 1.    Basic program; benefits for spouse and 
 children of teacher.  If a basic member who has at least 18 
 months of allowable service credit and who has an average salary 
 as defined in section 354.44, subdivision 6, equal to or greater 
 than $75 dies prior to retirement or if a former basic member 
 who, at the time of death, was totally and permanently disabled 
 and receiving disability benefits pursuant to section 354.48 
 dies before attaining age 65 or reaching the five-year 
 anniversary of the effective date of the disability benefit, 
 whichever is later, the surviving spouse and dependent children 
 of the basic member or former basic member are entitled to 
 receive a monthly benefit as follows: 

   (a) Surviving
   spouse .....50 percent of the basic member's monthly
               average salary paid in the last full
               fiscal year preceding death
   (b) Each
   dependent
   child ......ten percent of the basic member's
               monthly average salary paid in the
               last full fiscal year preceding death

    Payments for the benefit of any dependent child under the 
 age of 22 years must be made to the surviving parent, or if 
 there be none, to the legal guardian of the child.  The maximum 
 monthly benefit must not exceed $1,000 for any one family, and 
 the minimum benefit per family must not be less than 50 percent 
 of the basic member's average salary, subject to the foregoing 
 maximum.  The surviving dependent children's benefit must be 
 reduced pro tanto when any surviving child is no longer 
 dependent. 

    If the basic member and the surviving spouse are killed in 
 a common disaster and if the total of all survivors benefits 
 payable pursuant to this subdivision is less than the 
 accumulated deductions plus interest payable, the surviving 
 dependent children shall receive the difference in a lump sum 
 payment. 

    If the survivor benefits provided in this subdivision 
 exceed in total the monthly average salary of the deceased basic 
 member, these benefits must be reduced to an amount equal to the 
 deceased basic member's monthly average salary. 

    Prior to payment of any survivor benefit pursuant to this 
 subdivision, in lieu of that benefit, the surviving spouse may 
 elect to receive the joint and survivor annuity provided 
 pursuant to subdivision 2, or may elect to receive a refund of 
 accumulated deductions with interest in a lump sum as provided 
 pursuant to section 354.47, subdivision 1.  If there are any 
 surviving dependent children, the surviving spouse may elect to 
 receive the refund of accumulated deductions only with the 
 consent of the district court of the district in which the 
 surviving dependent child or children reside. 

    Subd. 2.    Death while eligible designated beneficiary 
 benefit.  (a) The surviving spouse of any member or former 
 member who has credit for at least three years of allowable 
 service is entitled to joint and survivor annuity coverage in 
 the event of death of the member prior to retirement.  If the 
 surviving spouse does not elect to receive a surviving spouse 
 benefit under subdivision 1, if applicable, or does not elect to 
 receive a refund of accumulated member contributions under 
 section 354.47, subdivision 1, the surviving spouse is entitled 
 to receive, upon written application on a form prescribed by the 
 executive director, a benefit equal to the second portion of a 
 100 percent joint and survivor annuity specified under section 
 354.45, based on the age of the member and surviving spouse at 
 the time of death of the member, and computed under section 
 354.44, subdivision 2 or 6, whichever is applicable.  

    (b) If the member was under age 55 and has credit for at 
 least 30 years of allowable service on the date of death, the 
 surviving spouse may elect to receive a 100 percent joint and 
 survivor annuity based on the age of the member and surviving 
 spouse on the date of death.  The annuity is payable using the 
 full early retirement reduction under section 354.44, 
 subdivision 6, paragraph (3)(ii), to age 55 and one-half of the 
 early retirement reduction from age 55 to the age payment begins.

    (c) If the member was under age 55 and has credit for at 
 least three years of allowable service on the date of death but 
 did not yet qualify for retirement, the surviving spouse may 
 elect to receive the 100 percent joint and survivor annuity 
 based on the age of the member and the surviving spouse at the 
 time of death.  The annuity is calculated using the full early 
 retirement reduction under section 354.44, subdivision 6, to age 
 55 and one-half of the early retirement reduction from age 55 to 
 the age the annuity begins.  The surviving spouse eligible for a 
 surviving spouse benefit under paragraph (a) may apply for the 
 annuity at any time after the date on which the deceased 
 employee would have attained the required age for retirement 
 based on the employee's allowable service.  The surviving spouse 
 eligible for surviving spouse benefits under paragraph (b) or 
 (c) may apply for the annuity any time after the member's death. 
 This benefit accrues from the day following the date of the 
 member's death but may not begin to accrue more than six months 
 before the date the application is filed with the executive 
 director.  Sections 354.55, subdivision 11, and 354.60 apply to 
 a deferred annuity payable under this section.  The benefit is 
 payable for life. 

    Subd. 2a.    Survivor coverage term certain.  In lieu of 
 the 100 percent optional annuity under subdivision 2, or a 
 refund under section 354.47, subdivision 1, the surviving spouse 
 of a deceased member may elect to receive survivor coverage in a 
 term certain of five, ten, 15, or 20 years, but monthly payments 
 must not exceed 75 percent of the average high-five monthly 
 salary of the deceased member.  The monthly term certain annuity 
 must be actuarially equivalent to the 100 percent optional 
 annuity under subdivision 2. 

    If a surviving spouse elects a term certain payment and 
 dies before the expiration of the specified term certain period, 
 the commuted value of the remaining annuity payments must be 
 paid in a lump sum to the surviving spouse's estate. 

    Subd. 2b.    Dependent child survivor coverage.  If 
 there is no surviving spouse eligible for benefits under 
 subdivision 2, a dependent child or children as defined in 
 section 354.05, subdivision 8a, is eligible for monthly 
 payments.  Payments to a dependent child must be paid from the 
 date of the member's death to the date the dependent child 
 attains age 20 if the child is under age 15.  If the child is 15 
 years or older on the date of death, payment must be made for 
 five years.  The payment to a dependent child is an amount 
 actuarially equivalent to the value of a 100 percent optional 
 annuity under subdivision 2 using the age of the member and age 
 of the dependent child at the date of death in lieu of the age 
 of the member and the spouse.  If there is more than one 
 dependent child, each dependent child shall receive a 
 proportionate share of the actuarial value of the member's 
 account.  

    Subd. 3.    Payment after death of retiree.  If a 
 former member dies after retirement, the former member or a 
 designated beneficiary shall be entitled to the annuity payment 
 due for the full month during which death occurs if no optional 
 or reversionary annuity was designated by the member.  If an 
 optional or reversionary annuity has been designated by the 
 member, a death benefit shall be paid in accordance with the 
 provisions of such annuity as described in section 354.45. 

    Subd. 4.  Repealed, 1974 c 289 s 59 

    Subd. 5.    Payment to designated beneficiary.  A member 
 and the spouse of the member may make a joint specification in 
 writing on a form prescribed by the executive director that the 
 benefits provided in subdivision 2, or in section 354.47, 
 subdivision 1, must be paid only to a designated beneficiary.  
 For purposes of subdivision 2, a designated beneficiary may only 
 be either a former spouse or a biological or adopted child of 
 the member. 

    HIST: Ex1957 c 16 s 8; Ex1959 c 50 s 13,14,47; 1961 c 737 s 
 1-3; 1967 c 604 s 2; 1969 c 485 s 20; 1971 c 40 s 18; 1971 c 86 
 s 1; 1973 c 728 s 31; 1974 c 289 s 29-31; 1975 c 306 s 19; 1977 
 c 388 s 2; 1981 c 156 s 1-3; 1982 c 578 art 1 s 7,8; 1984 c 564 
 s 31,32; 1986 c 444; 1986 c 458 s 17; 1987 c 284 art 6 s 7; 1987 
 c 372 art 9 s 25; 1989 c 319 art 13 s 62; 1990 c 570 art 12 s 
 33,34; 1991 c 269 art 2 s 10; 1991 c 340 s 20; 1993 c 307 art 5 
 s 2; art 6 s 3; 1993 c 336 art 6 s 12-15; 1994 c 528 art 3 s 
 20,21; 2000 c 461 art 3 s 35 

     354.465 Modification in survivor coverage in certain 
  instances. 

    Any person who elected joint and survivor annuity coverage 
 pursuant to section 354.46, subdivision 2, prior to July 1, 
 1981, and the spouse of the person shall be entitled to modify 
 that election by making a joint specification in writing on a 
 form prescribed by the executive director that the benefits 
 provided in section 354.46, subdivision 2, or 354.47, 
 subdivision 1, whichever is applicable, shall be paid only to a 
 designated beneficiary.  Authority for any person and the spouse 
 of the person to modify the prior election shall expire on the 
 date of the retirement of the person who elected the coverage or 
 the date of death of the person who elected the coverage 
 whichever occurs first. 

    HIST: 1981 c 156 s 7; 1982 c 578 art 3 s 17 

     354.47 Payment after death. 

    Subdivision 1.    Death before retirement.  (a) If a 
 member dies before retirement and is covered under section 
 354.44, subdivision 2, and neither an optional annuity, nor a 
 reversionary annuity, nor a benefit under section 354.46, 
 subdivision 1, is payable to the survivors if the member was a 
 basic member, then the surviving spouse, or if there is no 
 surviving spouse, the designated beneficiary is entitled to an 
 amount equal to the member's accumulated deductions with 
 interest credited to the account of the member to the date of 
 death of the member.  If the designated beneficiary is a minor, 
 interest must be credited to the date the beneficiary reaches 
 legal age, or the date of receipt, whichever is earlier. 

    (b) If a member dies before retirement and is covered under 
 section 354.44, subdivision 6, and neither an optional annuity, 
 nor reversionary annuity, nor the benefit described in section 
 354.46, subdivision 1, is payable to the survivors if the member 
 was a basic member, then the surviving spouse, or if there is no 
 surviving spouse, the designated beneficiary is entitled to an 
 amount equal to the member's accumulated deductions credited to 
 the account of the member as of June 30, 1957, and from July 1, 
 1957, to the date of death of the member, the member's 
 accumulated deductions plus six percent interest compounded 
 annually. 

