A bill for an act
relating to retirement; authorizing eligible employees of the Minnesota State
Colleges and Universities who are members of the higher education individual
retirement account plan to elect coverage by the Teachers Retirement Association
and purchase past service credit; requiring an annual report; appropriating money
for offsetting the cost of service credit purchases; amending Minnesota Statutes
2022, section 354B.20, subdivision 18, by adding subdivisions; proposing coding
for new law in Minnesota Statutes, chapter 354B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 354B.20, is amended by adding a subdivision
to read:
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"IRAP to TRA transfer account" means
the account established under section 354B.215, subdivision 11.
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This section is effective January 1, 2025.
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Minnesota Statutes 2022, section 354B.20, is amended by adding a subdivision to
read:
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"Offset amount" means the lesser of $10,000 or 25 percent
of the cost to purchase the maximum past service credit by an eligible person under section
354B.215, subdivision 6, except that, if the eligible person elects to purchase, under section
354B.215, subdivision 6, paragraph (c), less than the maximum past service credit, the offset
amount must not exceed the cost to purchase the amount of past service credit elected.
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This section is effective January 1, 2025.
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Minnesota Statutes 2022, section 354B.20, subdivision 18, is amended to read:
"Teachers Retirement deleted text begin plandeleted text end new text begin
Associationnew text end " means the retirement plan established by chapter 354.
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This section is effective the day following final enactment.
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(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them, unless the context clearly indicates another
meaning is intended.
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(b) "Executive director" means the executive director of the Teachers Retirement
Association.
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(c) "Individual retirement account plan" means the individual retirement account plan
governed by chapter 354B.
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(d) "Maximum past service credit" means service credit for the period beginning with
the date the eligible person was first covered by the individual retirement account plan to
the transfer date.
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(e) "Minnesota State" means the Minnesota State Colleges and Universities.
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(f) "Transfer date" means the date selected by the executive director under subdivision
5 for the purpose of preparing the estimates required by subdivision 5.
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Notwithstanding any provision of law to the
contrary, an eligible person described in subdivision 3 is authorized to become a member
of the Teachers Retirement Association and purchase service credit upon making an election
under subdivision 6.
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(a) An eligible person is a person who:
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(1) is employed by Minnesota State;
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(2) has an account in the individual retirement account plan; and
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(3) satisfies paragraph (b).
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(b) A person satisfies this paragraph if Minnesota State is not able to produce at least
one of the following items by the end of the 60-day period under subdivision 4, paragraph
(b):
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(1) a record indicating that the person received notice regarding the person's eligibility
to elect prospective coverage by the Teachers Retirement Association within the election
period under section 354B.211, subdivision 4 or 6, or its predecessor;
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(2) a record that the person elected retirement coverage by the individual retirement
account plan; or
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(3) other credible documentation demonstrating that the person was aware of the person's
right to elect retirement coverage by the Teachers Retirement Association.
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(a)
To elect coverage by the Teachers Retirement Association, an eligible person must submit
a written application to the chancellor on a form provided by Minnesota State. The application
must include:
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(1) an attestation that the person was not informed of the right to elect a transfer from
the individual retirement account plan to the Teachers Retirement Association and the person
was unaware of the right to elect such a transfer;
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(2) the date on which the person first became a participant in the individual retirement
account plan;
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(3) a signed release authorizing Minnesota State to provide employment and other
personnel information to the Teachers Retirement Association; and
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(4) any other information that Minnesota State may require.
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(b) No later than 60 days after receipt of the application under paragraph (a), Minnesota
State must verify the information provided by the person in the application, determine
whether the person is an eligible person under subdivision 3, and provide a written response
to the person regarding the determination of eligibility. If Minnesota State determines that
the person is not an eligible person, Minnesota State must include a copy of any
documentation identified in subdivision 3, paragraph (b), in its written response to the
person.
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(c) If Minnesota State determines that the person is an eligible person under subdivision
3, Minnesota State must forward to the executive director: