Minnesota Legislature
SF 1167
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 01:48pm
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A bill for an act
relating to retirement; Public Employees Retirement Association police and fire
plan; amending disability provisions for members who are age 55 and older;
amending Minnesota Statutes 2020, section 353.656, subdivisions 1, 1a, 1b, 3, 3a,
5a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 353.656, subdivision 1, is amended to read:
Subdivision 1.
Duty disability; computation of benefits.
(a) A member of the police
and fire plandeleted text begin , other thandeleted text end new text begin who (1) is not new text end a firefighter covered by section 353.6511, or a police
officer covered by section 353.6512, deleted text begin who is determined to qualify fordeleted text end new text begin (2) has a condition
that meets the definition of a new text end duty disability deleted text begin as defined indeleted text end new text begin under new text end section 353.01, subdivision
41, new text begin (3) has filed a valid application under section 353.031, and (4) is under age 55, new text end is entitled
to receive disability benefits during the period of such disability in an amount equal to 60
percent of the new text begin member's new text end average salary as defined deleted text begin indeleted text end new text begin under new text end section 353.01, subdivision 17a,
plus an additional 3.0 percent of that average salary for each year of service in excess of 20
years.
(b) deleted text begin To be eligible for a benefit under paragraph (a), thedeleted text end new text begin A new text end member deleted text begin must havedeleted text end new text begin of the
police and fire plan who meets the requirements under paragraph (a), clauses (1) to (3), but
who is age 55 or older, is 100 percent vested in and entitled to receive a retirement annuity.
The amount of the retirement annuity must be the greater ofnew text end :
(1) deleted text begin not met the age and vesting requirements fordeleted text end new text begin a disability benefit calculated under
paragraph (a); or
new text end
new text begin (2) new text end a retirement annuity new text begin calculated new text end under section 353.651, subdivision deleted text begin 1; ordeleted text end new text begin 3.
new text end
deleted text begin
(2) met the age and vesting requirements under that subdivision, but does not have at
least 20 years of allowable service credit.
deleted text end
deleted text begin
(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period
of 60 months from the disability benefit accrual date and at the end of that period is subject
to provisions of subdivision 5a.
deleted text end
deleted text begin (d)deleted text end new text begin (c) new text end If the disability under this subdivision occurs before the member has at least five
years of allowable service credit in the police and fire plan, the disability benefit must be
computed on the average salary from which deductions were made for contribution to the
police and fire fund.
Sec. 2.
Minnesota Statutes 2020, section 353.656, subdivision 1a, is amended to read:
Subd. 1a.
Total and permanent duty disability; computation of benefits.
(a) A member
of the police and fire plandeleted text begin , other thandeleted text end new text begin who (1) is not new text end a firefighter covered by section 353.6511,
or a police officer covered by section 353.6512, deleted text begin whose disablingdeleted text end new text begin (2) has a new text end condition deleted text begin is
determined to bedeleted text end new text begin that meets the definition of new text end a duty disability new text begin under section 353.01,
subdivision 41, and new text end that is also a deleted text begin permanent anddeleted text end total new text begin and permanent new text end disability as defined
deleted text begin indeleted text end new text begin under new text end section 353.01, subdivision 19, new text begin and (3) has filed a valid application under section
353.031, new text end is entitled to receive, for life, disability benefits in an amount equal to 60 percent
of the new text begin member's new text end average salary as defined deleted text begin indeleted text end new text begin under new text end section 353.01, subdivision 17a, plus
an additional 3.0 percent of that average salary for each year of service in excess of 20 years.
