HF 4015

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/07/2022 03:01pm

A bill for an act
relating to retirement; Minnesota State Retirement System; legislators retirement
plan; providing for lump-sum payment of an unreduced annuity retroactive to the
date a deferred member reached age 62.

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

Section 1. new text begin BENEFIT PAYMENT TO RETIRED MEMBER OF LEGISLATORS
RETIREMENT PLAN.
new text end

new text begin (a) Notwithstanding any state law to the contrary, an eligible person described in
paragraph (b) is entitled to receive the lump-sum payment described in paragraph (c) from
the legislators retirement plan.
new text end

new text begin (b) An eligible person is a person who:
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new text begin (1) is a member of the legislators retirement plan entitled to a deferred retirement annuity
that was augmented from 2005 through 2018;
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new text begin (2) did not receive notice from the Minnesota State Retirement System, other than a
mass-mailed paper newsletter, regarding the cessation of augmentation effective December
31, 2018;
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new text begin (3) filed an appeal with the executive director of the Minnesota State Retirement System
requesting that the person's retirement annuity be paid retroactively to the person's normal
retirement age of 62, which was denied;
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new text begin (4) filed an appeal with the board of directors of the Minnesota State Retirement System,
which determined that the person should receive retroactive payment to 180 days prior to
filing the application for an annuity, rather than 60 days; and
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new text begin (5) has certified in writing to the executive director of the Minnesota State Retirement
System that the person would have elected to begin receiving a pension when he reached
age 62 had the person been notified that augmentation would cease December 31, 2018.
new text end

new text begin (c) Upon receipt of the certification in paragraph (b), clause (5), from a person who is
an eligible person, the executive director must pay from the assets of the legislators retirement
plan to the eligible person a lump-sum payment equal to the monthly payments the eligible
person would have received, but did not receive, had the eligible person elected to begin
receiving a pension in April 2018 when the eligible person was first entitled to an unreduced
annuity. The executive director must permit the eligible person to elect a direct rollover as
provided under Minnesota Statutes, section 356.635, subdivisions 3 to 7, if the lump-sum
payment is an eligible rollover distribution as defined in Minnesota Statutes, section 356.635,
subdivisions 4 and 5.
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new text begin EFFECTIVE DATE. new text end

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