353.30 ANNUITIES UPON RETIREMENT.
Subdivision 1.[Repealed,
2007 c 134 art 2 s 50]
Subd. 1a.
Pre-July 1, 1989 members: rule of 90. Upon termination of public service under
section
353.01, subdivision 11a, a 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, subdivision 3, paragraph
(a), without any reduction in annuity due to early retirement.
Subd. 1b.
Pre-July 1, 1989 members: 30 years of service. Upon termination of public
service under section
353.01, subdivision 11a, a 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 to retire prior to normal retirement age, shall
receive an annuity in an amount equal to the normal annuity provided under section
353.29,
subdivision 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. Upon termination of public service,
a 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, 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, subdivision 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Subd. 2.[Repealed,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 actuary retained under section
356.214.
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 after June 30, 1989, 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) The annuity adjustment specified in paragraph (a) also applies to joint and survivor
annuity options under subdivision 3 elected before July 1, 1989. The annuity adjustment under
this paragraph occurs on July 1, 1989, or on the first day of the first month following the death
of the designated optional annuity beneficiary, whichever is later. This paragraph may not be
interpreted as authorizing retroactive payments.
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. If a joint and survivor annuity is elected on
or after July 1, 1989, 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) The annuity adjustment specified in paragraph (a) also applies to joint and survivor
annuity options under subdivision 3 elected before July 1, 1989. The annuity adjustment under
this paragraph occurs on July 1, 1989, or on the first day of the first month following the death
of the designated optional annuity beneficiary, whichever is later. This paragraph may not be
interpreted as authorizing retroactive payments.
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 if the employee became an employee before July 1, 2006, and
at
2.5 percent compounded annually from the day the annuity begins to accrue until the normal
retirement age if the employee initially becomes an employee after June 30, 2006.
History: 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; 2006 c 271 art 3 s 21,22,47; 2006 c 277
art 2 s 4; 2007 c 134 art 2 s 25-27