2004 Minnesota Statutes

CHAPTER 352C. Elective state officers retirement

     352C.01 Legislative finding and intent. 

    The legislature finds that service to Minnesota in the 
 capacity of a constitutional officer as defined in section 
 352C.021 constitutes a unique contribution to the state and that 
 such service is dissimilar to any other public employment.  The 
 legislature further finds that service as a constitutional 
 officer for a period of eight years or longer deprives the 
 individual so serving of normal opportunities to establish 
 retirement benefits in a usual vocational pursuit and justifies 
 adoption of special retirement provisions.  The provisions of 
 this chapter are intended by the legislature to reflect the 
 unique nature of service as a constitutional officer and to have 
 due regard for the unusual disruption of normal retirement 
 planning that such service entails. 

    HIST: 1967 c 700 s 1; 1978 c 796 s 12; 1986 c 444; 1993 c 307 
 art 1 s 27 

     352C.011 Applicability. 

    (a) Except as provided in paragraph (b), this chapter 
 applies only to constitutional officers first elected before 
 July 1, 1997, to a constitutional office.  

    (b) Constitutional officers elected for the first time to a 
 constitutional office after June 30, 1997, or constitutional 
 officers who were elected before July 1, 1997, and who, after 
 July 1, 1998, elect not to be members of the plan established by 
 this chapter are covered by the unclassified employees 
 retirement program governed by chapter 352D. 

    (c) The post-July 1, 1998, coverage election under 
 paragraph (b) is irrevocable and must be made on a form 
 prescribed by the executive director of the Minnesota State 
 Retirement System. 

    HIST: 1997 c 233 art 2 s 2 

  352C.02 Repealed, 1978 c 796 s 46 

     352C.021 Definitions. 

    Subdivision 1.    Terms.  For purposes of this chapter, 
 the following terms shall have the meanings given to them unless 
 the language or context clearly indicates that a different 
 meaning is intended. 

    Subd. 2.    Constitutional officer.  "Constitutional 
 officer" means a person who was duly elected and qualified and 
 is serving as governor, lieutenant governor, attorney general, 
 secretary of state, or state auditor of the state of Minnesota. 

    Subd. 3.    Former constitutional officer.  "Former 
 constitutional officer" means a person who has ceased to be a 
 constitutional officer for any reason, including but not limited 
 to the expiration of the term of office for which the person was 
 elected, retirement or death. 

    Subd. 4.  MS 1992 Renumbered subd 3 

    Subd. 4.    Surviving spouse.  "Surviving spouse" means 
 the unmarried spouse of a deceased constitutional officer or 
 former constitutional officer. 

    Subd. 5.  MS 1992 Renumbered subd 4 

    Subd. 5.    Dependent child.  "Dependent child" means 
 any natural or adopted child of a deceased constitutional 
 officer or a deceased former constitutional officer who is under 
 the age of 18, or who is under the age of 22 and is a full-time 
 student, and who in either case is unmarried and was actually 
 dependent for more than one-half of the child's support upon the 
 constitutional officer or the former constitutional officer for 
 a period of at least 90 days immediately prior to the death of 
 the constitutional officer or the former constitutional officer. 
 The term shall also include a posthumous child of the 
 constitutional officer or the former constitutional officer. 

    Subd. 6.  MS 1992 Renumbered subd 5 

    Subd. 6.    Allowable service.  "Allowable service" 
 means any years or months of service as a constitutional officer 
 if the person made the contributions required by section 352C.09 
 on a current basis.  The service need not be continuous.  For 
 any constitutional officer or former constitutional officer in 
 office on or before July 1, 1967, allowable service shall 
 include any service as a constitutional officer prior to July 1, 
 1967, notwithstanding that the person did not make concurrent 
 contributions as required by section 352C.09. 

    Subd. 7.  MS 1992 Renumbered subd 6 

    Subd. 7.    Director.  "Director" means the executive 
 director of the Minnesota State Retirement System. 

