SF 2467

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

A bill for an act
relating to retirement; Public Employees Retirement Association police and fire
fund; authorizing a joint and survivor annuity for a divorced spouse of a deceased
retiree who elected a single life annuity.

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

Section 1. new text begin PERA-P&F; JOINT AND SURVIVOR ANNUITY FOR SURVIVING
SPOUSE.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The annuity provided by this section is intended to
compensate for harm caused by the Public Employees Retirement Association, by its
failure to provide an eligible person with information about the benefit options available to
the eligible person's divorced spouse following a consolidation.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) Notwithstanding the election of a single life annuity,
prohibitions against revising an annuity form, and the death of the retiree, a person
specified in paragraph (b) is authorized to receive a joint and survivor annuity as specified
in subdivision 3 upon satisfying the requirements specified in subdivision 4.
new text end

new text begin (b) An eligible person is the surviving divorced spouse of a person who:
new text end

new text begin (1) was born on March 27, 1942;
new text end

new text begin (2) was employed by the South St. Paul Police Department beginning in 1966, with
coverage by the South St. Paul Police Relief Association plan;
new text end

new text begin (3) was an active member of that relief association when the association was
consolidated into the Public Employees Retirement Association police and fire plan;
new text end

new text begin (4) became divorced in 1993;
new text end

new text begin (5) retired in 1999 under the provisions of the Public Employees Retirement
Association police and fire plan, having elected a single life annuity rather than a joint
and survivor annuity; and
new text end

new text begin (6) died on September 9, 2006.
new text end

new text begin Subd. 3. new text end

new text begin Annuity. new text end

new text begin (a) The annuity is the second half of a 50 percent joint and
survivor annuity computed as if the deceased Public Employees Retirement Association
police and fire plan retiree had elected this annuity rather than a single life annuity and had
named the eligible person under subdivision 2 as the beneficiary. The monthly annuity
payments must reflect all applicable postretirement adjustments that would have occurred
since the deceased began drawing a retirement annuity in 1999. The annuity is prospective
only and commences on the first day of the month following the effective date of this
section, and upon making the repayment under paragraph (b), whichever is later.
new text end

new text begin (b) To be eligible for the annuity under paragraph (a), the eligible person under
subdivision 2 must pay to the executive director of the Public Employees Retirement
Association the sum of the monthly differential between the single life annuity amounts
paid to the deceased and the payments the deceased would have received if the deceased
had elected a 50 percent joint and survivor annuity, naming the divorced spouse of the
deceased as the beneficiary. This amount is payable in a lump sum with compound interest
at a monthly rate of 0.71 percent from the date each payment was made to the deceased
until the end of the month in which the lump sum payment under this paragraph is made.
Payment of this lump sum must occur before July 1, 2008.
new text end

new text begin Subd. 4. new text end

new text begin Annuity application. new text end

new text begin An eligible person described in subdivision 2 shall
apply in writing on forms provided by the executive director of the Public Employees
Retirement Association for the annuity provided by this section. The application must
be made before July 1, 2008, and must include all necessary documentation of the
applicability of this section and any other relevant information which the executive
director may require.
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