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Minnesota Legislature

Office of the Revisor of Statutes

352.22 REFUND OR DEFERRED ANNUITIES.
    Subdivision 1. Service termination. Any employee who ceases to be a state employee by
reason of termination of state service or layoff is entitled to a refund provided in subdivision 2
or a deferred retirement annuity as provided in subdivision 3. Application for a refund may be
made after the termination of state service or layoff if the applicant has not again become a state
employee required to be covered by the system.
    Subd. 2. Amount of refund. Except as provided in subdivision 3, the refund payable to a
person who ceased to be a state employee by reason of a termination of state service is an amount
equal to employee accumulated contributions plus interest at the rate of six percent per year
compounded daily from the date that the contribution was made until the date on which the refund
is paid. Included with the refund is any interest paid as part of repayment of a past refund, plus
interest thereon from the date of repayment.
    Subd. 2a. Certain refund repayments prohibited. No refunds of contributions made to the
metropolitan transit commission-transit operating division employees retirement fund received
before July 1, 1978, or for service rendered before July 1, 1978, may be repaid.
    Subd. 3. Deferred annuity. (a) An employee who has at least three years of allowable
service when termination occurs may elect to leave the accumulated contributions in the fund
and thereby be entitled to a deferred retirement annuity. The annuity must be computed under
the law in effect when state service terminated, on the basis of the allowable service credited to
the person before the termination of service.
(b) An employee on layoff or on leave of absence without pay, except a leave of absence for
health reasons, and who does not return to state service must have an annuity, deferred annuity,
or other benefit to which the employee may become entitled computed under the law in effect
on the employee's last working day.
(c) No application for a deferred annuity may be made more than 60 days before the time
the former employee reaches the required age for entitlement to the payment of the annuity. The
deferred annuity begins to accrue no earlier than 60 days before the date the application is filed in
the office of the system, but not (1) before the date on which the employee reaches the required
age for entitlement to the annuity nor (2) before the day following the termination of state service
in a position which is not covered by the retirement system.
(d) Application for the accumulated contributions left on deposit with the fund may be made
at any time following the date of the termination of service.
    Subd. 4.[Repealed, 1983 c 128 s 36]
    Subd. 5. Refund generally unlimited. The right of refund provided in this section is not
restricted as to time unless specifically provided and the statute of limitation does not apply to it.
    Subd. 6.[Repealed, 1965 c 230 s 18]
    Subd. 7.[Repealed, Ex1967 c 57 so 20]
    Subd. 8. Refund specifically limited. If a former employee covered by the system does
not apply for refund within five years after the last deduction was taken from salary for the
retirement fund, and does not have enough service to qualify for a deferred annuity, accumulated
contributions must be credited to and become a part of the retirement fund. If the former employee
returns to state service and becomes a state employee covered by the system, the amount credited
to the retirement fund, if more than $25, must be restored to the individual account. If the amount
credited to the fund is over $25 and the former employee applies for refund or an annuity under
section 352.72, the amount must be restored to the former employee's individual account and a
refund made or an annuity paid, whichever applies.
    Subd. 9.[Repealed, 1993 c 307 art 7 s 1]
    Subd. 10. Other refunds. Former employees covered by the system are entitled to apply
for refunds if they are or become members of the State Patrol retirement fund, the state Teachers
Retirement Association, or employees of the University of Minnesota excluded from coverage
under the system by action of the Board of Regents; or employees of the adjutant general who
under federal law effectually elect membership in a federal retirement system; or officers or
employees of the senate or house of representatives, excluded from coverage under section
352.01, subdivision 2b, clause (7). The refunds must include accumulated contributions plus
interest as provided in subdivision 2. These employees may apply for a refund once 30 days
or more have elapsed after their coverage ceases, even if they continue in state service but in
positions not covered by this chapter.
    Subd. 11.[Repealed, 1980 c 342 s 21]
History: 1957 c 928 s 14; Ex1959 c 6 s 14,15; Ex1961 c 67 s 13,14; 1963 c 383 s 46-52;
1965 c 230 s 10-13; Ex1967 c 57 s 20; 1969 c 31 s 1; 1969 c 188 s 2; 1969 c 893 s 11; 1971 c 12 s
7,8; 1971 c 194 s 5; 1973 c 221 s 8; 1973 c 653 s 35,36; 1975 c 368 s 31,32; 1978 c 538 s 5; 1980
c 342 s 4,5; 1981 c 37 s 2; 1981 c 224 s 51-53; 1Sp1981 c 4 art 1 s 163; 1983 c 128 s 13; 1984 c
564 s 12; 1984 c 654 art 5 s 58; 1Sp1985 c 7 s 6; 1986 c 444; 1987 c 229 art 6 s 1; 1987 c 372 art 9
s 4; 1989 c 319 art 1 s 7,8; art 13 s 14,15; 1992 c 432 art 1 s 9; 1993 c 307 art 2 s 3,4; 1994 c 528
art 1 s 7; 1995 c 54 s 27; 1Sp2001 c 10 art 3 s 8; 2004 c 267 art 9 s 4,5; 1Sp2005 c 8 art 10 s 24