    Subd. 8.  Renumbered subd 7 

    HIST: 1978 c 796 s 13; 1980 c 614 s 123; 1986 c 444; 1993 c 13 
 art 1 s 39; 1993 c 307 art 1 s 28; 2003 c 112 art 2 s 50 

  352C.03 Repealed, 1978 c 796 s 46 

     352C.031 Retirement allowance. 

    Subdivision 1.    Unreduced retirement allowance.  Upon 
 separation from service, a former constitutional officer who has 
 attained the age of at least 62 years and who has at least eight 
 years of allowable service is entitled upon making written 
 application on forms supplied by the director to a normal 
 retirement allowance. 

    Subd. 2.    Reduced retirement allowance.  Upon 
 separation from service, a former constitutional officer who has 
 attained the age of at least 60 years and who has at least eight 
 years of allowable service is entitled upon making written 
 application on forms supplied by the director to a retirement 
 allowance in an amount equal to a normal retirement allowance 
 reduced by one-half of one percent for each month that the 
 former constitutional officer is under age 62. 

    Subd. 3.    Average salary.  Average salary for purposes 
 of calculating the normal retirement allowance pursuant to 
 subdivision 4 shall mean the average of the highest five 
 successive years of salary upon which contributions have been 
 made pursuant to section 352C.09. 

    Subd. 4.    Retirement allowance formula.  (a) This 
 paragraph applies to constitutional officers who terminate that 
 service before July 1, 1997.  The average salary multiplied by 
 2-1/2 percent for each year of allowable service and pro rata 
 for completed months less than a full year shall determine the 
 amount of the normal retirement allowance. 

    (b) This paragraph applies to constitutional officers who 
 terminate that service after June 30, 1997.  The retirement 
 allowance is an amount equal to the rate under paragraph (a) per 
 year of service of the constitutional officer's average monthly 
 salary adjusted for that person on an actuarial equivalent basis 
 to reflect the change in the postretirement interest rate 
 actuarial assumption under section 356.215, subdivision 8, from 
 five percent to six percent.  The adjustment must be calculated 
 by or, alternatively, the adjustment procedure must be specified 
 by the actuary retained by the legislative commission on 
 pensions and retirement. 

    Subd. 5.    Benefit accrual and termination.  The 
 benefit shall begin to accrue the first day of the month in 
 which the application is received by the director but in no 
 event earlier than the day following the termination of service 
 or the attainment of the age required to receive such benefit, 
 whichever is later.  Thereafter, benefits shall be paid on the 
 first day of each calendar month for that month.  The benefit 
 shall cease with the payment for the month in which the retired 
 constitutional officer died. 

    Subd. 6.    Payment of retirement allowances.  
 Retirement allowances payable pursuant to this section shall be 
 paid monthly by the executive director of the Minnesota State 
 Retirement System.  

    HIST: 1978 c 796 s 14; 1981 c 224 s 66; 1993 c 307 art 1 s 29; 
 1997 c 233 art 1 s 35; 2002 c 392 art 11 s 52 

     352C.033 Deferred annuities augmentation. 

    (a) The deferred retirement allowance for any former 
 constitutional officer must be augmented as provided in this 
 section.  The required reserves applicable to the deferred 
 retirement allowance, determined as of the date the retirement 
 allowance begins to accrue using the appropriate mortality table 
 and an interest assumption of six percent, shall be augmented 
 from the first of the month following termination of service as 
 a constitutional officer, or January 1, 1979, whichever is 
 later, to the first day of the month in which the annuity begins 
 to accrue, at the rate of five percent per annum compounded 
 annually until January 1, 1981, and thereafter at the rate of 
 three percent per annum compounded annually until January 1 of 
 the year in which the former constitutional officer attains age 
 55.  From that date to the effective date of retirement, the 
 rate is five percent compounded annually. 

    (b) The retirement allowance of, or the survivor benefit 
 payable on behalf of, a former constitutional officer who 
 terminated service before July 1, 1997, which is not first 
 payable until after June 30, 1997, must be increased on an 
 actuarial equivalent basis to reflect the change in the 
 postretirement interest rate actuarial assumption under section 
 356.215, subdivision 8, from five percent to six percent under a 
 calculation procedure and tables adopted by the board as 
 recommended by an approved actuary and approved by the actuary 
 retained by the Legislative Commission on Pensions and 
 Retirement. 