    (c) If the designated beneficiary under paragraph (b) is a 
 minor, any interest credited under that paragraph must be 
 credited to the date the beneficiary reaches legal age, or the 
 date of receipt, whichever is earlier. 

    Subd. 1a.    Uncashed annuity or benefit warrants.  
 Uncashed annuity or benefit warrants issued before the 
 recipient's death are payable to the designated beneficiary, and 
 if none, to the recipient's estate. 

    Subd. 2.    Benefits of $1,500 or less.  If a member or 
 a former member dies without having a surviving designated 
 beneficiary and the amount to the credit of the decedent is 
 $1,500 or less, the board of trustees may 90 days after the date 
 of death, in the absence of probate proceedings, make payment to 
 the surviving spouse of the decedent.  This payment is a bar to 
 recovery of this payment from the association by any other 
 person or persons.  Any accrued retirement annuity, disability, 
 or survivor benefit may be paid in the same manner. 

    Subd. 3.  Repealed, 1974 c 289 s 59 

    HIST: Ex1957 c 16 s 9; Ex1959 c 50 s 48; Ex1961 c 17 s 13; 
 1963 c 845 s 6; 1965 c 821 s 12; 1969 c 485 s 21; 1971 c 40 s 
 19; 1974 c 289 s 32; 1980 c 342 s 13; 1981 c 156 s 4; 1981 c 224 
 s 112; 1982 c 578 art 3 s 3; 1984 c 564 s 33; 1989 c 319 art 2 s 
 17; art 13 s 63; 1990 c 570 art 12 s 35; 1994 c 528 art 3 s 22; 
 2000 c 461 art 3 s 36 

     354.48 Permanent disability benefits. 

    Subdivision 1.    Age, service and salary requirements.  
 A member who is totally and permanently disabled and has at 
 least three years of credited allowable service at the time that 
 the total and permanent disability begins is entitled to a 
 disability benefit based on this allowable service in an amount 
 provided in subdivision 3.  If the disabled member's teaching 
 service has terminated at any time, at least two of the required 
 three years of allowable service must have been rendered after 
 last becoming a member.  Any member whose average salary is less 
 than $75 per month is not entitled to disability benefits. 

    Subd. 2.    Applications.  A person described in 
 subdivision 1, or another person authorized to act on behalf of 
 the person, may make application for a total and permanent 
 disability benefit only within the 18-month period following the 
 termination of teaching service.  This benefit accrues from the 
 day following the commencement of disability or the day 
 following the last day for which salary is paid, whichever is 
 later, but does not begin to accrue more than six months before 
 the date the application is filed with the executive director.  
 If salary is being received for either annual or sick leave 
 during the period, payments accrue from the day following the 
 last day for which this salary is paid. 

    Subd. 3.    Computation of benefits.  (1) The amount of 
 the disability benefit granted to members covered under section 
 354.44, subdivision 2, clauses (1) and (2), is an amount equal 
 to double the annuity which could be purchased by the member's 
 accumulated deductions plus interest on the amount computed as 
 though the teacher were at normal retirement age at the time the 
 benefit begins to accrue and in accordance with the law in 
 effect when the disability application is received.  Any member 
 who applies for a disability benefit after June 30, 1974, and 
 who failed to make an election pursuant to Minnesota Statutes 
 1971, section 354.145, shall have the disability benefit 
 computed under this clause or clause (2), whichever is larger. 

    The benefit granted shall be determined by the following: 

    (a) the amount of the accumulated deductions; 

    (b) interest actually earned on these accumulated 
 deductions to the date the benefit begins to accrue; 

    (c) interest for the years from the date the benefit begins 
 to accrue to the date the member attains normal retirement age 
 at the rate of three percent; 

    (d) annuity purchase rates based on an appropriate annuity 
 table of mortality established by the board as provided in 
 section 354.07, subdivision 1, and using the applicable 
 postretirement interest rate assumption specified in section 
 356.215, subdivision 4d. 

    In addition, a supplementary monthly benefit of $25 to age 
 65 or the five-year anniversary of the effective date of the 
 disability benefit, whichever is later, must be paid to basic 
 members. 

    (2) The disability benefit granted to members covered under 
 section 354.44, subdivision 6, shall be computed in the same 
 manner as the annuity provided in section 354.44, subdivision 
 6.  The disability benefit shall be the formula annuity without 
 the reduction for each month the member is under normal 
 retirement age when the benefit begins to accrue. 

    (3) For the purposes of computing a retirement annuity when 
 the member becomes eligible, the amounts paid for disability 
 benefits shall not be deducted from the individual member's 
 accumulated deductions.  If the disability benefits provided in 
 this subdivision exceed the monthly average salary of the 
 disabled member, the disability benefits shall be reduced to an 
 amount equal to the disabled member's average salary. 

    Subd. 3a.    Optional annuity election.  A disabled 
 member may elect to receive the normal disability benefit or an 
 optional annuity as provided in section 354.45, subdivision 1.  
 The election of an optional annuity shall be made prior to 
 commencement of payment of the disability benefit and shall be 
 effective and shall begin to accrue on the same date the 
 disability benefit begins to accrue.  

    Subd. 4.    Determination by the executive director.  
 The executive director shall have the member examined by at 
 least two licensed physicians selected by the medical adviser.  
 These physicians shall make written reports to the executive 
 director concerning the member's disability including medical 
 opinions as to whether or not the member is permanently and 
 totally disabled within the meaning of section 354.05, 
 subdivision 14.  The executive director shall also obtain 
 written certification from the last employer stating whether or 
 not the member was separated from service because of a 
 disability which would reasonably prevent further service to the 
 employer and as a consequence the member is not entitled to 
 compensation from the employer.  If upon the consideration of 
 the reports of the physicians and any other evidence presented 
 by the member or others interested therein, the executive 
 director finds the member totally and permanently disabled, the 
 executive director shall grant the member a disability benefit.  
 The fact that an employee is placed on leave of absence without 
 compensation because of disability shall not bar the member from 
 receiving a disability benefit. 

    Subd. 5. Repealed, 1991 c 340 s 34 

    Subd. 6.    Regular physical examinations.  At least 
 once each year during the first five years following the 
 allowance of a disability benefit to any member, and at least 
 once in every three-year period thereafter, the executive 
 director shall require the disability beneficiary to undergo a 
 medical examination by a physician or physicians engaged by the 
 executive director.  If any examination indicates that the 
 member is no longer permanently and totally disabled or that the 
 member is engaged or is able to engage in a substantial gainful 
 occupation, payments of the disability benefit by the 
 association shall be discontinued.  The payments shall 
 discontinue as soon as the member is reinstated to the payroll 
 following sick leave, but payment may not be made for more than 
 60 days after physicians engaged by the executive director find 
 that the person is no longer permanently and totally disabled. 

    Subd. 6a.    Medical adviser; duties.  The state 
 commissioner of health or a licensed physician on the staff of 
 the department of health designated by the commissioner shall be 
 the medical adviser of the executive director.  The medical 
 adviser shall designate licensed physicians who shall examine 
 applicants for disability benefits.  The medical adviser shall 
 pass upon all medical reports based on any examinations 
 performed in order to determine whether a teacher is totally and 
 permanently disabled as defined in section 354.05, subdivision 
 14.  The medical adviser shall also investigate all health and 
 medical statements and certificates by or on behalf of a teacher 
 in connection with a disability benefit, and shall report in 
 writing to the director setting forth any conclusions and 
 recommendations on all matters referred to the medical adviser.  

    Subd. 7.    Partial reemployment.  If the disabled 
 person resumes a gainful occupation in which earnings are less 
 than the person's salary at the date of disability, the amount 
 of earnings plus the disability benefit originally granted may 
 not exceed the salary at the date of disability.  If the sum of 
 earnings plus the disability benefit originally granted exceeds 
 the salary at the date of disability, the amount of excess 
 earnings must be deducted from the disability benefit payable 
 during the following calendar year.  The provisions of this 
 subdivision shall not prohibit the executive director from 
 making a determination that a member is no longer totally and 
 permanently disabled or that the member is engaged or is able to 
 engage in a substantial gainful occupation based on the results 
 of the regular physical examinations required by subdivision 6 
 or any other physical examinations required by the board.  
 Payment of the disability benefit provided in this subdivision 
 during a period of partial reemployment shall be discontinued if 
 the executive director finds that the member is no longer 
 totally and permanently disabled.  

    Subd. 8.    Refusal of examination.  If any disabled 
 person refuses to submit to a medical examination as required 
 under this section, payments by the association must be 
 discontinued and all rights of the member in any disability 
 benefit must be revoked by the executive director. 

    Subd. 9.    Return to teaching service.  Any person 
 receiving a disability benefit who is restored to active 
 teaching service shall have deductions taken for the retirement 
 fund. 

    Subd. 10.    Retirement status at normal retirement age. 
  No person shall be entitled to receive both a disability 
 benefit and a retirement annuity provided by this chapter.  The 
 disability benefit paid to a person hereunder shall terminate at 
 the end of the month in which the person attains normal 
 retirement age.  If the person is still totally and permanently 
 disabled at the beginning of the month next following the month 
 in which the person attains the normal retirement age, the 
 person shall be deemed to be on retirement status and, if the 
 person had elected an optional annuity pursuant to subdivision 
 3a, shall receive an annuity in accordance with the terms of the 
 optional annuity previously elected, or, if the person had not 
 elected an optional annuity pursuant to subdivision 3a, may 
 elect to receive a straight life retirement annuity equal to the 
 disability benefit paid prior to the date on which the person 
 attains age 65 or reaches the five-year anniversary of the 
 effective date of the disability benefit, whichever is later, or 
 elect to receive an optional annuity as provided in section 
 354.45, subdivision 1.  Election of an optional annuity must be 
 made within 90 days of age 65 or the five-year anniversary of 
 the effective date of the disability benefit, whichever is 
 later.  If an optional annuity is elected, the election shall be 
 effective on the date on which the person attains age 65 or 
 reaches the five-year anniversary of the effective date of the 
 disability benefit, whichever is later.  The optional annuity 
 shall begin to accrue on the first day of the month next 
 following the month in which the person attains age 65 or 
 reaches the five-year anniversary of the effective date of the 
 disability benefit, whichever is later.  

