2001 Minnesota Statutes

CHAPTER 3A. Legislators' retirement

     3A.01 Definitions. 

    Subdivision 1.    Purposes.  The terms defined in this 
 section for the purposes of this chapter shall be given the 
 meanings ascribed to them. 

    Subd. 2.    Dependent child.  "Dependent child" means 
 any natural or adopted child of a deceased member of the 
 legislature or former legislator who is under the age of 18, or 
 who is under the age of 22 and is a full-time student, and who 
 in either case is unmarried and was actually dependent for more 
 than one-half of support upon such legislator for a period of at 
 least 90 days immediately prior to the legislator's death. It 
 also includes any child of the member of the legislature or 
 former legislator conceived during the lifetime of, and born 
 after the death of, the member or former legislator.  This 
 subdivision shall be retroactive as to any dependent child under 
 the age of 22 years as of April 1, 1975. 

    Subd. 3.    Member of the legislature.  "Member of the 
 legislature" means a member of the house of representatives or 
 the senate of the state of Minnesota who has subscribed to the 
 oath of office. 

    Subd. 4.    Retirement.  "Retirement" means the time 
 after a former legislator is entitled to a retirement 
 allowance.  "Former legislator" means a legislator who has 
 ceased to be a member of the legislature for any reason, 
 including, but not limited to, expiration of the term for which 
 a member of the legislature was elected, or death of such member.

    Subd. 5.  Repealed, 1971 c 928 s 11 

    Subd. 6.    Director.  "Director" means the executive 
 director of the Minnesota state retirement system. 

    Subd. 6a.    Salary.  "Salary" means the regular 
 compensation payable under law to legislators and paid to the 
 person for service as a legislator.  The term includes the 
 monthly compensation paid to the legislator, and the per diem 
 payments paid during a regular or special session to the 
 legislator.  The term does not include per diem payments paid 
 other than during the regular or special session, additional 
 compensation attributable to a leadership position under section 
 3.099, subdivision 3, living expense payments under section 
 3.101, and special session living expense payments under section 
 3.103. 

    Subd. 7.    Average monthly salary.  "Average monthly 
 salary" means the average of the member's highest five 
 successive years of salary received as a member of the 
 legislature and upon which the member has made contributions 
 under section 3A.03, subdivision 1, payments for past service 
 under section 3A.02, subdivision 2, or payments in lieu of 
 contributions under Minnesota Statutes 1992, section 3A.031, 
 prior to July 1, 1994. 

    Subd. 8.    Normal retirement age.  "Normal retirement 
 age" means the age of 60 years with regard to any member of the 
 legislature whose service terminates prior to the beginning of 
 the 1981 legislative session, and the age of 62 years with 
 regard to any member of the legislature whose service terminates 
 after the beginning of the 1981 session. 

    HIST: 1965 c 896 s 1; 1974 c 445 s 1; 1975 c 368 s 1,2; 1978 c 
 796 s 1,2; 1981 c 224 s 2,3,274; 1986 c 444; 1989 c 319 art 11 s 
 13; art 16 s 1,2; 1995 c 186 s 1 

     3A.011 Administration of plan. 

    The Minnesota state retirement system shall administer the 
 legislators retirement plan in accordance with chapter 356A. 

    HIST: 1989 c 319 art 8 s 1 

     3A.02 Retirement allowance. 

    Subdivision 1.    Qualifications.  (a) A former 
 legislator is entitled, upon written application to the 
 director, to receive a retirement allowance monthly, if the 
 person: 

    (1) has served at least six full years, without regard to 
 the application of section 3A.10, subdivision 2, or has served 
 during all or part of four regular sessions as a member of the 
 legislature, which service need not be continuous; 

    (2) has attained the normal retirement age; 

    (3) has retired as a member of the legislature; and 

    (4) has made all contributions provided for in section 
 3A.03, has made payments for past service under subdivision 2, 
 or has made payments in lieu of contributions under Minnesota 
 Statutes 1992, section 3A.031, prior to July 1, 1994. 

