| Legislative Action Passed the Teacher Retirement Act of 1969 Established a defined class of teachers (1968-69 teachers) Actively teaching in 1968-69 or On a district approved leave in 1968-69 or Had at least twenty years of service credit by July 1, 1969 Given five pension options: Improved Money Purchase (IMP) Formula (Career Average) Combined IMP and Variable Annuity Combined Formula and Variable Annuity Total Variable Annuity Had to make one irrevocable choice by June 30, 1972 (See Exhibit A) |
| Passed legislation that replaced the Career Average Formula Program with the High Five Formula Program |
| Mandatorily transferred those 1968-69 teachers who chose IMP by June 30, 1972 to the High Five Formula Program |
| Since their original choice was irrevocable, a Savings Clause (MSA 354.55 subd.17) was enacted for 1968-69 teachers who chose IMP |
| Gave the teachers two pension choices at retirement, either IMP or High Five Formula, whichever was greater |
| Passed legislation that mandatorily transferred the remaining 1968-69 teachers to a new program |
| All of the other three options were transferred to a new combination program, half High Five Formula and half Variable Annuity (See Exhibit B) |
| Did not enact a Savings Clause for these 1968-69 teachers even though their original choice was also irrevocable Inequity Created Here |
| Passed legislation that changed the combination program (half High Five Formula, half Variable Annuity) to High Five Formula |
| Passed legislation that transferred all funds remaining in Variable Annuity accounts to the High Five Formula |
| -PENSION ISSUE - HISTORICAL BACKGROUND- |
| Did not enact a Savings Clause for these 1968-69 teachers even though their original choice was also irrevocable Inequity Created Here |
| Did not enact a Savings Clause for these 1968-69 teachers even though their original choice was also irrevocable Inequity Created Here |
 |
|
|
|
| Key Dates |
| 1969 |
| 1973 |
| 1974 |
| 1978 |
| 1989 |
 |