    HIST: Ex1957 c 16 s 10; Ex1959 c 50 s 15; 1961 c 597 s 3; 1963 
 c 845 s 7; 1969 c 485 s 22,23; 1973 c 728 s 21; 1974 c 289 s 
 33-35; 1975 c 306 s 20,21; 1975 c 359 s 23; 1981 c 68 s 25,26; 
 1981 c 160 s 8-10; 1981 c 224 s 113,114; 1982 c 578 art 3 s 
 4,19; 1984 c 564 s 34,35; 1Sp1985 c 7 s 19-21; 1986 c 444; 1987 
 c 259 s 37; 1987 c 284 art 6 s 8; 1987 c 372 art 9 s 26; 1989 c 
 319 art 2 s 18,19; art 13 s 64-66; 1990 c 570 art 12 s 36; 1991 
 c 340 s 21-25; 1993 c 307 art 5 s 3,4; 1994 c 528 art 3 s 23; 
 1995 c 141 art 3 s 20; 2000 c 461 art 3 s 37 

     354.49 Refund. 

    Subdivision 1.    Entitlement, application.  A person 
 who ceases to render teaching service in any school or 
 institution to which the provisions of this chapter apply is 
 entitled to a refund provided in subdivision 2, or a deferred 
 retirement annuity under section 354.55, subdivision 11.  An 
 application for a refund must not be made sooner than 30 days 
 after termination of teaching service if the applicant has not 
 again become a teacher.  This payment must be made within 45 
 days after the receipt of an application for a refund or upon 
 the receipt of member reporting data under section 354.52, 
 subdivision 4a, and payroll cycle data under section 354.52, 
 subdivision 4b, whichever is later. 

    Subd. 2.    Calculation.  Except as provided in section 
 354.44, subdivision 1, any person who ceases to be a member by 
 reason of termination of teaching service, shall receive a 
 refund in an amount equal to the accumulated deductions credited 
 to the account as of June 30, 1957, and after July 1, 1957, the 
 accumulated deductions with interest at the rate of six percent 
 per annum compounded annually.  For the purpose of this 
 subdivision, interest shall be computed on fiscal year end 
 balances to the first day of the month in which the refund is 
 issued. 

    Subd. 3.    Refund in certain instances.  Any person not 
 covered by the formula program who has attained normal 
 retirement age with less than the minimum service required for 
 an annuity and who ceases to be a member because of termination 
 of teaching service is entitled upon application to a refund in 
 an amount equal to the person's accumulated deductions plus 
 interest at the rates used to compute annuities under section 
 354.44, subdivision 2 in lieu of a proportionate annuity 
 pursuant to section 356.32.  If a person who has attained normal 
 retirement age is eligible for an annuity or is covered by the 
 formula program, the refund is an amount equal to the 
 accumulated deductions credited to the person's account as of 
 June 30, 1957, and after July 1, 1957, the accumulated 
 deductions plus interest at the rate of six percent compounded 
 annually.  For the purpose of this subdivision, interest must be 
 computed on fiscal year end balances to the first day of the 
 month in which the refund is issued. 

    Subd. 4.    Termination of membership.  Membership in 
 the retirement association of any person shall terminate under 
 the following conditions: (1) If a person takes a refundment 
 pursuant to this section; (2) When a person's retirement annuity 
 first begins to accrue as provided in section 354.44, 
 subdivisions 1 and 4; (3) Upon the person's ceasing to be a 
 "teacher" whether by resignation, dismissal, or termination of 
 temporary or provisional employment for the purpose of 
 determining eligibility for disability or survivorship benefits 
 as provided in sections 354.48, subdivision 1 and 354.46, 
 subdivision 1, respectively. 

    Subd. 5.    Nonrefunded money credited to fund.  If a 
 person ceases to render teaching service in any school or 
 institution to which the provisions of this chapter apply and 
 does not make application for refund within five years after 
 June 30th of the fiscal year in which the last deduction was 
 taken from salary for the retirement fund and if the accumulated 
 deductions are $500 or less, such deductions and interest shall 
 be credited to and become a part of the retirement fund.  In the 
 event such person returns to render teaching service in any 
 school or institution to which the provisions of this chapter 
 apply and the deductions previously credited to the retirement 
 fund are $5 or more, such deductions and interest to date of 
 restoration shall be restored to the person's individual 
 account.  If the deductions previously credited to the 
 retirement fund are $5 or more and such person applies for a 
 refund pursuant to this section or an annuity pursuant to 
 section 354.55, subdivision 3, such deductions credited to the 
 retirement fund shall be restored to such person's individual 
 account. 

    HIST: Ex1957 c 16 s 11; Ex1959 c 50 s 16,17; Ex1967 c 6 s 1-3; 
 1969 c 485 s 24; 1971 c 40 s 20-22; 1973 c 270 s 11; 1974 c 289 
 s 36-38; 1975 c 306 s 22; 1977 c 67 s 9; 1977 c 97 s 3; 1979 c 
 40 s 7; 1984 c 564 s 36,37; 1Sp1985 c 7 s 22; 1986 c 444; 1987 c 
 372 art 9 s 27; 1989 c 319 art 13 s 67,68; 1990 c 570 art 12 s 
 37,38; 1991 c 340 s 26; 1994 c 528 art 3 s 24; 2000 c 461 art 3 
 s 38 

     354.50 Termination of service credits. 

    Subdivision 1.    Repayment of refund.  When any member 
 accepts a refund provided in section 354.49, all existing 
 service credits to which the member was entitled before 
 accepting the refund terminate and are not restored until the 
 former member acquires not less than two years allowable service 
 credit after taking the last refund.  In that event the former 
 member may repay the refund.  If more than one refund has been 
 taken, all refunds must be repaid.  Teaching service covered 
 under the provisions of chapter 354B may be used to fulfill the 
 two-year requirement of this subdivision. 

    Subd. 2.    Interest charge.  If a member desires to 
 repay the refunds, payment shall include interest at an annual 
 rate of 8.5 percent compounded annually from date of withdrawal 
 to the date payment is made and shall be credited to the fund. 

    Subd. 3.  Repealed, 1974 c 289 s 59 

    Subd. 4.    Repayment of refund.  Any person who has 
 received a refund from the teachers retirement association and 
 who is a member of any public retirement fund referred to in 
 section 354.60 may repay such refund with interest to the 
 teachers retirement association.  Repayment of the refunds under 
 the provisions of this subdivision will be in accordance with 
 all the provisions of this section. 

    Subd. 5.    Refund of variable account accumulations.  
 A member who received a refund of variable account accumulations 
 may repay this refund to the member's formula account under this 
 section. 

    HIST: Ex1957 c 16 s 12; Ex1961 c 17 s 14; Ex1967 c 6 s 4; 1969 
 c 485 s 25; 1971 c 40 s 23,24; 1973 c 728 s 22; 1974 c 289 s 
 39-41; 1977 c 67 s 10; 1981 c 224 s 115; 1986 c 444; 1989 c 319 
 art 9 s 2; 1990 c 570 art 12 s 39; 1991 c 340 s 27; 1992 c 598 
 art 3 s 3 

     354.51 Payments to receive credit for prior service; 
  shortages in member deductions. 

    Subdivision 1.    Eligibility to make payments.  No 
 member shall be entitled to make payments in lieu of salary 
 deductions to the retirement board to receive credit for any 
 period of service prior to that date for which employee 
 contributions were not deducted from the member's salary, except 
 as provided in subdivision 4, or section 354.50 or 354.53.  

    Subd. 2.  Repealed, 1974 c 289 s 59 

    Subd. 3.  Repealed, 1974 c 289 s 59 

    Subd. 4.    Other state or school teaching service; 
 purchase of credit.  Any teacher who has rendered teaching 
 service prior to June 30, 1953, in another state, or in a state 
 public school which is not an employing unit with employees for 
 whom retirement coverage is provided pursuant to this chapter, 
 or for the University of Minnesota, who was a member of the fund 
 prior to or after the uncredited teaching service, who is not 
 entitled to any benefits from any other retirement system based 
 on the uncredited teaching service, who has credit for at least 
 15 years of service as a member of the retirement fund with at 
 least five years of service occurring subsequent to the period 
 of uncredited teaching service, who became a member of the 
 retirement fund prior to June 30, 1957, and who has not accepted 
 a refund of accumulated member contributions or deductions and 
 resumed teaching service covered by the retirement fund after 
 July 1, 1957, shall be entitled to obtain service credit for the 
 period of uncredited teaching service.  To obtain service 
 credit, a teacher shall make a payment equal to six percent of 
 the average annual salary of the teacher for the five year 
 period occurring immediately prior to the completion of the 
 minimum service requirement or July 1, 1951, whichever is later, 
 multiplied for the number of years of the period of uncredited 
 teaching service, but not to exceed $175 annually for any period 
 of uncredited teaching service occurring prior to July 1, 1953, 
 or $216 annually for any period of uncredited teaching service 
 occurring subsequent to June 30, 1953.  The payment made by the 
 teacher shall be accompanied by a matching payment representing 
 the employer contribution.  This matching employer contribution 
 payment is to be made by the agency which formerly employed the 
 teacher, except that, at its discretion, the payment may be made 
 by the current employer of the teacher.  The payments shall 
 include interest at an annual rate of 8.5 percent compounded 
 annually from the end of the year of uncredited service to the 
 date on which payment is first made.  Payment shall be made in a 
 single payment unless the executive director authorizes 
 installment payments.  If the payment made is less than the full 
 required payment, including interest, the formula service credit 
 granted shall be adjusted in accordance with section 354.05, 
 subdivision 25, clause (3).  Any school district or institution 
 which employs a teacher who makes a payment pursuant to this 
 subdivision is authorized to make any required payments 
 representing employer contributions and interest and the 
 required amounts are hereby appropriated from any funds 
 available to the school district or institution.  Any payments 
 made pursuant to this subdivision shall be considered 
 accumulations made after July 1, 1957 for purposes of computing 
 an annuity pursuant to section 354.44, subdivision 2.  All 
 payments shall be made to the executive director prior to July 
 1, 1973 or within one year after the completion of the minimum 
 state teaching service requirements whichever is later. 

