HF 2346

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; allowing a bounce-back annuity when provided for by
a marriage dissolution decree; amending Minnesota Statutes 2006, sections
353.30, by adding a subdivision; 518.58, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 353.30, is amended by adding a
subdivision to read:

new text begin Subd. 3d. new text end

new text begin Bounce-back annuity after marriage dissolution. new text end

new text begin The right to a future
optional annuity selected by a former member or disability benefit recipient may be
waived under section 518.58, subdivision 4, paragraph (c). This waiver will be effective
the first day of the month following the date the executive director receives the order
directing the revocation.
new text end

Sec. 2.

Minnesota Statutes 2006, section 518.58, subdivision 4, is amended to read:

Subd. 4.

Pension plans.

(a) The division of marital property that represents pension
plan benefits or rights in the form of future pension plan payments:

(1) is payable only to the extent of the amount of the pension plan benefit payable
under the terms of the plan;

(2) is not payable for a period that exceeds the time that pension plan benefits are
payable to the pension plan benefit recipient;

(3) is not payable in a lump sum amount from defined benefit pension plan assets
attributable in any fashion to a spouse with the status of an active member, deferred
retiree, or benefit recipient of a pension plan;

(4) if the former spouse to whom the payments are to be made dies prior to the end
of the specified payment period with the right to any remaining payments accruing to an
estate or to more than one survivor, is payable only to a trustee on behalf of the estate or
the group of survivors for subsequent apportionment by the trustee; and

(5) in the case of defined benefit public pension plan benefits or rights, may not
commence until the public plan member submits a valid application for a public pension
plan benefit and the benefit becomes payable.

(b) The individual retirement account plans established under chapter 354B may
provide in its plan document, if published and made generally available, for an alternative
marital property division or distribution of individual retirement account plan assets. If an
alternative division or distribution procedure is provided, it applies in place of paragraph
(a), clause (5).

new text begin (c) The court may order the revocation of the designation of an optional annuity
beneficiary after which the pension plan member will receive the actuarial equivalent of a
single life annuity. The pension plan member may not designate, and the court may not
require that the member designate, a subsequent optional annuity beneficiary.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment and apply
retroactively to any marriage dissolution decree granting the revocation of an optional
retirement annuity payment granted at any time prior to the date of enactment.
new text end