SF 3410

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minnesota state retirement 
  1.3             system; establishing an accelerated optional 
  1.4             retirement annuity form; amending Minnesota Statutes, 
  1.5             section 352.116, subdivision 3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 352.116, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [OPTIONAL ANNUITIES.] (a) The board shall 
  1.10  establish an optional retirement annuity in the form of a joint 
  1.11  and survivor annuity.  
  1.12     (b) The board may also establish an optional annuity in the 
  1.13  form of an annuity payable for a period certain and for life 
  1.14  thereafter.  
  1.15     (c) In addition, the board may shall also establish an 
  1.16  optional annuity that takes the form of an annuity calculated on 
  1.17  the basis of the age of the retired employee at retirement and 
  1.18  payable for the period before the retired employee becomes 
  1.19  eligible for social security old age retirement benefits in a 
  1.20  greater amount than the amount of the annuity calculated under 
  1.21  subdivision 2 on the basis of the age of the retired employee at 
  1.22  retirement.  For each year that the retiring employee is under 
  1.23  age 62, up to five percent of the total single life annuity 
  1.24  required reserves may be used to accelerate the optional 
  1.25  retirement annuity.  This greater amount shall be paid until the 
  2.1   end of the month in which the retired employee reaches age 62, 
  2.2   at which time the annuity shall be reduced.  
  2.3      (d) Except as provided in subdivision 3a, the optional 
  2.4   forms required or authorized in this section must be actuarially 
  2.5   equivalent to the normal single life annuity forms provided in 
  2.6   sections 352.115 and 352.116, whichever applies.  
  2.7      Sec. 2.  [EFFECTIVE DATE.] 
  2.8      (a) Section 1 is effective the day following final 
  2.9   enactment. 
  2.10     (b) The optional annuity form specified in Minnesota 
  2.11  Statutes, section 352.116, subdivision 3, paragraph (a), must be 
  2.12  implemented by August 1, 2002.  The cost of any actuarial work 
  2.13  related to establishing the optional annuity form must be billed 
  2.14  back by the legislative commission on pensions and retirement to 
  2.15  the Minnesota state retirement system.