2006 Minnesota Statutes

CHAPTER 354B. INDIVIDUAL RETIREMENT ACCOUNT PLAN

354B.01 [Repealed, 1995 c 141 art 4 s 31]

354B.015 [Repealed, 1995 c 141 art 4 s 31]

354B.02 [Repealed, 1995 c 141 art 4 s 31]

354B.03 [Repealed, 1989 c 319 art 18 s 12]

354B.035 [Repealed, 1995 c 141 art 4 s 31]

354B.04 [Repealed, 1995 c 141 art 4 s 31]

354B.045 [Repealed, 1995 c 141 art 4 s 31]

354B.05 [Repealed, 1995 c 141 art 4 s 31]

354B.06 [Repealed, 1995 c 141 art 4 s 31]

354B.07 [Repealed, 1995 c 141 art 4 s 31]

354B.08 [Repealed, 1995 c 141 art 4 s 31]

354B.085 [Repealed, 1995 c 141 art 4 s 31]

354B.09 [Repealed, 1995 c 141 art 4 s 31]

TEACHER RETIREMENT FUND ASSOCIATION

354B.15 [Repealed, 1995 c 141 art 4 s 31]

354B.20 DEFINITIONS.
    Subdivision 1. In general. Unless the content or subject matter indicates otherwise, as used
in this chapter the terms in this section have the meanings given them.
    Subd. 2. Board. "Board" means the Board of Trustees of the Minnesota State Colleges
and Universities.
    Subd. 3. Chancellor. "Chancellor" means the chancellor of the board.
    Subd. 4. Covered employment. (a) "Covered employment" means employment by a person
eligible for coverage by this retirement program under section 354B.21 in a faculty position or in
an eligible unclassified administrative position.
(b) "Covered employment" does not mean employment specified in paragraph (a) by a
faculty member employed in the Minnesota State Colleges and Universities system if the person's
initial appointment is specified as constituting less than 25 percent of a full academic year,
exclusive of summer session, for the applicable institution.
    Subd. 5. Covered salary. (a) "Covered salary" means the periodic compensation paid to
the participant before deductions for deferred compensation, supplemental retirement coverage,
or other voluntary salary reduction program.
(b) "Covered salary" does not mean lump sum sick leave payments, severance payments,
payments in lieu of employer-paid group insurance coverage, payments based on differences
between single employer-paid group insurance coverage and insurance coverage including
dependents, or workers' compensation payment.
    Subd. 6. Eligible unclassified administrative position. "Eligible unclassified administrative
position" means the following:
(1) the chancellor of the board;
(2) a president of a state college or university;
(3) an administrator employed in a state university or college, by the board, or by the
Minnesota Office of Higher Education; or
(4) other managers and professionals in academic and academic support programs in the
unclassified service employed in a state university or college, by the board, or by the Minnesota
Office of Higher Education.
    Subd. 7. Employing unit. "Employing unit," if the agency employs any persons covered by
the individual retirement account plan under section 354B.21, means:
(1) the board;
(2) the Minnesota Office of Higher Education; and
(3) the Higher Education Facilities Authority.
    Subd. 8. Faculty. "Faculty" means an employment position that meets the definition of either
section 354.05, subdivision 2, or 354A.011, subdivision 27.
    Subd. 9. First class city teacher retirement fund association. "First class city teacher
retirement fund association" means a retirement plan, fund, and plan administration established
under chapter 354A.
    Subd. 10. General state employees retirement plan. "General state employees retirement
plan" means the retirement plan administered by the Minnesota State Retirement System and
governed by sections 352.01 to 352.72.
    Subd. 11. Board of Trustees of the Minnesota State Colleges and Universities. "Board of
Trustees of the Minnesota State Colleges and Universities" means the governing board for the state
universities, the community colleges, and the technical colleges established by section 136F.02.
    Subd. 12. Participant. "Participant" means a person who is employed in covered
employment by the board and who elects coverage by the plan under section 354B.21.
    Subd. 13. Plan. "Plan" means the individual retirement account plan established by this
chapter.
    Subd. 14. Plan administrator. "Plan administrator" means the board employee or an
independent contract agent designated by the board to perform the primary administrative
functions relating to the plan.
    Subd. 15. Sabbatical leave. "Sabbatical leave" means a sabbatical leave as specified in the
applicable collective bargaining agreement or personnel policy of the board for its employees.
    Subd. 16. State unclassified employees retirement program. "State unclassified employees
retirement program" means the retirement program established by chapter 352D.
    Subd. 17. Supplemental plan. "Supplemental plan" means the retirement program
established by chapter 354C.
    Subd. 18. Teachers retirement plan. "Teachers retirement plan" means the retirement plan
established by chapter 354.
History: 1995 c 141 art 4 s 8; 1995 c 212 art 3 s 59; art 4 s 64; 1996 c 305 art 1 s 139;
2004 c 267 art 1 s 6,7; 2005 c 107 art 2 s 60