    (b) This paragraph applies to members of the legislature 
 who terminate service as a legislator before July 1, 1997.  For 
 service rendered before the beginning of the 1979 legislative 
 session, but not to exceed eight years of service, the 
 retirement allowance is an amount equal to five percent per year 
 of service of that member's average monthly salary.  For service 
 in excess of eight years rendered before the beginning of the 
 1979 legislative session, and for service rendered after the 
 beginning of the 1979 legislative session, the retirement 
 allowance is an amount equal to 2-1/2 percent per year of 
 service of that member's average monthly salary. 

    (c) This paragraph applies to members of the legislature 
 who terminate service as a legislator after June 30, 1997.  The 
 retirement allowance is an amount equal to the applicable rate 
 or rates under paragraph (b) per year of service of the member's 
 average monthly salary adjusted for that person on an actuarial 
 equivalent basis to reflect the change in the postretirement 
 interest rate actuarial assumption under section 356.215, 
 subdivision 4d, from five percent to six percent.  The 
 adjustment must be calculated by or, alternatively, the 
 adjustment procedure must be specified by, the actuary retained 
 by the legislative commission on pensions and retirement.  The 
 purpose of this adjustment is to ensure that the total amount of 
 benefits that the actuary predicts an individual member will 
 receive over the member's lifetime under this paragraph will be 
 the same as the total amount of benefits the actuary predicts 
 the individual member would receive over the member's lifetime 
 under the law in effect before enactment of this paragraph. 

    (d) The retirement allowance accrues beginning with the 
 first day of the month of receipt of the application, but not 
 before age 60, and for the remainder of the former legislator's 
 life, if the former legislator is not serving as a member of the 
 legislature or as a constitutional officer or commissioner as 
 defined in section 352C.021, subdivisions 2 and 3.  The annuity 
 does not begin to accrue prior to retirement as a legislator.  
 No annuity payment may be made retroactive for more than 180 
 days before the date the annuity application is filed with the 
 director. 

    (e) Any member who has served during all or part of four 
 regular sessions is considered to have served eight years as a 
 member of the legislature. 

    (f) The retirement allowance ceases with the last payment 
 that accrued to the retired legislator during the retired 
 legislator's lifetime, except that the surviving spouse, if any, 
 is entitled to the retirement allowance for the calendar month 
 in which the retired legislator died. 

    Subd. 1a.  Repealed, 1973 c 653 s 47 

    Subd. 1b.    Reduced retirement allowance.  (a) Upon 
 separation from service after the beginning of the 1981 
 legislative session, a former member of the legislature who has 
 attained the age set by the board of directors of the Minnesota 
 state retirement system and who is otherwise qualified in 
 accordance with subdivision 1 is entitled upon making written 
 application on forms supplied by the director to a retirement 
 allowance in an amount equal to the retirement allowance 
 specified in subdivision 1 reduced so that the reduced annuity 
 is the actuarial equivalent of the annuity that would be payable 
 if the former member of the legislature deferred receipt of the 
 annuity and the annuity amount were augmented at an annual rate 
 of three percent compounded annually from the date the annuity 
 begins to accrue until age 62. 

    (b) The age set by the board of directors under paragraph 
 (a) cannot be less than the early retirement age under section 
 352.116, subdivision 1a. 

    (c) If there is an actuarial cost to the plan of resetting 
 the early retirement age under paragraph (a), the retired 
 legislator is required to pay an additional amount to cover the 
 full actuarial value.  The additional amount must be paid in a 
 lump sum within 30 days of the certification of the amount by 
 the executive director.  

    (d) The executive director of the Minnesota state 
 retirement system shall report to the legislative commission on 
 pensions and retirement on the utilization of this provision on 
 or before September 1, 2000. 

    Subd. 2.    Payment for past service.  Any member of 
 the legislature who is a member on July 1, 1965 or thereafter, 
 may, notwithstanding the provisions of subdivision 1, clause 
 (1), receive credit for service rendered as a member of the 
 legislature prior to July 1, 1965, and the pension based thereon 
 provided that the member pays to the director for credit to the 
 member's account an amount equal to nine percent of all salary 
 received for all periods of service rendered as a member of the 
 legislature, even if such periods are not continuous and exceed 
 ten years in duration.  Such payment may be made at any time 
 after the commencement of any regular session of the legislature 
 in which the member serves. 

    Subd. 3.    Appropriation.  The amounts required for 
 payment of retirement allowances provided by this section are 
 appropriated annually to the director from the participation in 
 the Minnesota postretirement investment fund and shall be paid 
 monthly to the recipients entitled thereto. 

