Bill Text: MN HF1539 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Minnesota State Colleges and Universities system faculty members permitted to elect prospective and retroactive defined benefit coverage for Minnesota State Colleges and Universities system employment.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-04-18 - Introduction and first reading, referred to Government Operations and Elections [HF1539 Detail]
Download: Minnesota-2011-HF1539-Introduced.html
1.2relating to retirement; Teachers Retirement Association; permitting certain
1.3Minnesota State Colleges and Universities system faculty members to elect
1.4prospective and retroactive defined benefit coverage for Minnesota State
1.5Colleges and Universities system employment.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. TEACHERS RETIREMENT ASSOCIATION; COVERAGE
1.8ELECTION FOR CERTAIN MNSCU FACULTY MEMBER.
1.9(a) Notwithstanding any provision to the contrary in Minnesota Statutes, chapter
1.10354B, an eligible person described in paragraph (b) may elect prospective and retroactive
1.11retirement coverage under paragraph (c).
1.12(b) An eligible person is a person who:
1.13(1) was born on February 2, 1978;
1.14(2) was initially employed by the Minnesota State Colleges and Universities system
1.15on a part-time basis at Metropolitan State University on August 27, 2005;
1.16(3) was also additionally employed within the Minnesota State Colleges and
1.17Universities system at Inver Hills Community College and St. Paul College; and
1.18(4) was covered by the higher education individual retirement account plan because
1.19of a failure of Metropolitan State University to advise the eligible person about the
1.20optional election and default retirement coverage provisions of Minnesota Statutes, section
1.21354B.21, subdivisions 2 and 3.
1.22(c) An eligible person may elect retirement coverage by the Teachers Retirement
1.23Association rather than the higher education individual retirement account plan for faculty
1.24employment rendered after the date of the retirement coverage election under this section
1.25and for past Minnesota State Colleges and Universities system faculty employment from
2.1August 27, 2005, until the date of the retirement coverage election. The election must
2.2be made in writing, must be filed with the executive director of the Teachers Retirement
2.3Association, and must be accompanied with any relevant documentation required by the
2.4executive director of the Teachers Retirement Association.
2.5(d) If an eligible person makes the retirement coverage election under paragraph (c),
2.6the eligible person's member contributions to the higher education individual retirement
2.7account plan must be transferred to the Teachers Retirement Association, with any earned
2.8investment returns on those contributions. If the transferred member contributions and
2.9investment earnings are less than the calculated amount of the member contribution that
2.10the eligible person would have made to the Teachers Retirement Association on the
2.11eligible person's compensation from the Minnesota State Colleges and Universities system
2.12for the period from August 27, 2005, to the date of the retirement coverage election, if
2.13the person had been covered by the Teachers Retirement Association during the period,
2.14plus annual compound interest at the rate of 8.5 percent, the eligible person shall pay the
2.15balance of that calculated member contribution obligation within 30 days of the retirement
2.16coverage election. Any payment may be made through an institution-to-institution
2.17transfer from the eligible person's account in the Minnesota state deferred compensation
2.18program or the eligible person's tax-sheltered savings account under the federal Internal
2.19Revenue Code, section 403(b).
2.20(e) Upon the transfer of the equivalent member contribution amount and any
2.21additional payments under paragraph (d), the balance of the eligible person's higher
2.22education individual retirement account plan account must be transferred to the Teachers
2.23Retirement Association. If the amounts under paragraph (d) and the higher education
2.24individual retirement account plan account balance under this paragraph are less than
2.25the prior service credit purchase payment amount calculated under Minnesota Statutes,
2.26section 356.551, the Minnesota State Colleges and Universities system shall pay that
2.27difference within 60 days of the retirement coverage election date.
2.28(f) Upon the transfers and payments under paragraphs (d) and (e), the eligible person
2.29must be credited by the Teachers Retirement Association with allowable and formula
2.30service for Minnesota State Colleges and Universities system employment since August
2.3127, 2005.
