Subd. 38.

Normal retirement age.

"Normal retirement age" means age deleted text begin 65 for a person
who first became a member of the association or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989. For a person who first becomes a member of
the association after June 30, 1989, normal retirement age means the higher of age 65 or
"retirement age," as defined in United States Code, title 42, section 416(l), as amended, but
not to exceed age 66deleted text end new text begin 62new text end .

Subd. 2.

Election of accelerated annuity.

(a) Any coordinated member who retires
before normal retirement age may elect to receive an optional accelerated retirement annuity
from the association which provides for different annuity amounts over different periods
of retirement. The optional accelerated retirement annuity must take the form of an annuity
payable for the period before the member attains deleted text begin age 65, ordeleted text end normal retirement age, in a
greater amount than the amount of the annuity calculated under section 354.44 on the basis
of the age of the member at retirement, but the optional accelerated retirement annuity must
be the actuarial equivalent of the member's annuity computed on the basis of the member's
age at retirement. The greater amount must be paid until the retiree reaches deleted text begin age 65, ordeleted text end normal
retirement age, and at that time the payment from the association must be reduced. For each
year the retiree is under deleted text begin age 65, ordeleted text end normal retirement age, up to five percent of the total life
annuity required reserves may be used to accelerate the optional retirement annuity under
this section.

deleted text begin (b) Members who retire before age 62 may elect to have the annuity under this subdivision
accelerated to age 62 rather than normal retirement age or age 65.
deleted text end

deleted text begin (c)deleted text end new text begin (b) new text end The method of computing the optional accelerated retirement annuity provided
in this subdivision is established by the board of trustees. In establishing the method of
computing the optional accelerated retirement annuity or any modification of that procedure,
the board of trustees must obtain the written approval of the actuary retained under section
356.214. The written approval must be a part of the permanent records of the board of
trustees. The election of an optional accelerated retirement annuity is exercised by making
an application on a form provided by the executive director.

Subd. 1a.

Proportionate annuity.

A member who terminates employment at any time
during the academic year at the end of which the person is deleted text begin at the normal retirementdeleted text end age new text begin 65
new text end or older shall, for the purpose of determining eligibility for a proportionate retirement
annuity, be considered to have been required to terminate employment at normal retirement
age or older pursuant to section 356.32. For purposes of this subdivision, an academic year
ends August 31.

Subd. 5.

Resumption of teaching service after retirement.

(a) Any person who retired
under the provisions of this chapter and has thereafter resumed teaching in any employer
unit to which this chapter applies is eligible to continue to receive payments in accordance
with the annuity except that all or a portion of the annuity payments must be deferred during
the calendar year immediately following the fiscal year in which the person's salary from
the teaching service is in an amount greater than $46,000. The amount of the annuity deferral
is one-half of the salary amount in excess of $46,000 and must be deducted from the annuity
payable for the calendar year immediately following the fiscal year in which the excess
amount was earned.

(b) If the person is retired for only a fractional part of the fiscal year during the initial
year of retirement, the maximum reemployment salary exempt from triggering a deferral
as specified in this subdivision must be prorated for that fiscal year.

(c) After a person has reached the Social Security deleted text begin normaldeleted text end retirement agenew text begin as defined in
United States Code, title 42, section 416(l), as amendednew text end , no deferral requirement is applicable
regardless of the amount of salary.

(d) The amount of the retirement annuity deferral must be handled or disposed of as
provided in section 356.47.

(e) For the purpose of this subdivision, salary from teaching service includes all salary
or income earned as a teacher as defined in section 354.05, subdivision 2, paragraph (a),
clause (1). Salary from teaching service also includes, but is not limited to:

(1) all income for services performed as a consultant, independent contractor, or
third-party supplier, or as an employee of a consultant, independent contractor, or third-party
supplier, to an employer unit covered by the provisions of this chapter; and

(2) the greater of either the income received or an amount based on the rate paid with
respect to an administrative position, consultant, independent contractor, or third-party
supplier, or as an employee of a consultant, independent contractor, or third-party supplier,
in an employer unit with approximately the same number of pupils and at the same level as
the position occupied by the person who resumes teaching service.

(f) Notwithstanding other paragraphs of this subdivision, if the reemployed annuitant
has a former spouse receiving a portion of the annuity under section 518.58, subdivision 1,
the portion payable to the former spouse must not be deferred.

Subd. 6.

Computation of formula program retirement annuity.

(a) The formula
retirement annuity must be computed in accordance with the applicable provisions of the
formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
section 354.05, subdivision 13a, for the period of the member's formula service credit.

(b) This paragraph, in conjunction with paragraph (c), applies to a person who first
became a member of the association or a member of a pension fund listed in section 356.30,
subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with paragraph (e),
produces a higher annuity amount, in which case paragraph (d) applies. The average salary
as defined in section 354.05, subdivision 13a, multiplied by the following percentages per
year of formula service credit shall determine the amount of the annuity to which the member
qualifying therefor is entitled for service rendered before July 1, 2006:

	Period		Coordinated Member		Basic Member
	Each year of service during first ten		1.2 percent per year		2.2 percent per year
	Each year of service thereafter		1.7 percent per year		2.7 percent per year

For service rendered on or after July 1, 2006, by a member other than a member who
was a member of the former Duluth Teachers Retirement Fund Association between January
1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member
who was a member of the former Duluth Teachers Retirement Fund Association between
January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05,
subdivision 13a, multiplied by the following percentages per year of service credit, determines
the amount the annuity to which the member qualifying therefor is entitled:

	Period		Coordinated Member		Basic Member
	Each year of service during first ten		1.4 percent per year		2.2 percent per year
	Each year of service after ten years of service		1.9 percent per year		2.7 percent per year

(c)(1) This paragraph applies only to a person who first became a member of the
association or a member of a pension fund listed in section 356.30, subdivision 3, before
July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in conjunction