    Subd. 4.    Deferred annuities augmentation.  (a) The 
 deferred annuity of any former legislator must be augmented as 
 provided herein.  The required reserves applicable to the 
 deferred annuity, determined as of the date the benefit begins 
 to accrue using an appropriate mortality table and an interest 
 assumption of six percent, must be augmented from the first of 
 the month following termination of service, or July 1, 1973, 
 whichever is later, to the first day of the month in which the 
 annuity begins to accrue, at the rate of five percent per annum 
 compounded annually until January 1, 1981, and thereafter at the 
 rate of three percent per annum compounded annually until 
 January 1 of the year in which the former legislator attains age 
 55.  From that date to the effective date of retirement, the 
 rate is five percent compounded annually. 

    (b) The retirement allowance of, or the survivor benefit 
 payable on behalf of, a former member of the legislature who 
 terminated service before July 1, 1997, which is not first 
 payable until after June 30, 1997, must be increased on an 
 actuarial equivalent basis to reflect the change in the 
 postretirement interest rate actuarial assumption under section 
 356.215, subdivision 4d, from five percent to six percent under 
 a calculation procedure and tables adopted by the board of 
 directors of the Minnesota state retirement system and approved 
 by the actuary retained by the legislative commission on 
 pensions and retirement. 

    Subd. 5.    Optional annuities.  (a) The board of 
 directors shall establish an optional retirement annuity in the 
 form of a joint and survivor annuity and an optional retirement 
 annuity in the form of a period certain and life thereafter.  
 Except as provided in paragraph (b), these optional annuity 
 forms must be actuarially equivalent to the normal annuity 
 computed under this section, plus the actuarial value of any 
 surviving spouse benefit otherwise potentially payable at the 
 time of retirement under section 3A.04, subdivision 1.  An 
 individual selecting an optional annuity under this subdivision 
 waives any rights to surviving spouse benefits under section 
 3A.04, subdivision 1. 

    (b) If a retired legislator selects the joint and survivor 
 annuity option, the retired legislator must receive a normal 
 single-life annuity if the designated optional annuity 
 beneficiary dies before the retired legislator and no reduction 
 may be made in the annuity to provide for restoration of the 
 normal single-life annuity in the event of the death of the 
 designated optional annuity beneficiary. 

    (c) The surviving spouse of a legislator who has attained 
 at least age 60 and who dies while a member of the legislature 
 may elect an optional joint and survivor annuity under paragraph 
 (a), in lieu of surviving spouse benefits under section 3A.04, 
 subdivision 1. 

    HIST: 1965 c 896 s 2; 1967 c 877 s 1,2; 1969 c 155 s 1; 1969 c 
 399 s 1; 1969 c 1115 s 1; 1971 c 928 s 1,2; 1973 c 653 s 1-3; 
 1974 c 445 s 2-4; 1975 c 368 s 3-5; 1977 c 35 s 12; 1978 c 796 s 
 3-6; 1980 c 607 art 14 s 45 subd 2; 1981 c 224 s 4; 1986 c 444; 
 1989 c 319 art 16 s 3-5; 1993 c 307 art 1 s 1; art 2 s 1; 1994 c 
 528 art 1 s 1; 1995 c 186 s 2; 1995 c 262 art 8 s 1; 1997 c 233 
 art 1 s 3,4; 1999 c 222 art 9 s 1 

     3A.03 Contributions. 

    Subdivision 1.    Percentage.  Every member of the 
 legislature shall contribute nine percent of total salary, by 
 payroll deduction, to be paid into the state treasury and 
 deposited in the general fund.  It shall be the duty of the 
 director to record the periodic contributions of each member of 
 the legislature and credit such contribution to the member's 
 account. 

    Subd. 2.    Refund.  (a) Any former member who has made 
 contributions under subdivision 1 and who is no longer a member 
 of the legislature is entitled to receive, upon application to 
 the director, a refund of all contributions credited to the 
 member's account with interest at an annual rate of six percent 
 compounded annually.  

    (b) The refund of contributions as provided in paragraph (a)
 terminates all rights of a former member of the legislature or 
 the survivors of the former member under this chapter.  If the 
 former member of the legislature again becomes a member of the 
 legislature after having taken a refund as provided in paragraph 
 (a), the member must be considered a new member.  However, a new 
 member may reinstate the rights and credit for service forfeited 
 if the new member repays all refunds taken plus interest at an 
 annual rate of 8.5 percent compounded annually.  

