Bill Text: MN SF2009 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Teachers retirement association (TRA) deferred annuity augmentation rates revision for certain deferred annuitants
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2012-02-23 - Referred to State Government Innovation and Veterans [SF2009 Detail]
Download: Minnesota-2011-SF2009-Introduced.html
1.2relating to retirement; Teachers Retirement Association; revising deferred
1.3annuity augmentation rates for certain deferred annuitants; amending Minnesota
1.4Statutes 2010, section 354.55, subdivision 11.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 354.55, subdivision 11, is amended to read:
1.7 Subd. 11. Deferred annuity; augmentation. (a) Any person covered under section
1.8354.44, subdivision 6
, who ceases to render teaching service, may leave the person's
1.9accumulated deductions in the fund for the purpose of receiving a deferred annuity
1.10at retirement.
1.11(b) The amount of the deferred retirement annuity is determined by section354.44,
1.12subdivision 6 , and augmented as provided in this subdivision. The required reserves for
1.13the annuity which had accrued when the member ceased to render teaching service must
1.14be augmented, as further specified in this subdivision, by the applicable interestrate rates
1.15compounded annually from the first day of the month following the month during which
1.16the member ceased to render teaching service to the effective date of retirement.
1.17(c) No augmentation isnot creditable if the deferral period is less than three months
1.18or if deferral commenced before July 1, 1971.
1.19(d) For persons who becamecovered employees members before July 1, 2006, and
1.20who terminated service before May 15, 2010, with a deferral period commencing after
1.21June 30, 1971, the annuity must be augmented as follows:
1.22(1) five percent interest compounded annually until January 1, 1981;
1.23(2) three percent interest compounded annually from January 1, 1981, until January
1.241 of the year following the year in which the deferred annuitant attains age 55; and
2.1(3) five percent interest compounded annually from the date established in clause (2)
2.2to the effective date of retirement.
2.3(e) For persons who became members before July 1, 2006, and who terminate
2.4service after May 14, 2010, the annuity must be augmented as follows:
2.5(1) three percent interest compounded annually to January 1 of the year following
2.6the year in which the deferred annuitant attains age 55;
2.7(2) five percent interest compounded annually from the date established in clause (1)
2.8to the effective date of retirement or until June 30, 2012, whichever is earlier; and
2.9(4) (3) two percent interest compounded annually after June 30, 2012, to the
2.10effective date of retirement.
2.11(f) For persons who became members after June 30, 2006, and who terminated
2.12service before May 15, 2010, the interest rate used to augment the deferred annuity is 2.5
2.13percent interest compounded annually to the effective date of retirement.
2.14(e) (g) For persons who become covered employees after June 30, 2006, and who
2.15terminate service after May 14, 2010, the interest rate used to augment the deferred
2.16annuity is 2.5 percent interest compounded annually until June 30, 2012, or until the
2.17effective date of retirement, whichever is earlier, and two percent interest compounded
2.18annually after June 30, 2012, to the effective date of retirement.
2.19(f) (h) If a person has more than one period of uninterrupted service, a separate
2.20average salary determined under section354.44, subdivision 6 , must be used for each
2.21period and the required reserves related to each period must be augmented as specified in
2.22this subdivision. The sum of the augmented required reserves is the present value of the
2.23annuity. For the purposes of this subdivision, "period of uninterrupted service" means a
2.24period of covered teaching service during which the member has not been separated from
2.25active service for more than one fiscal year.
2.26(g) (i) If a person repays a refund, the service restored by the repayment must
2.27be considered as continuous with the next period of service for which the person has
2.28allowable service credit in the Teachers Retirement Association.
2.29(h) (j) If a person does not render teaching service in any one fiscal year or more
2.30consecutive fiscal years and then resumes teaching service, the formula percentages used
2.31from the date of the resumption of teaching service must be those applicable to new
2.32members.
2.33(i) (k) The mortality table and interest rate actuarial assumption used to compute
2.34the annuity must be the applicable mortality table established by the board under section
2.35354.07, subdivision 1
, and the interest rate actuarial assumption under section
356.215 in
2.36effect when the member retires.
3.1(j) (l) In no case may the annuity payable under this subdivision be less than the
3.2amount of annuity payable under section354.44, subdivision 6 .
3.3(k) (m) The requirements and provisions for retirement before normal retirement
3.4age contained in section354.44, subdivision 6 , also apply to an employee fulfilling the
3.5requirements with a combination of service as provided in section354.60 .
