354A.093 BREAK IN SERVICE TO PROVIDE UNIFORMED SERVICE.
Subdivision 1. Eligibility.
Any teacher in the coordinated program of the St. Paul Teachers
Retirement Fund Association or any teacher in the new law coordinated program of the Duluth
Teachers Retirement Fund Association who is absent from employment by reason of service in the
uniformed services as defined in United States Code, title 38, section 4303(13) and who returns to
the employer providing active teaching service upon discharge from uniformed service within the
time frames required under United States Code, title 38, section 4312(e), may receive allowable
service credit in the applicable association for all or a portion of the period of uniformed service,
provided that the teacher did not separate from uniformed service with a dishonorable or bad
conduct discharge or under other than honorable conditions.
Subd. 2. Contributions.
If the teacher makes the equivalent employee contribution for a
period of service provided to the uniformed services under this section, the employing unit shall
make an equivalent employer contribution on behalf of the teacher to the applicable association
for the period being purchased in the manner described in section
354A.12, subdivision 2a
equivalent employee and employer contributions must be in an amount equal to the employee
and employer contribution rates in effect for other active members of the association covered
by the same program applied to a salary figure equal to the teacher's average annual salary
rate that the teacher would have received if the leave or break in service had not occurred, or
if the determination of that average salary rate is not reasonably certain, on the basis of the
teacher's average salary rate during the 12-month period immediately preceding the period, or,
if the preceding period is less than 12 months, the annualized rate derived from the teacher's
average salary rate during the period of teacher employment rendered immediately preceding
the period of uniformed service, with the result multiplied by the number of full and fractional
years constituting the period of service provided to the uniformed service which the teacher
is authorized to purchase under this section.
Subd. 3. Prorating.
If the payments made by a teacher under this section are less than the full
amount determined under subdivision 2, the service credit must be prorated. The prorated service
credit must be determined by the ratio between the amount of the actual equivalent employee
payment which was made and the full equivalent employee payment required under this section.
Subd. 4. Eligible payment period.
(a) To receive service credit under this section, the
contributions specified in this section must be transmitted to the applicable first class city teachers
retirement fund association during the period which begins with the date the individual returns
to teaching service and which has a duration of three times the length of the uniformed service
period, but not to exceed five years.
(b) Notwithstanding paragraph (a), if the payment period determined under paragraph (a) is
less than one year, the contributions required under this section to receive service credit may be
made within one year from the discharge date.
Subd. 5. Limits on service credit.
The amount of service credit obtainable under this section
may not exceed five years, unless a longer purchase period is required under United States Code,
title 38, section 4312.
Subd. 6. Interest requirements.
The employer shall pay interest on all equivalent employee
and employer contribution amounts payable under this section. Interest must be computed at a
rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or break in
service to the end of the month in which payment is received.
History: 1979 c 217 s 8; 1981 c 269 s 3; 1Sp1985 c 12 art 11 s 11; 1996 c 305 art 1 s 88;
2004 c 267 art 3 s 7; 2006 c 277 art 3 s 15