354B.21 COVERAGE.
    Subdivision 1. Eligibility. The following persons are eligible to have coverage by the
individual retirement account plan and to be participants in the plan:
(1) employees of the board who are employed as faculty in an employment classification
included in the state university instructional unit or the state college instructional unit under
section 179A.10, subdivision 2;
(2) the chancellor and employees of the board in eligible unclassified administrative
positions;
(3) the employees in eligible unclassified administrative positions in the state universities;
(4) the employees in eligible unclassified administrative positions in the technical colleges;
and
(5) the employees in eligible unclassified administrative positions of the Minnesota Office of
Higher Education or of the community colleges.
    Subd. 2. Coverage; election. (a) For eligible persons who were employed by the former
state university system or the former community college system before May 1, 1995, the person
has the retirement coverage that the person had for employment immediately before May 1, 1995.
(b) For all other eligible persons, unless otherwise specified in this section, the eligible
person is authorized to elect prospective Teachers Retirement Association plan coverage rather
than coverage by the plan established by this chapter. The election of prospective Teachers
Retirement Association plan coverage shall be made within one year of commencing eligible
Minnesota State Colleges and Universities system employment. If an election is not made within
the specified election period due to a termination of Minnesota State Colleges and Universities
system employment, an election may be made within 90 days of returning to eligible Minnesota
State Colleges and Universities system employment. All elections are irrevocable. Prior to
making an election the eligible person shall be covered by the plan indicated as default coverage
under subdivision 3.
(c) A purchase of service credit in the Teachers Retirement Association plan for any period
or periods of Minnesota State Colleges and Universities system employment occurring prior to
the election under paragraph (b) is prohibited.
    Subd. 3. Default coverage. (a) Prior to making an election under subdivision 2, or if an
eligible person fails to elect coverage by the plan under subdivision 2 or if the person fails to make
a timely election, the following retirement coverage applies:
(1) for employees of the board who are employed in faculty positions in the technical
colleges, in the state universities or in the community colleges, the retirement coverage is by
the plan established by this chapter;
(2) for employees of the board who are employed in faculty positions in the technical
colleges, the retirement coverage is by the plan established by this chapter unless on June 30,
1997, the employee was a member of the Teachers Retirement Association established under
chapter 354 and then the retirement coverage is by the Teachers Retirement Association, or,
unless the employee was a member of a first class city teacher retirement fund established under
chapter 354A on June 30, 1995, and then the retirement coverage is by the Duluth Teachers
Retirement Fund Association if the person was a member of that plan on June 30, 1995, or the
Minneapolis Teachers Retirement Fund Association if the person was a member of that plan on
June 30, 1995, or the St. Paul Teachers Retirement Fund Association if the person was a member
of that plan on June 30, 1995; and
(3) for employees of the board who are employed in eligible unclassified administrative
positions, the retirement coverage is by the plan established by this chapter.
(b) If an employee fails to correctly certify prior membership in the Teachers Retirement
Association to the Minnesota State colleges and Universities system, the system shall not pay
interest on employee contributions, employer contributions, and additional employer contributions
to the Teachers Retirement Association under section 354.52, subdivision 4.
    Subd. 3a. Continuation of plan coverage in certain instances. For a person with
retirement coverage by a first class city teacher retirement fund association instead of the
individual retirement account plan under subdivision 3, clause (2), coverage by the applicable
retirement fund association continues for the duration of the person's employment by the Board
of Trustees of the Minnesota State Colleges and Universities unless, within 90 days of a change
in employment within the Minnesota State Colleges and Universities system, the person elects