    (c) No person may be required to apply for or to accept a 
 refund. 

    HIST: 1965 c 896 s 3; 1969 c 399 s 1; 1971 c 928 s 3; 1973 c 
 653 s 4; 1974 c 445 s 5,6; 1975 c 368 s 6; 1978 c 796 s 7; 1980 
 c 614 s 37; 1981 c 224 s 274; 1983 c 286 s 1; 1984 c 564 s 3; 
 1986 c 444; 1990 c 570 art 12 s 1; 1992 c 598 art 1 s 1; 1Sp2001 
 c 10 art 3 s 1 

  3A.031 Repealed, 1989 c 319 art 16 s 8 

     3A.04 Survivor benefit. 

    Subdivision 1.    Surviving spouse.  Upon the death of a 
 member of the legislature while serving as such member after 
 June 30, 1973, or upon the death of a former member of the 
 legislature with at least the number of years of service as 
 required by section 3A.02, subdivision 1, clause (1), the 
 surviving spouse shall be paid a survivor benefit in the amount 
 of one-half of the retirement allowance of the member of the 
 legislature computed as though the member were at least normal 
 retirement age on the date of death and based upon allowable 
 service or eight years whichever is greater.  The augmentation 
 provided in section 3A.02, subdivision 4, if applicable, shall 
 be applied to the month of death.  Upon the death of a former 
 legislator receiving a retirement allowance, the surviving 
 spouse shall be entitled to one-half of the amount of the 
 allowance being paid to the legislator.  Such benefit shall be 
 paid during the lifetime of the surviving spouse. 

    Subd. 1a.    Increase in survivor benefits.  Survivor 
 benefits provided in subdivision 1 authorized and in effect on 
 June 3, 1977, shall be increased by 25 percent, effective 
 retroactively to January 1, 1974, or the date the survivor 
 benefit became payable, whichever is later. 

    Subd. 2.    Dependent children.  Upon the death of a 
 member of the legislature while serving as a member, or upon the 
 death of a former member of the legislature who has rendered at 
 least the number of years of service as required by section 
 3A.02, subdivision 1, clause (1) and who was not receiving a 
 retirement allowance, each dependent child of the member or 
 former legislator shall be entitled to receive a survivor 
 benefit in the following amount:  First dependent child, a 
 monthly allowance which equals 25 percent of the monthly 
 retirement allowance of the member of the legislature or former 
 legislator computed as though the member or former legislator 
 had attained at least the normal retirement age on the date of 
 death and based upon the average monthly salary as of the date 
 of death or as of the date of termination, whichever is 
 applicable, and the allowable service or eight years whichever 
 is greater; for each additional dependent child, a monthly 
 allowance which equals 12-1/2 percent of the monthly retirement 
 allowance of the member or former legislator computed as in the 
 case of the first child; but the total amount paid to the 
 surviving spouse and dependent children shall not exceed in any 
 one month 100 percent of the monthly retirement allowance of the 
 member or former legislator computed as in the case of the first 
 child.  The augmentation provided in section 3A.02, subdivision 
 4, if applicable, shall be applied from the first day of the 
 month next following the date of termination of service as a 
 member of the legislature to the month of death.  Upon the death 
 of a former legislator who was receiving a retirement allowance, 
 the surviving dependent child shall be entitled to the 
 applicable percentage specified above of the amount of the 
 allowance which was paid to the former legislator for the month 
 immediately prior to the date of death.  The payments for 
 dependent children shall be made to the surviving spouse or the 
 guardian of the estate of the dependent children, if there is 
 one.  

    Subd. 3.    Payment.  The surviving spouse's and 
 dependent children's survivor benefits payable under this 
 section shall be paid by the director monthly in the same manner 
 as retirement allowances are authorized to be paid by this 
 chapter.  

    Subd. 4.    Death refunds.  Upon the death of a member 
 of the legislature or former legislator who was not receiving a 
 retirement allowance, without either a surviving spouse or 
 dependent children, the last designated beneficiary named on a 
 form filed with the director before the death of the legislator, 
 or if no designation is filed, the estate of the member or 
 former legislator, upon application, shall be entitled to a 
 refund plus interest as provided in section 3A.03, subdivision 
 2, clause (2). 