    HIST: 1978 c 796 s 15; 1992 c 446 s 2; 1993 c 307 art 1 s 30; 
 1997 c 233 art 1 s 36; 2002 c 392 art 11 s 52 

     352C.04 Spouse's and dependent children's survivor 
  benefits. 

    Subdivision 1.    Surviving spouse benefit.  Upon the 
 death of a constitutional officer while actively serving in 
 office, or a former constitutional officer with at least eight 
 years of allowable service, the surviving spouse is entitled to 
 a survivor benefit in the amount of one-half of the retirement 
 allowance of the constitutional officer or the former 
 constitutional officer computed as though the constitutional 
 officer or the former constitutional officer were at least age 
 62 on the date of death and based upon the attained allowable 
 service or eight years, whichever is greater.  The augmentation 
 provided in section 352C.033, if applicable, shall be applied to 
 the month of death.  Upon the death of a former constitutional 
 officer receiving a retirement allowance, the surviving spouse 
 shall be entitled to one-half of the amount of the retirement 
 allowance being paid to the former constitutional officer as of 
 the date of death.  The benefit shall be paid to a surviving 
 spouse eligible therefor during the remainder of the spouse's 
 natural life.  

    Subd. 2.  Repealed, 1976 c 329 s 36 

    Subd. 2a.    Surviving dependent child benefit.  Upon 
 the death of a constitutional officer while serving in office, 
 or a former constitutional officer with at least eight years of 
 allowable service, each dependent child shall be paid a survivor 
 benefit in the following amount:  First dependent child, a 
 monthly benefit which equals 25 percent of the monthly 
 retirement allowance computed as though the constitutional 
 officer or the former constitutional officer were at least age 
 62 on the date of death and based upon the attained allowable 
 service or eight years, whichever is greater; for each 
 additional dependent child or a monthly benefit which equals 
 12-1/2 percent of the monthly retirement allowance computed as 
 in the case of the first child; but the total amount paid to the 
 surviving spouse and dependent children shall not exceed in any 
 one month 100 percent of the monthly allowance of the 
 constitutional officer or the former constitutional officer 
 computed as in the case of the first child.  The augmentation 
 provided in subdivision 1, if applicable, shall be applied to 
 the month of death.  Upon the death of a former constitutional 
 officer receiving a retirement allowance, the surviving 
 dependent child shall be entitled to the applicable percentage 
 of the amount of the retirement allowance being paid as of the 
 date of death.  The payments for dependent children shall be 
 made to the surviving spouse or the guardian of the estate of 
 the dependent child, if there is one.  A posthumous child 
 qualifies as a dependent child for benefits provided herein from 
 the date of its birth. 

    Subd. 2b.  Repealed, 1976 c 329 s 36 

    Subd. 3.    Payment interval.  Spouse's and dependent 
 children's survivor benefits, payable under this section, shall 
 be paid monthly by the executive director of the Minnesota State 
 Retirement System. 

    Subd. 4.    Application for survivor benefits.  A 
 surviving spouse or a guardian of the estate of the dependent 
 child or children entitled to the payment of benefits under this 
 section shall file an application for the benefit with the 
 director, and payment shall commence as of the first day of the 
 month next following the filing of the application and shall be 
 retroactive to the first of the month following the death of the 
 constitutional officer or the former constitutional officer; 
 provided, however, that no payment shall be retroactive for more 
 than 12 months prior to the month in which the application is 
 filed with the director.  Such benefits shall be paid on the 
 first day of each calendar month for that month.  The surviving 
 spouse benefit shall cease with the payment for the month in 
 which the surviving spouse dies.  The dependent child's benefit 
 shall cease with the payment for the month in which the child no 
 longer qualifies for payment as a dependent child. 

