1.1 	A bill for an act
1.2 	relating to retirement; higher education individual
1.3 	retirement account plan; permitting up to five years
1.4 	to elect between defined benefit and defined
1.5 	contribution plan coverage; amending Minnesota
1.6 	Statutes 2004, section 354B.21, subdivisions 2, 3.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 354B.21,
1.9 	subdivision 2, is amended to read:
1.10 		Subd. 2.Coverage; election.  (a) An eligible person is
1.11 	entitled to elect coverage by the plan.  If the eligible person
1.12 	does not make a timely election of coverage by the plan, the
1.13 	person has the coverage specified in subdivision 3.
1.14 	(b) For eligible persons who were employed by the former
1.15 	state university system or the former community college system
1.16 	before May 1, 1995, the person has the retirement coverage that
1.17 	the person had for employment immediately before May 1, 1995.
1.18 	(c) (b) For all other eligible persons, the election of
1.19 	coverage must be made within 90 days of May 10, 1995, or 90 days
1.20 	of receiving notice from the employer of the options available
1.21 	under this section, whichever occurs later unless otherwise
1.22 	specified in this section, the eligible person is authorized to
1.23 	elect prospective Teachers Retirement Association plan coverage
1.24 	rather than coverage by the plan established by this chapter.
1.25 	The election of prospective Teachers Retirement Association plan
1.26 	coverage shall be made within five years of commencing eligible
2.1 	Minnesota State Colleges and Universities system employment.  If
2.2 	an election is not made within the specified election period due
2.3 	to a termination of Minnesota State Colleges and Universities
2.4 	system employment, an election may be made within 90 days of
2.5 	returning to eligible Minnesota State Colleges and Universities
2.6 	system employment.  All elections are irrevocable.  Prior to
2.7 	making an election the eligible person shall be covered by the
2.8 	plan indicated as default coverage under subdivision 3.
2.9 	(c) A purchase of service credit in the Teachers Retirement
2.10 	Association plan for any period or periods of Minnesota State
2.11 	Colleges and Universities system employment occurring prior to
2.12 	the election under paragraph (b) is prohibited.

2.13 	Sec. 2. Minnesota Statutes 2004, section 354B.21,
2.14 	subdivision 3, is amended to read:
2.15 		Subd. 3.Default coverage.  (a) Prior to making an
2.16 	election under subdivision 2, or if an eligible person fails to
2.17 	elect coverage by the plan under subdivision 2 or if the person
2.18 	fails to make a timely election, the following retirement
2.19 	coverage applies:
2.20 	(1) for employees of the board who are employed in faculty
2.21 	positions in the technical colleges, in the state universities
2.22 	or in the community colleges, the retirement coverage is by the
2.23 	plan established by this chapter;
2.24 	(2) for employees of the board who are employed in faculty
2.25 	positions in the technical colleges, the retirement coverage is
2.26 	by the plan established by this chapter unless on June 30, 1997,
2.27 	the employee was a member of the Teachers Retirement Association
2.28 	established under chapter 354 and then the retirement coverage
2.29 	is by the Teachers Retirement Association, or, unless the
2.30 	employee was a member of a first class city teacher retirement
2.31 	fund established under chapter 354A on June 30, 1995, and then
2.32 	the retirement coverage is by the Duluth Teachers Retirement
2.33 	Fund Association if the person was a member of that plan on June
2.34 	30, 1995, or the Minneapolis Teachers Retirement Fund
2.35 	Association if the person was a member of that plan on June 30,
2.36 	1995, or the St. Paul Teachers Retirement Fund Association if
3.1 	the person was a member of that plan on June 30, 1995; and
3.2 	(3) for employees of the board who are employed in eligible
3.3 	unclassified administrative positions, the retirement coverage
3.4 	is by the plan established by this chapter.
3.5 	(b) If an employee fails to correctly certify prior
3.6 	membership in the Teachers Retirement Association to the
3.7 	Minnesota State colleges and Universities system, the system
3.8 	shall not pay interest on employee contributions, employer
3.9 	contributions, and additional employer contributions to the
3.10 	Teachers Retirement Association under section 354.52,
3.11 	subdivision 4.

3.12 	Sec. 3. EFFECTIVE DATE.
 3.13 	Sections 1 and 2 are effective the day following final
3.14 	enactment.