(b) A disability benefit payable under paragraph (a) is subject to eligibility review under
section 353.33, subdivision 6, but the review may be waived if the executive director receives
a written statement from the association's medical advisor that no improvement can be
expected in the member's disabling condition that was the basis for payment of the benefit
under paragraph (a). A member receiving a disability benefit under this subdivision who is
found to no longer deleted text begin be permanently and totally disableddeleted text end new text begin have a total and permanent disability
new text end as defined under section 353.01, subdivision 19, but continues to deleted text begin meet the definition for
receipt ofdeleted text end new text begin have new text end a duty disability new text begin as defined new text end under section 353.01, subdivision 41, is subject
to subdivision 1 upon written notice from the association's medical advisor that the person
deleted text begin isdeleted text end no longer deleted text begin considered permanently and totally disableddeleted text end new text begin has a total and permanent disabilitynew text end ,
and may, upon application, elect an optional annuity under subdivision 1b.
(c) If a member approved for disability benefits under this subdivision dies before
attaining normal retirement age as defined deleted text begin indeleted text end new text begin under new text end section 353.01, subdivision 37, paragraph
(b), or within 60 months of the effective date of the disability, whichever is later, the
surviving spouse is entitled to receive a survivor benefit under section 353.657, subdivision
2, paragraph (a), clause (1), if the death is the direct result of the disabling condition for
which disability benefits were approved, or section 353.657, subdivision 2, paragraph (a),
clause (2), if the death is not directly related to the disabling condition for which benefits
were approved under this subdivision.
(d) If the election of an actuarial equivalent optional annuity is not made at the time
new text begin payment of new text end the deleted text begin permanent anddeleted text end total new text begin and permanent new text end disability benefit accrues, an election
must be made within 90 days before the member attains normal retirement age as defined
under section 353.01, subdivision 37, paragraph (b), or deleted text begin havingdeleted text end new text begin has new text end collected total and
permanent disability benefits for 60 months, whichever is later. If a member receiving
disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
Sec. 3.
Minnesota Statutes 2020, section 353.656, subdivision 1b, is amended to read:
Subd. 1b.
Optional annuity election.
(a) A disabled member of the police and fire fund
may elect to receive the normal disability benefit or an actuarial equivalent optional annuity.
If the election of an actuarial equivalent optional annuity is made before the commencement
of payment of the disability benefit, the optional annuity must begin to accrue on the same
date as the disability benefit covering only the disability benefit recipient would have accrued.
(b) If an election of an optional annuity is not made before the commencement of the
disability benefit, the disability benefit recipient may elect an optional annuity:
(1) within 90 days before normal retirement age;
(2) upon the filing of an application to convert to an early retirement annuity, if electing
to convert to an early retirement annuity before the normal retirement age;new text begin or
new text end
deleted text begin
(3) within 90 days before the expiration of the 60-month period for which a disability
benefit is paid, if the disability benefit is payable because the disabled member did not have
at least 20 years of allowable service at normal retirement age; or
deleted text end
deleted text begin (4)deleted text end new text begin (3) new text end upon deleted text begin being determineddeleted text end new text begin a determination new text end that the disability benefit recipient
continues to be disabled under subdivision 1, but deleted text begin isdeleted text end no longer deleted text begin totally and permanently
disableddeleted text end new text begin has a total and permanent disability new text end under subdivision 1a.
(c) If a disabled member who has named a joint and survivor optional annuity beneficiary
dies before the disability benefit ceases and is recalculated under subdivision 5a, the
beneficiary eligible to receive the joint and survivor annuity may elect to have the annuity
converted at the times designated in paragraph (b), clause (1)deleted text begin ,deleted text end new text begin or new text end (2), deleted text begin or (3),deleted text end whichever
allows for the earliest payment of a higher joint and survivor annuity option resulting from
recalculation under subdivision 5a, paragraph (e).
(d) A disabled member may name a person other than the spouse as beneficiary of a
joint and survivor annuity only if the spouse of the disabled member permanently waives
surviving spouse coverage on the disability application form prescribed by the executive
director.
(e) If the spouse of the member permanently waives survivor coverage, the dependent
child or children, if any, continue to be eligible for dependent child benefits under section
353.657, subdivision 3, and the designated optional annuity beneficiary may draw the
monthly benefit.
(f) Any optional annuity under this subdivision, plus dependent child benefits, if
applicable, are subject to the maximum and minimum family benefit amounts specified in
section 353.657, subdivision 3a.