    HIST: 1967 c 700 s 4; 1969 c 399 s 1; 1969 c 1115 s 5; 1971 c 
 928 s 8-10; 1974 c 445 s 13; 1976 c 329 s 6,7; 1978 c 796 s 
 16-18; 1980 c 614 s 139; 1981 c 224 s 67; 1986 c 444; 1991 c 269 
 art 2 s 3,4; 1993 c 307 art 1 s 31 

  352C.05 Repealed, 1978 c 796 s 46 

     352C.051 Coverage by more than one retirement system or 
  association. 

    Subdivision 1.    Entitlement to annuity; legislative 
 service.  Any constitutional officer who has been a member of 
 the legislature with service credited pursuant to chapter 3A 
 shall be entitled when qualified to a retirement allowance from 
 the legislator's retirement plan and the elective state officers 
 plan if the total allowable service for which the person has 
 credit in the two plans totals eight or more years, provided 
 that no portion of the allowable service upon which the 
 retirement allowance from one plan is based, is again used in 
 the computation for benefits from the other plan.  The 
 retirement allowance from each plan shall be determined by the 
 appropriate provisions of the law governing each plan, except 
 that the requirement that a person must have at least eight 
 years of allowable service in the respective plan shall not 
 apply for purposes of this section, provided that the aggregate 
 service in the two plans equals eight or more years.  The 
 augmentation of deferred annuities provided in sections 3A.02, 
 subdivision 4, and 352C.033, shall apply to the retirement 
 allowances accruing hereunder. 

    Subd. 2.    Entitlement to annuity; public retirement 
 service.  Any constitutional officer who has been an employee 
 covered by the Minnesota State Retirement System, or a member of 
 the Public Employees Retirement Association including the Public 
 Employees Retirement Association police and fire fund, or the 
 Teachers Retirement Association, or the Minneapolis Employees 
 Retirement Fund, or the State Patrol Retirement Association, or 
 any other public employee retirement system in the state of 
 Minnesota having a like provision, but excluding all other funds 
 providing retirement benefits for police and firefighters, shall 
 be entitled when qualified to an annuity from each fund if the 
 person's total allowable service credit in all funds or in any 
 two of these funds totals eight or more years, provided no 
 portion of the allowable service upon which the retirement 
 annuity from one fund is based is again used in the computation 
 for benefits from another fund.  The annuity from each fund 
 shall be determined by the appropriate provisions of the law 
 governing each fund, except that the requirement that a person 
 must have at least eight years allowable service in the 
 respective system or association shall not apply for the 
 purposes of this section, provided that the aggregate service in 
 two or more of these funds equals eight or more years.  The 
 augmentation of deferred annuities provided in section 352C.033 
 shall apply to the annuities accruing hereunder. 

    Subd. 3.    Refund repayment.  Any former constitutional 
 officer who has received a refund as provided in section 
 352C.09, subdivision 2, who is a currently contributing member 
 of a retirement fund specified or enumerated in subdivision 1 or 
 2, may repay the refund to the elective state officers 
 retirement plan, with interest at an annual rate of 8.5 percent 
 compounded annually. 

    HIST: 1978 c 796 s 19; 1981 c 37 s 2; 1981 c 298 s 11; 1986 c 
 444; 1992 c 598 art 1 s 8; 1993 c 307 art 1 s 32 

  352C.06 Repealed, 1978 c 796 s 46 

  352C.07 Repealed, 1983 c 342 art 1 s 44 

  352C.08 Repealed, 1978 c 796 s 46 

     352C.09 Contributions. 

    Subdivision 1.    Amount.  Every constitutional officer 
 shall contribute nine percent of total salary by payroll 
 deduction to be paid into the state treasury and deposited in 
 the general fund.  In case of retirement any unpaid deductions 
 shall be deducted from any retirement allowance that becomes 
 payable.  All deductions and payments, if any, in lieu of 
 deductions are to be paid into the state treasury and deposited 
 in the general fund.  It shall be the duty of the director to 
 record the contributions of each constitutional officer and 
 credit such contribution to such officer's account. 

