2006 Minnesota Statutes

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