Instructions for the TRA/IRAP retirement plan election process for unclassified faculty and staff

What does this mean?

Effective July 1, 2011 the Teachers Retirement Plan (TRA) is the default retirement plan for unclassified faculty and staff who have recently become retirement plan eligible and were previously part of the Minnesota defined benefit plans (MSRS, PERA, TRA, SPTRFA, DTRFA). Beginning on the date of retirement eligibility these employees will have one year in which to irrevocably choose to become a member of Individual Retirement Account Plan (IRAP).

1. In the event an election is not made within one year of the date of eligibility due to termination of employment, the employee will have 90 days from the first date of their return to eligible employment with Minnesota State Colleges and Universities in which they can elect to become a member of IRAP.

2. Retirement plan coverage begins on the date the election is made. Balances accumulated in TRA prior to the IRAP election will stay in that plan until the employee retires or terminates service.

What is the Process?

When unclassified faculty or staff member becomes eligible to participate in the retirement plan,

1. Enter into SCUPPS retirement code AD to initiate TRA deductions from payroll.

2. Provide the employee the Notification of Right to Elect IRAP form.

3. Notification of Right to Elect IRAP form should be completed by Human Resources and signed by employee.

  1. This acknowledges the employee understands his/her right to become a member of IRAP
  2. That it is the employees' responsibility to initiate the election within one year of their eligibility date.

4. Keep the original for the personnel file
  1. Provide a copy to the employee
  2. Provide copy to the System Office
  3. c.Provide a copy to TRA

  4. 5. If the employee is unavailable to sign the form in the Human Resource office
    1. Complete the employee information form
    2. Mail to the employee via certified mail
    3. Retain copy of the form and certified mail receipt in employee's personnel file.
    4. Same copy distribution as above.

How does an employee elect to become a member of the Individual Retirement Account Plan?

1. Employee must obtain Individual Retirement Account Plan (IRAP) election form from campus Human Resources office.

2. Verify election has been made within required one-year timeframe.

3. If terminated prior to completing first year of service in MnSCU, employee will have additional 90 days from the date of rehire to make the election.

4. Change retirement code in SCUPPS to BB to begin IRAP deductions on payroll effective the same date as the employees' signature, provided the election is made within appropriate timeframe.

5. Status code should be changed in SCUPPS to PER.

What does TRA need?

1. Forward copy Retirement Association form to TRA.

They will contact employee regarding membership and plan coverage.

2. Keep the original for the personnel file
  1. Provide a copy to the employee
  2. Provide Copy to the Office of the Chancellor
  3. Provide a copy to TRA

  4. 3. Human Resources must notify TRA of gross wages earned from effective date of IRAP coverage that had TRA contributions withheld.
    1. This determines the amount for retroactive adjustments from IRAP to TRA. TIAA-CREFF and TRA will coordinate the refund