LCPR04-003
1.1 ............... moves to amend H.F. No. 282; S.F. No. 213,
1.2 as follows:
1.3 Delete everything after the enacting clause and insert:
1.4 "Section 1. 354.551 ADDITIONAL BENEFIT FOR CERTAIN
1.5 TEACHERS WHO DECLINED THE IMPROVED MONEY PURCHASE PROGRAM.
1.6 Subdivision 1. AD HOC POSTRETIREMENT ADJUSTMENT FOR
1.7 CERTAIN PRE-1969 TEACHERS. (a) Eligible retired teachers as
1.8 defined in paragraph (b) are entitled to receive an increase in
1.9 their retirement annuity, effective July 1, 2004, unless the
1.10 applicable person files a written notification with the
1.11 executive director of the Teachers Retirement Association that
1.12 the additional benefit not be paid. The increase amount is ...
1.13 percent of the retirement annuity amount initially payable upon
1.14 retirement, unless otherwise limited under this section.
1.15 (b) An eligible person for purposes of this subdivision is
1.16 a person who:
1.17 (1) was a teacher as defined in section 354.05, subdivision
1.18 2;
1.19 (2) rendered teaching service as defined in section 354.05,
1.20 subdivision 3, either during the 1968-1969 school year, but was
1.21 not covered by the improved money purchase program savings
1.22 clause, section 354.55, subdivision 17, or before the 1968-1969
1.23 school year, did not take a refund of member contributions upon
1.24 the termination of teacher service, and was eligible to make an
1.25 election under Minnesota Statutes 1971, section 354.55,
1.26 subdivision 8; and
1.27 (3) retired after January 15, 1998.
1.28 Subd. 2. DETERMINATION AND LIMITATION OF ADDITIONAL
1.29 BENEFIT AMOUNT. (a) By October 1, 2004, the executive director
1.30 of the Teachers Retirement Association shall determine which
1.31 active or retired teachers are eligible to receive an additional
1.32 benefit amount under this section and the amount of each
1.33 person's additional benefit amount.
1.34 (b) The total actuarial present value of the additional
1.35 benefit amounts payable under this section, calculated using the
1.36 post retirement interest rate assumption applicable to the
2.1 Teachers Retirement Association and the applicable post
2.2 retirement mortality table, must not exceed $... million.
2.3 (c) The executive director shall calculate, for each
2.4 eligible person under paragraph (a), the actuarial present value
2.5 of the benefit increase specified in subdivision 1, calculated
2.6 using the actuarial assumptions specified in paragraph (b). The
2.7 calculation shall be based on the same optional annuity form
2.8 selection as applies to the current retirement annuity if the
2.9 person is retired or a single life annuity if the person is not
2.10 retired.
2.11 (d) The executive director shall total the actuarial
2.12 present value amounts under paragraph (c). If the total present
2.13 value amount is greater than the maximum dollar amount specified
2.14 in paragraph (b), the executive director shall divide the
2.15 maximum dollar amount specified in paragraph (b) by the total
2.16 present value amount calculated under this paragraph.
2.17 (e) If the total present value amount calculated under
2.18 paragraph (d) is equal to or less than the maximum dollar amount
2.19 specified in paragraph (b), the additional retirement annuity
2.20 payable to each eligible retired teacher is the increase
2.21 specified in subdivision 1. If the total present value amount
2.22 calculated under paragraph (d) is greater than the maximum
2.23 dollar amount specified in paragraph (b), the additional
2.24 retirement annuity payable to each eligible retired teacher is
2.25 the increase specified in subdivision 1 multiplied by the
2.26 proportional factor calculated under paragraph (d).
2.27 (f) The additional retirement annuity is payable beginning
2.28 November 1, 2004, for persons who were receiving a retirement
2.29 annuity on June 1, 2004, or with the initial retirement annuity
2.30 payment for persons who were active, deferred, or inactive
2.31 members on June 1, 2004. The additional retirement annuity must
2.32 be included in the base for any post retirement adjustment
2.33 payable under section 11A.18. The applicable required reserves
2.34 amount must be transferred on November 1, 2004, for persons who
2.35 were receiving a retirement annuity on June 1, 2004, or on the
2.36 date of retirement for persons who were active, deferred, or
3.1 inactive members on June 1, 2004.
3.2 Subd. 3. DURATION OF ADDITIONAL BENEFIT. The additional
3.3 benefit amount is payable for life or for the duration of the
3.4 selected optional annuity form, whichever applies.
3.5 Subd. 4. NO PAYMENT TO ESTATE; NO RETROACTIVITY. (a)
3.6 Nothing in this section authorizes the payment of an additional
3.7 benefit amount under this section to an estate or to a survivor
3.8 or beneficiary other than under an optional annuity form.
3.9 (b) Nothing in this section authorizes the payment of an
3.10 additional benefit amount for any period before November 1, 2004.
3.11 (c) Nothing in this section authorizes the payment of an
3.12 additional benefit amount to a person who was or is entitled to
3.13 have their retirement annuity calculated under section 354.44,
3.14 subdivision 2.
3.15 Subd. 5. REPORT. (a) On January 15, 2005, and annually
3.16 thereafter until the January 15 occurring after the last
3.17 eligible person retires, the executive director shall prepare
3.18 and file a report on the additional benefit amounts payable
3.19 under this section.
3.20 (b) The report shall indicate the following for the period
3.21 since the effective date of this section or the date of the most
3.22 recent prior report, whichever applies:
3.23 (1) the number of retired teachers who received an
3.24 additional benefit amount under this section;
3.25 (2) the total actuarial present value of the additional
3.26 benefit amounts payable under this section;
3.27 (3) the smallest, largest, mean, and median additional
3.28 benefit amounts paid; and
3.29 (4) the smallest, largest, mean, and median retirement
3.30 annuities payable immediately prior to the payment of the
3.31 additional benefit amounts to the retired teachers who received
3.32 an additional benefit amount.
3.33 (c) The report must be filed with the chairs of the
3.34 legislative commission on pensions and retirement, the committee
3.35 on governmental operations and veterans affairs policy of the
3.36 house of representatives, the committee on state government
4.1 finance of the house of representatives, the committee on ways
4.2 and means of the house of representatives, the committee on
4.3 state and local governmental operations of the senate, the
4.4 governmental operations budget division of the senate, and the
4.5 state government budget division of the senate.
4.6 Sec. 2. EFFECTIVE DATE.
4.7 Section 1 is effective on July 1, 2004."
4.8 Amend the title accordingly