SF 2070

as introduced - 87th Legislature (2011 - 2012) Posted on 02/24/2012 09:34am

A bill for an act
relating to retirement; public employees defined contribution plan; authorizing
in-service distributions at age 66; amending Minnesota Statutes 2010, section
353D.07, subdivisions 1, 2, 3, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2010, section 353D.07, subdivision 1, is amended to
read:

Subdivision 1.

Type of plan; uniformity.

(a) The plan is a defined contribution plan
the benefits from which are payable upon termination of service, retirement, disability,
deleted text begin or deleted text end death new text begin , or under an in-service withdrawal under subdivision 6 new text end . The amount of benefits
is determined by the value of accumulated contributions plus a proportionate share of
investment income of the fund credited to each individual account.

(b) In the case of ambulance service personnel, eligibility standards must be uniform
among all ambulance service personnel of an ambulance service electing to participate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 353D.07, subdivision 2, is amended to read:

Subd. 2.

Payment of benefits.

Withdrawal of a benefit based on individual
participant contributions and employer contributions plus accrued investment income is
payable upon the death or termination of a participant deleted text begin but not at the time deleted text end new text begin , or when new text end an
individual revokes membership in the defined contribution plan under deleted text begin section 353D.02 deleted text end new text begin
subdivision 6 new text end . deleted text begin An deleted text end new text begin A valid new text end application new text begin , made new text end by or on behalf of the participant new text begin on a form
prescribed by the executive director, new text end must be filed before any payment of benefits deleted text begin may be deleted text end
new text begin is new text end made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 353D.07, subdivision 3, is amended to read:

Subd. 3.

Form of benefit.

A retirement benefit is payable in a lump sum equal to
the value of a participant's account at the date of new text begin the account new text end withdrawal. As an alternative
to a lump-sum distribution, the participant may choose to have the association transfer
the total account value for the purchase of an annuity payable at a designated age to an
insurance company of the participant's choice that is licensed to do business in the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2010, section 353D.07, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin In-service withdrawal option. new text end

new text begin (a) Notwithstanding section 353D.02, a
participant in the plan who has attained at least age 66 may terminate plan coverage
although the person continues in the employment which gave rise to the plan coverage.
new text end

new text begin (b) A termination of coverage under paragraph (a) is irrevocable. Notwithstanding
any law to the contrary, the person is not eligible for the continuing employment to
have coverage by this plan or any other, except for a 403(b), 457(b), or other applicable
supplemental plan in which the person is authorized by law to participate.
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