    HIST: 1965 c 896 s 4; 1967 c 877 s 3,4; 1969 c 399 s 1; 1969 c 
 1115 s 2,3; 1971 c 928 s 4-6; 1973 c 653 s 5,6; 1974 c 445 s 
 7,8; 1975 c 368 s 7,8; 1977 c 429 s 1-3; 1978 c 796 s 8,9; 1980 
 c 614 s 38,39; 1981 c 224 s 5-8,274; 1986 c 444; 1989 c 319 art 
 11 s 13; 1991 c 269 art 2 s 1; 1996 c 438 art 1 s 1 

     3A.05 Application for survivor benefit. 

    Applications for survivor benefits pursuant to section 
 3A.04 shall be filed with the director by the surviving spouse 
 and dependent children entitled to benefits pursuant to section 
 3A.04, or by the guardian of the estate, if there is one, of the 
 dependent children.  Survivor benefits shall accrue as of the 
 first day of the month following the death of the member of the 
 legislature or former legislator and payments shall commence as 
 of the first of the month next following the filing of the 
 application, and shall be retroactive to the date the benefit 
 accrues; provided, however, that no payment shall be retroactive 
 for more than 12 months prior to the month the application is 
 filed with the director. 

    HIST: 1965 c 896 s 5; 1971 c 928 s 7; 1974 c 445 s 9; 1975 c 
 368 s 9; 1981 c 224 s 9 

  3A.06 Repealed, 1993 c 307 art 7 s 1 

     3A.07 Application. 

    (a) Except as provided in paragraph (b), this chapter 
 applies to members of the legislature in service after July 1, 
 1965, who otherwise meet the requirements of this chapter. 

    (b) Members of the legislature who were elected for the 
 first time after June 30, 1997, or members of the legislature 
 who were elected before July 1, 1997, and who, after July 1, 
 1998, elect not to be members of the plan established by this 
 chapter are covered by the unclassified employees retirement 
 program governed by chapter 352D. 

    (c) The post-July 1, 1998, coverage election under 
 paragraph (b) is irrevocable and must be made on a form 
 prescribed by the director. 

    HIST: 1965 c 896 s 7; 1981 c 224 s 274; 1997 c 233 art 2 s 1 

  3A.08 Repealed, 1979 c 303 art 3 s 41 

     3A.09 Membership in P.E.R.A. 

    Any person who becomes a member of the legislature and who, 
 on the date of becoming a member of the legislature, is a member 
 of the public employees retirement association may elect, within 
 six months of the date of becoming a member of the legislature, 
 to remain a member of the public employees retirement 
 association and shall not be required to make any contributions 
 pursuant to section 3A.03.  No person who is a member of the 
 legislature shall belong to the public employees retirement 
 association for service as a member of the legislature and make 
 contributions pursuant to section 3A.03 or accrue rights 
 pursuant to this chapter at the same time.  A member of the 
 legislature who is not a member of the public employees 
 retirement association on the date the person becomes a member 
 of the legislature, shall have contributions deducted from 
 salary for all pay periods after the date the person becomes a 
 member of the legislature.  A member of the legislature may 
 belong to the public employees retirement association for 
 service performed other than as a member of the legislature and 
 continue to accrue rights pursuant to this chapter and make 
 contributions as required by section 3A.03. 

    HIST: 1965 c 896 s 9; 1967 c 877 s 5; 1969 c 155 s 2; 1981 c 
 224 s 10 

     3A.10 One term of service being a certain time. 

    Subdivision 1.    Term.  In the case of a member of the 
 house of representatives one full term of office shall be 
 considered two full years service notwithstanding the fact that 
 the oath of office may be taken on different days each 
 biennium.  In the case of a member of the senate, one full term 
 of office shall be considered four full years service 
 notwithstanding the fact that the oath of office may be taken on 
 different days at the start of each term.  For purposes of this 
 chapter, a legislative term shall be deemed to commence on 
 January 1st and to end on December 31st.  

    Subd. 2. Repealed, 1995 c 262 art 1 s 26 

    HIST: 1965 c 896 s 10; 1967 c 877 s 6; 1975 c 368 s 10; 1986 c 
 444 

     3A.11 Participation in Minnesota postretirement 
  investment fund. 

