1.1 	A bill for an act
1.2 	relating to retirement; Teachers Retirement
1.3 	Association and the individual retirement account
1.4 	plan; correcting a plan election problem; authorizing
1.5 	eligible Minnesota State Colleges and Universities
1.6 	system employees to elect Teachers Retirement
1.7 	Association coverage and receive retroactive coverage.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE
1.10 	TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF PAST
1.11 	SERVICE CREDIT.
 1.12 	(a) An eligible person described in paragraph (b) is
1.13 	authorized to become a coordinated member of the Teachers
1.14 	Retirement Association, and to purchase service and salary
1.15 	credit in the Teachers Retirement Association coordinated plan
1.16 	retroactive from January 1, 1995, upon making an election under
1.17 	paragraph (c) and upon making all required payments under
1.18 	paragraphs (d) and (e).
1.19 	(b) An eligible person is a person who:
1.20 	(1) was born on September 10, 1958;
1.21 	(2) has prior employment covered by the Public Employees
1.22 	Retirement Association general plan;
1.23 	(3) is the director of student support services at North
1.24 	Hennepin Community College;
1.25 	(4) began working at North Hennepin Community College on
1.26 	February 3, 1992, with coverage for that service by the higher
2.1 	education individual retirement account plan; and 
2.2 	(5) was not offered an election of Teachers Retirement
2.3 	Association coverage, as required under Laws 1994, chapter 508,
2.4 	article 1, section 10.
2.5 	(c) To be eligible for coverage by the Teachers Retirement
2.6 	Association, an eligible person must submit a written
2.7 	application to the executive director of the Teachers Retirement
2.8 	Association on a form provided by the Teachers Retirement
2.9 	Association.  The application must include all documentation of
2.10 	the applicability of this section and any other relevant
2.11 	information that the executive director may require.  Teachers
2.12 	Retirement Association plan membership commences as of January
2.13 	1, 2006, for an applicable eligible person, and past salary and
2.14 	service credit is granted from January 1, 1995, as specified in
2.15 	this section, following receipt by the executive director of the
2.16 	written application specified in this paragraph and receipt of
2.17 	the payments specified in paragraphs (d) and (e).  The authority
2.18 	granted by this section is voided if the applicable eligible
2.19 	individual terminates from Minnesota State Colleges and
2.20 	Universities system employment prior to receipt by the executive
2.21 	director of the Teachers Retirement Association of the
2.22 	application specified in this paragraph and amounts specified in
2.23 	paragraphs (d) and (e).  Coverage by the Teachers Retirement
2.24 	Association is in lieu of coverage by the individual retirement
2.25 	account plan.
2.26 	(d) If an eligible person makes an election under paragraph
2.27 	(c), the eligible person shall make, prior to December 31, 2005,
2.28 	a contribution equal to the excess, if any, of the employee
2.29 	contributions that the individual would have made if the
2.30 	Teachers Retirement Association had provided coverage from
2.31 	January 1, 1995, rather than the individual retirement account
2.32 	plan.  These additional contribution amounts shall include 8.5
2.33 	percent annual compound interest computed from the date the
2.34 	contribution would have been made if deducted from salary until
2.35 	paid.  The total amount to be paid under this paragraph shall be
2.36 	determined by the executive director of the Teachers Retirement
3.1 	Association and written notification of the amount required
3.2 	under this paragraph should be transmitted to the eligible
3.3 	individual.
3.4 	(e) If payment is made under paragraph (d), the value of
3.5 	the applicable eligible person's higher education individual
3.6 	retirement account plan account shall be determined as of
3.7 	December 31, 2005.  The executive director of the Teachers
3.8 	Retirement Association shall also compute that account's
3.9 	compounded 1995 value.  The compounded 1995 value is the value
3.10 	of the applicable account as of January 1, 1995, plus 8.5
3.11 	percent annual compound interest on that amount computed from
3.12 	January 1, 1995, to December 31, 2005.  Notwithstanding any law
3.13 	to the contrary, if payment is made under paragraph (d), the
3.14 	value of the applicable eligible person's individual retirement
3.15 	account plan account as of December 31, 2005, minus the
3.16 	compounded 1995 value, shall be transferred to the Teachers
3.17 	Retirement Association on or before January 31, 2006.
3.18 	(f) The Teachers Retirement Association shall determine the
3.19 	full actuarial value imposed upon the Teachers Retirement
3.20 	Association and the Public Employees Retirement Association by
3.21 	this section, under procedures specified in Minnesota Statutes,
3.22 	section 356.551, with recognition that this section may impose
3.23 	additional liabilities on the Teachers Retirement Association,
3.24 	the Public Employees Retirement Association, and any other plan
3.25 	covered under Minnesota Statutes, section 356.30, in which an
3.26 	eligible person had prior coverage.  The Teachers Retirement
3.27 	Association is authorized to utilize the actuary jointly
3.28 	retained under Minnesota Statutes, section 356.214, to make the
3.29 	computations required under this paragraph.
3.30 	(g) From the total amount computed under paragraph (f), the
3.31 	executive director of the Teachers Retirement Association shall
3.32 	subtract the amounts received under paragraphs (d) and (e).  The
3.33 	Minnesota State Colleges and Universities system shall transmit
3.34 	the remaining amount, if any, to the executive director of the
3.35 	Teachers Retirement Association, which in turn shall allocate
3.36 	the amount received under this paragraph between the Teachers
4.1 	Retirement Association and the Public Employees Retirement
4.2 	Association, or other applicable pension fund, as indicated by
4.3 	the actuarial work under paragraph (f).
4.4 	(h) Any payment amount required from the Minnesota State
4.5 	Colleges and Universities system under paragraph (g) shall be
4.6 	transmitted to the Teachers Retirement Association within one
4.7 	month following receipt of amounts transmitted under paragraphs
4.8 	(d) and (e), and following notification from the executive
4.9 	director of the Teachers Retirement Association.  If a payment
4.10 	is required from the Minnesota State Colleges and Universities
4.11 	system under paragraph (g) and payment is not made as required,
4.12 	the executive director of the Teachers Retirement Association
4.13 	must notify the commissioner of finance of this fact and the
4.14 	commissioner of finance must order that amounts required under
4.15 	paragraph (g) shall be deducted from appropriations or state aid
4.16 	to the Minnesota State Colleges and Universities system and be
4.17 	transmitted to the Teachers Retirement Association.

4.18 	Sec. 2. EFFECTIVE DATE.
 4.19 	Section 1 is effective the day following final enactment.