HF 541

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; providing that membership in a 
  1.3             public pension plan is an enforceable contractual 
  1.4             right and guaranteeing pension payments to retirees; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 356. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [356.616] [PENSION GUARANTEE.] 
  1.9      Subdivision 1.  [CONTRACT RIGHT.] Any member or former 
  1.10  member of a public pension plan enumerated in section 356.20, 
  1.11  subdivision 2, and any annuitant or benefit recipient of a 
  1.12  public pension plan, shall have an enforceable contractual right 
  1.13  to the retirement, survivor, or disability benefits of the plan, 
  1.14  which right shall not be diminished or impaired. 
  1.15     Subd. 2.  [LIMITATION ON POSTRETIREMENT BENEFIT.] An annual 
  1.16  service pension or retirement benefit payment from a pension 
  1.17  plan or fund enumerated in section 356.20, subdivision 2, may 
  1.18  not be reduced in amount to an amount less than that paid in the 
  1.19  immediately preceding year unless the service pension or 
  1.20  retirement benefit payment was a special or bonus payment that 
  1.21  resulted from extraordinary fund earnings.  This limitation does 
  1.22  not limit the power of the board of trustees of the pension plan 
  1.23  or fund to require proof of continuing eligibility to receive a 
  1.24  disability benefit or survivor benefit, require reduction or 
  1.25  elimination of a disability benefit in the event of changed 
  1.26  medical circumstances, or require the reduction or elimination 
  2.1   of a survivor benefit in the event of changed eligibility. 
  2.2      Sec. 2.  [EFFECTIVE DATE.] 
  2.3      Section 1 is effective the day after final enactment.