    Subd. 5.    Payment of shortages.  In the event that 
 full required member contributions are not deducted from the 
 salary of a teacher, payment shall be made as follows:  

    (a) Payment of shortages in member deductions on salary 
 earned after June 30, 1957, and prior to July 1, 1981, may be 
 made any time prior to retirement.  Payment shall include 
 interest at an annual rate of 8.5 percent compounded annually 
 from the end of the fiscal year in which the shortage occurred 
 to the end of the month in which payment is made and the 
 interest shall be credited to the fund.  If payment of a 
 shortage in deductions is not made, the formula service credit 
 of the member shall be prorated pursuant to section 354.05, 
 subdivision 25, clause (3). 

    (b) Payment of shortages in member deductions on salary 
 earned after June 30, 1981, shall be the sole obligation of the 
 employing unit and shall be payable by the employing unit upon 
 notification by the executive director of the shortage with 
 interest at an annual rate of 8.5 percent compounded annually 
 from the end of the fiscal year in which the shortage occurred 
 to the end of the month in which payment is made and the 
 interest shall be credited to the fund.  Effective July 1, 1986, 
 the employing unit shall also pay the employer contributions as 
 specified in section 354.42, subdivisions 3 and 5 for such 
 shortages.  If the shortage payment is not paid by the employing 
 unit within 60 days of notification, the executive director 
 shall certify the amount of the shortage payment to the 
 applicable county auditor, who shall spread a levy in the amount 
 of the shortage payment over the taxable property of the taxing 
 district of the employing unit if the employing unit is 
 supported by property taxes, or to the commissioner of finance, 
 who shall deduct the amount from any state aid or appropriation 
 amount applicable to the employing unit if the employing unit is 
 not supported by property taxes.  

    (c) Payment may not be made for shortages in member 
 deductions on salary earned prior to July 1, 1957. 

    HIST: Ex1957 c 16 s 13; Ex1959 c 50 s 18,19; 1969 c 485 s 26; 
 1971 c 40 s 25,26; 1974 c 289 s 42; 1981 c 160 s 11; 1981 c 224 
 s 116-118; 1982 c 578 art 3 s 19; 1Sp1985 c 12 art 11 s 7; 1986 
 c 444; 1987 c 284 art 6 s 9; 1992 c 598 art 3 s 4,5 

  354.511 Repealed, 1974 c 289 s 59 

     354.52 Reports. 

    Subdivision 1.  Repealed, 1974 c 289 s 59 

    Subd. 2. Repealed, 2000 c 461 art 3 s 47 

    Subd. 2a.    Annual postretirement income reports.  On 
 or before each February 15, a representative authorized by an 
 employing unit must report to the executive director the amount 
 of income earned during the previous calendar year by each 
 retiree for teaching service performed after retirement.  This 
 annual report must be based on reemployment income as defined in 
 section 354.44, subdivision 5, and it must be made on a form 
 provided by the executive director.  Signing the report has the 
 force and effect of an oath as to the correctness of the amount 
 of postretirement reemployment income earned.  

    Subd. 3.    Deduction requirements.  Every pay period, 
 each employer shall deduct and withhold from the salary of every 
 teacher who is a member of the fund the amount required under 
 section 354.42.  At the time of each deduction, the employer 
 shall also furnish to each teacher a statement showing the 
 amount of the deduction.  

    Subd. 4.    Reporting and remittance requirements.  An 
 employer shall remit all amounts due to the association and 
 furnish a statement indicating the amount due and transmitted 
 with any other information required by the executive director.  
 If an amount due is not received by the association within 14 
 calendar days of the payroll warrant, the amount accrues 
 interest at an annual rate of 8.5 percent compounded annually 
 from the due date until the amount is received by the 
 association.  All amounts due and other employer obligations not 
 remitted within 60 days of notification by the association must 
 be certified to the commissioner of finance who shall deduct the 
 amount from any state aid or appropriation amount applicable to 
 the employing unit. 

    Subd. 4a.    Member data reporting requirements.  (a) An 
 employing unit must initially provide the member data specified 
 in paragraph (b) or any of that data not previously provided to 
 the association for payroll warrants dated after June 30, 1995, 
 in a format prescribed by the executive director.  Data changes 
 and the dates of those changes under this subdivision must be 
 reported to the association on an ongoing basis within 14 
 calendar days after the date of the end of the payroll cycle in 
 which they occur.  These data changes must be reported with the 
 payroll cycle data under subdivision 4b. 

    (b) Data on the member includes:  

    (1) legal name, address, date of birth, association member 
 number, employer-assigned employee number, and social security 
 number; 

    (2) association status, including, but not limited to, 
 basic, coordinated, exempt annuitant, exempt technical college 
 teacher, and exempt independent contractor or consultant; 

    (3) employment status, including, but not limited to, full 
 time, part time, intermittent, substitute, or part-time 
 mobility; 

    (4) employment position, including, but not limited to, 
 teacher, superintendent, principal, administrator, or other; 

    (5) employment activity, including, but not limited to, 
 hire, termination, resumption of employment, disability, or 
 death; 

    (6) leaves of absence; 

    (7) county district number assigned by the association for 
 the employing unit; 

    (8) data center identification number, if applicable; and 

    (9) other information as may be required by the executive 
 director. 

    Subd. 4b.    Payroll cycle reporting requirements.  An 
 employing unit shall provide the following data to the 
 association for payroll warrants on an ongoing basis within 14 
 calendar days after the date of the payroll warrant in a format 
 prescribed by the executive director:  

    (1) association member number; 

    (2) employer-assigned employee number; 

    (3) social security number; 

    (4) amount of each salary deduction; 

    (5) amount of salary as defined in section 354.05, 
 subdivision 35, from which each deduction was made; 

    (6) reason for payment; 

    (7) service credit; 

    (8) the beginning and ending dates of the payroll period 
 covered and the date of actual payment; 

    (9) fiscal year of salary earnings; 

    (10) total remittance amount including employee, employer, 
 and additional employer contributions; and 

    (11) other information as may be required by the executive 
 director. 

    Subd. 5.    Liability for moneys.  The state treasurer, 
 the several county treasurers, and the treasurers of the various 
 school districts and institutions to which the provisions of 
 this chapter apply shall be officially liable for the receipt, 
 handling, and disbursement of all moneys coming into their hands 
 belonging to the fund and the sureties on the official bonds of 
 each of these treasurers shall be liable for such moneys the 
 same as for all other moneys belonging to the school funds of 
 this state.  

    Subd. 6.    Noncompliance consequences.  An employing 
 unit that does not comply with the reporting requirements under 
 this section shall pay a fine of $5 per calendar day until the 
 association receives the required data. 

    HIST: Ex1957 c 16 s 16; 1963 c 584 s 1; 1965 c 447 s 1,2; 1969 
 c 485 s 27; 1974 c 289 s 43-45; 1981 c 160 s 12; 1981 c 224 s 
 119-121; 1983 c 148 s 4; 1986 c 444; 1990 c 570 art 12 s 40; 
 1991 c 340 s 28,29; 1992 c 598 art 3 s 6; 1994 c 528 art 3 s 
 25-30; 1995 c 141 art 3 s 11; 2000 c 461 art 3 s 39-42; 1Sp2001 
 c 10 art 3 s 18 

     354.53 Credit for military service leave of absence. 

    Subdivision 1.    Employee and employer contributions.  
 Any employee given a leave of absence to enter military service 
 and who returns to teaching service upon discharge from military 
 service as provided in section 192.262, may obtain credit for 
 the period of military service but shall not receive credit for 
 any voluntary extension of military service at the instance of 
 the member beyond the initial period of enlistment, induction or 
 call to active duty.  The member shall obtain credit by paying 
 into the fund an employee contribution based upon the 
 contribution rates in effect at the time that the military 
 service was performed multiplied by the annual salary rate of 
 the member for the year beginning with the date of return from 
 military service and the number of years of military service 
 together with interest thereon at an annual rate of 8.5 percent 
 compounded annually from the time the military service was 
 rendered to the first date of payment.  The employer 
 contribution and additional contribution provided in section 
 354.42 must be paid by the employing unit at the rates in effect 
 at the time that the military service was performed, applied to 
 the annual salary rate of the member for the year beginning with 
 the date of return from military service, in the manner provided 
 in section 354.52, subdivision 4. 

    Subd. 2.    Calculation of credit.  All payments into 
 the fund pursuant to this section shall be considered 
 accumulations after July 1, 1957 for the purpose of computing 
 any annuity in accordance with section 354.44, subdivision 2.  
 If the contributions and interest thereon provided in this 
 section are not paid in full, the member's formula service 
 credit shall be calculated by multiplying the number of years of 
 military service by the ratio obtained by the total amount paid 
 and the maximum amount payable provided herein. 

    Subd. 3.    Payments.  Payments pursuant to this section 
 shall be made within five years from the date of discharge. 

