as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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:
Minnesota Statutes 2006, section 356.46, is amended to read:
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 beginnew 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 beginas defined under section
356.63, paragraph (b)deleted text endnew text beginnew 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.
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 beginthe optionaldeleted text end new text beginnew text endannuity forms provided by the plan.new text beginnew text end
(a) deleted text beginIf adeleted text end new text beginnew text endpublic pension plan new text beginnew text endprovides deleted text beginoptional
retirement annuity forms which includedeleted text end new text beginnew text enda joint and survivor optional retirement
annuity deleted text beginformdeleted 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 beginelectiondeleted text end new text beginnew text endof
deleted text begin an optional retirement annuitydeleted text endnew text beginnew text end.
(b) Following the deleted text beginelectiondeleted text end new text beginnew text endof 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 beginnew text endto 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 beginnew text end
new text begin new text end
new text begin new text end