2.32(g) The authority to make a retirement coverage election under this section expires
2.33on January 1, 2012.
2.34EFFECTIVE DATE.This section is effective the day following final enactment.
1.3Minnesota State Colleges and Universities system faculty members to elect
1.4prospective and retroactive defined benefit coverage for Minnesota State
1.5Colleges and Universities system employment.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. TEACHERS RETIREMENT ASSOCIATION; COVERAGE
1.8ELECTION FOR CERTAIN MNSCU FACULTY MEMBER.
1.9(a) Notwithstanding any provision to the contrary in Minnesota Statutes, chapter
1.10354B, an eligible person described in paragraph (b) may elect prospective and retroactive
1.11retirement coverage under paragraph (c).
1.12(b) An eligible person is a person who:
1.13(1) was born on February 2, 1978;
1.14(2) was initially employed by the Minnesota State Colleges and Universities system
1.15on a part-time basis at Metropolitan State University on August 27, 2005;
1.16(3) was also additionally employed within the Minnesota State Colleges and
1.17Universities system at Inver Hills Community College and St. Paul College; and
1.18(4) was covered by the higher education individual retirement account plan because
1.19of a failure of Metropolitan State University to advise the eligible person about the
1.20optional election and default retirement coverage provisions of Minnesota Statutes, section
1.21354B.21, subdivisions 2 and 3.
1.22(c) An eligible person may elect retirement coverage by the Teachers Retirement
1.23Association rather than the higher education individual retirement account plan for faculty
1.24employment rendered after the date of the retirement coverage election under this section
1.25and for past Minnesota State Colleges and Universities system faculty employment from
2.1August 27, 2005, until the date of the retirement coverage election. The election must
2.2be made in writing, must be filed with the executive director of the Teachers Retirement
2.3Association, and must be accompanied with any relevant documentation required by the
2.4executive director of the Teachers Retirement Association.
2.5(d) If an eligible person makes the retirement coverage election under paragraph (c),
2.6the eligible person's member contributions to the higher education individual retirement
2.7account plan must be transferred to the Teachers Retirement Association, with any earned
2.8investment returns on those contributions. If the transferred member contributions and
2.9investment earnings are less than the calculated amount of the member contribution that
2.10the eligible person would have made to the Teachers Retirement Association on the
2.11eligible person's compensation from the Minnesota State Colleges and Universities system
2.12for the period from August 27, 2005, to the date of the retirement coverage election, if
2.13the person had been covered by the Teachers Retirement Association during the period,
2.14plus annual compound interest at the rate of 8.5 percent, the eligible person shall pay the
2.15balance of that calculated member contribution obligation within 30 days of the retirement
2.16coverage election. Any payment may be made through an institution-to-institution
2.17transfer from the eligible person's account in the Minnesota state deferred compensation
2.18program or the eligible person's tax-sheltered savings account under the federal Internal
2.19Revenue Code, section 403(b).
2.20(e) Upon the transfer of the equivalent member contribution amount and any
2.21additional payments under paragraph (d), the balance of the eligible person's higher
2.22education individual retirement account plan account must be transferred to the Teachers
2.23Retirement Association. If the amounts under paragraph (d) and the higher education
2.24individual retirement account plan account balance under this paragraph are less than
2.25the prior service credit purchase payment amount calculated under Minnesota Statutes,
2.26section 356.551, the Minnesota State Colleges and Universities system shall pay that
2.27difference within 60 days of the retirement coverage election date.
2.28(f) Upon the transfers and payments under paragraphs (d) and (e), the eligible person
2.29must be credited by the Teachers Retirement Association with allowable and formula
2.30service for Minnesota State Colleges and Universities system employment since August
2.3127, 2005.
2.32(g) The authority to make a retirement coverage election under this section expires
2.33on January 1, 2012.
2.34EFFECTIVE DATE.This section is effective the day following final enactment.