the individual retirement account plan for all future employment by the Board of Trustees of the
Minnesota State Colleges and Universities.
    Subd. 3b. Coverage of certain former technical college faculty members. A person who
was employed as a teacher by a technical college before July 1, 1995, and who subsequently
is reclassified into a different employment position while continuing to perform the same or
essentially the same employment duties and consequently shifts from the technical college
instructional collective bargaining unit to another state collective bargaining unit retains coverage
by the Teachers Retirement Association or the applicable first class city teachers retirement
fund association, whichever applies.
    Subd. 3c. Election of TRA coverage in certain instances. (a) A person who was employed
as a teacher by a technical college before July 1, 1995, and who has retirement coverage for that
technical college teacher employment by a first class city teacher retirement fund association
under chapter 354A may elect to have future higher education system teacher employment
retirement coverage by the Teachers Retirement Association governed by chapter 354.
(b) The election to transfer prospective retirement coverage under paragraph (a) must be
made by the technical college teacher by October 1, 1995, or within 90 days of initially being
employed by the higher education system, whichever is later. The election must be made in
writing on a form prescribed by the executive director of the Teachers Retirement Association.
The election, once filed with the executive director of the Teachers Retirement Association,
is irrevocable.
(c) An election to transfer prospective retirement coverage under paragraph (a) does not
affect prior allowable service credit under section 354A.011, subdivision 4. The transfer of
prospective retirement coverage does not make the person eligible for a refund of member
contributions during the course of the person's employment by the higher education system.
    Subd. 4. Coverage in the event of acting, interim, or temporary appointments. (a) A
person previously employed by the board and subsequently appointed by the board to an acting,
interim, or temporary faculty or eligible unclassified administrative position by the board retains
the retirement coverage that the person had in the prior board position. If the participant's status
becomes permanent, the participant has the option to make an election of retirement coverage
appropriate to the retirement plan in which the employment position should have retirement
coverage consistent with subdivision 2.
(b) A person who is appointed to an acting, interim, or temporary faculty position by the
board and who was not employed in a faculty position by the board immediately before that
appointment must elect coverage as provided in subdivision 2.
    Subd. 5. Payment for certain prior uncovered service. (a) A person employed in a faculty
position by the board who was initially excluded from participation in the individual retirement
account plan coverage, who was not covered by any other Minnesota public pension plan for that
service, and who is subsequently eligible to participate in the individual retirement account plan
may make member contributions for that period of prior uncovered teaching employment or
eligible unclassified administrative employment with the board.
(b) The member contributions for prior uncovered board service are the amount that the
person would have paid if the prior service had been covered employment. The payment must be
made to the individual retirement account plan administrator and may be made only by payroll
deduction. The payment must be made by the later of:
(1) 45 days of the start of covered employment; or
(2) the end of the fiscal year in which covered employment began.
(c) The board must contribute an amount to match any contribution made by a plan
participant under this subdivision.
(d) Payments of contributions for prior uncovered board service under this subdivision
must be invested in the same manner as the regular contributions made by or on behalf of the
plan participant.
    Subd. 6. Continuation of coverage. Once a person is employed in a position that qualifies
for participation in the individual retirement account plan and elects to participate in the plan, all
subsequent service by the person as a faculty member employed by the board or other employing
unit is covered by the individual retirement account plan.
History: 1995 c 141 art 4 s 9; 1995 c 212 art 3 s 59; art 4 s 64; 1997 c 241 art 8 s 5; 2001 c
133 s 3; 2005 c 107 art 2 s 60; 1Sp2005 c 8 art 4 s 7,8