Sec. 4.
Minnesota Statutes 2020, section 353.656, subdivision 3, is amended to read:
Subd. 3.
Regular disability benefit.
(a) A member of the police and fire plandeleted text begin , other
thandeleted text end new text begin who (1) is not new text end a firefighter covered by section 353.6511, or a police officer covered
by section 353.6512, deleted text begin who qualifies fordeleted text end new text begin (2) has at least one year of allowable service, (3) has
a condition that meets the definition of new text end a regular disability deleted text begin benefit as defined indeleted text end new text begin under new text end section
353.01, subdivision 46, new text begin (4) has filed a valid application under section 353.031, and (5) is
under age 55, new text end is entitled to receive a disability benefitdeleted text begin , after filing a valid application,deleted text end in an
amount equal to 45 percent of the new text begin member's new text end average salary as defined deleted text begin indeleted text end new text begin under new text end section
353.01, subdivision 17a.
(b) deleted text begin To be eligible for a benefit under paragraph (a), thedeleted text end new text begin A new text end member deleted text begin must have at least
one year of allowable service credit and havedeleted text end new text begin of the police and fire plan who meets the
requirements under paragraph (a), clauses (1) to (4), but who is age 55 or older, is entitled
to receive a retirement annuity. The amount of the retirement annuity is the greater ofnew text end :
(1) deleted text begin not met the age anddeleted text end new text begin a disability benefit calculated under paragraph (a), not subject
to the new text end vesting requirements deleted text begin fordeleted text end new text begin under section 353.01, subdivision 47; or
new text end
new text begin (2) new text end a retirement annuity new text begin calculated new text end under section 353.651, subdivision deleted text begin 1; ordeleted text end new text begin 3, subject
to the vesting requirements under section 353.01, subdivision 47.
new text end
deleted text begin
(2) met the age and vesting requirements under that subdivision, but does not have at
least 15 years of allowable service credit.
deleted text end
deleted text begin
(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period
of 60 months from the disability benefit accrual date and, at the end of that period, is subject
to provisions of subdivision 5a.
deleted text end
deleted text begin (d)deleted text end new text begin (c) new text end For a member who is employed as a full-time firefighter by the Department of
Military Affairs of the state of Minnesota, allowable service as a full-time state Military
Affairs Department firefighter credited by the Minnesota State Retirement System may be
used in meeting the minimum allowable service requirement of this subdivision.
Sec. 5.
Minnesota Statutes 2020, section 353.656, subdivision 3a, is amended to read:
Subd. 3a.
Total and permanent regular disability; computation of benefits.
(a) A
member of the police and fire plan, deleted text begin other thandeleted text end new text begin who (1) is not new text end a firefighter covered by section
353.6511, or a police officer covered by section 353.6512, deleted text begin whose disablingdeleted text end new text begin (2) has a
new text end condition deleted text begin is determined to bedeleted text end new text begin that meets the definition of new text end a regular disability under section
353.01, subdivision 46, new text begin and new text end that is also a deleted text begin permanent anddeleted text end total new text begin and permanent new text end disability as
defined deleted text begin indeleted text end new text begin under new text end section 353.01, subdivision 19, new text begin and (3) has filed a valid application under
section 353.031, new text end is entitled to receive, for life, a disability benefit in an amount equal to 45
percent of the new text begin member's new text end average salary as defined deleted text begin indeleted text end new text begin under new text end section 353.01, subdivision 17a,
plus an additional 3.0 percent of that average salary for each year of service in excess of 15
years.
