HF 814

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am

A bill for an act
relating to retirement; authorizing a bounce-back annuity when marriage
dissolution decree revokes joint and survivor annuity form; amending Minnesota
Statutes 2008, section 518.58, subdivisions 3, 4; proposing coding for new law in
Minnesota Statutes, chapter 356.

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

Section 1.

new text begin [356.48] REVOCATION OF OPTIONAL ANNUITY DUE TO
MARRIAGE DISSOLUTION OR ANNULMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Covered plans. new text end

new text begin This section applies to the following retirement
plans:
new text end

new text begin (1) the general employee retirement plan of the Public Employees Retirement
Association established under chapter 353;
new text end

new text begin (2) the public employees police and fire retirement plan established under chapter
353;
new text end

new text begin (3) the local government correctional employees retirement plan of the Public
Employees Retirement Association established under chapter 353E; and
new text end

new text begin (4) the Teachers Retirement Association established under chapter 354.
new text end

new text begin Subd. 2. new text end

new text begin Treatment. new text end

new text begin (a) The treatment specified in this section applies if, after
the accrual date of an annuity or benefit from an applicable plan or plans, a marriage
dissolution decree or annulment decree specifies that the designation of an optional annuity
must be revoked and if the other requirements specified in this section are satisfied.
new text end

new text begin (b) Notwithstanding any law to the contrary, if the applicable pension plan or plans
have provisions of law that revise the monthly benefit amount payable to the primary
annuitant upon the death of the individual named to the second half of a joint and survivor
annuity, the monthly benefit amount must be recomputed as though the individual that
had been named to receive the second half of the joint and survivor annuity died on the
date a certified copy of the marriage dissolution or annulment decree is received by the
chief administrative officer.
new text end

new text begin Subd. 3. new text end

new text begin Restrictions. new text end

new text begin (a) This section does not apply if the marriage dissolution
decree or annulment decree is not consistent with the requirements under section 518.58.
new text end

new text begin (b) The pension plan benefit recipient must not designate, and the court may not
require that the member designate, a subsequent optional annuity beneficiary.
new text end

new text begin (c) This section does not apply if more than one surviving individual was named to
share in the second half of the joint and survivor annuity.
new text end

new text begin Subd. 4. new text end

new text begin Submission of documentation. new text end

new text begin To receive the treatment provided in
this section, an eligible retiree or disabilitant must provide, to the chief administrative
officer of the applicable pension plan, a certified copy of the marriage dissolution or
annulment decree. The retiree or disabilitant and the joint annuitant must also submit a
form, prescribed by the chief administrative officer of the applicable pension plan and
signed by both individuals, requesting the annuity bounce back as provided in subdivision
2. The individuals must also provide any other documentation the chief administrative
officer may request.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies retroactively to any marriage dissolution decree or annulment decree requiring
the revocation of an optional annuity form granted within two years prior to the date of
enactment. Payment of any benefit adjustment, if applicable, is prospective only. Payment
of any revised benefit amount relating to any period prior to the day following final
enactment is prohibited.
new text end

Sec. 2.

Minnesota Statutes 2008, section 518.58, subdivision 3, is amended to read:

Subd. 3.

Sale or distribution while proceeding pending.

(a) If the court finds
that it is necessary to preserve the marital assets of the parties, the court may order the
sale of the homestead of the parties or the sale of other marital assets, as the individual
circumstances may require, during the pendency of a proceeding for a dissolution of
marriage or an annulment. If the court orders a sale, it may further provide for the
disposition of the funds received from the sale during the pendency of the proceeding.
deleted text begin If liquid or readily liquidated marital property other than property representing vested
pension benefits or rights is available, the court, so far as possible, shall divide the property
representing vested pension benefits or rights by the disposition of an equivalent amount
of the liquid or readily liquidated property.
deleted text end

(b) The court may order a partial distribution of marital assets during the pendency
of a proceeding for a dissolution of marriage or an annulment for good cause shown or
upon the request of both parties, provided that the court shall fully protect the interests
of the other party.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2008, 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) If liquid or readily liquidated marital property other than property representing
vested pension benefits or rights is available, the court, so far as possible, shall divide the
property representing vested pension benefits or rights by the disposition of an equivalent
amount of the liquid or readily liquidated property.
new text end

new text begin (d) If sufficient liquid or readily liquidated marital property other than property
representing vested pension benefits or rights is not available, the court may order the
revocation of the designation of an optional annuity beneficiary in pension plans specified
in section 356.48 or in any other pension plan in which plan-governing law or governing
documents allow revocation of an optional annuity in marital dissolution or annulment
situations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective the day following final enactment.
new text end

new text begin (b) This section applies retroactively, for plans specified in section 1, to any marriage
dissolution decree or annulment decree requiring the revocation of an optional annuity
form granted within two years prior to the date of enactment.
new text end