2005 Minnesota Statutes

     353.30 Annuities upon retirement. 

    Subdivision 1.    Pre-July 1, 1989 members:  20 years of 
 service.  Upon separation from public service, any person who 
 first became a public employee or a member of a pension fund 
 listed in section 356.30, subdivision 3, before July 1, 1989, 
 and who has become at least 58 years old but not more than 
 normal retirement age and who received credit for not less than 
 20 years of allowable service is entitled upon application to a 
 retirement annuity in an amount equal to the normal annuity 
 provided in section 353.29, subdivisions 2 and 3, paragraph (a), 
 reduced by one-quarter of one percent for each month that the 
 member is under normal retirement age at the time of retirement. 

    Subd. 1a.    Pre-July 1, 1989 members:  rule of 90.  
 Any person who first became a public employee or a member of a 
 pension fund listed in section 356.30, subdivision 3, before 
 July 1, 1989, and whose attained age plus credited allowable 
 service totals 90 years is entitled upon application to a 
 retirement annuity in an amount equal to the normal annuity 
 provided in section 353.29, subdivisions 2 and 3, paragraph (a), 
 without any reduction in annuity by reason of such early 
 retirement. 

    Subd. 1b.    Pre-July 1, 1989 members:  30 years of 
 service.  Any person who first became a public employee or a 
 member of a pension fund listed in section 356.30, subdivision 
 3, before July 1, 1989, with 30 years or more of allowable 
 service credit, who elects early retirement under subdivision 1, 
 shall receive an annuity in an amount equal to the normal 
 annuity provided under section 353.29, subdivisions 2 and 3, 
 paragraph (a), reduced by one-quarter of one percent for each 
 month that the member is under age 62 at the time of retirement. 

    Subd. 1c.    Pre-July 1, 1989 members:  early retirement.  
  Any person who first became a public employee or a member of 
 a pension fund listed in section 356.30, subdivision 3, before 
 July 1, 1989, and who has received credit for at least 30 years 
 of allowable service or who has become at least 55 years old but 
 not normal retirement age, and has received credit for at least 
 three years of allowable service is entitled upon application to 
 a retirement annuity in an amount equal to the normal annuity 
 provided in section 353.29, subdivisions 2 and 3, paragraph (a), 
 reduced by one-quarter of one percent for each month that the 
 member is under normal retirement age at the time of retirement, 
 except that for any member who has 30 or more years of allowable 
 service the reduction shall be applied only for each month that 
 the member is under age 62 at the time of retirement. 

    Subd. 2.  Repealed, 1971 c 106 s 40 

    Subd. 3.    Optional retirement annuity forms.  The 
 board of trustees shall establish optional annuities which shall 
 take the form of a joint and survivor annuity.  Except as 
 provided in subdivision 3a, the optional annuity forms shall be 
 actuarially equivalent to the forms provided in section 353.29 
 and subdivisions 1, 1a, 1b, 1c, and 5.  In establishing those 
 optional forms, the board shall obtain the written 
 recommendation of the commission-retained actuary.  The 
 recommendations shall be a part of the permanent records of the 
 board.  A member or former member may select an optional form of 
 annuity in lieu of accepting any other form of annuity which 
 might otherwise be available. 

    Subd. 3a.    Bounce-back annuity.  (a) If a former 
 member or disabilitant selects a joint and survivor annuity 
 option under subdivision 3, the former member or disabilitant 
 must receive a normal single life annuity if the designated 
 optional annuity beneficiary dies before the former member or 
 disabilitant.  Under this option, no reduction may be made in 
 the person's annuity to provide for restoration of the normal 
 single life annuity in the event of the death of the designated 
 optional annuity beneficiary. 

    (b) A former member or disabilitant who selected an 
 optional joint and survivor annuity before July 1, 1989, but did 
 not choose an option that provides that the normal single life 
 annuity is payable to the former member or the disabilitant if 
 the designated optional annuity beneficiary dies first, is 
 eligible for restoration of the normal single life annuity if 
 the designated optional annuity beneficiary dies first, without 
 further actuarial reduction of the person's annuity.  A former 
 member or disabilitant who selected an optional joint and 
 survivor annuity, but whose designated optional annuity 
 beneficiary died before July 1, 1989, shall receive a normal 
 single life annuity after that date, but shall not receive 
 retroactive payments for periods before that date. 

    (c) A former member or disabilitant who took a further 
 actuarial reduction to elect an optional joint and survivor 
 annuity that provides that the normal annuity is payable to the 
 former member or disabilitant if the designated optional 
 beneficiary dies first but has not died before July 1, 1989, 
 shall have their annuity increased as of July 1, 1989, to the 
 amount the person would have received if, at the time of 
 retirement or disability, the person had selected only optional 
 survivor coverage that would not have provided for restoration 
 of the normal annuity upon the death of the designated optional 
 annuity beneficiary.  Any annuity or benefit increase under this 
 paragraph is effective only for payments made after June 30, 
 1989, and is not retroactive for payments made before July 1, 
 1989. 

