Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                         CHAPTER 67-H.F.No. 806 
           An act relating to retirement; St. Paul teachers 
          retirement fund association; special postretirement 
          adjustment for certain pre-1978 retirees. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [ST. PAUL TEACHERS SPECIAL POSTRETIREMENT 
ADJUSTMENT.] 
    Subdivision 1.  [ENTITLEMENT.] A person who is receiving, 
on November 30, 1991, a retirement annuity, disability benefit, 
or a surviving spouse's annuity or benefit from the basic 
program of the St. Paul teachers retirement fund association 
computed under the laws in effect after December 31, 1969, but 
before June 30, 1978, is entitled to receive a postretirement 
adjustment from the association in the amount specified in 
subdivision 2. 
    Subd. 2.  [AMOUNT OF POSTRETIREMENT ADJUSTMENT.] (a) The 
postretirement adjustment in 1991 is a lump sum which is the 
greater of: 
    (1) $27.34 for each full year of allowable service credited 
to the person by the association; or 
    (2) the difference between: 
    (i) the product of $437.38 times the number of full years 
of allowable service credited to the person by the association; 
and 
    (ii) the sum of the benefits payable to the person from any 
Minnesota public employee pension plan, and cash benefits 
payable to the person from the Social Security Administration. 
    In 1992 and each subsequent year, the amount received in 
the preceding year must be increased by the same percentage 
applied to regular annuities paid from the Minnesota 
postretirement investment fund under Minnesota Statutes, section 
11A.18. 
    (b) The postretirement adjustment provided for in this 
section is payable on December 1, 1991, for those persons 
receiving an annuity or benefit on November 30, 1991.  In 
subsequent years, the adjustment must be paid on December 1 to 
those persons receiving an annuity or benefit on the preceding 
November 30.  A person who is eligible may elect to participate 
in an optional annuity or benefit receipt schedule under 
subdivision 4.  This section does not authorize the payment of a 
postretirement adjustment to an estate if the annuity or benefit 
recipient dies before the November 30 eligibility date.  
Notwithstanding Minnesota Statutes, section 356.18, the 
postretirement adjustment provided for in this section must be 
paid automatically unless the intended recipient files a written 
notice with the retirement fund requesting that the 
postretirement adjustment not be paid. 
    Subd. 3.  [OPTIONAL POSTRETIREMENT ADJUSTMENT PAYMENT 
SCHEDULE.] Basic plan annuity or benefit recipients receiving 
adjustments under subdivision 2, paragraph (a), clause (2), and 
whose adjustment exceeds 20 percent of their annuity or benefit 
may elect to have the adjustment paid in equal monthly amounts 
instead of a lump sum.  Selection of this option must be made by 
the recipient in writing on forms prepared by the association 
and may be revoked in writing before November 1 preceding the 
lump sum distribution in any year.  Upon the death of the 
annuity or benefit recipient, any remaining unpaid monthly 
amounts must be paid to the surviving spouse, or if none, to the 
annuity or benefit recipient's beneficiary or estate. 
    Subd. 4.  [SOCIAL SECURITY INFORMATION.] To be eligible for 
a postretirement adjustment calculated under subdivision 2, 
paragraph (a), clause (2), a person must authorize the Social 
Security Administration to release to the retirement association 
information on the person's social security cash benefits.  This 
authorization must be received by the retirement association 
before the December 1, 1991, payment date. 
    Subd. 5.  [REPORT.] By September 30, 1992, the St. Paul 
teachers retirement fund association shall report to the 
legislature and the commissioner of finance on the number of 
annuity and benefit recipients eligible for each type of 
adjustment established in subdivision 2, the annual cost of each 
type of adjustment, and the estimated actuarial liability 
associated with each. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective July 1, 1991. 
    Presented to the governor May 7, 1991 
    Signed by the governor May 10, 1991, 3:30 p.m.