1.1.................... moves to amend S. F. No. 3540, the second engrossment, as amended, as
1.2follows:
1.3Page 61, after line 3, insert:


1.6    Section 1. [354.544] SERVICE CREDIT PURCHASE FOR TEACHING SERVICE
1.7IN OTHER STATES.
1.8    Subdivision 1. Service credit purchase authorized. (a) A teacher who has at least three
1.9years of allowable service credit with the Teachers Retirement Association is entitled to
1.10purchase up to five years of allowable and formula service credit for periods of service as
1.11an elementary or secondary public or charter school teacher in another state by making
1.12payment of the purchase payment amount under subdivision 4.
1.13(b) Periods of service that may be purchased are:
1.14(1) periods of service as a teacher in another state before becoming a member of the
1.15association; and
1.16(2) periods of service as a teacher in another state during any period of employment
1.17after terminating teaching service as a member of the association and before returning to
1.18teaching service as a member of the association.
1.19(c) A teacher is not permitted to purchase a period of service if the purchase would result
1.20in an entitlement to service credit for the same period of service in more than one pension
1.21or retirement plan.
2.1    Subd. 2. Application and documentation. A teacher who desires to purchase service
2.2credit under subdivision 1 must apply with the executive director to make the purchase. The
2.3application must include:
2.4(1) documentation showing the teacher's period of employment as a teacher in another
2.5state;
2.6(2) the period of employment for which service credit is being purchased;
2.7(3) permission to allow the executive director to request and receive verification of such
2.8employment;
2.9(4) documentation showing that the teacher has forfeited all rights to benefits for the
2.10period of employment as a teacher in another state; and
2.11(5) any other relevant information requested by the executive director.
2.12    Subd. 3. Grant of service credit. The Teachers Retirement Association must grant
2.13allowable service credit to the teacher making the purchase for the period being purchased
2.14upon receipt of the purchase payment amount. Payment must be made by the earlier of the
2.15teacher's termination of teaching service or one year after the executive director's approval
2.16of the teacher's application to purchase service credit. Purchasing allowable service credit
2.17under this section does not change the date the teacher first became a member of the
2.18association for the purpose of computing an annuity under section 354.44, subdivision 6.
2.19    Subd. 4. Purchase payment amount. The purchase payment amount is the amount
2.20determined under section 356.551 for the period or periods of service requested, except
2.21that, for purposes of calculating the purchase payment amount to purchase allowable service
2.22credit for service as a teacher in another state that occurred before becoming a member of
2.23the association or between periods of teaching service as a member of the association,
2.24section 356.551, subdivision 2, paragraph (c), shall not apply.
2.25EFFECTIVE DATE.This section is effective January 1, 2023.

2.26    Sec. 2. [354A.0961] SERVICE CREDIT PURCHASE FOR TEACHING SERVICE
2.27IN OTHER STATES.
2.28    Subdivision 1. Service credit purchase authorized. (a) A teacher who has at least three
2.29years of allowable service credit with the St. Paul Teachers Retirement Fund Association
2.30is entitled to purchase up to five years of allowable and formula service credit for periods
2.31of service as an elementary or secondary public or charter school teacher in another state
2.32by making payment of the purchase payment amount under subdivision 4.
3.1(b) Periods of service that may be purchased are:
3.2(1) periods of service as a teacher in another state before becoming a member of the
3.3association; and
3.4(2) periods of service as a teacher in another state during any period of employment
3.5after terminating teaching service as a member of the association and before returning to
3.6teaching service as a member of the association.
3.7(c) A teacher is not permitted to purchase a period of service if the purchase would result
3.8in an entitlement to service credit for the same period of service in more than one pension
3.9or retirement plan.
3.10    Subd. 2. Application and documentation. A teacher who desires to purchase service
3.11credit under subdivision 1 must apply with the executive director to make the purchase. The
3.12application must include:
3.13(1) documentation showing the teacher's period of employment as a teacher in another
3.14state;
3.15(2) the period of employment for which service credit is being purchased;
3.16(3) permission to allow the executive director to request and receive verification of such
3.17employment;
3.18(4) documentation showing that the teacher has forfeited all rights to benefits for the
3.19period of employment as a teacher in another state; and
3.20(5) any other relevant information requested by the executive director.
3.21    Subd. 3. Grant of service credit. The St. Paul Teachers Retirement Fund Association
3.22must grant allowable service credit to the teacher making the purchase for the period being
3.23purchased upon receipt of the purchase payment amount. Payment must be made by the
3.24earlier of the teacher's termination of teaching service or one year after the executive director's
3.25approval of the teacher's application to purchase service credit. Purchasing allowable service
3.26credit under this section does not change the date the teacher first became a member of the
3.27association for the purpose of computing an annuity under section 354A.31, subdivision 6.
3.28    Subd. 4. Purchase payment amount. The purchase payment amount is the amount
3.29determined under section 356.551 for the period or periods of service requested, except
3.30that, for purposes of calculating the purchase payment amount to purchase allowable service
3.31credit for service as a teacher in another state that occurred before becoming a member of
4.1the association or between periods of teaching service as a member of the association,
4.2section 356.551, subdivision 2, paragraph (c), shall not apply.
4.3EFFECTIVE DATE.This section is effective January 1, 2023.

