Minnesota Legislature
SF 2266
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to retirement; Minnesota public pension plan benefits; requiring the
selection of a joint and survivor annuity benefit if provided for under the plan;
amending Minnesota Statutes 2006, section 356.46.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 356.46, is amended to read:
356.46 APPLICATION FOR RETIREMENT ANNUITY; PROCEDURE
FOR ELECTING ANNUITY FORMnew text begin ; MANDATORY JOINT AND SURVIVOR
OPTIONAL ANNUITY FORMnew text end .
Subdivision 1.
Definitions.
As used in this section, each of the following terms shall
have the meaning given.
(a) "Annuity form" means the payment procedure and duration of a retirement
annuity or disability benefit available to a member of a public pension fund, based on the
period over which a retirement annuity or disability benefit is payable, determined by the
number of persons to whom the retirement annuity or disability benefit is payable, and the
amount of the retirement annuity or disability benefit which is payable to each person.
(b) "Joint and survivor optional annuity" means an optional annuity form which
provides a retirement annuity or disability benefit to a retired member and the spouse of
the member on a joint basis during the lifetime of the retired member and all or a portion
of the original retirement annuity or disability benefit amount to the surviving spouse
in the event of the death of the retired member.new text begin The minimum continuing benefit to a
surviving spouse under a joint and survivor optional annuity must be at least 50 percent of
the monthly amount paid just before the death of the primary annuitant.
new text end
(c) "Optional annuity form" means an annuity form which is elected by a member
and is not provided automatically as the standard annuity form of the public pension plan.
(d) "Public pension plan" means a public pension plan deleted text begin as defined under section
356.63, paragraph (b)deleted text end new text begin that provides pension or retirement coverage for public employees,
including those plans and funds specified in sections 356.20, subdivision 2, and 356.30,
subdivision 3, and any retirement or pension fund, including a supplemental retirement
plan or fund, established, maintained, or supported by a governmental subdivision or
public body whose revenues are derived from taxation, fees, assessments, or other public
sourcesnew text end .
(e) "Retirement annuity" means a series of monthly payments to which a former or
retired member of a public pension fund is entitled due to attaining a specified age and
acquiring credit for a specified period of service, which includes a retirement annuity,
retirement allowance, or service pension.
(f) "Disability benefit" means a series of monthly payments to which a former or
disabled member of a public pension fund is entitled due to a physical or mental inability
to engage in specified employment.
Subd. 2.
Provision of information on annuity forms.
Every public pension plan
which provides for an annuity form other than a single life retirement annuity as an option
which can be elected by an active, disabled, or retiring member shall provide as a part
of, or accompanying the annuity application form, a written statement summarizing the
optional annuity forms which are available, a general indication of the consequences of
selecting one annuity form over another, a calculation of the actuarial reduction in the
amount of the retirement annuity which would be required for each optional annuity form,
and the procedure to be followed to obtain more information from the public pension fund
concerning deleted text begin the optionaldeleted text end new text begin all new text end annuity forms provided by the plan.new text begin If the public pension plan
offers a joint and survivor optional annuity, the statement must also inform the member
and the member's spouse that, notwithstanding any law to the contrary, the member must
select the joint and survivor optional annuity, naming the spouse as survivor, unless the
member's spouse signs and returns to the public pension fund a notarized statement in
which the spouse consents to the selection of a different form of benefit and waives any
rights to share in a joint and survivor optional annuity.
new text end
Subd. 3.
Requirement of new text begin joint and survivor annuity benefit and new text end notice to
member's spouse.
(a) deleted text begin If adeleted text end new text begin Every new text end public pension plan new text begin administration that new text end provides deleted text begin optional
retirement annuity forms which includedeleted text end new text begin for new text end a joint and survivor optional retirement
annuity deleted text begin formdeleted text end potentially applicable to the surviving spouse of a memberdeleted text begin , the executive
director of the public pension plandeleted text end shall send a copy of the written statement required by
subdivision 2 to the spouse of the member before the member's deleted text begin electiondeleted text end new text begin selection new text end of
deleted text begin an optional retirement annuitydeleted text end new text begin the form of retirement benefit. If the public pension plan
provides for a joint and survivor optional annuity form, the member is required to select
that annuity form, naming the member's spouse as survivor, unless the public pension plan
administration receives a signed and notarized statement from the member's spouse in
which the spouse consents to the selection of a different benefit form and waives any right
to an interest in a joint and survivor optional annuitynew text end .
(b) Following the deleted text begin electiondeleted text end new text begin selection new text end of a retirement annuity by the member, a copy
of the completed retirement annuity application and retirement annuity beneficiary form,
if applicable, must be sent by the public pension plan new text begin administration new text end to the spouse of the
retiring member. A signed acknowledgment must be required from the spouse confirming
receipt of a copy of the completed retirement annuity application and retirement annuity
beneficiary form, unless the spouse's signature confirming the receipt is on the annuity
application form. If the required signed acknowledgment is not received from the
spouse within 30 days, the public pension plan must send another copy of the completed
retirement annuity application and retirement annuity beneficiary form, if applicable, to
the spouse by certified mail with restricted delivery.new text begin If a public pension plan receives
notice that the provisions of this section have not been complied with, or if a member
selects a benefit form without the valid consent of the member's spouse, the public pension
plan shall suspend the payment of monthly benefits and shall take all actions necessary
to comply with this section, including converting the form of benefit selected into one
providing for a joint and survivor annuity.
new text end
new text begin Subd. 4. new text end
new text begin Application to volunteer fire plans. new text end
new text begin
This section does not apply to
lump-sum service pensions provided under section 424A.02, subdivision 3, paragraph
(d), by a volunteer fire relief association.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2007, and applies to annuities
that commence on or after that date.
new text end