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Chapter 354B

Section 354B.21

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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 Teachers Retirement Association if the person was a member of the former Minneapolis
Teachers Retirement Fund Association 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; 2007 c 134 art 1 s 9

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Revisor of Statutes