    Subd. 2.    Refund.  (1) Any person who has made 
 contributions pursuant to subdivision 1 who is no longer a 
 constitutional officer is entitled to receive upon application 
 to the director a refund of all contributions credited to the 
 individual's account with interest at the rate of six percent 
 per annum compounded annually.  

    (2) The refund of contributions as provided in clause (1) 
 above terminates all rights of a former constitutional officer 
 or commissioner or survivors thereof under the provisions of 
 this chapter.  Should the former constitutional officer or 
 commissioner again hold such office after having taken a refund 
 as provided above, the former officer or commissioner shall be 
 considered a new member and may reinstate the rights and credit 
 for service forfeited provided all refunds previously taken are 
 repaid with interest at an annual rate of 8.5 percent compounded 
 annually. 

    (3) No person shall be required to apply for or accept a 
 refund. 

    (4) The provisions of section 352.15 shall apply to the 
 elective state officers retirement plan, chapter 352C. 

    Subd. 3.    Death refund.  If a constitutional officer 
 who has not received other benefits under this chapter dies and 
 there are no survivor benefits payable under this chapter, a 
 refund plus interest as provided in subdivision 2, clause (1), 
 is payable to the last designated beneficiary named on a form 
 filed with the director before the death of the constitutional 
 officer, or if no designation is on file, the refund is payable 
 to the estate of the deceased constitutional officer. 

    HIST: 1967 c 700 s 9; 1969 c 399 s 1; 1974 c 445 s 15; 1976 c 
 329 s 9; 1978 c 796 s 20,21; 1980 c 614 s 140; 1983 c 286 s 5; 
 1984 c 564 s 20; 1986 c 444; 1990 c 570 art 12 s 17; 1992 c 598 
 art 1 s 9; 1993 c 307 art 1 s 33; 1996 c 438 art 1 s 3 

     352C.091 Administration. 

    Subdivision 1.    Administrative agency and standards.  
 This chapter must be administered by the Minnesota State 
 Retirement System.  The elected state officers retirement plan 
 must be administered consistent with this chapter and chapters 
 356 and 356A. 

    Subd. 2.    Application of specific law to constitutional 
 officers.  Laws 1976, chapter 329, sections 4 to 11 shall 
 apply to constitutional officers in office on and after April 
 21, 1976. 

    Subd. 3.    Application of specific law to constitutional officers 
 and commissioners.  Laws 1978, chapter 796, sections 12 to 22 shall 
 apply to constitutional officers and commissioners in office on 
 and after July 1, 1977.  Any constitutional officer or 
 commissioner in office on the effective date of Laws 1978, 
 chapter 796 shall be entitled to elect to have the retirement 
 allowance payable computed pro rata under the provisions of 
 Minnesota Statutes 1976, chapter 352C for all service prior to 
 the effective date of Laws 1978, chapter 796 and the provisions 
 of this chapter, as amended by Laws 1978, chapter 796, for all 
 service subsequent to the effective date of Laws 1978, chapter 
 796, or to have the retirement allowance computed entirely under 
 the provisions of this chapter, as amended by Laws 1978, chapter 
 796.  Any former constitutional officer or commissioner who 
 terminated active service prior to July 1, 1977 but has not yet 
 applied to receive a retirement allowance under the provisions 
 of this chapter shall be entitled to apply for and commence 
 receipt of a retirement allowance at the age specified in 
 section 352C.031, subdivision 1, be covered by the deferred 
 annuities augmentation provision contained in section 352C.04, 
 subdivision 1, and be included in the coverage by more than one 
 retirement system provision set forth in section 352C.051. 

    HIST: 1976 c 329 s 10; 1978 c 796 s 22; 1986 c 444; 1989 c 319 
 art 8 s 14 

     352C.10 Benefit adjustments. 

    Retirement allowances payable to retired constitutional 
 officers pursuant to section 352C.031 and surviving spouse 
 benefits payable pursuant to section 352C.04, shall be adjusted 
 in the same manner, at the same times and in the same amounts as 
 are benefits payable from the Minnesota postretirement 
 investment fund to retirees of a participating public pension 
 fund.  

    HIST: 1982 c 578 art 1 s 3