as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; authorizing purchase of 1.3 service credit in the teachers retirement association 1.4 and the first class city teachers retirement fund 1.5 associations for voluntary service under federal law; 1.6 amending Minnesota Statutes 1998, sections 354.53; and 1.7 354A.093. 1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 Section 1. Minnesota Statutes 1998, section 354.53, is 1.10 amended to read: 1.11 354.53 [MILITARY SERVICE CREDIT.] 1.12 Subdivision 1. [EMPLOYEE AND EMPLOYER CONTRIBUTIONS.] 1.13AnyAn employee given a leave of absence to enter military 1.14 service or voluntary service under federal law and who returns 1.15 to teaching service upon discharge from military service as 1.16 provided in section 192.262, or upon completion of voluntary 1.17 service, may obtain credit for the period ofmilitarythat 1.18 service butshallmay not receive credit for any voluntary 1.19 extension ofmilitaryservice at the instance of the member 1.20 beyond the initial period of enlistment, induction, or call to 1.21 active duty or voluntary service. The membershallmay obtain 1.22 credit by paying into the fund an employee contribution based 1.23 upon the contribution rates in effect at the time that the 1.24 military or voluntary service was performed multiplied by the 1.25 annual salary rate of the member for the year beginning with the 1.26 date of return from military or voluntary service and the number 2.1 of years ofmilitaryservice together with interestthereonon 2.2 that contribution at an annual rate of 8.5 percent compounded 2.3 annually from the time themilitaryservice was rendered to the 2.4 first date of payment. The employer contribution and additional 2.5 contribution provided in section 354.42 must be paid by the 2.6 employing unit at the rates in effect at the time that the 2.7 military or voluntary service was performed, applied to the 2.8 annual salary rate of the member for the year beginning with the 2.9 date of return frommilitaryservice,in the manner providedas 2.10 specified in section 354.52, subdivision 4. 2.11 Subd. 2. [CALCULATION OF CREDIT.]AllPayments into the 2.12 fundpursuant tounder this sectionshall beare considered 2.13 accumulations after July 1, 1957, for the purpose of computing 2.14anyan annuity in accordance with section 354.44, subdivision 2. 2.15 If the contributions and interestthereon provided inrequired 2.16 by this section are not paid in full, the member's formula 2.17 service creditshallmust be calculated by multiplying the 2.18 number of years of military or voluntary service by the ratio 2.19 obtained by the total amount paid and the maximum amount payable 2.20provided hereinunder this section. 2.21 Subd. 3. [PAYMENTS.] Paymentspursuant tounder this 2.22 sectionshallmust be made within five years from the date of 2.23 discharge from military service or completion of voluntary 2.24 service. 2.25 Sec. 2. Minnesota Statutes 1998, section 354A.093, is 2.26 amended to read: 2.27 354A.093 [MILITARY OR VOLUNTARY SERVICE CREDIT.] 2.28AnyA teacher in the coordinated program of either the 2.29 Minneapolis teachers retirement fund association or the St. 2.30 Paul teachers retirement fund association or any teacher in the 2.31 new law coordinated program of the Duluth teachers retirement 2.32 fund association who is granted a leave of absence to enter 2.33 military service or voluntary service under federal law and who 2.34 returns to active teaching service upon discharge from military 2.35 service as provided in section 192.262,shall beor upon 2.36 completion of voluntary service, is entitled to receive 3.1 allowable service credit in the applicable association for all 3.2 or a portion of the period ofmilitarythat service, but not for 3.3 any voluntary extension ofmilitaryservice beyond the initial 3.4 period of enlistment, inductionor, call to active dutywhichor 3.5 voluntary service that occurred at the instance of the teacher. 3.6 If the teacher granted themilitaryservice leave of absence 3.7 makes the employee contribution for a period ofmilitaryservice 3.8 leave of absencepursuant tounder this section, the employing 3.9 unit shall make an employer contribution on behalf of the 3.10 teacher to the applicable association for the period of the 3.11militaryservice leave of absencein the manner describedas 3.12 specified in section 354A.12, subdivision 2a. The employee and 3.13 employer contributionsshallmust be in an amount equal to the 3.14 employee and employer contribution rates in effect for other 3.15 active members of the association covered by the same program 3.16 applied to a salary figure equal to the teacher's annual salary 3.17 rate at the date of return from military or voluntary service, 3.18 multiplied by the number of years constituting the period of the 3.19militaryservice leave of absencewhichthe teacher seeks to 3.20 purchase. Paymentshallmust include interest on the amount 3.21 payablepursuant tounder this section at the rate of six 3.22 percent compounded annually from the year themilitaryservice 3.23 was rendered to the date of payment. If the payments made by a 3.24 teacherpursuant tounder this section are less than an amount 3.25 equal to the applicable contribution rate applied to a salary 3.26 figure equal to the teacher's annual salary rate at the date of 3.27 return from military or voluntary service, multiplied by the 3.28 number of years constituting the period of themilitaryservice 3.29 leave of absence, service creditshallmust be prorated. The 3.30 prorated service creditshallmust be determined by the ratio 3.31 between the amount of the actual paymentwhich wasmade and the 3.32 full contribution amount payablepursuant tounder this 3.33 section.In orderTo be entitled to receive service credit 3.34 under this section, paymentshallmust be made within five years 3.35 from the date of discharge from military service or completion 3.36 of voluntary service.