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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 354A

Section 354A.31

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354A.31 COORDINATED PROGRAM RETIREMENT BENEFITS.
    Subdivision 1. Age and service requirements. Any coordinated member or former
coordinated member who has ceased to render teaching service for the school district in which
the teachers retirement fund association exists and who has either attained the age of at least 55
years with not less than three years of allowable service credit or received credit for not less than
30 years of allowable service regardless of age, shall be entitled upon written application to
a retirement annuity.
    Subd. 1a. Application for annuity. Application for a retirement annuity may be made
by a member or by a person authorized to act on behalf of the member. Every application for
retirement must be made in writing on a form prescribed by the executive secretary or director
and must be substantiated by written proof of the member's age and identity. The notarized
signature of a member's spouse on a retirement annuity application acknowledging the member's
annuity selection meets the notice requirement to the spouse under section 356.46, subdivision 3.
An application for a retirement annuity is not complete until all necessary supporting documents
are received by the executive secretary or director.
    Subd. 2. Time and manner of payments. A coordinated member or former coordinated
member may make application to the board of the teachers retirement fund association for a
retirement annuity any time after the member has satisfied the age and service requirements
specified in subdivision 1, but no application for retirement may be accepted by the board more
than 60 days prior to the termination of teaching service. The retirement annuity shall begin
to accrue after the occurrence of a retirement precondition event, which for purposes of this
subdivision is the later of the termination of teaching service for the school district in which the
teachers retirement fund association exists, the filing of an application for a retirement annuity
with the board, or receipt of the final salary payment. Accrual shall commence on the sixteenth
day of the month if the retirement precondition event occurs on or before the fifteenth day of
that month or on the first day of the month next following if the retirement precondition event
occurs on or after the sixteenth day of the month.
    Subd. 2a. Applications after retirement. If an application for retirement is filed with the
board during the 90-day 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. In no event may an annuity begin to accrue more than one
month before the date of final salary receipt.
    Subd. 3. Resumption of teaching after commencement of a retirement annuity. (a) Any
person who retired and is receiving a coordinated program retirement annuity under the provisions
of sections 354A.31 to 354A.41 or any person receiving a basic program retirement annuity under
the governing sections in the articles of incorporation or bylaws and who has resumed teaching
service for the school district in which the teachers retirement fund association exists is entitled to
continue to receive retirement annuity payments, except that annuity payments must be reduced
during the calendar year immediately following the calendar year in which the person's income
from the teaching service is in an amount greater than the annual maximum earnings allowable
for that age for the continued receipt of full benefit amounts monthly under the federal old age,
survivors, and disability insurance program as set by the secretary of health and human services
under United States Code, title 42, section 403. The amount of the reduction must be one-third the
amount in excess of the applicable reemployment income maximum specified in this subdivision
and must be deducted from the annuity payable for the calendar year immediately following the
calendar year in which the excess amount was earned. If the person has not yet reached the
minimum age for the receipt of Social Security benefits, the maximum earnings for the person
must be equal to the annual maximum earnings allowable for the minimum age for the receipt
of Social Security benefits.
(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 any compensation received for teaching service for the
school district in which the teachers retirement fund association exists.
(d) The amount of the retirement annuity reduction must be handled or disposed of as
provided in section 356.47.
(e) For the purpose of this subdivision, income from teaching service includes: (i) all income
for services performed as a consultant or independent contractor; or income resulting from
working with the school district in any capacity; and (ii) the greater of either the income received
or an amount based on the rate paid with respect to an administrative position, consultant, or
independent contractor in the school district in which the teachers retirement fund association
exists and at the same level as the position occupied by the person who resumes teaching service.
(f) On or before February 15 of each year, each applicable employing unit shall report
to the teachers retirement fund association the amount of postretirement income as defined in
this subdivision, earned as a teacher, consultant, or independent contractor during the previous
calendar year by each retiree of the teachers retirement fund association for teaching service
performed after retirement. The report must be in a format approved by the executive secretary
or director.
    Subd. 3a. No annuity reduction. (a) The annuity reduction provisions of subdivision 3 do
not apply to a person who:
(1) retires from the technical college system with at least ten years of service credit in the
system from which the person retires;
(2) was employed on a full-time basis immediately preceding retirement as a technical
college faculty member;
(3) begins drawing an annuity from a first class city 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 technical college system under an agreement in which the person may not earn a
salary of more than $46,000 in a calendar year from the technical college system.
(b) Initial participation, the amount of time worked, and the duration of participation under
this section must be mutually agreed upon by the employer and the employee. The employer may
require up to a one-year notice of intent to participate in the program as a condition of participation
under this section. The employer shall determine the time of year the employee shall work.
(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and (b)
may not earn further service credit in a first class city teachers retirement association and is not
eligible to participate in the individual retirement account plan or the supplemental retirement plan
established in chapter 354B as a result of service under this section. No employer or employee
contribution to any of these plans may be made on behalf of such a person.
    Subd. 4. Computation of normal coordinated retirement annuity; St. Paul fund. (a)
This subdivision applies to the coordinated program of the St. Paul Teachers Retirement Fund
Association.
(b) The normal coordinated retirement annuity is an amount equal to a retiring coordinated
member's average salary under section 354A.011, subdivision 7a, multiplied by the retirement
annuity formula percentage.
