Subdivision 1. Type of plan; uniformity.
(a) The plan is a defined contribution plan the
benefits from which are payable upon termination of service, retirement, disability, or death. The
amount of benefits is determined by the value of accumulated contributions plus a proportionate
share of investment income of the fund credited to each individual account.
(b) In the case of ambulance service personnel, eligibility standards must be uniform among
all ambulance service personnel of an ambulance service electing to participate.
Subd. 2. Payment of benefits.
Withdrawal of a benefit based on individual participant
contributions and employer contributions plus accrued investment income is payable upon the
death or termination of a participant but not at the time an individual revokes membership in the
defined contribution plan under section
. An application by or on behalf of the participant
must be filed before any payment of benefits may be made.
Subd. 3. Form of benefit.
A retirement benefit is payable in a lump sum equal to the value of
a participant's account at the date of withdrawal. As an alternative to a lump-sum distribution, the
participant may choose to have the association transfer the total account value for the purchase of
an annuity payable at a designated age to an insurance company of the participant's choice that is
licensed to do business in the state.
Subd. 4. Disability of participant.
If an active participant becomes permanently and totally
disabled as defined in section
353.01, subdivision 19
, that participant may withdraw from the
account in equal monthly installments an amount, designated by the participant in increments of
$100 but not to exceed ten times the joint employer and employee contribution for the month
preceding disability. The option must be exercised by filing an application on a form prescribed
by the executive director. Payments begin on the first day of the month following the month in
which the disability occurred. Payments end when the participant's disabled status ends or the
account balance is exhausted, whichever occurs first.
Subd. 5.MS 1987 Supp [Repealed, 1988 c 709 art 5 s 42
Subd. 5. Death of a participant.
If an active participant dies, the total value of the account
must be paid in a lump sum to the designated beneficiary or, if none, the heirs at law of the
History: 1987 c 372 art 5 s 7; 1988 c 709 art 5 s 35-37; 1990 c 570 art 8 s 9; 1991 c 341 s
39,40; 1992 c 432 art 2 s 42,43; 1993 c 307 art 4 s 50