Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 440-H.F.No. 2063 
           An act relating to retirement; changing provisions 
          governing reduced annuities from the public employees 
          retirement association due to reemployment of 
          annuitants; amending Minnesota Statutes 1990, section 
          353.37, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 353.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  [EFFECT ON ANNUITY.] (a) The annuity of a 
person otherwise eligible for an annuity under this chapter must 
be suspended reduced if the person reenters, and for as long as 
the person remains in, public service as a nonelective employee 
of a governmental subdivision in a position covered by this 
chapter, if earned compensation for the reemployment service 
equals or exceeds the annual maximum earnings allowable for that 
age for the continued receipt of full benefit amounts monthly 
under the federal old age, survivors and disability insurance 
program as set by the secretary of health and human services 
under United States Code, title 42, section 403, in any calendar 
year.  In the event that the person has not yet reached the 
minimum age for the receipt of social security benefits, the 
maximum earnings for the person are equal to the annual maximum 
earnings allowable for the minimum age for the receipt of social 
security benefits.  The suspension of the annuity must commence 
as of the first of the month after the month in which the 
maximum permitted compensation is exceeded, but it applies only 
to those months in which the annuitant is actually employed in 
nonelective service in a position covered by this chapter.  An 
annuitant of the association who is elected to public office 
after retirement is entitled to hold the office and receive the 
annuity otherwise payable from the public employees retirement 
association.  Upon proper showing by an annuitant that the 
reason for the suspension of the annuity payments no longer 
exists, the monthly annuity payments must be resumed. 
    (b) The amount of the reduction is as follows: 
    (1) for a person who has not reached normal retirement age, 
one-half of the amount in excess of the applicable reemployment 
income maximum specified in this subdivision; 
    (2) for a person who has reached normal retirement age, but 
has not reached age 70, one-third of the amount in excess of the 
applicable reemployment income maximum specified in this 
subdivision. 
For a person who has reached age 70, or for income earned 
through service in an elected office, there is no reduction upon 
reemployment, regardless of income.  Any reduction must be made 
from the annuity payable for the calendar year immediately 
following the calendar year in which the excess amount was 
earned.  The executive director may adopt policies regarding 
reduction of annuities under this section.  
    (c) Except as provided in paragraphs (a) and (b), public 
service performed by an annuitant subsequent to retirement under 
this chapter does not increase or decrease the amount of an 
annuity when payment of the annuity is resumed.  The annuitant 
may not make any further contributions to the retirement fund 
association's defined benefit plan by reason of this subsequent 
public service. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective retroactive to January 1, 1992. 
    Presented to the governor April 9, 1992 
    Signed by the governor April 10, 1992, 2:14 p.m.