HF 4427

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/29/2024 02:57pm

A bill for an act
relating to retirement; Minnesota State Retirement System; State Patrol retirement
plan; authorizing the surviving spouse of a deceased state employee to receive a
survivor annuity and back pay.

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

Section 1.

new text begin STATE PATROL PLAN JOINT AND SURVIVOR ANNUITY FOR
SURVIVING SPOUSE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms as used in this section have the meanings
given to them.
new text end

new text begin (1) "Deceased retiree" means a person who:
new text end

new text begin (i) was employed by the Minnesota State Patrol beginning in 1968 until retirement in
April 1998, with retirement coverage by the State Patrol plan;
new text end

new text begin (ii) submitted an application for a retirement annuity on February 26, 1998, to the
Minnesota State Retirement System without a signed spousal acknowledgment required
under Minnesota Statutes 1997, section 356.371, subdivision 3, and selected a single life
annuity rather than a joint and survivor annuity; and
new text end

new text begin (iii) died on August 5, 2017.
new text end

new text begin (2) "Eligible person" means a person who is the surviving spouse of the deceased retiree.
new text end

new text begin (3) "Executive director" means the executive director of the Minnesota State Retirement
System.
new text end

new text begin (4) "State Patrol plan" means the State Patrol retirement plan established under Minnesota
Statutes, chapter 352B.
new text end

new text begin (5) "Surviving spouse" means surviving spouse, as defined in Minnesota Statutes, section
352B.011, subdivision 13.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin Notwithstanding any state law to the contrary, an eligible person
may elect to receive a back payment and the survivor portion of a 100 percent joint and
survivor annuity as specified in subdivision 3 upon satisfying the requirements in subdivision
4.
new text end

new text begin Subd. 3. new text end

new text begin Survivor annuity; back pay. new text end

new text begin (a) Upon satisfying the requirements in subdivision
4, an eligible person is entitled to a survivor annuity under paragraph (b) and a back payment
under paragraph (c).
new text end

new text begin (b) The executive director must begin payment of the survivor portion of a 100 percent
joint and survivor annuity as if the deceased retiree had elected a 100 percent joint and
survivor annuity under Minnesota Statutes 1997, section 352B.08, subdivision 3, instead
of a single life annuity. The executive director must determine the amount of the monthly
annuity payments by taking into account all postretirement adjustments that would have
occurred since the deceased retiree began drawing a retirement annuity in 1998. The annuity
starting date for the eligible person's survivor annuity is the first day of the month following
the date the eligible person satisfies the requirements in subdivision 4.
new text end

new text begin (c) The executive director must distribute a back payment from the State Patrol plan in
a lump sum payment to the eligible person or as a direct rollover to an eligible retirement
plan, if elected by the eligible person and permitted under Minnesota Statutes, section
356.635, subdivisions 3 to 7. The back payment is equal to the amount the eligible person
would have received if the eligible person had begun receiving the annuity described in
paragraph (b) on the first of the month after the death of deceased retiree until the annuity
starting date under paragraph (b), with interest, compounded annually, at the rate or rates
specified in Minnesota Statutes, section 356.59, subdivision 2, from the date that each
monthly payment would have been made, minus the difference between the monthly amounts
the deceased retiree received during his lifetime and the amounts the deceased retiree would
have received had he elected to receive a 100 percent joint and survivor annuity instead of
a single life annuity, with interest, compounded annually, at the rate or rates specified in
Minnesota Statutes, section 356.59, subdivision 2, from the date that each monthly payment
was made.
new text end

new text begin Subd. 4. new text end

new text begin Application; deadline. new text end

new text begin An eligible person must apply in writing on forms
provided by the executive director to receive the annuity and back payment under subdivision
3. The application must be made by December 31, 2024, and must include documentation
establishing that the person is an eligible person and any other information the executive
director may require.
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