    Subd. 3b.    Bounce-back annuity.  (a) The board of 
 trustees must provide a joint and survivor annuity option to 
 members of the police and fire fund.  Under this option, a 
 former member or disabilitant must receive a normal single life 
 annuity if the designated optional annuity beneficiary dies 
 before the former member or disabilitant.  Under this option, no 
 reduction may be made in the person's annuity to provide for 
 restoration of the normal single life annuity in the event of 
 the death of the designated optional annuity beneficiary. 

    (b) A former member or disabilitant of the police and fire 
 fund who selected an optional joint and survivor annuity before 
 July 1, 1989, but did not choose an option that provides that 
 the normal single life annuity is payable to the former member 
 or the disabilitant if the designated optional annuity 
 beneficiary dies first, is eligible for restoration of the 
 normal single life annuity if the designated optional annuity 
 beneficiary dies first, without further actuarial reduction of 
 the person's annuity.  A former member or disabilitant who 
 selected an optional joint and survivor annuity, but whose 
 designated optional annuity beneficiary died before July 1, 
 1989, shall receive a normal single life annuity after that 
 date, but shall not receive retroactive payments for periods 
 before that date. 

    (c) A former member or disabilitant who took a further 
 actuarial reduction to elect an optional joint and survivor 
 annuity that provides that the normal annuity is payable to the 
 former member or disabilitant if the designated optional 
 beneficiary dies first but has not died before July 1, 1989, 
 shall have their annuity increased as of July 1, 1989, to the 
 amount the person would have received if, at the time of 
 retirement or disability, the person had selected only optional 
 survivor coverage that would not have provided for restoration 
 of the normal annuity upon the death of the designated optional 
 annuity beneficiary.  Any annuity or benefit increase under this 
 paragraph is effective only for payments made after June 30, 
 1989, and is not retroactive for payments made before July 1, 
 1989. 

    Subd. 3c.    Effective date of bounce-back annuity.  In 
 the event of the death of the designated optional annuity 
 beneficiary before the retired employee or disabilitant, the 
 restoration of the normal single life annuity under subdivision 
 3a or 3b will take effect on the first of the month following 
 the date of death of the designated optional annuity beneficiary 
 or on the first of the month following one year before the date 
 on which a certified copy of the death record is received in the 
 office of the public employees retirement association, whichever 
 date is later. 

    Subd. 4.    Reduction in monthly payments.  Monthly 
 payments to which any person may be entitled under this chapter 
 may be reduced upon application to the association, provided 
 that the person shall first relinquish in writing all claim to 
 that part of the full monthly payment which is the difference 
 between the monthly payment which that person would be otherwise 
 entitled to receive and the monthly payment which that person 
 will receive.  The reduced monthly payment shall be payment in 
 full of all amounts due under this chapter for the month for 
 which the payment is made and acceptance of the reduced monthly 
 payment releases the retirement association from all obligation 
 to pay to the person the difference between the amount of the 
 reduced monthly payment and the full amount of the monthly 
 payment which the person would otherwise have received.  Upon 
 application of the person who is entitled to such monthly 
 payment, it may be increased prospectively to not more than the 
 amount to which the person would have been entitled had no 
 portion thereof been waived.  

    Subd. 5.    Actuarial reduction for early retirement.  
 This subdivision applies to a member who has become at least 55 
 years old and first became a public employee after June 30, 
 1989, and to any other member who has become at least 55 years 
 old and whose annuity is higher when calculated under section 
 353.29, subdivision 3, paragraph (b), in conjunction with this 
 subdivision than when calculated under section 353.29, 
 subdivision 3, paragraph (a), in conjunction with subdivision 1, 
 1a, 1b, or 1c.  An employee who retires before normal retirement 
 age shall be paid the retirement annuity provided in section 
 353.29, subdivision 3, paragraph (b), reduced so that the 
 reduced annuity is the actuarial equivalent of the annuity that 
 would be payable to the employee if the employee deferred 
 receipt of the annuity and the annuity amount were augmented at 
 an annual rate of three percent compounded annually from the day 
 the annuity begins to accrue until the normal retirement age. 

    HIST: 1957 c 935 s 10; 1959 c 650 s 17,18,58; 1971 c 106 s 22; 
 1973 c 753 s 43-45; 1976 c 329 s 22; 1978 c 796 s 29-31; 1981 c 
 224 s 84; 1982 c 519 s 1-3; 1983 c 286 s 8; 1984 c 564 s 22; 
 1986 c 444; 1987 c 259 s 29; 1987 c 372 art 9 s 12; 1989 c 319 
 art 13 s 34; art 17 s 11; 1990 c 570 art 12 s 21; 1Sp2001 c 9 
 art 15 s 32