2006 Minnesota Statutes

354A.27 DULUTH TEACHERS RETIREMENT FUND ASSOCIATION;
POSTRETIREMENT ADJUSTMENT MECHANISM.
    Subdivision 1. Postretirement adjustment modification. Any postretirement adjustment
payable from the Duluth Teachers Retirement Fund Association must be computed and paid
according to this section.
    Subd. 2.[Repealed, 1995 c 262 art 2 s 14]
    Subd. 3.[Repealed, 1995 c 262 art 2 s 14]
    Subd. 4.[Repealed, 1995 c 262 art 2 s 14]
    Subd. 5. Calculation of postretirement adjustments. (a) Annually, after June 30, the board
of trustees determines the amount of any postretirement adjustment using the procedures in
this subdivision and subdivision 6.
(b) Each person who has been receiving an annuity or benefit under the articles of
incorporation, bylaws, or under this section for at least 12 months as of the date of the
postretirement adjustment shall be eligible for a postretirement adjustment. The postretirement
adjustment shall be payable each January 1. The postretirement adjustment shall be equal to two
percent of the annuity or benefit to which the person is entitled one month prior to the payment of
the postretirement adjustment.
    Subd. 6. Additional increase. (a) In addition to the postretirement increases granted
under subdivision 5, an additional percentage increase must be computed and paid under this
subdivision.
(b) The board of trustees shall determine the number of annuitants or benefit recipients
who have been receiving an annuity or benefit for at least 12 months as of the current June 30.
These recipients are entitled to receive the surplus investment earnings additional postretirement
increase.
(c) Annually, as of each June 30, the board shall determine the five-year annualized rate of
return attributable to the assets of the Duluth Teachers Retirement Fund Association under the
formula or formulas specified in section 11A.04, clause (11).
(d) The board shall determine the amount of excess five-year annualized rate of return over
the preretirement interest assumption as specified in section 356.215.
(e) The additional percentage increase must be determined by multiplying the quantity
one minus the rate of contribution deficiency, as specified in the most recent actuarial report of
the actuary retained under section 356.214, times the rate of return excess as determined in
paragraph (d).
(f) The additional increase is payable to all eligible annuitants or benefit recipients on the
following January 1.
History: 1992 c 403 s 1; 1995 c 262 art 2 s 3-5; 2006 c 271 art 3 s 47