354B.22 IRAP COVERAGE IN ADDITION TO SOCIAL SECURITY COVERAGE.
    Subdivision 1. Social Security coverage. (a) Any employee of the board or other employing
unit who elects coverage by this chapter is a member of the Teachers Retirement Association
solely for purposes of coverage by the federal old age, survivors, disability and health insurance
program, and is covered by the agreement made under section 355.02.
(b) A person with federal Social Security coverage through Teachers Retirement Association
membership under paragraph (a) is not a member of the Teachers Retirement Association for
any other purpose while employed as a teacher by the board, and membership in the Teachers
Retirement Association for this limited purpose conveys no rights or benefit entitlement under
chapter 354.
    Subd. 2. Public pension coverage as condition of employment. Coverage by a public
pension plan under section 354B.21 is a condition of initial employment or continued employment
as a faculty member or eligible unclassified administrative position by the board or other
employing unit.
History: 1995 c 141 art 4 s 10

354B.23 CONTRIBUTIONS.
    Subdivision 1. Member contribution rate. The member contribution rate for participants in
the individual retirement account plan is 4.5 percent of salary.
    Subd. 2. Member contribution method. Member contributions must be made by payroll
deduction during each pay period.
    Subd. 3. Employer contribution rate. The employer contribution rate on behalf of
participants in the individual retirement account plan is six percent of salary.
    Subd. 4. Employer contribution method. The employer contribution must be made by the
employing unit of a plan participant during each pay period. The employer contribution must be
made from the available revenue sources of the employing unit.
    Subd. 5. Omitted member deductions. (a) If the employing unit that employs a plan
participant fails to deduct the member contribution from the participant's salary and a period of
less than 60 days from the date on which the deduction should have been made has elapsed, the
employing unit must obtain the omitted member deduction by an additional payroll deduction
during the pay period next following the discovery of the omission.
(b) If the employing unit of a plan participant fails to deduct the member contribution from
the participant's salary and that omission continues for at least 60 days from the date on which
the deduction should have been made, the employing unit must pay the amount representing the
omitted member contribution, and the full required employer contribution, plus compound interest
at an annual rate of 8.5 percent. The contributions and any interest must be made within one year
of the date on which the omission was discovered.
    Subd. 5a. Excess contributions. When contributions to the plan exceed limits imposed by
federal law or regulation, the excess employee contributions must be returned to the employee
and the excess employer contributions must be reallocated in accordance with section 415 of the
federal Internal Revenue Code, as amended, and the applicable federal regulations and revenue
rulings.
    Subd. 6. Transfer of certain TRA member contribution amounts to IRAP. (a)
Notwithstanding any provisions of chapter 354 to the contrary, a former member of the Teachers
Retirement Association who has less than three years of allowable service credit under section
354.05, subdivision 13, and who is a member of the individual retirement account plan may elect
to transfer to the plan an amount equal to the refund that the person could have received under
section 354.49, subdivision 2, if the person had been eligible to receive a refund.
(b) The transfer must be made from the Teachers Retirement Association directly to the
individual retirement account plan and credited to the appropriate account.
(c) No amount under this subdivision may be paid directly to the former Teachers Retirement
Association member.
(d) The election of this transfer must be made on a form prescribed by the executive director
of the Teachers Retirement Association, after consultation with the plan administrator.
History: 1995 c 141 art 4 s 11; 1998 c 390 art 2 s 10; 2000 c 461 art 12 s 12; 2004
c 267 art 5 s 3

