HF 2506

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/24/2022 05:48pm

A bill for an act
relating to retirement; Minnesota State Retirement System; extending eligibility
for a Rule of 90 unreduced early retirement benefit by one month to members
hired after June 30, 1989, and before August 1, 1989, upon payment of the actuarial
cost of the increased benefit; amending Minnesota Statutes 2020, section 352.116,
subdivision 1.

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

Section 1.

Minnesota Statutes 2020, section 352.116, subdivision 1, is amended to read:

Subdivision 1.

Reduced annuity before normal retirement age.

(a) This subdivision
applies only to a person who first became a covered employee or a member of a pension
fund listed in section 356.30, subdivision 3, before deleted text begin July deleted text end new text begin August new text end 1, 1989, and whose annuity
is higher when calculated under section 352.115, subdivision 3, paragraph (a), in conjunction
with this subdivision than when calculated under section 352.115, subdivision 3, paragraph
(b), in conjunction with subdivision 1a.

(b) Any employee who is eligible for a retirement annuity under section 352.115,
subdivision 1, and who retires before normal retirement age with credit for at least three
but less than 30 years of allowable service shall be paid the normal retirement annuity
provided in section 352.115, subdivisions 2 and 3, paragraph (a), reduced by one-quarter
of one percent for each month that the employee is under normal retirement age at the time
of retirement. An employee who is eligible for a retirement annuity under section 352.115,
subdivision 1, and who retires prior to age 62 with credit for at least 30 years of allowable
service shall be paid the normal retirement annuity provided in section 352.115, subdivisions
2 and 3, paragraph (a), reduced by one-quarter of one percent for each month that the
employee is under age 62 at the time of retirement.

(c) Any person new text begin who first became a covered employee or a member of a pension fund
listed in section 356.30, subdivision 3, before July 1, 1989, and new text end whose attained age plus
credited allowable service totals 90 years is entitled, upon application, to a retirement annuity
in an amount equal to the normal annuity provided in section 352.115, subdivisions 2 and
3, paragraph (a), without any reduction by reason of early retirement.

new text begin (d) Any person who first became a covered employee or a member of a pension fund
listed in section 356.30, subdivision 3, after June 30, 1989, and before August 1, 1989, and
whose attained age plus credited allowable service totals 90 years is entitled, upon application
and payment to the Minnesota State Retirement System of the amount described in paragraph
(e), to a retirement annuity equal to the normal annuity provided in section 352.115,
subdivisions 2 and 3, paragraph (a), without any reduction by reason of early retirement.
new text end

new text begin (e) The amount required to purchase an unreduced annuity under paragraph (d) is the
amount calculated under section 356.551, subdivision 2, without regard to paragraph (c) or
(e) of subdivision 2, as if the purchase were a purchase of prior service credit. The person
must pay the amount in one lump sum prior to the person's effective date of retirement.
new text end

new text begin EFFECTIVE DATE. new text end

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