4.4    Sec. 3. Minnesota Statutes 2020, section 356.551, subdivision 2, is amended to read:
4.5    Subd. 2. Determination. (a) Unless the minimum purchase amount set forth in paragraph
4.6(c) applies, the prior service credit purchase amount is an amount equal to the actuarial
4.7present value, on the date of payment, as calculated by the chief administrative officer of
4.8the pension plan and reviewed by the actuary retained under section 356.214, of the amount
4.9of the additional retirement annuity obtained by the acquisition of the additional service
4.10credit in this section.
4.11    (b) Calculation of this amount must be made using the investment return assumption
4.12applicable to the public pension plan specified in section 356.215, subdivision 8, and the
4.13mortality table adopted for the public pension plan.
4.14    (1) Unless clause (2) applies, the calculation must assume continuous future service in
4.15the public pension plan until, and retirement at, the age at which the minimum requirements
4.16of the fund for normal retirement or retirement with an annuity unreduced for retirement at
4.17an early age, including section 356.30, are met with the additional service credit purchased.
4.18The calculation must also assume a full-time equivalent salary, or actual salary, whichever
4.19is greater, and a future salary history that includes annual salary increases at the applicable
4.20salary increase rate for the plan specified in section 356.215, subdivision 8.
4.21    (2) This clause applies when the calculation is being done for purposes of section
4.22353.0141, subdivision 3; 354.544; or 354A.0961. The calculation must include continuous
4.23future service in the public pension plan until, and retirement at, any age at or after which
4.24the minimum requirements of the fund for early retirement or retirement with an annuity
4.25unreduced for retirement at an early age, including section 356.30, are met with the additional
4.26service credit purchased. The calculation must be determined using the retirement age that
4.27provides the most valuable benefit to the member. The calculation must also assume a
4.28full-time equivalent salary, or actual salary, whichever is greater, and a future salary history
4.29that includes annual salary increases at the applicable salary increase rate for the plan
4.30specified in section 356.215, subdivision 8.
4.31    (c) The prior service credit purchase amount may not be less than the amount determined
4.32by applying, for each year or fraction of a year being purchased, the sum of the employee
4.33contribution rate, the employer contribution rate, and the additional employer contribution
5.1rate, if any, applicable during that period, to the person's annual salary during that period,
5.2or fractional portion of a year's salary, if applicable, plus interest at the applicable annual
5.3rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies,
5.4compounded annually, from the end of the year in which contributions would otherwise
5.5have been made to the date on which the payment is received.
5.6    (d) Unless otherwise provided by statutes governing a specific plan, payment must be
5.7made in one lump sum within one year of the prior service credit authorization or prior to
5.8the member's effective date of retirement, whichever is earlier. Payment of the amount
5.9calculated under this section must be made by the applicable eligible person.
5.10    (e) However, the current employer or the prior employer may, at its discretion, pay all
5.11or any portion of the payment amount that exceeds an amount equal to the employee
5.12contribution rates in effect during the period or periods of prior service applied to the actual
5.13salary rates in effect during the period or periods of prior service, plus interest at the
5.14applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever
5.15applies, compounded annually, from the date on which the contributions would otherwise
5.16have been made to the date on which the payment is made. If the employer agrees to
5.17payments under this subdivision, the purchaser must make the employee payments required
5.18under this subdivision within 90 days of the prior service credit authorization. If that
5.19employee payment is made, the employer payment under this subdivision must be remitted
5.20to the chief administrative officer of the public pension plan within 60 days of receipt by
5.21the chief administrative officer of the employee payments specified under this subdivision.
5.22EFFECTIVE DATE.This section is effective January 1, 2023."
5.23Renumber the articles in sequence and correct the internal references
5.24Amend the title accordingly