2007 Minnesota Statutes

352B.11 RETIREES.
    Subdivision 1. Refund of payments. (a) A member who has not received other benefits
under this chapter is entitled to a refund of payments made by salary deduction, plus interest, if
the member is separated, either voluntarily or involuntarily, from the state service that entitled
the member to membership.
(b) In the event of the member's death, if there are no survivor benefits payable under this
chapter, a refund plus interest is payable to the last designated beneficiary on a form filed with the
director before death, or if no designation is filed, is payable to the member's estate. Interest under
this subdivision must be calculated as provided in section 352.22, subdivision 2. To receive a
refund, the application must be made on a form prescribed by the executive director.
    Subd. 2. Death; payment to dependent children; family maximums. Each dependent
child, as defined in section 352B.01, subdivision 10, is entitled to receive a monthly annuity equal
to ten percent of the average monthly salary of the deceased member. A dependent child over 18
and under 23 years of age also may receive the monthly benefit provided in this section if the child
is continuously attending an accredited school as a full-time student during the normal school
year as determined by the director. If the child does not continuously attend school, but separates
from full-time attendance during any part of a school year, the annuity must cease at the end of
the month of separation. In addition, a payment of $20 per month must be prorated equally to the
surviving dependent children when the former member is survived by more than one dependent
child. Payments for the benefit of any dependent child must be made to the surviving spouse, or if
there is none, to the legal guardian of the child. The monthly benefit for any one family, including
a surviving spouse benefit, if applicable, must not be less than 50 percent nor exceed 70 percent of
the average monthly salary of the deceased member.
    Subd. 2a. Applications for survivor benefits. An application for benefits under this section
must be filed in the office of the system in a form and manner prescribed by the executive director.
The benefit shall begin to accrue the day following the date of death but shall not be retroactive
for more than six months before the date the application is filed.
    Subd. 2b. Surviving spouse benefit eligibility. (a) If an active member with three or more
years of allowable service dies before attaining age 55, the surviving spouse is entitled to the
benefit specified in subdivision 2c, paragraph (b).
(b) If an active member with less than three years of allowable service dies at any age, the
surviving spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (c).
(c) If an active member with three or more years of allowable service dies on or after
attaining exact age 55, the surviving spouse is entitled to receive the benefits specified in
subdivision 2c, paragraph (d).
(d) If a disabilitant dies while receiving a disability benefit under section 352B.10 or before
the benefit under that section commenced, and an optional annuity was not elected under section
352B.10, subdivision 5, the surviving spouse is entitled to receive the benefit specified in
subdivision 2c, paragraph (b).
(e) If a former member with three or more years of allowable service, who terminated from
service and has not received a refund or commenced receipt of any other benefit provided by this
chapter, dies, the surviving spouse is entitled to receive the benefit specified in subdivision 2c,
paragraph (e).
(f) If a former member with less than three years of allowable service, who terminated from
service and has not received a refund or commenced receipt of any other benefit, if applicable,
provided by this chapter, dies, the surviving spouse is entitled to receive the refund specified in
subdivision 2c, paragraph (f).
    Subd. 2c. Surviving spouse benefit entitlements. (a) A surviving spouse specified in
subdivision 2b is eligible to receive, following the filing of a valid application and consistent with
any other applicable requirements, a benefit as specified in this subdivision. A 100 percent joint
and survivor annuity under paragraph (b) must be computed assuming the exact age 55 for the
deceased member and the age of the surviving spouse on the date of death. A 100 percent joint
and survivor annuity under paragraph (d) or (e) must be computed using the age of the deceased
member on the date of death and the age of the surviving spouse on that same date.
(b) For a surviving spouse specified in subdivision 2b, paragraph (a) or (d), the surviving
spouse benefit is a benefit for life equal to 50 percent of the average monthly salary of the
deceased member. On the first of the month next following the date on which the deceased
member would have attained exact age 55, in lieu of continued receipt of the prior benefit, the
surviving spouse is eligible to commence receipt of the second half of a 100 percent joint and
survivor annuity, if this provides a larger benefit.
(c) For a surviving spouse specified in subdivision 2b, paragraph (b), the surviving spouse
benefit is a benefit for life equal to 50 percent of the average monthly salary of the deceased
member.
(d) For a surviving spouse specified in subdivision 2b, paragraph (c), the surviving spouse
benefit is a benefit for life equal to 50 percent of the average monthly salary of the deceased
member, or the second half of a 100 percent joint and survivor annuity, whichever is larger.
(e) For a surviving spouse specified in subdivision 2b, paragraph (e), the surviving spouse
benefit is the second half of a 100 percent joint and survivor annuity, commencing on the first
of the month next following the deceased member's date of death, or the first of the month next
following the date on which the deceased member would have attained age 55, whichever is later.
(f) For a surviving spouse specified in subdivision 2b, paragraph (f), the surviving spouse
or, if none, the children or, if none, the deceased member's estate, is entitled to a refund of the
employee contributions plus interest computed as specified in subdivision 1.
    Subd. 2d. Coordination with workers' compensation benefits. If the deceased member
died under circumstances that entitle the surviving spouse and the dependent child or children to
receive benefits under workers' compensation law, the workers' compensation benefits received
by the deceased member's survivor or survivors must not be deducted from the benefits payable
under this section.
    Subd. 3. Refund; effect. When any member or former member accepts a refund, all existing
service credits and all rights and benefits to which the member or former member was entitled
before acceptance of the refund terminate.
    Subd. 4. Reentry into state service. When a former member, who has become separated
from state service that entitled the member to membership and has received a refund of retirement
payments, reenters the state service in a position that entitles the member to membership, that
member shall receive credit for the period of prior allowable state service if the member repays
into the fund the amount of the refund, plus interest on it at an annual rate of 8.5 percent
compounded annually, at any time before subsequent retirement. Repayment may be made in
installments or in a lump sum.
    Subd. 5. Death of annuitant or beneficiary. If a retired member who did not select an
optional annuity under section 352B.08, subdivision 3, dies or if the last eligible recipient of an
optional annuity under section 352B.08, subdivision 3, dies and the total amounts paid as an
annuity are less than the accumulated member contributions under section 352B.02, subdivision
1a , to the credit of the retired member on the date of retirement, the surviving spouse, or if none,
the former member's surviving children in equal shares, or if none, the last recipient's estate is
entitled, upon application, to a refund. The refund is equal to the balance of accumulated member
contributions under section 352B.02, subdivision 1a, remaining after subtracting the total amount
of benefits paid to the decedent.
History: 1943 c 637 s 9; 1953 c 453 s 4; 1957 c 869 s 7,8; 1959 c 642 s 6; 1961 c 493 s 4;
1965 c 889 s 5; 1967 c 244 s 3,4; 1969 c 693 s 5; 1971 c 278 s 2; 1973 c 70 s 1; 1973 c 178 s
13; 1973 c 755 s 4; 1975 c 359 s 23; 1978 c 646 s 2; 1979 c 50 s 41; 1981 c 37 s 2; 1981 c 224
s 63,274; 1982 c 397 s 3,4; 1983 c 128 s 28-30; 1984 c 564 s 18,19; 1986 c 444; 1987 c 229
art 7 s 1; 1987 c 372 art 9 s 8; 1989 c 319 art 1 s 12; art 13 s 26,27; art 17 s 10; 1990 c 570
art 12 s 15,16; 1991 c 34 s 1; 1991 c 269 art 2 s 2; 1992 c 598 art 1 s 7; 1993 c 307 art 2 s 16;
1996 c 438 art 1 s 2; 2004 c 267 art 9 s 7-11