SF 423

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minneapolis teachers 
  1.3             retirement fund association; permitting the 
  1.4             designation of certain supplemental needs trusts as 
  1.5             the designated beneficiary of an optional annuity form.
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [MINNEAPOLIS TEACHERS RETIREMENT FUND 
  1.8   ASSOCIATION; INCLUDING SUPPLEMENTAL NEEDS TRUST IN OPTIONAL 
  1.9   ANNUITY ELECTION.] 
  1.10     (a) Notwithstanding anything in article 25.1(c) of the 
  1.11  articles of incorporation of the Minneapolis teachers retirement 
  1.12  fund association to the contrary, a retiring member of the basic 
  1.13  program of the Minneapolis teachers retirement fund association 
  1.14  may designate a qualified supplemental needs trust under 
  1.15  paragraph (b) as the remainder recipient on an optional 
  1.16  retirement annuity form for a period not to exceed the lifetime 
  1.17  of the beneficiary of the supplemental needs trust. 
  1.18     (b) A qualified supplemental needs trust is a trust that: 
  1.19     (1) was established on or after July 1, 1992; 
  1.20     (2) was established solely for the benefit of one person 
  1.21  who has a disability under federal Social Security 
  1.22  Administration supplemental security income or retirement, 
  1.23  survivors, and disability insurance disability determination 
  1.24  standards who was determined as such before the creation of the 
  1.25  trust; 
  2.1      (3) is funded, in whole or in part, by the primary 
  2.2   recipient of the optional annuity form and, unless the trust is 
  2.3   a Zebley trust, is not funded by the beneficiary, the 
  2.4   beneficiary's spouse, or a person who is required to pay a sum 
  2.5   to or for the trust beneficiary under the terms of litigation or 
  2.6   a litigation settlement; 
  2.7      (4) is established to cover reasonable living expenses and 
  2.8   other basic needs of the disabilitant, in whole or in part, in 
  2.9   instances when public assistance does not provide sufficiently 
  2.10  for these needs; 
  2.11     (5) is not permitted to make disbursement to replace or 
  2.12  reduce public assistance otherwise available; 
  2.13     (6) is irrevocable; 
  2.14     (7) terminates upon the death of the disabled person for 
  2.15  whose benefit it was established; and 
  2.16     (8) is determined by the executive director to be a trust 
  2.17  that contains excluded assets for purposes of the qualification 
  2.18  for public entitlement benefits under the applicable federal and 
  2.19  state laws and regulations. 
  2.20     Sec. 2.  [EFFECTIVE DATE.] 
  2.21     Section 1 is effective on the day following final enactment.