1.1                          A bill for an act
  1.2             relating to retirement; providing for full employer 
  1.3             and employee contributions to the teachers retirement 
  1.4             association for teachers on sabbatical leave; amending 
  1.5             Minnesota Statutes 1996, section 354.092, subdivisions 
  1.6             1, 3, and 4; repealing Minnesota Statutes 1996, 
  1.7             section 354.092, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 354.092, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [DEFINITION.] A sabbatical leave for the 
  1.12  purpose of this section means a sabbatical leave as defined in 
  1.13  section 125.18 or the applicable personnel policy of 
  1.14  the Minnesota state university and community college boards 
  1.15  colleges and universities. 
  1.16     Sec. 2.  Minnesota Statutes 1996, section 354.092, 
  1.17  subdivision 3, is amended to read: 
  1.18     Subd. 3.  [EMPLOYER AND EMPLOYEE CONTRIBUTIONS.] Employer 
  1.19  contributions and deductions for employee contributions at the 
  1.20  applicable rate specified in section 354.42 must be made by the 
  1.21  employing unit from based on the full salary that would have 
  1.22  been paid to the member for a if the member were not on 
  1.23  sabbatical leave.  The member may also make direct payment of 
  1.24  employee contributions at the appropriate rates specified in 
  1.25  section 354.42 based upon the difference between the salary 
  1.26  received for the sabbatical leave and the salary received for a 
  2.1   comparable period during the year immediately preceding the 
  2.2   leave.  This direct payment must be made by the end of the 
  2.3   fiscal year following the fiscal year in which the leave of 
  2.4   absence terminated and must be without interest. 
  2.5      Sec. 3.  Minnesota Statutes 1996, section 354.092, 
  2.6   subdivision 4, is amended to read: 
  2.7      Subd. 4.  [SERVICE CREDIT.] If the employee contributions 
  2.8   made under this section are less than the employee contributions 
  2.9   made for a comparable period during the year immediately 
  2.10  preceding the leave, the allowable and formula service credit of 
  2.11  the member shall be prorated according to section 354.05, 
  2.12  subdivision 25, clause (3), except that if the member is paid 
  2.13  full salary for any sabbatical leave of absence, either past or 
  2.14  prospective, the allowable and formula service credit shall not 
  2.15  be prorated.  A member may not receive more than three years of 
  2.16  allowable service credit in any ten consecutive years under this 
  2.17  section unless the allowable service credit was paid for by the 
  2.18  member before July 1, 1962.  For sabbatical leaves that begin 
  2.19  after June 30, 1986, the required employer contributions 
  2.20  specified in section 354.42 must be paid by the employing unit 
  2.21  within 30 days after the association's written notification to 
  2.22  the employing unit of the amount due.  Notwithstanding the 
  2.23  provisions of any agreements to the contrary, employee and 
  2.24  employer contributions may not be made to receive allowable 
  2.25  service credit under this section if the member does not retain 
  2.26  the right to full reinstatement both during and at the end of 
  2.27  the sabbatical leave. 
  2.28     Sec. 4.  [REPEALER.] 
  2.29     Minnesota Statutes 1996, section 354.092, subdivision 2, is 
  2.30  repealed. 
  2.31     Sec. 5.  [EFFECTIVE DATE.] 
  2.32     Sections 1 to 4 are effective July 1, 1997, and apply to 
  2.33  sabbatical leaves that begin on or after that date.