354B.24 SABBATICAL LEAVE.
    Subdivision 1. Continuation of coverage. A person who is a participant in the individual
retirement plan, and who goes on an approved sabbatical leave, must remain a participant in the
plan for any period during which the person receives a salary from the board or during which the
person makes an optional contribution provided for in subdivision 3.
    Subd. 2. Mandatory contributions. (a) From the salary paid to the person during the course
of an approved sabbatical leave, the employing unit must deduct a member contribution as
required under section 354B.23, subdivision 1.
(b) The employing unit must make the employer contribution on behalf of the plan
participant as provided in section 354B.23, subdivision 3.
    Subd. 3. Additional contributions. (a) In addition to contributions required by subdivision
2, a plan participant on an approved sabbatical leave shall make a member contribution based on
the member contribution rate specified in section 354B.23, subdivision 1, applied to the difference
between the amount of salary actually received during the sabbatical leave and the full-time salary
the member would have received if not on sabbatical leave.
(b) Any additional member contribution must be made through payroll deduction as though
the member were employed full time.
(c) When an additional member contribution is made, the employing unit must make the
employer contribution at the rate specified in section 354B.23, subdivision 3, on the salary that
was the basis for the additional member contribution under paragraph (a).
(d) An employer contribution required under this section must be made no later than 60 days
after the date on which the optional additional member contribution was made.
    Subd. 4. Reinstatement rights. Notwithstanding the provisions of any sabbatical leave
agreements, regular and optional additional member contributions and employer contributions
under this section are permissible only if the plan participant retains the right to full reinstatement
to an employment position with the applicable employing unit both during and at the conclusion
of the sabbatical leave.
History: 1995 c 141 art 4 s 12; 1999 c 222 art 19 s 8

