SF 1762

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; legislators retirement plan; providing an option for the
payment of a partial benefit amount to alternative payees under a marriage
dissolution decree; proposing coding for new law in Minnesota Statutes, chapter
3A.

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

Section 1.

new text begin [3A.021] OPTIONAL DIVISION OF RETIREMENT ALLOWANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Election of division. new text end

new text begin Notwithstanding section 518.58, subdivision 4,
paragraph (a), clause (5), a former legislator or the former spouse of a former legislator, if
a portion of the former legislator's retirement allowance is awarded to the former spouse
under a marriage dissolution property division decree by a court of competent jurisdiction,
may elect to have payment of the portion of the legislator's retirement allowance
designated in the decree as payable to the former spouse beginning as of the first day of
the month next following the date on which the former legislator attains the age of 62,
even if the former legislator has not applied for the receipt of retirement allowance as of
that date. In all other respects, the optional retirement allowance division is governed
by section 518.58, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Calculation of subsequent portion of the retirement allowance.
new text end

new text begin Upon the eventual application for a retirement allowance under this chapter by a former
legislator who elected or was affected by the election of a benefit under subdivision 1,
the subsequent retirement allowance must be adjusted to be the actuarial equivalent of
the balance of the present value of the retirement allowance of the former legislator upon
the effective date of the application remaining after a reduction equal to the present value
of the partial benefit previously paid and subsequently payable to the former spouse,
as calculated by the actuary retained under section 356.214 or as calculated under a
procedure specified by the actuary. The retirement allowance present value calculations
must include the effect of section 356.30.
new text end

new text begin Subd. 3. new text end

new text begin Bounce back. new text end

new text begin If the former spouse predeceases the former legislator, the
retirement allowance of the former legislator must be recomputed as the full retirement
allowance, effective on the first of the month next following the death of the former spouse.
new text end

new text begin Subd. 4. new text end

new text begin No optional annuity form. new text end

new text begin Section 3A.02, subdivision 5, does not apply
to a partial retirement allowance payable under subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any retirement allowance affected by a marriage dissolution decree rendered
after September 2003.
new text end