(c) This paragraph, in conjunction with subdivision 6, applies to a person who first became
a member or a member in a pension fund listed in section 356.30, subdivision 3, before July 1,
1989, unless paragraph (d), in conjunction with subdivision 7, produces a higher annuity amount,
in which case paragraph (d) will apply. The retirement annuity formula percentage for purposes of
this paragraph is the percent specified in section 356.315, subdivision 1, per year for each year of
coordinated service for the first ten years and the percent specified in section 356.315, subdivision
2
, for each year of coordinated service thereafter.
(d) This paragraph applies to a person who has become at least 55 years old and who first
becomes a member 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 paragraph and in conjunction
with subdivision 7 is higher than it is when calculated under paragraph (c), in conjunction
with the provisions of subdivision 6. The retirement annuity formula percentage for purposes
of this paragraph is the percent specified in section 356.315, subdivision 2, for each year of
coordinated service.
    Subd. 4a. Computation of the normal coordinated retirement annuity; Duluth fund. (a)
This subdivision applies to the new law coordinated program of the Duluth Teachers Retirement
Fund Association.
(b) The normal coordinated retirement annuity is an amount equal to a retiring coordinated
member's average salary under section 354A.011, subdivision 7a, multiplied by the retirement
annuity formula percentage.
(c) This paragraph, in conjunction with subdivision 6, applies to a person who first became
a member or a member in a pension fund listed in section 356.30, subdivision 3, before July 1,
1989, unless paragraph (d), in conjunction with subdivision 7, produces a higher annuity amount,
in which case paragraph (d) applies. The retirement annuity formula percentage for purposes of
this paragraph is the percent specified in section 356.315, subdivision 1, per year for each year of
coordinated service for the first ten years and the percent specified in section 356.315, subdivision
2
, for each subsequent year of coordinated service.
(d) This paragraph applies to a person who is at least 55 years old and who first becomes a
member after June 30, 1989, and to any other member who is at least 55 years old and whose
annuity amount, when calculated under this paragraph and in conjunction with subdivision 7,
is higher than it is when calculated under paragraph (c) in conjunction with subdivision 6. The
retirement annuity formula percentage for purposes of this paragraph is the percent specified in
section 356.315, subdivision 2, for each year of coordinated service.
    Subd. 5. Unreduced normal retirement annuity. Upon retirement at normal retirement age
with at least three years of service credit, a coordinated member is entitled to a normal retirement
annuity calculated under subdivision 4 or 4a, whichever applies.
    Subd. 6. Reduced retirement annuity. This subdivision applies only to a person who first
became a coordinated member 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 using the retirement
annuity formula percentage in subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), in
conjunction with this subdivision than when calculated under subdivision 4, paragraph (d), or
subdivision 4a, paragraph (d), in conjunction with subdivision 7.
(a) Upon retirement at an age before normal retirement age with three years of service credit
or prior to age 62 with at least 30 years of service credit, a coordinated member shall be entitled
to a retirement annuity in an amount equal to the normal retirement annuity calculated using
the retirement annuity formula percentage in subdivision 4, paragraph (c), or subdivision 4a,
paragraph (c), reduced by one-quarter of one percent for each month that the coordinated member
is under normal retirement age if the coordinated member has less than 30 years of service credit
or is under the age of 62 if the coordinated member has at least 30 years of service credit.
(b) Any coordinated 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
retirement annuity calculated using the retirement annuity formula percentage in subdivision
4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by reason of early
retirement.
    Subd. 7. Actuarial reduction for early retirement. This subdivision applies to a person
who has become at least 55 years old and first becomes a coordinated member after June 30, 1989,
and to any other coordinated member who has become at least 55 years old and whose annuity
is higher when calculated using the retirement annuity formula percentage in subdivision 4,
paragraph (d), and subdivision 4a, paragraph (d), in conjunction with this subdivision than when
calculated under subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), in conjunction
with subdivision 6. A coordinated member who retires before the full benefit age shall be paid
the retirement annuity calculated using the retirement annuity formula percentage in subdivision
4, paragraph (d), or subdivision 4a, paragraph (d), reduced so that the reduced annuity is the
actuarial equivalent of the annuity that would be payable to the member if the member 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 if the employee became an employee before July 1, 2006, and at 2.5 percent compounded
annually from the day the annuity begins to accrue until the normal retirement age if the person
initially becomes a teacher after June 30, 2006.
    Subd. 8. 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.
History: 1979 c 217 s 16; 1981 c 224 s 139; 1987 c 372 art 9 s 29-31; 1989 c 319 art 2 s 22;
art 13 s 74-78; 1990 c 570 art 12 s 47-49; 1992 c 598 art 6 s 15; 1993 c 336 art 1 s 9; art 2 s 1;
1994 c 542 s 3; 1995 c 141 art 3 s 13; 1995 c 262 art 1 s 7; art 2 s 6,7; 1997 c 233 art 3 s 8,9;
2000 c 461 art 2 s 8,9; 1Sp2001 c 10 art 3 s 23; 2002 c 392 art 11 s 52; 2003 c 2 art 1 s 39,40;
1Sp2005 c 8 art 1 s 21,22; art 10 s 63; 2006 c 277 art 2 s 8; art 3 s 26