(b) A disability benefit payable under paragraph (a) is subject to eligibility review under
section 353.33, subdivision 6, but the review may be waived if the executive director receives
a written statement from the association's medical advisor that no improvement can be
expected in the member's disabling condition that was the basis for payment of the benefit
under paragraph (a). A member receiving a disability benefit under this subdivision who is
found to no longer be deleted text begin permanently and totally disableddeleted text end new text begin have a total and permanent disability
new text end as defined under section 353.01, subdivision 19, but continues to deleted text begin meet the definition for
receipt ofdeleted text end new text begin have new text end a regular disability new text begin as defined new text end under section 353.01, subdivision 46, is subject
to subdivision 3 upon written notice from the association's medical advisor that the person
deleted text begin isdeleted text end no longer deleted text begin considered permanently and totally disableddeleted text end new text begin has a total and permanent disabilitynew text end .
(c) A member approved for disability benefits under this subdivision may elect to receive
a normal disability benefit or an actuarial equivalent optional annuity. If the election of an
actuarial equivalent optional annuity is not made at the time new text begin payment of new text end the total and
permanent disability benefit accrues, an election must be made within 90 days before the
member attains normal retirement age as defined deleted text begin indeleted text end new text begin under new text end section 353.01, subdivision 37,
paragraph (b), or deleted text begin havingdeleted text end new text begin has new text end collected disability benefits for 60 months, whichever is later.
No surviving spouse benefits are payable if the member dies during the period in which a
normal total and permanent disability benefit is being paid. If a member receiving disability
benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
Sec. 6.
Minnesota Statutes 2020, section 353.656, subdivision 5a, is amended to read:
Subd. 5a.
Cessation of disability benefit.
(a) The association shall cease the payment
of any disability benefit the first of the month following the reinstatement of a member to
full time or less than full-time service in a position covered by the police and fire fund.
(b) A disability benefit paid to a disabled member of the police and fire plan, that was
granted under laws in effect after June 30, 2007, terminatesnew text begin :
new text end
new text begin (1)new text end at the end of the month in which the memberdeleted text begin :
deleted text end
deleted text begin (1)deleted text end reaches normal retirement age;new text begin or
new text end
deleted text begin
(2) if the disability benefit is payable for a 60-month period as determined under
subdivisions 1 and 3, as applicable, the first of the month following the expiration of the
60-month period; or
deleted text end
deleted text begin (3)deleted text end new text begin (2) new text end if the disabled member so chooses, new text begin at new text end the end of the month in which the member
has elected to convert to an early retirement annuity under section 353.651, subdivision 4.
(c) If the police and fire plan member continues to be disabled when the disability benefit
terminates under this subdivision, the member is deemed to be retired. The individual is
entitled to receive a normal retirement annuity or an early retirement annuity under section
353.651, whichever is applicable, as further specified in paragraph (d) or (e). If the individual
did not previously elect an optional annuity under subdivision 1b, paragraph (a), the
individual may elect an optional annuity under subdivision 1b, paragraph (b).
(d) A member of the police and fire plan who is receiving a disability benefit under this
section may, upon application, elect to receive an early retirement annuity under section
353.651, subdivision 4, at any time after attaining age 50, but must convert to a retirement
annuity no later than the end of the month in which the disabled member attains normal
retirement age. An early retirement annuity elected under this subdivision must be calculated
on the disabled member's accrued years of service and average salary as defined deleted text begin indeleted text end new text begin under
new text end section 353.01, subdivision 17a, and when elected, the member is deemed to be retired.
(e) When an individual's disability benefit terminates under paragraph (b), clause (1) deleted text begin or
(2)deleted text end , and is recalculated as a retirement annuity, the annuity must be based on clause (1) or
(2), whichever provides the greater amount:
(1) the benefit amount at the time of reclassification, including all prior adjustments
provided under Minnesota Statutes 2008, section 11A.18, through January 1, 2009, and
thereafter as provided in section 356.415; or
(2) a benefit amount computed on the member's actual years of accrued allowable service
credit and the law in effect at the time the disability benefit first accrued, plus any increases
that would have applied since that date under Minnesota Statutes 2008, section 11A.18,
through January 1, 2009, and thereafter as provided in section 356.415.
Sec. 7. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 6 are effective July 1, 2021, and apply to disability applications received
by the executive director on or after that date.
new text end