354B.25 INDIVIDUAL RETIREMENT ACCOUNT PLAN ADMINISTRATION.
    Subdivision 1. General governance. The individual retirement account plan is the
administrative responsibility of the Board of Trustees of the Minnesota State Colleges and
Universities. The Board of Trustees of the Minnesota State Colleges and Universities may
administer the plan directly or may contract out for administrative services with a qualified
third-party plan administrative entity.
    Subd. 1a. Advisory committee. (a) A committee is created to advise the State Board of
Investment and the Board of Trustees of the Minnesota State Colleges and Universities concerning
administration of the individual retirement account plan and the supplemental retirement plan
established in chapter 354C. The committee shall adopt recommendations by majority vote
of those members voting on each issue. The exclusive representatives of the state university
instructional unit and the state college instructional unit shall each appoint two members to
the committee. The exclusive representatives of the general professional unit, the supervisory
employees unit and the state university administrative unit shall each appoint one member to
the committee. The chancellor of the Minnesota State Colleges and Universities shall appoint
three members, at least one of whom shall be a personnel administrator. No member of the
committee shall be retired. Members serve at the pleasure of the applicable appointing authority,
but no member shall serve for more than a total of five years. Members shall be reimbursed
from the administrative expense account of the individual retirement account plan for expenses
as provided in section 15.059, subdivision 3.
(b) The committee shall:
(1) advise the Board of Trustees of the Minnesota State Colleges and Universities on the
structure and operation of the individual retirement account plan and the supplemental retirement
plan;
(2) along with any other consultants selected by the board, advise the state board of
investment on selection of financial institutions and on the type of investment products to be
offered by these institutions for the plans;
(3) advise the Board of Trustees of the Minnesota State Colleges and Universities on
administration of the plans, including selection of a third-party plan administrator, if any, for the
individual retirement account plan.
(c) The Board of Trustees of the Minnesota State Colleges and Universities shall provide the
advisory committee with meeting space and other administrative support.
(d) Expenses of the advisory committee are considered administrative expenses of the plans
under subdivision 5 and section 354C.12, subdivision 4, and must be allocated between the two
plans in proportion to the market value of the total assets of the plans as of the most recent
prior audited annual financial report.
    Subd. 2. Investment options. (a) The plan administrator shall arrange for the purchase of
investment products.
(b) The investment products must be purchased with contributions under section 354B.23 or
with money or assets otherwise provided by law by authority of the board.
(c) Various investment accounts offered through the Minnesota supplemental investment
fund established under section 11A.17 and administered by the State Board of Investment may be
included as investment products for the individual retirement account plan. Direct access must also
be provided to lower expense and no-load mutual funds, as those terms are defined by the federal
Securities and Exchange Commission, including stock funds, bond funds, and balanced funds.
Other investment products or combination of investment products which may be included are:
(1) savings accounts at federally insured financial institutions;
(2) life insurance contracts, fixed and variable annuity contracts from companies that are
subject to regulation by the commerce commissioner;
(3) investment options from open-ended investment companies registered under the federal
Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64;
(4) investment options from a firm that is a registered investment advisor under the federal
Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21; and
(5) investment options of a bank as defined in United States Code, title 15, section 80b-2,
subsection (a), paragraph 2, or a bank holding company as defined in the Bank Holding Company
Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph (1).
    Subd. 3. Selection of financial institutions. (a) The investment options provided under
subdivision 2 must be selected by the State Board of Investment.
In making its selection, at a minimum, the State Board of Investment shall consider the
following:
(1) the experience and ability of the financial institution to provide benefits and products that
are suited to meet the needs of plan participants;
(2) the relationship of those benefits and products provided by the financial institution to
their cost;
(3) the financial strength and stability of the financial institution; and
(4) the fees and expenses associated with the investment products in comparison to other
products of similar risk and rates of return.
(b) After selecting a financial institution, the State Board of Investment must periodically
review each financial institution and the offered products. The periodic review must occur at least
every three years. In making its review, the State Board of Investment may retain appropriate
consulting services to assist it in its periodic review, establish a budget for the cost of the periodic
review process, and charge a proportional share of these costs to the reviewed financial institution.
(c) Contracts with financial institutions under this section must be executed by the board and
must be approved by the State Board of Investment before execution.
(d) The State Board of Investment shall also establish policies and procedures under section
11A.04, clause (2), to carry out the provisions of this subdivision.
    Subd. 4. Benefit ownership. The retirement benefits provided by the annuity contracts
and custodial accounts of the individual retirement account plan are held for the benefit of plan
participants and must be paid according to this chapter and the plan document.
    Subd. 5. Individual retirement account plan administrative expenses. (a) The reasonable
and necessary administrative expenses of the individual retirement account plan may be charged
to plan participants by the plan sponsor in the form of an annual fee, an asset-based fee, a
percentage of the contributions to the plan, or a combination thereof.
(b) Any administrative expense charge that is not actually needed for the administrative
expenses of the individual retirement account plan must be refunded to member accounts.
(c) The Board of Trustees shall report annually, before October 1, to the advisory committee
created in subdivision 1a on administrative expenses of the plan. The report must include a
detailed accounting of charges for administrative expenses collected from plan participants and
expenditure of the administrative expense charges. The administrative expense charges collected
from plan participants must be kept in a separate account from any other funds under control of
the Board of Trustees and may be used only for the necessary and reasonable administrative
expenses of the plan.
History: 1995 c 141 art 4 s 13; 1995 c 212 art 4 s 64; 1997 c 241 art 3 s 7,8; 1998 c 390 art
2 s 11,12; 1999 c 222 art 19 s 9-11; 2001 c 133 s 4; 1Sp2005 c 8 art 8 s 1

354B.26 DEFERRED ANNUITY ENTITLEMENT FOR CERTAIN FORMER TRA
MEMBERS.
Notwithstanding any provision of chapter 354 to the contrary, a person covered by this
chapter who had less than three years of prior allowable service credit in the teachers retirement
association is entitled to a deferred annuity and augmentation under section 354.55, subdivision
11 .
History: 1995 c 141 art 4 s 14

354B.30 PROHIBITION ON LOANS OR PRETERMINATION DISTRIBUTIONS.
(a) No participant may obtain a loan from the plan or obtain any distribution from the plan at
a time before the participant terminates the employment that gave rise to plan coverage.
(b) No amounts to the credit of the plan are assignable either in law or in equity, or are
subject to execution, levy, attachment, garnishment, or other legal process, except as provided in
section 518.58, 518.581, or 518A.53.
History: 1995 c 141 art 4 s 15; 1997 c 203 art 6 s 92; 2003 c 127 art 3 s 21; 2005 c 164 s
29; 1Sp2005 c 7 s 28

