Bill Text: MN SF2749 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minnesota state colleges and universities system (MnSCU) employees election of teachers retirement association coverage and retroactive eligibility coverage authorization
Spectrum: Partisan Bill (Independent 2-0)
Status: (Introduced - Dead) 2014-03-17 - Referred to State and Local Government [SF2749 Detail]
Download: Minnesota-2013-SF2749-Introduced.html
1.2 relating to retirement; Teachers Retirement Association and the individual
1.3retirement account plan; correcting a plan election provision; authorizing eligible
1.4Minnesota State Colleges and Universities system employees to elect Teachers
1.5Retirement Association coverage and to receive retroactive coverage.
1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE
1.8TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF
1.9PAST SERVICE CREDIT.
1.10 (a) An eligible person described in paragraph (b) is authorized to become a
1.11coordinated member of the Teachers Retirement Association and to purchase service
1.12and salary credit in the Teachers Retirement Association coordinated plan retroactively
1.13from January 1, 1995, upon making an election under paragraph (c) and upon making all
1.14required payments under paragraphs (d) and (e).
1.15 (b) An eligible person is a person who:
1.16 (1) was born on October 29, 1957;
1.17 (2) has been employed at Mesabi Range Community and Technical College as
1.18an instructor since 1993;
1.19 (3) in 1994 was classified in the unlimited part-time category;
1.20 (4) became eligible for and was covered by the higher education individual
1.21retirement account plan in January 1994; and
1.22 (5) was not offered an election of Teachers Retirement Association coverage, as
1.23required under Laws 1994, chapter 508, article 1, section 10.
1.24 (c) To be eligible for coverage by the Teachers Retirement Association, an eligible
1.25person must submit a written application to the executive director of the Teachers
2.1Retirement Association on a form provided by the Teachers Retirement Association. The
2.2application must include all documentation of the applicability of this section and any
2.3other relevant information that the executive director may require. Teachers Retirement
2.4Association plan membership commences as of September 1, 2014, for an applicable
2.5eligible person, and past salary and service credit is granted from January 1, 1995,
2.6as specified in this section, following receipt by the executive director of the written
2.7application specified in this paragraph and receipt of the payments specified in paragraphs
2.8(d) and (e). The authority granted by this section is voided if the applicable eligible
2.9individual terminates from Minnesota State Colleges and Universities system employment
2.10prior to receipt by the executive director of the Teachers Retirement Association of the
2.11application specified in this paragraph and amounts specified in paragraphs (d) and (e).
2.12Coverage by the Teachers Retirement Association is in lieu of coverage by the individual
2.13retirement account plan.
2.14 (d) If an eligible person makes an election under paragraph (c), the eligible person
2.15shall make, before September 1, 2014, a contribution equal to the excess, if any, of the
2.16employee contributions that the individual would have made if the Teachers Retirement
2.17Association had provided coverage from January 1, 1995, rather than the individual
2.18retirement account plan. These additional contribution amounts shall include 8.5 percent
2.19annual compound interest computed from the date the contribution would have been made
2.20if deducted from salary until paid. The total amount to be paid under this paragraph shall
2.21be determined by the executive director of the Teachers Retirement Association and
2.22written notification of the amount required under this paragraph should be transmitted
2.23to the eligible individual.
2.24 (e) If payment is made under paragraph (d), the value of the applicable eligible
2.25person's higher education individual retirement account plan account shall be determined
2.26as of September 1, 2014. The executive director of the Teachers Retirement Association
2.27shall also compute that account's compounded 1995 value. The compounded 1995 value
2.28is the value of the applicable account as of January 1, 1995, plus 8.5 percent annual
2.29compound interest on that amount computed from January 1, 1995, to September 1,
2.302014. Notwithstanding any law to the contrary, if payment is made under paragraph (d),
2.31the value of the applicable eligible person's individual retirement account plan account
2.32as of September 1, 2014, minus the compounded 1995 value, shall be transferred to the
2.33Teachers Retirement Association on or before September 15, 2014.
2.34 (f) The Teachers Retirement Association shall determine the full actuarial value
2.35imposed upon the Teachers Retirement Association under this section due to the salary
2.36and service credit purchase.
3.1 (g) From the total amount computed under paragraph (f), the executive director of the
3.2Teachers Retirement Association shall subtract the amounts received under paragraphs (d)
3.3and (e). The Minnesota State Colleges and Universities system is authorized to transmit the
3.4remaining amount, if any, to the executive director of the Teachers Retirement Association.
