LCPR02-017
1.1 M ............... moves to amend S.F. No. ....; H.F. No.
1.2 ...., as follows:
1.3 Page ..., after line ..., insert:
1.4 "ARTICLE ...
1.5 TEACHER RETIREMENT ASSOCIATION
1.6 EXTENSION OF RULE OF 90 BENEFIT TIER
1.7 Section 1. Minnesota Statutes 2000, section 354.05,
1.8 subdivision 38, is amended to read:
1.9 Subd. 38. NORMAL RETIREMENT AGE. "Normal retirement age"
1.10 means age 65 for a person who first became a member of the
1.11 association or a member of a pension fund listed in section
1.12 356.30, subdivision 3, before July 1, 1989. For a person who
1.13 first becomes a member of the association after June 30, 1989,
1.14 normal retirement age means the higher of age 65 or "retirement
1.15 age," as defined in United States Code, title 42, section
1.16 416(l), as amended, but not to exceed age 66.
1.17 Sec. 2. Minnesota Statutes 2000, section 354.44,
1.18 subdivision 6, is amended to read:
1.19 Subd. 6. COMPUTATION OF FORMULA PROGRAM RETIREMENT
1.20 ANNUITY. (1) (a) The formula retirement annuity must be
1.21 computed in accordance with the applicable provisions of the
1.22 formulas stated in clause (2) paragraph (c) or (4) (e) on the
1.23 basis of each member's average salary for the period of the
1.24 member's formula service credit.
2.1 (b) For all years of formula service credit, "average
2.2 salary," for the purpose of determining the member's retirement
2.3 annuity, means the average salary upon which contributions were
2.4 made and upon which payments were made to increase the salary
2.5 limitation provided in Minnesota Statutes 1971, section 354.511,
2.6 for the highest five successive years of formula service credit
2.7 provided, however, that such "average salary" shall may not
2.8 include any more than the equivalent of 60 monthly salary
2.9 payments. Average salary must be based upon all years of
2.10 formula service credit if this service credit is less than five
2.11 years.
2.12 (2) (c) This clause paragraph, in conjunction with clause
2.13 (3) paragraph (d), applies to a person who first became a member
2.14 of the association or a member of a pension fund listed in
2.15 section 356.30, subdivision 3, before July 1, 1989,
2.16 unless clause (4) paragraph (e), in conjunction with clause
2.17 (5) paragraph (f), produces a higher annuity amount, in which
2.18 case clause (4) paragraph (f) applies. The average salary as
2.19 defined in clause (1) paragraph (b), multiplied by the following
2.20 percentages per year of formula service credit shall determine
2.21 determines the amount of the annuity to which the member
2.22 qualifying therefor is entitled:
2.23 Coordinated Member Basic Member
2.24 Each year of service the percent the percent
2.25 during first ten specified in specified in
2.26 section 356.19, section 356.19,
2.27 subdivision 1, subdivision 3,
2.28 per year per year
2.29 Each year of service the percent the percent
2.30 thereafter specified in specified in
2.31 section 356.19, section 356.19,
2.32 subdivision 2, subdivision 4,
2.33 per year per year
2.34 (3)(i) (d)(1) This clause paragraph applies only to a
2.35 person who first became a member of the association or a member
2.36 of a pension fund listed in section 356.30, subdivision 3,
3.1 before July 1, 1989, and whose if the annuity is higher when
3.2 calculated under clause (2) paragraph (c), in conjunction with
3.3 this clause paragraph than when calculated under clause
3.4 (4) paragraph (e), in conjunction with clause (5) paragraph (f).
3.5 (ii) (2) Where any member retires prior to before the
3.6 normal retirement age under a formula annuity, the member shall
3.7 must be paid a retirement annuity in an amount equal to the
3.8 normal annuity provided in clause (2) paragraph (c) reduced by
3.9 one-quarter of one percent for each month that the member is
3.10 under normal retirement age at the time of retirement except
3.11 that for any member who has 30 or more years of allowable
3.12 service credit, the reduction shall must be applied only for
3.13 each month that the member is under age 62.
3.14 (iii) (3) Any member whose attained age plus credited
3.15 allowable service totals 90 years is entitled, upon application,
3.16 to a retirement annuity in an amount equal to the normal annuity
3.17 provided in clause (2) paragraph (c), without any reduction by
3.18 reason of early retirement.
3.19 (4) (e) This clause paragraph applies to a member who has
3.20 become at least 55 years old and first became a member of the
3.21 association after June 30, 1989, and to any other a member who
3.22 has become is at least 55 years old and whose annuity amount
3.23 when calculated under this clause paragraph and in conjunction
3.24 with clause (5), paragraph (f) is higher than it is when
3.25 calculated under clause (2) paragraph (c), in conjunction
3.26 with clause (3) paragraph (d). The average salary, as defined in
3.27 clause (1) paragraph (b), multiplied by the percent specified by
3.28 section 356.19, subdivision 4, for each year of service for a
3.29 basic member and by the percent specified in section 356.19,
3.30 subdivision 2, for each year of service for a coordinated member
3.31 shall determine determines the amount of the retirement annuity
3.32 to which the member is entitled.
3.33 (5) (f) This clause applies to a person who has become is
3.34 at least 55 years old and first becomes a member of the
3.35 association after June 30, 1989, and to any other member who has
3.36 become at least 55 years old and whose annuity is higher when
4.1 calculated under clause (4) paragraph (e) in conjunction with
4.2 this clause than when calculated under clause (2) paragraph (c),
4.3 in conjunction with clause (3) paragraph (d). An employee who
4.4 retires under the formula annuity before the normal retirement
4.5 age shall must be paid the normal annuity provided in clause (4)
4.6 paragraph (e) reduced so that the reduced annuity is the
4.7 actuarial equivalent of the annuity that would be payable to the
4.8 employee if the employee deferred receipt of the annuity and the
4.9 annuity amount were augmented at an annual rate of three percent
4.10 compounded annually from the day the annuity begins to accrue
4.11 until the normal retirement age.
4.12 Sec. 3. EFFECTIVE DATE.
4.13 Sections 1 and 2 are effective on July 1, 2002."
4.14 Renumber the articles in sequence
4.15 Correct internal cross-references
4.16 Amend the title accordingly