    HIST: Ex1957 c 16 s 17; Ex1959 c 50 s 20; 1965 c 821 s 13; 
 1967 c 834 s 7; 1971 c 40 s 27; 1973 c 270 s 12; 1974 c 289 s 
 46; 1975 c 306 s 23; 1977 c 67 s 11; 1977 c 97 s 4; 1981 c 224 s 
 122,123; 1Sp1985 c 12 art 11 s 8; 1992 c 598 art 3 s 7; 1996 c 
 305 art 1 s 81; 1997 c 233 art 1 s 53; 1999 c 222 art 16 s 17 

  354.531 Repealed, 1989 c 319 art 2 s 28 

  354.532 Repealed, 1989 c 319 art 2 s 28 

     354.533 Prior or uncredited military service credit 
  purchase. 

    Subdivision 1.    Service credit purchase authorized.  A 
 teacher who has at least three years of allowable service credit 
 with the teachers retirement association and who performed 
 service in the United States armed forces before becoming a 
 teacher as defined in section 354.05, subdivision 2, or who 
 failed to obtain service credit for a military leave of absence 
 under the provisions of section 354.53, is entitled to purchase 
 allowable and formula service credit for the initial period of 
 enlistment, induction, or call to active duty without any 
 voluntary extension by making payment under section 356.55 
 provided the teacher is not entitled to receive a current or 
 deferred retirement annuity from a United States armed forces 
 pension plan and has not purchased service credit from any other 
 defined benefit public employee pension plan for the same period 
 of service. 

    Subd. 2.    Application and documentation.  A teacher 
 who desires to purchase service credit under subdivision 1 must 
 apply with the executive director to make the purchase.  The 
 application must include all necessary documentation of the 
 teacher's qualifications to make the purchase, signed written 
 permission to allow the executive director to request and 
 receive necessary verification of applicable facts and 
 eligibility requirements, and any other relevant information 
 that the executive director may require. 

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit for the purchase period must be granted by the 
 teachers retirement association to the purchasing teacher upon 
 receipt of the purchase payment amount.  Payment must be made 
 before the teacher's effective date of retirement.  

    HIST: 1999 c 222 art 16 s 1 

*   NOTE:  This section, as added by Laws 1999, chapter 222, 
*article 16, section 1, is repealed effective May 16, 2002.  Laws 
*1999, chapter 222, article 16, section 16.

     354.534 Prior out-of-state teaching service credit 
  purchase. 

    Subdivision 1.    Service credit purchase authorized.  
 (a) A teacher who has at least three years of allowable service 
 credit with the teachers retirement association is entitled to 
 purchase up to ten years of allowable and formula service credit 
 for out-of-state teaching service by making payment under 
 section 356.55, provided the out-of-state teaching service was 
 performed for an educational institution established and 
 operated by another governmental jurisdiction and the teacher is 
 not entitled to receive a current or deferred age and service 
 retirement annuity or disability benefit and has not purchased 
 service credit from another defined benefit public employee 
 pension plan for that out-of-state teaching service. 

    (b) For purposes of paragraph (a), "another governmental 
 jurisdiction" means:  

    (1) another state of the United States; 

    (2) a governmental subdivision of another state of the 
 United States; 

    (3) the federal government; 

    (4) a federally recognized American Indian tribe; or 

    (5) a country other than the United States. 

    Subd. 2.    Application and documentation.  A teacher 
 who desires to purchase service credit under subdivision 1 must 
 apply with the executive director to make the purchase.  The 
 application must include all necessary documentation of the 
 teacher's qualifications to make the purchase, signed written 
 permission to allow the executive director to request and 
 receive necessary verification of applicable facts and 
 eligibility requirements, and any other relevant information 
 that the executive director may require.  Payment must be made 
 before the teacher's effective date of retirement.  

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit for the purchase period must be granted by the 
 teachers retirement association to the purchasing teacher on 
 receipt of the purchase payment amount. 

    HIST: 1999 c 222 art 16 s 2; 1Sp2001 c 10 art 6 s 5 

*   NOTE:  This section, as added by Laws 1999, chapter 222, 
*article 16, section 2, is repealed effective May 16, 2002.  Laws 
*1999, chapter 222, article 16, section 16.

     354.535 Maternity leave of absence and break in service 
  purchases. 

    Subdivision 1.    Service credit purchase authorized.  A 
 teacher who has at least three years of allowable service credit 
 with the teachers retirement association and who was granted a 
 maternity leave of absence by a school district or other 
 employing unit covered by the teachers retirement association 
 for which the teacher did not previously receive allowable and 
 formula service credit, or who had a maternity break in teaching 
 service for which the teacher did not receive or purchase 
 service credit from another defined benefit public employee 
 pension plan is entitled to purchase the actual period of the 
 leave or of the break in teaching service, up to five years, of 
 allowable and formula service credit for applicable maternity 
 leaves of absence or applicable maternity break in teaching 
 service periods by making payment under section 356.55. 

    Subd. 2.    Application and documentation.  A teacher 
 who desires to purchase service credit under subdivision 1 must 
 apply with the executive director to make the purchase.  The 
 application must include all necessary documentation of the 
 teacher's qualifications to make the purchase, signed written 
 permission to allow the executive director to request and 
 receive necessary verification of applicable facts and 
 eligibility requirements, and any other relevant information 
 that the executive director may require.  Payment must be made 
 before the teacher's effective date of retirement.  

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit for the purchase period must be granted by the 
 teachers retirement association to the purchasing teacher on 
 receipt of the purchase payment amount. 

    HIST: 1999 c 222 art 16 s 3 

*   NOTE:  This section, as added by Laws 1999, chapter 222, 
*article 16, section 3, is repealed effective May 16, 2002.  Laws 
*1999, chapter 222, article 16, section 16.

     354.536 Private or parochial teaching service credit 
  purchase. 

    Subdivision 1.    Service credit purchase authorized.  A 
 teacher who has at least three years of allowable service credit 
 with the teachers retirement association is entitled to purchase 
 up to ten years of allowable and formula service credit for 
 developmental achievement center, nonprofit community-based 
 corporation, private, or parochial school teaching service by 
 making payment under section 356.55, provided that the teacher 
 is not entitled to receive a current or deferred age and service 
 retirement annuity or disability benefit from the applicable 
 employer-sponsored pension plan and has not purchased service 
 credit from the applicable defined benefit employer-sponsored 
 pension plan for that service. 

    Subd. 2.    Application and documentation.  A teacher 
 who desires to purchase service credit under subdivision 1 must 
 apply with the executive director to make the purchase.  The 
 application must include all necessary documentation of the 
 teacher's qualifications to make the purchase, signed written 
 permission to allow the executive director to request and 
 receive necessary verification of applicable facts and 
 eligibility requirements, and any other relevant information 
 that the executive director may require.  Payment must be made 
 before the teacher's effective date of retirement.  

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit for the purchase period must be granted by the 
 teachers retirement association to the purchasing teacher on 
 receipt of the purchase payment amount. 

    HIST: 1999 c 222 art 16 s 4; 2000 c 461 art 11 s 3; 1Sp2001 c 
 10 art 6 s 6 

*   NOTE:  This section, as added by Laws 1999, chapter 222, 
*article 16, section 4, is repealed effective May 16, 2002.  Laws 
*1999, chapter 222, article 16, section 16.

     354.537 Peace Corps or VISTA service credit purchase. 

    Subdivision 1.    Service credit purchase authorized.  A 
 teacher who has at least three years of allowable service credit 
 with the teachers retirement association is entitled to purchase 
 up to ten years of allowable and formula service credit for 
 service rendered in the federal Peace Corps program or in the 
 federal Volunteers in Service to America program by making 
 payment under section 356.55, provided that the teacher has not 
 purchased service credit from any defined benefit pension plan 
 for that service. 

    Subd. 2.    Application and documentation.  A teacher 
 who desires to purchase service credit under subdivision 1 must 
 apply with the executive director to make the purchase.  The 
 application must include all necessary documentation of the 
 teacher's qualifications to make the purchase, signed written 
 permission to allow the executive director to request and 
 receive necessary verification of applicable facts and 
 eligibility requirements, and any other relevant information 
 that the executive director may require.  Payment must be made 
 before the teacher's effective date of retirement.  

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit for the purchase period must be granted by the 
 teachers retirement association to the purchasing teacher on 
 receipt of the purchase payment amount. 

    HIST: 1999 c 222 art 16 s 5 

*   NOTE:  This section, as added by Laws 1999, chapter 222, 
*article 16, section 5, is repealed effective May 16, 2002.  Laws 
*1999, chapter 222, article 16, section 16.

     354.538 Charter school teaching service credit purchase. 

    Subdivision 1.    Service credit purchase authorized.  A 
 teacher who has at least three years of allowable service credit 
 with the teachers retirement association is entitled to purchase 
 up to ten years of allowable and formula service credit for 
 charter school teaching service by making payment under section 
 356.55, provided that the teacher is not entitled to receive a 
 current or deferred age and service retirement annuity or 
 disability benefit from the applicable employer-sponsored 
 pension plan and has not purchased service credit from the 
 applicable defined benefit employer-sponsored pension plan for 
 that service. 

    Subd. 2.    Application and documentation.  A teacher 
 who desires to purchase service credit under subdivision 1 must 
 apply with the executive director to make the purchase.  The 
 application must include all necessary documentation of the 
 teacher's qualifications to make the purchase, signed written 
 permission to allow the executive director to request and 
 receive necessary verification of applicable facts and 
 eligibility requirements, and any other relevant information 
 that the executive director may require.  Payment must be made 
 before the teacher's effective date of retirement. 

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit for the purchase period must be granted by the 
 teachers retirement association to the purchasing teacher on 
 receipt of the purchase payment amount. 

    HIST: 1999 c 222 art 16 s 6 

*   NOTE:  This section, as added by Laws 1999, chapter 222, 
*article 16, section 6, is repealed effective May 16, 2002.  Laws 
*1999, chapter 222, article 16, section 16.