3.5 (h) Any payment amount specified from the Minnesota State Colleges and
3.6Universities system under paragraph (g) shall be transmitted to the Teachers Retirement
3.7Association within one month following receipt of amounts transmitted under paragraphs
3.8(d) and (e), and following notification from the executive director of the Teachers
3.9Retirement Association. If a payment from the Minnesota State Colleges and Universities
3.10system specified under paragraph (g) is not made, the executive director of the Teachers
3.11Retirement Association must notify the commissioner of Minnesota Management and
3.12Budget of this fact and that commissioner must order that amounts specified under
3.13paragraph (g) shall be deducted from appropriations or state aid to the Minnesota
3.14State Colleges and Universities system and be transmitted to the Teachers Retirement
3.15Association.
3.16EFFECTIVE DATE.This section is effective the day following final enactment.
3.17 Sec. 2. PROSPECTIVE TRA COVERAGE; SERVICE CREDIT PURCHASE;
3.18IDENTIFICATION OF ELIGIBLE PERSONS NOT OFFERED ELECTION.
3.19(a) An eligible person is a person who:
3.20(1) was employed during all or part of the period from January 1, 1994, to December
3.2131, 1995, by a Minnesota state college, state university, or community college under the
3.22authority of the Minnesota State Colleges and Universities system board or a predecessor
3.23organization;
3.24(2) is currently employed in the Minnesota State Colleges and Universities system
3.25with coverage by the higher education individual retirement account plan;
3.26(3) has not commenced receipt of any assets or benefits derived from the individual
3.27retirement account plan account, or commenced receipt of any benefits from the Teachers
3.28Retirement Association, or any first class city teachers retirement association plan; and
3.29(4) should have been offered an election of plan coverage under Laws 1994,
3.30chapter 508, article 1, section 10, but was not offered that election due to a failure by
3.31the Minnesota State Colleges and Universities system board or its agents to identify all
3.32persons eligible for those elections.
3.33(b) Notwithstanding any law to the contrary, a person specified in paragraph (a) is
3.34eligible for the treatment specified in section 1.
4.1(c) The board of the Minnesota State Colleges and Universities system or its agent
4.2shall notify by certified mail all persons identified in paragraph (a) by July 15, 2014, of
4.3their eligibility under this section.
4.4Before February 1, 2015, the board of the Minnesota State Colleges and Universities
4.5system shall report to the executive director of the Legislative Commission on Pensions
4.6and Retirement on the number of persons identified under this section, the number electing
4.7Teachers Retirement Association coverage, and the payment transmitted by the Minnesota
4.8State Colleges and Universities system to the Teachers Retirement Association in each
4.9case, either through direct payment or aid or appropriation reallocation.
4.10(e) This section does not apply to an eligible person specified in section 1.
4.11(f) This section does not apply to a person specified in Laws 2006, chapter 271,
4.12article 14, section 8.
4.13(g) This section expires on July 1, 2015.
4.14EFFECTIVE DATE.This section is effective the day following final enactment.
1.3retirement account plan; correcting a plan election provision; authorizing eligible
1.4Minnesota State Colleges and Universities system employees to elect Teachers
1.5Retirement Association coverage and to receive retroactive coverage.
1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE
1.8TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF
1.9PAST SERVICE CREDIT.
1.10 (a) An eligible person described in paragraph (b) is authorized to become a
1.11coordinated member of the Teachers Retirement Association and to purchase service
1.12and salary credit in the Teachers Retirement Association coordinated plan retroactively
1.13from January 1, 1995, upon making an election under paragraph (c) and upon making all
1.14required payments under paragraphs (d) and (e).
1.15 (b) An eligible person is a person who:
1.16 (1) was born on October 29, 1957;
1.17 (2) has been employed at Mesabi Range Community and Technical College as
1.18an instructor since 1993;
1.19 (3) in 1994 was classified in the unlimited part-time category;
1.20 (4) became eligible for and was covered by the higher education individual
1.21retirement account plan in January 1994; and
1.22 (5) was not offered an election of Teachers Retirement Association coverage, as
1.23required under Laws 1994, chapter 508, article 1, section 10.
1.24 (c) To be eligible for coverage by the Teachers Retirement Association, an eligible
1.25person must submit a written application to the executive director of the Teachers
2.1Retirement Association on a form provided by the Teachers Retirement Association. The
2.2application must include all documentation of the applicability of this section and any
2.3other relevant information that the executive director may require. Teachers Retirement
2.4Association plan membership commences as of September 1, 2014, for an applicable
2.5eligible person, and past salary and service credit is granted from January 1, 1995,
2.6as specified in this section, following receipt by the executive director of the written
2.7application specified in this paragraph and receipt of the payments specified in paragraphs
2.8(d) and (e). The authority granted by this section is voided if the applicable eligible
2.9individual terminates from Minnesota State Colleges and Universities system employment
2.10prior to receipt by the executive director of the Teachers Retirement Association of the
2.11application specified in this paragraph and amounts specified in paragraphs (d) and (e).
2.12Coverage by the Teachers Retirement Association is in lieu of coverage by the individual
2.13retirement account plan.
