Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 403-S.F.No. 2182 
           An act relating to retirement; Duluth teachers 
          retirement fund association; proposing coding for new 
          law in Minnesota Statutes, chapter 354A; repealing 
          Laws 1985, chapter 259, section 2; and Laws 1990, 
          chapter 570, article 7, section 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [354A.27] [DULUTH TEACHERS RETIREMENT FUND 
ASSOCIATION; LUMP SUM POSTRETIREMENT ADJUSTMENT MECHANISM.] 
    Subdivision 1.  [ELIGIBILITY.] A person receiving a 
retirement annuity, disability benefit, or surviving spouse 
benefit or annuity from the Duluth teachers retirement fund 
association who has received the annuity or benefit for at least 
one year may be entitled to receive a lump sum postretirement 
adjustment under subdivision 2, in the discretion of the board 
of trustees under subdivision 3. 
    Subd. 2.  [ADJUSTMENT AMOUNT.] The amount an eligible 
annuitant or benefit recipient is entitled to receive must be 
determined by the governing board as follows: 
    (1) the years of service credit of each annuitant or the 
years of service credit of each decedent on behalf of whom a 
survivor benefit is paid must be added to the number of years 
the annuity or survivor benefit has been paid; 
    (2) the dollar amount equal to up to one percent of the 
current assets of the fund, as defined under section 356.215, 
subdivision 1, clause (5), at the end of the previous fiscal 
year must be determined by the board of trustees; 
    (3) the dollar amount determined under clause (2) must be 
divided by the total number of years for each annuitant or 
benefit recipient under clause (1) to arrive at the adjustment 
figure per unit; and 
    (4) the adjustment for each eligible annuitant or benefit 
recipient is equal to the amount per unit determined under 
clause (3) multiplied by the number of years determined under 
clause (1). 
    Subd. 3.  [DISCRETION TO MODIFY ADJUSTMENT AMOUNT.] The 
board of trustees may eliminate or reduce the adjustment amount 
in any fiscal year. 
    Subd. 4.  [ANNUITIZATION OPTION.] The lump sum 
postretirement adjustment payable under this section, at the 
request of the annuitant or benefit recipient and with the 
approval of the board of trustees, may be converted to a monthly 
annuity of an equivalent actuarial value, based on: 
    (1) the age of the annuitant or benefit recipient on the 
date of the lump sum postretirement adjustment; 
    (2) the mortality table established by the board of 
trustees of the association and approved under section 356.215, 
subdivision 7; and 
    (3) a postretirement interest rate assumption of 7.5 
percent. 
    Sec. 2.  [BYLAW OR ARTICLE OF INCORPORATION AMENDMENT 
AUTHORIZED.] 
    Authorization is granted in accordance with Minnesota 
Statutes, section 354A.12, subdivision 4, for the Duluth 
teachers retirement fund association to amend its articles of 
incorporation or bylaws to implement the postretirement 
adjustment mechanism set forth in section 1 if the 
postretirement adjustment mechanism approved in Laws 1985, 
chapter 259, section 2 or 3, whichever applies, and augmented by 
Laws 1990, chapter 570, article 7, section 4, is eliminated. 
    Sec. 3.  [REPEALER.] 
    Laws 1985, chapter 259, section 2; and Laws 1990, chapter 
570, article 7, section 4, are repealed. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective on July 1, 1992. 
    Presented to the governor April 2, 1992 
    Signed by the governor April 3, 1992, 4:06 p.m.