     354.539 Use of college supplemental retirement funds to 
  purchase service credit. 

    (a) Unless prohibited by or subject to a penalty under 
 federal law, a teacher who is a participant in the college 
 supplemental retirement plan established under chapter 354C may 
 utilize the teacher's supplemental plan account to purchase 
 service credit under sections 354.53, 354.533, 354.534, 354.535, 
 354.536, 354.537, 354.538, 354.541, and 354.542 or to repay a 
 refund under section 354.50. 

    (b) At the request of a member, if determined by the 
 executive director to be eligible to purchase service credit, 
 the executive director shall notify the board of the Minnesota 
 state colleges and universities system of the cost of the 
 purchase and shall request the transfer of funds from the 
 member's college supplemental retirement account to the teachers 
 retirement association.  Upon receipt of the full prior service 
 credit purchase payment amount, the teachers retirement 
 association shall grant the requested allowable and formula 
 service credit. 

    HIST: 2000 c 461 art 12 s 5; 1Sp2001 c 10 art 6 s 7 

*   NOTE:  This section, as added by Laws 2000, chapter 461, 
*article 12, section 5, expires May 16, 2002.  Laws 2000, chapter 
*461, article 2, section 20, paragraph (c).

  354.54 Repealed, 1974 c 289 s 59 

     354.541 Prior University of Minnesota teaching service 
  credit purchase. 

    Subdivision 1.    Service credit purchase authorized.  A 
 teacher who has at least three years of allowable service credit 
 with the teachers retirement association is entitled to purchase 
 up to ten years of allowable and formula service credit for 
 University of Minnesota teaching service by making payment under 
 section 356.55, provided the teacher is not entitled to receive 
 a current or deferred age and service retirement annuity or 
 disability benefit and has not purchased service credit from 
 another defined benefit public employee pension plan for that 
 University of Minnesota teaching service.  

    Subd. 2.    Application and documentation.  A teacher 
 who desires to purchase service credit under subdivision 1 must 
 apply with the executive director to make the purchase.  The 
 application must include all necessary documentation of the 
 teacher's qualifications to make the purchase, signed written 
 permission to allow the executive director to request and 
 receive necessary verification of applicable facts and 
 eligibility requirements, and any other relevant information 
 that the executive director may require.  Payment must be made 
 before the teacher's effective date of retirement. 

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit for the purchase period must be granted by the 
 teachers retirement association to the purchasing teacher on 
 receipt of the purchase payment amount. 

    HIST: 1Sp2001 c 10 art 6 s 8 

     354.542 Prior teaching service credit purchase by IRAP 
  members with deferred teachers retirement association credit. 

    A person in covered employment under section 354B.20, 
 subdivision 4, who is a participant in the individual retirement 
 account plan authorized by chapter 354B and who has at least 
 three years of allowable service credit with the teachers 
 retirement association may purchase service credit as provided 
 in sections 354.533 to 354.538 and 354.541. 

    HIST: 1Sp2001 c 10 art 6 s 9 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 10, article 6, section 9, expires May 16, 2002.  
*Laws 2001, First Special Session chapter 10, article 6, section 
*21.

     354.55 Options to certain members. 

    Subdivision 1.  Repealed, 1974 c 289 s 59 

    Subd. 2.  Any election made by a teacher pursuant to 
 Minnesota Statutes 1953, section 135.10, subdivision 3, prior to 
 July 1, 1957, shall continue in effect at such amount and 
 subject to such conditions as the law then in effect permitted. 

    Subd. 3.  Any person who ceased teaching service prior to 
 July 1, 1957, who left accumulated deductions in the fund for 
 the purpose of receiving when eligible, a retirement annuity 
 shall have the annuity computed in accordance with the law in 
 effect at the date the person ceased teaching service, except 
 that if such person has ten or more years of allowable service 
 credit, the retirement annuity shall be determined under the law 
 in effect on June 30, 1969. 

    Subd. 4.  Repealed, 1974 c 289 s 59 

    Subd. 5.  Repealed, 1989 c 319 art 2 s 28 

    Subd. 6.  Each annuitant who as a member of the association 
 commenced drawing the annuity between August 1, 1931 and June 
 30, 1965, but not including the annuitant's beneficiaries, shall 
 be paid ten percent of the present monthly annuity if such 
 annuitant retired pursuant to Minnesota Statutes 1965, sections 
 354.33 and 354.34 and 15 percent of the present monthly annuity 
 if such annuitant retired pursuant to Minnesota Statutes 1953, 
 section 135.10 and Minnesota Statutes 1965, sections 354.44 and 
 354.45, in addition to the amounts such annuitant is otherwise 
 entitled to receive under the provisions of Minnesota Statutes 
 1965, chapter 354. 

    Subd. 7.  Repealed, 1974 c 289 s 59 

    Subd. 8.  Repealed, 1974 c 289 s 59 

    Subd. 9.  Repealed, 1974 c 289 s 59 

    Subd. 10.  Any benefit to which any person may be entitled 
 under this chapter may be reduced in amount upon application of 
 the person entitled thereto to the board of trustees, provided 
 that such person shall first relinquish in writing all claim to 
 that part of the full benefit which is the difference between 
 the benefit which the person would be otherwise entitled to 
 receive and the benefit which the person will receive.  The 
 reduced benefit shall be payment in full of all amounts due 
 under this chapter for the month for which the payment is made 
 and acceptance of the reduced benefit releases the retirement 
 association from all obligation to pay to such person the 
 difference between the amount of the reduced benefit and the 
 full amount of the benefit which such person would otherwise 
 have received.  After July 1, 1971, any benefit reduced under 
 the provisions of this subdivision may not again be restored. 

    Subd. 11.    Deferred annuity; augmentation.  (a) Any 
 person covered under section 354.44, subdivision 6, who ceases 
 to render teaching service, may leave the person's accumulated 
 deductions in the fund for the purpose of receiving a deferred 
 annuity at retirement.  Eligibility for an annuity under this 
 subdivision is governed pursuant to section 354.44, subdivision 
 1, or 354.60. 

    (b) The amount of the deferred retirement annuity is 
 determined by section 354.44, subdivision 6, and augmented as 
 provided in this subdivision.  The required reserves related to 
 that portion of the annuity which had accrued when the member 
 ceased to render teaching service must be augmented by interest 
 compounded annually from the first day of the month following 
 the month during which the member ceased to render teaching 
 service to the effective date of retirement.  There shall be no 
 augmentation if this period is less than three months or if this 
 period commences prior to July 1, 1971.  The rates of interest 
 used for this purpose must be five percent compounded annually 
 commencing July 1, 1971, until January 1, 1981, and three 
 percent compounded annually thereafter until January 1 of the 
 year following the year in which the former member attains age 
 55.  From that date to the effective date of retirement, the 
 rate is five percent compounded annually.  If a person has more 
 than one period of uninterrupted service, a separate average 
 salary determined under section 354.44, subdivision 6, must be 
 used for each period and the required reserves related to each 
 period must be augmented by interest pursuant to this 
 subdivision.  The sum of the augmented required reserves so 
 determined shall be the basis for purchasing the deferred 
 annuity.  If a person repays a refund, the service restored by 
 the repayment must be considered as continuous with the next 
 period of service for which the person has credit with this 
 fund.  If a person does not render teaching service in any one 
 fiscal year or more consecutive fiscal years and then resumes 
 teaching service, the formula percentages used from the date of 
 the resumption of teaching service must be those applicable to 
 new members.  The mortality table and interest assumption used 
 to compute the annuity must be the applicable mortality table 
 established by the board under section 354.07, subdivision 1, 
 and the interest rate assumption under section 356.215 in effect 
 when the member retires.  A period of uninterrupted service for 
 the purposes of this subdivision means a period of covered 
 teaching service during which the member has not been separated 
 from active service for more than one fiscal year. 

    (c) In no case shall the annuity payable under this 
 subdivision be less than the amount of annuity payable pursuant 
 to section 354.44, subdivision 6. 

    (d) The requirements and provisions for retirement before 
 normal retirement age contained in section 354.44, subdivision 
 6, clause (3) or (5), shall also apply to an employee fulfilling 
 the requirements with a combination of service as provided in 
 section 354.60. 

    (e) The augmentation provided by this subdivision applies 
 to the benefit provided in section 354.46, subdivision 2. 

    (f) The augmentation provided by this subdivision shall not 
 apply to any period in which a person is on an approved leave of 
 absence from an employer unit covered by the provisions of this 
 chapter.  

    (g) The retirement annuity or disability benefit of, or the 
 survivor benefit payable on behalf of, a former teacher who 
 terminated service before July 1, 1997, which is not first 
 payable until after June 30, 1997, must be increased on an 
 actuarial equivalent basis to reflect the change in the 
 postretirement interest rate actuarial assumption under section 
 356.215, subdivision 4d, from five percent to six percent under 
 a calculation procedure and tables adopted by the board as 
 recommended by an approved actuary and approved by the actuary 
 retained by the legislative commission on pensions and 
 retirement. 

    Subd. 12.    Pre-1973 law retirements.  Any member who 
 retires under the law in effect prior to July 1, 1973, shall 
 have that portion of the member's annuity based on accumulations 
 after June 30, 1957, under Minnesota Statutes 1971, section 
 354.44, subdivision 2, and all accumulations under Minnesota 
 Statutes 1971, section 354.33, subdivision 1, calculated using 
 the mortality table established by the board under section 
 354.07, subdivision 1, and the interest rate assumption 
 specified in section 356.215 used at the time of that retirement 
 to transfer the required reserves to the Minnesota 
 postretirement investment fund. 

    Subd. 13.    Pre-1969 law retirements.  Any person who 
 ceased teaching service prior to July 1, 1968, who has ten years 
 or more of allowable service and left accumulated deductions in 
 the fund for the purpose of receiving when eligible a retirement 
 annuity, and retires shall have the annuity computed in 
 accordance with the law in effect on June 30, 1969, except that 
 the portion of the annuity based on accumulations after June 30, 
 1957, under Minnesota Statutes 1967, section 354.44, subdivision 
 2, and accumulations under Minnesota Statutes 1967, section 
 354.33, subdivision 1, shall be calculated using the mortality 
 table established by the board under section 354.07, subdivision 
 1, and the interest rate assumption specified in section 
 356.215, to transfer the required reserves to the Minnesota 
 postretirement investment fund.  

