LCPR03-236
1.1 ............... moves to amend the amendment LCPR03-220 to
1.2 H.F. No. ....; S.F. No. ...., as follows:
1.3 Page 17, delete lines 26 to 36
1.4 Page 18, delete lines 1 to 29
1.5 Page 27, delete lines 10 to 36
1.6 Page 28, delete lines 1 to 3
1.7 Page 30, after line 30, insert:
1.8 "ARTICLE 12
1.9 OMITTED DEDUCTIONS
1.10 Section 1. Minnesota Statutes 2002, section 354.51,
1.11 subdivision 5, is amended to read:
1.12 Subd. 5. PAYMENT OF SHORTAGES. (a) Except as provided in
1.13 paragraph (b), in the event that full required member
1.14 contributions are not deducted from the salary of a teacher,
1.15 payment shall must be made as follows:
1.16 (a) (1) Payment of shortages in member deductions on salary
1.17 earned after June 30, 1957, and prior to before July 1, 1981,
1.18 may be made any time prior to before retirement. Payment shall
1.19 must include interest at an annual rate of 8.5 percent
1.20 compounded annually from the end of the fiscal year in which the
1.21 shortage occurred to the end of the month in which payment is
1.22 made and the interest shall must be credited to the fund. If
1.23 payment of a shortage in deductions is not made, the formula
1.24 service credit of the member shall must be prorated pursuant to
1.25 under section 354.05, subdivision 25, clause (3).
1.26 (b) (2) Payment of shortages in member deductions on salary
1.27 earned after June 30, 1981, shall be are the sole obligation of
1.28 the employing unit and shall be are payable by the employing
1.29 unit upon notification by the executive director of the shortage
1.30 with interest at an annual rate of 8.5 percent compounded
1.31 annually from the end of the fiscal year in which the shortage
1.32 occurred to the end of the month in which payment is made and
1.33 the interest shall must be credited to the fund. Effective July
1.34 1, 1986, the employing unit shall also pay the employer
1.35 contributions as specified in section 354.42, subdivisions 3 and
1.36 5 for such the shortages. If the shortage payment is not paid
2.1 by the employing unit within 60 days of notification, the
2.2 executive director shall certify the amount of the shortage
2.3 payment to the applicable county auditor, who shall spread a
2.4 levy in the amount of the shortage payment over the taxable
2.5 property of the taxing district of the employing unit if the
2.6 employing unit is supported by property taxes, or to the
2.7 commissioner of finance, who shall deduct the amount from any
2.8 state aid or appropriation amount applicable to the employing
2.9 unit if the employing unit is not supported by property taxes.
2.10 (c) (3) Payment may not be made for shortages in member
2.11 deductions on salary earned prior to before July 1, 1957.
2.12 (b) For a person who is employed by the Minnesota state
2.13 colleges and universities system in a faculty position or in an
2.14 eligible unclassified administrative position and whose
2.15 employment was less than 25 percent of a full academic year,
2.16 exclusive of the summer session, for the applicable institution,
2.17 upon the person's election under section 354B.21 of retirement
2.18 coverage under this chapter, the shortage in member deductions
2.19 on the salary for employment by the Minnesota state colleges and
2.20 universities system institution of less than 25 percent of a
2.21 full academic year, exclusive of the summer session, for the
2.22 applicable institution for the most recent 36 months and the
2.23 associated employer contributions must be paid by the Minnesota
2.24 state colleges and universities system institution, plus annual
2.25 compound interest at the rate of 8.5 percent from the end of the
2.26 fiscal year in which the shortage occurred to the end of the
2.27 month in which the teachers retirement association coverage
2.28 election is made. If the shortage payment is not made by the
2.29 institution within 60 days of notification, the executive
2.30 director shall certify the amount of the shortage payment to the
2.31 commissioner of finance, who shall deduct the amount from any
2.32 state appropriation to the system. An individual electing
2.33 coverage under this paragraph shall repay the amount of the
2.34 shortage in member deductions, plus interest, through deduction
2.35 from salary or compensation payments within the first year of
2.36 employment after the election under section 354B.21, subject to
3.1 the limitations in section 16D.16. The Minnesota state colleges
3.2 and universities system may use any means available to recover
3.3 amounts which were not recovered through deductions from salary
3.4 or compensation payments. No payment of the shortage in member
3.5 deductions under this paragraph may be made for a period longer
3.6 than the most recent 36 months.
3.7 Sec. 2. EFFECTIVE DATE; RETROACTIVE APPLICATION.
3.8 (a) Section 1 is effective on July 1, 2004.
3.9 (b) Section 1 applies to shortages in member deductions
3.10 that occurred before the effective date of the section."
3.11 Renumber the articles and sections in sequence
3.12 Correct the internal cross-references
3.13 Amend the title accordingly