2.14 (d) If an eligible person makes an election under paragraph (c), the eligible person
2.15shall make, before September 1, 2014, a contribution equal to the excess, if any, of the
2.16employee contributions that the individual would have made if the Teachers Retirement
2.17Association had provided coverage from January 1, 1995, rather than the individual
2.18retirement account plan. These additional contribution amounts shall include 8.5 percent
2.19annual compound interest computed from the date the contribution would have been made
2.20if deducted from salary until paid. The total amount to be paid under this paragraph shall
2.21be determined by the executive director of the Teachers Retirement Association and
2.22written notification of the amount required under this paragraph should be transmitted
2.23to the eligible individual.
2.24 (e) If payment is made under paragraph (d), the value of the applicable eligible
2.25person's higher education individual retirement account plan account shall be determined
2.26as of September 1, 2014. The executive director of the Teachers Retirement Association
2.27shall also compute that account's compounded 1995 value. The compounded 1995 value
2.28is the value of the applicable account as of January 1, 1995, plus 8.5 percent annual
2.29compound interest on that amount computed from January 1, 1995, to September 1,
2.302014. Notwithstanding any law to the contrary, if payment is made under paragraph (d),
2.31the value of the applicable eligible person's individual retirement account plan account
2.32as of September 1, 2014, minus the compounded 1995 value, shall be transferred to the
2.33Teachers Retirement Association on or before September 15, 2014.
2.34 (f) The Teachers Retirement Association shall determine the full actuarial value
2.35imposed upon the Teachers Retirement Association under this section due to the salary
2.36and service credit purchase.
3.1 (g) From the total amount computed under paragraph (f), the executive director of the
3.2Teachers Retirement Association shall subtract the amounts received under paragraphs (d)
3.3and (e). The Minnesota State Colleges and Universities system is authorized to transmit the
3.4remaining amount, if any, to the executive director of the Teachers Retirement Association.
3.5 (h) Any payment amount specified from the Minnesota State Colleges and
3.6Universities system under paragraph (g) shall be transmitted to the Teachers Retirement
3.7Association within one month following receipt of amounts transmitted under paragraphs
3.8(d) and (e), and following notification from the executive director of the Teachers
3.9Retirement Association. If a payment from the Minnesota State Colleges and Universities
3.10system specified under paragraph (g) is not made, the executive director of the Teachers
3.11Retirement Association must notify the commissioner of Minnesota Management and
3.12Budget of this fact and that commissioner must order that amounts specified under
3.13paragraph (g) shall be deducted from appropriations or state aid to the Minnesota
3.14State Colleges and Universities system and be transmitted to the Teachers Retirement
3.15Association.
3.16EFFECTIVE DATE.This section is effective the day following final enactment.
3.17 Sec. 2. PROSPECTIVE TRA COVERAGE; SERVICE CREDIT PURCHASE;
3.18IDENTIFICATION OF ELIGIBLE PERSONS NOT OFFERED ELECTION.
3.19(a) An eligible person is a person who:
3.20(1) was employed during all or part of the period from January 1, 1994, to December
3.2131, 1995, by a Minnesota state college, state university, or community college under the
3.22authority of the Minnesota State Colleges and Universities system board or a predecessor
3.23organization;
3.24(2) is currently employed in the Minnesota State Colleges and Universities system
3.25with coverage by the higher education individual retirement account plan;
3.26(3) has not commenced receipt of any assets or benefits derived from the individual
3.27retirement account plan account, or commenced receipt of any benefits from the Teachers
3.28Retirement Association, or any first class city teachers retirement association plan; and
3.29(4) should have been offered an election of plan coverage under Laws 1994,
3.30chapter 508, article 1, section 10, but was not offered that election due to a failure by
3.31the Minnesota State Colleges and Universities system board or its agents to identify all
3.32persons eligible for those elections.
3.33(b) Notwithstanding any law to the contrary, a person specified in paragraph (a) is
3.34eligible for the treatment specified in section 1.
4.1(c) The board of the Minnesota State Colleges and Universities system or its agent
4.2shall notify by certified mail all persons identified in paragraph (a) by July 15, 2014, of
4.3their eligibility under this section.
4.4Before February 1, 2015, the board of the Minnesota State Colleges and Universities
4.5system shall report to the executive director of the Legislative Commission on Pensions
4.6and Retirement on the number of persons identified under this section, the number electing
4.7Teachers Retirement Association coverage, and the payment transmitted by the Minnesota
4.8State Colleges and Universities system to the Teachers Retirement Association in each
4.9case, either through direct payment or aid or appropriation reallocation.
4.10(e) This section does not apply to an eligible person specified in section 1.
4.11(f) This section does not apply to a person specified in Laws 2006, chapter 271,
4.12article 14, section 8.
4.13(g) This section expires on July 1, 2015.
4.14EFFECTIVE DATE.This section is effective the day following final enactment.