    Subd. 14.  All annuities payable from the Minnesota 
 postretirement investment fund which are in effect on June 30, 
 1973 shall be increased in the same ratio that the actuarially 
 computed reserve for such annuities determined by using an 
 interest assumption of 3-1/2 percent bears to the actuarially 
 computed reserve for such annuities determined by using an 
 interest assumption of five percent.  The reserves upon which 
 such increases shall be based shall be the actuarially 
 determined reserves for all Minnesota postretirement investment 
 fund annuities which were in effect on June 30, 1972, in 
 accordance with the mortality assumptions then in effect and at 
 interest assumptions of 3-1/2 percent and five percent.  Such 
 ratio of increase computed to the last full 1/100 of one percent 
 shall be applied to all annuities payable from the Minnesota 
 postretirement investment fund which are in effect on June 30, 
 1973.  Increases in annuity payments pursuant to this 
 subdivision will be made automatically unless written notice is 
 filed by the annuitant with the teachers retirement association 
 board requesting that the increase shall not be made. 

    Subd. 15.  Notwithstanding the maximum benefit provisions 
 of section 354.46, subdivision 1, all benefits and annuities 
 payable pursuant to sections 354.48; 354.46, subdivision 1 and 
 Laws 1915, chapter 199, as amended, which are in effect on June 
 30, 1973 shall be increased 25 percent.  Such increase shall 
 begin to accrue January 1, 1974.  Increases in benefit and 
 annuity payments pursuant to this subdivision will be made 
 automatically unless written notice is filed by the annuitant 
 with the teachers retirement association board requesting that 
 the increase shall not be made. 

    Subd. 16.  Any member who ceased to render teaching service 
 during the 1972-1973 fiscal year whose application for 
 retirement becomes effective after June 30, 1973, shall be 
 eligible to receive the new retirement benefits provided by the 
 law in effect on July 1, 1973. 

    Subd. 17.  Teachers who retire after June 30, 1973 and who 
 failed to make an election pursuant to Minnesota Statutes 1971, 
 section 354.145, subdivision 1, clause (1) and subdivision 2, 
 clause (1) shall have their annuity at retirement computed under 
 section 354.44, subdivision 2 or 6, whichever is larger. 

    Subd. 18.  (1) Teachers who retired after June 30, 1972 and 
 before July 1, 1973 who failed to make an election pursuant to 
 Minnesota Statutes 1971, section 354.145, subdivision 1, clause 
 (1) shall have their annuity recomputed under the law in effect 
 on June 30, 1973 under the provisions of either Minnesota 
 Statutes 1971, section 354.33, subdivision 1 or 7, whichever is 
 larger. 

    (2) Teachers who retired after June 30, 1972 and before 
 July 1, 1973 and who failed to make an election pursuant to 
 Minnesota Statutes 1971, section 354.145, subdivision 2, clause 
 (1) shall have their annuity recomputed under the law in effect 
 on June 30, 1973 under the provisions of either section 354.44, 
 subdivision 2 or 6, whichever is larger. 

    Subd. 19.  Any member or retired former member who is 
 covered by the formula in effect after June 30, 1973, and who 
 made payments to the fund pursuant to Minnesota Statutes 1965, 
 section 354.511, shall upon request receive a refund of such 
 payments. 

    HIST: Ex1957 c 16 s 20; Ex1959 c 50 s 21,22; 1965 c 644 s 1; 
 1967 c 654 s 1; 1967 c 715 s 1; 1969 c 399 s 1; 1969 c 485 s 28; 
 1971 c 40 s 28-31; 1971 c 87 s 1; 1971 c 88 s 1; 1973 c 270 s 
 13; 1973 c 728 s 23-25,27; 1974 c 289 s 47-53; 1975 c 306 s 
 24-27; 1977 c 97 s 5-7; 1978 c 796 s 43; 1980 c 607 art 14 s 45 
 subd 2; 1980 c 614 s 142; 1981 c 224 s 124; 1Sp1985 c 7 s 23; 
 1986 c 444; 1986 c 458 s 18; 1987 c 259 s 40-42; 1987 c 284 art 
 6 s 10; 1989 c 319 art 13 s 69; 1990 c 570 art 12 s 41,42; 1995 
 c 141 art 3 s 20; 1996 c 305 art 1 s 82,83; 1997 c 233 art 1 s 
 54 

  354.56 Repealed, 1989 c 319 art 2 s 28 

  354.57 Repealed, 1994 c 528 art 3 s 34 

     354.58 Supplemental retirement annuity. 

    A supplemental retirement annuity shall be paid only to a 
 member who retires pursuant to section 354.44, subdivision 2, 
 and the applicable optional retirement annuities as established 
 in sections 354.35 and 354.45.  In establishing this 
 supplemental retirement annuity, the board shall ascertain the 
 member's accumulated deduction including interest for the period 
 of allowable service prior to July 1, 1957, and the member shall 
 receive a retirement credit of 100 percent of this amount.  The 
 retirement credit so established shall be the basis for 
 purchasing a supplemental retirement annuity using an annuity 
 purchase rate based on the applicable annuity table of mortality 
 with an interest assumption as provided in section 354.07, 
 subdivision 1.  This supplemental retirement annuity shall be 
 doubled. 

    HIST: Ex1959 c 50 s 25; 1969 c 485 s 29; 1974 c 289 s 55; 1977 
 c 67 s 12; 1977 c 97 s 8; 1987 c 259 s 43 

  354.581 Repealed, 1974 c 289 s 59 

     354.59 State university teachers, additional retirement 
  allowance. 

    In addition to other retirement benefits provided by law 
 for teachers including those received under provisions of 
 Minnesota Statutes 1957, sections 135.01 to 135.18 and 135.31 to 
 135.55, as amended, each state university teacher, who on July 
 1, 1957, had been a member of the teachers retirement 
 association for at least 15 years, upon retirement shall be paid 
 $1 a month for each year of allowable service, as defined by 
 Minnesota Statutes 1957, section 135.01, subdivision 13, as 
 amended by Extra Session Laws 1959, chapter 50, section 50, out 
 of the teachers' retirement fund.  The money necessary to make 
 the payments as provided for herein are appropriated out of 
 money in the teachers' retirement fund. 

    HIST: Ex1961 c 16 s 1; 1975 c 321 s 2 

     354.60 Service in other public retirement funds; annuity.

    Any person who has been a member of the Minnesota state 
 retirement system or the public employees retirement association 
 including the public employees retirement association police and 
 fire fund or the teachers retirement association or the 
 Minnesota state patrol retirement association, or any other 
 public employee retirement system in the state of Minnesota 
 having a like provision but excluding all other funds providing 
 benefits for police officers or firefighters shall be entitled 
 when qualified to an annuity from each fund if the person's 
 total allowable service in all three funds or in any two of 
 these funds totals three or more years, provided no portion of 
 the allowable service upon which the retirement annuity from one 
 fund is based is again used in the computation for benefits from 
 another fund and provided further that the person has not taken 
 a refund from any one of these three funds since the person's 
 membership in that association has terminated.  The annuity from 
 each fund shall be determined by the appropriate provisions of 
 the law except that the requirement that an annuitant have at 
 least three years' membership service or three years of 
 allowable service in the respective association shall not apply 
 for the purposes of this section provided the combined service 
 in two or more of these funds equals three or more years. 

    HIST: Ex1961 c 17 s 15; 1971 c 87 s 2; 1973 c 35 s 59; 1977 c 
 429 s 63; 1981 c 37 s 2; 1981 c 224 s 127; 1987 c 372 art 9 s 
 28; 1989 c 319 art 13 s 70 

  354.61 Repealed, 2Sp1981 c 1 s 8 

  354.62 Repealed, 1990 c 570 art 12 s 64 

  354.621 Repealed, 1Sp1985 c 7 s 36 

     354.63 Participation in Minnesota postretirement 
  investment fund. 

    Subdivision 1.    Authorization.  The teachers 
 retirement association is hereby authorized to participate in 
 the Minnesota postretirement investment fund.  

    Subd. 2.    Valuation of assets; adjustment of benefits. 
  (1) The required reserves for retirement annuities determined 
 under this chapter must be transferred to the Minnesota 
 postretirement investment fund no later than the last business 
 day of the month in which the retirement annuity begins.  The 
 required reserves shall be determined in accordance with the 
 appropriate annuity table of mortality adopted by the board of 
 trustees as provided in section 354.07, subdivision 1, based on 
 the experience of the fund as recommended by the 
 commission-retained actuary and using the interest assumption 
 specified in section 356.215, subdivision 4d. 

    (2) Annuity payments shall be adjusted as provided in 
 section 11A.18.  In making these adjustments, members who retire 
 effective July 1 shall be considered to have retired effective 
 the preceding June 30.  

    (3) An increase in annuity payments under this section will 
 be made automatically unless written notice is filed by the 
 annuitant with the executive director of the teachers retirement 
 association requesting that the increase not be made. 

    HIST: 1969 c 485 s 31; 1971 c 40 s 34; 1971 c 414 s 10; 1973 c 
 728 s 29; 1974 c 289 s 58; 1980 c 607 art 14 s 45 subd 2; s 46; 
 1983 c 148 s 5; 1987 c 259 s 45; 1995 c 141 art 3 s 20; 1996 c 
 305 art 1 s 84; 2000 c 461 art 3 s 43 

     354.64 Effect of records.  

    The records of the teachers retirement association as 
 determined to be correct by the board of trustees shall govern 
 rights, benefits, and status of each member, former member, or 
 annuitant of the association.  

