1.1                          A bill for an act 
  1.2             relating to retirement; revising the age for payment 
  1.3             of optional accelerated retirement annuities from the 
  1.4             teachers retirement association; amending Minnesota 
  1.5             Statutes 2000, section 354.35.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 354.35, is 
  1.8   amended to read: 
  1.9      354.35 [OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFORE 
  1.10  NORMAL RETIREMENT AGE.] 
  1.11     Any coordinated member who retires before the person's 
  1.12  Social Security retirement age 65 may elect to receive an 
  1.13  optional accelerated retirement annuity from the association 
  1.14  which provides for different annuity amounts over different 
  1.15  periods of retirement.  The optional accelerated retirement 
  1.16  annuity must take the form of an annuity payable for the period 
  1.17  before the member attains the person's Social Security 
  1.18  retirement age 65 in a greater amount than the amount of the 
  1.19  annuity calculated under section 354.44 on the basis of the age 
  1.20  of the member at retirement, but the optional accelerated 
  1.21  retirement annuity must be the actuarial equivalent of the 
  1.22  member's annuity computed on the basis of the member's age at 
  1.23  retirement.  The greater amount must be paid until the retiree 
  1.24  reaches the person's Social Security retirement age 65 and at 
  1.25  that time the payment from the association must be reduced.  For 
  2.1   each year the retiree is under the person's Social Security 
  2.2   retirement age 65, up to five percent of the total life annuity 
  2.3   required reserves may be used to accelerate the optional 
  2.4   retirement annuity under this section.  At retirement, members 
  2.5   who retire before age 62 may elect to have the age specified in 
  2.6   this section be 62 instead of 65 the person's Social Security 
  2.7   retirement age.  The method of computing the optional 
  2.8   accelerated retirement annuity provided in this section is 
  2.9   established by the board of trustees.  In establishing the 
  2.10  method of computing the optional accelerated retirement annuity, 
  2.11  the board of trustees must obtain the written approval of the 
  2.12  commission-retained actuary.  The written approval must be a 
  2.13  part of the permanent records of the board of trustees.  The 
  2.14  election of an optional accelerated retirement annuity is 
  2.15  exercised by making an application on a form provided by the 
  2.16  executive director.  For purposes of this section, a person's 
  2.17  Social Security retirement age is the "retirement age" 
  2.18  determined under United States Code, title 42, section 416(l), 
  2.19  as amended.