354B.31 IRAP PART-TIME TEACHER MOBILITY PROGRAM.
    Subdivision 1. Participation requirements. A faculty member who has three years or more
of service in the Minnesota State Colleges and Universities system, by agreement with the board
or with the authorized representative of the board, may be assigned to teaching service in a
part-time teaching position under subdivision 2.
    Subd. 2. Part-time teaching position; defined. For purposes of this section, "part-time
teaching position" means a teaching position within the Minnesota State Colleges and Universities
system in which the teacher is employed for at least 50 full days or a fractional equivalent as
prescribed in section 354.091, and for which the faculty member is compensated in an amount not
exceeding 80 percent of the compensation established by the board for a full-time faculty member
with identical education and experience with the employing unit.
    Subd. 3. Retirement contributions. A faculty member assigned to a part-time position
under this section shall continue to make employee contributions to the individual retirement
account plan during the period of part-time employment on the same basis and in the same
amounts as would have been paid if the person had been employed on a full-time basis provided
that, prior to June 30 each year, the member and the board make that portion of the required
employer contribution to the plan, 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 person
had been employed on a full-time basis and the amount of compensation actually received by the
person for the services rendered in the part-time assignment. The employing unit shall make that
portion of the required employer contributions to the plan on behalf of the person that is based
on the amount of compensation actually received by the person 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 354B.23. Employee contributions for part-time teaching
service pursuant to this section shall not continue for more than ten years.
    Subd. 4. Other membership precluded. A faculty member entitled to make 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 a volunteer firefighters
relief association governed by sections 69.771 to 69.776.
    Subd. 5. Insurance. If the board enters into an agreement authorized by this section, the
board shall continue 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.
However, the requirements of this subdivision may be modified by a collective bargaining
agreement between a board and an exclusive representative pursuant to chapter 179A. Teachers as
defined in section 136F.43 employed on a less than 75 percent time basis pursuant to this section
are eligible for state paid insurance benefits as if the teachers were employed full time.
    Subd. 6. 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 qualify for employee contributions to the retirement plan for part-time
teaching service under subdivision 4. Notwithstanding 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,
continue to be in the bargaining unit during the period of part-time employment under this section
for purposes of compensation, fringe benefits, and the grievance procedure.
    Subd. 7. Board power not restricted. This section does not limit the authority of the 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 under this section.
    Subd. 8. Substitute teaching. Subdivision 4 does not 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 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 employee contributions to
the retirement plan pursuant to this section.
History: 1999 c 222 art 19 s 12

354B.32 TRANSFER OF FUNDS TO IRAP.
A participant in the individual retirement account plan established in this chapter who has
less than ten years of allowable service under the Teachers Retirement Association or a teachers
retirement fund association, whichever applies, may elect to transfer an amount equal to the
participant's accumulated member contributions to the Teachers Retirement Association or the
applicable teachers retirement fund association, plus compound interest at the rate of six percent
per annum, to the individual retirement account plan. The transfers are irrevocable fund-to-fund
transfers, and, in no event, may the participant receive direct payment of the money transferred
before the termination of employment. If a participant elects the contribution transfer, all of the
participant's allowable and formula service credit in the Teachers Retirement Association or the
teachers retirement fund association associated with the transferred amount is forfeited.
The executive director of the Teachers Retirement Association and the chief administrative
officers of the teachers retirement fund associations, in cooperation with the chancellor of the
Minnesota State Colleges and Universities system, shall notify participants who are eligible to
transfer of their right to transfer and the amount that they are eligible to transfer, and shall, upon
request, provide forms to implement the transfer. The chancellor of the Minnesota State Colleges
and Universities system shall assist the Teachers Retirement Association and the teachers
retirement fund associations in developing transfer forms and in implementing the transfers.
Authority to elect a transfer under this section expires on July 1, 2004.
History: 1Sp2001 c 10 art 12 s 2; 2004 c 267 art 5 s 4

354B.33 MS 2005 Supp [Expired, 1Sp2005 c 1 art 4 s 98]