Effective July 25, 2005, all newly retirement plan eligible, unclassified faculty and staff of the Minnesota State Colleges and Universities will have up to one year to choose to become a member of the Teachers Retirement Association.

What does this mean?

The Individual Retirement Account Plan (IRAP) will now be the main retirement plan for all newly retirement plan eligible, unclassified faculty and staff.  These employees will have the option to choose to become a member of the Teachers Retirement Association (TRA). The option to irrevocably elect to become a member of TRA is open to them for one year, beginning on their date of retirement plan eligibility.

If an election is not made within one year of the date of retirement plan eligibility due to a termination of employment, the employee will have 90 days from the first day they return to eligible employment with the Minnesota State Colleges and Universities to elect to become a member of TRA.

If an employee chooses to become a member of TRA, retirement plan coverage under the TRA begins on the date he or she makes the election.  Any balance accumulated in IRAP prior to the election will stay in the plan until the employee retires or terminates service. A transfer between the two plans is not allowed.

What is the process?

When an unclassified faculty or staff member becomes eligible to participate in the retirement plan, enter into SCUPPS the retirement code BB to initiate IRAP deductions from payroll. Next, provide the employee with a Notification of Right to Elect TRA form and a How to Enroll Online for IRAP form.  The Notification of Right to Elect TRA form should be completed by Human Resources and signed by the employee.  This form acknowledges that the employee understands his or her right to become a member of the Teachers Retirement Association and that it is his or her responsibility to initiate the election within one year of their retirement plan eligibility date.  Keep the original for the personnel file, provide a copy to the employee, a copy to the Office of the Chancellor, and a copy to TIAA-CREF.  If the employee is unavailable to sign the form in the Human Resources Office, complete the employee information on the form, mail it to the employee via certified mail, and retain a copy of the form and the certified mail receipt in the employee’s personnel file, with the same copy distribution as above. 

Important: Enter the eligibility date from the form and the primary retirement code BB (for IRAP) into SCUPPS with a retirement status code of RED (Retirement Eligibility Date).  This date will trigger the one-year window to elect TRA and the start of IRAP contributions.

How does an employee elect to become a member of the Teachers Retirement Association?

An employee must obtain a Teachers Retirement Association (TRA) Election form from the campus Human Resources office. Verify that the election has been made within the required one-year timeframe.  If the employee terminated before completing his or her first year of service in MnSCU, the employee will have an additional 90 days from the date of rehire to make this election.  If the election is being made within the appropriate time frame, change the retirement code in SCUPPS to AD to begin TRA deductions on payroll effective the same date as the employee’s signature.  The retirement status code in SCUPPS must be changed to PER.  Forward a copy of the Teachers Retirement Association (TRA) Election form to TRA, and they will contact the employee regarding membership and retirement plan coverage.  Keep a copy for the personnel file, and provide a copy to the employee, a copy to the Office of the Chancellor, and a copy to TIAA-CREF.

Human Resources must notify TIAA-CREF of the gross wages earned from the effective date of TRA coverage that had IRAP contributions withheld.  These amounts will determine the amount for retroactive adjustments from IRAP to TRA.  TIAA-CREF and TRA will coordinate the refund and deduction process.  

Step 1	Give Notification of Right to Elect TRA (complete name and eligibility date) and How to Enroll Online to newly eligible employees.
Step 2	If mailed to employee, keep certified mail receipt.
Step 3	Enter eligibility date and retirement codes into SCUPPPS.
	Then, upon receipt of the TRA Election form. . .
Step 4	Change retirement codes in SCUPPS and, if applicable, in SEMA 4.
Step 5	If necessary, complete the TRA/IRAP Adjustment Worksheet.