LCPR05-169
1.1 M ............... moves to amend S.F. No. 439; H.F. No.
1.2 2094, as follows:
1.3 Page 32, after line 2, insert:
1.4 "Sec. 52. Minnesota Statutes 2004, section 354A.097,
1.5 subdivision 1, is amended to read:
1.6 Subdivision 1. SERVICE CREDIT PURCHASE AUTHORIZED. A
1.7 teacher who has at least three years of allowable service credit
1.8 with the teachers retirement fund association and who performed
1.9 service in the United States armed forces before becoming a
1.10 teacher as defined in section 354A.011, subdivision 27, or who
1.11 failed to obtain service credit for a military leave of absence
1.12 period under section 354A.093, is entitled to purchase allowable
1.13 service credit for the initial period of enlistment, induction,
1.14 or call to active duty without any voluntary extension by making
1.15 payment under section 356.55 provided 356.551 if the teacher has
1.16 not purchased service credit from another Minnesota defined
1.17 benefit public employee pension plan for the same period of
1.18 service."
1.19 Page 32, after line 9, insert:
1.20 "Sec. 54. Minnesota Statutes 2004, section 356.551, is
1.21 amended to read:
1.22 356.551 POST JULY 1, 2003 2004, PRIOR SERVICE CREDIT
1.23 PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.
1.24 Subdivision 1. APPLICATION. (a) Unless the prior service
1.25 credit purchase authorization special law or general statute
1.26 provision explicitly specifies a different purchase payment
1.27 amount determination procedure, and if section 356.55 has
1.28 expired, this section governs the determination of the prior
1.29 service credit purchase payment amount of any prior service
1.30 credit purchase.
1.31 (b) The purchase payment amount determination procedure
1.32 must recognize any service credit accrued to the purchaser in a
1.33 pension plan enumerated in section 356.30, subdivision 3.
1.34 (c) Any service credit in a Minnesota defined benefit
1.35 public employee pension plan available to be reinstated by the
1.36 purchaser through the repayment of a refund of member or
2.1 employee contributions previously received must be repaid in
2.2 full before any purchase of prior service credit payment is made
2.3 under this section.
2.4 Subd. 2. DETERMINATION. (a) Unless the minimum purchase
2.5 amount set forth in paragraph (c) applies, the prior service
2.6 credit purchase amount is an amount equal to the actuarial
2.7 present value, on the date of payment, as calculated by the
2.8 chief administrative officer of the pension plan and reviewed by
2.9 the actuary retained by the Legislative Commission on Pensions
2.10 and Retirement under section 356.214, of the amount of the
2.11 additional retirement annuity obtained by the acquisition of the
2.12 additional service credit in this section.
2.13 (b) Calculation of this amount must be made using the
2.14 preretirement interest rate applicable to the public pension
2.15 plan specified in section 356.215, subdivision 4d 8, and the
2.16 mortality table adopted for the public pension plan. The
2.17 calculation must assume continuous future service in the public
2.18 pension plan until, and retirement at, the age at which the
2.19 minimum requirements of the fund for normal retirement or
2.20 retirement with an annuity unreduced for retirement at an early
2.21 age, including section 356.30, are met with the additional
2.22 service credit purchased. The calculation must also assume a
2.23 full‑time equivalent salary, or actual salary, whichever is
2.24 greater, and a future salary history that includes annual salary
2.25 increases at the applicable salary increase rate for the plan
2.26 specified in section 356.215, subdivision 4d.
2.27 (c) The prior service credit purchase amount may not be
2.28 less than the amount determined by applying the current employee
2.29 or member contribution rate, the employer contribution rate, and
2.30 the additional employer contribution rate, if any, to the
2.31 person's current annual salary and multiplying that result by
2.32 the number of whole and fraction years of service to be
2.33 purchased.
2.34 (d) Payment must be made in one lump sum within one year of
2.35 the prior service credit authorization. Payment of the amount
2.36 calculated under this section must be made by the applicable
3.1 eligible person.
3.2 (e) However, the current employer or the prior employer
3.3 may, at its discretion, pay all or any portion of the payment
3.4 amount that exceeds an amount equal to the employee contribution
3.5 rates in effect during the period or periods of prior service
3.6 applied to the actual salary rates in effect during the period
3.7 or periods of prior service, plus interest at the rate of 8.5
3.8 percent a year compounded annually from the date on which the
3.9 contributions would otherwise have been made to the date on
3.10 which the payment is made. If the employer agrees to payments
3.11 under this subdivision, the purchaser must make the employee
3.12 payments required under this subdivision within 290 90 days of
3.13 the prior service credit authorization. If that employee
3.14 payment is made, the employer payment under this subdivision
3.15 must be remitted to the chief administrative officer of the
3.16 public pension plan within 60 days of receipt by the chief
3.17 administrative officer of the employee payments specified under
3.18 this subdivision.
3.19 Subd. 3. DOCUMENTATION. The prospective prior service
3.20 credit purchaser must provide any relevant documentation
3.21 required by the chief administrative officer of the applicable
3.22 public pension plan to determine eligibility for the prior
3.23 service credit under this section.
3.24 Subd. 4. PAYMENT PRECONDITION FOR CREDIT GRANT. Service
3.25 credit for the purchase period must be granted by the public
3.26 pension plan to the purchaser upon receipt of the full purchase
3.27 payment amount specified in subdivision 2."
3.28 Renumber the sections in sequence
3.29 Correct the internal references
3.30 Amend the title accordingly