HF 2964

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2022 11:12am

A bill for an act
relating to retirement; Minnesota State Retirement System; permitting the survivor
of a deceased state employee to purchase service credit to receive an annuity death
benefit.

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

Section 1. new text begin PURCHASE OF SERVICE CREDIT AUTHORIZED FOR SURVIVOR
OF DECEASED EMPLOYEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section, the following terms have
the meanings given:
new text end

new text begin (1) "executive director" means the executive director of the Minnesota State Retirement
System;
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new text begin (2) "general plan" means the general state employees retirement plan of the Minnesota
State Retirement System;
new text end

new text begin (3) "service credit" means time credited as allowable service in the general plan under
Minnesota Statutes, section 352.01, subdivision 11; and
new text end

new text begin (4) "surviving spouse" means the surviving spouse of an eligible person described in
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Purchase of service credit authorized. new text end

new text begin Notwithstanding any state law to the
contrary, a surviving spouse may purchase service credit, as described under subdivision
4, on behalf of an eligible person. The surviving spouse may purchase only the amount of
service credit that is sufficient for the eligible person to be credited with a total of 60 months
of service credit.
new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

new text begin An eligible person is a person who:
new text end

new text begin (1) died in December 2020;
new text end

new text begin (2) was employed at or near the time of the person's death by the Minnesota Housing
Finance Agency; and
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new text begin (3) is credited with no more than 59 months of service credit during the period from
February 1, 2016, to December 1, 2020.
new text end

new text begin Subd. 4. new text end

new text begin Calculation of payment; payment. new text end

new text begin (a) The executive director shall calculate
the amount of the purchase authorized under subdivision 2. The purchase amount is equal
to:
new text end

new text begin (1) 12.25 percent of the eligible person's final month of salary; and
new text end

new text begin (2) interest on the amount under clause (1) at the applicable annual rate or rates specified
in Minnesota Statutes, section 356.59, subdivision 2, compounded annually from January
1, 2021, to the date that payment is made.
new text end

new text begin (b) If the surviving spouse elects to pay the purchase amount under paragraph (a), the
purchase amount must be paid to the executive director in a lump sum within one year of
the effective date of this section.
new text end

new text begin Subd. 5. new text end

new text begin Entitlement to annuity. new text end

new text begin Upon payment under subdivision 4, the executive
director must credit the eligible person with the purchased service credit and the surviving
spouse is entitled to elect an annuity under Minnesota Statutes, section 352.12, subdivision
2, paragraph (a), (c), or (d), as applicable. If the surviving spouse elects to receive an annuity
under Minnesota Statutes, section 352.12, subdivision 2, paragraph (a) or (c), the surviving
spouse may elect a start date that is as early as January 1, 2021.
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