SF 695

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; public pension plan benefits; 
  1.3             requiring the selection of a joint and survivor 
  1.4             annuity benefit if provided for under the plan; 
  1.5             clarifying certain terms; amending Minnesota Statutes 
  1.6             2000, section 356.371, subdivisions 1, 2, and 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 356.371, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [DEFINITIONS.] As used in this section, the 
  1.11  following terms shall have the meanings given. 
  1.12     (1) "Annuity form" means the payment procedure and duration 
  1.13  of a retirement annuity or disability benefit available to a 
  1.14  member of a public pension fund, based on the period over which 
  1.15  a retirement annuity or disability benefit is payable, 
  1.16  determined by the number of persons to whom the retirement 
  1.17  annuity or disability benefit is payable, and the amount of the 
  1.18  retirement annuity or disability benefit which is payable to 
  1.19  each person. 
  1.20     (2) "Joint and survivor optional annuity" means an optional 
  1.21  annuity form which provides a retirement annuity or disability 
  1.22  benefit to a retired member and the spouse of the member on a 
  1.23  joint basis during the lifetime of the retired member and all or 
  1.24  a portion of the original retirement annuity or disability 
  1.25  benefit amount to the surviving spouse in the event of the death 
  1.26  of the retired member. 
  2.1      (3) "Optional annuity form" means an annuity form which is 
  2.2   elected by a member and is not provided automatically as the 
  2.3   standard annuity form of the public pension fund. 
  2.4      (4) "Public pension fund" means a public pension plan as 
  2.5   defined pursuant to section 356.61 which provides pension or 
  2.6   retirement coverage for public employees, including those funds 
  2.7   set forth in sections 356.20, subdivision 2, and 356.30, 
  2.8   subdivision 3, and any retirement or pension fund, including a 
  2.9   supplemental retirement plan or fund, established, maintained, 
  2.10  or supported by a governmental subdivision or public body whose 
  2.11  revenues are derived from taxation, fees, assessments, or other 
  2.12  public sources. 
  2.13     (5) "Retirement annuity" means a series of monthly payments 
  2.14  to which a former or retired member of a public pension fund is 
  2.15  entitled on account of attaining a specified age and acquiring 
  2.16  credit for a specified period of service, which shall include a 
  2.17  retirement annuity, retirement allowance or service pension.  
  2.18     (6) "Disability benefit" means a series of monthly payments 
  2.19  to which a former or disabled member of a public pension fund is 
  2.20  entitled on account of a physical or mental inability to engage 
  2.21  in specified employment.  
  2.22     Sec. 2.  Minnesota Statutes 2000, section 356.371, 
  2.23  subdivision 2, is amended to read: 
  2.24     Subd. 2.  [PROVISION OF INFORMATION ON ANNUITY FORMS.] 
  2.25  Every public pension fund which provides for an annuity form 
  2.26  other than a single life retirement annuity as an option which 
  2.27  can be elected by an active, disabled or retiring member shall 
  2.28  provide as a part of, or accompanying the annuity application 
  2.29  form, a written statement summarizing the optional annuity forms 
  2.30  which are available, a general indication of the consequences of 
  2.31  selecting one annuity form over another, a calculation of the 
  2.32  actuarial reduction in the amount of the retirement annuity 
  2.33  which would be required for each optional annuity form and the 
  2.34  procedure to be followed to obtain more information from the 
  2.35  public pension fund concerning the optional annuity forms 
  2.36  provided by the fund.  If the public pension fund offers a joint 
  3.1   and survivor optional annuity, the statement must also inform 
  3.2   the member and the member's spouse that the member must select 
  3.3   the joint and survivor optional annuity, naming the spouse as 
  3.4   survivor, unless the member's spouse signs and returns to the 
  3.5   public pension fund a notarized statement in which the spouse 
  3.6   consents to the selection of a different form of benefit and 
  3.7   waives any rights to share in a joint and survivor optional 
  3.8   annuity. 
  3.9      Sec. 3.  Minnesota Statutes 2000, section 356.371, 
  3.10  subdivision 3, is amended to read: 
  3.11     Subd. 3.  [REQUIREMENT OF JOINT AND SURVIVOR ANNUITY 
  3.12  BENEFIT AND NOTICE TO MEMBER'S SPOUSE.] If a Every public 
  3.13  pension fund that provides optional retirement annuity forms 
  3.14  which include for a joint and survivor optional retirement 
  3.15  annuity form potentially applicable to the surviving spouse of a 
  3.16  member, the executive director of the public pension fund shall 
  3.17  send a copy of the written statement required by subdivision 2 
  3.18  to the spouse of the member before the member's election 
  3.19  selection of an optional retirement annuity the form of 
  3.20  retirement benefit.  If the public pension fund provides for a 
  3.21  joint and survivor optional annuity form, the member must be 
  3.22  required to select that annuity form, naming the member's spouse 
  3.23  as survivor, unless the public pension fund receives a signed 
  3.24  and notarized statement from the member's spouse in which the 
  3.25  spouse consents to the selection of a different benefit form and 
  3.26  waives any right to an interest in a joint and survivor optional 
  3.27  annuity. 
  3.28     Following the election selection of a retirement annuity by 
  3.29  the member, a copy of the completed retirement annuity 
  3.30  application and retirement annuity beneficiary form, if 
  3.31  applicable, must be sent by the public pension fund to the 
  3.32  spouse of the retiring member.  A signed acknowledgment must be 
  3.33  required from the spouse confirming receipt of a copy of the 
  3.34  completed retirement annuity application and retirement annuity 
  3.35  beneficiary form unless the spouse's signature confirming the 
  3.36  receipt is on the annuity application form.  If the required 
  4.1   signed acknowledgment is not received from the spouse within 30 
  4.2   days, the public pension fund must send another copy of the 
  4.3   completed retirement annuity application and retirement annuity 
  4.4   beneficiary form, if applicable, to the spouse by certified mail 
  4.5   with restricted delivery.  If a public pension fund receives 
  4.6   notice that the provisions of this section have not been 
  4.7   complied with, or if a member selects a benefit form without the 
  4.8   valid consent of the member's spouse, the public pension plan 
  4.9   shall suspend the payment of monthly benefits and take all 
  4.10  actions necessary to achieve the purpose of this section, 
  4.11  including converting the form of benefit selected into one 
  4.12  providing for a joint and survivor annuity.