    HIST: 1969 c 485 s 35 

  354.65 Repealed, 1994 c 528 art 3 s 34 

     354.66 Qualified part-time teachers; membership in 
  association. 

    Subdivision 1.    Teachers, defined.  As used in this 
 section, the term "teachers" shall have the meaning given it in 
 section 122A.15, subdivision 1, except that the term shall not 
 include superintendents.  The term shall also have the meaning 
 given it in section 136F.43, subdivision 1. 

    Subd. 1a.    Board, defined.  For purposes of this 
 section, the term "board" means a school district board and the 
 board of trustees of the Minnesota state colleges and 
 universities.  

    Subd. 1b.    District, defined.  For purposes of this 
 section, the term "district" means a school district or the 
 Minnesota state colleges and universities system. 

    Subd. 1c.    Participation.  (a) Except as indicated in 
 paragraph (b), participation in the part-time mobility program 
 must be based on a full fiscal year and the employment pattern 
 of the teacher during the most recent fiscal year.  

    (b) For a teacher in the Minnesota state colleges and 
 universities system who teaches only during the first semester 
 in an academic year and retires immediately after the first 
 semester, participation in the part-time mobility program must 
 be based on one-half of a full fiscal year and the employment 
 pattern of the teacher during the most recent one-half of the 
 most recent fiscal year. 

    Subd. 2.    Qualified part-time teacher program 
 participation requirements.  A teacher in a Minnesota public 
 elementary school, a Minnesota secondary school, or the 
 Minnesota state colleges and universities system who has three 
 years or more of allowable service in the association or three 
 years or more of full-time teaching service in Minnesota public 
 elementary schools, Minnesota secondary schools, or the 
 Minnesota state colleges and universities system, by agreement 
 with the board of the employing district or with the authorized 
 representative of the board, may be assigned to teaching service 
 in a part-time teaching position under subdivision 3.  The 
 agreement must be executed before October 1 of the year for 
 which the teacher requests to make retirement contributions 
 under subdivision 4.  A copy of the executed agreement must be 
 filed with the executive director of the association.  If the 
 copy of the executed agreement is filed with the association 
 after October 1 of the year for which the teacher requests to 
 make retirement contributions under subdivision 4, the employing 
 unit shall pay the fine specified in section 354.52, subdivision 
 6, for each calendar day that elapsed since the October 1 due 
 date.  The association may not accept an executed agreement that 
 is received by the association more than 15 months late.  The 
 association may not waive the fine required by this section. 

    Subd. 3.    Part-time teaching position, defined.  (a) 
 For purposes of this section, the term "part-time teaching 
 position" means a teaching position within the district in which 
 the teacher is employed for at least 50 full days or a 
 fractional equivalent thereof as prescribed in section 354.091, 
 and for which the teacher is compensated in an amount not 
 exceeding 80 percent of the compensation established by the 
 board for a full-time teacher with identical education and 
 experience with the employing unit.  

    (b) For a teacher to which subdivision 1c, paragraph (b), 
 applies, the term "part-time teaching position" means a teaching 
 position within the district in which the teacher is employed 
 for at least 25 full days or a fractional equivalent thereof as 
 prescribed in section 354.091, and for which the teacher is 
 compensated in an amount not exceeding 40 percent of the 
 compensation established by the board for a full-time teacher, 
 with identical education and experience with the employing unit. 

    Subd. 4.    Retirement contributions.  Notwithstanding 
 any provision to the contrary in this chapter relating to the 
 salary figure to be used for the determination of contributions 
 or the accrual of service credit, a teacher assigned to a 
 part-time position under this section shall continue to make 
 employee contributions to and to accrue allowable service credit 
 in the retirement fund during the period of part-time employment 
 on the same basis and in the same amounts as would have been 
 paid and accrued if the teacher had been employed on a full-time 
 basis provided that, prior to June 30 each year, or within 30 
 days after notification by the association of the amount due, 
 whichever is later, the member and the employing board make that 
 portion of the required employer contribution to the retirement 
 fund, in any proportion which they may agree upon, that is based 
 on the difference between the amount of compensation that would 
 have been paid if the teacher had been employed on a full-time 
 basis and the amount of compensation actually received by the 
 teacher for the services rendered in the part-time assignment.  
 The employing unit shall make that portion of the required 
 employer contributions to the retirement fund on behalf of the 
 teacher that is based on the amount of compensation actually 
 received by the teacher for the services rendered in the 
 part-time assignment.  The employee and employer contributions 
 shall be based upon the rates of contribution prescribed by 
 section 354.42.  Full accrual of allowable service credit and 
 employee contributions for part-time teaching service pursuant 
 to this section and section 354A.094 shall not continue for a 
 period longer than ten years. 

    Subd. 4a. Repealed, 1987 c 398 art 7 s 43 

    Subd. 5.    Other membership precluded.  A teacher 
 entitled to full accrual of allowable service credit and 
 employee contributions for part time teaching service pursuant 
 to this section shall not be entitled during the same period of 
 time to be a member of, accrue allowable service credit in or 
 make employee contributions to any other Minnesota public 
 employee pension plan, except the plan established in chapter 
 3A, the plan established in chapter 352D if the teacher also is 
 a legislator, or a volunteer firefighters' relief association 
 governed by sections 69.771 to 69.776. 

    Subd. 6.    Insurance.  A board of an employing district 
 entering into an agreement authorized by this section shall take 
 all steps necessary to assure continuance of any insurance 
 programs furnished or authorized a full time teacher on an 
 identical basis and with identical sharing of costs for a part 
 time teacher pursuant to this section, provided, however, that 
 the requirements of this sentence may be modified by a 
 collective bargaining agreement between a board and an exclusive 
 representative pursuant to chapter 179.  Teachers as defined in 
 section 136F.43 employed on a less than 75 percent time basis 
 pursuant to this section shall be eligible for state paid 
 insurance benefits as if the teachers were employed full time. 

    Subd. 7.    Eligibility for credit.  Only teachers who 
 are public employees as defined in section 179A.03, subdivision 
 14, during the school year preceding the period of part-time 
 employment pursuant to this section shall qualify for full 
 accrual of service credit from, and employee contributions to 
 the retirement fund for part-time teaching service pursuant to 
 subdivision 4.  Notwithstanding the provisions of section 
 179A.03, subdivision 14, clauses (e) and (f), teachers who are 
 employed on a part-time basis for purposes of this section and 
 who would therefore be disqualified from the bargaining unit by 
 one or both of those provisions, shall continue to be in the 
 bargaining unit during the period of part-time employment 
 pursuant to this section for purposes of compensation, fringe 
 benefits and the grievance procedure. 

    Subd. 8.    Restrictions on accrual.  No teacher shall 
 qualify for full accrual of service credit from and employee 
 contributions to the retirement association or a teachers 
 retirement fund association for part time teaching service 
 pursuant to subdivision 4 or section 354A.094, subdivision 4, in 
 more than one district at the same time.  No teacher shall 
 qualify for full accrual of service credit from and employee 
 contributions to the retirement association or a teachers 
 retirement fund association for part time teaching service 
 during part time employment in a district pursuant to this 
 section in any year when the teacher also takes a full time or 
 part time teaching position in another Minnesota school district.

    Subd. 9. Repealed, 1987 c 398 art 7 s 43 

    Subd. 10.    Board power not restricted.  Nothing in 
 this section shall be construed to limit the authority of a 
 board to assign a teacher to a part time teaching position which 
 does not qualify for full accrual of service credit from and 
 employee contributions to the retirement fund pursuant to this 
 section. 

    Subd. 11.    Substitute teaching.  Neither subdivision 5 
 nor 8 shall be construed to prohibit a teacher who qualifies for 
 full accrual of service credit from and employee contributions 
 to the retirement fund pursuant to this section in any year from 
 being employed as a substitute teacher by any school district 
 during that year.  Notwithstanding the provisions of sections 
 354.091 and 354.42, a teacher may not qualify for full accrual 
 of service credit from and employee contributions to the 
 retirement fund for other teaching service rendered for any part 
 of any year for which the teacher qualifies for full accrual of 
 service credit from and employee contributions to the retirement 
 fund pursuant to this section or section 354A.094. 

    HIST: 1977 c 447 art 9 s 4; 1978 c 764 s 118,119; 1979 c 334 
 art 8 s 16-19; 1980 c 454 s 6-13; 1980 c 618 s 5; 1981 c 224 s 
 129; 1981 c 358 art 8 s 13; 1982 c 548 art 4 s 15; 1982 c 578 
 art 3 s 5; 1983 c 314 art 10 s 9-11; 1984 c 462 s 27; 1Sp1985 c 
 12 art 6 s 19; art 11 s 9; 1986 c 444; 1987 c 258 s 12; 1987 c 
 384 art 2 s 1; 1989 c 246 s 2; 1989 c 319 art 9 s 22; art 18 s 
 3; 1990 c 426 art 1 s 44; 1990 c 570 art 12 s 44; 1994 c 521 s 
 1,2; 1994 c 528 art 3 s 31-33; 1994 c 572 s 6; 1995 c 141 art 3 
 s 20; 1995 c 262 art 1 s 5; 1996 c 305 art 1 s 85,86; 1997 c 7 
 art 1 s 131; 1997 c 183 art 3 s 38; 1998 c 397 art 11 s 3; 1998 
 c 390 art 3 s 1,2; 1999 c 222 art 8 s 1; art 19 s 5-7; 2000 c 
 260 s 97 

     354.69 Information supplied by district. 

    Each school district covered by the provisions of this 
 chapter and the Minnesota state colleges and universities system 
 shall furnish to the teachers retirement association all 
 information and reports deemed necessary by the executive 
 director to administer the provisions of section 354.66. 

    HIST: 1977 c 447 art 9 s 5; 1980 c 454 s 14; 1981 c 224 s 130; 
 1Sp2001 c 1 art 2 s 23