3.6(l) (n) The augmentation provided by this subdivision applies to the benefit provided
3.7in section354.46, subdivision 2 .
3.8(m) (o) The augmentation provided by this subdivision does not apply to any period
3.9in which a person is on an approved leave of absence from an employer unit covered
3.10by the provisions of this chapter.
3.11(n) (p) The retirement annuity or disability benefit of, or the survivor benefit payable
3.12on behalf of, a former teacher who terminated service before July 1, 1997, which is not
3.13first payable until after June 30, 1997, must be increased on an actuarial equivalent basis
3.14to reflect the change in the postretirement interest rate actuarial assumption under section
3.15356.215, subdivision 8
, from five percent to six percent under a calculation procedure and
3.16tables adopted by the board as recommended by an approved actuary and approved by the
3.17actuary retained under section356.214 .
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
1.3annuity augmentation rates for certain deferred annuitants; amending Minnesota
1.4Statutes 2010, section 354.55, subdivision 11.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 354.55, subdivision 11, is amended to read:
1.7 Subd. 11. Deferred annuity; augmentation. (a) Any person covered under section
1.9accumulated deductions in the fund for the purpose of receiving a deferred annuity
1.10at retirement.
1.11(b) The amount of the deferred retirement annuity is determined by section
1.12subdivision 6
1.13the annuity which had accrued when the member ceased to render teaching service must
1.14be augmented, as further specified in this subdivision, by the applicable interest
1.15compounded annually from the first day of the month following the month during which
1.16the member ceased to render teaching service to the effective date of retirement.
1.17(c) No augmentation is
1.18or if deferral commenced before July 1, 1971.
1.19(d) For persons who became
1.20who terminated service before May 15, 2010, with a deferral period commencing after
1.21June 30, 1971, the annuity must be augmented as follows:
1.22(1) five percent interest compounded annually until January 1, 1981;
1.23(2) three percent interest compounded annually from January 1, 1981, until January
1.241 of the year following the year in which the deferred annuitant attains age 55; and
2.1(3) five percent interest compounded annually from the date established in clause (2)
2.2to the effective date of retirement.
2.3(e) For persons who became members before July 1, 2006, and who terminate
2.4service after May 14, 2010, the annuity must be augmented as follows:
2.5(1) three percent interest compounded annually to January 1 of the year following
2.6the year in which the deferred annuitant attains age 55;
2.7(2) five percent interest compounded annually from the date established in clause (1)
2.8to the effective date of retirement or until June 30, 2012, whichever is earlier; and
2.9
2.10effective date of retirement.
2.11(f) For persons who became members after June 30, 2006, and who terminated
2.12service before May 15, 2010, the interest rate used to augment the deferred annuity is 2.5
2.13percent interest compounded annually to the effective date of retirement.
2.14
2.15terminate service after May 14, 2010, the interest rate used to augment the deferred
2.16annuity is 2.5 percent interest compounded annually until June 30, 2012, or until the
2.17effective date of retirement, whichever is earlier, and two percent interest compounded
2.18annually after June 30, 2012, to the effective date of retirement.
2.19
2.20average salary determined under section
2.21period and the required reserves related to each period must be augmented as specified in
2.22this subdivision. The sum of the augmented required reserves is the present value of the
2.23annuity. For the purposes of this subdivision, "period of uninterrupted service" means a
2.24period of covered teaching service during which the member has not been separated from
2.25active service for more than one fiscal year.
2.26
2.27be considered as continuous with the next period of service for which the person has
2.28allowable service credit in the Teachers Retirement Association.
2.29
2.30consecutive fiscal years and then resumes teaching service, the formula percentages used
2.31from the date of the resumption of teaching service must be those applicable to new
2.32members.
2.33
2.34the annuity must be the applicable mortality table established by the board under section
2.36effect when the member retires.
3.1
3.2amount of annuity payable under section
3.3
3.4age contained in section
3.5requirements with a combination of service as provided in section
3.6
3.7in section
3.8
3.9in which a person is on an approved leave of absence from an employer unit covered
3.10by the provisions of this chapter.
3.11
3.12on behalf of, a former teacher who terminated service before July 1, 1997, which is not
3.13first payable until after June 30, 1997, must be increased on an actuarial equivalent basis
3.14to reflect the change in the postretirement interest rate actuarial assumption under section
3.16tables adopted by the board as recommended by an approved actuary and approved by the
3.17actuary retained under section
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