    Subdivision 1.    Transfer of reserves.  The reserves 
 necessary to fund the retirement allowance granted pursuant to 
 section 3A.02 to a former legislator upon retirement shall be 
 appropriated from the general fund to the director and shall be 
 transferred by the director to the Minnesota postretirement 
 investment fund as of the last business day of the month in 
 which the retirement allowance begins to accrue in accord with 
 section 11A.18.  The amount of the transfer shall be determined 
 by or determined under a procedure specified by the actuary 
 retained by the legislative commission on pensions and 
 retirement, in accord with the appropriate mortality table 
 adopted by the board of directors of the Minnesota state 
 retirement system based on the experience of the plan as 
 recommended by the commission-retained actuary and the interest 
 rate assumption specified in section 356.215, subdivision 4d. 

    Subd. 2.    Payment adjustments.  Annuities and benefits 
 shall be adjusted in accord with the provisions of section 
 11A.18. 

    Subd. 3. Repealed, 1980 c 614 s 191 

    Subd. 4.    Automatic increases; exception.  Increases 
 in benefit payments pursuant to this section will be made 
 automatically unless the intended recipient files written notice 
 with the director requesting that the increase shall not be made.

    HIST: 1973 c 653 s 7; 1974 c 445 s 10,11; 1980 c 607 art 14 s 
 45 subd 2, s 46; 1981 c 224 s 11,12; 1983 c 286 s 2; 1Sp1985 c 7 
 s 35; 1987 c 259 s 2; 1995 c 186 s 3 

     3A.12 Coverage by more than one retirement system or 
  association. 

    Subdivision 1.    Entitlement to annuity.  Any 
 legislator who has been an employee covered by the Minnesota 
 state retirement system, or a member of the public employees 
 retirement association including the public employees retirement 
 association police and fire fund, or the teachers retirement 
 association, or the Minneapolis employees retirement fund, or 
 the state patrol retirement fund, or any other public employee 
 retirement system in the state of Minnesota having a like 
 provision but excluding all other funds providing benefits for 
 police or firefighters, shall be entitled when qualified to an 
 annuity from each fund if the total allowable service for which 
 the legislator has credit in all funds or in any two of these 
 funds totals ten or more years, provided no portion of the 
 allowable service upon which the retirement annuity from one 
 fund is based is again used in the computation for benefits from 
 another fund.  The annuity from each fund shall be determined by 
 the appropriate provisions of the law except that the 
 requirement that a person must have at least ten years allowable 
 service in the respective system or association shall not apply 
 for the purposes of this section provided the combined service 
 in two or more of these funds equals ten or more years.  The 
 augmentation of deferred annuities provided in section 3A.02, 
 subdivision 4, shall apply to the annuities accruing hereunder. 

    Subd. 2.    Refund repayment.  Any former legislator 
 who has received a refund as provided in section 3A.03, 
 subdivision 2, who is a currently contributing member of a 
 retirement fund specified in subdivision 1, may repay the refund 
 as provided in section 3A.03, subdivision 2.  Any member of the 
 legislature who has received a refund from any of the funds 
 specified in subdivision 1, may repay the refund to the 
 respective fund under such terms and conditions consistent with 
 the law governing such fund if the law governing such fund 
 permits the repayment of refunds.  If the total amount to be 
 repaid, including principal and interest exceeds $2,000, 
 repayment may be made in three equal installments over a period 
 of 18 months, with interest accrued during the period of 
 repayment added to the final installment. 

    HIST: 1975 c 368 s 11; 1977 c 429 s 63; 1981 c 37 s 2; 1981 c 
 224 s 13; 1981 c 298 s 11; 1986 c 444 

     3A.13 Exemption from process and taxation; health 
  premium deduction. 

    The provisions of section 352.15 shall apply to the 
 legislators retirement plan, chapter 3A.  The executive director 
 of the Minnesota state retirement system must, at the request of 
 a retired legislator who is enrolled in a health insurance plan 
 covering state employees, deduct the person's health insurance 
 premiums from the person's annuity and transfer the amount of 
 the premium to a health insurance carrier covering state 
 employees. 

    HIST: 1993 c 307 art 1 s 2; 1998 c 390 art 2 s 1